Item 1. FINANCIAL STATEMENTS

CONSOLIDATED BALANCE SHEETS

TRUIST FINANCIAL CORPORATION AND SUBSIDIARIES

Unaudited (Dollars in millions, except per share data, shares in thousands)			Mar 31, 2024						Dec 31, 2023
Assets
Cash and due from banks			$	5,040					$	5,000
Interest-bearing deposits with banks			29,510						25,230
Securities borrowed or purchased under agreements to resell			2,091						2,378
Trading assets at fair value			5,268						4,332
AFS securities at fair value			66,050						67,366
HTM securities (fair value of $43,041 and $44,630, respectively)			53,369						54,107
LHFS (including $1,201 and $852 at fair value, respectively)			1,253						1,280
Loans and leases (including $14 and $15 at fair value, respectively)			307,224						312,061
ALLL			(4,803)						(4,798)
Loans and leases, net of ALLL			302,421						307,263
Premises and equipment			3,274						3,298
Goodwill			17,157						17,156
CDI and other intangible assets			1,816						1,909
Loan servicing rights at fair value			3,417						3,378
Other assets (including $1,359 and $1,311 at fair value, respectively)			36,521						34,997
Assets of discontinued operations			7,772						7,655
Total assets			$	534,959					$	535,349
Liabilities
Noninterest-bearing deposits			$	110,901					$	111,624
Interest-bearing deposits (including $23 and $0 at fair value, respectively)			283,364						284,241
Short-term borrowings (including $2,034 and $1,625 at fair value, respectively)			26,329						24,828
Long-term debt			39,071						38,918
Other liabilities (including $2,990 and $2,597 at fair value, respectively)			13,119						12,946
Liabilities of discontinued operations			3,122						3,539
Total liabilities			475,906						476,096
Shareholders’ Equity
Preferred stock			6,673						6,673
Common stock, $5 par value			6,690						6,669
Additional paid-in capital			36,197						36,177
Retained earnings			22,483						22,088
AOCI, net of deferred income taxes			(13,222)						(12,506)
Noncontrolling interests			232						152
Total shareholders’ equity			59,053						59,253
Total liabilities and shareholders’ equity			$	534,959					$	535,349
Common shares outstanding			1,338,096						1,333,743
Common shares authorized			2,000,000						2,000,000
Preferred shares outstanding			223						223
Preferred shares authorized			5,000						5,000

The accompanying notes are an integral part of these consolidated financial statements.

4 Truist Financial Corporation

CONSOLIDATED STATEMENTS OF INCOME

TRUIST FINANCIAL CORPORATION AND SUBSIDIARIES

Unaudited (Dollars in millions, except per share data, shares in thousands)						Three Months Ended March 31,
			2024						2023
Interest Income
Interest and fees on loans and leases						$	4,865					$	4,656
Interest on securities						805						752
Interest on other earning assets						514						376
Total interest income						6,184						5,784
Interest Expense
Interest on deposits						1,964						1,125
Interest on long-term debt						482						514
Interest on other borrowings						366						278
Total interest expense						2,812						1,917
Net Interest Income						3,372						3,867
Provision for credit losses						500						502
Net Interest Income After Provision for Credit Losses						2,872						3,365
Noninterest Income
Wealth management income						356						339
Investment banking and trading income						323						261
Card and payment related fees						224						230
Service charges on deposits						225						250
Mortgage banking income						97						142
Lending related fees						96						106
Operating lease income						59						67
Other income						66						26
Total noninterest income						1,446						1,421
Noninterest Expense
Personnel expense						1,630						1,668
Professional fees and outside processing						278						287
Software expense						224						200
Net occupancy expense						160						169
Amortization of intangibles						88						100
Equipment expense						88						102
Marketing and customer development						56						68
Operating lease depreciation						40						46
Regulatory costs						152						75
Restructuring charges						51						56
Other expense						186						244
Total noninterest expense						2,953						3,015
Earnings
Income before income taxes						1,365						1,771
Provision for income taxes						232						361
Net income from continuing operations						1,133						1,410
Net income from discontinued operations						67						105
Net income						1,200						1,515
Noncontrolling interests from discontinued operations						3						2
Preferred stock dividends and other						106						103
Net income available to common shareholders						$	1,091					$	1,410
Basic earnings from continuing operations						$	0.77					$	0.98
Basic EPS						0.82						1.06
Diluted earnings from continuing operations						0.76						0.98
Diluted EPS						0.81						1.05
Basic weighted average shares outstanding						1,335,091						1,328,602
Diluted weighted average shares outstanding						1,346,904						1,339,480

The accompanying notes are an integral part of these consolidated financial statements.

Truist Financial Corporation 5

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

TRUIST FINANCIAL CORPORATION AND SUBSIDIARIES

Unaudited (Dollars in millions)									Three Months Ended March 31,
												2024						2023
Net income															$	1,200					$	1,515
OCI, net of tax:
Net change in net pension and postretirement costs															1						(14)
Net change in cash flow hedges															(190)						125
Net change in AFS securities															(576)						853
Net change in HTM securities															51						55
Other, net															(2)						1
Total OCI, net of tax															(716)						1,020
Total OCI															$	484					$	2,535
Income Tax Effect of Items Included in OCI:
Net change in net pension and postretirement costs															$	—					$	(3)
Net change in cash flow hedges															(58)						38
Net change in AFS securities															(177)						262
Net change in HTM securities															15						15
Total income taxes related to OCI															$	(220)					$	312

The accompanying notes are an integral part of these consolidated financial statements.

6 Truist Financial Corporation

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

TRUIST FINANCIAL CORPORATION AND SUBSIDIARIES

Unaudited (Dollars in millions, shares in thousands)			Shares of Common Stock						Preferred Stock						Common Stock						Additional Paid-In Capital						Retained Earnings						AOCI						Noncontrolling Interests						Total Shareholders’ Equity
Balance, January 1, 2023			1,326,829						$	6,673					$	6,634					$	34,544					$	26,264					$	(13,601)					$	23					$	60,537
Net income			—						—						—						—						1,513						—						2						1,515
OCI			—						—						—						—						—						1,020						—						1,020
Issued in connection with equity awards, net			5,089						—						26						(45)						(1)						—						—						(20)
Cash dividends declared on common stock			—						—						—						—						(691)						—						—						(691)
Cash dividends declared on preferred stock			—						—						—						—						(103)						—						—						(103)
Equity-based compensation expense			—						—						—						83						—						—						—						83
Other, net			—						—						—						—						56						—						(3)						53
Balance, March 31, 2023			1,331,918						$	6,673					$	6,660					$	34,582					$	27,038					$	(12,581)					$	22					$	62,394
Balance, January 1, 2024			1,333,743						$	6,673					$	6,669					$	36,177					$	22,088					$	(12,506)					$	152					$	59,253
Net income			—						—						—						—						1,197						—						3						1,200
OCI			—						—						—						—						—						(716)						—						(716)
Issued in connection with equity awards, net			4,353						—						21						(43)						(2)						—												(24)
Cash dividends declared on common stock			—						—						—						—						(694)						—						—						(694)
Cash dividends declared on preferred stock			—						—						—						—						(106)						—						—						(106)
Equity-based compensation expense			—						—						—						63						—						—						—						63
Other, net			—						—						—						—						—						—						77						77
Balance, March 31, 2024			1,338,096						$	6,673					$	6,690					$	36,197					$	22,483					$	(13,222)					$	232					$	59,053

The accompanying notes are an integral part of these consolidated financial statements.

Truist Financial Corporation 7

CONSOLIDATED STATEMENTS OF CASH FLOWS**(1)**

TRUIST FINANCIAL CORPORATION AND SUBSIDIARIES

Unaudited (Dollars in millions)						Three Months Ended March 31,
			2024						2023
Cash Flows From Operating Activities:
Net income						$	1,200					$	1,515
Adjustments to reconcile net income to net cash from operating activities:
Provision for credit losses						500						502
Depreciation						164						180
Amortization of intangibles						109						136
Net change in operating assets and liabilities:
LHFS						(349)						(846)
Pension asset						(57)						(1,346)
Derivative assets and liabilities						255						(12)
Trading assets						(936)						304
Other assets and other liabilities						(1,985)						(463)
Other, net						109						148
Net cash from operating activities						(990)						118
Cash Flows From Investing Activities:
Proceeds from sales of AFS securities						6						4
Proceeds from maturities, calls and paydowns of AFS securities						3,923						1,279
Purchases of AFS securities						(3,807)						(140)
Proceeds from maturities, calls and paydowns of HTM securities						808						858
Originations and purchases of loans and leases, net of sales and principal collected						4,692						(1,835)
Net cash received (paid) for FHLB stock						(1)						(1,147)
Net cash received (paid) for securities borrowed or purchased under agreements to resell						287						(456)
Other, net						(5)						(613)
Net cash from investing activities						5,903						(2,050)
Cash Flows From Financing Activities:
Net change in deposits						(1,599)						(8,498)
Net change in short-term borrowings						1,493						224
Proceeds from issuance of long-term debt						8,130						35,029
Repayment of long-term debt						(7,750)						(8,444)
Cash dividends paid on common stock						(694)						(691)
Cash dividends paid on preferred stock						(106)						(103)
Net cash received (paid) for hedge unwinds						—						(378)
Other, net						(46)						(32)
Net cash from financing activities						(572)						17,107
Net Change in Cash and Cash Equivalents						4,341						15,175
Cash and Cash Equivalents of Continuing and Discontinued Operations, January 1						30,644						21,421
Cash and Cash Equivalents of Continuing and Discontinued Operations, March 31						$	34,985					$	36,596
Supplemental Disclosure of Cash Flow Information:
Net cash paid (received) during the period for:
Interest expense						$	2,826					$	1,667
Income taxes						30						23

(1)Cash flows of discontinued operations are reflected within operating, investing, and financing activities in the Consolidated Statements of Cash Flows. The cash balance of these operations is reported as assets of discontinued operations on the Consolidated Balance Sheets. Refer to “Note 2. Discontinued Operations” for additional information related to discontinued operations.

The accompanying notes are an integral part of these consolidated financial statements.

8 Truist Financial Corporation

NOTE 1. Basis of Presentation

General

See the Glossary of Defined Terms at the beginning of this Report for terms used herein. These consolidated financial statements and notes are presented in accordance with the instructions for Form 10-Q, and, therefore, do not include all information and notes necessary for a complete presentation of financial position, results of operations, and cash flow activity required in accordance with GAAP. In the opinion of management, all normal recurring adjustments necessary for a fair statement of the consolidated financial position and consolidated results of operations have been made. The year-end consolidated balance sheet data was derived from audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements. The information contained in the financial statements and notes included in the Annual Report on Form 10-K for the year ended December 31, 2023 should be referred to in connection with these unaudited interim consolidated financial statements. The Company updated its accounting policies in connection with recently adopted accounting standards, as applicable, which are described in this footnote. There were no other significant changes to the Company’s accounting policies from those disclosed in the Annual Report on Form 10-K for the year ended December 31, 2023 that could have a material effect on the Company’s financial statements.

Discontinued Operations

The Company classifies assets and liabilities as held for sale when management, having the authority to approve the action, commits to a plan to sell the disposal group, the sale is probable to occur within one year, and the disposal group is available for immediate sale in its present condition. The Company also considers whether an active program to locate a buyer has been initiated, whether the disposal group is marketed actively for sale at a price that is reasonable in relation to its current fair value, and whether actions required to complete the plan indicate it is unlikely significant changes to the plan will be made or the plan will be withdrawn. An asset or business that meets the criteria for held for sale classification is reported as discontinued operations when the disposal represents a strategic shift that has had or will have a major effect on the Company’s operating results.

Assets and liabilities of discontinued operations are presented separately in the Consolidated Balance Sheets for current and prior periods commencing in the period in which the asset or business meets all of the held for sale criteria described above. Net income from discontinued operations, net of tax, are separately reported in the Consolidated Statements of Income for current and prior periods commencing in the period in which the asset or business meets all of the held for sale criteria described above, including any gain or loss recognized on the sale or adjustment of the carrying amount to fair value less cost to sell.

Certain activity of TIH impacting the Company's footnote disclosures have been removed or revised. The footnote disclosures included herein are presented on a continuing operations basis, unless otherwise noted.

Refer to “Note 2. Discontinued Operations” for additional information.

Segment Realignment

Effective January 1, 2024, several business activities were realigned reflecting updates to the Company’s operating structure. First, the CB&W segment was renamed CSBB and the C&CB segment was renamed WB. Second, the Wealth business was realigned into the WB segment from the CSBB segment, representing a separate reporting unit in that segment. Third, the small business banking client segmentation was realigned into the CSBB segment from the WB segment. Further, TIH was the principal legal entity of the IH segment. As the operations of TIH are now included in discontinued operations, the Company no longer presents the IH segment as one of its reportable segments. The segment disclosures have been revised to reflect the new structure. Refer to “Note 18. Operating Segments” for additional information.

Reclassifications

In addition to the reclassifications discussed above in the Consolidated Balance Sheets, Consolidated Statements of Income, and certain footnotes for discontinued operations and the segment realignment, as applicable, certain other amounts reported in prior periods’ consolidated financial statements have been reclassified to conform to the current presentation.

Truist Financial Corporation 9

Use of Estimates in the Preparation of Financial Statements

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change include the determination of the ACL; determination of fair value for securities, MSRs, LHFS, trading loans, and derivative assets and liabilities; goodwill and other intangible assets; income taxes; and pension and postretirement benefit obligations.

Changes in Accounting Principles and Effects of New Accounting Pronouncements

Standard / Adoption Date			Description			Effects on the Financial Statements
Standards Not Yet Adopted
Improvements to Income Tax Disclosures January 1, 2025			Improves the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures.			Truist is evaluating the impact of this standard on its disclosures. This standard relates to footnote disclosures only.
Improvements to Reportable Segment Disclosures December 31, 2024			Improves reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses.			Truist is evaluating the impact of this standard on its disclosures. This standard relates to footnote disclosures only.

10 Truist Financial Corporation

NOTE 2. Discontinued Operations

On February 20, 2024, the Company entered into an agreement to sell the remaining stake of the common equity in TIH to an investor group led by Stone Point Capital LLC and Clayton, Dubilier & Rice for a purchase price that implied an enterprise value for TIH of $15.5 billion. The divestiture of TIH represents a strategic shift that has a major effect on our operations and financial results. The Company reclassified all of the assets and liabilities of TIH to discontinued operations in connection with the announcement of the disposition of the business. As such, financial information attributed to TIH has been recast to reflect discontinued operations for the periods presented herein. The following footnotes reflect impacts of discontinued operations: “Note 1. Basis of Presentation,” “Note 2. Discontinued Operations,” “Note 6. Goodwill and Other Intangible Assets,” “Note 8. Other Assets and Liabilities,” “Note 12. Income Taxes,” “Note 13. Benefit Plans,” “Note 17. Computation of EPS,” and “Note 18. Operating Segments.”

The following is a summary of the assets and liabilities of discontinued operations:

(Dollars in millions)						Mar 31, 2024						Dec 31, 2023
Assets of discontinued operations:
Cash and due from banks						$	83					$	72
Interest-bearing deposits with banks						352						342
Premises and equipment						66						72
Goodwill						3,745						3,745
CDI and other intangible assets						1,229						1,251
Other assets						2,297						2,173
Total assets of discontinued operations						$	7,772					$	7,655
Liabilities of discontinued operations:
Other liabilities						$	3,122					$	3,539
Total liabilities of discontinued operations						$	3,122					$	3,539

The following presents operating results of TIH classified as discontinued operations:

(Dollars in millions)			Three Months Ended March 31,
2024						2023
Interest Income
Interest on other earning assets			$	24					$	1
Total interest income			24						1
Noninterest income
Insurance income			$	892					$	815
Other income			5						3
Total noninterest income			897						818
Expenses
Personnel expense			634						513
Professional fees and outside processing			48						27
Software expense			17						14
Net occupancy expense			15						14
Amortization of intangibles			21						36
Equipment expense			9						8
Marketing and customer development			10						10
Restructuring charges			19						7
Other expense			58						52
Total noninterest expense			831						681
Earnings
Income before income taxes from discontinued operations			90						138
Provision for income taxes			23						33
Net income from discontinued operations			67						105
Noncontrolling interests			3						2
Net income from discontinued operations attributable to controlling interest			$	64					$	103

The components of net cash provided by operating, investing, and financing activities of discontinued operations included in the Consolidated Statements of Cash Flows are as follows:

(Dollars in millions)			Three Months Ended March 31,
2024						2023
Net cash from operating activities			$	(346)					$	(134)
Net cash from investing activities			(4)						(7)
Net cash from financing activities			373						(45)

Truist Financial Corporation 11

On May 6, 2024, the Company completed the sale, which resulted in after-tax cash proceeds to Truist of approximately $10.1 billion. The transaction improves Truist’s relative capital position and allows Truist to maintain strategic flexibility. Upon closing, the transaction resulted in a full deconsolidation of the TIH subsidiary from Truist and resulted in an approximate after-tax gain of approximately $4.7 billion. Refer to “Note 19. Subsequent Events” for additional information.

In connection with the sale of TIH, the Company has entered into various agreements with entities controlled by the buyers and TIH, including a transition services agreement and several commercial agreements, ranging from one to seven years. The transition services agreement includes the following support services: information technology, finance and accounting, human resources, marketing and communications, procurement, and real estate. The Company will be compensated for such services on a monthly basis. The commercial agreements represent arrangements for both the Company and TIH to continue engaging in certain business activities after the completion of the sale. Such activities include referral services and certain brokerage and administration services. In addition, TIH will retain its depository relationship with Truist Bank after completion of the sale. TIH holds the majority of its cash in depository accounts with Truist Bank. TIH held $1.2 billion and $1.6 billion of deposits at Truist Bank as of March 31, 2024 and December 31, 2023, respectively. Such deposits are not presented in assets of discontinued operations as they are eliminated upon consolidation.

NOTE 3. Securities Financing Activities

Securities purchased under agreements to resell are primarily collateralized by U.S. government or agency securities and are carried at the amounts at which the securities will be subsequently sold, plus accrued interest. Securities borrowed are primarily collateralized by corporate securities. The Company borrows securities and purchases securities under agreements to resell as part of its securities financing activities. On the acquisition date of these securities, the Company and the related counterparty agree on the amount of collateral required to secure the principal amount loaned under these arrangements. The Company monitors collateral values daily and calls for additional collateral to be provided as warranted under the respective agreements. The following table presents securities borrowed or purchased under agreements to resell:

(Dollars in millions)						Mar 31, 2024						Dec 31, 2023
Securities purchased under agreements to resell						$	883					$	1,168
Securities borrowed						1,208						1,210
Total securities borrowed or purchased under agreements to resell						$	2,091					$	2,378
Fair value of collateral permitted to be resold or repledged						$	1,971					$	2,175
Fair value of securities resold or repledged						—						12

For securities sold under agreements to repurchase, the Company would be obligated to provide additional collateral in the event of a significant decline in fair value of the collateral pledged. This risk is managed by monitoring the liquidity and credit quality of the collateral, as well as the maturity profile of the transactions. Refer to “Note 14. Commitments and Contingencies” for additional information related to pledged securities. The following table presents the Company’s related activity, by collateral type and remaining contractual maturity:

			March 31, 2024																								December 31, 2023
(Dollars in millions)			Overnight and Continuous						Up to 30 days						30-90 days						Total						Overnight and Continuous						Up to 30 days												Total
U.S. Treasury			$	10					$	—					$	—					$	10					$	12					$	—											$	12
State and Municipal			428						—						—						428						415						—												415
Agency MBS – residential			—						500						—						500						—						1,500												1,500
Corporate and other debt securities			521						80						50						651						420						80												500
Total securities sold under agreements to repurchase			$	959					$	580					$	50					$	1,589					$	847					$	1,580											$	2,427

There were no securities financing transactions subject to legally enforceable master netting arrangements that were eligible for balance sheet netting for the periods presented.

12 Truist Financial Corporation

NOTE 4. Investment Securities

The following tables summarize the Company’s AFS and HTM securities:

March 31, 2024 (Dollars in millions)						Amortized Cost						Gross Unrealized												Net unrealized gains (losses)						Fair Value
						Gains						Losses
AFS securities:
U.S. Treasury						$	9,480					$	—					$	(460)					$	(460)					$	9,020
GSE						385						2						(37)						(35)						350
Agency MBS – residential						61,945						9						(10,804)						(10,795)						51,150
Agency MBS – commercial						2,822						—						(614)						(614)						2,208
States and political subdivisions						420						15						(16)						(1)						419
Non-agency MBS						3,648						—						(764)						(764)						2,884
Other						19						—						—						—						19
Total AFS securities, excluding portfolio level basis adjustments						78,719						26						(12,695)						(12,669)						66,050
Portfolio level basis adjustments(1)						(433)																		433						—
Total AFS securities						$	78,286					$	26					$	(12,695)					$	(12,236)					$	66,050
HTM securities:
Agency MBS – residential						$	53,369					$	—					$	(10,328)					$	(10,328)					$	43,041
December 31, 2023 (Dollars in millions)						Amortized Cost						Gross Unrealized												Net unrealized gains (losses)						Fair Value
						Gains						Losses
AFS securities:
U.S. Treasury						$	10,511					$	2					$	(472)					$	(470)					$	10,041
GSE						393						3						(34)						(31)						362
Agency MBS – residential						60,989						—						(9,700)						(9,700)						51,289
Agency MBS – commercial						2,817						—						(569)						(569)						2,248
States and political subdivisions						421						17						(13)						4						425
Non-agency MBS						3,698						—						(717)						(717)						2,981
Other						20						—						—						—						20
Total AFS securities						$	78,849					$	22					$	(11,505)					$	(11,483)					$	67,366
HTM securities:
Agency MBS – residential						$	54,107					$	—					$	(9,477)					$	(9,477)					$	44,630

(1)Represents fair value hedge basis adjustments related to active portfolio layer method hedges, which are not allocated to individual securities. For additional information, refer to “Note 16. Derivative Financial Instruments.”

The amortized cost and estimated fair value of certain MBS securities issued by FNMA and FHLMC that exceeded 10% of shareholders’ equity are shown in the table below:

						March 31, 2024
(Dollars in millions)						Amortized Cost						Fair Value
FNMA						$	39,345					$	32,003
FHLMC						39,821						32,183

The amortized cost and estimated fair value of the securities portfolio by contractual maturity are shown in the following table. The expected life of MBS may be shorter than the contractual maturities because borrowers have the right to prepay their obligations with or without penalties.

			Amortized Cost																														Fair Value
March 31, 2024 (Dollars in millions)			Due in one year or less						Due after one year through five years						Due after five years through ten years						Due after ten years						Total						Due in one year or less						Due after one year through five years						Due after five years through ten years						Due after ten years						Total
AFS securities:
U.S. Treasury			$	2,871					$	6,566					$	14					$	29					$	9,480					$	2,850					$	6,133					$	13					$	24					$	9,020
GSE			—						7						12						366						385						—						7						11						332						350
Agency MBS – residential			—						120						447						61,378						61,945						—						113						420						50,617						51,150
Agency MBS – commercial			—						—						71						2,751						2,822						—						—						66						2,142						2,208
States and political subdivisions			49						48						168						155						420						48						47						174						150						419
Non-agency MBS			—						—						214						3,434						3,648						—						—						164						2,720						2,884
Other			—						7						12						—						19						—						7						12						—						19
Total AFS securities			$	2,920					$	6,748					$	938					$	68,113					$	78,719					$	2,898					$	6,307					$	860					$	55,985					$	66,050
HTM securities:
Agency MBS – residential			$	—					$	—					$	—					$	53,369					$	53,369					$	—					$	—					$	—					$	43,041					$	43,041

Truist Financial Corporation 13

The following tables present the fair values and gross unrealized losses of investments based on the length of time that individual securities have been in a continuous unrealized loss position:

			Less than 12 months												12 months or more												Total
March 31, 2024 (Dollars in millions)			Fair Value						Unrealized Losses						Fair Value						Unrealized Losses						Fair Value						Unrealized Losses
AFS securities:
U.S. Treasury			$	743					$	(2)					$	7,805					$	(458)					$	8,548					$	(460)
GSE			32						(1)						246						(36)						278						(37)
Agency MBS – residential			485						(3)						48,895						(10,801)						49,380						(10,804)
Agency MBS – commercial			12						—						2,196						(614)						2,208						(614)
States and political subdivisions			35						—						239						(16)						274						(16)
Non-agency MBS			—						—						2,884						(764)						2,884						(764)
Other			—						—						7						—						7						—
Total			$	1,307					$	(6)					$	62,272					$	(12,689)					$	63,579					$	(12,695)
HTM securities:
Agency MBS – residential			$	—					$	—					$	43,041					$	(10,328)					$	43,041					$	(10,328)
			Less than 12 months												12 months or more												Total
December 31, 2023 (Dollars in millions)			Fair Value						Unrealized Losses						Fair Value						Unrealized Losses						Fair Value						Unrealized Losses
AFS securities:
U.S. Treasury			$	356					$	(2)					$	8,806					$	(470)					$	9,162					$	(472)
GSE			16						—						255						(34)						271						(34)
Agency MBS – residential			258						(4)						51,006						(9,696)						51,264						(9,700)
Agency MBS – commercial			61						(2)						2,185						(567)						2,246						(569)
States and political subdivisions			35						—						243						(13)						278						(13)
Non-agency MBS			—						—						2,981						(717)						2,981						(717)
Other			—						—						20						—						20						—
Total			$	726					$	(8)					$	65,496					$	(11,497)					$	66,222					$	(11,505)
HTM securities:
Agency MBS – residential			$	—					$	—					$	44,630					$	(9,477)					$	44,630					$	(9,477)

At March 31, 2024 and December 31, 2023, no ACL was established for AFS or HTM securities. Substantially all of the unrealized losses on the securities portfolio, including non-agency MBS, were the result of changes in market interest rates compared to the date the securities were acquired rather than the credit quality of the issuers or underlying loans. HTM debt securities consist of residential agency MBS. Accordingly, the Company does not expect to incur any credit losses on investment securities.

14 Truist Financial Corporation

NOTE 5. Loans and ACL

The following tables present loans and leases HFI by aging category. Government guaranteed loans are not placed on nonperforming status regardless of delinquency because collection of principal and interest is reasonably assured.

						Accruing
March 31, 2024 (Dollars in millions)						Current						30-89 Days Past Due						90 Days Or More Past Due**(1)**						Nonperforming						Total
Commercial:
Commercial and industrial						$	156,987					$	158					$	12					$	512					$	157,669
CRE						21,860						21						—						261						22,142
Commercial construction						7,449						—						—						23						7,472
Consumer:
Residential mortgage						53,656						638						441						151						54,886
Home equity						9,626						59						10						130						9,825
Indirect auto						21,348						540						1						256						22,145
Other consumer						27,791						226						18						61						28,096
Credit card						4,859						74						56						—						4,989
Total						$	303,576					$	1,716					$	538					$	1,394					$	307,224
(1)Includes government guaranteed loans of $408 million in the residential mortgage portfolio.
						Accruing
December 31, 2023 (Dollars in millions)						Current						30-89 Days Past Due						90 Days Or More Past Due**(1)**						Nonperforming						Total
Commercial:
Commercial and industrial						$	160,081					$	230					$	7					$	470					$	160,788
CRE						22,281						5						—						284						22,570
Commercial construction						6,658						—						1						24						6,683
Consumer:
Residential mortgage						54,261						639						439						153						55,492
Home equity						9,850						70						11						122						10,053
Indirect auto						21,788						669						2						268						22,727
Other consumer						28,296						271						21						59						28,647
Credit card						4,961						87						53						—						5,101
Total						$	308,176					$	1,971					$	534					$	1,380					$	312,061
(1)Includes government guaranteed loans of $418 million in the residential mortgage portfolio.

Truist Financial Corporation 15

The following tables present the amortized cost basis of loans by origination year and credit quality indicator:

March 31, 2024 (Dollars in millions)			Amortized Cost Basis by Origination Year																																				Revolving Credit						Loans Converted to Term						Other**(1)**
2024						2023						2022						2021						2020						Prior															Total
Commercial:
Commercial and industrial:
Pass			$	6,056					$	22,561					$	27,451					$	14,650					$	7,903					$	16,367					$	54,742					$	—					$	(287)					$	149,443
Special mention			99						776						643						434						161						219						826						—						—						3,158
Substandard			69						960						792						443						234						663						1,395						—						—						4,556
Nonperforming			—						114						76						98						29						69						126						—						—						512
Total			6,224						24,411						28,962						15,625						8,327						17,318						57,089						—						(287)						157,669
Gross charge-offs			3						5						33						23						—						10						23						—						—						97
CRE:
Pass			445						3,377						4,593						2,577						1,890						5,227						1,171						—						(66)						19,214
Special mention			12						178						431						115						4						266						—						—						—						1,006
Substandard			99						348						370						233						202						349						60						—						—						1,661
Nonperforming			—						2						20						22						13						204						—						—						—						261
Total			556						3,905						5,414						2,947						2,109						6,046						1,231						—						(66)						22,142
Gross charge-offs			—						8						10						—						—						85						—						—						—						103
Commercial construction:
Pass			88						1,259						2,473						1,305						201						169						843						—						—						6,338
Special mention			1						15						428						187						44						—						100						—						—						775
Substandard			5						25						75						46						98						—						87						—						—						336
Nonperforming			—						—						23						—						—						—						—						—						—						23
Total			94						1,299						2,999						1,538						343						169						1,030						—						—						7,472
Gross charge-offs			—						—						—						—						—						—						—						—						—						—
Consumer:
Residential mortgage:
Current			304						2,847						13,316						16,264						5,648						15,277						—						—						—						53,656
30 - 89 days past due			6						23						62						57						38						452						—						—						—						638
90 days or more past due			—						16						34						29						30						332						—						—						—						441
Nonperforming			—						—						9						15						6						121						—						—						—						151
Total			310						2,886						13,421						16,365						5,722						16,182						—						—						—						54,886
Gross charge-offs			—						—						—						—						—						1						—						—						—						1
Home equity:
Current			—						—						—						—						—						—						6,070						3,556						—						9,626
30 - 89 days past due			—						—						—						—						—						—						41						18						—						59
90 days or more past due			—						—						—						—						—						—						6						4						—						10
Nonperforming			—						—						—						—						—						—						47						83						—						130
Total			—						—						—						—						—						—						6,164						3,661						—						9,825
Gross charge-offs			—						—						—						—						—						—						3						—						—						3
Indirect auto:
Current			1,839						4,236						7,316						4,197						2,155						1,606						—						—						(1)						21,348
30 - 89 days past due			4						84						169						117						67						99						—						—						—						540
90 days or more past due			—						—						1						—						—						—						—						—						—						1
Nonperforming			—						32						79						59						35						51						—						—						—						256
Total			1,843						4,352						7,565						4,373						2,257						1,756						—						—						(1)						22,145
Gross charge-offs			—						24						62						27						14						27						—						—						—						154
Other consumer:
Current			2,248						8,866						6,960						3,312						1,693						2,017						2,677						15						3						27,791
30 - 89 days past due			10						73						69						30						15						22						6						1						—						226
90 days or more past due			—						11						5						—						—						—						2						—						—						18
Nonperforming			—						10						16						14						7						13						—						1						—						61
Total			2,258						8,960						7,050						3,356						1,715						2,052						2,685						17						3						28,096
Gross charge-offs			7						54						50						24						12						10						8						—						—						165
Credit card:
Current			—						—						—						—						—						—						4,836						23						—						4,859
30 - 89 days past due			—						—						—						—						—						—						70						4						—						74
90 days or more past due			—						—						—						—						—						—						54						2						—						56
Total			—						—						—						—						—						—						4,960						29						—						4,989
Gross charge-offs			—						—						—						—						—						—						75						2						—						77
Total			$	11,285					$	45,813					$	65,411					$	44,204					$	20,473					$	43,523					$	73,159					$	3,707					$	(351)					$	307,224
Gross charge-offs			$	10					$	91					$	155					$	74					$	26					$	133					$	109					$	2					$	—					$	600

16 Truist Financial Corporation

December 31, 2023 (Dollars in millions)			Amortized Cost Basis by Origination Year																																				Revolving Credit						Loans Converted to Term						Other**(1)**
2023						2022						2021						2020						2019						Prior															Total
Commercial:
Commercial and industrial:
Pass			$	26,836					$	29,877					$	15,683					$	8,436					$	5,918					$	11,539					$	55,026					$	—					$	(211)					$	153,104
Special mention			688						623						557						152						37						197						1,003						—						—						3,257
Substandard			754						628						428						290						289						367						1,201						—						—						3,957
Nonperforming			36						116						99						12						42						31						134						—						—						470
Total			28,314						31,244						16,767						8,890						6,286						12,134						57,364						—						(211)						160,788
Gross charge-offs			20						72						126						21						5						35						111						—						—						390
CRE:
Pass			3,760						4,931						2,651						1,903						2,813						2,666						1,221						—						(70)						19,875
Special mention			185						315						140						79						203						37						—						—						—						959
Substandard			259						350						190						65						243						289						56						—						—						1,452
Nonperforming			2						52						28						15						174						13						—						—						—						284
Total			4,206						5,648						3,009						2,062						3,433						3,005						1,277						—						(70)						22,570
Gross charge-offs			—						58						10						20						29						47						2						—						—						166
Commercial construction:
Pass			1,029						2,196						1,370						287						89						125						840						—						—						5,936
Special mention			3						218						208						—						—						—						1						—						—						430
Substandard			24						48						27						174						—						—						20						—						—						293
Nonperforming			—						23						—						—						1						—						—						—						—						24
Total			1,056						2,485						1,605						461						90						125						861						—						—						6,683
Gross charge-offs			—						5						—						—						—						—						—						—						—						5
Consumer:
Residential mortgage:
Current			2,846						13,481						16,509						5,738						2,822						12,865						—						—						—						54,261
30 - 89 days past due			10						52						43						38						40						456						—						—						—						639
90 or more days past due			7						22						25						31						28						326						—						—						—						439
Nonperforming			—						7						13						7						13						113						—						—						—						153
Total			2,863						13,562						16,590						5,814						2,903						13,760						—						—						—						55,492
Gross charge-offs			—						—						2						1						1						6						—						—						—						10
Home equity:
Current			—						—						—						—						—						—						6,175						3,675						—						9,850
30 - 89 days past due			—						—						—						—						—						—						47						23						—						70
90 days or more past due			—						—						—						—						—						—						7						4						—						11
Nonperforming			—						—						—						—						—						—						42						80						—						122
Total			—						—						—						—						—						—						6,271						3,782						—						10,053
Gross charge-offs			—						—						—						—						—						—						10						—						—						10
Indirect auto:
Current			4,611						8,049						4,689						2,479						1,330						639						—						—						(9)						21,788
30 - 89 days past due			83						213						150						86						71						66						—						—						—						669
90 days or more past due			—						1						1						—						—						—						—						—						—						2
Nonperforming			20						85						63						39						33						28						—						—						—						268
Total			4,714						8,348						4,903						2,604						1,434						733						—						—						(9)						22,727
Gross charge-offs			25						202						118						58						59						69						—						—						—						531
Other consumer:
Current			9,903						7,676						3,715						1,914						1,049						1,207						2,816						13						3						28,296
30 - 89 days past due			86						85						41						23						16						12						7						1						—						271
90 days or more past due			9						8						1						1						—						—						2						—						—						21
Nonperforming			6						14						14						8						6						10						—						1						—						59
Total			10,004						7,783						3,771						1,946						1,071						1,229						2,825						15						3						28,647
Gross charge-offs			97						166						93						50						34						14						23						—						—						477
Student:(2)
Gross charge-offs			—						—						—						—						—						108						—						—						—						108
Credit card:
Current			—						—						—						—						—						—						4,942						19						—						4,961
30 - 89 days past due			—						—						—						—						—						—						84						3						—						87
90 days or more past due			—						—						—						—						—						—						51						2						—						53
Total			—						—						—						—						—						—						5,077						24						—						5,101
Gross charge-offs			—						—						—						—						—						—						220						3						—						223
Total			$	51,157					$	69,070					$	46,645					$	21,777					$	15,217					$	30,986					$	73,675					$	3,821					$	(287)					$	312,061
Gross charge-offs			$	142					$	503					$	349					$	150					$	128					$	279					$	366					$	3					$	—					$	1,920

(1)Includes certain deferred fees and costs and other adjustments.

(2)Truist sold its student loan portfolio at the end of the second quarter of 2023. Charge-offs include $98 million related to the sale.

Truist Financial Corporation 17

ACL

The following tables present activity in the ACL:

(Dollars in millions)						Balance at Jan 1, 2023						Charge-Offs						Recoveries						Provision (Benefit)						Other**(1)**						Balance at Mar 31, 2023
Commercial:
Commercial and industrial						$	1,409					$	(75)					$	13					$	151					$	(1)					$	1,497
CRE						224						(6)						1						32						—						251
Commercial construction						46						—						1						40						—						87
Consumer:
Residential mortgage						399						(1)						2						13						(81)						332
Home equity						90						(2)						6						(7)						—						87
Indirect auto						981						(127)						26						100						13						993
Other consumer						770						(105)						17						98						(1)						779
Student(2)						98						(5)						—						5						—						98
Credit card						360						(51)						9						40						(3)						355
ALLL						4,377						(372)						75						472						(73)						4,479
RUFC						272						—						—						10						—						282
ACL						$	4,649					$	(372)					$	75					$	482					$	(73)					$	4,761
(Dollars in millions)						Balance at Jan 1, 2024						Charge-Offs						Recoveries						Provision (Benefit)						Other**(1)**						Balance at Mar 31, 2024
Commercial:
Commercial and industrial						$	1,404					$	(97)					$	32					$	22					$	(1)					$	1,360
CRE						616						(103)						7						143						—						663
Commercial construction						174						—						—						24						—						198
Consumer:
Residential mortgage						298						(1)						1						(76)						—						222
Home equity						89						(3)						5						(1)						—						90
Indirect auto						942						(154)						28						107						—						923
Other consumer						890						(165)						28						206						—						959
Credit card						385						(77)						9						71						—						388
ALLL						4,798						(600)						110						496						(1)						4,803
RUFC						295						—						—						4						(2)						297
ACL						$	5,093					$	(600)					$	110					$	500					$	(3)					$	5,100

(1)Includes the amounts for the ALLL for PCD acquisitions, the impact of adopting the Troubled Debt Restructurings and Vintage Disclosures accounting standard, and other activity.

(2)Truist sold its student loan portfolio at the end of the second quarter of 2023.

The commercial ALLL increased $27 million and the consumer ALLL decreased $25 million for the three months ended March 31, 2024. The increase in the commercial ALLL primarily reflects an increase in reserves related to the CRE and commercial construction portfolios. The decrease in the consumer ALLL primarily reflects a reduction in loan volume and consideration of continued performance and improved outlook in consumer real estate, partially offset by an increase in certain consumer non-real estate portfolios.

The quantitative models have been designed to estimate losses using macro-economic forecasts over a reasonable and supportable forecast period of two years, followed by a reversion to long-term historical loss conditions over a one-year period. Forecasts of macroeconomic variables used in loss forecasting include, but are not limited to, unemployment trends, U.S. real GDP, corporate credit spreads, property values, home price indices, and used car prices.

The overall economic forecast incorporates a third-party baseline forecast that is adjusted to reflect Truist’s interest rate outlook. Management also considers optimistic and pessimistic third-party macro-economic forecasts in order to capture uncertainty in the economic environment. These forecasts, along with the primary economic forecast, are weighted 40% baseline, 30% optimistic, and 30% pessimistic in the March 31, 2024 ACL, unchanged since December 31, 2023. While the scenario weightings were unchanged, the economic outlook relative to the prior period varied by economic variables, including improvement in certain variables (e.g., House Price Index) and projected softness in others over the reasonable and supportable forecast period. The overall economic forecast shaping the ACL estimate at March 31, 2024 included GDP growth in the low-single digits and an unemployment rate near the mid-single digits.

18 Truist Financial Corporation

Quantitative models have certain limitations with respect to estimating expected losses, particularly in times of rapidly changing macro-economic conditions and forecasts. As a result, management believes that the qualitative component of the ACL, which incorporates management’s expert judgment related to expected future credit losses, will continue to be an important component of the ACL for the foreseeable future. The March 31, 2024 ACL estimate includes adjustments to consider the impact of current and expected events or risks not captured by the loss forecasting models, the outcomes of which are uncertain and may not be completely considered by quantitative models. Refer to “Note 1. Basis of Presentation” in Truist’s Annual Report on Form 10-K for the year ended December 31, 2023 for additional information.

NPAs

The following table provides a summary of nonperforming loans and leases, excluding LHFS:

			March 31, 2024												December 31, 2023
			Recorded Investment												Recorded Investment
(Dollars in millions)			Without an ALLL						With an ALLL						Without an ALLL						With an ALLL
Commercial:
Commercial and industrial			$	100					$	412					$	123					$	347
CRE			20						241						154						130
Commercial construction			23						—						—						24
Consumer:
Residential mortgage			1						150						1						152
Home equity			2						128						1						121
Indirect auto			24						232						20						248
Other consumer			—						61						—						59
Total			$	170					$	1,224					$	299					$	1,081

The following table presents a summary of nonperforming assets and residential mortgage loans in the process of foreclosure:

(Dollars in millions)			Mar 31, 2024						Dec 31, 2023
Nonperforming loans and leases HFI			$	1,394					$	1,380
Nonperforming LHFS			22						51
Foreclosed real estate			4						3
Other foreclosed property			56						54
Total nonperforming assets			$	1,476					$	1,488
Residential mortgage loans in the process of foreclosure			$	201					$	214

Loan Modifications

The following tables summarize the amortized cost basis and the weighted average financial effect of loans to borrowers experiencing financial difficulty that were modified during the period, disaggregated by class of financing receivable and type of modification granted.

Three Months Ended March 31, 2024 (Dollars in millions)			Renewals						Term Extensions						Capitalizations						Payment Delays						Combination - Interest Rate Adjustment and Term Extension						Combination - Capitalization and Term Extension						Combination - Capitalization, Interest Rate and Term Extension						Other						Total Modified Loans						Percentage of Total Class of Financing Receivable
Commercial:
Commercial and industrial			$	142					$	—					$	—					$	1					$	—					$	—					$	—					$	15					$	158					0.10		%
CRE			167						—						—						10						—						—						—						13						190						0.86
Commercial construction			45						—						—						—						—						—						—						—						45						0.60
Consumer:
Residential mortgage			—						19						13						16						—						55						9						1						113						0.21
Home equity			—						—						—						—						2						—						—						—						2						0.02
Indirect auto			—						6						—						549						4						—						—						3						562						2.54
Other consumer			—						9						—						—						1						—						—						—						10						0.04
Credit card			—						—						—						—						—						—						—						10						10						0.20
Total			$	354					$	34					$	13					$	576					$	7					$	55					$	9					$	42					$	1,090					0.35		%

Truist Financial Corporation 19

Three Months Ended March 31, 2023 (Dollars in millions)			Renewals						Term Extensions						Capitalizations						Payment Delays						Combination - Interest Rate Adjustment and Term Extension						Combination - Capitalization and Term Extension						Combination - Capitalization, Interest Rate and Term Extension						Other						Total Modified Loans						Percentage of Total Class of Financing Receivable
Commercial:
Commercial and industrial			$	390					$	51					$	—					$	—					$	—					$	—					$	—					$	—					$	441					0.26		%
CRE			103						—						—						71						—						—						—						—						174						0.77
Commercial construction			1						—						—						—						—						—						—						—						1						0.02
Consumer:
Residential mortgage			—						29						32						25						1						92						20						4						203						0.36
Home equity			—						—						—						—						2						—						—						1						3						0.03
Indirect auto			—						5						—						5						5						—						—						6						21						0.08
Other consumer			—						5						—						—						1						—						—						1						7						0.03
Credit card			—						—						—						—						—						—						—						5						5						0.10
Total			$	494					$	90					$	32					$	101					$	9					$	92					$	20					$	17					$	855					0.26		%

Three Months Ended March 31, 2024
Loan Type						Financial Effect
Renewals
Commercial and industrial						Extended the term by 11 months and increased the interest rate by 0.5%
CRE						Extended the term by 6 months and increased the interest rate by 0.5%
Commercial construction						Extended the term by 11 months and increased the interest rate by 0.1%
Term Extensions
Residential mortgage						Extended the term by 105 months.
Indirect auto						Extended the term by 26 months.
Other consumer						Extended the term by 26 months.
Capitalizations
Residential mortgage						Capitalized a portion of forborne loan and other advanced payments into the outstanding loan balance.
Payment Delays
Commercial and industrial						Provided 90 days of payment deferral.
CRE						Provided 90 days of payment deferral.
Residential mortgage						Provided 193 days of payment deferral.
Indirect auto						Provided 186 days of payment deferral.
Combination - Interest Rate Adjustment and Term Extension
Home equity						Extended the term by 275 months and decreased the interest rate by 3%.
Indirect auto						Extended the term by 33 months and decreased the interest rate by 3%.
Other consumer						Extended the term by 61 months and increased the interest rate by 0.025%.
Combination - Capitalization and Term Extension
Residential mortgage						Capitalized a portion of forborne loan and other advanced payments into the outstanding loan balance and extended the term by 85 months.
Combination - Capitalization, Interest Rate and Term Extension
Residential mortgage						Capitalized a portion of forborne loan and other advanced payments into the outstanding loan balance, extended the term by 134 months, and decreased the interest rate by 0.5%.

20 Truist Financial Corporation

Three Months Ended March 31, 2023
Loan Type						Financial Effect
Renewals
Commercial and industrial						Extended the term by 4 months and increased the interest rate by 0.4%.
CRE						Extended the term by 9 months and increased the interest rate by 0.1%.
Commercial construction						Extended the term by 5 months.
Term Extensions
Commercial and industrial						Extended the term by 3 months.
Residential mortgage						Extended the term by 158 months.
Indirect auto						Extended the term by 25 months.
Other Consumer						Extended the term by 25 months.
Capitalizations
Residential mortgage						Capitalized a portion of forborne loan and other advanced payments into the outstanding loan balance.
Payment Delays
CRE						Provided 233 days of payment deferral.
Residential mortgage						Provided 195 days of payment deferral.
Indirect auto						Provided 129 days of payment deferral.
Combination - Interest Rate Adjustment and Term Extension
Residential mortgage						Extended the term by 97 months and decreased the interest rate by 0.8%.
Home equity						Extended the term by 318 months and decreased the interest rate by 2.3%.
Indirect auto						Extended the term by 11 months and decreased the interest rate by 7%.
Other consumer						Extended the term by 101 months and decreased the interest rate by 3%.
Combination - Capitalization and Term Extension
Residential mortgage						Capitalized a portion of forborne loan and other advanced payments into the outstanding loan balance and extended the term by 111 months.
Combination - Capitalization, Interest Rate and Term Extension
Residential mortgage						Capitalized a portion of forborne loan and other advanced payments into the outstanding loan balance, extended the term by 82 months, and decreased the interest rate by 0.3%.

The tables above exclude trial modifications totaling $40 million and $64 million for the three months ended March 31, 2024 and 2023, respectively. Such modifications will be included in the modification activity disclosure if the borrower successfully completes the trial period and the loan modification is finalized.

As of March 31, 2024 and December 31, 2023, Truist had $489 million and $702 million, respectively, in unfunded lending commitments to lend additional funds to borrowers experiencing financial difficulty for which Truist has modified the terms of the receivables in the ways described above during the twelve months preceding March 31, 2024 and December 31, 2023, respectively.

Upon Truist’s determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount.

Truist Financial Corporation 21

Truist closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table summarizes the period-end delinquency status and amortized cost of loans that were modified in the last 12 months. The period-end delinquency status of loans that were modified are disclosed at amortized cost and reflect the impact of any paydowns, payoffs, and/or charge-offs that occurred subsequent to modification.

			Payment Status (Amortized Cost Basis)
March 31, 2024 (Dollars in millions)			Current						30-89 Days Past Due						90 Days or More Past Due						Total
Commercial:
Commercial and industrial			$	844					$	8					$	61					$	913
CRE			352						19						—						371
Commercial construction			70						—						—						70
Consumer:
Residential mortgage			379						96						87						562
Home equity			10						1						—						11
Indirect auto			888						154						23						1,065
Other consumer			28						1						—						29
Credit card			15						4						2						21
Total			$	2,586					$	283					$	173					$	3,042
Total nonaccrual loans included above			$	339					$	46					$	107					$	492
			Payment Status (Amortized Cost Basis)
December 31, 2023 (Dollars in millions)			Current						30-89 Days Past Due						90 Days or More Past Due						Total
Commercial:
Commercial and industrial			$	887					$	48					$	92					$	1,027
CRE			233						11						1						245
Commercial construction			22						—						—						22
Consumer:
Residential mortgage			427						116						90						633
Home equity			11						—						—						11
Indirect auto			730						148						20						898
Other consumer			24						1						—						25
Credit card			11						3						2						16
Total			$	2,345					$	327					$	205					$	2,877
Total nonaccrual loans included above			$	155					$	85					$	137					$	377

22 Truist Financial Corporation

The following table provides the amortized cost basis of financing receivables that were modified and were in payment default in the last twelve months:

March 31, 2024 (Dollars in millions)			Renewals						Term Extensions						Capitalizations						Payment Delays						Combination - Capitalization and Term Extension						Combination - Capitalization, Interest Rate and Term Extension						Other						Total
Commercial:
Commercial and industrial			$	45					$	—					$	—					$	1					$	—					$	—					$	15					$	61
Consumer:
Residential mortgage			—						16						3						34						30						3						1						87
Indirect auto			—						1						—						20						—						—						2						23
Credit card			—						—						—						—						—						—						2						2
Total			$	45					$	17					$	3					$	55					$	30					$	3					$	20					$	173
December 31, 2023 (Dollars in millions)			Renewals						Term Extensions						Capitalizations						Payment Delays						Combination - Capitalization and Term Extension						Combination - Capitalization, Interest Rate and Term Extension						Other						Total
Commercial:
Commercial and industrial			$	72					$	—					$	—					$	20					$	—					$	—					$	—					$	92
CRE			1						—						—						—						—						—						—						1
Consumer:
Residential mortgage			—						13						6						34						31						5						1						90
Indirect auto			—						1						—						17						—						—						2						20
Credit card			—						—						—						—						—						—						2						2
Total			$	73					$	14					$	6					$	71					$	31					$	5					$	5					$	205

Unearned Income, Discounts, and Net Deferred Loan Fees and Costs

The following table presents additional information about loans and leases:

(Dollars in millions)			Mar 31, 2024						Dec 31, 2023
Unearned income, discounts, and net deferred loan fees and costs			$	571					$	553

Truist Financial Corporation 23

NOTE 6. Goodwill and Other Intangible Assets

Effective January 1, 2024, several business activities were realigned reflecting updates to the Company’s operating structure. First, the CB&W segment was renamed CSBB and the C&CB segment was renamed WB. Second, the Wealth business was realigned into the WB segment from the CSBB segment, representing a separate reporting unit in that segment. Third, the small business banking client segmentation was realigned into the CSBB segment from the WB segment. Further, TIH was the principal legal entity of the IH segment. As the operations of TIH are now included in discontinued operations, the Company no longer presents the IH segment as one of its reportable segments. Following the realignment of these business activities, the Company’s three reporting units with goodwill balances are CSBB, WB, and Wealth.

In conjunction with these realignments, goodwill of $1.7 billion was realigned to WB from CSBB based on the relative fair value of CSBB and Wealth, and goodwill of $220 million was realigned to CSBB from WB based on the relative fair value of WB and the realigned small business banking client segmentation. In addition, the Company completed an assessment of any potential goodwill impairment for all impacted reporting units immediately prior and subsequent to the realignments and determined that no impairment existed. The quantitative valuation of WB performed in conjunction with these goodwill realignments indicated that as of January 1, 2024, the fair value of the WB reporting unit exceeded its carrying value by less than 10%, indicating that the goodwill of the WB reporting unit may be at risk of impairment.

The Company monitored events and circumstances during the period from January 1, 2024 to March 31, 2024, including macroeconomic and market factors, industry and banking sector events, Truist specific performance indicators, a comparison of management’s forecast and assumptions to those used in its January 1, 2024 quantitative valuations associated with the realignments of goodwill, and the sensitivity of the January 1, 2024 quantitative results to changes in assumptions as of March 31, 2024. Based on these considerations, Truist concluded that it was not more-likely-than-not that the fair value of one or more of its reporting units is below its respective carrying amount as of March 31, 2024.

The changes in the carrying amount of goodwill attributable to operating segments are reflected in the table below. Activity during 2024 primarily relates to the segment realignment described above. Refer to “Note 2. Discontinued Operations” for additional information related to discontinued operations and “Note 18. Operating Segments” for additional information on segments.

(Dollars in millions)			CSBB						WB						Total
Goodwill, December 31, 2023			$	13,503					$	3,653					$	17,156
Segment realignment			(1,498)						1,498						—
Adjustments and other			—						1						1
Goodwill, March 31, 2024			$	12,005					$	5,152					$	17,157

The following table, which excludes fully amortized intangibles, presents information for identifiable intangible assets:

						March 31, 2024																		December 31, 2023
(Dollars in millions)			Gross Carrying Amount						Accumulated Amortization						Net Carrying Amount						Gross Carrying Amount						Accumulated Amortization						Net Carrying Amount
CDI						$	2,473					$	(1,703)					$	770					$	2,473					$	(1,650)					$	823
Other, primarily client relationship intangibles						1,593						(547)						1,046						1,598						(512)						1,086
Total						$	4,066					$	(2,250)					$	1,816					$	4,071					$	(2,162)					$	1,909

24 Truist Financial Corporation

NOTE 7. Loan Servicing

The Company acquires servicing rights, and retains servicing rights related to certain of its sales or securitizations of residential mortgages, commercial mortgages, and other consumer loans. Servicing rights are capitalized by the Company as Loan servicing rights on the Consolidated Balance Sheets. Income earned by the Company on its loan servicing rights is derived primarily from contractually specified servicing fees, late fees, net of curtailment costs, and other ancillary fees.

Residential Mortgage Activities

The following tables summarize residential mortgage servicing activities:

(Dollars in millions)						Mar 31, 2024						Dec 31, 2023
UPB of residential mortgage loan servicing portfolio						$	265,890					$	269,068
UPB of residential mortgage loans serviced for others, primarily agency conforming fixed rate						210,635						213,399
Mortgage loans sold with recourse						167						173
Maximum recourse exposure from mortgage loans sold with recourse liability						105						109
Indemnification, recourse and repurchase reserves						49						52
As of / For the Three Months Ended March 31, (Dollars in millions)						2024						2023
UPB of residential mortgage loans sold from LHFS						$	1,763					$	2,507
Pre-tax gains recognized on mortgage loans sold and held for sale						15						16
Servicing fees recognized from mortgage loans serviced for others						147						163
Approximate weighted average servicing fee on the outstanding balance of residential mortgage loans serviced for others						0.28		%				0.27		%
Weighted average interest rate on mortgage loans serviced for others						3.59						3.52

The following table presents a roll forward of the carrying value of residential MSRs recorded at fair value:

(Dollars in millions)						2024						2023
Residential MSRs, carrying value, January 1						$	3,088					$	3,428
Additions						30						44
Sales						(1)						(428)
Change in fair value due to changes in valuation inputs or assumptions(1)						77						(1)
Realization of expected net servicing cash flows, passage of time, and other						(60)						(57)
Residential MSRs, carrying value, March 31						$	3,134					$	2,986

(1)The three months ended March 31, 2023 includes realized gains on the portfolio sale of excess servicing.

The sensitivity of the fair value of the Company’s residential MSRs to changes in key assumptions is presented in the following table:

			March 31, 2024																		December 31, 2023
			Range												Weighted Average						Range												Weighted Average
(Dollars in millions)			Min						Max									Min						Max
Prepayment speed			6.5		%				17.3		%				7.3		%				6.7		%				18.2		%				7.5		%
Effect on fair value of a 10% increase															$	(82)																	$	(82)
Effect on fair value of a 20% increase															(158)																		(160)
OAS			2.4		%				11.9		%				4.5		%				2.2		%				12.0		%				4.6		%
Effect on fair value of a 10% increase															$	(60)																	$	(60)
Effect on fair value of a 20% increase															(117)																		(118)
Composition of loans serviced for others:
Fixed-rate residential mortgage loans															99.6		%																99.6		%
Adjustable-rate residential mortgage loans															0.4																		0.4
Total															100.0		%																100.0		%
Weighted average life															7.6 years																		7.5 years

The sensitivity calculations above are hypothetical and should not be considered predictive of future performance. As indicated, changes in fair value based on adverse changes in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, in the above table, the effect of an adverse variation in one assumption on the fair value of the MSRs is calculated without changing any other assumption; while in reality, changes in one factor may result in changes in another, which may magnify or counteract the effect of the change. See “Note 15. Fair Value Disclosures” for additional information on the valuation techniques used.

Truist Financial Corporation 25

Commercial Mortgage Activities

The following table summarizes commercial mortgage servicing activities:

(Dollars in millions)			Mar 31, 2024						Dec 31, 2023
UPB of CRE mortgages serviced for others			$	29,075					$	31,681
CRE mortgages serviced for others covered by recourse provisions			9,656						9,661
Maximum recourse exposure from CRE mortgages sold with recourse liability			2,813						2,813
Recorded reserves related to recourse exposure			14						16
CRE mortgages originated during the year-to-date period			276						2,989
Commercial MSRs at fair value			268						272

NOTE 8. Other Assets and Liabilities

Lessee Operating and Finance Leases

The Company leases certain assets, consisting primarily of real estate, and assesses at contract inception whether a contract is, or contains, a lease. The following tables present additional information on leases, excluding leases related to the lease financing businesses:

			March 31, 2024												December 31, 2023
(Dollars in millions)			Operating Leases						Finance Leases						Operating Leases						Finance Leases
ROU assets			$	1,033					$	9					$	1,057					$	10
Total lease liabilities			1,355						11						1,387						12
Weighted average remaining term			6.1 years						6.6 years						6.2 years						6.6 years
Weighted average discount rate			3.2		%				5.2		%				3.1		%				5.1		%

									Three Months Ended March 31,
(Dollars in millions)															2024						2023
Operating lease costs															$	77					$	73

Lessor Operating Leases

The Company’s two primary lessor businesses are equipment financing and structured real estate with income recorded in Operating lease income on the Consolidated Statements of Income. The following table presents a summary of assets under operating leases held for investment. This table excludes subleases on assets included in premises and equipment.

(Dollars in millions)									Mar 31, 2024						Dec 31, 2023
Assets held under operating leases(1)(2)									$	2,138					$	2,160
Accumulated depreciation									(564)						(583)
Net									$	1,574					$	1,577

(1)Includes certain land parcels subject to operating leases that have indefinite lives.

(2)Excludes operating leases held-for-sale that totaled $40 million and $32 million at March 31, 2024 and December 31, 2023, respectively.

Bank-Owned Life Insurance

Bank-owned life insurance consists of life insurance policies held on certain teammates for which the Company is the beneficiary. The carrying value of bank-owned life insurance was $7.7 billion at March 31, 2024 and December 31, 2023.

26 Truist Financial Corporation

NOTE 9. Borrowings

The following table presents a summary of short-term borrowings:

(Dollars in millions)						Mar 31, 2024									Dec 31, 2023
FHLB advances						$	22,500											$	20,500
Securities sold under agreements to repurchase						1,589												2,427
Securities sold short						2,034												1,625
Other short-term borrowings						206												276
Total short-term borrowings						$	26,329											$	24,828

The following table presents a summary of long-term debt:

(Dollars in millions)																																	Mar 31, 2024						Dec 31, 2023
																								Carrying Amount						Carrying Amount
Truist Financial Corporation:
Fixed rate senior notes(1)																																	$	23,103					$	19,808
Floating rate senior notes																																	999						999
Fixed rate subordinated notes(1)(2)																																	1,818						1,831
Capital notes(2)																																	630						629
Truist Bank:
Fixed rate senior notes																																	4,184						4,170
Floating rate senior notes																																	—						1,250
Fixed rate subordinated notes(2)																																	4,748						4,770
Floating rate FHLB advances																																	2,200						4,200
Other long-term debt(3)																																	1,389						1,261
Total long-term debt																																	$	39,071					$	38,918

(1)Certain senior and subordinated notes convert from fixed to floating one year prior to maturity, and are callable within the final year of maturity at par.

(2)Subordinated and capital notes with a remaining maturity of one year or greater qualify under the risk-based capital guidelines as Tier 2 supplementary capital, subject to certain limitations.

(3)Includes debt associated with finance leases, tax credit investments, and other.

Truist Financial Corporation 27

NOTE 10. Shareholders’ Equity

Common Stock

The following table presents total dividends declared per share of common stock:

												Three Months Ended March 31,
																		2024						2023
Cash dividends declared per share																		$	0.52					$	0.52

NOTE 11. AOCI

AOCI includes the after-tax change in unrecognized net costs related to defined benefit pension and OPEB plans as well as unrealized gains and losses on cash flow hedges, AFS securities, and HTM securities transferred from AFS securities.

(Dollars in millions)			Pension and OPEB Costs						Cash Flow Hedges						AFS Securities						HTM Securities						Other, net						Total
AOCI balance, January 1, 2023			$	(1,535)					$	(78)					$	(9,395)					$	(2,588)					$	(5)					$	(13,601)
OCI before reclassifications, net of tax			(26)						125						903						—						1						1,003
Amounts reclassified from AOCI:
Before tax			16						—						(65)						70						—						21
Tax effect			4						—						(15)						15						—						4
Amounts reclassified, net of tax			12						—						(50)						55						—						17
Total OCI, net of tax			(14)						125						853						55						1						1,020
AOCI balance, March 31, 2023			$	(1,549)					$	47					$	(8,542)					$	(2,533)					$	(4)					$	(12,581)
AOCI balance, January 1, 2024			$	(1,079)					$	(300)					$	(8,778)					$	(2,347)					$	(2)					$	(12,506)
OCI before reclassifications, net of tax			1						(232)						(455)						—						(2)						(688)
Amounts reclassified from AOCI:
Before tax			—						55						(158)						66						—						(37)
Tax effect			—						13						(37)						15						—						(9)
Amounts reclassified, net of tax			—						42						(121)						51						—						(28)
Total OCI, net of tax			1						(190)						(576)						51						(2)						(716)
AOCI balance, March 31, 2024			$	(1,078)					$	(490)					$	(9,354)					$	(2,296)					$	(4)					$	(13,222)

28 Truist Financial Corporation

NOTE 12. Income Taxes

For the three months ended March 31, 2024 and 2023, the provision for income taxes from continuing operations was $232 million and $361 million, respectively, representing effective tax rates of 17.0% and 20.4%, respectively. The lower effective tax rate for the three months ended March 31, 2024 was primarily due to a decrease in the full year forecasted pre-tax earnings. The Company calculated the provision for income taxes by applying the estimated annual effective tax rate to year-to-date pre-tax income and adjusting for discrete items that occurred during the period.

NOTE 13. Benefit Plans

The components of net periodic (benefit) cost for defined benefit pension plans are summarized in the following table:

						Three Months Ended March 31,
(Dollars in millions)			Income Statement Location			2024						2023
Service cost(1)			Personnel expense / Net income from discontinued operations			$	96					$	93
Interest cost			Other expense			108						111
Estimated return on plan assets			Other expense			(244)						(228)
Amortization and other			Other expense			1						20
Net periodic (benefit) cost						$	(39)					$	(4)

(1)Includes $7 million for the three months ended March 31, 2024 and 2023 of service cost reported in net income from discontinued operations for the qualified defined benefit pension plan for employees of TIH. Following the sale of TIH, Truist will (i) no longer recognize the service costs for TIH employees, (ii) retain the related postretirement benefit obligation for TIH employees, and (iii) remeasure the postretirement benefit obligation of the plan.

Truist makes contributions to the qualified pension plans up to the maximum amount deductible for federal income tax purposes. Truist did not make a discretionary contribution to the pension plan during the three months ended March 31, 2024.

NOTE 14. Commitments and Contingencies

Truist utilizes a variety of financial instruments to mitigate exposure to risks and meet the financing needs and provide investment opportunities for clients. These financial instruments include commitments to extend credit, letters of credit and financial guarantees, derivatives, and other investments. Truist also has commitments to fund certain affordable housing investments and contingent liabilities related to certain sold loans.

Tax Credit and Certain Equity Investments

The following table summarizes certain tax credit and certain equity investments:

(Dollars in millions)			Balance Sheet Location			Mar 31, 2024						Dec 31, 2023
Investments in affordable housing projects and other qualified tax credits:
Carrying amount			Other assets			$	6,907					$	6,754
Amount of future funding commitments included in carrying amount			Other liabilities			2,515						2,473
Lending exposure			Loans and leases for funded amounts			2,044						1,981
Renewable energy investments:
Carrying amount			Other assets			291						285
Amount of future funding commitments not included in carrying amount			NA			744						747
SBIC and certain other equity method investments:
Carrying amount			Other assets			774						758
Amount of future funding commitments not included in carrying amount			NA			560						589

Truist Financial Corporation 29

The following table presents a summary of tax credits and amortization expense associated with the Company’s tax credit investment activity. Activity related to the Company’s renewable energy investments, other than qualified tax credits, was immaterial.

						Three Months Ended March 31,
(Dollars in millions)			Income Statement Location			2024						2023
Tax credits:
Investments in affordable housing projects, other qualified tax credits, and other community development investments			Provision for income taxes			$	185					$	157
Amortization and other changes in carrying amount:
Investments in affordable housing projects and other qualified tax credits			Provision for income taxes			$	171					$	148
Other community development investments			Other noninterest income			2						2

Letters of Credit and Financial Guarantees

In the normal course of business, Truist utilizes certain financial instruments to meet the financing needs of clients and to mitigate exposure to risks. Such financial instruments include commitments to extend credit and certain contractual agreements, including standby letters of credit and financial guarantee arrangements.

The following is a summary of selected notional amounts of off-balance sheet financial instruments:

(Dollars in millions)			Mar 31, 2024						Dec 31, 2023
Commitments to extend, originate, or purchase credit and other commitments			$	207,966					$	207,285
Residential mortgage loans sold with recourse			167						173
CRE mortgages serviced for others covered by recourse provisions			9,656						9,661
Other loans serviced for others covered by recourse and other provisions			1,247						1,032
Letters of credit			6,513						6,239

Total Return Swaps

The Company facilitates matched book TRS transactions on behalf of clients, whereby a VIE purchases reference assets identified by a client and the Company enters into a TRS with the VIE, with a mirror-image TRS facing the client. The Company provides senior financing to the VIE in the form of demand notes to fund the purchase of the reference assets. Reference assets are typically fixed income instruments primarily composed of syndicated bank loans. The TRS contracts pass through interest and other cash flows on the reference assets to the third-party clients, along with exposing those clients to decreases in value on the assets and providing them with the rights to appreciation on the assets. The terms of the TRS contracts require the third parties to post initial margin collateral, as well as ongoing margin as the fair values of the underlying reference assets change. The following table provides a summary of the TRS transactions with VIE purchases. VIE assets include trading loans and bonds:

(Dollars in millions)						Mar 31, 2024						Dec 31, 2023
Total return swaps:
VIE assets						$	1,698					$	1,641
Trading loans and bonds						1,645						1,572
VIE liabilities						105						50

The Company concluded that the associated VIEs should be consolidated because the Company has (i) the power to direct the activities that most significantly impact the economic performance of the VIE and (ii) the obligation to absorb losses and the right to receive benefits, which could potentially be significant. The activities of the VIEs are restricted to buying and selling the reference assets, and the risks/benefits of any such assets owned by the VIEs are passed to the third-party clients via the TRS contracts. For additional information on TRS contracts and the related VIEs, see “Note 16. Derivative Financial Instruments.”

30 Truist Financial Corporation

Pledged Assets

Certain assets were pledged to secure municipal deposits, securities sold under agreements to repurchase, certain derivative agreements, and borrowings or borrowing capacity, as well as to fund certain obligations related to nonqualified defined benefit and defined contribution retirement plans and for other purposes as required or permitted by law. Assets pledged to the FHLB and FRB are subject to applicable asset discounts when determining borrowing capacity. The Company has capacity for secured financing from both the FRB and FHLB and letters of credit from the FHLB. The Company’s letters of credit from the FHLB can be used to secure various client deposits, including public fund relationships. Excluding assets related to nonqualified benefit plans, the majority of the agreements governing the pledged assets do not permit the other party to sell or repledge the collateral. The following table provides the total carrying amount of pledged assets by asset type:

(Dollars in millions)						Mar 31, 2024						Dec 31, 2023
Pledged securities						$	40,105					$	41,270
Pledged loans:
FRB						71,692						73,898
FHLB						66,946						67,748
Unused borrowing capacity:
FRB						53,548						55,252
FHLB						25,031						24,712

Legal Proceedings and Other Matters

Truist and its subsidiaries are routinely named as defendants in or parties to numerous actual or threatened legal proceedings and other matters and are or may be subject to potential liability in connection with them. The legal proceedings and other matters may be formal or informal and include litigation and arbitration with one or more identified claimants, certified or purported class actions with yet-to-be-identified claimants, and regulatory or other governmental information-gathering requests, examinations, investigations, and enforcement proceedings. Claims may be based in law or equity—such as those arising under contracts or in tort and those involving banking, consumer-protection, securities, antitrust, tax, employment, and other laws—and some present novel legal theories, allegations of substantial or indeterminate damages, demands for injunctive or similar relief, and requests for fines, penalties, restitution, or alterations in Truist’s business practices. Our legal proceedings and other matters exist in varying stages of adjudication, arbitration, negotiation, or investigation and span our business lines and operations.

The course and outcome of legal proceedings and other matters are inherently unpredictable. This is especially so when a matter is still in its early stages, the damages sought are indeterminate or unsupported, significant facts are unclear or disputed, novel questions of law or other meaningful legal uncertainties exist, a request to certify a proceeding as a class action is outstanding or granted, multiple parties are named, or regulatory or other governmental entities are involved. As a result, we often are unable to determine how or when actual or threatened legal proceedings and other matters will be resolved and what losses may be incrementally and ultimately incurred. It is possible that the ultimate resolution of these matters, including those described below, if unfavorable, may be material to the consolidated financial position, consolidated results of operations, or consolidated cash flows of Truist, or cause significant reputational consequences.

Truist establishes accruals for legal proceedings and other matters when potential losses become probable and the amount of loss can be reasonably estimated. Accruals are evaluated each quarter and may be adjusted, upward or downward, based on our best judgment after consultation with counsel and others. No assurance exists that our accruals will not need to be adjusted in the future. Actual losses may be higher or lower than any amounts accrued, possibly to a significant degree.

The Company estimates reasonably possible losses, in excess of amounts accrued, of up to approximately $375 million as of March 31, 2024. This estimate does not represent Truist’s maximum loss exposure, and actual losses may vary significantly. Also, the outcome of a particular matter may be one that the Company did not take into account in its estimate because the Company judged the likelihood of that outcome to be remote. In addition, the matters underlying this estimate may change from time to time. Estimated losses, like accruals, are based upon currently available information and involve considerable uncertainties and judgment.

For certain matters, Truist may be unable to estimate the loss or range of loss, even if it believes that a loss is probable or reasonably possible, until developments in the matter provide additional information sufficient to support such an estimate. These matters are not accrued for and are not reflected in the estimate of reasonably possible losses.

Truist Financial Corporation 31

The following is a description of certain legal proceedings and other matters in which Truist is involved:

Bickerstaff v. SunTrust Bank

This class action case was filed in Fulton County State Court on July 12, 2010, and an amended complaint was filed on August 9, 2010. Plaintiff alleges that all overdraft fees charged to his account which related to debit card and ATM transactions are actually interest charges and therefore subject to the usury laws of Georgia. The amended complaint asserts claims for violations of civil and criminal usury laws, conversion, and money had and received, and seeks damages on a class-wide basis, including refunds of challenged overdraft fees and pre-judgment interest. On October 6, 2017, the trial court granted plaintiff’s motion for class certification and defined the class as “Every Georgia citizen who had or has one or more accounts with SunTrust Bank and who, from July 12, 2006, to October 6, 2017 (i) had at least one overdraft of $500.00 or less resulting from an ATM or debit card transaction (the “Transaction”); (ii) paid any Overdraft Fees as a result of the Transaction; and (iii) did not receive a refund of those Fees,” and the granting of a certified class was affirmed on appeal. The class seeks a return of up to $452 million in paid overdraft fees from the 2006 to 2017 period above, plus prejudgment interest which, based on the amount of claimed fees, was estimated to be approximately $407 million as of March 31, 2024. A court-ordered mediation was held on February 28, 2024, but no resolution was reached. On March 4, 2024, the trial court issued an order granting in part and denying in part Truist’s motions to amend the class definition to narrow the scope of the class, to compel arbitration against certain class members, and for summary judgment. Truist and the class filed separate notices of appeal from the trial court’s order, and Truist has filed a notice of cross-appeal. The trial court suspended the previously scheduled trial date of April 29, 2024, related pre-trial deadlines pending appeal.

Recordkeeping Matters

The SEC and CFTC have requested information from various subsidiaries of the Company that conduct broker-dealer, investment adviser, and swap dealer activities regarding compliance with applicable recordkeeping requirements for business-related electronic communications. The Company has cooperated with these requests and is in advanced discussions regarding resolutions of these matters with the agencies though there can be no assurance as to the outcome of these discussions.

Investigation Regarding Trusts

In 2016 and 2018, the Civil Division of the U.S. DOJ issued subpoenas to a corporate predecessor of Truist Bank under the Financial Institutions Reform, Recovery, and Enforcement Act. These subpoenas requested documents and other information related to specified trusts for which Truist Bank serves as trustee. Truist Bank is continuing to cooperate in the investigation.

FDIC Special Assessment

In November 2023, the FDIC issued a final rule to implement a special assessment to recoup losses to the DIF associated with bank failures in the first half of 2023. The assessment is based on an insured depository institution’s estimated uninsured deposits reported as of December 31, 2022. The special assessment for Truist is $582 million, with $507 million recognized in the fourth quarter of 2023 and an additional $75 million recognized in the first quarter of 2024 due to an increase in the estimated relevant losses to the DIF reported by the FDIC in February 2024. The special assessment will be paid in eight quarterly installments beginning in the second quarter of 2024. The ultimate amount of expenses associated with the special assessment will also be impacted by the finalization of the losses incurred by the FDIC in the resolutions of Silicon Valley Bank and Signature Bank, which could result in additional expense.

32 Truist Financial Corporation

NOTE 15. Fair Value Disclosures

Recurring Fair Value Measurements

Accounting standards define fair value as the price that would be received on the measurement date to sell an asset or the price paid to transfer a liability in the principal or most advantageous market available to the entity in an orderly transaction between market participants, with a three-level measurement hierarchy:

• Level 1: Quoted prices for identical instruments in active markets

• Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets

• Level 3: Valuations derived from valuation techniques in which one or more significant inputs are unobservable

The following tables present fair value information for assets and liabilities measured at fair value on a recurring basis:

March 31, 2024 (Dollars in millions)						Total						Level 1						Level 2						Level 3						Netting Adjustments**(1)**
Assets:
Trading assets:
U.S. Treasury						$	143					$	—					$	143					$	—					$	—
GSE						42						—						42						—						—
States and political subdivisions						761						—						761						—						—
Corporate and other debt securities						1,940						—						1,940						—						—
Loans						1,692						—						1,692						—						—
Other						690						619						71						—						—
Total trading assets						5,268						619						4,649						—						—
AFS securities:
U.S. Treasury						9,020						—						9,020						—						—
GSE						350						—						350						—						—
Agency MBS – residential						51,150						—						51,150						—						—
Agency MBS – commercial						2,208						—						2,208						—						—
States and political subdivisions						419						—						419						—						—
Non-agency MBS						2,884						—						2,884						—						—
Other						19						—						19						—						—
Total AFS securities						66,050						—						66,050						—						—
LHFS at fair value						1,201						—						1,201						—						—
Loans and leases						14						—						—						14						—
Loan servicing rights at fair value						3,417						—						—						3,417						—
Other assets:
Derivative assets						1,088						1,535						1,858						4						(2,309)
Equity securities						271						264						7						—						—
Total assets						$	77,309					$	2,418					$	73,765					$	3,435					$	(2,309)
Liabilities:
Interest-bearing deposits:
Brokered time deposits						$	23					$	—					$	23					$	—					$	—
Short-term borrowings:
Securities sold short						2,034						110						1,924						—						—
Other liabilities:
Derivative liabilities						2,990						826						4,729						25						(2,590)
Total liabilities						$	5,047					$	936					$	6,676					$	25					$	(2,590)

Truist Financial Corporation 33

December 31, 2023 (Dollars in millions)						Total						Level 1						Level 2						Level 3						Netting Adjustments**(1)**
Assets:
Trading assets:
U.S. Treasury						$	144					$	—					$	144					$	—					$	—
GSE						50						—						50						—						—
States and political subdivisions						760						—						760						—						—
Corporate and other debt securities						1,293						—						1,293						—						—
Loans						1,575						—						1,575						—						—
Other						510						461						49						—						—
Total trading assets						4,332						461						3,871						—						—
AFS securities:
U.S. Treasury						10,041						—						10,041						—						—
GSE						362						—						362						—						—
Agency MBS – residential						51,289						—						51,289						—						—
Agency MBS – commercial						2,248						—						2,248						—						—
States and political subdivisions						425						—						425						—						—
Non-agency MBS						2,981						—						2,981						—						—
Other						20						—						20						—						—
Total AFS securities						67,366						—						67,366						—						—
LHFS at fair value						852						—						852						—						—
Loans and leases						15						—						—						15						—
Loan servicing rights at fair value						3,378						—						—						3,378						—
Other assets:
Derivative assets						951						956						1,867						5						(1,877)
Equity securities						360						245						115						—						—
Total assets						$	77,254					$	1,662					$	74,071					$	3,398					$	(1,877)
Liabilities:
Short-term borrowings:
Securities sold short						$	1,625					$	185					$	1,440					$	—					$	—
Other liabilities:
Derivative liabilities						2,597						487						4,171						24						(2,085)
Total liabilities						$	4,222					$	672					$	5,611					$	24					$	(2,085)

(1)Refer to “Note 16. Derivative Financial Instruments” for additional discussion on netting adjustments.

At March 31, 2024 and December 31, 2023, investments totaling $464 million and $459 million, respectively, have been excluded from the table above as they are valued based on net asset value as a practical expedient. These investments primarily consist of certain SBIC funds.

The following discussion focuses on the valuation techniques and significant inputs for brokered time deposit liabilities that are measured at fair value on a recurring basis. For additional information on the valuation techniques and significant inputs for Level 2 and Level 3 assets and liabilities that are measured at fair value on a recurring basis, see “Note 18. Fair Value Disclosures” of the Annual Report on Form 10-K for the year ended December 31, 2023.

Brokered time deposits: The Company has elected to measure certain CDs that contain embedded derivatives at fair value. This fair value election better aligns the economics of the CDs with the Company’s risk management strategies. The Company elects, on an instrument by instrument basis, whether a new issuance will be measured at fair value. The Company has classified CDs measured at fair value as level 2 instruments due to the Company’s ability to observe all significant inputs to model-derived valuations in active markets. The Company employs a discounted cash flow approach based on observable market interest rates for the term of the CD and an estimate of the Bank’s credit risk. For any embedded derivative features, the Company uses the same valuation methodologies as if the derivative were a standalone derivative, as discussed in the “Derivative assets and liabilities” section in “Note 18. Fair Value Disclosures” of the Annual Report on Form 10-K for the year ended December 31, 2023.

34 Truist Financial Corporation

Activity for Level 3 assets and liabilities is summarized below:

Three Months Ended March 31, 2024 and 2023 (Dollars in millions)															Loans and Leases						Loan Servicing Rights						Net Derivatives
Balance at January 1, 2023															$	18					$	3,758					$	(36)
Total realized and unrealized gains (losses):
Included in earnings															—						(5)						(2)
Issuances															—						48						(2)
Sales															—						(428)						—
Settlements															(1)						(70)						22
Balance at March 31, 2023															$	17					$	3,303					$	(18)
Balance at January 1, 2024															$	15					$	3,378					$	(19)
Total realized and unrealized gains (losses):
Included in earnings															—						82						(3)
Issuances															—						32						(1)
Sales															—						(1)						—
Settlements															(1)						(74)						2
Balance at March 31, 2024															$	14					$	3,417					$	(21)
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at March 31, 2024															$	—					$	82					$	(9)
Primary income statement location of realized gains (losses) included in earnings															Other income						Mortgage banking income						Mortgage banking income

Fair Value Option

The following table details the fair value and UPB of certain loans and time deposits that were elected to be measured at fair value:

						March 31, 2024																		December 31, 2023
(Dollars in millions)						Fair Value						UPB						Difference						Fair Value						UPB						Difference
Trading loans						$	1,692					$	1,775					$	(83)					$	1,575					$	1,664					$	(89)
Loans and leases						14						15						(1)						15						16						(1)
LHFS at fair value						1,201						1,185						16						852						828						24
Brokered time deposits						23						23						—						—						—						—

Nonrecurring Fair Value Measurements

The following table provides information about certain assets measured at fair value on a nonrecurring basis still held as of period end. The carrying values represent end of period values, which approximate the fair value measurements that occurred on the various measurement dates throughout the period. These assets are considered to be Level 3 assets.

(Dollars in millions)						Mar 31, 2024												Dec 31, 2023
Carrying value:
LHFS						$	8											$	19
Loans and leases						659												840
Other						244												454

The following table provides information about valuation adjustments for certain assets measured at fair value on a nonrecurring basis. The valuation adjustments represent the amounts recorded during the period regardless of whether the asset is still held at period end.

						Three Months Ended March 31,
(Dollars in millions)						2024						2023
Valuation adjustments:
LHFS						$	(9)					$	—
Loans and leases						(272)						(166)
Other						(83)						(44)

LHFS with valuation adjustments in the table above consisted primarily of residential mortgages and commercial loans that were valued using market prices and measured at LOCOM. The table above excludes $44 million and $409 million of LHFS carried at cost at March 31, 2024 and December 31, 2023, respectively, that did not require a valuation adjustment during the period. The remainder of LHFS is carried at fair value.

Truist Financial Corporation 35

Loans and leases consist of larger commercial loans and leases that are collateral-dependent and other secured loans and leases that have been charged-off to the fair value of the collateral. Valuation adjustments for loans and leases are primarily recorded in the Provision for credit losses in the Consolidated Statement of Income. Refer to “Note 1. Basis of Presentation” in Truist’s Annual Report on Form 10-K for the year ended December 31, 2023 for additional discussion of individually evaluated loans and leases.

Other includes foreclosed real estate, other foreclosed property, partnership investments, premises and equipment, OREO, and held for sale operating leases, and consists primarily of residential homes, commercial properties, vacant lots, and automobiles. Partnership investments are measured based on discounted expected future cash flows. The remaining assets are measured at LOCOM, less costs to sell.

Financial Instruments Not Recorded at Fair Value

For financial instruments not recorded at fair value, estimates of fair value are based on relevant market data and information about the instruments. Values obtained relate to trading without regard to any premium or discount that may result from concentrations of ownership, possible tax ramifications, estimated transaction costs that may result from bulk sales, or the relationship between various instruments.

An active market does not exist for certain financial instruments. Fair value estimates for these instruments are based on current economic conditions and interest rate risk characteristics, loss experience, and other factors. Many of these estimates involve uncertainties and matters of significant judgment and cannot be determined with precision. Therefore, the fair value estimates in many instances cannot be substantiated by comparison to independent markets. In addition, changes in assumptions could significantly affect these fair value estimates. Financial assets and liabilities not recorded at fair value are summarized below:

									March 31, 2024												December 31, 2023
(Dollars in millions)			Fair Value Hierarchy						Carrying Amount						Fair Value						Carrying Amount						Fair Value
Financial assets:
HTM securities			Level 2						$	53,369					$	43,041					$	54,107					$	44,630
Loans and leases HFI, net of ALLL			Level 3						302,407						294,759						307,248						300,830
Financial liabilities:
Time deposits			Level 2						41,836						41,641						43,561						43,368
Long-term debt			Level 2						39,071						38,759						38,918						38,353

The carrying value of the RUFC, which approximates the fair value of unfunded commitments, was $297 million and $295 million at March 31, 2024 and December 31, 2023, respectively.

36 Truist Financial Corporation

NOTE 16. Derivative Financial Instruments

Impact of Derivatives on the Consolidated Balance Sheets

The following table presents the gross notional amounts and estimated fair value of derivative instruments employed by the Company:

			March 31, 2024																		December 31, 2023
			Notional Amount						Fair Value												Notional Amount						Fair Value
(Dollars in millions)						Assets						Liabilities									Assets						Liabilities
Cash flow hedges:
Interest rate contracts:
Swaps hedging commercial loans			$	22,538					$	1					$	—					$	17,673					$	—					$	—
Fair value hedges:
Interest rate contracts:
Swaps hedging long-term debt			17,768						—						—						14,268						—						—
Swaps hedging AFS securities			25,043						—						—						24,178						—						—
Total			42,811						—						—						38,446						—						—
Not designated as hedges:
Client-related and other risk management:
Interest rate contracts:
Swaps			154,598						580						(2,219)						154,692						637						(1,926)
Options			31,272						81						(101)						34,593						114						(106)
Forward commitments			443						1						(5)						178						—						(11)
Other			3,969						—						—						3,033						—						—
Equity contracts			42,080						1,828						(2,395)						39,561						1,164						(1,733)
Credit contracts:
Trading assets			560						—						—						100						—						—
Loans and leases			325						—						—						225						—						—
Risk participation agreements			7,627						—						(2)						7,499						—						(3)
Total return swaps			1,592						38						(11)						1,598						41						(7)
Foreign exchange contracts			25,169						211						(197)						24,480						256						(256)
Commodity			8,858						548						(537)						8,367						513						(503)
Total			276,493						3,287						(5,467)						274,326						2,725						(4,545)
Mortgage banking:
Interest rate contracts:
Swaps			137						—						—						105						—						—
Options			400						1						—						400						3						—
Interest rate lock commitments			1,316						4						(10)						746						5						(10)
When issued securities, forward rate agreements and forward commitments			2,049						10						(6)						1,438						12						(17)
Other			228						1						—						94						—						—
Total			4,130						16						(16)						2,783						20						(27)
MSRs:
Interest rate contracts:
Swaps			18,492						1						—						15,252						—						—
Options			15,002						86						(97)						14,854						75						(109)
When issued securities, forward rate agreements and forward commitments			1,497						6						—						933						8						—
Other			2,125						—						—						1,692						—						(1)
Total			37,116						93						(97)						32,731						83						(110)
Total derivatives not designated as hedges			317,739						3,396						(5,580)						309,840						2,828						(4,682)
Total derivatives			$	383,088					3,397						(5,580)						$	365,959					2,828						(4,682)
Gross amounts in the Consolidated Balance Sheets:
Amounts subject to master netting arrangements and exchange traded derivatives									(1,704)						1,704												(1,268)						1,268
Cash collateral (received) posted for amounts subject to master netting arrangements									(605)						886												(609)						817
Net amount									$	1,088					$	(2,990)											$	951					$	(2,597)

Truist Financial Corporation 37

The following table presents the offsetting of derivative instruments including financial instrument collateral related to legally enforceable master netting agreements and amounts held or pledged as collateral. U.S. GAAP does not permit netting of non-cash collateral balances in the Consolidated Balance Sheets:

March 31, 2024 (Dollars in millions)			Gross Amount						Amount Offset						Net Amount in Consolidated Balance Sheets						Held/Pledged Financial Instruments						Net Amount
Derivative assets:
Derivatives subject to master netting arrangement or similar arrangement			$	1,784					$	(1,483)					$	301					$	—					$	301
Derivatives not subject to master netting arrangement or similar arrangement			78						—						78						—						78
Exchange traded derivatives			1,535						(826)						709						—						709
Total derivative assets			$	3,397					$	(2,309)					$	1,088					$	—					$	1,088
Derivative liabilities:
Derivatives subject to master netting arrangement or similar arrangement			$	(3,954)					$	1,764					$	(2,190)					$	157					$	(2,033)
Derivatives not subject to master netting arrangement or similar arrangement			(800)						—						(800)						—						(800)
Exchange traded derivatives			(826)						826						—						—						—
Total derivative liabilities			$	(5,580)					$	2,590					$	(2,990)					$	157					$	(2,833)
December 31, 2023 (Dollars in millions)			Gross Amount						Amount Offset						Net Amount in Consolidated Balance Sheets						Held/Pledged Financial Instruments						Net Amount
Derivative assets:
Derivatives subject to master netting arrangement or similar arrangement			$	1,775					$	(1,392)					$	383					$	—					$	383
Derivatives not subject to master netting arrangement or similar arrangement			97						—						97						—						97
Exchange traded derivatives			956						(485)						471						—						471
Total derivative assets			$	2,828					$	(1,877)					$	951					$	—					$	951
Derivative liabilities:
Derivatives subject to master netting arrangement or similar arrangement			$	(3,627)					$	1,600					$	(2,027)					$	151					$	(1,876)
Derivatives not subject to master netting arrangement or similar arrangement			(568)						—						(568)						—						(568)
Exchange traded derivatives			(487)						485						(2)						—						(2)
Total derivative liabilities			$	(4,682)					$	2,085					$	(2,597)					$	151					$	(2,446)

The following table presents the carrying value of hedged items in fair value hedging relationships:

						March 31, 2024																		December 31, 2023
												Hedge Basis Adjustment																		Hedge Basis Adjustment
(Dollars in millions)						Hedged Asset / Liability Basis						Items Currently Designated						Discontinued Hedges						Hedged Asset / Liability Basis						Items Currently Designated						Discontinued Hedges
AFS securities(1)						$	49,955					$	(433)					$	(5)					$	51,782					$	6					$	(5)
Loans and leases						320						—						7						322						—						7
Long-term debt						30,847						(469)						(453)						27,572						(237)						(475)

(1)The amortized cost of AFS securities was $58.7 billion at March 31, 2024 and $62.2 billion at December 31, 2023. Further, as of March 31, 2024, closed portfolios of securities hedged under the portfolio layer method have an amortized cost of $57.6 billion, of which $25.0 billion was designated as hedged. The remaining amount of amortized cost is from securities with terminated hedges where the basis adjustment is being amortized into earnings using the effective interest method over the contractual life of the security.

38 Truist Financial Corporation

Impact of Derivatives on the Consolidated Statements of Income and Comprehensive Income

Derivatives Designated as Hedging Instruments under GAAP

No portion of the change in fair value of derivatives designated as hedges has been excluded from effectiveness testing.

The following table summarizes amounts related to cash flow hedges, which consist of interest rate contracts:

			Three Months Ended March 31,
(Dollars in millions)			2024						2023
Pre-tax gain (loss) recognized in OCI:
Commercial loans			$	(303)					$	163
Pre-tax gain (loss) reclassified from AOCI into interest expense or interest income:
Commercial Loans			(55)						—

The following table summarizes the impact on net interest income related to fair value hedges:

			Three Months Ended March 31,
(Dollars in millions)			2024						2023
Investment securities:
Amounts related to interest settlements			$	163					$	76
Recognized on derivatives			442						(95)
Recognized on hedged items			(436)						106
Net income (expense) recognized(1)			169						87
Loans and leases:
Recognized on hedged items			(1)						(1)
Long-term debt:
Amounts related to interest settlements			(39)						(46)
Recognized on derivatives			(232)						156
Recognized on hedged items			211						(142)
Net income (expense) recognized			(60)						(32)
Net income (expense) recognized, total			$	108					$	54

(1)Includes $9 million of income recognized for the three months ended March 31, 2024, respectively, and $10 million for the three months ended March 31, 2023, respectively, from securities with terminated hedges that were reclassified to HTM. The income recognized was offset by the amortization of the fair value mark.

Truist Financial Corporation 39

The following table presents information about the Company’s cash flow and fair value hedges:

(Dollars in millions)						Mar 31, 2024						Dec 31, 2023
Cash flow hedges:
Net unrecognized after-tax gain (loss) on active hedges recorded in AOCI						$	(310)					$	(106)
Net unrecognized after-tax gain (loss) on terminated hedges recorded in AOCI (to be recognized in earnings through 2029)						(180)						(194)
Estimated portion of net after-tax gain (loss) on active and terminated hedges to be reclassified from AOCI into earnings during the next 12 months						(244)						(203)
Maximum time period over which Truist is hedging a portion of the variability in future cash flows for forecasted transactions excluding those transactions relating to the payment of variable interest on existing instruments						5 years						5 years
Fair value hedges:
Unrecognized pre-tax net gain (loss) on terminated hedges(1)						$	(51)					$	(64)
Portion of pre-tax net gain (loss) on terminated hedges to be recognized as a change in interest during the next 12 months						(70)						(60)

(1)Includes deferred gains that are recorded in AOCI as a result of the reclassification to HTM of previously hedged securities of $404 million at March 31, 2024 and $413 million at December 31, 2023.

Derivatives Not Designated as Hedging Instruments under GAAP

The Company also enters into derivatives that are not designated as accounting hedges under GAAP to economically hedge certain risks as well as in a trading capacity with its clients.

The following table presents pre-tax gain (loss) recognized in income for derivative instruments not designated as hedges:

						Three Months Ended March 31,
(Dollars in millions)			Income Statement Location			2024						2023
Client-related and other risk management:
Interest rate contracts			Investment banking and trading income and other income			$	39					$	34
Foreign exchange contracts			Investment banking and trading income and other income			65						(3)
Equity contracts			Investment banking and trading income and other income			(17)						2
Credit contracts			Investment banking and trading income and other income			(24)						(33)
Commodity contracts			Investment banking and trading income			2						10
Mortgage banking:
Interest rate contracts – residential			Mortgage banking income			(1)						(1)
Interest rate contracts – commercial			Mortgage banking income			—						1
MSRs:
Interest rate contracts – residential			Mortgage banking income			(91)						1
Interest rate contracts – commercial			Mortgage banking income			(6)						3
Total						$	(33)					$	14

40 Truist Financial Corporation

Credit Derivative Instruments

As part of the Company’s corporate and investment banking business, the Company enters into contracts that are, in form or substance, written guarantees; specifically, risk participations, TRS, and credit default swaps. The Company accounts for these contracts as derivatives.

Truist has entered into risk participation agreements to share the credit exposure with other financial institutions on client-related interest rate derivative contracts. Under these agreements, the Company has guaranteed payment to a dealer counterparty in the event the counterparty experiences a loss on the derivative due to a failure to pay by the counterparty’s client. The Company manages its payment risk on its risk participations by monitoring the creditworthiness of the underlying client through the normal credit review process that the Company would have performed had it entered into a derivative directly with the obligors. At March 31, 2024, the remaining terms on these risk participations ranged from less than one year to 13 years. The potential future exposure represents the Company’s maximum estimated exposure to written risk participations, as measured by projecting a maximum value of the guaranteed derivative instruments based on scenario simulations and assuming 100% default by all obligors on the maximum value.

The Company has also entered into TRS contracts on loans and bonds. To mitigate its credit risk, the Company typically receives initial margin from the counterparty upon entering into the TRS and variation margin if the fair value of the underlying reference assets deteriorates. For additional information on the Company’s TRS contracts, see “Note 14. Commitments and Contingencies.”

The Company enters into credit default swaps to hedge credit risk associated with certain loans and leases. The Company accounts for these contracts as derivatives, and accordingly, recognizes these contracts at fair value.

The following table presents additional information related to interest rate derivative risk participation agreements and total return swaps:

(Dollars in millions)			Mar 31, 2024						Dec 31, 2023
Risk participation agreements:
Maximum potential amount of exposure			$	471					$	520
Total return swaps:
Cash and other collateral received			419						437

The following table summarizes collateral positions with counterparties:

(Dollars in millions)			Mar 31, 2024						Dec 31, 2023
Dealer and other counterparties:
Cash and other collateral received from counterparties			$	664					$	609
Derivatives in a net gain position secured by collateral received			685						735
Unsecured positions in a net gain with counterparties after collateral postings			80						126
Cash collateral posted to counterparties			1,045						960
Derivatives in a net loss position secured by collateral			1,155						1,052
Central counterparties clearing:
Cash collateral, including initial margin, posted to central clearing parties			8						14
Derivatives in a net loss position			—						8
Derivatives in a net gain position			7						2
Securities pledged to central counterparties clearing			1,058						1,249

Truist Financial Corporation 41

NOTE 17. Computation of EPS

Basic and diluted EPS calculations are presented in the following table:

									Three Months Ended March 31,
(Dollars in millions, except per share data, shares in thousands)															2024						2023
Net income available to common shareholders from continuing operations															$	1,027					$	1,307
Net income available to common shareholders from discontinued operations															64						103
Net income available to common shareholders															$	1,091					$	1,410
Weighted average number of common shares															1,335,091						1,328,602
Effect of dilutive outstanding equity-based awards															11,813						10,878
Weighted average number of diluted common shares															1,346,904						1,339,480
Basic earnings from continuing operations															$	0.77					$	0.98
Basic earnings from discontinued operations															0.05						0.08
Basic EPS															$	0.82					$	1.06
Diluted earnings from continuing operations															$	0.76					$	0.98
Diluted earnings from discontinued operations															0.05						0.07
Diluted EPS															$	0.81					$	1.05
Anti-dilutive awards															—						621

NOTE 18. Operating Segments

Effective January 1, 2024, several business activities were realigned reflecting updates to the Company’s operating structure. First, the CB&W segment was renamed CSBB and the C&CB segment was renamed WB. Second, the Wealth business was realigned into the WB segment from the CSBB segment, representing a separate reporting unit in that segment. Third, the small business banking client segmentation was realigned into the CSBB segment from the WB segment.

Following the segment realignment, Truist operates and measures business activity across two segments: CSBB and WB, with functional activities included in OT&C. The Company’s business segment structure is based on the manner in which financial information is evaluated by management as well as the products and services provided or the type of client served.

On February 20, 2024, the Company entered into an agreement to sell the remaining stake of the common equity in TIH to an investor group, representing substantially all of the Company’s IH segment, which represented a material strategic shift for the Company, and as a result, the Company recast results for all periods presented under the discontinued operations basis of presentation. On May 6, 2024, the Company completed the sale of its remaining equity interests in TIH. TIH was the principal legal entity of the IH segment. As the operations of TIH are now included in discontinued operations, the Company no longer presents the IH segment as one of its reportable segments. Refer to “Note 2. Discontinued Operations” for additional information related to discontinued operations.

Consumer and Small Business Banking

CSBB serves consumer and small businesses clients, providing deposits and payment services, credit cards, loans, mortgages, brokerage, and investment advisory services and insurance solutions through an extensive network of branches, ATMs, digital channels, contact centers, and other channels. Lending solutions include personal and unsecured loans originated through the branch network and digital channels; indirect lending services providing a comprehensive set of technology-enabled consumer lending solutions including point-of-sale offerings for autos, recreational vehicles, outdoor power sports, equipment, and home improvement; and real estate lending providing residential mortgages through its retail, direct, and correspondent channels, with the loans either sold in the secondary market, typically with servicing rights retained or held in the Company’s loan portfolio, and home equity loans delivered through the branch network. CSBB also serves as an entry point for clients to access services from other businesses.

Wholesale Banking

WB delivers a comprehensive suite of solutions to our commercial, corporate, institutional, real estate, and wealth clients bringing together a combination of both local and specialized industry expertise. This segment is focused on providing core banking, specialized lending, investment banking, capital markets, strategic advisory, market-making, asset management, trust, brokerage, and investment related services, as well as cash management and payment processing. Truist’s investment banking and corporate banking teams serve clients across the nation, while offering a unique, high-touch advisory approach through our industry experts. Truist’s wealth professionals provide investment advisory services, institutional investment management, full-service and online/discount brokerage products, family office services, as well as other wealth management disciplines.

42 Truist Financial Corporation

Other, Treasury & Corporate

OT&C includes management of the Company’s investment securities portfolio, long-term debt, derivative instruments used for balance sheet hedging, short-term liquidity and funding activities, balance sheet risk management and most real estate assets, as well as the Company’s functional activities such as finance, enterprise risk, legal, and enterprise technology and management, among others. Additionally, OT&C houses intercompany eliminations, including intersegment net referral fees and residual interest rate risk after segment allocations have taken place.

Truist promotes revenue growth through the Company’s Integrated Relationship Management approach, which is designed to deepen client relationships and bring the full breadth and depth of Truist’s products and services to meet clients’ financial needs. The objective is to provide Truist’s entire suite of products to its clients with the end goal of providing clients the best financial experience in the marketplace. Revenues of certain products and services are reflected in the results of the segment providing those products and services and are also allocated to CSBB and WB. These allocated revenues between segments are reflected as net referral fees in noninterest income and eliminated in OT&C.

The segment results are presented based on internal management methodologies that were designed to support these strategic objectives. Unlike financial accounting, there is no comprehensive authoritative body of guidance for management accounting equivalent to GAAP. The performance of the segments is not comparable with Truist’s consolidated results or with similar information presented by any other financial institution. Additionally, because of the interrelationships between the various segments, the information presented is not indicative of how the segments would perform if they operated as independent entities.

Because business segment results are presented based on management accounting practices, the transition to the consolidated results prepared under U.S. GAAP creates certain differences, which are reflected as residuals in OT&C. Business segment reporting conventions include, but are not limited to, the items as detailed below.

Segment net interest income reflects matched maturity funds transfer pricing, which ascribes credits or charges based on the economic value or cost created by assets and liabilities of each segment. Residual differences between these credits and charges are captured in OT&C.

Noninterest income includes inter-segment referral fees, as well as federal and state tax credits that are grossed up on a pre-tax equivalent basis, related primarily to certain community development investments. Recoveries for these allocations are reported in OT&C.

Corporate expense allocations, including overhead or functional expenses that are not directly charged to the segments, are allocated to segments based on various drivers (number of FTEs, number of accounts, loan balances, net revenue, etc.). Recoveries for these allocations are reported in OT&C.

Provision for credit losses represents net charge-offs by segment combined with an allocation to the segments for the provision attributable to each segment’s quarterly change in the ALLL. Provision for income taxes is calculated using a blended income tax rate for each segment and includes reversals of the noninterest income tax adjustments described above. The difference between the calculated provision for income taxes at the segment level and the consolidated provision for income taxes is reported in OT&C.

The application and development of management reporting methodologies is an active process and undergoes periodic enhancements. The implementation of these enhancements to the internal management reporting methodology may materially affect the results disclosed for each segment, with no impact on consolidated results. When significant changes to management reporting methodologies take place, the impact of these changes is quantified and prior period information is revised as practicable.

Truist Financial Corporation 43

The following table presents results by segment:

Three Months Ended March 31, (Dollars in millions)			CSBB												WB																		OT&C**(1)**												Total
2024						2023						2024						2023																		2024						2023						2024						2023
Net interest income (expense)			$	1,262					$	1,689					$	2,240					$	2,221																	$	(130)					$	(43)					$	3,372					$	3,867
Net intersegment interest income (expense)			1,341						1,001						(561)						(389)																		(780)						(612)						—						—
Segment net interest income			2,603						2,690						1,679						1,832																		(910)						(655)						3,372						3,867
Allocated provision for credit losses			303						270						198						235																		(1)						(3)						500						502
Segment net interest income after provision			2,300						2,420						1,481						1,597																		(909)						(652)						2,872						3,365
Noninterest income			494						544						985						960																		(33)						(83)						1,446						1,421
Amortization of intangibles			46						53						42						47																		—						—						88						100
Other noninterest expense			1,588						1,570						1,343						1,263																		(66)						82						2,865						2,915
Income (loss) before income taxes from continuing operations			1,160						1,341						1,081						1,247																		(876)						(817)						1,365						1,771
Provision (benefit) for income taxes			280						318						205						260																		(253)						(217)						232						361
Segment net income (loss) from continuing operations			$	880					$	1,023					$	876					$	987																	$	(623)					$	(600)					$	1,133					$	1,410
Identifiable assets (period end) of continuing operations			$	143,132					$	161,530					$	209,604					$	218,215																	$	174,451					$	187,233					$	527,187					$	566,978

(1)Includes financial data from business units below the quantitative and qualitative thresholds requiring disclosure.

44 Truist Financial Corporation

NOTE 19. Subsequent Events

On May 6, 2024, the Company completed the sale of its remaining equity interests in TIH. The sale resulted in cash proceeds to Truist of approximately $10.1 billion after-tax, reflecting certain closing adjustments for cash, debt and debt-like items, including the settlement of certain previously granted TIH equity awards, working capital, transaction expenses and an investor return amount associated with the originally sold 20% stake. The transaction improves Truist’s relative capital position and allows Truist to maintain strategic flexibility. Upon closing, the transaction resulted in a full deconsolidation of the TIH subsidiary from Truist and resulted in an approximate after-tax gain of approximately $4.7 billion. Additionally, following the sale, Truist will retain the related postretirement benefit obligation for TIH employees, and will remeasure the postretirement benefit obligation of the plan in the second quarter of 2024. Refer to “Note 2. Discontinued Operations” for additional information related to discontinued operations.

Following the completion of the sale of TIH, Truist executed a strategic balance sheet repositioning of a portion of its AFS investment securities portfolio by selling $27.7 billion of lower-yielding investment securities, resulting in an after-tax loss of $5.1 billion in the second quarter of 2024. The investment securities that were sold had a book value of $34.4 billion and a weighted average book yield of 2.80% for the remainder of 2024 including the impact of hedges and based on the Federal Funds futures curve. Including the tax benefit, the repositioning generated $29.3 billion available for reinvestment.

Truist invested approximately $18.7 billion of the $39.4 billion available in shorter duration investment securities yielding 5.27%. The remaining $20.7 billion will be held in cash. The blended reinvestment rate on the new investment securities purchased and cash is 5.22% for the remainder of 2024 including the impact of hedges and based on the Federal Funds futures curve.

Truist Financial Corporation 45