Truist Financial (TFC) 8-K Truist Reports Fourth Quarter 2019 Results

Quarterly Performance Summary

Truist Financial Corporation

Fourth Quarter 2019

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
Selected Purchase Accounting Information	16
Capital Information - Five Quarter Trend		18
Selected Items		19
Selected Mortgage Banking Information & Additional Information		20
Non-GAAP Reconciliations		20

Financial Highlights
	Quarter Ended											Year-to-Date
	December 31								%			December 31					%
(Dollars in millions, except per share data, shares in thousands)	2019			2018			Change		2019			2018			Change
Summary Income Statement
Interest income - taxable equivalent	$	2,837		$	2,160		31.3	%	$	9,505		$	8,216		15.7	%
Interest expense	585			431			35.7		2,096			1,438			45.8
Net interest income - taxable equivalent	2,252			1,729			30.2		7,409			6,778			9.3
Less: Taxable-equivalent adjustment	25			24			4.2		96			96			—
Net interest income	2,227			1,705			30.6		7,313			6,682			9.4
Provision for credit losses	171			146			17.1		615			566			8.7
Net interest income after provision for credit losses	2,056			1,559			31.9		6,698			6,116			9.5
Noninterest income	1,398			1,235			13.2		5,255			4,876			7.8
Noninterest expense	2,575			1,784			44.3		7,934			6,932			14.5
Income before income taxes	879			1,010			(13.0)		4,019			4,060			(1.0)
Provision for income taxes	153			205			(25.4)		782			803			(2.6)
Net income	726			805			(9.8)		3,237			3,257			(0.6)
Noncontrolling interests	5			7			(28.6)		13			20			(35.0)
Preferred stock dividends	19			44			(56.8)		196			174			12.6
Net income available to common shareholders	702			754			(6.9)		3,028			3,063			(1.1)
Per Common Share Data
Earnings per share-basic	$	0.76		$	0.99		(23.2)	%	$	3.76		$	3.96		(5.1)	%
Earnings per share-diluted	0.75			0.97			(22.7)		3.71			3.91			(5.1)
Earnings per share-adjusted diluted (1)	1.12			1.07			4.2		4.37			4.05			7.9
Cash dividends declared	0.450			0.405			11.1		1.710			1.560			9.6
Common shareholders' equity	45.66			35.46			28.8		45.66			35.46			28.8
Tangible common shareholders' equity (1)	25.93			21.89			18.5		25.93			21.89			18.5
End of period shares outstanding	1,342,166			763,326			75.8		1,342,166			763,326			75.8
Weighted average shares outstanding-basic	922,840			765,013			20.6		805,104			772,963			4.2
Weighted average shares outstanding-diluted	934,718			775,402			20.5		815,204			783,484			4.0
Performance Ratios
Return on average assets	0.95		%	1.43		%			1.31		%	1.47		%
Return on average risk-weighted assets (current period is preliminary)	1.02			1.77					1.54			1.82
Return on average common shareholders' equity	7.33			11.14					9.87			11.50
Return on average tangible common shareholders' equity (1)	12.91			18.77					16.40			19.48
Net interest margin - taxable equivalent	3.41			3.49					3.42			3.46
Fee income ratio	38.6			42.0					41.8			42.2
Efficiency ratio-GAAP	71.0			60.7					63.1			60.0
Efficiency ratio-adjusted (1)	57.5			56.5					56.6			57.1
Credit Quality
Nonperforming assets as a percentage of:
Assets	0.14		%	0.26		%			0.14		%	0.26		%
Loans and leases plus foreclosed property	0.19			0.39					0.19			0.39
Net charge-offs as a percentage of average loans and leases	0.40			0.38					0.40			0.36
Allowance for loan and lease losses as a percentage of loans and leases held for investment	0.52			1.05					0.52			1.05
Ratio of allowance for loan and lease losses to nonperforming loans and leases held for investment	3.41x			2.99x					3.41x			2.99x
Average Balances
Assets	$	302,059		$	223,625		35.1	%	$	247,494		$	222,273		11.3	%
Securities (2)	60,699			46,610			30.2		50,645			47,100			7.5
Loans and leases	193,641			148,457			30.4		161,604			146,417			10.4
Deposits	210,716			157,842			33.5		173,269			157,483			10.0
Common shareholders' equity	38,031			26,860			41.6		30,697			26,640			15.2
Total shareholders' equity	41,740			29,965			39.3		34,108			29,743			14.7
Period-End Balances
Assets	$	473,078		$	225,697		109.6	%	$	473,078		$	225,697		109.6	%
Securities (2)	74,727			45,590			63.9		74,727			45,590			63.9
Loans and leases	308,215			150,001			105.5		308,215			150,001			105.5
Deposits	334,727			161,199			107.6		334,727			161,199			107.6
Common shareholders' equity	61,282			27,069			126.4		61,282			27,069			126.4
Total shareholders' equity	66,558			30,178			120.6		66,558			30,178			120.6
Capital Ratios (current quarter is preliminary)
Risk-based:
Common equity Tier 1	9.4		%	10.2		%			9.4		%	10.2		%
Tier 1	10.8			11.8					10.8			11.8
Total	12.6			13.8					12.6			13.8
Leverage (3)	14.7			9.9					14.7			9.9
Applicable ratios are annualized.
(1) 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.
(2) 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.
(3) 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.

Truist Financial Corporation 1

Financial Highlights - Five Quarter Trend
	Quarter Ended
	Dec. 31			Sept. 30			June 30			March 31			Dec. 31
(Dollars in millions, except per share data, shares in thousands)	2019			2019			2019			2019			2018
Summary Income Statement
Interest income - taxable equivalent	$	2,837		$	2,241		$	2,230		$	2,197		$	2,160
Interest expense	585			518			516			477			431
Net interest income - taxable equivalent	2,252			1,723			1,714			1,720			1,729
Less: Taxable-equivalent adjustment	25			23			24			24			24
Net interest income	2,227			1,700			1,690			1,696			1,705
Provision for credit losses	171			117			172			155			146
Net interest income after provision for credit losses	2,056			1,583			1,518			1,541			1,559
Noninterest income	1,398			1,303			1,352			1,202			1,235
Noninterest expense	2,575			1,840			1,751			1,768			1,784
Income before income taxes	879			1,046			1,119			975			1,010
Provision for income taxes	153			218			234			177			205
Net income	726			828			885			798			805
Noncontrolling interests	5			3			(1)			6			7
Preferred stock dividends	19			90			44			43			44
Net income available to common shareholders	702			735			842			749			754
Per Common Share Data
Earnings per share-basic	$	0.76		$	0.96		$	1.10		$	0.98		$	0.99
Earnings per share-diluted	0.75			0.95			1.09			0.97			0.97
Earnings per share-adjusted diluted (1)	1.12			1.07			1.12			1.05			1.05
Cash dividends declared	0.450			0.450			0.405			0.405			0.405
Common shareholders' equity	45.66			38.07			37.40			36.26			35.46
Tangible common shareholders' equity (1)	25.93			24.66			23.93			22.78			21.89
End of period shares outstanding	1,342,166			766,303			766,010			765,920			763,326
Weighted average shares outstanding-basic	922,840			766,167			765,958			764,135			765,013
Weighted average shares outstanding-diluted	934,718			775,791			774,603			774,071			775,402
Performance Ratios
Return on average assets	0.95		%	1.41		%	1.55		%	1.43		%	1.43		%
Return on average risk-weighted assets (current quarter is preliminary)	1.02			1.75			1.92			1.78			1.77
Return on average common shareholders' equity	7.33			10.04			11.98			11.08			11.14
Return on average tangible common shareholders' equity (1)	12.91			16.03			19.45			18.36			18.77
Net interest margin - taxable equivalent	3.41			3.37			3.42			3.51			3.49
Fee income ratio	38.6			43.4			44.4			41.5			42.0
Efficiency ratio-GAAP	71.0			61.3			57.6			61.0			60.7
Efficiency ratio-adjusted (1)	57.5			57.1			55.1			56.6			56.5
Credit Quality
Nonperforming assets as a percentage of:
Assets	0.14		%	0.22		%	0.23		%	0.26		%	0.26		%
Loans and leases plus foreclosed property	0.19			0.34			0.34			0.39			0.39
Net charge-offs as a percentage of average loans and leases	0.40			0.41			0.38			0.40			0.38
Allowance for loan and lease losses as a percentage of loans and leases held for investment	0.52			1.05			1.05			1.05			1.05
Ratio of allowance for loan and lease losses to nonperforming loans and leases held for investment	3.41x			3.52x			3.46x			2.97x			2.99x
Average Balances
Assets	$	302,059		$	232,420		$	229,249		$	225,573		$	223,625
Securities (2)	60,699			48,900			46,115			46,734			46,610
Loans and leases	193,641			152,042			151,557			148,790			148,457
Deposits	210,716			161,992			159,891			160,045			157,842
Common shareholders' equity	38,031			29,040			28,188			27,432			26,860
Total shareholders' equity	41,740			32,744			31,301			30,541			29,965
Period-End Balances
Assets	$	473,078		$	236,750		$	230,872		$	227,683		$	225,697
Securities (2)	74,727			54,765			45,289			46,410			45,590
Loans and leases	308,215			150,855			153,823			149,891			150,001
Deposits	334,727			162,280			159,521			159,766			161,199
Common shareholders' equity	61,282			29,177			28,650			27,770			27,069
Total shareholders' equity	66,558			32,303			31,764			30,883			30,178
Capital Ratios (current quarter is preliminary)
Risk-based:
Common equity Tier 1	9.4		%	10.6		%	10.4		%	10.3		%	10.2		%
Tier 1	10.8			12.2			12.0			12.0			11.8
Total	12.6			14.8			14.2			14.2			13.8
Leverage (3)	14.7			10.3			10.2			10.1			9.9
Applicable ratios are annualized.
(1) 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.
(2) 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.
(3) 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 Financial Corporation

Consolidated Statements of Income
	Quarter Ended										Year-to-Date
	Dec. 31						Change						Dec. 31				Change
(Dollars in millions, except per share data, shares in thousands)	2019		2018		$		%		2019		2018		$		%
Interest Income
Interest and fees on loans and leases	$	2,371	$	1,830	$	541	29.6	%	$	7,982	$	6,894	$	1,088	15.8	%
Interest and dividends on securities	402		292		110		37.7		1,319		1,160		159		13.7
Interest on other earning assets	39		14		25		178.6		108		66		42		63.6
Total interest income	2,812		2,136		676		31.6		9,409		8,120		1,289		15.9
Interest Expense
Interest on deposits	304		206		98		47.6		1,101		644		457		71.0
Interest on long-term debt	219		186		33		17.7		797		683		114		16.7
Interest on other borrowings	62		39		23		59.0		198		111		87		78.4
Total interest expense	585		431		154		35.7		2,096		1,438		658		45.8
Net Interest Income	2,227		1,705		522		30.6		7,313		6,682		631		9.4
Provision for credit losses	171		146		25		17.1		615		566		49		8.7
Net Interest Income After Provision for Credit Losses	2,056		1,559		497		31.9		6,698		6,116		582		9.5
Noninterest Income
Insurance income	509		487		22		4.5		2,072		1,852		220		11.9
Service charges on deposits	222		185		37		20.0		762		712		50		7.0
Wealth management income	206		169		37		21.9		715		660		55		8.3
Card and payment related fees	156		135		21		15.6		555		522		33		6.3
Residential mortgage income	65		58		7		12.1		285		258		27		10.5
Investment banking and trading income	109		53		56		105.7		244		154		90		58.4
Operating lease income	47		35		12		34.3		153		145		8		5.5
Income from bank-owned life insurance	38		28		10		35.7		129		116		13		11.2
Lending related fees	47		19		28		147.4		124		99		25		25.3
Commercial real estate related income	48		28		20		71.4		116		100		16		16.0
Securities gains (losses), net	(116)		2		(118)		NM		(116)		3		(119)		NM
Other income	67		36		31		86.1		216		255		(39)		(15.3)
Total noninterest income	1,398		1,235		163		13.2		5,255		4,876		379		7.8
Noninterest Expense
Personnel expense	1,465		1,096		369		33.7		4,833		4,313		520		12.1
Net occupancy expense	147		120		27		22.5		507		491		16		3.3
Professional fees and outside processing	161		103		58		56.3		433		365		68		18.6
Software expense	118		70		48		68.6		338		272		66		24.3
Equipment expense	83		68		15		22.1		280		267		13		4.9
Marketing and customer development	45		22		23		104.5		137		102		35		34.3
Depreciation - property under operating leases	43		30		13		43.3		136		120		16		13.3
Loan-related expense	42		25		17		68.0		123		108		15		13.9
Amortization	71		34		37		108.8		164		131		33		25.2
Regulatory costs	24		18		6		33.3		81		134		(53)		(39.6)
Merger-related and restructuring charges, net	223		76		147		193.4		360		146		214		146.6
Other expense	153		122		31		25.4		542		483		59		12.2
Total noninterest expense	2,575		1,784		791		44.3		7,934		6,932		1,002		14.5
Earnings
Income before income taxes	879		1,010		(131)		(13.0)		4,019		4,060		(41)		(1.0)
Provision for income taxes	153		205		(52)		(25.4)		782		803		(21)		(2.6)
Net income	726		805		(79)		(9.8)		3,237		3,257		(20)		(0.6)
Noncontrolling interests	5		7		(2)		(28.6)		13		20		(7)		(35.0)
Preferred stock dividends	19		44		(25)		(56.8)		196		174		22		12.6
Net income available to common shareholders	$	702	$	754	$	(52)	(6.9)	%	$	3,028	$	3,063	$	(35)	(1.1)	%
Earnings Per Common Share
Basic	$	0.76	$	0.99	$	(0.23)	(23.2)	%	$	3.76	$	3.96	$	(0.20)	(5.1)	%
Diluted	0.75		0.97		(0.22)		(22.7)		3.71		3.91		(0.20)		(5.1)
Weighted Average Shares Outstanding
Basic	922,840		765,013		157,827		20.6		805,104		772,963		32,141		4.2
Diluted	934,718		775,402		159,316		20.5		815,204		783,484		31,720		4.0
NM - not meaningful

Truist Financial Corporation 3

Consolidated Statements of Income - Five Quarter Trend
	Quarter Ended
	Dec. 31		Sept. 30		June 30		March 31		Dec. 31
(Dollars in millions, except per share data, shares in thousands)	2019		2019		2019		2019		2018
Interest Income
Interest and fees on loans and leases	$	2,371	$	1,886	$	1,886	$	1,839	$	1,830
Interest and dividends on securities	402		315		300		302		292
Interest on other earning assets	39		17		20		32		14
Total interest income	2,812		2,218		2,206		2,173		2,136
Interest Expense
Interest on deposits	304		271		273		253		206
Interest on long-term debt	219		193		193		192		186
Interest on other borrowings	62		54		50		32		39
Total interest expense	585		518		516		477		431
Net Interest Income	2,227		1,700		1,690		1,696		1,705
Provision for credit losses	171		117		172		155		146
Net Interest Income After Provision for Credit Losses	2,056		1,583		1,518		1,541		1,559
Noninterest Income
Insurance income	509		487		566		510		487
Service charges on deposits	222		188		181		171		185
Wealth management income	206		175		172		162		169
Card and payment related fees	156		132		139		128		135
Residential mortgage income	65		80		91		49		58
Investment banking and trading income	109		60		48		27		53
Operating lease income	47		36		35		35		35
Income from bank-owned life insurance	38		29		34		28		28
Lending related fees	47		24		28		25		19
Commercial real estate related income	48		32		22		14		28
Securities gains (losses), net	(116)		—		—		—		2
Other income	67		60		36		53		36
Total noninterest income	1,398		1,303		1,352		1,202		1,235
Noninterest Expense
Personnel expense	1,465		1,161		1,120		1,087		1,096
Net occupancy expense	147		122		116		122		120
Professional fees and outside processing	161		102		84		86		103
Software expense	118		77		71		72		70
Equipment expense	83		64		68		65		68
Marketing and customer development	45		36		29		27		22
Depreciation - property under operating leases	43		35		29		29		30
Loan-related expense	42		26		30		25		25
Amortization	71		29		32		32		34
Regulatory costs	24		20		19		18		18
Merger-related and restructuring charges, net	223		34		23		80		76
Other expense	153		134		130		125		122
Total noninterest expense	2,575		1,840		1,751		1,768		1,784
Earnings
Income before income taxes	879		1,046		1,119		975		1,010
Provision for income taxes	153		218		234		177		205
Net income	726		828		885		798		805
Noncontrolling interests	5		3		(1)		6		7
Preferred stock dividends	19		90		44		43		44
Net income available to common shareholders	$	702	$	735	$	842	$	749	$	754
Earnings Per Common Share
Basic	$	0.76	$	0.96	$	1.10	$	0.98	$	0.99
Diluted	0.75		0.95		1.09		0.97		0.97
Weighted Average Shares Outstanding
Basic	922,840		766,167		765,958		764,135		765,013
Diluted	934,718		775,791		774,603		774,071		775,402

4 Truist Financial Corporation

Segment Financial Performance - Preliminary
	Quarter Ended
	Dec. 31		Sept. 30		June 30		March 31		Dec. 31
(Dollars in millions)	2019		2019		2019		2019		2018
Consumer Banking and Wealth
Net interest income (expense)	$	1,114	$	855	$	836	$	828	$	866
Net intersegment interest income (expense)	285		225		210		193		164
Segment net interest income	1,399		1,080		1,046		1,021		1,030
Allocated provision for credit losses	145		115		123		130		152
Noninterest income	648		576		581		508		546
Noninterest expense	1,341		942		910		893		914
Income (loss) before income taxes	561		599		594		506		510
Provision (benefit) for income taxes	136		145		144		123		126
Segment net income (loss)	$	425	$	454	$	450	$	383	$	384
Corporate and Commercial Banking
Net interest income (expense)	$	934	$	729	$	751	$	739	$	735
Net intersegment interest income (expense)	(94)		(85)		(109)		(105)		(81)
Segment net interest income	840		644		642		634		654
Allocated provision for credit losses	17		14		51		20		18
Noninterest income	390		250		232		214		245
Noninterest expense	553		331		312		303		349
Income (loss) before income taxes	660		549		511		525		532
Provision (benefit) for income taxes	103		99		94		89		111
Segment net income (loss)	$	557	$	450	$	417	$	436	$	421
Insurance Holdings
Net interest income (expense)	$	38	$	39	$	35	$	34	$	32
Net intersegment interest income (expense)	(11)		(11)		(10)		(11)		(10)
Segment net interest income	27		28		25		23		22
Allocated provision for credit losses	2		2		2		3		—
Noninterest income	536		491		570		515		496
Noninterest expense	481		435		444		417		415
Income (loss) before income taxes	80		82		149		118		103
Provision (benefit) for income taxes	21		21		38		30		26
Segment net income (loss)	$	59	$	61	$	111	$	88	$	77
Other, Treasury & Corporate (1)
Net interest income (expense)	$	141	$	77	$	68	$	95	$	72
Net intersegment interest income (expense)	(180)		(129)		(91)		(77)		(73)
Segment net interest income	(39)		(52)		(23)		18		(1)
Allocated provision for credit losses	7		(14)		(4)		2		(24)
Noninterest income	(176)		(14)		(31)		(35)		(52)
Noninterest expense	200		132		85		155		106
Income (loss) before income taxes	(422)		(184)		(135)		(174)		(135)
Provision (benefit) for income taxes	(107)		(47)		(42)		(65)		(58)
Segment net income (loss)	$	(315)	$	(137)	$	(93)	$	(109)	$	(77)
Total Truist Financial Corporation
Net interest income (expense)	$	2,227	$	1,700	$	1,690	$	1,696	$	1,705
Net intersegment interest income (expense)	—		—		—		—		—
Segment net interest income	2,227		1,700		1,690		1,696		1,705
Allocated provision for credit losses	171		117		172		155		146
Noninterest income	1,398		1,303		1,352		1,202		1,235
Noninterest expense	2,575		1,840		1,751		1,768		1,784
Income (loss) before income taxes	879		1,046		1,119		975		1,010
Provision (benefit) for income taxes	153		218		234		177		205
Net income	$	726	$	828	$	885	$	798	$	805
Effective December 2019, segments were realigned in connection with the SunTrust merger. Results for prior periods have been revised to reflect the new structure.
(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. 31		Sept. 30		June 30		March 31		Dec. 31
(Dollars in millions)	2019		2019		2019		2019		2018
Assets
Cash and due from banks	$	4,084	$	2,027	$	1,831	$	1,873	$	2,753
Interest-bearing deposits with banks	14,981		877		722		847		1,091
Federal funds sold and securities purchased under resale agreements or similar arrangements	1,417		114		148		252		143
Trading assets	5,733		400		1,429		1,524		391
Securities available for sale at fair value	74,727		35,997		25,802		26,315		25,038
Securities held to maturity at amortized cost	—		18,768		19,487		20,095		20,552
Loans and leases:
Commercial:
Commercial and industrial	130,180		64,324		63,693		61,978		61,935
CRE	26,832		17,080		16,976		16,718		16,808
Commercial construction	6,205		3,804		3,746		4,111		4,252
Lease financing	6,122		2,356		2,203		2,098		2,018
Consumer:
Residential mortgage	52,071		28,297		32,607		31,572		31,393
Residential home equity and direct	27,044		11,646		11,675		11,646		11,775
Indirect auto	24,442		11,871		11,756		11,506		11,282
Indirect other	11,100		6,590		6,453		6,017		6,143
Student	6,743		—		—		—		—
Credit card	5,619		3,058		3,056		2,970		2,941
PCI	3,484		387		421		441		466
Total loans and leases held for investment	299,842		149,413		152,586		149,057		149,013
Loans held for sale	8,373		1,442		1,237		834		988
Total loans and leases	308,215		150,855		153,823		149,891		150,001
Allowance for loan and lease losses	(1,549)		(1,573)		(1,595)		(1,561)		(1,558)
Premises and equipment	3,712		2,022		2,029		2,078		2,118
Goodwill	24,154		9,832		9,830		9,818		9,818
Core deposit and other intangible assets	3,142		678		712		726		758
Mortgage servicing rights	2,630		929		982		1,049		1,122
Other assets	31,832		15,824		15,672		14,776		13,470
Total assets	$	473,078	$	236,750	$	230,872	$	227,683	$	225,697
Liabilities
Deposits:
Noninterest-bearing deposits	$	92,405	$	52,667	$	52,458	$	53,021	$	53,025
Interest checking	85,492		27,723		28,021		28,028		28,130
Money market and savings	120,934		64,454		63,972		63,739		63,467
Time deposits	35,896		16,526		15,070		14,978		16,577
Foreign office deposits - interest-bearing	—		910		—		—		—
Total deposits	334,727		162,280		159,521		159,766		161,199
Short-term borrowings	18,218		10,405		10,344		6,305		5,178
Long-term debt	41,339		25,520		22,640		24,729		23,709
Other liabilities	12,236		6,242		6,603		6,000		5,433
Total liabilities	406,520		204,447		199,108		196,800		195,519
Shareholders' Equity:
Preferred stock	5,102		3,057		3,053		3,053		3,053
Common stock	6,711		3,832		3,830		3,830		3,817
Additional paid-in capital	35,609		6,931		6,889		6,843		6,849
Retained earnings	19,806		19,440		19,050		18,518		18,118
Accumulated other comprehensive loss	(844)		(1,026)		(1,119)		(1,421)		(1,715)
Noncontrolling interests	174		69		61		60		56
Total shareholders' equity	66,558		32,303		31,764		30,883		30,178
Total liabilities and shareholders' equity	$	473,078	$	236,750	$	230,872	$	227,683	$	225,697
New lease accounting guidance was adopted prospectively in 1Q19 that requires lessees to recognize assets and liabilities related to certain operating leases on the balance sheet.
In 4Q19, Truist transferred all HTM securities into AFS securities in response to changes in regulatory capital rules.

6 Truist Financial Corporation

Average Balance Sheets
	Quarter Ended										Year-to-Date
	December 31						Change						December 31				Change
(Dollars in millions)	2019		2018		$		%		2019		2018		$		%
Assets
Securities at amortized cost (1):
U.S. Treasury	$	2,384	$	4,555	$	(2,171)	(47.7)	%	$	2,644	$	3,800	$	(1,156)	(30.4)	%
U.S. government-sponsored entities (GSE)	2,301		2,408		(107)		(4.4)		2,402		2,394		8		0.3
Mortgage-backed securities issued by GSE	55,119		38,566		16,553		42.9		44,710		39,559		5,151		13.0
States and political subdivisions	598		725		(127)		(17.5)		587		958		(371)		(38.7)
Non-agency mortgage-backed	263		326		(63)		(19.3)		269		349		(80)		(22.9)
Other	34		30		4		13.3		33		40		(7)		(17.5)
Total securities	60,699		46,610		14,089		30.2		50,645		47,100		3,545		7.5
Loans and leases:
Commercial:
Commercial and industrial	81,853		60,553		21,300		35.2		67,435		59,663		7,772		13.0
CRE	19,896		16,914		2,982		17.6		17,651		16,994		657		3.9
Commercial construction	4,506		4,387		119		2.7		4,061		4,441		(380)		(8.6)
Lease financing	3,357		1,990		1,367		68.7		2,443		1,917		526		27.4
Consumer:
Residential mortgage	34,824		31,103		3,721		12.0		31,668		29,932		1,736		5.8
Residential home equity and direct	15,810		11,790		4,020		34.1		12,716		11,860		856		7.2
Indirect auto	15,390		11,255		4,135		36.7		12,545		11,215		1,330		11.9
Indirect other	7,772		6,181		1,591		25.7		6,654		5,896		758		12.9
Student	1,825		—		1,825		NM		460		—		460		NM
Credit card	3,788		2,880		908		31.5		3,181		2,723		458		16.8
PCI	1,220		486		734		151.0		631		548		83		15.1
Total loans and leases held for investment	190,241		147,539		42,702		28.9		159,445		145,189		14,256		9.8
Loans held for sale	3,400		918		2,482		NM		2,159		1,228		931		75.8
Total loans and leases	193,641		148,457		45,184		30.4		161,604		146,417		15,187		10.4
Interest earning trading assets	2,370		428		1,942		NM		1,277		633		644		101.7
Other earning assets	6,405		1,718		4,687		NM		2,888		1,618		1,270		78.5
Total earning assets	263,115		197,213		65,902		33.4		216,414		195,768		20,646		10.5
Nonearning assets	38,944		26,412		12,532		47.4		31,080		26,505		4,575		17.3
Total assets	$	302,059	$	223,625	$	78,434	35.1	%	$	247,494	$	222,273	$	25,221	11.3	%
Liabilities and Shareholders' Equity
Deposits:
Noninterest-bearing deposits	$	64,485	$	53,732	$	10,753	20.0	%	$	55,513	$	53,818	$	1,695	3.1	%
Interest checking	43,246		26,921		16,325		60.6		31,592		26,951		4,641		17.2
Money market and savings	79,903		62,261		17,642		28.3		67,922		62,257		5,665		9.1
Time deposits	23,058		14,682		8,376		57.0		17,970		13,963		4,007		28.7
Foreign office deposits - interest-bearing	24		246		(222)		(90.2)		272		494		(222)		(44.9)
Total deposits	210,716		157,842		52,874		33.5		173,269		157,483		15,786		10.0
Short-term borrowings	11,489		6,979		4,510		64.6		8,462		5,955		2,507		42.1
Long-term debt	29,888		23,488		6,400		27.2		24,756		23,755		1,001		4.2
Other liabilities	8,226		5,351		2,875		53.7		6,899		5,337		1,562		29.3
Total liabilities	260,319		193,660		66,659		34.4		213,386		192,530		20,856		10.8
Shareholders' equity	41,740		29,965		11,775		39.3		34,108		29,743		4,365		14.7
Total liabilities and shareholders' equity	$	302,059	$	223,625	$	78,434	35.1	%	$	247,494	$	222,273	$	25,221	11.3	%
New lease accounting guidance was adopted prospectively in 1Q19 that requires lessees to recognize assets and liabilities related to certain operating leases on the balance sheet.
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. 31		Sept. 30		June 30		March 31		Dec. 31
(Dollars in millions)	2019		2019		2019		2019		2018
Assets
Securities at amortized cost (1):
U.S. Treasury	$	2,384	$	2,240	$	2,662	$	3,302	$	4,555
U.S. government-sponsored entities (GSE)	2,301		2,449		2,440		2,418		2,408
Mortgage-backed securities issued by GSE	55,119		43,415		40,112		40,044		38,566
States and political subdivisions	598		566		566		620		725
Non-agency mortgage-backed	263		198		302		315		326
Other	34		32		33		35		30
Total securities	60,699		48,900		46,115		46,734		46,610
Loans and leases:
Commercial:
Commercial and industrial	81,853		63,768		62,563		61,370		60,553
CRE	19,896		17,042		16,854		16,786		16,914
Commercial construction	4,506		3,725		3,894		4,119		4,387
Lease financing	3,357		2,260		2,122		2,021		1,990
Consumer:
Residential mortgage	34,824		28,410		32,066		31,370		31,103
Residential home equity and direct	15,810		11,650		11,687		11,681		11,790
Indirect auto	15,390		11,810		11,633		11,308		11,255
Indirect other	7,772		6,552		6,246		6,029		6,181
Student	1,825		—		—		—		—
Credit card	3,788		3,036		2,970		2,922		2,880
PCI	1,220		411		432		455		486
Total loans and leases held for investment	190,241		148,664		150,467		148,061		147,539
Loans held for sale	3,400		3,378		1,090		729		918
Total loans and leases	193,641		152,042		151,557		148,790		148,457
Interest earning trading assets	2,370		668		1,456		602		428
Other earning assets	6,405		1,798		1,711		1,595		1,718
Total earning assets	263,115		203,408		200,839		197,721		197,213
Nonearning assets	38,944		29,012		28,410		27,852		26,412
Total assets	$	302,059	$	232,420	$	229,249	$	225,573	$	223,625
Liabilities and Shareholders' Equity
Deposits:
Noninterest-bearing deposits	$	64,485	$	52,500	$	52,680	$	52,283	$	53,732
Interest checking	43,246		27,664		27,708		27,622		26,921
Money market and savings	79,903		64,920		63,394		63,325		62,261
Time deposits	23,058		16,643		15,730		16,393		14,682
Foreign office deposits - interest-bearing	24		265		379		422		246
Total deposits	210,716		161,992		159,891		160,045		157,842
Short-term borrowings	11,489		8,307		8,367		5,624		6,979
Long-term debt	29,888		22,608		23,233		23,247		23,488
Other liabilities	8,226		6,769		6,457		6,116		5,351
Total liabilities	260,319		199,676		197,948		195,032		193,660
Shareholders' equity	41,740		32,744		31,301		30,541		29,965
Total liabilities and shareholders' equity	$	302,059	$	232,420	$	229,249	$	225,573	$	223,625
New lease accounting guidance was adopted prospectively in 1Q19 that requires lessees to recognize assets and liabilities related to certain operating leases on the balance sheet.
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, 2019										September 30, 2019
	(1)		(2) Interest		(2)		(1)		(2) Interest		(2)
	Average		Income/		Yields/		Average		Income/		Yields/
(Dollars in millions)	Balances		Expense		Rates		Balances		Expense		Rates
Assets
Securities at amortized cost (3):
U.S. Treasury	$	2,384	$	12	1.97	%	$	2,240	$	11	2.04	%
U.S. government-sponsored entities (GSE)	2,301		12		2.28		2,449		14		2.25
Mortgage-backed securities issued by GSE	55,119		366		2.64		43,415		279		2.57
States and political subdivisions	598		4		3.38		566		5		3.44
Non-agency mortgage-backed	263		9		13.15		198		9		18.77
Other	34		—		3.53		32		—		3.67
Total securities	60,699		403		2.65		48,900		318		2.60
Loans and leases:
Commercial:
Commercial and industrial	81,853		862		4.18		63,768		671		4.18
CRE	19,896		223		4.43		17,042		209		4.83
Commercial construction	4,506		57		5.17		3,725		47		5.11
Lease financing	3,357		32		3.79		2,260		18		3.17
Consumer:
Residential mortgage	34,824		361		4.15		28,410		285		4.02
Residential home equity and direct	15,810		242		6.04		11,650		173		5.92
Indirect auto	15,390		312		8.04		11,810		262		8.84
Indirect other	7,772		133		6.77		6,552		110		6.61
Student	1,825		24		5.20		—		—		—
Credit card	3,788		85		9.06		3,036		71		9.18
PCI	1,220		33		10.63		411		25		24.23
Total loans and leases held for investment	190,241		2,364		4.94		148,664		1,871		5.00
Loans held for sale	3,400		31		3.52		3,378		35		4.16
Total loans and leases	193,641		2,395		4.91		152,042		1,906		4.98
Interest earning trading assets	2,370		11		1.84		668		3		2.02
Other earning assets	6,405		28		1.78		1,798		14		2.92
Total earning assets	263,115		2,837		4.29		203,408		2,241		4.38
Nonearning assets	38,944						29,012
Total assets	$	302,059					$	232,420
Liabilities and Shareholders' Equity
Interest-bearing deposits:
Interest checking	$	43,246	65		0.60		$	27,664	47		0.67
Money market and savings	79,903		152		0.76		64,920		156		0.95
Time deposits	23,058		87		1.48		16,643		67		1.62
Foreign office deposits - interest-bearing	24		—		2.19		265		1		2.13
Total interest-bearing deposits	146,231		304		0.82		109,492		271		0.99
Short-term borrowings	11,489		62		2.15		8,307		54		2.55
Long-term debt	29,888		219		2.92		22,608		193		3.42
Total interest-bearing liabilities	187,608		585		1.24		140,407		518		1.47
Noninterest-bearing deposits (4)	64,485						52,500
Other liabilities	8,226						6,769
Shareholders' equity	41,740						32,744
Total liabilities and shareholders' equity	$	302,059					$	232,420
Average interest-rate spread					3.05						2.91
Net interest income/ net interest margin			$	2,252	3.41	%			$	1,723	3.37	%
Taxable-equivalent adjustment			$	25					$	23
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.
(3) Includes AFS and HTM securities.
(4) Total deposit costs were 0.57% and 0.67% for the three months ended December 31, 2019 and September 30, 2019, respectively.

Truist Financial Corporation 9

Average Balances and Rates - Quarters
	Quarter Ended
	June 30, 2019										March 31, 2019								December 31, 2018
	(1)		(2) Interest		(2)		(1)		(2) Interest		(2)		(1)		(2) Interest		(2)
	Average		Income/		Yields/		Average		Income/		Yields/		Average		Income/		Yields/
(Dollars in millions)	Balances		Expense		Rates		Balances		Expense		Rates		Balances		Expense		Rates
Assets
Securities at amortized cost (3):
U.S. Treasury	$	2,662	$	14	2.04	%	$	3,302	$	16	2.01	%	$	4,555	$	25	2.11	%
U.S. government-sponsored entities (GSE)	2,440		13		2.25		2,418		14		2.24		2,408		14		2.24
Mortgage-backed securities issued by GSE	40,112		258		2.57		40,044		258		2.58		38,566		241		2.50
States and political subdivisions	566		6		4.37		620		6		3.73		725		6		3.53
Non-agency mortgage-backed	302		10		13.28		315		10		12.51		326		10		11.50
Other	33		1		3.85		35		—		3.96		30		—		4.51
Total securities	46,115		302		2.62		46,734		304		2.60		46,610		296		2.53
Loans and leases:
Commercial:
Commercial and industrial	62,563		679		4.35		61,370		656		4.33		60,553		645		4.23
CRE	16,854		210		4.97		16,786		207		4.99		16,914		206		4.82
Commercial construction	3,894		50		5.32		4,119		54		5.33		4,387		55		5.08
Lease financing	2,122		17		3.29		2,021		17		3.33		1,990		18		3.64
Consumer:
Residential mortgage	32,066		321		4.00		31,370		324		4.13		31,103		319		4.10
Residential home equity and direct	11,687		173		5.97		11,681		171		5.92		11,790		172		5.73
Indirect auto	11,633		254		8.71		11,308		240		8.62		11,255		237		8.43
Indirect other	6,246		102		6.63		6,029		98		6.57		6,181		98		6.35
Student	—		—		—		—		—		—		—		—		—
Credit card	2,970		67		8.94		2,922		65		9.03		2,880		64		8.91
PCI	432		24		21.63		455		20		17.99		486		26		20.49
Total loans and leases held for investment	150,467		1,897		5.05		148,061		1,852		5.06		147,539		1,840		4.96
Loans held for sale	1,090		11		4.17		729		8		4.38		918		10		4.66
Total loans and leases	151,557		1,908		5.05		148,790		1,860		5.06		148,457		1,850		4.96
Interest earning trading assets	1,456		8		2.25		602		4		2.27		428		2		2.03
Other earning assets	1,711		12		2.88		1,595		29		7.43		1,718		12		2.67
Total earning assets	200,839		2,230		4.45		197,721		2,197		4.49		197,213		2,160		4.36
Nonearning assets	28,410						27,852						26,412
Total assets	$	229,249					$	225,573					$	223,625
Liabilities and Shareholders' Equity
Interest-bearing deposits:
Interest checking	$	27,708	45		0.65		$	27,622	40		0.59		$	26,921	34		0.49
Money market and savings	63,394		163		1.03		63,325		150		0.96		62,261		125		0.80
Time deposits	15,730		63		1.58		16,393		60		1.50		14,682		45		1.22
Foreign office deposits - interest-bearing	379		2		2.43		422		3		2.43		246		2		2.22
Total interest-bearing deposits (4)	107,211		273		1.02		107,762		253		0.95		104,110		206		0.78
Short-term borrowings	8,367		50		2.40		5,624		32		2.32		6,979		39		2.18
Long-term debt	23,233		193		3.33		23,247		192		3.30		23,488		186		3.19
Total interest-bearing liabilities	138,811		516		1.49		136,633		477		1.41		134,577		431		1.28
Noninterest-bearing deposits (4)	52,680						52,283						53,732
Other liabilities	6,457						6,116						5,351
Shareholders' equity	31,301						30,541						29,965
Total liabilities and shareholders' equity	$	229,249					$	225,573					$	223,625
Average interest-rate spread					2.96						3.08						3.08
Net interest income/ net interest margin			$	1,714	3.42	%			$	1,720	3.51	%			$	1,729	3.49	%
Taxable-equivalent adjustment			$	24					$	24					$	24
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.
(3) Includes AFS and HTM securities.
(4) Total deposit costs were 0.68%, 0.64 and 0.52% for the three months ended June 30, 2019, March 31, 2019 and December 31, 2018, respectively.

10 Truist Financial Corporation

Average Balances and Rates - Year-To-Date
	Year-to-Date
	December 31, 2019										December 31, 2018
	(1)		(2) Interest		(2)		(1)		(2) Interest		(2)
	Average		Income/		Yields/		Average		Income/		Yields/
(Dollars in millions)	Balances		Expense		Rates		Balances		Expense		Rates
Assets
Securities at amortized cost (3):
U.S. Treasury	$	2,644	$	53	2.01	%	$	3,800	$	72	1.89	%
U.S. government-sponsored entities (GSE)	2,402		53		2.26		2,394		54		2.23
Mortgage-backed securities issued by GSE	44,710		1,161		2.59		39,559		969		2.45
States and political subdivisions	587		21		3.73		958		35		3.68
Non-agency mortgage-backed	269		38		14.05		349		42		11.93
Other	33		1		3.75		40		1		3.34
Total securities	50,645		1,327		2.62		47,100		1,173		2.49
Loans and leases:
Commercial:
Commercial and industrial	67,435		2,868		4.25		59,663		2,374		3.98
CRE	17,651		849		4.79		16,994		798		4.67
Commercial construction	4,061		208		5.23		4,441		209		4.79
Lease financing	2,443		84		3.44		1,917		61		3.19
Consumer:
Residential mortgage	31,668		1,291		4.08		29,932		1,212		4.05
Residential home equity and direct	12,716		759		5.97		11,860		641		5.41
Indirect auto	12,545		1,068		8.51		11,215		917		8.18
Indirect other	6,654		443		6.65		5,896		368		6.25
Student	460		24		5.20		—		—		—
Credit card	3,181		288		9.05		2,723		238		8.73
PCI	631		102		16.05		548		108		19.64
Total loans and leases held for investment	159,445		7,984		5.01		145,189		6,926		4.77
Loans held for sale	2,159		85		3.91		1,228		50		4.13
Total loans and leases	161,604		8,069		4.99		146,417		6,976		4.77
Interest earning trading assets	1,277		26		2.02		633		24		3.82
Other earning assets	2,888		83		2.89		1,618		43		2.63
Total earning assets	216,414		9,505		4.39		195,768		8,216		4.20
Nonearning assets	31,080						26,505
Total assets	$	247,494					$	222,273
Liabilities and Shareholders' Equity
Interest-bearing deposits:
Interest checking	$	31,592	197		0.62		$	26,951	116		0.43
Money market and savings	67,922		621		0.91		62,257		387		0.62
Time deposits	17,970		277		1.54		13,963		132		0.94
Foreign office deposits - interest-bearing	272		6		2.35		494		9		1.67
Total interest-bearing deposits (4)	117,756		1,101		0.93		103,665		644		0.62
Short-term borrowings	8,462		198		2.34		5,955		111		1.86
Long-term debt	24,756		797		3.22		23,755		683		2.88
Total interest-bearing liabilities	150,974		2,096		1.39		133,375		1,438		1.08
Noninterest-bearing deposits (4)	55,513						53,818
Other liabilities	6,899						5,337
Shareholders' equity	34,108						29,743
Total liabilities and shareholders' equity	$	247,494					$	222,273
Average interest-rate spread					3.00						3.12
Net interest income/ net interest margin			$	7,409	3.42	%			$	6,778	3.46	%
Taxable-equivalent adjustment			$	96					$	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.
(3) Includes AFS and HTM securities.
(4) Total deposit costs were 0.57% and 0.41% for the year ended December 31, 2019 and 2018, respectively.

Truist Financial Corporation 11

Credit Quality
	Dec. 31		Sept. 30		June 30		March 31		Dec. 31
(Dollars in millions)	2019		2019		2019		2019		2018
Nonperforming Assets
Nonaccrual loans and leases:
Commercial:
Commercial and industrial	$	212	$	172	$	193	$	196	$	200
CRE	10		27		31		73		63
Commercial construction	—		2		2		2		2
Lease financing	8		2		2		1		3
Consumer:
Residential mortgage	55		106		104		121		119
Residential home equity and direct	67		56		54		53		53
Indirect auto	100		81		74		79		82
Indirect other	2		1		1		1		—
Total nonaccrual loans and leases held for investment	454		447		461		526		522
Loans held for sale	107		—		—		—		—
Total nonaccrual loans and leases (1)	561		447		461		526		522
Foreclosed real estate	82		33		36		33		35
Other foreclosed property	41		29		26		25		28
Total nonperforming assets(1)	$	684	$	509	$	523	$	584	$	585
Troubled Debt Restructurings (TDRs) (2)
Performing TDRs:
Commercial:
Commercial and industrial	$	47	$	69	$	84	$	63	$	65
CRE	6		6		7		8		8
Commercial construction	37		1		1		1		2
Consumer:
Residential mortgage	470		570		581		669		656
Residential home equity and direct	51		54		53		54		56
Indirect auto	333		324		311		302		299
Indirect other	5		4		4		4		6
Credit card	31		29		29		29		27
Total performing TDRs (2)	980		1,057		1,070		1,130		1,119
Nonperforming TDRs	82		115		135		178		176
Total TDRs (2)	$	1,062	$	1,172	$	1,205	$	1,308	$	1,295
Loans 90 Days or More Past Due and Still Accruing
Commercial:
Commercial and industrial	$	1	$	—	$	—	$	—	$	—
Consumer:
Residential mortgage	$	543	$	347	$	350	$	377	$	405
Residential home equity and direct	9		8		11		8		8
Indirect auto	11		9		7		5		6
Indirect other	2		—		—		—		—
Student	188		—		—		—		—
Credit card	22		15		13		13		13
PCI	1,218		24		26		28		30
Total loans 90 days past due and still accruing	$	1,994	$	403	$	407	$	431	$	462
Loans 30-89 Days Past Due
Commercial:
Commercial and industrial	$	94	$	34	$	32	$	36	$	34
CRE	5		1		3		3		4
Commercial construction	1		—		—		—		1
Lease financing	2		1		5		3		1
Consumer:
Residential mortgage	498		432		480		478		456
Residential home equity and direct	122		56		60		69		63
Indirect auto	560		380		354		281		390
Indirect other	85		43		39		35		46
Student	650		—		—		—		—
Credit card	56		29		26		25		26
PCI	140		16		17		18		23
Total loans 30-89 days past due	$	2,213	$	992	$	1,016	$	948	$	1,044
(1) Sales of nonperforming loans totaled $119 million, $42 million, $48 million, $30 million and $30 million for the quarter ended December 31, 2019, September 30, 2019, June 30, 2019, March 31, 2019 and December 31, 2018, respectively.
(2) Sales and transfers to HFS of performing TDRs, which were primarily residential mortgage loans, totaled $146 million, $39 million, $120 million, $33 million and $15 million for the quarter ended December 31, 2019, September 30, 2019, June 30, 2019, March 31, 2019 and December 31, 2018, respectively.

12 Truist Financial Corporation

	As of/For the Quarter Ended
	Dec. 31		Sept. 30		June 30		March 31		Dec. 31
(Dollars in millions)	2019		2019		2019		2019		2018
Allowance for Credit Losses
Beginning balance	$	1,653	$	1,689	$	1,659	$	1,651	$	1,648
Provision for credit losses (excluding PCI loans)	171		117		172		156		147
Provision (benefit) for PCI loans	—		—		—		(1)		(1)
Charge-offs:
Commercial:
Commercial and industrial	(23)		(28)		(22)		(17)		(18)
CRE	(5)		(2)		(18)		(8)		(3)
Commercial construction	—		—		—		—		(2)
Lease financing	(9)		(1)		—		(1)		(1)
Consumer:
Residential mortgage	(8)		(3)		(5)		(5)		(8)
Residential home equity and direct	(25)		(24)		(24)		(20)		(20)
Indirect auto	(107)		(92)		(79)		(92)		(93)
Indirect other	(19)		(14)		(12)		(17)		(15)
Student	—		—		—		—		—
Credit card	(37)		(25)		(23)		(24)		(20)
PCI	—		—		—		—		—
Total charge-offs	(233)		(189)		(183)		(184)		(180)
Recoveries:
Commercial:
Commercial and industrial	6		5		8		6		7
CRE	—		3		2		—		2
Commercial construction	1		—		1		1		2
Lease financing	—		1		—		—		—
Consumer:
Residential mortgage	1		—		—		1		1
Residential home equity and direct	10		6		8		6		6
Indirect auto	13		12		14		13		12
Indirect other	5		3		5		4		3
Student	—		—		—		—		—
Credit card	5		6		3		6		4
Total recoveries	41		36		41		37		37
Net charge-offs	(192)		(153)		(142)		(147)		(143)
RUFC assumed with SunTrust Merger	257		—		—		—		—
Ending balance	$	1,889	$	1,653	$	1,689	$	1,659	$	1,651
Allowance for Credit Losses:
Allowance for loan and lease losses (excluding PCI loans)	$	1,541	$	1,565	$	1,587	$	1,553	$	1,549
Allowance for PCI loans	8		8		8		8		9
Reserve for unfunded lending commitments (RUFC)	340		80		94		98		93
Total	$	1,889	$	1,653	$	1,689	$	1,659	$	1,651
							As of/For the Year-to-Date
							Period Ended Dec. 31
(Dollars in millions)							2019		2018
Allowance for Credit Losses
Beginning balance							$	1,651	$	1,609
Provision for credit losses (excluding PCI loans)							616		583
Provision (benefit) for PCI loans							(1)		(17)
Charge-offs:
Commercial:
Commercial and industrial							(90)		(92)
CRE							(33)		(10)
Commercial construction							—		(3)
Lease financing							(11)		(4)
Consumer:
Residential mortgage							(21)		(21)
Residential home equity and direct							(93)		(79)
Indirect auto							(370)		(342)
Indirect other							(62)		(49)
Student							—		—
Credit card							(109)		(76)
PCI							—		(2)
Total charge-offs							(789)		(678)
Recoveries:
Commercial:
Commercial and industrial							25		39
CRE							5		3
Commercial construction							3		5
Lease financing							1		1
Consumer:
Residential mortgage							2		2
Residential home equity and direct							30		25
Indirect auto							52		49
Indirect other							17		13
Student							—		—
Credit card							20		17
Total recoveries							155		154
Net charge-offs							(634)		(524)
RUFC assumed with SunTrust Merger							257		—
Ending balance							$	1,889	$	1,651

	As of/For the Quarter Ended
	Dec. 31		Sept. 30		June 30		March 31		Dec. 31
	2019		2019		2019		2019		2018
Asset Quality Ratios
Loans 30-89 days past due and still accruing as a percentage of loans and leases	0.74	%	0.66	%	0.67	%	0.64	%	0.70	%
Loans 90 days or more past due and still accruing as a percentage of loans and leases	0.66		0.27		0.27		0.29		0.31
Nonperforming loans and leases as a percentage of loans and leases held for investment	0.15		0.30		0.30		0.35		0.35
Nonperforming loans and leases as a percentage of loans and leases (1)	0.18		0.30		0.30		0.35		0.35
Nonperforming assets as a percentage of:
Total assets (1)	0.14		0.22		0.23		0.26		0.26
Loans and leases plus foreclosed property	0.19		0.34		0.34		0.39		0.39
Net charge-offs as a percentage of average loans and leases	0.40		0.41		0.38		0.40		0.38
Allowance for loan and lease losses as a percentage of loans and leases	0.52		1.05		1.05		1.05		1.05
Ratio of allowance for loan and lease losses to:
Net charge-offs	2.03X		2.59X		2.80X		2.62X		2.76X
Nonperforming loans and leases	3.41X		3.52X		3.46X		2.97X		2.99X
Asset Quality Ratios (Excluding Government Guaranteed and PCI)
Loans 90 days or more past due and still accruing as a percentage of loans and leases	0.03	%	0.04	%	0.04	%	0.04	%	0.04	%
Applicable ratios are annualized.
(1)Includes loans held for sale.
							As of/For the Year-to-Date
							Period Ended Dec. 31
							2019		2018
Asset Quality Ratios
Net charge-offs as a percentage of average loans and leases							0.40	%	0.36	%
Ratio of allowance for loan and lease losses to net charge-offs							2.44X		2.98X
Applicable ratios are annualized.

13 Truist Financial Corporation

	December 31, 2019
					Past Due 30-89								Past Due 90+
(Dollars in millions)	Current Status							Days							Days			Total
Troubled Debt Restructurings
Performing TDRs: (1)
Commercial:
Commercial and industrial	$	46	97.9	%	$	1		2.1	%	$	—		—	%	$	47
CRE	6		100.0		—			—		—			—		6
Commercial construction	37		100.0		—			—		—			—		37
Lease financing	—		—		—			—		—			—		—
Consumer:
Residential mortgage	233		49.5		83			17.7		154			32.8		470
Residential home equity and direct	49		96.1		2			3.9		—			—		51
Indirect auto	266		79.9		67			20.1		—			—		333
Indirect other	5		100.0		—			—		—			—		5
Student	—		—		—			—		—			—		—
Credit card	25		80.7		5			16.1		1			3.2		31
Total performing TDRs (1)	667		68.1		158			16.1		155			15.8		980
Nonperforming TDRs (2)	36		43.9		6			7.3		40			48.8		82
Total TDRs (1)(2)	$	703	66.2	%	$	164		15.4	%	$	195		18.4	%	$	1,062
(1)Past due performing TDRs are included in past due disclosures.
(2)Nonperforming TDRs are included in nonaccrual loan disclosures.
					Quarter Ended
					Dec. 31			Sept. 30		June 30			March 31		Dec. 31
					2019			2019		2019			2019		2018
Net Charge-offs as a Percentage of Average Loans and Leases:
Commercial:
Commercial and industrial					0.09		%	0.14	%	0.09		%	0.07	%	0.06		%
CRE					0.09			—		0.41			0.18		0.03
Commercial construction					(0.09)			(0.11)		(0.19)			(0.08)		(0.03)
Lease financing					1.03			0.11		0.03			0.10		0.17
Consumer:
Residential mortgage					0.09			0.04		0.06			0.05		0.10
Residential home equity and direct					0.39			0.60		0.57			0.47		0.48
Indirect auto					2.41			2.70		2.23			2.88		2.86
Indirect other					0.72			0.60		0.49			0.79		0.81
Student					(0.01)			—		—			—		—
Credit card					3.32			2.59		2.50			2.58		2.16
PCI					—			—		—			—		—
Total loans and leases					0.40			0.41		0.38			0.40		0.38
Applicable ratios are annualized.

Credit Quality - Allowance Rollforward with Fair Value Marks
(Dollars in millions)	As of/For the Quarter Ended December 31, 2019
	PCI			Non-PCI			Total ALLL			RUFC		Total ACL
Beginning balance	$	8		$	1,565		$	1,573		$	80	$	1,653
Provision (benefit) for credit losses	—			168			168			3		171
Net charge offs	—			(192)			(192)			—		(192)
RUFC assumed with the SunTrust merger	—			—			—			257		257
Ending balance	8			1,541			1,549			340		1,889
Unamortized fair value mark (1)	537			4,027			4,564			—		4,564
Allowance plus unamortized fair value mark	$	545		$	5,568		$	6,113		$	340	$	6,453
Allowance for loan and lease losses as a percentage of loans and leases	0.23		%	0.52		%	0.52		%
Allowance for loan and lease losses and unamortized fair value mark as a percentage of gross loans and leases (1)	13.55			1.85			2.01

(1)Unamortized fair value mark includes credit, interest rate and liquidity components.

Truist Financial Corporation 15

Selected Purchase Accounting Information - Fair Value of Assets Merged and Liabilities Assumed
	Balance At Merger (1)
(Dollars in millions)
Assets:
Cash and due from banks	$	1,621
Interest-bearing deposits with banks	4,668
Federal funds sold and securities purchased under resale agreements or similar arrangements	1,191
Trading assets	5,710
Securities available for sale	30,986
Loans and leases:
PCI gross value	3,652
PCI purchase accounting mark	(425)
Total PCI	3,227
Non-PCI gross value	154,832
Non-PCI purchase accounting mark	(4,088)
Total non-PCI	150,744
Total loans and leases	153,971
Loans held for sale	3,741
Premises and equipment	1,587
Goodwill	14,321
Core deposit and other intangible assets	2,535
Mortgage servicing rights	1,605
Other assets	14,087
Total assets	$	236,023
Liabilities:
Deposits	$	170,721
Short-term borrowings	6,837
Long-term debt	19,473
Other liabilities	5,337
Total liabilities	202,368
Net Assets	$	33,655

(1)Represents the provisional fair value of SunTrust's assets and liabilities as of the merger date, except for gross loan and leases balances.

Selected Loan and Lease Balances and Related Fair Value Marks as of Period End
	Dec. 31
(Dollars in millions)	2019
PCI Loans and Leases:
Gross value	$	4,021
Fair value mark	(537)
Carrying value of PCI loans and leases	3,484
Non-PCI Loans and Leases:
Gross value	155,423
Fair value mark	(4,027)
Carrying value of non-PCI loans and leases	151,396
Carrying value of originated loan and leases	144,962
Total Loans and Leases Held for Investment	$	299,842

16 Truist Financial Corporation

Rollforward of Intangible Assets and Selected Fair Value Marks (1)
	As of/For the Quarter Ended
	Dec. 31
(Dollars in millions)	2019
PCI Loans and Leases (2)
Beginning balance unamortized fair value mark	$	(152)
Additions - Merger with SunTrust	(425)
Accretion	33
Interest reversal	(19)
Net charge offs	26
Ending balance	$	(537)
Non-PCI Loans and Leases (2)
Beginning balance unamortized fair value mark	$	(69)
Additions - Merger with SunTrust	(4,088)
Accretion	130
Ending balance	$	(4,027)
Core deposit and other intangible assets
Beginning balance	$	678
Additions - Merger with SunTrust	2,535
Amortization	(71)
Ending balance	$	3,142
Deposits (3)
Beginning balance unamortized fair value mark	$	—
Additions - Merger with SunTrust	(83)
Amortization	7
Ending balance	$	(76)
Long-Term Debt (3)
Beginning balance unamortized fair value mark	$	(10)
Additions - Merger with SunTrust	(309)
Amortization	7
Ending balance	$	(312)

(1)Includes the merger with SunTrust, as well as other acquisitions. This summary includes only selected information and does not represent all purchase accounting adjustments.

(2)Purchase accounting loan marks on loans and leases represents the total mark, including credit, interest and liquidity, and are recognized using level-yield 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 level-yield method over the term of the liability.

Truist Financial Corporation 17

Capital Information - Five Quarter Trend
	As of/For the Quarter Ended
	Dec. 31			Sept. 30			June 30			March 31			Dec. 31
(Dollars in millions, except per share data, shares in thousands)	2019			2019			2019			2019			2018
Selected Capital Information	(preliminary)
Risk-based capital:
Common equity tier 1	$	35,643		$	19,905		$	19,435		$	18,848		$	18,405
Tier 1	40,744			22,960			22,486			21,899			21,456
Total	47,523			27,666			26,693			26,078			24,963
Risk-weighted assets	377,518			187,503			187,523			183,060			181,260
Average quarterly tangible assets	276,590			223,298			220,514			217,247			215,872
Risk-based capital ratios:
Common equity tier 1	9.4		%	10.6		%	10.4		%	10.3		%	10.2		%
Tier 1	10.8			12.2			12.0			12.0			11.8
Total	12.6			14.8			14.2			14.2			13.8
Leverage capital ratio (1)	14.7			10.3			10.2			10.1			9.9
Supplementary leverage (2)	7.9			NA			NA			NA			NA
Equity as a percentage of total assets	14.1			13.6			13.8			13.6			13.4
Common equity per common share	$	45.66		$	38.07		$	37.40		$	36.26		$	35.46
(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 as of January 1, 2020. The above measure is the current estimate based on a full quarter of average tangible assets in the denominator.
	Dec. 31			Sept. 30			June 30			March 31			Dec. 31
(Dollars in millions, except per share data, shares in thousands)	2019			2019			2019			2019			2018
Calculations of Tangible Common Equity and Related Measures: (1)
Total shareholders' equity	$	66,558		$	32,303		$	31,764		$	30,883		$	30,178
Less:
Preferred stock	5,102			3,057			3,053			3,053			3,053
Noncontrolling interests	174			69			61			60			56
Intangible assets, net of deferred taxes	26,482			10,281			10,317			10,326			10,360
Tangible common equity	$	34,800		$	18,896		$	18,333		$	17,444		$	16,709
Outstanding shares at end of period (in thousands)	1,342,166			766,303			766,010			765,920			763,326
Tangible Common Equity Per Common Share	$	25.93		$	24.66		$	23.93		$	22.78		$	21.89

(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 and believes investors may find them useful in their analysis of the Corporation. These measures are not necessarily comparable to similar measures that may be presented by other companies.

18 Truist Financial Corporation

Selected Items (1)
		Favorable (Unfavorable)
(Dollars in millions)				After-Tax at
Description	Financial Statement Caption					Pre-Tax		Marginal Rate
Selected Items
Fourth Quarter 2019
Incremental operating expenses related to the merger:
Personnel expense	Personnel expense					$	(80)
Professional fees and outside processing	Professional fees and outside processing					(12)
Other expense	Other expense					(9)
Total		$	(101)	$	(79)
Allowance release related to residential mortgage portfolio sale	Provision for credit losses					$	25	$	19
Gain (loss) on residential mortgage portfolio sale	Residential mortgage income					(22)		(17)
Corporate advance write off	Loan-related expense					(2)		(1)
Impact of mortgage portfolio sale						$	1	$	1
Third Quarter 2019
Incremental operating expenses related to the merger:
Personnel expense	Personnel expense					$	(39)
Professional fees and outside processing	Professional fees and outside processing					(12)
Other expense	Other expense					(1)
Total						$	(52)	$	(40)
Redemption of preferred shares	Preferred stock dividends					$	(46)	$	(46)
Allowance release related to residential mortgage portfolio sale	Provision for credit losses					$	16	$	12
Gain (loss) on residential mortgage portfolio sale	Residential mortgage income					4		3
Impact of mortgage portfolio sale						$	20	$	15
Second Quarter 2019
Incremental operating expenses related to the merger:
Personnel expense	Personnel expense					$	(4)
Professional fees and outside processing	Professional fees and outside processing					(5)
Total						$	(9)	$	(7)
First Quarter 2019
Incremental operating expenses related to the merger:
Professional fees and outside processing	Professional fees and outside processing					$	(1)
Other expense	Other expense					(1)
Total						$	(2)	$	(1)
Fourth Quarter 2018
None		N/A		N/A
Third Quarter 2018
None		N/A		N/A
Second Quarter 2018
None		N/A		N/A
First Quarter 2018
None		N/A		N/A

(1)Includes costs not classified as merger-related and restructuring charges that are excluded from adjusted disclosures.

Truist Financial Corporation 19

Selected Mortgage Banking Information & Additional Information
	As of/For the Quarter Ended
	Dec. 31			Sept. 30			June 30			March 31			Dec. 31
(Dollars in millions, except per share data)	2019			2019			2019			2019			2018
Residential Mortgage Income
Residential mortgage production revenue	$	40		$	50		$	37		$	20		$	22
Residential mortgage servicing revenue	78			64			62			61			65
Realization of expected residential MSR cash flows	(59)			(36)			(38)			(33)			(37)
Residential mortgage income before MSR valuation	59			78			61			48			50
Income statement impact of mortgage servicing rights valuation:
MSRs fair value increase (decrease)	80			(79)			(47)			(51)			(49)
MSRs hedge gains (losses)	(74)			81			77			52			57
Net MSRs valuation	6			2			30			1			8
Total residential mortgage income	$	65		$	80		$	91		$	49		$	58
Commercial Real Estate Related Income
Commercial mortgage production revenue	$	44		$	26		$	20		$	11		$	28
Commercial mortgage servicing revenue	13			10			9			10			9
Realization of expected commercial MSR cash flows	(7)			(7)			(7)			(7)			(7)
Commercial real estate related income before MSR valuation	50			29			22			14			30
Income statement impact of mortgage servicing rights valuation:
MSRs fair value increase (decrease)	2			—			(5)			(3)			(6)
MSRs hedge gains (losses)	(4)			3			5			3			4
Net MSRs valuation	(2)			3			—			—			(2)
Commercial real estate related income	$	48		$	32		$	22		$	14		$	28
Other Mortgage Banking Information
Residential mortgage loan originations	$	7,523		$	5,274		$	4,735		$	2,383		$	2,735
Residential mortgage servicing portfolio (1):
Loans serviced for others	219,347			87,147			85,060			86,119			87,270
Bank-owned loans serviced	60,211			29,122			32,852			31,861			31,335
Total servicing portfolio	279,558			116,269			117,912			117,980			118,605
Weighted-average coupon rate on mortgage loans serviced for others	4.04		%	4.09		%	4.07		%	4.06		%	4.04		%
Weighted-average servicing fee on mortgage loans serviced for others	0.310			0.280			0.279			0.278			0.277
Additional Information
Fair value of derivatives, net	1,687			641			489			158			(1)
Common stock prices:
High	56.92			53.85			51.76			52.45			52.11
Low	50.02			44.98			46.53			42.79			40.68
End of period	56.32			53.37			49.13			46.53			43.32
Banking offices	2,958			1,789			1,787			1,871			1,879
ATMs	4,426			2,376			2,376			2,503			2,573
FTEs (2)	40,691			34,723			34,771			35,334			35,852

(1)Amounts reported are unpaid principal balance.

(2)FTEs represents an average for the quarter. The timing of the merger impacted the 4Q19 result.

Non-GAAP Reconciliations
	Quarter Ended																					Year-to-Date
	Dec. 31			Sept. 30			June 30			March 31			Dec. 31			Dec. 31			Dec. 31
(Dollars in millions)	2019			2019			2019			2019			2018			2019			2018
Efficiency Ratio (1)
Efficiency Ratio Numerator - Noninterest Expense - GAAP	$	2,575		$	1,840		$	1,751		$	1,768		$	1,784		$	7,934		$	6,932
Merger-related and restructuring charges, net	(223)			(34)			(23)			(80)			(76)			(360)			(146)
Incremental operating expense related to the merger	(101)			(52)			(9)			(2)			—			(164)			—
Amortization	(71)			(29)			(32)			(32)			(34)			(164)			(131)
Corporate advance write off	(2)			—			—			—			—			(2)			—
Efficiency Ratio Numerator - Adjusted	$	2,178		$	1,725		$	1,687		$	1,654		$	1,674		$	7,244		$	6,655
Efficiency Ratio Denominator - Revenue (2) - GAAP	$	3,625		$	3,003		$	3,042		$	2,898		$	2,940		$	12,568		$	11,558
Taxable equivalent adjustment	25			23			24			24			24			96			96
Securities (gains) losses, net	116			—			—			—			(2)			116			(3)
Gain (loss) on loan portfolio sale	22			(4)			—			—			—			18			—
Efficiency Ratio Denominator - Adjusted	$	3,788		$	3,022		$	3,066		$	2,922		$	2,962		$	12,798		$	11,651
Efficiency Ratio - GAAP	71.0		%	61.3		%	57.6		%	61.0		%	60.7		%	63.1		%	60.0		%
Efficiency Ratio - Adjusted	57.5			57.1			55.1			56.6			56.5			56.6			57.1

(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.

20 Truist Financial Corporation

	Quarter Ended																					Year-to-Date
	Dec. 31			Sept. 30			June 30			March 31			Dec. 31			Dec. 31			Dec. 31
(Dollars in millions)	2019			2019			2019			2019			2018			2019			2018
Return on Average Tangible Common Shareholders' Equity (1)
Net income available to common shareholders	$	702		$	735		$	842		$	749		$	754		$	3,028		$	3,063
Plus: Amortization of intangibles, net of tax	57			22			24			25			25			128			100
Tangible net income available to common shareholders	$	759		$	757		$	866		$	774		$	779		$	3,156		$	3,163
Average common shareholders' equity	$	38,031		$	29,040		$	28,188		$	27,432		$	26,860		$	30,697		$	26,640
Less: Average intangible assets, net of deferred taxes	14,760			10,298			10,326			10,343			10,391			11,460			10,243
Average tangible common shareholders' equity	$	23,271		$	18,742		$	17,862		$	17,089		$	16,469		$	19,237		$	16,397
Return on average common shareholders' equity	7.33		%	10.04		%	11.98		%	11.08		%	11.14		%	9.87		%	11.50		%
Return on average tangible common shareholders' equity	12.91			16.03			19.45			18.36			18.77			16.40			19.48

(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 and believes investors may find them useful in their analysis of the Corporation. These measures are not necessarily comparable to similar measures that may be presented by other companies.

	Quarter Ended														Year-to-Date
	Dec. 31		Sept. 30		June 30		March 31		Dec. 31		Dec. 31		Dec. 31
(Dollars in millions, except per share data)	2019		2019		2019		2019		2018		2019		2018
Diluted EPS (1)
Net income available to common shareholders - GAAP	$	702	$	735	$	842	$	749	$	754	$	3,028	$	3,063
Merger-related and restructuring charges, net	176		26		19		64		59		285		111
Securities gains (losses), net	90		—		—		—		(1)		90		(2)
Incremental operating expenses related to the merger	79		40		7		1		—		127		—
Corporate advance write off	1		—		—		—		—		1		—
Gain (loss) on loan portfolio sale	17		(3)		—		—		—		14		—
Redemption of preferred shares	—		46		—		—		—		46		—
Allowance release related to loan portfolio sale	(19)		(12)		—		—		—		(31)		—
Net income available to common shareholders - adjusted	$	1,046	$	832	$	868	$	814	$	812	$	3,560	$	3,172
Weighted average shares outstanding - diluted	934,718		775,791		774,603		774,071		775,402		815,204		783,484
Diluted EPS - GAAP	$	0.75	$	0.95	$	1.09	$	0.97	$	0.97	$	3.71	$	3.91
Diluted EPS - adjusted	1.12		1.07		1.12		1.05		1.05		4.37		4.05

(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 21