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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________________________________
Form 8-K
Current Report
_____________________________________________
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
July 22, 2024
Date of Report (Date of earliest event reported)
Truist Financial Corporation
(Exact name of registrant as specified in its charter)
_____________________________________________ | | | | | | | | |
North Carolina | 1-10853 | 56-0939887 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
| | | | | | | | |
214 North Tryon Street | |
Charlotte, | North Carolina | 28202 |
(Address of principal executive offices) | (Zip Code) |
(336) 733-2000
(Registrant’s telephone number, including area code)
_____________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Title of each class | | Trading Symbol | | Name of each exchange on which registered | | | | |
Common Stock, $5 par value | | TFC | | New York Stock Exchange | | | | |
Depositary Shares each representing 1/4,000th interest in a share of Series I Perpetual Preferred Stock | | TFC.PI | | New York Stock Exchange | | | | |
5.853% Fixed-to-Floating Rate Normal Preferred Purchase Securities each representing 1/100th interest in a share of Series J Perpetual Preferred Stock | | TFC.PJ | | New York Stock Exchange | | | | |
Depositary Shares each representing 1/1,000th interest in a share of Series O Non-Cumulative Perpetual Preferred Stock | | TFC.PO | | New York Stock Exchange | | | | |
Depositary Shares each representing 1/1,000th interest in a share of Series R Non-Cumulative Perpetual Preferred Stock | | TFC.PR | | New York Stock Exchange | | | | |
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
ITEM 2.02 Results of Operations and Financial Condition.
On July 22, 2024, Truist Financial Corporation (“Truist”) issued a press release announcing its reporting of second quarter 2024 results and posted on its website its second quarter 2024 Earnings Release, Quarterly Performance Summary, and Earnings Release Presentation. The materials contain forward-looking statements regarding Truist and include cautionary language identifying important factors that could cause actual results to differ materially from those anticipated. The Earnings Release, Quarterly Performance Summary, and Earnings Release Presentation are furnished as Exhibits 99.1, 99.2, and 99.3, respectively. Consequently, they are not deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section. Such materials may only be incorporated by reference into another filing under the Exchange Act or Securities Act of 1933 if such subsequent filing specifically references this Form 8-K. All information in the Earnings Release, Quarterly Performance Summary, and Earnings Release Presentation speaks as of the date thereof, and Truist does not assume any obligation to update such information in the future.
ITEM 9.01 Financial Statements and Exhibits.
(d) Exhibits | | | | | | | | |
| | |
Exhibit No. | | Description of Exhibit |
| | Earnings Release issued July 22, 2024. |
| | Quarterly Performance Summary issued July 22, 2024. |
| | Earnings Release Presentation issued July 22, 2024. |
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104 | | The cover page from this Current Report on Form 8-K, formatted in Inline XBRL. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| | | | | | | | |
| TRUIST FINANCIAL CORPORATION |
| | (Registrant) |
| | |
| By: | /s/ Cynthia B. Powell |
| | Cynthia B. Powell |
| | Executive Vice President and Corporate Controller |
| | (Principal Accounting Officer) |
Date: July 22, 2024
`
| | | | | | | | | | | |
| | News Release |
| | | |
Truist reports second quarter 2024 results |
|
Net income available to common shareholders of $826 million, or $0.62 per share, or $1.2 billion, or $0.91 per share on an adjusted basis(1) | CET1 ratio(3) was 11.6%, significantly strengthened by the sale of TIH | Truist executed a strategic balance sheet repositioning and announced planned share repurchases |
2Q24 Key Financial Data | 2Q24 Performance Highlights(4) |
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| | | | | | | |
(Dollars in billions, except per share data) | 2Q24 | 1Q24 | 2Q23 | | | | | | |
Summary Income Statement | |
Net interest income - TE | $ | 3.58 | | $ | 3.43 | | $ | 3.66 | | | | | | | |
Noninterest income | (5.21) | | 1.45 | | 1.38 | | | | | | | |
Total revenue - TE | (1.63) | | 4.87 | | 5.04 | | | | | | | |
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| | | | | | | | | |
Noninterest expense | 3.09 | | 2.95 | | 3.05 | | | | | | | |
Net income (loss) from continuing operations | (3.91) | | 1.13 | | 1.17 | | | | | | | |
Net income from discontinued operations | 4.83 | | 0.07 | | 0.18 | | | | | | | |
Net income (loss) | 0.92 | | 1.20 | | 1.35 | | | | | | | |
Net income (loss) available to common shareholders | 0.83 | | 1.09 | | 1.23 | | | | | | | |
Adjusted net income available to common shareholders(1) | 1.24 | | 1.22 | | 1.23 | | | | | | | |
PPNR - unadjusted(1)(2) | (4.73) | | 1.92 | | 1.99 | | | | | | | |
PPNR - adjusted(1)(2) | 2.21 | | 2.13 | | 2.14 | | | | | | | |
Key Metrics | |
| | | | | | | | | |
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Diluted EPS | $ | 0.62 | | $ | 0.81 | | $ | 0.92 | | | | | | | |
Adjusted diluted EPS(1) | 0.91 | | 0.90 | | 0.92 | | | | | | | |
BVPS | 42.71 | | 38.97 | | 42.68 | | | | | | | |
TBVPS(1) | 28.91 | | 21.64 | | 20.44 | | | | | | | |
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ROCE | 6.1 | % | 8.4 | % | 8.6 | % | | | | | | |
ROTCE(1) | 10.4 | | 16.3 | | 19.4 | | | | | | | |
Efficiency ratio - GAAP(2) | NM | 61.3 | | 61.1 | | | | | | | |
Efficiency ratio - adjusted(1)(2) | 56.0 | | 56.2 | | 57.5 | | | | | | | |
Fee income ratio - GAAP(2) | NM | 30.0 | | 27.7 | | | | | | | |
Fee income ratio - adjusted(1)(2) | 28.7 | | 29.7 | | 27.4 | | | | | | | |
NIM - TE(2) | 3.03 | | 2.89 | | 2.90 | | | | | | | |
NCO ratio | 0.58 | | 0.64 | | 0.54 | | | | | | | |
ALLL ratio | 1.57 | | 1.56 | | 1.43 | | | | | | | |
CET1 ratio(3) | 11.6 | | 10.1 | | 9.6 | | | | | | | |
| | | | | | | | | |
Average Balances | |
Assets | $ | 527 | | $ | 531 | | $ | 566 | | | | | | | |
Securities | 121 | | 131 | | 138 | | | | | | | |
Loans and leases | 308 | | 309 | | 328 | | | | | | | |
Deposits | 388 | | 389 | | 400 | | | | | | | |
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Amounts may not foot due to rounding.
(1)Represents a non-GAAP measure. A reconciliation of each of these non-GAAP measures to the most directly comparable GAAP measure is included in the appendix to Truist’s Second Quarter 2024 Earnings Presentation.
(2)This metric is calculated based on continuing operations.
(3)Current quarter capital ratios are preliminary.
(4)Comparisons noted in this section summarize changes from second quarter of 2024 compared to first quarter of 2024 on a continuing operations basis, unless otherwise noted.
•Net income available to common shareholders was $826 million, or $0.62 per diluted share, and includes:
◦A gain on the sale of TIH of $6.9 billion ($4.8 billion after-tax), or $3.60 per share (discontinued operations)
◦Securities losses of $6.7 billion ($5.1 billion after-tax), or $3.80 per share, from the strategic balance sheet repositioning of a portion of the available-for-sale investment securities portfolio
◦A charitable contribution to the Truist Foundation of $150 million ($115 million after-tax), or $0.09 per share
◦Restructuring charges of $96 million ($73 million after-tax), or $0.05 per share, for continuing and discontinued operations, or $33 million ($26 million after-tax), or $0.02 per share, for continuing operations primarily due to severance and facilities optimization
•Total revenues were down $6.5 billion due primarily to securities losses. Adjusted revenues(1) were up 3.0% due to higher net interest income.
◦Net interest income increased 4.5% due to the balance sheet repositioning and higher rates on earning assets; net interest margin was up 14 basis points
◦Excluding securities losses, noninterest income was flat due to lower investment banking and trading income that was largely offset by higher mortgage banking income and other income
•Noninterest expense was up 4.8%. Adjusted noninterest expense(1) was up 2.6%, reflecting seasonally higher personnel expense and higher professional fees and outside processing expense
•Average loans and leases HFI decreased 0.7% due to declines in the commercial and industrial, residential mortgage, and indirect auto portfolios
•Average deposits decreased 0.3% due to declines in non-interest bearing and time deposits
•Asset quality remains solid
◦Nonperforming assets were stable
◦Loans 90 days or more past due were down two basis points
◦ALLL ratio increased one basis point
◦Net charge-off ratio of 58 basis points, down six basis points
•Capital levels significantly strengthened from the sale of TIH
◦Announced up to $5 billion in share repurchase authorization through 2026 with buybacks expected to commence in 3Q24
◦CET1 ratio(3) was 11.6%
•Liquidity levels remain strong with consolidated LCR of 110%
“In the second quarter, we continued to see solid momentum in our core banking businesses as evidenced by strong year-over-year growth in investment banking and trading revenue and continued expense discipline. Client deposits are stabilizing, and asset quality metrics remain within our expectations. While loan demand does remain muted, we are encouraged by an improvement in our dialogue with clients and our expanded capacity to support their needs.
We successfully completed the divestiture of our remaining stake in Truist Insurance Holdings, which along with organic capital generation increased our CET1 capital ratio to 11.6% and our tangible book value per share by 34%. We utilized a portion of the capital created from the sale of TIH to reposition our balance sheet, which is expected to replace TIH’s earnings contribution, creates additional liquidity and improves our interest rate risk profile.
In addition, our Board authorized the repurchase of up to $5 billion of shares of our common stock through the end of 2026 with repurchases expected to begin during the third quarter. Moreover, the most recent Federal Reserve stress test highlighted our ability to weather a variety of stressed economic scenarios.
I am confident in the capabilities of our talented teammates to take Truist to the next level as our strengthened capital position offers us the opportunity to grow our core banking franchise, while also prudently returning capital to our shareholders through our strong dividend and recently announced share repurchase program.”
— Bill Rogers, Truist Chairman & CEO
` | | | | | | | | |
Contact: | | |
Investors: | Brad Milsaps | 770.352.5347 | investors@truist.com |
Media: | Hannah Joyce | 781.650.0403 | media@truist.com |
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Net Interest Income, Net Interest Margin, and Average Balances |
| Quarter Ended | | | | Change |
(Dollars in millions) | 2Q24 | | 1Q24 | | | | | | 2Q23 | | | | | | Link | | Like | | |
Interest income(1) | $ | 6,404 | | | $ | 6,237 | | | | | | | $ | 6,229 | | | | | | | $ | 167 | | | 2.7 | % | | $ | 175 | | | 2.8 | % | | | | |
Interest expense | 2,824 | | | 2,812 | | | | | | | 2,572 | | | | | | | 12 | | | 0.4 | | | 252 | | | 9.8 | | | | |
Net interest income(1) | $ | 3,580 | | | $ | 3,425 | | | | | | | $ | 3,657 | | | | | | | $ | 155 | | | 4.5 | | | $ | (77) | | | (2.1) | | | | | |
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Net interest margin(1) | 3.03 | % | | 2.89 | % | | | | | | 2.90 | % | | | | | | 14 bps | | | | 13 bps | | | | | | |
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Average Balances(2) | | | | | | | | | | | | | | | | | | | | | | | | | |
Total earning assets | $ | 473,666 | | | $ | 476,111 | | | | | | | $ | 505,712 | | | | | | | $ | (2,445) | | | (0.5) | % | | $ | (32,046) | | | (6.3) | % | | | | |
Total interest-bearing liabilities | 343,145 | | | 347,121 | | | | | | | 363,754 | | | | | | | (3,976) | | | (1.1) | | | (20,609) | | | (5.7) | | | | | |
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Yields / Rates(1) | | | | | | | | | | | | | | | | | | | | | | | | | |
Total earning assets | 5.42 | % | | 5.26 | % | | | | | | 4.94 | % | | | | | | 16 bps | | | | 48 bps | | | | | | |
Total interest-bearing liabilities | 3.31 | | | 3.26 | | | | | | | 2.84 | | | | | | | 5 bps | | | | 47 bps | | | | | | |
(1)Amounts are on a taxable-equivalent basis utilizing the federal income tax rate of 21% for the periods presented. Interest income includes certain fees, deferred costs, and dividends.
(2)Excludes basis adjustments for fair value hedges.
Taxable-equivalent net interest income for the second quarter of 2024 was up $155 million, or 4.5%, compared to the first quarter of 2024 primarily due to the impacts of the proceeds from the sale of TIH and balance sheet repositioning. The net interest margin was 3.03%, up 14 basis points.
•Average earning assets decreased $2.4 billion, or 0.5%, primarily due to declines in average securities of $10.0 billion, or 7.6%, and total loans of $1.8 billion, or 0.6%, partially offset by growth in other earning assets of $8.7 billion, or 28%. The change in average securities and other earning assets (increase in balances held at the Federal Reserve) was driven by the balance sheet repositioning.
•The yield on the average total loan portfolio was 6.44%, up six basis points and the yield on the average securities portfolio was 2.77%, up 31 basis points primarily due to investment in higher yielding, shorter duration securities as part of the balance sheet repositioning.
•Average deposits decreased $1.0 billion, or 0.3%, and average long-term debt decreased $4.0 billion, or 9.8%.
•The average cost of total deposits was 2.09%, up six basis points and the average cost of short-term borrowings was 5.58%, down four basis points compared to the prior quarter. The average cost of long-term debt was 4.87%, up 13 basis points.
Taxable-equivalent net interest income for the second quarter of 2024 was down $77 million, or 2.1%, compared to the second quarter of 2023 primarily due to higher funding costs and lower earning assets, partially offset by the balance sheet repositioning. Net interest margin was 3.03%, up 13 basis points.
•Average earning assets decreased $32.0 billion, or 6.3%, primarily due to declines in average total loans of $20.7 billion, or 6.3%, and a decrease in average securities of $17.1 billion, or 12%, partially offset by growth in other earning assets of $4.6 billion, or 13%.
•The yield on the average total loan portfolio was 6.44%, up 37 basis points and the yield on the average securities portfolio was 2.77%, up 60 basis points, primarily reflecting higher market interest rates.
•Average deposits decreased $11.8 billion, or 2.9%, average short-term borrowings increased $2.0 billion, or 8.4%, and average long-term debt decreased $26.9 billion, or 42%.
•The average cost of total deposits was 2.09%, up 56 basis points. The average cost of short-term borrowings was 5.58%, up 39 basis points. The average cost of long-term debt was 4.87%, up 25 basis points. The increase in rates on deposits and other funding sources was largely attributable to the higher rate environment.
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Noninterest Income |
| Quarter Ended | | | | Change |
(Dollars in millions) | 2Q24 | | 1Q24 | | | | | | 2Q23 | | | | | | Link | | Like | | |
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Wealth management income | $ | 361 | | | $ | 356 | | | | | | | $ | 330 | | | | | | | $ | 5 | | | 1.4 | % | | $ | 31 | | | 9.4 | % | | | | |
Investment banking and trading income | 286 | | | 323 | | | | | | | 211 | | | | | | | (37) | | | (11.5) | | | 75 | | | 35.5 | | | | | |
Service charges on deposits | 232 | | | 225 | | | | | | | 240 | | | | | | | 7 | | | 3.1 | | | (8) | | | (3.3) | | | | | |
Card and payment related fees | 230 | | | 224 | | | | | | | 236 | | | | | | | 6 | | | 2.7 | | | (6) | | | (2.5) | | | | | |
Mortgage banking income | 112 | | | 97 | | | | | | | 99 | | | | | | | 15 | | | 15.5 | | | 13 | | | 13.1 | | | | | |
Lending related fees | 89 | | | 96 | | | | | | | 86 | | | | | | | (7) | | | (7.3) | | | 3 | | | 3.5 | | | | | |
Operating lease income | 50 | | | 59 | | | | | | | 64 | | | | | | | (9) | | | (15.3) | | | (14) | | | (21.9) | | | | | |
Securities gains (losses) | (6,650) | | | — | | | | | | | — | | | | | | | (6,650) | | | NM | | (6,650) | | | NM | | | | |
Other income | 78 | | | 66 | | | | | | | 114 | | | | | | | 12 | | | 18.2 | | | (36) | | | (31.6) | | | | | |
Total noninterest income | $ | (5,212) | | | $ | 1,446 | | | | | | | $ | 1,380 | | | | | | | $ | (6,658) | | | NM | | $ | (6,592) | | | (477.7) | | | | | |
Noninterest income was down $6.7 billion compared to the first quarter of 2024 primarily due to $6.7 billion of securities losses resulting from the balance sheet repositioning, lower investment banking and trading income, partially offset by higher mortgage banking income and other income. Excluding securities losses, noninterest income was $1.4 billion, flat compared to the first quarter of 2024.
•Investment banking and trading income decreased due to lower merger and acquisition fees, equity originations, and trading income, partially offset by higher loan syndications.
•Mortgage banking income increased due to valuation adjustments of the commercial mortgage servicing rights in the current quarter.
•Other income increased primarily due to higher income from certain investments.
Noninterest income was down $6.6 billion compared to the second quarter of 2023 primarily due to $6.7 billion of securities losses resulting from the balance sheet repositioning and lower other income, partially offset by higher investment banking and trading income and wealth management income. Excluding securities losses, noninterest income was up $58 million compared to the second quarter of 2023.
•Investment banking and trading income increased due to higher bond origination fees and loan syndications, partially offset by lower trading income.
•Wealth management income increased due to higher assets under management.
•Other income decreased due to lower income from certain equity investments.
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Noninterest Expense |
| Quarter Ended | | | | Change |
(Dollars in millions) | 2Q24 | | 1Q24 | | | | | | 2Q23 | | | | | | Link | | Like | | |
Personnel expense | $ | 1,661 | | | $ | 1,630 | | | | | | | $ | 1,705 | | | | | | | $ | 31 | | | 1.9 | % | | $ | (44) | | | (2.6) | % | | | | |
Professional fees and outside processing | 308 | | | 278 | | | | | | | 311 | | | | | | | 30 | | | 10.8 | | | (3) | | | (1.0) | | | | | |
Software expense | 218 | | | 224 | | | | | | | 223 | | | | | | | (6) | | | (2.7) | | | (5) | | | (2.2) | | | | | |
Net occupancy expense | 160 | | | 160 | | | | | | | 166 | | | | | | | — | | | — | | | (6) | | | (3.6) | | | | | |
Amortization of intangibles | 89 | | | 88 | | | | | | | 99 | | | | | | | 1 | | | 1.1 | | | (10) | | | (10.1) | | | | | |
Equipment expense | 89 | | | 88 | | | | | | | 87 | | | | | | | 1 | | | 1.1 | | | 2 | | | 2.3 | | | | | |
Marketing and customer development | 63 | | | 56 | | | | | | | 69 | | | | | | | 7 | | | 12.5 | | | (6) | | | (8.7) | | | | | |
Operating lease depreciation | 34 | | | 40 | | | | | | | 44 | | | | | | | (6) | | | (15.0) | | | (10) | | | (22.7) | | | | | |
Regulatory costs | 85 | | | 152 | | | | | | | 73 | | | | | | | (67) | | | (44.1) | | 12 | | | 16.4 | | | | |
Restructuring charges | 33 | | | 51 | | | | | | | 48 | | | | | | | (18) | | | (35.3) | | | (15) | | | (31.3) | | | | | |
Goodwill impairment | — | | | — | | | | | | | — | | | | | | | — | | | — | | — | | | — | | | | |
Other expense | 354 | | | 186 | | | | | | | 221 | | | | | | | 168 | | | 90.3 | | | 133 | | | 60.2 | | | | | |
Total noninterest expense | $ | 3,094 | | | $ | 2,953 | | | | | | | $ | 3,046 | | | | | | | $ | 141 | | | 4.8 | | | $ | 48 | | | 1.6 | | | | | |
Noninterest expense was up $141 million, or 4.8%, compared to the first quarter of 2024 due to a $150 million charitable contribution to the Truist Foundation (other expense), an increase in personnel expense and professional fees and outside processing expense, partially offset by a $62 million decline in the FDIC special assessment (regulatory costs) compared to the first quarter of 2024 and lower restructuring charges. Restructuring charges for both quarters include severance charges as well as costs associated with continued facilities optimization initiatives. Adjusted noninterest expense, which excludes the charitable contribution, the FDIC special assessment, restructuring charges, and the amortization of intangibles, increased $70 million, or 2.6%, compared to the prior quarter.
•Personnel expense increased due to seasonally higher equity-based compensation due to retirement-eligible teammates and higher medical claims, partially offset by seasonally lower payroll taxes and lower headcount.
•Professional fees and outside processing expense increased primarily due to higher investments in technology.
Noninterest expense was up $48 million, or 1.6%, compared to the second quarter of 2023 due to a $150 million charitable contribution to the Truist Foundation (other expense) and the FDIC special assessment adjustment in the second quarter of 2024 of $13 million (regulatory costs), partially offset by lower personnel expense. Adjusted noninterest expense, which excludes the charitable contribution, the FDIC special assessment adjustment, restructuring charges, the amortization of intangibles, and a small loss on the early extinguishment of debt in 2023, decreased $86 million, or 3.0%, compared to the earlier quarter.
•Personnel expense decreased due to lower headcount across most lines of business, partially offset by higher incentives and higher medical claims.
•Other expense increased due to the aforementioned charitable contribution, partially offset by lower pension expenses.
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Provision for Income Taxes | | | | |
| Quarter Ended | | | | Change |
(Dollars in millions) | 2Q24 | | 1Q24 | | | | | | 2Q23 | | | | | | Link | | Like | | |
Provision (benefit) for income taxes | $ | (1,324) | | | $ | 232 | | | | | | | $ | 230 | | | | | | | $ | (1,556) | | | NM | | $ | (1,554) | | | NM | | | | |
Effective tax rate | 25.3 | % | | 17.0 | % | | | | | | 16.4 | % | | | | | | NM | | | | NM | | | | | | |
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The higher effective tax rate in the current quarter compared to the first quarter of 2024 and second quarter of 2023 is due to a tax benefit on the pre-tax loss, which is driven by the discrete impact of the balance sheet repositioning of securities.
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Average Loans and Leases |
(Dollars in millions) | 2Q24 | | 1Q24 | | | | | | | | Change | | % Change |
| | | | | | | | | | | | | |
Commercial: | | | | | | | | | | | | | |
Commercial and industrial | $ | 157,043 | | | $ | 158,385 | | | | | | | | | $ | (1,342) | | | (0.8) | % |
CRE | 21,969 | | | 22,400 | | | | | | | | | (431) | | | (1.9) | |
Commercial construction | 7,645 | | | 7,134 | | | | | | | | | 511 | | | 7.2 | |
| | | | | | | | | | | | | |
Total commercial | 186,657 | | | 187,919 | | | | | | | | | (1,262) | | | (0.7) | |
Consumer: | | | | | | | | | | | | | |
Residential mortgage | 54,490 | | | 55,070 | | | | | | | | | (580) | | | (1.1) | |
Home equity | 9,805 | | | 9,930 | | | | | | | | | (125) | | | (1.3) | |
Indirect auto | 22,016 | | | 22,374 | | | | | | | | | (358) | | | (1.6) | |
Other consumer | 28,326 | | | 28,285 | | | | | | | | | 41 | | | 0.1 | |
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Total consumer | 114,637 | | | 115,659 | | | | | | | | | (1,022) | | | (0.9) | |
Credit card | 4,905 | | | 4,923 | | | | | | | | | (18) | | | (0.4) | |
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Total loans and leases held for investment | $ | 306,199 | | | $ | 308,501 | | | | | | | | | $ | (2,302) | | | (0.7) | |
Average loans held for investment decreased $2.3 billion, or 0.7%, compared to the prior quarter.
•Average commercial loans decreased 0.7% due to a decline in the commercial and industrial portfolio.
•Average consumer loans decreased 0.9% due to declines in the residential mortgage and indirect auto portfolios.
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Average Deposits |
(Dollars in millions) | 2Q24 | | 1Q24 | | | | | | | | Change | | % Change |
| | | | | | | | | | | | | |
Noninterest-bearing deposits | $ | 107,634 | | | $ | 108,888 | | | | | | | | | $ | (1,254) | | | (1.2) | % |
Interest checking | 103,894 | | | 103,537 | | | | | | | | | 357 | | | 0.3 | |
Money market and savings | 135,264 | | | 134,696 | | | | | | | | | 568 | | | 0.4 | |
Time deposits | 41,250 | | | 41,937 | | | | | | | | | (687) | | | (1.6) | |
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Total deposits | $ | 388,042 | | | $ | 389,058 | | | | | | | | | $ | (1,016) | | | (0.3) | |
Average deposits for the second quarter of 2024 were $388.0 billion, a decrease of $1.0 billion, or 0.3%, compared to the prior quarter.
Average noninterest-bearing deposits decreased 1.2% compared to the prior quarter and represented 27.7% of total deposits for the second quarter of 2024 compared to 28.0% for the first quarter of 2024. Average time deposits decreased 1.6%. Average money market and savings accounts and interest checking increased 0.4% and 0.3%, respectively.
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Capital Ratios |
| 2Q24 | | 1Q24 | | 4Q23 | | 3Q23 | | 2Q23 |
Risk-based: | (preliminary) | | | | | | | | |
CET1 | 11.6 | % | | 10.1 | % | | 10.1 | % | | 9.9 | % | | 9.6 | % |
Tier 1 | 13.2 | | | 11.7 | | | 11.6 | | | 11.4 | | | 11.1 | |
Total | 15.4 | | | 13.9 | | | 13.7 | | | 13.5 | | | 13.2 | |
Leverage | 10.5 | | | 9.5 | | | 9.3 | | | 9.2 | | | 8.8 | |
Supplementary leverage | 8.9 | | | 8.0 | | | 7.9 | | | 7.8 | | | 7.5 | |
Capital ratios significantly strengthened compared to the regulatory requirements for well capitalized banks. Truist’s CET1 ratio was 11.6% as of June 30, 2024, up 150 basis points compared to March 31, 2024 due to the sale of TIH and organic capital generation, partially offset by the balance sheet repositioning. Truist did not repurchase any shares in the second quarter of 2024. Truist's board of directors has authorized a $5 billion share repurchase program through 2026 as part of the Company's overall capital distribution strategy, with share repurchases expected to begin during the third quarter of 2024. Truist declared common dividends of $0.52 per share during the second quarter of 2024 and plans to maintain its current quarterly common stock dividend, subject to approval by its board of directors.
Truist completed the 2024 CCAR process and received a preliminary SCB requirement of 2.8% for the period October 1, 2024 to September 30, 2025, down 10 basis points from the SCB requirement for the period October 1, 2023 to September 30, 2024. The Federal Reserve will provide Truist with its final SCB requirement by August 31, 2024.
Truist’s average consolidated LCR was 110% for the three months ended June 30, 2024, compared to the regulatory minimum of 100%.
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Asset Quality | |
(Dollars in millions) | 2Q24 | | 1Q24 | | 4Q23 | | 3Q23 | | 2Q23 | |
Total nonperforming assets | $ | 1,476 | | | $ | 1,476 | | | $ | 1,488 | | | $ | 1,584 | | | $ | 1,583 | | |
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Total loans 90 days past due and still accruing | 489 | | | 538 | | | 534 | | | 574 | | | 662 | | |
Total loans 30-89 days past due and still accruing | 1,791 | | | 1,716 | | | 1,971 | | | 1,636 | | | 1,550 | | |
Nonperforming loans and leases as a percentage of loans and leases held for investment | 0.46 | % | | 0.45 | % | | 0.44 | % | | 0.46 | % | | 0.47 | % | |
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Loans 30-89 days past due and still accruing as a percentage of loans and leases | 0.59 | | | 0.56 | | | 0.63 | | | 0.52 | | | 0.48 | | |
Loans 90 days or more past due and still accruing as a percentage of loans and leases | 0.16 | | | 0.18 | | | 0.17 | | | 0.18 | | | 0.21 | | |
Loans 90 days or more past due and still accruing as a percentage of loans and leases, excluding government guaranteed | 0.04 | | | 0.04 | | | 0.04 | | | 0.04 | | | 0.04 | | |
Allowance for loan and lease losses as a percentage of loans and leases held for investment | 1.57 | | | 1.56 | | | 1.54 | | | 1.49 | | | 1.43 | | |
Ratio of allowance for loan and lease losses to net charge-offs | 2.7x | | 2.4x | | 2.7x | | 2.9x | | 2.6x | |
Ratio of allowance for loan and lease losses to nonperforming loans and leases held for investment | 3.4x | | 3.4x | | 3.5x | | 3.2x | | 3.0x | |
Applicable ratios are annualized.
Nonperforming assets totaled $1.5 billion at June 30, 2024, flat compared to March 31, 2024, as declines in the commercial and industrial and commercial construction portfolio were offset by an increase in the CRE portfolio. Nonperforming loans and leases held for investment were 0.46% of loans and leases held for investment at June 30, 2024, up one basis point compared to March 31, 2024.
Loans 90 days or more past due and still accruing totaled $489 million at June 30, 2024, down two basis points as a percentage of loans and leases compared with the prior quarter. Excluding government guaranteed loans, the ratio of loans 90 days or more past due and still accruing as a percentage of loans and leases was 0.04% at June 30, 2024, unchanged from March 31, 2024.
Loans 30-89 days past due and still accruing of $1.8 billion at June 30, 2024 were up $75 million, or three basis points as a percentage of loans and leases, compared to the prior quarter due to increases in the residential mortgage and indirect auto portfolios, partially offset by a decline in the commercial and industrial portfolio.
The allowance for credit losses was $5.1 billion and includes $4.8 billion for the allowance for loan and lease losses and $302 million for the reserve for unfunded commitments. The ALLL ratio was 1.57%, up one basis point compared with March 31, 2024. The ALLL covered nonperforming loans and leases held for investment 3.4X, flat compared to March 31, 2024. At June 30, 2024, the ALLL was 2.7X annualized net charge-offs, compared to 2.4X at March 31, 2024.
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Provision for Credit Losses |
| Quarter Ended | | | | Change |
(Dollars in millions) | 2Q24 | | 1Q24 | | | | | | 2Q23 | | | | | | Link | | Like | | |
Provision for credit losses | $ | 451 | | | $ | 500 | | | | | | | $ | 538 | | | | | | | $ | (49) | | | (9.8) | % | | $ | (87) | | | (16.2) | % | | | | |
Net charge-offs | 442 | | | 490 | | | | | | | 440 | | | | | | | (48) | | | (9.8) | | | 2 | | | 0.5 | | | | | |
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Net charge-offs as a percentage of average loans and leases | 0.58 | % | | 0.64 | % | | | | | | 0.54 | % | | | | | | (6) bps | | | | 4 bps | | | | | | |
Applicable ratios are annualized.
The provision for credit losses was $451 million compared to $500 million for the first quarter of 2024.
•The decrease in the current quarter provision expense primarily reflects stable credit performance and solid economic conditions.
•The net charge-off ratio for the current quarter was down compared to the first quarter of 2024 primarily driven by lower net charge-offs in the other consumer and indirect auto portfolios.
The provision for credit losses was $451 million compared to $538 million for the second quarter of 2023.
•The decrease in the current quarter provision expense primarily reflects a lower allowance build.
•The net charge-off ratio was up compared to the second quarter of 2023 primarily driven by higher net charge-offs in the CRE, other consumer, indirect auto, and credit card portfolios, partially offset by lower net charge-offs in the commercial and industrial portfolio. Additionally, the second quarter of 2023 included $98 million of charge-offs related to the sale of the student loan portfolio.
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Earnings Presentation and Quarterly Performance Summary |
Investors can access the live second quarter 2024 earnings call at 8 a.m. ET today by webcast or dial-in as follows:
Webcast: app.webinar.net/zVb4RPwq23Q
Dial-in: 1-877-883-0383, passcode 0130732
Additional details: The news release and presentation materials will be available at ir.truist.com under “Events & Presentations.” A replay of the call will be available on the website for 30 days.
The presentation, including an appendix reconciling non-GAAP disclosures, and Truist’s Second Quarter 2024 Quarterly Performance Summary, which contains detailed financial schedules, are available at https://ir.truist.com/earnings.
Truist Financial Corporation is a purpose-driven financial services company committed to inspiring and building better lives and communities. As a leading U.S. commercial bank, Truist has leading market share in many of the high-growth markets across the country. Truist offers a wide range of products and services through our wholesale and consumer businesses, including consumer and small business banking, commercial banking, corporate and investment banking, wealth management, payments, and specialized lending businesses. Headquartered in Charlotte, North Carolina, Truist is a top-10 commercial bank with total assets of $520 billion as of June 30, 2024. Truist Bank, Member FDIC. Learn more at Truist.com.
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Glossary of Defined Terms |
Term | Definition |
ACL | Allowance for credit losses |
ALLL | Allowance for loan and lease losses |
BVPS | Book value (common equity) per share |
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CEO | Chief Executive Officer |
CET1 | Common equity tier 1 |
CRE | Commercial real estate |
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FDIC | Federal Deposit Insurance Corporation |
FHLB | Federal Home Loan Bank |
GAAP | Accounting principles generally accepted in the United States of America |
HFI | Held for investment |
LCR | Liquidity Coverage Ratio |
Like | Compared to second quarter of 2023 |
Link | Compared to first quarter of 2024 |
NCO | Net charge-offs |
NIM | Net interest margin, computed on a TE basis |
NM | Not meaningful |
PPNR | Pre-provision net revenue |
ROCE | Return on average common equity |
ROTCE | Return on average tangible common equity |
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TBVPS | Tangible book value per common share |
TE | Taxable-equivalent |
TIH | Truist Insurance Holdings |
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Non-GAAP Financial Information |
This news release contains financial information and performance measures determined by methods other than in accordance with GAAP. Truist’s management uses these “non-GAAP” measures in their analysis of Truist’s performance and the efficiency of its operations. Management believes these non-GAAP measures provide a greater understanding of ongoing operations, enhance comparability of results with prior periods and demonstrate the effects of significant items in the current period. The Corporation believes a meaningful analysis of its financial performance requires an understanding of the factors underlying that performance. These disclosures should not be viewed as a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Below is a listing of the types of non-GAAP measures used in this news release:
•Adjusted net income available to common shareholders and adjusted diluted EPS - Adjusted net income available to common shareholders and diluted earnings per share are non-GAAP in that these measures exclude selected items, net of tax. Truist’s management uses these measures in their analysis of the Corporation’s performance. Truist’s management believes these measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods, as well as demonstrate the effects of significant gains and charges.
•Adjusted efficiency ratio, adjusted fee income ratio, and related measures - The adjusted efficiency ratio is non-GAAP in that it excludes securities gains and losses, amortization of intangible assets, restructuring charges, and other selected items. Adjusted revenue and adjusted noninterest expense are related measures used to calculate the adjusted efficiency ratio. Additionally, the adjusted fee income ratio is non-GAAP in that it excludes securities gains and losses and other selected items, and is calculated using adjusted revenue and adjusted noninterest income. Adjusted revenue and adjusted noninterest income exclude securities gains and losses and other selected items. Adjusted noninterest expense excludes amortization of intangible assets, restructuring charges, and other selected items. Truist’s management calculated these measures based on the Company’s continuing operations. Truist’s management uses these measures in their analysis of the Corporation’s performance. Truist’s management believes these measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods, as well as demonstrate the effects of significant gains and charges.
•PPNR - Pre-provision net revenue is a non-GAAP measure that adjusts net income determined in accordance with GAAP to exclude the impact of the provision for credit losses and provision for income taxes. Adjusted pre-provision net revenue is a non-GAAP measure that additionally excludes securities gains (losses), restructuring charges, amortization of intangible assets, and other selected items. Truist’s management calculated these measures based on the Company’s continuing operations. Truist’s management believes these measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods.
•Tangible Common Equity and Related Measures - Tangible common equity and related measures are non-GAAP measures that exclude the impact of intangible assets, net of deferred taxes, and their related amortization and impairment charges. These measures are useful for evaluating the performance of a business consistently, whether acquired or developed internally. Truist’s management uses these measures to assess profitability, returns relative to balance sheet risk, and shareholder value.
A reconciliation of each of these non-GAAP measures to the most directly comparable GAAP measure is included in the appendix to Truist’s Second Quarter 2024 Earnings Presentation, which is available at https://ir.truist.com/earnings.
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Forward Looking Statements |
From time to time we have made, and in the future will make, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements often use words such as “believe,” “expect,” “anticipate,” “intend,” “pursue,” “seek,” “continue,” “estimate,” “project,” “outlook,” “forecast,” “potential,” “target,” “objective,” “trend,” “plan,” “goal,” “initiative,” “priorities,” or other words of comparable meaning or future-tense or conditional verbs such as “may,” “will,” “should,” “would,” or “could.” Forward-looking statements convey our expectations, intentions, or forecasts about future events, circumstances, or results.
This news release, including any information incorporated by reference herein, contains forward-looking statements. We also may make forward-looking statements in other documents that are filed or furnished with the SEC. In addition, we may make forward-looking statements orally or in writing to investors, analysts, members of the media, and others. All forward- looking statements, by their nature, are subject to assumptions, risks, and uncertainties, which may change over time and many of which are beyond our control. You should not rely on any forward-looking statement as a prediction or guarantee about the future. Actual future objectives, strategies, plans, prospects, performance, conditions, and results may differ materially from those set forth in any forward-looking statement. While no list of assumptions, risks, and uncertainties could be complete, some of the factors that may cause actual results or other future events or circumstances to differ from those in forward-looking statements include:
•evolving political, business, economic, and market conditions at local, regional, national, and international levels;
•monetary, fiscal, and trade laws or policies, including as a result of actions by governmental agencies, central banks, or supranational authorities;
•the legal, regulatory, and supervisory environment, including changes in financial-services legislation, regulation, policies, or government officials or other personnel;
•our ability to address heightened scrutiny and expectations from supervisory or other governmental authorities and to timely and credibly remediate related concerns or deficiencies;
•judicial, regulatory, and administrative inquiries, examinations, investigations, proceedings, disputes, or rulings that create uncertainty for or are adverse to us or the financial-services industry;
•the outcomes of judicial, regulatory, and administrative inquiries, examinations, investigations, proceedings, or disputes to which we are or may be subject and our ability to absorb and address any damages or other remedies that are sought or awarded and any collateral consequences;
•evolving accounting standards and policies;
•the adequacy of our corporate governance, risk-management framework, compliance programs, and internal controls over financial reporting, including our ability to control lapses or deficiencies in financial reporting, to make appropriate estimates, or to effectively mitigate or manage operational risk;
•any instability or breakdown in the financial system, including as a result of the actual or perceived soundness of another financial institution or another participant in the financial system;
•disruptions and shifts in investor sentiment or behavior in the securities, capital, or other financial markets, including financial or systemic shocks and volatility or changes in market liquidity, interest or currency rates, or valuations;
•our ability to cost-effectively fund our businesses and operations, including by accessing long- and short-term funding and liquidity and by retaining and growing client deposits;
•changes in any of our credit ratings;
•our ability to manage any unexpected outflows of uninsured deposits and avoid selling investment securities or other assets at an unfavorable time or at a loss;
•negative market perceptions of our investment portfolio or its value;
•adverse publicity or other reputational harm to us, our service providers, or our senior officers;
•business and consumer sentiment, preferences, or behavior, including spending, borrowing, or saving by businesses or households;
•our ability to execute on strategic and operational plans, including simplifying our businesses, achieving cost-savings targets and lowering expense growth, accelerating franchise momentum, and improving our capital position;
•changes in our corporate and business strategies, the composition of our assets, or the way in which we fund those assets;
•our ability to successfully make and integrate acquisitions and to effect divestitures, including the ability to successfully deploy the proceeds from the sale of TIH and perform our obligations under the transition services arrangements supporting TIH in a cost-effective and efficient manner;
•our ability to develop, maintain, and market our products or services or to absorb unanticipated costs or liabilities associated with those products or services;
•our ability to innovate, to anticipate the needs of current or future clients, to successfully compete, to increase or hold market share in changing competitive environments, or to deal with pricing or other competitive pressures;
•our ability to maintain secure and functional financial, accounting, technology, data processing, or other operating systems or infrastructure, including those that safeguard personal and other sensitive information;
•our ability to appropriately underwrite loans that we originate or purchase and to otherwise manage credit risk, including in connection with commercial and consumer mortgage loans;
•our ability to satisfactorily and profitably perform loan servicing and similar obligations;
•the credit, liquidity, or other financial condition of our clients, counterparties, service providers, or competitors;
•our ability to effectively deal with economic, business, or market slowdowns or disruptions;
•the efficacy of our methods or models in assessing business strategies or opportunities or in valuing, measuring, estimating, monitoring, or managing positions or risk;
•our ability to keep pace with changes in technology that affect us or our clients, counterparties, service providers, or competitors or to maintain rights or interests in associated intellectual property;
•our ability to attract, hire, and retain key teammates and to engage in adequate succession planning;
•the performance and availability of third-party service providers on whom we rely in delivering products and services to our clients and otherwise in conducting our business and operations;
•our ability to detect, prevent, mitigate, and otherwise manage the risk of fraud or misconduct by internal or external parties; our ability to manage and mitigate physical-security and cybersecurity risks, including denial-of-service attacks, hacking, phishing, social-engineering attacks, malware intrusion, data-corruption attempts, system breaches, identity theft, ransomware attacks, environmental conditions, and intentional acts of destruction;
•natural or other disasters, calamities, and conflicts, including terrorist events, cyber-warfare, and pandemics;
•widespread outages of operational, communication, and other systems;
•our ability to maintain appropriate ESG practices, oversight, and disclosures;
•policies and other actions of governments to manage and mitigate climate and related environmental risks, and the effects of climate change or the transition to a lower-carbon economy on our business, operations, and reputation; and
•other assumptions, risks, or uncertainties described in the Risk Factors (Item 1A), Management’s Discussion and Analysis of Financial Condition and Results of Operations (Item 7), or the Notes to the Consolidated Financial Statements (Item 8) in our Annual Report on Form 10-K or described in any of the Company’s subsequent quarterly or current reports.
Any forward-looking statement made by us or on our behalf speaks only as of the date that it was made. We do not undertake to update any forward-looking statement to reflect the impact of events, circumstances, or results that arise after the date that the statement was made, except as required by applicable securities laws. You, however, should consult further disclosures (including disclosures of a forward-looking nature) that we may make in any subsequent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, or Current Report on Form 8-K.
Quarterly Performance Summary
Truist Financial Corporation
Second Quarter 2024
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Table of Contents | |
Quarterly Performance Summary | |
Truist Financial Corporation | |
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Financial Highlights | |
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Consolidated Statements of Income | |
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Consolidated Ending Balance Sheets | |
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Average Balances and Rates - Quarters | |
Average Balances and Rates - Year-To-Date | |
Credit Quality | |
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Segment Financial Performance | |
Capital Information | |
Selected Mortgage Banking Information & Additional Information | |
Selected Items | |
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Financial Highlights
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| Quarter Ended | | Year-to-Date | | |
(Dollars in millions, except per share data, shares in thousands) | June 30 | | March 31 | | Dec. 31 | | Sept. 30 | | June 30 | | June 30 | | June 30 | | |
2024 | | 2024 | | 2023 | | 2023 | | 2023 | | 2024 | | 2023 | | |
Summary Income Statement | | | | | | | | | | | | | | | |
Interest income - taxable equivalent | $ | 6,404 | | | $ | 6,237 | | | $ | 6,324 | | | $ | 6,284 | | | $ | 6,229 | | | $ | 12,641 | | | $ | 12,064 | | | |
Interest expense | 2,824 | | | 2,812 | | | 2,747 | | | 2,692 | | | 2,572 | | | 5,636 | | | 4,489 | | | |
Net interest income - taxable equivalent | 3,580 | | | 3,425 | | | 3,577 | | | 3,592 | | | 3,657 | | | 7,005 | | | 7,575 | | | |
Less: Taxable-equivalent adjustment | 53 | | | 53 | | | 58 | | | 57 | | | 54 | | | 106 | | | 105 | | | |
Net interest income | 3,527 | | | 3,372 | | | 3,519 | | | 3,535 | | | 3,603 | | | 6,899 | | | 7,470 | | | |
Provision for credit losses | 451 | | | 500 | | | 572 | | | 497 | | | 538 | | | 951 | | | 1,040 | | | |
Net interest income after provision for credit losses | 3,076 | | | 2,872 | | | 2,947 | | | 3,038 | | | 3,065 | | | 5,948 | | | 6,430 | | | |
Noninterest income | (5,212) | | | 1,446 | | | 1,363 | | | 1,334 | | | 1,380 | | | (3,766) | | | 2,801 | | | |
Noninterest expense | 3,094 | | | 2,953 | | | 9,557 | | | 3,060 | | | 3,046 | | | 6,047 | | | 6,061 | | | |
Income (loss) before income taxes | (5,230) | | | 1,365 | | | (5,247) | | | 1,312 | | | 1,399 | | | (3,865) | | | 3,170 | | | |
Provision (benefit) for income taxes | (1,324) | | | 232 | | | (56) | | | 203 | | | 230 | | | (1,092) | | | 591 | | | |
Net income (loss) from continuing operations(1) | (3,906) | | | 1,133 | | | (5,191) | | | 1,109 | | | 1,169 | | | (2,773) | | | 2,579 | | | |
Net income (loss) from discontinued operations(1) | 4,828 | | | 67 | | | 101 | | | 74 | | | 176 | | | 4,895 | | | 281 | | | |
Net income (loss) | 922 | | | 1,200 | | | (5,090) | | | 1,183 | | | 1,345 | | | 2,122 | | | 2,860 | | | |
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Noncontrolling interests from discontinued operations(1) | 19 | | | 3 | | | — | | | 6 | | | 36 | | | 22 | | | 38 | | | |
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Preferred stock dividends and other | 77 | | | 106 | | | 77 | | | 106 | | | 75 | | | 183 | | | 178 | | | |
Net income (loss) available to common shareholders | 826 | | | 1,091 | | | (5,167) | | | 1,071 | | | 1,234 | | | 1,917 | | | 2,644 | | | |
Net income available to common shareholders - adjusted(2) | 1,235 | | | 1,216 | | | 1,094 | | | 1,071 | | | 1,234 | | | 2,451 | | | 2,644 | | | |
Additional Income Statement Information | | | | | | | | | | | | | | | |
Revenue - taxable equivalent | (1,632) | | | 4,871 | | | 4,940 | | | 4,926 | | | 5,037 | | | 3,239 | | | 10,376 | | | |
Pre-provision net revenue - unadjusted(2) | (4,726) | | | 1,918 | | | (4,617) | | | 1,866 | | | 1,991 | | | (2,808) | | | 4,315 | | | |
Pre-provision net revenue - adjusted(2) | 2,209 | | | 2,132 | | | 2,221 | | | 2,025 | | | 2,142 | | | 4,341 | | | 4,622 | | | |
Key Metrics | | | | | | | | | | | | | | | |
Earnings: | | | | | | | | | | | | | | | |
Earnings per share-basic from continuing operations(1)(3) | $ | (2.98) | | | $ | 0.77 | | | $ | (3.95) | | | $ | 0.75 | | | $ | 0.82 | | | $ | (2.21) | | | $ | 1.80 | | | |
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Earnings per share-basic | 0.62 | | | 0.82 | | | (3.87) | | | 0.80 | | | 0.93 | | | $ | 1.43 | | | $ | 1.99 | | | |
Earnings per share-diluted from continuing operations(1)(3) | (2.98) | | | 0.76 | | | (3.95) | | | 0.75 | | | 0.82 | | | (2.21) | | | 1.79 | | | |
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Earnings per share-diluted | 0.62 | | | 0.81 | | | (3.87) | | | 0.80 | | | 0.92 | | | 1.43 | | | 1.98 | | | |
Earnings per share-adjusted diluted(2) | 0.91 | | | 0.90 | | | 0.81 | | | 0.80 | | | 0.92 | | | 1.82 | | | 1.98 | | | |
Cash dividends declared per share | 0.52 | | | 0.52 | | | 0.52 | | | 0.52 | | | 0.52 | | | 1.04 | | | 1.04 | | | |
Common shareholders’ equity per share | 42.71 | | | 38.97 | | | 39.31 | | | 41.37 | | | 42.68 | | | | | | | |
Tangible common shareholders’ equity per share(2) | 28.91 | | | 21.64 | | | 21.83 | | | 19.25 | | | 20.44 | | | | | | | |
End of period shares outstanding | 1,338,223 | | | 1,338,096 | | | 1,333,743 | | | 1,333,668 | | | 1,331,976 | | | | | | | |
Weighted average shares outstanding-basic | 1,338,149 | | | 1,335,091 | | | 1,333,703 | | | 1,333,522 | | | 1,331,953 | | | 1,336,620 | | | 1,330,286 | | | |
Weighted average shares outstanding-diluted | 1,338,149 | | | 1,346,904 | | | 1,333,703 | | | 1,340,574 | | | 1,337,307 | | | 1,336,620 | | | 1,338,346 | | | |
Return on average assets | 0.70 | % | | 0.91 | % | | (3.74) | % | | 0.86 | % | | 0.95 | % | | 0.81 | % | | 1.02 | % | | |
Return on average common shareholders’ equity | 6.1 | | | 8.4 | | | (36.6) | | | 7.5 | | | 8.6 | | | 7.2 | | | 9.5 | | | |
Return on average tangible common shareholders’ equity(2) | 10.4 | | | 16.3 | | | 15.0 | | | 17.3 | | | 19.4 | | | 12.5 | | | 21.6 | | | |
Net interest margin - taxable equivalent(3) | 3.03 | | | 2.89 | | | 2.96 | | | 2.93 | | | 2.90 | | | 2.96 | | | 3.03 | | | |
Efficiency ratio-GAAP(3) | NM | | 61.3 | | | 195.8 | | | 62.9 | | | 61.1 | | | NM | | 59.0 | | | |
Efficiency ratio-adjusted(2)(3) | 56.0 | | | 56.2 | | | 55.0 | | | 58.9 | | | 57.5 | | | 56.1 | | | 55.4 | | | |
Fee income ratio-GAAP(3) | NM | | 30.0 | | | 27.9 | | | 27.4 | | | 27.7 | | | NM | | 27.3 | | | |
Fee income ratio-adjusted(2)(3) | 28.7 | | | 29.7 | | | 27.6 | | | 27.1 | | | 27.4 | | | 29.2 | | | 27.0 | | | |
Credit Quality | | | | | | | | | | | | | | | |
Nonperforming loans and leases as a percentage of LHFI | 0.46 | % | | 0.45 | % | | 0.44 | % | | 0.46 | % | | 0.47 | % | | 0.28 | % | | 0.29 | % | | |
Net charge-offs as a percentage of average LHFI | 0.58 | | | 0.64 | | | 0.57 | | | 0.51 | | | 0.54 | | | 0.61 | % | | 0.46 | % | | |
Allowance for loan and lease losses as a percentage of LHFI | 1.57 | | | 1.56 | | | 1.54 | | | 1.49 | | | 1.43 | | | | | | | |
Ratio of allowance for loan and lease losses to nonperforming LHFI | 3.4x | | 3.4x | | 3.5x | | 3.2x | | 3.0x | | | | | | |
Average Balances | | | | | | | | | | | | | | | |
Assets | $ | 526,894 | | | $ | 531,002 | | | $ | 539,656 | | | $ | 547,704 | | | $ | 565,822 | | | $ | 528,948 | | | $ | 562,741 | | | |
Securities(4) | 121,318 | | | 131,273 | | | 133,390 | | | 135,527 | | | 138,393 | | | 126,295 | | | 139,466 | | | |
Loans and leases | 307,583 | | | 309,426 | | | 313,832 | | | 319,881 | | | 328,258 | | | 308,505 | | | 327,905 | | | |
Deposits | 388,042 | | | 389,058 | | | 395,333 | | | 401,038 | | | 399,826 | | | 388,550 | | | 404,118 | | | |
Common shareholders’ equity | 54,863 | | | 52,167 | | | 56,061 | | | 56,472 | | | 57,302 | | | 53,515 | | | 56,346 | | | |
Total shareholders’ equity | 61,677 | | | 59,011 | | | 62,896 | | | 63,312 | | | 64,101 | | | 60,344 | | | 63,095 | | | |
Period-End Balances | | | | | | | | | | | | | | | |
Assets | $ | 519,853 | | | $ | 534,959 | | | $ | 535,349 | | | $ | 542,707 | | | $ | 554,549 | | | | | | | |
Securities(4) | 108,416 | | | 119,419 | | | 121,473 | | | 120,059 | | | 124,923 | | | | | | | |
Loans and leases | 307,149 | | | 308,477 | | | 313,341 | | | 317,112 | | | 324,015 | | | | | | | |
Deposits | 385,411 | | | 394,265 | | | 395,865 | | | 400,024 | | | 406,043 | | | | | | | |
Common shareholders’ equity | 57,154 | | | 52,148 | | | 52,428 | | | 55,167 | | | 56,853 | | | | | | | |
Total shareholders’ equity | 63,827 | | | 59,053 | | | 59,253 | | | 62,007 | | | 63,681 | | | | | | | |
Capital and Liquidity Ratios | (preliminary) | | | | | | | | | | | | | | |
Common equity tier 1 | 11.6 | % | | 10.1 | % | | 10.1 | % | | 9.9 | % | | 9.6 | % | | | | | | |
Tier 1 | 13.2 | | | 11.7 | | | 11.6 | | | 11.4 | | | 11.1 | | | | | | | |
Total | 15.4 | | | 13.9 | | | 13.7 | | | 13.5 | | | 13.2 | | | | | | | |
Leverage | 10.5 | | | 9.5 | | | 9.3 | | | 9.2 | | | 8.8 | | | | | | | |
Supplementary leverage | 8.9 | | | 8.0 | | | 7.9 | | | 7.8 | | | 7.5 | | | | | | | |
Liquidity coverage ratio | 110 | | | 115 | | | 112 | | | 110 | | | 112 | | | | | | | |
| | | | | | | | | | | | | | | |
| | |
|
| | |
| | |
| | | | | | |
Applicable ratios are annualized.
(1)On February 20, 2024, the Company entered into an agreement to sell the remaining 80% stake of the common equity in TIH to an investor group, representing substantially all of the Company’s IH segment. The sale represents a material strategic shift for the Company and as a result, the Company recast results for all periods presented under the discontinued operations basis of presentation. On May 6, 2024, the Company completed the sale resulting in an after-tax gain of $4.8 billion.
(2)Represents a non-GAAP measure. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are included in the appendix to Truist’s Second Quarter 2024 Earnings Presentation.
(3)This metric is calculated based on continuing operations.
(4)Includes AFS and HTM securities. Average balances reflect AFS and HTM securities at amortized cost. Period-end balances reflect AFS securities at fair value and HTM securities at amortized cost.
Consolidated Statements of Income
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Quarter Ended | | Year-to-Date |
| June 30 | | March 31 | | Dec. 31 | | Sept. 30 | | June 30 | | June 30 | | June 30 |
(Dollars in millions, except per share data, shares in thousands) | 2024 | | 2024 | | 2023 | | 2023 | | 2023 | | 2024 | | 2023 |
Interest Income | | | | | | | | | | | | | |
Interest and fees on loans and leases | $ | 4,879 | | | $ | 4,865 | | | $ | 4,971 | | | $ | 4,976 | | | $ | 4,915 | | | $ | 9,744 | | | $ | 9,571 | |
Interest on securities | 838 | | | 805 | | | 802 | | | 763 | | | 749 | | | 1,643 | | | 1,501 | |
Interest on other earning assets | 634 | | | 514 | | | 493 | | | 488 | | | 511 | | | 1,148 | | | 887 | |
Total interest income | 6,351 | | | 6,184 | | | 6,266 | | | 6,227 | | | 6,175 | | | 12,535 | | | 11,959 | |
Interest Expense | | | | | | | | | | | | | |
Interest on deposits | 2,016 | | | 1,964 | | | 1,917 | | | 1,858 | | | 1,527 | | | 3,980 | | | 2,652 | |
Interest on long-term debt | 446 | | | 482 | | | 476 | | | 491 | | | 734 | | | 928 | | | 1,248 | |
Interest on other borrowings | 362 | | | 366 | | | 354 | | | 343 | | | 311 | | | 728 | | | 589 | |
Total interest expense | 2,824 | | | 2,812 | | | 2,747 | | | 2,692 | | | 2,572 | | | 5,636 | | | 4,489 | |
Net Interest Income | 3,527 | | | 3,372 | | | 3,519 | | | 3,535 | | | 3,603 | | | 6,899 | | | 7,470 | |
Provision for credit losses | 451 | | | 500 | | | 572 | | | 497 | | | 538 | | | 951 | | | 1,040 | |
Net Interest Income After Provision for Credit Losses | 3,076 | | | 2,872 | | | 2,947 | | | 3,038 | | | 3,065 | | | 5,948 | | | 6,430 | |
Noninterest Income | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Wealth management income | 361 | | | 356 | | | 346 | | | 343 | | | 330 | | | 717 | | | 669 | |
Investment banking and trading income | 286 | | | 323 | | | 165 | | | 185 | | | 211 | | | 609 | | | 472 | |
Service charges on deposits | 232 | | | 225 | | | 229 | | | 154 | | | 240 | | | 457 | | | 490 | |
Card and payment related fees | 230 | | | 224 | | | 232 | | | 238 | | | 236 | | | 454 | | | 466 | |
Mortgage banking income | 112 | | | 97 | | | 94 | | | 102 | | | 99 | | | 209 | | | 241 | |
Lending related fees | 89 | | | 96 | | | 153 | | | 102 | | | 86 | | | 185 | | | 192 | |
Operating lease income | 50 | | | 59 | | | 60 | | | 63 | | | 64 | | | 109 | | | 131 | |
Securities gains (losses) | (6,650) | | | — | | | — | | | — | | | — | | | (6,650) | | | — | |
Other income | 78 | | | 66 | | | 84 | | | 147 | | | 114 | | | 144 | | | 140 | |
Total noninterest income | (5,212) | | | 1,446 | | | 1,363 | | | 1,334 | | | 1,380 | | | (3,766) | | | 2,801 | |
Noninterest Expense | | | | | | | | | | | | | |
Personnel expense | 1,661 | | | 1,630 | | | 1,474 | | | 1,669 | | | 1,705 | | | 3,291 | | | 3,373 | |
Professional fees and outside processing | 308 | | | 278 | | | 305 | | | 289 | | | 311 | | | 586 | | | 598 | |
Software expense | 218 | | | 224 | | | 223 | | | 222 | | | 223 | | | 442 | | | 423 | |
Net occupancy expense | 160 | | | 160 | | | 159 | | | 164 | | | 166 | | | 320 | | | 335 | |
Amortization of intangibles | 89 | | | 88 | | | 98 | | | 98 | | | 99 | | | 177 | | | 199 | |
Equipment expense | 89 | | | 88 | | | 103 | | | 89 | | | 87 | | | 177 | | | 189 | |
Marketing and customer development | 63 | | | 56 | | | 53 | | | 70 | | | 69 | | | 119 | | | 137 | |
Operating lease depreciation | 34 | | | 40 | | | 42 | | | 43 | | | 44 | | | 74 | | | 90 | |
Regulatory costs | 85 | | | 152 | | | 599 | | | 77 | | | 73 | | | 237 | | | 148 | |
Restructuring charges | 33 | | | 51 | | | 155 | | | 61 | | | 48 | | | 84 | | | 104 | |
Goodwill impairment | — | | | — | | | 6,078 | | | — | | | — | | | — | | | — | |
Other expense | 354 | | | 186 | | | 268 | | | 278 | | | 221 | | | 540 | | | 465 | |
Total noninterest expense | 3,094 | | | 2,953 | | | 9,557 | | | 3,060 | | | 3,046 | | | 6,047 | | | 6,061 | |
Earnings | | | | | | | | | | | | | |
Income (loss) before income taxes | (5,230) | | | 1,365 | | | (5,247) | | | 1,312 | | | 1,399 | | | (3,865) | | | 3,170 | |
Provision (benefit) for income taxes | (1,324) | | | 232 | | | (56) | | | 203 | | | 230 | | | (1,092) | | | 591 | |
Net income (loss) from continuing operations(1) | (3,906) | | | 1,133 | | | (5,191) | | | 1,109 | | | 1,169 | | | (2,773) | | | 2,579 | |
Net income from discontinued operations(1) | 4,828 | | | 67 | | | 101 | | | 74 | | | 176 | | | 4,895 | | | 281 | |
Net income (loss) | 922 | | | 1,200 | | | (5,090) | | | 1,183 | | | 1,345 | | | 2,122 | | | 2,860 | |
| | | | | | | | | | | | | |
Noncontrolling interests from discontinuing operations(1) | 19 | | | 3 | | | — | | | 6 | | | 36 | | | 22 | | | 38 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Preferred stock dividends and other | 77 | | | 106 | | | 77 | | | 106 | | | 75 | | | 183 | | | 178 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Net income (loss) available to common shareholders | $ | 826 | | | $ | 1,091 | | | $ | (5,167) | | | $ | 1,071 | | | $ | 1,234 | | | $ | 1,917 | | | $ | 2,644 | |
| | | | | | | | | | | | | |
Earnings Per Common Share | | | | | | | | | | | | | |
Basic earnings from continuing operations(1) | $ | (2.98) | | | $ | 0.77 | | | $ | (3.95) | | | $ | 0.75 | | | $ | 0.82 | | | $ | (2.21) | | | $ | 1.80 | |
| | | | | | | | | | | | | |
Basic earnings | 0.62 | | | 0.82 | | | (3.87) | | | 0.80 | | | 0.93 | | | $ | 1.43 | | | 1.99 | |
Diluted earnings from continuing operations(1) | (2.98) | | | 0.76 | | | (3.95) | | | 0.75 | | | 0.82 | | | (2.21) | | | 1.79 | |
| | | | | | | | | | | | | |
Diluted earnings | 0.62 | | | 0.81 | | | (3.87) | | | 0.80 | | | 0.92 | | | 1.43 | | | 1.98 | |
Weighted Average Shares Outstanding | | | | | | | | | | | | | |
Basic | 1,338,149 | | | 1,335,091 | | | 1,333,703 | | | 1,333,522 | | | 1,331,953 | | | 1,336,620 | | | 1,330,286 | |
Diluted | 1,338,149 | | | 1,346,904 | | | 1,333,703 | | | 1,340,574 | | | 1,337,307 | | | 1,336,620 | | | 1,338,346 | |
| | | | | | | | | | | | | |
|
(1)On February 20, 2024, the Company entered into an agreement to sell the remaining 80% stake of the common equity in TIH to an investor group, representing substantially all of the Company’s IH segment. The sale represents a material strategic shift for the Company and as a result, the Company recast results for all periods presented under the discontinued operations basis of presentation. On May 6, 2024, the Company completed the sale resulting in an after-tax gain of $4.8 billion.
Consolidated Ending Balance Sheets - Five Quarter Trend
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| June 30 | | March 31 | | Dec. 31 | | Sept. 30 | | June 30 | |
(Dollars in millions) | 2024 | | 2024 | | 2023 | | 2023 | | 2023 | |
Assets | | | | | | | | | | |
Cash and due from banks | $ | 5,204 | | | $ | 5,040 | | | $ | 5,000 | | | $ | 5,090 | | | $ | 4,733 | | |
Interest-bearing deposits with banks | 35,675 | | | 29,510 | | | 25,230 | | | 24,305 | | | 24,934 | | |
Securities borrowed or purchased under resale agreements | 2,338 | | | 2,091 | | | 2,378 | | | 2,018 | | | 2,315 | | |
Trading assets at fair value | 5,558 | | | 5,268 | | | 4,332 | | | 4,384 | | | 4,097 | | |
Securities available for sale at fair value | 55,969 | | | 66,050 | | | 67,366 | | | 65,117 | | | 68,965 | | |
Securities held to maturity at amortized cost | 52,447 | | | 53,369 | | | 54,107 | | | 54,942 | | | 55,958 | | |
Loans and leases: | | | | | | | | | | |
Commercial: | | | | | | | | | | |
Commercial and industrial | 156,400 | | | 157,669 | | | 160,788 | | | 162,330 | | | 167,153 | | |
CRE | 21,730 | | | 22,142 | | | 22,570 | | | 22,736 | | | 22,825 | | |
Commercial construction | 7,787 | | | 7,472 | | | 6,683 | | | 6,343 | | | 5,943 | | |
| | | | | | | | | | |
Consumer: | | | | | | | | | | |
Residential mortgage | 54,344 | | | 54,886 | | | 55,492 | | | 56,013 | | | 56,476 | | |
Home equity | 9,772 | | | 9,825 | | | 10,053 | | | 10,160 | | | 10,348 | | |
Indirect auto | 21,994 | | | 22,145 | | | 22,727 | | | 24,084 | | | 25,759 | | |
Other consumer | 28,677 | | | 28,096 | | | 28,647 | | | 29,105 | | | 28,755 | | |
| | | | | | | | | | |
Credit card | 4,988 | | | 4,989 | | | 5,101 | | | 4,928 | | | 4,833 | | |
| | | | | | | | | | |
Total loans and leases held for investment | 305,692 | | | 307,224 | | | 312,061 | | | 315,699 | | | 322,092 | | |
Loans held for sale | 1,457 | | | 1,253 | | | 1,280 | | | 1,413 | | | 1,923 | | |
Total loans and leases | 307,149 | | | 308,477 | | | 313,341 | | | 317,112 | | | 324,015 | | |
Allowance for loan and lease losses | (4,808) | | | (4,803) | | | (4,798) | | | (4,693) | | | (4,606) | | |
Premises and equipment | 3,244 | | | 3,274 | | | 3,298 | | | 3,319 | | | 3,379 | | |
Goodwill | 17,157 | | | 17,157 | | | 17,156 | | | 23,234 | | | 23,235 | | |
Core deposit and other intangible assets | 1,729 | | | 1,816 | | | 1,909 | | | 2,011 | | | 2,111 | | |
Loan servicing rights at fair value | 3,410 | | | 3,417 | | | 3,378 | | | 3,537 | | | 3,497 | | |
Other assets | 34,781 | | | 36,521 | | | 34,997 | | | 34,858 | | | 33,864 | | |
Assets of discontinued operations(1) | — | | | 7,772 | | | 7,655 | | | 7,473 | | | 8,052 | | |
Total assets | $ | 519,853 | | | $ | 534,959 | | | $ | 535,349 | | | $ | 542,707 | | | $ | 554,549 | | |
Liabilities | | | | | | | | | | |
Deposits: | | | | | | | | | | |
Noninterest-bearing deposits | $ | 107,310 | | | $ | 110,901 | | | $ | 111,624 | | | $ | 116,674 | | | $ | 121,831 | | |
Interest checking | 102,654 | | | 108,329 | | | 104,757 | | | 103,288 | | | 106,471 | | |
Money market and savings | 136,989 | | | 133,176 | | | 135,923 | | | 137,914 | | | 135,514 | | |
Time deposits | 38,458 | | | 41,859 | | | 43,561 | | | 42,148 | | | 42,227 | | |
| | | | | | | | | | |
Total deposits | 385,411 | | | 394,265 | | | 395,865 | | | 400,024 | | | 406,043 | | |
Short-term borrowings | 22,816 | | | 26,329 | | | 24,828 | | | 23,485 | | | 24,456 | | |
Long-term debt | 34,616 | | | 39,071 | | | 38,918 | | | 41,232 | | | 44,749 | | |
Other liabilities | 13,183 | | | 13,119 | | | 12,946 | | | 12,962 | | | 11,788 | | |
Liabilities of discontinued operations | — | | | 3,122 | | | 3,539 | | | 2,997 | | | 3,832 | | |
Total liabilities | 456,026 | | | 475,906 | | | 476,096 | | | 480,700 | | | 490,868 | | |
Shareholders’ Equity: | | | | | | | | | | |
Preferred stock | 6,673 | | | 6,673 | | | 6,673 | | | 6,673 | | | 6,673 | | |
Common stock | 6,691 | | | 6,690 | | | 6,669 | | | 6,668 | | | 6,660 | | |
Additional paid-in capital | 36,364 | | | 36,197 | | | 36,177 | | | 36,114 | | | 35,990 | | |
Retained earnings | 22,603 | | | 22,483 | | | 22,088 | | | 27,944 | | | 27,577 | | |
Accumulated other comprehensive loss | (8,504) | | | (13,222) | | | (12,506) | | | (15,559) | | | (13,374) | | |
Noncontrolling interests | — | | | 232 | | | 152 | | | 167 | | | 155 | | |
Total shareholders’ equity | 63,827 | | | 59,053 | | | 59,253 | | | 62,007 | | | 63,681 | | |
Total liabilities and shareholders’ equity | $ | 519,853 | | | $ | 534,959 | | | $ | 535,349 | | | $ | 542,707 | | | $ | 554,549 | | |
| |
(1)Includes goodwill and intangible assets of $5.0 billion as of March 31, 2024, $5.0 billion as of December 31, 2023, $5.0 billion as of September 30, 2023, and $5.1 billion as of June 30, 2023.
Average Balances and Rates - Quarters | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Quarter Ended |
| June 30, 2024 | | March 31, 2024 | | December 31, 2023 | | September 30, 2023 | | June 30, 2023 |
(Dollars in millions) | Average Balances(1) | Income/ Expense(2) | Yields/ Rates(2) | | Average Balances(1) | Income/ Expense(2) | Yields/ Rates(2) | | Average Balances(1) | Income/ Expense(2) | Yields/ Rates(2) | | Average Balances(1) | Income/ Expense(2) | Yields/ Rates(2) | | Average Balances(1) | Income/ Expense(2) | Yields/ Rates(2) |
Assets | | | | | | | | | | | | | | | | | | | |
AFS and HTM securities at amortized cost: | | | | | | | | | | | | | | | | | | | |
U.S. Treasury | $ | 11,145 | | $ | 101 | | 3.66 | % | | $ | 9,853 | | $ | 37 | | 1.49 | % | | $ | 10,967 | | $ | 38 | | 1.37 | % | | $ | 10,886 | | $ | 34 | | 1.27 | % | | $ | 11,115 | | $ | 30 | | 1.10 | % |
U.S. government-sponsored entities (GSE) | 382 | | 3 | | 3.27 | | | 389 | | 3 | | 3.40 | | | 389 | | 2 | | 3.23 | | | 339 | | 3 | | 2.92 | | | 329 | | 3 | | 2.70 | |
Mortgage-backed securities issued by GSE | 107,901 | | 720 | | 2.67 | | | 116,946 | | 735 | | 2.51 | | | 117,868 | | 736 | | 2.50 | | | 120,078 | | 701 | | 2.33 | | | 122,647 | | 690 | | 2.25 | |
States and political subdivisions | 420 | | 5 | | 4.14 | | | 421 | | 4 | | 4.15 | | | 421 | | 5 | | 4.16 | | | 423 | | 4 | | 4.12 | | | 425 | | 5 | | 4.18 | |
Non-agency mortgage-backed | 1,452 | | 10 | | 2.61 | | | 3,645 | | 27 | | 2.98 | | | 3,725 | | 22 | | 2.37 | | | 3,781 | | 22 | | 2.33 | | | 3,852 | | 22 | | 2.32 | |
Other | 18 | | — | | 5.29 | | | 19 | | — | | 5.35 | | | 20 | | — | | 5.47 | | | 20 | | 1 | | 5.55 | | | 25 | | — | | 5.20 | |
Total securities | 121,318 | | 839 | | 2.77 | | | 131,273 | | 806 | | 2.46 | | | 133,390 | | 803 | | 2.41 | | | 135,527 | | 765 | | 2.26 | | | 138,393 | | 750 | | 2.17 | |
Loans and leases: | | | | | | | | | | | | | | | | | | | |
Commercial: | | | | | | | | | | | | | | | | | | | |
Commercial and industrial | 157,043 | | 2,550 | | 6.53 | | | 158,385 | | 2,572 | | 6.53 | | | 160,278 | | 2,657 | | 6.58 | | | 164,022 | | 2,686 | | 6.50 | | | 166,588 | | 2,610 | | 6.28 | |
CRE | 21,969 | | 381 | | 6.93 | | | 22,400 | | 389 | | 6.95 | | | 22,755 | | 400 | | 6.94 | | | 22,812 | | 396 | | 6.85 | | | 22,706 | | 384 | | 6.73 | |
Commercial construction | 7,645 | | 147 | | 7.85 | | | 7,134 | | 137 | | 7.83 | | | 6,515 | | 127 | | 7.84 | | | 6,194 | | 120 | | 7.83 | | | 5,921 | | 111 | | 7.64 | |
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Consumer: | | | | | | | | | | | | | | | | | | | |
Residential mortgage | 54,490 | | 525 | | 3.86 | | | 55,070 | | 528 | | 3.84 | | | 55,658 | | 532 | | 3.83 | | | 56,135 | | 532 | | 3.79 | | | 56,320 | | 531 | | 3.77 | |
Home equity | 9,805 | | 195 | | 8.02 | | | 9,930 | | 196 | | 7.92 | | | 10,104 | | 199 | | 7.80 | | | 10,243 | | 196 | | 7.61 | | | 10,478 | | 190 | | 7.26 | |
Indirect auto | 22,016 | | 381 | | 6.95 | | | 22,374 | | 372 | | 6.69 | | | 23,368 | | 381 | | 6.46 | | | 24,872 | | 386 | | 6.16 | | | 26,558 | | 398 | | 6.01 | |
Other consumer | 28,326 | | 581 | | 8.25 | | | 28,285 | | 561 | | 7.98 | | | 28,913 | | 561 | | 7.69 | | | 28,963 | | 542 | | 7.43 | | | 28,189 | | 499 | | 7.10 | |
Student | — | | — | | — | | | — | | — | | — | | | — | | — | | — | | | — | | 1 | | — | | | 4,766 | | 80 | | 6.76 | |
Credit card | 4,905 | | 148 | | 12.14 | | | 4,923 | | 146 | | 11.96 | | | 4,996 | | 149 | | 11.84 | | | 4,875 | | 143 | | 11.62 | | | 4,846 | | 137 | | 11.48 | |
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Total loans and leases held for investment | 306,199 | | 4,908 | | 6.44 | | | 308,501 | | 4,901 | | 6.38 | | | 312,587 | | 5,006 | | 6.36 | | | 318,116 | | 5,002 | | 6.25 | | | 326,372 | | 4,940 | | 6.07 | |
Loans held for sale | 1,384 | | 22 | | 6.56 | | | 925 | | 15 | | 6.38 | | | 1,245 | | 21 | | 6.82 | | | 1,765 | | 28 | | 6.20 | | | 1,886 | | 28 | | 5.94 | |
Total loans and leases | 307,583 | | 4,930 | | 6.44 | | | 309,426 | | 4,916 | | 6.38 | | | 313,832 | | 5,027 | | 6.36 | | | 319,881 | | 5,030 | | 6.25 | | | 328,258 | | 4,968 | | 6.07 | |
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Interest earning trading assets | 5,515 | | 84 | | 6.11 | | | 4,845 | | 79 | | 6.50 | | | 4,680 | | 80 | | 6.92 | | | 4,380 | | 76 | | 6.91 | | | 4,445 | | 75 | | 6.73 | |
Other earning assets | 39,250 | | 551 | | 5.56 | | | 30,567 | | 436 | | 5.74 | | | 28,956 | | 414 | | 5.65 | | | 28,574 | | 413 | | 5.74 | | | 34,616 | | 436 | | 5.06 | |
Total earning assets | 473,666 | | 6,404 | | 5.42 | | | 476,111 | | 6,237 | | 5.26 | | | 480,858 | | 6,324 | | 5.23 | | | 488,362 | | 6,284 | | 5.12 | | | 505,712 | | 6,229 | | 4.94 | |
Nonearning assets | 50,587 | | | | | 47,307 | | | | | 51,165 | | | | | 51,607 | | | | | 52,316 | | | |
Assets of discontinued operations | 2,641 | | | | | 7,584 | | | | | 7,633 | | | | | 7,735 | | | | | 7,794 | | | |
Total assets | $ | 526,894 | | | | | $ | 531,002 | | | | | $ | 539,656 | | | | | $ | 547,704 | | | | | $ | 565,822 | | | |
Liabilities and Shareholders’ Equity | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits: | | | | | | | | | | | | | | | | | | | |
Interest checking | $ | 103,894 | | 707 | | 2.74 | | | $ | 103,537 | | 684 | | 2.65 | | | $ | 101,722 | | 635 | | 2.48 | | | $ | 101,252 | | 611 | | 2.40 | | | $ | 102,105 | | 508 | | 1.99 | |
Money market and savings | 135,264 | | 873 | | 2.60 | | | 134,696 | | 832 | | 2.49 | | | 137,464 | | 843 | | 2.43 | | | 139,961 | | 829 | | 2.35 | | | 138,149 | | 686 | | 1.99 | |
Time deposits | 41,250 | | 436 | | 4.24 | | | 41,937 | | 448 | | 4.30 | | | 41,592 | | 439 | | 4.19 | | | 40,920 | | 418 | | 4.05 | | | 35,844 | | 333 | | 3.73 | |
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Total interest-bearing deposits | 280,408 | | 2,016 | | 2.89 | | | 280,170 | | 1,964 | | 2.82 | | | 280,778 | | 1,917 | | 2.71 | | | 282,133 | | 1,858 | | 2.61 | | | 276,098 | | 1,527 | | 2.22 | |
Short-term borrowings | 26,016 | | 362 | | 5.58 | | | 26,230 | | 366 | | 5.62 | | | 24,958 | | 354 | | 5.62 | | | 24,894 | | 343 | | 5.47 | | | 23,991 | | 311 | | 5.19 | |
Long-term debt | 36,721 | | 446 | | 4.87 | | | 40,721 | | 482 | | 4.74 | | | 40,818 | | 476 | | 4.67 | | | 43,353 | | 491 | | 4.51 | | | 63,665 | | 734 | | 4.62 | |
Total interest-bearing liabilities | 343,145 | | 2,824 | | 3.31 | | | 347,121 | | 2,812 | | 3.26 | | | 346,554 | | 2,747 | | 3.15 | | | 350,380 | | 2,692 | | 3.05 | | | 363,754 | | 2,572 | | 2.84 | |
Noninterest-bearing deposits | 107,634 | | | | | 108,888 | | | | | 114,555 | | | | | 118,905 | | | | | 123,728 | | | |
Other liabilities | 13,318 | | | | | 12,885 | | | | | 12,433 | | | | | 11,699 | | | | | 10,865 | | | |
Liabilities of discontinued operations | 1,120 | | | | | 3,097 | | | | | 3,218 | | | | | 3,408 | | | | | 3,374 | | | |
Shareholders’ equity | 61,677 | | | | | 59,011 | | | | | 62,896 | | | | | 63,312 | | | | | 64,101 | | | |
Total liabilities and shareholders’ equity | $ | 526,894 | | | | | $ | 531,002 | | | | | $ | 539,656 | | | | | $ | 547,704 | | | | | $ | 565,822 | | | |
Average interest-rate spread | | | 2.11 | | | | | 2.00 | | | | | 2.08 | | | | | 2.07 | | | | | 2.10 | |
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Net interest income/ net interest margin | | $ | 3,580 | | 3.03 | % | | | $ | 3,425 | | 2.89 | % | | | $ | 3,577 | | 2.96 | % | | | $ | 3,592 | | 2.93 | % | | | $ | 3,657 | | 2.90 | % |
Taxable-equivalent adjustment | | 53 | | | | | 53 | | | | | 58 | | | | | 57 | | | | | 54 | | |
Memo: Total deposits | $ | 388,042 | | 2,016 | | 2.09 | % | | $ | 389,058 | | 1,964 | | 2.03 | % | | $ | 395,333 | | 1,917 | | 1.92 | % | | $ | 401,038 | | 1,858 | | 1.84 | % | | $ | 399,826 | | 1,527 | | 1.53 | % |
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(1)Excludes basis adjustments for fair value hedges.
(2)Amounts are on a taxable-equivalent basis utilizing the federal income tax rate of 21% for the periods presented. Interest income includes certain fees, deferred costs, and dividends.
Average Balances and Rates - Year-To-Date
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| | Year-to-Date | | |
| | June 30, 2024 | | June 30, 2023 | | |
(Dollars in millions) | | Average Balances(1) | | Income/Expense(2) | | Yields/ Rates(2) | | Average Balances(1) | | Income/Expense(2) | | Yields/ Rates(2) | | |
Assets | | | | | | | | | | | | | | |
AFS and HTM securities at amortized cost: | | | | | | | | | | | | | | |
U.S. Treasury | | $ | 10,499 | | | $ | 138 | | | 2.64 | % | | $ | 11,116 | | | $ | 60 | | | 1.08 | % | | |
U.S. government-sponsored entities (GSE) | | 385 | | | 6 | | | 3.34 | | | 332 | | | 5 | | | 2.78 | | | |
Mortgage-backed securities issued by GSE | | 112,423 | | | 1,455 | | | 2.59 | | | 123,692 | | | 1,384 | | | 2.24 | | | |
States and political subdivisions | | 420 | | | 9 | | | 4.14 | | | 425 | | | 9 | | | 4.12 | | | |
Non-agency mortgage-backed | | 2,549 | | | 37 | | | 2.87 | | | 3,879 | | | 45 | | | 2.33 | | | |
Other | | 19 | | | — | | | 5.32 | | | 22 | | | — | | | 5.24 | | | |
Total securities | | 126,295 | | | 1,645 | | | 2.61 | | | 139,466 | | | 1,503 | | | 2.16 | | | |
Loans and leases: | | | | | | | | | | | | | | |
Commercial: | | | | | | | | | | | | | | |
Commercial and industrial | | 157,714 | | | 5,122 | | | 6.53 | | | 165,846 | | | 5,046 | | | 6.13 | | | |
CRE | | 22,185 | | | 770 | | | 6.94 | | | 22,698 | | | 739 | | | 6.52 | | | |
Commercial construction | | 7,389 | | | 284 | | | 7.84 | | | 5,892 | | | 212 | | | 7.39 | | | |
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Consumer: | | | | | | | | | | | | | | |
Residential mortgage | | 54,780 | | | 1,053 | | | 3.85 | | | 56,370 | | | 1,057 | | | 3.75 | | | |
Home equity | | 9,868 | | | 391 | | | 7.97 | | | 10,606 | | | 370 | | | 7.03 | | | |
Indirect auto | | 22,195 | | | 753 | | | 6.82 | | | 27,147 | | | 796 | | | 5.91 | | | |
Other consumer | | 28,306 | | | 1,142 | | | 8.12 | | | 27,876 | | | 958 | | | 6.93 | | | |
Student | | — | | | — | | | — | | | 4,947 | | | 169 | | | 6.91 | | | |
Credit card | | 4,913 | | | 294 | | | 12.05 | | | 4,815 | | | 273 | | | 11.45 | | | |
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Total loans and leases held for investment | | 307,350 | | | 9,809 | | | 6.41 | | | 326,197 | | | 9,620 | | | 5.94 | | | |
Loans held for sale | | 1,155 | | | 37 | | | 6.49 | | | 1,708 | | | 53 | | | 6.28 | | | |
Total loans and leases | | 308,505 | | | 9,846 | | | 6.41 | | | 327,905 | | | 9,673 | | | 5.94 | | | |
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Interest earning trading assets | | 5,180 | | | 163 | | | 6.29 | | | 4,951 | | | 158 | | | 6.38 | | | |
Other earning assets | | 34,909 | | | 987 | | | 5.60 | | | 29,916 | | | 730 | | | 4.87 | | | |
Total earning assets | | 474,889 | | | 12,641 | | | 5.34 | | | 502,238 | | | 12,064 | | | 4.83 | | | |
Nonearning assets | | 48,947 | | | | | | | 52,953 | | | | | | | |
Assets of discontinued operations | | 5,112 | | | | | | | 7,550 | | | | | | | |
Total assets | | $ | 528,948 | | | | | | | $ | 562,741 | | | | | | | |
Liabilities and Shareholders’ Equity | | | | | | | | | | | | | | |
Interest-bearing deposits: | | | | | | | | | | | | | | |
Interest checking | | $ | 103,716 | | | 1,391 | | | 2.70 | | | $ | 105,477 | | | 938 | | | 1.79 | | | |
Money market and savings | | 134,979 | | | 1,705 | | | 2.54 | | | 138,972 | | | 1,162 | | | 1.69 | | | |
Time deposits | | 41,594 | | | 884 | | | 4.27 | | | 32,276 | | | 552 | | | 3.45 | | | |
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Total interest-bearing deposits | | 280,289 | | | 3,980 | | | 2.86 | | | 276,725 | | | 2,652 | | | 1.93 | | | |
Short-term borrowings | | 26,123 | | | 728 | | | 5.60 | | | 24,023 | | | 589 | | | 4.94 | | | |
Long-term debt | | 38,721 | | | 928 | | | 4.80 | | | 57,396 | | | 1,248 | | | 4.37 | | | |
Total interest-bearing liabilities | | 345,133 | | | 5,636 | | | 3.28 | | | 358,144 | | | 4,489 | | | 2.52 | | | |
Noninterest-bearing deposits | | 108,261 | | | | | | | 127,393 | | | | | | | |
Other liabilities | | 13,101 | | | | | | | 11,043 | | | | | | | |
Liabilities of discontinued operations | | 2,109 | | | | | | | 3,066 | | | | | | | |
Shareholders’ equity | | 60,344 | | | | | | | 63,095 | | | | | | | |
Total liabilities and shareholders’ equity | | $ | 528,948 | | | | | | | $ | 562,741 | | | | | | | |
Average interest-rate spread | | | | | | 2.06 | | | | | | | 2.31 | | | |
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Net interest income/ net interest margin | | | | $ | 7,005 | | | 2.96 | % | | | | $ | 7,575 | | | 3.03 | % | | |
Taxable-equivalent adjustment | | | | 106 | | | | | | | 105 | | | | | |
Memo: Total deposits | | $ | 388,550 | | | 3,980 | | | 2.06 | % | | $ | 404,118 | | | 2,652 | | | 1.32 | % | | |
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(1)Excludes basis adjustments for fair value hedges.
(2)Amounts are on a taxable-equivalent basis utilizing the federal income tax rate of 21% for the periods presented. Interest income includes certain fees, deferred costs, and dividends.
Credit Quality
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| | June 30 | | March 31 | | Dec. 31 | | Sept. 30 | | June 30 |
(Dollars in millions) | | 2024 | | 2024 | | 2023 | | 2023 | | 2023 |
Nonperforming Assets | | | | | | | | | | |
Nonaccrual loans and leases: | | | | | | | | | | |
Commercial: | | | | | | | | | | |
Commercial and industrial | | $ | 459 | | | $ | 512 | | | $ | 470 | | | $ | 561 | | | $ | 562 | |
CRE | | 360 | | | 261 | | | 284 | | | 289 | | | 275 | |
Commercial construction | | — | | | 23 | | | 24 | | | 29 | | | 16 | |
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Consumer: | | | | | | | | | | |
Residential mortgage | | 161 | | | 151 | | | 153 | | | 132 | | | 221 | |
Home equity | | 123 | | | 130 | | | 122 | | | 123 | | | 129 | |
Indirect auto | | 244 | | | 256 | | | 268 | | | 266 | | | 262 | |
Other consumer | | 64 | | | 61 | | | 59 | | | 52 | | | 46 | |
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Total nonaccrual loans and leases held for investment | | 1,411 | | | 1,394 | | | 1,380 | | | 1,452 | | | 1,511 | |
Loans held for sale | | 9 | | | 22 | | | 51 | | | 75 | | | 13 | |
Total nonaccrual loans and leases | | 1,420 | | | 1,416 | | | 1,431 | | | 1,527 | | | 1,524 | |
Foreclosed real estate | | 5 | | | 4 | | | 3 | | | 3 | | | 3 | |
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Other foreclosed property | | 51 | | | 56 | | | 54 | | | 54 | | | 56 | |
Total nonperforming assets | | $ | 1,476 | | | $ | 1,476 | | | $ | 1,488 | | | $ | 1,584 | | | $ | 1,583 | |
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Loans 90 Days or More Past Due and Still Accruing | | | | | | | | | | |
Commercial: | | | | | | | | | | |
Commercial and industrial | | $ | 8 | | | $ | 12 | | | $ | 7 | | | $ | 15 | | | $ | 36 | |
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Commercial construction | | 1 | | | — | | | 1 | | | — | | | 5 | |
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Consumer: | | | | | | | | | | |
Residential mortgage - government guaranteed | | 375 | | | 408 | | | 418 | | | 456 | | | 541 | |
Residential mortgage - nonguaranteed | | 27 | | | 33 | | | 21 | | | 30 | | | 23 | |
Home equity | | 7 | | | 10 | | | 11 | | | 9 | | | 7 | |
Indirect auto | | 1 | | | 1 | | | 2 | | | 1 | | | — | |
Other consumer | | 19 | | | 18 | | | 21 | | | 16 | | | 12 | |
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Credit card | | 51 | | | 56 | | | 53 | | | 47 | | | 38 | |
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Total loans 90 days past due and still accruing | | $ | 489 | | | $ | 538 | | | $ | 534 | | | $ | 574 | | | $ | 662 | |
Loans 30-89 Days Past Due | | | | | | | | | | |
Commercial: | | | | | | | | | | |
Commercial and industrial | | $ | 109 | | | $ | 158 | | | $ | 230 | | | $ | 98 | | | $ | 142 | |
CRE | | 8 | | | 21 | | | 5 | | | 28 | | | 38 | |
Commercial construction | | — | | | — | | | — | | | 1 | | | 6 | |
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Consumer: | | | | | | | | | | |
Residential mortgage - government guaranteed | | 340 | | | 286 | | | 326 | | | 293 | | | 267 | |
Residential mortgage - nonguaranteed | | 392 | | | 352 | | | 313 | | | 270 | | | 254 | |
Home equity | | 58 | | | 59 | | | 70 | | | 61 | | | 56 | |
Indirect auto | | 592 | | | 540 | | | 669 | | | 598 | | | 549 | |
Other consumer | | 214 | | | 226 | | | 271 | | | 219 | | | 175 | |
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Credit card | | 78 | | | 74 | | | 87 | | | 68 | | | 63 | |
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Total loans 30-89 days past due | | $ | 1,791 | | | $ | 1,716 | | | $ | 1,971 | | | $ | 1,636 | | | $ | 1,550 | |
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| | As of/For the Quarter Ended | | | | | |
| | June 30 | | March 31 | | Dec. 31 | | Sept. 30 | | June 30 | | | | | |
| | 2024 | | 2024 | | 2023 | | 2023 | | 2023 | | | | | |
Asset Quality Ratios | | | | | | | | | | | | | | | |
Loans 30-89 days past due and still accruing as a percentage of loans and leases | | 0.59 | % | | 0.56 | % | | 0.63 | % | | 0.52 | % | | 0.48 | % | | | | | |
Loans 90 days or more past due and still accruing as a percentage of loans and leases | | 0.16 | | | 0.18 | | | 0.17 | | | 0.18 | | | 0.21 | | | | | | |
Nonperforming loans and leases as a percentage of loans and leases held for investment | | 0.46 | | | 0.45 | | | 0.44 | | | 0.46 | | | 0.47 | | | | | | |
Nonperforming loans and leases as a percentage of loans and leases(1) | | 0.46 | | | 0.46 | | | 0.46 | | | 0.48 | | | 0.47 | | | | | | |
Nonperforming assets as a percentage of: | | | | | | | | | | | | | | | |
Total assets(1) | | 0.28 | | | 0.28 | | | 0.28 | | | 0.29 | | | 0.29 | | | | | | |
Loans and leases plus foreclosed property | | 0.48 | | | 0.47 | | | 0.46 | | | 0.48 | | | 0.49 | | | | | | |
Net charge-offs as a percentage of average loans and leases | | 0.58 | | | 0.64 | | | 0.57 | | | 0.51 | | | 0.54 | | | | | | |
Allowance for loan and lease losses as a percentage of loans and leases | | 1.57 | | | 1.56 | | | 1.54 | | | 1.49 | | | 1.43 | | | | | | |
Ratio of allowance for loan and lease losses to: | | | | | | | | | | | | | | | |
Net charge-offs | | 2.7X | | 2.4X | | 2.7X | | 2.9X | | 2.6X | | | | | |
Nonperforming loans and leases | | 3.4X | | 3.4X | | 3.5X | | 3.2X | | 3.0X | | | | | |
Asset Quality Ratios (Excluding Government Guaranteed) | | | | | | | | | | | | | | | |
Loans 90 days or more past due and still accruing as a percentage of loans and leases | | 0.04 | % | | 0.04 | % | | 0.04 | % | | 0.04 | % | | 0.04 | % | | | | | |
Applicable ratios are annualized. | | | | | | | | | | | | | | | |
(1)Includes loans held for sale. | | | | | | | | | | | | | | | |
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Asset Quality Ratios | | | | | | | | | | | | | | | |
Net charge-offs as a percentage of average loans and leases | | | | | | | | 0.61 | % | | 0.46 | % | | | | | |
Ratio of allowance for loan and lease losses to net charge-offs | | | | | | | | 2.6X | | 3.1X | | | | | |
Applicable ratios are annualized. | | | | | |
Applicable ratios are annualized.
(1)Includes loans held for sale.
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| | As of/For the Quarter Ended | | As of/For the Year-to-Date |
| | June 30 | | March 31 | | Dec. 31 | | Sept. 30 | | June 30 | | Period Ended June 30 |
(Dollars in millions) | | 2024 | | 2024 | | 2023 | | 2023 | | 2023 | | 2024 | | 2023 |
Allowance for Credit Losses(1) | | | | | | | | | | | | | | |
Beginning balance | | $ | 5,100 | | | $ | 5,093 | | | $ | 4,970 | | | $ | 4,879 | | | $ | 4,761 | | | $ | 5,093 | | | $ | 4,649 | |
Provision for credit losses | | 451 | | | 500 | | | 572 | | | 497 | | | 558 | | | 951 | | | 1,040 | |
Charge-offs: | | | | | | | | | | | | | | |
Commercial: | | | | | | | | | | | | | | |
Commercial and industrial | | (83) | | | (97) | | | (110) | | | (98) | | | (107) | | | (180) | | | (182) | |
CRE | | (97) | | | (103) | | | (48) | | | (77) | | | (35) | | | (200) | | | (41) | |
Commercial construction | | — | | | — | | | (5) | | | — | | | — | | | — | | | — | |
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Consumer: | | | | | | | | | | | | | | |
Residential mortgage | | (1) | | | (1) | | | — | | | (8) | | | (1) | | | (2) | | | (2) | |
Home equity | | (3) | | | (3) | | | (2) | | | (4) | | | (2) | | | (6) | | | (4) | |
Indirect auto | | (136) | | | (154) | | | (154) | | | (135) | | | (115) | | | (290) | | | (242) | |
Other consumer | | (141) | | | (165) | | | (148) | | | (120) | | | (104) | | | (306) | | | (209) | |
Student | | — | | | — | | | — | | | — | | | (103) | | | — | | | (108) | |
Credit card | | (74) | | | (77) | | | (64) | | | (55) | | | (53) | | | (151) | | | (104) | |
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Total charge-offs | | (535) | | | (600) | | | (531) | | | (497) | | | (520) | | | (1,135) | | | (892) | |
Recoveries: | | | | | | | | | | | | | | |
Commercial: | | | | | | | | | | | | | | |
Commercial and industrial | | 14 | | | 32 | | | 16 | | | 28 | | | 13 | | | 46 | | | 26 | |
CRE | | 5 | | | 7 | | | — | | | 2 | | | — | | | 12 | | | 1 | |
Commercial construction | | 1 | | | — | | | 2 | | | — | | | — | | | 1 | | | 1 | |
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Residential mortgage | | 2 | | | 1 | | | 1 | | | 1 | | | 2 | | | 3 | | | 4 | |
Home equity | | 4 | | | 5 | | | 5 | | | 7 | | | 5 | | | 9 | | | 11 | |
Indirect auto | | 30 | | | 28 | | | 25 | | | 25 | | | 31 | | | 58 | | | 57 | |
Other consumer | | 28 | | | 28 | | | 21 | | | 20 | | | 20 | | | 56 | | | 37 | |
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Credit card | | 9 | | | 9 | | | 8 | | | 9 | | | 9 | | | 18 | | | 18 | |
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Total recoveries | | 93 | | | 110 | | | 78 | | | 92 | | | 80 | | | 203 | | | 155 | |
Net charge-offs | | (442) | | | (490) | | | (453) | | | (405) | | | (440) | | | (932) | | | (737) | |
Other(2) | | 1 | | | (3) | | | 4 | | | (1) | | | — | | | (2) | | | (73) | |
Ending balance | | $ | 5,110 | | | $ | 5,100 | | | $ | 5,093 | | | $ | 4,970 | | | $ | 4,879 | | | $ | 5,110 | | | $ | 4,879 | |
Allowance for Credit Losses:(1) | | | | | | | | | | | | | | |
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Allowance for loan and lease losses | | $ | 4,808 | | | $ | 4,803 | | | $ | 4,798 | | | $ | 4,693 | | | $ | 4,606 | | | | | |
Reserve for unfunded lending commitments (RUFC) | | 302 | | | 297 | | | 295 | | | 277 | | | 273 | | | | | |
Allowance for credit losses | | $ | 5,110 | | | $ | 5,100 | | | $ | 5,093 | | | $ | 4,970 | | | $ | 4,879 | | | | | |
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(1)Excludes provision for credit losses and allowances related to other financial assets at amortized cost.
(2)The six months ended June 30, 2023 includes the impact from the adoption of the Troubled Debt Restructurings and Vintage Disclosures accounting standard.
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| | Quarter Ended | | As of/For the Year-to-Date |
| | June 30 | | March 31 | | Dec. 31 | | Sept. 30 | | June 30 | | Period Ended June 30 |
| | 2024 | | 2024 | | 2023 | | 2023 | | 2023 | | 2024 | | 2023 |
Net Charge-offs as a Percentage of Average Loans and Leases: |
Commercial: | | | | | | | | | | | | | | |
Commercial and industrial | | 0.18 | % | | 0.17 | % | | 0.23 | % | | 0.17 | % | | 0.23 | % | | 0.17 | % | | 0.19 | % |
CRE | | 1.67 | | | 1.73 | | | 0.83 | | | 1.31 | | | 0.62 | | | 1.70 | | | 0.35 | |
Commercial construction | | (0.05) | | | (0.02) | | | 0.22 | | | (0.03) | | | (0.02) | | | (0.04) | | | (0.03) | |
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Consumer: | | | | | | | | | | | | | | |
Residential mortgage | | (0.01) | | | — | | | (0.01) | | | 0.05 | | | (0.01) | | | — | | | (0.01) | |
Home equity | | (0.03) | | | (0.08) | | | (0.12) | | | (0.10) | | | (0.12) | | | (0.06) | | | (0.14) | |
Indirect auto | | 1.94 | | | 2.26 | | | 2.19 | | | 1.75 | | | 1.28 | | | 2.10 | | | 1.38 | |
Other consumer | | 1.60 | | | 1.96 | | | 1.74 | | | 1.37 | | | 1.20 | | | 1.78 | | | 1.25 | |
Student | | — | | | — | | | — | | | — | | | 8.67 | | | — | | | 4.42 | |
Credit card | | 5.33 | | | 5.54 | | | 4.38 | | | 3.78 | | | 3.66 | | | 5.44 | | | 3.60 | |
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Total loans and leases | | 0.58 | | | 0.64 | | | 0.57 | | | 0.51 | | | 0.54 | | | 0.61 | | | 0.46 | |
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Applicable ratios are annualized. | | | | | | | | | | | | | | |
Segment Financial Performance - Preliminary(1)(2)
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| | Quarter Ended |
| | June 30 | | March 31 | | Dec. 31 | | Sept. 30 | | June 30 |
(Dollars in millions) | | 2024 | | 2024 | | 2023 | | 2023 | | 2023 |
Consumer and Small Business Banking | | | | | | | | | | |
Net interest income (expense) | | $ | 1,286 | | | $ | 1,264 | | | $ | 1,340 | | | $ | 1,370 | | | $ | 1,544 | |
Net intersegment interest income (expense) | | 1,342 | | | 1,339 | | | 1,272 | | | 1,236 | | | 1,082 | |
Segment net interest income (expense) | | 2,628 | | | 2,603 | | | 2,612 | | | 2,606 | | | 2,626 | |
Allocated provision for credit losses | | 309 | | | 303 | | | 359 | | | 260 | | | 227 | |
Noninterest income | | 507 | | | 503 | | | 526 | | | 436 | | | 514 | |
Goodwill impairment | | — | | | — | | | 3,361 | | | — | | | — | |
Noninterest expense ex goodwill impairment | | 1,645 | | | 1,645 | | | 1,696 | | | 1,642 | | | 1,616 | |
Income (loss) before income taxes | | 1,181 | | | 1,158 | | | (2,278) | | | 1,140 | | | 1,297 | |
Provision (benefit) for income taxes | | 283 | | | 279 | | | 262 | | | 274 | | | 309 | |
Segment net income (loss) | | $ | 898 | | | $ | 879 | | | $ | (2,540) | | | $ | 866 | | | $ | 988 | |
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Wholesale Banking | | | | | | | | | | |
Net interest income (expense) | | $ | 2,187 | | | $ | 2,234 | | | $ | 2,300 | | | $ | 2,323 | | | $ | 2,329 | |
Net intersegment interest income (expense) | | (497) | | | (547) | | | (565) | | | (607) | | | (562) | |
Segment net interest income (expense) | | 1,690 | | | 1,687 | | | 1,735 | | | 1,716 | | | 1,767 | |
Allocated provision for credit losses | | 142 | | | 198 | | | 212 | | | 243 | | | 309 | |
Noninterest income | | 991 | | | 983 | | | 883 | | | 905 | | | 891 | |
Goodwill impairment | | — | | | — | | | 2,717 | | | — | | | — | |
Noninterest expense ex goodwill impairment | | 1,348 | | | 1,374 | | | 1,643 | | | 1,297 | | | 1,297 | |
Income (loss) before income taxes | | 1,191 | | | 1,098 | | | (1,954) | | | 1,081 | | | 1,052 | |
Provision (benefit) for income taxes | | 237 | | | 214 | | | 138 | | | 211 | | | 203 | |
Segment net income (loss) | | $ | 954 | | | $ | 884 | | | $ | (2,092) | | | $ | 870 | | | $ | 849 | |
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Other, Treasury & Corporate(3) | | | | | | | | | | |
Net interest income (expense) | | $ | 54 | | | $ | (126) | | | $ | (121) | | | $ | (158) | | | $ | (270) | |
Net intersegment interest income (expense) | | (845) | | | (792) | | | (707) | | | (629) | | | (520) | |
Segment net interest income (expense) | | (791) | | | (918) | | | (828) | | | (787) | | | (790) | |
Allocated provision for credit losses | | — | | | (1) | | | 1 | | | (6) | | | 2 | |
Noninterest income | | (6,710) | | | (40) | | | (46) | | | (7) | | | (25) | |
Noninterest expense | | 101 | | | (66) | | | 140 | | | 121 | | | 133 | |
Income (loss) before income taxes | | (7,602) | | | (891) | | | (1,015) | | | (909) | | | (950) | |
Provision (benefit) for income taxes | | (1,844) | | | (261) | | | (456) | | | (282) | | | (282) | |
Segment net income (loss) | | $ | (5,758) | | | $ | (630) | | | $ | (559) | | | $ | (627) | | | $ | (668) | |
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Total Truist Financial Corporation | | | | | | | | | | |
Net interest income (expense) | | $ | 3,527 | | | $ | 3,372 | | | $ | 3,519 | | | $ | 3,535 | | | $ | 3,603 | |
Net intersegment interest income (expense) | | — | | | — | | | — | | | — | | | — | |
Segment net interest income (expense) | | 3,527 | | | 3,372 | | | 3,519 | | | 3,535 | | | 3,603 | |
Allocated provision for credit losses | | 451 | | | 500 | | | 572 | | | 497 | | | 538 | |
Noninterest income | | (5,212) | | | 1,446 | | | 1,363 | | | 1,334 | | | 1,380 | |
Goodwill impairment | | — | | | — | | | 6,078 | | | — | | | — | |
Noninterest expense ex goodwill impairment | | 3,094 | | | 2,953 | | | 3,479 | | | 3,060 | | | 3,046 | |
Income (loss) before income taxes | | (5,230) | | | 1,365 | | | (5,247) | | | 1,312 | | | 1,399 | |
Provision (benefit) for income taxes | | (1,324) | | | 232 | | | (56) | | | 203 | | | 230 | |
Net income (loss) from continuing operations | | $ | (3,906) | | | $ | 1,133 | | | $ | (5,191) | | | $ | 1,109 | | | $ | 1,169 | |
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(1)Effective January 1, 2024, several business activities were realigned reflecting updates to the Company’s operating structure. First, the CB&W segment was renamed CSBB and the C&CB segment was renamed WB. Second, the Wealth business was realigned into the WB segment from the CSBB segment, representing a separate reporting unit in that segment. Third, the small business banking client segmentation was realigned into the CSBB segment from the WB segment. The segment disclosures have been revised to reflect the segment realignment.
(2)On February 20, 2024, the Company entered into an agreement to sell the remaining 80% stake of the common equity in TIH to an investor group, representing substantially all of the Company’s IH segment. The sale represents a material strategic shift for the Company and as a result, the Company recast results for all periods presented under the discontinued operations basis of presentation. On May 6, 2024, the Company completed the sale resulting in an after-tax gain of $4.8 billion. As a result, the IH segment is no longer presented in the table above.
(3)Includes financial data from subsidiaries below the quantitative and qualitative thresholds requiring disclosure.
Capital Information - Five Quarter Trend | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | As of/For the Quarter Ended |
| | June 30 | | March 31 | | Dec. 31 | | Sept. 30 | | June 30 |
(Dollars in millions, except per share data, shares in thousands) | | 2024 | | 2024 | | 2023 | | 2023 | | 2023 |
Selected Capital Information | | (preliminary) | | | | | | | | |
Risk-based capital: | | | | | | | | | | |
Common equity tier 1 | | $ | 47,707 | | | $ | 42,691 | | | $ | 42,671 | | | $ | 42,276 | | | $ | 41,642 | |
Tier 1 | | 54,377 | | | 49,361 | | | 49,341 | | | 48,946 | | | 48,312 | |
Total | | 63,346 | | | 58,548 | | | 58,063 | | | 57,713 | | | 57,236 | |
Risk-weighted assets | | 412,406 | | | 421,680 | | | 423,705 | | | 428,755 | | | 434,946 | |
Average quarterly assets for leverage ratio | | 519,467 | | | 522,095 | | | 533,084 | | | 534,402 | | | 550,734 | |
Average quarterly assets for supplementary leverage ratio | | 608,546 | | | 614,238 | | | 624,591 | | | 627,382 | | | 643,662 | |
Risk-based capital ratios: | | | | | | | | | | |
Common equity tier 1 | | 11.6 | % | | 10.1 | % | | 10.1 | % | | 9.9 | % | | 9.6 | % |
Tier 1 | | 13.2 | | | 11.7 | | | 11.6 | | | 11.4 | | | 11.1 | |
Total | | 15.4 | | | 13.9 | | | 13.7 | | | 13.5 | | | 13.2 | |
Leverage capital ratio | | 10.5 | | | 9.5 | | | 9.3 | | | 9.2 | | | 8.8 | |
Supplementary leverage | | 8.9 | | | 8.0 | | | 7.9 | | | 7.8 | | | 7.5 | |
Common equity per common share | | $ | 42.71 | | | $ | 38.97 | | | $ | 39.31 | | | $ | 41.37 | | | $ | 42.68 | |
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| | June 30 | | March 31 | | Dec. 31 | | Sept. 30 | | June 30 |
(Dollars in millions, except per share data, shares in thousands) | | 2024 | | 2024 | | 2023 | | 2023 | | 2023 |
Calculations of Tangible Common Equity and Related Measures:(1) | | | | | | | | | | |
Total shareholders’ equity | | $ | 63,827 | | | $ | 59,053 | | | $ | 59,253 | | | $ | 62,007 | | | $ | 63,681 | |
Less: | | | | | | | | | | |
Preferred stock | | 6,673 | | | 6,673 | | | 6,673 | | | 6,673 | | | 6,673 | |
Noncontrolling interests | | — | | | 232 | | | 152 | | | 167 | | | 155 | |
Intangible assets, net of deferred taxes (including discontinued operations) | | 18,471 | | | 23,198 | | | 23,306 | | | 29,491 | | | 29,628 | |
Tangible common equity | | $ | 38,683 | | | $ | 28,950 | | | $ | 29,122 | | | $ | 25,676 | | | $ | 27,225 | |
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Outstanding shares at end of period (in thousands) | | 1,338,223 | | | 1,338,096 | | | 1,333,743 | | | 1,333,668 | | | 1,331,976 | |
Tangible common equity per common share | | $ | 28.91 | | | $ | 21.64 | | | $ | 21.83 | | | $ | 19.25 | | | $ | 20.44 | |
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Total assets | | $ | 519,853 | | | $ | 534,959 | | | $ | 535,349 | | | $ | 542,707 | | | $ | 554,549 | |
Less: Intangible assets, net of deferred taxes (including discontinued operations prior to the sale of TIH) | | 18,471 | | | 23,198 | | | 23,306 | | | 29,491 | | | 29,628 | |
Tangible assets | | $ | 501,382 | | | $ | 511,761 | | | $ | 512,043 | | | $ | 513,216 | | | $ | 524,921 | |
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Equity as a percentage of total assets | | 12.3 | % | | 11.0 | % | | 11.1 | % | | 11.4 | % | | 11.5 | % |
Tangible common equity as a percentage of tangible assets | | 7.7 | | | 5.7 | | | 5.7 | | | 5.0 | | | 5.2 | |
(1)Tangible common equity is a non-GAAP measure that excludes the impact of intangible assets, net of deferred taxes. This measure is useful for evaluating the performance of a business consistently, whether acquired or developed internally. Truist’s management uses this measure to assess balance sheet risk and shareholder value. These measures are not necessarily comparable to similar measures that may be presented by other companies.
Selected Mortgage Banking Information & Additional Information | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | As of/For the Quarter Ended |
| | June 30 | | March 31 | | Dec. 31 | | Sept. 30 | | June 30 |
(Dollars in millions, except per share data) | | 2024 | | 2024 | | 2023 | | 2023 | | 2023 |
Mortgage Banking Income | | | | | | | | | | |
Residential mortgage income: | | |
Residential mortgage production revenue | | $ | 24 | | | $ | 17 | | | $ | 14 | | | $ | 19 | | | $ | 22 | |
Residential mortgage servicing income: | | | | | | | | | | |
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Residential mortgage servicing income before MSR valuation | | 72 | | | 88 | | | 85 | | | 85 | | | 77 | |
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Net MSRs valuation | | (12) | | | (15) | | | (13) | | | (20) | | | (19) | |
Total residential mortgage servicing income | | 60 | | | 73 | | | 72 | | | 65 | | | 58 | |
Total residential mortgage income | | 84 | | | 90 | | | 86 | | | 84 | | | 80 | |
Commercial mortgage income: | | |
Commercial mortgage production revenue | | 4 | | | 5 | | | 5 | | | 17 | | | 16 | |
Commercial mortgage servicing income: | | | | | | | | | | |
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Commercial mortgage servicing income before MSR valuation | | 7 | | | 3 | | | 3 | | | 3 | | | 4 | |
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Net MSRs valuation | | 17 | | | (1) | | | — | | | (2) | | | (1) | |
Total commercial mortgage servicing income | | 24 | | | 2 | | | 3 | | | 1 | | | 3 | |
Total commercial mortgage income | | 28 | | | 7 | | | 8 | | | 18 | | | 19 | |
Total mortgage banking income | | $ | 112 | | | $ | 97 | | | $ | 94 | | | $ | 102 | | | $ | 99 | |
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Other Mortgage Banking Information | | | | | | | | | | |
Residential mortgage loan originations | | $ | 3,881 | | | $ | 2,412 | | | $ | 3,027 | | | $ | 4,196 | | | $ | 5,558 | |
Residential mortgage servicing portfolio:(1) | | | | | | | | | | |
Loans serviced for others | | 208,270 | | | 210,635 | | | 213,399 | | | 214,953 | | | 222,917 | |
Bank-owned loans serviced | | 54,903 | | | 55,255 | | | 55,669 | | | 56,679 | | | 57,147 | |
Total servicing portfolio | | 263,173 | | | 265,890 | | | 269,068 | | | 271,632 | | | 280,064 | |
Weighted-average coupon rate on mortgage loans serviced for others | | 3.63 | % | | 3.59 | % | | 3.56 | % | | 3.51 | % | | 3.54 | % |
Weighted-average servicing fee on mortgage loans serviced for others | | 0.28 | | | 0.28 | | | 0.27 | | | 0.27 | | | 0.27 | |
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Additional Information | | | | | | | | | | |
Brokered deposits(2) | | $ | 27,384 | | | $ | 30,650 | | | $ | 31,260 | | | $ | 34,986 | | | $ | 32,307 | |
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NQDCP income (expense):(3) | | | | | | | | | | |
Interest income | | $ | — | | | $ | 1 | | | $ | 2 | | | $ | 3 | | | $ | 3 | |
Other income | | 4 | | | 15 | | | 17 | | | 35 | | | 9 | |
Personnel expense | | (4) | | | (16) | | | (19) | | | (38) | | | (12) | |
Total NQDCP income (expense) | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
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Common stock prices: | | | | | | | | | | |
High | | $ | 40.51 | | | $ | 39.29 | | | $ | 37.83 | | | $ | 35.78 | | | $ | 35.39 | |
Low | | 35.09 | | | 34.23 | | | 26.57 | | | 27.70 | | | 25.56 | |
End of period | | 38.85 | | | 38.98 | | | 36.92 | | | 28.61 | | | 30.35 | |
Banking offices | | 1,930 | | | 1,930 | | | 2,001 | | | 2,001 | | | 2,002 | |
ATMs | | 2,942 | | | 2,947 | | | 3,031 | | | 3,037 | | | 3,041 | |
FTEs(4) | | 41,368 | | | 49,218 | | | 50,905 | | | 51,943 | | | 52,564 | |
FTEs - continuing operations(4) | | 38,140 | | | 39,417 | | | 40,997 | | | 41,997 | | | 42,701 | |
(1)Amounts reported are unpaid principal balance.
(2)Amounts represented in interest checking, money market and savings, and time deposits.
(3)Relates to plans where Truist holds assets in proportion to participant elections.
(4)FTEs represents an average for the quarter.
Selected Items(1) | | | | | | | | | | | | | | | | | | |
| Favorable (Unfavorable) | |
(Dollars in millions, except per share data) Description | Pre-Tax | | After-Tax at Marginal Rate | | Impact to Diluted EPS | |
Selected Items | | | | | | |
Second Quarter 2024 | | | | | | |
Gain on sale of TIH (net income from discontinued operations) | $ | 6,903 | | | $ | 4,814 | | | $ | 3.60 | | |
Loss on sale of securities (securities gains (losses)) | (6,650) | | | (5,089) | | | (3.80) | | |
Charitable contribution (other expense) | (150) | | | (115) | | | (0.09) | | |
Restructuring charges ($33 million in restructuring charges and $63 million in net income from discontinued operations) | (96) | | | (73) | | | (0.05) | | |
FDIC special assessment (regulatory costs) | (13) | | | (11) | | | (0.01) | | |
Accelerated recognition of TIH equity compensation expense (net income from discontinued operations) | (10) | | | (8) | | | (0.01) | | |
First Quarter 2024 | | | | | | |
Accelerated recognition of TIH equity compensation expense (net income from discontinued operations) | $ | (89) | | | $ | (68) | | | $ | (0.05) | | |
FDIC special assessment (regulatory costs) | (75) | | | (57) | | | (0.04) | | |
Restructuring charges ($51 million in restructuring charges and $19 million in net income from discontinued operations) | (70) | | | (53) | | | (0.04) | | |
Fourth Quarter 2023 | | | | | | |
Goodwill impairment | $ | (6,078) | | | $ | (6,078) | | | $ | (4.53) | | |
FDIC special assessment (regulatory costs) | (507) | | | (387) | | | (0.29) | | |
Restructuring charges ($155 million in restructuring charges and $28 million in net income from discontinued operations) | (183) | | | (139) | | | (0.10) | | |
Discrete tax benefit (provision for income taxes) | — | | | 204 | | | (0.15) | | |
Third Quarter 2023 | | | | | | |
Restructuring charges ($61 million in restructuring charges and $14 million in net income from discontinued operations) | $ | (75) | | | $ | (58) | | | $ | (0.04) | | |
Second Quarter 2023 | | | | | | |
Restructuring charges ($48 million in restructuring charges and $6 million in net income from discontinued operations) | $ | (54) | | | $ | (41) | | | $ | (0.03) | | |
First Quarter 2023 | | | | | | |
Restructuring charges ($56 million in restructuring charges and $7 million in net income from discontinued operations) | $ | (63) | | | $ | (48) | | | $ | (0.04) | | |
(1)Includes certain selected items from the consolidated statements of income. A reconciliation of non-GAAP measures is included in the appendix to Truist’s Second Quarter 2024 Earnings Presentation.
Second Quarter 2024 Earnings Conference Call Bill Rogers – Chairman & CEO Mike Maguire – CFO July 22, 2024
2 From time to time we have made, and in the future will make, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements often use words such as “believe,” “expect,” “anticipate,” “intend,” “pursue,” “seek,” “continue,” “estimate,” “project,” “outlook,” “forecast,” “potential,” “target,” “objective,” “trend,” “plan,” “goal,” “initiative,” “priorities,” or other words of comparable meaning or future-tense or conditional verbs such as “may,” “will,” “should,” “would,” or “could.” Forward-looking statements convey our expectations, intentions, or forecasts about future events, circumstances, or results. In particular, forward looking statements include, but are not limited to, statements we make about: (i) our balance sheet repositioning replacing TIH’s earnings contribution, (ii) continued delivery of new digital capabilities; (iii) expected commencement of share repurchases in the third quarter of 2024; (iv) Truist’s intention to maintain a strong common stock dividend; (v) future improvements in Truist’s expected stress capital buffer; (vi) expectations of meeting long-term debt requirements through normal course debt issuance; (vii) guidance with respect to financial performance metrics in future periods, including future levels of revenues, adjusted expenses, and net charge-off ratio; (viii) Truist’s effective tax rate in future periods; (ix) Truist’s strategic priorities for 2024; (x) scheduled office loan maturities in future years; and (xi) projections of preferred dividends. This presentation, including any information incorporated by reference in this presentation, contains forward-looking statements. We also may make forward-looking statements in other documents that are filed or furnished with the SEC. In addition, we may make forward-looking statements orally or in writing to investors, analysts, members of the media, and others. All forward- looking statements, by their nature, are subject to assumptions, risks, and uncertainties, which may change over time and many of which are beyond our control. You should not rely on any forward-looking statement as a prediction or guarantee about the future. Actual future objectives, strategies, plans, prospects, performance, conditions, and results may differ materially from those set forth in any forward-looking statement. While no list of assumptions, risks, and uncertainties could be complete, some of the factors that may cause actual results or other future events or circumstances to differ from those in forward-looking statements include: • evolving political, business, economic, and market conditions at local, regional, national, and international levels; • monetary, fiscal, and trade laws or policies, including as a result of actions by governmental agencies, central banks, or supranational authorities; • the legal, regulatory, and supervisory environment, including changes in financial-services legislation, regulation, policies, or government officials or other personnel; • our ability to address heightened scrutiny and expectations from supervisory or other governmental authorities and to timely and credibly remediate related concerns or deficiencies; • judicial, regulatory, and administrative inquiries, examinations, investigations, proceedings, disputes, or rulings that create uncertainty for or are adverse to us or the financial-services industry; • the outcomes of judicial, regulatory, and administrative inquiries, examinations, investigations, proceedings, or disputes to which we are or may be subject and our ability to absorb and address any damages or other remedies that are sought or awarded and any collateral consequences; • evolving accounting standards and policies; • the adequacy of our corporate governance, risk-management framework, compliance programs, and internal controls over financial reporting, including our ability to control lapses or deficiencies in financial reporting, to make appropriate estimates, or to effectively mitigate or manage operational risk; • any instability or breakdown in the financial system, including as a result of the actual or perceived soundness of another financial institution or another participant in the financial system; • disruptions and shifts in investor sentiment or behavior in the securities, capital, or other financial markets, including financial or systemic shocks and volatility or changes in market liquidity, interest or currency rates, or valuations; • our ability to cost-effectively fund our businesses and operations, including by accessing long- and short-term funding and liquidity and by retaining and growing client deposits; • changes in any of our credit ratings; • our ability to manage any unexpected outflows of uninsured deposits and avoid selling investment securities or other assets at an unfavorable time or at a loss; • negative market perceptions of our investment portfolio or its value; • adverse publicity or other reputational harm to us, our service providers, or our senior officers; • business and consumer sentiment, preferences, or behavior, including spending, borrowing, or saving by businesses or households; • our ability to execute on strategic and operational plans, including simplifying our businesses, achieving cost-savings targets and lowering expense growth, accelerating franchise momentum, and improving our capital position; • changes in our corporate and business strategies, the composition of our assets, or the way in which we fund those assets; • our ability to successfully make and integrate acquisitions and to effect divestitures, including the ability to successfully deploy the proceeds from the sale of TIH and perform our obligations under the transition services arrangements supporting TIH in a cost-effective and efficient manner; • our ability to develop, maintain, and market our products or services or to absorb unanticipated costs or liabilities associated with those products or services; • our ability to innovate, to anticipate the needs of current or future clients, to successfully compete, to increase or hold market share in changing competitive environments, or to deal with pricing or other competitive pressures; • our ability to maintain secure and functional financial, accounting, technology, data processing, or other operating systems or infrastructure, including those that safeguard personal and other sensitive information; • our ability to appropriately underwrite loans that we originate or purchase and to otherwise manage credit risk, including in connection with commercial and consumer mortgage loans; • our ability to satisfactorily and profitably perform loan servicing and similar obligations; • the credit, liquidity, or other financial condition of our clients, counterparties, service providers, or competitors; • our ability to effectively deal with economic, business, or market slowdowns or disruptions; • the efficacy of our methods or models in assessing business strategies or opportunities or in valuing, measuring, estimating, monitoring, or managing positions or risk; • our ability to keep pace with changes in technology that affect us or our clients, counterparties, service providers, or competitors or to maintain rights or interests in associated intellectual property; • our ability to attract, hire, and retain key teammates and to engage in adequate succession planning; • the performance and availability of third-party service providers on whom we rely in delivering products and services to our clients and otherwise in conducting our business and operations; • our ability to detect, prevent, mitigate, and otherwise manage the risk of fraud or misconduct by internal or external parties; our ability to manage and mitigate physical-security and cybersecurity risks, including denial-of-service attacks, hacking, phishing, social-engineering attacks, malware intrusion, data-corruption attempts, system breaches, identity theft, ransomware attacks, environmental conditions, and intentional acts of destruction; • natural or other disasters, calamities, and conflicts, including terrorist events, cyber-warfare, and pandemics; • widespread outages of operational, communication, and other systems; • our ability to maintain appropriate ESG practices, oversight, and disclosures; • policies and other actions of governments to manage and mitigate climate and related environmental risks, and the effects of climate change or the transition to a lower-carbon economy on our business, operations, and reputation; and • other assumptions, risks, or uncertainties described in the Risk Factors (Item 1A), Management’s Discussion and Analysis of Financial Condition and Results of Operations (Item 7), or the Notes to the Consolidated Financial Statements (Item 8) in our Annual Report on Form 10-K or described in any of the Company’s subsequent quarterly or current reports. Any forward-looking statement made by us or on our behalf speaks only as of the date that it was made. We do not undertake to update any forward-looking statement to reflect the impact of events, circumstances, or results that arise after the date that the statement was made, except as required by applicable securities laws. You, however, should consult further disclosures (including disclosures of a forward-looking nature) that we may make in any subsequent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, or Current Report on Form 8-K. Forward-Looking Statements
3 Non-GAAP Information This presentation contains financial information and performance measures determined by methods other than in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Truist’s management uses these “non-GAAP” measures in their analysis of the Corporation's performance and the efficiency of its operations. Management believes these non-GAAP measures are useful to investors because they provide a greater understanding of ongoing operations, enhance comparability of results with prior periods and demonstrate the effects of significant items in the current period. The Company believes a meaningful analysis of its financial performance requires an understanding of the factors underlying that performance. These disclosures should not be viewed as a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Below is a listing of the types of non-GAAP measures used in this presentation: Adjusted Net income Available to Common Shareholders and Adjusted Diluted Earnings Per Share - Adjusted net income available to common shareholders and diluted earnings per share are non-GAAP in that these measures exclude selected items, net of tax. Truist’s management uses these measures in their analysis of the Corporation’s performance. Truist’s management believes these measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods, as well as demonstrate the effects of significant gains and charges. Adjusted Efficiency Ratio, Adjusted Fee Income, and Related Measures - The adjusted efficiency ratio is non-GAAP in that it excludes securities gains and losses, amortization of intangible assets, restructuring charges, and other selected items. Adjusted revenue and adjusted noninterest expense are related measures used to calculate the adjusted efficiency ratio. Additionally, the adjusted fee income ratio is non-GAAP in that it excludes securities gains and losses and other selected items, and is calculated using adjusted revenue and adjusted noninterest income. Adjusted revenue and adjusted noninterest income exclude securities gains and losses and other selected items. Adjusted noninterest expense excludes amortization of intangible assets, restructuring charges, and other selected items. Truist’s management calculated these measures based on the Company’s continuing operations. Truist’s management uses these measures in their analysis of the Corporation’s performance. Truist’s management believes these measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods, as well as demonstrate the effects of significant gains and charges. Pre-Provision Net Revenue (PPNR) - Pre-provision net revenue is a non-GAAP measure that adjusts net income determined in accordance with GAAP to exclude the impact of the provision for credit losses and provision for income taxes. Adjusted pre-provision net revenue is a non- GAAP measure that additionally excludes securities gains (losses), restructuring charges, amortization of intangible assets, and other selected items. Truist’s management calculated these measures based on the Company’s continuing operations. Truist’s management believes these measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods. Tangible Common Equity and Related Measures - Tangible common equity and related measures are non-GAAP measures that exclude the impact of intangible assets, net of deferred taxes, and their related amortization and impairment charges. These measures are useful for evaluating the performance of a business consistently, whether acquired or developed internally. Truist’s management uses these measures to assess profitability, returns relative to balance sheet risk, and shareholder value.
4
Financial Results
6 – Solid second quarter results driven by net interest income growth, expense discipline, and stable asset quality – Completed the sale of Truist Insurance Holdings (TIH), which significantly strengthened our relative capital position – Repositioned our balance sheet, which is expected to replace TIH’s earnings contribution – Announced up to a $5 billion multi-year share repurchase authorization with buybacks expected to commence in 3Q24 – Focused on pursuing growth opportunities in our core business and maintaining expense and risk discipline 1 Adjusted metrics exclude selected items; see appendix for non-GAAP reconciliations 2 Adjusted net income available to common not adjusted for restructuring charges of $73 million (after-tax) 3 Adjusted diluted EPS not adjusted for restructuring charges of $0.05 (after-tax) 6 Reported Adjusted1 Net income available from continuing operations Per share $1,232 $0.91 Net income available from discontinued operations Per share $4,809 $3.60 $3 $0.00 Net income available to common shareholders2 Per share3 $826 $0.62 $1,235 $0.91 $(3,983) $(2.98) 2Q24 key takeaways $ in millions, except per share data
7 Deposit growth fueled by digital onboarding 23 25 27 28 32 2Q23 3Q23 4Q23 1Q24 2Q24 Client preferences continue to shift toward mobile 4.6 4.7 4.8 4.8 4.9 2Q23 3Q23 4Q23 1Q24 2Q24 1 Active users reflect clients that have logged in using the mobile app over the prior 90 days 2 Digital transactions include transfers, Zelle, bill payments, mobile deposits, ACH, and wire transfers 3 Self-service deposits include incoming Zelle, ATM check deposits, and mobile check deposits (including small business online) Mobile app users1 Digital transactions2 Self-service deposits3 Zelle transactions 74% 75% 76% 77% 78% 2Q23 3Q23 4Q23 1Q24 2Q24 +7% +400 bps +39% (in millions) (in millions) – Reimagined consumer and small business deposit application experience delivers personalized account recommendations – Enhanced account opening experience contributed to 42% lift over 2Q23 in digital checking account production among Gen Z and Millennials – Digital consumer deposit account production increased 14% YoY with opening balances up 60% over the same period – Modernized small business digital onboarding experience resulted in new highs in application completion rates up 790 bps post-redesign – Small business digital adoption continues to climb, with active clients increasing 10% YoY, averaging 30 logins per month 71 72 75 76 80 2Q23 3Q23 4Q23 1Q24 2Q24 +13% (in millions)
8 – Completed sale of remaining 80% stake in TIH at an implied valuation of $15.5 billion – Received $10.1 billion of after-tax proceeds – Recorded an after-tax gain of $4.8 billion – Created $9.5 billion1 of CET1 capital and generated 230 bps of CET1 capital under current rules and 254 bps2 under proposed fully phased-in Basel 3 rules – Increased tangible book value per share by 33%3 Recap of strategic actions completed on May 6th 1 $9.5 billion of capital comprised of a $4.8 billion after-tax gain and a $4.6 billion benefit from the deconsolidation of TIH’s intangibles net of deferred tax liabilities. May not foot due to rounding. 2 CET1 impacts under proposed rules are preliminary and represent management’s current interpretation of the proposed rules. Impact greater under fully phased-in Basel 3 rules primarily due to a reduction in threshold deductions. 3 Tangible common equity and related measures exclude certain items 4 Includes the impact of hedges and based on Federal Funds future curve as of 5/6/24 5 Investable proceeds of $39.4 billion are comprised of $29.3 billion from the balance sheet repositioning (includes $1.6 billion tax benefit) and $10.1 billion of after-tax proceeds from the sale of TIH Closed sale of Truist Insurance Holdings (TIH) Executed strategic balance sheet repositioning – Sold $27.7 billion of market value investment securities with a weighted average book yield of 2.80%4 – Recorded an after-tax loss of $5.1 billion – Purchased $18.7 billion of new shorter duration investment securities yielding 5.27% and held remaining proceeds of $20.7 billion in cash4 – Reinvested $39.4 billion5 at a blended reinvestment rate of 5.22%4, which is expected to replace TIH’s earnings – Sale of TIH and balance sheet repositioning generated more than 300 bps2 of CET1 capital under proposed fully phased-in Basel 3 rules 1 2
9 Earnings – Net income available to common shareholders was $826 million, or $0.62 per share – Net loss available to common shareholders from continuing operations of $4.0 billion, or $2.98 per share, which included: – $6.7 billion ($5.1 billion after-tax), or $3.80 per share loss on the sale of certain AFS investment securities – $150 million ($115 million after-tax), or $0.09 per share charitable contribution to the Truist Foundation – $33 million ($26 million after-tax), or $0.02 per share of restructuring charges – $13 million ($11 million after-tax), or $0.01 per share for an FDIC special assessment adjustment – Net income available to common shareholders from discontinued operations of $4.8 billion, or $3.60 per share, which included: – $6.9 billion ($4.8 billion after-tax), or $3.60 per share gain from the sale of TIH – $63 million ($47 million after-tax), or $0.03 per share of restructuring charges – $10 million ($8 million after-tax), or $0.01 per share for the accelerated recognition of TIH equity-based compensation Revenue and expenses – Adjusted revenue increased 3.0% vs. 1Q24 primarily largely due to the reinvestment of the proceeds from the sale of TIH and balance sheet repositioning – Adjusted noninterest expense increased 2.6% vs. 1Q24 due to higher personnel expense and professional fees Capital and credit – CET1 increased 150 bps primarily due to the net impact of the sale of TIH and balance sheet repositioning – TBVPS2 increased 34% primarily due to the gain on the sale of TIH – NCOs decreased 6 bps to 58 bps and the ALLL ratio increased 1 bp to 1.57% 2Q24 performance highlights Note: All data points are taxable-equivalent, where applicable Current quarter regulatory capital information is preliminary 1 Amounts presented represent results from continuing operations unless otherwise noted 2 Adjusted metrics exclude selected items; see appendix for non-GAAP reconciliations 3 These non-GAAP metrics do not adjust for restructuring charges for 2023 periods Summary income statement1 Commentary1 $ in millions, except per share data GAAP / Unadjusted 2Q24 1Q24 2Q23 Revenue $(1,632) $4,871 $5,037 Expense $3,094 $2,953 $3,046 PPNR $(4,726) $1,918 $1,991 Net income (loss) available to common from cont. ops $(3,983) $1,027 $1,094 Net income available to common from discontinued ops $4,809 $64 $140 Net income available to common shareholders $826 $1,091 $1,234 Diluted EPS from continuing ops $(2.98) $0.76 $0.82 Diluted EPS from discontinued ops $3.60 $0.05 $0.10 Diluted EPS $0.62 $0.81 $0.92 Net interest margin 3.03% 2.89% 2.90% Efficiency ratio NM 61.3% 61.1% CET1 ratio 11.6% 10.1% 9.6% Change vs. Adjusted2 2Q24 1Q24 2Q23 Revenue $5,018 3.0% (0.4)% Expense $2,809 2.6% (3.0)% PPNR $2,209 3.6% 3.1% Net income available to common from cont. ops $1,232 13.7% 12.6% Net income available to common from discontinued ops $3 NM NM Net income available to common shareholders3 $1,235 1.6% 0.1% Diluted EPS from continuing ops3 $0.91 13.8% 11.0% Diluted EPS from discontinued ops3 $— NM NM Diluted EPS $0.91 1.1% (1.1)% Efficiency ratio 56.0% (20) bps (150) bps
10 $326 $318 $313 $309 $306 $195 $193 $190 $188 $187 $131 $125 $123 $121 $120 6.07% 6.25% 6.36% 6.38% 6.44% Commercial LHFI Consumer and card LHFI Loans HFI yield (%) 2Q23 3Q23 4Q23 1Q24 2Q24 Average loans and leases HFI $ in billions – Average loans decreased $2.3 billion, or 0.7%, from 1Q24 – Average commercial loans decreased $1.3 billion, or 0.7% primarily due to a decline in C&I driven in part by capital markets activity – Average consumer loans decreased $1.0 billion, or 0.9% largely due to an approximate $600 million decline in mortgage loans and an approximate $400 million decline in indirect auto 5-quarter trend Vs. linked quarter May not foot due to rounding
11 Average deposits $ in billions $400 $401 $395 $389 $388 $276 $282 $281 $280 $280 $124 $119 $115 $109 $108 1.53% 1.84% 1.92% 2.03% 2.09% Interest-bearing deposits Noninterest-bearing deposits Total deposit cost (%) 2Q23 3Q23 4Q23 1Q24 2Q24 Cumulative beta calculations are based on change in average total deposit or interest-bearing deposit cost divided by change in average Fed Funds rate from 4Q21 to 2Q24, respectively May not foot due to rounding – Average deposits decreased $1.0 billion, or 0.3% – Average noninterest-bearing deposits decreased $1.3 billion, or 1.2% – Represented 28% of total deposits, which is consistent with 1Q24 – Average time deposits decreased ~$700 million, or 1.6% – Average money market and savings increased ~$600 million, or 0.4% – Average interest checking increased ~$400 million, or 0.3% – Deposit costs increased primarily due to continued mix shift from lower cost deposit accounts – Total cost of deposits was 209 bps, up 6 bps from the prior quarter – Cumulative total deposit beta was 39% in 2Q24 vs. 38% in 1Q24 – Total cost of interest-bearing deposits was 289 bps, up 7 bps from the prior quarter – Cumulative interest-bearing deposit beta was 54% in 2Q24 vs. 53% in 1Q24 Vs. linked quarter 5-quarter trend
12 $3,657 $3,592 $3,577 $3,425 $3,580 2.90% 2.93% 2.96% 2.89% 3.03% Net interest income TE ($ MM) Net interest margin (%) 2Q23 4Q23 4Q23 1Q24 2Q24 – Net interest income increased 4.5% primarily due to the impact of the proceeds from the sale of TIH and balance sheet repositioning – Excluding the impact of the proceeds from TIH and the balance sheet repositioning, net interest income was stable – NIM increased 14 bps to 3.03% primarily due to the balance sheet repositioning – Net interest income decreased 2.1% due to higher funding costs and lower earning assets, partially offset by the balance sheet repositioning – NIM increased 13 bps due to balance sheet repositioning and optimization efforts, partially offset by the impact of higher funding costs Net interest income and net interest margin Vs. linked quarter5-quarter trend Vs. like quarter $ in millions
13 – Noninterest income declined $6.6 billion due to losses on securities sold – Adjusted noninterest income increased 4.2% due to higher investment banking and trading income and wealth management income – Noninterest income declined $6.7 billion due to losses on securities sold as part of the balance sheet repositioning – Adjusted noninterest income decreased 0.6% primarily due to lower investment banking and trading income, partially offset by higher mortgage banking income Noninterest income Vs. linked quarter Vs. like quarter Noninterest income 2Q24 1Q24 2Q23 Wealth management income $ 361 $ 356 $ 330 Investment banking and trading income 286 323 211 Service charges on deposits 232 225 240 Card and payment related fees 230 224 236 Mortgage banking income 112 97 99 Lending related fees 89 96 86 Operating lease income 50 59 64 Securities gains (losses) (6,650) — — Other income 78 66 114 Total noninterest income $ (5,212) $ 1,446 $ 1,380 Securities gains (losses) $ 6,650 $ — $ — Adjusted noninterest income $ 1,438 $ 1,446 $ 1,380 $ in millions
14 – Noninterest expense increased $141 million, or 4.8% – Driven primarily by a $150 million charitable contribution to the Truist Foundation – Partially offset by FDIC special assessment costs declining $62 million to $13 million – Adjusted noninterest expense increased $70 million, or 2.6% – Driven primarily by higher personnel expense and professional fees – Noninterest expense increased $48 million, or 1.6% – Driven primarily by a $150 million charitable contribution to the Truist Foundation – Partially offset by lower personnel expense due to lower headcount – Adjusted noninterest expense decreased $86 million, or 3.0% – Driven primarily by lower headcount across most lines of business Noninterest expense Vs. linked quarter Vs. like quarter $54 Adjusted noninterest expense excludes restructuring charges, amortization, and other items. See appendix for non-GAAP reconciliation. 2Q24 1Q24 2Q23 Personnel expense $ 1,661 $ 1,630 $ 1,705 Professional fees and outside processing 308 278 311 Software expense 218 224 223 Net occupancy expense 160 160 166 Amortization of intangibles 89 88 99 Equipment expense 89 88 87 Marketing and customer development 63 56 69 Depreciation-property under operating leases 34 40 44 Regulatory costs 85 152 73 Restructuring charges 33 51 48 Goodwill impairment — — — Other expense 354 186 221 Total noninterest expense $ 3,094 $ 2,953 $ 3,046 Charitable contribution $ 150 $ — $ — FDIC special assessment 13 75 — Gain (loss) on early extinguishment of debt — — 4 Restructuring charges 33 51 48 Amortization of intangibles 89 88 99 Adjusted noninterest expense $ 2,809 $ 2,739 $ 2,895 Noninterest expense $ in millions
15 $538 $497 $572 $500 $451 2Q23 3Q23 4Q23 1Q24 2Q24 NPLs were relatively stable on a linked-quarter basis Stable credit performance and solid economic conditions drove a lower linked-quarter provision ($ in MM) $440 $405 $453 $490 $442 0.54% 0.51% 0.57% 0.64% 0.58% NCO NCO ratio 2Q23 3Q23 4Q23 1Q24 2Q24 NCO ratio decreased 6 bps on a linked-quarter basis primarily reflecting lower losses in consumer ($ in MM) Asset quality 4.5x 9.0x 8.8x Net charge-offs Provision for credit losses Nonperforming loans / LHFI ALLL $4,606 $4,693 $4,798 $4,803 $4,808 ALLL ALLL ratio ALLL / NCO 2Q23 3Q23 4Q23 1Q24 2Q24 ALLL ratio increased 1 bp on a linked-quarter basis ($ in MM) 0.47% 0.46% 0.44% 0.45% 0.46% 2Q23 3Q23 4Q23 1Q24 2Q24 2.6X 2.9X 1.43% 1.49% 2.7X 1.54% 2.4X 1.56% 2.7X 1.57%
16 1Q24 CET1 ratio Sale of TIH Strategic balance sheet repositioning Organic capital growth 2Q24 CET1 ratio Capital 9.9% ~0.2% 10.1% 1 2 2.3% 11.6% 2Q24 capital walk 1 Organic capital generation is retained earnings net of dividend 2 Current quarter regulatory capital information is preliminary 3 Peers consist of BAC, CFG, FITB, JPM, KEY, MTB, PNC, RF, USB, and WFC 4 The estimated fully phased in Basel 3 CET 1 ratio and other impacts estimated under the proposed rules is preliminary and represents management's current interpretation of the proposed rules, which includes the impact of AOCI, risk-weighted assets inflation and the threshold deduction adjustments. Commentary (1.0%) 7.3% min. req. effective 10/1/24 Sale of TIH creates capital advantage – Generated 230 bps of CET1 under current rules and 254 bps under proposed rules4 – Completed balance sheet repositioning that is expected to replace TIH’s earnings – CET1 ratio increased 150 bps linked-quarter to 11.6% at 6/30/24 Well positioned to grow and return capital to shareholders – Pursuing growth in our consumer and wholesale banking businesses – Announced up to a $5 billion multi-year share repurchase authorization through 2026 with buybacks expected to commence in 3Q24 – Intend to maintain strong common stock dividend Favorable 2024 CCAR stress test results – Second lowest C&I loan loss rates and third lowest CET1 erosion rate among peers3 – Expect stress capital buffer to improve from 2.9% to 2.8% effective 10/1/24 – CET1 ratio at 6/30/24 430 bps higher than our regulatory minimum of 7.3% effective 10/1/24 Well positioned for regulatory framework changes – Estimated fully phased-in Basel 3 CET1 ratio increased ~320 bps to 9.1%4 at 6/30/24 – Truist’s consolidated LCR was 110% at 6/30/24 – Expect to meet proposed long-term debt requirements through normal course debt issuance
17 13.9% 3Q24 and 2024 outlook All data points are taxable-equivalent, where applicable Adjusted expenses exclude amortization of intangibles, restructuring charges, and other selected items Adjusted revenues exclude securities gains (losses) and other selected items See non-GAAP reconciliations in the appendix 2Q24 actuals 3Q24 outlook Adjusted revenue (TE) $5.0 Up 1-2% Adjusted expenses $2.8 Up 3% Tax rate ~16% effective; ~19% on FTE basis Full year 2023 actuals Full year 2024 outlook Adjusted revenue (TE) $20.2 Down 0.5-1% Adjusted expenses $11.4 Flat Net charge-off ratio 50 bps ~65 bps Fu ll ye ar 2 02 4 co m pa re d to fu ll ye ar 2 02 3 3Q 24 co m pa re d to 2 Q 24 Based on continuing operations; $ in billions unless otherwise noted
18 2024 strategic priorities Pursue growth opportunities in our businesses Maintain expense discipline to fund investments in our franchise Return capital to shareholders through repurchases and our dividend Maintain and strengthen sound risk controls and strong asset quality metrics Enhance the client experience through T3 (touch + technology = trust)
Appendix
A-20 Multi Tenant 89% Medical 9% Single Tenant 2% Hotel 8% Industrial 18% Office 15% Multifamily 35% Retail 14% Other 10% 11.1% 11.3% 11.7% 13.7% 13.5% 1.01% 1.09% 1.05% 0.96% 1.22% 0.49% 1.02% 0.70% 1.30% 1.23% Criticized & classified ratio NPL ratio NCO ratio 2Q23 3Q23 4Q23 1Q24 2Q24 CRE 9.7% 17% 30% 16% 15% 22% 2024 2025 2026 2027 2028 and beyond Commercial real estate (CRE) spotlight 5-quarter total CRE trends Total LHFI at 6/30/24 ($306B) CRE Office 1.6% CRE Mix Scheduled Office maturities CRE represents 9.7% of total loans HFI, including Office at 1.6% NPL% 6.3% LTM NCO ratio 6.3% Loan loss reserves 9.7% WALTV ~64% % in Truist Southeast/ Mid-Atlantic footprint ~75% Office spotlight All other loans 90.3% CRE information on this slide includes the commercial construction portfolio Gateway markets include: Washington, DC, San Francisco, New York, Chicago, Los Angeles, Boston, and Miami WALTV based on most recent appraisal conducted A-1 Office portfolio primarily composed of Multi Tenant, Non Gateway properties within footprint Gateway 37% Non Gateway 63% Tenant Type Market Type
A-2 Consumer and Small Business Banking Income statement ($ MM) 2Q24 vs. 1Q24 vs. 2Q23 Net interest income $2,628 $25 $2 Allocated provision for credit losses 309 6 82 Noninterest income 507 4 (7) Noninterest expense 1,645 — 29 Segment net income (loss) $898 $19 $(90) Balance Sheet ($ B) Average loans(1) $125 $(0.2) $(12) Average deposits 213 0.8 (6.4) Other Key Metrics(2) Mortgages serviced for others ($ B) $208 $(2.4) $(15) Branches 1,930 — (72) (1) Excludes loans held for sale (2) Amount reported reflects end of period balance Represents performance for Branch and Premier Banking, Consumer Lending, and Small Business Banking – Net income of $898 million, compared to $879 million in the prior quarter – Net interest income of $2.6 billion increased slightly by $25 million, or 1.0% vs. 1Q24, primarily driven by higher funding credit on deposits – Average loans held for investment of $125 billion declined 0.1% vs. 1Q24 primarily driven by lower residential mortgage, prime auto and unsecured loans, partially offset by mortgage warehouse lending – Average deposits of $213 billion increased 0.4% vs. 1Q24, reflecting moderating impact of consumer response to higher rates – Provision for credit losses increased $6 million, or 2.0% vs. 1Q24, primarily driven by an allowance build in the current quarter compared to a modest release in 1Q24, partially offset by a decrease in net charge-offs – Noninterest income of $507 million increased $4 million, or 0.8% vs. 1Q24, primarily driven by higher service charges and seasonally higher card and payment related fees, partially offset by lower mortgage income – Mortgages serviced for others decreased 1.1% vs. 1Q24, primarily driven by higher BAU runoff – Noninterest expense of $1.6 billion is flat vs. 1Q24, primarily driven by lower FDIC special assessment in the prior quarter, offset by higher medical claims, marketing expenses and operating charge-offs – Branch count down 3.6% vs. 2Q23 due to branch network optimization Metrics Commentary
A-3 Wholesale Banking – Net income of $954 million, compared to $884 million in the prior quarter – Net interest income of $1.7 billion was flat vs. the prior quarter – Average loans of $181 billion decreased $2.2 billion, or 1.2%, primarily related to lower C&I balances – Average deposits of $141 billion decreased $2.1 billion, or 1.5%, related to seasonal tax outflows – Provision for credit losses of $142 million decreased $56 million, or 28.3%, primarily due to lower loan balances – Noninterest income of $991 million increased $8 million, or 0.9%, primarily driven by higher CMSR valuation and higher income on certain equity investments, partially offset by lower investment banking income – Noninterest income increased $100 million, or 11.2%, vs. 2Q23 primarily driven by strong capital markets revenues – Noninterest expense of $1.3 billion decreased $26 million, or 1.9% from 1Q24 primarily related to a 1Q24 FDIC special assessment of $63 million – Excluding the FDIC assessment expense, noninterest expense of $1.3 billion increased $25 million vs. 1Q24 (1) Excludes loans held for sale Metrics Commentary Income statement ($ MM) 2Q24 vs. 1Q24 vs. 2Q23 Net interest income $1,690 $3 ($77) Allocated provision for credit losses 142 (56) (167) Noninterest income 991 8 100 Noninterest expense 1,348 (26) 51 Segment net income $954 $70 $105 Balance sheet ($ B) Average loans(1) $181 $(2.2) ($8.0) Average deposits 141 (2.1) (7.4) Represents performance for Commercial Banking, Corporate and Investment Banking, CRE, Wholesale Payments, and Wealth
A-4 Preferred dividend 3Q24 4Q24 1Q25 2Q25 Estimated dividends based on projected interest rates and amounts outstanding ($ MM) $106 $77 $126 $75 Estimates assume forward-looking interest rates as of 6/30/24. Actual interest rates could vary significantly causing dividend payments to differ from the estimates shown above.
Non-GAAP Reconciliations
A-6 Quarter Ended Year-to-Date June 30 March 31 Dec. 31 Sept. 30 June 30 June 30 June 30 2024 2024 2023 2023 2023 2024 2023 Net income (loss) available to common shareholders from continuing operations $ (3,983) $ 1,027 $ (5,268) $ 1,003 $ 1,094 $ (2,956) $ 2,401 Securities (gains) losses 5,089 — — — — 5,089 — Goodwill impairment — — 6,078 — — — — Charitable contribution 115 — — — — 115 — FDIC special assessment 11 57 387 — — 68 — Discrete tax benefit — — (204) — — — — Adjusted net income available to common shareholders from continuing operations(1) $ 1,232 $ 1,084 $ 993 $ 1,003 $ 1,094 $ 2,316 $ 2,401 Net Income available to common shareholders from discontinued operations $ 4,809 $ 64 $ 101 $ 68 $ 140 $ 4,873 $ 243 Accelerated TIH equity compensation expense 8 68 — — — 76 — Gain on sale of TIH (4,814) — — — — (4,814) — Adjusted net income available to common shareholders from discontinued operations(1) $ 3 $ 132 $ 101 $ 68 $ 140 $ 135 $ 243 Net income (loss) available to common shareholders $ 826 $ 1,091 $ (5,167) $ 1,071 $ 1,234 $ 1,917 $ 2,644 Adjusted net income available to common shareholders(1) 1,235 1,216 1,094 1,071 1,234 2,451 2,644 Weighted average shares outstanding - diluted (GAAP net income (loss) available to common shareholders)(2) 1,338,149 1,346,904 1,333,703 1,340,574 1,337,307 1,336,620 1,338,346 Weighted average shares outstanding - diluted (adjusted net income available to common shareholders)(2) 1,349,953 1,346,904 1,342,790 1,340,574 1,337,307 1,348,523 1,338,346 Diluted EPS from continuing operations(2) $ (2.98) $ 0.76 $ (3.95) $ 0.75 $ 0.82 $ (2.21) $ 1.79 Diluted EPS from continuing operations - adjusted(1)(2) 0.91 0.80 0.74 0.75 0.82 1.72 1.79 Diluted EPS from discontinued operations(2) 3.60 0.05 0.08 0.05 0.10 3.64 0.19 Diluted EPS from discontinued operations - adjusted(1)(2) — 0.10 0.07 0.05 0.10 0.10 0.18 Diluted EPS(2) 0.62 0.81 (3.87) 0.80 0.92 1.43 1.98 Diluted EPS - adjusted(1)(2) 0.91 0.90 0.81 0.80 0.92 1.82 1.98 Non-GAAP reconciliations Adjusted Net Income and Diluted EPS $ in millions, except per share data, shares in thousands (1) Adjusted net income available to common shareholders and diluted earnings per share are non-GAAP in that these measures exclude selected items, net of tax. Truist’s management uses these measures in their analysis of the Corporation’s performance. Truist’s management believes these measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods, as well as demonstrate the effects of significant gains and charges. (2) For periods ended with a net loss available to common shareholders from continuing operations, anti-dilutive financial instruments have been excluded from the calculation of GAAP diluted EPS. Adjusted diluted EPS calculations include the impact of outstanding equity-based awards for all periods.
A-7 Non-GAAP reconciliations Efficiency ratio and fee income ratio from continuing operations $ in millions (1) Revenue is defined as net interest income plus noninterest income. (2) The adjusted efficiency ratio is non-GAAP in that it excludes securities gains and losses, amortization of intangible assets, restructuring charges, and other selected items. Adjusted revenue and adjusted noninterest expense are related measures used to calculate the adjusted efficiency ratio. Additionally, the adjusted fee income ratio is non-GAAP in that it excludes securities gains and losses and other selected items, and is calculated using adjusted revenue and adjusted noninterest income. Adjusted revenue and adjusted noninterest income exclude securities gains and losses and other selected items. Adjusted noninterest expense excludes amortization of intangible assets, restructuring charges, and other selected items. Truist’s management calculated these measures based on the Company’s continuing operations. Truist’s management uses these measures in their analysis of the Corporation’s performance. Truist’s management believes these measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods, as well as demonstrate the effects of significant gains and charges. Quarter Ended Year-to-Date June 30 March 31 Dec. 31 Sept. 30 June 30 June 30 June 30 2024 2024 2023 2023 2023 2024 2023 Efficiency ratio numerator - noninterest expense - GAAP $ 3,094 $ 2,953 $ 9,557 $ 3,060 $ 3,046 $ 6,047 $ 6,061 Restructuring charges, net (33) (51) (155) (61) (48) (84) (104) Gain (loss) on early extinguishment of debt — — — — (4) — (4) Goodwill impairment — — (6,078) — — — — Amortization of intangibles (89) (88) (98) (98) (99) (177) (199) Charitable contribution (150) — — — — (150) — FDIC special assessment (13) (75) (507) — — (88) — Efficiency ratio numerator - adjusted noninterest expense(2) $ 2,809 $ 2,739 $ 2,719 $ 2,901 $ 2,895 $ 5,548 $ 5,754 Fee income numerator - noninterest income - GAAP $ (5,212) $ 1,446 $ 1,363 $ 1,334 $ 1,380 $ (3,766) $ 2,801 Securities (gains) losses, net 6,650 — — — — 6,650 — Fee income numerator - adjusted noninterest income(2) $ 1,438 $ 1,446 $ 1,363 $ 1,334 $ 1,380 $ 2,884 $ 2,801 Efficiency ratio and fee income ratio denominator - revenue(1) - GAAP $ (1,685) $ 4,818 $ 4,882 $ 4,869 $ 4,983 $ 3,133 $ 10,271 Taxable equivalent adjustment 53 53 58 57 54 106 105 Securities (gains) losses 6,650 — — — — 6,650 — Efficiency ratio and fee income ratio denominator - adjusted revenue(1)((2) $ 5,018 $ 4,871 $ 4,940 $ 4,926 $ 5,037 $ 9,889 $ 10,376 Efficiency ratio - GAAP (183.6) % 61.3 % 195.8 % 62.9 % 61.1 % 193.0 % 59.0 % Efficiency ratio - adjusted(2) 56.0 56.2 55.0 58.9 57.5 56.1 55.4 Fee income ratio - GAAP 309.3 % 30.0 % 27.9 % 27.4 % 27.7 % (120.2) % 27.3 % Fee income ratio - adjusted(2) 28.7 29.7 27.6 27.1 27.4 29.2 27.0
A-8 Non-GAAP reconciliations Pre-provision net revenue $ in millions (1) Pre-provision net revenue is a non-GAAP measure that adjusts net income determined in accordance with GAAP to exclude the impact of the provision for credit losses and provision for income taxes. Adjusted pre-provision net revenue is a non-GAAP measure that additionally excludes securities gains (losses), restructuring charges, amortization of intangible assets, and other selected items. Truist’s management calculated these measures based on the Company’s continuing operations. Truist’s management believes these measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods. Quarter Ended Year-to-Date June 30 March 31 Dec. 31 Sept. 30 June 30 June 30 June 30 2024 2024 2023 2023 2023 2024 2023 Net income from continuing operations $ (3,906) $ 1,133 $ (5,191) $ 1,109 $ 1,169 $ (2,773) $ 2,579 Provision for credit losses 451 500 572 497 538 951 1,040 Provision for income taxes (1,324) 232 (56) 203 230 (1,092) 591 Taxable-equivalent adjustment 53 53 58 57 54 106 105 Pre-provision net revenue(1) $ (4,726) $ 1,918 $ (4,617) $ 1,866 $ 1,991 $ (2,808) $ 4,315 Restructuring charges, net 33 51 155 61 48 84 104 Gain (loss) on early extinguishment of debt — — — — 4 — 4 Goodwill impairment — — 6,078 — — — — Amortization of intangibles 89 88 98 98 99 177 199 Charitable contribution 150 — — — — 150 — FDIC special assessment 13 75 507 — — 88 — Securities (gains) losses 6,650 — — — — 6,650 — Pre-provision net revenue - adjusted(1) $ 2,209 $ 2,132 $ 2,221 $ 2,025 $ 2,142 $ 4,341 $ 4,622
A-9 Non-GAAP reconciliations Calculations of tangible common equity and related measures $ in millions, except per share data, shares in thousands (1) Tangible common equity and related measures are non-GAAP measures that exclude the impact of intangible assets, net of deferred taxes, and their related amortization and impairment charges. These measures are useful for evaluating the performance of a business consistently, whether acquired or developed internally. Truist’s management uses these measures to assess profitability, returns relative to balance sheet risk, and shareholder value. These measures are not necessarily comparable to similar measures that may be presented by other companies. As of / Quarter Ended Year-to-Date June 30 March 31 Dec. 31 Sept. 30 June 30 June 30 June 30 2024 2024 2023 2023 2023 2024 2023 Common shareholders’ equity $ 57,154 $ 52,148 $ 52,428 $ 55,167 $ 56,853 Less: Intangible assets, net of deferred taxes (including discontinued operations) 18,471 23,198 23,306 29,491 29,628 Tangible common shareholders’ equity(1) $ 38,683 $ 28,950 $ 29,122 $ 25,676 $ 27,225 Outstanding shares at end of period 1,338,223 1,338,096 1,333,743 1,333,668 1,331,976 Common shareholders’ equity per common share $ 42.71 $ 38.97 $ 39.31 $ 41.37 $ 42.68 Tangible common shareholders’ equity per common share(1) 28.91 21.64 21.83 19.25 20.44 Net income available to common shareholders $ 826 $ 1,091 $ (5,167) $ 1,071 $ 1,234 $ 1,917 $ 2,644 Plus: goodwill impairment — — 6,078 — — — — Plus: amortization of intangibles, net of tax (including discontinued operations) 68 84 99 99 100 152 204 Tangible net income available to common shareholders(1) $ 894 $ 1,175 $ 1,010 $ 1,170 $ 1,334 $ 2,069 $ 2,848 Average common shareholders’ equity $ 54,863 $ 52,167 $ 56,061 $ 56,472 $ 57,302 $ 53,515 $ 56,346 Less: Average intangible assets, net of deferred taxes (including discontinued operations) 20,406 23,244 29,377 29,570 29,775 21,833 29,832 Average tangible common shareholders’ equity(1) $ 34,457 $ 28,923 $ 26,684 $ 26,902 $ 27,527 $ 31,682 $ 26,514 Return on average common shareholders’ equity 6.1 % 8.4 % (36.6) % 7.5 % 8.6 % 7.2 % 9.5 % Return on average tangible common shareholders’ equity(1) 10.4 16.3 15.0 17.3 19.4 12.5 21.6
To inspire and build better lives and communities
v3.24.2
Cover Cover
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Jul. 22, 2024 |
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