Truist Financial Corporation

Q3 performance was broadly in line; adjusted EPS +12% YoY (despite one-time items). - GAAP net income: $684m ($0.56/diluted share). - Strategic actions drove reported EPS down ~$0.60/share (AFS repositioning losses $0.90/share + RAC-related $0.06/share), partially offset by RAC reserve release (+$0.36/share). - Adjusted EPS: $1.16/share, +12% YoY. - Adjusted ROTCE: 14.6% (+100 bps YoY), supported by stronger earnings + continued capital return.

Capital/balance-sheet “remix” accelerated: RAC completed; LightStream announced for exit. - RAC sale completed (Q3 end): $5.5b auto loan portfolio sold for $5.2b net proceeds, reducing borrowings. - Impact: non-performing loans -28%; expected annualized net charge-offs -10 bps. - Capital: generated ~$1b (23 bps CET1) used to reposition AFS securities. - Securities repositioning: sold $8.6b agency MBS (book yield 2.67%, duration 5.8y) and bought $7.2b securities (effective yield ~5.6%, duration 2.3y) (with pay-fix swaps). - LightStream deal signed (to close Q4): sell $7.7b loans (substantially all assets). - Estimated net proceeds: $7.2b; CET1 impact: +$850m / +20 bps; net charge-offs -~7 bps. - Expected to repay wholesale funding; potential further AFS repositioning depending on closing conditions.

Near-term guidance (Q4 2026) implies steady operating conditions, but revenue is pressured by runoff/sales. - Revenue ~$5.35b (includes NOI outlook and ~+5% linked-quarter growth in adjusted non-interest income). - Reported non-interest expense: +~2.5% linked-quarter. - Net charge-offs: ~45 bps (seasonality). - Effective tax rate: 13.5% (FTE 15.5%). - Buybacks assumed: ~$1.0b in Q4 (vs $1.2b in Q3). - Net interest income sensitivity: expects Q4 NII of $3.65b–$3.7b, including ~-$125m from RAC impact, partly offset by ~+$40m from AFS repositioning; management expects offsets from lower credit costs/expenses.