Truist Financial Announces Agreement to Sell $5.5B Near-Prime Auto Loan Portfolio

Executive Summary

On September 15, 2026, Truist Financial Corporation (NYSE: TFC) disclosed under Item 7.01 (Regulation FD) that it entered into an agreement to sell approximately $5.5 billion of auto loans, representing substantially all assets of its near-prime auto lending subsidiary, Regional Acceptance Corporation (RAC).

Strategic and Financial Details

• Strategic Rationale: Exits non-core, lower-margin near-prime auto lending to sharpen strategic focus and optimize capital allocation, following previous moves such as the discontinuation of Marine/RV lending.
• Transaction Timing: Closing is anticipated in late Q3 2026 or early Q4 2026, subject to customary closing conditions.
• Capital & Liquidity Generation:
  • Generates approximately $5.2 billion of net proceeds.
  • Results in a $535 million loan loss reserve recapture (pre-tax; $410 million after-tax).
  • Generates $945 million or 22 basis points of Common Equity Tier 1 (CET1) capital (including a $600M capital benefit from reduced risk-weighted assets, offset by $65M after-tax transaction costs).
• Credit Profile Improvements: Expected to reduce non-performing loans (NPLs) by >10 bps (as of June 30, 2026 baseline) and net charge-offs (NCOs) by approximately 10 bps on an annualized basis.
• Illustrative Uses of Proceeds: Truist plans to deploy liquidity to pay down wholesale borrowings and reposition certain available-for-sale (AFS) securities.
• Guidance & Share Buybacks: 3Q26 and full-year 2026 outlooks remain unchanged (excluding the direct strategic actions), and the 2026 share repurchase target remains steady at $5.0 billion.