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8-K

Truist Financial Corp (TFC)

8-K 2021-01-21 For: 2021-01-21
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_____________________________________________

Form 8-K

Current Report

_____________________________________________

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

January 21, 2021

Date of Report (Date of earliest event reported)

Truist Financial Corporation

(Exact name of registrant as specified in its charter)

_____________________________________________

North Carolina 1-10853 56-0939887
(State or other jurisdiction of incorporation) (Commission File Number) (I.R.S. Employer Identification No.)
214 North Tryon Street
--- --- ---
Charlotte, North Carolina 28202
(Address of principal executive offices) (Zip Code)

(336) 733-2000

(Registrant's telephone number, including area code)

_____________________________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol Name of each exchange on which registered
Common Stock, $5 par value TFC New York Stock Exchange
Depositary Shares each representing 1/1,000th interest in a share of Series F Non-Cumulative Perpetual Preferred Stock TFC.PF New York Stock Exchange
Depositary Shares each representing 1/1,000th interest in a share of Series G Non-Cumulative Perpetual Preferred Stock TFC.PG New York Stock Exchange
Depositary Shares each representing 1/1,000th interest in a share of Series H Non-Cumulative Perpetual Preferred Stock TFC.PH New York Stock Exchange
Depositary Shares each representing 1/4,000th interest in a share of Series I Perpetual Preferred Stock TFC.PI New York Stock Exchange
5.853% Fixed-to-Floating Rate Normal Preferred Purchase Securities each representing 1/100th interest in a share of Series J Perpetual Preferred Stock TFC.PJ New York Stock Exchange
Depositary Shares each representing 1/1,000th interest in a share of Series O Non-Cumulative Perpetual Preferred Stock TFC.PO New York Stock Exchange
Depositary Shares each representing 1/1,000th interest in a share of Series R Non-Cumulative Perpetual Preferred Stock TFC.PR New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

ITEM 2.02    Results of Operations and Financial Condition.

On January 21, 2021, Truist Financial Corporation ("Truist") issued a press release reporting fourth quarter 2020 results and posted on its website its fourth quarter 2020 Earnings Release, Quarterly Performance Summary and Earnings Release Presentation. The materials contain forward-looking statements regarding Truist and include cautionary language identifying important factors that could cause actual results to differ materially from those anticipated. The Earnings Release, Quarterly Performance Summary and Earnings Release Presentation are furnished as Exhibits 99.1, 99.2 and 99.3, respectively. Consequently, they are not deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section. Such materials may only be incorporated by reference into another filing under the Exchange Act or Securities Act of 1933 if such subsequent filing specifically references this Form 8-K. All information in the Earnings Release, Quarterly Performance Summary and Earnings Release Presentation speaks as of the date thereof, and Truist does not assume any obligation to update such information in the future.

ITEM 9.01    Financial Statements and Exhibits.

(d)    Exhibits

Exhibit No. Description of Exhibit
99.1 Earnings Release issued January 21, 2021.
99.2 Quarterly Performance Summary issued January 21, 2021.
99.3 Earnings Release Presentation issued January 21, 2021.
104 The cover page from this Current Report on Form 8-K, formatted in Inline XBRL.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

TRUIST FINANCIAL CORPORATION
(Registrant)
By: /s/ Cynthia B. Powell
Cynthia B. Powell
Executive Vice President and Corporate Controller
(Principal Accounting Officer)

Date: January 21, 2021

Document

logo-boxed1.jpg News Release
Contact:
Investors: Ryan Richards<br>980.465.5000 investors@truist.com Aaron Reeves<br>336.733.2874 investors@truist.com
Media: Shelley Miller<br>704.692.1518 media@truist.com

Truist Reports Fourth Quarter 2020 Results

Earnings of $1.2 billion, or $0.90 per diluted share

CHARLOTTE, N.C., (January 21, 2021) — Truist Financial Corporation (NYSE: TFC) today reported earnings for the fourth quarter of 2020.

Net income available to common shareholders was $1.2 billion, up 74.9 percent, compared to the fourth quarter last year. Earnings per diluted common share were $0.90, an increase of 20.0 percent compared with the same period last year. Results for the fourth quarter produced an annualized return on average assets (ROA) of 1.05 percent, an annualized return on average common shareholders' equity (ROCE) of 7.88 percent, and an annualized return on tangible common shareholders' equity (ROTCE) of 14.99 percent.

Adjusted net income available to common shareholders was $1.6 billion, or $1.18 per diluted share, excluding merger-related and restructuring charges of $308 million ($237 million after-tax) and incremental operating expenses related to the merger of $179 million ($138 million after-tax). Adjusted results produced an annualized ROA of 1.35 percent, an annualized ROCE of 10.25 percent and an annualized ROTCE of 19.03 percent.

"In a year of unprecedented challenges for our nation and the financial services industry, I’m extremely proud of our teammates and their rapid and sustained response to meet the needs of our clients and communities," said Chairman and Chief Executive Officer Kelly S. King. "Despite this difficult environment, our performance was very strong in 2020 and we closed the year on a high point with our best quarter yet in terms of financial performance.

"Our fourth quarter results reflect a significant decline in the provision for credit losses and strong results from many of our noninterest-income generating businesses. Our adjusted efficiency ratio improved to 55.9 percent and our adjusted return on tangible common equity was very strong at 19.03 percent.

"Adjusted net income was a record $1.6 billion, or $1.18 per share, due to a strong performance from our insurance business, and record results from investment banking and commercial real estate income, as well as a solid performance in net interest income in this challenging interest rate environment.

"We continue to invest in the future with our client-first strategy and the overall growth and diversification of our company. This includes the acquisition of five insurance brokerages in the fourth quarter, which are expected to boost insurance revenues by $110 million annually. We're also investing selectively in digital and agile capabilities, as well as investment banking, residential mortgage and wealth management talent to meet the evolving needs of our clients.

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"In the midst of a global health pandemic, our purpose to inspire and build better lives and communities guided us to take extraordinary measures in 2020 to support our teammates, clients, and communities. This included over $100 million in special COVID-19 support for teammates; payment relief assistance through more than 750,000 client loan accommodations; $50 million through Truist Cares to support front-line community needs and $78 million to support historically underrepresented communities; and helping approximately 80,000 companies secure nearly $13 billion in Paycheck Protection Program funding to save nearly three million jobs. We strengthened our commitment to social justice, moving past words to meaningful and measurable actions. We also made great progress on our integration efforts with a focus on a smooth transition for our clients. We look forward to continued progress on these fronts, while serving our clients and communities and continuing to stand for better in 2021 and beyond.”

Fourth Quarter 2020 Performance Highlights

•Earnings per diluted common share were $0.90

–Adjusted diluted earnings per share were $1.18, up $0.21 per share compared to third quarter 2020

–ROA was 1.05 percent; adjusted ROA was 1.35 percent

–ROCE was 7.88 percent; adjusted ROCE was 10.25 percent

–ROTCE was 14.99 percent; adjusted ROTCE was 19.03 percent

•Taxable-equivalent revenue was $5.7 billion, up 5.5 percent annualized compared to third quarter 2020

–Fee income ratio was 40.4 percent, compared to 39.7 percent for third quarter 2020

–Net interest margin was 3.08 percent, down two basis points from third quarter 2020

–Core net interest margin was 2.72 percent, unchanged from third quarter 2020

•Noninterest expense was $3.8 billion

–Noninterest expense includes $308 million of merger-related and restructuring charges and $179 million of incremental operating expenses related to the merger

–GAAP efficiency ratio was 67.8 percent, compared to 67.4 percent for third quarter 2020

–Adjusted efficiency ratio was 55.9 percent, compared to 57.3 percent for third quarter 2020

–Current quarter includes approximately $60 million of one-time expenses related to a job regrading initiative

•Asset quality ratios remain relatively stable reflecting diversification benefits of the merger and effective problem asset resolution

–Nonperforming assets were 0.27 percent of total assets, up 1 basis point from the prior quarter

–Loans 90 days or more past due and still accruing were 0.67 percent of loans held for investment, up from 0.39 percent for the prior quarter; increase was almost entirely in government guaranteed loans

–Excluding government guaranteed loans, loans 90 days or more past due and still accruing were 0.04 percent of loans held for investment

–Net charge-offs were 0.27 percent of average loans and leases, down 15 basis points compared to the prior quarter

–The allowance for loan and lease losses was 1.95 percent of loans and leases held for investment compared to 1.91 percent for third quarter 2020

–Provision for credit losses was $177 million for the fourth quarter of 2020, which includes a modest decrease in the allowance for credit losses due to the decision to exit a small ticket loan and lease portfolio

–The allowance for loan and lease loss coverage ratio was 4.39 times nonperforming loans and leases held for investment, versus 5.22 times in the prior quarter

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–Active client accommodations related to the CARES Act continued to decline; 97.2 percent and 90.6 percent of commercial and consumer clients that have exited accommodation programs, respectively, have either paid off their loans or are current on their loans

•Capital and liquidity levels remained strong

–Common equity tier 1 to risk-weighted assets was 10.0 percent

–Tier 1 risk-based capital was 12.1 percent

–Total risk-based capital was 14.5 percent

–Board of Directors authorized up to $2 billion share repurchase program

–Consolidated average LCR ratio was 113 percent

EARNINGS HIGHLIGHTS Change 4Q20 vs.
(dollars in millions, except per share data) 4Q20 3Q20 4Q19 3Q20 4Q19
Net income available to common shareholders $ 1,228 $ 1,068 $ 702 $ 160 $ 526
Diluted earnings per common share 0.90 0.79 0.75 0.11 0.15
Net interest income - taxable equivalent $ 3,394 $ 3,391 $ 2,252 $ 3 $ 1,142
Noninterest income 2,285 2,210 1,398 75 887
Total taxable-equivalent revenue $ 5,679 $ 5,601 $ 3,650 $ 78 $ 2,029
Less taxable-equivalent adjustment 28 29 25
Total revenue $ 5,651 $ 5,572 $ 3,625
Return on average assets 1.05 % 0.91 % 0.95 % 0.14 % 0.10 %
Return on average risk-weighted assets (current quarter is preliminary) 1.40 1.19 1.02 0.21 0.38
Return on average common shareholders' equity 7.88 6.87 7.33 1.01 0.55
Return on average tangible common shareholders' equity (1) 14.99 13.31 12.91 1.68 2.08
Net interest margin - taxable equivalent 3.08 3.10 3.41 (0.02) (0.33)

(1)    Excludes certain items as detailed in the non-GAAP reconciliations in the Quarterly Performance Summary.

Fourth Quarter 2020 compared to Third Quarter 2020

Total taxable-equivalent revenue was $5.7 billion for the fourth quarter of 2020, an increase of $78 million compared to the prior quarter. This was primarily driven by an increase of $75 million in noninterest income resulting from record performances in investment banking and trading income and commercial real-estate related income.

The net interest margin was 3.08 percent for the fourth quarter, down two basis points compared to the prior quarter. The decline in the net interest margin reflects lower purchase accounting accretion and lower yield on securities due to the impact of new investments at lower rates. These decreases were partially offset by lower interest expense on deposits primarily due to the impact of lower rates on deposits, higher loan yields resulting from accelerated fee income recognition on PPP loan payoffs and the recognition of interest previously deferred on loans granted an accommodation in connection with COVID-19 relief programs and lower balances at the Federal Reserve. Average earning assets increased $3.3 billion compared to the prior quarter. Average securities available for sale increased $22.2 billion, while average other earning assets decreased $11.9 billion and average total loans decreased $7.5 billion. The growth in the average earnings assets reflects the purchase of additional securities using excess liquidity. The investment in average securities improved the net interest margin compared to the yields available on excess reserves at the Federal Reserve. Average interest-bearing liabilities decreased $433 million compared to the third quarter of 2020. Average long-term debt decreased $635 million, while average short-term borrowings increased $284 million. The decrease in average interest-bearing liabilities was more than offset by an increase of $3.1 billion in average noninterest-bearing deposits compared to the third quarter of 2020.

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The yield on the total loan portfolio for the fourth quarter was 4.12 percent, up eight basis points compared to the prior quarter primarily due to accelerated fee recognition for PPP loan payoffs and the recognition of interest previously deferred on loans granted an accommodation in connection with COVID-19 relief programs, partially offset by lower accretion of the fair value mark on the merged loans. The yield on the average securities portfolio for the fourth quarter was 1.60 percent, down 37 basis points compared to the prior quarter primarily due to lower yields on new purchases.

The average cost of total deposits was 0.07 percent, down three basis points compared to the prior quarter, and the average cost of interest-bearing deposits was 0.11 percent, down four basis points compared to the prior quarter. The decrease in rates on deposits was attributable to deposit rate cuts and maturities of higher cost time-deposits. The average rate on long-term debt was 1.64 percent, up 16 basis points compared to the prior quarter. The increase in the rate on long-term debt was primarily due to interest expense associated with structured real estate transactions that were completed. The average rate on short-term borrowings was 0.77 percent, down eight basis points compared to the prior quarter.

The provision for credit losses was $177 million and net charge-offs were $205 million for the fourth quarter, compared to $421 million and $326 million, respectively, for the prior quarter. The decrease in the provision for credit losses was primarily due to lower net charge-offs and a decrease in loans and leases held for investment, including the transfer of $1.0 billion to held for sale due to the decision to exit a small ticket loan and lease portfolio.

Noninterest income was $2.3 billion, an increase of $75 million compared to the prior quarter. The prior quarter included $104 million of securities gains. Excluding securities gains, noninterest income increased $179 million compared to the prior quarter. Commercial real-estate related income increased $68 million primarily due to an increase of $37 million in fees from the completion of structured real estate transactions coupled with $24 million from strong commercial mortgage production and sales activity. Investment banking and trading revenues increased $64 million due to an increase in trading income of $41 million partially due to a recovery of CVA losses, as well as improved trading profits, and $23 million from higher investment banking revenues primarily due to strong M&A and loan syndication fees. Insurance income increased $27 million primarily due to higher new business and acquisitions. Lending related fees increased $28 million primarily due to gains from early payoffs of certain finance-related lease transactions. Residential mortgage income decreased $28 million primarily due to a decrease of $109 million in production-related revenues largely a result of reduced margins and seasonally lower volumes partially offset by an increase of $81 million in the valuation of mortgage servicing rights.

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Noninterest expense was $3.8 billion for the fourth quarter, up $78 million compared to the prior quarter. Merger-related and restructuring charges increased $72 million primarily due to higher facilities impairments and severance charges, partially offset by lower professional services expenses. Incremental operating expenses related to the merger increased $27 million primarily due to higher professional services expenses for process and system design in connection with merger integration. The prior quarter also included a $50 million charitable contribution to the Truist Charitable Fund. Excluding the items mentioned above and changes in amortization of intangibles, adjusted noninterest expense was up $27 million. Personnel expense increased $50 million compared to the third quarter of 2020 primarily due to higher incentives resulting from strong production and job regrading, partially offset by lower equity-based compensation due to expense for retirement eligible teammates being fully expensed by the end of the third quarter. During the fourth quarter the company completed a post-merger reevaluation of job grades and recorded additional salaries, incentives and equity-based compensation expenses. Approximately $60 million of the job regrading personnel expenses were one-time in nature. Professional fees and outside processing expenses increased $70 million, which includes an increase of $25 million related to merger activities. Excluding the merger-related increase, the remaining increase is primarily related to professional services for strategic technology projects. Net occupancy expense decreased $26 million primarily due to lower rent expense resulting from the final valuation of certain acquired leases and decreases from vacated properties, as well as lower costs for related janitorial cleaning and supplies. Marketing and customer development expenses decreased $17 million primarily due to lower advertising and public relations expense. Other expense decreased $63 million primarily due to the $50 million charitable contribution made in the prior quarter.

The provision for income taxes was $311 million for the fourth quarter, compared to $255 million for the prior quarter. The effective tax rate for the fourth quarter was 19.0 percent, compared to 18.3 percent for the prior quarter. The higher effective tax rate was primarily due to higher pre-tax income.

Fourth Quarter 2020 compared to Fourth Quarter 2019

Total taxable-equivalent revenues were $5.7 billion for the fourth quarter of 2020, an increase of $2.0 billion compared to the earlier quarter, reflecting an increase of $1.1 billion in taxable-equivalent net interest income and an increase of $887 million in noninterest income.

Net interest margin was 3.08 percent, down 33 basis points compared to the earlier quarter. Average earning assets increased $175.6 billion. The increase in average earning assets reflects a $114.5 billion increase in average total loans and leases and a $41.4 billion increase in average securities. Average other earning assets increased $17.5 billion primarily due to higher interest-earning balances at the Federal Reserve. Average interest-bearing liabilities increased $107.3 billion compared to the earlier quarter. Average interest-bearing deposits increased $101.9 billion, average long-term debt increased $10.4 billion and average short-term borrowings decreased $5.0 billion. The significant increases in earning assets and liabilities are primarily due to the merger, as well as impacts from the COVID-19 pandemic and the resulting government stimulus programs.

The yield on the total loan portfolio for the fourth quarter of 2020 was 4.12 percent, down 79 basis points compared to the earlier quarter, reflecting the impact of rate decreases, partially offset by purchase accounting accretion from merged loans. The yield on the average securities portfolio was 1.60 percent, down 105 basis points compared to the earlier quarter primarily due to lower yields on new purchases.

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The average cost of total deposits was 0.07 percent, down 50 basis points compared to the earlier quarter, and the average cost of interest-bearing deposits was 0.11 percent, down 71 basis points compared to the earlier quarter. The average rate on short-term borrowings was 0.77 percent, down 138 basis points compared to the earlier quarter. The average rate on long-term debt was 1.64 percent, down 128 basis points compared to the earlier quarter. The lower rates on interest-bearing liabilities reflect the lower rate environment. The lower rates on long-term debt also reflect the amortization of the fair value mark on the assumed debt and the issuance of new long-term debt.

The provision for credit losses was $177 million, compared to $171 million for the earlier quarter. Net charge-offs for the fourth quarter of 2020 totaled $205 million compared to $192 million in the earlier quarter. The net charge-off rate for the current quarter of 0.27 percent was down 13 basis points compared to the fourth quarter of 2019.

Noninterest income for the fourth quarter of 2020 increased $887 million compared to the earlier quarter. The earlier quarter included a loss of $116 million from the sale of securities. Excluding the securities losses, noninterest income increased $771 million, with nearly all categories of noninterest income being impacted by the merger. Insurance income increased $36 million due to strong production and premium growth, as well as acquisitions. Investment banking and trading income, commercial real estate related income, wealth management income and residential mortgage banking income all had improved performance compared to the combined levels from the earlier quarter. Service charges on deposits has continued to rebound, but remained below 2019 combined levels due to reduced overdraft incident rates.

Noninterest expense for the fourth quarter of 2020 was up $1.3 billion compared to the earlier quarter. Merger-related and restructuring charges and other incremental operating expenses related to the merger increased $85 million and $78 million, respectively. Excluding the merger-related items mentioned above and the impact of an increase of $101 million of amortization expense for intangibles, adjusted noninterest expense was up $994 million primarily reflecting the impact of the merger.

The provision for income taxes was $311 million for the fourth quarter of 2020, compared to $153 million for the earlier quarter. This produced an effective tax rate for the fourth quarter of 2020 of 19.0 percent, compared to 17.4 percent for the earlier quarter. The higher effective tax rate is primarily due to higher pre-tax income.

LOANS AND LEASES
(dollars in millions)
Average balances 4Q20 3Q20 Change % Change
(annualized)
Commercial:
Commercial and industrial $ 139,223 $ 143,452 $ (4,229) (11.7) %
CRE 27,030 27,761 (731) (10.5)
Commercial construction 6,616 6,861 (245) (14.2)
Lease financing 5,401 5,626 (225) (15.9)
Total commercial 178,270 183,700 (5,430) (11.8)
Consumer:
Residential mortgage 48,847 51,500 (2,653) (20.5)
Residential home equity and direct 26,327 26,726 (399) (5.9)
Indirect auto 25,788 24,732 1,056 17.0
Indirect other 11,291 11,530 (239) (8.2)
Student 7,519 7,446 73 3.9
Total consumer 119,772 121,934 (2,162) (7.1)
Credit card 4,818 4,810 8 0.7
Total loans and leases held for investment $ 302,860 $ 310,444 $ (7,584) (9.7)
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Average loans and leases held for investment for the fourth quarter of 2020 were $302.9 billion, down $7.6 billion compared to the third quarter of 2020.

Average commercial loans decreased $5.4 billion, primarily in commercial and industrial loans due to paydowns on commercial lines. This was partially offset by growth in mortgage warehouse lending, dealer floor plan lending and governmental finance loans. The carrying value of PPP loans was down $1.4 billion compared to September 30, 2020, which resulted in a decline of $304 million in average PPP loans compared to the average for the third quarter of 2020. In addition, average commercial loans were impacted by the transfer of $1.0 billion of certain loans and leases to held for sale, which resulted in a decline in the average balance of $323 million compared to the third quarter of 2020.

Average consumer loans decreased $2.2 billion primarily due to seasonally lower loan production and refinance activity resulting in a decline in residential mortgages and residential home equity and direct loans. This was partially offset by an increase in indirect auto loans.

DEPOSITS
(dollars in millions)
Average balances 4Q20 3Q20 Change % Change
(annualized)
Noninterest-bearing deposits $ 127,103 $ 123,966 $ 3,137 10.1 %
Interest checking 99,866 96,707 3,159 13.0
Money market and savings 124,692 123,598 1,094 3.5
Time deposits 23,605 27,940 (4,335) (61.7)
Total deposits $ 375,266 $ 372,211 $ 3,055 3.3

Average deposits for the fourth quarter of 2020 were $375.3 billion, an increase of $3.1 billion compared to the prior quarter. Average noninterest-bearing and interest checking deposit growth was strong for the fourth quarter of 2020 driven by anticipated seasonal inflows in addition to continued growth resulting from pandemic-related client behavior.

Average time deposits decreased primarily due to maturity of wholesale negotiable certificates of deposit and higher-cost personal and business accounts.

Average noninterest-bearing deposits represented 33.9 percent of total deposits for the fourth quarter of 2020, compared to 33.3 percent for the prior quarter. The cost of average total deposits was 0.07 percent for the fourth quarter, down three basis points compared to the prior quarter. The cost of average interest-bearing deposits was 0.11 percent for the fourth quarter, down four basis points compared to the prior quarter.

SEGMENT RESULTS Change 4Q20 vs.
(dollars in millions)
Segment Net Income 4Q20 3Q20 4Q19 3Q20 4Q19
Consumer Banking and Wealth $ 854 $ 816 $ 443 $ 38 $ 411
Corporate and Commercial Banking 918 584 518 334 400
Insurance Holdings 99 77 59 22 40
Other, Treasury & Corporate (541) (336) (294) (205) (247)
Total net income $ 1,330 $ 1,141 $ 726 $ 189 $ 604
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Fourth Quarter 2020 compared to Third Quarter 2020

Consumer Banking and Wealth ("CB&W")

CB&W serves individuals and small business clients by offering a variety of loan and deposit products, payment services, bankcard products and other financial services by connecting clients to a wide range of financial products and services. CB&W includes Retail Community Bank, which serves credit card, debit card, deposit and lending products to retail, premier and small business clients, delivering on the banking needs of all clients through a network of branches, ATMs, and contact centers. CB&W also includes Dealer Retail Services, which originates loans on an indirect basis to individuals for the purchase of automobiles, boats and recreational vehicles. Additionally, CB&W includes National Consumer Finance & Payments, which provides a comprehensive set of technology-enabled lending solutions to individuals and small businesses through several national channels, as well as merchant services and payment processing solutions to business clients. CB&W also includes Mortgage Banking, which offers residential mortgage products nationally through its retail and correspondent channels, the internet and by telephone. These products are either sold in the secondary market, primarily with servicing rights retained, or held in the Company’s loan portfolio. Mortgage Banking also services loans for other investors, in addition to loans held in the Company’s loan portfolio. Mortgage Banking also includes Mortgage Warehouse Lending, which provides short-term lending solutions to finance first-lien residential mortgage LHFS by independent mortgage companies. Wealth delivers investment management, financial planning, banking, fiduciary services and related solutions to institutions, affluent and high net worth individuals and families, with financial expertise and industry-specific insights in the medical, legal, sports and entertainment industries.

CB&W net income was $854 million for the fourth quarter of 2020, an increase of $38 million compared to the prior quarter. Segment net interest income was relatively flat. Noninterest income was relatively flat due to higher service charges on deposits, proceeds from the sale of institutional 401(k) investment advisory services business, higher client activity and market valuation increasing wealth fees, offset by seasonally lower residential mortgage income. The allocated provision for credit losses decreased $65 million primarily due to a reduction in expected losses in the residential mortgage portfolio. Noninterest expense increased $21 million primarily due to higher operating charge-offs, merger-related expenses, equipment expenses, professional service fees and loan related expenses due to increased client activity, partially offset by lower software and marketing expenses.

Average loans held for investment decreased $1.5 billion compared to the prior quarter primarily due to lower residential mortgage and home equity lending, partially offset by increased mortgage warehouse and indirect auto lending. Average total deposits increased $4.0 billion compared to the prior quarter, primarily due to reduced consumer spending, various stimulus programs, and pandemic-related client behavior.

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Corporate and Commercial Banking ("C&CB")

C&CB serves large, medium and small business clients by offering a variety of loan and deposit products and connecting clients to the combined organization’s broad array of financial services. C&CB includes Corporate and Investment Banking (“CIB”), which delivers a comprehensive range of strategic advisory, capital raising, risk management, financing, liquidity and investment solutions to both public and private companies in the C&CB segment and Wealth. Additionally, C&CB includes Commercial Community Banking, which offers an array of traditional banking products, including lending, cash management and investment banking to commercial clients via CIB. C&CB also includes Commercial Real Estate, which provides a range of credit and deposit services as well as fee-based product offerings to privately held developers, operators, and investors in commercial real estate properties. C&CB also includes Grandbridge Real Estate Capital, which is a fully integrated commercial mortgage banking company that originates commercial and multi-family real estate loans, services loan portfolios and provides asset and portfolio management as well as real estate brokerage services. Treasury Solutions, within C&CB, provides business clients across the organization with services required to manage their payments and receipts, combined with the ability to manage and optimize their deposits across all aspects of their business.

C&CB net income was $918 million for the fourth quarter of 2020, an increase of $334 million compared to the prior quarter. Segment net interest income was relatively flat. Noninterest income increased $180 million driven by higher commercial real estate related income, investment banking and trading income partially due to a recovery of CVA losses, lending related fees and mark to market gains on SBIC funds. The allocated provision for credit losses decreased $251 million as a result of a larger provision build in the third quarter. Noninterest expense was relatively flat due to lower operating charge-offs and operating lease depreciation, offset by higher merger-related expenses, professional service fees and occupancy expenses.

Average loans held for investment decreased $6.0 billion compared to the prior quarter due primarily to paydowns on drawn revolvers throughout the quarter. Average total deposits decreased $359 million compared to the prior quarter primarily due to corporate clients utilizing cash for revolver repayments and optimizing deposit return, partially offset by seasonally higher balances from commercial clients.

Insurance Holdings ("IH")

Truist’s IH segment is one of the largest insurance brokers in the world, providing property and casualty, employee benefits and life insurance to businesses and individuals. It also provides small business and corporate services, such as workers compensation and professional liability, as well as surety coverage and title insurance. In addition, IH provides premium financing for property and casualty insurance.

IH net income was $99 million for the fourth quarter of 2020, an increase of $22 million compared to the prior quarter. Noninterest income increased $38 million primarily due to seasonality in property and casualty and other insurance commissions, as well as acquisitions. Noninterest expense increased $5 million primarily due to seasonally higher performance-based incentives and increased merger-related charges, partially offset by lower operating charge-offs.

Other, Treasury & Corporate ("OT&C")

Net income in OT&C can vary due to the changing needs of the Corporation, including the size of the investment portfolio, the need for wholesale funding and variability associated with derivatives used to hedge the balance sheet.

  • 9 -

OT&C generated a net loss of $541 million for the fourth quarter of 2020, compared to a net loss of $336 million for the prior quarter. Segment net interest income was relatively flat. Noninterest income decreased $147 million primarily due to a decline in securities gains and other investment income from the prior quarter. The allocated provision for credit losses increased $70 million due to a reduction in the reserve for unfunded commitments in the prior quarter. Noninterest expense increased $54 million primarily due to higher IT professional service fees, merger-related charges and incentive one-time expenses related to the job regrading, partially offset by lower donations expense related to a contribution made in the prior quarter. The benefit for income taxes increased $68 million primarily due to a higher pre-tax loss in the current quarter.

Fourth Quarter 2020 compared to Fourth Quarter 2019

Consumer Banking and Wealth

CB&W net income was $854 million for the fourth quarter of 2020, an increase of $411 million compared to the earlier quarter. Segment net interest income increased $799 million primarily due to the merger. Noninterest income increased $342 million, due to the merger and higher residential mortgage production income as a result of the lower rate environment driving mortgage production through refinance activity, partially offset by lower residential mortgage servicing income driven by higher prepayment as a result of the lower rate environment. The allocated provision for credit losses decreased $29 million primarily due a decrease in expected losses in the residential mortgage portfolio, as well as a decline in chargeoffs in certain other consumer portfolios. Noninterest expense increased $637 million primarily due to operating expenses and amortization of intangibles related to the merger in the current quarter.

Corporate and Commercial Banking

C&CB net income was $918 million for the fourth quarter of 2020, an increase of $400 million compared to the earlier quarter. Segment net interest income increased $448 million primarily due to the merger. Noninterest income increased $377 million also primarily due to the merger. The allocated provision for credit losses increased $43 million primarily due to the merger as well as increased economic stress associated with the pandemic. Noninterest expense increased $271 million primarily due to operating expenses and amortization of intangibles related to the merger in the current quarter.

Insurance Holdings

IH net income was $99 million for the fourth quarter of 2020, an increase of $40 million compared to the earlier quarter. Noninterest income increased $26 million primarily due to higher property and casualty insurance production, as well as acquisitions. Noninterest expense decreased $30 million primarily due to lower restructuring charges, travel and marketing expenses, partially offset by higher performance-based incentives and other personnel expenses.

Other, Treasury & Corporate

OT&C generated a net loss of $541 million in the fourth quarter of 2020, compared to a net loss of $294 million in the earlier quarter. Segment net interest income decreased $103 million primarily due to a decline in funding charges on assets to other segments relative to the funding credit provided on liabilities. Noninterest income increased $142 million primarily due to the loss on sale of securities in the earlier quarter. The allocated provision for credit losses was relatively flat compared to the earlier quarter. Noninterest expense increased $380 million primarily due to operating expenses related to the merger and higher merger-related charges in the current quarter. The benefit for income taxes increased $86 million primarily due to a higher pre-tax loss in the current quarter.

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CAPITAL RATIOS 4Q20 3Q20 2Q20 1Q20 4Q19
Risk-based: (preliminary)
Common equity Tier 1 10.0 % 10.0 % 9.7 % 9.3 % 9.5 %
Tier 1 12.1 12.2 11.6 10.5 10.8
Total 14.5 14.6 14.0 12.7 12.6
Leverage (1) 9.6 9.6 9.0 9.0 14.7
Supplementary leverage (2) 8.7 8.9 8.5 7.8 7.9

(1)The leverage ratio is calculated using end of period Tier 1 capital and quarterly average tangible assets. The timing of the merger impacted the result for the fourth quarter of 2019. The estimated leverage ratio for the fourth quarter of 2019 using a full quarterly average tangible assets was 9.3 percent.

(2)Truist became subject to the supplementary leverage ratio as of January 1, 2020. The December 31, 2019 measure was an estimate based on a full quarter of average tangible assets in the denominator.

Capital ratios remained strong compared to the regulatory levels for well capitalized banks. Truist declared common dividends of $0.450 per share during the fourth quarter of 2020. The dividend and total payout ratios for the fourth quarter of 2020 were 49.4 percent.

In December 2020, Truist Board of Directors authorized the repurchase of up to $2 billion of the company’s common stock beginning in the first quarter of 2021, as well as certain other actions to optimize Truist’s capital position. Management’s intention is to maintain an approximate 10 percent Common Equity Tier 1 ratio after considering strategic actions such as non-bank acquisitions or stock repurchases, as well as changes in risk-weighted assets. Any stock repurchase activity will be informed by economic and regulatory considerations as well as Truist’s capital position, earnings outlook, and capital deployment priorities.

As of January 1, 2020, Truist became subject to Category III reduced LCR. Truist's average LCR was approximately 113 percent for the three months ended December 31, 2020, compared to the regulatory minimum of 100 percent. Truist continues to maintain a strong liquidity position and is prepared to meet the funding needs of clients. In addition, the liquid asset buffer, which is defined as high quality unencumbered liquid assets as a percentage of total assets, was 20.2 percent at December 31, 2020.

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ASSET QUALITY
(dollars in millions) 4Q20 3Q20 2Q20 1Q20 4Q19
Total nonperforming assets $ 1,387 $ 1,314 $ 1,252 $ 1,177 $ 684
Total performing TDRs 1,361 1,217 1,107 1,079 980
Total loans 90 days past due and still accruing 2,008 1,197 1,072 1,748 1,994
Total loans 30-89 days past due 2,220 2,148 1,901 2,374 2,213
Nonperforming loans and leases as a percentage of loans and leases held for investment 0.44 % 0.37 % 0.35 % 0.32 % 0.15 %
Nonperforming loans and leases as a percentage of loans and leases, including loans held for sale 0.44 0.40 0.37 0.33 0.18
Nonperforming assets as a percentage of total assets 0.27 0.26 0.25 0.23 0.14
Loans 30-89 days past due and still accruing as a percentage of loans and leases 0.74 0.70 0.60 0.74 0.74
Loans 90 days or more past due and still accruing as a percentage of loans and leases 0.67 0.39 0.34 0.55 0.66
Loans 90 days or more past due and still accruing as a percentage of loans and leases, excluding PPP, other government guaranteed and PCI 0.04 0.03 0.04 0.04 0.03
Allowance for loan and lease losses as a percentage of loans and leases held for investment 1.95 1.91 1.81 1.63 0.52
Net charge-offs as a percentage of average loans and leases, annualized 0.27 0.42 0.39 0.36 0.40
Ratio of allowance for loan and lease losses to net charge-offs, annualized 7.15x 4.52x 4.49x 4.76x 2.03x
Ratio of allowance for loan and lease losses to nonperforming loans and leases held for investment 4.39x 5.22x 5.24x 5.04x 3.41x

Nonperforming assets totaled $1.4 billion at December 31, 2020, up $73 million compared to September 30, 2020. Nonperforming loans and leases represented 0.44 percent of total loans and leases, up four basis points compared to September 30, 2020. Nonperforming loans and leases held for investment increased $206 million, primarily in mortgage loans due to loans exiting certain accommodation programs related to the CARES Act and seasonality, while nonperforming loans held for sale declined $125 million as the majority of the these loans were sold during the quarter. Performing TDRs were up $144 million during the fourth quarter primarily in lease financing and indirect auto loans.

Loans 90 days or more past due and still accruing totaled $2.0 billion at December 31, 2020, up $811 million compared to the prior quarter. The increase was primarily in government guaranteed student loans as borrowers emerge from forbearance periods that were provided in connection with COVID-19 relief programs. In addition, residential mortgage loans 90 days or more past due and still accruing increased primarily due to the repurchase of delinquent government guaranteed loans. The ratio of loans 90 days or more past due and still accruing as a percentage of loans and leases was 0.67 percent at December 31, 2020, up 28 basis points from the prior quarter. Excluding government guaranteed loans, the ratio of loans 90 days or more past due and still accruing as a percentage of loans and leases was 0.04 percent at December 31, 2020, up one basis point from September 30, 2020.

Loans 30-89 days past due and still accruing totaled $2.2 billion at December 31, 2020, up $72 million compared to the prior quarter. Indirect automobile loans increased $174 million due to seasonality and the expiration of certain forbearance periods that were provided in connection with COVID-19 relief programs. This was partially offset by a decline of $72 million for commercial and industrial loans. The ratio of loans 30-89 days past due and still accruing as a percentage of loans and leases was 0.74 percent at December 31, 2020, up four basis points from the prior quarter.

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Net charge-offs during the fourth quarter totaled $205 million, down $121 million compared to the prior quarter. As a percentage of average loans and leases, annualized net charge-offs were 0.27 percent, down 15 basis points compared to the prior quarter. Current quarter net charge-offs included $27 million of write-downs on the transfer of loans to held-for sale. Prior quarter net charge-offs included $97 million of charge-offs related to the implementation of CECL, which required a gross-up of loan carrying values in connection with the establishment of an allowance on PCD loans.

The allowance for credit losses was $6.2 billion, down $30 million compared to the prior quarter. The allowance for credit losses includes $5.8 billion for loans and leases and $364 million for the reserve for unfunded commitments. As of December 31, 2020, the allowance for loan and lease losses was 1.95 percent of loans and leases held for investment.

The allowance for loan and lease losses was 4.39 times nonperforming loans and leases held for investment, compared to 5.22 times at September 30, 2020. At December 31, 2020, the allowance for loan and lease losses was 7.15 times annualized net charge-offs, compared to 4.52 times at September 30, 2020.

Earnings Presentation and Quarterly Performance Summary

To listen to Truist's live fourth quarter 2020 earnings conference call at 8 a.m. ET today, please call 866-519-2796 and enter the participant code 391805. A presentation will be used during the earnings conference call and is available on our website at https://ir.truist.com/events-and-presentation. Replays of the conference call will be available for 30 days by dialing 888-203-1112 (access code 391805).

The presentation, including an appendix reconciling non-GAAP disclosures, and Truist's Fourth Quarter 2020 Quarterly Performance Summary, which contains detailed financial schedules, is available at https://ir.truist.com/earnings.

About Truist

Truist Financial Corporation is a purpose-driven financial services company committed to inspire and build better lives and communities. With the combined history of BB&T and SunTrust, Truist has leading market share in many high-growth markets in the country. The company offers a wide range of services including retail, small business and commercial banking; asset management; capital markets; commercial real estate; corporate and institutional banking; insurance; mortgage; payments; specialized lending; and wealth management. Headquartered in Charlotte, North Carolina, Truist is the sixth-largest commercial bank in the U.S. with total assets of $509 billion as of December 31, 2020. Truist Bank, Member FDIC. Learn more at Truist.com.

#-#-#

Capital ratios and return on risk-weighted assets are preliminary.

This news release contains financial information and performance measures determined by methods other than in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Truist's management uses these "non-GAAP" measures in their analysis of the Corporation's performance and the efficiency of its operations. Management believes these non-GAAP measures provide a greater understanding of ongoing operations, enhance comparability of results with prior periods and demonstrate the effects of significant items in the current period. The Corporation believes a meaningful analysis of its financial performance requires an understanding of the factors underlying that performance. Truist's management believes investors may find these non-GAAP financial measures useful. These disclosures should not be viewed as a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Below is a listing of the types of non-GAAP measures used in this news release:

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• 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.
• 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.
• Core net interest margin is a non-GAAP measure that adjusts net interest margin to exclude the impact of purchase accounting. The purchase accounting marks and related amortization for a) securities acquired from the FDIC in the Colonial Bank acquisition and b) loans, deposits and long-term debt from SunTrust, Susquehanna, National Penn and Colonial Bank are excluded to approximate the yields paid by clients. Interest income for PCI loans adjusts the accretion, net of interest reversals, which approximates the interest received from the client. Truist's management believes the adjustments to the calculation of net interest margin for certain assets and liabilities acquired provide investors with useful information related to the performance of Truist's earning assets.
• 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.
• The adjusted performance ratios, including adjusted return on average assets, adjusted return on average common shareholders’ equity and adjusted return on average tangible common shareholders’ equity, are non-GAAP in that they exclude merger-related and restructuring charges, selected items and, in the case of return on average tangible common shareholders' equity, amortization of intangible assets. Truist's management uses these measures in their analysis of the Corporation's performance. Truist's management believes these measures provide 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.
• EBITDA is a non-GAAP measurement of operating profitability that is calculated by adding back interest, taxes, depreciation and amortization to net income. Truist's management also adds back merger-related and restructuring charges, incremental operating expenses related to the merger and other selected items. Truist's management uses this measure in its analysis of the Corporation's Insurance Holdings segment. 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.
• 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.

A reconciliation of these non-GAAP measures to the most directly comparable GAAP measure is included in the appendix to Truist's Fourth Quarter 2020 Earnings Presentation, which is available at https://ir.truist.com/earnings.

This news release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, regarding the financial condition, results of operations, business plans and the future performance of Truist. Words such as "anticipates," "believes," "estimates," "expects," "forecasts," "intends," "plans," "projects," "may," "will," "should," “would," "could" and other similar expressions are intended to identify these forward-looking statements.

Forward-looking statements are not based on historical facts but instead represent management's expectations and assumptions regarding Truist's business, the economy and other future conditions. Such statements involve inherent uncertainties, risks and changes in circumstances that are difficult to predict. As such, Truist’s actual results may differ materially from those contemplated by forward-looking statements. While there can be no assurance that any list of risks and uncertainties or risk factors is complete, important factors that could cause actual results to differ materially from those contemplated by forward-looking statements include the following, without limitation, as well as the risks and uncertainties more fully discussed under Item 1A-Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2019, Item 1A-Risk Factors in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2020 and in Truist's subsequent filings with the Securities and Exchange Commission:

• risks and uncertainties relating to the merger of BB&T and SunTrust ("Merger"), including the ability to successfully integrate the companies or to realize the anticipated benefits of the Merger;
• expenses relating to the Merger and integration of heritage BB&T and heritage SunTrust;
• deposit attrition, client loss or revenue loss following completed mergers or acquisitions may be greater than anticipated;
• changes in the interest rate environment, including the replacement of LIBOR as an interest rate benchmark, which could adversely affect Truist’s revenue and expenses, the value of assets and obligations, and the availability and cost of capital, cash flows, and liquidity;
• volatility in mortgage production and servicing revenues, and changes in carrying values of Truist’s servicing assets and mortgages held for sale due to changes in interest rates;
• management’s ability to effectively manage credit risk;
• inability to access short-term funding or liquidity;
• loss of client deposits, which could increase Truist’s funding costs;
• changes in Truist’s credit ratings, which could increase the cost of funding or limit access to capital markets;
• additional capital and liquidity requirements;
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• regulatory matters, litigation or other legal actions, which may result in, among other things, costs, fines, penalties, restrictions on Truist’s business activities, reputational harm, or other adverse consequences;
• risks related to originating and selling mortgages, including repurchase and indemnity demands from purchasers related to representations and warranties on loans sold, which could result in an increase in the amount of losses for loan repurchases;
• failure to execute on strategic or operational plans, including the ability to successfully complete and/or integrate mergers and acquisitions;
• risks relating to Truist’s role as a servicer of loans, including an increase in the scope or costs of the services Truist is required to perform without any corresponding increase in Truist’s servicing fee, or a breach of Truist’s obligations as servicer;
• negative public opinion, which could damage Truist’s reputation;
• increased scrutiny regarding Truist’s consumer sales practices, training practices, incentive compensation design and governance;
• competition from new or existing competitors, including increased competition from products and services offered by non-bank financial technology companies, may reduce Truist’s client base, cause Truist to lower prices for its products and services in order to maintain market share or otherwise adversely impact Truist’s businesses or results of operations;
• Truist’s ability to introduce new products and services in response to industry trends or developments in technology that achieve market acceptance and regulatory approval;
• Truist’s success depends on the expertise of key personnel, and if these individuals leave or change their roles without effective replacements, Truist's operations and integration activities could be adversely impacted. This could be exacerbated as Truist continues to integrate the management teams of heritage BB&T and heritage SunTrust, or if the organization is unable to hire and retain qualified personnel;
• legislative, regulatory or accounting changes may adversely affect the businesses in which Truist is engaged;
• evolving regulatory standards, including with respect to capital and liquidity requirements, and results of regulatory examinations, may adversely affect Truist's financial condition and results of operations;
• accounting policies and processes require management to make estimates about matters that are uncertain;
• general economic or business conditions, either nationally or regionally, may be less favorable than expected, resulting in, among other things, slower deposit or asset growth, a deterioration in credit quality or a reduced demand for credit, insurance or other services;
• risk management oversight functions may not identify or address risks adequately;
• unfavorable resolution of legal proceedings or other claims or regulatory or other governmental investigations or inquiries could result in negative publicity, protests, fines, penalties, restrictions on Truist's operations or ability to expand its business or other negative consequences, all of which could cause reputational damage and adversely impact Truist's financial condition and results of operations;
• competitors of Truist may have greater financial resources or develop products that enable them to compete more successfully than Truist and may be subject to different regulatory standards than Truist;
• failure to maintain or enhance Truist’s competitive position with respect to technology, whether it fails to anticipate client expectations or because its technological developments fail to perform as desired or are not rolled out in a timely manner or for other reasons, may cause Truist to lose market share or incur additional expense;
• fraud or misconduct by internal or external parties, which Truist may not be able to prevent, detect or mitigate;
• operational or communications systems, including systems used by vendors or other external parties, may fail or may be the subject of a breach or cyber-attack that, if successful, could adversely impact Truist's financial condition and results of operations;
• security risks, including denial of service attacks, hacking, social engineering attacks targeting Truist’s employees and clients, malware intrusion or data corruption attempts, and identity theft could result in the disclosure of confidential information, adversely affect Truist’s business or reputation or create significant legal or financial exposure;
• the COVID-19 pandemic has disrupted the global economy, adversely impacted Truist’s financial condition and results of operations, including through increased expenses, reduced fee income and net interest margin and increases in the allowance for credit losses, and continuation of current conditions could worsen these impacts and also adversely affect Truist’s capital and liquidity position or cost of capital, impair the ability of borrowers to repay outstanding loans, cause an outflow of deposits, and impair goodwill or other assets;
• natural or other disasters, including acts of terrorism and pandemics, could have an adverse effect on Truist, including a material disruption of Truist's operations or the ability or willingness of clients to access Truist's products and services;
• widespread system outages, caused by the failure of critical internal systems or critical services provided by third parties could adversely impact Truist's financial condition and results of operations; and
• depressed market values for Truist’s stock and adverse economic conditions sustained over a period of time may require a write down to goodwill.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. Except to the extent required by applicable law or regulation, Truist undertakes no obligation to revise or update any forward-looking statements.

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Document

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Quarterly Performance Summary

Truist Financial Corporation

Fourth Quarter 2020

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
Segment Financial Performance - Five Quarter Trend 5
Consolidated Ending Balance Sheets - Five Quarter Trend 6
Average Balance Sheets 7
Average Balance Sheets - Five Quarter Trend 8
Average Balances and Rates - Quarters 9
Average Balances and Rates - Year-To-Date 11
Credit Quality 12
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) 2020 2019 Change 2020 2019 Change
Summary Income Statement
Interest income - taxable equivalent (1) $ 3,639 $ 2,837 28.3 % $ 15,673 $ 9,505 64.9 %
Interest expense 245 585 (58.1) 1,722 2,096 (17.8)
Net interest income - taxable equivalent 3,394 2,252 50.7 13,951 7,409 88.3
Less: Taxable-equivalent adjustment 28 25 12.0 125 96 30.2
Net interest income 3,366 2,227 51.1 13,826 7,313 89.1
Provision for credit losses 177 171 3.5 2,335 615 NM
Net interest income after provision for credit losses 3,189 2,056 55.1 11,491 6,698 71.6
Noninterest income 2,285 1,398 63.4 8,879 5,255 69.0
Noninterest expense 3,833 2,575 48.9 14,897 7,934 87.8
Income before income taxes 1,641 879 86.7 5,473 4,019 36.2
Provision for income taxes 311 153 103.3 981 782 25.4
Net income 1,330 726 83.2 4,492 3,237 38.8
Noncontrolling interests 1 5 (80.0) 10 13 (23.1)
Net income available to the bank holding company 1,329 721 84.3 4,482 3,224 39.0
Preferred stock dividends 101 19 NM 298 196 52.0
Net income available to common shareholders 1,228 702 74.9 4,184 3,028 38.2
Per Common Share Data
Earnings per share-basic $ 0.91 $ 0.76 19.7 % $ 3.11 $ 3.76 (17.3) %
Earnings per share-diluted 0.90 0.75 20.0 3.08 3.71 (17.0)
Earnings per share-adjusted diluted (2) 1.18 1.12 5.4 3.80 4.37 (13.0)
Cash dividends declared 0.450 0.450 — 1.800 1.710 5.3
Common shareholders' equity 46.52 45.66 1.9 46.52 45.66 1.9
Tangible common shareholders' equity (2) 26.78 25.93 3.3 26.78 25.93 3.3
End of period shares outstanding 1,348,961 1,342,166 0.5 1,348,961 1,342,166 0.5
Weighted average shares outstanding-basic 1,348,493 922,840 46.1 1,347,080 805,104 67.3
Weighted average shares outstanding-diluted 1,361,763 934,718 45.7 1,358,289 815,204 66.6
Performance Ratios
Return on average assets 1.05 % 0.95 % 0.90 % 1.31 %
Return on average risk-weighted assets (current period is preliminary) 1.40 1.02 1.18 1.55
Return on average common shareholders' equity 7.88 7.33 6.82 9.87
Return on average tangible common shareholders' equity (2) 14.99 12.91 13.35 16.40
Net interest margin - taxable equivalent 3.08 3.41 3.22 3.42
Fee income ratio 40.4 38.6 39.1 41.8
Efficiency ratio-GAAP 67.8 71.0 65.6 63.1
Efficiency ratio-adjusted (2) 55.9 57.5 55.9 56.6
Credit Quality
Nonperforming assets as a percentage of:
Assets 0.27 % 0.14 % 0.27 % 0.14 %
Loans and leases plus foreclosed property 0.46 0.19 0.46 0.19
Net charge-offs as a percentage of average loans and leases 0.27 0.40 0.36 0.40
Allowance for loan and lease losses as a percentage of LHFI 1.95 0.52 1.95 0.52
Ratio of allowance for loan and lease losses to nonperforming LHFI 4.39x 3.41x 4.39x 3.41x
Average Balances
Assets $ 503,181 $ 302,059 66.6 % $ 499,085 $ 247,494 101.7 %
Securities (3) 102,053 60,699 68.1 83,227 50,645 64.3
Loans and leases 308,188 193,641 59.2 314,501 161,604 94.6
Deposits 375,266 210,716 78.1 363,293 173,269 109.7
Common shareholders' equity 61,991 38,031 63.0 61,379 30,697 100.0
Total shareholders' equity 70,145 41,740 68.1 68,024 34,108 99.4
Period-End Balances
Assets $ 509,228 $ 473,078 7.6 % $ 509,228 $ 473,078 7.6 %
Securities (3) 120,788 74,727 61.6 120,788 74,727 61.6
Loans and leases 305,793 308,215 (0.8) 305,793 308,215 (0.8)
Deposits 381,077 334,727 13.8 381,077 334,727 13.8
Common shareholders' equity 62,759 61,282 2.4 62,759 61,282 2.4
Total shareholders' equity 70,912 66,558 6.5 70,912 66,558 6.5
Capital Ratios (current quarter is preliminary)
Common equity Tier 1 10.0 % 9.5 % 10.0 % 9.5 %
Tier 1 12.1 10.8 12.1 10.8
Total 14.5 12.6 14.5 12.6
Leverage (4) 9.6 14.7 9.6 14.7
Supplementary leverage (5) 8.7 7.9 8.7 7.9
Applicable ratios are annualized.
NM - not meaningful
(1) Interest income includes certain fees, deferred costs, fair value mark accretion, and dividends.
(2) Represents a non-GAAP measure. See the calculations and management's reasons for using these measures in the Non-GAAP Reconciliations and Preliminary Capital Information - Five Quarter Trend sections of this supplement.
(3) Includes AFS and HTM securities. Average balances reflect both AFS and HTM securities at amortized cost. Period-end balances reflect AFS securities at fair value and HTM securities at amortized cost. In 4Q19, Truist transferred all HTM securities into AFS securities in response to changes in regulatory capital rules.
(4) The leverage ratio is calculated using end of period Tier 1 capital and quarterly average tangible assets. The timing of the merger impacted the 4Q19 result.
(5) Truist became subject to the supplementary leverage ratio in 2020. The 4Q19 measure was an estimate based on a full quarter of average tangible assets.

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) 2020 2020 2020 2020 2019
Summary Income Statement
Interest income - taxable equivalent (1) $ 3,639 $ 3,652 $ 3,919 $ 4,463 $ 2,837
Interest expense 245 261 440 776 585
Net interest income - taxable equivalent 3,394 3,391 3,479 3,687 2,252
Less: Taxable-equivalent adjustment 28 29 31 37 25
Net interest income 3,366 3,362 3,448 3,650 2,227
Provision for credit losses 177 421 844 893 171
Net interest income after provision for credit losses 3,189 2,941 2,604 2,757 2,056
Noninterest income 2,285 2,210 2,423 1,961 1,398
Noninterest expense 3,833 3,755 3,878 3,431 2,575
Income before income taxes 1,641 1,396 1,149 1,287 879
Provision for income taxes 311 255 191 224 153
Net income 1,330 1,141 958 1,063 726
Noncontrolling interests 1 3 3 3 5
Net income available to the bank holding company 1,329 1,138 955 1,060 721
Preferred stock dividends 101 70 53 74 19
Net income available to common shareholders 1,228 1,068 902 986 702
Per Common Share Data
Earnings per share-basic $ 0.91 $ 0.79 $ 0.67 $ 0.73 $ 0.76
Earnings per share-diluted 0.90 0.79 0.67 0.73 0.75
Earnings per share-adjusted diluted (2) 1.18 0.97 0.82 0.83 1.12
Cash dividends declared 0.450 0.450 0.450 0.450 0.450
Common shareholders' equity 46.52 45.86 45.74 45.49 45.66
Tangible common shareholders' equity (2) 26.78 26.63 26.38 26.00 25.93
End of period shares outstanding 1,348,961 1,348,118 1,347,609 1,347,461 1,342,166
Weighted average shares outstanding-basic 1,348,493 1,347,916 1,347,512 1,344,372 922,840
Weighted average shares outstanding-diluted 1,361,763 1,358,122 1,355,834 1,357,545 934,718
Performance Ratios
Return on average assets 1.05 % 0.91 % 0.75 % 0.90 % 0.95 %
Return on average risk-weighted assets (current quarter is preliminary) 1.40 1.19 1.00 1.12 1.02
Return on average common shareholders' equity 7.88 6.87 5.90 6.58 7.33
Return on average tangible common shareholders' equity (2) 14.99 13.31 11.83 13.23 12.91
Net interest margin - taxable equivalent 3.08 3.10 3.13 3.58 3.41
Fee income ratio 40.4 39.7 41.3 34.9 38.6
Efficiency ratio-GAAP 67.8 67.4 66.1 61.1 71.0
Efficiency ratio-adjusted (2) 55.9 57.3 55.8 54.6 57.5
Credit Quality
Nonperforming assets as a percentage of:
Assets 0.27 % 0.26 % 0.25 % 0.23 % 0.14 %
Loans and leases plus foreclosed property 0.46 0.39 0.37 0.36 0.19
Net charge-offs as a percentage of average loans and leases 0.27 0.42 0.39 0.36 0.40
Allowance for loan and lease losses as a percentage of LHFI 1.95 1.91 1.81 1.63 0.52
Ratio of allowance for loan and lease losses to nonperforming LHFI 4.39x 5.22x 5.24x 5.04x 3.41x
Average Balances
Assets $ 503,181 $ 500,826 $ 514,720 $ 477,550 $ 302,059
Securities (3) 102,053 79,828 75,159 75,701 60,699
Loans and leases 308,188 315,691 326,435 307,748 193,641
Deposits 375,266 372,211 370,818 334,649 210,716
Common shareholders' equity 61,991 61,804 61,484 60,224 38,031
Total shareholders' equity 70,145 69,634 66,863 65,412 41,740
Period-End Balances
Assets $ 509,228 $ 499,183 $ 504,336 $ 506,229 $ 473,078
Securities (3) 120,788 86,132 77,805 78,398 74,727
Loans and leases 305,793 312,149 321,148 324,039 308,215
Deposits 381,077 370,747 376,235 350,179 334,727
Common shareholders' equity 62,759 61,819 61,634 61,295 61,282
Total shareholders' equity 70,912 69,973 68,883 66,061 66,558
Capital Ratios (current quarter is preliminary)
Common equity Tier 1 10.0 % 10.0 % 9.7 % 9.3 % 9.5 %
Tier 1 12.1 12.2 11.6 10.5 10.8
Total 14.5 14.6 14.0 12.7 12.6
Leverage (4) 9.6 9.6 9.0 9.0 14.7
Supplementary leverage (5) 8.7 8.9 8.5 7.8 7.9
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. In 4Q19, Truist transferred all HTM securities into AFS securities in response to changes in regulatory capital rules.
(4) The leverage ratio is calculated using end of period Tier 1 capital and quarterly average tangible assets. The timing of the merger impacted the 4Q19 result.
(5) Truist became subject to the supplementary leverage ratio in 2020. The 4Q19 measure was an estimate based on a full quarter of average tangible assets.

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) 2020 2019 % 2020 2019 %
Interest Income
Interest and fees on loans and leases $ 3,158 $ 2,371 33.2 % $ 13,485 $ 7,982 68.9 %
Interest on securities 408 402 6 1.5 1,739 1,319 420 31.8
Interest on other earning assets 45 39 6 15.4 324 108 216 200.0
Total interest income 3,611 2,812 799 28.4 15,548 9,409 6,139 65.2
Interest Expense
Interest on deposits 67 304 (237) (78.0) 785 1,101 (316) (28.7)
Interest on long-term debt 165 219 (54) (24.7) 800 797 3 0.4
Interest on other borrowings 13 62 (49) (79.0) 137 198 (61) (30.8)
Total interest expense 245 585 (340) (58.1) 1,722 2,096 (374) (17.8)
Net Interest Income 3,366 2,227 1,139 51.1 13,826 7,313 6,513 89.1
Provision for credit losses 177 171 6 3.5 2,335 615 1,720 NM
Net Interest Income After Provision for Credit Losses 3,189 2,056 1,133 55.1 11,491 6,698 4,793 71.6
Noninterest Income
Insurance income 545 509 36 7.1 2,193 2,072 121 5.8
Service charges on deposits 266 222 44 19.8 1,020 762 258 33.9
Wealth management income 332 206 126 61.2 1,277 715 562 78.6
Card and payment related fees 203 156 47 30.1 761 555 206 37.1
Residential mortgage income 193 65 128 196.9 1,000 285 715 NM
Investment banking and trading income 308 109 199 182.6 944 244 700 NM
Operating lease income 77 47 30 63.8 309 153 156 102.0
Income from bank-owned life insurance 44 38 6 15.8 179 129 50 38.8
Lending related fees 105 47 58 123.4 315 124 191 154.0
Commercial real estate related income 123 48 75 156.3 271 116 155 133.6
Securities gains (losses) — (116) 116 NM 402 (116) 518 NM
Other income (loss) 89 67 22 32.8 208 216 (8) (3.7)
Total noninterest income 2,285 1,398 887 63.4 8,879 5,255 3,624 69.0
Noninterest Expense
Personnel expense 2,108 1,465 643 43.9 8,146 4,833 3,313 68.5
Net occupancy expense 207 147 60 40.8 904 507 397 78.3
Professional fees and outside processing 393 161 232 144.1 1,252 433 819 189.1
Software expense 215 118 97 82.2 862 338 524 155.0
Equipment expense 121 83 38 45.8 484 280 204 72.9
Marketing and customer development 58 45 13 28.9 273 137 136 99.3
Operating lease depreciation 54 43 11 25.6 258 136 122 89.7
Loan-related expense 65 42 23 54.8 242 123 119 96.7
Amortization of intangibles 172 71 101 142.3 685 164 521 NM
Regulatory costs 32 24 8 33.3 125 81 44 54.3
Merger-related and restructuring charges 308 223 85 38.1 860 360 500 138.9
Loss (gain) on early extinguishment of debt — — — — 235 — 235 NM
Other expense 100 153 (53) (34.6) 571 542 29 5.4
Total noninterest expense 3,833 2,575 1,258 48.9 14,897 7,934 6,963 87.8
Earnings
Income before income taxes 1,641 879 762 86.7 5,473 4,019 1,454 36.2
Provision for income taxes 311 153 158 103.3 981 782 199 25.4
Net income 1,330 726 604 83.2 4,492 3,237 1,255 38.8
Noncontrolling interests 1 5 (4) (80.0) 10 13 (3) (23.1)
Net income available to the bank holding company 1,329 721 608 84.3 4,482 3,224 1,258 39.0
Preferred stock dividends 101 19 82 NM 298 196 102 52.0
Net income available to common shareholders $ 1,228 $ 702 74.9 % $ 4,184 $ 3,028 38.2 %
Earnings Per Common Share
Basic $ 0.91 $ 0.76 19.7 % $ 3.11 $ 3.76 (17.3) %
Diluted 0.90 0.75 0.15 20.0 3.08 3.71 (0.63) (17.0)
Weighted Average Shares Outstanding
Basic 1,348,493 922,840 425,653 46.1 1,347,080 805,104 541,976 67.3
Diluted 1,361,763 934,718 427,045 45.7 1,358,289 815,204 543,085 66.6
NM - not meaningful

All values are in US Dollars.

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) 2020 2020 2020 2020 2019
Interest Income
Interest and fees on loans and leases $ 3,158 $ 3,174 $ 3,377 $ 3,776 $ 2,371
Interest on securities 408 393 444 494 402
Interest on other earning assets 45 56 67 156 39
Total interest income 3,611 3,623 3,888 4,426 2,812
Interest Expense
Interest on deposits 67 96 201 421 304
Interest on long-term debt 165 152 211 272 219
Interest on other borrowings 13 13 28 83 62
Total interest expense 245 261 440 776 585
Net Interest Income 3,366 3,362 3,448 3,650 2,227
Provision for credit losses 177 421 844 893 171
Net Interest Income After Provision for Credit Losses 3,189 2,941 2,604 2,757 2,056
Noninterest Income
Insurance income 545 518 581 549 509
Service charges on deposits 266 247 202 305 222
Wealth management income 332 324 289 332 206
Card and payment related fees 203 200 171 187 156
Residential mortgage income 193 221 341 245 65
Investment banking and trading income 308 244 274 118 109
Operating lease income 77 72 83 77 47
Income from bank-owned life insurance 44 46 45 44 38
Lending related fees 105 77 66 67 47
Commercial real estate related income 123 55 49 44 48
Securities gains (losses) — 104 300 (2) (116)
Other income (loss) 89 102 22 (5) 67
Total noninterest income 2,285 2,210 2,423 1,961 1,398
Noninterest Expense
Personnel expense 2,108 2,058 2,008 1,972 1,465
Net occupancy expense 207 233 243 221 147
Professional fees and outside processing 393 323 289 247 161
Software expense 215 221 216 210 118
Equipment expense 121 127 120 116 83
Marketing and customer development 58 75 56 84 45
Operating lease depreciation 54 56 77 71 43
Loan-related expense 65 59 56 62 42
Amortization of intangibles 172 170 178 165 71
Regulatory costs 32 34 30 29 24
Merger-related and restructuring charges 308 236 209 107 223
Loss (gain) on early extinguishment of debt — — 235 — —
Other expense 100 163 161 147 153
Total noninterest expense 3,833 3,755 3,878 3,431 2,575
Earnings
Income before income taxes 1,641 1,396 1,149 1,287 879
Provision for income taxes 311 255 191 224 153
Net income 1,330 1,141 958 1,063 726
Noncontrolling interests 1 3 3 3 5
Net income available to the bank holding company 1,329 1,138 955 1,060 721
Preferred stock dividends 101 70 53 74 19
Net income available to common shareholders $ 1,228 $ 1,068 $ 902 $ 986 $ 702
Earnings Per Common Share
Basic $ 0.91 $ 0.79 $ 0.67 $ 0.73 $ 0.76
Diluted 0.90 0.79 0.67 0.73 0.75
Weighted Average Shares Outstanding
Basic 1,348,493 1,347,916 1,347,512 1,344,372 922,840
Diluted 1,361,763 1,358,122 1,355,834 1,357,545 934,718

4 Truist Financial Corporation

Segment Financial Performance - Preliminary
Quarter Ended
Dec. 31 Sept. 30 June 30 March 31 Dec. 31
(Dollars in millions) 2020 2020 2020 2020 2019
Consumer Banking and Wealth
Net interest income (expense) $ 1,818 $ 1,856 $ 1,843 $ 1,860 $ 1,114
Net intersegment interest income (expense) 377 337 316 394 282
Segment net interest income 2,195 2,193 2,159 2,254 1,396
Allocated provision for credit losses 116 181 270 437 145
Noninterest income 994 990 1,006 1,066 652
Noninterest expense 1,955 1,934 1,972 1,989 1,318
Income (loss) before income taxes 1,118 1,068 923 894 585
Provision (benefit) for income taxes 264 252 218 210 142
Segment net income (loss) $ 854 $ 816 $ 705 $ 684 $ 443
Corporate and Commercial Banking
Net interest income (expense) $ 1,271 $ 1,235 $ 1,351 $ 1,534 $ 934
Net intersegment interest income (expense) 12 42 (60) (207) (99)
Segment net interest income 1,283 1,277 1,291 1,327 835
Allocated provision for credit losses 60 311 534 399 17
Noninterest income 789 609 621 457 412
Noninterest expense 841 843 880 883 570
Income (loss) before income taxes 1,171 732 498 502 660
Provision (benefit) for income taxes 253 148 92 89 142
Segment net income (loss) $ 918 $ 584 $ 406 $ 413 $ 518
Insurance Holdings
Net interest income (expense) $ 26 $ 31 $ 33 $ 36 $ 38
Net intersegment interest income (expense) (4) (7) (10) (11) (11)
Segment net interest income 22 24 23 25 27
Allocated provision for credit losses 2 — 6 1 2
Noninterest income 562 524 598 557 536
Noninterest expense 451 446 448 440 481
Income (loss) before income taxes 131 102 167 141 80
Provision (benefit) for income taxes 32 25 41 36 21
Segment net income (loss) $ 99 $ 77 $ 126 $ 105 $ 59
Other, Treasury & Corporate (1)
Net interest income (expense) $ 251 $ 240 $ 221 $ 220 $ 141
Net intersegment interest income (expense) (385) (372) (246) (176) (172)
Segment net interest income (134) (132) (25) 44 (31)
Allocated provision for credit losses (1) (71) 34 56 7
Noninterest income (60) 87 198 (119) (202)
Noninterest expense 586 532 578 119 206
Income (loss) before income taxes (779) (506) (439) (250) (446)
Provision (benefit) for income taxes (238) (170) (160) (111) (152)
Segment net income (loss) $ (541) $ (336) $ (279) $ (139) $ (294)
Total Truist Financial Corporation
Net interest income (expense) $ 3,366 $ 3,362 $ 3,448 $ 3,650 $ 2,227
Net intersegment interest income (expense) — — — — —
Segment net interest income 3,366 3,362 3,448 3,650 2,227
Allocated provision for credit losses 177 421 844 893 171
Noninterest income 2,285 2,210 2,423 1,961 1,398
Noninterest expense 3,833 3,755 3,878 3,431 2,575
Income (loss) before income taxes 1,641 1,396 1,149 1,287 879
Provision (benefit) for income taxes 311 255 191 224 153
Net income $ 1,330 $ 1,141 $ 958 $ 1,063 $ 726
(1) Includes financial data from subsidiaries below the quantitative and qualitative thresholds requiring disclosure.

Truist Financial Corporation 5

Consolidated Ending Balance Sheets - Five Quarter Trend
Dec. 31 Sept. 30 June 30 March 31 Dec. 31
(Dollars in millions) 2020 2020 2020 2020 2019
Assets
Cash and due from banks $ 5,029 $ 4,194 $ 5,116 $ 5,312 $ 4,084
Interest-bearing deposits with banks 13,839 32,914 36,081 31,036 14,981
Securities borrowed or purchased under resale agreements 1,745 1,300 1,345 1,796 1,417
Trading assets at fair value 3,872 4,670 3,824 3,863 5,733
Securities available for sale at fair value 120,788 86,132 77,805 78,398 74,727
Loans and leases:
Commercial:
Commercial and industrial 138,354 140,874 147,141 149,161 130,180
CRE 26,595 27,474 27,963 27,532 26,832
Commercial construction 6,491 6,772 6,891 6,630 6,205
Lease financing 5,240 5,493 5,783 5,984 6,122
Consumer:
Residential mortgage 47,272 50,379 51,671 53,096 52,071
Residential home equity and direct 26,064 26,558 26,935 27,629 27,044
Indirect auto 26,150 25,269 24,509 25,146 24,442
Indirect other 11,177 11,527 11,592 10,980 11,100
Student 7,552 7,480 7,484 7,771 6,743
Credit card 4,839 4,801 4,856 5,300 5,619
PCI — — — — 3,484
Total loans and leases held for investment 299,734 306,627 314,825 319,229 299,842
Loans held for sale 6,059 5,522 6,323 4,810 8,373
Total loans and leases 305,793 312,149 321,148 324,039 308,215
Allowance for loan and lease losses (5,835) (5,863) (5,702) (5,211) (1,549)
Premises and equipment 3,870 3,968 4,002 3,999 3,712
Goodwill 24,447 23,869 23,882 23,927 24,154
Core deposit and other intangible assets 2,984 2,840 3,016 3,168 3,142
Mortgage servicing rights 2,023 1,991 2,077 2,150 2,630
Other assets 30,673 31,019 31,742 33,752 31,832
Total assets $ 509,228 $ 499,183 $ 504,336 $ 506,229 $ 473,078
Liabilities
Deposits:
Noninterest-bearing deposits $ 127,629 $ 124,297 $ 122,694 $ 97,618 $ 92,405
Interest checking 105,269 98,694 99,005 92,950 85,492
Money market and savings 126,238 121,856 123,974 124,072 120,934
Time deposits 21,941 25,900 30,562 35,539 35,896
Foreign office deposits - interest-bearing — — — — —
Total deposits 381,077 370,747 376,235 350,179 334,727
Short-term borrowings 6,092 6,244 5,700 12,696 18,218
Long-term debt 39,597 41,008 42,133 65,662 41,339
Other liabilities 11,550 11,211 11,385 11,631 12,236
Total liabilities 438,316 429,210 435,453 440,168 406,520
Shareholders' Equity:
Preferred stock 8,048 8,048 7,143 4,599 5,102
Common stock 6,745 6,741 6,738 6,737 6,711
Additional paid-in capital 35,843 35,774 35,676 35,584 35,609
Retained earnings 19,455 18,834 18,373 18,076 19,806
Accumulated other comprehensive loss 716 470 847 898 (844)
Noncontrolling interests 105 106 106 167 174
Total shareholders' equity 70,912 69,973 68,883 66,061 66,558
Total liabilities and shareholders' equity $ 509,228 $ 499,183 $ 504,336 $ 506,229 $ 473,078

6 Truist Financial Corporation

Average Balance Sheets
Quarter Ended Year-to-Date
December 31 Change December 31 Change
(Dollars in millions) 2020 2019 % 2020 2019 %
Assets
Securities at amortized cost (1):
U.S. Treasury $ 2,049 $ 2,384 (14.1) % $ 2,194 $ 2,644 (17.0) %
U.S. government-sponsored entities (GSE) 1,841 2,301 (460) (20.0) 1,846 2,402 (556) (23.1)
Mortgage-backed securities issued by GSE 97,660 55,119 42,541 77.2 78,564 44,710 33,854 75.7
States and political subdivisions 469 598 (129) (21.6) 501 587 (86) (14.7)
Non-agency mortgage-backed — 263 (263) (100.0) 86 269 (183) (68.0)
Other 34 34 — — 36 33 3 9.1
Total securities 102,053 60,699 41,354 68.1 83,227 50,645 32,582 64.3
Loans and leases:
Commercial:
Commercial and industrial 139,223 81,853 57,370 70.1 141,850 67,435 74,415 110.4
CRE 27,030 19,896 7,134 35.9 27,410 17,651 9,759 55.3
Commercial construction 6,616 4,506 2,110 46.8 6,659 4,061 2,598 64.0
Lease financing 5,401 3,357 2,044 60.9 5,753 2,443 3,310 135.5
Consumer:
Residential mortgage 48,847 34,824 14,023 40.3 51,423 31,668 19,755 62.4
Residential home equity and direct 26,327 15,810 10,517 66.5 26,951 12,716 14,235 111.9
Indirect auto 25,788 15,390 10,398 67.6 25,055 12,545 12,510 99.7
Indirect other 11,291 7,772 3,519 45.3 11,264 6,654 4,610 69.3
Student 7,519 1,825 5,694 NM 7,596 460 7,136 NM
Credit card 4,818 3,788 1,030 27.2 5,027 3,181 1,846 58.0
PCI — 1,220 (1,220) (100.0) — 631 (631) (100.0)
Total loans and leases held for investment 302,860 190,241 112,619 59.2 308,988 159,445 149,543 93.8
Loans held for sale 5,328 3,400 1,928 56.7 5,513 2,159 3,354 155.3
Total loans and leases 308,188 193,641 114,547 59.2 314,501 161,604 152,897 94.6
Interest earning trading assets 4,538 2,370 2,168 91.5 4,655 1,277 3,378 NM
Other earning assets 23,887 6,405 17,482 NM 31,240 2,888 28,352 NM
Total earning assets 438,666 263,115 175,551 66.7 433,623 216,414 217,209 100.4
Nonearning assets 64,515 38,944 25,571 65.7 65,462 31,080 34,382 110.6
Total assets $ 503,181 $ 302,059 66.6 % $ 499,085 $ 247,494 101.7 %
Liabilities and Shareholders' Equity
Deposits:
Noninterest-bearing deposits $ 127,103 $ 64,485 97.1 % $ 114,580 $ 55,513 106.4 %
Interest checking 99,866 43,246 56,620 130.9 94,879 31,592 63,287 NM
Money market and savings 124,692 79,903 44,789 56.1 123,826 67,922 55,904 82.3
Time deposits 23,605 23,058 547 2.4 30,008 17,970 12,038 67.0
Foreign office deposits - interest-bearing — 24 (24) (100.0) — 272 (272) (100.0)
Total deposits 375,266 210,716 164,550 78.1 363,293 173,269 190,024 109.7
Short-term borrowings 6,493 11,489 (4,996) (43.5) 10,129 8,462 1,667 19.7
Long-term debt 40,284 29,888 10,396 34.8 45,793 24,756 21,037 85.0
Other liabilities 10,993 8,226 2,767 33.6 11,846 6,899 4,947 71.7
Total liabilities 433,036 260,319 172,717 66.3 431,061 213,386 217,675 102.0
Shareholders' equity 70,145 41,740 28,405 68.1 68,024 34,108 33,916 99.4
Total liabilities and shareholders' equity $ 503,181 $ 302,059 66.6 % $ 499,085 $ 247,494 101.7 %
Average balances exclude basis adjustments for fair value hedges.
(1) Includes AFS and HTM securities.
NM - not meaningful

All values are in US Dollars.

Truist Financial Corporation 7

Average Balance Sheets - Five Quarter Trend
Quarter Ended
Dec. 31 Sept. 30 June 30 March 31 Dec. 31
(Dollars in millions) 2020 2020 2020 2020 2019
Assets
Securities at amortized cost (1):
U.S. Treasury $ 2,049 $ 2,218 $ 2,237 $ 2,274 $ 2,384
U.S. government-sponsored entities (GSE) 1,841 1,842 1,844 1,856 2,301
Mortgage-backed securities issued by GSE 97,660 75,232 70,374 70,816 55,119
States and political subdivisions 469 499 505 530 598
Non-agency mortgage-backed — — 162 185 263
Other 34 37 37 40 34
Total securities 102,053 79,828 75,159 75,701 60,699
Loans and leases:
Commercial:
Commercial and industrial 139,223 143,452 152,991 131,743 81,853
CRE 27,030 27,761 27,804 27,046 19,896
Commercial construction 6,616 6,861 6,748 6,409 4,506
Lease financing 5,401 5,626 5,922 6,070 3,357
Consumer:
Residential mortgage 48,847 51,500 52,380 52,993 34,824
Residential home equity and direct 26,327 26,726 27,199 27,564 15,810
Indirect auto 25,788 24,732 24,721 24,975 15,390
Indirect other 11,291 11,530 11,282 10,950 7,772
Student 7,519 7,446 7,633 7,787 1,825
Credit card 4,818 4,810 4,949 5,534 3,788
PCI — — — — 1,220
Total loans and leases held for investment 302,860 310,444 321,629 301,071 190,241
Loans held for sale 5,328 5,247 4,806 6,677 3,400
Total loans and leases 308,188 315,691 326,435 307,748 193,641
Interest earning trading assets 4,538 4,056 3,700 6,334 2,370
Other earning assets 23,887 35,819 41,531 23,750 6,405
Total earning assets 438,666 435,394 446,825 413,533 263,115
Nonearning assets 64,515 65,432 67,895 64,017 38,944
Total assets $ 503,181 $ 500,826 $ 514,720 $ 477,550 $ 302,059
Liabilities and Shareholders' Equity
Deposits:
Noninterest-bearing deposits $ 127,103 $ 123,966 $ 113,875 $ 93,135 $ 64,485
Interest checking 99,866 96,707 97,863 85,008 43,246
Money market and savings 124,692 123,598 126,071 120,936 79,903
Time deposits 23,605 27,940 33,009 35,570 23,058
Foreign office deposits - interest-bearing — — — — 24
Total deposits 375,266 372,211 370,818 334,649 210,716
Short-term borrowings 6,493 6,209 8,998 18,900 11,489
Long-term debt 40,284 40,919 55,537 46,547 29,888
Other liabilities 10,993 11,853 12,504 12,042 8,226
Total liabilities 433,036 431,192 447,857 412,138 260,319
Shareholders' equity 70,145 69,634 66,863 65,412 41,740
Total liabilities and shareholders' equity $ 503,181 $ 500,826 $ 514,720 $ 477,550 $ 302,059
Average balances exclude basis adjustments for fair value hedges.
(1) Includes AFS and HTM securities.

8 Truist Financial Corporation

Average Balances and Rates - Quarters
Quarter Ended
December 31, 2020 September 30, 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 $ 2,049 $ 9 1.62 % $ 2,218 $ 10 1.78 %
U.S. government-sponsored entities (GSE) 1,841 11 2.33 1,842 10 2.33
Mortgage-backed securities issued by GSE 97,660 385 1.58 75,232 366 1.95
States and political subdivisions 469 3 3.52 499 7 5.03
Non-agency mortgage-backed — — — — — —
Other 34 — 1.98 37 1 1.99
Total securities 102,053 408 1.60 79,828 394 1.97
Loans and leases:
Commercial:
Commercial and industrial 139,223 1,091 3.12 143,452 1,087 3.02
CRE 27,030 197 2.88 27,761 203 2.88
Commercial construction 6,616 51 3.13 6,861 55 3.26
Lease financing 5,401 65 4.82 5,626 52 3.71
Consumer:
Residential mortgage 48,847 542 4.44 51,500 576 4.47
Residential home equity and direct 26,327 388 5.86 26,726 394 5.86
Indirect auto 25,788 416 6.41 24,732 405 6.51
Indirect other 11,291 195 6.87 11,530 204 7.05
Student 7,519 80 4.23 7,446 80 4.30
Credit card 4,818 114 9.35 4,810 109 9.03
Total loans and leases held for investment 302,860 3,139 4.13 310,444 3,165 4.06
Loans held for sale 5,328 47 3.54 5,247 37 2.78
Total loans and leases 308,188 3,186 4.12 315,691 3,202 4.04
Interest earning trading assets 4,538 33 2.89 4,056 32 3.23
Other earning assets 23,887 12 0.20 35,819 24 0.26
Total earning assets 438,666 3,639 3.31 435,394 3,652 3.34
Nonearning assets 64,515 65,432
Total assets $ 503,181 $ 500,826
Liabilities and Shareholders' Equity
Interest-bearing deposits:
Interest checking $ 99,866 17 0.07 $ 96,707 15 0.06
Money market and savings 124,692 10 0.03 123,598 19 0.06
Time deposits 23,605 40 0.66 27,940 62 0.89
Total interest-bearing deposits (4) 248,163 67 0.11 248,245 96 0.15
Short-term borrowings 6,493 13 0.77 6,209 13 0.85
Long-term debt 40,284 165 1.64 40,919 152 1.48
Total interest-bearing liabilities 294,940 245 0.33 295,373 261 0.35
Noninterest-bearing deposits (4) 127,103 123,966
Other liabilities 10,993 11,853
Shareholders' equity 70,145 69,634
Total liabilities and shareholders' equity $ 503,181 $ 500,826
Average interest-rate spread 2.98 2.99
Net interest income/ net interest margin $ 3,394 3.08 % $ 3,391 3.10 %
Taxable-equivalent adjustment $ 28 $ 29
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 0.07% and 0.10% for the three months ended December 31, 2020 and September 30, 2020, respectively.

Truist Financial Corporation 9

Average Balances and Rates - Quarters
Quarter Ended
June 30, 2020 March 31, 2020 December 31, 2019
(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 $ 2,237 $ 10 1.88 % $ 2,274 $ 11 1.93 % $ 2,384 $ 12 1.97 %
U.S. government-sponsored entities (GSE) 1,844 12 2.33 1,856 10 2.33 2,301 12 2.28
Mortgage-backed securities issued by GSE 70,374 413 2.35 70,816 461 2.60 55,119 366 2.64
States and political subdivisions 505 4 3.57 530 5 3.56 598 4 3.38
Non-agency mortgage-backed 162 7 16.71 185 8 16.72 263 9 13.15
Other 37 — 2.27 40 — 3.01 34 — 3.53
Total securities 75,159 446 2.37 75,701 495 2.62 60,699 403 2.65
Loans and leases:
Commercial:
Commercial and industrial 152,991 1,204 3.16 131,743 1,419 4.33 81,853 862 4.18
CRE 27,804 227 3.26 27,046 287 4.25 19,896 223 4.43
Commercial construction 6,748 61 3.70 6,409 76 4.87 4,506 57 5.17
Lease financing 5,922 70 4.71 6,070 65 4.27 3,357 32 3.79
Consumer:
Residential mortgage 52,380 608 4.65 52,993 594 4.48 34,824 361 4.15
Residential home equity and direct 27,199 391 5.78 27,564 452 6.60 15,810 242 6.04
Indirect auto 24,721 407 6.63 24,975 428 6.89 15,390 312 8.04
Indirect other 11,282 201 7.18 10,950 201 7.37 7,772 133 6.77
Student 7,633 87 4.55 7,787 104 5.38 1,825 24 5.20
Credit card 4,949 114 9.27 5,534 133 9.68 3,788 85 9.06
PCI — — — — — — 1,220 33 10.63
Total loans and leases held for investment 321,629 3,370 4.21 301,071 3,759 5.02 190,241 2,364 4.94
Loans held for sale 4,806 36 3.04 6,677 53 3.14 3,400 31 3.52
Total loans and leases 326,435 3,406 4.19 307,748 3,812 4.98 193,641 2,395 4.91
Interest earning trading assets 3,700 39 4.19 6,334 64 4.04 2,370 11 1.84
Other earning assets 41,531 28 0.28 23,750 92 1.55 6,405 28 1.78
Total earning assets 446,825 3,919 3.52 413,533 4,463 4.33 263,115 2,837 4.29
Nonearning assets 67,895 64,017 38,944
Total assets $ 514,720 $ 477,550 $ 302,059
Liabilities and Shareholders' Equity
Interest-bearing deposits:
Interest checking $ 97,863 55 0.23 $ 85,008 129 0.61 $ 43,246 65 0.60
Money market and savings 126,071 57 0.18 120,936 178 0.59 79,903 152 0.76
Time deposits 33,009 89 1.09 35,570 114 1.29 23,058 87 1.48
Foreign office deposits - interest-bearing — — — — — — 24 — 2.19
Total interest-bearing deposits (4) 256,943 201 0.32 241,514 421 0.70 146,231 304 0.82
Short-term borrowings 8,998 28 1.24 18,900 83 1.76 11,489 62 2.15
Long-term debt 55,537 211 1.52 46,547 272 2.34 29,888 219 2.92
Total interest-bearing liabilities 321,478 440 0.55 306,961 776 1.02 187,608 585 1.24
Noninterest-bearing deposits (4) 113,875 93,135 64,485
Other liabilities 12,504 12,042 8,226
Shareholders' equity 66,863 65,412 41,740
Total liabilities and shareholders' equity $ 514,720 $ 477,550 $ 302,059
Average interest-rate spread 2.97 3.31 3.05
Net interest income/ net interest margin $ 3,479 3.13 % $ 3,687 3.58 % $ 2,252 3.41 %
Taxable-equivalent adjustment $ 31 $ 37 $ 25
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 0.22%, 0.51% and 0.57% for the three months ended June 30, 2020, March 31, 2020 and December 31, 2019, respectively.

10 Truist Financial Corporation

Average Balances and Rates - Year-To-Date
Year-to-Date
December 31, 2020 December 31, 2019
(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 $ 2,194 $ 40 1.81 % $ 2,644 $ 53 2.01 %
U.S. government-sponsored entities (GSE) 1,846 43 2.33 2,402 53 2.26
Mortgage-backed securities issued by GSE 78,564 1,625 2.07 44,710 1,161 2.59
States and political subdivisions 501 19 3.92 587 21 3.73
Non-agency mortgage-backed 86 15 16.81 269 38 14.05
Other 36 1 2.33 33 1 3.75
Total securities 83,227 1,743 2.09 50,645 1,327 2.62
Loans and leases:
Commercial:
Commercial and industrial 141,850 4,801 3.39 67,435 2,868 4.25
CRE 27,410 914 3.32 17,651 849 4.79
Commercial construction 6,659 243 3.72 4,061 208 5.23
Lease financing 5,753 252 4.38 2,443 84 3.44
Consumer:
Residential mortgage 51,423 2,320 4.51 31,668 1,291 4.08
Residential home equity and direct 26,951 1,625 6.03 12,716 759 5.97
Indirect auto 25,055 1,656 6.61 12,545 1,068 8.51
Indirect other 11,264 801 7.11 6,654 443 6.65
Student 7,596 351 4.62 460 24 5.20
Credit card 5,027 470 9.34 3,181 288 9.05
PCI — — — 631 102 16.05
Total loans and leases held for investment 308,988 13,433 4.35 159,445 7,984 5.01
Loans held for sale 5,513 173 3.13 2,159 85 3.91
Total loans and leases 314,501 13,606 4.33 161,604 8,069 4.99
Interest earning trading assets 4,655 168 3.62 1,277 26 2.02
Other earning assets 31,240 156 0.50 2,888 83 2.89
Total earning assets 433,623 15,673 3.61 216,414 9,505 4.39
Nonearning assets 65,462 31,080
Total assets $ 499,085 $ 247,494
Liabilities and Shareholders' Equity
Interest-bearing deposits:
Interest checking $ 94,879 216 0.23 $ 31,592 197 0.62
Money market and savings 123,826 264 0.21 67,922 621 0.91
Time deposits 30,008 305 1.02 17,970 277 1.54
Foreign office deposits - interest-bearing — — — 272 6 2.35
Total interest-bearing deposits (4) 248,713 785 0.32 117,756 1,101 0.93
Short-term borrowings 10,129 137 1.35 8,462 198 2.34
Long-term debt 45,793 800 1.75 24,756 797 3.22
Total interest-bearing liabilities 304,635 1,722 0.57 150,974 2,096 1.39
Noninterest-bearing deposits (4) 114,580 55,513
Other liabilities 11,846 6,899
Shareholders' equity 68,024 34,108
Total liabilities and shareholders' equity $ 499,085 $ 247,494
Average interest-rate spread 3.04 3.00
Net interest income/ net interest margin $ 13,951 3.22 % $ 7,409 3.42 %
Taxable-equivalent adjustment $ 125 $ 96
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 0.22% and 0.64% for the year ended December 31, 2020 and 2019, respectively.

Truist Financial Corporation 11

Credit Quality
Dec. 31 Sept. 30 June 30 March 31 Dec. 31
(Dollars in millions) 2020 2020 2020 2020 2019
Nonperforming Assets
Nonaccrual loans and leases:
Commercial:
Commercial and industrial $ 532 $ 507 $ 428 $ 443 $ 212
CRE 75 52 42 18 10
Commercial construction 14 7 13 2 —
Lease financing 28 32 56 27 8
Consumer:
Residential mortgage 316 205 198 248 55
Residential home equity and direct 205 180 192 170 67
Indirect auto 155 137 155 125 100
Indirect other 5 4 3 1 2
Total nonaccrual loans and leases held for investment 1,330 1,124 1,087 1,034 454
Loans held for sale 5 130 102 41 107
Total nonaccrual loans and leases 1,335 1,254 1,189 1,075 561
Foreclosed real estate 20 30 43 63 82
Other foreclosed property 32 30 20 39 41
Total nonperforming assets $ 1,387 $ 1,314 $ 1,252 $ 1,177 $ 684
Troubled Debt Restructurings (TDRs)
Performing TDRs:
Commercial:
Commercial and industrial $ 78 $ 84 $ 57 $ 65 $ 47
CRE 47 36 22 7 6
Commercial construction — 1 36 36 37
Lease financing 60 1 1 1 —
Consumer:
Residential mortgage 648 640 533 513 470
Residential home equity and direct 88 71 71 66 51
Indirect auto 392 336 342 350 333
Indirect other 6 5 4 5 5
Student 5 5 4 1 —
Credit card 37 38 37 35 31
Total performing TDRs 1,361 1,217 1,107 1,079 980
Nonperforming TDRs 164 140 111 121 82
Total TDRs $ 1,525 $ 1,357 $ 1,218 $ 1,200 $ 1,062
Loans 90 Days or More Past Due and Still Accruing
Commercial:
Commercial and industrial $ 13 $ 6 $ 9 $ 5 $ 1
CRE — 8 3 1 —
Lease financing — — 1 — —
Consumer:
Residential mortgage 841 573 521 610 543
Residential home equity and direct 10 5 9 10 9
Indirect auto 2 8 10 11 11
Indirect other 2 3 3 2 2
Student 1,111 570 478 1,068 188
Credit card 29 24 38 41 22
PCI — — — — 1,218
Total loans 90 days past due and still accruing $ 2,008 $ 1,197 $ 1,072 $ 1,748 $ 1,994
Loans 30-89 Days Past Due
Commercial:
Commercial and industrial $ 83 $ 155 $ 282 $ 262 $ 94
CRE 14 7 6 8 5
Commercial construction 5 — 1 16 1
Lease financing 6 9 10 8 2
Consumer:
Residential mortgage 782 796 703 679 498
Residential home equity and direct 98 103 108 156 122
Indirect auto 495 321 265 521 560
Indirect other 68 52 50 74 85
Student 618 666 442 593 650
Credit card 51 39 34 57 56
PCI — — — — 140
Total loans 30-89 days past due $ 2,220 $ 2,148 $ 1,901 $ 2,374 $ 2,213

12 Truist Financial Corporation

As of/For the Quarter Ended
Dec. 31 Sept. 30 June 30 March 31 Dec. 31
(Dollars in millions) 2020 2020 2020 2020 2019
Allowance for Credit Losses
Beginning balance $ 6,229 $ 6,133 $ 5,611 $ 1,889 $ 1,653
CECL adoption - impact to retained earnings before tax — — — 2,762 —
CECL adoption - reserves on PCD assets — — — 378 —
Provision for credit losses 177 421 844 893 171
Charge-offs:
Commercial:
Commercial and industrial (84) (112) (123) (39) (23)
CRE (19) (44) (14) (1) (5)
Commercial construction (8) (19) — (3) —
Lease financing (4) (44) (4) (2) (9)
Consumer:
Residential mortgage (6) (4) (35) (11) (8)
Residential home equity and direct (46) (52) (65) (68) (25)
Indirect auto (84) (72) (80) (142) (107)
Indirect other (14) (8) (20) (18) (19)
Student (3) (6) (6) (8) —
Credit card (35) (44) (50) (53) (37)
Total charge-offs (303) (405) (397) (345) (233)
Recoveries:
Commercial:
Commercial and industrial 34 20 21 17 6
CRE 1 — 4 — —
Commercial construction 1 2 7 1 1
Lease financing — 4 — — —
Consumer:
Residential mortgage 3 3 2 2 1
Residential home equity and direct 20 16 15 15 10
Indirect auto 24 22 18 23 13
Indirect other 5 4 7 7 5
Student — — 1 — —
Credit card 10 8 6 8 5
Total recoveries 98 79 81 73 41
Net charge-offs (205) (326) (316) (272) (192)
Merger related items and other (2) 1 (6) (39) 257
Ending balance $ 6,199 $ 6,229 $ 6,133 $ 5,611 $ 1,889
Allowance for Credit Losses:
Allowance for loan and lease losses (excluding PCD / PCI loans) $ 5,668 $ 5,675 $ 5,408 $ 4,880 $ 1,541
Allowance for PCD / PCI loans 167 188 294 331 8
Reserve for unfunded lending commitments (RUFC) 364 366 431 400 340
Total $ 6,199 $ 6,229 $ 6,133 $ 5,611 $ 1,889

Truist Financial Corporation 13

As of/For the Year-to-Date
Period Ended Dec. 31
(Dollars in millions) 2020 2019
Allowance for Credit Losses
Beginning balance $ 1,889 $ 1,651
CECL adoption - impact to retained earnings before tax 2,762 —
CECL adoption - reserves on PCD assets 378 —
Provision for credit losses 2,335 615
Charge-offs:
Commercial:
Commercial and industrial (358) (90)
CRE (78) (33)
Commercial construction (30) —
Lease financing (54) (11)
Consumer:
Residential mortgage (56) (21)
Residential home equity and direct (231) (93)
Indirect auto (378) (370)
Indirect other (60) (62)
Student (23) —
Credit card (182) (109)
Total charge-offs (1,450) (789)
Recoveries:
Commercial:
Commercial and industrial 92 25
CRE 5 5
Commercial construction 11 3
Lease financing 4 1
Consumer:
Residential mortgage 10 2
Residential home equity and direct 66 30
Indirect auto 87 52
Indirect other 23 17
Student 1 —
Credit card 32 20
Total recoveries 331 155
Net charge-offs (1,119) (634)
Merger related items and other (46) 257
Ending balance $ 6,199 $ 1,889
--- --- --- --- --- --- --- --- --- ---
Sept. 30 June 30 March 31 Dec. 31
2020 2020 2020 2019
Asset Quality Ratios
Loans 30-89 days past due and still accruing as a percentage of loans and leases % 0.70 % 0.60 % 0.74 % 0.74 %
Loans 90 days or more past due and still accruing as a percentage of loans and leases 0.39 0.34 0.55 0.66
Nonperforming loans and leases as a percentage of loans and leases held for investment 0.37 0.35 0.32 0.15
Nonperforming loans and leases as a percentage of loans and leases (1) 0.40 0.37 0.33 0.18
Nonperforming assets as a percentage of:
Total assets (1) 0.26 0.25 0.23 0.14
Loans and leases plus foreclosed property 0.39 0.37 0.36 0.19
Net charge-offs as a percentage of average loans and leases (2) 0.42 0.39 0.36 0.40
Allowance for loan and lease losses as a percentage of loans and leases 1.91 1.81 1.63 0.52
Ratio of allowance for loan and lease losses to:
Net charge-offs 4.52X 4.49X 4.76X 2.03X
Nonperforming loans and leases 5.22X 5.24X 5.04X 3.41X
Asset Quality Ratios (Excluding PPP, other Government Guaranteed and PCI)
Loans 90 days or more past due and still accruing as a percentage of loans and leases % 0.03 % 0.04 % 0.04 % 0.03 %
Applicable ratios are annualized.
(1)Includes loans held for sale.
(2) The third quarter of 2020 includes 97 million of charge-offs on PCD assets directly related to the implementation of CECL.
As of/For the Year-to-Date
Period Ended Dec. 31
2020 2019
Asset Quality Ratios
Net charge-offs as a percentage of average loans and leases 0.36 % 0.40 %
Ratio of allowance for loan and lease losses to net charge-offs 5.21X 2.44X
Applicable ratios are annualized.

All values are in US Dollars.

14 Truist Financial Corporation

December 31, 2020
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 $ 77 98.7 % $ — — % $ 1 1.3 % $ 78
CRE 47 100.0 — — — — 47
Commercial construction — — — — — — —
Lease financing 60 100.0 — — — — 60
Consumer:
Residential mortgage 383 59.1 107 16.5 158 24.4 648
Residential home equity and direct 82 93.2 5 5.7 1 1.1 88
Indirect auto 333 84.9 59 15.1 — — 392
Indirect other 5 83.3 1 16.7 — — 6
Student 5 100.0 — — — — 5
Credit card 32 86.5 3 8.1 2 5.4 37
Total performing TDRs (1) 1,024 75.2 175 12.9 162 11.9 1,361
Nonperforming TDRs (2) 76 46.3 20 12.2 68 41.5 164
Total TDRs (1)(2) $ 1,100 72.1 % $ 195 12.8 % $ 230 15.1 % $ 1,525
(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
2020 2020 2020 2020 2019
Net Charge-offs as a Percentage of Average Loans and Leases:
Commercial:
Commercial and industrial 0.15 % 0.25 % 0.27 % 0.07 % 0.09 %
CRE 0.27 0.63 0.15 0.01 0.09
Commercial construction 0.39 1.02 (0.43) 0.13 (0.09)
Lease financing 0.20 2.92 0.33 0.08 1.03
Consumer:
Residential mortgage 0.03 0.01 0.25 0.07 0.09
Residential home equity and direct 0.39 0.53 0.73 0.78 0.39
Indirect auto 0.92 0.76 1.03 1.89 2.41
Indirect other 0.31 0.21 0.41 0.47 0.72
Student 0.17 0.28 0.31 0.38 (0.01)
Credit card 2.11 3.00 3.50 3.30 3.32
Total loans and leases 0.27 0.42 0.39 0.36 0.40
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) 2020 2020 2020 2020 2019
ALLL $ 5,835 $ 5,863 $ 5,702 $ 5,211 $ 1,549
Unamortized fair value mark (1) 2,395 2,676 3,077 3,539 4,564
Allowance plus unamortized fair value mark $ 8,230 $ 8,539 $ 8,779 $ 8,750 $ 6,113
Loans and leases held for investment $ 299,734 $ 306,627 $ 314,825 $ 319,229 $ 299,842
Unamortized fair value mark (1) 2,395 2,676 3,077 3,539 4,564
Gross loans and leases $ 302,129 $ 309,303 $ 317,902 $ 322,768 $ 304,406
Allowance for loan and lease losses as a percentage of loans and leases - GAAP 1.95 % 1.91 % 1.81 % 1.63 % 0.52 %
Allowance for loan and lease losses and unamortized fair value mark as a percentage of gross loans and leases - Adjusted (1) (2) 2.72 2.76 2.76 2.71 2.01

(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.

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) 2020 2020 2020 2020 2019
Loans and Leases (2)
Beginning balance unamortized fair value mark $ (2,676) $ (3,077) $ (3,539) $ (4,564) $ (221)
Additions - merger with SunTrust — — — — (4,513)
Accretion 356 367 440 454 170
CECL adoption - reserves on PCD assets — — — 378 —
Purchase accounting adjustments and other activity (75) 34 22 193 —
Ending balance $ (2,395) $ (2,676) $ (3,077) $ (3,539) $ (4,564)
Core deposit and other intangible assets
Beginning balance $ 2,840 $ 3,016 $ 3,168 $ 3,142 $ 678
Additions - merger with SunTrust — — — — 2,535
Additions - acquisitions 320 — — 31 —
Amortization of intangibles (172) (170) (178) (165) (71)
Amortization in net occupancy expense (4) (6) (6) (5) —
Purchase accounting adjustments and other activity — — 32 165 —
Ending balance $ 2,984 $ 2,840 $ 3,016 $ 3,168 $ 3,142
Deposits (3)
Beginning balance unamortized fair value mark $ (26) $ (37) $ (54) $ (76) $ —
Additions - Merger with SunTrust — — — — (83)
Amortization 7 11 17 22 7
Ending balance $ (19) $ (26) $ (37) $ (54) $ (76)
Long-Term Debt (3)
Beginning balance unamortized fair value mark $ (238) $ (262) $ (285) $ (312) $ (10)
Additions - Merger with SunTrust — — — — (309)
Amortization 22 24 23 27 7
Ending balance $ (216) $ (238) $ (262) $ (285) $ (312)

(1)Includes the merger with SunTrust. This summary 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) 2020 2020 2020 2020 2019
Selected Capital Information (preliminary)
Risk-based capital:
Common equity tier 1 $ 37,870 $ 37,879 $ 37,107 $ 36,396 $ 35,643
Tier 1 45,915 45,925 44,248 40,993 40,743
Total 55,011 55,030 53,436 49,395 47,511
Risk-weighted assets 379,538 377,420 382,826 390,348 376,056
Average quarterly tangible assets 478,608 476,868 490,203 454,381 276,591
Risk-based capital ratios:
Common equity tier 1 10.0 % 10.0 % 9.7 % 9.3 % 9.5 %
Tier 1 12.1 12.2 11.6 10.5 10.8
Total 14.5 14.6 14.0 12.7 12.6
Leverage capital ratio (1) 9.6 9.6 9.0 9.0 14.7
Supplementary leverage (2) 8.7 8.9 8.5 7.8 7.9
Equity as a percentage of total assets 13.9 14.0 13.7 13.0 14.1
Common equity per common share $ 46.52 $ 45.86 $ 45.74 $ 45.49 $ 45.66
(1)The leverage ratio is calculated using end of period Tier 1 capital and quarterly average tangible assets. The timing of the merger impacted the 4Q19 result.
(2)Truist became subject to the supplementary leverage ratio in 2020. The 4Q19 measure was an estimate based on a full quarter of average tangible assets.
Dec. 31 Sept. 30 June 30 March 31 Dec. 31
(Dollars in millions, except per share data, shares in thousands) 2020 2020 2020 2020 2019
Calculations of Tangible Common Equity and Related Measures: (1)
Total shareholders' equity $ 70,912 $ 69,973 $ 68,883 $ 66,061 $ 66,558
Less:
Preferred stock 8,048 8,048 7,143 4,599 5,102
Noncontrolling interests 105 106 106 167 174
Intangible assets, net of deferred taxes 26,629 25,923 26,083 26,263 26,482
Tangible common equity $ 36,130 $ 35,896 $ 35,551 $ 35,032 $ 34,800
Outstanding shares at end of period (in thousands) 1,348,961 1,348,118 1,347,609 1,347,461 1,342,166
Tangible Common Equity Per Common Share $ 26.78 $ 26.63 $ 26.38 $ 26.00 $ 25.93

(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) 2020 2020 2020 2020 2019
Residential Mortgage Income
Residential mortgage production revenue $ 229 $ 339 $ 344 $ 206 $ 40
Residential mortgage servicing revenue 150 152 159 169 78
Realization of expected residential MSR cash flows (209) (212) (176) (122) (59)
Residential mortgage income before MSR valuation 170 279 327 253 59
Income statement impact of mortgage servicing rights valuation:
MSRs fair value increase (decrease) 62 (54) (28) (503) 80
MSRs hedge gains (losses) (39) (4) 42 495 (74)
Net MSRs valuation 23 (58) 14 (8) 6
Total residential mortgage income $ 193 $ 221 $ 341 $ 245 $ 65
Commercial Real Estate Related Income
Commercial mortgage production revenue $ 117 $ 49 $ 42 $ 36 $ 44
Commercial mortgage servicing revenue 16 16 18 19 13
Realization of expected commercial MSR cash flows (11) (10) (8) (11) (7)
Commercial real estate related income before MSR valuation 122 55 52 44 50
Income statement impact of mortgage servicing rights valuation:
MSRs fair value increase (decrease) 3 1 (6) (20) 2
MSRs hedge gains (losses) (2) (1) 3 20 (4)
Net MSRs valuation 1 — (3) — (2)
Commercial real estate related income $ 123 $ 55 $ 49 $ 44 $ 48
Other Mortgage Banking Information
Residential mortgage loan originations $ 13,235 $ 15,346 $ 14,631 $ 11,708 $ 7,523
Residential mortgage servicing portfolio (1):
Loans serviced for others 188,341 198,881 209,070 219,979 219,347
Bank-owned loans serviced 50,693 54,587 56,365 56,325 60,211
Total servicing portfolio 239,034 253,468 265,435 276,304 279,558
Weighted-average coupon rate on mortgage loans serviced for others 3.84 % 3.92 % 3.98 % 4.02 % 4.04 %
Weighted-average servicing fee on mortgage loans serviced for others 0.317 0.317 0.315 0.313 0.310
Additional Information
Fair value of derivatives, net 3,282 3,646 3,766 3,276 1,687
Common stock prices:
High 49.72 42.04 46.53 56.68 56.92
Low 37.86 33.47 26.41 24.01 50.02
End of period 47.93 38.05 37.55 30.84 56.32
Banking offices 2,781 2,884 2,916 2,957 2,958
ATMs 4,082 4,237 4,354 4,408 4,426
FTEs (2) 53,693 55,000 55,769 56,504 40,691

(1)Amounts reported are unpaid principal balance.

(2)FTEs represents an average for the quarter. The timing of the merger impacted the 4Q19 result.

Truist Financial Corporation 17

Selected Items (1)
Favorable (Unfavorable)
(Dollars in millions) After-Tax at
Description Pre-Tax Marginal Rate
Selected Items
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)
Fourth Quarter 2019
Incremental operating expenses related to the merger ($80 million in personnel expense, $12 million in professional fees and outside processing, and $9 million in other expense) $ (101) $ (79)
Impact of mortgage portfolio sale ($25 million in provision for credit losses, offset by $22 in residential mortgage income, and a $2 million corporate advance write off included in loan-related expense) 1 1
Third Quarter 2019
Incremental operating expenses related to the merger ($39 million in personnel expense, $12 million in professional fees and outside processing, and $1 million in other expense) $ (52) $ (40)
Redemption of preferred shares (46) (46)
Impact of mortgage portfolio sale ($16 million in provision for credit losses and $4 million in residential mortgage income) 20 15
Second Quarter 2019
Incremental operating expenses related to the merger ($4 million in personnel expense, and $5 million in professional fees and outside processing) $ (9) $ (7)
First Quarter 2019
Incremental operating expenses related to the merger ($1 million in personnel expense, and $1 million in other expense) $ (2) $ (1)

(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) 2020 2020 2020 2020 2019 2020 2019
Efficiency Ratio (1)
Efficiency Ratio Numerator - Noninterest Expense - GAAP $ 3,833 $ 3,755 $ 3,878 $ 3,431 $ 2,575 $ 14,897 $ 7,934
Merger-related and restructuring charges, net (308) (236) (209) (107) (223) (860) (360)
Gain (loss) on early extinguishment of debt — — (235) — — (235) —
Incremental operating expense related to the merger (179) (152) (129) (74) (101) (534) (164)
Amortization of intangibles (172) (170) (178) (165) (71) (685) (164)
Charitable contribution — (50) — — — (50) —
Corporate advance write off — — — — (2) — (2)
Efficiency Ratio Numerator - Adjusted $ 3,174 $ 3,147 $ 3,127 $ 3,085 $ 2,178 $ 12,533 $ 7,244
Efficiency Ratio Denominator - Revenue (2) - GAAP $ 5,651 $ 5,572 $ 5,871 $ 5,611 $ 3,625 $ 22,705 $ 12,568
Taxable equivalent adjustment 28 29 31 37 25 125 96
Securities (gains) losses — (104) (300) 2 116 (402) 116
(Gain) loss on loan portfolio sale — — — — 22 — 18
Efficiency Ratio Denominator - Adjusted $ 5,679 $ 5,497 $ 5,602 $ 5,650 $ 3,788 $ 22,428 $ 12,798
Efficiency Ratio - GAAP 67.8 % 67.4 % 66.1 % 61.1 % 71.0 % 65.6 % 63.1 %
Efficiency Ratio - Adjusted 55.9 57.3 55.8 54.6 57.5 55.9 56.6

(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) 2020 2020 2020 2020 2019 2020 2019
Return on Average Tangible Common Shareholders' Equity (1)
Net income available to common shareholders $ 1,228 $ 1,068 $ 902 $ 986 $ 702 $ 4,184 $ 3,028
Plus: Amortization of intangibles, net of tax 131 130 137 126 57 524 128
Tangible net income available to common shareholders $ 1,359 $ 1,198 $ 1,039 $ 1,112 $ 759 $ 4,708 $ 3,156
Average common shareholders' equity $ 61,991 $ 61,804 $ 61,484 $ 60,224 $ 38,031 $ 61,379 $ 30,697
Less: Average intangible assets, net of deferred taxes 25,930 25,971 26,161 26,429 14,760 26,122 11,460
Average tangible common shareholders' equity $ 36,061 $ 35,833 $ 35,323 $ 33,795 $ 23,271 $ 35,257 $ 19,237
Return on average common shareholders' equity 7.88 % 6.87 % 5.90 % 6.58 % 7.33 % 6.82 % 9.87 %
Return on average tangible common shareholders' equity 14.99 13.31 11.83 13.23 12.91 13.35 16.40

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

Quarter Ended Year-to-Date
Dec. 31 Sept. 30 June 30 March 31 Dec. 31 Dec. 31 Dec. 31
(Dollars in millions, except per share data) 2020 2020 2020 2020 2019 2020 2019
Diluted EPS (1)
Net income available to common shareholders - GAAP $ 1,228 $ 1,068 $ 902 $ 986 $ 702 $ 4,184 $ 3,028
Merger-related and restructuring charges 237 181 160 82 176 660 285
Securities (gains) losses — (80) (230) 2 90 (308) 90
Loss on extinguishment of debt — — 180 — — 180 —
Incremental operating expenses related to the merger 138 115 99 57 79 409 127
Charitable contribution — 38 — — — 38 —
Corporate advance write off — — — — 1 — 1
(Gain) loss on loan portfolio sale — — — — 17 — 14
Redemption of preferred shares — — — — — — 46
Allowance release related to loan portfolio sale — — — — (19) — (31)
Net income available to common shareholders - adjusted $ 1,603 $ 1,322 $ 1,111 $ 1,127 $ 1,046 $ 5,163 $ 3,560
Weighted average shares outstanding - diluted 1,361,763 1,358,122 1,355,834 1,357,545 934,718 1,358,289 815,204
Diluted EPS - GAAP $ 0.90 $ 0.79 $ 0.67 $ 0.73 $ 0.75 $ 3.08 $ 3.71
Diluted EPS - adjusted 1.18 0.97 0.82 0.83 1.12 3.80 4.37

(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

ex993-earningsdeck4q20

Fourth Quarter 2020 Earnings Conference Call Kelly King - Chairman & CEO Bill Rogers - President & COO Daryl Bible - CFO January 21, 2021

2 This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, regarding the financial condition, results of operations, business plans and the future performance of Truist. Words such as “anticipates,” “believes,” “estimates,” “expects,” “forecasts,” “intends,” “plans,” “projects,” “may,” “will,” “should,” “would,” “could” and other similar expressions are intended to identify these forward-looking statements. In particular, forward looking statements include, but are not limited to, statements we make about: (i) future levels of taxable-equivalent revenue, net interest margin, noninterest expense and net charge-offs, (ii) Truist’s strategic objectives and integration priorities for 2021, including planned branch consolidations and digital migrations, (iii) projected amounts of merger-related and restructuring charges and incremental operating expenses related to the merger, (iv) Truist’s medium-term performance with respect to return on tangible common equity and efficiency and capital ratios, (v) the amount of expense savings to be realized from the merger or other strategic initiatives and the timing of such realization, (vi) Truist’s goals for its CET1 ratio, (vii) anticipated amounts of share repurchases, and (viii) projections of future dividends. Forward-looking statements are not based on historical facts but instead represent management’s expectations and assumptions regarding Truist’s business, the economy and other future conditions. Such statements involve inherent uncertainties, risks and changes in circumstances that are difficult to predict. As such, Truist’s actual results may differ materially from those contemplated by forward-looking statements. While there can be no assurance that any list of risks and uncertainties or risk factors is complete, important factors that could cause actual results to differ materially from those contemplated by forward-looking statements include the following, without limitation, as well as the risks and uncertainties more fully discussed under Item 1A-Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2019, Item 1A-Risk Factors in our Quarterly Report on Form 10- Q for the quarter ended September 30, 2020 and in Truist's subsequent filings with the Securities and Exchange Commission: Forward-Looking Statements = risks and uncertainties relating to the merger of BB&T and SunTrust ("Merger"), including the ability to successfully integrate the companies or to realize the anticipated benefits of the Merger; = expenses relating to the Merger and integration of heritage BB&T and heritage SunTrust; = deposit attrition, client loss or revenue loss following completed mergers or acquisitions may be greater than anticipated; = changes in the interest rate environment, including the replacement of LIBOR as an interest rate benchmark, which could adversely affect Truist’s revenue and expenses, the value of assets and obligations, and the availability and cost of capital, cash flows, and liquidity; = volatility in mortgage production and servicing revenues, and changes in carrying values of Truist’s servicing assets and mortgages held for sale due to changes in interest rates; = management’s ability to effectively manage credit risk; = inability to access short-term funding or liquidity; = loss of client deposits, which could increase Truist’s funding costs; = changes in Truist’s credit ratings, which could increase the cost of funding or limit access to capital markets; = additional capital and liquidity requirements; = regulatory matters, litigation or other legal actions, which may result in, among other things, costs, fines, penalties, restrictions on Truist’s business activities, reputational harm, or other adverse consequences; = risks related to originating and selling mortgages, including repurchase and indemnity demands from purchasers related to representations and warranties on loans sold, which could result in an increase in the amount of losses for loan repurchases; = failure to execute on strategic or operational plans, including the ability to successfully complete and/or integrate mergers and acquisitions; = risks relating to Truist’s role as a servicer of loans, including an increase in the scope or costs of the services Truist is required to perform without any corresponding increase in Truist’s servicing fee, or a breach of Truist’s obligations as servicer; = negative public opinion, which could damage Truist’s reputation; = increased scrutiny regarding Truist’s consumer sales practices, training practices, incentive compensation design and governance; = competition from new or existing competitors, including increased competition from products and services offered by non-bank financial technology companies, may reduce Truist’s client base, cause Truist to lower prices for its products and services in order to maintain market share or otherwise adversely impact Truist’s businesses or results of operations; = Truist’s ability to introduce new products and services in response to industry trends or developments in technology that achieve market acceptance and regulatory approval; = Truist’s success depends on the expertise of key personnel, and if these individuals leave or change their roles without effective replacements, Truist's operations and integration activities could be adversely impacted. This could be exacerbated as Truist continues to integrate the management teams of heritage BB&T and heritage SunTrust, or if the organization is unable to hire and retain qualified personnel; = legislative, regulatory or accounting changes may adversely affect the businesses in which Truist is engaged; = evolving regulatory standards, including with respect to capital and liquidity requirements, and results of regulatory examinations, may adversely affect Truist's financial condition and results of operations; = accounting policies and processes require management to make estimates about matters that are uncertain; = general economic or business conditions, either nationally or regionally, may be less favorable than expected, resulting in, among other things, slower deposit or asset growth, a deterioration in credit quality or a reduced demand for credit, insurance or other services; = risk management oversight functions may not identify or address risks adequately; = unfavorable resolution of legal proceedings or other claims or regulatory or other governmental investigations or inquiries could result in negative publicity, protests, fines, penalties, restrictions on Truist's operations or ability to expand its business or other negative consequences, all of which could cause reputational damage and adversely impact Truist's financial condition and results of operations; = competitors of Truist may have greater financial resources or develop products that enable them to compete more successfully than Truist and may be subject to different regulatory standards than Truist; = failure to maintain or enhance Truist’s competitive position with respect to technology, whether it fails to anticipate client expectations or because its technological developments fail to perform as desired or are not rolled out in a timely manner or for other reasons, may cause Truist to lose market share or incur additional expense; = fraud or misconduct by internal or external parties, which Truist may not be able to prevent, detect or mitigate; = operational or communications systems, including systems used by vendors or other external parties, may fail or may be the subject of a breach or cyber-attack that, if successful, could adversely impact Truist's financial condition and results of operations; = security risks, including denial of service attacks, hacking, social engineering attacks targeting Truist’s employees and clients, malware intrusion or data corruption attempts, and identity theft could result in the disclosure of confidential information, adversely affect Truist’s business or reputation or create significant legal or financial exposure; = the COVID-19 pandemic has disrupted the global economy, adversely impacted Truist’s financial condition and results of operations, including through increased expenses, reduced fee income and net interest margin and increases in the allowance for credit losses, and continuation of current conditions could worsen these impacts and also adversely affect Truist’s capital and liquidity position or cost of capital, impair the ability of borrowers to repay outstanding loans, cause an outflow of deposits, and impair goodwill or other assets; = natural or other disasters, including acts of terrorism and pandemics, could have an adverse effect on Truist, including a material disruption of Truist's operations or the ability or willingness of clients to access Truist's products and services; = widespread system outages, caused by the failure of critical internal systems or critical services provided by third parties could adversely impact Truist's financial condition and results of operations; and = depressed market values for Truist’s stock and adverse economic conditions sustained over a period of time may require a write down to goodwill. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. Except to the extent required by applicable law or regulation, Truist undertakes no obligation to revise or update any forward-looking statements.

3 Non-GAAP Information This presentation contains financial information and performance measures determined by methods other than in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Truist’s management uses these "non-GAAP" measures in their analysis of the Corporation's performance and the efficiency of its operations. Management believes these non-GAAP measures provide a greater understanding of ongoing operations, enhance comparability of results with prior periods and demonstrate the effects of significant items in the current period. The Company believes a meaningful analysis of its financial performance requires an understanding of the factors underlying that performance. Truist’s management believes investors may find these non-GAAP financial measures useful. These disclosures should not be viewed as a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non- GAAP performance measures that may be presented by other companies. Below is a listing of the types of non-GAAP measures used in this presentation: Adjusted Efficiency Ratio - 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. Tangible Common Equity and Related Measures - 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. Core NIM - Core net interest margin is a non-GAAP measure that adjusts net interest margin to exclude the impact of purchase accounting. The purchase accounting marks and related amortization for a) securities acquired from the FDIC in the Colonial Bank acquisition and b) loans, deposits and long-term debt from SunTrust, Susquehanna, National Penn and Colonial Bank are excluded to approximate the yields paid by clients. Interest income for PCI loans adjusts the accretion, net of interest reversals, which approximates the interest received from the client. Truist's management believes the adjustments to the calculation of net interest margin for certain assets and liabilities acquired provide investors with useful information related to the performance of Truist's earning assets. Adjusted Diluted EPS - 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. Performance Ratios - The adjusted performance ratios, including adjusted return on average assets, adjusted return on average common shareholders’ equity and adjusted return on average tangible common shareholders’ equity, are non-GAAP in that they exclude merger-related and restructuring charges, selected items and, in the case of return on average tangible common shareholders' equity, amortization of intangible assets. Truist's management uses these measures in their analysis of the Corporation's performance. Truist's management believes these measures provide 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. Insurance Holdings Adjusted EBITDA - EBITDA is a non-GAAP measurement of operating profitability that is calculated by adding back interest, taxes, depreciation and amortization to net income. Truist's management also adds back merger- related and restructuring charges, incremental operating expenses related to the merger and other selected items. Truist's management uses this measure in its analysis of the Corporation's Insurance Holdings segment. 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. Allowance for Loan and Lease Losses and Unamortized Fair Value Mark as a Percentage of Gross Loans and Leases - 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. Selected items affecting results are included on slide 8.

4

5 Living Our Purpose Despite the many challenges of 2020, we were guided by our purpose to inspire and build better lives and communities Launched Seeds of Hope, Truist One Team Fund, and The Home Page program Increased financial resources for LMI communities through our $60 billion Community Benefits Plan Supported those who are historically underrepresented through a $78 million commitment, including $40 million to help establish CornerSquare Community Capital, and $20 million over three years to support HBCUs and their students Continued investing in home markets, including $7 million in total giving in the Metro Charlotte Area, $10 million in total giving to the Metro Atlanta area, and donating almost $4.8 million in philanthropic giving to Winston-Salem and Piedmont Triad communities Provided more than $100 million in special COVID-19 support for teammates; payment relief assistance through more than 750K client accommodations; nearly $13 billion in PPP funding helping more than 80,000 companies protect nearly three million jobs; and 355 grants to community partners Launched Truist Cares in response to COVID-19, a $50 million commitment to meet the immediate and long-term needs of our communities, clients, and teammates

6 Executing the Merger Accomplishments ▪ Activated Truist culture ▪ Established brand and visual identity ▪ Integrated heritage capital markets businesses to go to market as Truist Securities ▪ Activated Integrated Relationship Management ▪ Migrated 364 correspondent mortgage lenders to Truist origination ecosystem ▪ Consolidated 104 branches leveraging blended branch program ▪ Divested 30 branches to satisfy regulatory conditions for merger ▪ Executed numerous corporate function integration activities across Audit, Risk, Legal, and Finance ▪ Completed Truist job regrading initiative 2021 Integration Priorities ▪ Complete Wealth brokerage conversion ▪ Align Wealth teammates under common Salesforce platform ▪ Continue rationalizing branch footprint (226 branch consolidations targeted for 1Q21) ▪ Implement Digital First migration to further T3 strategy ▪ Migrate teammates to the Truist retail mortgage origination ecosystem ▪ Complete testing protocols for core banking conversion ▪ Unveil Innovation and Technology Center ▪ Convert heritage BB&T clients to Truist ecosystem for retail and commercial ▪ Integrate industry-leading commercial banking platform

7 4Q20 Highlights Summary Income Statement ($ MM) 4Q20 Total taxable-equivalent revenue1 $5,679 Provision for credit losses 177 Income before income taxes 1,641 Net income 1,330 Net income available to common shareholders 1,228 Adjusted net income available to common shareholders2,3 1,603 1 Composed of taxable-equivalent net interest income and noninterest income 2 See non-GAAP reconciliations in the appendix 3 Excludes merger-related and restructuring charges and incremental operating expenses related to the merger 4 Current quarter regulatory capital information is preliminary ▪ Strong financial performance included $1.6 billion of adjusted net income or $1.18 per diluted share and adjusted ROTCE of 19.03% ▪ Taxable-equivalent revenue increased 5.5% annualized vs. 3Q20, reflecting robust fee income growth and stable net interest income ▪ Record investment banking and trading income and commercial real estate, together with strong insurance performance, drove $179 million increase in adjusted noninterest income vs. 3Q20 ▪ Core NIM remained resilient, benefiting from lower deposit costs, higher loan yields (PPP payoffs and deferred interest recognition), and asset mix changes; these effects partially offset by lower reinvestment rates in the securities portfolio ▪ Adjusted efficiency ratio improved to 55.9% vs. 57.3% in prior quarter ▪ Lower net charge-offs and decrease in loans and leases held for investment resulted in lower provision for credit losses; modest ACL decrease reflects decision to exit a small ticket loan and lease portfolio ▪ Board authorized the repurchase of up to $2 billion in common stock (beginning in 1Q21) and other actions to optimize capital positioning ▪ Acquired five insurance brokers, with combined annualized revenues in excess of $110 million 4Q20 Performance Metrics GAAP / Unadjusted Adjusted 2,3 Diluted earnings per share $0.90 $1.18 Return on average assets 1.05% 1.35% Return on average common equity 7.88% 10.25% Return on average tangible common equity2 14.99% 19.03% Efficiency ratio 67.8% 55.9% Asset Quality and Capital 4Q20 Nonperforming assets as a % of total assets 0.27% Net charge-offs as a % of average loans and leases 0.27% Common equity tier 1 capital ratio (CET1)4 10.0% Key Points

8 Selected Items Affecting 4Q20 Results Item ($ MM, except per share impact) Pre-Tax After-Tax Diluted EPS Impact 2 Merger-related and restructuring charges ($308) ($237) ($0.18) Incremental operating expenses related to the merger1 ($179) ($138) ($0.10) 1 Includes costs not classified as merger-related and restructuring charges that are also excluded when calculating adjusted disclosures. Refer to the non-GAAP disclosures in the appendix. 2 Amounts may be rounded Merger-related costs referenced above are not expected to be part of the run rate post 2022

9 Digital First Migration Consumer Migration Waves 1Q21 2Q21 3Q21 4Q21 Two leading digital experiences Pilot of the new Truist digital experience Client migrations to Truist experience in waves Migration complete to the premier Truist experience

10 Digital Acceleration Digital Commerce Growth Nov-19 Nov-20 Active Mobile App Users Nov-19 Nov-20 Mobile Check Deposit Activity Accounts With Paperless Adoption Nov-19 May-20 Nov-20 Nov-19 May-20 Nov-20 26% growth in digital sales 12% growth in active users 22% growth in transactions 5% growth in statement suppressions Results reflect combined transactions and accounts from BB&T and SunTrust Digital commerce defined as products delivered through digital applications Active users reflects clients that have logged in using the mobile app over the prior 90 days; clients using mobile app at both organizations were counted only once T3 Highlights from 4Q20 528K 664K 3.48MM 3.90MM 8.09MM 8.49MM 1,414K 1,730K SunTrust: New Digital Experience ▪ Rolled out new SunTrust business online and mobile experience, a digital platform for small business and emerging commercial clients ▪ Mobile experience includes significant upgrades, such as mobile check deposit, user management, ACH approvals, and more ▪ Solution leverages in-house experience design and development; early client feedback ratings show significant improvement to experience; already used by 214,000 clients ▪ Began rollout to clients; insights help clients manage spending and saving behaviors ▪ Notable planned insights include: EOM cash flow analysis, spending and deposit notifications, subscription renewal alerts, upcoming payment with insufficient deposit alerts ▪ Clients receive average of 8 insights per month; average client rating of 4.5 out of 5 BB&T: AI-driven digital insights provide automated financial guidance to better our clients’ lives

11 Loans & Leases Average Loans & Leases HFI and Loan Yields $171,268 $193,465 $183,700 $178,270 $129,803 $128,164 $126,744 $124,590 5.02% 4.21% 4.06% 4.13% Commercial LHFI ($ MM) Consumer & Card LHFI ($ MM) Loans HFI yield (%) 1Q20 2Q20 3Q20 4Q20 ▪ Average loans and leases decreased $7.6 billion sequentially driven largely by reductions in commercial loans and residential mortgage • $5.4 billion decrease in commercial due primarily to $4.2 billion reduction in C&I, reflecting paydown of commercial lines and lower utilization; $1.4 billion reduction in PPP loans ($304 million average impact); and $1 billion transfer of commercial loans and leases to held for sale ($323 million average impact) ◦ Partially offset by growth in mortgage warehouse, dealer floor plan, and government finance lending • $2.7 billion decrease in residential mortgage due to seasonally lower loan production and runoff due to refinance activity ▪ Indirect auto increased $1.1 billion vs. 3Q20 due to expanded client offerings in improving credit environment (predominantly prime borrowers) ▪ Loan yields increased 7 bps quarter over quarter, benefiting from fee income on PPP loan payoffs and recognition of interest previously deferred on loans granted a COVID-19 related accommodation Loans & Leases Held for Investment ($ MM) Average balances 3Q20 4Q20 Linked Quarter Change Commercial: Commercial and industrial $143,452 $139,223 ($4,229) CRE 27,761 27,030 (731) Commercial construction 6,861 6,616 (245) Lease financing 5,626 5,401 (225) Consumer: Residential mortgage 51,500 48,847 (2,653) Residential home equity and direct 26,726 26,327 (399) Indirect auto 24,732 25,788 1,056 Indirect other 11,530 11,291 (239) Student 7,446 7,519 73 Credit card 4,810 4,818 8 Total loans & leases held for investment $310,444 $302,860 ($7,584) Key Points

12 Deposits Average Deposits & Costs $334,649 $370,818 $372,211 $375,266 0.70% 0.51% 0.22% 0.10% 0.07% Total deposits ($ MM) IBD cost (%) Total deposit cost (%) 1Q20 2Q20 3Q20 4Q20 ▪ Average deposits increased $3.1 billion sequentially to $375.3 billion, driven largely by a $3.1 billion increase in average noninterest-bearing deposits and a $3.2 billion increase in average interest checking, partially offset by a $4.3 billion decline in time deposits ▪ Average money market and savings accounts increased $1.1 billion to $124.7 billion ▪ Noninterest-bearing deposits were 33.9% of total deposits in 4Q20, up from 33.3% in 3Q20 and 30.7% in 2Q20 ▪ Decrease in time deposits was primarily due to maturity of wholesale negotiable certificates of deposit and higher-cost personal and business accounts ▪ 4Q20 average total deposit cost was 7 bps, down from 10 bps in 3Q20; average interest-bearing deposit cost declined from 15 bps to 11 bps Deposits ($ MM) Average balances 3Q20 4Q20 Linked Quarter Change Noninterest-bearing deposits $123,966 $127,103 $3,137 Interest checking 96,707 99,866 3,159 Money market and savings 123,598 124,692 1,094 Time deposits 27,940 23,605 (4,335) Total deposits $372,211 $375,266 $3,055 Key Points 0.32% 0.15% 0.11%

13 Net Interest Income and Interest Rate Sensitivity ▪ Reported NIM decreased 2 bps sequentially to 3.08% • Purchase accounting accretion contributed 36 bps vs. 38 bps in 3Q20 ▪ Core NIM of 2.72% was unchanged vs. 3Q20; key drivers included: • Higher loan yields reflecting accelerated fee income from PPP loan payoffs (+3 bps) • Recognition of $8 million of deferred interest on loans with COVID-19 accommodations following a $21 million build in 3Q20 (+3 bps) • Lower interest-bearing liability costs (+2 bps) • Excess liquidity (-8 bps) ▪ NII sensitivity increased quarter over quarter, driven by: • Core deposit growth • Pay-fixed interest rate swaps • Less fixed-rate loans (residential mortgages) • Impact of the above items offset partially by an increase in fixed-rate investment securities $3,687 $3,479 $3,391 $3,394 3.58% 3.13% 3.10% 3.08%3.06% 2.67% 2.72% 2.72% Net interest income TE ($ MM) Reported NIM (%) Core NIM (%) 1Q20 2Q20 3Q20 4Q20 Key Points -1.94% -1.62% +2.68% +3.43% -2.09% -1.82% +3.24% +4.18% At 9/30/20 At 12/31/20 Down 50 Down 25 Up 50 Up 100 Net Interest Income and Margin Change in Net Interest Income1 1 Market rate increase or decrease scenarios assume a ramped, parallel 25 basis point change per quarter in market interest rates and that market rates floor at 0%

14 Noninterest Income ▪ Noninterest income increased $75 million sequentially; the increase was $179 million when excluding $104 million of securities gains from 3Q20 ▪ 4Q20 results benefited from record performances in investment banking and trading income and commercial real estate related income, as well as strong insurance performance and increased lending related fees • Investment banking and trading income increased $64 million relative to 3Q20, reflecting higher M&A and loan syndication fees, reduced counterparty reserves, and improved core trading income • Commercial real estate related income increased $68 million sequentially driven primarily by structured real estate gains and strong commercial mortgage loan production and sales activity • Insurance income increased 7% or $36 million relative to 4Q19 due to higher property and casualty commissions resulting from strong production and premium growth, as well as acquisitions • Lending related fees increased $28 million vs. 3Q20 due primarily to gains from early payoffs of certain lease transactions ▪ Residential mortgage income decreased $28 million sequentially due largely to reduced margins and seasonally lower loan volumes Noninterest Income ($ MM) 3Q20 4Q20 Linked Quarter Change Insurance income $518 $545 $27 Service charges on deposits 247 266 19 Wealth management income 324 332 8 Card and payment related fees 200 203 3 Residential mortgage income 221 193 (28) Investment banking and trading income 244 308 64 Operating lease income 72 77 5 Income from bank-owned life insurance 46 44 (2) Lending related fees 77 105 28 Commercial real estate related income 55 123 68 Securities gains (losses) 104 — (104) Other income (loss) 102 89 (13) Total noninterest income $2,210 $2,285 $75 Adjusted noninterest income1 $2,106 $2,285 $179 Noninterest Income & Fee Income Ratio $1,961 $2,423 $2,210 $2,285 34.9% 41.3% 39.7% 40.4% Noninterest income ($ MM) Fee income ratio (%) 1Q20 2Q20 3Q20 4Q20 Key Points 1 Excludes securities gains (losses)

15 Noninterest Expense & Efficiency ▪ Noninterest expense increased $78 million sequentially; 4Q20 results reflect a $99 million increase in merger-related charges and operating expenses relative to 3Q20 ▪ Adjusted noninterest expense1 increased $27 million sequentially, driven primarily by higher professional fees and outside processing costs and increased personnel expense • Professional fees and outside processing costs increased $70 million due largely to strategic technology projects and merger activities • Personnel expense increased $50 million, reflecting higher incentives arising from strong revenue production and the impact of job regrading ◦ Job regrading resulted in additional personnel expense recognized in 4Q20, ~$60 million of which related to prior periods (one-time adjustment) ▪ Other expense decreased $63 million due primarily to 3Q20 charitable contribution ▪ Net occupancy benefited from lower rent expense from vacated properties ▪ Average FTEs decreased by 1,307 quarter over quarter to 53,693 Noninterest Expense ($ MM) 3Q20 4Q20 Linked Quarter Change Personnel expense $2,058 $2,108 $50 Net occupancy expense 233 207 (26) Professional fees and outside processing 323 393 70 Software expense 221 215 (6) Equipment expense 127 121 (6) Marketing and customer development 75 58 (17) Operating lease depreciation 56 54 (2) Loan-related expense 59 65 6 Amortization of intangibles 170 172 2 Regulatory costs 34 32 (2) Merger-related and restructuring charges 236 308 72 Other expense 163 100 (63) Total noninterest expense $3,755 $3,833 $78 Adjusted noninterest expense1 $3,147 $3,174 $27 Noninterest Expense & Efficiency $3,431 $3,878 $3,755 $3,833 61.1% 66.1% 67.4% 67.8% 54.6% 55.8% 57.3% 55.9% Total noninterest expense ($ MM) GAAP efficiency (%) Adjusted efficiency (%) 1Q20 2Q20 3Q20 4Q20 Key Points 1 Excludes merger-related charges, amortization of intangibles, loss on early extinguishment of debt and selected items in the Quarterly Performance Summary

16 Merger Cost Update Anticipated Total Merger Costs Through 2022 (Not in Run Rate Thereafter) 1 Includes net occupancy, software, equipment, loan processing, and other expense Estimated total merger-related and restructuring charges and incremental operating expenses include costs projected through 2022 (not expected be part of the run rate post 2022); excludes non-merger restructuring items Merger-Related and Restructuring Charges (Expenses to complete merger with no future benefit) Severance & comp Estimated Total ~$2.1B ($1.2B incurred since 1Q19) Occupancy & equipment Professional services System conversion costs Incremental Operating Expenses Related to the Merger (Expenses for which the ongoing entity receives a future benefit) Personnel Estimated Total ~$1.8B ($725MM incurred since 1Q19) Professional fees & outside processing Marketing & other development All other operating expenses1

17 Asset Quality Loss Absorbency $5,211 $5,702 $5,863 $5,835 $8,750 $8,779 $8,539 $8,230 ALLL ($ MM) ALLL + unamortized loan marks ($ MM) ALLL as % of loans and leases ALLL + unamortized loan marks as % of gross loans and leases 1Q20 2Q20 3Q20 4Q20 Nonperforming Assets $1,177 $1,252 $1,314 $1,387 0.23% 0.25% 0.26% 0.27% Nonperforming assets ($ MM) NPAs as a % of total assets 1Q20 2Q20 3Q20 4Q20 Key Points 1.63% 2.71% 1 ALLL + unamortized loan marks as % of gross loans and leases is a non-GAAP measure. See non-GAAP reconciliations in the attached appendix. 2 See selected credit exposures slide in the attached appendix 1.81% 2.76% Net Charge-offs and Provision $272 $316 $326 $205 $893 $844 $421 $177 Net charge-offs ($ MM) Provision NCOs as % of avg. loans and leases 1Q20 2Q20 3Q20 4Q20 0.36% 0.39% ▪ Asset quality metrics remained relatively stable compared with 3Q20, reflecting diversification benefits of the merger and effective problem asset resolution ▪ Criticized and classified exposures declined 8.4% relative to 3Q20 ▪ Annualized net charge-offs as a percentage of average loans and leases were 0.27%, a decrease of 15 bps • 3Q20 results reflected additional charge-offs related to the implementation of CECL • Excluding these additional charge-offs, the annualized net charge-off ratio decreased 2 bps in 4Q20 ▪ Provision for credit losses totaled $177 million reflecting lower net charge-offs and a modest reduction in reserves due largely to a decision to exit a small ticket loan and lease portfolio and transfer the related loans to held for sale ▪ Active accommodations declined from $6.9 billion in 3Q20 to $4.0 billion at 4Q20; of the borrowers who exited commercial and consumer payment relief programs, 97.2% and 90.6%, respectively, either paid off their loan balances or are in current status ▪ Exposure to COVID-sensitive industries decreased 2.6% during the quarter to $27.1 billion and remain at approximately 9.0% of outstanding loans2 1 0.42% 2.76% 1.91% ALLL for Loans & Leases to Net Charge-offs 1Q20 2Q20 3Q20 4Q20 4.76x 7.15x 4.49x 4.52x 0.27% 1.95% 2.72%

18 Allowance for Credit Losses ($ in MM) $5,611 $6,133 $6,229 $6,199 1.76% 1.95% 2.03% 2.07% 1Q20 2Q20 3Q20 4Q20 Allowance for Credit Losses Highlights ▪ 4Q20 ACL of $6.2 billion or 2.07% (2.15% excluding PPP loans); $30 million sequential quarter decrease and $1.2 billion increase since adopting CECL on January 1, 2020 ▪ Reserve considers: • Continued economic uncertainty • COVID-19 sensitive industry exposures as well as risk associated with consumer credit • Impact of government relief packages and payment accommodations on expected losses • Observations from client monitoring regarding payment capacity and performance • Model limitations arising from unprecedented economic conditions and forecasts • Decision to exit a small ticket loan and lease portfolio Assumptions ▪ ACL reflects the forecasted economic outlook as well as qualitative consideration of continued uncertainty due to COVID-19 • Unemployment rate remains fairly stable through mid-2021 followed by improvement through the remainder of the reasonable and supportable forecast period • GDP recovers to pre-pandemic level by the end of 2021 % of ACL to total LHFI Key Points

19 Capital and Liquidity Position ▪ CET1 ratio remained unchanged at 10.0% and was 9.3% on a fully phased-in basis ▪ Declared 4Q20 common dividend of $0.45 per share; dividend and total payout ratios were 49.4% ▪ Board authorized the repurchase of up to $2 billion of common stock beginning in 1Q21 and other actions to optimize Truist’s capital position • Intend to maintain CET1 ratio at approximately 10% after considering strategic actions (such as bolt-on acquisitions) and share repurchases, as well as changes in risk-weighted assets • Announced the forthcoming redemption of all $450 million of Series F and all $500 million of Series G Preferred Stock • Anticipate share repurchases of ~$500 million during 1Q21 ▪ Liquidity ratios remain strong • Average LCR was approximately 113% for 4Q20 • Liquid asset buffer was 20.2% at December 31, 2020 Capital Ratios 9.3% 9.7% 10.0% 10.0% Common Equity Tier 1 Tier 1 Total 1Q20 2Q20 3Q20 4Q20 Key Points Current quarter regulatory capital information is preliminary 10.5% 12.7% 11.6% 12.2% 12.1% 14.0% 14.6% Category III LCR & HQLA 117% 116% 117% 113% $74.2 $79.5 $79.9 $81.0 LCR HQLA ($ B) 1Q20 2Q20 3Q20 4Q20 14.5%

20 Committed to Achieving Net Cost Saves Digital Innovation Marketing / Branding Talent / Benefits Technology Platforms Third Party Spend Significantly ahead of target for contracted vendor savings; targeting 10% reduction in sourceable spend Non-Branch Facilities Targeting ~4.8MM net sq. ft.reduction; Approx. 50% complete in 2020, with remainder set for 2021 (most in 1H21) ~$30 per sq. ft. anticipated gross savings Retail Banking Driven by branch closures ~800 total closures by 1Q22, with 400+ by y/e 2021 Technology Driven by integration efforts, applications, hardware, and staff rationalization; bulk of savings anticipated in 2022 Personnel1 Avg. FTEs decreased by ~8% at y/e 2020 Includes normal attrition and reductions in force 1 Reflects normal attrition and reductions in force from 1Q19 proforma through y/e 2020

21 Cost Saves Progress Medium-Term Performance Targets Net Expense Savings - Run Rate1 ROTCE Low 20% Adjusted Efficiency Low 50% CET1 10% 4Q20 annualized $640MM 40% of net cost saves 4Q21 annualized $1,040MM 65% of net cost saves 4Q22 annualized $1,600MM 100% of net cost saves 4Q20 Core Expenses Relative to Targeted Savings ($ in millions) $3,174 $(69) $(35) $(33) $3,037 4Q20 Adjusted noninterest expense Expense impacts related to prior periods Commissions on higher revenue Non-qualified plan expenses Adjusted noninterest expense excluding special items $2,000 $2,500 $3,000 $3,500 1 4 1 Adjusted noninterest expense excludes merger-related & restructuring costs, incremental operating expenses related to the merger, and amortization of intangibles 2 Includes salary regrading and other impacts attributable to earlier quarters (primarily reflects one-time adjustment) 3 Estimated additional commissions and other variable pay due to strong fee income performance in capital markets, wealth, insurance, and mortgage (excess of internal forecasts when projecting cost saves) 4 Substantially offset in noninterest income 2 $3,040 Targeted level of core expenses 3

22 Value Proposition Purpose-driven: Committed to inspire and build better lives and communities Growing earnings stream with less volatility relative to peers over the long-term ▪ Sixth-largest commercial bank in the U.S. ▪ Strong market share in vibrant, fast- growing MSAs throughout the Southeast and Mid-Atlantic and a growing national presence ▪ Comprehensive business mix with distinct capabilities in traditional banking, capital markets and insurance ▪ Better together: “Best of breed” talent, technology, strategy, and processes ▪ Continued confidence in achieving $1.6 billion of net cost savings ▪ Highly complementary businesses and expanded client base combine to yield revenue synergies ▪ Returns and capital buoyed by purchase accounting accretion ▪ Meaningful investments in innovative technologies, teammates, marketing, and advertising ▪ Prudent and disciplined risk and financial management ▪ Conservative risk culture; leading credit metrics; among the highest- rated large banks ▪ Diversification benefits arising from the merger ▪ Stress test well ▪ Strong capital and liquidity support flight to quality ▪ Defensive balance sheet insulated by purchase accounting marks, combined with CECL credit reserves Exceptional franchise with diverse products, services, and markets Uniquely positioned to deliver best-in-class efficiency and returns while investing in the future Strong capital and liquidity with resilient risk profile enhanced by the merger

Appendix

A-1 Consumer Banking & Wealth 3Q20 4Q20 Net interest income $2,193 $2,195 Provision for credit losses 181 116 Noninterest income 990 994 Noninterest expense 1,934 1,955 Pre-tax income 1,068 1,118 Segment net income 816 854 Average loans(1) $139.5 $138.0 Average deposits 223.9 227.9 Mortgages serviced for others ($ B)(2) $198.9 $188.3 Branches 2,884 2,781 ATMs 4,237 4,082 In co m e S ta te m en t ( $ M M ) B al an ce S he et ( $ B ) O th er K ey M et ric s (1) Excludes loans held for sale (2) Amount reported reflects end of period balance Key Points Represents performance for Retail Community Banking, Wealth, Mortgage Banking, Dealer Retail Services and National Consumer Finance & Payments ▪ 104 branches closed, with 1 new branch opened, for a net of 103 branches closed in 4Q20 ▪ Sale of institutional investment advisors business closed December 31, 2020; definitive agreements to sell institutional recordkeeping businesses signed and expected to close in 1Q21 ▪ Noninterest income increased $4 million from 3Q20, primarily driven by higher service charges on deposits, proceeds from the sale of institutional investment advisors business, higher client activity and market valuation increasing wealth fees, partially offset by seasonally lower residential mortgage income ▪ Noninterest expense increased $21 million, or 1% from 3Q20, primarily due to higher operating charge-offs, merger-related expenses, equipment expenses, professional services fees, loan related expenses from higher client activity, and personnel expenses, partially offset by lower software and marketing expenses ▪ Average loans held for investment decreased $1.5 billion, or 1% from 3Q20, primarily due to lower residential mortgage and home equity lending, partially offset by increased mortgage warehouse lending, indirect auto lending, and LightStream ▪ Average deposits increased $4.0 billion, or 2% from 3Q20, primarily due to pandemic-related client behavior and various stimulus programs ▪ 4Q20 average total deposit cost decreased 4 bps to 8 bps; average interest- bearing deposit cost decreased 6 bps to 11 bps

A-2 Corporate & Commercial Banking 3Q20 4Q20 Net interest income $1,277 $1,283 Provision for credit losses 311 60 Noninterest income 609 789 Noninterest expense 843 841 Pre-tax income 732 1,171 Segment net income 584 918 Average loans(1) $167.8 $161.8 Average deposits 139.5 139.2 In co m e S ta te m en t ( $ M M ) ▪ Noninterest income increased $180 million, or 30% from 3Q20, driven by higher investment banking and trading income, commercial real estate related income, lending related fees, and mark-to-market gains on SBIC funds ▪ Noninterest expense decreased $2 million from 3Q20 primarily due to lower operating charge-offs and operating lease depreciation, partially offset by higher merger-related expenses, professional service fees, and occupancy expenses ▪ Average loans held for investment decreased $6.0 billion, or 4% from 3Q20, due primarily to continued repayments on drawn revolvers and lower utilization as well as PPP loan payoffs ▪ Average deposits decreased $359 million relative to 3Q20, due to corporate clients utilizing cash for revolver repayments and optimizing deposit returns, partially offset by seasonally higher balances from commercial clients ▪ 4Q20 average total deposit cost increased 1 bp to 3 bps; average interest-bearing deposit cost increased 3 bps to 6 bps B al an ce S he et ($ B ) (1) Excludes loans held for sale Key Points Represents performance for Commercial Community Banking, Corporate & Investment Banking and CIG – Real Estate

A-3 Insurance Holdings 4Q19 3Q20 4Q20 Net interest income $27 $24 $22 Noninterest income 536 524 562 Total revenue 563 548 584 Provision for credit losses 2 — 2 Noninterest expense 481 446 451 Pre-tax income 80 102 131 Segment net income 59 77 99 Y-o-Y organic revenue growth 7.9% 5.3% 2.9% Net acquired revenue $1 $4 $9 Performance based commissions 17 15 20 Adjusted EBITDA(1) 132 123 159 Adjusted EBITDA margin(1) 23.4% 22.4% 27.3% In co m e S ta te m en t ( $ M M ) P er fo rm an ce ( $ M M ) ▪ 4Q20 organic growth driven by continued market firming, shrinking carrier capacity, and stable exposure units ▪ 4Q20 new business up 19.5% due to strong demand in Wholesale as market pushes more risk to excess and surplus (E&S) lines ▪ Low interest rates and elevated catastrophe activity likely to keep market firm ▪ Margin expansion driven by prudent expense control and lower travel-related expenses ▪ Acquired five insurance brokers, with combined annualized revenues in excess of $110 million Key Points (1) EBITDA is a non-GAAP measurement of operating profitability that is calculated by adding back interest, taxes, depreciation and amortization to net income. Truist's management also adds back merger- related and restructuring charges, incremental operating expenses related to the merger and other selected items. Truist's management uses this measure in its analysis of the Corporation's Insurance Holdings segment. 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. See non-GAAP reconciliations included in the attached Appendix. Represents performance for Retail and Wholesale Insurance businesses and Premium Finance

A-4 Purchase Accounting Summary(1) ($ MM) As of/For the Quarter Ended Dec. 31 Sept. 30 June 30 March 31 Dec. 31 2020 2020 2020 2020 2019 Loans and Leases(2) Beginning balance unamortized fair value mark $ (2,676) $ (3,077) $ (3,539) $ (4,564) $ (221) Additions - merger with SunTrust — — — — (4,513) Accretion 356 367 440 454 170 CECL adoption - reserves on PCD assets — — — 378 — Purchase accounting adjustments and other activity (75) 34 22 193 — Ending balance $ (2,395) $ (2,676) $ (3,077) $ (3,539) $ (4,564) Core deposit and other intangible assets Beginning balance $ 2,840 $ 3,016 $ 3,168 $ 3,142 $ 678 Additions - merger with SunTrust — — — — 2,535 Additions - acquisitions 320 — — 31 — Amortization (172) (170) (178) (165) (71) Amortization in net occupancy expense (4) (6) (6) (5) — Purchase accounting adjustments and other activity — — 32 165 — Ending balance $ 2,984 $ 2,840 $ 3,016 $ 3,168 $ 3,142 Deposits(3) Beginning balance unamortized fair value mark $ (26) $ (37) $ (54) $ (76) $ — Additions - Merger with SunTrust — — — — (83) Amortization 7 11 17 22 7 Ending balance $ (19) $ (26) $ (37) $ (54) $ (76) Long-Term Debt(3) Beginning balance unamortized fair value mark $ (238) $ (262) $ (285) $ (312) $ (10) Additions - Merger with SunTrust — — — — (309) Amortization 22 24 23 27 7 Ending balance $ (216) $ (238) $ (262) $ (285) $ (312) (1) Includes the merger with SunTrust. This summary 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.

A-5 Selected Credit Exposures A Highly Diversified Portfolio ▪ Loan balances for COVID-19 impacted industries decreased $0.7 billion or 2.6% from 3Q, ending at $27.1 billion ▪ Hotels, Resort & Cruise Lines decreased $298 million driven by paydowns ▪ Oil & Gas outstandings were also down quarter over quarter, reflecting a $290 million or 5.6% decrease, ending at $4.9 billion ▪ Sensitive Retail, Acute Care Facilities, and Restaurants outstandings decreased by 12%, 1.2%, and 0.9%, respectively, whereas Senior Care increased 3.5% or $207 million from September ▪ Leveraged Lending balances totaled $9.4 billion, up 9.3% quarter over quarter primarily due to new production and migration of existing loans ▪ Small CRE totaled $4.4B in outstandings; largest concentrations in retail, single family residential, and office (representing 26%, 23%, and 16%, respectively) Key Points Note: Industry exposures are based on systemic industry assignments (NAICS) at the borrower level as of 12/31/20 Outstandings ($ B) % of Total Loans HFI Hotels, Resorts & Cruise Lines* $6.5 2.2 % Senior Care 6.2 2.1 Oil & Gas Portfolio 4.9 1.6 Acute Care Facilities 4.6 1.6 Restaurants 2.9 1.0 Sensitive Retail 2.0 0.7 Total $27.1 9.0 % as of 12/31/20 Outstandings ($ B) % of Total Loans HFI Leveraged Lending $9.4 3.1 % Small Secured Real Estate** 4.4 1.5 Additional exposures **Small CRE <=$2MM based on exposure *Hotel exposures include REITs, real estate secured and Grandbridge

A-6 1Q21 - 3Q21 Preferred Stock Projected Dividends 3ML = 3-month LIBOR. Estimates assume an average LIBOR rate of 0.18% for 1Q21-3Q21. Actual 3ML could vary significantly causing dividend payments to differ from the estimates shown above. Truist Preferred Outstandings ($ MM) 1Q21 2Q21 3Q21 Series F $450.0 $5.9 — — Series G $500.0 $6.5 — — Series H $465.0 $6.5 $6.5 $6.5 Series I $172.5 $1.7 $1.8 $1.8 Series J $101.5 $1.0 $1.0 $1.0 Series L $750.0 — $18.9 — Series M $500.0 — $12.8 — Series N $1,700.0 $40.8 — $40.8 Series O $575.0 $7.5 $7.5 $7.5 Series P $1,000.0 — $24.8 — Series Q $1,000.0 $25.5 — $25.5 Q catch-up 1Q21 only $10.2 — — Series R $925.0 $11.0 $11.0 $11.0 Estimated dividends based on current interest rates and amounts outstanding ($ MM) $116.7 $84.4 $94.2

Non-GAAP Reconciliations

A-8 Quarter Ended Dec. 31 Sept. 30 June 30 March 31 Dec. 31 2020 2020 2020 2020 2019 Net income available to common shareholders - GAAP $ 1,228 $ 1,068 $ 902 $ 986 $ 702 Merger-related and restructuring charges 237 181 160 82 176 Securities (gains) losses — (80) (230) 2 90 Loss on extinguishment of debt — — 180 — — Incremental operating expenses related to the merger 138 115 99 57 79 Charitable contribution — 38 — — — Corporate advance write off — — — — 1 (Gain) loss on loan portfolio sale — — — — 17 Allowance release related to loan portfolio sale — — — — (19) Net income available to common shareholders - adjusted $ 1,603 $ 1,322 $ 1,111 $ 1,127 $ 1,046 Weighted average shares outstanding - diluted 1,361,763 1,358,122 1,355,834 1,357,545 934,718 Diluted EPS - GAAP $ 0.90 $ 0.79 $ 0.67 $ 0.73 $ 0.75 Diluted EPS - adjusted(1) 1.18 0.97 0.82 0.83 1.12 Non-GAAP Reconciliations Diluted EPS ($ MM, except per share data, shares in thousands) (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.

A-9 Non-GAAP Reconciliations Efficiency Ratio ($ MM) (1) Revenue is defined as net interest income plus noninterest income. (2) 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. Quarter Ended Dec. 31 Sept. 30 June 30 March 31 Dec. 31 2020 2020 2020 2020 2019 Efficiency ratio numerator - noninterest expense - GAAP $ 3,833 $ 3,755 $ 3,878 $ 3,431 $ 2,575 Merger-related and restructuring charges, net (308) (236) (209) (107) (223) Gain (loss) on early extinguishment of debt — — (235) — — Incremental operating expense related to the merger (179) (152) (129) (74) (101) Amortization of intangibles (172) (170) (178) (165) (71) Charitable contribution — (50) — — — Corporate advance write off — — — — (2) Efficiency ratio numerator - adjusted $ 3,174 $ 3,147 $ 3,127 $ 3,085 $ 2,178 Efficiency ratio denominator - revenue(1) - GAAP $ 5,651 $ 5,572 $ 5,871 $ 5,611 $ 3,625 Taxable equivalent adjustment 28 29 31 37 25 Securities (gains) losses — (104) (300) 2 116 (Gain) loss on loan portfolio sale — — — — 22 Efficiency ratio denominator - adjusted $ 5,679 $ 5,497 $ 5,602 $ 5,650 $ 3,788 Efficiency ratio - GAAP 67.8 % 67.4 % 66.1 % 61.1 % 71.0 % Efficiency ratio - adjusted(2) 55.9 57.3 55.8 54.6 57.5

A-10 Non-GAAP Reconciliations Calculations of tangible common equity and related measures ($ MM, except per share data, shares in thousands) (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. As of / Quarter Ended Dec. 31 Sept. 30 June 30 March 31 Dec. 31 2020 2020 2020 2020 2019 Common shareholders' equity $ 62,759 $ 61,819 $ 61,634 $ 61,295 $ 61,282 Less: Intangible assets, net of deferred taxes 26,629 25,923 26,083 26,263 26,482 Tangible common shareholders' equity(1) $ 36,130 $ 35,896 $ 35,551 $ 35,032 $ 34,800 Outstanding shares at end of period 1,348,961 1,348,118 1,347,609 1,347,461 1,342,166 Common shareholders' equity per common share $ 46.52 $ 45.86 $ 45.74 $ 45.49 $ 45.66 Tangible common shareholders' equity per common share(1) 26.78 26.63 26.38 26.00 25.93 Net income available to common shareholders $ 1,228 $ 1,068 $ 902 $ 986 $ 702 Plus amortization of intangibles, net of tax 131 130 137 126 57 Tangible net income available to common shareholders(1) $ 1,359 $ 1,198 $ 1,039 $ 1,112 $ 759 Average common shareholders' equity $ 61,991 $ 61,804 $ 61,484 $ 60,224 $ 38,031 Less: Average intangible assets, net of deferred taxes 25,930 25,971 26,161 26,429 14,760 Average tangible common shareholders' equity(1) $ 36,061 $ 35,833 $ 35,323 $ 33,795 $ 23,271 Return on average common shareholders' equity 7.88 % 6.87 % 5.90 % 6.58 % 7.33 % Return on average tangible common shareholders' equity(1) 14.99 13.31 11.83 13.23 12.91

A-11 Non-GAAP Reconciliations Performance Ratios ($ MM) (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. (2) Tangible common equity is a non-GAAP measure. The reconciliation for this measure is on page A-10. Quarter Ended December 31, 2020 Return on Average Assets Return on Average Common Shareholders’ Equity Return on Average Tangible Common Shareholders’ Equity2 Net income - GAAP $ 1,330 Net income available to common shareholders - GAAP $ 1,228 $ 1,228 Merger-related and restructuring charges 237 237 237 Incremental operating expenses related to the merger 138 138 138 Amortization — — 131 Numerator - adjusted(1) $ 1,705 $ 1,603 $ 1,734 Average assets $ 503,181 Average common shareholders' equity — $ 61,991 $ 61,991 Plus: Estimated impact of adjustments on denominator — 187 187 Less: Average intangible assets, net of deferred taxes — — 25,930 Denominator - adjusted(1) $ 503,181 $ 62,178 $ 36,248 Reported ratio 1.05 % 7.88 % 14.99 % Adjusted ratio 1.35 10.25 19.03

A-12 Quarter Ended Dec. 31 Sept. 30 June 30 March 31 Dec. 31 2020 2020 2020 2020 2019 Net interest income - GAAP $ 3,366 $ 3,362 $ 3,448 $ 3,650 $ 2,227 Taxable-equivalent adjustment 28 29 31 37 25 Net interest income - taxable-equivalent 3,394 3,391 3,479 3,687 2,252 Accretion of mark, net of interest reversals - PCI loans — — — — (14) Accretion of mark on acquired loans (356) (367) (440) (454) (130) Accretion of mark on acquired liabilities (29) (35) (40) (49) (14) Accretion of mark on securities acquired from FDIC — — (3) (3) (3) Net interest income - core(1) $ 3,009 $ 2,989 $ 2,996 $ 3,181 $ 2,091 Average earning assets - GAAP $ 438,666 $ 435,394 $ 446,825 $ 413,533 $ 263,115 Average balance - mark on acquired loans 2,550 2,918 3,297 3,759 1,423 Average balance - mark on securities acquired from FDIC — — 300 336 339 Average earning assets - core(1) $ 441,216 $ 438,312 $ 450,422 $ 417,628 $ 264,877 Annualized net interest margin: Reported - taxable-equivalent 3.08 % 3.10 % 3.13 % 3.58 % 3.41 % Core(1) 2.72 2.72 2.67 3.06 3.14 Non-GAAP Reconciliations Core NIM ($ MM) (1) Core net interest margin is a non-GAAP measure that adjusts net interest margin to exclude the impact of purchase accounting. The purchase accounting marks and related amortization for a) securities acquired from the FDIC in the Colonial Bank acquisition and b) loans, deposits and long-term debt from SunTrust, Susquehanna, National Penn and Colonial Bank are excluded to approximate the yields paid by clients. Interest income for PCI loans adjusts the accretion, net of interest reversals, which approximates the interest received from the client. Truist's management believes the adjustments to the calculation of net interest margin for certain assets and liabilities acquired provide investors with useful information related to the performance of Truist's earning assets. These measures are not necessarily comparable to similar measures that may be presented by other companies.

A-13 Non-GAAP Reconciliations Insurance Holdings Adjusted EBITDA ($ MM) (1) EBITDA is a non-GAAP measurement of operating profitability that is calculated by adding back interest, taxes, depreciation and amortization to net income. Truist's management also adds back merger-related and restructuring charges, incremental operating expenses related to the merger and other selected items. Truist's management uses this measure in its analysis of the Corporation's Insurance Holdings segment. 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. Quarter Ended Dec. 31 Sept. 30 Dec. 31 2020 2020 2019 Segment net interest income $ 22 $ 24 $ 27 Noninterest income 562 524 536 Total revenue $ 584 $ 548 $ 563 Segment net income (loss) - GAAP $ 99 $ 77 $ 59 Provision (benefit) for income taxes 32 25 21 Depreciation & amortization 20 18 19 EBITDA 151 120 99 Merger-related and restructuring charges, net 8 3 22 Incremental operating expenses related to the merger — — 11 Adjusted EBITDA(1) $ 159 $ 123 $ 132 Adjusted EBITDA(1) margin 27.3 % 22.4 % 23.4 %

A-14 Non-GAAP Reconciliations Allowance with Fair Value Marks ($ MM) As of/For the Quarter Ended Dec. 31 Sept. 30 June 30 March 31 Dec. 31 2020 2020 2020 2020 2019 ALLL $ 5,835 $ 5,863 $ 5,702 $ 5,211 $ 1,549 Unamortized fair value mark (1) 2,395 2,676 3,077 3,539 4,564 Allowance plus unamortized fair value mark $ 8,230 $ 8,539 $ 8,779 $ 8,750 $ 6,113 Loans and leases held for investment $ 299,734 $ 306,627 $ 314,825 $ 319,229 299,842 Unamortized fair value mark (1) 2,395 2,676 3,077 3,539 4,564 Gross loans and leases $ 302,129 $ 309,303 $ 317,902 $ 322,768 $ 304,406 Allowance for loan and lease losses as a percentage of loans and leases - GAAP 1.95 % 1.91 % 1.81 % 1.63 % 0.52 % Allowance for loan and lease losses and unamortized fair value mark as a percentage of gross loans and leases - Adjusted (1) (2) 2.72 % 2.76 % 2.76 % 2.71 % 2.01 % (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.

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