Truist Financial 8K Truist Reports First Quarter 2020 Results | TFC 20 Apr 20

Quarterly Performance Summary

Truist Financial Corporation

First 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

Credit Quality		11

Capital Information - Five Quarter Trend		15
Selected Mortgage Banking Information & Additional Information		16
Selected Items		17
Non-GAAP Reconciliations		17


Financial Highlights
	Quarter Ended
	March 31								%
(Dollars in millions, except per share data, shares in thousands)	2020			2019			Change
Summary Income Statement
Interest income - taxable equivalent	$	4,463		$	2,197		103.1	%
Interest expense	776			477			62.7
Net interest income - taxable equivalent	3,687			1,720			114.4
Less: Taxable-equivalent adjustment	37			24			54.2
Net interest income	3,650			1,696			115.2
Provision for credit losses	893			155			NM
Net interest income after provision for credit losses	2,757			1,541			78.9
Noninterest income	1,961			1,202			63.1
Noninterest expense	3,431			1,768			94.1
Income before income taxes	1,287			975			32.0
Provision for income taxes	224			177			26.6
Net income	1,063			798			33.2
Noncontrolling interests	3			6			(50.0)
Preferred stock dividends	74			43			72.1
Net income available to common shareholders	986			749			31.6
Per Common Share Data

Earnings per share-basic	$	0.73		$	0.98		(25.5)	%
Earnings per share-diluted	0.73			0.97			(24.7)
Earnings per share-adjusted diluted (1)	0.87			1.05			(17.1)
Cash dividends declared	0.450			0.405			11.1
Common shareholders' equity	45.49			36.26			25.5
Tangible common shareholders' equity (1)	26.00			22.78			14.1
End of period shares outstanding	1,347,461			765,920			75.9

Weighted average shares outstanding-basic	1,344,372			764,135			75.9
Weighted average shares outstanding-diluted	1,357,545			774,071			75.4
Performance Ratios
Return on average assets	0.90		%	1.43		%
Return on average risk-weighted assets (current period is preliminary)	1.11			1.78
Return on average common shareholders' equity	6.58			11.08
Return on average tangible common shareholders' equity (1)	13.23			18.36
Net interest margin - taxable equivalent	3.58			3.51
Fee income ratio	34.9			41.5
Efficiency ratio-GAAP	61.1			61.0
Efficiency ratio-adjusted (1)	53.4			56.6
Credit Quality
Nonperforming assets as a percentage of:
Assets	0.23		%	0.26		%
Loans and leases plus foreclosed property	0.36			0.39
Net charge-offs as a percentage of average loans and leases	0.36			0.40
Allowance for loan and lease losses as a percentage of loans and leases held for investment	1.63			1.05
Ratio of allowance for loan and lease losses to nonperforming loans and leases held for investment	5.04x			2.97x
Average Balances
Assets	$	477,550		$	225,573		111.7	%
Securities (2)	75,701			46,734			62.0
Loans and leases	307,748			148,790			106.8
Deposits	334,649			160,045			109.1
Common shareholders' equity	60,224			27,432			119.5
Total shareholders' equity	65,412			30,541			114.2
Period-End Balances
Assets	$	506,229		$	227,683		122.3	%
Securities (2)	78,398			46,410			68.9
Loans and leases	324,039			149,891			116.2
Deposits	350,179			159,766			119.2
Common shareholders' equity	61,295			27,770			120.7
Total shareholders' equity	66,061			30,883			113.9
Capital Ratios (current quarter is preliminary)
Risk-based:
Common equity Tier 1	9.3		%	10.3		%
Tier 1	10.5			12.0
Total	12.6			14.2

Leverage	9.0			10.1
Supplementary leverage	7.8			NA
Applicable ratios are annualized.
NM - not meaningful
(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.

Truist Financial Corporation 1


Financial Highlights - Five Quarter Trend
	Quarter Ended
	March 31			Dec. 31			Sept. 30			June 30			March 31
(Dollars in millions, except per share data, shares in thousands)	2020			2019			2019			2019			2019
Summary Income Statement
Interest income - taxable equivalent	$	4,463		$	2,837		$	2,241		$	2,230		$	2,197
Interest expense	776			585			518			516			477
Net interest income - taxable equivalent	3,687			2,252			1,723			1,714			1,720
Less: Taxable-equivalent adjustment	37			25			23			24			24
Net interest income	3,650			2,227			1,700			1,690			1,696
Provision for credit losses	893			171			117			172			155
Net interest income after provision for credit losses	2,757			2,056			1,583			1,518			1,541
Noninterest income	1,961			1,398			1,303			1,352			1,202
Noninterest expense	3,431			2,575			1,840			1,751			1,768
Income before income taxes	1,287			879			1,046			1,119			975
Provision for income taxes	224			153			218			234			177
Net income	1,063			726			828			885			798
Noncontrolling interests	3			5			3			(1)			6
Preferred stock dividends	74			19			90			44			43
Net income available to common shareholders	986			702			735			842			749
Per Common Share Data

Earnings per share-basic	$	0.73		$	0.76		$	0.96		$	1.10		$	0.98
Earnings per share-diluted	0.73			0.75			0.95			1.09			0.97
Earnings per share-adjusted diluted (1)	0.87			1.12			1.07			1.12			1.05
Cash dividends declared	0.450			0.450			0.450			0.405			0.405
Common shareholders' equity	45.49			45.66			38.07			37.40			36.26
Tangible common shareholders' equity (1)	26.00			25.93			24.66			23.93			22.78
End of period shares outstanding	1,347,461			1,342,166			766,303			766,010			765,920

Weighted average shares outstanding-basic	1,344,372			922,840			766,167			765,958			764,135
Weighted average shares outstanding-diluted	1,357,545			934,718			775,791			774,603			774,071
Performance Ratios
Return on average assets	0.90		%	0.95		%	1.41		%	1.55		%	1.43		%
Return on average risk-weighted assets (current quarter is preliminary)	1.11			1.02			1.75			1.92			1.78
Return on average common shareholders' equity	6.58			7.33			10.04			11.98			11.08
Return on average tangible common shareholders' equity (1)	13.23			12.91			16.03			19.45			18.36
Net interest margin - taxable equivalent	3.58			3.41			3.37			3.42			3.51
Fee income ratio	34.9			38.6			43.4			44.4			41.5
Efficiency ratio-GAAP	61.1			71.0			61.3			57.6			61.0
Efficiency ratio-adjusted (1)	53.4			57.5			57.1			55.1			56.6
Credit Quality
Nonperforming assets as a percentage of:
Assets	0.23		%	0.14		%	0.22		%	0.23		%	0.26		%
Loans and leases plus foreclosed property	0.36			0.19			0.34			0.34			0.39
Net charge-offs as a percentage of average loans and leases	0.36			0.40			0.41			0.38			0.40
Allowance for loan and lease losses as a percentage of loans and leases held for investment	1.63			0.52			1.05			1.05			1.05
Ratio of allowance for loan and lease losses to nonperforming loans and leases held for investment	5.04x			3.41x			3.52x			3.46x			2.97x
Average Balances
Assets	$	477,550		$	302,059		$	232,420		$	229,249		$	225,573
Securities (2)	75,701			60,699			48,900			46,115			46,734
Loans and leases	307,748			193,641			152,042			151,557			148,790
Deposits	334,649			210,716			161,992			159,891			160,045
Common shareholders' equity	60,224			38,031			29,040			28,188			27,432
Total shareholders' equity	65,412			41,740			32,744			31,301			30,541
Period-End Balances
Assets	$	506,229		$	473,078		$	236,750		$	230,872		$	227,683
Securities (2)	78,398			74,727			54,765			45,289			46,410
Loans and leases	324,039			308,215			150,855			153,823			149,891
Deposits	350,179			334,727			162,280			159,521			159,766
Common shareholders' equity	61,295			61,282			29,177			28,650			27,770
Total shareholders' equity	66,061			66,558			32,303			31,764			30,883
Capital Ratios (current quarter is preliminary)
Risk-based:
Common equity Tier 1	9.3		%	9.5		%	10.6		%	10.4		%	10.3		%
Tier 1	10.5			10.8			12.2			12.0			12.0
Total	12.6			12.6			14.8			14.2			14.2

Leverage (3)	9.0			14.7			10.3			10.2			10.1
Supplementary leverage (4)	7.8			7.9			NA			NA			NA
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.
(4) 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.


Consolidated Statements of Income
	Quarter Ended
	March 31						Change
(Dollars in millions, except per share data, shares in thousands)	2020		2019		$		%
Interest Income
Interest and fees on loans and leases	$	3,776	$	1,839	$	1,937	105.3	%
Interest on securities	494		302		192		63.6
Interest on other earning assets	156		32		124		NM
Total interest income	4,426		2,173		2,253		103.7
Interest Expense
Interest on deposits	421		253		168		66.4

Interest on long-term debt	272		192		80		41.7
Interest on other borrowings	83		32		51		159.4
Total interest expense	776		477		299		62.7

Net Interest Income	3,650		1,696		1,954		115.2
Provision for credit losses	893		155		738		NM
Net Interest Income After Provision for Credit Losses	2,757		1,541		1,216		78.9
Noninterest Income
Insurance income	549		510		39		7.6
Service charges on deposits	305		171		134		78.4
Wealth management income	332		162		170		104.9
Card and payment related fees	187		128		59		46.1
Residential mortgage income	245		49		196		NM
Investment banking and trading income	118		27		91		NM
Operating lease income	77		35		42		120.0
Income from bank-owned life insurance	44		28		16		57.1
Lending related fees	67		25		42		168.0
Commercial real estate related income	44		14		30		NM
Securities gains (losses)	(2)		—		(2)		NM
Other income	(5)		53		(58)		(109.4)
Total noninterest income	1,961		1,202		759		63.1
Noninterest Expense
Personnel expense	1,972		1,087		885		81.4
Net occupancy expense	221		122		99		81.1
Professional fees and outside processing	247		86		161		187.2
Software expense	210		72		138		191.7
Equipment expense	116		65		51		78.5
Marketing and customer development	84		27		57		NM
Operating lease depreciation	71		29		42		144.8
Loan-related expense	62		25		37		148.0
Amortization of intangibles	165		32		133		NM
Regulatory costs	29		18		11		61.1
Merger-related and restructuring charges	107		80		27		33.8

Other expense	147		125		22		17.6
Total noninterest expense	3,431		1,768		1,663		94.1
Earnings
Income before income taxes	1,287		975		312		32.0
Provision for income taxes	224		177		47		26.6
Net income	1,063		798		265		33.2
Noncontrolling interests	3		6		(3)		(50.0)
Preferred stock dividends	74		43		31		72.1
Net income available to common shareholders	$	986	$	749	$	237	31.6	%
Earnings Per Common Share
Basic	$	0.73	$	0.98	$	(0.25)	(25.5)	%
Diluted	0.73		0.97		(0.24)		(24.7)
Weighted Average Shares Outstanding
Basic	1,344,372		764,135		580,237		75.9
Diluted	1,357,545		774,071		583,474		75.4
NM - not meaningful

Truist Financial Corporation 2


Consolidated Statements of Income - Five Quarter Trend
	Quarter Ended
	March 31		Dec. 31		Sept. 30		June 30		March 31
(Dollars in millions, except per share data, shares in thousands)	2020		2019		2019		2019		2019
Interest Income
Interest and fees on loans and leases	$	3,776	$	2,371	$	1,886	$	1,886	$	1,839
Interest on securities	494		402		315		300		302
Interest on other earning assets	156		39		17		20		32
Total interest income	4,426		2,812		2,218		2,206		2,173
Interest Expense
Interest on deposits	421		304		271		273		253
Interest on long-term debt	272		219		193		193		192
Interest on other borrowings	83		62		54		50		32
Total interest expense	776		585		518		516		477
Net Interest Income	3,650		2,227		1,700		1,690		1,696
Provision for credit losses	893		171		117		172		155
Net Interest Income After Provision for Credit Losses	2,757		2,056		1,583		1,518		1,541
Noninterest Income
Insurance income	549		509		487		566		510
Service charges on deposits	305		222		188		181		171
Wealth management income	332		206		175		172		162
Card and payment related fees	187		156		132		139		128
Residential mortgage income	245		65		80		91		49
Investment banking and trading income	118		109		60		48		27
Operating lease income	77		47		36		35		35
Income from bank-owned life insurance	44		38		29		34		28
Lending related fees	67		47		24		28		25
Commercial real estate related income	44		48		32		22		14
Securities gains (losses)	(2)		(116)		—		—		—
Other income	(5)		67		60		36		53
Total noninterest income	1,961		1,398		1,303		1,352		1,202
Noninterest Expense
Personnel expense	1,972		1,465		1,161		1,120		1,087
Net occupancy expense	221		147		122		116		122
Professional fees and outside processing	247		161		102		84		86
Software expense	210		118		77		71		72
Equipment expense	116		83		64		68		65
Marketing and customer development	84		45		36		29		27
Operating lease depreciation	71		43		35		29		29
Loan-related expense	62		42		26		30		25
Amortization of intangibles	165		71		29		32		32
Regulatory costs	29		24		20		19		18
Merger-related and restructuring charges	107		223		34		23		80

Other expense	147		153		134		130		125
Total noninterest expense	3,431		2,575		1,840		1,751		1,768
Earnings
Income before income taxes	1,287		879		1,046		1,119		975
Provision for income taxes	224		153		218		234		177
Net income	1,063		726		828		885		798
Noncontrolling interests	3		5		3		(1)		6
Preferred stock dividends	74		19		90		44		43
Net income available to common shareholders	$	986	$	702	$	735	$	842	$	749
Earnings Per Common Share
Basic	$	0.73	$	0.76	$	0.96	$	1.10	$	0.98
Diluted	0.73		0.75		0.95		1.09		0.97
Weighted Average Shares Outstanding
Basic	1,344,372		922,840		766,167		765,958		764,135
Diluted	1,357,545		934,718		775,791		774,603		774,071

4 Truist Financial Corporation


Segment Financial Performance - Preliminary
	Quarter Ended
	March 31		Dec. 31		Sept. 30		June 30		March 31
(Dollars in millions)	2020		2019		2019		2019		2019
Consumer Banking and Wealth
Net interest income (expense)	$	1,860	$	1,114	$	855	$	835	$	828
Net intersegment interest income (expense)	388		278		225		210		193
Segment net interest income	2,248		1,392		1,080		1,045		1,021
Allocated provision for credit losses	437		145		115		123		131
Noninterest income	1,072		646		574		580		507
Noninterest expense	1,993		1,319		930		899		882
Income (loss) before income taxes	890		574		609		603		515
Provision (benefit) for income taxes	209		139		147		146		125
Segment net income (loss)	$	681	$	435	$	462	$	457	$	390




Corporate and Commercial Banking
Net interest income (expense)	$	1,534	$	934	$	729	$	751	$	739
Net intersegment interest income (expense)	(194)		(95)		(85)		(109)		(105)
Segment net interest income	1,340		839		644		642		634
Allocated provision for credit losses	399		17		14		51		20
Noninterest income	460		419		277		251		244
Noninterest expense	886		575		342		325		315
Income (loss) before income taxes	515		666		565		517		543
Provision (benefit) for income taxes	92		144		119		107		113
Segment net income (loss)	$	423	$	522	$	446	$	410	$	430




Insurance Holdings
Net interest income (expense)	$	36	$	38	$	39	$	35	$	34
Net intersegment interest income (expense)	(11)		(11)		(11)		(10)		(11)
Segment net interest income	25		27		28		25		23
Allocated provision for credit losses	1		2		2		2		3
Noninterest income	557		536		491		570		515
Noninterest expense	440		481		435		444		417
Income (loss) before income taxes	141		80		82		149		118
Provision (benefit) for income taxes	36		21		21		38		30
Segment net income (loss)	$	105	$	59	$	61	$	111	$	88
















Other, Treasury & Corporate (1)
Net interest income (expense)	$	220	$	141	$	77	$	69	$	95
Net intersegment interest income (expense)	(183)		(172)		(129)		(91)		(77)
Segment net interest income	37		(31)		(52)		(22)		18
Allocated provision for credit losses	56		7		(14)		(4)		1
Noninterest income	(128)		(203)		(39)		(49)		(64)
Noninterest expense	112		200		133		83		154
Income (loss) before income taxes	(259)		(441)		(210)		(150)		(201)
Provision (benefit) for income taxes	(113)		(151)		(69)		(57)		(91)
Segment net income (loss)	$	(146)	$	(290)	$	(141)	$	(93)	$	(110)


Total Truist Financial Corporation
Net interest income (expense)	$	3,650	$	2,227	$	1,700	$	1,690	$	1,696
Net intersegment interest income (expense)	—		—		—		—		—
Segment net interest income	3,650		2,227		1,700		1,690		1,696
Allocated provision for credit losses	893		171		117		172		155
Noninterest income	1,961		1,398		1,303		1,352		1,202
Noninterest expense	3,431		2,575		1,840		1,751		1,768
Income (loss) before income taxes	1,287		879		1,046		1,119		975
Provision (benefit) for income taxes	224		153		218		234		177
Net income	$	1,063	$	726	$	828	$	885	$	798

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
	March 31		Dec. 31		Sept. 30		June 30		March 31
(Dollars in millions)	2020		2019		2019		2019		2019
Assets
Cash and due from banks	$	5,312	$	4,084	$	2,027	$	1,831	$	1,873
Interest-bearing deposits with banks	31,036		14,981		877		722		847
Federal funds sold and securities purchased under resale agreements or similar arrangements	1,796		1,417		114		148		252
Trading assets	3,863		5,733		400		1,429		1,524
Securities available for sale at fair value	78,398		74,727		35,997		25,802		26,315
Securities held to maturity at amortized cost	—		—		18,768		19,487		20,095
Loans and leases:
Commercial:
Commercial and industrial	149,161		130,180		64,324		63,693		61,978
CRE	27,532		26,832		17,080		16,976		16,718
Commercial construction	6,630		6,205		3,804		3,746		4,111
Lease financing	5,984		6,122		2,356		2,203		2,098
Consumer:
Residential mortgage	53,096		52,071		28,297		32,607		31,572
Residential home equity and direct	27,629		27,044		11,646		11,675		11,646
Indirect auto	25,146		24,442		11,871		11,756		11,506
Indirect other	10,980		11,100		6,590		6,453		6,017
Student	7,771		6,743		—		—		—
Credit card	5,300		5,619		3,058		3,056		2,970
PCI	—		3,484		387		421		441
Total loans and leases held for investment	319,229		299,842		149,413		152,586		149,057
Loans held for sale	4,810		8,373		1,442		1,237		834
Total loans and leases	324,039		308,215		150,855		153,823		149,891
Allowance for loan and lease losses	(5,211)		(1,549)		(1,573)		(1,595)		(1,561)
Premises and equipment	3,999		3,712		2,022		2,029		2,078
Goodwill	23,927		24,154		9,832		9,830		9,818
Core deposit and other intangible assets	3,168		3,142		678		712		726
Mortgage servicing rights	2,150		2,630		929		982		1,049
Other assets	33,752		31,832		15,824		15,672		14,776
Total assets	$	506,229	$	473,078	$	236,750	$	230,872	$	227,683
Liabilities
Deposits:
Noninterest-bearing deposits	$	97,618	$	92,405	$	52,667	$	52,458	$	53,021
Interest checking	92,950		85,492		27,723		28,021		28,028
Money market and savings	124,072		120,934		64,454		63,972		63,739
Time deposits	35,539		35,896		16,526		15,070		14,978
Foreign office deposits - interest-bearing	—		—		910		—		—
Total deposits	350,179		334,727		162,280		159,521		159,766
Short-term borrowings	12,696		18,218		10,405		10,344		6,305
Long-term debt	65,662		41,339		25,520		22,640		24,729
Other liabilities	11,631		12,236		6,242		6,603		6,000
Total liabilities	440,168		406,520		204,447		199,108		196,800
Shareholders' Equity:
Preferred stock	4,599		5,102		3,057		3,053		3,053
Common stock	6,737		6,711		3,832		3,830		3,830
Additional paid-in capital	35,584		35,609		6,931		6,889		6,843
Retained earnings	18,076		19,806		19,440		19,050		18,518
Accumulated other comprehensive loss	898		(844)		(1,026)		(1,119)		(1,421)
Noncontrolling interests	167		174		69		61		60
Total shareholders' equity	66,061		66,558		32,303		31,764		30,883
Total liabilities and shareholders' equity	$	506,229	$	473,078	$	236,750	$	230,872	$	227,683
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
	March 31						Change
(Dollars in millions)	2020		2019		$		%
Assets
Securities at amortized cost (1):
U.S. Treasury	$	2,274	$	3,302	$	(1,028)	(31.1)	%
U.S. government-sponsored entities (GSE)	1,856		2,418		(562)		(23.2)
Mortgage-backed securities issued by GSE	70,816		40,044		30,772		76.8
States and political subdivisions	530		620		(90)		(14.5)
Non-agency mortgage-backed	185		315		(130)		(41.3)
Other	40		35		5		14.3

Total securities	75,701		46,734		28,967		62.0
Loans and leases:
Commercial:
Commercial and industrial	131,743		61,370		70,373		114.7
CRE	27,046		16,786		10,260		61.1
Commercial construction	6,409		4,119		2,290		55.6
Lease financing	6,070		2,021		4,049		NM
Consumer:
Residential mortgage	52,993		31,370		21,623		68.9
Residential home equity and direct	27,564		11,681		15,883		136.0
Indirect auto	24,975		11,308		13,667		120.9
Indirect other	10,950		6,029		4,921		81.6
Student	7,787		—		7,787		NM
Credit card	5,534		2,922		2,612		89.4
PCI	—		455		(455)		(100.0)
Total loans and leases held for investment	301,071		148,061		153,010		103.3
Loans held for sale	6,677		729		5,948		NM
Total loans and leases	307,748		148,790		158,958		106.8

Interest earning trading assets	6,334		602		5,732		NM
Other earning assets	23,750		1,595		22,155		NM
Total earning assets	413,533		197,721		215,812		109.1
Nonearning assets	64,017		27,852		36,165		129.8
Total assets	$	477,550	$	225,573	$	251,977	111.7	%
Liabilities and Shareholders' Equity
Deposits:
Noninterest-bearing deposits	$	93,135	$	52,283	$	40,852	78.1	%
Interest checking	85,008		27,622		57,386		NM
Money market and savings	120,936		63,325		57,611		91.0
Time deposits	35,570		16,393		19,177		117.0
Foreign office deposits - interest-bearing	—		422		(422)		(100.0)
Total deposits	334,649		160,045		174,604		109.1
Short-term borrowings	18,900		5,624		13,276		NM
Long-term debt	46,547		23,247		23,300		100.2
Other liabilities	12,042		6,116		5,926		96.9
Total liabilities	412,138		195,032		217,106		111.3
Shareholders' equity	65,412		30,541		34,871		114.2
Total liabilities and shareholders' equity	$	477,550	$	225,573	$	251,977	111.7	%
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
	March 31		Dec. 31		Sept. 30		June 30		March 31
(Dollars in millions)	2020		2019		2019		2019		2019
Assets
Securities at amortized cost (1):
U.S. Treasury	$	2,274	$	2,384	$	2,240	$	2,662	$	3,302
U.S. government-sponsored entities (GSE)	1,856		2,301		2,449		2,440		2,418
Mortgage-backed securities issued by GSE	70,816		55,119		43,415		40,112		40,044
States and political subdivisions	530		598		566		566		620
Non-agency mortgage-backed	185		263		198		302		315
Other	40		34		32		33		35

Total securities	75,701		60,699		48,900		46,115		46,734
Loans and leases:
Commercial:
Commercial and industrial	131,743		81,853		63,768		62,563		61,370
CRE	27,046		19,896		17,042		16,854		16,786
Commercial construction	6,409		4,506		3,725		3,894		4,119
Lease financing	6,070		3,357		2,260		2,122		2,021
Consumer:
Residential mortgage	52,993		34,824		28,410		32,066		31,370
Residential home equity and direct	27,564		15,810		11,650		11,687		11,681
Indirect auto	24,975		15,390		11,810		11,633		11,308
Indirect other	10,950		7,772		6,552		6,246		6,029
Student	7,787		1,825		—		—		—
Credit card	5,534		3,788		3,036		2,970		2,922
PCI	—		1,220		411		432		455
Total loans and leases held for investment	301,071		190,241		148,664		150,467		148,061
Loans held for sale	6,677		3,400		3,378		1,090		729
Total loans and leases	307,748		193,641		152,042		151,557		148,790

Interest earning trading assets	6,334		2,370		668		1,456		602
Other earning assets	23,750		6,405		1,798		1,711		1,595
Total earning assets	413,533		263,115		203,408		200,839		197,721
Nonearning assets	64,017		38,944		29,012		28,410		27,852
Total assets	$	477,550	$	302,059	$	232,420	$	229,249	$	225,573
Liabilities and Shareholders' Equity
Deposits:
Noninterest-bearing deposits	$	93,135	$	64,485	$	52,500	$	52,680	$	52,283
Interest checking	85,008		43,246		27,664		27,708		27,622
Money market and savings	120,936		79,903		64,920		63,394		63,325
Time deposits	35,570		23,058		16,643		15,730		16,393
Foreign office deposits - interest-bearing	—		24		265		379		422
Total deposits	334,649		210,716		161,992		159,891		160,045
Short-term borrowings	18,900		11,489		8,307		8,367		5,624
Long-term debt	46,547		29,888		22,608		23,233		23,247
Other liabilities	12,042		8,226		6,769		6,457		6,116
Total liabilities	412,138		260,319		199,676		197,948		195,032
Shareholders' equity	65,412		41,740		32,744		31,301		30,541
Total liabilities and shareholders' equity	$	477,550	$	302,059	$	232,420	$	229,249	$	225,573
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
	March 31, 2020										December 31, 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	$	2,274	$	11	1.93	%	$	2,384	$	12	1.97	%
U.S. government-sponsored entities (GSE)	1,856		10		2.33		2,301		12		2.28
Mortgage-backed securities issued by GSE	70,816		461		2.60		55,119		366		2.64
States and political subdivisions	530		5		3.56		598		4		3.38
Non-agency mortgage-backed	185		8		16.72		263		9		13.15
Other	40		—		3.01		34		—		3.53
Total securities	75,701		495		2.62		60,699		403		2.65
Loans and leases:
Commercial:
Commercial and industrial	131,743		1,419		4.33		81,853		862		4.18
CRE	27,046		287		4.25		19,896		223		4.43
Commercial construction	6,409		76		4.87		4,506		57		5.17
Lease financing	6,070		65		4.27		3,357		32		3.79
Consumer:
Residential mortgage	52,993		594		4.48		34,824		361		4.15
Residential home equity and direct	27,564		452		6.60		15,810		242		6.04
Indirect auto	24,975		428		6.89		15,390		312		8.04
Indirect other	10,950		201		7.37		7,772		133		6.77
Student	7,787		104		5.38		1,825		24		5.20
Credit card	5,534		133		9.68		3,788		85		9.06
PCI	—		—		—		1,220		33		10.63
Total loans and leases held for investment	301,071		3,759		5.02		190,241		2,364		4.94
Loans held for sale	6,677		53		3.14		3,400		31		3.52
Total loans and leases	307,748		3,812		4.98		193,641		2,395		4.91

Interest earning trading assets	6,334		64		4.04		2,370		11		1.84
Other earning assets	23,750		92		1.55		6,405		28		1.78
Total earning assets	413,533		4,463		4.33		263,115		2,837		4.29
Nonearning assets	64,017						38,944
Total assets	$	477,550					$	302,059
Liabilities and Shareholders' Equity
Interest-bearing deposits:
Interest checking	$	85,008	129		0.61		$	43,246	65		0.60
Money market and savings	120,936		178		0.59		79,903		152		0.76
Time deposits	35,570		114		1.29		23,058		87		1.48
Foreign office deposits - interest-bearing	—		—		—		24		—		2.19
Total interest-bearing deposits (4)	241,514		421		0.70		146,231		304		0.82
Short-term borrowings	18,900		83		1.76		11,489		62		2.15
Long-term debt	46,547		272		2.34		29,888		219		2.92
Total interest-bearing liabilities	306,961		776		1.02		187,608		585		1.24
Noninterest-bearing deposits (4)	93,135						64,485
Other liabilities	12,042						8,226
Shareholders' equity	65,412						41,740
Total liabilities and shareholders' equity	$	477,550					$	302,059
Average interest-rate spread					3.31						3.05

Net interest income/ net interest margin			$	3,687	3.58	%			$	2,252	3.41	%
Taxable-equivalent adjustment			$	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.
(3) Includes AFS and HTM securities.
(4) Total deposit costs were 0.51% and 0.57% for the three months ended March 31, 2020 and December 31, 2019, respectively.

Truist Financial Corporation 9


Average Balances and Rates - Quarters
	Quarter Ended
	September 30, 2019										June 30, 2019								March 31, 2019
	(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	$	2,240	$	11	2.04	%	$	2,662	$	14	2.04	%	$	3,302	$	16	2.01	%
U.S. government-sponsored entities (GSE)	2,449		14		2.25		2,440		13		2.25		2,418		14		2.24
Mortgage-backed securities issued by GSE	43,415		279		2.57		40,112		258		2.57		40,044		258		2.58
States and political subdivisions	566		5		3.44		566		6		4.37		620		6		3.73
Non-agency mortgage-backed	198		9		18.77		302		10		13.28		315		10		12.51
Other	32		—		3.67		33		1		3.85		35		—		3.96
Total securities	48,900		318		2.60		46,115		302		2.62		46,734		304		2.60
Loans and leases:
Commercial:
Commercial and industrial	63,768		671		4.18		62,563		679		4.35		61,370		656		4.33
CRE	17,042		209		4.83		16,854		210		4.97		16,786		207		4.99
Commercial construction	3,725		47		5.11		3,894		50		5.32		4,119		54		5.33
Lease financing	2,260		18		3.17		2,122		17		3.29		2,021		17		3.33
Consumer:
Residential mortgage	28,410		285		4.02		32,066		321		4.00		31,370		324		4.13
Residential home equity and direct	11,650		173		5.92		11,687		173		5.97		11,681		171		5.92
Indirect auto	11,810		262		8.84		11,633		254		8.71		11,308		240		8.62
Indirect other	6,552		110		6.61		6,246		102		6.63		6,029		98		6.57
Student	—		—		—		—		—		—		—		—		—
Credit card	3,036		71		9.18		2,970		67		8.94		2,922		65		9.03
PCI	411		25		24.23		432		24		21.63		455		20		17.99
Total loans and leases held for investment	148,664		1,871		5.00		150,467		1,897		5.05		148,061		1,852		5.06
Loans held for sale	3,378		35		4.16		1,090		11		4.17		729		8		4.38
Total loans and leases	152,042		1,906		4.98		151,557		1,908		5.05		148,790		1,860		5.06

Interest earning trading assets	668		3		2.02		1,456		8		2.25		602		4		2.27
Other earning assets	1,798		14		2.92		1,711		12		2.88		1,595		29		7.43
Total earning assets	203,408		2,241		4.38		200,839		2,230		4.45		197,721		2,197		4.49
Nonearning assets	29,012						28,410						27,852
Total assets	$	232,420					$	229,249					$	225,573
Liabilities and Shareholders' Equity
Interest-bearing deposits:
Interest checking	$	27,664	47		0.67		$	27,708	45		0.65		$	27,622	40		0.59
Money market and savings	64,920		156		0.95		63,394		163		1.03		63,325		150		0.96
Time deposits	16,643		67		1.62		15,730		63		1.58		16,393		60		1.50
Foreign office deposits - interest-bearing	265		1		2.13		379		2		2.43		422		3		2.43
Total interest-bearing deposits (4)	109,492		271		0.99		107,211		273		1.02		107,762		253		0.95
Short-term borrowings	8,307		54		2.55		8,367		50		2.40		5,624		32		2.32
Long-term debt	22,608		193		3.42		23,233		193		3.33		23,247		192		3.30
Total interest-bearing liabilities	140,407		518		1.47		138,811		516		1.49		136,633		477		1.41
Noninterest-bearing deposits (4)	52,500						52,680						52,283
Other liabilities	6,769						6,457						6,116
Shareholders' equity	32,744						31,301						30,541
Total liabilities and shareholders' equity	$	232,420					$	229,249					$	225,573
Average interest-rate spread					2.91						2.96						3.08

Net interest income/ net interest margin			$	1,723	3.37	%			$	1,714	3.42	%			$	1,720	3.51	%
Taxable-equivalent adjustment			$	23					$	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 0.67%, 0.68% and 0.64% for the three months ended September 30, 2019, June 30, 2019 and March 31, 2019, respectively.

10 Truist Financial Corporation


Credit Quality
	March 31		Dec. 31		Sept. 30		June 30		March 31
(Dollars in millions)	2020		2019		2019		2019		2019
Nonperforming Assets
Nonaccrual loans and leases:
Commercial:
Commercial and industrial	$	443	$	212	$	172	$	193	$	196
CRE	18		10		27		31		73
Commercial construction	2		—		2		2		2
Lease financing	27		8		2		2		1
Consumer:
Residential mortgage	248		55		106		104		121
Residential home equity and direct	170		67		56		54		53
Indirect auto	125		100		81		74		79
Indirect other	1		2		1		1		1


Total nonaccrual loans and leases held for investment	1,034		454		447		461		526
Loans held for sale	41		107		—		—		—
Total nonaccrual loans and leases	1,075		561		447		461		526
Foreclosed real estate	63		82		33		36		33

Other foreclosed property	39		41		29		26		25
Total nonperforming assets	$	1,177	$	684	$	509	$	523	$	584
Troubled Debt Restructurings (TDRs)
Performing TDRs:
Commercial:
Commercial and industrial	$	65	$	47	$	69	$	84	$	63
CRE	7		6		6		7		8
Commercial construction	36		37		1		1		1
Lease financing	1		—		—		—		—
Consumer:
Residential mortgage	513		470		570		581		669
Residential home equity and direct	66		51		54		53		54
Indirect auto	350		333		324		311		302
Indirect other	5		5		4		4		4
Student	1		—		—		—		—
Credit card	35		31		29		29		29
Total performing TDRs	1,079		980		1,057		1,070		1,130
Nonperforming TDRs	121		82		115		135		178
Total TDRs	$	1,200	$	1,062	$	1,172	$	1,205	$	1,308
Loans 90 Days or More Past Due and Still Accruing
Commercial:
Commercial and industrial	$	5	$	1	$	—	$	—	$	—
CRE	1		—		—		—		—


Consumer:
Residential mortgage	$	610	$	543	$	347	$	350	$	377
Residential home equity and direct	10		9		8		11		8
Indirect auto	11		11		9		7		5
Indirect other	2		2		—		—		—
Student	1,068		188		—		—		—
Credit card	41		22		15		13		13
PCI	—		1,218		24		26		28
Total loans 90 days past due and still accruing	$	1,748	$	1,994	$	403	$	407	$	431
Loans 30-89 Days Past Due
Commercial:
Commercial and industrial	$	262	$	94	$	34	$	32	$	36
CRE	8		5		1		3		3
Commercial construction	16		1		—		—		—
Lease financing	8		2		1		5		3
Consumer:
Residential mortgage	679		498		432		480		478
Residential home equity and direct	156		122		56		60		69
Indirect auto	521		560		380		354		281
Indirect other	74		85		43		39		35
Student	593		650		—		—		—
Credit card	57		56		29		26		25
PCI	—		140		16		17		18
Total loans 30-89 days past due	$	2,374	$	2,213	$	992	$	1,016	$	948

Truist Financial Corporation 11



	As of/For the Quarter Ended
	March 31		Dec. 31		Sept. 30		June 30		March 31
(Dollars in millions)	2020		2019		2019		2019		2019
Allowance for Credit Losses
Beginning balance	$	1,889	$	1,653	$	1,689	$	1,659	$	1,651
CECL adoption - impact to retained earnings	2,762		—		—		—		—
CECL adoption - reserves on PCD assets	378		—		—		—		—
Provision for credit losses	893		171		117		172		155

Charge-offs:
Commercial:
Commercial and industrial	(39)		(23)		(28)		(22)		(17)
CRE	(1)		(5)		(2)		(18)		(8)
Commercial construction	(3)		—		—		—		—
Lease financing	(2)		(9)		(1)		—		(1)
Consumer:
Residential mortgage	(11)		(8)		(3)		(5)		(5)
Residential home equity and direct	(68)		(25)		(24)		(24)		(20)
Indirect auto	(142)		(107)		(92)		(79)		(92)
Indirect other	(18)		(19)		(14)		(12)		(17)
Student	(8)		—		—		—		—
Credit card	(53)		(37)		(25)		(23)		(24)

Total charge-offs	(345)		(233)		(189)		(183)		(184)
Recoveries:
Commercial:
Commercial and industrial	17		6		5		8		6
CRE	—		—		3		2		—
Commercial construction	1		1		—		1		1
Lease financing	—		—		1		—		—
Consumer:
Residential mortgage	2		1		—		—		1
Residential home equity and direct	15		10		6		8		6
Indirect auto	23		13		12		14		13
Indirect other	7		5		3		5		4

Credit card	8		5		6		3		6

Total recoveries	73		41		36		41		37
Net charge-offs	(272)		(192)		(153)		(142)		(147)
Merger related items and other	(39)		257		—		—		—
Ending balance	$	5,611	$	1,889	$	1,653	$	1,689	$	1,659
Allowance for Credit Losses:
Allowance for loan and lease losses (excluding PCD / PCI loans)	$	4,880	$	1,541	$	1,565	$	1,587	$	1,552
Allowance for PCD / PCI loans	331		8		8		8		9
Reserve for unfunded lending commitments (RUFC)	400		340		80		94		98
Total	$	5,611	$	1,889	$	1,653	$	1,689	$	1,659



	As of/For the Quarter Ended
	March 31		Dec. 31		Sept. 30		June 30		March 31
	2020		2019		2019		2019		2019
Asset Quality Ratios
Loans 30-89 days past due and still accruing as a percentage of loans and leases	0.74	%	0.74	%	0.66	%	0.67	%	0.64	%
Loans 90 days or more past due and still accruing as a percentage of loans and leases	0.55		0.66		0.27		0.27		0.29
Nonperforming loans and leases as a percentage of loans and leases held for investment	0.32		0.15		0.30		0.30		0.35
Nonperforming loans and leases as a percentage of loans and leases (1)	0.33		0.18		0.30		0.30		0.35
Nonperforming assets as a percentage of:
Total assets (1)	0.23		0.14		0.22		0.23		0.26
Loans and leases plus foreclosed property	0.36		0.19		0.34		0.34		0.39
Net charge-offs as a percentage of average loans and leases	0.36		0.40		0.41		0.38		0.40
Allowance for loan and lease losses as a percentage of loans and leases	1.63		0.52		1.05		1.05		1.05
Ratio of allowance for loan and lease losses to:
Net charge-offs	4.76X		2.03X		2.59X		2.80X		2.62X
Nonperforming loans and leases	5.04X		3.41X		3.52X		3.46X		2.97X
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	0.04	%	0.03	%	0.04	%	0.04	%	0.04	%
Applicable ratios are annualized.
(1)Includes loans held for sale.

12 Truist Financial Corporation



	March 31, 2020
					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	$	64	98.5	%	$	1		1.5	%	$	—		—	%	$	65
CRE	7		100.0		—			—		—			—		7
Commercial construction	36		100.0		—			—		—			—		36
Lease financing	1		100.0		—			—		—			—		1
Consumer:
Residential mortgage	272		53.0		87			17.0		154			30.0		513
Residential home equity and direct	64		97.0		2			3.0		—			—		66
Indirect auto	295		84.3		55			15.7		—			—		350
Indirect other	5		100.0		—			—		—			—		5
Student	1		100.0		—			—		—			—		1
Credit card	29		82.9		4			11.4		2			5.7		35
Total performing TDRs (1)	774		71.7		149			13.8		156			14.5		1,079
Nonperforming TDRs (2)	75		61.9		6			5.0		40			33.1		121
Total TDRs (1)(2)	$	849	70.8	%	$	155		12.9	%	$	196		16.3	%	$	1,200
(1)Past due performing TDRs are included in past due disclosures.
(2)Nonperforming TDRs are included in nonaccrual loan disclosures.

					Quarter Ended
					March 31			Dec. 31		Sept. 30			June 30		March 31
					2020			2019		2019			2019		2019
Net Charge-offs as a Percentage of Average Loans and Leases:
Commercial:
Commercial and industrial					0.07		%	0.09	%	0.14		%	0.09	%	0.07		%
CRE					0.01			0.09		—			0.41		0.18
Commercial construction					0.13			(0.09)		(0.11)			(0.19)		(0.08)
Lease financing					0.05			1.03		0.11			0.03		0.10
Consumer:
Residential mortgage					0.07			0.09		0.04			0.06		0.05
Residential home equity and direct					0.78			0.39		0.60			0.57		0.47
Indirect auto					1.92			2.41		2.70			2.23		2.88
Indirect other					0.41			0.72		0.60			0.49		0.79
Student					0.38			(0.01)		—			—		—
Credit card					3.30			3.32		2.59			2.50		2.58

Total loans and leases					0.36			0.40		0.41			0.38		0.40
Applicable ratios are annualized.


Credit Quality - Allowance Rollforward with Fair Value Marks
	As of/For the Quarter Ended
	March 31, 2020
(Dollars in millions)	Loans and Leases			RUFC		Total
Beginning balance	$	1,549		$	340	$	1,889
CECL adoption	3,071			69		3,140
Provision (benefit) for credit losses	866			27		893
Net charge offs	(272)			—		(272)
Merger related items and other	(3)			(36)		(39)
Ending balance	5,211			400		5,611

Unamortized fair value mark (1)	3,539			—		3,539
Allowance plus unamortized fair value mark	$	8,750		$	400	$	9,150

Loans and leases held for investment	$	319,229
Unamortized fair value mark (1)	3,539
Gross loans and leases	$	322,768

Allowance for loan and lease losses as a percentage of loans and leases - GAAP	1.63		%
Allowance for loan and lease losses and unamortized fair value mark as a percentage of gross loans and leases - Adjusted (1) (2)	2.71

(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 this measure to assess credit reserves and believes investors may find this measure useful in their analysis of the Corporation.

Truist Financial Corporation 13


Rollforward of Intangible Assets and Selected Fair Value Marks (1)
	As of/For the Quarter Ended
	March 31		Dec. 31
(Dollars in millions)	2020		2019







Loans and Leases (2)
Beginning balance unamortized fair value mark	$	(4,564)	$	(221)
Additions - Merger with SunTrust	—		(4,513)
Accretion	454		170
CECL adoption - reserves on PCD assets	378		—
Adjustments and other additions	193		—
Ending balance	$	(3,539)	$	(4,564)
Core deposit and other intangible assets
Beginning balance	$	3,142	$	678
Additions - Merger with SunTrust	—		2,535
Additions - other acquisitions	31		—

Amortization of intangibles	(165)		(71)
Amortization in net occupancy expense	(5)		$	—
Adjustments	165		$	—
Ending balance	$	3,168	$	3,142
Deposits (3)
Beginning balance unamortized fair value mark	$	(76)	$	—
Additions - Merger with SunTrust	—		(83)
Amortization	22		7
Ending balance	$	(54)	$	(76)
Long-Term Debt (3)
Beginning balance unamortized fair value mark	$	(312)	$	(10)
Additions - Merger with SunTrust	—		(309)
Amortization	27		7

Ending balance	$	(285)	$	(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.

14 Truist Financial Corporation


Capital Information - Five Quarter Trend
	As of/For the Quarter Ended
	March 31			Dec. 31			Sept. 30			June 30			March 31
(Dollars in millions, except per share data, shares in thousands)	2020			2019			2019			2019			2019
Selected Capital Information	(preliminary)
Risk-based capital:
Common equity tier 1	$	36,381		$	35,643		$	19,905		$	19,435		$	18,848
Tier 1	40,978			40,743			22,960			22,486			21,899
Total	49,334			47,511			27,666			26,693			26,078
Risk-weighted assets	391,387			376,056			187,503			187,523			183,060
Average quarterly tangible assets	454,361			276,591			223,298			220,514			217,247
Risk-based capital ratios:
Common equity tier 1	9.3		%	9.5		%	10.6		%	10.4		%	10.3		%
Tier 1	10.5			10.8			12.2			12.0			12.0
Total	12.6			12.6			14.8			14.2			14.2
Leverage capital ratio (1)	9.0			14.7			10.3			10.2			10.1
Supplementary leverage (2)	7.8			7.9			NA			NA			NA
Equity as a percentage of total assets	13.0			14.1			13.6			13.8			13.6
Common equity per common share	$	45.49		$	45.66		$	38.07		$	37.40		$	36.26
(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.

	March 31			Dec. 31			Sept. 30			June 30			March 31
(Dollars in millions, except per share data, shares in thousands)	2020			2019			2019			2019			2019
Calculations of Tangible Common Equity and Related Measures: (1)
Total shareholders' equity	$	66,061		$	66,558		$	32,303		$	31,764		$	30,883
Less:
Preferred stock	4,599			5,102			3,057			3,053			3,053
Noncontrolling interests	167			174			69			61			60
Intangible assets, net of deferred taxes	26,263			26,482			10,281			10,317			10,326
Tangible common equity	$	35,032		$	34,800		$	18,896		$	18,333		$	17,444







Outstanding shares at end of period (in thousands)	1,347,461			1,342,166			766,303			766,010			765,920

Tangible Common Equity Per Common Share	$	26.00		$	25.93		$	24.66		$	23.93		$	22.78

(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.

Truist Financial Corporation 15


Selected Mortgage Banking Information & Additional Information
	As of/For the Quarter Ended
	March 31			Dec. 31			Sept. 30			June 30			March 31
(Dollars in millions, except per share data)	2020			2019			2019			2019			2019
Residential Mortgage Income
Residential mortgage production revenue	$	206		$	40		$	50		$	37		$	20
Residential mortgage servicing revenue	169			78			64			62			61
Realization of expected residential MSR cash flows	(122)			(59)			(36)			(38)			(33)
Residential mortgage income before MSR valuation	253			59			78			61			48
Income statement impact of mortgage servicing rights valuation:
MSRs fair value increase (decrease)	(503)			80			(79)			(47)			(51)
MSRs hedge gains (losses)	495			(74)			81			77			52
Net MSRs valuation	(8)			6			2			30			1
Total residential mortgage income	$	245		$	65		$	80		$	91		$	49
Commercial Real Estate Related Income
Commercial mortgage production revenue	$	36		$	44		$	26		$	20		$	11
Commercial mortgage servicing revenue	19			13			10			9			10
Realization of expected commercial MSR cash flows	(11)			(7)			(7)			(7)			(7)
Commercial real estate related income before MSR valuation	44			50			29			22			14
Income statement impact of mortgage servicing rights valuation:
MSRs fair value increase (decrease)	(20)			2			—			(5)			(3)
MSRs hedge gains (losses)	20			(4)			3			5			3
Net MSRs valuation	—			(2)			3			—			—
Commercial real estate related income	$	44		$	48		$	32		$	22		$	14
Other Mortgage Banking Information
Residential mortgage loan originations	$	11,708		$	7,523		$	5,274		$	4,735		$	2,383
Residential mortgage servicing portfolio (1):
Loans serviced for others	219,979			219,347			87,147			85,060			86,119
Bank-owned loans serviced	56,325			60,211			29,122			32,852			31,861
Total servicing portfolio	276,304			279,558			116,269			117,912			117,980
Weighted-average coupon rate on mortgage loans serviced for others	4.02		%	4.04		%	4.09		%	4.07		%	4.06		%
Weighted-average servicing fee on mortgage loans serviced for others	0.313			0.310			0.280			0.279			0.278

Additional Information

Fair value of derivatives, net	3,276			1,687			641			489			158
Common stock prices:
High	56.68			56.92			53.85			51.76			52.45
Low	24.01			50.02			44.98			46.53			42.79
End of period	30.84			56.32			53.37			49.13			46.53
Banking offices	2,957			2,958			1,789			1,787			1,871
ATMs	4,408			4,426			2,376			2,376			2,503
FTEs (2)	56,504			40,691			34,723			34,771			35,334

(1)Amounts reported are unpaid principal balance.

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

16 Truist Financial Corporation


Selected Items (1)
	Favorable (Unfavorable)
(Dollars in millions)			After-Tax at
Description	Pre-Tax		Marginal Rate
Selected Items
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)
COVID-19 impact ($62 million in personnel expense, $4 million in card and payment related fees, $3 million in net occupancy expense, and $2 million in service charges on deposits)	(71)		(54)



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 Ended
	March 31			Dec. 31			Sept. 30			June 30			March 31
(Dollars in millions)	2020			2019			2019			2019			2019
Efficiency Ratio (1)
Efficiency Ratio Numerator - Noninterest Expense - GAAP	$	3,431		$	2,575		$	1,840		$	1,751		$	1,768
Merger-related and restructuring charges, net	(107)			(223)			(34)			(23)			(80)

Incremental operating expense related to the merger	(74)			(101)			(52)			(9)			(2)
Amortization	(165)			(71)			(29)			(32)			(32)

Corporate advance write off	—			(2)			—			—			—


COVID-19 impact	(65)			—			—			—			—



Efficiency Ratio Numerator - Adjusted	$	3,020		$	2,178		$	1,725		$	1,687		$	1,654











Efficiency Ratio Denominator - Revenue (2) - GAAP	$	5,611		$	3,625		$	3,003		$	3,042		$	2,898
Taxable equivalent adjustment	37			25			23			24			24
Securities (gains) losses, net	2			116			—			—			—
Gain (loss) on loan portfolio sale	—			22			(4)			—			—
COVID-19 impact	6			—			—			—			—



Efficiency Ratio Denominator - Adjusted	$	5,656		$	3,788		$	3,022		$	3,066		$	2,922



Efficiency Ratio - GAAP	61.1		%	71.0		%	61.3		%	57.6		%	61.0		%
Efficiency Ratio - Adjusted	53.4			57.5			57.1			55.1			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.

Truist Financial Corporation 17






	Quarter Ended
	March 31			Dec. 31			Sept. 30			June 30			March 31
(Dollars in millions)	2020			2019			2019			2019			2019
Return on Average Tangible Common Shareholders' Equity (1)
Net income available to common shareholders	$	986		$	702		$	735		$	842		$	749
Plus: Amortization of intangibles, net of tax	126			57			22			24			25
Tangible net income available to common shareholders	$	1,112		$	759		$	757		$	866		$	774

Average common shareholders' equity	$	60,224		$	38,031		$	29,040		$	28,188		$	27,432
Less: Average intangible assets, net of deferred taxes	26,429			14,760			10,298			10,326			10,343
Average tangible common shareholders' equity	$	33,795		$	23,271		$	18,742		$	17,862		$	17,089

Return on average common shareholders' equity	6.58		%	7.33		%	10.04		%	11.98		%	11.08		%
Return on average tangible common shareholders' equity	13.23			12.91			16.03			19.45			18.36


	Quarter Ended
	March 31		Dec. 31		Sept. 30		June 30		March 31
(Dollars in millions, except per share data)	2020		2019		2019		2019		2019
Diluted EPS (1)
Net income available to common shareholders - GAAP	$	986	$	702	$	735	$	842	$	749
Merger-related and restructuring charges	82		176		26		19		64
Securities gains (losses)	2		90		—		—		—

Incremental operating expenses related to the merger	57		79		40		7		1



Corporate advance write off	—		1		—		—		—







Gain (loss) on loan portfolio sale	—		17		(3)		—		—







Redemption of preferred shares	—		—		46		—		—


Allowance release related to loan portfolio sale	—		(19)		(12)		—		—





COVID-19 impact	54		—		—		—		—
Net income available to common shareholders - adjusted	$	1,181	$	1,046	$	832	$	868	$	814

Weighted average shares outstanding - diluted	1,357,545		934,718		775,791		774,603		774,071

Diluted EPS - GAAP	$	0.73	$	0.75	$	0.95	$	1.09	$	0.97
Diluted EPS - adjusted	0.87		1.12		1.07		1.12		1.05

(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.

18 Truist Financial Corporation

Truist Financial (TFC) 8-KTruist Reports First Quarter 2020 Results