Truist(TFC) - 2025 Q3 - Quarterly Results

Financial Highlights Q3 2025 highlights show increased net income, diluted EPS, return on average assets, and nonperforming loans, with decreased total deposits Summary Income Statement (Dollars in millions, except per share data) | Metric | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | | :------------------------------------- | :------------- | :------------ | :------------- | | Net interest income | $3,629 | $3,587 | $3,507 | | Noninterest income | $1,558 | $1,400 | $1,392 | | Noninterest expense | $3,014 | $2,986 | $2,906 | | Net income available to common shareholders | $1,348 | $1,180 | $1,157 | | Earnings per share-diluted from continuing operations | $1.04 | $0.90 | $0.87 | | Revenue - taxable equivalent | $5,238 | $5,035 | $4,947 | | Return on average assets | 1.06 % | 0.93 % | 0.96 % | | Return on average common shareholders' equity | 9.0 % | 8.1 % | 8.1 % | | Net interest margin - taxable equivalent | 3.01 % | 3.02 % | 3.01 % | | Efficiency ratio-adjusted | 55.7 % | 57.1 % | 56.4 % | Key Balance Sheet Metrics (Dollars in millions) | Metric | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | | :-------------------------- | :------------- | :------------ | :------------- | | Total Assets | $543,851 | $543,833 | $535,899 | | Loans and leases | $325,663 | $319,999 | $309,752 | | Deposits | $394,907 | $406,122 | $403,736 | | Common shareholders' equity | $59,739 | $58,933 | $58,728 | | Common equity tier 1 ratio | 11.0 % | 11.0 % | 11.3 % | | Liquidity coverage ratio | 110 % | 110 % | 111 % | Credit Quality Indicators | Metric | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | | :------------------------------------------------- | :------------- | :------------ | :------------- | | Nonperforming loans and leases as % of LHFI | 0.48 % | 0.39 % | 0.48 % | | Net charge-offs as % of average LHFI | 0.48 % | 0.51 % | 0.60 % | | Allowance for loan and lease losses as % of LHFI | 1.54 % | 1.54 % | 1.58 % | | Ratio of allowance for loan and lease losses to nonperforming LHFI | 3.2x | 3.9x | 3.3x | Consolidated Statements of Income Q3 2025 Consolidated Statements of Income show increased interest and noninterest income, driven by investment banking, resulting in higher net income Consolidated Statements of Income (Dollars in millions) | Item | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | Dec. 31, 2024 | Sept. 30, 2024 | | :------------------------------------------ | :------------- | :------------ | :------------- | :------------ | :------------- | | Total interest income | $6,286 | $6,154 | $5,988 | $6,179 | $6,352 | | Total interest expense | $2,657 | $2,567 | $2,481 | $2,589 | $2,750 | | Net Interest Income | $3,629 | $3,587 | $3,507 | $3,590 | $3,602 | | Provision for credit losses | $436 | $488 | $458 | $471 | $448 | | Total noninterest income | $1,558 | $1,400 | $1,392 | $1,470 | $1,483 | | Total noninterest expense | $3,014 | $2,986 | $2,906 | $3,035 | $2,927 | | Net income available to common shareholders | $1,348 | $1,180 | $1,157 | $1,216 | $1,336 | | Earnings per share-diluted | $1.04 | $0.90 | $0.87 | $0.91 | $0.99 | - Investment banking and trading income significantly increased to $323 million in Q3 2025 from $205 million in Q2 2025, contributing to the rise in total noninterest income[6] - Personnel expense, the largest component of noninterest expense, increased to $1,726 million in Q3 2025 from $1,653 million in Q2 2025[6] Consolidated Ending Balance Sheets - Five Quarter Trend Q3 2025 consolidated balance sheet shows stable total assets, increased loans and leases, decreased deposits, and higher shareholders' equity Consolidated Ending Balance Sheets (Dollars in millions) | Item | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | Dec. 31, 2024 | Sept. 30, 2024 | | :------------------------------------------ | :------------- | :------------ | :------------- | :------------ | :------------- | | Total assets | $543,851 | $543,833 | $535,899 | $531,176 | $523,434 | | Total loans and leases | $325,663 | $319,999 | $309,752 | $307,771 | $304,362 | | Total deposits | $394,907 | $406,122 | $403,736 | $390,524 | $387,778 | | Total liabilities | $478,205 | $478,993 | $471,264 | $467,497 | $457,738 | | Total shareholders' equity | $65,646 | $64,840 | $64,635 | $63,679 | $65,696 | | Noninterest-bearing deposits | $106,197 | $106,442 | $108,461 | $107,451 | $105,984 | | Interest checking deposits | $109,827 | $118,122 | $118,043 | $109,042 | $109,493 | | Money market and savings deposits | $135,931 | $133,891 | $136,777 | $137,307 | $134,349 | | Time deposits | $42,952 | $47,667 | $40,455 | $36,724 | $37,952 | - Commercial and industrial loans increased to $163,607 million in Q3 2025 from $162,273 million in Q2 2025[7] - Securities available for sale at fair value decreased to $65,522 million in Q3 2025 from $66,390 million in Q2 2025[7] Average Balances and Rates This section analyzes average balances and associated yields/rates for earning assets and interest-bearing liabilities Average Balances and Rates - Quarters This section details quarterly average balances and yields for earning assets and interest-bearing liabilities, showing increased assets and rates, with a minor decrease in net interest margin Average Balances and Rates - Quarters (Dollars in millions) | Item | Sept. 30, 2025 (Avg Balances / Yields/Rates) | June 30, 2025 (Avg Balances / Yields/Rates) | March 31, 2025 (Avg Balances / Yields/Rates) | | :------------------------------------------ | :------------------------------------------ | :------------------------------------------ | :------------------------------------------ | | Total earning assets | $486,006 / 5.18 % | $480,983 / 5.16 % | $476,214 / 5.12 % | | Total loans and leases | $322,070 / 6.00 % | $313,841 / 6.01 % | $307,528 / 5.97 % | | Total interest-bearing liabilities | $359,103 / 2.94 % | $354,251 / 2.91 % | $349,059 / 2.88 % | | Total interest-bearing deposits | $290,849 / 2.50 % | $293,797 / 2.52 % | $286,309 / 2.46 % | | Net interest income - taxable equivalent | $3,680 / 3.01 % | $3,635 / 3.02 % | $3,555 / 3.01 % | - The average interest-rate spread increased slightly to 2.24% in Q3 2025 from 2.25% in Q2 2025[9] Average Balances and Rates - Year-To-Date This section compares year-to-date average balances and rates for earning assets and interest-bearing liabilities, showing increased assets and loans with decreased yields, and increased liabilities with decreased rates, resulting in a stable net interest margin Average Balances and Rates - Year-to-Date (Dollars in millions) | Item | Sept. 30, 2025 (Avg Balances / Yields/Rates) | Sept. 30, 2024 (Avg Balances / Yields/Rates) | | :------------------------------------------ | :------------------------------------------ | :------------------------------------------ | | Total earning assets | $481,104 / 5.15 % | $472,237 / 5.38 % | | Total loans and leases | $314,533 / 5.99 % | $307,186 / 6.41 % | | Total interest-bearing liabilities | $354,175 / 2.91 % | $341,517 / 3.28 % | | Total interest-bearing deposits | $290,335 / 2.49 % | $279,609 / 2.86 % | | Net interest income - taxable equivalent | $10,870 / 3.01 % | $10,662 / 3.01 % | - The year-to-date average interest-rate spread for Sept. 30, 2025, was 2.24%, an increase from 2.10% for Sept. 30, 2024[11] Credit Quality This section overviews credit quality, detailing trends in nonperforming assets, past due loans, asset quality ratios, and the allowance for credit losses Nonperforming Assets This section outlines the trend in nonperforming assets, showing a Q3 2025 increase driven by a significant rise in nonaccrual commercial and industrial loans Nonperforming Assets (Dollars in millions) | Item | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | Dec. 31, 2024 | Sept. 30, 2024 | | :------------------------------------------ | :------------- | :------------ | :------------- | :------------ | :------------- | | Total nonaccrual loans and leases | $1,571 | $1,263 | $1,565 | $1,429 | $1,472 | | Commercial and industrial nonaccrual loans | $800 | $520 | $586 | $521 | $575 | | Total nonperforming assets | $1,629 | $1,316 | $1,618 | $1,477 | $1,528 | Loans 90 Days or More Past Due and Still Accruing This section details loans significantly past due but still accruing interest, showing a Q3 2025 increase driven by government-guaranteed residential mortgage loans Loans 90 Days or More Past Due and Still Accruing (Dollars in millions) | Item | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | Dec. 31, 2024 | Sept. 30, 2024 | | :------------------------------------------ | :------------- | :------------ | :------------- | :------------ | :------------- | | Total loans 90 days past due and still accruing | $584 | $546 | $616 | $587 | $518 | | Residential mortgage - government guaranteed | $438 | $424 | $468 | $430 | $394 | Loans 30-89 Days Past Due This section presents data on early-stage delinquencies (30-89 days past due loans), showing a Q3 2025 decrease in total loans but an increase in indirect auto loans Loans 30-89 Days Past Due (Dollars in millions) | Item | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | Dec. 31, 2024 | Sept. 30, 2024 | | :------------------------------------------ | :------------- | :------------ | :------------- | :------------ | :------------- | | Total loans 30-89 days past due | $1,743 | $1,811 | $1,619 | $1,949 | $1,769 | | Indirect auto loans 30-89 days past due | $620 | $582 | $484 | $622 | $596 | | Residential mortgage - nonguaranteed 30-89 days past due | $344 | $365 | $347 | $401 | $366 | Asset Quality Ratios This section presents key asset quality ratios, indicating stable nonperforming loans, decreased net charge-offs, and a reduced coverage ratio of allowance for loan losses to nonperforming loans Asset Quality Ratios | Ratio | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | Dec. 31, 2024 | Sept. 30, 2024 | | :------------------------------------------------- | :------------- | :------------ | :------------- | :------------ | :------------- | | Loans 30-89 days past due and still accruing as a % of loans and leases | 0.54 % | 0.57 % | 0.52 % | 0.64 % | 0.58 % | | Nonperforming loans and leases as a % of loans and leases | 0.48 % | 0.39 % | 0.48 % | 0.47 % | 0.48 % | | Net charge-offs as a % of average loans and leases | 0.48 % | 0.51 % | 0.60 % | 0.59 % | 0.55 % | | Allowance for loan and lease losses as a % of loans and leases | 1.54 % | 1.54 % | 1.58 % | 1.59 % | 1.60 % | | Ratio of allowance for loan and lease losses to nonperforming loans and leases | 3.2X | 3.9X | 3.3X | 3.4X | 3.3X | Asset Quality Ratios (Year-to-Date) | Ratio | Period Ended Sept. 30, 2025 | Period Ended Sept. 30, 2024 | | :------------------------------------------ | :-------------------------- | :-------------------------- | | Net charge-offs as a % of average loans and leases | 0.53 % | 0.59 % | | Ratio of allowance for loan and lease losses to net charge-offs | 3.0X | 2.7X | Allowance for Credit Losses This section details the allowance for credit losses, showing an increased Q3 2025 ending balance, with decreased provision for credit losses and total net charge-offs, particularly in commercial and industrial, and credit card categories Allowance for Credit Losses (Dollars in millions) | Item | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | Dec. 31, 2024 | Sept. 30, 2024 | | :------------------------------------------ | :------------- | :------------ | :------------- | :------------ | :------------- | | Beginning balance | $5,253 | $5,166 | $5,161 | $5,140 | $5,110 | | Provision for credit losses | $436 | $488 | $458 | $471 | $448 | | Total charge-offs | $(480) | $(506) | $(557) | $(553) | $(528) | | Total recoveries | $95 | $110 | $103 | $100 | $110 | | Net charge-offs | $(385) | $(396) | $(454) | $(453) | $(418) | | Ending balance | $5,305 | $5,253 | $5,166 | $5,161 | $5,140 | | Allowance for loan and lease losses | $4,988 | $4,899 | $4,870 | $4,857 | $4,842 | | Reserve for unfunded lending commitments (RUFC) | $317 | $354 | $296 | $304 | $298 | Net Charge-offs as a Percentage of Average Loans and Leases | Category | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | Dec. 31, 2024 | Sept. 30, 2024 | | :-------------------------- | :------------- | :------------ | :------------- | :------------ | :------------- | | Commercial and industrial | 0.19 % | 0.22 % | 0.20 % | 0.27 % | 0.18 % | | CRE | 0.44 % | 0.71 % | 1.29 % | 0.66 % | 1.12 % | | Indirect auto | 1.99 % | 1.63 % | 2.26 % | 2.33 % | 1.89 % | | Credit card | 3.13 % | 4.84 % | 5.21 % | 5.10 % | 5.04 % | | Total loans and leases | 0.48 % | 0.51 % | 0.60 % | 0.59 % | 0.55 % | Segment Financial Performance - Preliminary This section overviews preliminary financial performance across Consumer and Small Business Banking, Wholesale Banking, and Other, Treasury & Corporate segments Consumer and Small Business Banking The Consumer and Small Business Banking segment reported increased Q3 2025 net income, driven by growth in net interest and noninterest income, despite higher allocated provision for credit losses Consumer and Small Business Banking Performance (Dollars in millions) | Item | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | Dec. 31, 2024 | Sept. 30, 2024 | | :------------------------------------------ | :------------- | :------------ | :------------- | :------------ | :------------- | | Segment net interest income (expense) | $2,452 | $2,358 | $2,284 | $2,495 | $2,530 | | Noninterest income | $530 | $519 | $503 | $535 | $506 | | Allocated provision for credit losses | $400 | $384 | $328 | $347 | $353 | | Total noninterest expense | $1,704 | $1,699 | $1,663 | $1,741 | $1,663 | | Segment net income (loss) | $663 | $601 | $602 | $715 | $776 | Wholesale Banking The Wholesale Banking segment showed strong Q3 2025 performance with substantially increased net income, driven by a significant rise in noninterest income and a notable decrease in allocated provision for credit losses, while net interest income remained stable Wholesale Banking Performance (Dollars in millions) | Item | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | Dec. 31, 2024 | Sept. 30, 2024 | | :------------------------------------------ | :------------- | :------------ | :------------- | :------------ | :------------- | | Segment net interest income (expense) | $1,669 | $1,664 | $1,596 | $1,601 | $1,589 | | Noninterest income | $1,143 | $943 | $948 | $1,038 | $1,047 | | Allocated provision for credit losses | $36 | $104 | $131 | $123 | $96 | | Total noninterest expense | $1,319 | $1,334 | $1,308 | $1,303 | $1,240 | | Segment net income (loss) | $1,150 | $933 | $884 | $973 | $1,040 | Other, Treasury & Corporate The Other, Treasury & Corporate segment reported an increased Q3 2025 net loss, primarily due to higher negative net interest income and larger negative noninterest income Other, Treasury & Corporate Performance (Dollars in millions) | Item | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | Dec. 31, 2024 | Sept. 30, 2024 | | :------------------------------------------ | :------------- | :------------ | :------------- | :------------ | :------------- | | Segment net interest income (expense) | $(492) | $(435) | $(373) | $(506) | $(517) | | Noninterest income | $(115) | $(62) | $(59) | $(103) | $(70) | | Total noninterest expense | $(9) | $(47) | $(65) | $(9) | $24 | | Segment net income (loss) | $(361) | $(294) | $(225) | $(399) | $(377) | Total Truist Financial Corporation This section summarizes Truist Financial Corporation's consolidated performance, showing increased Q3 2025 net income from continuing operations, driven by growth in net interest and noninterest income, despite higher total noninterest expense Total Truist Financial Corporation Performance (Dollars in millions) | Item | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | Dec. 31, 2024 | Sept. 30, 2024 | | :------------------------------------------ | :------------- | :------------ | :------------- | :------------ | :------------- | | Net interest income (expense) | $3,629 | $3,587 | $3,507 | $3,590 | $3,602 | | Noninterest income | $1,558 | $1,400 | $1,392 | $1,470 | $1,483 | | Provision for credit losses | $436 | $488 | $458 | $471 | $448 | | Total noninterest expense | $3,014 | $2,986 | $2,906 | $3,035 | $2,927 | | Net Income from continuing operations | $1,452 | $1,240 | $1,261 | $1,289 | $1,439 | Capital Information - Five Quarter Trend This section analyzes five-quarter trends in key capital metrics, including capital ratios, risk-weighted assets, and tangible common equity Selected Capital Information This section presents key capital adequacy metrics, showing stable Common Equity Tier 1 and Leverage ratios in Q3 2025, alongside increased risk-weighted assets and common equity per share Selected Capital Information (Dollars in millions, except per share data) | Item | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | Dec. 31, 2024 | Sept. 30, 2024 | | :------------------------------------------ | :------------- | :------------ | :------------- | :------------ | :------------- | | Common equity tier 1 | $48,031 | $47,678 | $47,767 | $48,225 | $48,076 | | Total risk-weighted assets | $438,467 | $434,609 | $424,059 | $418,337 | $414,828 | | Common equity tier 1 ratio | 11.0 % | 11.0 % | 11.3 % | 11.5 % | 11.6 % | | Leverage capital ratio | 10.2 % | 10.2 % | 10.3 % | 10.5 % | 10.8 % | | Common equity per common share | $46.70 | $45.70 | $44.85 | $43.90 | $44.46 | Calculations of Tangible Common Equity and Related Measures This section details tangible common equity (non-GAAP) and related ratios, showing increased tangible common equity and per share amounts in Q3 2025, while its percentage of tangible assets remained stable Tangible Common Equity and Related Measures (Dollars in millions, except per share data) | Item | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | Dec. 31, 2024 | Sept. 30, 2024 | | :------------------------------------------ | :------------- | :------------ | :------------- | :------------ | :------------- | | Total shareholders' equity | $65,646 | $64,840 | $64,635 | $63,679 | $65,696 | | Intangible assets, net of deferred taxes | $18,076 | $18,143 | $18,203 | $18,274 | $18,350 | | Tangible common equity | $41,663 | $40,790 | $40,525 | $39,498 | $40,673 | | Tangible common equity per common share | $32.57 | $31.63 | $30.95 | $30.01 | $30.64 | | Tangible assets | $525,775 | $525,690 | $517,696 | $512,902 | $505,084 | | Tangible common equity as a percentage of tangible assets | 7.9 % | 7.8 % | 7.8 % | 7.7 % | 8.1 % | Selected Mortgage Banking Information & Additional Information This section provides selected mortgage banking data, including income components and servicing portfolio details, alongside additional operational information Mortgage Banking Income This section details mortgage banking income components, showing an overall Q3 2025 increase, driven by growth in residential and commercial mortgage income, primarily from improved production revenue and MSR valuation Mortgage Banking Income (Dollars in millions) | Item | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | Dec. 31, 2024 | Sept. 30, 2024 | | :------------------------------------------ | :------------- | :------------ | :------------- | :------------ | :------------- | | Total residential mortgage income | $105 | $98 | $102 | $103 | $98 | | Residential mortgage production revenue | $22 | $25 | $19 | $25 | $25 | | Net MSRs valuation (residential) | $9 | $1 | $(4) | $(5) | $(7) | | Total commercial mortgage income | $13 | $9 | $6 | $14 | $8 | | Commercial mortgage production revenue | $10 | $6 | $2 | $12 | $6 | | Total mortgage banking income | $118 | $107 | $108 | $117 | $106 | Other Mortgage Banking Information This section provides supplementary mortgage banking data, indicating decreased residential mortgage loan originations but an increased total mortgage servicing portfolio in Q3 2025 Other Mortgage Banking Information (Dollars in millions) | Item | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | Dec. 31, 2024 | Sept. 30, 2024 | | :------------------------------------------ | :------------- | :------------ | :------------- | :------------ | :------------- | | Residential mortgage loan originations | $4,743 | $5,855 | $3,626 | $4,745 | $3,726 | | Total servicing portfolio | $279,670 | $270,750 | $271,268 | $273,412 | $275,424 | | Loans serviced for others | $221,274 | $213,002 | $216,148 | $218,475 | $221,143 | | Bank-owned loans serviced | $58,396 | $57,748 | $55,120 | $54,937 | $54,281 | Additional Information This section provides supplementary operational and financial data, indicating decreased brokered deposits and ATMs, stable banking offices, and increased FTEs in Q3 2025 Additional Information (Dollars in millions, except per share data) | Item | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | Dec. 31, 2024 | Sept. 30, 2024 | | :------------------------------------------ | :------------- | :------------ | :------------- | :------------ | :------------- | | Brokered deposits | $28,423 | $30,008 | $27,585 | $28,085 | $27,671 | | Common stock prices (End of period) | $45.72 | $42.99 | $41.15 | $43.38 | $42.77 | | Banking offices | 1,927 | 1,927 | 1,928 | 1,928 | 1,930 | | ATMs | 2,837 | 2,847 | 2,861 | 2,901 | 2,928 | | FTEs | 38,534 | 37,996 | 37,529 | 37,661 | 37,867 | Selected Items This section outlines the financial impact of selected items on pre-tax income, after-tax income, and diluted EPS, highlighting recurring restructuring charges and significant gains/losses from prior asset sales Selected Items Impact (Dollars in millions, except per share data) | Description | Quarter Ended | Pre-Tax | After-Tax at Marginal Rate | Impact to Diluted EPS | | :------------------------------------------ | :------------ | :------ | :------------------------- | :-------------------- | | Restructuring charges | Sept. 30, 2025 | $(27) | $(21) | $(0.02) | | Restructuring charges | June 30, 2025 | $(28) | $(21) | $(0.02) | | Loss on sale of securities | June 30, 2025 | $(18) | $(13) | $(0.01) | | Restructuring charges | March 31, 2025 | $(38) | $(29) | $(0.02) | | Gain on sale of TIH | Sept. 30, 2024 | $36 | $16 | $0.01 | | Gain on sale of TIH | June 30, 2024 | $6,903 | $4,814 | $3.60 | | Loss on sale of securities | June 30, 2024 | $(6,650) | $(5,089) | $(3.80) |