Core Insights - Truist Financial Corporation has released the results of its annual company-run stress test, which complies with regulations from the Federal Reserve and the Federal Deposit Insurance Corporation [1] - The Federal Reserve has set a preliminary stress capital buffer (SCB) requirement for Truist at 2.8%, with the final requirement to be announced by August 31, 2024 [2] - Truist's board has authorized a $5 billion share repurchase program to be executed through 2026, with repurchases expected to start in Q3 2024 [3] Financial Position - The sale of Truist Insurance Holdings and recent balance sheet repositioning have strengthened Truist's liquidity and capital, raising the Q1 2024 pro-forma CET1 ratio to 11.4% [4] - The company plans to maintain its quarterly common stock dividend at $0.52 per share, pending board approval [3] Strategic Initiatives - The share repurchase program allows Truist to buy back shares through various methods, with management having discretion over the terms [8] - The company emphasizes its diverse business mix and disciplined risk management as key factors in its financial stability and capacity to serve clients [4] Company Overview - Truist Financial Corporation is a leading U.S. commercial bank with total assets of $535 billion as of March 31, 2024, and operates in various high-growth markets [9]

Core Viewpoint - Truist Financial (TFC) is expected to experience continued top-line growth driven by strong loan demand, high interest rates, strategic restructuring initiatives, and efforts to enhance fee income [1] Financial Performance - Over the past year, TFC shares have increased by 23.5%, while the industry has grown by 32.6% [2] - TFC's net interest income saw a five-year compound annual growth rate (CAGR) of 16.9% until 2023, despite a decline in 2021 and the first quarter of 2024 [3] - The net interest margin (NIM) improved from 2.86% in 2021 to 3.01% in 2022, with a slight decline to 3.00% in Q1 2024; projected NIMs are 2.94%, 3.03%, and 3.10% for 2024, 2025, and 2026 respectively [4] Revenue Sources - Non-interest revenue sources experienced a five-year CAGR of 12.5% from 2018 to 2023, driven by a merger deal and growth in wealth management and insurance [5] - Although total non-interest income is expected to decline in 2024 due to securities losses, significant growth is anticipated in 2025 [5] Strategic Initiatives - Truist is pursuing strategic business restructuring, including the sale of an 80% stake in Truist Insurance Holdings for $1.95 billion and the acquisition of Service Finance Company to enhance its lending business [6] Expense Management - TFC's expenses have grown at a CAGR of 25.4% from 2018 to 2023, primarily due to rising personnel costs and digitization efforts [7] - Despite a year-over-year decline in Q1 2024 expenses and a strategic program expected to yield $750 million in gross savings, overall costs are projected to remain high due to technology investments [7] Asset Quality - Truist's asset quality has been declining, with provisions for credit losses showing a CAGR of 30.1% over the past five years; an increase in provisions is expected in the near term, with a projected rise of 4.3% this year [8]

Core Insights - Jobs for the Future (JFF) has partnered with Truist Foundation to enhance economic mobility and advancement opportunities for learners and workers in Southern states, Ohio, and Pennsylvania through a $4.2 million investment [1][4][10] Group 1: Partnership and Investment - The partnership will support two initiatives aimed at creating equitable pathways to high-wage, high-growth careers via postsecondary education and workforce training programs [1][4] - The investment will focus on community colleges in Georgia, North Carolina, Pennsylvania, and Ohio, targeting regions with high concentrations of learners facing economic mobility barriers [4][8] Group 2: Program Objectives - JFF will assist participating colleges in analyzing learner outcomes and experiences to design interventions that promote access and success in career pathways [4][9] - The initiatives aim to train 180 workers over two years in tech roles such as data analytics and cybersecurity, specifically for low-to-moderate-income individuals and those from underprivileged backgrounds [9][10] Group 3: Long-term Goals - JFF's initiatives align with its 10-year goal of helping 75 million people facing systemic barriers to advance into quality jobs [10] - The organization has a history of collaborating with various stakeholders to design solutions, scale best practices, and influence policy for equitable economic advancement [10][11]

CHARLOTTE, N.C., June 20, 2024 /PRNewswire/ -- Truist Financial Corporation (NYSE: TFC) will report second-quarter 2024 financial results before the market opens on Monday, July 22, 2024. Chairman and Chief Executive Officer Bill Rogers and Chief Financial Officer Mike Maguire will host a conference call to review the company's financial results at 8 a.m. ET. Investors can access the live earnings call by webcast or dial-in as follows: Live webcast for listeners: https://app.webinar.net/zVb4RPwq23Q Dial-in ...

Core Viewpoint - Truist has faced challenges in executing the SunTrust merger and has been losing organic market share in key markets, leading to underperformance compared to peers. However, there is potential for recovery and growth following the sale of its insurance business, which has provided capital for repositioning the balance sheet and improving yields [1][2][6]. Financial Performance - Truist's shares have lagged behind peers by approximately 10% since the last update, over 15% in the last five years, and 35% over the last ten years [1]. - The sale of the insurance business was executed at a decent price of 18x trailing EBITDA, generating over $10 billion in after-tax proceeds, which will be used to absorb losses and reposition the balance sheet [2]. - The bank sold nearly $28 billion in lower-yielding securities with a yield of 2.8% and purchased $18.7 billion in higher-yielding securities at 5.3%, which is expected to drive around $1.1 billion in net interest income leverage [2]. Strategic Direction - Management has indicated a focus on improving core banking operations and addressing the challenges of integrating the SunTrust merger, which has historically been difficult [6][8]. - The bank's management has expressed optimism about future growth opportunities, particularly in the Southeastern markets, despite recent losses in market share [9][10]. Growth Opportunities - Truist is expected to benefit from ongoing repricing in a higher interest rate environment, with higher-yielding loans being added to the portfolio [11]. - There are opportunities for Truist to expand lending as the economy recovers, and the bank is positioned to invest in non-banking growth opportunities, including capital markets and payments businesses [11]. Market Position - Truist has been losing organic market share in key markets such as Atlanta, Miami, and Nashville, while facing competition from smaller banks [9]. - Despite losing deposit share, Truist has maintained a strong efficiency ratio of around 59%, which compares favorably to peers [10].

Bill Gross became a legend by investing in bonds but has a strong opinion on one stock, too. -- Bill Gross (@real_bill_gross) February 26, 2024 Nearly one month later, Gross changed his tune about one regional bank stock. He singled out Truist Financial (TFC -0.06%) in an investment-outlook update posted on his website. Gross said about the stock, "Be exuberant in a month or so." It's now been a little over two months since Gross wrote those words, and Truist's share price is barely in positive territory ye ...

Core Insights - Truist Foundation announced over $4 million in philanthropic funding for 11 nonprofit organizations to pilot and scale innovative solutions in underserved communities [1][2] - The funding aims to address the gap in meaningful financial support for nonprofits, with many organizations facing challenges in growth and scaling their initiatives [1][2] Funding Details - The grants will support programs focused on small business development and career pathways in economically disadvantaged areas [2][4] - Notable organizations receiving funding include Project Equity, Georgia Resilience and Opportunity Fund, Greater Washington Community Foundation, and LiftFund, among others [4][8] Specific Initiatives - Project Equity will promote employee ownership as a wealth-building strategy in Atlanta, Birmingham, and Miami [4] - Georgia Resilience and Opportunity Fund will launch initiatives to enhance employment and financial well-being through participant storytelling [4] - Greater Washington Community Foundation will focus on economic mobility for the ALICE population in the D.C. region [4] Strategic Goals - Truist Foundation emphasizes the importance of corporate philanthropy in catalyzing effective solutions and scaling successful programs across different regions [6] - The foundation's approach includes flexibility in grantmaking to support innovative ideas that can be adapted to various community needs [2][6] Organizational Background - Truist Foundation, established in 2020, focuses on building career pathways and strengthening small businesses to promote economic mobility [7] - The foundation operates independently from Truist Financial Corporation and aims to inspire better lives and communities through strategic investments [7]

Group 1 - Truist Financial Corporation will redeem all $1,000,000,000 principal amount of its floating rate senior notes due June 9, 2025 on June 9, 2024 [1] - The redemption price will be 100% of the principal amount plus accrued and unpaid interest, with interest ceasing to accrue after the redemption date [2] - Truist Financial Corporation is a leading U.S. commercial bank with total assets of $535 billion as of March 31, 2024, and offers a wide range of financial services [3]

Core Insights - The BuildStrong Academy of Charlotte has been established to address the critical skilled labor shortage in the residential construction industry in Charlotte, North Carolina [1][2] - The program offers free training for individuals to acquire skills necessary for entry-level construction roles, resulting in industry-recognized certifications [3] Industry Context - The skilled construction labor shortage in Charlotte has reached critical levels, causing delays, increased costs, and hindering growth opportunities in the local economy [2] - The demand for construction projects continues to rise, highlighting the urgent need for skilled workers in the industry [2] Program Details - The training program lasts for 9 weeks at no cost to participants, culminating in certifications in carpentry and electrical work [3] - The first four weeks focus on basic construction knowledge and safety practices, including an OSHA 10-hour certificate, while the remaining five weeks are dedicated to trade-specific training [3] Organizational Support - The BuildStrong Academy is supported by various organizations, including The Fioretti Family Charitable Fund, The Home Depot Foundation, Truist Foundation, and DEWALT, emphasizing a collaborative effort to address the labor shortage [4][5] - The Home Depot Foundation has invested over $500 million in veteran causes and aims to invest an additional $50 million in training skilled tradespeople by 2030 [7] Goals and Impact - The overarching goal of HBI's programs is to train, credential, and place students in industry-related employment or further education, ultimately empowering individuals to become self-sufficient [11] - The BuildStrong Academy aims to provide scalable and sustainable training solutions for underprivileged young adults seeking education alternatives and living-wage jobs [4]

Truist Financial (TFC) remains well-positioned for revenue growth on the back of decent loan demand, high rates, strategic restructuring initiatives and fee income growth. However, elevated expenses and weakening asset quality remain headwinds. TFC's net interest income (NII) growth seems encouraging. While the metric declined in the first quarter of 2024, it experienced a five-year (ended 2023) compound annual growth rate (CAGR) of 16.9% driven by decent loan demand, merger deals and increasing rates. Its ...