Truist Financial (TFC) 8-K Results of Operations and Financial Condition

Quarterly Performance Summary

Truist Financial Corporation

First Quarter 2023

Table of Contents
Quarterly Performance Summary
Truist Financial Corporation
	Page
Financial Highlights	1
Consolidated Statements of Income	2
Consolidated Ending Balance Sheets	3
Average Balances and Rates - Quarters	4
Credit Quality	5
Segment Financial Performance	8
Capital Information	9
Selected Mortgage Banking Information & Additional Information	10
Selected Items	11

Financial Highlights

	Quarter Ended
(Dollars in millions, except per share data, shares in thousands)	March 31			Dec. 31			Sept. 30			June 30			March 31
	2023			2022			2022			2022			2022
Summary Income Statement
Interest income - taxable equivalent(1)	$	5,836		$	5,288		$	4,407		$	3,701		$	3,383
Interest expense	1,917			1,257			624			266			174
Net interest income - taxable equivalent	3,919			4,031			3,783			3,435			3,209
Less: Taxable-equivalent adjustment	51			50			38			28			26
Net interest income	3,868			3,981			3,745			3,407			3,183
Provision for credit losses	502			467			234			171			(95)
Net interest income after provision for credit losses	3,366			3,514			3,511			3,236			3,278
Noninterest income	2,234			2,227			2,102			2,248			2,142
Noninterest expense	3,691			3,722			3,613			3,580			3,674
Income before income taxes	1,909			2,019			2,000			1,904			1,746
Provision for income taxes	394			337			363			372			330
Net income	1,515			1,682			1,637			1,532			1,416
Noncontrolling interests	2			1			4			1			1
Preferred stock dividends and other	103			71			97			77			88
Net income available to common shareholders	1,410			1,610			1,536			1,454			1,327
Additional Income Statement Information
Revenue - taxable equivalent	6,153			6,258			5,885			5,683			5,351
Pre-provision net revenue - unadjusted(2)	2,462			2,536			2,272			2,103			1,677
Pre-provision net revenue - adjusted(2)	2,661			2,869			2,565			2,446			2,227
Per Common Share Data
Earnings:
Earnings per share-basic	$	1.06		$	1.21		$	1.16		$	1.09		$	1.00
Earnings per share-diluted	1.05			1.20			1.15			1.09			0.99
Earnings per share-adjusted diluted(2)	NA			1.30			1.24			1.20			1.23
Cash dividends declared	0.52			0.52			0.52			0.48			0.48
Common shareholders’ equity	41.82			40.58			40.79			42.45			43.82
Tangible common shareholders’ equity(2)	19.45			18.04			18.36			20.51			21.87
End of period shares outstanding	1,331,918			1,326,829			1,326,766			1,326,393			1,331,414
Weighted average shares outstanding-basic	1,328,602			1,326,787			1,326,539			1,330,160			1,329,037
Weighted average shares outstanding-diluted	1,339,480			1,337,338			1,336,659			1,338,864			1,341,563
Performance Ratios
Return on average assets	1.10		%	1.21		%	1.19		%	1.14		%	1.07		%
Return on average common shareholders’ equity	10.3			11.7			10.7			10.3			9.0
Return on average tangible common shareholders’ equity(2)	24.1			27.6			23.5			22.7			18.6
Net interest margin - taxable equivalent	3.17			3.25			3.12			2.89			2.76
Fee income ratio	36.6			35.9			36.0			39.7			40.2
Efficiency ratio-GAAP	60.5			60.0			61.8			63.3			69.0
Efficiency ratio-adjusted(2)	56.8			54.2			56.4			57.0			58.3
Credit Quality
Nonperforming loans and leases as a percentage of loans and leases held for investment	0.36		%	0.36		%	0.35		%	0.36		%	0.36		%
Net charge-offs as a percentage of average loans and leases	0.37			0.34			0.27			0.22			0.25
Allowance for loan and lease losses as a percentage of LHFI	1.37			1.34			1.34			1.38			1.44
Ratio of allowance for loan and lease losses to nonperforming LHFI	3.8x			3.7x			3.8x			3.8x			4.0x
Average Balances
Assets	$	559,627		$	552,959		$	545,606		$	540,568		$	535,981
Securities(3)	140,551			142,433			145,396			148,681			152,687
Loans and leases	327,547			322,733			311,876			299,861			292,484
Deposits	408,458			413,276			420,096			423,750			415,238
Common shareholders’ equity	55,380			54,823			56,813			56,803			60,117
Total shareholders’ equity	62,077			61,519			63,510			63,500			66,798
Period-End Balances
Assets	$	574,354		$	555,255		$	548,438		$	545,123		$	543,979
Securities(3)	128,790			129,514			131,732			139,359			146,415
Loans and leases	329,833			327,435			316,639			307,300			294,248
Deposits	404,997			413,495			415,992			424,759			428,328
Common shareholders’ equity	55,699			53,841			54,115			56,302			58,348
Total shareholders’ equity	62,394			60,537			60,811			62,999			65,044
Capital and Liquidity Ratios	(preliminary)
Common equity Tier 1	9.1		%	9.0		%	9.1		%	9.2		%	9.4		%
Tier 1	10.6			10.5			10.7			10.8			11.0
Total	12.6			12.4			12.6			12.6			13.0
Leverage	8.5			8.5			8.5			8.6			8.6
Supplementary leverage	7.3			7.3			7.3			7.3			7.3
Liquidity coverage ratio	113			112			111			110			111

Applicable ratios are annualized.

(1)Interest income includes certain fees, deferred costs, fair value mark accretion, and dividends.

(2)Represents a non-GAAP measure. A reconciliation of each of these non-GAAP measures to the most directly comparable GAAP measure is included in the appendix to Truist’s First Quarter 2023 Earnings Presentation.

(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.

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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)	2023		2022		2022		2022		2022
Interest Income
Interest and fees on loans and leases	$	4,656	$	4,220	$	3,490	$	2,898	$	2,644
Interest on securities	752		739		709		675		640
Interest on other earning assets	377		279		170		100		73
Total interest income	5,785		5,238		4,369		3,673		3,357
Interest Expense
Interest on deposits	1,125		683		331		99		32
Interest on long-term debt	514		332		190		137		132
Interest on other borrowings	278		242		103		30		10
Total interest expense	1,917		1,257		624		266		174
Net Interest Income	3,868		3,981		3,745		3,407		3,183
Provision for credit losses	502		467		234		171		(95)
Net Interest Income After Provision for Credit Losses	3,366		3,514		3,511		3,236		3,278
Noninterest Income
Insurance income	813		766		725		825		727
Wealth management income	339		324		334		337		343
Investment banking and trading income	261		257		222		255		261
Service charges on deposits	249		257		263		254		252
Card and payment related fees	230		245		241		246		212
Mortgage banking income	142		117		122		100		121
Lending related fees	106		110		80		100		85
Operating lease income	67		68		66		66		58
Securities gains (losses)	—		—		(1)		(1)		(69)
Other income	27		83		50		66		152
Total noninterest income	2,234		2,227		2,102		2,248		2,142
Noninterest Expense
Personnel expense	2,181		2,198		2,116		2,102		2,051
Professional fees and outside processing	314		347		352		349		363
Software expense	214		241		225		234		232
Net occupancy expense	183		179		176		181		208
Amortization of intangibles	136		163		140		143		137
Equipment expense	110		124		122		114		118
Marketing and customer development	78		70		105		93		84
Operating lease depreciation	46		44		45		47		48
Regulatory costs	75		52		52		44		35
Merger-related and restructuring charges	63		114		62		121		216
Other expense	291		190		218		152		182
Total noninterest expense	3,691		3,722		3,613		3,580		3,674
Earnings
Income before income taxes	1,909		2,019		2,000		1,904		1,746
Provision for income taxes	394		337		363		372		330
Net income	1,515		1,682		1,637		1,532		1,416
Noncontrolling interests	2		1		4		1		1
Preferred stock dividends and other	103		71		97		77		88
Net income available to common shareholders	$	1,410	$	1,610	$	1,536	$	1,454	$	1,327
Earnings Per Common Share
Basic	$	1.06	$	1.21	$	1.16	$	1.09	$	1.00
Diluted	1.05		1.20		1.15		1.09		0.99
Weighted Average Shares Outstanding
Basic	1,328,602		1,326,787		1,326,539		1,330,160		1,329,037
Diluted	1,339,480		1,337,338		1,336,659		1,338,864		1,341,563

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Consolidated Ending Balance Sheets - Five Quarter Trend

	March 31		Dec. 31		Sept. 30		June 30		March 31
(Dollars in millions)	2023		2022		2022		2022		2022
Assets
Cash and due from banks	$	4,629	$	5,379	$	5,031	$	5,511	$	5,516
Interest-bearing deposits with banks	32,967		16,042		17,194		17,602		23,606
Securities borrowed or purchased under resale agreements	3,637		3,181		2,568		2,650		2,322
Trading assets at fair value	4,601		4,905		5,864		5,230		5,920
Securities available for sale at fair value	71,858		71,801		72,978		79,278		84,753
Securities held to maturity at amortized cost	56,932		57,713		58,754		60,081		61,662
Loans and leases:
Commercial:
Commercial and industrial	167,217		164,307		153,615		149,840		141,060
CRE	22,670		22,676		22,493		22,149		22,774
Commercial construction	5,951		5,849		5,568		5,157		5,220
Consumer:
Residential mortgage	56,455		56,645		55,529		50,903		48,171
Home equity(1)	10,577		10,876		10,883		10,689		10,682
Indirect auto	27,279		27,951		28,239		27,419		25,756
Other consumer(1)	27,742		27,533		27,457		26,617		25,214
Student	4,996		5,287		5,780		6,144		6,514
Credit card	4,786		4,867		4,771		4,744		4,690
Total loans and leases held for investment	327,673		325,991		314,335		303,662		290,081
Loans held for sale	2,160		1,444		2,304		3,638		4,167
Total loans and leases	329,833		327,435		316,639		307,300		294,248
Allowance for loan and lease losses	(4,479)		(4,377)		(4,205)		(4,187)		(4,170)
Premises and equipment	3,519		3,605		3,585		3,682		3,662
Goodwill	27,014		27,013		26,810		26,299		26,284
Core deposit and other intangible assets	3,535		3,672		3,726		3,535		3,693
Loan servicing rights at fair value	3,303		3,758		3,797		3,466		3,013
Other assets	37,005		35,128		35,697		34,676		33,470
Total assets	$	574,354	$	555,255	$	548,438	$	545,123	$	543,979
Liabilities
Deposits:
Noninterest-bearing deposits	$	128,719	$	135,742	$	144,826	$	147,752	$	150,446
Interest checking	107,116		110,464		110,397		114,143		119,572
Money market and savings	136,836		143,815		146,315		149,302		143,834
Time deposits	32,326		23,474		14,454		13,562		14,476
Total deposits	404,997		413,495		415,992		424,759		428,328
Short-term borrowings	23,678		23,422		25,687		13,736		5,147
Long-term debt	69,895		43,203		31,172		30,319		33,773
Other liabilities	13,390		14,598		14,776		13,310		11,687
Total liabilities	511,960		494,718		487,627		482,124		478,935
Shareholders’ Equity:
Preferred stock	6,673		6,673		6,673		6,673		6,673
Common stock	6,660		6,634		6,634		6,632		6,657
Additional paid-in capital	34,582		34,544		34,487		34,410		34,539
Retained earnings	27,038		26,264		25,344		24,500		23,687
Accumulated other comprehensive loss	(12,581)		(13,601)		(12,350)		(9,240)		(6,535)
Noncontrolling interests	22		23		23		24		23
Total shareholders’ equity	62,394		60,537		60,811		62,999		65,044
Total liabilities and shareholders’ equity	$	574,354	$	555,255	$	548,438	$	545,123	$	543,979

(1)In the first quarter of 2023, the Company reclassified certain portfolios within the consumer portfolio segment to delineate home equity from other consumer portfolios. Prior periods were revised to conform to the current presentation.

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Average Balances and Rates - Quarters

	Quarter Ended
	March 31, 2023						December 31, 2022						September 30, 2022						June 30, 2022						March 31, 2022
(Dollars in millions)	Average Balances(1)		Income/Expense(2)		Yields/ Rates(2)		Average Balances(1)		Income/Expense(2)		Yields/ Rates(2)		Average Balances(1)		Income/Expense(2)		Yields/ Rates(2)		Average Balances(1)		Income/Expense(2)		Yields/ Rates(2)		Average Balances(1)		Income/Expense(2)		Yields/ Rates(2)
Assets
AFS and HTM securities at amortized cost:
U.S. Treasury	$	11,117	$	30	1.07	%	$	10,989	$	27	0.98	%	$	10,925	$	26	0.93	%	$	10,544	$	22	0.86	%	$	9,890	$	18	0.72	%
U.S. government-sponsored entities (GSE)	335		2		2.86		325		3		2.47		305		1		2.56		255		1		1.96		1,120		6		2.13
Mortgage-backed securities issued by GSE	124,746		694		2.23		126,718		682		2.16		129,703		655		2.02		133,339		625		1.88		137,052		590		1.72
States and political subdivisions	425		4		4.07		426		4		4.03		395		4		3.92		371		4		3.83		374		3		3.72
Non-agency mortgage-backed	3,907		23		2.34		3,953		23		2.33		4,016		24		2.32		4,097		23		2.30		4,224		24		2.25
Other	21		—		5.30		22		1		4.44		52		—		3.94		75		1		3.66		27		—		2.04
Total securities	140,551		753		2.14		142,433		740		2.08		145,396		710		1.95		148,681		676		1.82		152,687		641		1.68
Loans and leases:
Commercial:
Commercial and industrial	165,095		2,436		5.98		159,308		2,098		5.23		152,123		1,564		4.08		145,558		1,174		3.24		138,872		987		2.88
CRE	22,689		355		6.32		22,497		314		5.51		22,245		245		4.32		22,508		193		3.41		23,555		168		2.84
Commercial construction	5,863		101		7.14		5,711		88		6.25		5,284		62		4.83		5,256		43		3.46		5,046		35		3.05
Consumer:
Residential mortgage	56,422		526		3.73		56,292		514		3.65		53,271		478		3.59		49,237		440		3.58		47,976		428		3.57
Home equity(3)	10,735		180		6.80		10,887		164		6.02		10,767		142		5.17		10,677		118		4.52		10,822��		116		4.33
Indirect auto	27,743		398		5.82		28,117		396		5.59		28,057		382		5.40		26,496		362		5.47		26,088		357		5.56
Other consumer(3)	27,559		459		6.76		27,479		447		6.44		26,927		419		6.21		25,918		391		6.00		24,921		383		6.24
Student	5,129		89		7.04		5,533		90		6.42		5,958		85		5.64		6,331		66		4.20		6,648		63		3.86
Credit card	4,785		136		11.43		4,842		127		10.38		4,755		119		9.97		4,728		105		8.91		4,682		104		8.97
Total loans and leases held for investment	326,020		4,680		5.81		320,666		4,238		5.25		309,387		3,496		4.49		296,709		2,892		3.91		288,610		2,641		3.70
Loans held for sale	1,527		25		6.71		2,067		31		6.08		2,489		30		4.81		3,152		33		4.20		3,874		28		2.87
Total loans and leases	327,547		4,705		5.81		322,733		4,269		5.26		311,876		3,526		4.49		299,861		2,925		3.91		292,484		2,669		3.69
Interest earning trading assets	5,462		83		6.09		5,717		79		5.60		5,446		62		4.49		6,073		55		3.55		5,837		43		3.04
Other earning assets	25,589		295		4.67		21,922		200		3.60		19,631		109		2.24		21,203		45		0.85		18,932		30		0.63
Total earning assets	499,149		5,836		4.72		492,805		5,288		4.27		482,349		4,407		3.63		475,818		3,701		3.12		469,940		3,383		2.90
Nonearning assets	60,478						60,154						63,257						64,750						66,041
Total assets	$	559,627					$	552,959					$	545,606					$	540,568					$	535,981
Liabilities and Shareholders’ Equity
Interest-bearing deposits:
Interest checking	$	108,886	430		1.60		$	110,001	304		1.10		$	111,645	158		0.56		$	112,375	43		0.15		$	112,159	14		0.05
Money market and savings	139,802		476		1.38		144,730		316		0.87		147,659		159		0.43		148,632		50		0.13		141,500		11		0.03
Time deposits	28,671		219		3.10		17,513		63		1.42		14,751		14		0.40		14,133		6		0.17		15,646		7		0.18
Total interest-bearing deposits	277,359		1,125		1.64		272,244		683		1.00		274,055		331		0.48		275,140		99		0.14		269,305		32		0.05
Short-term borrowings	24,056		278		4.69		25,640		242		3.75		17,392		103		2.34		9,618		30		1.26		6,944		10		0.60
Long-term debt	51,057		514		4.05		38,700		332		3.42		31,381		190		2.43		31,263		137		1.75		35,337		132		1.50
Total interest-bearing liabilities	352,472		1,917		2.20		336,584		1,257		1.48		322,828		624		0.77		316,021		266		0.34		311,586		174		0.22
Noninterest-bearing deposits	131,099						141,032						146,041						148,610						145,933
Other liabilities	13,979						13,824						13,227						12,437						11,664
Shareholders’ equity	62,077						61,519						63,510						63,500						66,798
Total liabilities and shareholders’ equity	$	559,627					$	552,959					$	545,606					$	540,568					$	535,981
Average interest-rate spread					2.52						2.79						2.86						2.78						2.68
Net interest income/ net interest margin			$	3,919	3.17	%			$	4,031	3.25	%			$	3,783	3.12	%			$	3,435	2.89	%			$	3,209	2.76	%
Taxable-equivalent adjustment			51						50						38						28						26
Memo: Total deposits	$	408,458	1,125		1.12	%	$	413,276	683		0.66	%	$	420,096	331		0.31	%	$	423,750	99		0.09	%	$	415,238	32		0.03	%

(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)In the first quarter of 2023, the Company reclassified certain portfolios within the consumer portfolio segment to delineate home equity from other consumer portfolios. Prior periods were revised to conform to the current presentation.

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Credit Quality

	March 31		Dec. 31		Sept. 30		June 30		March 31
(Dollars in millions)	2023		2022		2022		2022		2022
Nonperforming Assets
Nonaccrual loans and leases:
Commercial:
Commercial and industrial	$	394	$	398	$	443	$	393	$	330
CRE	117		82		5		19		27
Commercial construction	1		—		—		—		—
Consumer:
Residential mortgage	233		240		227		269		315
Home equity(1)	132		135		132		133		122
Indirect auto	270		289		260		244		227
Other consumer(1)	45		44		39		32		23
Total nonaccrual loans and leases held for investment	1,192		1,188		1,106		1,090		1,044
Loans held for sale	—		—		72		33		39
Total nonaccrual loans and leases	1,192		1,188		1,178		1,123		1,083
Foreclosed real estate	3		4		4		3		3
Other foreclosed property	66		58		58		47		49
Total nonperforming assets	$	1,261	$	1,250	$	1,240	$	1,173	$	1,135
Loans 90 Days or More Past Due and Still Accruing
Commercial:
Commercial and industrial	$	35	$	49	$	44	$	27	$	22
CRE	—		1		1		3		—
Commercial construction	—		—		—		3		—
Consumer:
Residential mortgage - government guaranteed	649		759		808		884		996
Residential mortgage - nonguaranteed	25		27		26		27		31
Home equity(1)	10		12		9		8		9
Indirect auto	—		1		1		1		1
Other consumer(1)	10		13		9		5		5
Student - government guaranteed	590		702		770		796		818
Student - nonguaranteed	4		4		5		5		4
Credit card	38		37		36		28		28
Total loans 90 days past due and still accruing	$	1,361	$	1,605	$	1,709	$	1,787	$	1,914
Loans 30-89 Days Past Due
Commercial:
Commercial and industrial	$	125	$	256	$	162	$	223	$	280
CRE	34		25		15		10		13
Commercial construction	3		5		3		4		1
Consumer:
Residential mortgage - government guaranteed	232		268		234		233		216
Residential mortgage - nonguaranteed	259		346		300		302		326
Home equity(1)	65		68		67		68		80
Indirect auto	511		646		591		584		529
Other consumer(1)	164		187		152		166		127
Student - government guaranteed	350		396		375		447		476
Student - nonguaranteed	6		6		6		6		6
Credit card	56		64		52		48		47
Total loans 30-89 days past due	$	1,805	$	2,267	$	1,957	$	2,091	$	2,101

(1)In the first quarter of 2023, the Company reclassified certain portfolios within the consumer portfolio segment to delineate home equity from other consumer portfolios. Prior periods were revised to conform to the current presentation.

	As of/For the Quarter Ended
	March 31		Dec. 31		Sept. 30		June 30		March 31
	2023		2022		2022		2022		2022
Asset Quality Ratios
Loans 30-89 days past due and still accruing as a percentage of loans and leases	0.55	%	0.70	%	0.62	%	0.69	%	0.72	%
Loans 90 days or more past due and still accruing as a percentage of loans and leases	0.42		0.49		0.54		0.59		0.66
Nonperforming loans and leases as a percentage of loans and leases held for investment	0.36		0.36		0.35		0.36		0.36
Nonperforming loans and leases as a percentage of loans and leases(1)	0.36		0.36		0.37		0.37		0.37
Nonperforming assets as a percentage of:
Total assets(1)	0.22		0.23		0.23		0.22		0.21
Loans and leases plus foreclosed property	0.38		0.38		0.37		0.38		0.38
Net charge-offs as a percentage of average loans and leases	0.37		0.34		0.27		0.22		0.25
Allowance for loan and lease losses as a percentage of loans and leases	1.37		1.34		1.34		1.38		1.44
Ratio of allowance for loan and lease losses to:
Net charge-offs	3.7X		4.1X		5.0X		6.5X		5.8X
Nonperforming loans and leases	3.8X		3.7X		3.8X		3.8X		4.0X
Asset Quality Ratios (Excluding Government Guaranteed)
Loans 90 days or more past due and still accruing as a percentage of loans and leases	0.04	%	0.04	%	0.04	%	0.04	%	0.04	%

Applicable ratios are annualized.

(1)Includes loans held for sale.

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	As of/For the Quarter Ended
	March 31		Dec. 31		Sept. 30		June 30		March 31
(Dollars in millions)	2023		2022		2022		2022		2022
Allowance for Credit Losses(1)
Beginning balance	$	4,649	$	4,455	$	4,434	$	4,423	$	4,695
Provision for credit losses	482		467		234		171		(95)
Charge-offs:
Commercial:
Commercial and industrial	(75)		(44)		(51)		(17)		(31)
CRE	(6)		(11)		—		(1)		(1)
Commercial construction	—		—		—		—		(1)
Consumer:
Residential mortgage	(1)		(1)		(4)		(2)		(2)
Home equity(2)	(2)		(6)		(3)		(3)		(1)
Indirect auto	(127)		(129)		(103)		(77)		(102)
Other consumer(2)	(105)		(96)		(109)		(100)		(76)
Student	(5)		(5)		(7)		(4)		(6)
Credit card	(51)		(53)		(42)		(40)		(41)
Total charge-offs	(372)		(345)		(319)		(244)		(261)
Recoveries:
Commercial:
Commercial and industrial	13		14		43		13		17
CRE	1		1		—		6		1
Commercial construction	1		1		2		1		1
Consumer:
Residential mortgage	2		3		3		4		6
Home equity(2)	6		6		8		6		5
Indirect auto	26		21		21		26		23
Other consumer(2)	17		17		21		20		21
Student	—		1		—		—		—
Credit card	9		8		8		9		9
Total recoveries	75		72		106		85		83
Net charge-offs	(297)		(273)		(213)		(159)		(178)
Other(3)	(73)		—		—		(1)		1
Ending balance	$	4,761	$	4,649	$	4,455	$	4,434	$	4,423
Allowance for Credit Losses:(1)
Allowance for loan and lease losses	$	4,479	$	4,377	$	4,205	$	4,187	$	4,170
Reserve for unfunded lending commitments (RUFC)	282		272		250		247		253
Allowance for credit losses	$	4,761	$	4,649	$	4,455	$	4,434	$	4,423

(1)Excludes provision for credit losses and allowances related to other financial assets at amortized cost.

(2)In the first quarter of 2023, the Company reclassified certain portfolios within the consumer portfolio segment to delineate home equity from other consumer portfolios. Prior periods were revised to conform to the current presentation.

(3)The first quarter of 2023 includes the impact from the adoption of the Troubled Debt Restructurings and Vintage Disclosures accounting standard.

	Quarter Ended
	March 31		Dec. 31		Sept. 30		June 30		March 31
	2023		2022		2022		2022		2022
Net Charge-offs as a Percentage of Average Loans and Leases:
Commercial:
Commercial and industrial	0.15	%	0.08	%	0.02	%	0.01	%	0.04	%
CRE	0.09		0.19		(0.01)		(0.10)		0.01
Commercial construction	(0.04)		(0.06)		(0.10)		(0.08)		(0.02)
Consumer:
Residential mortgage	—		(0.02)		0.01		(0.02)		(0.03)
Home equity	(0.15)		(0.01)		(0.13)		(0.17)		(0.12)
Indirect auto	1.47		1.52		1.15		0.77		1.23
Other consumer	1.29		1.11		1.31		1.27		0.87
Student	0.42		0.34		0.40		0.30		0.33
Credit card	3.54		3.68		2.80		2.63		2.77
Total loans and leases	0.37		0.34		0.27		0.22		0.25
Applicable ratios are annualized.

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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)	2023		2022		2022		2022		2022
Loans and Leases(2)
Beginning balance unamortized fair value mark	$	(741)	$	(826)	$	(924)	$	(1,119)	$	(1,323)
Accretion	64		80		96		189		191
Purchase accounting adjustments and other activity	4		5		2		6		13
Ending balance	$	(673)	$	(741)	$	(826)	$	(924)	$	(1,119)
Core deposit and other intangible assets
Beginning balance	$	3,672	$	3,726	$	3,535	$	3,693	$	3,408
Additions - acquisitions	—		111		336		—		430
Amortization of intangibles(3)	(136)		(163)		(140)		(143)		(137)
Amortization in net occupancy expense	(1)		(3)		(5)		(5)		(8)
Purchase accounting adjustments and other activity	—		1		—		(10)		—
Ending balance	$	3,535	$	3,672	$	3,726	$	3,535	$	3,693
Deposits(4)
Beginning balance unamortized fair value mark	$	—	$	(1)	$	(3)	$	(5)	$	(7)
Amortization	—		1		2		2		2
Ending balance	$	—	$	—	$	(1)	$	(3)	$	(5)
Long-Term Debt(4)
Beginning balance unamortized fair value mark	$	(81)	$	(94)	$	(109)	$	(122)	$	(139)
Amortization	12		13		15		13		17
Ending balance	$	(69)	$	(81)	$	(94)	$	(109)	$	(122)

(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)4Q22 amortization expense includes $16 million partial write-down of an investment advisory intangible asset from a prior acquisition.

(4)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.

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Segment Financial Performance - Preliminary

	Quarter Ended
	March 31		Dec. 31		Sept. 30		June 30		March 31
(Dollars in millions)	2023		2022		2022		2022		2022
Consumer Banking and Wealth
Net interest income (expense)	$	1,601	$	1,729	$	1,686	$	1,567	$	1,528
Net intersegment interest income (expense)	1,139		1,226		971		718		656
Segment net interest income	2,740		2,955		2,657		2,285		2,184
Allocated provision for credit losses	274		311		283		199		74
Noninterest income	873		846		836		831		910
Noninterest expense	1,969		1,924		1,930		1,927		1,885
Income (loss) before income taxes	1,370		1,566		1,280		990		1,135
Provision (benefit) for income taxes	326		371		303		235		274
Segment net income (loss)	$	1,044	$	1,195	$	977	$	755	$	861
Corporate and Commercial Banking(1)
Net interest income (expense)	$	2,308	$	2,089	$	1,640	$	1,306	$	1,118
Net intersegment interest income (expense)	(556)		(219)		7		61		171
Segment net interest income	1,752		1,870		1,647		1,367		1,289
Allocated provision for credit losses	232		139		(49)		(27)		(150)
Noninterest income	630		677		645		687		656
Noninterest expense	843		853		828		815		788
Income (loss) before income taxes	1,307		1,555		1,513		1,266		1,307
Provision (benefit) for income taxes	273		328		325		274��		284
Segment net income (loss)	$	1,034	$	1,227	$	1,188	$	992	$	1,023
Insurance Holdings(1)
Net interest income (expense)	$	1	$	1	$	1	$	1	$	1
Net intersegment interest income (expense)	13		11		10		5		2
Segment net interest income	14		12		11		6		3
Allocated provision for credit losses	—		—		—		—		—
Noninterest income	817		792		731		830		733
Noninterest expense	684		662		628		610		546
Income (loss) before income taxes	147		142		114		226		190
Provision (benefit) for income taxes	36		35		29		56		47
Segment net income (loss)	$	111	$	107	$	85	$	170	$	143
Other, Treasury & Corporate(2)
Net interest income (expense)	$	(42)	$	162	$	418	$	533	$	536
Net intersegment interest income (expense)	(596)		(1,018)		(988)		(784)		(829)
Segment net interest income	(638)		(856)		(570)		(251)		(293)
Allocated provision for credit losses	(4)		17		—		(1)		(19)
Noninterest income	(86)		(88)		(110)		(100)		(157)
Noninterest expense	195		283		227		228		455
Income (loss) before income taxes	(915)		(1,244)		(907)		(578)		(886)
Provision (benefit) for income taxes	(241)		(397)		(294)		(193)		(275)
Segment net income (loss)	$	(674)	$	(847)	$	(613)	$	(385)	$	(611)
Total Truist Financial Corporation
Net interest income (expense)	$	3,868	$	3,981	$	3,745	$	3,407	$	3,183
Net intersegment interest income (expense)	—		—		—		—		—
Segment net interest income	3,868		3,981		3,745		3,407		3,183
Allocated provision for credit losses	502		467		234		171		(95)
Noninterest income	2,234		2,227		2,102		2,248		2,142
Noninterest expense	3,691		3,722		3,613		3,580		3,674
Income (loss) before income taxes	1,909		2,019		2,000		1,904		1,746
Provision (benefit) for income taxes	394		337		363		372		330
Net income	$	1,515	$	1,682	$	1,637	$	1,532	$	1,416

(1)During the first quarter of 2023, Truist reorganized Prime Rate Premium Finance Corporation, which includes AFCO Credit Corporation and CAFO Holding Company, into the C&CB segment. Prior period results have been revised to conform to the current presentation.

(2)Includes financial data from subsidiaries below the quantitative and qualitative thresholds requiring disclosure.

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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)	2023			2022			2022			2022			2022
Selected Capital Information	(preliminary)
Risk-based capital:
Common equity tier 1	$	39,532		$	39,098		$	38,277		$	38,016		$	37,225
Tier 1	46,202			45,768			44,947			44,686			43,895
Total	55,216			54,072			53,223			52,186			51,599
Risk-weighted assets	436,549			434,413			421,489			413,384			397,855
Average quarterly assets for leverage ratio	544,334			539,689			526,454			521,113			512,694
Average quarterly assets for supplementary leverage ratio	635,577			629,960			616,368			608,770			599,415
Risk-based capital ratios:
Common equity tier 1	9.1		%	9.0		%	9.1		%	9.2		%	9.4		%
Tier 1	10.6			10.5			10.7			10.8			11.0
Total	12.6			12.4			12.6			12.6			13.0
Leverage capital ratio	8.5			8.5			8.5			8.6			8.6
Supplementary leverage	7.3			7.3			7.3			7.3			7.3
Common equity per common share	$	41.82		$	40.58		$	40.79		$	42.45		$	43.82
	March 31			Dec. 31			Sept. 30			June 30			March 31
(Dollars in millions, except per share data, shares in thousands)	2023			2022			2022			2022			2022
Calculations of Tangible Common Equity and Related Measures:(1)
Total shareholders’ equity	$	62,394		$	60,537		$	60,811		$	62,999		$	65,044
Less:
Preferred stock	6,673			6,673			6,673			6,673			6,673
Noncontrolling interests	22			23			23			24			23
Intangible assets, net of deferred taxes	29,788			29,908			29,752			29,095			29,229
Tangible common equity	$	25,911		$	23,933		$	24,363		$	27,207		$	29,119
Outstanding shares at end of period (in thousands)	1,331,918			1,326,829			1,326,766			1,326,393			1,331,414
Tangible common equity per common share	$	19.45		$	18.04		$	18.36		$	20.51		$	21.87
Total assets	$	574,354		$	555,255		$	548,438		$	545,123		$	543,979
Less: Intangible assets, net of deferred taxes	29,788			29,908			29,752			29,095			29,229
Tangible assets	$	544,566		$	525,347		$	518,686		$	516,028		$	514,750
Equity as a percentage of total assets	10.9		%	10.9		%	11.1		%	11.6		%	12.0		%
Tangible common equity as a percentage of tangible assets	4.8			4.6			4.7			5.3			5.7

(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 profitability, returns relative to balance sheet risk, and shareholder value. These measures are not necessarily comparable to similar measures that may be presented by other companies.

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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)	2023			2022			2022			2022			2022
Mortgage Banking Income
Residential mortgage income:
Residential mortgage production revenue	$	17		$	7		$	1		$	36		$	52
Residential mortgage servicing income:
Residential mortgage income before MSR valuation	155			88			80			49			36
Net MSRs valuation	(50)			(10)			(9)			(11)			1
Total residential mortgage servicing income	105			78			71			38			37
Total residential mortgage income	122			85			72			74			89
Commercial mortgage income:
Commercial mortgage production revenue	14			28			30			21			32
Commercial mortgage servicing income:
Commercial mortgage income before MSR valuation	7			4			5			2			—
Net MSRs valuation	(1)			—			15			3			—
Total commercial mortgage servicing income	6			4			20			5			—
Total commercial mortgage income	20			32			50			26			32
Total mortgage banking income	142			117			122			100			121
Other Mortgage Banking Information
Residential mortgage loan originations	$	4,022		$	4,868		$	11,746		$	11,330		$	11,408
Residential mortgage servicing portfolio:(1)
Loans serviced for others	214,830			217,046			218,740			209,504			195,737
Bank-owned loans serviced	57,493			56,982			56,786			53,341			50,927
Total servicing portfolio	272,323			274,028			275,526			262,845			246,664
Weighted-average coupon rate on mortgage loans serviced for others	3.52		%	3.48		%	3.45		%	3.42		%	3.41		%
Weighted-average servicing fee on mortgage loans serviced for others	0.27			0.31			0.30			0.30			0.31
Additional Information
Brokered deposits(2)	$	23,816		$	22,353		$	20,239		$	22,926		$	19,092
NQDCP income (expense):
Interest income	$	11		$	2		$	2		$	2		$	19
Other income	(18)			20			(28)			(30)			(44)
Personnel expense	7			(22)			26			28			25
Total NQDCP income (expense)	$	—		$	—		$	—		$	—		$	—
Common stock prices:
High	$	51.26		$	47.47		$	52.22		$	57.50		$	68.95
Low	28.70			40.01			42.56			44.75			56.19
End of period	34.10			43.03			43.54			47.43			56.70
Banking offices	2,006			2,123			2,119			2,117			2,112
ATMs	3,041			3,227			3,185			3,194			3,214
FTEs(3)	53,653			53,999			52,648			51,349			51,169

(1)Amounts reported are unpaid principal balance.

(2)Amounts represented in interest checking, money market and savings, and time deposits.

(3)FTEs represents an average for the quarter.

- 10 -

Selected Items(1)

	Favorable (Unfavorable)
(Dollars in millions)			After-Tax at
Description	Pre-Tax		Marginal Rate
Selected Items
First Quarter 2023
None	$	—	$	—
Fourth Quarter 2022
Incremental operating expenses related to the merger ($51 million professional fees and outside processing and $5 million other line items)	$	(56)	$	(43)
Third Quarter 2022
Incremental operating expenses related to the merger ($72 million professional fees and outside processing and $18 million other line items)	$	(90)	$	(69)
Second Quarter 2022
Incremental operating expenses related to the merger ($103 million professional fees and outside processing, $11 million personnel expense, and $3 million other line items)	$	(117)	$	(89)
Gain (loss) on early extinguishment of debt (other expense)	39		30
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 line items)	$	(202)	$	(155)
Gain on redemption of noncontrolling equity interest related to the acquisition of certain merchant services relationships (other income)	74		57

(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 and costs classified as merger-related and restructuring charges as well as immaterial adjustments made for gains and losses on the early extinguishment of debt.

- 11 -