$TFC · TRUIST FINANCIAL CORP
Truist Financial filed an 8-K disclosing an agreement to sell $5.5B of auto loans — substantially all assets of its Regional Acceptance Corporation subsidiary — as it exits the near-prime auto lending business. The transaction, announced ahead of CFO Mike Maguire's presentation at the Barclays Global Financial Services Conference, generates $5.2B in net proceeds and a $535MM loan loss reserve recapture. The sale creates $945MM (22 bps) of CET1 capital and is expected to close in late Q3 or early Q4 2026.
- Agreement to sell $5.5B of auto loans, representing substantially all assets of Regional Acceptance Corporation.
- Transaction generates $5.2B in net proceeds and a $535MM loan loss reserve recapture.
- Creates $945MM or 22 bps of CET1 capital, driven by $410MM after-tax reserve recapture and $600MM RWA reduction.
- Reduces NPLs by >10 bps and annual NCOs by ~10 bps, improving credit risk profile.
- 2026 share repurchase target unchanged at $5B; transaction expected to be modestly accretive to earnings and ROTCE in 2027.
Markets closed — no regular-session reaction yet; extended-hours last trade at $50.10 shows negligible movement (+0.01% vs filing-time price).
A $62B regional bank exiting an entire non-core lending vertical while preserving its $5B buyback target and improving credit metrics is a meaningful capital-allocation signal.
Regional banks continue pruning non-core lending verticals to optimize capital efficiency. Truist's exit from near-prime auto follows its prior discontinuation of Marine/RV lending, signaling a broader strategic review is underway.
Closing is subject to customary conditions and anticipated in late Q3 or early Q4 2026 — any delay or failure to close would eliminate the expected capital and credit benefits. The illustrative AFS securities repositioning and capital deployment actions are subject to market conditions.
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