TRUIST FINANCIAL CORPORATION

Red flags

• Commercial and industrial loans reached $167.8 billion, including $839 million nonperforming, while CRE totaled $23.7 billion and commercial construction $7.8 billion; commercial credit deterioration remains a material earnings risk.
• Indirect auto loans totaled $25.7 billion, with $679 million 30-89 days past due, $267 million nonperforming, and $591 million of 2025 gross charge-offs.
• The company had $22.1 billion of short-term FHLB advances at December 31, 2025, up from $17.4 billion, indicating higher reliance on wholesale liquidity than a year earlier.
• Florida and Georgia represented 22% and 21% of Truist deposits, respectively, creating meaningful geographic concentration despite the broader branch footprint.
• 2025 included a $130 million incremental legal settlement accrual and $156 million of primarily severance charges, highlighting ongoing restructuring and conduct-cost exposure.