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, 2026		Dec 31, 2025
Assets
Cash and due from banks	$	4,707	$	4,967
Interest-bearing deposits with banks	34,581		31,410
Securities borrowed or purchased under agreements to resell	4,431		3,200
Trading assets at fair value	5,288		5,790
AFS securities at fair value	67,651		65,042
HTM securities (fair value of $38,145 and $39,130, respectively)	46,351		47,186
LHFS (including $2,198 and 1,622 at fair value, respectively)	2,477		1,883
Loans and leases (including $10 and $11 at fair value, respectively)	329,796		328,595
ALLL	(4,983)		(5,030)
Loans and leases, net of ALLL	324,813		323,565
Premises and equipment	3,177		3,172
Goodwill	17,125		17,125
CDI and other intangible assets	1,130		1,256
Loan servicing rights at fair value	4,293		3,972
Other assets (including $1,841 and $1,725 at fair value, respectively)	39,999		38,970

Total assets	$	556,023	$	547,538
Liabilities
Noninterest-bearing deposits	$	104,341	$	105,092
Interest-bearing deposits (including $688 and $639 at fair value, respectively)	305,038		295,306
Short-term borrowings (including $3,121 and $2,394 at fair value, respectively)	26,885		27,839
Long-term debt	42,976		41,963
Other liabilities (including $2,228 and $1,797 at fair value, respectively)	12,688		12,149

Total liabilities	491,928		482,349
Shareholders’ Equity
Preferred stock	5,411		4,916
Common stock, $5 par value	6,108		6,312
Additional paid-in capital	31,616		33,663
Retained earnings	27,676		26,067
AOCI, net of deferred income taxes	(6,716)		(5,769)

Total shareholders’ equity	64,095		65,189
Total liabilities and shareholders’ equity	$	556,023	$	547,538
Common shares outstanding	1,221,626		1,262,470
Common shares authorized	2,000,000		2,000,000
Preferred shares outstanding	196		176
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,
	2026			2025			2026			2025
Interest Income
Interest and fees on loans and leases		$	4,659		$	4,657		$	9,258		$	9,150
Interest on securities		871			961			1,720			1,936
Interest on other earning assets		437			536			844			1,056
Total interest income		5,967			6,154			11,822			12,142
Interest Expense
Interest on deposits		1,575			1,844			3,100			3,580
Interest on long-term debt		485			431			930			840
Interest on other borrowings		286			292			572			628
Total interest expense		2,346			2,567			4,602			5,048
Net Interest Income		3,621			3,587			7,220			7,094
Provision for credit losses		395			488			874			946
Net Interest Income After Provision for Credit Losses		3,226			3,099			6,346			6,148
Noninterest Income
Wealth management income		375			348			745			692
Card and treasury management fees		353			351			691			684
Investment banking and trading income		352			205			724			478
Other deposit revenue		120			108			240			225
Mortgage banking income		116			107			249			215
Lending related fees		120			99			238			194


Securities gains (losses)		—			(18)			—			(19)
Other income		208			200			310			323
Total noninterest income		1,644			1,400			3,197			2,792
Noninterest Expense
Personnel expense		1,792			1,678			3,519			3,282
Professional fees and outside processing		335			373			648			737
Software expense		239			231			469			461
Net occupancy expense		171			181			350			349
Equipment expense		79			89			164			171
Marketing and customer development		91			82			170			157
Amortization of intangibles		63			73			127			148

Regulatory costs		61			55			129			124



Other expense		224			224			462			463
Total noninterest expense		3,055			2,986			6,038			5,892
Earnings
Income before income taxes		1,815			1,513			3,505			3,048
Provision for income taxes		262			273			471			547


Net income		1,553			1,240			3,034			2,501



Preferred stock dividends and other		34			60			138			164
Net income available to common shareholders		$	1,519		$	1,180		$	2,896		$	2,337


Basic EPS		$	1.24		$	0.91		2.34			1.80


Diluted EPS		1.23			0.90			2.31			1.78
Basic weighted average shares outstanding		1,224,867			1,292,292			1,236,682			1,299,833
Diluted weighted average shares outstanding		1,239,040			1,305,005			1,252,766			1,314,779

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,
2026			2025			2026			2025
Net income	$	1,553		$	1,240		$	3,034		$	2,501
OCI, net of tax:
Net change in net pension and postretirement costs	1			2			(5)			7
Net change in cash flow hedges	(463)			275			(862)			704
Net change in AFS securities	31			16			(180)			494
Net change in HTM securities	50			59			97			109
Other, net	2			5			3			6
Total OCI, net of tax	(379)			357			(947)			1,320
Total comprehensive income	$	1,174		$	1,597		$	2,087		$	3,821
Income Tax Effect of Items Included in OCI:
Net change in net pension and postretirement costs	$	—		$	(1)		$	(2)		$	—
Net change in cash flow hedges	(146)			84			(270)			217
Net change in AFS securities	10			(10)			(55)			139
Net change in HTM securities	16			12			30			27
Other, net	1			—			1			—
Total income taxes related to OCI	$	(119)		$	85		$	(296)		$	383

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		Total Shareholders’ Equity
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, April 1, 2026	1,245,879	$	4,916	$	6,229	$	32,610	$	26,796	$	(6,337)	$	64,214
Net income	—	—		—		—		1,553		—		1,553
OCI	—	—		—		—		—		(379)		(379)

Issued in connection with equity awards, net	173	—		1		(3)		(3)		—		(5)

Repurchase of common stock, including excise tax	(24,426)	—		(122)		(1,090)		—		—		(1,212)
Issuance of preferred stock	—	495		—		—		—		—		495

Cash dividends declared on common stock	—	—		—		—		(636)		—		(636)
Cash dividends declared on preferred stock	—	—		—		—		(34)		—		(34)
Equity-based compensation expense	—	—		—		99		—		—		99


Balance, June 30, 2026	1,221,626	$	5,411	$	6,108	$	31,616	$	27,676	$	(6,716)	$	64,095
















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
Balance, January 1, 2026	1,262,470	$	4,916	$	6,312	$	33,663	$	26,067	$	(5,769)	$	65,189
Net income	—	—		—		—		3,034		—		3,034
OCI	—	—		—		—		—		(947)		(947)

Issued in connection with equity awards, net	5,733	—		29		(109)		(6)		—		(86)

Repurchase of common stock, including excise tax	(46,577)	—		(233)		(2,122)		—		—		(2,355)

Issuance of preferred stock	—	495		—		—		—		—		495
Cash dividends declared on common stock	—	—		—		—		(1,281)		—		(1,281)
Cash dividends declared on preferred stock	—	—		—		—		(138)		—		(138)
Equity-based compensation expense	—	—		—		184		—		—		184



Balance, June 30, 2026	1,221,626	$	5,411	$	6,108	$	31,616	$	27,676	$	(6,716)	$	64,095

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

Truist Financial Corporation 7

CONSOLIDATED STATEMENTS OF CASH FLOWS

TRUIST FINANCIAL CORPORATION AND SUBSIDIARIES



Unaudited (Dollars in millions)		Six Months Ended June 30,
	2026			2025
Cash Flows From Operating Activities:
Net income		$	3,034		$	2,501
Adjustments to reconcile net income to net cash from operating activities:
Provision for credit losses		874			946

Depreciation		257			284

Amortization of intangibles		127			148




Net change in operating assets and liabilities:
LHFS		(576)			128

Pension asset		(169)			(145)
Derivative assets and liabilities		378			(1,106)
Trading assets		502			(863)
Investments in affordable housing projects and other qualified tax credits(1)		(605)			39
Other assets and other liabilities(1)		(1,209)			(600)

Other, net(1)		(895)			328
Net cash flows from operating activities		1,718			1,660
Cash Flows From Investing Activities:
Proceeds from sales of AFS securities		59			1,109
Proceeds from maturities, calls and paydowns of AFS securities		8,354			8,079
Purchases of AFS securities		(10,776)			(6,879)
Proceeds from maturities, calls and paydowns of HTM securities		1,767			1,812
Purchases of HTM securities		(795)			—
Originations of loans and leases, net of principal collected		(2,545)			(12,860)
Purchases of loans and leases		(206)			(668)
Sales of loans and leases		550			358

Net cash received (paid) for securities borrowed or purchased under agreements to resell		(1,231)			(106)



Other, net		14			(181)
Net cash flows from investing activities		(4,809)			(9,336)
Cash Flows From Financing Activities:
Net change in deposits		8,981			15,598
Net change in short-term borrowings		(951)			(12,556)
Proceeds from issuance of long-term debt		50,473			28,642
Repayment of long-term debt		(49,131)			(19,486)
Repurchase of common stock		(2,334)			(1,250)
Net proceeds from preferred stock issued		495			—

Cash dividends paid on common stock		(1,281)			(1,349)
Cash dividends paid on preferred stock		(138)			(164)


Other, net		(112)			(76)
Net cash flows from financing activities		6,002			9,359
Net Change in Cash and Cash Equivalents		2,911			1,683
Cash and Cash Equivalents of Continuing and Discontinued Operations, January 1		36,377			39,768
Cash and Cash Equivalents of Continuing and Discontinued Operations, June 30		$	39,288		$	41,451
Supplemental Disclosure of Cash Flow Information:
Net cash paid (received) during the period for:
Interest expense		$	4,661		$	4,967
Income taxes		97			170

(1)Prior period balances have been conformed to current period presentation.

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, 2025 should be referred to in connection with these unaudited interim consolidated financial statements. There were no changes to the Company’s accounting policies from those disclosed in the Annual Report on Form 10-K for the year ended December 31, 2025 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 accordance with GAAP requires management to make estimates that are used in arriving at the carrying value of assets and liabilities, and amounts reported for revenues and expenses. Certain of these estimates are considered critical because they require the use of difficult, complex, or subjective judgments, which are sensitive to changes in key assumptions or inputs. Actual results could differ from those estimates. Estimates that are particularly susceptible to significant change include the ACL; fair value measurement; goodwill; income taxes; and pension and postretirement benefit obligations.

Truist Financial Corporation 9

Changes in Accounting Principles and Effects of New Accounting Standards

The following table provides a summary of significant accounting standards adopted during the current year and standards not yet adopted:


Standard / Effective Date	Description	Effects on the Financial Statements




Standards Not Yet Adopted
Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract / January 1, 2027	Refines the scope of derivatives by adding a scope exception from derivative accounting for contracts that (i) are not exchange traded and (ii) have underlyings based on operations or activities specific to one of the parties to the contract. However, contracts based on certain underlyings or features would not qualify for the scope exception. Clarifies that the revenue guidance applies initially to share-based noncash consideration (e.g., shares, share options or other equity instruments) received from a customer for the transfer of goods or services. Permits a prospective or modified retrospective basis transition approach. Early adoption is permitted.	Truist does not expect a material impact on its financial statements.
Hedge Accounting Improvements / January 1, 2027	The standard (i) permits designation of variable price elements of forecasted purchases or sales of nonfinancial assets as hedged items, provided they are clearly and closely related to the underlying asset, (ii) allows individual transactions with similar risk exposures to be grouped for hedge accounting, (iii) permits entities to continue hedge accounting when a borrower transitions to a new interest rate index and/or tenor for choose-your-rate debt instruments, as long as the hedging instrument remains highly effective in offsetting the cash flows attributable to the revised hedged risk, (iv) allows entities, for the written option test, to assume that certain terms of the hedging instrument match those of the forecasted transaction, and (v) requires that any basis adjustments to foreign-currency-denominated debt related to fair value hedges of interest rate risk be excluded from net investment hedge effectiveness assessments. Early adoption is permitted.	Truist does not expect a material impact on its financial statements.
Purchased Loans / January 1, 2027	Requires loans (excluding credit cards) acquired without credit deterioration and classified as seasoned to be treated as purchased seasoned loans and accounted for using the gross-up method at purchase. Under the gross-up method, estimated credit losses at the purchase date are recorded by an offsetting gross-up adjustment to the purchase price of the purchased loans. All non-PCD loans (excluding credit cards) that are acquired in a business combination are deemed seasoned. Other non-PCD loans (excluding credit cards) are seasoned if they were purchased at least 90 days after origination and the acquirer was not involved in the origination of the loans. Requires prospective application. Early adoption is permitted.	Truist is evaluating the requirements of this standard. Any impact on Truist's financial statements will depend on the nature and volume of future in-scope transactions.
Expense Disaggregation Disclosures / December 31, 2027	Introduces new requirements to disclose more detailed information about certain types of expenses not already presented in separate expense captions in the Consolidated Statements of Income, 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.
Internal-Use Software / January 1, 2028	Eliminates references to prescriptive and sequential software development stages and requires eligible cost capitalization when management has authorized and committed to funding the software project, and it is probable that the project will be completed and the software will be used to perform the function intended. In evaluating probable-to-complete, requires consideration of any significant development uncertainty. Permits a prospective, a modified transition for in-process projects, or a retrospective transition approach.	Truist is evaluating the impact of this standard on its financial statements.

10 Truist Financial Corporation

NOTE 2. Securities Financing Activities

The Company’s securities financing activities include borrowing securities, purchasing securities under agreements to resell, and selling securities under agreements to repurchase.

Securities Borrowed or Purchased Under Agreements to Resell

The Company primarily borrows corporate debt and equity securities in its market-making, settlement, and other trading activities, including facilitating client transactions and covering short positions. Securities borrowing transactions are recorded as receivables reflecting the Company’s right to reclaim cash collateral pledged to securities lenders in exchange for borrowed securities. The Company monitors the fair value of securities borrowed daily, pledging additional collateral or obtaining refunds of excess collateral as warranted under the applicable agreements.

The Company purchases securities under agreements to resell primarily as a source of short-term financing to counterparties or to cover short positions. Securities purchased under agreements to resell are recorded as collateralized financing receivables carried at the amount of cash advanced. The difference between the contractual resale amount and the amount advanced is accrued ratably as interest income over the life of the arrangement. At the inception of these arrangements, the Company and its counterparties agree on the amount of collateral required to secure the amount advanced. The Company monitors collateral values daily and calls for additional collateral to be provided as warranted under the applicable agreements. Securities purchased under agreements to resell are primarily collateralized by U.S. government debt securities.

The securities the Company borrows or receives as collateral are not recognized on its Consolidated Balance Sheets.

Securities Sold Under Agreements to Repurchase

The Company sells securities under agreements to repurchase as a source of short-term collateralized funding. Securities sold under agreements to repurchase are recorded as collateralized borrowings carried at the amount of cash received and are included within Short-term borrowings. The difference between the contractual repurchase amount and the amount of cash received is accrued ratably as interest expense over the life of the arrangement. Securities sold under agreements to repurchase are primarily collateralized by corporate, residential agency MBS, municipal, or U.S. government debt securities. Securities pledged by the Company are not presented net against the associated liability recorded in Short-term borrowings. The Company may be obligated to pledge additional collateral in the event of a significant decline in the fair value of 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 12. Commitments and Contingencies” for additional information related to pledged securities.

Truist Financial Corporation 11

The agreements that govern the Company's securities financing transactions provide for a right of offset 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 14. Derivative Financial Instruments“ for information about the Company's derivative instruments subject to master netting (or similar) arrangements.


			June 30, 2026
(Dollars in millions)			Amount in Consolidated Balance Sheets				Amount Not Offset in Consolidated Balance Sheets				Received/Pledged Financial Instruments(1)				Net Amount
Assets:
Securities purchased under agreements to resell			$	1,743			$	(71)			$	(1,661)			$	11
Securities borrowed	2,688				—				(2,640)				48
Total securities borrowed or purchased under agreements to resell	$	4,431			$	(71)			$	(4,301)			$	59
Liabilities:
Securities sold under agreements to repurchase			$	(5,871)			$	71			$	5,800			$	—

			December 31, 2025
			Amount in Consolidated Balance Sheets				Amount Not Offset in Consolidated Balance Sheets				Received/Pledged Financial Instruments(1)				Net Amount
Assets:
Securities purchased under agreements to resell			$	1,313			$	(78)			$	(1,223)			$	12
Securities borrowed			1,887				—				(1,835)				52
Total securities borrowed or purchased under agreements to resell			$	3,200			$	(78)			$	(3,058)			$	64
Liabilities:
Securities sold under agreements to repurchase			$	(3,103)			$	78			$	3,025			$	—

(1)The fair value of received/pledged financial instruments is limited to the carrying amount of the associated asset or liability. The fair value of securities received that was permitted to be resold or repledged was $4.4 billion as of June 30, 2026 and $3.1 billion as of December 31, 2025. Of the fair value of securities permitted to be resold or repledged, the fair value of securities repledged or resold was $3.0 billion as of June 30, 2026 and $2.2 billion as of December 31, 2025.

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, 2026				December 31, 2025
(Dollars in millions)	Overnight and Continuous		Up to 30 days		Total		Overnight and Continuous		Up to 30 days		Total
U.S. Treasury	$	71	$	—	$	71	$	78	$	—	$	78
State and Municipal	42		—		42		100		—		100

Agency MBS – residential	—		1,150		1,150		—		298		298
Corporate and other debt securities	308		4,300		4,608		300		2,327		2,627
Total securities sold under agreements to repurchase	$	421	$	5,450	$	5,871	$	478	$	2,625	$	3,103

12 Truist Financial Corporation

NOTE 3. Investment Securities

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


June 30, 2026	Amortized Cost			Gross Unrealized					Net unrealized gains (losses)		Fair Value
(Dollars in millions)			Gains			Losses
AFS securities:
U.S. Treasury	$	13,316		$	47		$	(50)	$	(3)	$	13,313
GSE	459			2			(25)		(23)		436
Agency MBS – residential	53,207			162			(4,217)		(4,055)		49,152
Agency MBS – commercial	3,718			3			(595)		(592)		3,126
States and political subdivisions	342			11			(12)		(1)		341
Collateralized loan obligations	1,279			—			—		—		1,279
Other	4			—			—		—		4
Total AFS securities, excluding portfolio level basis adjustments	$	72,325		$	225		$	(4,899)	$	(4,674)	$	67,651
Portfolio level basis adjustments(1)	(102)								102		—
Total AFS securities	$	72,223		$	225		$	(4,899)	$	(4,572)	$	67,651
HTM securities:
Agency MBS – residential	$	46,351		$	2		$	(8,208)	$	(8,206)	$	38,145


December 31, 2025	Amortized Cost			Gross Unrealized					Net unrealized gains (losses)		Fair Value
(Dollars in millions)			Gains			Losses
AFS securities:
U.S. Treasury	$	12,727		$	89		$	(24)	$	65	$	12,792
GSE	481			4			(25)		(21)		460
Agency MBS – residential	51,971			272			(4,017)		(3,745)		48,226
Agency MBS – commercial	3,762			12			(574)		(562)		3,200
States and political subdivisions	347			13			(10)		3		350

Other	14			—			—		—		14
Total AFS securities, excluding portfolio level basis adjustments	$	69,302		$	390		$	(4,650)	$	(4,260)	$	65,042
Portfolio level basis adjustments(1)	77								(77)		—
Total AFS securities	$	69,379		$	390		$	(4,650)	$	(4,337)	$	65,042
HTM securities:
Agency MBS – residential	$	47,186		$	—		$	(8,056)	$	(8,056)	$	39,130

(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 14. Derivative Financial Instruments.”

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


	Amortized Cost										Fair Value
June 30, 2026 (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	$	4,610	$	7,927	$	36	$	743	$	13,316	$	4,634	$	7,931	$	35	$	713	$	13,313
GSE	—		—		4		455		459		—		—		4		432		436
Agency MBS – residential	—		—		50		53,157		53,207		—		—		49		49,103		49,152
Agency MBS – commercial	—		534		419		2,765		3,718		—		531		414		2,181		3,126
States and political subdivisions	2		81		179		80		342		2		83		178		78		341
Collateralized loan obligations	—		—		—		1,279		1,279		—		—		—		1,279		1,279
Other	4		—		—		—		4		4		—		—		—		4
Total AFS securities	$	4,616	$	8,542	$	688	$	58,479	$	72,325	$	4,640	$	8,545	$	680	$	53,786	$	67,651
HTM securities:
Agency MBS – residential	$	—	$	—	$	—	$	46,351	$	46,351	$	—	$	—	$	—	$	38,145	$	38,145

Truist Financial Corporation 13

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


	Less than 12 months				12 months or more				Total
June 30, 2026 (Dollars in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
AFS securities:
U.S. Treasury	$	3,932	$	(44)	$	130	$	(6)	$	4,062	$	(50)
GSE	105		(1)		204		(24)		309		(25)
Agency MBS – residential	13,928		(117)		23,431		(4,100)		37,359		(4,217)
Agency MBS – commercial	561		(8)		1,997		(587)		2,558		(595)
States and political subdivisions	202		(12)		—		—		202		(12)

Other	—		—		4		—		4		—
Total	$	18,728	$	(182)	$	25,766	$	(4,717)	$	44,494	$	(4,899)
HTM securities:
Agency MBS – residential	$	201	$	—	$	37,355	$	(8,208)	$	37,556	$	(8,208)


	Less than 12 months				12 months or more				Total
December 31, 2025 (Dollars in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
AFS securities:
U.S. Treasury	$	704	$	(16)	$	432	$	(8)	$	1,136	$	(24)
GSE	65		(1)		228		(24)		293		(25)
Agency MBS – residential	2,882		(8)		24,986		(4,009)		27,868		(4,017)
Agency MBS – commercial	227		(2)		2,093		(572)		2,320		(574)
States and political subdivisions	158		(10)		31		—		189		(10)

Other	7		—		7		—		14		—
Total	$	4,043	$	(37)	$	27,777	$	(4,613)	$	31,820	$	(4,650)
HTM securities:
Agency MBS – residential	$	—	$	—	$	39,130	$	(8,056)	$	39,130	$	(8,056)

At June 30, 2026 and December 31, 2025, 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.

14 Truist Financial Corporation

NOTE 4. 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						Nonperforming
June 30, 2026 (Dollars in millions)	Current		30-89 Days Past Due		90 Days Or More Past Due(1)		Without an ALLL		With an ALLL		Total
Commercial:
Commercial and industrial	$	168,025	$	142	$	2	$	98	$	559	$	168,826
CRE	25,338		95		3		—		43		25,479
Commercial construction	7,350		—		—		—		22		7,372

Consumer:
Residential mortgage	55,143		665		593		—		231		56,632
Home equity	9,519		52		8		—		98		9,677
Indirect auto	22,750		521		—		—		569		23,840
Other consumer	32,835		232		25		—		72		33,164

Credit card	4,672		67		67		—		—		4,806

Total	$	325,632	$	1,774	$	698	$	98	$	1,594	$	329,796
(1)Includes government guaranteed loans of $560 million in the residential mortgage portfolio.

	Accruing						Nonperforming
December 31, 2025 (Dollars in millions)	Current		30-89 Days Past Due		90 Days Or More Past Due(1)		Without an ALLL		With an ALLL		Total
Commercial:
Commercial and industrial	$	166,839	$	127	$	3	$	5	$	834	$	167,808
CRE	23,648		25		—		—		47		23,720
Commercial construction	7,706		36		—		—		41		7,783

Consumer:
Residential mortgage	55,338		686		570		6		207		56,807
Home equity	9,544		69		7		1		98		9,719
Indirect auto	24,713		679		—		—		267		25,659
Other consumer	31,801		281		28		—		71		32,181

Credit card	4,765		77		76		—		—		4,918

Total	$	324,354	$	1,980	$	684	$	12	$	1,565	$	328,595
(1)Includes government guaranteed loans of $532 million in the residential mortgage portfolio.

Truist Financial Corporation 15

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


As of / for the six months ended June 30, 2026 (Dollars in millions)	Amortized Cost Basis by Origination Year																	Revolving Credit		Loans Converted to Term		Other(1)
2026			2025			2024			2023			2022			Prior					Total
Commercial:
Commercial and industrial:
Pass	$	21,710		$	30,724		$	9,990		$	6,365		$	10,443		$	19,155	$	66,150	$	—	$	(281)	$	164,256
Special mention	248			148			94			106			158			212		564		—		—		1,530
Substandard	60			463			251			285			123			304		897		—		—		2,383
Nonperforming	2			27			89			56			152			92		239		—		—		657
Total	22,020			31,362			10,424			6,812			10,876			19,763		67,850		—		(281)		168,826
Gross charge-offs	11			22			41			6			6			21		172		—		—		279
CRE:
Pass	4,964			7,443			1,087			1,165			2,939			4,637		1,210		—		(99)		23,346
Special mention	35			94			3			15			164			376		—		—		—		687
Substandard	111			326			32			385			237			256		56		—		—		1,403
Nonperforming	—			—			—			1			30			12		—		—		—		43
Total	5,110			7,863			1,122			1,566			3,370			5,281		1,266		—		(99)		25,479
Gross charge-offs	—			3			—			—			4			1		—		—		—		8
Commercial construction:
Pass	688			1,868			615			628			269			42		1,930		—		—		6,040
Special mention	35			6			—			21			221			—		153		—		—		436
Substandard	139			158			—			88			486			—		3		—		—		874
Nonperforming	—			—			—			—			—			—		22		—		—		22
Total	862			2,032			615			737			976			42		2,108		—		—		7,372
Gross charge-offs	—			—			—			—			—			—		18		—		—		18







Consumer:
Residential mortgage:

Current	2,901			5,369			3,421			2,169			11,232			30,051		—		—		—		55,143
30 - 89 days past due	6			16			22			32			72			517		—		—		—		665
90 days or more past due	—			14			40			95			69			375		—		—		—		593
Nonperforming	—			5			6			11			42			167		—		—		—		231
Total	2,907			5,404			3,489			2,307			11,415			31,110		—		—		—		56,632
Gross charge-offs	—			—			—			—			—			2		—		—		—		2
Home equity:

Current	—			—			—			—			—			—		6,739		2,780		—		9,519
30 - 89 days past due	—			—			—			—			—			—		38		14		—		52
90 days or more past due	—			—			—			—			—			—		6		2		—		8
Nonperforming	—			—			—			—			—			—		43		55		—		98
Total	—			—			—			—			—			—		6,826		2,851		—		9,677
Gross charge-offs	—			—			—			—			—			—		6		—		—		6
Indirect auto:

Current	3,845			9,590			4,540			1,424			2,134			1,217		—		—		—		22,750
30 - 89 days past due	25			151			111			67			83			84		—		—		—		521

Nonperforming	3			51			66			102			153			194		—		—		—		569
Total	3,873			9,792			4,717			1,593			2,370			1,495		—		—		—		23,840
Gross charge-offs	2			59			56			51			64			61		—		—		—		293
Other consumer:

Current	6,951			9,545			4,701			3,122			2,770			2,648		3,062		32		4		32,835
30 - 89 days past due	26			56			43			44			31			24		5		3		—		232
90 days or more past due	2			6			5			6			3			1		2		—		—		25
Nonperforming	2			20			12			12			11			15		—		—		—		72
Total	6,981			9,627			4,761			3,184			2,815			2,688		3,069		35		4		33,164
Gross charge-offs	22			118			71			62			39			29		11		—		—		352
Credit card:
Current	—			—			—			—			—			—		4,637		35		—		4,672
30 - 89 days past due	—			—			—			—			—			—		63		4		—		67
90 days or more past due	—			—			—			—			—			—		64		3		—		67

Total	—			—			—			—			—			—		4,764		42		—		4,806
Gross charge-offs	—			—			—			—			—			—		134		7		—		141
Total	$	41,753		$	66,080		$	25,128		$	16,199		$	31,822		$	60,379	$	85,883	$	2,928	$	(376)	$	329,796
Gross charge-offs	$	35		$	202		$	168		$	119		$	113		$	114	$	341	$	7	$	—	$	1,099

16 Truist Financial Corporation


As of / for the year ended December 31, 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	$	42,084		$	12,725		$	8,296		$	13,476		$	7,558		$	14,854	$	63,555	$	—	$	(233)	$	162,315
Special mention	401			153			136			180			309			113		621		—		—		1,913
Substandard	351			391			476			383			254			262		624		—		—		2,741
Nonperforming	77			112			64			144			12			53		377		—		—		839
Total	42,913			13,381			8,972			14,183			8,133			15,282		65,177		—		(233)		167,808
Gross charge-offs	45			96			70			28			1			9		212		—		—		461
CRE:
Pass	8,621			1,300			1,548			3,233			1,797			3,510		1,103		—		(84)		21,028
Special mention	26			11			61			181			211			121		—		—		—		611
Substandard	376			153			311			460			150			449		135		—		—		2,034
Nonperforming	4			1			1			13			6			22		—		—		—		47
Total	9,027			1,465			1,921			3,887			2,164			4,102		1,238		—		(84)		23,720
Gross charge-offs	6			42			14			8			—			77		—		—		—		147
Commercial construction:
Pass	1,398			581			1,070			531			158			20		1,844		—		—		5,602
Special mention	112			—			40			252			32			2		36		—		—		474
Substandard	175			32			348			1,020			91			—		—		—		—		1,666
Nonperforming	—			—			—			—			—			—		41		—		—		41
Total	1,685			613			1,458			1,803			281			22		1,921		—		—		7,783







Consumer:
Residential mortgage:

Current	5,724			3,947			2,420			11,747			14,453			17,047		—		—		—		55,338
30 - 89 days past due	20			14			35			81			68			468		—		—		—		686
90 days or more past due	6			34			90			61			34			345		—		—		—		570
Nonperforming	—			5			6			37			35			130		—		—		—		213
Total	5,750			4,000			2,551			11,926			14,590			17,990		—		—		—		56,807
Gross charge-offs	—			1			1			2			2			—		—		—		—		6
Home equity:

Current	—			—			—			—			—			—		6,575		2,969		—		9,544
30 - 89 days past due	—			—			—			—			—			—		52		17		—		69
90 days or more past due	—			—			—			—			—			—		5		2		—		7
Nonperforming	—			—			—			—			—			—		33		66		—		99
Total	—			—			—			—			—			—		6,665		3,054		—		9,719
Gross charge-offs	—			—			—			—			—			—		9		1		—		10
Indirect auto:

Current	11,752			5,780			1,933			3,075			1,430			750		—		—		(7)		24,713
30 - 89 days past due	123			139			106			142			80			89		—		—		—		679

Nonperforming	29			53			46			65			38			36		—		—		—		267
Total	11,904			5,972			2,085			3,282			1,548			875		—		—		(7)		25,659
Gross charge-offs	30			101			122			163			72			103		—		—		—		591
Other consumer:

Current	12,416			5,975			3,947			3,415			1,446			1,791		2,780		27		4		31,801
30 - 89 days past due	66			60			66			44			17			19		7		2		—		281
90 days or more past due	4			7			11			4			—			—		2		—		—		28
Nonperforming	13			12			14			12			9			11		—		—		—		71
Total	12,499			6,054			4,038			3,475			1,472			1,821		2,789		29		4		32,181
Gross charge-offs	98			138			159			110			47			51		30		—		—		633







Credit card:
Current	—			—			—			—			—			—		4,733		32		—		4,765
30 - 89 days past due	—			—			—			—			—			—		73		4		—		77
90 days or more past due	—			—			—			—			—			—		72		4		—		76

Total	—			—			—			—			—			—		4,878		40		—		4,918
Gross charge-offs	—			—			—			—			—			—		246		14		—		260
Total	$	83,778		$	31,485		$	21,025		$	38,556		$	28,188		$	40,092	$	82,668	$	3,123	$	(320)	$	328,595
Gross charge-offs	$	179		$	378		$	366		$	311		$	122		$	240	$	497	$	15	$	—	$	2,108

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

Truist Financial Corporation 17

ACL

The following tables present activity in the ACL:








(Dollars in millions)	Balance at Apr 1, 2025		Charge-Offs		Recoveries		Provision (Benefit)		Other		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 Apr 1, 2026		Charge-Offs		Recoveries		Provision (Benefit)		Other		Balance at Jun 30, 2026
Commercial:
Commercial and industrial	$	1,384	$	(137)	$	22	$	171	$	—	$	1,440
CRE	456		(1)		1		(34)		—		422
Commercial construction	199		(1)		1		(48)		—		151

Consumer:
Residential mortgage	198		(1)		1		(25)		—		173
Home equity	82		(3)		3		(6)		—		76
Indirect auto	1,036		(135)		29		104		—		1,034
Other consumer	1,258		(168)		35		158		—		1,283

Credit card	413		(70)		10		51		—		404

ALLL	5,026		(516)		102		371		—		4,983
RUFC	309		—		—		24		—		333
ACL	$	5,335	$	(516)	$	102	$	395	$	—	$	5,316



















(Dollars in millions)	Balance at Jan 1, 2025		Charge-Offs		Recoveries		Provision (Benefit)		Other		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

18 Truist Financial Corporation


(Dollars in millions)	Balance at Jan 1, 2026		Charge-Offs		Recoveries		Provision (Benefit)		Other		Balance at Jun 30, 2026
Commercial:
Commercial and industrial	$	1,326	$	(279)	$	38	$	355	$	—	$	1,440
CRE	476		(8)		4		(50)		—		422
Commercial construction	246		(18)		2		(79)		—		151

Consumer:
Residential mortgage	198		(2)		3		(26)		—		173
Home equity	84		(6)		6		(8)		—		76
Indirect auto	1,036		(293)		54		237		—		1,034
Other consumer	1,238		(352)		68		329		—		1,283

Credit card	426		(141)		19		100		—		404

ALLL	5,030		(1,099)		194		858		—		4,983
RUFC	317		—		—		16		—		333
ACL	$	5,347	$	(1,099)	$	194	$	874	$	—	$	5,316

The commercial ALLL decreased $26 million and the consumer and credit card ALLL decreased $17 million, in the three months ended June 30, 2026. The commercial ALLL decreased $35 million and the consumer and credit card ALLL decreased $12 million, in the six months ended June 30, 2026. The decrease in the commercial ALLL primarily reflects lower reserve requirements for CRE and commercial construction, partially offset by loan growth and a modest increase in reserve rates for commercial and industrial. The decrease in consumer and credit card reserves primarily reflects lower reserve requirements in residential mortgage, home equity, and credit card reserves, partially offset by a modest increase in reserve rates in the other consumer portfolio.

The ALLL estimation process estimates expected loan and lease losses using quantitative components, primarily driven by statistical models, and qualitative components that reflect management’s judgment regarding future loss risk. The quantitative models incorporate borrower and portfolio characteristics, historical loss experience, and current and forecasted economic conditions. The quantitative models have been designed to estimate losses using macroeconomic 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 considers a third-party baseline macroeconomic forecast, adjusted to reflect Truist’s interest rate outlook. Management also considers third-party optimistic and pessimistic macroeconomic scenarios to capture uncertainty in the economic environment. For the June 30, 2026 ACL, the scenario weightings remain unchanged from December 31, 2025, at 40% baseline, 30% optimistic, and 30% pessimistic. While the scenario weightings were unchanged, the underlying macroeconomic forecasts are dynamic and evolve with current and expected economic conditions. Emerging or evolving risks not fully captured by the quantitative models and scenario weightings are reflected through incremental qualitative adjustments. The economic forecasts informing the quantitative ACL estimate as of June 30, 2026 assumed a range of low single-digit to negative GDP growth across forecasts and a mid-to-high single digit unemployment rate over the reasonable and supportable forecast period.

Quantitative models have inherent limitations in estimating expected losses, particularly in periods of evolving macroeconomic conditions and changing forecasts. The June 30, 2026 ACL estimate includes qualitative adjustments reflecting management’s judgment regarding expected future credit losses for current and expected events or risks that are not fully captured by the loss forecasting models. Refer to “Note 1. Basis of Presentation” in Truist’s Annual Report on Form 10-K for the year ended December 31, 2025 for additional information.

NPAs

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


(Dollars in millions)	Jun 30, 2026		Dec 31, 2025
Nonperforming loans and leases HFI	$	1,692	$	1,577

Foreclosed real estate	5		3
Other foreclosed property	51		53
Total NPAs	$	1,748	$	1,633
Residential mortgage loans in the process of foreclosure	$	268	$	247

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.


	Renewals			Term Extensions			Interest Rate Adjustments				Capitalizations		Payment Delays			Combination - Capitalization and Term Extension			Other				Percentage of Total Class of Financing Receivable
Three Months Ended June 30, 2026 (Dollars in millions)	Amount		Financial Effect	Amount		Financial Effect	Amount		Financial Effect		Amount		Amount		Financial Effect	Amount		Financial Effect	Amount		Total Modified Loans
Commercial:
Commercial and industrial	$	255	6 months	$	—		$	—			$	—	$	—		$	—		$	—	$	255	0.15	%
CRE	219		15 months	—			—				—		—			—			—		219		0.86
Commercial construction	75		2 months	—			—				—		—			—			—		75		1.02
Consumer:							—
Residential mortgage	—			20		101 months	—				22		46		8 months	100		99 months	24		212		0.37

Indirect auto	—			13		29 months	—				—		595		9 months	—			10		618		2.59
Other consumer	—			10		32 months	—				—		—			—			—		10		0.03
Credit card	—			—			8		(16)	%	—		—			—			—		8		0.17
Total	$	549		$	43		$	8			$	22	$	641		$	100		$	34	$	1,397	0.42

	Renewals			Term Extensions			Interest Rate Adjustments				Capitalizations		Payment Delays			Combination - Capitalization and Term Extension			Other				Percentage of Total Class of Financing Receivable
Six Months Ended June 30, 2026 (Dollars in millions)	Amount		Financial Effect	Amount		Financial Effect	Amount		Financial Effect		Amount		Amount		Financial Effect	Amount		Financial Effect	Amount		Total Modified Loans
Commercial:
Commercial and industrial	$	500	7 months	$	—		$	—			$	—	$	1	6 months	$	—		$	17	$	518	0.31	%
CRE	382		18 months	—			—				—		—			—			—		382		1.50
Commercial construction	226		9 months	—			—				—		—			—			—		226		3.07
Consumer:
Residential mortgage	—			38		94 months	—				41		84		8 months	181		97 months	49		393		0.69
Home equity	—			—			—				—		—			—			1		1		0.01
Indirect auto	—			27		29 months	—				—		945		9 months	—			19		991		4.16
Other consumer	—			20		31 months	—				—		1		5 months	—			1		22		0.07
Credit card	—			—			15		(17)	%	—		—			—			1		16		0.33
Total	$	1,108		$	85		$	15			$	41	$	1,031		$	181		$	88	$	2,549	0.77

20 Truist Financial Corporation


	Renewals			Term Extensions			Interest Rate Adjustments				Capitalizations		Payment Delays			Combination - Capitalization and Term Extension			Other				Percentage of Total Class of Financing Receivable
Three Months Ended June 30, 2025 (Dollars in millions)	Amount		Financial Effect	Amount		Financial Effect	Amount		Financial Effect		Amount		Amount		Financial Effect	Amount		Financial Effect	Amount		Total Modified Loans
Commercial:
Commercial and industrial	$	359	14 months	$	—		$	—			$	—	$	—		$	—		$	20	$	379	0.23	%
CRE	278		13 months	—			—				—		—			—			—		278		1.37
Commercial construction	45		2 months	—			—				—		—			—			—		45		0.54
Consumer:
Residential mortgage	—			23		90 months	—				26		41		8 months	81		94 months	17		188		0.33
Home equity	—			—			—				—		—			—			2		2		0.02
Indirect auto	—			12		28 months	—				—		567		8 months	—			8		587		2.39
Other consumer	—			10		32 months	—				—		—			—			—		10		0.03
Credit card	—			—			8		(17)	%	—		—			—			—		8		0.16
Total	$	682		$	45		$	8			$	26	$	608		$	81		$	47	$	1,497	0.47

	Renewals			Term Extensions			Interest Rate Adjustments				Capitalizations		Payment Delays			Combination - Capitalization and Term Extension			Other				Percentage of Total Class of Financing Receivable
Six Months Ended June 30, 2025 (Dollars in millions)	Amount		Financial Effect	Amount		Financial Effect	Amount		Financial Effect		Amount		Amount		Financial Effect	Amount		Financial Effect	Amount		Total Modified Loans
Commercial:
Commercial and industrial	$	528	12 months	$	—		$	—			$	—	$	46	6 months	$	—		$	20	$	594	0.37	%
CRE	476		15 months	—			—				—		—			—			—		476		2.35
Commercial construction	73		6 months	—			—				—		—			—			—		73		0.88
Consumer:
Residential mortgage	—			39		96 months	—				61		58		8 months	162		96 months	38		358		0.62
Home equity	—			—			—				—		—			—			3		3		0.03
Indirect auto	—			17		28 months	1		(7)	%	—		987		8 months	—			16		1,021		4.16
Other consumer	—			19		29 months	—				—		—			—			1		20		0.06

Credit card	—			—			16		(17)	%	—		—			—			—		16		0.33
Total	$	1,077		$	75		$	17			$	61	$	1,091		$	162		$	78	$	2,561	0.80

Truist Financial Corporation 21

The tables above exclude trial modifications totaling $168 million and $42 million as of June 30, 2026 and 2025, 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, 2026 and 2025, Truist had $405 million and $430 million, respectively, in unfunded 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, 2026 and 2025, 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.

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 tables summarize 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, 2026 (Dollars in millions)	Current		30-89 Days Past Due		90 Days or More Past Due		Total
Commercial:
Commercial and industrial	$	653	$	29	$	186	$	868
CRE	558		1		2		561
Commercial construction	378		—		—		378
Consumer:
Residential mortgage	350		135		187		672
Home equity	3		—		—		3
Indirect auto	987		206		29		1,222
Other consumer	31		3		1		35
Credit card	18		3		3		24
Total	$	2,978	$	377	$	408	$	3,763
Total nonaccrual loans included above	$	455	$	129	$	290	$	874

	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

22 Truist Financial Corporation

The following tables provide 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, 2026 (Dollars in millions)	Renewals		Term Extensions		Interest Rate Adjustments		Capitalizations		Payment Delays		Combination - Capitalization and Term Extension		Other		Total
Commercial:
Commercial and industrial	$	186	$	—	$	—	$	—	$	—	$	—	$	—	$	186
CRE	2		—		—		—		—		—		—		2

Consumer:
Residential mortgage	—		8		—		13		109		48		9		187

Indirect auto	—		1		—		—		25		—		3		29
Other consumer	—		1		—		—		—		—		—		1
Credit card	—		—		3		—		—		—		—		3
Total	$	188	$	10	$	3	$	13	$	134	$	48	$	12	$	408
















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

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, 2026						Dec 31, 2025
Unearned income, discounts, and net deferred loan fees and costs			$	557					$	509

Truist Financial Corporation 23

NOTE 5. Goodwill and Other Intangible Assets

The Company monitored events and circumstances during the period from January 1, 2026 to June 30, 2026, 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, 2025 quantitative impairment test, and the sensitivity of the October 1, 2025 quantitative results to changes in assumptions as of June 30, 2026. 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, 2026.

Refer to “Note 7. Goodwill and Other Intangible Assets” in Truist’s Annual Report on Form 10-K for the year ended December 31, 2025 for additional information on goodwill, including the Company's most recent annual quantitative test. Refer to “Note 16. Operating Segments” for additional information on segments.

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


		June 30, 2026									December 31, 2025
(Dollars in millions)	Gross Carrying Amount			Accumulated Amortization			Net Carrying Amount			Gross Carrying Amount			Accumulated Amortization			Net Carrying Amount
CDI		$	2,175		$	(1,799)		$	376		$	2,242		$	(1,796)		$	446
Other, primarily client relationship intangibles		1,431			(677)			754			1,437			(627)			810
Total		$	3,606		$	(2,476)		$	1,130		$	3,679		$	(2,423)		$	1,256

24 Truist Financial Corporation

NOTE 6. 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, 2026			Dec 31, 2025
UPB of residential mortgage loan servicing portfolio	$	298,658		$	285,966
UPB of residential mortgage loans serviced for others, primarily agency conforming fixed rate	240,764			228,383

	As of / For the Six Months Ended June 30,
(Dollars in millions)	2026			2025
UPB of residential mortgage loans sold from LHFS	$	8,115		$	4,990
Pre-tax gains recognized on mortgage loans sold and held for sale	39			35
Servicing fees recognized from mortgage loans serviced for others	336			309
Approximate weighted average servicing fee on the outstanding balance of residential mortgage loans serviced for others	0.29		%	0.28		%
Weighted average interest rate on mortgage loans serviced for others	3.79			3.70

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




(Dollars in millions)	2026		2025
Residential MSRs, carrying value, January 1	$	3,724	$	3,431
Acquired	275		—
Additions	197		102

Change in fair value due to changes in valuation inputs or assumptions	39		(31)
Realization of expected net servicing cash flows, passage of time, and other	(189)		(152)
Residential MSRs, carrying value, June 30	$	4,046	$	3,350

The sensitivity of the fair value of the Company’s residential MSRs to changes in key assumptions is presented in the following table. The sensitivity calculations below are hypothetical and should not be considered predictive of future performance. 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, 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.


	June 30, 2026								December 31, 2025
	Range				Weighted Average				Range					Weighted Average
(Dollars in millions)	Min		Max					Min			Max
Prepayment speed	6.2	%	11.0	%	7.2		%		6.1	%		13.9	%	7.2		%
Effect on fair value of a 10% increase					$	(114)								$	(107)
Effect on fair value of a 20% increase					(221)									(208)
OAS	1.3	%	12.1	%	4.0		%		1.4	%		12.2	%	4.4		%
Effect on fair value of a 10% increase					$	(72)								$	(75)
Effect on fair value of a 20% increase					(142)									(146)
Composition of loans serviced for others:
Fixed-rate residential mortgage loans					99.6		%							99.7		%
Adjustable-rate residential mortgage loans					0.4									0.3
Total					100.0		%							100.0		%
Weighted average life					7.5 years									7.6 years

Truist Financial Corporation 25

Commercial Mortgage Activities

The following tables summarize commercial mortgage servicing activities:


(Dollars in millions)	Jun 30, 2026		Dec 31, 2025
UPB of CRE mortgages serviced for others	$	25,917	$	26,152



Commercial MSRs at fair value	229		228

	Six Months Ended June 30,
(Dollars in millions)	2026		2025
CRE mortgages originated	$	1,008	277

NOTE 7. Other Assets and Liabilities

Lessee Operating Leases

The Company leases certain assets, consisting primarily of real estate, and assesses at contract inception whether a contract is, or contains, a lease. Finance leases where the Company is a lessee are not material to the Company’s financial statements for all periods presented. The following tables present additional information on operating leases, excluding leases related to the lease financing businesses:




(Dollars in millions)	Jun 30, 2026			Dec 31, 2025

ROU assets	$	995			$	1,045
Lease liabilities	1,206				1,276
Weighted average remaining term	6.6 years				6.7 years
Weighted average discount rate	3.9		%		3.8		%


	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in millions)	2026		2025		2026		2025
Operating lease costs	$	66	$	69	$	136	$	137

Lessor Operating Leases

The Company’s two primary lessor businesses are equipment financing and structured real estate with income recorded in Other 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, 2026		Dec 31, 2025
Assets held under operating leases(1)(2)	$	1,495	$	1,838


Accumulated depreciation	(497)		(527)
Net	$	998	$	1,311

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

(2)Excludes operating leases held for sale that totaled $4 million at June 30, 2026 and December 31, 2025.

26 Truist Financial Corporation

NOTE 8. Borrowings

Short-Term Borrowings

The types of short-term borrowings that have been, or may be, used by the Company include Federal funds purchased, securities sold under repurchase agreements, master notes, commercial paper, short-term bank notes, and short-term FHLB advances. The carrying value of FHLB advances classified as short-term borrowings was $17.6 billion at June 30, 2026 and $22.1 billion at December 31, 2025. Additionally, securities sold short, which are used for client-related trading activities, are classified as Short-term borrowings in the Consolidated Balance Sheets. Refer to “Note 13. Fair Value Disclosures” for additional information on securities sold short and “Note 2. Securities Financing Activities” for information on securities sold under repurchase agreements.

Long-Term Debt

The types of long-term debt that have been, or may be, used by the Company include fixed and floating rate senior and subordinated notes and FHLB advances, which are typically prepayable and may be used for short-term liquidity management. The majority of long-term debt is redeemable at our option at one or more dates prior to contractual maturity. The following table presents a summary of long-term debt:


(Dollars in millions)	Jun 30, 2026	Dec 31, 2025
Truist Financial Corporation:
Fixed rate senior notes			$	20,327	$	20,093

Fixed rate subordinated notes			1,589		1,818
Capital notes			641		639
Truist Bank:
Fixed rate senior notes			5,013		4,476
Floating rate senior notes			849		499
Fixed rate subordinated notes			2,779		3,553

Floating rate FHLB advances			10,150		9,450
Other long-term debt(1)			1,628		1,435
Total long-term debt			$	42,976	$	41,963

(1)Includes debt associated with finance leases and tax credit investments.

Truist Financial Corporation 27

NOTE 9. Shareholders’ Equity

Dividend Activity

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,
2026			2025			2026			2025				2026			2025			2026			2025
Common stock	$	0.52		$	0.52		$	1.04		$	1.04			$	636		$	670		$	1,281		$	1,349
Preferred stock:
Series I	1,128.81			1,286.86			2,270.05			2,588.71				2			2			4			4
Series J	1,157.88			1,315.93			2,328.19			2,646.85				1			2			2			3

Series M	2,562.50			2,562.50			2,562.50			2,562.50				13			13			13			13
Series N	—			—			833.63			833.63				—			—			56			56
Series O	328.13			328.13			656.25			656.25				7			7			15			15
Series P	—			618.75			—			618.75				—			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														$	34		$	60		$	138		$	164

Common Stock

In December 2025, Truist announced that its Board authorized the repurchase of up to $10.0 billion of common stock effective immediately with no expiration date, replacing the previous repurchase authority from June 2024, as part of Truist’s overall capital distribution strategy. For the six months ended June 30, 2026, the Company repurchased $2.4 billion of common stock, including excise tax, which represented 46.6 million shares, through open market repurchases under the December 2025 repurchase plan. Repurchased shares revert to the status of authorized and unissued shares upon repurchase. At June 30, 2026, Truist had remaining authorization to repurchase up to $7.7 billion of common stock under the December 2025 repurchase plan.

Preferred Stock

On May 15, 2026, Truist issued $500 million of Series S non-cumulative perpetual preferred stock with a stated dividend rate of 6.25% per annum for net proceeds of approximately $495 million. Dividends, if declared by the Board, are payable on the 15th day of March, June, September, and December of each year, commencing on September 15, 2026. The dividend rate will reset on June 15, 2031, and on each following fifth anniversary of the reset date to the five-year U.S. Treasury rate plus 2.13%. Truist issued depositary shares, each of which represents a fractional ownership interest in a share of the 20,000 shares of the Company’s Series S preferred stock. The preferred stock has no stated maturity and redemption is solely at the option of the Company in whole, but not in part, within 90 days following a regulatory capital treatment event, as defined in the prospectus. In addition, the preferred stock may be redeemed in whole or in part on any dividend payment date on or after June 15, 2031.

28 Truist Financial Corporation

NOTE 10. 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, 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)
AOCI balance, April 1, 2026	$	(387)	$	(572)	$	(3,517)	$	(1,862)	$	1	$	(6,337)
OCI before reclassifications, net of tax	1		(505)		39		—		2		(463)

Amounts reclassified from AOCI:
Before tax	1		54		(11)		67		—		111
Tax effect	1		12		(3)		17		—		27
Amounts reclassified, net of tax	—		42		(8)		50		—		84
Total OCI, net of tax	1		(463)		31		50		2		(379)
AOCI balance, June 30, 2026	$	(386)	$	(1,035)	$	(3,486)	$	(1,812)	$	3	$	(6,716)

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









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)
AOCI balance, January 1, 2026	$	(381)	$	(173)	$	(3,306)	$	(1,909)	$	—	$	(5,769)
OCI before reclassifications, net of tax	(7)		(932)		(158)		—		3		(1,094)

Amounts reclassified from AOCI:
Before tax	3		91		(29)		128		—		193
Tax effect	1		21		(7)		31		—		46
Amounts reclassified, net of tax	2		70		(22)		97		—		147
Total OCI, net of tax	(5)		(862)		(180)		97		3		(947)
AOCI balance, June 30, 2026	$	(386)	$	(1,035)	$	(3,486)	$	(1,812)	$	3	$	(6,716)
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

Truist Financial Corporation 29

NOTE 11. 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	2026		2025		2026		2025
Service cost	Personnel expense	$	75	$	69	$	150	$	137
Interest cost	Other expense	122		114		244		228
Estimated return on plan assets	Other expense	(267)		(242)		(534)		(485)

Net periodic (benefit) cost		$	(70)	$	(59)	$	(140)	$	(120)

Truist may make contributions to the qualified pension plan up to the maximum amount deductible for federal income tax purposes.

Refer to “Note 15. Benefit Plans” in Truist’s Annual Report on Form 10-K for the year ended December 31, 2025 for additional discussion of Truist’s benefit plans.

30 Truist Financial Corporation

NOTE 12. 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. Refer to “Note 16. Commitments and Contingencies” in Truist’s Annual Report on Form 10-K for the year ended December 31, 2025 for additional discussion of Truist’s tax credit and certain equity investments, total return swaps, and other commitments.

Tax Credit and Certain Equity Investments

The following table summarizes certain tax credit and equity investments:


(Dollars in millions)	Balance Sheet Location	Jun 30, 2026		Dec 31, 2025
Investments in affordable housing projects, other qualified tax credits and other community development investments:
Carrying amount	Other assets	$	8,655	$	8,049
Amount of future funding commitments included in carrying amount	Other liabilities	2,449		2,531
Lending exposure	Loans and leases for funded amounts	2,203		2,341

Renewable energy investments:
Carrying amount	Other assets	895		736
Amount of future funding commitments not included in carrying amount	NA	1,071		719
SBIC and certain other equity method investments:
Carrying amount	Other assets	1,173		1,015
Amount of future funding commitments not included in carrying amount	NA	615		626

The following table presents a summary of tax credits and amortization expense associated with the Company’s tax credit investment activity.


		Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in millions)	Income Statement Location	2026		2025		2026		2025
Tax credits:
Investments in affordable housing projects, other qualified tax credits, and other community development investments(1)	Provision for income taxes	$	232	$	209	$	457	$	420
Amortization and other changes in carrying amount:
Investments in affordable housing projects and other qualified tax credits	Provision for income taxes	$	202	$	186	$	402	$	374
Other community development investments	Other noninterest income	2		3		4		5

(1)Excludes renewable energy investment tax credits. These credits are recorded as a reduction to the carrying value of the underlying investments.

Letters of Credit and Financial Guarantees

In the normal course of business, Truist utilizes financial instruments to meet the financing needs of clients, including commitments to extend credit and certain contractual agreements such as letters of credit and financial guarantee arrangements.

Truist Financial Corporation 31

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


(Dollars in millions)	Jun 30, 2026		Dec 31, 2025
Commitments to extend, originate, or purchase credit and other commitments	$	234,101	$	230,007
Residential mortgage loans sold with recourse	137		138
Maximum recourse exposure from mortgage loans sold with recourse liability	93		91
Indemnification, recourse, and repurchase reserves	18		18
CRE mortgages serviced for others covered by recourse provisions	9,217		9,421
Maximum recourse exposure	2,782		2,786
Recorded reserves related to CRE mortgages recourse exposure	10		10
Other loans serviced for others covered by recourse provisions	3,028		2,803
Maximum recourse exposure	76		80
Letters of credit and financial guarantees	9,864		9,347

Total Return Swaps

The Company enters into TRS transactions with third-party clients, whereby a VIE purchases reference assets identified by a client.

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, 2026		Dec 31, 2025
Total return swaps:
VIE assets	$	1,951	$	2,117
Trading loans and bonds	1,763		1,909
VIE liabilities	179		285

Pledged Assets

Certain assets are 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 Federal Reserve are subject to applicable asset discounts when determining borrowing capacity. The Company has capacity for secured financing from both the Federal Reserve 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, 2026		Dec 31, 2025
Pledged securities	$	39,128	$	40,144

Pledged loans:
Federal Reserve	105,490		108,214
FHLB	76,596		74,767
Unused borrowing capacity:
Federal Reserve	81,004		84,160
FHLB	27,491		23,464

32 Truist Financial Corporation

Legal Proceedings and Other Legal 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 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, if unfavorable, may be material to the consolidated financial position, consolidated results of operations, or consolidated cash flows of Truist, or cause significant reputational consequences.

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

Truist also provides estimates of reasonably possible losses, including for disclosed matters, when potential losses become reasonably possible and the amount of loss can be reasonably estimated. The Company estimates reasonably possible losses, in excess of amounts accrued, of up to approximately $150 million in the aggregate as of June 30, 2026. This estimate does not represent Truist’s maximum loss exposure, and actual losses may vary significantly. Also, the outcome of a particular matter may be one that the Company did not take into account in its estimate because the Company judged the likelihood of that outcome to be remote. In addition, the matters underlying this estimate may change from time to time. Estimated losses, like accruals, are based upon currently available information and involve considerable uncertainties and judgment.

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

Truist Financial Corporation 33

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 alleged that all overdraft fees charged to his account which related to debit card and ATM transactions were actually interest charges and therefore subject to the usury laws of Georgia. The amended complaint asserted claims for violations of civil and criminal usury laws, conversion, and money had and received, and sought 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 $478 million as of June 30, 2026.

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 to the Georgia Court of Appeals, which affirmed the order in part and reversed it in part on February 20, 2025. Truist’s petitions seeking further review by the Georgia Supreme Court and the U.S. Supreme Court were denied. As a result of all of these rulings, the amount of paid overdraft fees and prejudgment interest at issue in the case was reduced.

On January 20, 2026, without any admission of liability or wrongdoing, Truist entered into a settlement agreement with the class to resolve the case. Under the settlement, Truist will contribute up to $240 million to a settlement fund that will be used to pay fees and expenses of class counsel, costs of settlement administration, an incentive payment for the class representative, and valid claims submitted by class members. The court granted final approval of the settlement on May 26, 2026, and class members have until September 14, 2026 to submit claims to the settlement administrator.

34 Truist Financial Corporation

NOTE 13. 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; and
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, 2026 (Dollars in millions)	Total		Level 1		Level 2		Level 3		Netting Adjustments(1)
Assets:
Trading assets:
U.S. Treasury	$	119	$	—	$	119	$	—	$	—
GSE	37		—		37		—		—
States and political subdivisions	265		—		265		—		—
Corporate and other debt securities	1,792		—		1,792		—		—
Loans	1,931		—		1,931		—		—
Equity securities	1,144		1,144		—		—		—

Total trading assets	5,288		1,144		4,144		—		—
AFS securities:
U.S. Treasury	13,313		—		13,313		—		—
GSE	436		—		436		—		—
Agency MBS – residential	49,152		—		49,152		—		—
Agency MBS – commercial	3,126		—		3,126		—		—
States and political subdivisions	341		—		341		—		—
Collateralized loan obligations	1,279		—		1,279		—		—
Other	4		—		4		—		—
Total AFS securities	67,651		—		67,651		—		—
LHFS	2,198		—		2,198		—		—
Loans and leases	10		—		—		10		—
Loan servicing rights at fair value	4,293		—		—		4,293		—
Other assets:
Derivative assets	1,455		1,579		2,060		5		(2,189)
Equity securities	378		301		77		—		—
Other	8		—		8		—		—
Total assets	$	81,281	$	3,024	$	76,138	$	4,308	$	(2,189)
Liabilities:
Interest-bearing deposits:
Brokered time deposits	$	688	$	—	$	688	$	—	$	—
Short-term borrowings:
Securities sold short	2,979		1,502		1,477		—		—
Other trading liabilities	142		—		142		—		—
Other liabilities:
Derivative Liabilities	2,228		836		4,472		23		(3,103)
Total liabilities	$	6,037	$	2,338	$	6,779	$	23	$	(3,103)

Truist Financial Corporation 35


December 31, 2025 (Dollars in millions)	Total		Level 1		Level 2		Level 3		Netting Adjustments(1)
Assets:
Trading assets:
U.S. Treasury	$	244	$	—	$	244	$	—	$	—
GSE	42		—		42		—		—
States and political subdivisions	301		—		301		—		—
Corporate and other debt securities	1,970		—		1,970		—		—
Loans	2,168		—		2,168		—		—
Equity securities	1,065		1,065		—		—		—

Total trading assets	5,790		1,065		4,725		—		—
AFS securities:
U.S. Treasury	12,792		—		12,792		—		—
GSE	460		—		460		—		—
Agency MBS – residential	48,226		—		48,226		—		—
Agency MBS – commercial	3,200		—		3,200		—		—
States and political subdivisions	350		—		350		—		—

Other	14		—		14		—		—
Total AFS securities	65,042		—		65,042		—		—
LHFS	1,622		—		1,622		—		—
Loans and leases	11		—		—		11		—
Loan servicing rights at fair value	3,972		—		—		3,972		—
Other assets:
Derivative assets	1,343		1,157		1,961		4		(1,779)
Equity securities	382		293		89		—		—

Total assets	$	78,162	$	2,515	$	73,439	$	3,987	$	(1,779)
Liabilities:
Interest-bearing deposits:
Brokered time deposits	$	639	$	—	$	639	$	—	$	—
Short-term borrowings:
Securities sold short	2,185		652		1,533		—		—
Other trading liabilities	209		—		209		—		—
Other liabilities:
Derivative liabilities	1,797		623		3,959		33		(2,818)
Total liabilities	$	4,830	$	1,275	$	6,340	$	33	$	(2,818)

(1)Refer to “Note 14. Derivative Financial Instruments” for additional discussion on netting adjustments.

At June 30, 2026 and December 31, 2025, investments totaling $715 million and $622 million, respectively, have been excluded from the tables 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” in Truist’s Annual Report on Form 10-K for the year ended December 31, 2025.

36 Truist Financial Corporation

Activity for Level 3 assets and liabilities is summarized below:


(Dollars in millions)	Loans and Leases		Loan Servicing Rights		Net Derivatives
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
Balance at April 1, 2026	$	10	$	4,112	$	(35)
Total realized and unrealized gains (losses):
Included in earnings	—		35		2
Purchases	—		144		—
Issuances	—		116		—

Settlements	—		(114)		15


Balance at June 30, 2026	10		4,293		(18)
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at June 30, 2026	$	—	$	35	$	11


(Dollars in millions)	Loans and Leases		Loan Servicing Rights		Net Derivatives










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
Balance at January 1, 2026	$	11	$	3,972	$	(29)
Total realized and unrealized gains (losses):
Included in earnings	—		51		3
Purchases	—		275		—
Issuances	—		209		(17)

Settlements	(1)		(214)		25


Balance at June 30, 2026	$	10	$	4,293	$	(18)
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at June 30, 2026	$	—	$	51	$	—
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, 2026						December 31, 2025
(Dollars in millions)	Fair Value		UPB		Difference		Fair Value		UPB		Difference
Trading loans	$	1,931	$	1,995	$	(64)	$	2,168	$	2,230	$	(62)
LHFS	2,198		2,173		25		1,622		1,592		30
Loans and leases	10		11		(1)		11		12		(1)
Brokered time deposits	688		697		(9)		639		642		(3)

Truist Financial Corporation 37

Nonrecurring Fair Value Measurements

The following table provides information about certain assets measured at fair value on a nonrecurring basis 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, 2026		Dec 31, 2025
Carrying value:

LHFS	Level 3	$	204	$	4
Loans and leases(1)	Level 3	297		468
Other	Level 3	46		65

(1)Total loans and leases measured at fair value on a nonrecurring basis still held as of period end were $516 million and $599 million at June 30, 2026 and December 31, 2025, 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)	2026		2025
Valuation adjustments:
LHFS	$	(58)	$	(68)
Loans and leases	(444)		(420)
Other	(113)		(148)

LHFS with valuation adjustments in the table above consist primarily of residential mortgages and commercial loans that are 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 Statements of Income. Refer to “Note 1. Basis of Presentation” in Truist’s Annual Report on Form 10-K for the year ended December 31, 2025 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, as applicable. Partnership investments are measured by discounting expected future cash flows. The remaining assets are measured at LOCOM, less costs to sell.

38 Truist Financial Corporation

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, 2026				December 31, 2025
(Dollars in millions)	Fair Value Hierarchy	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets:
HTM securities	Level 2	$	46,351	$	38,145	$	47,186	$	39,130
Loans and leases, net of ALLL	Level 3	324,803		320,888		323,554		320,018
Financial liabilities:
Time deposits	Level 2	40,241		40,064		37,793		37,723
Long-term debt	Level 2	42,976		43,400		41,963		42,451

The carrying value of the RUFC, which approximates the fair value, was $333 million and $317 million at June 30, 2026 and December 31, 2025, 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.

Truist Financial Corporation 39

NOTE 14. Derivative Financial Instruments

Impact of Derivatives on the Consolidated Balance Sheets

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


	June 30, 2026								December 31, 2025
	Notional or Contractual Amount			Fair Value					Notional or Contractual Amount		Fair Value
(Dollars in millions)			Assets			Liabilities			Assets		Liabilities
Derivatives designated as hedges:
Interest rate contracts:
Swaps hedging commercial loans	$	83,672		$	—		$	(6)	$	97,135	$	—	$	—
Swaps hedging long-term debt	28,400			—			(1)		27,033		—		—
Swaps hedging AFS securities	23,730			—			(1)		26,751		—		—
Total derivatives designated as hedges	135,802			—			(8)		150,919		—		—
Derivatives not designated as hedges:
Client-related and other risk management:
Interest rate contracts:
Swaps	195,669			411			(1,115)		185,861		516		(944)
Written options	10,712			1			(28)		10,577		2		(18)
Purchased options	5,792			15			—		8,558		15		—
Futures and forwards	2,997			1			(3)		2,636		2		(14)
Foreign exchange contracts:
Swaps	16,539			418			(372)		13,647		450		(382)
Futures and forwards	27,887			374			(332)		27,008		338		(335)
Other	2,615			29			(26)		2,820		35		(33)
Equity contracts:
Written options	30,311			18			(2,770)		26,600		12		(2,278)
Purchased options	13,989			1,800			(139)		12,485		1,358		(121)
Other	2,521			74			(22)		1,386		11		(59)
Commodity contracts	10,920			437			(417)		8,340		322		(302)
Credit contracts:
Credit default swaps	1,181			—			(3)		900		—		—
Total return swaps	1,782			34			(5)		1,835		31		(7)
Risk participation agreements	9,211			—			(2)		8,863		—		(2)
Total	332,126			3,612			(5,234)		311,516		3,092		(4,495)
MSRs and mortgage banking:
Interest rate contracts:
Swaps	15,605			—			—		11,035		—		—
Written options	568			11			—		1,288		14		—
Purchased options	9,550			6			(75)		10,465		10		(118)
Interest rate lock commitments	1,271			5			(10)		960		4		(2)
When issued securities, forward rate agreements, forward commitments, and futures	7,843			10			(4)		7,807		2		—
Total	34,837			32			(89)		31,555		30		(120)
Total derivatives not designated as hedges	366,963			3,644			(5,323)		343,071		3,122		(4,615)
Total derivatives	$	502,765		$	3,644		$	(5,331)	$	493,990	$	3,122	$	(4,615)
Gross amounts in the Consolidated Balance Sheets:
Amounts subject to master netting arrangements and exchange traded derivatives				(1,963)			1,963				(1,585)		1,585
Cash collateral (received) posted for amounts subject to master netting arrangements				(226)			1,140				(194)		1,233
Net amount				$	1,455		$	(2,228)			$	1,343	$	(1,797)

40 Truist Financial Corporation

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 2. Securities Financing Activities“ for information about the Company's securities financing transactions subject to master netting (or similar) arrangements.


June 30, 2026 (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	$	1,896	$	(1,354)	$	542	$	—	$	542
Derivatives not subject to master netting arrangement or similar arrangement	169		—		169		—		169
Exchange traded derivatives	1,579		(835)		744		—		744
Total derivative assets	$	3,644	$	(2,189)	$	1,455	$	—	$	1,455
Derivative liabilities:
Derivatives subject to master netting arrangement or similar arrangement	$	(3,486)	$	2,268	$	(1,218)	$	80	$	(1,138)
Derivatives not subject to master netting arrangement or similar arrangement	(1,009)		—		(1,009)		—		(1,009)
Exchange traded derivatives	(836)		835		(1)		—		(1)
Total derivative liabilities	$	(5,331)	$	3,103	$	(2,228)	$	80	$	(2,148)


December 31, 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	$	1,836	$	(1,157)	$	679	$	—	$	679
Derivatives not subject to master netting arrangement or similar arrangement	129		—		129		—		129
Exchange traded derivatives	1,157		(622)		535		—		535
Total derivative assets	$	3,122	$	(1,779)	$	1,343	$	—	$	1,343
Derivative liabilities:
Derivatives subject to master netting arrangement or similar arrangement	$	(3,171)	$	2,196	$	(975)	$	77	$	(898)
Derivatives not subject to master netting arrangement or similar arrangement	(821)		—		(821)		—		(821)
Exchange traded derivatives	(623)		622		(1)		—		(1)
Total derivative liabilities	$	(4,615)	$	2,818	$	(1,797)	$	77	$	(1,720)

(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, 2026								December 31, 2025
	Carrying Amount of the Hedged Assets and Liabilities(1)			Cumulative basis adjustment increasing (decreasing) the carrying amount					Carrying Amount of the Hedged Assets and Liabilities(1)		Cumulative basis adjustment increasing (decreasing) the carrying amount
(Dollars in millions)			Items Currently Designated			Discontinued Hedges			Items Currently Designated		Discontinued Hedges
AFS securities(2)	$	38,106		$	(148)		$	(27)	$	38,608	$	104	$	13
Loans and leases	174			—			2		179		—		3
Long-term debt	28,633			(354)			(305)		28,194		70		(375)

(1)Carrying value shown represents amortized cost.

(2)As of June 30, 2026, closed portfolios of securities hedged under the portfolio layer method had an amortized cost of $19.4 billion, of which $14.8 billion was designated as the hedged item. As of December 31, 2025, closed portfolios of securities hedged under the portfolio layer method had an amortized cost of $27.4 billion, of which $16.4 billion was designated as the hedged item. 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.

Truist Financial Corporation 41

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 the impact on NII related to fair value hedges:


	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in millions)	2026		2025		2026		2025
Investment securities:
Amounts related to settlements(1)	$	14	$	79	$	29	$	158
Recognized on derivatives	171		(199)		292		(591)
Recognized on hedged items	(171)		201		(292)		594
Interest income gain (loss) recognized(2)	14		81		29		161
Loans and leases:
Amounts related to settlements(1)	(1)		—		(1)		(1)
Long-term debt:
Amounts related to settlements(1)	(24)		(56)		(51)		(120)
Recognized on derivatives	(262)		92		(435)		244
Recognized on hedged items	262		(90)		434		(243)
Interest expense gain (loss) recognized	(24)		(54)		(52)		(119)
Net interest income gain (loss) recognized, total	$	(11)	$	27	$	(24)	$	41

(1)Includes amounts related to active and terminated hedges. Prior period balances have been conformed to current period presentation.

(2)Includes income recognized from securities with terminated hedges that were reclassified to HTM of $9 million and $17 million for the three and six months ended June 30, 2026, respectively, and $9 million and $18 million for the three and six months ended June 30, 2025, respectively. The income recognized was offset by the amortization of the fair value mark. Refer to “Note 3. Investment Securities” for additional information on the hedge basis adjustment.

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)	2026		2025		2026		2025
Pre-tax gain (loss) recognized in OCI:
Commercial loans	$	(663)	$	267	$	(1,223)	$	736
Pre-tax gain (loss) reclassified from AOCI into interest income:

Commercial loans	(54)		(92)		(91)		(185)

42 Truist Financial Corporation

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


(Dollars in millions)	Jun 30, 2026		Dec 31, 2025
Cash flow hedges:


Net unrecognized after-tax gain (loss) on hedges recorded in AOCI	$	(1,035)	$	(173)
Maximum length of time over which forecasted cash flows are hedged	4 years		5 years
Fair value hedges:
Net unrecognized pre-tax gain (loss) on terminated hedges(1)	$	38	$	(56)

(1)Includes deferred gains that are recorded in AOCI as a result of the reclassification to HTM of previously hedged securities of $318 million at June 30, 2026 and $335 million at December 31, 2025.

Of the after-tax net loss on active and terminated cash flow hedges in OCI as of June 30, 2026, losses of $401 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 and for purposes of facilitating client trades.

The following table presents pre-tax gains (losses) 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	2026		2025		2026		2025
Client-related and other risk management:
Interest rate contracts	Investment banking and trading income and other income	$	25	$	10	$	58	$	21
Foreign exchange contracts	Investment banking and trading income and other income	55		(164)		121		(213)
Equity contracts	Investment banking and trading income, other income, and personnel expense	212		(38)		250		15
Credit contracts	Investment banking and trading income and other income	(26)		(26)		(11)		(12)
Commodity contracts	Investment banking and trading income	2		3		6		6
MSRs and mortgage banking:
Interest rate contracts	Mortgage banking income	(26)		(18)		(15)		19
Total		$	242	$	(233)	$	409	$	(164)

Truist Financial Corporation 43

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 and TRS. The Company also seeks to economically transfer certain credit risks by entering into 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, 2026, the remaining terms on these risk participations ranged from less than one year to ten 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. Refer to “Note 12. Commitments and Contingencies” for additional information on the Company’s TRS contracts.

The Company’s credit default swaps economically hedge credit risk associated with certain loans and leases.

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


(Dollars in millions)	June 30, 2026		Dec 31, 2025
Risk participation agreements:
Maximum potential amount of exposure	$	377	$	554
Total return swaps:
Cash received for variation margin	34		31
Cash and other collateral received for initial margin	488		471

44 Truist Financial Corporation

NOTE 15. 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)	2026		2025		2026		2025


Net income available to common shareholders	$	1,519	$	1,180	$	2,896	$	2,337
Weighted average number of common shares	1,224,867		1,292,292		1,236,682		1,299,833
Effect of dilutive outstanding equity-based awards	14,173		12,713		16,084		14,946
Weighted average number of diluted common shares	1,239,040		1,305,005		1,252,766		1,314,779


Basic EPS	$	1.24	$	0.91	$	2.34	$	1.80


Diluted EPS	1.23		0.90		2.31		1.78
Anti-dilutive awards	—		174		—		5

Truist Financial Corporation 45

NOTE 16. 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 and goodwill impairment which are separately presented in the table below, as applicable.

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, 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, 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. Refer to “Note 12. Commitments and Contingencies” for additional information on these investments. 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, data, and operations, 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.

46 Truist Financial Corporation

In the first quarter of 2026, the Company’s 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 $27 million for the three months ended June 30, 2025 and $56 million for the six months ended June 30, 2025, with off-setting increases in OT&C net interest income. For the same reason, WB net interest income decreased $99 million for the three months ended June 30, 2025 and $196 million for the six months ended June 30, 2025, 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 with the offset 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.) with the offset reported in OT&C.

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

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

Truist Financial Corporation 47

The following table presents results by segment:


Three Months Ended June 30, (Dollars in millions)	CSBB						WB					OT&C(1)					Total
2026			2025			2026			2025				2026			2025			2026			2025
Net interest income (expense)	$	1,624		$	1,496		$	1,942		$	1,872			$	55		$	219		$	3,621		$	3,587
Net intersegment interest income (expense)	980			828			(411)			(306)				(569)			(522)			—			—
Segment net interest income (expense)	2,604			2,324			1,531			1,566				(514)			(303)			3,621			3,587
Allocated provision for credit losses	307			384			90			104				(2)			—			395			488
Noninterest income	530			519			1,158			941				(44)			(60)			1,644			1,400
Personnel expense	443			434			626			574				723			670			1,792			1,678
Amortization of intangibles	33			39			30			34				—			—			63			73

Other direct noninterest expense(2)	312			286			200			202				688			747			1,200			1,235
Total direct noninterest expense	788			759			856			810				1,411			1,417			3,055			2,986
Expense Allocations	933			940			528			519				(1,461)			(1,459)			—			—
Total noninterest expense	1,721			1,699			1,384			1,329				(50)			(42)			3,055			2,986
Income (loss) before income taxes from continuing operations	1,106			760			1,215			1,074				(506)			(321)			1,815			1,513
Provision (benefit) for income taxes	271			186			255			213				(264)			(126)			262			273
Segment net income (loss) from continuing operations	$	835		$	574		$	960		$	861			$	(242)		$	(195)		$	1,553		$	1,240

Identifiable assets (period end) of continuing operations(3)	$	153,353		$	152,377		$	227,667		$	214,764			$	175,003		$	176,692		$	556,023		$	543,833

Six Months Ended June 30, (Dollars in millions)	CSBB						WB					OT&C(1)					Total
2026			2025			2026			2025				2026			2025			2026			2025
Net interest income (expense)	$	3,229		$	2,931		$	3,864		$	3,756			$	127		$	407		$	7,220		$	7,094
Net intersegment interest income (expense)	1,869			1,640			(825)			(690)				(1,044)			(950)			—			—
Segment net interest income (expense)	5,098			4,571			3,039			3,066				(917)			(543)			7,220			7,094
Allocated provision for credit losses	681			711			195			236				(2)			(1)			874			946
Noninterest income	1,058			1,022			2,227			1,888				(88)			(118)			3,197			2,792
Personnel expense	876			868			1,238			1,131				1,405			1,283			3,519			3,282
Amortization of intangibles	67			78			60			70				—			—			127			148

Other direct noninterest expense(2)	605			574			387			395				1,400			1,493			2,392			2,462
Total direct noninterest expense	1,548			1,520			1,685			1,596				2,805			2,776			6,038			5,892
Expense Allocations	1,853			1,843			1,048			1,036				(2,901)			(2,879)			—			—
Total noninterest expense	3,401			3,363			2,733			2,632				(96)			(103)			6,038			5,892
Income (loss) before income taxes from continuing operations	2,074			1,519			2,338			2,086				(907)			(557)			3,505			3,048
Provision (benefit) for income taxes	509			371			487			413				(525)			(237)			471			547
Segment net income (loss) from continuing operations	$	1,565		$	1,148		$	1,851		$	1,673			$	(382)		$	(320)		$	3,034		$	2,501

Identifiable assets (period end) of continuing operations(3)	$	153,353		$	152,377		$	227,667		$	214,764			$	175,003		$	176,692		$	556,023		$	543,833

(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, data, and operations. Additionally, OT&C includes 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 net occupancy, equipment, professional fees and outside processing, regulatory costs, and other expenses.

(3)For the purpose of presenting identifiable assets of continuing operations by segment, the majority of the ALLL resides in OT&C which is consistent with the CODM’s review of segment loan portfolios on a gross basis.

48 Truist Financial Corporation

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