AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 3/6 · 18/10/2026
Moat—
Insufficient evidence for every rubric criterion; no category score is inferred.
structural advantage · — · Account growth and engagement do not establish structural switching costs, a cost advantage or another durable competitive mechanism.
durability · — · The passages do not demonstrate persistence of a relative advantage across competitive or interest-rate cycles.
customer dependency · — · Reported relationship primacy supports engagement, but material customer dependency or switching friction is unproven.
erosion resilience · — · Actual loan-spread pressure is disclosed, but resilience of an established moat cannot be assessed. Generic technology risks do not prove realized erosion.
Pricing power—
Insufficient evidence for every rubric criterion; no category score is inferred.
realized pricing · 2/4 · Outcomes are mixed: first-half 2026 loan spreads declined, deposit costs fell 26 basis points to 1.56%, and the mortgage servicing fee rate rose from 0.28% to 0.29%. Rate and portfolio effects prevent attributing these changes wholly to pricing power.
retention · 2/4 · Net new checking account growth, reported deeper engagement and 1.4% average deposit growth provide indirect evidence of repeat demand. They do not measure customer retention, and management acknowledges further deposit improvement is needed.
margin resilience · 2/4 · TE net interest margin was flat at 3.03% in 2025 and declined only two basis points to 3.0% in first-half 2026. This demonstrates moderate resilience, tempered by lower loan spreads and funding repricing; it does not establish a moat.
contractual freedom · — · Observed repricing and servicing fee rates do not disclose sufficient contractual authority to reset customer prices or terms.
Predictability—
Five consecutive annual periods with reported revenue and consolidated net income are required for financial-sector predictability.
Financial strength63
Qualitative bank assessment: equal-weight average of four current evidence-backed grades (0–4), scaled to 100. Policy financial-industry-1; not an industrial ratio score or credit rating.
capital adequacy · 3/4 · Preliminary June 2026 parent-company CET1 of 10.9%, Tier 1 of 12.2% and total capital of 14.0% exceed disclosed minimum-plus-SCB requirements of 7.0%, 8.5% and 10.5%. This supports strong current regulatory capitalization, without establishing exceptional durability or all subsidiary ratios.
liquidity funding · 2/4 · Secured borrowing capacity covered approximately 4.8 times wholesale funding maturities within one year, and average deposits grew. However, average long-term debt rose 17%, and deposit concentration and actual liquidity ratios are missing.
asset liability risk · 2/4 · Nonperforming loans rose three basis points to 0.51%, while nonguaranteed loans at least 90 days past due fell to 0.04% and provision expense declined. First-half negative OCI of $947 million, principally including cash-flow hedge movements, shows balance-sheet valuation exposure. Comprehensive rate sensitivity is unavailable.
earnings resilience · 3/4 · First-half net income increased from $2.501 billion to $3.034 billion, supported by higher pretax earnings, fee income growth and lower credit provisions despite spread pressure. Strong demonstrated recent performance is tempered by lower taxes and limited through-cycle coverage.
Capital allocation50
Qualitative bank assessment: equal-weight average of four current evidence-backed grades (0–4), scaled to 100. Policy financial-industry-1; not an industrial ratio score or credit rating.
capital efficiency · 2/4 · Second-quarter annualized GAAP common ROE improved from 8.1% to 10.4% and ROA from 0.9% to 1.1%. Non-GAAP ROTCE improved from 12.3% to 15.4%, but excludes intangible-asset effects. These improved returns do not establish exceptional capital productivity.
distributions and buffers · 2/4 · Actual second-quarter dividends and repurchases totaled approximately $1.8 billion while CET1 increased to 10.9%. However, first- and second-quarter total payout ratios exceeded earnings, limiting evidence that this distribution pace is sustainable.
dilution and cost · 2/4 · First-half diluted weighted-average common shares fell from approximately 1.315 billion to 1.253 billion despite equity awards. Offsetting costs include higher personnel expense, higher long-term debt interest expense and issuance of $500 million preferred stock at a stated 6.25% rate. Separate total stock-compensation cost is unavailable.
investment discipline · 2/4 · Repositioning and reinvestment contributed to 2025 net interest income and securities yield improvements. Mortgage servicing acquisitions contributed to 2026 income growth, but acquisition returns are not isolated. Historical $6.7 billion securities losses temper the assessment and are used only as comparison, not current capital evidence.
Management56
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · CET1 increased while capital was returned, but total payout ratios of 129% and 121% in the first two quarters exceeded quarterly earnings. Historical repositioning incurred substantial securities losses before subsequent income benefits.
incentive alignment · 2/4 · Actual 2025 awards include multiyear performance vesting and back-loaded RSUs, and executive/director ownership is disclosed. Discretionary upward adjustment of the CEO's annual award and weak say-on-pay support temper alignment. Grants do not establish eventual vesting.
execution · 3/4 · Reported first-half pretax income rose from $3.048 billion to $3.505 billion, net income increased, and quarterly GAAP common ROE improved to 10.4%. Revenue growth exceeded expense growth. These are demonstrated operating results, though the short period and lower tax rate limit extrapolation.
governance · 2/4 · An independent audit committee and audited effective financial-reporting controls provide substantive support. Disappointing say-on-pay approval indicates shareholder concern. The later filing identifies the incentive plan as amended, but that alone does not demonstrate improved governance outcomes.
Evidence
CSBB also strengthened client acquisition and relationship primacy, including another year of net new checking account growth and meaningful momentum among younger demographics.
Compensation Discussion and Analysis / CSBB performance · Filed 16/03/2026
Relationship primacy increased, reflecting deeper engagement and Truist’s success in positioning itself as clients’ primary financial partner.
Compensation Discussion and Analysis / relationship primacy · Filed 16/03/2026
•Average deposits increased $5.5 billion, or 1.4%, average short-term borrowings increased $1.5 billion, or 5.3%, and average long-term debt increased $5.6 billion, or 17%.
MD&A / six-month average funding balances · Filed 31/07/2026
Six Months Ended June 30, 2026 compared to the Six Months Ended June 30, 2025 TE net interest income for the six months ended June 30, 2026 was up $121 million, or 1.7%, driven by higher earning assets and loan growth, partially offset by lower loan spreads and fixed-rate debt repricing.
MD&A / six-month net interest income · Filed 31/07/2026
Under Mr. Wilson’s leadership, CSBB has improved Premier Banking deposit productivity; however, overall deposit levels still need to grow, underscoring the continued focus required as the Company navigates an important transition period.
Compensation Discussion and Analysis / CSBB deposit performance · Filed 16/03/2026
•Competition may reduce Truist’s client base or cause Truist to modify the pricing or other terms for products and services, or require significant investments to maintain competitiveness, which could have an adverse impact on our business and financial results.
Risk Factors / strategic competition risk · Filed 24/02/2026
A failure to maintain or enhance the Company’s competitive position with respect to technology, whether because of a failure to anticipate client expectations or keep pace with new or enhanced product or service offerings by competitors, a failure in the performance or reception of technological enhancements, or an untimely rollout of technological enhancements, may cause the Company to lose market share, miss growth opportunities, or adversely affect our financial results.
Risk Factors / technology competitiveness · Filed 24/02/2026
•Mortgage banking income increased primarily due to residential servicing portfolio acquisitions and higher commercial and residential production revenues, partially offset by higher prepayment speeds.
MD&A / mortgage banking income · Filed 31/07/2026
•The average cost of total deposits was 1.56%, down 26 basis points.
MD&A / six-month deposit cost · Filed 31/07/2026
Residential Mortgage Activities The following tables summarize residential mortgage servicing activities: (Dollars in millions) Jun 30, 2026 Dec 31, 2025 UPB of residential mortgage loan servicing portfolio $ 298,658 $ 285,966 UPB of residential mortgage loans serviced for others, primarily agency conforming fixed rate 240,764 228,383 As of / For the Six Months Ended June 30, (Dollars in millions) 2026 2025 UPB of residential mortgage loans sold from LHFS $ 8,115 $ 4,990 Pre-tax gains recognized on mortgage loans sold and held for sale 39 35 Servicing fees recognized from mortgage loans serviced for others 336 309 Approximate weighted average servicing fee on the outstanding balance of residential mortgage loans serviced for others 0.29 % 0.28 % Weighted average interest rate on mortgage loans serviced for others 3.79 3.70 The following table presents a roll forward of residential MSRs recorded at fair value: (Dollars in millions) 2026 2025 Residential MSRs, carrying value, January 1 $ 3,724 $ 3,431 Acquired 275 — Additions 197 102 Change in fair value due to changes in valuation inputs or assumptions 39 (31) Realization of expected net servicing cash flows, passage of time, and other (189) (152) Residential MSRs, carrying value, June 30 $ 4,046 $ 3,350 The sensitivity of the fair value of the Company’s residential MSRs to changes in key assumptions is presented in the following table.
Notes / residential mortgage servicing activities · Filed 31/07/2026
NIM - TE was 3.0%, down two basis points.
MD&A / six-month net interest margin · Filed 31/07/2026
Net interest margin - TE was 3.03%, flat compared to the prior year.
MD&A / 2025 net interest margin · Filed 24/02/2026
4 Truist Financial Corporation CONSOLIDATED STATEMENTS OF INCOME TRUIST FINANCIAL CORPORATION AND SUBSIDIARIES Unaudited (Dollars in millions, except per share data, shares in thousands) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Interest Income Interest and fees on loans and leases $ 4,659 $ 4,657 $ 9,258 $ 9,150 Interest on securities 871 961 1,720 1,936 Interest on other earning assets 437 536 844 1,056 Total interest income 5,967 6,154 11,822 12,142 Interest Expense Interest on deposits 1,575 1,844 3,100 3,580 Interest on long-term debt 485 431 930 840 Interest on other borrowings 286 292 572 628 Total interest expense 2,346 2,567 4,602 5,048 Net Interest Income 3,621 3,587 7,220 7,094 Provision for credit losses 395 488 874 946 Net Interest Income After Provision for Credit Losses 3,226 3,099 6,346 6,148 Noninterest Income Wealth management income 375 348 745 692 Card and treasury management fees 353 351 691 684 Investment banking and trading income 352 205 724 478 Other deposit revenue 120 108 240 225 Mortgage banking income 116 107 249 215 Lending related fees 120 99 238 194 Securities gains (losses) — (18) — (19) Other income 208 200 310 323 Total noninterest income 1,644 1,400 3,197 2,792 Noninterest Expense Personnel expense 1,792 1,678 3,519 3,282 Professional fees and outside processing 335 373 648 737 Software expense 239 231 469 461 Net occupancy expense 171 181 350 349 Equipment expense 79 89 164 171 Marketing and customer development 91 82 170 157 Amortization of intangibles 63 73 127 148 Regulatory costs 61 55 129 124 Other expense 224 224 462 463 Total noninterest expense 3,055 2,986 6,038 5,892 Earnings Income before income taxes 1,815 1,513 3,505 3,048 Provision for income taxes 262 273 471 547 Net income 1,553 1,240 3,034 2,501 Preferred stock dividends and other 34 60 138 164 Net income available to common shareholders $ 1,519 $ 1,180 $ 2,896 $ 2,337 Basic EPS $ 1.24 $ 0.91 2.34 1.80 Diluted EPS 1.23 0.90 2.31 1.78 Basic weighted average shares outstanding 1,224,867 1,292,292 1,236,682 1,299,833 Diluted weighted average shares outstanding 1,239,040 1,305,005 1,252,766 1,314,779 The accompanying notes are an integral part of these consolidated financial statements.
Consolidated Statements of Income / quarter and six months ended June 30, 2026 · Filed 31/07/2026
Truist’s results of operations for the second-quarter of 2026 produced an annualized return on average assets of 1.1%, an annualized return on average common shareholders’ equity of 10.4%, and ROTCE of 15.4% compared to prior year returns of 0.9%, 8.1%, and 12.3%,respectively.
MD&A / executive overview / returns · Filed 31/07/2026
Table 24: Capital Requirements Minimum Capital Well-Capitalized Minimum Capital Plus Stress Capital Buffer(1) Truist Truist Bank CET1 4.5 % NA 6.5 % 7.0 % Tier 1 capital 6.0 6.0 % 8.0 8.5 Total capital 8.0 10.0 10.0 10.5 Leverage ratio 4.0 NA 5.0 NA Supplementary leverage ratio 3.0 NA NA NA (1)Reflects an SCB requirement of 2.5% applicable to Truist as of June 30, 2026.
MD&A / Capital / Table 24 capital requirements · Filed 31/07/2026
The Parent Company’s capital ratios are presented in the following table: Table 25: Capital Ratios - Truist Financial Corporation (Dollars in millions) Jun 30, 2026 Dec 31, 2025 Risk-based: (preliminary) CET1 10.9 % 10.8 % Tier 1 capital 12.2 11.9 Total capital 14.0 13.8 Leverage ratio 9.8 10.0 Supplementary leverage ratio 8.2 8.3 Risk-weighted assets $ 434,799 $ 443,257 74 Truist Financial Corporation Capital Contingency Plan In the event of a realized or potential capital shortfall, Truist has a capital contingency plan that is designed to facilitate improvement of the Company’s capital position through the execution of specific contingency actions which either increase capital, decrease risk-weighted assets, or both.
MD&A / Capital / Table 25 parent company capital ratios · Filed 31/07/2026
Truist’s CET1 ratio was 10.9% as of June 30, 2026, up 10 basis points compared to December 31, 2025, primarily due to current quarter earnings and a reduction in risk-weighted assets, partially offset by capital returned to shareholders.
MD&A / Capital / CET1 movement · Filed 31/07/2026
At June 30, 2026, Truist Bank’s available secured borrowing capacity represented approximately 4.8 times the amount of wholesale funding maturities in one year or less.
MD&A / Liquidity / available secured borrowing capacity · Filed 31/07/2026
•Nonperforming loans and leases HFI were 0.51% of loans and leases HFI at June 30, 2026, up three basis points compared to December 31, 2025.
MD&A / asset quality / nonperforming loans · Filed 31/07/2026
Excluding government guaranteed loans, the ratio of loans 90 days or more past due and still accruing was 0.04% as a percentage of loans and leases HFI at June 30, 2026, down one basis point compared to December 31, 2025.
MD&A / asset quality / nonguaranteed delinquent loans · Filed 31/07/2026
Truist Financial Corporation 5 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME TRUIST FINANCIAL CORPORATION AND SUBSIDIARIES Unaudited (Dollars in millions) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net income $ 1,553 $ 1,240 $ 3,034 $ 2,501 OCI, net of tax: Net change in net pension and postretirement costs 1 2 (5) 7 Net change in cash flow hedges (463) 275 (862) 704 Net change in AFS securities 31 16 (180) 494 Net change in HTM securities 50 59 97 109 Other, net 2 5 3 6 Total OCI, net of tax (379) 357 (947) 1,320 Total comprehensive income $ 1,174 $ 1,597 $ 2,087 $ 3,821 Income Tax Effect of Items Included in OCI: Net change in net pension and postretirement costs $ — $ (1) $ (2) $ — Net change in cash flow hedges (146) 84 (270) 217 Net change in AFS securities 10 (10) (55) 139 Net change in HTM securities 16 12 30 27 Other, net 1 — 1 — Total income taxes related to OCI $ (119) $ 85 $ (296) $ 383 The accompanying notes are an integral part of these consolidated financial statements.
Consolidated Statements of Comprehensive Income · Filed 31/07/2026
During the second quarter of 2026, we returned $1.8 billion of capital to our common shareholders through $636 million of common stock dividends and $1.2 billion in common share repurchases.
MD&A / executive overview / actual capital distributions · Filed 31/07/2026
The dividend and total payout ratios for the second quarter of 2026 were 42% and 121%, respectively.
MD&A / Capital / second-quarter payout ratios · Filed 31/07/2026
For the first quarter of 2026, the dividend payout ratio was 47%, and the total payout ratio was 129%.
MD&A / Capital / first-quarter payout ratios · Filed 01/05/2026
On May 15, 2026, Truist issued $500 million of Series S non-cumulative perpetual preferred stock with a stated dividend rate of 6.25% per annum for net proceeds of approximately $495 million.
Notes / preferred stock issuance · Filed 31/07/2026
Award Type Payment Portion of Target Long-Term Incentive Program Amount Potential Award Amount Vesting PSU Stock 0% to 150% of target Cliff vesting based on performance over a 3-year performance period (January 1, 2025 – December 31, 2027) LTIP Cash 0% to 150% of target Cliff vesting based on performance over a 3-year performance period (January 1, 2025 – December 31, 2027) RSU Stock N/A 4-year vesting in three equal, back-loaded installments on March 15 of 2027, 2028, and 2029 Award amounts reflected in the 2025–2027 PSU and LTIP Awards and 2025 RSU Awards sections below reflect the grant date values for NEO long-term incentive program awards for 2025.
Compensation Discussion and Analysis / granted 2025 long-term incentive awards · Filed 16/03/2026
The Committee concluded that Mr. Rogers’s individual leadership contributions towards Truist’s financial results, strategic priorities, risk posture, and cultural alignment during 2025 warranted a positive adjustment to the overall Company performance results under the AIP.
Compensation Discussion and Analysis / actual CEO annual incentive adjustment · Filed 16/03/2026
Our directors and current executive officers collectively have sole voting and investment authority over 1,474,800 shares of common stock and shared voting and investment authority over 327,269 shares of common stock.
Security ownership / directors and current executive officers · Filed 16/03/2026
After many years of strong shareholder support, our say-on-pay vote passed with a disappointing level of approval at our 2025 annual meeting.
Lead Independent Director letter / 2025 say-on-pay outcome · Filed 16/03/2026
The Audit Committee is currently composed of four independent directors and operates under a charter adopted by our Board.
Audit Committee Report / committee independence · Filed 16/03/2026
The effectiveness of the Company’s internal control over financial reporting as of December 31, 2025 has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their accompanying report, which expresses an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting as of December 31, 2025.
Item 9A / audited effectiveness of internal control over financial reporting · Filed 24/02/2026
Net interest income - TE for the year ended December 31, 2025 was up $316 million, or 2.2%, compared to the year ended December 31, 2024 primarily due to loan and deposit growth, fixed-rate asset repricing, and the balance sheet repositioning in the second quarter of 2024, partially offset by the impact of reductions in interest rates throughout 2025.
MD&A / 2025 net interest income and balance sheet repositioning · Filed 24/02/2026
The yield on the average securities portfolio was 3.13% for 2025, up 30 basis points compared to the prior year, reflecting the impact of balance sheet repositioning in 2024 and the reinvestment of cash flows into higher yielding securities.
MD&A / securities yield and reinvestment · Filed 24/02/2026
Noninterest income was down $6.3 billion for the year ended December 31, 2024 compared to the year ended December 31, 2023 primarily due to $6.7 billion of securities losses resulting from the balance sheet repositioning, lower lending related fees, operating lease income, and card and payment related fees, partially offset by higher investment banking and trading income, wealth management income, service charges on deposits, and other income.
MD&A / 2024 securities losses from balance sheet repositioning · Filed 25/02/2025
Truist Financial Corporation 2022 Incentive Plan (amended and restated as of April 28, 2026)
Exhibits / incentive plan amended and restated April 28, 2026 · Filed 01/05/2026
