Item 1. FINANCIAL STATEMENTS

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Item 1. FINANCIAL STATEMENTS

CONSOLIDATED BALANCE SHEETS

TRUIST FINANCIAL CORPORATION AND SUBSIDIARIES



Unaudited (Dollars in millions, except per share data, shares in thousands)	Jun 30, 2025		Dec 31, 2024
Assets
Cash and due from banks	$	5,157	$	5,793
Interest-bearing deposits with banks	36,294		33,975
Securities borrowed or purchased under agreements to resell	2,656		2,550
Trading assets at fair value	5,963		5,100
AFS securities at fair value	66,390		67,464
HTM securities (fair value of $39,611 and $40,286, respectively)	48,973		50,640
LHFS (including $1,105 and $1,233 at fair value, respectively)	1,203		1,388
Loans and leases (including $12 and $13 at fair value, respectively)	318,796		306,383
ALLL	(4,899)		(4,857)
Loans and leases, net of ALLL	313,897		301,526
Premises and equipment	3,197		3,225
Goodwill	17,125		17,125
CDI and other intangible assets	1,399		1,550
Loan servicing rights at fair value	3,612		3,708
Other assets (including $1,977 and $1,271 at fair value, respectively)	37,967		37,132

Total assets	$	543,833	$	531,176
Liabilities
Noninterest-bearing deposits	$	106,442	$	107,451
Interest-bearing deposits (including $396 and $192 at fair value, respectively)	299,680		283,073
Short-term borrowings (including $2,199 and $1,896 at fair value, respectively)	16,631		29,205
Long-term debt	44,427		34,956
Other liabilities (including $1,812 and $2,286 at fair value, respectively)	11,813		12,812

Total liabilities	478,993		467,497
Shareholders’ Equity
Preferred stock	5,907		5,907
Common stock, $5 par value	6,447		6,580
Additional paid-in capital	34,620		35,628
Retained earnings	24,759		23,777
AOCI, net of deferred income taxes	(6,893)		(8,213)

Total shareholders’ equity	64,840		63,679
Total liabilities and shareholders’ equity	$	543,833	$	531,176
Common shares outstanding	1,289,435		1,315,936
Common shares authorized	2,000,000		2,000,000
Preferred shares outstanding	216		216
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 June 30,						Six Months Ended June 30,
	2025			2024			2025			2024
Interest Income
Interest and fees on loans and leases		$	4,657		$	4,879		$	9,150		$	9,744
Interest on securities		961			838			1,936			1,643
Interest on other earning assets		536			634			1,056			1,148
Total interest income		6,154			6,351			12,142			12,535
Interest Expense
Interest on deposits		1,844			2,016			3,580			3,980
Interest on long-term debt		431			446			840			928
Interest on other borrowings		292			362			628			728
Total interest expense		2,567			2,824			5,048			5,636
Net Interest Income		3,587			3,527			7,094			6,899
Provision for credit losses		488			451			946			951
Net Interest Income After Provision for Credit Losses		3,099			3,076			6,148			5,948
Noninterest Income
Wealth management income		348			361			692			717
Investment banking and trading income		205			286			478			609
Card and payment related fees		232			230			452			454
Service charges on deposits		227			232			457			457
Mortgage banking income		107			112			215			209
Lending related fees		99			89			194			185
Operating lease income		47			50			100			109


Securities gains (losses)		(18)			(6,650)			(19)			(6,650)
Other income		153			78			223			144
Total noninterest income		1,400			(5,212)			2,792			(3,766)
Noninterest Expense
Personnel expense		1,653			1,661			3,240			3,291
Professional fees and outside processing		373			308			737			586
Software expense		231			218			461			442
Net occupancy expense		179			160			342			320
Equipment expense		89			89			171			177
Amortization of intangibles		73			89			148			177
Marketing and customer development		82			63			157			119
Operating lease depreciation		33			34			68			74

Regulatory costs		55			85			124			237
Restructuring charges		28			33			66			84


Other expense		190			354			378			540
Total noninterest expense		2,986			3,094			5,892			6,047
Earnings
Income (loss) before income taxes		1,513			(5,230)			3,048			(3,865)
Provision (benefit) for income taxes		273			(1,324)			547			(1,092)
Net income (loss) from continuing operations		1,240			(3,906)			2,501			(2,773)
Net income from discontinued operations		—			4,828			—			4,895
Net income		1,240			922			2,501			2,122

Noncontrolling interests from discontinued operations		—			19			—			22

Preferred stock dividends and other		60			77			164			183
Net income available to common shareholders		$	1,180		$	826		$	2,337		$	1,917
Basic EPS from continuing operations		$	0.91		$	(2.98)		$	1.80		$	(2.21)

Basic EPS		0.91			0.62			1.80			1.43
Diluted EPS from continuing operations		0.90			(2.98)			1.78			(2.21)

Diluted EPS		0.90			0.62			1.78			1.43
Basic weighted average shares outstanding		1,292,292			1,338,149			1,299,833			1,336,620
Diluted weighted average shares outstanding		1,305,005			1,338,149			1,314,779			1,336,620

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 June 30,						Six Months Ended June 30,
2025			2024			2025			2024
Net income	$	1,240		$	922		$	2,501		$	2,122
OCI, net of tax:
Net change in net pension and postretirement costs	2			34			7			35
Net change in cash flow hedges	275			(38)			704			(228)
Net change in AFS securities	16			4,664			494			4,088
Net change in HTM securities	59			57			109			108
Other, net	5			1			6			(1)
Total OCI, net of tax	357			4,718			1,320			4,002
Total comprehensive income	$	1,597		$	5,640		$	3,821		$	6,124
Income Tax Effect of Items Included in OCI:
Net change in net pension and postretirement costs	$	(1)		$	11		$	—		$	11
Net change in cash flow hedges	84			(12)			217			(70)
Net change in AFS securities	(10)			1,439			139			1,262
Net change in HTM securities	12			18			27			33

Total income taxes related to OCI	$	85		$	1,456		$	383		$	1,236

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, April 1, 2024	1,338,096	$	6,673	$	6,690	$	36,197	$	22,483	$	(13,222)	$	232	$	59,053
Net income	—	—		—		—		903		—		19		922
OCI	—	—		—		—		—		4,718		—		4,718


Issued in connection with equity awards, net	127	—		1		(12)		(3)		—		—		(14)



Cash dividends declared on common stock	—	—		—		—		(696)		—		—		(696)
Cash dividends declared on preferred stock	—	—		—		—		(77)		—		—		(77)
Equity-based compensation expense	—	—		—		103		—		—		—		103

Sale of remaining stake in TIH	—	—		—		—		—		—		(197)		(197)
Other, net	—	—		—		76		(7)		—		(54)		15
Balance, June 30, 2024	1,338,223	$	6,673	$	6,691	$	36,364	$	22,603	$	(8,504)	$	—	$	63,827
Balance, April 1, 2025	1,309,539	$	5,907	$	6,548	$	35,178	$	24,252	$	(7,250)	$	—	$	64,635
Net income	—	—		—		—		1,240		—		—		1,240
OCI	—	—		—		—		—		357		—		357

Issued in connection with equity awards, net	105	—		—		—		(3)		—		—		(3)

Repurchase of common stock, including excise tax	(20,209)	—		(101)		(656)		—		—		—		(757)

Cash dividends declared on common stock	—	—		—		—		(670)		—		—		(670)
Cash dividends declared on preferred stock	—	—		—		—		(60)		—		—		(60)
Equity-based compensation expense	—	—		—		98		—		—		—		98


Balance, June 30, 2025	1,289,435	$	5,907	$	6,447	$	34,620	$	24,759	$	(6,893)	$	—	$	64,840
















Balance, January 1, 2024	1,333,743	$	6,673	$	6,669	$	36,177	$	22,088	$	(12,506)	$	152	$	59,253
Net income	—	—		—		—		2,100		—		22		2,122
OCI	—	—		—		—		—		4,002		—		4,002


Issued in connection with equity awards, net	4,480	—		22		(55)		(5)		—		—		(38)



Cash dividends declared on common stock	—	—		—		—		(1,390)		—		—		(1,390)
Cash dividends declared on preferred stock	—	—		—		—		(183)		—		—		(183)
Equity-based compensation expense	—	—		—		166		—		—		—		166
Sale of remaining stake in TIH	—	—		—		—		—		—		(197)		(197)

Other, net	—	—		—		76		(7)		—		23		92
Balance, June 30, 2024	1,338,223	$	6,673	$	6,691	$	36,364	$	22,603	$	(8,504)	$	—	$	63,827
Balance, January 1, 2025	1,315,936	$	5,907	$	6,580	$	35,628	$	23,777	$	(8,213)	$	—	$	63,679
Net income	—	—		—		—		2,501		—		—		2,501
OCI	—	—		—		—		—		1,320		—		1,320

Issued in connection with equity awards, net	4,963	—		24		(83)		(6)		—		—		(65)

Repurchase of common stock, including excise tax	(31,464)	—		(157)		(1,103)		—		—		—		(1,260)

Cash dividends declared on common stock	—	—		—		—		(1,349)		—		—		(1,349)
Cash dividends declared on preferred stock	—	—		—		—		(164)		—		—		(164)
Equity-based compensation expense	—	—		—		178		—		—		—		178



Balance, June 30, 2025	1,289,435	$	5,907	$	6,447	$	34,620	$	24,759	$	(6,893)	$	—	$	64,840

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)		Six Months Ended June 30,
	2025			2024
Cash Flows From Operating Activities:
Net income		$	2,501		$	2,122
Adjustments to reconcile net income to net cash from operating activities:
Provision for credit losses		946			951

Depreciation		284			315

Amortization of intangibles		148			198


Securities (gains) losses		19			6,650
Gain on sale of TIH, net of tax		—			(4,814)
Net change in operating assets and liabilities:
LHFS		128			(432)

Pension asset		(145)			(95)
Derivative assets and liabilities		(1,106)			(470)
Trading assets		(863)			(1,226)

Other assets and other liabilities		(561)			(3,595)

Other, net		309			251
Net cash from operating activities		1,660			(145)
Cash Flows From Investing Activities:
Proceeds from sales of AFS securities		1,109			27,607
Proceeds from maturities, calls and paydowns of AFS securities		8,079			7,911
Purchases of AFS securities		(6,879)			(26,048)
Proceeds from maturities, calls and paydowns of HTM securities		1,812			1,810

Originations of loans and leases, net of principal collected		(12,860)			5,347
Purchases of loans and leases		(668)			(39)
Sales of loans and leases		358			411

Net cash received (paid) for securities borrowed or purchased under agreements to resell		(106)			40

Net cash received (paid) for asset acquisitions, business combinations, and divestitures		—			12,060

Other, net		(181)			953
Net cash from investing activities		(9,336)			30,052
Cash Flows From Financing Activities:
Net change in deposits		15,598			(11,996)
Net change in short-term borrowings		(12,556)			(2,015)
Proceeds from issuance of long-term debt		28,642			8,204
Repayment of long-term debt		(19,486)			(12,242)
Repurchase of common stock		(1,250)			—


Cash dividends paid on common stock		(1,349)			(1,390)
Cash dividends paid on preferred stock		(164)			(183)


Other, net		(76)			(50)
Net cash from financing activities		9,359			(19,672)
Net Change in Cash and Cash Equivalents		1,683			10,235
Cash and Cash Equivalents of Continuing and Discontinued Operations, January 1		39,768			30,644
Cash and Cash Equivalents of Continuing and Discontinued Operations, June 30		$	41,451		$	40,879
Supplemental Disclosure of Cash Flow Information:
Net cash paid (received) during the period for:
Interest expense		$	4,967		$	5,791
Income taxes		170			379

(1)Cash flows of discontinued operations are reflected within operating, investing, and financing activities in the Consolidated Statements of Cash Flows. The cash balances of these operations were reported as assets of discontinued operations on the Consolidated Balance Sheets prior to the sale of TIH. 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, 2024 should be referred to in connection with these unaudited interim consolidated financial statements. There were no 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, 2024 that could have a material effect on the Company’s financial statements.

Reclassifications

Certain amounts reported in prior periods’ consolidated financial statements have been reclassified to conform to the current presentation.

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, trading assets and liabilities, 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 Standards

The following table provides a summary of significant accounting standards not yet adopted:


Standard / Adoption Date	Description	Effects on the Financial Statements




Standards Not Yet Adopted
Improvements to Income Tax Disclosures / December 31, 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. Permits either a prospective or retrospective transition approach.	Truist is evaluating the impact of this standard on its disclosures, which includes aggregating newly required information in the format required. While its evaluation is ongoing, Truist does not expect that the implementation of this disclosure-only standard will have a material impact on its financial statements.
Expense Disaggregation Disclosures / December 31, 2027	Introduces new requirements to disclose additional information about certain types of expenses, including employee compensation, depreciation, intangible asset amortization, and selling expenses. Banks that present a caption for salaries and benefits under SEC rules would be permitted to retain their current definition. Permits either a prospective or retrospective transition approach.	Truist is evaluating the impact of this standard on its disclosures. This standard relates to footnote disclosures only.

Truist Financial Corporation 9

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 represented a strategic shift that had 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. On May 6, 2024, the Company completed the sale.

The following footnotes exclude discontinued operations for TIH, unless otherwise noted: “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 presents operating results of TIH classified as discontinued operations:




(Dollars in millions)	Three Months Ended June 30, 2024		Six Months Ended June 30, 2024
Interest Income
Interest on other earning assets	$	7	$	31
Total interest income	7		31
Noninterest income
Insurance income	427		1,319
Other income	4		9
Total noninterest income	431		1,328
Noninterest expense
Personnel expense	251		885
Professional fees and outside processing	37		85
Software expense	8		25
Net occupancy expense	5		20
Equipment expense	2		11
Amortization of intangibles	—		21
Marketing and customer development	5		15

Restructuring charges	63		82
Other expense	26		84
Total noninterest expense	397		1,228
Earnings
Gain on sale of TIH	6,903		6,903
Income before income taxes from discontinued operations	6,944		7,034
Provision for income taxes	2,116		2,139
Net income from discontinued operations	4,828		4,895
Noncontrolling interests	19		22
Net income from discontinued operations attributable to controlling interest	$	4,809	$	4,873

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)	Six Months Ended June 30, 2024
Net cash from operating activities	$	71
Net cash from investing activities	12,056
Net cash from financing activities	(41)

10 Truist Financial Corporation

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.

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 agreements that govern the Company's securities financing transactions provide for a right of setoff in the event of default or bankruptcy with respect to either party to such transactions. The following table presents the Company's securities financing transactions, including those executed under master netting (or similar) arrangements. Refer to "Note 16. Derivative Financial Instruments" for information about the Company's derivative instruments subject to master netting (or similar) arrangements.


	June 30, 2025														December 31, 2024
(Dollars in millions)			Amount in Consolidated Balance Sheets(1)				Received/Pledged Financial Instruments(2)				Net Amount				Amount in Consolidated Balance Sheets(1)		Received/Pledged Financial Instruments(2)		Net Amount
Assets:
Securities purchased under agreements to resell			$	1,171			$	(1,166)			$	5			$	1,322	$	(1,313)	$	9
Securities borrowed	1,485				(1,452)				33				1,228		(1,192)		36
Total securities borrowed or purchased under agreements to resell	$	2,656			$	(2,618)			$	38			$	2,550	$	(2,505)	$	45
Liabilities:
Securities sold under agreements to repurchase			$	(3,657)			$	3,657			$	—			$	(9,675)	$	9,675	$	—

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

(2)The fair value of received/pledged financial instruments is limited to the carrying amount of the associated asset or liability. The fair value of collateral received that was permitted to be resold or repledged was $2.6 billion as of June 30, 2025 and $2.5 billion as of December 31, 2024. Of the fair value of collateral permitted to be resold or repledged, the fair value of securities repledged or resold was $2.2 billion as of June 30, 2025 and $1.6 billion as of December 31, 2024.

The following table presents additional information related to the Company’s securities sold under agreements to repurchase, by collateral type and remaining contractual maturity:


	June 30, 2025				December 31, 2024
(Dollars in millions)	Overnight and Continuous		Up to 30 days		Total		Overnight and Continuous		Up to 30 days		30-90 days		Total
U.S. Treasury	$	232	$	—	$	232	$	—	$	2,445	$	300	$	2,745
State and Municipal	291		6		297		350		100		—		450

Agency MBS – residential	—		2,500		2,500		—		5,750		—		5,750
Corporate and other debt securities	409		219		628		450		280		—		730
Total securities sold under agreements to repurchase	$	932	$	2,725	$	3,657	$	800	$	8,575	$	300	$	9,675

Truist Financial Corporation 11

NOTE 4. Investment Securities

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


June 30, 2025 (Dollars in millions)	Amortized Cost		Gross Unrealized				Net unrealized gains (losses)		Fair Value
	Gains		Losses
AFS securities:
U.S. Treasury	$	13,389	$	114	$	(32)	$	82	$	13,471
GSE	459		3		(27)		(24)		435
Agency MBS – residential	54,173		116		(4,834)		(4,718)		49,455
Agency MBS – commercial	3,247		6		(600)		(594)		2,653
States and political subdivisions	369		11		(19)		(8)		361

Other	15		—		—		—		15
Total AFS securities, excluding portfolio level basis adjustments	71,652		250		(5,512)		(5,262)		66,390
Portfolio level basis adjustments(1)	89						(89)		—
Total AFS securities	$	71,741	$	250	$	(5,512)	$	(5,351)	$	66,390
HTM securities:


Agency MBS – residential	$	48,973	$	—	$	(9,362)	$	(9,362)	$	39,611





December 31, 2024 (Dollars in millions)	Amortized Cost		Gross Unrealized				Net unrealized gains (losses)		Fair Value
	Gains		Losses
AFS securities:
U.S. Treasury	$	14,279	$	156	$	(24)	$	132	$	14,411
GSE	441		1		(39)		(38)		403
Agency MBS – residential	55,769		6		(5,816)		(5,810)		49,959
Agency MBS – commercial	2,938		—		(645)		(645)		2,293
States and political subdivisions	390		11		(19)		(8)		382

Other	16		—		—		—		16
Total AFS securities, excluding portfolio level basis adjustments	73,833		174		(6,543)		(6,369)		67,464
Portfolio level basis adjustments(1)	(385)						385		—
Total AFS securities	$	73,448	$	174	$	(6,543)	$	(5,984)	$	67,464
HTM securities:


Agency MBS – residential	$	50,640	$	—	$	(10,354)	$	(10,354)	$	40,286

(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:


	June 30, 2025
(Dollars in millions)	Amortized Cost		Fair Value
FNMA	$	29,017	$	24,713
FHLMC	29,349		24,842

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.

12 Truist Financial Corporation


	Amortized Cost										Fair Value
June 30, 2025 (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	$	4,362	$	7,859	$	430	$	738	$	13,389	$	4,383	$	7,944	$	428	$	716	$	13,471
GSE	—		—		1		458		459		—		—		1		434		435
Agency MBS – residential	—		1		40		54,132		54,173		—		1		40		49,414		49,455
Agency MBS – commercial	—		169		255		2,823		3,247		—		171		254		2,228		2,653
States and political subdivisions	21		66		147		135		369		21		68		146		126		361

Other	—		7		8		—		15		—		7		8		—		15
Total AFS securities	$	4,383	$	8,102	$	881	$	58,286	$	71,652	$	4,404	$	8,191	$	877	$	52,918	$	66,390
HTM securities:


Agency MBS – residential	$	—	$	—	$	—	$	48,973	$	48,973	$	—	$	—	$	—	$	39,611	$	39,611

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
June 30, 2025 (Dollars in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
AFS securities:
U.S. Treasury	$	2,731	$	(21)	$	242	$	(11)	$	2,973	$	(32)
GSE	105		(2)		208		(25)		313		(27)
Agency MBS – residential	10,300		(122)		25,721		(4,712)		36,021		(4,834)
Agency MBS – commercial	35		—		2,118		(600)		2,153		(600)
States and political subdivisions	178		(16)		37		(3)		215		(19)

Other	8		—		7		—		15		—
Total	$	13,357	$	(161)	$	28,333	$	(5,351)	$	41,690	$	(5,512)
HTM securities:


Agency MBS – residential	$	—	$	—	$	39,611	$	(9,362)	$	39,611	$	(9,362)








	Less than 12 months				12 months or more				Total
December 31, 2024 (Dollars in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses

AFS securities:
U.S. Treasury	$	1,579	$	(6)	$	352	$	(18)	$	1,931	$	(24)
GSE	146		(4)		230		(35)		376		(39)
Agency MBS – residential	20,546		(322)		26,788		(5,494)		47,334		(5,816)
Agency MBS – commercial	105		(1)		2,111		(644)		2,216		(645)
States and political subdivisions	20		(1)		202		(18)		222		(19)

Other	—		—		7		—		7		—
Total	$	22,396	$	(334)	$	29,690	$	(6,209)	$	52,086	$	(6,543)
HTM securities:


Agency MBS – residential	$	—	$	—	$	40,286	$	(10,354)	$	40,286	$	(10,354)

At June 30, 2025 and December 31, 2024, no ACL was established for AFS or HTM securities. Substantially all of the unrealized losses on the securities portfolio 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. The Company does not expect to incur any credit losses on investment securities.

The following table presents gross securities gains and losses recognized in earnings:


(Dollars in millions)		Three Months Ended June 30,						Six Months Ended June 30,
	2025			2024			2025			2024
Gross realized gains		$	—		$	—		$	2		$	—
Gross realized losses(1)		(18)			(6,650)			(21)			(6,650)

Securities gains (losses), net		$	(18)		$	(6,650)		$	(19)		$	(6,650)

(1)Includes $485 million pre-tax gain on terminated hedges for the three and six months ended June 30, 2024.

Truist Financial Corporation 13

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
June 30, 2025 (Dollars in millions)	Current		30-89 Days Past Due		90 Days Or More Past Due(1)		Nonperforming		Total
Commercial:
Commercial and industrial	$	161,629	$	122	$	2	$	520	$	162,273
CRE	20,108		34		—		128		20,270
Commercial construction	8,261		15		—		1		8,277

Consumer:
Residential mortgage	56,477		695		465		191		57,828
Home equity	9,424		54		6		107		9,591
Indirect auto	23,736		582		—		240		24,558
Other consumer	30,795		239		24		64		31,122

Credit card	4,758		70		49		—		4,877

Total	$	315,188	$	1,811	$	546	$	1,251	$	318,796
(1)Includes government guaranteed loans of $424 million in the residential mortgage portfolio.

	Accruing
December 31, 2024 (Dollars in millions)	Current		30-89 Days Past Due		90 Days Or More Past Due(1)		Nonperforming		Total
Commercial:
Commercial and industrial	$	154,140	$	168	$	19	$	521	$	154,848
CRE	20,004		60		1		298		20,363
Commercial construction	8,514		3		—		3		8,520

Consumer:
Residential mortgage	54,233		719		481		166		55,599
Home equity	9,457		60		9		116		9,642
Indirect auto	22,208		622		—		259		23,089
Other consumer	29,070		236		23		66		29,395

Credit card	4,792		81		54		—		4,927

Total	$	302,418	$	1,949	$	587	$	1,429	$	306,383
(1)Includes government guaranteed loans of $430 million in the residential mortgage portfolio.

14 Truist Financial Corporation

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


June 30, 2025 (Dollars in millions)	Amortized Cost Basis by Origination Year																	Revolving Credit		Loans Converted to Term		Other(1)
2025			2024			2023			2022			2021			Prior					Total
Commercial:
Commercial and industrial:
Pass	$	21,413		$	17,868		$	11,417		$	17,086		$	9,577		$	16,905	$	61,709	$	—	$	(213)	$	155,762
Special mention	227			240			179			166			294			183		849		—		—		2,138
Substandard	251			477			506			555			218			591		1,255		—		—		3,853
Nonperforming	6			99			60			58			19			30		248		—		—		520
Total	21,897			18,684			12,162			17,865			10,108			17,709		64,061		—		(213)		162,273
Gross charge-offs	6			22			42			27			11			5		109		—		—		222
CRE:
Pass	2,868			1,442			1,892			3,552			1,874			4,335		1,309		—		(63)		17,209
Special mention	1			145			48			135			242			172		15		—		—		758
Substandard	188			252			316			673			207			420		119		—		—		2,175
Nonperforming	1			1			14			27			8			77		—		—		—		128
Total	3,058			1,840			2,270			4,387			2,331			5,004		1,443		—		(63)		20,270
Gross charge-offs	—			27			28			1			—			52		—		—		—		108
Commercial construction:
Pass	427			715			1,307			1,152			304			29		1,802		—		—		5,736
Special mention	13			90			79			459			232			—		87		—		—		960
Substandard	—			171			287			1,014			67			—		41		—		—		1,580
Nonperforming	—			1			—			—			—			—		—		—		—		1
Total	440			977			1,673			2,625			603			29		1,930		—		—		8,277








Consumer:
Residential mortgage:

Current	3,998			4,404			2,643			12,294			15,018			18,120		—		—		—		56,477
30 - 89 days past due	15			20			40			58			62			500		—		—		—		695
90 days or more past due	—			19			65			50			31			300		—		—		—		465
Nonperforming	—			1			6			32			27			125		—		—		—		191
Total	4,013			4,444			2,754			12,434			15,138			19,045		—		—		—		57,828
Gross charge-offs	—			—			1			—			—			1		—		—		—		2
Home equity:

Current	—			—			—			—			—			—		6,278		3,146		—		9,424
30 - 89 days past due	—			—			—			—			—			—		39		15		—		54
90 days or more past due	—			—			—			—			—			—		4		2		—		6
Nonperforming	—			—			—			—			—			—		37		70		—		107
Total	—			—			—			—			—			—		6,358		3,233		—		9,591
Gross charge-offs	—			—			—			—			—			—		6		—		—		6
Indirect auto:

Current	6,523			7,306			2,486			4,076			2,053			1,299		—		—		(7)		23,736
30 - 89 days past due	27			105			101			149			87			113		—		—		—		582

Nonperforming	3			37			44			67			44			45		—		—		—		240
Total	6,553			7,448			2,631			4,292			2,184			1,457		—		—		(7)		24,558
Gross charge-offs	2			42			62			84			37			54		—		—		—		281
Other consumer:

Current	7,213			7,714			4,984			4,197			1,836			2,178		2,644		25		4		30,795
30 - 89 days past due	23			51			66			47			19			24		7		2		—		239
90 days or more past due	2			5			10			4			—			—		2		1		—		24
Nonperforming	2			11			15			12			11			13		—		—		—		64
Total	7,240			7,781			5,075			4,260			1,866			2,215		2,653		28		4		31,122
Gross charge-offs	19			67			83			60			27			31		13		—		—		300







Credit card:
Current	—			—			—			—			—			—		4,726		32		—		4,758
30 - 89 days past due	—			—			—			—			—			—		65		5		—		70
90 days or more past due	—			—			—			—			—			—		46		3		—		49

Total	—			—			—			—			—			—		4,837		40		—		4,877
Gross charge-offs	—			—			—			—			—			—		138		6		—		144
Total	$	43,201		$	41,174		$	26,565		$	45,863		$	32,230		$	45,459	$	81,282	$	3,301	$	(279)	$	318,796
Gross charge-offs	$	27		$	158		$	216		$	172		$	75		$	143	$	266	$	6	$	—	$	1,063

Truist Financial Corporation 15


December 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	$	22,675		$	14,595		$	20,976		$	11,449		$	6,607		$	13,087	$	58,790	$	—	$	(199)	$	147,980
Special mention	460			302			377			407			80			254		830		—		—		2,710
Substandard	481			608			618			234			180			484		1,032		—		—		3,637
Nonperforming	28			98			64			31			11			60		229		—		—		521
Total	23,644			15,603			22,035			12,121			6,878			13,885		60,881		—		(199)		154,848
Gross charge-offs	33			126			66			14			6			42		108		—		—		395
CRE:
Pass	1,704			2,696			3,788			1,955			1,557			3,649		1,794		—		(64)		17,079
Special mention	262			65			331			197			52			29		91		—		—		1,027
Substandard	252			207			374			356			157			499		114		—		—		1,959
Nonperforming	7			134			52			7			34			64		—		—		—		298
Total	2,225			3,102			4,545			2,515			1,800			4,241		1,999		—		(64)		20,363
Gross charge-offs	14			48			111			1			32			110		—		—		—		316
Commercial construction:
Pass	721			1,603			1,521			516			37			71		1,461		—		—		5,930
Special mention	100			106			701			158			70			95		79		—		—		1,309
Substandard	54			95			752			308			—			—		69		—		—		1,278
Nonperforming	2			—			1			—			—			—		—		—		—		3
Total	877			1,804			2,975			982			107			166		1,609		—		—		8,520







Consumer:
Residential mortgage:

Current	4,174			2,754			12,743			15,471			5,298			13,793		—		—		—		54,233
30 - 89 days past due	21			30			69			70			49			480		—		—		—		719
90 or more days past due	7			53			44			31			34			312		—		—		—		481
Nonperforming	—			4			22			26			7			107		—		—		—		166
Total	4,202			2,841			12,878			15,598			5,388			14,692		—		—		—		55,599
Gross charge-offs	—			—			—			—			—			3		—		—		—		3
Home equity:

Current	—			—			—			—			—			—		6,135		3,322		—		9,457
30 - 89 days past due	—			—			—			—			—			—		42		18		—		60
90 days or more past due	—			—			—			—			—			—		6		3		—		9
Nonperforming	—			—			—			—			—			—		39		77		—		116
Total	—			—			—			—			—			—		6,222		3,420		—		9,642
Gross charge-offs	—			—			—			—			—			—		9		—		—		9
Indirect auto:

Current	8,904			3,130			5,279			2,814			1,299			791		—		—		(9)		22,208
30 - 89 days past due	80			113			177			110			58			84		—		—		—		622

Nonperforming	17			49			78			53			28			34		—		—		—		259
Total	9,001			3,292			5,534			2,977			1,385			909		—		—		(9)		23,089
Gross charge-offs	23			120			216			98			47			87		—		—		—		591
Other consumer:

Current	9,945			6,285			5,172			2,340			1,198			1,498		2,608		21		3		29,070
30 - 89 days past due	44			71			63			25			12			14		6		1		—		236
90 days or more past due	5			10			5			1			—			—		2		—		—		23
Nonperforming	5			18			16			12			5			10		—		—		—		66
Total	9,999			6,384			5,256			2,378			1,215			1,522		2,616		22		3		29,395
Gross charge-offs	90			193			159			70			35			31		28		—		—		606







Credit card:
Current	—			—			—			—			—			—		4,778		14		—		4,792
30 - 89 days past due	—			—			—			—			—			—		80		1		—		81
90 days or more past due	—			—			—			—			—			—		53		1		—		54

Total	—			—			—			—			—			—		4,911		16		—		4,927
Gross charge-offs	—			—			—			—			—			—		287		9		—		296
Total	$	49,948		$	33,026		$	53,223		$	36,571		$	16,773		$	35,415	$	78,238	$	3,458	$	(269)	$	306,383
Gross charge-offs	$	160		$	487		$	552		$	183		$	120		$	273	$	432	$	9	$	—	$	2,216

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

16 Truist Financial Corporation

ACL

The following tables present activity in the ACL:








(Dollars in millions)	Balance at Apr 1, 2024		Charge-Offs		Recoveries		Provision (Benefit)		Other(1)		Balance at Jun 30, 2024
Commercial:
Commercial and industrial	$	1,360	$	(83)	$	14	$	46	$	1	$	1,338
CRE	663		(97)		5		90		—		661
Commercial construction	198		—		1		7		—		206

Consumer:
Residential mortgage	222		(1)		2		(18)		—		205
Home equity	90		(3)		4		(3)		—		88
Indirect auto	923		(136)		30		128		—		945
Other Consumer	959		(141)		28		112		—		958

Credit card	388		(74)		9		84		—		407

ALLL	4,803		(535)		93		446		1		4,808
RUFC	297		—		—		5		—		302
ACL	$	5,100	$	(535)	$	93	$	451	$	1	$	5,110

(Dollars in millions)	Balance at Apr 1, 2025		Charge-Offs		Recoveries		Provision (Benefit)		Other(1)		Balance at Jun 30, 2025
Commercial:
Commercial and industrial	$	1,307	$	(120)	$	31	$	96	$	(5)	$	1,309
CRE	604		(38)		3		(6)		—		563
Commercial construction	280		—		1		(22)		—		259

Consumer:
Residential mortgage	227		(1)		—		(6)		—		220
Home equity	93		(4)		4		(1)		—		92
Indirect auto	955		(127)		28		134		—		990
Other consumer	989		(146)		31		177		—		1,051

Credit card	415		(70)		12		58		—		415

ALLL	4,870		(506)		110		430		(5)		4,899
RUFC	296		—		—		58		—		354
ACL	$	5,166	$	(506)	$	110	$	488	$	(5)	$	5,253



















(Dollars in millions)	Balance at Jan 1, 2024		Charge-Offs		Recoveries		Provision (Benefit)		Other(1)		Balance at Jun 30, 2024
Commercial:
Commercial and industrial	$	1,404	$	(180)	$	46	$	68	$	—	$	1,338
CRE	616		(200)		12		233		—		661
Commercial construction	174		—		1		31		—		206

Consumer:
Residential mortgage	298		(2)		3		(94)		—		205
Home equity	89		(6)		9		(4)		—		88
Indirect auto	942		(290)		58		235		—		945
Other consumer	890		(306)		56		318		—		958

Credit card	385		(151)		18		155		—		407

ALLL	4,798		(1,135)		203		942		—		4,808
RUFC	295		—		—		9		(2)		302
ACL	$	5,093	$	(1,135)	$	203	$	951	$	(2)	$	5,110

Truist Financial Corporation 17


(Dollars in millions)	Balance at Jan 1, 2025		Charge-Offs		Recoveries		Provision (Benefit)		Other(1)		Balance at Jun 30, 2025
Commercial:
Commercial and industrial	$	1,284	$	(222)	$	55	$	196	$	(4)	$	1,309
CRE	643		(108)		10		18		—		563
Commercial construction	257		—		1		1		—		259

Consumer:
Residential mortgage	204		(2)		2		16		—		220
Home equity	89		(6)		8		1		—		92
Indirect auto	955		(281)		53		263		—		990
Other consumer	994		(300)		61		296		—		1,051

Credit card	431		(144)		23		105		—		415

ALLL	4,857		(1,063)		213		896		(4)		4,899
RUFC	304		—		—		50		—		354
ACL	$	5,161	$	(1,063)	$	213	$	946	$	(4)	$	5,253

(1)Includes the amounts for the ALLL for PCD acquisitions and other activity.

The commercial ALLL decreased $60 million, and the consumer and credit card ALLL increased $89 million, in the three months ended June 30, 2025. The decrease in the commercial ALLL primarily reflects a decrease in reserves related to the CRE portfolio that was partially offset by loan growth. The increase in the consumer and credit card ALLL was primarily driven by loan growth in the indirect auto and other consumer portfolios that was partially offset by a release of reserves in the residential mortgage and home equity portfolios. The commercial ALLL decreased $53 million, and the consumer and credit card ALLL increased $95 million, in the six months ended June 30, 2025. The driving factors of these year-to-date changes are generally consistent with those described above.

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 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 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 June 30, 2025 ACL, unchanged since December 31, 2024. While the scenario weightings were unchanged, the macroeconomic forecasts are dynamic and evolve with current and expected economic conditions. Risks, including tariff and inflation-related uncertainty not fully captured by the quantitative models and scenario weightings, are incrementally reflected in the qualitative component. The economic outlook continues to reflect risks related to the potential impacts of tariffs and increases to inflation and showed deterioration in the forecasted unemployment rate compared to the earlier quarter. The economic forecasts shaping the quantitative model outcomes of the ACL estimate as of June 30, 2025 included low single-digit GDP growth and a mid-to-high single-digit unemployment rate.

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 judgment related to expected future credit losses, will continue to be an important component of the ACL for the foreseeable future. The June 30, 2025 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, 2024 for additional information.

18 Truist Financial Corporation

NPAs

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


	June 30, 2025				December 31, 2024
	Recorded Investment				Recorded Investment
(Dollars in millions)	Without an ALLL		With an ALLL		Without an ALLL		With an ALLL
Commercial:
Commercial and industrial	$	76	$	444	$	52	$	469
CRE	7		121		32		266
Commercial construction	—		1		—		3

Consumer:
Residential mortgage	4		187		1		165
Home equity	1		106		1		115
Indirect auto	—		240		23		236
Other consumer	—		64		—		66


Total	$	88	$	1,163	$	109	$	1,320

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


(Dollars in millions)	Jun 30, 2025		Dec 31, 2024
Nonperforming loans and leases HFI	$	1,251	$	1,429
Nonperforming LHFS	12		—
Foreclosed real estate	4		3
Other foreclosed property	49		45
Total nonperforming assets	$	1,316	$	1,477
Residential mortgage loans in the process of foreclosure	$	187	$	169

Truist Financial Corporation 19

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 June 30, 2025 (Dollars in millions)	Renewals		Term Extensions		Interest Rate Adjustments		Capitalizations		Payment Delays		Combination - Capitalization and Term Extension		Other		Total Modified Loans		Percentage of Total Class of Financing Receivable
Commercial:
Commercial and industrial	$	359	$	—	$	—	$	—	$	—	$	—	$	20	$	379	0.23	%
CRE	278		—		—		—		—		—		—		278		1.37
Commercial construction	45		—		—		—		—		—		—		45		0.54
Consumer:					—
Residential mortgage	—		23		—		26		41		81		17		188		0.33
Home equity	—		—		—		—		—		—		2		2		0.02
Indirect auto	—		12		—		—		567		—		8		587		2.39
Other consumer	—		10		—		—		—		—		—		10		0.03
Credit card	—		—		8		—		—		—		—		8		0.16
Total	$	682	$	45	$	8	$	26	$	608	$	81	$	47	$	1,497	0.47

Six Months Ended June 30, 2025 (Dollars in millions)	Renewals		Term Extensions		Interest Rate Adjustments		Capitalizations		Payment Delays		Combination - Capitalization and Term Extension		Other		Total Modified Loans		Percentage of Total Class of Financing Receivable
Commercial:
Commercial and industrial	$	528	$	—	$	—	$	—	$	46	$	—	$	20	$	594	0.37	%
CRE	476		—		—		—		—		—		—		476		2.35
Commercial construction	73		—		—		—		—		—		—		73		0.88
Consumer:
Residential mortgage	—		39		—		61		58		162		38		358		0.62
Home equity	—		—		—		—		—		—		3		3		0.03
Indirect auto	—		17		1		—		987		—		16		1,021		4.16
Other consumer	—		19		—		—		—		—		1		20		0.06
Credit card	—		—		16		—		—		—		—		16		0.33
Total	$	1,077	$	75	$	17	$	61	$	1,091	$	162	$	78	$	2,561	0.80


Three Months Ended June 30, 2024 (Dollars in millions)	Renewals		Term Extensions		Capitalizations		Payment Delays		Combination - Capitalization and Term Extension		Other		Total Modified Loans		Percentage of Total Class of Financing Receivable
Commercial:
Commercial and industrial	$	198	$	—	$	—	$	—	$	—	$	52	$	250	0.16	%
CRE	31		—		—		—		—		—		31		0.14
Commercial construction	5		—		—		—		—		—		5		0.06
Consumer:
Residential mortgage	—		24		14		25		59		15		137		0.25
Home equity	—		1		—		—		—		2		3		0.03
Indirect auto	—		6		—		642		—		7		655		2.98
Other consumer	—		10		—		—		—		1		11		0.04
Credit card	—		—		—		—		—		10		10		0.20
Total	$	234	$	41	$	14	$	667	$	59	$	87	$	1,102	0.36

Six Months Ended June 30, 2024 (Dollars in millions)	Renewals		Term Extensions		Capitalizations		Payment Delays		Combination - Capitalization and Term Extension		Other		Total Modified Loans		Percentage of Total Class of Financing Receivable
Commercial:
Commercial and industrial	$	321	$	—	$	—	$	2	$	—	$	67	$	390	0.25	%
CRE	170		—		—		—		—		13		183		0.84
Commercial construction	45		—		—		—		—		—		45		0.58
Consumer:
Residential mortgage	—		43		26		33		112		25		239		0.44
Home equity	—		1		—		—		—		5		6		0.06
Indirect auto	—		12		—		989		—		15		1,016		4.62
Other consumer	—		19		—		1		—		2		22		0.08

Credit card	—		—		—		—		—		20		20		0.40
Total	$	536	$	75	$	26	$	1,025	$	112	$	147	$	1,921	0.63

20 Truist Financial Corporation


Three Months Ended June 30, 2025
Loan Type						Financial Effect
Renewals
Commercial and industrial						Extended the term by 14 months and increased the interest rate by 0.4%.
CRE						Extended the term by 13 months and increased the interest rate by 0.2%.
Commercial construction						Extended the term by 2 months.
Term Extensions

Residential mortgage						Extended the term by 90 months.

Indirect auto						Extended the term by 28 months.
Other consumer						Extended the term by 32 months.
Interest Rate Adjustments

Credit card						Decreased the interest rate by 17%.
Capitalizations
Residential mortgage						Capitalized a portion of forborne loan and other advanced payments into the outstanding loan balance.
Payment Delays


Residential mortgage						Provided 235 days of payment deferral.

Indirect auto						Provided 247 days of payment deferral.







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 94 months.



Six Months Ended June 30, 2025
Loan Type						Financial Effect
Renewals
Commercial and industrial						Extended the term by 12 months and increased the interest rate by 0.4%.
CRE						Extended the term by 15 months and increased the interest rate by 0.1%.
Commercial construction						Extended the term by 6 months.
Term Extensions

Residential mortgage						Extended the term by 96 months.

Indirect auto						Extended the term by 28 months.
Other consumer						Extended the term by 29 months.
Interest Rate Adjustments

Indirect auto						Decreased the interest rate by 7%.
Credit card						Decreased the interest rate by 17%.
Capitalizations
Residential mortgage						Capitalized a portion of forborne loan and other advanced payments into the outstanding loan balance.
Payment Delays
Commercial and industrial						Provided 180 days of payment deferral.

Residential mortgage						Provided 230 days of payment deferral.

Indirect auto						Provided 246 days of payment deferral.







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 96 months.

Truist Financial Corporation 21


Three Months Ended June 30, 2024
Loan Type						Financial Effect
Renewals
Commercial and industrial						Extended the term by 28 months and increased the interest rate by 0.05%.
CRE						Extended the term by 15 months and increased the interest rate by 0.01%.
Commercial construction						Extended the term by 10 months and increased the interest rate by 0.8%.
Term Extensions
Residential mortgage						Extended the term by 103 months.
Home equity						Extended the term by 170 months.
Indirect auto						Extended the term by 26 months.
Other Consumer						Extended the term by 22 months.
Capitalizations
Residential mortgage						Capitalized a portion of forborne loan and other advanced payments into the outstanding loan balance.
Payment Delays

Residential mortgage						Provided 198 days of payment deferral.

Indirect auto						Provided 193 days of payment deferral.






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 82 months.



Six Months Ended June 30, 2024
Loan Type						Financial Effect
Renewals
Commercial and industrial						Extended the term by 22 months and increased the interest rate by 0.2%.
CRE						Extended the term by 8 months and increased the interest rate by 0.27%.
Commercial construction						Extended the term by 12 months and increased the interest rate by 0.1%.
Term Extensions

Residential mortgage						Extended the term by 105 months.
Home equity						Extended the term by 161 months.
Indirect auto						Extended the term by 26 months.
Other consumer						Extended the term by 24 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 97 days of payment deferral.

Residential mortgage						Provided 198 days of payment deferral.

Indirect auto						Provided 186 days of payment deferral.
Other consumer						Provided 157 days of payment deferral






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 83 months.

The tables above exclude trial modifications totaling $42 million and $48 million as of June 30, 2025 and 2024, 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 June 30, 2025 and December 31, 2024, Truist had $430 million and $336 million, respectively, in unfunded lending commitments to lend additional funds to borrowers experiencing financial difficulty for which Truist has modified the terms of the loans in the ways described above during the twelve months preceding June 30, 2025 and December 31, 2024, 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 ACL is adjusted by the same amount.

22 Truist Financial Corporation

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, or charge-offs that occurred subsequent to modification.


	Payment Status
June 30, 2025 (Dollars in millions)	Current		30-89 Days Past Due		90 Days or More Past Due		Total
Commercial:
Commercial and industrial	$	922	$	3	$	23	$	948
CRE	678		—		1		679
Commercial construction	143		—		—		143
Consumer:
Residential mortgage	343		111		132		586
Home equity	4		—		—		4
Indirect auto	1,021		220		32		1,273
Other consumer	31		2		1		34
Credit card	18		4		3		25
Total	$	3,160	$	340	$	192	$	3,692
Total nonaccrual loans included above	$	166	$	35	$	104	$	305

	Payment Status
December 31, 2024 (Dollars in millions)	Current		30-89 Days Past Due		90 Days or More Past Due		Total
Commercial:
Commercial and industrial	$	974	$	44	$	18	$	1,036
CRE	313		7		3		323
Commercial construction	79		—		—		79
Consumer:
Residential mortgage	279		95		102		476
Home equity	9		—		—		9
Indirect auto	1,025		213		35		1,273
Other consumer	32		3		1		36
Credit card	20		3		2		25
Total	$	2,731	$	365	$	161	$	3,257
Total nonaccrual loans included above	$	232	$	78	$	91	$	401

Truist Financial Corporation 23

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


June 30, 2025 (Dollars in millions)	Renewals		Term Extensions		Interest Rate Adjustments		Capitalizations		Payment Delays		Combination - Capitalization and Term Extension		Other		Total
Commercial:
Commercial and industrial	$	23	$	—	$	—	$	—	$	—	$	—	$	—	$	23
CRE	1		—		—		—		—		—		—		1

Consumer:
Residential mortgage	—		11		—		5		69		40		7		132

Indirect auto	—		1		—		—		29		—		2		32
Other consumer	—		1		—		—		—		—		—		1
Credit card	—		—		3		—		—		—		—		3
Total	$	24	$	13	$	3	$	5	$	98	$	40	$	9	$	192
















December 31, 2024 (Dollars in millions)	Renewals		Term Extensions		Interest Rate Adjustments		Capitalizations		Payment Delays		Combination - Capitalization and Term Extension		Other		Total
Commercial:
Commercial and industrial	$	18	$	—	$	—	$	—	$	—	$	—	$	—	$	18
CRE	3		—		—		—		—		—		—		3

Consumer:
Residential mortgage	—		13		—		6		44		33		6		102

Indirect auto	—		1		—		—		32		—		2		35
Other consumer	—		1		—		—		—		—		—		1
Credit card	—		—		2		—		—		—		—		2
Total	$	21	$	15	$	2	$	6	$	76	$	33	$	8	$	161

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

The following table presents additional information about loans and leases:


(Dollars in millions)			Jun 30, 2025						Dec 31, 2024
Unearned income, discounts, and net deferred loan fees and costs			$	526					$	595

24 Truist Financial Corporation

NOTE 6. Goodwill and Other Intangible Assets

The Company monitored events and circumstances during the period from January 1, 2025 to June 30, 2025, 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 October 1, 2024 quantitative impairment test, and the sensitivity of the October 1, 2024 quantitative results to changes in assumptions as of June 30, 2025. 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 June 30, 2025.

The Company most recently performed its annual goodwill impairment test for its CSBB, WB, and Wealth reporting units as of October 1, 2024. Based on the results of the quantitative analyses, the Company concluded that the fair values of the CSBB, WB and Wealth reporting units exceeded their respective carrying values; therefore, there was no goodwill impairment. However, for the WB reporting unit, the fair value of the reporting unit exceeded its carrying value by approximately 10%, indicating that the goodwill of the WB reporting unit may remain at risk of impairment. The fair values of the CSBB, WB, and Wealth reporting units were estimated using the income approach and a market-based approach, each weighted 50%.

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 and the divestiture of Sterling Capital Management, LLC. Refer to “Note 18. Operating Segments” for additional information on segments and “Note 21. Operating Segments” of the Annual Report on Form 10-K for the year ended December 31, 2024 for additional information on the segment realignment.



(Dollars in millions)	CSBB		WB		Total



Goodwill, January 1, 2024	$	13,503	$	3,653	$	17,156

Segment realignment	(1,498)		1,498		—
Divestitures	—		(32)		(32)

Adjustments and other	—		1		1
Goodwill, December 31, 2024	12,005		5,120		17,125





Goodwill, June 30, 2025	$	12,005	$	5,120	$	17,125

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


		June 30, 2025									December 31, 2024
(Dollars in millions)	Gross Carrying Amount			Accumulated Amortization			Net Carrying Amount			Gross Carrying Amount			Accumulated Amortization			Net Carrying Amount
CDI		$	2,410		$	(1,880)		$	530		$	2,453		$	(1,837)		$	616
Other, primarily client relationship intangibles		1,462			(593)			869			1,458			(524)			934
Total		$	3,872		$	(2,473)		$	1,399		$	3,911		$	(2,361)		$	1,550

Truist Financial Corporation 25

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)	Jun 30, 2025			Dec 31, 2024
UPB of residential mortgage loan servicing portfolio	$	270,750		$	273,412
UPB of residential mortgage loans serviced for others, primarily agency conforming fixed rate	213,002			218,475
Mortgage loans sold with recourse	138			146
Maximum recourse exposure from mortgage loans sold with recourse liability	87			91
Indemnification, recourse and repurchase reserves	27			44

As of / For the Six Months Ended June 30, (Dollars in millions)	2025			2024
UPB of residential mortgage loans sold from LHFS	$	4,990		$	4,651
Pre-tax gains recognized on mortgage loans sold and held for sale	35			34
Servicing fees recognized from mortgage loans serviced for others	309			294
Approximate weighted average servicing fee on the outstanding balance of residential mortgage loans serviced for others	0.28		%	0.28		%
Weighted average interest rate on mortgage loans serviced for others	3.70			3.63

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




(Dollars in millions)	2025		2024
Residential MSRs, carrying value, January 1	$	3,430	$	3,088

Additions	102		78
Sales	—		(2)
Change in fair value due to changes in valuation inputs or assumptions	(31)		88
Realization of expected net servicing cash flows, passage of time, and other	(151)		(135)
Residential MSRs, carrying value, June 30	$	3,350	$	3,117

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


	June 30, 2025								December 31, 2024
	Range				Weighted Average				Range					Weighted Average
(Dollars in millions)	Min		Max					Min			Max
Prepayment speed	6.3	%	13.5	%	7.4		%		6.3	%		11.2	%	7.1		%
Effect on fair value of a 10% increase					$	(94)								$	(89)
Effect on fair value of a 20% increase					(181)									(172)
OAS	1.4	%	12.2	%	4.8		%		1.8	%		12.5	%	4.8		%
Effect on fair value of a 10% increase					$	(70)								$	(70)
Effect on fair value of a 20% increase					(137)									(138)
Composition of loans serviced for others:
Fixed-rate residential mortgage loans					99.7		%							99.7		%
Adjustable-rate residential mortgage loans					0.3									0.3
Total					100.0		%							100.0		%
Weighted average life					7.5 years									7.6 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.

26 Truist Financial Corporation

Commercial Mortgage Activities

The following table summarizes commercial mortgage servicing activities:



(Dollars in millions)	Jun 30, 2025		Dec 31, 2024
UPB of CRE mortgages serviced for others	$	27,007	$	27,845
CRE mortgages serviced for others covered by recourse provisions	9,731		9,985
Maximum recourse exposure from CRE mortgages sold with recourse liability	2,866		2,940
Recorded reserves related to recourse exposure	11		11
CRE mortgages originated during the year-to-date period	277		1,467
Commercial MSRs at fair value	238		265

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:




	June 30, 2025						December 31, 2024
(Dollars in millions)	Operating Leases			Finance Leases			Operating Leases			Finance Leases
ROU assets	$	1,042		$	17		$	1,015		$	17
Lease liabilities	1,303			19			1,301			19
Weighted average remaining term	6.7 years			7.7 years			6.7 years			7.8 years
Weighted average discount rate	3.6		%	5.1		%	3.5		%	5.1		%


	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in millions)	2025		2024		2025		2024
Operating lease costs	$	69	$	66	$	137	$	143

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)	Jun 30, 2025		Dec 31, 2024
Assets held under operating leases(1)(2)	$	1,917	$	1,843


Accumulated depreciation	(534)		(539)
Net	$	1,383	$	1,304

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

(2)Excludes operating leases held-for-sale that totaled $22 million and $18 million at June 30, 2025 and December 31, 2024, respectively.

Truist Financial Corporation 27

NOTE 9. Borrowings

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


(Dollars in millions)	Jun 30, 2025		Dec 31, 2024


Truist Financial Corporation:(1)
Fixed rate senior notes	$	21,821	$	22,134

Fixed rate subordinated notes(2)	1,823		1,828
Capital notes(2)	636		634

Truist Bank:(1)
Fixed rate senior notes	1,748		1,744

Fixed rate subordinated notes(2)	4,796		4,771

Floating rate FHLB advances	12,150		2,400
Other long-term debt(3)	1,453		1,445


Total long-term debt	$	44,427	$	34,956

(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.

In July 2025, Truist redeemed all $1.5 billion principal amount outstanding of its fixed-to-floating rate senior holding company notes due July 28, 2026.

In July 2025, Truist issued $1.5 billion principal amount of fixed-to-floating rate senior bank notes with an interest rate of 4.42% due July 24, 2028 and $500 million floating rate senior bank notes due July 24, 2028.

NOTE 10. Shareholders’ Equity

Dividends on Common and Preferred Stock

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


(Dollars in millions, except per share data)	Dividends Per Share												Aggregate Dividends
Three Months Ended June 30,						Six Months Ended June 30,						Three Months Ended June 30,					Six Months Ended June 30,
2025			2024			2025			2024					2025			2024			2025			2024
Common stock	$	0.52		$	0.52		$	1.04		$	1.04				$	670		$	696		$	1,349		$	1,390
Preferred stock:
Series I	1,286.86			1,598.23			2,588.71			3,159.45					2			3			4			5
Series J	1,315.93			1,628.26			2,646.85			3,218.54					2			2			3			3
Series L	—			2,269.81			—			4,481.17					—			16			—			33
Series M	2,562.50			2,562.50			2,562.50			2,562.50					13			13			13			13
Series N	—			—			833.63			600.00					—			—			56			41
Series O	328.13			328.13			656.25			656.25					7			7			15			15
Series P	618.75			618.75			618.75			618.75					25			25			25			25
Series Q	—			—			637.50			637.50					—			—			26			26
Series R	296.88			296.88			593.75			593.75					11			11			22			22
Total preferred stock															$	60		$	77		$	164		$	183

Share Repurchase Activity

In June 2024, Truist announced that the Board had authorized the repurchase of up to $5.0 billion of common stock beginning in the third quarter of 2024 through 2026 as part of Truist’s overall capital distribution strategy. For the six months ended June 30, 2025, the Company repurchased $1.3 billion of common stock, including excise tax, which represented 31.5 million shares, through open market repurchases. Repurchased shares revert to the status of authorized and unissued shares upon repurchase. At June 30, 2025, Truist had remaining authorization to repurchase up to $2.8 billion of common stock under the Board approved repurchase plan.

28 Truist Financial Corporation

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 previously transferred from AFS securities.






(Dollars in millions)	Pension and OPEB Costs		Cash Flow Hedges		AFS Securities		HTM Securities		Other, net		Total
AOCI balance, April 1, 2024	$	(1,078)	$	(490)	$	(9,354)	$	(2,296)	$	(4)	$	(13,222)
OCI before reclassifications, net of tax	34		(99)		(325)		—		1		(389)

Amounts reclassified from AOCI:
Before tax	—		79		6,529		75		—		6,683
Tax effect	—		18		1,540		18		—		1,576
Amounts reclassified, net of tax	—		61		4,989		57		—		5,107
Total OCI, net of tax	34		(38)		4,664		57		1		4,718
AOCI balance, June 30, 2024	$	(1,044)	$	(528)	$	(4,690)	$	(2,239)	$	(3)	$	(8,504)
AOCI balance, April 1, 2025	$	(643)	$	(432)	$	(4,095)	$	(2,075)	$	(5)	$	(7,250)
OCI before reclassifications, net of tax	1		205		69		—		5		280

Amounts reclassified from AOCI:
Before tax	1		92		(66)		71		—		98
Tax effect	—		22		(13)		12		—		21
Amounts reclassified, net of tax	1		70		(53)		59		—		77
Total OCI, net of tax	2		275		16		59		5		357
AOCI balance, June 30, 2025	$	(641)	$	(157)	$	(4,079)	$	(2,016)	$	—	$	(6,893)

(Dollars in millions)	Pension and OPEB Costs		Cash Flow Hedges		AFS Securities		HTM Securities		Other, net		Total









AOCI balance, January 1, 2024	$	(1,079)	$	(300)	$	(8,778)	$	(2,347)	$	(2)	$	(12,506)
OCI before reclassifications, net of tax(1)	35		(331)		(780)		—		(1)		(1,077)

Amounts reclassified from AOCI:
Before tax	—		134		6,371		141		—		6,646
Tax effect	—		31		1,503		33		—		1,567
Amounts reclassified, net of tax	—		103		4,868		108		—		5,079
Total OCI, net of tax	35		(228)		4,088		108		(1)		4,002
AOCI balance, June 30, 2024	$	(1,044)	$	(528)	$	(4,690)	$	(2,239)	$	(3)	$	(8,504)
AOCI balance, January 1, 2025	$	(648)	$	(861)	$	(4,573)	$	(2,125)	$	(6)	$	(8,213)
OCI before reclassifications, net of tax	6		563		612		—		6		1,187

Amounts reclassified from AOCI:
Before tax	1		185		(151)		136		—		171
Tax effect	—		44		(33)		27		—		38
Amounts reclassified, net of tax	1		141		(118)		109		—		133
Total OCI, net of tax	7		704		494		109		6		1,320
AOCI balance, June 30, 2025	$	(641)	$	(157)	$	(4,079)	$	(2,016)	$	—	$	(6,893)
Primary income statement location of amounts reclassified from AOCI	Other expense		Net interest income		Securities gains (losses) and Interest on securities		Interest on securities		Other income

(1)Includes the impact of the remeasurement of the pension plan and the reduction of pension benefit obligations following the sale of TIH. Refer to “Note 13. Benefit Plans” for additional information.

Truist Financial Corporation 29

NOTE 12. Income Taxes

For the three months ended June 30, 2025, the provision for income taxes was $273 million compared to a benefit from income taxes of $1.3 billion for the three months ended June 30, 2024, representing effective tax rates of 18.0% and 25.3%, respectively. For the six months ended June 30, 2025, the provision for income taxes was $547 million compared to a benefit from income taxes of $1.1 billion for the six months ended June 30, 2024, representing effective tax rates of 17.9% and 28.3%, respectively. The benefit from income taxes for the three and six months ended June 30, 2024 was driven by the discrete impact of the balance sheet repositioning of securities. 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 June 30,				Six Months Ended June 30,
(Dollars in millions)	Income Statement Location	2025		2024		2025		2024
Service cost(1)	Personnel expense / Net income from discontinued operations	$	69	$	84	$	137	$	180
Interest cost	Other expense	114		112		228		220
Estimated return on plan assets	Other expense	(242)		(238)		(485)		(482)
Amortization and other	Other expense	—		—		—		1
Net periodic (benefit) cost		$	(59)	$	(42)	$	(120)	$	(81)

(1)Includes $2 million and $10 million for the three and six months ended June 30, 2024, respectively, of service cost reported in net income from discontinued operations for the qualified defined benefit pension plan for employees of TIH.

Truist may make 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 qualified pension plan during the six months ended June 30, 2025.

30 Truist Financial Corporation

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	Jun 30, 2025		Dec 31, 2024
Investments in affordable housing projects and other qualified tax credits:
Carrying amount	Other assets	$	7,743	$	7,782
Amount of future funding commitments included in carrying amount	Other liabilities	2,410		2,667
Lending exposure	Loans and leases for funded amounts	2,220		2,376

Renewable energy investments:
Carrying amount	Other assets	840		551
Amount of future funding commitments not included in carrying amount	NA	503		702
SBIC and certain other equity method investments:
Carrying amount	Other assets	947		878
Amount of future funding commitments not included in carrying amount	NA	598		613

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 June 30,				Six Months Ended June 30,
(Dollars in millions)	Income Statement Location	2025		2024		2025		2024
Tax credits:


Investments in affordable housing projects, other qualified tax credits, and other community development investments	Provision for income taxes	$	209	$	185	$	420	$	370

Amortization and other changes in carrying amount:
Investments in affordable housing projects and other qualified tax credits	Provision for income taxes	$	186	$	170	$	374	$	341
Other community development investments	Other noninterest income	3		3		5		5

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)	Jun 30, 2025		Dec 31, 2024
Commitments to extend, originate, or purchase credit and other commitments	$	221,244	$	210,645
Residential mortgage loans sold with recourse	138		146
CRE mortgages serviced for others covered by recourse provisions	9,731		9,985
Other loans serviced for others covered by recourse and other provisions	2,388		2,022
Letters of credit	8,399		7,532

Truist Financial Corporation 31

Total Return Swaps

The Company enters into TRS transactions with third-party clients, whereby a VIE purchases reference assets identified by a client. The Company financially supports the VIE’s purchases 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 reference assets and providing them with the rights to appreciation on the reference assets. The terms of the TRS contracts require the third-party clients to post initial margin collateral, as well as ongoing variation margin as the fair values of the underlying reference assets change. The following table provides a summary of the TRS transactions with the associated VIE reference assets, which include trading loans and bonds:


(Dollars in millions)	Jun 30, 2025		Dec 31, 2024
Total return swaps:
VIE assets	$	2,396	$	1,854
Trading loans and bonds	2,014		1,473
VIE liabilities	379		356

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.

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)	Jun 30, 2025		Dec 31, 2024
Pledged securities	$	36,759	$	48,058

Pledged loans:
FRB	103,542		93,497
FHLB	73,185		71,931
Unused borrowing capacity:
FRB	80,374		72,040
FHLB	30,417		31,411

Legal Proceedings and Other Matters

Truist is routinely named as a defendant in or a party to numerous actual or threatened legal proceedings and other matters and is 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 the matter 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.

32 Truist Financial Corporation

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 June 30, 2025. 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.

The following is a description of a legal proceeding 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 sought a return of up to $452 million in paid overdraft fees plus prejudgment interest, which based on this amount of claimed fees would have been estimated at approximately $447 million as of June 30, 2025. 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 separately appealed the trial court’s order to the Georgia Court of Appeals.

On February 20, 2025, the Court of Appeals ruled on the appeals and affirmed in part and reversed in part the trial court’s March 4, 2024 order. Truist and the class filed motions to reconsider with the Court of Appeals, which were denied on March 19, 2025. On April 8, 2025, Truist filed a petition for a writ of certiorari with the Georgia Supreme Court, which remains pending. The class did not seek such a writ, and therefore, the rulings by the Court of Appeals in favor of Truist are final.

Truist Financial Corporation 33

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:


June 30, 2025 (Dollars in millions)	Total		Level 1		Level 2		Level 3		Netting Adjustments(1)
Assets:
Trading assets:
U.S. Treasury	$	220	$	—	$	220	$	—	$	—
GSE	42		—		42		—		—


States and political subdivisions	796		—		796		—		—

Corporate and other debt securities	1,720		—		1,720		—		—
Loans	2,184		—		2,184		—		—
Equity securities	916		916		—		—		—
Other	85		—		85		—		—
Total trading assets	5,963		916		5,047		—		—
AFS securities:
U.S. Treasury	13,471		—		13,471		—		—
GSE	435		—		435		—		—
Agency MBS – residential	49,455		—		49,455		—		—
Agency MBS – commercial	2,653		—		2,653		—		—
States and political subdivisions	361		—		361		—		—

Other	15		—		15		—		—
Total AFS securities	66,390		—		66,390		—		—
LHFS at fair value	1,105		—		1,105		—		—
Loans and leases	12		—		—		12		—
Loan servicing rights at fair value	3,612		—		—		3,612		—
Other assets:
Derivative assets	1,647		1,212		2,121		6		(1,692)
Equity securities	330		278		52		—		—


Total assets	$	79,059	$	2,406	$	74,715	$	3,630	$	(1,692)
Liabilities:
Interest-bearing deposits:
Brokered time deposits	$	396	$	—	$	396	$	—	$	—
Short-term borrowings:
Securities sold short	1,999		497		1,502		—		—
Other trading liabilities	200		—		200		—		—
Other liabilities:
Derivative liabilities	1,812		546		4,024		26		(2,784)
Total liabilities	$	4,407	$	1,043	$	6,122	$	26	$	(2,784)

34 Truist Financial Corporation


December 31, 2024 (Dollars in millions)	Total		Level 1		Level 2		Level 3		Netting Adjustments(1)
Assets:
Trading assets:
U.S. Treasury	$	143	$	—	$	143	$	—	$	—
GSE	41		—		41		—		—


States and political subdivisions	786		—		786		—		—

Corporate and other debt securities	1,679		—		1,679		—		—
Loans	1,671		—		1,671		—		—
Equity securities	413		413		—		—		—
Other	367		267		100		—		—
Total trading assets	5,100		680		4,420		—		—
AFS securities:
U.S. Treasury	14,411		—		14,411		—		—
GSE	403		—		403		—		—
Agency MBS – residential	49,959		—		49,959		—		—
Agency MBS – commercial	2,293		—		2,293		—		—
States and political subdivisions	382		—		382		—		—

Other	16		—		16		—		—
Total AFS securities	67,464		—		67,464		—		—
LHFS at fair value	1,233		—		1,233		—		—
Loans and leases	13		—		—		13		—
Loan servicing rights at fair value	3,708		—		—		3,708		—
Other assets:
Derivative assets	966		1,147		1,675		2		(1,858)
Equity securities	305		298		7		—		—


Total assets	$	78,789	$	2,125	$	74,799	$	3,723	$	(1,858)
Liabilities:
Interest-bearing deposits:
Brokered time deposits	$	192	$	—	$	192	$	—	$	—
Short-term borrowings:
Securities sold short	1,694		358		1,336		—		—
Other trading liabilities	202		—		202		—		—
Other liabilities:
Derivative liabilities	2,286		569		4,088		43		(2,414)
Total liabilities	$	4,374	$	927	$	5,818	$	43	$	(2,414)

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

At June 30, 2025 and December 31, 2024, investments totaling $584 million and $535 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.

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, 2024.

Truist Financial Corporation 35

Activity for Level 3 assets and liabilities is summarized below:




Three Months Ended June 30, 2025 and 2024 (Dollars in millions)	Loans and Leases		Loan Servicing Rights		Net Derivatives
Balance at April 1, 2024	$	14	$	3,417	$	(21)
Total realized and unrealized gains (losses):
Included in earnings	—		30		(4)


Issuances	—		52		12
Sales	—		(1)		—
Settlements	—		(88)		(7)


Balance at June 30, 2024	$	14	$	3,410	$	(20)
Balance at April 1, 2025	$	12	$	3,628	$	(33)
Total realized and unrealized gains (losses):
Included in earnings	—		27		2


Issuances	—		54		13

Settlements	—		(97)		(2)


Balance at June 30, 2025	$	12	$	3,612	$	(20)
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at June 30, 2025	$	—	$	27	$	4

Six Months Ended June 30, 2025 and 2024 (Dollars in millions)	Loans and Leases		Loan Servicing Rights		Net Derivatives













Balance at January 1, 2024	$	15	$	3,378	$	(19)
Total realized and unrealized gains (losses):
Included in earnings	—		112		(7)


Issuances	—		84		11
Sales	—		(2)		—
Settlements	(1)		(162)		(5)




Balance at June 30, 2024	$	14	$	3,410	$	(20)
Balance at January 1, 2025	$	13	$	3,708	$	(41)
Total realized and unrealized gains (losses):
Included in earnings	—		(29)		8


Issuances	—		111		17

Settlements	(1)		(178)		(4)



Balance at June 30, 2025	$	12	$	3,612	$	(20)
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at June 30, 2025	$	—	$	(29)	$	1
Primary income statement location of realized gains (losses) included in earnings	Other income		Mortgage banking income		Mortgage banking income and other 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:


	June 30, 2025						December 31, 2024
(Dollars in millions)	Fair Value		UPB		Difference		Fair Value		UPB		Difference
Trading loans	$	2,184	$	2,240	$	(56)	$	1,671	$	1,697	$	(26)
Loans and leases	12		13		(1)		13		14		(1)
LHFS at fair value	1,105		1,084		21		1,233		1,232		1
Brokered time deposits	396		399		(3)		192		195		(3)

36 Truist Financial Corporation

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 with valuation adjustments recorded during the period. The carrying values represent end of period values, which approximate the fair value.


(Dollars in millions)	Fair Value Hierarchy	Jun 30, 2025		Dec 31, 2024
Carrying value:
LHFS	Level 2	$	60	$	—
LHFS	Level 3	3		4
Loans and leases(1)	Level 3	293		525
Other	Level 3	103		147

(1)Total loans and leases measured at fair value on a nonrecurring basis still held as of period end were $485 million and $682 million at June 30, 2025 and December 31, 2024, respectively.

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.


	Six Months Ended June 30,
(Dollars in millions)	2025		2024
Valuation adjustments:
LHFS	$	(68)	$	(16)
Loans and leases	(420)		(557)
Other	(148)		(166)

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.

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, 2024 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.

Truist Financial Corporation 37

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:


		June 30, 2025				December 31, 2024
(Dollars in millions)	Fair Value Hierarchy	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets:
HTM securities	Level 2	$	48,973	$	39,611	$	50,640	$	40,286
Loans and leases HFI, net of ALLL	Level 3	313,885		309,836		301,513		294,190
Financial liabilities:
Time deposits	Level 2	47,271		47,147		36,532		36,377
Long-term debt	Level 2	44,427		44,610		34,956		34,917

The carrying value of the RUFC, which approximates the fair value, was $354 million and $304 million at June 30, 2025 and December 31, 2024, respectively. Cash and due from banks, interest-bearing deposits with banks, securities borrowed or purchased under agreements to resell, and short-term borrowings are reflected in the Consolidated balance sheets at cost, which approximates the fair value due to the short-term nature of these instruments and their limited inherent credit risk.

38 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:


	June 30, 2025								December 31, 2024
	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	$	66,335		$	—		$	—	$	66,585	$	—	$	—
Fair value hedges:
Interest rate contracts:
Swaps hedging long-term debt	23,258			—			—		17,368		—		—


Swaps hedging AFS securities	28,587			—			—		30,126		—		—

Total	51,845			—			—		47,494		—		—
Not designated as hedges:
Client-related and other risk management:
Interest rate contracts:
Swaps	165,734			537			(1,104)		146,194		488		(1,706)
Written options	9,662			17			(31)		9,623		16		(49)
Purchased options	9,660			25			(1)		11,321		29		(1)
Futures and forwards	3,685			3			(7)		4,782		1		(2)

Foreign exchange contracts:
Swaps	10,126			468			(415)		7,397		128		(114)
Futures and forwards	21,766			339			(368)		21,966		311		(270)
Other	2,342			43			(38)		760		5		(4)
Equity contracts:
Written options	30,712			13			(2,025)		28,228		12		(2,102)
Purchased options	15,761			1,392			(94)		11,956		1,366		(23)
Other	1,220			38			(28)		1,730		6		(41)
Commodity contracts	10,357			402			(379)		10,988		318		(297)
Credit contracts:
Credit default swaps	1,529			—			(1)		685		—		—
Total return swaps	2,013			15			(5)		1,485		25		(13)
Risk participation agreements	7,666			—			(3)		7,388		—		(2)


Total	292,233			3,292			(4,499)		264,503		2,705		(4,624)
MSRs and mortgage banking:
Interest rate contracts:
Swaps	16,312			—			—		20,696		—		—
Written options	748			10			—		1,932		32		(6)
Purchased options	8,084			16			(80)		8,910		60		(46)
Interest rate lock commitments	922			6			(2)		939		2		(13)
When issued securities, forward rate agreements, forward commitments, and futures	4,526			15			(15)		5,261		25		(11)


Total	30,592			47			(97)		37,738		119		(76)







Total derivatives not designated as hedges	322,825			3,339			(4,596)		302,241		2,824		(4,700)
Total derivatives	$	441,005		3,339			(4,596)		$	416,320	2,824		(4,700)
Gross amounts in the Consolidated Balance Sheets:
Amounts subject to master netting arrangements and exchange traded derivatives				(1,543)			1,543				(1,408)		1,408
Cash collateral (received) posted for amounts subject to master netting arrangements				(149)			1,241				(450)		1,006

Net amount				$	1,647		$	(1,812)			$	966	$	(2,286)

Truist Financial Corporation 39

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. GAAP does not permit netting of non-cash collateral balances in the Consolidated Balance Sheets. Refer to "Note 3. Securities Financing Activities" for information about the Company's securities financing transactions subject to master netting (or similar) arrangements.


June 30, 2025 (Dollars in millions)	Gross Amount		Amount Offset		Net Amount in Consolidated Balance Sheets		Held/Pledged Financial Instruments(1)		Net Amount
Derivative assets:
Derivatives subject to master netting arrangement or similar arrangement	$	1,942	$	(1,147)	$	795	$	—	$	795
Derivatives not subject to master netting arrangement or similar arrangement	185		—		185		—		185
Exchange traded derivatives	1,212		(545)		667		—		667
Total derivative assets	$	3,339	$	(1,692)	$	1,647	$	—	$	1,647
Derivative liabilities:
Derivatives subject to master netting arrangement or similar arrangement	$	(3,349)	$	2,239	$	(1,110)	$	99	$	(1,011)
Derivatives not subject to master netting arrangement or similar arrangement	(701)		—		(701)		—		(701)
Exchange traded derivatives	(546)		545		(1)		—		(1)
Total derivative liabilities	$	(4,596)	$	2,784	$	(1,812)	$	99	$	(1,713)

December 31, 2024 (Dollars in millions)	Gross Amount		Amount Offset		Net Amount in Consolidated Balance Sheets		Held/Pledged Financial Instruments(1)		Net Amount
Derivative assets:
Derivatives subject to master netting arrangement or similar arrangement	$	1,599	$	(1,293)	$	306	$	—	$	306
Derivatives not subject to master netting arrangement or similar arrangement	78		—		78		—		78
Exchange traded derivatives	1,147		(565)		582		—		582
Total derivative assets	$	2,824	$	(1,858)	$	966	$	—	$	966
Derivative liabilities:
Derivatives subject to master netting arrangement or similar arrangement	$	(3,379)	$	1,849	$	(1,530)	$	94	$	(1,436)
Derivatives not subject to master netting arrangement or similar arrangement	(752)		—		(752)		—		(752)
Exchange traded derivatives	(569)		565		(4)		—		(4)
Total derivative liabilities	$	(4,700)	$	2,414	$	(2,286)	$	94	$	(2,192)

(1)The fair value of held/pledged financial instruments is limited to the carrying amount of the associated derivative asset or liability.

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


	June 30, 2025								December 31, 2024
	Carrying Amount of the Hedged Assets and Liabilities(1)			Hedge Basis Adjustment					Carrying Amount of the Hedged Assets and Liabilities(1)		Hedge Basis Adjustment
(Dollars in millions)			Items Currently Designated			Discontinued Hedges			Items Currently Designated		Discontinued Hedges
AFS securities(2)	$	41,809		$	91		$	14	$	43,621	$	(503)	$	15
Loans and leases	209			—			4		297		—		5

Long-term debt	28,931			122			(452)		29,469		(121)		(533)

(1)Carrying value shown represents amortized cost.

(2)As of June 30, 2025, closed portfolios of securities hedged under the portfolio layer method have an amortized cost of $29.7 billion, of which $17.4 billion was designated as hedged. As of December 31, 2024, closed portfolios of securities hedged under the portfolio layer method have an amortized cost of $30.5 billion, of which $18.0 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 and hedges not designated under the portfolio-layer method.

40 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 June 30,				Six Months Ended June 30,
(Dollars in millions)	2025		2024		2025		2024
Pre-tax gain (loss) recognized in OCI:
Commercial loans	$	267	$	(129)	$	736	$	(432)




Pre-tax gain (loss) reclassified from AOCI into interest expense or interest income:




Commercial loans	(92)		(79)		(185)		(134)

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


	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in millions)	2025		2024		2025		2024
Investment securities:
Amounts related to interest settlements	$	70	$	115	$	141	$	278
Recognized on derivatives	(199)		185		(591)		627
Recognized on hedged items	210		(172)		611		(608)
Net income (expense) recognized(1)	81		128		161		297
Loans and leases:


Recognized on hedged items	—		—		(1)		(1)






Long-term debt:
Amounts related to interest settlements	(18)		(51)		(40)		(90)
Recognized on derivatives	92		(63)		244		(295)
Recognized on hedged items	(128)		41		(323)		252
Net income (expense) recognized	(54)		(73)		(119)		(133)
Net income (expense) recognized, total	$	27	$	55	$	41	$	163

(1)Includes $9 million and $18 million of income recognized for the three and six months ended June 30, 2025, respectively, and $10 million and $20 million for the three and six months ended June 30, 2024, 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 41

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


(Dollars in millions)	Jun 30, 2025		Dec 31, 2024
Cash flow hedges:
Net unrecognized after-tax gain (loss) on active hedges recorded in AOCI	$	(13)	$	(722)
Net unrecognized after-tax gain (loss) on terminated hedges recorded in AOCI (to be recognized in earnings through 2029)	(144)		(139)

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	4 years		5 years
Fair value hedges:
Unrecognized pre-tax net gain (loss) on terminated hedges(1)	$	(115)	$	(180)

(1)Includes deferred gains that are recorded in AOCI as a result of the reclassification to HTM of previously hedged securities of $355 million at June 30, 2025 and $373 million at December 31, 2024.

Of the after-tax net loss on active and terminated cash flow hedges in OCI as of June 30, 2025, losses of $173 million after-tax are expected to be reclassified into earnings in the next 12 months.

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 June 30,				Six Months Ended June 30,
(Dollars in millions)	Income Statement Location	2025		2024		2025		2024
Client-related and other risk management:
Interest rate contracts	Investment banking and trading income and other income	$	10	$	27	$	21	$	66
Foreign exchange contracts	Investment banking and trading income and other income	(164)		36		(213)		101
Equity contracts	Investment banking and trading income, other income, and personnel expense	(38)		7		15		(10)
Credit contracts	Investment banking and trading income and other income	(26)		14		(12)		(10)
Commodity contracts	Investment banking and trading income	3		4		6		6
MSRs and mortgage banking:
Interest rate contracts	Mortgage banking income	(18)		(24)		19		(122)




Total		$	(233)	$	64	$	(164)	$	31

42 Truist Financial Corporation

Credit Derivative Instruments

As part of the Company’s investment banking and capital markets business, the Company enters into contracts that are, in form or substance, written guarantees; specifically, risk participation agreements, 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 clients through the normal credit review process that the Company would have performed had it entered into a derivative directly with the obligors. At June 30, 2025, the remaining terms on these risk participations ranged from less than one year to nine 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)	Jun 30, 2025		Dec 31, 2024
Risk participation agreements:


Maximum potential amount of exposure	$	429	$	381
Total return swaps:

Cash received for variation margin	15		25
Cash and other collateral received for initial margin	506		329

Truist Financial Corporation 43

NOTE 17. Computation of EPS

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


	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in millions, except per share data, shares in thousands)	2025		2024		2025		2024
Net income (loss) available to common shareholders from continuing operations	$	1,180	$	(3,983)	$	2,337	$	(2,956)
Net income available to common shareholders from discontinued operations	—		4,809		—		4,873
Net income available to common shareholders	$	1,180	$	826	$	2,337	$	1,917
Weighted average number of common shares	1,292,292		1,338,149		1,299,833		1,336,620
Effect of dilutive outstanding equity-based awards	12,713		—		14,946		—
Weighted average number of diluted common shares	1,305,005		1,338,149		1,314,779		1,336,620
Basic EPS from continuing operations	$	0.91	$	(2.98)	$	1.80	$	(2.21)
Basic EPS from discontinued operations	—		3.60		—		3.64
Basic EPS	$	0.91	$	0.62	$	1.80	$	1.43
Diluted EPS from continuing operations	$	0.90	$	(2.98)	$	1.78	$	(2.21)
Diluted EPS from discontinued operations	—		3.60		—		3.64
Diluted EPS	$	0.90	$	0.62	$	1.78	$	1.43
Anti-dilutive awards	174		11,975		5		12,082

44 Truist Financial Corporation

NOTE 18. Operating Segments

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. The Chairman and CEO is the Truist CODM. The CODM regularly reviews segment net income and its significant components in comparison to expected results as part of evaluating segment performance and optimizing resource allocation. In this regular review, segment net income typically excludes amortization of intangibles, restructuring charges, and goodwill impairment which are separately presented in the table below.

Consumer and Small Business Banking

CSBB serves retail, premier, and small business clients, providing checking, money market, savings, time and other deposits, payment services, and lending solutions through digital banking, an extensive network of community banking branches, ATMs, virtual service centers, and other channels. Lending solutions include credit cards, personal and unsecured loans originated through the branch network and digital channels; national 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, outdoor power equipment, and home improvement; and real estate lending providing residential mortgages through retail, direct, and correspondent channels, and home equity loans delivered through the branch network.

Wholesale Banking

WB provides a comprehensive set of products, solutions, and advisory services to commercial, corporate, institutional, and wealth clients. Banking expertise and product capabilities are delivered through a combination of regional coverage across the Truist footprint and national industry coverage for real estate, investment banking, and capital markets clients. WB works with clients to meet their core banking needs, including traditional and specialized credit solutions and commercial payments to manage deposits and liquidity, payables, and receivables. Through investment banking capabilities, clients have full access to strategic advisory services, debt and equity capital markets, leveraged finance, and securitizations, with distribution channels and market making across both fixed income and equity markets. WB also invests in certain affordable housing, New Market Tax Credit, and renewable energy tax credit investments. For additional information on these investments, see “Note 14. Commitments and Contingencies”. The wealth business delivers asset management, trust, brokerage, and investment management, as well as specialized commercial products, while aligning closely with regional and industry banking coverage.

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 bank-owned 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 intersegment eliminations, including intersegment net referral fees and residual interest rate risk.

Truist promotes revenue growth by bringing the full breadth and depth of Truist’s products and services to meet clients’ financial needs. The objective is to deepen client relationships and deliver 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 Truist’s 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 other financial institutions. 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 GAAP creates certain differences, which are reflected as residuals in OT&C. Business segment reporting conventions include 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.

Truist Financial Corporation 45

In the first quarter of 2025, deposit net intersegment interest income and expense methodology was enhanced to reflect a change to funds transfer pricing. Prior period results were revised to conform to the current allocation methodology. As a result of this methodology change, CSBB net interest income decreased $128 million for three months ended June 30, 2024 and $261 million for the six months ended June 30, 2024, with off-setting increases in OT&C net interest income. For the same reason, WB net interest income decreased $45 million for three months ended June 30, 2024 and $94 million for the six months ended June 30, 2024, with off-setting increases in OT&C net interest income.

Noninterest income includes inter-segment referral fees, as well as federal and state tax credits that are grossed up for the WB segment 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.

46 Truist Financial Corporation

The following table presents results by segment:


Three Months Ended June 30, (Dollars in millions)	CSBB						WB					OT&C(1)					Total
2025			2024			2025			2024				2025			2024			2025			2024
Net interest income (expense)	$	1,488		$	1,291		$	1,880		$	2,182			$	219		$	54		$	3,587		$	3,527
Net intersegment interest income (expense)	871			1,216			(219)			(559)				(652)			(657)			—			—
Segment net interest income (expense)	2,359			2,507			1,661			1,623				(433)			(603)			3,587			3,527
Allocated provision for credit losses	384			308			104			142				—			1			488			451
Noninterest income	519			504			942			986				(61)			(6,702)			1,400			(5,212)
Personnel expense	409			417			559			586				685			658			1,653			1,661
Amortization of intangibles	39			45			35			41				(1)			3			73			89
Restructuring charges	1			1			7			8				20			24			28			33

Other direct noninterest expense(2)	281			265			200			186				751			860			1,232			1,311
Total direct noninterest expense	730			728			801			821				1,455			1,545			2,986			3,094
Expense Allocations	970			934			526			447				(1,496)			(1,381)			—			—
Total noninterest expense	1,700			1,662			1,327			1,268				(41)			164			2,986			3,094
Income (loss) before income taxes from continuing operations	794			1,041			1,172			1,199				(453)			(7,470)			1,513			(5,230)
Provision (benefit) for income taxes	193			250			236			239				(156)			(1,813)			273			(1,324)
Segment net income (loss) from continuing operations	$	601		$	791		$	936		$	960			$	(297)		$	(5,657)		$	1,240		$	(3,906)

Identifiable assets (period end) of continuing operations	$	152,221		$	144,217		$	214,793		$	207,484			$	176,819		$	168,152		$	543,833		$	519,853

Six Months Ended June 30, (Dollars in millions)	CSBB						WB					OT&C(1)					Total
2025			2024			2025			2024				2025			2024			2025			2024
Net interest income (expense)	$	2,915		$	2,558		$	3,772		$	4,413			$	407		$	(72)		$	7,094		$	6,899
Net intersegment interest income (expense)	1,729			2,427			(518)			(1,175)				(1,211)			(1,252)			—			—
Segment net interest income (expense)	4,644			4,985			3,254			3,238				(804)			(1,324)			7,094			6,899
Allocated provision for credit losses	712			621			235			329				(1)			1			946			951
Noninterest income	1,022			1,002			1,891			1,966				(121)			(6,734)			2,792			(3,766)
Personnel expense	817			822			1,107			1,166				1,316			1,303			3,240			3,291
Amortization of intangibles	78			91			71			83				(1)			3			148			177
Restructuring charges	1			2			8			15				57			67			66			84

Other direct noninterest expense(2)	556			509			392			362				1,490			1,624			2,438			2,495
Total direct noninterest expense	1,452			1,424			1,578			1,626				2,862			2,997			5,892			6,047
Expense Allocations	1,911			1,824			1,051			975				(2,962)			(2,799)			—			—
Total noninterest expense	3,363			3,248			2,629			2,601				(100)			198			5,892			6,047
Income (loss) before income taxes from continuing operations	1,591			2,118			2,281			2,274				(824)			(8,257)			3,048			(3,865)
Provision (benefit) for income taxes	387			510			459			448				(299)			(2,050)			547			(1,092)
Segment net income (loss) from continuing operations	$	1,204		$	1,608		$	1,822		$	1,826			$	(525)		$	(6,207)		$	2,501		$	(2,773)

Identifiable assets (period end) of continuing operations	$	152,221		$	144,217		$	214,793		$	207,484			$	176,819		$	168,152		$	543,833		$	519,853

(1)As described above, includes the Company’s investment securities portfolio, most long-term debt, derivative instruments used for balance sheet hedging, short-term liquidity and funding activities, balance sheet risk management, most bank-owned real estate assets, as well as functional activities such as finance, enterprise risk, legal, and enterprise technology and management. Additionally, houses intersegment eliminations, including for residual interest rate risk, intersegment net referral fees, and expense allocations. May also include financial data from business units below the quantitative and qualitative thresholds requiring disclosure.

(2)Other direct noninterest expense within the table above includes expenses for occupancy and equipment, professional fees and outside processing, regulatory costs, and other expenses.

Truist Financial Corporation 47

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