Truist Financial 8K Truist reports fourth quarter and full year 2021 results | TFC 18 Jan 22

Quarterly Performance Summary

Truist Financial Corporation

Fourth Quarter 2021


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						11
Segment Financial Performance - Five Quarter Trend						15
Capital Information - Five Quarter Trend						16
Selected Mortgage Banking Information & Additional Information						17
Selected Items						18
Non-GAAP Reconciliations						18


Financial Highlights
	Quarter Ended								Year-to-Date
	December 31						%		December 31						%
(Dollars in millions, except per share data, shares in thousands)	2021			2020			Change		2021			2020			Change
Summary Income Statement
Interest income - taxable equivalent (1)	$	3,435		$	3,639		(5.6)	%	$	13,882		$	15,673		(11.4)	%
Interest expense	168			245			(31.4)		768			1,722			(55.4)
Net interest income - taxable equivalent	3,267			3,394			(3.7)		13,114			13,951			(6.0)
Less: Taxable-equivalent adjustment	24			28			(14.3)		108			125			(13.6)
Net interest income	3,243			3,366			(3.7)		13,006			13,826			(5.9)
Provision for credit losses	(103)			177			(158.2)		(813)			2,335			(134.8)
Net interest income after provision for credit losses	3,346			3,189			4.9		13,819			11,491			20.3
Noninterest income	2,323			2,285			1.7		9,290			8,879			4.6
Noninterest expense	3,700			3,833			(3.5)		15,116			14,897			1.5
Income before income taxes	1,969			1,641			20.0		7,993			5,473			46.0
Provision for income taxes	367			311			18.0		1,556			981			58.6
Net income	1,602			1,330			20.5		6,437			4,492			43.3
Noncontrolling interests	—			1			(100.0)		(3)			10			(130.0)
Net income available to the bank holding company	1,602			1,329			20.5		6,440			4,482			43.7
Preferred stock dividends and other	78			101			(22.8)		407			298			36.6
Net income available to common shareholders	1,524			1,228			24.1		6,033			4,184			44.2
Per Common Share Data

Earnings per share-basic	$	1.15		$	0.91		26.4	%	$	4.51		$	3.11		45.0	%
Earnings per share-diluted	1.13			0.90			25.6		4.47			3.08			45.1
Earnings per share-adjusted diluted (2)	1.38			1.18			16.9		5.53			3.80			45.5
Cash dividends declared	0.48			0.45			6.7		1.86			1.80			3.3
Common shareholders' equity	47.14			46.52			1.3		47.14			46.52			1.3
Tangible common shareholders' equity (2)	25.47			26.78			(4.9)		25.47			26.78			(4.9)
End of period shares outstanding	1,327,818			1,348,961			(1.6)		1,327,818			1,348,961			(1.6)

Weighted average shares outstanding-basic	1,329,979			1,348,493			(1.4)		1,337,144			1,347,080			(0.7)
Weighted average shares outstanding-diluted	1,343,029			1,361,763			(1.4)		1,349,378			1,358,289			(0.7)
Performance Ratios
Return on average assets	1.19		%	1.05		%			1.23		%	0.90		%
Return on average risk-weighted assets (current period is preliminary)	1.64			1.40					1.69			1.18
Return on average common shareholders' equity	9.8			7.9					9.7			6.8
Return on average tangible common shareholders' equity (2)	18.9			15.0					18.4			13.4
Net interest margin - taxable equivalent	2.76			3.08					2.86			3.22
Fee income ratio	41.7			40.4					41.7			39.1
Efficiency ratio-GAAP	66.5			67.8					67.8			65.6
Efficiency ratio-adjusted (2)	56.0			55.9					56.7			55.9
Credit Quality
Nonperforming assets as a percentage of:
Assets, including LHFS	0.21		%	0.27		%			0.21		%	0.27		%
Loans and leases plus foreclosed property	0.39			0.46					0.39			0.46
Net charge-offs as a percentage of average loans and leases	0.25			0.27					0.24			0.36
Allowance for loan and lease losses as a percentage of LHFI	1.53			1.95					1.53			1.95
Ratio of allowance for loan and lease losses to nonperforming LHFI	4.07x			4.39x					4.07x			4.39x
Average Balances
Assets	$	534,911		$	503,181		6.3	%	$	522,385		$	499,085		4.7	%
Securities (3)	153,405			102,053			50.3		139,497			83,227			67.6
Loans and leases	291,074			308,188			(5.6)		293,448			314,501			(6.7)
Deposits	410,966			375,266			9.5		398,372			363,293			9.7
Common shareholders' equity	61,807			61,991			(0.3)		62,112			61,379			1.2
Total shareholders' equity	68,480			70,145			(2.4)		69,133			68,024			1.6
Period-End Balances
Assets	$	541,241		$	509,228		6.3	%	$	541,241		$	509,228		6.3	%
Securities (3)	154,617			120,788			28.0		154,617			120,788			28.0
Loans and leases	294,325			305,793			(3.8)		294,325			305,793			(3.8)
Deposits	416,488			381,077			9.3		416,488			381,077			9.3
Common shareholders' equity	62,598			62,759			(0.3)		62,598			62,759			(0.3)
Total shareholders' equity	69,271			70,912			(2.3)		69,271			70,912			(2.3)
Capital Ratios (current quarter is preliminary)

Common equity Tier 1	9.6		%	10.0		%			9.6		%	10.0		%
Tier 1	11.3			12.1					11.3			12.1
Total	13.2			14.5					13.2			14.5

Leverage	8.7			9.6					8.7			9.6
Supplementary leverage	7.4			8.7					7.4			8.7
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.

Truist Financial Corporation 1


Financial Highlights - Five Quarter Trend
	Quarter Ended
	Dec. 31			Sept. 30			June 30			March 31			Dec. 31
(Dollars in millions, except per share data, shares in thousands)	2021			2021			2021			2021			2020
Summary Income Statement
Interest income - taxable equivalent (1)	$	3,435		$	3,454		$	3,471		$	3,522		$	3,639
Interest expense	168			193			198			209			245
Net interest income - taxable equivalent	3,267			3,261			3,273			3,313			3,394
Less: Taxable-equivalent adjustment	24			28			28			28			28
Net interest income	3,243			3,233			3,245			3,285			3,366
Provision for credit losses	(103)			(324)			(434)			48			177
Net interest income after provision for credit losses	3,346			3,557			3,679			3,237			3,189
Noninterest income	2,323			2,365			2,405			2,197			2,285
Noninterest expense	3,700			3,795			4,011			3,610			3,833
Income before income taxes	1,969			2,127			2,073			1,824			1,641
Provision for income taxes	367			423			415			351			311
Net income	1,602			1,704			1,658			1,473			1,330
Noncontrolling interests	—			—			1			(4)			1
Net income available to the bank holding company	1,602			1,704			1,657			1,477			1,329
Preferred stock dividends and other	78			88			98			143			101
Net income available to common shareholders	1,524			1,616			1,559			1,334			1,228
Per Common Share Data

Earnings per share-basic	$	1.15		$	1.21		$	1.16		$	0.99		$	0.91
Earnings per share-diluted	1.13			1.20			1.16			0.98			0.90
Earnings per share-adjusted diluted (2)	1.38			1.42			1.55			1.18			1.18
Cash dividends declared	0.48			0.48			0.45			0.45			0.45
Common shareholders' equity	47.14			46.62			46.20			45.17			46.52
Tangible common shareholders' equity (2)	25.47			26.34			26.50			25.53			26.78
End of period shares outstanding	1,327,818			1,334,892			1,334,770			1,344,845			1,348,961

Weighted average shares outstanding-basic	1,329,979			1,334,825			1,338,302			1,345,666			1,348,493
Weighted average shares outstanding-diluted	1,343,029			1,346,854			1,349,492			1,358,932			1,361,763
Performance Ratios
Return on average assets	1.19		%	1.28		%	1.28		%	1.17		%	1.05		%
Return on average risk-weighted assets (current quarter is preliminary)	1.64			1.77			1.76			1.58			1.40
Return on average common shareholders' equity	9.8			10.2			10.1			8.7			7.9
Return on average tangible common shareholders' equity (2)	18.9			19.3			18.9			16.4			15.0
Net interest margin - taxable equivalent	2.76			2.81			2.88			3.01			3.08
Fee income ratio	41.7			42.2			42.6			40.1			40.4
Efficiency ratio-GAAP	66.5			67.8			71.0			65.8			67.8
Efficiency ratio-adjusted (2)	56.0			57.9			56.1			56.9			55.9
Credit Quality
Nonperforming assets as a percentage of:
Assets, including LHFS	0.21		%	0.23		%	0.23		%	0.25		%	0.27		%
Loans and leases plus foreclosed property	0.39			0.40			0.39			0.42			0.46
Net charge-offs as a percentage of average loans and leases	0.25			0.19			0.20			0.33			0.27
Allowance for loan and lease losses as a percentage of LHFI	1.53			1.65			1.79			1.94			1.95
Ratio of allowance for loan and lease losses to nonperforming LHFI	4.07x			4.35x			4.83x			4.84x			4.39x
Average Balances
Assets	$	534,911		$	526,685		$	518,774		$	508,833		$	503,181
Securities (3)	153,405			146,272			135,647			122,246			102,053
Loans and leases	291,074			290,338			292,965			299,541			308,188
Deposits	410,966			402,728			396,255			383,185			375,266
Common shareholders' equity	61,807			62,680			61,709			62,252			61,991
Total shareholders' equity	68,480			69,353			68,665			70,047			70,145
Period-End Balances
Assets	$	541,241		$	529,884		$	521,964		$	517,537		$	509,228
Securities (3)	154,617			151,038			139,879			123,807			120,788
Loans and leases	294,325			290,655			289,494			297,179			305,793
Deposits	416,488			405,857			398,279			395,562			381,077
Common shareholders' equity	62,598			62,227			61,663			60,752			62,759
Total shareholders' equity	69,271			68,900			68,336			67,876			70,912
Capital Ratios (current quarter is preliminary)

Common equity Tier 1	9.6		%	10.1		%	10.2		%	10.1		%	10.0		%
Tier 1	11.3			11.9			12.0			12.0			12.1
Total	13.2			13.9			14.2			14.3			14.5

Leverage	8.7			9.0			9.1			9.4			9.6
Supplementary leverage	7.4			7.8			7.9			8.3			8.7
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								Year-to-Date
	Dec. 31				Change				Dec. 31				Change
(Dollars in millions, except per share data, shares in thousands)	2021		2020		$		%		2021		2020		$		%
Interest Income
Interest and fees on loans and leases	$	2,753	$	3,158	$	(405)	(12.8)	%	$	11,481	$	13,485	$	(2,004)	(14.9)	%
Interest on securities	602		408		194		47.5		2,090		1,739		351		20.2
Interest on other earning assets	56		45		11		24.4		203		324		(121)		(37.3)
Total interest income	3,411		3,611		(200)		(5.5)		13,774		15,548		(1,774)		(11.4)
Interest Expense
Interest on deposits	32		67		(35)		(52.2)		148		785		(637)		(81.1)
Interest on long-term debt	127		165		(38)		(23.0)		573		800		(227)		(28.4)
Interest on other borrowings	9		13		(4)		(30.8)		47		137		(90)		(65.7)
Total interest expense	168		245		(77)		(31.4)		768		1,722		(954)		(55.4)
Net Interest Income	3,243		3,366		(123)		(3.7)		13,006		13,826		(820)		(5.9)
Provision for credit losses	(103)		177		(280)		(158.2)		(813)		2,335		(3,148)		(134.8)
Net Interest Income After Provision for Credit Losses	3,346		3,189		157		4.9		13,819		11,491		2,328		20.3
Noninterest Income
Insurance income	666		545		121		22.2		2,627		2,193		434		19.8
Wealth management income	350		332		18		5.4		1,392		1,277		115		9.0
Service charges on deposits	273		266		7		2.6		1,060		1,020		40		3.9
Residential mortgage income	159		193		(34)		(17.6)		555		1,000		(445)		(44.5)
Investment banking and trading income	377		354		23		6.5		1,441		1,010		431		42.7
Card and payment related fees	224		203		21		10.3		874		761		113		14.8
Lending related fees	81		105		(24)		(22.9)		349		315		34		10.8
Operating lease income	71		77		(6)		(7.8)		262		309		(47)		(15.2)
Commercial mortgage income	45		66		(21)		(31.8)		179		185		(6)		(3.2)
Income from bank-owned life insurance	44		44		—		—		183		179		4		2.2
Securities gains (losses)	—		—		—		—		—		402		(402)		NM
Other income	33		100		(67)		(67.0)		368		228		140		61.4
Total noninterest income	2,323		2,285		38		1.7		9,290		8,879		411		4.6
Noninterest Expense
Personnel expense	2,096		2,108		(12)		(0.6)		8,632		8,146		486		6.0
Professional fees and outside processing	379		393		(14)		(3.6)		1,442		1,252		190		15.2
Net occupancy expense	186		207		(21)		(10.1)		764		904		(140)		(15.5)
Software expense	238		215		23		10.7		945		862		83		9.6
Amortization of intangibles	143		172		(29)		(16.9)		574		685		(111)		(16.2)
Equipment expense	124		121		3		2.5		513		484		29		6.0
Marketing and customer development	68		58		10		17.2		294		273		21		7.7
Operating lease depreciation	46		54		(8)		(14.8)		190		258		(68)		(26.4)
Loan-related expense	51		65		(14)		(21.5)		212		242		(30)		(12.4)
Regulatory costs	38		32		6		18.8		137		125		12		9.6
Merger-related and restructuring charges	212		308		(96)		(31.2)		822		860		(38)		(4.4)
Loss (gain) on early extinguishment of debt	(1)		—		(1)		NM		(4)		235		(239)		(101.7)
Other expense	120		100		20		20.0		595		571		24		4.2
Total noninterest expense	3,700		3,833		(133)		(3.5)		15,116		14,897		219		1.5
Earnings
Income before income taxes	1,969		1,641		328		20.0		7,993		5,473		2,520		46.0
Provision for income taxes	367		311		56		18.0		1,556		981		575		58.6
Net income	1,602		1,330		272		20.5		6,437		4,492		1,945		43.3
Noncontrolling interests	—		1		(1)		(100.0)		(3)		10		(13)		(130.0)
Net income available to the bank holding company	1,602		1,329		273		20.5		6,440		4,482		1,958		43.7
Preferred stock dividends and other	78		101		(23)		(22.8)		407		298		109		36.6
Net income available to common shareholders	$	1,524	$	1,228	$	296	24.1	%	$	6,033	$	4,184	$	1,849	44.2	%
Earnings Per Common Share
Basic	$	1.15	$	0.91	$	0.24	26.4	%	$	4.51	$	3.11	$	1.40	45.0	%
Diluted	1.13		0.90		0.23		25.6		4.47		3.08		1.39		45.1
Weighted Average Shares Outstanding
Basic	1,329,979		1,348,493		(18,514)		(1.4)		1,337,144		1,347,080		(9,936)		(0.7)
Diluted	1,343,029		1,361,763		(18,734)		(1.4)		1,349,378		1,358,289		(8,911)		(0.7)
NM - not meaningful
In 4Q21, the Company reclassified certain structured real estate activity from commercial mortgage income to investment banking trading income and certain LIHTC activity from commercial mortgage income to other income. Prior periods were reclassified to conform to the current presentation.

Truist Financial Corporation 3


Consolidated Statements of Income - Five Quarter Trend
	Quarter Ended
	Dec. 31		Sept. 30		June 30		March 31		Dec. 31
(Dollars in millions, except per share data, shares in thousands)	2021		2021		2021		2021		2020
Interest Income
Interest and fees on loans and leases	$	2,753	$	2,825	$	2,901	$	3,002	$	3,158
Interest on securities	602		548		497		443		408
Interest on other earning assets	56		53		45		49		45
Total interest income	3,411		3,426		3,443		3,494		3,611
Interest Expense
Interest on deposits	32		33		36		47		67
Interest on long-term debt	127		151		147		148		165
Interest on other borrowings	9		9		15		14		13
Total interest expense	168		193		198		209		245
Net Interest Income	3,243		3,233		3,245		3,285		3,366
Provision for credit losses	(103)		(324)		(434)		48		177
Net Interest Income After Provision for Credit Losses	3,346		3,557		3,679		3,237		3,189
Noninterest Income
Insurance income	666		645		690		626		545
Wealth management income	350		356		345		341		332
Service charges on deposits	273		276		253		258		266
Residential mortgage income	159		179		117		100		193
Investment banking and trading income	377		316		402		346		354
Card and payment related fees	224		225		225		200		203
Lending related fees	81		74		94		100		105
Operating lease income	71		57		66		68		77
Commercial mortgage income	45		54		47		33		66
Income from bank-owned life insurance	44		43		46		50		44
Securities gains (losses)	—		—		—		—		—
Other income	33		140		120		75		100
Total noninterest income	2,323		2,365		2,405		2,197		2,285
Noninterest Expense
Personnel expense	2,096		2,187		2,207		2,142		2,108
Professional fees and outside processing	379		372		341		350		393
Net occupancy expense	186		187		182		209		207
Software expense	238		251		246		210		215
Amortization of intangibles	143		145		142		144		172
Equipment expense	124		154		122		113		121
Marketing and customer development	68		94		66		66		58
Operating lease depreciation	46		47		47		50		54
Loan-related expense	51		52		55		54		65
Regulatory costs	38		43		31		25		32
Merger-related and restructuring charges	212		172		297		141		308
Loss (gain) on early extinguishment of debt	(1)		—		—		(3)		—
Other expense	120		91		275		109		100
Total noninterest expense	3,700		3,795		4,011		3,610		3,833
Earnings
Income before income taxes	1,969		2,127		2,073		1,824		1,641
Provision for income taxes	367		423		415		351		311
Net income	1,602		1,704		1,658		1,473		1,330
Noncontrolling interests	—		—		1		(4)		1
Net income available to the bank holding company	1,602		1,704		1,657		1,477		1,329
Preferred stock dividends and other	78		88		98		143		101
Net income available to common shareholders	$	1,524	$	1,616	$	1,559	$	1,334	$	1,228
Earnings Per Common Share
Basic	$	1.15	$	1.21	$	1.16	$	0.99	$	0.91
Diluted	1.13		1.20		1.16		0.98		0.90
Weighted Average Shares Outstanding
Basic	1,329,979		1,334,825		1,338,302		1,345,666		1,348,493
Diluted	1,343,029		1,346,854		1,349,492		1,358,932		1,361,763
In 4Q21, the Company reclassified certain structured real estate activity from commercial mortgage income to investment banking trading income and certain LIHTC activity from commercial mortgage income to other income. Prior periods were reclassified to conform to the current presentation.

4 Truist Financial Corporation


Consolidated Ending Balance Sheets - Five Quarter Trend
	Dec. 31		Sept. 30		June 30		March 31		Dec. 31
(Dollars in millions)	2021		2021		2021		2021		2020
Assets
Cash and due from banks	$	5,085	$	4,656	$	5,077	$	5,097	$	5,029
Interest-bearing deposits with banks	15,210		15,171		21,480		27,035		13,839
Securities borrowed or purchased under resale agreements	4,028		1,919		1,242		1,349		1,745
Trading assets at fair value	4,423		6,972		5,945		5,094		3,872
Securities available for sale at fair value	153,123		151,038		139,879		123,807		120,788
Securities held to maturity at amortized cost	1,494		—		—		—		—
Loans and leases:
Commercial:
Commercial and industrial	138,762		133,791		135,881		140,315		143,594
CRE	23,951		24,309		25,399		25,899		26,595
Commercial construction	4,971		5,689		6,160		6,559		6,491

Consumer:
Residential mortgage	47,852		46,691		44,036		44,298		47,272
Residential home equity and direct	25,066		25,222		25,334		25,333		26,064
Indirect auto	26,441		26,923		26,696		26,438		26,150
Indirect other	10,883		11,155		11,039		10,631		11,177
Student	6,780		7,059		7,341		7,478		7,552
Credit card	4,807		4,683		4,599		4,560		4,839

Total loans and leases held for investment	289,513		285,522		286,485		291,511		299,734
Loans held for sale	4,812		5,133		3,009		5,668		6,059
Total loans and leases	294,325		290,655		289,494		297,179		305,793
Allowance for loan and lease losses	(4,435)		(4,702)		(5,121)		(5,662)		(5,835)
Premises and equipment	3,700		3,719		3,699		3,787		3,870
Goodwill	26,098		24,891		24,374		24,356		24,447
Core deposit and other intangible assets	3,408		2,930		2,665		2,825		2,984
Loan servicing rights at fair value	2,633		2,584		2,231		2,365		2,023
Other assets	32,149		30,051		30,999		30,305		30,673
Total assets	$	541,241	$	529,884	$	521,964	$	517,537	$	509,228
Liabilities
Deposits:
Noninterest-bearing deposits	$	145,892	$	143,595	$	138,623	$	136,555	$	127,629
Interest checking	115,754		108,954		107,993		107,082		105,269
Money market and savings	138,956		136,633		134,118		132,733		126,238
Time deposits	15,886		16,675		17,545		19,192		21,941

Total deposits	416,488		405,857		398,279		395,562		381,077
Short-term borrowings	5,292		5,226		5,652		5,889		6,092
Long-term debt	35,913		37,837		37,969		37,753		39,597
Other liabilities	14,277		12,064		11,728		10,457		11,550
Total liabilities	471,970		460,984		453,628		449,661		438,316
Shareholders' Equity:
Preferred stock	6,673		6,673		6,673		7,124		8,048
Common stock	6,639		6,674		6,674		6,724		6,745
Additional paid-in capital	34,565		34,977		34,898		35,360		35,843
Retained earnings	22,998		22,114		21,139		20,184		19,455
Accumulated other comprehensive loss	(1,604)		(1,538)		(1,048)		(1,516)		716
Noncontrolling interests	—		—		—		—		105
Total shareholders' equity	69,271		68,900		68,336		67,876		70,912
Total liabilities and shareholders' equity	$	541,241	$	529,884	$	521,964	$	517,537	$	509,228
In 4Q21, the Company reclassified the lease financing portfolio to the commercial and industrial portfolio. Prior periods were reclassified to conform to the current presentation.

Truist Financial Corporation 5


Average Balance Sheets
	Quarter Ended								Year-to-Date
	December 31				Change				December 31				Change
(Dollars in millions)	2021		2020		$		%		2021		2020		$		%
Assets
Securities at amortized cost (1):
U.S. Treasury	$	9,891	$	2,049	$	7,842	NM		$	7,633	$	2,194	$	5,439	NM
U.S. government-sponsored entities (GSE)	1,686		1,841		(155)		(8.4)		1,799		1,846		(47)		(2.5)
Mortgage-backed securities issued by GSE	137,651		97,660		39,991		40.9		128,306		78,564		49,742		63.3
States and political subdivisions	410		469		(59)		(12.6)		429		501		(72)		(14.4)
Non-agency mortgage-backed	3,738		—		3,738		NM		1,299		86		1,213		NM
Other	29		34		(5)		(14.7)		31		36		(5)		(13.9)
Total securities	153,405		102,053		51,352		50.3		139,497		83,227		56,270		67.6
Loans and leases:
Commercial:
Commercial and industrial	134,804		144,624		(9,820)		(6.8)		137,304		147,603		(10,299)		(7.0)
CRE	24,396		27,030		(2,634)		(9.7)		25,269		27,410		(2,141)		(7.8)
Commercial construction	5,341		6,616		(1,275)		(19.3)		6,053		6,659		(606)		(9.1)

Consumer:
Residential mortgage	47,185		48,847		(1,662)		(3.4)		45,500		51,423		(5,923)		(11.5)
Residential home equity and direct	25,146		26,327		(1,181)		(4.5)		25,319		26,951		(1,632)		(6.1)
Indirect auto	26,841		25,788		1,053		4.1		26,621		25,055		1,566		6.3
Indirect other	10,978		11,291		(313)		(2.8)		10,935		11,264		(329)		(2.9)
Student	6,884		7,519		(635)		(8.4)		7,251		7,596		(345)		(4.5)
Credit card	4,769		4,818		(49)		(1.0)		4,650		5,027		(377)		(7.5)

Total loans and leases held for investment	286,344		302,860		(16,516)		(5.5)		288,902		308,988		(20,086)		(6.5)
Loans held for sale	4,730		5,328		(598)		(11.2)		4,546		5,513		(967)		(17.5)
Total loans and leases	291,074		308,188		(17,114)		(5.6)		293,448		314,501		(21,053)		(6.7)

Interest earning trading assets	6,772		4,538		2,234		49.2		5,602		4,655		947		20.3
Other earning assets	19,634		23,887		(4,253)		(17.8)		19,498		31,240		(11,742)		(37.6)
Total earning assets	470,885		438,666		32,219		7.3		458,045		433,623		24,422		5.6
Nonearning assets	64,026		64,515		(489)		(0.8)		64,340		65,462		(1,122)		(1.7)
Total assets	$	534,911	$	503,181	$	31,730	6.3	%	$	522,385	$	499,085	$	23,300	4.7	%
Liabilities and Shareholders' Equity
Deposits:
Noninterest-bearing deposits	$	146,492	$	127,103	$	19,389	15.3	%	$	138,733	$	114,580	$	24,153	21.1	%
Interest checking	110,506		99,866		10,640		10.7		107,311		94,879		12,432		13.1
Money market and savings	137,676		124,692		12,984		10.4		134,303		123,826		10,477		8.5
Time deposits	16,292		23,605		(7,313)		(31.0)		18,025		30,008		(11,983)		(39.9)

Total deposits	410,966		375,266		35,700		9.5		398,372		363,293		35,079		9.7
Short-term borrowings	6,433		6,493		(60)		(0.9)		6,170		10,129		(3,959)		(39.1)
Long-term debt	37,623		40,284		(2,661)		(6.6)		37,410		45,793		(8,383)		(18.3)
Other liabilities	11,409		10,993		416		3.8		11,300		11,846		(546)		(4.6)
Total liabilities	466,431		433,036		33,395		7.7		453,252		431,061		22,191		5.1
Shareholders' equity	68,480		70,145		(1,665)		(2.4)		69,133		68,024		1,109		1.6
Total liabilities and shareholders' equity	$	534,911	$	503,181	$	31,730	6.3	%	$	522,385	$	499,085	$	23,300	4.7	%
In 4Q21, the Company reclassified the lease financing portfolio to the commercial and industrial portfolio. Prior periods were reclassified to conform to the current presentation.
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
	Dec. 31		Sept. 30		June 30		March 31		Dec. 31
(Dollars in millions)	2021		2021		2021		2021		2020
Assets
Securities at amortized cost (1):
U.S. Treasury	$	9,891	$	9,699	$	9,070	$	1,759	$	2,049
U.S. government-sponsored entities (GSE)	1,686		1,830		1,840		1,839		1,841
Mortgage-backed securities issued by GSE	137,651		132,890		124,251		118,171		97,660
States and political subdivisions	410		425		437		444		469
Non-agency mortgage-backed	3,738		1,398		17		—		—
Other	29		30		32		33		34
Total securities	153,405		146,272		135,647		122,246		102,053
Loans and leases:
Commercial:
Commercial and industrial	134,804		134,942		138,539		141,026		144,624
CRE	24,396		24,849		25,645		26,211		27,030
Commercial construction	5,341		5,969		6,359		6,557		6,616

Consumer:
Residential mortgage	47,185		45,369		43,605		45,823		48,847
Residential home equity and direct	25,146		25,242		25,238		25,658		26,327
Indirect auto	26,841		26,830		26,444		26,363		25,788
Indirect other	10,978		11,112		10,797		10,848		11,291
Student	6,884		7,214		7,396		7,519		7,519
Credit card	4,769		4,632		4,552		4,645		4,818

Total loans and leases held for investment	286,344		286,159		288,575		294,650		302,860
Loans held for sale	4,730		4,179		4,390		4,891		5,328
Total loans and leases	291,074		290,338		292,965		299,541		308,188

Interest earning trading assets	6,772		5,809		5,061		4,742		4,538
Other earning assets	19,634		19,331		21,592		17,417		23,887
Total earning assets	470,885		461,750		455,265		443,946		438,666
Nonearning assets	64,026		64,935		63,509		64,887		64,515
Total assets	$	534,911	$	526,685	$	518,774	$	508,833	$	503,181
Liabilities and Shareholders' Equity
Deposits:
Noninterest-bearing deposits	$	146,492	$	141,738	$	137,892	$	128,579	$	127,103
Interest checking	110,506		107,802		106,121		104,744		99,866
Money market and savings	137,676		136,094		134,029		129,303		124,692
Time deposits	16,292		17,094		18,213		20,559		23,605

Total deposits	410,966		402,728		396,255		383,185		375,266
Short-term borrowings	6,433		5,360		6,168		6,731		6,493
Long-term debt	37,623		37,329		36,873		37,820		40,284
Other liabilities	11,409		11,915		10,813		11,050		10,993
Total liabilities	466,431		457,332		450,109		438,786		433,036
Shareholders' equity	68,480		69,353		68,665		70,047		70,145
Total liabilities and shareholders' equity	$	534,911	$	526,685	$	518,774	$	508,833	$	503,181
In 4Q21, the Company reclassified the lease financing portfolio to the commercial and industrial portfolio. Prior periods were reclassified to conform to the current presentation.
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
	December 31, 2021						September 30, 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	$	9,891	$	18	0.72	%	$	9,699	$	18	0.72	%
U.S. government-sponsored entities (GSE)	1,686		9		2.20		1,830		10		2.31
Mortgage-backed securities issued by GSE	137,651		552		1.60		132,890		509		1.53
States and political subdivisions	410		3		3.60		425		4		3.52
Non-agency mortgage-backed	3,738		20		2.23		1,398		8		2.20
Other	29		1		1.90		30		—		1.90
Total securities	153,405		603		1.57		146,272		549		1.50
Loans and leases:
Commercial:
Commercial and industrial	134,804		986		2.90		134,942		1,023		3.01
CRE	24,396		175		2.81		24,849		181		2.86
Commercial construction	5,341		38		2.96		5,969		42		2.96

Consumer:
Residential mortgage	47,185		453		3.84		45,369		450		3.96
Residential home equity and direct	25,146		352		5.55		25,242		360		5.67
Indirect auto	26,841		389		5.75		26,830		405		5.99
Indirect other	10,978		176		6.42		11,112		183		6.54
Student	6,884		70		4.07		7,214		74		4.02
Credit card	4,769		105		8.69		4,632		105		9.01

Total loans and leases held for investment	286,344		2,744		3.81		286,159		2,823		3.92
Loans held for sale	4,730		32		2.66		4,179		28		2.69
Total loans and leases	291,074		2,776		3.79		290,338		2,851		3.90

Interest earning trading assets	6,772		46		2.72		5,809		41		2.81
Other earning assets	19,634		10		0.20		19,331		13		0.25
Total earning assets	470,885		3,435		2.90		461,750		3,454		2.98
Nonearning assets	64,026						64,935
Total assets	$	534,911					$	526,685
Liabilities and Shareholders' Equity
Interest-bearing deposits:
Interest checking	$	110,506	15		0.05		$	107,802	14		0.05
Money market and savings	137,676		8		0.03		136,094		9		0.03
Time deposits	16,292		9		0.21		17,094		10		0.23

Total interest-bearing deposits (4)	264,474		32		0.05		260,990		33		0.05
Short-term borrowings	6,433		9		0.55		5,360		9		0.68
Long-term debt	37,623		127		1.35		37,329		151		1.61
Total interest-bearing liabilities	308,530		168		0.22		303,679		193		0.25
Noninterest-bearing deposits (4)	146,492						141,738
Other liabilities	11,409						11,915
Shareholders' equity	68,480						69,353
Total liabilities and shareholders' equity	$	534,911					$	526,685
Average interest-rate spread					2.68						2.73

Net interest income/ net interest margin - taxable equivalent			$	3,267	2.76	%			$	3,261	2.81	%
Taxable-equivalent adjustment			$	24					$	28
In 4Q21, the Company reclassified the lease financing portfolio to the commercial and industrial portfolio. Prior periods were reclassified to conform to the current presentation.
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 December 31, 2021 and September 30, 2021.

8 Truist Financial Corporation


Average Balances and Rates - Quarters
	Quarter Ended
	June 30, 2021						March 31, 2021						December 31, 2020
	(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	$	9,070	$	16	0.73	%	$	1,759	$	4	0.89	%	$	2,049	$	9	1.62	%
U.S. government-sponsored entities (GSE)	1,840		11		2.33		1,839		11		2.33		1,841		11		2.33
Mortgage-backed securities issued by GSE	124,251		466		1.50		118,171		426		1.44		97,660		385		1.58
States and political subdivisions	437		4		3.55		444		4		3.52		469		3		3.52
Non-agency mortgage-backed	17		—		2.46		—		—		—		—		—		—
Other	32		—		1.88		33		—		1.92		34		—		1.98
Total securities	135,647		497		1.47		122,246		445		1.45		102,053		408		1.60
Loans and leases:
Commercial:
Commercial and industrial	138,539		1,072		3.10		141,026		1,093		3.14		144,624		1,156		3.18
CRE	25,645		183		2.84		26,211		189		2.90		27,030		197		2.88
Commercial construction	6,359		45		2.95		6,557		48		3.04		6,616		51		3.13

Consumer:
Residential mortgage	43,605		474		4.35		45,823		507		4.42		48,847		542		4.44
Residential home equity and direct	25,238		361		5.74		25,658		368		5.81		26,327		388		5.86
Indirect auto	26,444		409		6.20		26,363		426		6.56		25,788		416		6.41
Indirect other	10,797		185		6.86		10,848		187		6.98		11,291		195		6.87
Student	7,396		72		3.90		7,519		73		3.96		7,519		80		4.23
Credit card	4,552		99		8.73		4,645		106		9.24		4,818		114		9.35

Total loans and leases held for investment	288,575		2,900		4.03		294,650		2,997		4.11		302,860		3,139		4.13
Loans held for sale	4,390		28		2.57		4,891		32		2.59		5,328		47		3.54
Total loans and leases	292,965		2,928		4.01		299,541		3,029		4.09		308,188		3,186		4.12

Interest earning trading assets	5,061		37		2.82		4,742		32		2.79		4,538		33		2.89
Other earning assets	21,592		9		0.19		17,417		16		0.37		23,887		12		0.20
Total earning assets	455,265		3,471		3.06		443,946		3,522		3.20		438,666		3,639		3.31
Nonearning assets	63,509						64,887						64,515
Total assets	$	518,774					$	508,833					$	503,181
Liabilities and Shareholders' Equity
Interest-bearing deposits:
Interest checking	$	106,121	15		0.06		$	104,744	15		0.06		$	99,866	17		0.07
Money market and savings	134,029		8		0.03		129,303		10		0.03		124,692		10		0.03
Time deposits	18,213		13		0.28		20,559		22		0.44		23,605		40		0.66

Total interest-bearing deposits (4)	258,363		36		0.06		254,606		47		0.07		248,163		67		0.11
Short-term borrowings	6,168		15		0.98		6,731		14		0.82		6,493		13		0.77
Long-term debt	36,873		147		1.60		37,820		148		1.57		40,284		165		1.64
Total interest-bearing liabilities	301,404		198		0.26		299,157		209		0.28		294,940		245		0.33
Noninterest-bearing deposits (4)	137,892						128,579						127,103
Other liabilities	10,813						11,050						10,993
Shareholders' equity	68,665						70,047						70,145
Total liabilities and shareholders' equity	$	518,774					$	508,833					$	503,181
Average interest-rate spread					2.80						2.92						2.98

Net interest income/ net interest margin - taxable equivalent			$	3,273	2.88	%			$	3,313	3.01	%			$	3,394	3.08	%
Taxable-equivalent adjustment			$	28					$	28					$	28
In 4Q21, the Company reclassified the lease financing portfolio to the commercial and industrial portfolio. Prior periods were reclassified to conform to the current presentation.
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 0.04%, 0.05%, and 0.07% for the three months ended June 30, 2021, March 31, 2021, and December 31, 2020, respectively.

Truist Financial Corporation 9


Average Balances and Rates - Year-To-Date
	Year-to-Date
	December 31, 2021						December 31, 2020
	(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	$	7,633	$	56	0.73	%	$	2,194	$	40	1.81	%
U.S. government-sponsored entities (GSE)	1,799		41		2.29		1,846		43		2.33
Mortgage-backed securities issued by GSE	128,306		1,953		1.52		78,564		1,625		2.07
States and political subdivisions	429		15		3.55		501		19		3.92
Non-agency mortgage-backed	1,299		28		2.20		86		15		16.81
Other	31		1		1.90		36		1		2.33
Total securities	139,497		2,094		1.50		83,227		1,743		2.09
Loans and leases:
Commercial:
Commercial and industrial	137,304		4,174		3.04		147,603		5,053		3.42
CRE	25,269		728		2.85		27,410		914		3.32
Commercial construction	6,053		173		2.98		6,659		243		3.72

Consumer:
Residential mortgage	45,500		1,884		4.14		51,423		2,320		4.51
Residential home equity and direct	25,319		1,441		5.69		26,951		1,625		6.03
Indirect auto	26,621		1,629		6.12		25,055		1,656		6.61
Indirect other	10,935		731		6.70		11,264		801		7.11
Student	7,251		289		3.99		7,596		351		4.62
Credit card	4,650		415		8.92		5,027		470		9.34

Total loans and leases held for investment	288,902		11,464		3.97		308,988		13,433		4.35
Loans held for sale	4,546		120		2.63		5,513		173		3.13
Total loans and leases	293,448		11,584		3.95		314,501		13,606		4.33

Interest earning trading assets	5,602		156		2.78		4,655		168		3.62
Other earning assets	19,498		48		0.24		31,240		156		0.50
Total earning assets	458,045		13,882		3.03		433,623		15,673		3.61
Nonearning assets	64,340						65,462
Total assets	$	522,385					$	499,085
Liabilities and Shareholders' Equity
Interest-bearing deposits:
Interest checking	$	107,311	59		0.05		$	94,879	216		0.23
Money market and savings	134,303		35		0.03		123,826		264		0.21
Time deposits	18,025		54		0.30		30,008		305		1.02

Total interest-bearing deposits (4)	259,639		148		0.06		248,713		785		0.32
Short-term borrowings	6,170		47		0.76		10,129		137		1.35
Long-term debt	37,410		573		1.53		45,793		800		1.75
Total interest-bearing liabilities	303,219		768		0.25		304,635		1,722		0.57
Noninterest-bearing deposits (4)	138,733						114,580
Other liabilities	11,300						11,846
Shareholders' equity	69,133						68,024
Total liabilities and shareholders' equity	$	522,385					$	499,085
Average interest-rate spread					2.78						3.04

Net interest income/ net interest margin - taxable equivalent			$	13,114	2.86	%			$	13,951	3.22	%
Taxable-equivalent adjustment			$	108					$	125
In 4Q21, the Company reclassified the lease financing portfolio to the commercial and industrial portfolio. Prior periods were reclassified to conform to the current presentation.
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 0.04% and 0.22% for the year ended December 31, 2021 and 2020, respectively.

10 Truist Financial Corporation


Credit Quality
	Dec. 31		Sept. 30		June 30		March 31		Dec. 31
(Dollars in millions)	2021		2021		2021		2021		2020
Nonperforming Assets
Nonaccrual loans and leases:
Commercial:
Commercial and industrial	$	394	$	423	$	402	$	474	$	560
CRE	29		20		25		58		75
Commercial construction	7		7		12		13		14

Consumer:
Residential mortgage	296		306		302		290		316
Residential home equity and direct	141		146		165		172		205
Indirect auto	218		172		148		158		155
Indirect other	5		6		6		6		5


Total nonaccrual loans and leases held for investment	1,090		1,080		1,060		1,171		1,330
Loans held for sale	22		76		78		72		5
Total nonaccrual loans and leases	1,112		1,156		1,138		1,243		1,335
Foreclosed real estate	8		9		13		18		20

Other foreclosed property	43		39		41		38		32
Total nonperforming assets	$	1,163	$	1,204	$	1,192	$	1,299	$	1,387
Troubled Debt Restructurings (TDRs)
Performing TDRs:
Commercial:
Commercial and industrial	$	147	$	200	$	202	$	201	$	138
CRE	5		8		24		47		47


Consumer:
Residential mortgage	692		712		727		733		648
Residential home equity and direct	98		105		107		109		88
Indirect auto	389		390		389		399		392
Indirect other	7		7		7		7		6
Student	25		23		13		8		5
Credit card	27		30		32		35		37
Total performing TDRs	1,390		1,475		1,501		1,539		1,361
Nonperforming TDRs	152		159		190		207		164
Total TDRs	$	1,542	$	1,634	$	1,691	$	1,746	$	1,525
Loans 90 Days or More Past Due and Still Accruing
Commercial:
Commercial and industrial	$	13	$	18	$	14	$	14	$	13



Consumer:
Residential mortgage	1,009		852		976		975		841
Residential home equity and direct	9		7		7		11		10
Indirect auto	1		2		2		2		2
Indirect other	3		2		1		1		2
Student	868		968		1,046		1,037		1,111
Credit card	27		23		22		32		29

Total loans 90 days past due and still accruing	$	1,930	$	1,872	$	2,068	$	2,072	$	2,008
Loans 30-89 Days Past Due
Commercial:
Commercial and industrial	$	130	$	135	$	146	$	152	$	89
CRE	20		4		7		9		14
Commercial construction	2		2		1		4		5

Consumer:
Residential mortgage	514		495		543		577		782
Residential home equity and direct	107		81		73		82		98
Indirect auto	607		560		428		328		495
Indirect other	64		53		47		45		68
Student	555		456		548		556		618
Credit card	45		37		31		35		51

Total loans 30-89 days past due	$	2,044	$	1,823	$	1,824	$	1,788	$	2,220
In 4Q21, the Company reclassified the lease financing portfolio to the commercial and industrial portfolio. Prior periods were reclassified to conform to the current presentation.

Truist Financial Corporation 11



	As of/For the Quarter Ended
	Dec. 31		Sept. 30		June 30		March 31		Dec. 31
(Dollars in millions)	2021		2021		2021		2021		2020
Allowance for Credit Losses
Beginning balance	$	4,978	$	5,436	$	6,011	$	6,199	$	6,229


Provision for credit losses	(103)		(324)		(434)		48		177

Charge-offs:
Commercial:
Commercial and industrial	(54)		(57)		(53)		(79)		(88)
CRE	(5)		(1)		—		(4)		(19)
Commercial construction	—		—		—		(2)		(8)

Consumer:
Residential mortgage	(1)		(7)		(4)		(11)		(6)
Residential home equity and direct	(51)		(51)		(57)		(55)		(46)
Indirect auto	(89)		(73)		(69)		(105)		(84)
Indirect other	(16)		(13)		(11)		(17)		(14)
Student	(12)		(6)		(3)		(3)		(3)
Credit card	(37)		(31)		(42)		(40)		(35)

Total charge-offs	(265)		(239)		(239)		(316)		(303)
Recoveries:
Commercial:
Commercial and industrial	23		42		23		19		34
CRE	—		1		4		1		1
Commercial construction	1		1		1		1		1

Consumer:
Residential mortgage	2		3		5		2		3
Residential home equity and direct	21		20		20		18		20
Indirect auto	21		22		27		22		24
Indirect other	6		5		7		6		5
Student	—		1		—		—		—
Credit card	9		9		10		9		10

Total recoveries	83		104		97		78		98
Net charge-offs	(182)		(135)		(142)		(238)		(205)
Other	2		1		1		2		(2)
Ending balance	$	4,695	$	4,978	$	5,436	$	6,011	$	6,199
Allowance for Credit Losses:
Allowance for loan and lease losses (excluding PCD loans)	$	4,320	$	4,577	$	4,979	$	5,506	$	5,668
Allowance for PCD loans	115		125		142		156		167
Reserve for unfunded lending commitments (RUFC)	260		276		315		349		364
Total	$	4,695	$	4,978	$	5,436	$	6,011	$	6,199
In 4Q21, the Company reclassified the lease financing portfolio to the commercial and industrial portfolio. Prior periods were reclassified to conform to the current presentation.

12 Truist Financial Corporation



















































	As of/For the Year-to-Date
	Period Ended Dec. 31
(Dollars in millions)	2021		2020
Allowance for Credit Losses
Beginning balance	$	6,199	$	1,889
CECL adoption - impact to retained earnings before tax	—		2,762
CECL adoption - reserves on PCD assets	—		378
Provision for credit losses	(813)		2,335
Charge-offs:
Commercial:
Commercial and industrial	(243)		(412)
CRE	(10)		(78)
Commercial construction	(2)		(30)

Consumer:
Residential mortgage	(23)		(56)
Residential home equity and direct	(214)		(231)
Indirect auto	(336)		(378)
Indirect other	(57)		(60)
Student	(24)		(23)
Credit card	(150)		(182)

Total charge-offs	(1,059)		(1,450)
Recoveries:
Commercial:
Commercial and industrial	107		96
CRE	6		5
Commercial construction	4		11

Consumer:
Residential mortgage	12		10
Residential home equity and direct	79		66
Indirect auto	92		87
Indirect other	24		23
Student	1		1
Credit card	37		32

Total recoveries	362		331
Net charge-offs	(697)		(1,119)
Other	6		(46)
Ending balance	$	4,695	$	6,199
In 4Q21, the Company reclassified the lease financing portfolio to the commercial and industrial portfolio. Prior periods were reclassified to conform to the current presentation.



	As of/For the Quarter Ended
	Dec. 31		Sept. 30		June 30		March 31		Dec. 31
	2021		2021		2021		2021		2020
Asset Quality Ratios
Loans 30-89 days past due and still accruing as a percentage of loans and leases	0.71	%	0.64	%	0.64	%	0.61	%	0.74	%
Loans 90 days or more past due and still accruing as a percentage of loans and leases	0.67		0.66		0.72		0.71		0.67
Nonperforming loans and leases as a percentage of loans and leases held for investment	0.38		0.38		0.37		0.40		0.44
Nonperforming loans and leases as a percentage of loans and leases (1)	0.38		0.40		0.39		0.42		0.44
Nonperforming assets as a percentage of:
Total assets (1)	0.21		0.23		0.23		0.25		0.27
Loans and leases plus foreclosed property	0.39		0.40		0.39		0.42		0.46
Net charge-offs as a percentage of average loans and leases	0.25		0.19		0.20		0.33		0.27
Allowance for loan and lease losses as a percentage of loans and leases	1.53		1.65		1.79		1.94		1.95
Ratio of allowance for loan and lease losses to:
Net charge-offs	6.14X		8.79X		8.98X		5.87X		7.15X
Nonperforming loans and leases	4.07X		4.35X		4.83X		4.84X		4.39X
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	0.03	%	0.03	%	0.04	%	0.04	%	0.04	%
Applicable ratios are annualized.
(1)Includes loans held for sale.

							As of/For the Year-to-Date
							Period Ended Dec. 31
							2021		2020
Asset Quality Ratios
Net charge-offs as a percentage of average loans and leases							0.24	%	0.36	%
Ratio of allowance for loan and lease losses to net charge-offs							6.36X		5.21X
Applicable ratios are annualized.
The third quarter of 2020 includes $97 million of charge-offs on PCD assets directly related to the implementation of CECL.

Truist Financial Corporation 13



	December 31, 2021
					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	$	147	100.0	%	$	—		—	%	$	—		—	%	$	147
CRE	5		100.0		—			—		—			—		5


Consumer:
Residential mortgage	440		63.6		85			12.3		167			24.1		692
Residential home equity and direct	93		94.9		5			5.1		—			—		98
Indirect auto	320		82.3		69			17.7		—			—		389
Indirect other	6		85.7		1			14.3		—			—		7
Student	23		92.0		1			4.0		1			4.0		25
Credit card	24		88.9		2			7.4		1			3.7		27
Total performing TDRs (1)	1,058		76.1		163			11.7		169			12.2		1,390
Nonperforming TDRs (2)	43		28.3		21			13.8		88			57.9		152
Total TDRs (1)(2)	$	1,101	71.4	%	$	184		11.9	%	$	257		16.7	%	$	1,542
(1)Past due performing TDRs are included in past due disclosures.
(2)Nonperforming TDRs are included in nonaccrual loan disclosures.

					Quarter Ended
					Dec. 31			Sept. 30		June 30			March 31		Dec. 31
					2021			2021		2021			2021		2020
Net Charge-offs as a Percentage of Average Loans and Leases:
Commercial:
Commercial and industrial					0.09		%	0.04	%	0.09		%	0.17	%	0.15		%
CRE					0.07			—		(0.05)			0.04		0.27
Commercial construction					(0.10)			(0.06)		(0.06)			0.08		0.39

Consumer:
Residential mortgage					(0.02)			0.04		(0.01)			0.08		0.03
Residential home equity and direct					0.49			0.49		0.59			0.58		0.39
Indirect auto					1.01			0.75		0.63			1.28		0.92
Indirect other					0.39			0.26		0.17			0.39		0.31
Student					0.65			0.31		0.16			0.16		0.17
Credit card					2.31			1.90		2.75			2.74		2.11

Total loans and leases					0.25			0.19		0.20			0.33		0.27
In 4Q21, the Company reclassified the lease financing portfolio to the commercial and industrial portfolio. Prior periods were reclassified to conform to the current presentation.
Applicable ratios are annualized.


Credit Quality - Allowance with Fair Value Marks

	As of/For the Quarter Ended
	Dec. 31			Sept. 30			June 30			March 31			Dec. 31
(Dollars in millions)	2021			2021			2021			2021			2020

ALLL	$	4,435		$	4,702		$	5,121		$	5,662		$	5,835

Unamortized fair value mark (1)	1,323			1,540			1,777			2,067			2,395
Allowance plus unamortized fair value mark	$	5,758		$	6,242		$	6,898		$	7,729		$	8,230

Loans and leases held for investment	$	289,513		$	285,522		$	286,485		$	291,511		$	299,734
Unamortized fair value mark (1)	1,323			1,540			1,777			2,067			2,395
Gross loans and leases	$	290,836		$	287,062		$	288,262		$	293,578		$	302,129

Allowance for loan and lease losses as a percentage of loans and leases - GAAP	1.53		%	1.65		%	1.79		%	1.94		%	1.95		%
Allowance for loan and lease losses and unamortized fair value mark as a percentage of gross loans and leases - Adjusted (1) (2)	1.98			2.17			2.39			2.63			2.72

(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.

14 Truist Financial Corporation


Segment Financial Performance - Preliminary
	Quarter Ended
	Dec. 31		Sept. 30		June 30		March 31		Dec. 31
(Dollars in millions)	2021		2021		2021		2021		2020
Consumer Banking and Wealth
Net interest income (expense)	$	1,631	$	1,666	$	1,688	$	1,753	$	1,818
Net intersegment interest income (expense)	347		365		417		370		366
Segment net interest income	1,978		2,031		2,105		2,123		2,184
Allocated provision for credit losses	59		(5)		(4)		100		116
Noninterest income	992		1,028		925		920		997
Noninterest expense	1,950		1,929		1,930		1,916		1,955
Income (loss) before income taxes	961		1,135		1,104		1,027		1,110
Provision (benefit) for income taxes	227		266		258		241		262
Segment net income (loss)	$	734	$	869	$	846	$	786	$	848




Corporate and Commercial Banking
Net interest income (expense)	$	1,104	$	1,125	$	1,181	$	1,208	$	1,271
Net intersegment interest income (expense)	41		52		42		14		18
Segment net interest income	1,145		1,177		1,223		1,222		1,289
Allocated provision for credit losses	(183)		(264)		(399)		(35)		60
Noninterest income	790		753		808		692		788
Noninterest expense	814		820		842		775		836
Income (loss) before income taxes	1,304		1,374		1,588		1,174		1,181
Provision (benefit) for income taxes	280		300		348		251		259
Segment net income (loss)	$	1,024	$	1,074	$	1,240	$	923	$	922




Insurance Holdings
Net interest income (expense)	$	24	$	27	$	25	$	24	$	26
Net intersegment interest income (expense)	(4)		(2)		(4)		(4)		(4)
Segment net interest income	20		25		21		20		22
Allocated provision for credit losses	(1)		1		(1)		1		2
Noninterest income	681		652		698		633		562
Noninterest expense	547		537		515		480		451
Income (loss) before income taxes	155		139		205		172		131
Provision (benefit) for income taxes	38		34		49		42		32
Segment net income (loss)	$	117	$	105	$	156	$	130	$	99
















Other, Treasury & Corporate (1)
Net interest income (expense)	$	484	$	415	$	351	$	300	$	251
Net intersegment interest income (expense)	(384)		(415)		(455)		(380)		(380)
Segment net interest income	100		—		(104)		(80)		(129)
Allocated provision for credit losses	22		(56)		(30)		(18)		(1)
Noninterest income	(140)		(68)		(26)		(48)		(62)
Noninterest expense	389		509		724		439		591
Income (loss) before income taxes	(451)		(521)		(824)		(549)		(781)
Provision (benefit) for income taxes	(178)		(177)		(240)		(183)		(242)
Segment net income (loss)	$	(273)	$	(344)	$	(584)	$	(366)	$	(539)


Total Truist Financial Corporation
Net interest income (expense)	$	3,243	$	3,233	$	3,245	$	3,285	$	3,366
Net intersegment interest income (expense)	—		—		—		—		—
Segment net interest income	3,243		3,233		3,245		3,285		3,366
Allocated provision for credit losses	(103)		(324)		(434)		48		177
Noninterest income	2,323		2,365		2,405		2,197		2,285
Noninterest expense	3,700		3,795		4,011		3,610		3,833
Income (loss) before income taxes	1,969		2,127		2,073		1,824		1,641
Provision (benefit) for income taxes	367		423		415		351		311
Net income	$	1,602	$	1,704	$	1,658	$	1,473	$	1,330

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

Truist Financial Corporation 15


Rollforward of Intangible Assets and Selected Fair Value Marks (1)
	As of/For the Quarter Ended
	Dec. 31		Sept. 30		June 30		March 31		Dec. 31
(Dollars in millions)	2021		2021		2021		2021		2020







Loans and Leases (2)
Beginning balance unamortized fair value mark	$	(1,540)	$	(1,777)	$	(2,067)	$	(2,395)	$	(2,676)

Accretion	217		233		285		316		356

Purchase accounting adjustments and other activity	—		4		5		12		(75)
Ending balance	$	(1,323)	$	(1,540)	$	(1,777)	$	(2,067)	$	(2,395)
Core deposit and other intangible assets
Beginning balance	$	2,930	$	2,665	$	2,825	$	2,984	$	2,840

Additions - acquisitions	647		418		—		14		320
Amortization of intangibles	(143)		(145)		(142)		(144)		(172)
Amortization in net occupancy expense	(3)		(4)		(3)		(3)		(4)
Purchase accounting adjustments and other activity	(23)		(4)		(15)		(26)		—
Ending balance	$	3,408	$	2,930	$	2,665	$	2,825	$	2,984
Deposits (3)
Beginning balance unamortized fair value mark	$	(9)	$	(12)	$	(15)	$	(19)	$	(26)

Amortization	2		3		3		4		7
Ending balance	$	(7)	$	(9)	$	(12)	$	(15)	$	(19)
Long-Term Debt (3)
Beginning balance unamortized fair value mark	$	(157)	$	(176)	$	(196)	$	(216)	$	(238)

Amortization	18		19		20		20		22

Ending balance	$	(139)	$	(157)	$	(176)	$	(196)	$	(216)

(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.


Capital Information - Five Quarter Trend
	As of/For the Quarter Ended
	Dec. 31			Sept. 30			June 30			March 31			Dec. 31
(Dollars in millions, except per share data, shares in thousands)	2021			2021			2021			2021			2020
Selected Capital Information	(preliminary)
Risk-based capital:
Common equity tier 1	$	37,524		$	38,859		$	38,690		$	38,267		$	37,869
Tier 1	44,194			45,529			45,360			45,388			45,915
Total	51,519			53,228			53,640			54,245			55,011
Risk-weighted assets	390,715			383,871			379,044			378,458			379,153
Average quarterly assets for leverage ratio	510,405			503,223			496,391			484,961			478,608
Average quarterly assets for supplementary leverage ratio	594,963			585,420			576,734			546,470			530,716
Risk-based capital ratios:
Common equity tier 1	9.6		%	10.1		%	10.2		%	10.1		%	10.0		%
Tier 1	11.3			11.9			12.0			12.0			12.1
Total	13.2			13.9			14.2			14.3			14.5
Leverage capital ratio	8.7			9.0			9.1			9.4			9.6
Supplementary leverage	7.4			7.8			7.9			8.3			8.7
Equity as a percentage of total assets	12.8			13.0			13.1			13.1			13.9
Common equity per common share	$	47.14		$	46.62		$	46.20		$	45.17		$	46.52

	Dec. 31			Sept. 30			June 30			March 31			Dec. 31
(Dollars in millions, except per share data, shares in thousands)	2021			2021			2021			2021			2020
Calculations of Tangible Common Equity and Related Measures: (1)
Total shareholders' equity	$	69,271		$	68,900		$	68,336		$	67,876		$	70,912
Less:
Preferred stock	6,673			6,673			6,673			7,124			8,048
Noncontrolling interests	—			—			—			—			105
Intangible assets, net of deferred taxes	28,772			27,066			26,296			26,413			26,629
Tangible common equity	$	33,826		$	35,161		$	35,367		$	34,339		$	36,130







Outstanding shares at end of period (in thousands)	1,327,818			1,334,892			1,334,770			1,344,845			1,348,961
Tangible Common Equity Per Common Share	$	25.47		$	26.34		$	26.50		$	25.53		$	26.78

(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. These measures are not necessarily comparable to similar measures that may be presented by other companies.

16 Truist Financial Corporation


Selected Mortgage Banking Information & Additional Information
	As of/For the Quarter Ended
	Dec. 31			Sept. 30			June 30			March 31			Dec. 31
(Dollars in millions, except per share data)	2021			2021			2021			2021			2020
Residential Mortgage Income
Residential mortgage production revenue	$	115		$	139		$	122		$	140		$	229
Residential mortgage servicing income:
Residential mortgage servicing revenue	155			157			139			141			150
Realization of expected residential MSR cash flows	(143)			(146)			(175)			(208)			(209)

Income statement impact of mortgage servicing rights valuation:
MSRs fair value increase (decrease)	(25)			77			(188)			360			62
MSRs hedge gains (losses)	57			(48)			219			(333)			(39)
Net MSRs valuation	32			29			31			27			23
Total residential mortgage servicing income	$	44		$	40		$	(5)		$	(40)		$	(36)
Total residential mortgage income	$	159		$	179		$	117		$	100		$	193

Commercial Mortgage Income (1)
Commercial mortgage production revenue	$	40		$	48		$	40		$	30		$	60
Commercial mortgage servicing income:
Commercial mortgage servicing revenue	18			17			17			17			16
Realization of expected commercial MSR cash flows	(12)			(11)			(11)			(15)			(11)

Income statement impact of mortgage servicing rights valuation:
MSRs fair value increase (decrease)	(1)			1			(4)			13			3
MSRs hedge gains (losses)	—			(1)			5			(12)			(2)
Net MSRs valuation	(1)			—			1			1			1
Total commercial mortgage servicing income	$	5		$	6		$	7		$	3		$	6
Commercial mortgage income	$	45		$	54		$	47		$	33		$	66

Other Mortgage Banking Information
Residential mortgage loan originations	$	14,458		$	15,852		$	14,301		$	13,075		$	13,235
Residential mortgage servicing portfolio (2):
Loans serviced for others	196,011			198,119			178,004			179,836			188,341
Bank-owned loans serviced	50,716			50,427			46,031			48,800			50,693
Total servicing portfolio	246,727			248,546			224,035			228,636			239,034
Weighted-average coupon rate on mortgage loans serviced for others	3.44		%	3.49		%	3.66		%	3.76		%	3.84		%
Weighted-average servicing fee on mortgage loans serviced for others	0.31			0.31			0.31			0.31			0.32

Additional Information
NQDC plan income (expense):
Interest income	$	1		$	2		$	2		$	9		$	1
Other income	(7)			30			43			23			32
Personnel expense	6			(32)			(45)			(32)			(33)
Total NQDC plan income (expense)	$	—		$	—		$	—		$	—		$	—




Fair value of derivatives, net	$	1,784		$	2,375		$	2,614		$	2,222		$	3,282
CVA/DVA income (expense) included in investment banking and trading income	12			16			(12)			48			21

Common stock prices:
High	65.42			60.74			62.89			61.26			49.72
Low	54.73			51.87			52.61			46.71			37.86
End of period	58.55			58.65			55.50			58.32			47.93
Banking offices	2,517			2,518			2,557			2,556			2,781
ATMs	3,670			3,684			3,779			3,807			4,082
FTEs (3)	51,348			52,675			52,248			53,207			53,693

(1)In 4Q21, the Company reclassified certain structured real estate activity from commercial mortgage income to investment banking trading income and certain LIHTC activity from commercial mortgage income to other income. Prior periods were reclassified to conform to the current presentation.

(2)Amounts reported are unpaid principal balance.

(3)FTEs represents an average for the quarter.

Truist Financial Corporation 17


Selected Items (1)
	Favorable (Unfavorable)
(Dollars in millions)			After-Tax at
Description	Pre-Tax		Marginal Rate
Selected Items
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	(30)		(23)

Second Quarter 2021
Charitable contribution	$	(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	(36)		(28)

Fourth Quarter 2020
Incremental operating expenses related to the merger ($124 million in professional fees and outside processing, $47 million in personnel expense, and $8 million in other expense)	$	(179)	$	(138)

Third Quarter 2020
Incremental operating expenses related to the merger ($99 million in professional fees and outside processing, $48 million in personnel expense, and $5 million in other expense)	$	(152)	$	(115)
Charitable contribution	(50)		(38)

Second Quarter 2020
Incremental operating expenses related to the merger ($64 million in professional fees and outside processing, $49 million in personnel expense, and $16 million in other expense)	$	(129)	$	(99)

First Quarter 2020
Incremental operating expenses related to the merger ($44 million in personnel expense, $20 million in professional fees and outside processing, and $10 million in other expense)	$	(74)	$	(57)

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


Non-GAAP Reconciliations
	Quarter Ended															Year-to-Date
	Dec. 31			Sept. 30			June 30			March 31			Dec. 31			Dec. 31			Dec. 31
(Dollars in millions)	2021			2021			2021			2021			2020			2021			2020
Efficiency Ratio (1)
Efficiency Ratio Numerator - Noninterest Expense - GAAP	$	3,700		$	3,795		$	4,011		$	3,610		$	3,833		$	15,116		$	14,897
Merger-related and restructuring charges, net	(212)			(172)			(297)			(141)			(308)			(822)			(860)
Gain (loss) on early extinguishment of debt	1			—			—			3			—			4			(235)
Incremental operating expense related to the merger	(215)			(191)			(190)			(175)			(179)			(771)			(534)
Amortization of intangibles	(143)			(145)			(142)			(144)			(172)			(574)			(685)
Charitable contribution	—			—			(200)			—			—			(200)			(50)

Professional fee accrual	—			(30)			—			—			—			(30)			—

Acceleration for cash flow hedge unwind	—			—			—			(36)			—			(36)			—






Efficiency Ratio Numerator - Adjusted	$	3,131		$	3,257		$	3,182		$	3,117		$	3,174		$	12,687		$	12,533














Efficiency Ratio Denominator - Revenue (2) - GAAP	$	5,566		$	5,598		$	5,650		$	5,482		$	5,651		$	22,296		$	22,705
Taxable equivalent adjustment	24			28			28			28			28			108			125
Securities (gains) losses	—			—			—			—			—			—			(402)





Gains on divestiture of certain businesses	—			—			—			(37)			—			(37)			—


Efficiency Ratio Denominator - Adjusted	$	5,590		$	5,626		$	5,678		$	5,473		$	5,679		$	22,367		$	22,428



Efficiency Ratio - GAAP	66.5		%	67.8		%	71.0		%	65.8		%	67.8		%	67.8		%	65.6		%
Efficiency Ratio - Adjusted	56.0			57.9			56.1			56.9			55.9			56.7			55.9

(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.

18 Truist Financial Corporation






	Quarter Ended															Year-to-Date
	Dec. 31			Sept. 30			June 30			March 31			Dec. 31			Dec. 31			Dec. 31
(Dollars in millions)	2021			2021			2021			2021			2020			2021			2020
Return on Average Tangible Common Shareholders' Equity (1)
Net income available to common shareholders	$	1,524		$	1,616		$	1,559		$	1,334		$	1,228		$	6,033		$	4,184
Plus: Amortization of intangibles, net of tax	110			113			107			111			131			441			524
Tangible net income available to common shareholders	$	1,634		$	1,729		$	1,666		$	1,445		$	1,359		$	6,474		$	4,708

Average common shareholders' equity	$	61,807		$	62,680		$	61,709		$	62,252		$	61,991		$	62,112		$	61,379
Less: Average intangible assets, net of deferred taxes	27,523			27,149			26,366			26,535			25,930			26,897			26,122
Average tangible common shareholders' equity	$	34,284		$	35,531		$	35,343		$	35,717		$	36,061		$	35,215		$	35,257

Return on average common shareholders' equity	9.8		%	10.2		%	10.1		%	8.7		%	7.9		%	9.7		%	6.8		%
Return on average tangible common shareholders' equity	18.9			19.3			18.9			16.4			15.0			18.4			13.4


	Quarter Ended										Year-to-Date
	Dec. 31		Sept. 30		June 30		March 31		Dec. 31		Dec. 31		Dec. 31
(Dollars in millions, except per share data)	2021		2021		2021		2021		2020		2021		2020
Diluted EPS (1)
Net income available to common shareholders - GAAP	$	1,524	$	1,616	$	1,559	$	1,334	$	1,228	$	6,033	$	4,184
Merger-related and restructuring charges	163		132		228		108		237		631		660
Securities (gains) losses	—		—		—		—		—		—		(308)
Loss (gain) on early extinguishment of debt	—		—		(1)		(2)		—		(3)		180
Incremental operating expenses related to the merger	165		147		146		134		138		592		409


Charitable contribution	—		—		153		—		—		153		38

Professional fee accrual	—		23		—		—		—		23		—

Acceleration for cash flow hedge unwind	—		—		—		28		—		28		—





















Net income available to common shareholders - adjusted	$	1,852	$	1,918	$	2,085	$	1,602	$	1,603	$	7,457	$	5,163

Weighted average shares outstanding - diluted	1,343,029		1,346,854		1,349,492		1,358,932		1,361,763		1,349,378		1,358,289

Diluted EPS - GAAP	$	1.13	$	1.20	$	1.16	$	0.98	$	0.90	$	4.47	$	3.08
Diluted EPS - adjusted	1.38		1.42		1.55		1.18		1.18		5.53		3.80

(1)The adjusted diluted earnings per share is non-GAAP in that it excludes merger-related and restructuring charges and other selected items, net of tax. Truist's management uses this measure in their analysis of the Corporation's performance. Truist's management believes this measure provides a greater understanding of ongoing operations and enhances comparability of results with prior periods, as well as demonstrates the effects of significant gains and charges.

Truist Financial Corporation 19

Truist Financial (TFC) 8-KTruist reports fourth quarter and full year 2021 results