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Truist Financial Corp. – ‘8-K’ for 1/21/21 – ‘EX-99.2’

On:  Thursday, 1/21/21, at 6:07am ET   ·   For:  1/21/21   ·   Accession #:  92230-21-3   ·   File #:  1-10853

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  As Of               Filer                 Filing    For·On·As Docs:Size

 1/21/21  Truist Financial Corp.            8-K:2,9     1/21/21   15:10M

Current Report   —   Form 8-K
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 8-K         Current Report                                      HTML     39K 
 2: EX-99.1     Miscellaneous Exhibit                               HTML    132K 
 3: EX-99.2     Miscellaneous Exhibit                               HTML    824K 
 4: EX-99.3     Miscellaneous Exhibit                               HTML     75K 
11: R1          Cover Cover                                         HTML     67K 
13: XML         IDEA XML File -- Filing Summary                      XML     13K 
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12: EXCEL       IDEA Workbook of Financial Reports                  XLSX      6K 
 6: EX-101.CAL  XBRL Calculations -- tfc-20210121_cal                XML      7K 
 7: EX-101.DEF  XBRL Definitions -- tfc-20210121_def                 XML     50K 
 8: EX-101.LAB  XBRL Labels -- tfc-20210121_lab                      XML    108K 
 9: EX-101.PRE  XBRL Presentations -- tfc-20210121_pre               XML     51K 
 5: EX-101.SCH  XBRL Schema -- tfc-20210121                          XSD     16K 
14: JSON        XBRL Instance as JSON Data -- MetaLinks               17±    24K 
15: ZIP         XBRL Zipped Folder -- 0000092230-21-000003-xbrl      Zip    135K

‘EX-99.2’   —   Miscellaneous Exhibit

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Quarterly Performance Summary
Truist Financial Corporation
Fourth Quarter 2020




Table of Contents 
Quarterly Performance Summary 
Truist Financial Corporation
   
   
   
  Page
Financial Highlights
1
Financial Highlights - Five Quarter Trend
2
Consolidated Statements of Income
3
Consolidated Statements of Income - Five Quarter Trend
4
Segment Financial Performance - Five Quarter Trend
5
Consolidated Ending Balance Sheets - Five Quarter Trend
6
Average Balance Sheets
7
Average Balance Sheets - Five Quarter Trend
8
Average Balances and Rates - Quarters
9
Average Balances and Rates - Year-To-Date
11
Credit Quality
12
Capital Information - Five Quarter Trend
16
Selected Mortgage Banking Information & Additional Information
17
Selected Items
18
Non-GAAP Reconciliations
18



Financial Highlights 
Quarter Ended Year-to-Date
 December 31%December 31%
(Dollars in millions, except per share data, shares in thousands)20202019Change20202019Change
Summary Income Statement      
Interest income - taxable equivalent (1)$3,639 $2,837 28.3 %$15,673 $9,505 64.9 %
Interest expense245 585 (58.1)1,722 2,096 (17.8)
Net interest income - taxable equivalent3,394 2,252 50.7 13,951 7,409 88.3 
Less: Taxable-equivalent adjustment28 25 12.0 125 96 30.2 
Net interest income 3,366 2,227 51.1 13,826 7,313 89.1 
Provision for credit losses177 171 3.5 2,335 615 NM
Net interest income after provision for credit losses3,189 2,056 55.1 11,491 6,698 71.6 
Noninterest income2,285 1,398 63.4 8,879 5,255 69.0 
Noninterest expense3,833 2,575 48.9 14,897 7,934 87.8 
Income before income taxes1,641 879 86.7 5,473 4,019 36.2 
Provision for income taxes311 153 103.3 981 782 25.4 
Net income1,330 726 83.2 4,492 3,237 38.8 
Noncontrolling interests1 5 (80.0)10 13 (23.1)
Net income available to the bank holding company1,329 721 84.34,482 3,224 39.0 
Preferred stock dividends101 19 NM298 196 52.0 
Net income available to common shareholders1,228 702 74.9 4,184 3,028 38.2 
Per Common Share Data
Earnings per share-basic$0.91 $0.76 19.7 %$3.11 $3.76 (17.3)%
Earnings per share-diluted0.90 0.75 20.0 3.08 3.71 (17.0)
Earnings per share-adjusted diluted (2)1.18 1.12 5.4 3.80 4.37 (13.0)
Cash dividends declared0.450 0.450 — 1.800 1.710 5.3 
Common shareholders' equity46.52 45.66 1.9 46.52 45.66 1.9 
Tangible common shareholders' equity (2)26.78 25.93 3.3 26.78 25.93 3.3 
End of period shares outstanding1,348,961 1,342,166 0.5 1,348,961 1,342,166 0.5 
Weighted average shares outstanding-basic1,348,493 922,840 46.1 1,347,080 805,104 67.3 
Weighted average shares outstanding-diluted1,361,763 934,718 45.7 1,358,289 815,204 66.6 
Performance Ratios
Return on average assets1.05 %0.95 %0.90 %1.31 %
Return on average risk-weighted assets (current period is preliminary)1.40 1.02 1.18 1.55 
Return on average common shareholders' equity7.88 7.33 6.82 9.87 
Return on average tangible common shareholders' equity (2)14.99 12.91 13.35 16.40 
Net interest margin - taxable equivalent3.08 3.41 3.22 3.42 
Fee income ratio40.4 38.6 39.1 41.8 
Efficiency ratio-GAAP67.8 71.0 65.6 63.1 
Efficiency ratio-adjusted (2)55.9 57.5 55.9 56.6 
Credit Quality
Nonperforming assets as a percentage of:
Assets0.27 %0.14 %0.27 %0.14 %
Loans and leases plus foreclosed property0.46 0.19 0.46 0.19 
Net charge-offs as a percentage of average loans and leases 0.27 0.40 0.36 0.40 
Allowance for loan and lease losses as a percentage of LHFI1.95 0.52 1.95 0.52 
Ratio of allowance for loan and lease losses to nonperforming LHFI4.39x3.41x4.39x3.41x
Average Balances
Assets$503,181 $302,059 66.6 %$499,085 $247,494 101.7 %
Securities (3)102,053 60,699 68.1 83,227 50,645 64.3 
Loans and leases 308,188 193,641 59.2 314,501 161,604 94.6 
Deposits375,266 210,716 78.1 363,293 173,269 109.7 
Common shareholders' equity61,991 38,031 63.0 61,379 30,697 100.0 
Total shareholders' equity70,145 41,740 68.1 68,024 34,108 99.4 
Period-End Balances
Assets$509,228 $473,078 7.6 %$509,228 $473,078 7.6 %
Securities (3)120,788 74,727 61.6 120,788 74,727 61.6 
Loans and leases 305,793 308,215 (0.8)305,793 308,215 (0.8)
Deposits381,077 334,727 13.8 381,077 334,727 13.8 
Common shareholders' equity62,759 61,282 2.4 62,759 61,282 2.4 
Total shareholders' equity70,912 66,558 6.5 70,912 66,558 6.5 
Capital Ratios (current quarter is preliminary)
Common equity Tier 110.0 %9.5 %10.0 %9.5 %
Tier 112.1 10.8 12.1 10.8 
Total 14.5 12.6 14.5 12.6 
Leverage (4)9.6 14.7 9.6 14.7 
Supplementary leverage (5)8.7 7.98.7 7.9
Applicable ratios are annualized.
NM - not meaningful
(1) Interest income includes certain fees, deferred costs, fair value mark accretion, and dividends.
(2) Represents a non-GAAP measure. See the calculations and management's reasons for using these measures in the Non-GAAP Reconciliations and Preliminary Capital Information - Five Quarter Trend sections of this supplement.
(3) Includes AFS and HTM securities. Average balances reflect both AFS and HTM securities at amortized cost. Period-end balances reflect AFS securities at fair value and HTM securities at amortized cost. In 4Q19, Truist transferred all HTM securities into AFS securities in response to changes in regulatory capital rules.
(4) The leverage ratio is calculated using end of period Tier 1 capital and quarterly average tangible assets. The timing of the merger impacted the 4Q19 result.
(5) Truist became subject to the supplementary leverage ratio in 2020. The 4Q19 measure was an estimate based on a full quarter of average tangible assets.
Truist Financial Corporation 1

Financial Highlights - Five Quarter Trend   
Quarter Ended
 Dec. 31Sept. 30June 30March 31Dec. 31
(Dollars in millions, except per share data, shares in thousands)20202020202020202019
Summary Income Statement
Interest income - taxable equivalent (1)$3,639 $3,652 $3,919 $4,463 $2,837 
Interest expense245 261 440 776 585 
Net interest income - taxable equivalent3,394 3,391 3,479 3,687 2,252 
Less: Taxable-equivalent adjustment28 29 31 37 25 
Net interest income 3,366 3,362 3,448 3,650 2,227 
Provision for credit losses177 421 844 893 171 
Net interest income after provision for credit losses3,189 2,941 2,604 2,757 2,056 
Noninterest income2,285 2,210 2,423 1,961 1,398 
Noninterest expense3,833 3,755 3,878 3,431 2,575 
Income before income taxes1,641 1,396 1,149 1,287 879 
Provision for income taxes311 255 191 224 153 
Net income1,330 1,141 958 1,063 726 
Noncontrolling interests1 3 3 3 5 
Net income available to the bank holding company1,329 1,138 955 1,060 721 
Preferred stock dividends101 70 53 74 19 
Net income available to common shareholders1,228 1,068 902 986 702 
Per Common Share Data
Earnings per share-basic$0.91 $0.79 $0.67 $0.73 $0.76 
Earnings per share-diluted0.90 0.79 0.67 0.73 0.75 
Earnings per share-adjusted diluted (2)1.18 0.97 0.82 0.83 1.12 
Cash dividends declared0.450 0.450 0.450 0.450 0.450 
Common shareholders' equity46.52 45.86 45.74 45.49 45.66 
Tangible common shareholders' equity (2)26.78 26.63 26.38 26.00 25.93 
End of period shares outstanding1,348,961 1,348,118 1,347,609 1,347,461 1,342,166 
Weighted average shares outstanding-basic1,348,493 1,347,916 1,347,512 1,344,372 922,840 
Weighted average shares outstanding-diluted1,361,763 1,358,122 1,355,834 1,357,545 934,718 
Performance Ratios
Return on average assets1.05 %0.91 %0.75 %0.90 %0.95 %
Return on average risk-weighted assets (current quarter is preliminary)1.40 1.19 1.00 1.12 1.02 
Return on average common shareholders' equity7.88 6.87 5.90 6.58 7.33 
Return on average tangible common shareholders' equity (2)14.99 13.31 11.83 13.23 12.91 
Net interest margin - taxable equivalent3.08 3.10 3.13 3.58 3.41 
Fee income ratio40.4 39.7 41.3 34.9 38.6 
Efficiency ratio-GAAP67.8 67.4 66.1 61.1 71.0 
Efficiency ratio-adjusted (2)55.9 57.3 55.8 54.6 57.5 
Credit Quality
Nonperforming assets as a percentage of:
Assets0.27 %0.26 %0.25 %0.23 %0.14 %
Loans and leases plus foreclosed property0.46 0.39 0.37 0.36 0.19 
Net charge-offs as a percentage of average loans and leases 0.27 0.42 0.39 0.36 0.40 
Allowance for loan and lease losses as a percentage of LHFI1.95 1.91 1.81 1.63 0.52 
Ratio of allowance for loan and lease losses to nonperforming LHFI4.39x5.22x5.24x5.04x3.41x
Average Balances
Assets$503,181 $500,826 $514,720 $477,550 $302,059 
Securities (3)102,053 79,828 75,159 75,701 60,699 
Loans and leases 308,188 315,691 326,435 307,748 193,641 
Deposits375,266 372,211 370,818 334,649 210,716 
Common shareholders' equity61,991 61,804 61,484 60,224 38,031 
Total shareholders' equity70,145 69,634 66,863 65,412 41,740 
Period-End Balances
Assets$509,228 $499,183 $504,336 $506,229 $473,078 
Securities (3)120,788 86,132 77,805 78,398 74,727 
Loans and leases 305,793 312,149 321,148 324,039 308,215 
Deposits381,077 370,747 376,235 350,179 334,727 
Common shareholders' equity62,759 61,819 61,634 61,295 61,282 
Total shareholders' equity70,912 69,973 68,883 66,061 66,558 
Capital Ratios (current quarter is preliminary)
Common equity Tier 110.0 %10.0 %9.7 %9.3 %9.5 %
Tier 112.1 12.2 11.6 10.5 10.8 
Total 14.5 14.6 14.0 12.7 12.6 
Leverage (4)9.6 9.6 9.0 9.0 14.7 
Supplementary leverage (5)8.7 8.9 8.5 7.8 7.9
Applicable ratios are annualized.
(1) Interest income includes certain fees, deferred costs, fair value mark accretion, and dividends.
(2) Represents a non-GAAP measure. See the calculations and management's reasons for using these measures in the Non-GAAP Reconciliations and Preliminary Capital Information - Five Quarter Trend sections of this supplement.
(3) Includes AFS and HTM securities. Average balances reflect both AFS and HTM securities at amortized cost. Period-end balances reflect AFS securities at fair value and HTM securities at amortized cost. In 4Q19, Truist transferred all HTM securities into AFS securities in response to changes in regulatory capital rules.
(4) The leverage ratio is calculated using end of period Tier 1 capital and quarterly average tangible assets. The timing of the merger impacted the 4Q19 result.
(5) Truist became subject to the supplementary leverage ratio in 2020. The 4Q19 measure was an estimate based on a full quarter of average tangible assets.

2 Truist Financial Corporation


Consolidated Statements of Income 
 Quarter EndedYear-to-Date
 Dec. 31ChangeDec. 31Change
(Dollars in millions, except per share data, shares in thousands)20202019$%20202019$%
Interest Income
Interest and fees on loans and leases$3,158 $2,371 $787 33.2 %$13,485 $7,982 $5,503 68.9 %
Interest on securities408 402 6 1.5 1,739 1,319 420 31.8 
Interest on other earning assets45 39 6 15.4 324 108 216 200.0 
Total interest income3,611 2,812 799 28.4 15,548 9,409 6,139 65.2 
Interest Expense
Interest on deposits67 304 (237)(78.0)785 1,101 (316)(28.7)
Interest on long-term debt165 219 (54)(24.7)800 797 3 0.4 
Interest on other borrowings13 62 (49)(79.0)137 198 (61)(30.8)
Total interest expense245 585 (340)(58.1)1,722 2,096 (374)(17.8)
Net Interest Income3,366 2,227 1,139 51.1 13,826 7,313 6,513 89.1 
Provision for credit losses177 171 6 3.5 2,335 615 1,720 NM
Net Interest Income After Provision for Credit Losses3,189 2,056 1,133 55.1 11,491 6,698 4,793 71.6 
Noninterest Income
Insurance income545 509 36 7.1 2,193 2,072 121 5.8 
Service charges on deposits266 222 44 19.8 1,020 762 258 33.9 
Wealth management income332 206 126 61.2 1,277 715 562 78.6 
Card and payment related fees203 156 47 30.1 761 555 206 37.1 
Residential mortgage income193 65 128 196.9 1,000 285 715 NM
Investment banking and trading income308 109 199 182.6 944 244 700 NM
Operating lease income77 47 30 63.8 309 153 156 102.0 
Income from bank-owned life insurance44 38 6 15.8 179 129 50 38.8 
Lending related fees105 47 58 123.4 315 124 191 154.0 
Commercial real estate related income123 48 75 156.3 271 116 155 133.6 
Securities gains (losses)— (116)116 NM402 (116)518 NM
Other income (loss)89 67 22 32.8 208 216 (8)(3.7)
Total noninterest income2,285 1,398 887 63.4 8,879 5,255 3,624 69.0 
Noninterest Expense
Personnel expense2,108 1,465 643 43.9 8,146 4,833 3,313 68.5 
Net occupancy expense207 147 60 40.8 904 507 397 78.3 
Professional fees and outside processing393 161 232 144.1 1,252 433 819 189.1 
Software expense215 118 97 82.2 862 338 524 155.0 
Equipment expense121 83 38 45.8 484 280 204 72.9 
Marketing and customer development58 45 13 28.9 273 137 136 99.3 
Operating lease depreciation54 43 11 25.6 258 136 122 89.7 
Loan-related expense65 42 23 54.8 242 123 119 96.7 
Amortization of intangibles172 71 101 142.3 685 164 521 NM
Regulatory costs32 24 8 33.3 125 81 44 54.3 
Merger-related and restructuring charges308 223 85 38.1 860 360 500 138.9 
Loss (gain) on early extinguishment of debt— — — — 235 — 235 NM
Other expense100 153 (53)(34.6)571 542 29 5.4 
Total noninterest expense3,833 2,575 1,258 48.9 14,897 7,934 6,963 87.8 
Earnings
Income before income taxes1,641 879 762 86.7 5,473 4,019 1,454 36.2 
Provision for income taxes311 153 158 103.3 981 782 199 25.4 
Net income1,330 726 604 83.2 4,492 3,237 1,255 38.8 
Noncontrolling interests1 5 (4)(80.0)10 13 (3)(23.1)
Net income available to the bank holding company1,329 721 608 84.3 4,482 3,224 1,258 39.0 
Preferred stock dividends101 19 82 NM298 196 102 52.0 
Net income available to common shareholders$1,228 $702 $526 74.9 %$4,184 $3,028 $1,156 38.2 %
Earnings Per Common Share
Basic$0.91 $0.76 $0.15 19.7 %$3.11 $3.76 $(0.65)(17.3)%
Diluted0.90 0.75 0.15 20.0 3.08 3.71 (0.63)(17.0)
Weighted Average Shares Outstanding
Basic1,348,493 922,840 425,653 46.1 1,347,080 805,104 541,97667.3 
Diluted1,361,763 934,718 427,045 45.7 1,358,289 815,204 543,08566.6 
NM - not meaningful

Truist Financial Corporation 3


Consolidated Statements of Income - Five Quarter Trend   
Quarter Ended
Dec. 31Sept. 30June 30March 31Dec. 31
(Dollars in millions, except per share data, shares in thousands)20202020202020202019
Interest Income
Interest and fees on loans and leases$3,158 $3,174 $3,377 $3,776 $2,371 
Interest on securities408 393 444 494 402 
Interest on other earning assets45 56 67 156 39 
Total interest income3,611 3,623 3,888 4,426 2,812 
Interest Expense
Interest on deposits67 96 201 421 304 
Interest on long-term debt165 152 211 272 219 
Interest on other borrowings13 13 28 83 62 
Total interest expense245 261 440 776 585 
Net Interest Income3,366 3,362 3,448 3,650 2,227 
Provision for credit losses177 421 844 893 171 
Net Interest Income After Provision for Credit Losses3,189 2,941 2,604 2,757 2,056 
Noninterest Income
Insurance income545 518 581 549 509 
Service charges on deposits266 247 202 305 222 
Wealth management income332 324 289 332 206 
Card and payment related fees203 200 171 187 156 
Residential mortgage income193 221 341 245 65 
Investment banking and trading income308 244 274 118 109 
Operating lease income77 72 83 77 47 
Income from bank-owned life insurance44 46 45 44 38 
Lending related fees105 77 66 67 47 
Commercial real estate related income123 55 49 44 48 
Securities gains (losses)— 104 300 (2)(116)
Other income (loss)89 102 22 (5)67 
Total noninterest income2,285 2,210 2,423 1,961 1,398 
Noninterest Expense
Personnel expense2,108 2,058 2,008 1,972 1,465 
Net occupancy expense207 233 243 221 147 
Professional fees and outside processing393 323 289 247 161 
Software expense215 221 216 210 118 
Equipment expense121 127 120 116 83 
Marketing and customer development58 75 56 84 45 
Operating lease depreciation54 56 77 71 43 
Loan-related expense65 59 56 62 42 
Amortization of intangibles172 170 178 165 71 
Regulatory costs32 34 30 29 24 
Merger-related and restructuring charges308 236 209 107 223 
Loss (gain) on early extinguishment of debt— — 235 — — 
Other expense100 163 161 147 153 
Total noninterest expense3,833 3,755 3,878 3,431 2,575 
Earnings
Income before income taxes1,641 1,396 1,149 1,287 879 
Provision for income taxes311 255 191 224 153 
Net income1,330 1,141 958 1,063 726 
Noncontrolling interests1 3 3 3 5 
Net income available to the bank holding company1,329 1,138 955 1,060 721 
Preferred stock dividends101 70 53 74 19 
Net income available to common shareholders$1,228 $1,068 $902 $986 $702 
Earnings Per Common Share
Basic$0.91 $0.79 $0.67 $0.73 $0.76 
Diluted0.90 0.79 0.67 0.73 0.75 
Weighted Average Shares Outstanding
Basic1,348,493 1,347,916 1,347,512 1,344,372 922,840 
Diluted1,361,763 1,358,122 1,355,834 1,357,545 934,718 

4 Truist Financial Corporation

Segment Financial Performance - Preliminary   
 Quarter Ended
Dec. 31Sept. 30June 30March 31Dec. 31
(Dollars in millions)20202020202020202019
Consumer Banking and Wealth
Net interest income (expense)$1,818 $1,856 $1,843 $1,860 $1,114 
Net intersegment interest income (expense) 377 337 316 394 282 
Segment net interest income2,195 2,193 2,159 2,254 1,396 
Allocated provision for credit losses116 181 270 437 145 
Noninterest income994 990 1,006 1,066 652 
Noninterest expense1,955 1,934 1,972 1,989 1,318 
Income (loss) before income taxes1,118 1,068 923 894 585 
Provision (benefit) for income taxes264 252 218 210 142 
Segment net income (loss)$854 $816 $705 $684 $443 
Corporate and Commercial Banking
Net interest income (expense)$1,271 $1,235 $1,351 $1,534 $934 
Net intersegment interest income (expense) 12 42 (60)(207)(99)
Segment net interest income1,283 1,277 1,291 1,327 835 
Allocated provision for credit losses60 311 534 399 17 
Noninterest income789 609 621 457 412 
Noninterest expense841 843 880 883 570 
Income (loss) before income taxes1,171 732 498 502 660 
Provision (benefit) for income taxes253 148 92 89 142 
Segment net income (loss)$918 $584 $406 $413 $518 
Insurance Holdings
Net interest income (expense)$26 $31 $33 $36 $38 
Net intersegment interest income (expense) (4)(7)(10)(11)(11)
Segment net interest income22 24 23 25 27 
Allocated provision for credit losses2 — 6 1 2 
Noninterest income562 524 598 557 536 
Noninterest expense451 446 448 440 481 
Income (loss) before income taxes131 102 167 141 80 
Provision (benefit) for income taxes32 25 41 36 21 
Segment net income (loss)$99 $77 $126 $105 $59 
Other, Treasury & Corporate (1)
Net interest income (expense)$251 $240 $221 $220 $141 
Net intersegment interest income (expense) (385)(372)(246)(176)(172)
Segment net interest income(134)(132)(25)44 (31)
Allocated provision for credit losses(1)(71)34 56 7 
Noninterest income(60)87 198 (119)(202)
Noninterest expense586 532 578 119 206 
Income (loss) before income taxes(779)(506)(439)(250)(446)
Provision (benefit) for income taxes(238)(170)(160)(111)(152)
Segment net income (loss)$(541)$(336)$(279)$(139)$(294)
Total Truist Financial Corporation
Net interest income (expense)$3,366 $3,362 $3,448 $3,650 $2,227 
Net intersegment interest income (expense) — — — — — 
Segment net interest income3,366 3,362 3,448 3,650 2,227 
Allocated provision for credit losses177 421 844 893 171 
Noninterest income2,285 2,210 2,423 1,961 1,398 
Noninterest expense3,833 3,755 3,878 3,431 2,575 
Income (loss) before income taxes1,641 1,396 1,149 1,287 879 
Provision (benefit) for income taxes311 255 191 224 153 
Net income$1,330 $1,141 $958 $1,063 $726 
(1) Includes financial data from subsidiaries below the quantitative and qualitative thresholds requiring disclosure.

Truist Financial Corporation 5

Consolidated Ending Balance Sheets - Five Quarter Trend   
Dec. 31Sept. 30June 30March 31Dec. 31
(Dollars in millions)20202020202020202019
Assets
Cash and due from banks$5,029 $4,194 $5,116 $5,312 $4,084 
Interest-bearing deposits with banks13,839 32,914 36,081 31,036 14,981 
Securities borrowed or purchased under resale agreements 1,745 1,300 1,345 1,796 1,417 
Trading assets at fair value3,872 4,670 3,824 3,863 5,733 
Securities available for sale at fair value120,788 86,132 77,805 78,398 74,727 
Loans and leases:
Commercial:
Commercial and industrial138,354 140,874 147,141 149,161 130,180 
CRE26,595 27,474 27,963 27,532 26,832 
Commercial construction6,491 6,772 6,891 6,630 6,205 
Lease financing5,240 5,493 5,783 5,984 6,122 
Consumer:
Residential mortgage47,272 50,379 51,671 53,096 52,071 
Residential home equity and direct26,064 26,558 26,935 27,629 27,044 
Indirect auto26,150 25,269 24,509 25,146 24,442 
Indirect other11,177 11,527 11,592 10,980 11,100 
Student7,552 7,480 7,484 7,771 6,743 
Credit card4,839 4,801 4,856 5,300 5,619 
PCI— — — — 3,484 
Total loans and leases held for investment299,734 306,627 314,825 319,229 299,842 
Loans held for sale6,059 5,522 6,323 4,810 8,373 
Total loans and leases305,793 312,149 321,148 324,039 308,215 
Allowance for loan and lease losses(5,835)(5,863)(5,702)(5,211)(1,549)
Premises and equipment3,870 3,968 4,002 3,999 3,712 
Goodwill24,447 23,869 23,882 23,927 24,154 
Core deposit and other intangible assets2,984 2,840 3,016 3,168 3,142 
Mortgage servicing rights2,023 1,991 2,077 2,150 2,630 
Other assets30,673 31,019 31,742 33,752 31,832 
Total assets$509,228 $499,183 $504,336 $506,229 $473,078 
Liabilities
Deposits:
Noninterest-bearing deposits$127,629 $124,297 $122,694 $97,618 $92,405 
Interest checking105,269 98,694 99,005 92,950 85,492 
Money market and savings126,238 121,856 123,974 124,072 120,934 
Time deposits21,941 25,900 30,562 35,539 35,896 
Foreign office deposits - interest-bearing— — — — — 
Total deposits381,077 370,747 376,235 350,179 334,727 
Short-term borrowings6,092 6,244 5,700 12,696 18,218 
Long-term debt39,597 41,008 42,133 65,662 41,339 
Other liabilities11,550 11,211 11,385 11,631 12,236 
Total liabilities438,316 429,210 435,453 440,168 406,520 
Shareholders' Equity:
Preferred stock8,048 8,048 7,143 4,599 5,102 
Common stock6,745 6,741 6,738 6,737 6,711 
Additional paid-in capital 35,843 35,774 35,676 35,584 35,609 
Retained earnings19,455 18,834 18,373 18,076 19,806 
Accumulated other comprehensive loss716 470 847 898 (844)
Noncontrolling interests105 106 106 167 174 
Total shareholders' equity70,912 69,973 68,883 66,061 66,558 
Total liabilities and shareholders' equity$509,228 $499,183 $504,336 $506,229 $473,078 

6 Truist Financial Corporation

Average Balance Sheets  
 Quarter EndedYear-to-Date
 December 31ChangeDecember 31Change
(Dollars in millions)20202019$%20202019$%
Assets        
Securities at amortized cost (1):
U.S. Treasury$2,049 $2,384 $(335)(14.1)%$2,194 $2,644 $(450)(17.0)%
U.S. government-sponsored entities (GSE)1,841 2,301 (460)(20.0)1,846 2,402 (556)(23.1)
Mortgage-backed securities issued by GSE97,660 55,119 42,541 77.2 78,564 44,710 33,854 75.7 
States and political subdivisions469 598 (129)(21.6)501 587 (86)(14.7)
Non-agency mortgage-backed— 263 (263)(100.0)86 269 (183)(68.0)
Other34 34 — — 36 33 3 9.1 
Total securities102,053 60,699 41,354 68.1 83,227 50,645 32,582 64.3 
Loans and leases:
Commercial:
Commercial and industrial139,223 81,853 57,370 70.1 141,850 67,435 74,415 110.4 
CRE27,030 19,896 7,134 35.9 27,410 17,651 9,759 55.3 
Commercial construction6,616 4,506 2,110 46.8 6,659 4,061 2,598 64.0 
Lease financing5,401 3,357 2,044 60.95,753 2,443 3,310 135.5 
Consumer:
Residential mortgage48,847 34,824 14,023 40.3 51,423 31,668 19,755 62.4 
Residential home equity and direct26,327 15,810 10,517 66.5 26,951 12,716 14,235 111.9 
Indirect auto25,788 15,390 10,398 67.6 25,055 12,545 12,510 99.7 
Indirect other11,291 7,772 3,519 45.3 11,264 6,654 4,610 69.3 
Student7,519 1,825 5,694 NM7,596 460 7,136 NM
Credit card4,818 3,788 1,030 27.2 5,027 3,181 1,846 58.0 
PCI— 1,220 (1,220)(100.0)— 631 (631)(100.0)
Total loans and leases held for investment302,860 190,241 112,619 59.2 308,988 159,445 149,543 93.8 
Loans held for sale5,328 3,400 1,928 56.75,513 2,159 3,354 155.3
Total loans and leases308,188 193,641 114,547 59.2 314,501 161,604 152,897 94.6 
Interest earning trading assets4,538 2,370 2,168 91.54,655 1,277 3,378 NM
Other earning assets23,887 6,405 17,482 NM31,240 2,888 28,352 NM
Total earning assets438,666 263,115 175,551 66.7 433,623 216,414 217,209 100.4 
Nonearning assets64,515 38,944 25,571 65.7 65,462 31,080 34,382 110.6 
Total assets$503,181 $302,059 $201,122 66.6 %$499,085 $247,494 $251,591 101.7 %
Liabilities and Shareholders' Equity
Deposits:
Noninterest-bearing deposits$127,103 $64,485 $62,618 97.1 %$114,580 $55,513 $59,067 106.4 %
Interest checking99,866 43,246 56,620 130.994,879 31,592 63,287 NM
Money market and savings124,692 79,903 44,789 56.1 123,826 67,922 55,904 82.3 
Time deposits23,605 23,058 547 2.4 30,008 17,970 12,038 67.0 
Foreign office deposits - interest-bearing— 24 (24)(100.0)— 272 (272)(100.0)
Total deposits375,266 210,716 164,550 78.1 363,293 173,269 190,024 109.7 
Short-term borrowings6,493 11,489 (4,996)(43.5)10,129 8,462 1,667 19.7 
Long-term debt40,284 29,888 10,396 34.8 45,793 24,756 21,037 85.0 
Other liabilities10,993 8,226 2,767 33.6 11,846 6,899 4,947 71.7 
Total liabilities433,036 260,319 172,717 66.3 431,061 213,386 217,675 102.0 
Shareholders' equity70,145 41,740 28,405 68.1 68,024 34,108 33,916 99.4 
Total liabilities and shareholders' equity$503,181 $302,059 $201,122 66.6 %$499,085 $247,494 $251,591 101.7 %
Average balances exclude basis adjustments for fair value hedges.
(1) Includes AFS and HTM securities.
NM - not meaningful

Truist Financial Corporation 7

Average Balance Sheets - Five Quarter Trend   
 Quarter Ended
 Dec. 31Sept. 30June 30March 31Dec. 31
(Dollars in millions)20202020202020202019
Assets     
Securities at amortized cost (1):     
U.S. Treasury$2,049 $2,218 $2,237 $2,274 $2,384 
U.S. government-sponsored entities (GSE)1,841 1,842 1,844 1,856 2,301 
Mortgage-backed securities issued by GSE97,660 75,232 70,374 70,816 55,119 
States and political subdivisions469 499 505 530 598 
Non-agency mortgage-backed— — 162 185 263 
Other34 37 37 40 34 
Total securities102,053 79,828 75,159 75,701 60,699 
Loans and leases:
Commercial:
Commercial and industrial139,223 143,452 152,991 131,743 81,853 
CRE27,030 27,761 27,804 27,046 19,896 
Commercial construction6,616 6,861 6,748 6,409 4,506 
Lease financing5,401 5,626 5,922 6,070 3,357 
Consumer:
Residential mortgage48,847 51,500 52,380 52,993 34,824 
Residential home equity and direct26,327 26,726 27,199 27,564 15,810 
Indirect auto25,788 24,732 24,721 24,975 15,390 
Indirect other11,291 11,530 11,282 10,950 7,772 
Student7,519 7,446 7,633 7,787 1,825 
Credit card4,818 4,810 4,949 5,534 3,788 
PCI— — — — 1,220 
Total loans and leases held for investment302,860 310,444 321,629 301,071 190,241 
Loans held for sale5,328 5,247 4,806 6,677 3,400 
Total loans and leases308,188 315,691 326,435 307,748 193,641 
Interest earning trading assets4,538 4,056 3,700 6,334 2,370 
Other earning assets23,887 35,819 41,531 23,750 6,405 
Total earning assets438,666 435,394 446,825 413,533 263,115 
Nonearning assets64,515 65,432 67,895 64,017 38,944 
Total assets$503,181 $500,826 $514,720 $477,550 $302,059 
Liabilities and Shareholders' Equity
Deposits:
Noninterest-bearing deposits$127,103 $123,966 $113,875 $93,135 $64,485 
Interest checking99,866 96,707 97,863 85,008 43,246 
Money market and savings124,692 123,598 126,071 120,936 79,903 
Time deposits23,605 27,940 33,009 35,570 23,058 
Foreign office deposits - interest-bearing— — — — 24 
Total deposits375,266 372,211 370,818 334,649 210,716 
Short-term borrowings6,493 6,209 8,998 18,900 11,489 
Long-term debt40,284 40,919 55,537 46,547 29,888 
Other liabilities10,993 11,853 12,504 12,042 8,226 
Total liabilities433,036 431,192 447,857 412,138 260,319 
Shareholders' equity70,145 69,634 66,863 65,412 41,740 
Total liabilities and shareholders' equity$503,181 $500,826 $514,720 $477,550 $302,059 
Average balances exclude basis adjustments for fair value hedges.
(1) Includes AFS and HTM securities.

8 Truist Financial Corporation

Average Balances and Rates - Quarters   
 Quarter Ended
 December 31, 2020September 30, 2020
 (1)(2) Interest(2)(1)(2) Interest(2)
 AverageIncome/Yields/AverageIncome/Yields/
(Dollars in millions)BalancesExpenseRatesBalancesExpenseRates
Assets      
Securities at amortized cost (3):
U.S. Treasury$2,049 $9 1.62 %$2,218 $10 1.78 %
U.S. government-sponsored entities (GSE)1,841 11 2.33 1,842 10 2.33 
Mortgage-backed securities issued by GSE97,660 385 1.58 75,232 366 1.95 
States and political subdivisions469 3 3.52 499 7 5.03 
Non-agency mortgage-backed— — — — — — 
Other34 — 1.98 37 1 1.99 
Total securities102,053 408 1.60 79,828 394 1.97 
Loans and leases:
Commercial:
Commercial and industrial139,223 1,091 3.12 143,452 1,087 3.02 
CRE27,030 197 2.88 27,761 203 2.88 
Commercial construction6,616 51 3.13 6,861 55 3.26 
Lease financing5,401 65 4.82 5,626 52 3.71 
Consumer:
Residential mortgage48,847 542 4.44 51,500 576 4.47 
Residential home equity and direct26,327 388 5.86 26,726 394 5.86 
Indirect auto25,788 416 6.41 24,732 405 6.51 
Indirect other11,291 195 6.87 11,530 204 7.05 
Student7,519 80 4.23 7,446 80 4.30 
Credit card4,818 114 9.35 4,810 109 9.03 
Total loans and leases held for investment302,860 3,139 4.13 310,444 3,165 4.06 
Loans held for sale5,328 47 3.54 5,247 37 2.78 
Total loans and leases308,188 3,186 4.12 315,691 3,202 4.04 
Interest earning trading assets4,538 33 2.89 4,056 32 3.23 
Other earning assets23,887 12 0.20 35,819 24 0.26 
Total earning assets438,666 3,639 3.31 435,394 3,652 3.34 
Nonearning assets64,515 65,432 
Total assets$503,181 $500,826 
Liabilities and Shareholders' Equity
Interest-bearing deposits:      
Interest checking$99,866 17 0.07 $96,707 15 0.06 
Money market and savings124,692 10 0.03 123,598 19 0.06 
Time deposits23,605 40 0.66 27,940 62 0.89 
Total interest-bearing deposits (4)248,163 67 0.11 248,245 96 0.15 
Short-term borrowings6,493 13 0.77 6,209 13 0.85 
Long-term debt40,284 165 1.64 40,919 152 1.48 
Total interest-bearing liabilities294,940 245 0.33 295,373 261 0.35 
Noninterest-bearing deposits (4)127,103 123,966 
Other liabilities10,993 11,853 
Shareholders' equity70,145 69,634 
Total liabilities and shareholders' equity$503,181 $500,826 
Average interest-rate spread2.98 2.99 
Net interest income/ net interest margin $3,394 3.08 %$3,391 3.10 %
Taxable-equivalent adjustment$28 $29 
Applicable ratios are annualized.
(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.
(3) Includes AFS and HTM securities.
(4) Total deposit costs were 0.07% and 0.10% for the three months ended December 31, 2020 and September 30, 2020, respectively.

Truist Financial Corporation 9

Average Balances and Rates - Quarters
 Quarter Ended
 June 30, 2020March 31, 2020December 31, 2019
 (1)(2) Interest(2)(1)(2) Interest(2)(1)(2) Interest(2)
 AverageIncome/Yields/AverageIncome/Yields/AverageIncome/Yields/
(Dollars in millions)BalancesExpenseRatesBalancesExpenseRatesBalancesExpenseRates
Assets         
Securities at amortized cost (3):
U.S. Treasury$2,237 $10 1.88 %$2,274 $11 1.93 %$2,384 $12 1.97 %
U.S. government-sponsored entities (GSE)1,844 12 2.33 1,856 10 2.33 2,301 12 2.28 
Mortgage-backed securities issued by GSE70,374 413 2.35 70,816 461 2.60 55,119 366 2.64 
States and political subdivisions505 4 3.57 530 5 3.56 598 4 3.38 
Non-agency mortgage-backed162 7 16.71 185 8 16.72 263 9 13.15 
Other37 — 2.27 40 — 3.01 34 — 3.53 
Total securities75,159 446 2.37 75,701 495 2.62 60,699 403 2.65 
Loans and leases:
Commercial:
Commercial and industrial152,991 1,204 3.16 131,743 1,419 4.33 81,853 862 4.18 
CRE27,804 227 3.26 27,046 287 4.25 19,896 223 4.43 
Commercial construction6,748 61 3.70 6,409 76 4.87 4,506 57 5.17 
Lease financing5,922 70 4.71 6,070 65 4.27 3,357 32 3.79 
Consumer:
Residential mortgage52,380 608 4.65 52,993 594 4.48 34,824 361 4.15 
Residential home equity and direct27,199 391 5.78 27,564 452 6.60 15,810 242 6.04 
Indirect auto24,721 407 6.63 24,975 428 6.89 15,390 312 8.04 
Indirect other11,282 201 7.18 10,950 201 7.37 7,772 133 6.77 
Student7,633 87 4.55 7,787 104 5.38 1,825 24 5.20 
Credit card4,949 114 9.27 5,534 133 9.68 3,788 85 9.06 
PCI— — — — — — 1,220 33 10.63 
Total loans and leases held for investment321,629 3,370 4.21 301,071 3,759 5.02 190,241 2,364 4.94 
Loans held for sale4,806 36 3.04 6,677 53 3.14 3,400 31 3.52 
Total loans and leases326,435 3,406 4.19 307,748 3,812 4.98 193,641 2,395 4.91 
Interest earning trading assets3,700 39 4.19 6,334 64 4.04 2,370 11 1.84 
Other earning assets41,531 28 0.28 23,750 92 1.55 6,405 28 1.78 
Total earning assets446,825 3,919 3.52 413,533 4,463 4.33 263,115 2,837 4.29 
Nonearning assets67,895 64,017 38,944 
Total assets$514,720 $477,550 $302,059 
Liabilities and Shareholders' Equity        
Interest-bearing deposits:
Interest checking$97,863 55 0.23 $85,008 129 0.61 $43,246 65 0.60 
Money market and savings126,071 57 0.18 120,936 178 0.59 79,903 152 0.76 
Time deposits33,009 89 1.09 35,570 114 1.29 23,058 87 1.48 
Foreign office deposits - interest-bearing— — — — — — 24 — 2.19 
Total interest-bearing deposits (4)256,943 201 0.32 241,514 421 0.70 146,231 304 0.82 
Short-term borrowings8,998 28 1.24 18,900 83 1.76 11,489 62 2.15 
Long-term debt55,537 211 1.52 46,547 272 2.34 29,888 219 2.92 
Total interest-bearing liabilities321,478 440 0.55 306,961 776 1.02 187,608 585 1.24 
Noninterest-bearing deposits (4)113,875 93,135 64,485 
Other liabilities12,504 12,042 8,226 
Shareholders' equity66,863 65,412 41,740 
Total liabilities and shareholders' equity$514,720 $477,550 $302,059 
Average interest-rate spread2.97 3.31 3.05 
Net interest income/ net interest margin $3,479 3.13 %$3,687 3.58 %$2,252 3.41 %
Taxable-equivalent adjustment$31 $37 $25 
Applicable ratios are annualized.
(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.
(3) Includes AFS and HTM securities.
(4) Total deposit costs were 0.22%, 0.51% and 0.57% for the three months ended June 30, 2020, March 31, 2020 and December 31, 2019, respectively.

10 Truist Financial Corporation

Average Balances and Rates - Year-To-Date   
 Year-to-Date
 December 31, 2020December 31, 2019
 (1)(2) Interest(2)(1)(2) Interest(2)
 AverageIncome/Yields/AverageIncome/Yields/
(Dollars in millions)BalancesExpenseRatesBalancesExpenseRates
Assets      
Securities at amortized cost (3):
U.S. Treasury$2,194 $40 1.81 %$2,644 $53 2.01 %
U.S. government-sponsored entities (GSE)1,846 43 2.33 2,402 53 2.26 
Mortgage-backed securities issued by GSE78,564 1,625 2.07 44,710 1,161 2.59 
States and political subdivisions501 19 3.92 587 21 3.73 
Non-agency mortgage-backed86 15 16.81 269 38 14.05 
Other36 1 2.33 33 1 3.75 
Total securities83,227 1,743 2.09 50,645 1,327 2.62 
Loans and leases:
Commercial:
Commercial and industrial141,850 4,801 3.39 67,435 2,868 4.25 
CRE27,410 914 3.32 17,651 849 4.79 
Commercial construction6,659 243 3.72 4,061 208 5.23 
Lease financing5,753 252 4.38 2,443 84 3.44 
Consumer:
Residential mortgage51,423 2,320 4.51 31,668 1,291 4.08 
Residential home equity and direct26,951 1,625 6.03 12,716 759 5.97 
Indirect auto25,055 1,656 6.61 12,545 1,068 8.51 
Indirect other11,264 801 7.11 6,654 443 6.65 
Student7,596 351 4.62 460 24 5.20 
Credit card5,027 470 9.34 3,181 288 9.05 
PCI— — — 631 102 16.05 
Total loans and leases held for investment308,988 13,433 4.35 159,445 7,984 5.01 
Loans held for sale5,513 173 3.13 2,159 85 3.91 
Total loans and leases314,501 13,606 4.33 161,604 8,069 4.99 
Interest earning trading assets4,655 168 3.62 1,277 26 2.02 
Other earning assets31,240 156 0.50 2,888 83 2.89 
Total earning assets433,623 15,673 3.61 216,414 9,505 4.39 
Nonearning assets65,462 31,080 
Total assets$499,085 $247,494 
Liabilities and Shareholders' Equity    
Interest-bearing deposits:
Interest checking$94,879 216 0.23 $31,592 197 0.62 
Money market and savings123,826 264 0.21 67,922 621 0.91 
Time deposits30,008 305 1.02 17,970 277 1.54 
Foreign office deposits - interest-bearing— — — 272 6 2.35 
Total interest-bearing deposits (4)248,713 785 0.32 117,756 1,101 0.93 
Short-term borrowings10,129 137 1.35 8,462 198 2.34 
Long-term debt45,793 800 1.75 24,756 797 3.22 
Total interest-bearing liabilities304,635 1,722 0.57 150,974 2,096 1.39 
Noninterest-bearing deposits (4)114,580 55,513 
Other liabilities11,846 6,899 
Shareholders' equity68,024 34,108 
Total liabilities and shareholders' equity$499,085 $247,494 
Average interest-rate spread3.04 3.00 
Net interest income/ net interest margin $13,951 3.22 %$7,409 3.42 %
Taxable-equivalent adjustment$125 $96 
Applicable ratios are annualized.
(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.
(3) Includes AFS and HTM securities.
(4) Total deposit costs were 0.22% and 0.64% for the year ended December 31, 2020 and 2019, respectively.

Truist Financial Corporation 11

Credit Quality   
 Dec. 31Sept. 30June 30March 31Dec. 31
(Dollars in millions)20202020202020202019
Nonperforming Assets     
Nonaccrual loans and leases:     
Commercial:     
Commercial and industrial$532 $507 $428 $443 $212 
CRE75 52 42 18 10 
Commercial construction14 7 13 2 — 
Lease financing28 32 56 27 8 
Consumer:
Residential mortgage316 205 198 248 55 
Residential home equity and direct205 180 192 170 67 
Indirect auto155 137 155 125 100 
Indirect other5 4 3 1 2 
Total nonaccrual loans and leases held for investment1,330 1,124 1,087 1,034 454 
Loans held for sale5 130 102 41 107 
Total nonaccrual loans and leases1,335 1,254 1,189 1,075 561 
Foreclosed real estate20 30 43 63 82 
Other foreclosed property32 30 20 39 41 
Total nonperforming assets$1,387 $1,314 $1,252 $1,177 $684 
Troubled Debt Restructurings (TDRs)     
Performing TDRs:
Commercial:     
Commercial and industrial$78 $84 $57 $65 $47 
CRE47 36 22 7 6 
Commercial construction— 1 36 36 37 
Lease financing60 1 1 1 — 
Consumer:
Residential mortgage648 640 533 513 470 
Residential home equity and direct88 71 71 66 51 
Indirect auto392 336 342 350 333 
Indirect other6 5 4 5 5 
Student5 5 4 1 — 
Credit card37 38 37 35 31 
Total performing TDRs1,361 1,217 1,107 1,079 980 
Nonperforming TDRs164 140 111 121 82 
Total TDRs$1,525 $1,357 $1,218 $1,200 $1,062 
Loans 90 Days or More Past Due and Still Accruing
Commercial:
Commercial and industrial$13 $6 $9 $5 $1 
CRE— 8 3 1 — 
Lease financing— — 1 — — 
Consumer:
Residential mortgage841 573 521 610 543 
Residential home equity and direct10 5 9 10 9 
Indirect auto2 8 10 11 11 
Indirect other2 3 3 2 2 
Student1,111 570 478 1,068 188 
Credit card29 24 38 41 22 
PCI— — — — 1,218 
Total loans 90 days past due and still accruing$2,008 $1,197 $1,072 $1,748 $1,994 
Loans 30-89 Days Past Due
Commercial:
Commercial and industrial$83 $155 $282 $262 $94 
CRE14 7 6 8 5 
Commercial construction5 — 1 16 1 
Lease financing6 9 10 8 2 
Consumer:
Residential mortgage782 796 703 679 498 
Residential home equity and direct98 103 108 156 122 
Indirect auto495 321 265 521 560 
Indirect other68 52 50 74 85 
Student618 666 442 593 650 
Credit card51 39 34 57 56 
PCI— — — — 140 
Total loans 30-89 days past due $2,220 $2,148 $1,901 $2,374 $2,213 

12 Truist Financial Corporation

As of/For the Quarter Ended
 Dec. 31Sept. 30June 30March 31Dec. 31
(Dollars in millions)20202020202020202019
Allowance for Credit Losses     
Beginning balance$6,229 $6,133 $5,611 $1,889 $1,653 
CECL adoption - impact to retained earnings before tax— — — 2,762 — 
CECL adoption - reserves on PCD assets— — — 378 — 
Provision for credit losses177 421 844 893 171 
Charge-offs:
Commercial:
Commercial and industrial(84)(112)(123)(39)(23)
CRE(19)(44)(14)(1)(5)
Commercial construction(8)(19)— (3)— 
Lease financing(4)(44)(4)(2)(9)
Consumer:
Residential mortgage(6)(4)(35)(11)(8)
Residential home equity and direct(46)(52)(65)(68)(25)
Indirect auto(84)(72)(80)(142)(107)
Indirect other(14)(8)(20)(18)(19)
Student(3)(6)(6)(8)— 
Credit card(35)(44)(50)(53)(37)
Total charge-offs(303)(405)(397)(345)(233)
Recoveries:     
Commercial:     
Commercial and industrial34 20 21 17 6 
CRE1 — 4 — — 
Commercial construction1 2 7 1 1 
Lease financing— 4 — — — 
Consumer:
Residential mortgage3 3 2 2 1 
Residential home equity and direct20 16 15 15 10 
Indirect auto24 22 18 23 13 
Indirect other5 4 7 7 5 
Student— — 1 — — 
Credit card10 8 6 8 5 
Total recoveries98 79 81 73 41 
Net charge-offs(205)(326)(316)(272)(192)
Merger related items and other(2)1 (6)(39)257 
Ending balance$6,199 $6,229 $6,133 $5,611 $1,889 
Allowance for Credit Losses:     
Allowance for loan and lease losses (excluding PCD / PCI loans)$5,668 $5,675 $5,408 $4,880 $1,541 
Allowance for PCD / PCI loans167 188 294 331 8 
Reserve for unfunded lending commitments (RUFC)364 366 431 400 340 
Total$6,199 $6,229 $6,133 $5,611 $1,889 

Truist Financial Corporation 13


    As of/For the Year-to-Date
    Period Ended Dec. 31
(Dollars in millions)   20202019
Allowance for Credit Losses   
Beginning balance   $1,889 $1,651 
CECL adoption - impact to retained earnings before tax2,762 — 
CECL adoption - reserves on PCD assets378 — 
Provision for credit losses   2,335 615 
Charge-offs:   
Commercial:   
Commercial and industrial   (358)(90)
CRE   (78)(33)
Commercial construction(30)— 
Lease financing   (54)(11)
Consumer:
Residential mortgage   (56)(21)
Residential home equity and direct   (231)(93)
Indirect auto   (378)(370)
Indirect other(60)(62)
Student(23)— 
Credit card   (182)(109)
Total charge-offs   (1,450)(789)
Recoveries:     
Commercial:     
Commercial and industrial   92 25 
CRE   5 5 
Commercial construction11 3 
Lease financing   4 1 
Consumer:
Residential mortgage   10 2 
Residential home equity and direct   66 30 
Indirect auto   87 52 
Indirect other23 17 
Student1 — 
Credit card   32 20 
Total recoveries   331 155 
Net charge-offs   (1,119)(634)
Merger related items and other(46)257 
Ending balance   $6,199 $1,889 

As of/For the Quarter Ended
 Dec. 31Sept. 30June 30March 31Dec. 31
 20202020202020202019
Asset Quality Ratios     
Loans 30-89 days past due and still accruing as a percentage of loans and leases0.74 %0.70 %0.60 %0.74 %0.74 %
Loans 90 days or more past due and still accruing as a percentage of loans and leases0.67 0.39 0.34 0.55 0.66 
Nonperforming loans and leases as a percentage of loans and leases held for investment0.44 0.37 0.35 0.32 0.15 
Nonperforming loans and leases as a percentage of loans and leases (1)0.44 0.40 0.37 0.33 0.18 
Nonperforming assets as a percentage of:
Total assets (1)0.27 0.26 0.25 0.23 0.14 
Loans and leases plus foreclosed property0.46 0.39 0.37 0.36 0.19 
Net charge-offs as a percentage of average loans and leases (2)0.27 0.42 0.39 0.36 0.40 
Allowance for loan and lease losses as a percentage of loans and leases1.95 1.91 1.81 1.63 0.52 
Ratio of allowance for loan and lease losses to:
Net charge-offs7.15X4.52X4.49X4.76X2.03X
Nonperforming loans and leases4.39X5.22X5.24X5.04X3.41X
Asset Quality Ratios (Excluding PPP, other Government Guaranteed and PCI)
Loans 90 days or more past due and still accruing as a percentage of loans and leases0.04 %0.03 %0.04 %0.04 %0.03 %
Applicable ratios are annualized.
(1)Includes loans held for sale.
(2) The third quarter of 2020 includes $97 million of charge-offs on PCD assets directly related to the implementation of CECL.
    As of/For the Year-to-Date
    Period Ended Dec. 31
    20202019
Asset Quality Ratios     
Net charge-offs as a percentage of average loans and leases   0.36 %0.40 %
Ratio of allowance for loan and lease losses to net charge-offs   5.21X2.44X
Applicable ratios are annualized.

14 Truist Financial Corporation

 December 31, 2020
  Past Due 30-89Past Due 90+ 
(Dollars in millions)Current StatusDaysDaysTotal
Troubled Debt Restructurings
Performing TDRs: (1)      
Commercial:      
Commercial and industrial$77 98.7 %$— — %$1 1.3 %$78 
CRE47 100.0 — — — — 47 
Commercial construction— — — — — — — 
Lease financing60 100.0 — — — — 60 
Consumer:
Residential mortgage383 59.1 107 16.5 158 24.4 648 
Residential home equity and direct82 93.2 5 5.7 1 1.1 88 
Indirect auto333 84.9 59 15.1 — — 392 
Indirect other5 83.3 1 16.7 — — 6 
Student5 100.0 — — — — 5 
Credit card32 86.5 3 8.1 2 5.4 37 
Total performing TDRs (1)1,024 75.2 175 12.9 162 11.9 1,361 
Nonperforming TDRs (2)76 46.3 20 12.2 68 41.5 164 
Total TDRs (1)(2)$1,100 72.1 %$195 12.8 %$230 15.1 %$1,525 
(1)Past due performing TDRs are included in past due disclosures.
(2)Nonperforming TDRs are included in nonaccrual loan disclosures.
Quarter Ended
 Dec. 31Sept. 30June 30March 31Dec. 31
 20202020202020202019
Net Charge-offs as a Percentage of Average Loans and Leases:     
Commercial:     
Commercial and industrial0.15 %0.25 %0.27 %0.07 %0.09 %
CRE0.27 0.63 0.15 0.01 0.09 
Commercial construction0.39 1.02 (0.43)0.13 (0.09)
Lease financing0.20 2.92 0.33 0.08 1.03 
Consumer:
Residential mortgage0.03 0.01 0.25 0.07 0.09 
Residential home equity and direct0.39 0.53 0.73 0.78 0.39 
Indirect auto0.92 0.76 1.03 1.89 2.41 
Indirect other0.31 0.21 0.41 0.47 0.72 
Student0.17 0.28 0.31 0.38 (0.01)
Credit card2.11 3.00 3.50 3.30 3.32 
Total loans and leases0.27 0.42 0.39 0.36 0.40 
Applicable ratios are annualized.  
 
Credit Quality - Allowance with Fair Value Marks
As of/For the Quarter Ended
Dec. 31Sept. 30June 30March 31Dec. 31
(Dollars in millions)20202020202020202019
ALLL$5,835 $5,863 $5,702 $5,211 $1,549 
Unamortized fair value mark (1)2,395 2,676 3,077 3,539 4,564 
Allowance plus unamortized fair value mark$8,230 $8,539 $8,779 $8,750 $6,113 
Loans and leases held for investment$299,734 $306,627 $314,825 $319,229 $299,842 
Unamortized fair value mark (1)2,395 2,676 3,077 3,539 4,564 
Gross loans and leases$302,129 $309,303 $317,902 $322,768 $304,406 
Allowance for loan and lease losses as a percentage of loans and leases - GAAP1.95 %1.91 %1.81 %1.63 %0.52 %
Allowance for loan and lease losses and unamortized fair value mark as a percentage of gross loans and leases - Adjusted (1) (2)2.72 2.76 2.76 2.71 2.01 
(1)Unamortized fair value mark includes credit, interest rate and liquidity components.
(2)Allowance for loan and lease losses and unamortized fair value mark as a percentage of gross loans and leases is a non-GAAP measurement of credit reserves that is calculated by adjusting the ALLL and loans and leases held for investment by the unamortized fair value mark. Truist's management uses these measures to assess loss absorption capacity.
Truist Financial Corporation 15


Rollforward of Intangible Assets and Selected Fair Value Marks (1)
 As of/For the Quarter Ended
Dec. 31Sept. 30June 30March 31Dec. 31
(Dollars in millions)20202020202020202019
Loans and Leases (2)
Beginning balance unamortized fair value mark$(2,676)$(3,077)$(3,539)$(4,564)$(221)
Additions - merger with SunTrust— — — — (4,513)
Accretion356 367 440 454 170 
CECL adoption - reserves on PCD assets— — — 378 — 
Purchase accounting adjustments and other activity(75)34 22 193 — 
Ending balance$(2,395)$(2,676)$(3,077)$(3,539)$(4,564)
Core deposit and other intangible assets
Beginning balance$2,840 $3,016 $3,168 $3,142 $678 
Additions - merger with SunTrust— — — — 2,535 
Additions - acquisitions320 — — 31 — 
Amortization of intangibles(172)(170)(178)(165)(71)
Amortization in net occupancy expense(4)(6)(6)(5)— 
Purchase accounting adjustments and other activity— — 32 165 — 
Ending balance$2,984 $2,840 $3,016 $3,168 $3,142 
Deposits (3)
Beginning balance unamortized fair value mark$(26)$(37)$(54)$(76)$— 
Additions - Merger with SunTrust— — — — (83)
Amortization7 11 17 22 7 
Ending balance$(19)$(26)$(37)$(54)$(76)
Long-Term Debt (3)
Beginning balance unamortized fair value mark$(238)$(262)$(285)$(312)$(10)
Additions - Merger with SunTrust— — — — (309)
Amortization22 24 23 27 7 
Ending balance$(216)$(238)$(262)$(285)$(312)
(1)Includes the merger with SunTrust. This summary includes only selected information and does not represent all purchase accounting adjustments.
(2)Purchase accounting marks on loans and leases includes credit, interest and liquidity components, and are generally recognized using the level-yield or straight-line method over the remaining life of the individual loans or recognized in full in the event of prepayment.
(3)Purchase accounting marks on liabilities represents interest rate marks on time deposits and long-term debt and are recognized using the level-yield method over the term of the liability.
Capital Information - Five Quarter Trend
 As of/For the Quarter Ended
 Dec. 31Sept. 30June 30March 31Dec. 31
(Dollars in millions, except per share data, shares in thousands)20202020202020202019
Selected Capital Information(preliminary)    
Risk-based capital:     
Common equity tier 1$37,870 $37,879 $37,107 $36,396 $35,643 
Tier 145,915 45,925 44,248 40,993 40,743 
Total55,011 55,030 53,436 49,395 47,511 
Risk-weighted assets379,538 377,420 382,826 390,348 376,056 
Average quarterly tangible assets478,608 476,868 490,203 454,381 276,591 
Risk-based capital ratios:
Common equity tier 110.0 %10.0 %9.7 %9.3 %9.5 %
Tier 112.1 12.2 11.6 10.5 10.8 
Total14.5 14.6 14.0 12.7 12.6 
Leverage capital ratio (1)9.6 9.6 9.0 9.0 14.7 
Supplementary leverage (2)8.7 8.9 8.5 7.8 7.9 
Equity as a percentage of total assets13.9 14.0 13.7 13.0 14.1 
Common equity per common share$46.52 $45.86 $45.74 $45.49 $45.66 
(1)The leverage ratio is calculated using end of period Tier 1 capital and quarterly average tangible assets. The timing of the merger impacted the 4Q19 result.
(2)Truist became subject to the supplementary leverage ratio in 2020. The 4Q19 measure was an estimate based on a full quarter of average tangible assets.
Dec. 31Sept. 30June 30March 31Dec. 31
(Dollars in millions, except per share data, shares in thousands)20202020202020202019
Calculations of Tangible Common Equity and Related Measures: (1)
Total shareholders' equity$70,912 $69,973 $68,883 $66,061 $66,558 
Less:
Preferred stock8,048 8,048 7,143 4,599 5,102 
Noncontrolling interests105 106 106 167 174 
Intangible assets, net of deferred taxes26,629 25,923 26,083 26,263 26,482 
Tangible common equity$36,130 $35,896 $35,551 $35,032 $34,800 
Outstanding shares at end of period (in thousands)1,348,961 1,348,118 1,347,609 1,347,461 1,342,166 
Tangible Common Equity Per Common Share$26.78 $26.63 $26.38 $26.00 $25.93 
(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. 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 the quality of capital and returns relative to balance sheet risk. These measures are not necessarily comparable to similar measures that may be presented by other companies.
16 Truist Financial Corporation

Selected Mortgage Banking Information & Additional Information
 As of/For the Quarter Ended
Dec. 31Sept. 30June 30March 31Dec. 31
(Dollars in millions, except per share data)20202020202020202019
Residential Mortgage Income
Residential mortgage production revenue$229 $339 $344 $206 $40 
Residential mortgage servicing revenue150 152 159 169 78 
Realization of expected residential MSR cash flows(209)(212)(176)(122)(59)
Residential mortgage income before MSR valuation170 279 327 253 59 
Income statement impact of mortgage servicing rights valuation:     
MSRs fair value increase (decrease) 62 (54)(28)(503)80 
MSRs hedge gains (losses) (39)(4)42 495 (74)
Net MSRs valuation23 (58)14 (8)6 
Total residential mortgage income$193 $221 $341 $245 $65 
Commercial Real Estate Related Income
Commercial mortgage production revenue$117 $49 $42 $36 $44 
Commercial mortgage servicing revenue16 16 18 19 13 
Realization of expected commercial MSR cash flows(11)(10)(8)(11)(7)
Commercial real estate related income before MSR valuation122 55 52 44 50 
Income statement impact of mortgage servicing rights valuation:
MSRs fair value increase (decrease) 3 1 (6)(20)2 
MSRs hedge gains (losses) (2)(1)3 20 (4)
Net MSRs valuation1 — (3)— (2)
Commercial real estate related income$123 $55 $49 $44 $48 
Other Mortgage Banking Information
Residential mortgage loan originations$13,235 $15,346 $14,631 $11,708 $7,523 
Residential mortgage servicing portfolio (1):     
Loans serviced for others188,341 198,881 209,070 219,979 219,347 
Bank-owned loans serviced50,693 54,587 56,365 56,325 60,211 
Total servicing portfolio239,034 253,468 265,435 276,304 279,558 
Weighted-average coupon rate on mortgage loans serviced for others3.84 %3.92 %3.98 %4.02 %4.04 %
Weighted-average servicing fee on mortgage loans serviced for others0.317 0.317 0.315 0.313 0.310 
Additional Information
Fair value of derivatives, net3,282 3,646 3,766 3,276 1,687 
Common stock prices:
High49.72 42.04 46.53 56.68 56.92 
Low37.86 33.47 26.41 24.01 50.02 
End of period47.93 38.05 37.55 30.84 56.32 
Banking offices2,781 2,884 2,916 2,957 2,958 
ATMs4,082 4,237 4,354 4,408 4,426 
FTEs (2)53,693 55,000 55,769 56,504 40,691 
(1)Amounts reported are unpaid principal balance.
(2)FTEs represents an average for the quarter. The timing of the merger impacted the 4Q19 result.
Truist Financial Corporation 17

Selected Items (1)
 Favorable (Unfavorable)
(Dollars in millions)After-Tax at
DescriptionPre-TaxMarginal Rate
Selected Items
Fourth Quarter 2020
Incremental operating expenses related to the merger ($124 million in professional fees and outside processing, $47 million in personnel expense, and $8 million in other expense)$(179)$(138)
Third Quarter 2020
Incremental operating expenses related to the merger ($99 million in professional fees and outside processing, $48 million in personnel expense, and $5 million in other expense)$(152)$(115)
Charitable contribution(50)(38)
Second Quarter 2020
Incremental operating expenses related to the merger ($64 million in professional fees and outside processing, $49 million in personnel expense, and $16 million in other expense)$(129)$(99)
First Quarter 2020
Incremental operating expenses related to the merger ($44 million in personnel expense, $20 million in professional fees and outside processing, and $10 million in other expense)$(74)$(57)
Fourth Quarter 2019
Incremental operating expenses related to the merger ($80 million in personnel expense, $12 million in professional fees and outside processing, and $9 million in other expense)$(101)$(79)
Impact of mortgage portfolio sale ($25 million in provision for credit losses, offset by $22 in residential mortgage income, and a $2 million corporate advance write off included in loan-related expense)1 1 
Third Quarter 2019
Incremental operating expenses related to the merger ($39 million in personnel expense, $12 million in professional fees and outside processing, and $1 million in other expense)$(52)$(40)
Redemption of preferred shares(46)(46)
Impact of mortgage portfolio sale ($16 million in provision for credit losses and $4 million in residential mortgage income)20 15 
Second Quarter 2019
Incremental operating expenses related to the merger ($4 million in personnel expense, and $5 million in professional fees and outside processing)$(9)$(7)
First Quarter 2019
Incremental operating expenses related to the merger ($1 million in personnel expense, and $1 million in other expense)$(2)$(1)
(1)Includes costs not classified as merger-related and restructuring charges that are excluded from adjusted disclosures.


Non-GAAP Reconciliations   
Quarter EndedYear-to-Date
 Dec. 31Sept. 30June 30March 31Dec. 31Dec. 31Dec. 31
(Dollars in millions)2020202020202020201920202019
Efficiency Ratio (1)
Efficiency Ratio Numerator - Noninterest Expense - GAAP
$3,833 $3,755 $3,878 $3,431 $2,575 $14,897 $7,934 
Merger-related and restructuring charges, net(308)(236)(209)(107)(223)(860)(360)
Gain (loss) on early extinguishment of debt— — (235)— — (235)— 
Incremental operating expense related to the merger(179)(152)(129)(74)(101)(534)(164)
Amortization of intangibles(172)(170)(178)(165)(71)(685)(164)
Charitable contribution— (50)— — — (50)— 
Corporate advance write off— — — — (2)— (2)
Efficiency Ratio Numerator - Adjusted$3,174 $3,147 $3,127 $3,085 $2,178 $12,533 $7,244 
Efficiency Ratio Denominator - Revenue (2) - GAAP
$5,651 $5,572 $5,871 $5,611 $3,625 $22,705 $12,568 
Taxable equivalent adjustment28 29 31 37 25 125 96 
Securities (gains) losses— (104)(300)2 116 (402)116 
(Gain) loss on loan portfolio sale— — — — 22 — 18 
Efficiency Ratio Denominator - Adjusted$5,679 $5,497 $5,602 $5,650 $3,788 $22,428 $12,798 
Efficiency Ratio - GAAP67.8 %67.4 %66.1 %61.1 %71.0 %65.6 %63.1 %
Efficiency Ratio - Adjusted55.9 57.3 55.8 54.6 57.5 55.9 56.6 
(1)The adjusted efficiency ratio is non-GAAP in that it excludes securities gains (losses), amortization of intangible assets, merger-related and restructuring charges and other selected items. Truist's management uses this measure in their analysis of the Corporation's performance. Truist's management believes this measure provides a greater understanding of ongoing operations and enhances comparability of results with prior periods, as well as demonstrates the effects of significant gains and charges. These measures are not necessarily comparable to similar measures that may be presented by other companies.
(2)Revenue is defined as net interest income plus noninterest income.
18 Truist Financial Corporation


 Quarter EndedYear-to-Date
 Dec. 31Sept. 30June 30March 31Dec. 31Dec. 31Dec. 31
(Dollars in millions)2020202020202020201920202019
Return on Average Tangible Common Shareholders' Equity (1)
Net income available to common shareholders$1,228 $1,068 $902 $986 $702 $4,184 $3,028 
Plus: Amortization of intangibles, net of tax131 130 137 126 57 524 128 
Tangible net income available to common shareholders$1,359 $1,198 $1,039 $1,112 $759 $4,708 $3,156 
Average common shareholders' equity$61,991 $61,804 $61,484 $60,224 $38,031 $61,379 $30,697 
Less: Average intangible assets, net of deferred taxes25,930 25,971 26,161 26,429 14,760 26,122 11,460 
Average tangible common shareholders' equity$36,061 $35,833 $35,323 $33,795 $23,271 $35,257 $19,237 
Return on average common shareholders' equity7.88 %6.87 %5.90 %6.58 %7.33 %6.82 %9.87 %
Return on average tangible common shareholders' equity14.99 13.31 11.83 13.23 12.91 13.35 16.40 
(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. 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 the quality of capital and returns relative to balance sheet risk. These measures are not necessarily comparable to similar measures that may be presented by other companies.


 Quarter EndedYear-to-Date
 Dec. 31Sept. 30June 30March 31Dec. 31Dec. 31Dec. 31
(Dollars in millions, except per share data)2020202020202020201920202019
Diluted EPS (1)
Net income available to common shareholders - GAAP
$1,228 $1,068 $902 $986 $702 $4,184 $3,028 
Merger-related and restructuring charges237 181 160 82 176 660 285 
Securities (gains) losses— (80)(230)2 90 (308)90 
Loss on extinguishment of debt— — 180 — — 180 — 
Incremental operating expenses related to the merger138 115 99 57 79 409 127 
Charitable contribution— 38 — — — 38 — 
Corporate advance write off— — — — 1 — 1 
(Gain) loss on loan portfolio sale— — — — 17 — 14 
Redemption of preferred shares— — — — — — 46 
Allowance release related to loan portfolio sale— — — — (19)— (31)
Net income available to common shareholders - adjusted$1,603 $1,322 $1,111 $1,127 $1,046 $5,163 $3,560 
Weighted average shares outstanding - diluted
1,361,763 1,358,122 1,355,834 1,357,545 934,718 1,358,289 815,204 
Diluted EPS - GAAP$0.90 $0.79 $0.67 $0.73 $0.75 $3.08 $3.71 
Diluted EPS - adjusted1.18 0.97 0.82 0.83 1.12 3.80 4.37 
(1)The adjusted diluted earnings per share is non-GAAP in that it excludes merger-related and restructuring charges and other selected items, net of tax. Truist's management uses this measure in their analysis of the Corporation's performance. Truist's management believes this measure provides a greater understanding of ongoing operations and enhances comparability of results with prior periods, as well as demonstrates the effects of significant gains and charges.
Truist Financial Corporation 19

Dates Referenced Herein   and   Documents Incorporated by Reference

This ‘8-K’ Filing    Date    Other Filings
Filed on / For Period end:1/21/21
12/31/2010-K,  11-K,  13F-HR,  13F-HR/A
9/30/2010-Q,  13F-HR,  13F-HR/A
6/30/2010-Q,  13F-HR,  13F-HR/A,  8-K
3/31/2010-Q,  13F-HR,  13F-HR/A
12/31/1910-K,  11-K,  13F-HR,  13F-HR/A,  NT 10-K
 List all Filings 
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