Truist Financial (TFC) 8-K Truist reports first quarter 2022 results

Quarterly Performance Summary

Truist Financial Corporation

First Quarter 2022

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
Consolidated Ending Balance Sheets - Five Quarter Trend	5
Average Balance Sheets	6
Average Balance Sheets - Five Quarter Trend	7
Average Balances and Rates - Quarters	8
Credit Quality	10
Segment Financial Performance - Five Quarter Trend	14
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)	2022			2021			Change
Summary Income Statement
Interest income - taxable equivalent (1)	$	3,383		$	3,522		(3.9)	%
Interest expense	174			209			(16.7)
Net interest income - taxable equivalent	3,209			3,313			(3.1)
Less: Taxable-equivalent adjustment	26			28			(7.1)
Net interest income	3,183			3,285			(3.1)
Provision for credit losses	(95)			48			NM
Net interest income after provision for credit losses	3,278			3,237			1.3
Noninterest income	2,142			2,197			(2.5)
Noninterest expense	3,674			3,610			1.8
Income before income taxes	1,746			1,824			(4.3)
Provision for income taxes	330			351			(6.0)
Net income	1,416			1,473			(3.9)
Noncontrolling interests	1			(4)			(125.0)
Net income available to the bank holding company	1,415			1,477			(4.2)
Preferred stock dividends and other	88			143			(38.5)
Net income available to common shareholders	1,327			1,334			(0.5)
Per Common Share Data
Earnings per share-basic	$	1.00		$	0.99		1.0	%
Earnings per share-diluted	0.99			0.98			1.0
Earnings per share-adjusted diluted (2)	1.23			1.18			4.2
Cash dividends declared	0.48			0.45			6.7
Common shareholders’ equity	43.82			45.17			(3.0)
Tangible common shareholders’ equity (2)	21.87			25.53			(14.3)
End of period shares outstanding	1,331,414			1,344,845			(1.0)
Weighted average shares outstanding-basic	1,329,037			1,345,666			(1.2)
Weighted average shares outstanding-diluted	1,341,563			1,358,932			(1.3)
Performance Ratios
Return on average assets	1.07		%	1.17		%
Return on average risk-weighted assets (current period is preliminary)	1.46			1.58
Return on average common shareholders’ equity	9.0			8.7
Return on average tangible common shareholders’ equity (2)	18.6			16.4
Net interest margin - taxable equivalent	2.76			3.01
Fee income ratio	40.2			40.1
Efficiency ratio-GAAP	69.0			65.8
Efficiency ratio-adjusted (2)	58.3			56.9
Credit Quality
Nonperforming assets as a percentage of:
Assets, including LHFS	0.21		%	0.25		%
Loans and leases plus foreclosed property	0.38			0.42
Net charge-offs as a percentage of average loans and leases	0.25			0.33
Allowance for loan and lease losses as a percentage of LHFI	1.44			1.94
Ratio of allowance for loan and lease losses to nonperforming LHFI	3.99x			4.84x
Average Balances
Assets	$	535,981		$	508,833		5.3	%
Securities (3)	152,687			122,246			24.9
Loans and leases	292,484			299,541			(2.4)
Deposits	415,238			383,185			8.4
Common shareholders’ equity	60,117			62,252			(3.4)
Total shareholders’ equity	66,798			70,047			(4.6)
Period-End Balances
Assets	$	543,979		$	517,537		5.1	%
Securities (3)	146,415			123,807			18.3
Loans and leases	294,248			297,179			(1.0)
Deposits	428,328			395,562			8.3
Common shareholders’ equity	58,348			60,752			(4.0)
Total shareholders’ equity	65,044			67,876			(4.2)
Capital Ratios (current quarter is preliminary)
Common equity Tier 1	9.4		%	10.1		%
Tier 1	11.0			12.0
Total	13.0			14.3
Leverage	8.6			9.4
Supplementary leverage	7.3			8.3
Applicable ratios are annualized.
NM - not meaningful
(1) Interest income includes certain fees, deferred costs, fair value mark accretion, and dividends.
(2) Represents a non-GAAP measure. See the calculations and management’s reasons for using these measures in the Non-GAAP Reconciliations and Preliminary Capital Information - Five Quarter Trend sections of this supplement.
(3) Includes AFS and HTM securities. Average balances reflect both AFS and HTM securities at amortized cost. Period-end balances reflect AFS securities at fair value and HTM securities at amortized cost.

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)	2022			2021			2021			2021			2021
Summary Income Statement
Interest income - taxable equivalent (1)	$	3,383		$	3,435		$	3,454		$	3,471		$	3,522
Interest expense	174			168			193			198			209
Net interest income - taxable equivalent	3,209			3,267			3,261			3,273			3,313
Less: Taxable-equivalent adjustment	26			24			28			28			28
Net interest income	3,183			3,243			3,233			3,245			3,285
Provision for credit losses	(95)			(103)			(324)			(434)			48
Net interest income after provision for credit losses	3,278			3,346			3,557			3,679			3,237
Noninterest income	2,142			2,323			2,365			2,405			2,197
Noninterest expense	3,674			3,700			3,795			4,011			3,610
Income before income taxes	1,746			1,969			2,127			2,073			1,824
Provision for income taxes	330			367			423			415			351
Net income	1,416			1,602			1,704			1,658			1,473
Noncontrolling interests	1			—			—			1			(4)
Net income available to the bank holding company	1,415			1,602			1,704			1,657			1,477
Preferred stock dividends and other	88			78			88			98			143
Net income available to common shareholders	1,327			1,524			1,616			1,559			1,334
Per Common Share Data
Earnings per share-basic	$	1.00		$	1.15		$	1.21		$	1.16		$	0.99
Earnings per share-diluted	0.99			1.13			1.20			1.16			0.98
Earnings per share-adjusted diluted (2)	1.23			1.38			1.42			1.55			1.18
Cash dividends declared	0.48			0.48			0.48			0.45			0.45
Common shareholders’ equity	43.82			47.14			46.62			46.20			45.17
Tangible common shareholders’ equity (2)	21.87			25.47			26.34			26.50			25.53
End of period shares outstanding	1,331,414			1,327,818			1,334,892			1,334,770			1,344,845
Weighted average shares outstanding-basic	1,329,037			1,329,979			1,334,825			1,338,302			1,345,666
Weighted average shares outstanding-diluted	1,341,563			1,343,029			1,346,854			1,349,492			1,358,932
Performance Ratios
Return on average assets	1.07		%	1.19		%	1.28		%	1.28		%	1.17		%
Return on average risk-weighted assets (current quarter is preliminary)	1.46			1.64			1.77			1.76			1.58
Return on average common shareholders’ equity	9.0			9.8			10.2			10.1			8.7
Return on average tangible common shareholders’ equity (2)	18.6			18.9			19.3			18.9			16.4
Net interest margin - taxable equivalent	2.76			2.76			2.81			2.88			3.01
Fee income ratio	40.2			41.7			42.2			42.6			40.1
Efficiency ratio-GAAP	69.0			66.5			67.8			71.0			65.8
Efficiency ratio-adjusted (2)	58.3			56.0			57.9			56.1			56.9
Credit Quality
Nonperforming assets as a percentage of:
Assets, including LHFS	0.21		%	0.21		%	0.23		%	0.23		%	0.25		%
Loans and leases plus foreclosed property	0.38			0.39			0.40			0.39			0.42
Net charge-offs as a percentage of average loans and leases	0.25			0.25			0.19			0.20			0.33
Allowance for loan and lease losses as a percentage of LHFI	1.44			1.53			1.65			1.79			1.94
Ratio of allowance for loan and lease losses to nonperforming LHFI	3.99x			4.07x			4.35x			4.83x			4.84x
Average Balances
Assets	$	535,981		$	534,911		$	526,685		$	518,774		$	508,833
Securities (3)	152,687			153,405			146,272			135,647			122,246
Loans and leases	292,484			291,074			290,338			292,965			299,541
Deposits	415,238			410,966			402,728			396,255			383,185
Common shareholders’ equity	60,117			61,807			62,680			61,709			62,252
Total shareholders’ equity	66,798			68,480			69,353			68,665			70,047
Period-End Balances
Assets	$	543,979		$	541,241		$	529,884		$	521,964		$	517,537
Securities (3)	146,415			154,617			151,038			139,879			123,807
Loans and leases	294,248			294,325			290,655			289,494			297,179
Deposits	428,328			416,488			405,857			398,279			395,562
Common shareholders’ equity	58,348			62,598			62,227			61,663			60,752
Total shareholders’ equity	65,044			69,271			68,900			68,336			67,876
Capital Ratios (current quarter is preliminary)
Common equity Tier 1	9.4		%	9.6		%	10.1		%	10.2		%	10.1		%
Tier 1	11.0			11.3			11.9			12.0			12.0
Total	13.0			13.2			13.9			14.2			14.3
Leverage	8.6			8.7			9.0			9.1			9.4
Supplementary leverage	7.3			7.4			7.8			7.9			8.3
Applicable ratios are annualized.
(1) Interest income includes certain fees, deferred costs, fair value mark accretion, and dividends.
(2) Represents a non-GAAP measure. See the calculations and management’s reasons for using these measures in the Non-GAAP Reconciliations and Preliminary Capital Information - Five Quarter Trend sections of this supplement.
(3) Includes AFS and HTM securities. Average balances reflect both AFS and HTM securities at amortized cost. Period-end balances reflect AFS securities at fair value and HTM securities at amortized cost.

2 Truist Financial Corporation

Consolidated Statements of Income
	Quarter Ended
	March 31				Change
(Dollars in millions, except per share data, shares in thousands)	2022		2021		$		%
Interest Income
Interest and fees on loans and leases	$	2,644	$	3,002	$	(358)	(11.9)	%
Interest on securities	640		443		197		44.5
Interest on other earning assets	73		49		24		49.0
Total interest income	3,357		3,494		(137)		(3.9)
Interest Expense
Interest on deposits	32		47		(15)		(31.9)
Interest on long-term debt	132		148		(16)		(10.8)
Interest on other borrowings	10		14		(4)		(28.6)
Total interest expense	174		209		(35)		(16.7)
Net Interest Income	3,183		3,285		(102)		(3.1)
Provision for credit losses	(95)		48		(143)		NM
Net Interest Income After Provision for Credit Losses	3,278		3,237		41		1.3
Noninterest Income
Insurance income	727		626		101		16.1
Investment banking and trading income	261		346		(85)		(24.6)
Wealth management income	343		341		2		0.6
Service charges on deposits	252		258		(6)		(2.3)
Card and payment related fees	212		200		12		6.0
Residential mortgage income	89		100		(11)		(11.0)
Lending related fees	85		100		(15)		(15.0)
Operating lease income	58		68		(10)		(14.7)
Commercial mortgage income	32		33		(1)		(3.0)
Income from bank-owned life insurance	51		50		1		2.0
Securities gains (losses)	(69)		—		(69)		NM
Other income	101		75		26		34.7
Total noninterest income	2,142		2,197		(55)		(2.5)
Noninterest Expense
Personnel expense	2,051		2,142		(91)		(4.2)
Professional fees and outside processing	363		350		13		3.7
Software expense	232		210		22		10.5
Net occupancy expense	208		209		(1)		(0.5)
Amortization of intangibles	137		144		(7)		(4.9)
Equipment expense	118		113		5		4.4
Marketing and customer development	84		66		18		27.3
Operating lease depreciation	48		50		(2)		(4.0)
Loan-related expense	44		54		(10)		(18.5)
Regulatory costs	35		25		10		40.0
Merger-related and restructuring charges	216		141		75		53.2
Loss (gain) on early extinguishment of debt	—		(3)		3		(100.0)
Other expense	138		109		29		26.6
Total noninterest expense	3,674		3,610		64		1.8
Earnings
Income before income taxes	1,746		1,824		(78)		(4.3)
Provision for income taxes	330		351		(21)		(6.0)
Net income	1,416		1,473		(57)		(3.9)
Noncontrolling interests	1		(4)		5		(125.0)
Net income available to the bank holding company	1,415		1,477		(62)		(4.2)
Preferred stock dividends and other	88		143		(55)		(38.5)
Net income available to common shareholders	$	1,327	$	1,334	$	(7)	(0.5)	%
Earnings Per Common Share
Basic	$	1.00	$	0.99	$	0.01	1.0	%
Diluted	0.99		0.98		0.01		1.0
Weighted Average Shares Outstanding
Basic	1,329,037		1,345,666		(16,629)		(1.2)
Diluted	1,341,563		1,358,932		(17,369)		(1.3)
NM - not meaningful

Truist Financial Corporation 3

20

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)	2022		2021		2021		2021		2021
Interest Income
Interest and fees on loans and leases	$	2,644	$	2,753	$	2,825	$	2,901	$	3,002
Interest on securities	640		602		548		497		443
Interest on other earning assets	73		56		53		45		49
Total interest income	3,357		3,411		3,426		3,443		3,494
Interest Expense
Interest on deposits	32		32		33		36		47
Interest on long-term debt	132		127		151		147		148
Interest on other borrowings	10		9		9		15		14
Total interest expense	174		168		193		198		209
Net Interest Income	3,183		3,243		3,233		3,245		3,285
Provision for credit losses	(95)		(103)		(324)		(434)		48
Net Interest Income After Provision for Credit Losses	3,278		3,346		3,557		3,679		3,237
Noninterest Income
Insurance income	727		666		645		690		626
Investment banking and trading income	261		377		316		402		346
Wealth management income	343		350		356		345		341
Service charges on deposits	252		273		276		253		258
Card and payment related fees	212		224		225		225		200
Residential mortgage income	89		159		179		117		100
Lending related fees	85		81		74		94		100
Operating lease income	58		71		57		66		68
Commercial mortgage income	32		45		54		47		33
Income from bank-owned life insurance	51		44		43		46		50
Securities gains (losses)	(69)		—		—		—		—
Other income	101		33		140		120		75
Total noninterest income	2,142		2,323		2,365		2,405		2,197
Noninterest Expense
Personnel expense	2,051		2,096		2,187		2,207		2,142
Professional fees and outside processing	363		379		372		341		350
Software expense	232		238		251		246		210
Net occupancy expense	208		186		187		182		209
Amortization of intangibles	137		143		145		142		144
Equipment expense	118		124		154		122		113
Marketing and customer development	84		68		94		66		66
Operating lease depreciation	48		46		47		47		50
Loan-related expense	44		51		52		55		54
Regulatory costs	35		38		43		31		25
Merger-related and restructuring charges	216		212		172		297		141
Loss (gain) on early extinguishment of debt	—		(1)		—		—		(3)
Other expense	138		120		91		275		109
Total noninterest expense	3,674		3,700		3,795		4,011		3,610
Earnings
Income before income taxes	1,746		1,969		2,127		2,073		1,824
Provision for income taxes	330		367		423		415		351
Net income	1,416		1,602		1,704		1,658		1,473
Noncontrolling interests	1		—		—		1		(4)
Net income available to the bank holding company	1,415		1,602		1,704		1,657		1,477
Preferred stock dividends and other	88		78		88		98		143
Net income available to common shareholders	$	1,327	$	1,524	$	1,616	$	1,559	$	1,334
Earnings Per Common Share
Basic	$	1.00	$	1.15	$	1.21	$	1.16	$	0.99
Diluted	0.99		1.13		1.20		1.16		0.98
Weighted Average Shares Outstanding
Basic	1,329,037		1,329,979		1,334,825		1,338,302		1,345,666
Diluted	1,341,563		1,343,029		1,346,854		1,349,492		1,358,932

4 Truist Financial Corporation

Consolidated Ending Balance Sheets - Five Quarter Trend
	March 31		Dec. 31		Sept. 30		June 30		March 31
(Dollars in millions)	2022		2021		2021		2021		2021
Assets
Cash and due from banks	$	5,516	$	5,085	$	4,656	$	5,077	$	5,097
Interest-bearing deposits with banks	23,606		15,210		15,171		21,480		27,035
Securities borrowed or purchased under resale agreements	2,322		4,028		1,919		1,242		1,349
Trading assets at fair value	5,920		4,423		6,972		5,945		5,094
Securities available for sale at fair value	84,753		153,123		151,038		139,879		123,807
Securities held to maturity at amortized cost	61,662		1,494		—		—		—
Loans and leases:
Commercial:
Commercial and industrial	141,060		138,762		133,791		135,881		140,315
CRE	22,774		23,951		24,309		25,399		25,899
Commercial construction	5,220		4,971		5,689		6,160		6,559
Consumer:
Residential mortgage	48,171		47,852		46,691		44,036		44,298
Residential home equity and direct	24,853		25,066		25,222		25,334		25,333
Indirect auto	25,756		26,441		26,923		26,696		26,438
Indirect other	11,043		10,883		11,155		11,039		10,631
Student	6,514		6,780		7,059		7,341		7,478
Credit card	4,690		4,807		4,683		4,599		4,560
Total loans and leases held for investment	290,081		289,513		285,522		286,485		291,511
Loans held for sale	4,167		4,812		5,133		3,009		5,668
Total loans and leases	294,248		294,325		290,655		289,494		297,179
Allowance for loan and lease losses	(4,170)		(4,435)		(4,702)		(5,121)		(5,662)
Premises and equipment	3,662		3,700		3,719		3,699		3,787
Goodwill	26,284		26,098		24,891		24,374		24,356
Core deposit and other intangible assets	3,693		3,408		2,930		2,665		2,825
Loan servicing rights at fair value	3,013		2,633		2,584		2,231		2,365
Other assets	33,470		32,149		30,051		30,999		30,305
Total assets	$	543,979	$	541,241	$	529,884	$	521,964	$	517,537
Liabilities
Deposits:
Noninterest-bearing deposits	$	150,446	$	145,892	$	143,595	$	138,623	$	136,555
Interest checking	119,572		115,754		108,954		107,993		107,082
Money market and savings	143,834		138,956		136,633		134,118		132,733
Time deposits	14,476		15,886		16,675		17,545		19,192
Total deposits	428,328		416,488		405,857		398,279		395,562
Short-term borrowings	5,147		5,292		5,226		5,652		5,889
Long-term debt	33,773		35,913		37,837		37,969		37,753
Other liabilities	11,687		14,277		12,064		11,728		10,457
Total liabilities	478,935		471,970		460,984		453,628		449,661
Shareholders’ Equity:
Preferred stock	6,673		6,673		6,673		6,673		7,124
Common stock	6,657		6,639		6,674		6,674		6,724
Additional paid-in capital	34,539		34,565		34,977		34,898		35,360
Retained earnings	23,687		22,998		22,114		21,139		20,184
Accumulated other comprehensive loss	(6,535)		(1,604)		(1,538)		(1,048)		(1,516)
Noncontrolling interests	23		—		—		—		—
Total shareholders’ equity	65,044		69,271		68,900		68,336		67,876
Total liabilities and shareholders’ equity	$	543,979	$	541,241	$	529,884	$	521,964	$	517,537

Truist Financial Corporation 5

Average Balance Sheets
	Quarter Ended
	March 31				Change
(Dollars in millions)	2022		2021		$		%
Assets
Securities at amortized cost (1):
U.S. Treasury	$	9,890	$	1,759	$	8,131	NM
U.S. government-sponsored entities (GSE)	1,120		1,839		(719)		(39.1)	%
Mortgage-backed securities issued by GSE	137,052		118,171		18,881		16.0
States and political subdivisions	374		444		(70)		(15.8)
Non-agency mortgage-backed	4,224		—		4,224		NM
Other	27		33		(6)		(18.2)
Total securities	152,687		122,246		30,441		24.9
Loans and leases:
Commercial:
Commercial and industrial	138,872		141,026		(2,154)		(1.5)
CRE	23,555		26,211		(2,656)		(10.1)
Commercial construction	5,046		6,557		(1,511)		(23.0)
Consumer:
Residential mortgage	47,976		45,823		2,153		4.7
Residential home equity and direct	24,883		25,658		(775)		(3.0)
Indirect auto	26,088		26,363		(275)		(1.0)
Indirect other	10,860		10,848		12		0.1
Student	6,648		7,519		(871)		(11.6)
Credit card	4,682		4,645		37		0.8
Total loans and leases held for investment	288,610		294,650		(6,040)		(2.0)
Loans held for sale	3,874		4,891		(1,017)		(20.8)
Total loans and leases	292,484		299,541		(7,057)		(2.4)
Interest earning trading assets	5,837		4,742		1,095		23.1
Other earning assets	18,932		17,417		1,515		8.7
Total earning assets	469,940		443,946		25,994		5.9
Nonearning assets	66,041		64,887		1,154		1.8
Total assets	$	535,981	$	508,833	$	27,148	5.3	%
Liabilities and Shareholders’ Equity
Deposits:
Noninterest-bearing deposits	$	145,933	$	128,579	$	17,354	13.5	%
Interest checking	112,159		104,744		7,415		7.1
Money market and savings	141,500		129,303		12,197		9.4
Time deposits	15,646		20,559		(4,913)		(23.9)
Total deposits	415,238		383,185		32,053		8.4
Short-term borrowings	6,944		6,731		213		3.2
Long-term debt	35,337		37,820		(2,483)		(6.6)
Other liabilities	11,664		11,050		614		5.6
Total liabilities	469,183		438,786		30,397		6.9
Shareholders’ equity	66,798		70,047		(3,249)		(4.6)
Total liabilities and shareholders’ equity	$	535,981	$	508,833	$	27,148	5.3	%
Average balances exclude basis adjustments for fair value hedges.
(1) Includes AFS and HTM securities.
NM - not meaningful

6 Truist Financial Corporation

Average Balance Sheets - Five Quarter Trend
	Quarter Ended
	March 31		Dec. 31		Sept. 30		June 30		March 31
(Dollars in millions)	2022		2021		2021		2021		2021
Assets
Securities at amortized cost (1):
U.S. Treasury	$	9,890	$	9,891	$	9,699	$	9,070	$	1,759
U.S. government-sponsored entities (GSE)	1,120		1,686		1,830		1,840		1,839
Mortgage-backed securities issued by GSE	137,052		137,651		132,890		124,251		118,171
States and political subdivisions	374		410		425		437		444
Non-agency mortgage-backed	4,224		3,738		1,398		17		—
Other	27		29		30		32		33
Total securities	152,687		153,405		146,272		135,647		122,246
Loans and leases:
Commercial:
Commercial and industrial	138,872		134,804		134,942		138,539		141,026
CRE	23,555		24,396		24,849		25,645		26,211
Commercial construction	5,046		5,341		5,969		6,359		6,557
Consumer:
Residential mortgage	47,976		47,185		45,369		43,605		45,823
Residential home equity and direct	24,883		25,146		25,242		25,238		25,658
Indirect auto	26,088		26,841		26,830		26,444		26,363
Indirect other	10,860		10,978		11,112		10,797		10,848
Student	6,648		6,884		7,214		7,396		7,519
Credit card	4,682		4,769		4,632		4,552		4,645
Total loans and leases held for investment	288,610		286,344		286,159		288,575		294,650
Loans held for sale	3,874		4,730		4,179		4,390		4,891
Total loans and leases	292,484		291,074		290,338		292,965		299,541
Interest earning trading assets	5,837		6,772		5,809		5,061		4,742
Other earning assets	18,932		19,634		19,331		21,592		17,417
Total earning assets	469,940		470,885		461,750		455,265		443,946
Nonearning assets	66,041		64,026		64,935		63,509		64,887
Total assets	$	535,981	$	534,911	$	526,685	$	518,774	$	508,833
Liabilities and Shareholders’ Equity
Deposits:
Noninterest-bearing deposits	$	145,933	$	146,492	$	141,738	$	137,892	$	128,579
Interest checking	112,159		110,506		107,802		106,121		104,744
Money market and savings	141,500		137,676		136,094		134,029		129,303
Time deposits	15,646		16,292		17,094		18,213		20,559
Total deposits	415,238		410,966		402,728		396,255		383,185
Short-term borrowings	6,944		6,433		5,360		6,168		6,731
Long-term debt	35,337		37,623		37,329		36,873		37,820
Other liabilities	11,664		11,409		11,915		10,813		11,050
Total liabilities	469,183		466,431		457,332		450,109		438,786
Shareholders’ equity	66,798		68,480		69,353		68,665		70,047
Total liabilities and shareholders’ equity	$	535,981	$	534,911	$	526,685	$	518,774	$	508,833
Average balances exclude basis adjustments for fair value hedges.
(1) Includes AFS and HTM securities.

Truist Financial Corporation 7

Average Balances and Rates - Quarters
	Quarter Ended
	March 31, 2022						December 31, 2021
	(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	$	9,890	$	18	0.72	%	$	9,891	$	18	0.72	%
U.S. government-sponsored entities (GSE)	1,120		6		2.13		1,686		9		2.20
Mortgage-backed securities issued by GSE	137,052		590		1.72		137,651		552		1.60
States and political subdivisions	374		3		3.72		410		3		3.60
Non-agency mortgage-backed	4,224		24		2.25		3,738		20		2.23
Other	27		—		2.04		29		1		1.90
Total securities	152,687		641		1.68		153,405		603		1.57
Loans and leases:
Commercial:
Commercial and industrial	138,872		987		2.88		134,804		986		2.90
CRE	23,555		168		2.84		24,396		175		2.81
Commercial construction	5,046		35		3.05		5,341		38		2.96
Consumer:
Residential mortgage	47,976		428		3.57		47,185		453		3.84
Residential home equity and direct	24,883		330		5.38		25,146		352		5.55
Indirect auto	26,088		357		5.56		26,841		389		5.75
Indirect other	10,860		169		6.32		10,978		176		6.42
Student	6,648		63		3.86		6,884		70		4.07
Credit card	4,682		104		8.97		4,769		105		8.69
Total loans and leases held for investment	288,610		2,641		3.70		286,344		2,744		3.81
Loans held for sale	3,874		28		2.87		4,730		32		2.66
Total loans and leases	292,484		2,669		3.69		291,074		2,776		3.79
Interest earning trading assets	5,837		43		3.04		6,772		46		2.72
Other earning assets	18,932		30		0.63		19,634		10		0.20
Total earning assets	469,940		3,383		2.90		470,885		3,435		2.90
Nonearning assets	66,041						64,026
Total assets	$	535,981					$	534,911
Liabilities and Shareholders’ Equity
Interest-bearing deposits:
Interest checking	$	112,159	14		0.05		$	110,506	15		0.05
Money market and savings	141,500		11		0.03		137,676		8		0.03
Time deposits	15,646		7		0.18		16,292		9		0.21
Total interest-bearing deposits (4)	269,305		32		0.05		264,474		32		0.05
Short-term borrowings	6,944		10		0.60		6,433		9		0.55
Long-term debt	35,337		132		1.50		37,623		127		1.35
Total interest-bearing liabilities	311,586		174		0.22		308,530		168		0.22
Noninterest-bearing deposits (4)	145,933						146,492
Other liabilities	11,664						11,409
Shareholders’ equity	66,798						68,480
Total liabilities and shareholders’ equity	$	535,981					$	534,911
Average interest-rate spread					2.68						2.68
Net interest income/ net interest margin - taxable equivalent			$	3,209	2.76	%			$	3,267	2.76	%
Taxable-equivalent adjustment			$	26					$	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. Interest income includes certain fees, deferred costs, and dividends.
(3) Includes AFS and HTM securities.
(4) Total deposit costs were 0.03% for the three months ended March 31, 2022 and December 31, 2021.

8 Truist Financial Corporation

Average Balances and Rates - Quarters
	Quarter Ended
	September 30, 2021						June 30, 2021						March 31, 2021
	(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	$	9,699	$	18	0.72	%	$	9,070	$	16	0.73	%	$	1,759	$	4	0.89	%
U.S. government-sponsored entities (GSE)	1,830		10		2.31		1,840		11		2.33		1,839		11		2.33
Mortgage-backed securities issued by GSE	132,890		509		1.53		124,251		466		1.50		118,171		426		1.44
States and political subdivisions	425		4		3.52		437		4		3.55		444		4		3.52
Non-agency mortgage-backed	1,398		8		2.20		17		—		2.46		—		—		—
Other	30		—		1.90		32		—		1.88		33		—		1.92
Total securities	146,272		549		1.50		135,647		497		1.47		122,246		445		1.45
Loans and leases:
Commercial:
Commercial and industrial	134,942		1,023		3.01		138,539		1,072		3.10		141,026		1,093		3.14
CRE	24,849		181		2.86		25,645		183		2.84		26,211		189		2.90
Commercial construction	5,969		42		2.96		6,359		45		2.95		6,557		48		3.04
Consumer:
Residential mortgage	45,369		450		3.96		43,605		474		4.35		45,823		507		4.42
Residential home equity and direct	25,242		360		5.67		25,238		361		5.74		25,658		368		5.81
Indirect auto	26,830		405		5.99		26,444		409		6.20		26,363		426		6.56
Indirect other	11,112		183		6.54		10,797		185		6.86		10,848		187		6.98
Student	7,214		74		4.02		7,396		72		3.90		7,519		73		3.96
Credit card	4,632		105		9.01		4,552		99		8.73		4,645		106		9.24
Total loans and leases held for investment	286,159		2,823		3.92		288,575		2,900		4.03		294,650		2,997		4.11
Loans held for sale	4,179		28		2.69		4,390		28		2.57		4,891		32		2.59
Total loans and leases	290,338		2,851		3.90		292,965		2,928		4.01		299,541		3,029		4.09
Interest earning trading assets	5,809		41		2.81		5,061		37		2.82		4,742		32		2.79
Other earning assets	19,331		13		0.25		21,592		9		0.19		17,417		16		0.37
Total earning assets	461,750		3,454		2.98		455,265		3,471		3.06		443,946		3,522		3.20
Nonearning assets	64,935						63,509						64,887
Total assets	$	526,685					$	518,774					$	508,833
Liabilities and Shareholders’ Equity
Interest-bearing deposits:
Interest checking	$	107,802	14		0.05		$	106,121	15		0.06		$	104,744	15		0.06
Money market and savings	136,094		9		0.03		134,029		8		0.03		129,303		10		0.03
Time deposits	17,094		10		0.23		18,213		13		0.28		20,559		22		0.44
Total interest-bearing deposits (4)	260,990		33		0.05		258,363		36		0.06		254,606		47		0.07
Short-term borrowings	5,360		9		0.68		6,168		15		0.98		6,731		14		0.82
Long-term debt	37,329		151		1.61		36,873		147		1.60		37,820		148		1.57
Total interest-bearing liabilities	303,679		193		0.25		301,404		198		0.26		299,157		209		0.28
Noninterest-bearing deposits (4)	141,738						137,892						128,579
Other liabilities	11,915						10,813						11,050
Shareholders’ equity	69,353						68,665						70,047
Total liabilities and shareholders’ equity	$	526,685					$	518,774					$	508,833
Average interest-rate spread					2.73						2.80						2.92
Net interest income/ net interest margin - taxable equivalent			$	3,261	2.81	%			$	3,273	2.88	%			$	3,313	3.01	%
Taxable-equivalent adjustment			$	28					$	28					$	28
Applicable ratios are annualized.
(1) Excludes basis adjustments for fair value hedges.
(2) Amounts are on a taxable-equivalent basis utilizing the federal income tax rate of 21% for the periods presented. Interest income includes certain fees, deferred costs, and dividends.
(3) Includes AFS and HTM securities.
(4) Total deposit costs were 0.03%, 0.04%, and 0.05% for the three months ended September 30, 2021, June 30, 2021, and March 31, 2021, respectively.

Truist Financial Corporation 9

Credit Quality
	March 31		Dec. 31		Sept. 30		June 30		March 31
(Dollars in millions)	2022		2021		2021		2021		2021
Nonperforming Assets
Nonaccrual loans and leases:
Commercial:
Commercial and industrial	$	330	$	394	$	423	$	402	$	474
CRE	27		29		20		25		58
Commercial construction	—		7		7		12		13
Consumer:
Residential mortgage	315		296		306		302		290
Residential home equity and direct	141		141		146		165		172
Indirect auto	227		218		172		148		158
Indirect other	4		5		6		6		6
Total nonaccrual loans and leases held for investment	1,044		1,090		1,080		1,060		1,171
Loans held for sale	39		22		76		78		72
Total nonaccrual loans and leases	1,083		1,112		1,156		1,138		1,243
Foreclosed real estate	3		8		9		13		18
Other foreclosed property	49		43		39		41		38
Total nonperforming assets	$	1,135	$	1,163	$	1,204	$	1,192	$	1,299
Troubled Debt Restructurings (TDRs)
Performing TDRs:
Commercial:
Commercial and industrial	$	104	$	147	$	200	$	202	$	201
CRE	5		5		8		24		47
Commercial construction	1		—		—		—		—
Consumer:
Residential mortgage - government guaranteed	622		480		507		520		535
Residential mortgage - nonguaranteed	244		212		205		207		198
Residential home equity and direct	91		98		105		107		109
Indirect auto	392		389		390		389		399
Indirect other	6		7		7		7		7
Student - nonguaranteed	25		25		23		13		8
Credit card	25		27		30		32		35
Total performing TDRs	1,515		1,390		1,475		1,501		1,539
Nonperforming TDRs	189		152		159		190		207
Total TDRs	$	1,704	$	1,542	$	1,634	$	1,691	$	1,746
Loans 90 Days or More Past Due and Still Accruing
Commercial:
Commercial and industrial	$	22	$	13	$	18	$	14	$	14
Consumer:
Residential mortgage - government guaranteed	996		978		823		929		935
Residential mortgage - nonguaranteed	31		31		29		47		40
Residential home equity and direct	12		9		7		7		11
Indirect auto	1		1		2		2		2
Indirect other	2		3		2		1		1
Student - government guaranteed	818		864		965		1,043		1,033
Student - nonguaranteed	4		4		3		3		4
Credit card	28		27		23		22		32
Total loans 90 days past due and still accruing	$	1,914	$	1,930	$	1,872	$	2,068	$	2,072
Loans 30-89 Days Past Due
Commercial:
Commercial and industrial	$	280	$	130	$	135	$	146	$	152
CRE	13		20		4		7		9
Commercial construction	1		2		2		1		4
Consumer:
Residential mortgage - government guaranteed	216		256		264		307		330
Residential mortgage - nonguaranteed	326		258		231		236		247
Residential home equity and direct	142		107		81		73		82
Indirect auto	529		607		560		428		328
Indirect other	65		64		53		47		45
Student - government guaranteed	476		549		451		543		551
Student - nonguaranteed	6		6		5		5		5
Credit card	47		45		37		31		35
Total loans 30-89 days past due	$	2,101	$	2,044	$	1,823	$	1,824	$	1,788

10 Truist Financial Corporation

	As of/For the Quarter Ended
	March 31		Dec. 31		Sept. 30		June 30		March 31
(Dollars in millions)	2022		2021		2021		2021		2021
Allowance for Credit Losses
Beginning balance	$	4,695	$	4,978	$	5,436	$	6,011	$	6,199
Provision for credit losses	(95)		(103)		(324)		(434)		48
Charge-offs:
Commercial:
Commercial and industrial	(31)		(54)		(57)		(53)		(79)
CRE	(1)		(5)		(1)		—		(4)
Commercial construction	(1)		—		—		—		(2)
Consumer:
Residential mortgage	(2)		(1)		(7)		(4)		(11)
Residential home equity and direct	(58)		(51)		(51)		(57)		(55)
Indirect auto	(102)		(89)		(73)		(69)		(105)
Indirect other	(19)		(16)		(13)		(11)		(17)
Student	(6)		(12)		(6)		(3)		(3)
Credit card	(41)		(37)		(31)		(42)		(40)
Total charge-offs	(261)		(265)		(239)		(239)		(316)
Recoveries:
Commercial:
Commercial and industrial	17		23		42		23		19
CRE	1		—		1		4		1
Commercial construction	1		1		1		1		1
Consumer:
Residential mortgage	6		2		3		5		2
Residential home equity and direct	20		21		20		20		18
Indirect auto	23		21		22		27		22
Indirect other	6		6		5		7		6
Student	—		—		1		—		—
Credit card	9		9		9		10		9
Total recoveries	83		83		104		97		78
Net charge-offs	(178)		(182)		(135)		(142)		(238)
Other	1		2		1		1		2
Ending balance	$	4,423	$	4,695	$	4,978	$	5,436	$	6,011
Allowance for Credit Losses:
Allowance for loan and lease losses	$	4,170	$	4,435	$	4,702	$	5,121	$	5,662
Reserve for unfunded lending commitments (RUFC)	253		260		276		315		349
Allowance for credit losses	$	4,423	$	4,695	$	4,978	$	5,436	$	6,011

	As of/For the Quarter Ended
	March 31		Dec. 31		Sept. 30		June 30		March 31
	2022		2021		2021		2021		2021
Asset Quality Ratios
Loans 30-89 days past due and still accruing as a percentage of loans and leases	0.72	%	0.71	%	0.64	%	0.64	%	0.61	%
Loans 90 days or more past due and still accruing as a percentage of loans and leases	0.66		0.67		0.66		0.72		0.71
Nonperforming loans and leases as a percentage of loans and leases held for investment	0.36		0.38		0.38		0.37		0.40
Nonperforming loans and leases as a percentage of loans and leases (1)	0.37		0.38		0.40		0.39		0.42
Nonperforming assets as a percentage of:
Total assets (1)	0.21		0.21		0.23		0.23		0.25
Loans and leases plus foreclosed property	0.38		0.39		0.40		0.39		0.42
Net charge-offs as a percentage of average loans and leases	0.25		0.25		0.19		0.20		0.33
Allowance for loan and lease losses as a percentage of loans and leases	1.44		1.53		1.65		1.79		1.94
Ratio of allowance for loan and lease losses to:
Net charge-offs	5.78X		6.14X		8.79X		8.98X		5.87X
Nonperforming loans and leases	3.99X		4.07X		4.35X		4.83X		4.84X
Asset Quality Ratios (Excluding PPP and other Government Guaranteed)
Loans 90 days or more past due and still accruing as a percentage of loans and leases	0.04	%	0.03	%	0.03	%	0.04	%	0.04	%
Applicable ratios are annualized.
(1)Includes loans held for sale.

Truist Financial Corporation 11

	March 31, 2022
					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	$	102	98.1	%	$	2		1.9	%	$	—		—	%	$	104
CRE	5		100.0		—			—		—			—		5
Commercial construction	1		100.0		—			—		—			—		1
Consumer:
Residential mortgage - government guaranteed	290		46.6		58			9.3		274			44.1		622
Residential mortgage - nonguaranteed	210		86.1		25			10.2		9			3.7		244
Residential home equity and direct	85		93.4		6			6.6		—			—		91
Indirect auto	336		85.7		56			14.3		—			—		392
Indirect other	5		83.3		1			16.7		—			—		6
Student - nonguaranteed	22		88.0		2			8.0		1			4.0		25
Credit card	22		88.0		2			8.0		1			4.0		25
Total performing TDRs (1)	1,078		71.2		152			10.0		285			18.8		1,515
Nonperforming TDRs (2)	57		30.2		24			12.7		108			57.1		189
Total TDRs (1)(2)	$	1,135	66.6	%	$	176		10.3	%	$	393		23.1	%	$	1,704
(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
					2022			2021		2021			2021		2021
Net Charge-offs as a Percentage of Average Loans and Leases:
Commercial:
Commercial and industrial					0.04		%	0.09	%	0.04		%	0.09	%	0.17		%
CRE					0.01			0.07		—			(0.05)		0.04
Commercial construction					(0.02)			(0.10)		(0.06)			(0.06)		0.08
Consumer:
Residential mortgage					(0.03)			(0.02)		0.04			(0.01)		0.08
Residential home equity and direct					0.61			0.49		0.49			0.59		0.58
Indirect auto					1.23			1.01		0.75			0.63		1.28
Indirect other					0.48			0.39		0.26			0.17		0.39
Student					0.33			0.65		0.31			0.16		0.16
Credit card					2.77			2.31		1.90			2.75		2.74
Total loans and leases					0.25			0.25		0.19			0.20		0.33
Applicable ratios are annualized.

Credit Quality - Allowance with Fair Value Marks
	As of/For the Quarter Ended
	March 31			Dec. 31			Sept. 30			June 30			March 31
(Dollars in millions)	2022			2021			2021			2021			2021
ALLL	$	4,170		$	4,435		$	4,702		$	5,121		$	5,662
Unamortized fair value mark (1)	1,119			1,323			1,540			1,777			2,067
Allowance plus unamortized fair value mark	$	5,289		$	5,758		$	6,242		$	6,898		$	7,729
Loans and leases held for investment	$	290,081		$	289,513		$	285,522		$	286,485		$	291,511
Unamortized fair value mark (1)	1,119			1,323			1,540			1,777			2,067
Gross loans and leases	$	291,200		$	290,836		$	287,062		$	288,262		$	293,578
Allowance for loan and lease losses as a percentage of loans and leases - GAAP	1.44		%	1.53		%	1.65		%	1.79		%	1.94		%
Allowance for loan and lease losses and unamortized fair value mark as a percentage of gross loans and leases - Adjusted (1) (2)	1.82			1.98			2.17			2.39			2.63

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

(2)Allowance for loan and lease losses and unamortized fair value mark as a percentage of gross loans and leases is a non-GAAP measurement of credit reserves that is calculated by adjusting the ALLL and loans and leases held for investment by the unamortized fair value mark. Truist’s management uses these measures to assess loss absorption capacity.

12 Truist Financial Corporation

Rollforward of Intangible Assets and Selected Fair Value Marks (1)
	As of/For the Quarter Ended
	March 31		Dec. 31		Sept. 30		June 30		March 31
(Dollars in millions)	2022		2021		2021		2021		2021
Loans and Leases (2)
Beginning balance unamortized fair value mark	$	(1,323)	$	(1,540)	$	(1,777)	$	(2,067)	$	(2,395)
Accretion	191		217		233		285		316
Purchase accounting adjustments and other activity	13		—		4		5		12
Ending balance	$	(1,119)	$	(1,323)	$	(1,540)	$	(1,777)	$	(2,067)
Core deposit and other intangible assets
Beginning balance	$	3,408	$	2,930	$	2,665	$	2,825	$	2,984
Additions - acquisitions	430		647		418		—		14
Amortization of intangibles	(137)		(143)		(145)		(142)		(144)
Amortization in net occupancy expense	(8)		(3)		(4)		(3)		(3)
Purchase accounting adjustments and other activity	—		(23)		(4)		(15)		(26)
Ending balance	$	3,693	$	3,408	$	2,930	$	2,665	$	2,825
Deposits (3)
Beginning balance unamortized fair value mark	$	(7)	$	(9)	$	(12)	$	(15)	$	(19)
Amortization	2		2		3		3		4
Ending balance	$	(5)	$	(7)	$	(9)	$	(12)	$	(15)
Long-Term Debt (3)
Beginning balance unamortized fair value mark	$	(139)	$	(157)	$	(176)	$	(196)	$	(216)
Amortization	17		18		19		20		20
Ending balance	$	(122)	$	(139)	$	(157)	$	(176)	$	(196)

(1)Includes only selected information and does not represent all purchase accounting adjustments.

(2)Purchase accounting marks on loans and leases includes credit, interest and liquidity components, and are generally recognized using the level-yield or straight-line method over the remaining life of the individual loans or recognized in full in the event of prepayment.

(3)Purchase accounting marks on liabilities represents interest rate marks on time deposits and long-term debt and are recognized using the level-yield method over the term of the liability.

Truist Financial Corporation 13

Segment Financial Performance - Preliminary
	Quarter Ended
	March 31		Dec. 31		Sept. 30		June 30		March 31
(Dollars in millions)	2022		2021		2021		2021		2021
Consumer Banking and Wealth
Net interest income (expense)	$	1,529	$	1,630	$	1,666	$	1,687	$	1,753
Net intersegment interest income (expense)	649		595		485		385		231
Segment net interest income	2,178		2,225		2,151		2,072		1,984
Allocated provision for credit losses	74		59		(5)		(4)		100
Noninterest income	950		992		1,028		925		920
Noninterest expense	1,919		1,950		1,930		1,929		1,915
Income (loss) before income taxes	1,135		1,208		1,254		1,072		889
Provision (benefit) for income taxes	271		243		272		251		208
Segment net income (loss)	$	864	$	965	$	982	$	821	$	681
Corporate and Commercial Banking
Net interest income (expense)	$	1,093	$	1,105	$	1,125	$	1,182	$	1,208
Net intersegment interest income (expense)	156		190		157		113		72
Segment net interest income	1,249		1,295		1,282		1,295		1,280
Allocated provision for credit losses	(150)		(183)		(264)		(399)		(35)
Noninterest income	619		790		753		808		692
Noninterest expense	757		814		820		841		775
Income (loss) before income taxes	1,261		1,454		1,479		1,661		1,232
Provision (benefit) for income taxes	276		292		311		366		266
Segment net income (loss)	$	985	$	1,162	$	1,168	$	1,295	$	966
Insurance Holdings
Net interest income (expense)	$	24	$	23	$	27	$	25	$	24
Net intersegment interest income (expense)	—		—		1		—		—
Segment net interest income	24		23		28		25		24
Allocated provision for credit losses	—		(1)		1		(1)		1
Noninterest income	737		681		652		698		633
Noninterest expense	560		547		537		515		480
Income (loss) before income taxes	201		158		142		209		176
Provision (benefit) for income taxes	49		32		31		50		43
Segment net income (loss)	$	152	$	126	$	111	$	159	$	133
Other, Treasury & Corporate (1)
Net interest income (expense)	$	537	$	485	$	415	$	351	$	300
Net intersegment interest income (expense)	(805)		(785)		(643)		(498)		(303)
Segment net interest income	(268)		(300)		(228)		(147)		(3)
Allocated provision for credit losses	(19)		22		(56)		(30)		(18)
Noninterest income	(164)		(140)		(68)		(26)		(48)
Noninterest expense	438		389		508		726		440
Income (loss) before income taxes	(851)		(851)		(748)		(869)		(473)
Provision (benefit) for income taxes	(266)		(200)		(191)		(252)		(166)
Segment net income (loss)	$	(585)	$	(651)	$	(557)	$	(617)	$	(307)
Total Truist Financial Corporation
Net interest income (expense)	$	3,183	$	3,243	$	3,233	$	3,245	$	3,285
Net intersegment interest income (expense)	—		—		—		—		—
Segment net interest income	3,183		3,243		3,233		3,245		3,285
Allocated provision for credit losses	(95)		(103)		(324)		(434)		48
Noninterest income	2,142		2,323		2,365		2,405		2,197
Noninterest expense	3,674		3,700		3,795		4,011		3,610
Income (loss) before income taxes	1,746		1,969		2,127		2,073		1,824
Provision (benefit) for income taxes	330		367		423		415		351
Net income	$	1,416	$	1,602	$	1,704	$	1,658	$	1,473
(1) Includes financial data from subsidiaries below the quantitative and qualitative thresholds requiring disclosure.

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)	2022			2021			2021			2021			2021
Selected Capital Information	(preliminary)
Risk-based capital:
Common equity tier 1	$	37,224		$	37,524		$	38,859		$	38,690		$	38,267
Tier 1	43,895			44,194			45,529			45,360			45,388
Total	51,598			51,518			53,228			53,640			54,245
Risk-weighted assets	397,611			390,886			383,871			379,044			378,458
Average quarterly assets for leverage ratio	512,694			510,404			503,223			496,391			484,961
Average quarterly assets for supplementary leverage ratio	598,961			595,075			585,420			576,734			546,470
Risk-based capital ratios:
Common equity tier 1	9.4		%	9.6		%	10.1		%	10.2		%	10.1		%
Tier 1	11.0			11.3			11.9			12.0			12.0
Total	13.0			13.2			13.9			14.2			14.3
Leverage capital ratio	8.6			8.7			9.0			9.1			9.4
Supplementary leverage	7.3			7.4			7.8			7.9			8.3
Equity as a percentage of total assets	12.0			12.8			13.0			13.1			13.1
Common equity per common share	$	43.82		$	47.14		$	46.62		$	46.20		$	45.17
	March 31			Dec. 31			Sept. 30			June 30			March 31
(Dollars in millions, except per share data, shares in thousands)	2022			2021			2021			2021			2021
Calculations of Tangible Common Equity and Related Measures: (1)
Total shareholders’ equity	$	65,044		$	69,271		$	68,900		$	68,336		$	67,876
Less:
Preferred stock	6,673			6,673			6,673			6,673			7,124
Noncontrolling interests	23			—			—			—			—
Intangible assets, net of deferred taxes	29,229			28,772			27,066			26,296			26,413
Tangible common equity	$	29,119		$	33,826		$	35,161		$	35,367		$	34,339
Outstanding shares at end of period (in thousands)	1,331,414			1,327,818			1,334,892			1,334,770			1,344,845
Tangible Common Equity Per Common Share	$	21.87		$	25.47		$	26.34		$	26.50		$	25.53

(1)Tangible common equity and related measures are non-GAAP measures that exclude the impact of intangible assets, net of deferred taxes, and their related amortization. These measures are useful for evaluating the performance of a business consistently, whether acquired or developed internally. Truist’s management uses these measures to assess the quality of capital and returns relative to balance sheet risk. These measures are not necessarily comparable to similar measures that may be presented by other companies.

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)	2022			2021			2021			2021			2021
Residential Mortgage Income
Residential mortgage production revenue	$	52		$	115		$	139		$	122		$	140
Residential mortgage servicing income:
Residential mortgage servicing revenue	145			155			157			139			141
Realization of expected residential MSR cash flows	(109)			(143)			(146)			(175)			(208)
Income statement impact of mortgage servicing rights valuation:
MSRs fair value increase (decrease)	350			(25)			77			(188)			360
MSRs hedge gains (losses)	(349)			57			(48)			219			(333)
Net MSRs valuation	1			32			29			31			27
Total residential mortgage servicing income	$	37		$	44		$	40		$	(5)		$	(40)
Total residential mortgage income	$	89		$	159		$	179		$	117		$	100
Commercial Mortgage Income
Commercial mortgage production revenue	$	32		$	40		$	48		$	40		$	30
Commercial mortgage servicing income:
Commercial mortgage servicing revenue	17			18			17			17			17
Realization of expected commercial MSR cash flows	(17)			(12)			(11)			(11)			(15)
Income statement impact of mortgage servicing rights valuation:
MSRs fair value increase (decrease)	9			(1)			1			(4)			13
MSRs hedge gains (losses)	(9)			—			(1)			5			(12)
Net MSRs valuation	—			(1)			—			1			1
Total commercial mortgage servicing income	$	—		$	5		$	6		$	7		$	3
Commercial mortgage income	$	32		$	45		$	54		$	47		$	33
Other Mortgage Banking Information
Residential mortgage loan originations	$	11,408		$	14,458		$	15,852		$	14,301		$	13,075
Residential mortgage servicing portfolio (1):
Loans serviced for others	195,737			196,011			198,119			178,004			179,836
Bank-owned loans serviced	50,927			50,716			50,427			46,031			48,800
Total servicing portfolio	246,664			246,727			248,546			224,035			228,636
Weighted-average coupon rate on mortgage loans serviced for others	3.41		%	3.44		%	3.49		%	3.66		%	3.76		%
Weighted-average servicing fee on mortgage loans serviced for others	0.31			0.31			0.31			0.31			0.31
Additional Information
NQDCP income (expense):
Interest income	$	19		$	1		$	2		$	2		$	9
Other income	(44)			(7)			30			43			23
Personnel expense	25			6			(32)			(45)			(32)
Total NQDCP income (expense)	$	—		$	—		$	—		$	—		$	—
Fair value of derivatives, net	$	631		$	1,784		$	2,375		$	2,614		$	2,222
CVA/DVA income (expense) included in investment banking and trading income	24			12			16			(12)			48
Common stock prices:
High	68.95			65.42			60.74			62.89			61.26
Low	56.19			54.73			51.87			52.61			46.71
End of period	56.70			58.55			58.65			55.50			58.32
Banking offices	2,112			2,517			2,518			2,557			2,556
ATMs	3,214			3,670			3,684			3,779			3,807
FTEs (2)	51,169			51,348			52,675			52,248			53,207

(1)Amounts reported are unpaid principal balance.

(2)FTEs represents an average for the quarter.

16 Truist Financial Corporation

Selected Items (1)
	Favorable (Unfavorable)
(Dollars in millions)			After-Tax at
Description	Pre-Tax		Marginal Rate
Selected Items
First Quarter 2022
Incremental operating expenses related to the merger ($133 million professional fees and outside processing, $24 million personnel expense, $20 million net occupancy expense, and $25 million other)	$	(202)	$	(155)
Gain on redemption of noncontrolling equity interest related to the acquisition of certain merchant services relationships (other income)	74		57
Fourth Quarter 2021
Incremental operating expenses related to the merger ($144 million professional fees and outside processing, $59 million personnel expense, and $12 million other)	$	(215)	$	(165)
Third Quarter 2021
Incremental operating expenses related to the merger ($132 million professional fees and outside processing, $41 million personnel expense, and $18 million other)	$	(191)	$	(147)
Professional fee accrual (professional fees and outside processing)	(30)		(23)
Second Quarter 2021
Charitable contribution (other expense)	$	(200)	$	(153)
Incremental operating expenses related to the merger ($137 million professional fees and outside processing, $42 million personnel expense, and $11 million other)	(190)		(146)
First Quarter 2021
Incremental operating expenses related to the merger ($120 million professional fees and outside processing, $42 million personnel expense, and $13 million other)	$	(175)	$	(134)
Acceleration for cash flow hedge unwind (other expense)	(36)		(28)

(1)Includes selected items representing a part of line items within the consolidated statements of income. Excludes line items adjusted in their entirety, such as securities gains and losses, gains and losses on the early extinguishment of debt, and costs classified as merger-related and restructuring charges.

Non-GAAP Reconciliations
	Quarter Ended
	March 31			Dec. 31			Sept. 30			June 30			March 31
(Dollars in millions)	2022			2021			2021			2021			2021
Efficiency Ratio (1)
Efficiency Ratio Numerator - Noninterest Expense - GAAP	$	3,674		$	3,700		$	3,795		$	4,011		$	3,610
Merger-related and restructuring charges, net	(216)			(212)			(172)			(297)			(141)
Gain (loss) on early extinguishment of debt	—			1			—			—			3
Incremental operating expense related to the merger	(202)			(215)			(191)			(190)			(175)
Amortization of intangibles	(137)			(143)			(145)			(142)			(144)
Charitable contribution	—			—			—			(200)			—
Professional fee accrual	—			—			(30)			—			—
Acceleration for cash flow hedge unwind	—			—			—			—			(36)
Efficiency Ratio Numerator - Adjusted	$	3,119		$	3,131		$	3,257		$	3,182		$	3,117
Efficiency Ratio Denominator - Revenue (2) - GAAP	$	5,325		$	5,566		$	5,598		$	5,650		$	5,482
Taxable equivalent adjustment	26			24			28			28			28
Securities (gains) losses	69			—			—			—			—
Gain on redemption of noncontrolling equity interest	(74)			—			—			—			—
Gains on divestiture of certain businesses	—			—			—			—			(37)
Efficiency Ratio Denominator - Adjusted	$	5,346		$	5,590		$	5,626		$	5,678		$	5,473
Efficiency Ratio - GAAP	69.0		%	66.5		%	67.8		%	71.0		%	65.8		%
Efficiency Ratio - Adjusted	58.3			56.0			57.9			56.1			56.9

(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)	2022			2021			2021			2021			2021
Return on Average Tangible Common Shareholders’ Equity (1)
Net income available to common shareholders	$	1,327		$	1,524		$	1,616		$	1,559		$	1,334
Plus: Amortization of intangibles, net of tax	105			110			113			107			111
Tangible net income available to common shareholders	$	1,432		$	1,634		$	1,729		$	1,666		$	1,445
Average common shareholders’ equity	$	60,117		$	61,807		$	62,680		$	61,709		$	62,252
Less: Average intangible assets, net of deferred taxes	28,905			27,523			27,149			26,366			26,535
Average tangible common shareholders’ equity	$	31,212		$	34,284		$	35,531		$	35,343		$	35,717
Return on average common shareholders’ equity	9.0		%	9.8		%	10.2		%	10.1		%	8.7		%
Return on average tangible common shareholders’ equity	18.6			18.9			19.3			18.9			16.4

(1)Tangible common equity and related measures are non-GAAP measures that exclude the impact of intangible assets, net of deferred taxes, and their related amortization. These measures are useful for evaluating the performance of a business consistently, whether acquired or developed internally. Truist’s management uses these measures to assess the quality of capital and returns relative to balance sheet risk. These measures are not necessarily comparable to similar measures that may be presented by other companies.

	Quarter Ended
	March 31		Dec. 31		Sept. 30		June 30		March 31
(Dollars in millions, except per share data)	2022		2021		2021		2021		2021
Diluted EPS (1)
Net income available to common shareholders - GAAP	$	1,327	$	1,524	$	1,616	$	1,559	$	1,334
Merger-related and restructuring charges	166		163		132		228		108
Securities (gains) losses	53		—		—		—		—
Loss (gain) on early extinguishment of debt	—		—		—		(1)		(2)
Incremental operating expenses related to the merger	155		165		147		146		134
Charitable contribution	—		—		—		153		—
Professional fee accrual	—		—		23		—		—
Acceleration for cash flow hedge unwind	—		—		—		—		28
Gain on redemption of noncontrolling equity interest	(57)		—		—		—		—
Net income available to common shareholders - adjusted	$	1,644	$	1,852	$	1,918	$	2,085	$	1,602
Weighted average shares outstanding - diluted	1,341,563		1,343,029		1,346,854		1,349,492		1,358,932
Diluted EPS - GAAP	$	0.99	$	1.13	$	1.20	$	1.16	$	0.98
Diluted EPS - adjusted	1.23		1.38		1.42		1.55		1.18

(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