Truist reports third quarter 2026 results
TRUIST FINANCIAL CORP (TFC) filed an SEC Form 8-K — Results of Operations and Financial Condition. ` News Release Truist reports third quarter 2026 results Solid 3Q26 results; simplifying and reallocating resources to drive stronger growth, profitability, and returns Diluted EPS of $0.56; adjusted diluted EPS (1) of $1.16, up 12% compared to 3Q25 3Q26 Key Financial Data 3Q26 P
How this was made
The 30-second read
Why it matters
The earnings decline and one‑time charges suggest short‑term downside, but the strategic loan sale may benefit long‑term capital allocation.
Market read
First‑report earnings release for a large‑cap U.S. bank; likely influences bank sector sentiment and short‑term price action.
What to watch
Core net interest income grew modestly and non‑interest income remained stable, indicating underlying business strength.
Solid 3Q26 results; simplifying and reallocating resources to drive stronger growth, profitability, and returns
Adjusted diluted EPS was $1.16, up 12% compared to 3Q25, and adjusted revenue - TE of $5.3 billion was stable, but GAAP results reflected a $1.4 billion pre-tax loss on the sale of AFS securities and impacts from the RAC loan sale.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | $3.75B | – | – |
| Total revenue - TEnon-GAAP | $3.79B | – | – |
| Adjusted revenue - TEnon-GAAP | $5.3B | stable | – |
| Net interest incomeGAAP | $3.66B | – | – |
| Net interest income - TEnon-GAAP | $3.71B | 1.1% | 0.7% |
| NIM - TEnon-GAAP | 3.00% | 2 bps | (1) bp |
| Total noninterest incomeGAAP | $84M | (94.9)% | (94.6)% |
| Adjusted noninterest incomenon-GAAP | $1.60B | (2.9)% | 2.5% |
| Total noninterest expenseGAAP | $3.10B | 1.6% | 3.0% |
| Adjusted noninterest expensenon-GAAP | $3.06B | 0.3% | 1.7% |
| Net incomeGAAP | $800M | – | – |
| Net income available to common shareholdersGAAP | $680M | – | – |
| Adjusted net income available to common shareholdersnon-GAAP | $1.42B | – | – |
| PPNRnon-GAAP | $690M | – | – |
| Adjusted PPNRnon-GAAP | $2.24B | – | – |
| Diluted EPSGAAP | $0.56 | – | – |
| Adjusted diluted EPSnon-GAAP | $1.16 | – | 12% |
| ROCEGAAP | 4.7% | – | – |
| ROTCEnon-GAAP | 7.2 | – | – |
| Adjusted ROTCEnon-GAAP | 14.6% | – | – |
| Efficiency ratioother | 82.9 | – | – |
| Provision for income taxesGAAP | $96M | (63.4)% | (66.3)% |
| Effective tax rateGAAP | 10.7% | (370) bps | (570) bps |
| Provision (benefit) for credit lossesGAAP | −$253M | (164.1)% | (158.0)% |
| Net charge-offsGAAP | $629M | 51.9% | 63.4% |
| Net charge-offs as a percentage of average loans and leases (annualized)other | 0.77% | 27 bps | 29 bps |
| Book value per shareGAAP | 46.78 | – | – |
| Tangible book value per sharenon-GAAP | 31.90 | – | – |
| Average loans and leases held for investmentother | $325.5B | (1.1)% | – |
| Average depositsother | $410.7B | 1.4% | – |
| End of period loans and leases HFIother | $323.9B | down $5.9 billion, or 1.8% | – |
| End of period depositsother | $413.2B | up $3.9 billion, or 0.9% | – |
| CET1 ratioother | 10.7% | down 20 basis points | – |
| Tier 1 capital ratioother | 12.0 | – | – |
| Total capital ratioother | 13.6 | – | – |
| Leverage ratioother | 9.6 | – | – |
| Supplementary leverage ratioother | 8.0 | – | – |
| Total nonperforming assetsother | $1.34B | – | – |
| Nonperforming loans and leases as a percentage of loans and leases HFIother | 0.40% | down 11 basis points | – |
| ALLL as a percentage of loans and leases HFIother | 1.25% | down 26 basis points | – |
| Ratio of ALLL to nonperforming loans and leases HFIother | 3.1x | – | – |
| Average consolidated LCRother | 110% | – | – |
| Total assetsGAAP | $554B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Wealth management incomeIncreased primarily reflecting favorable market performance. | $407M | 8.5% | 8.8% |
| Card and treasury management feesNo specific driver was provided. | $347M | (1.7)% | 2.1% |
| Investment banking and trading incomeDecreased compared to the second quarter of 2026 primarily due to lower trading income. | $324M | (8.0)% | 0.3% |
| Other deposit revenueNo specific driver was provided. | $125M | 4.2% | — |
| Mortgage banking incomeNo specific driver was provided. | $113M | (2.6)% | (4.2)% |
| Lending related feesNo specific driver was provided. | $120M | — | 16.5% |
| Securities gains (losses)The third quarter of 2026 included losses from AFS securities sales of $1.4 billion. | −$1.45B | NM | NM |
| Other incomeDecreased primarily due to the losses associated with the RAC loan sale and lower returns from investments held for post-retirement benefits. | $95M | (54.3)% | (45.7)% |
Capital returns
- Truist declared common dividends of $0.52 per share during the third quarter of 2026.
- Truist repurchased $1.2 billion of common stock.
What drove it
- Third quarter results reflected the completion of the Regional Acceptance Corporation loan sale and the subsequent AFS securities repositioning.
- Taxable-equivalent net interest income increased $40 million, or 1.1%, compared to the second quarter of 2026, driven by an additional day and fixed asset and liability repricing, partially offset by lower loan balances.
- Average deposits increased $5.8 billion, or 1.4%, compared to the second quarter of 2026, driven by an increase in interest checking.
- Adjusted noninterest expense was stable compared to the second quarter of 2026 excluding $40 million of RAC loan sale costs.
- The benefit for credit losses reflected the release of remaining ACL upon the transfer of RAC loans to loans held for sale.
Concerns
- GAAP results included a $1.4 billion pre-tax, or $0.90 per share, loss on the sale of AFS securities.
- The RAC loan sale resulted in a $66 million loss, $40 million of costs, and $581 million pre-tax, or $0.36 per share, of loan loss reserve recapture.
- Net charge-offs were $629 million and the NCO ratio was 0.77%, including 39 basis points related to RAC.
- End of period loans and leases HFI were down $5.9 billion, with $5.5 billion due to the RAC loan sale.
- CET1 was down 20 basis points compared to June 30, 2026, primarily due to capital returned to shareholders and the repositioning of the AFS securities portfolio.
What to watch
- The planned sale of $7.7 billion of unsecured consumer loans representing substantially all assets of LightStream to Carlyle Group Inc.
- The effect of the AFS securities repositioning on risk, liquidity, funding, and future earnings.
- Commercial and industrial loan balances, which declined during the quarter.
- Deposit mix, including the decline in average noninterest-bearing deposits and the increase in interest checking deposits.
- Credit normalization after the RAC loan sale, including net charge-offs, the ALLL ratio, and nonperforming loans.
Balance sheet and cash flow
- Average assets were $550 billion.
- Average securities were $118 billion.
- Average loans and leases were $329 billion.
- Average deposits were $411 billion.
- The ACL was $4.4 billion at September 30, 2026, and included $4.1 billion for the ALLL and $370 million for the reserve for unfunded commitments.
- Truist’s CET1 ratio was 10.7% as of September 30, 2026.
- Truist’s average consolidated LCR was 110% for the three months ended September 30, 2026, compared to the regulatory minimum of 100%.
Analysis
Truist reported a mixed third quarter shaped by two major portfolio actions. GAAP diluted EPS was $0.56 and GAAP net income was $0.80 billion, while adjusted diluted EPS was $1.16, up 12% compared to 3Q25, and adjusted net income available to common shareholders was $1.42 billion. The gap reflected a $1.4 billion pre-tax loss on the sale of AFS securities, alongside the effects of the RAC loan sale. Management characterized the actions as strengthening its risk, liquidity, and funding profile and creating capacity to invest in its best businesses.
Underlying revenue trends were comparatively stable. Adjusted revenue - TE was $5.3 billion and was stable sequentially. Net interest income - TE was $3,707 million, up $40 million, or 1.1%, from 2Q26 and up $27 million, or 0.7%, from 3Q25. NIM - TE was 3.00%, up two basis points sequentially and down one basis point from 3Q25. Fixed asset and liability repricing and higher client deposit balances supported net interest income, while lower loan balances, lower loan spreads, and unfavorable deposit mix remained offsets.
Fee income had pockets of strength, led by wealth management income of $407 million, up 8.5% sequentially and 8.8% from 3Q25, primarily reflecting favorable market performance. Card and treasury management fees rose 2.1% from 3Q25, and lending related fees increased 16.5%. Those gains were overwhelmed in GAAP noninterest income by $1,447 million of securities losses and a $66 million loss on the RAC loan sale. Adjusted noninterest income was $1,597 million, down 2.9% sequentially and up 2.5% from 3Q25.
Expense discipline was relatively firm after excluding transaction costs. Total noninterest expense was $3,105 million, up $50 million sequentially and $91 million from 3Q25, but adjusted noninterest expense was $3,065 million, up 0.3% sequentially. Personnel expense and professional fees and outside processing increased, with management citing higher employee benefit expenses, RAC-related costs, revenue-generating incentive expense, and continued investment in technology infrastructure. The reported efficiency ratio was 82.9, compared with 58.0 in 2Q26 and 58.1 in 3Q25, reflecting the reported GAAP revenue impact.
Balance-sheet and credit metrics were materially affected by RAC. End of period loans and leases HFI were $323.9 billion, down $5.9 billion sequentially, including $5.5 billion from the RAC loan sale, while end of period deposits were $413.2 billion, up $3.9 billion. Asset quality improved after the sale: nonperforming loans and leases as a percentage of loans and leases HFI declined to 0.40%, and the ALLL ratio declined to 1.25%. At the same time, net charge-offs were $629 million and the NCO ratio was 0.77%, including 39 basis points related to RAC. Truist returned capital through $1.2 billion of repurchases and dividends of $0.52 per share, while CET1 ended at 10.7% and average consolidated LCR was 110%. The release provided no quantitative forward guidance, while management highlighted near- and long-term ROTCE targets and the announced agreement to sell $7.7 billion of LightStream unsecured consumer loans.
Management, verbatim
We delivered a solid quarter while also taking decisive actions to better position Truist for the future. These actions strengthen our risk, liquidity, and funding profile and create greater capacity to invest in our best businesses.
Mike Lyons, Truist President & CEO
Not in the filing
stated, not guessed- Quantitative forward revenue guidance
- Quantitative forward expense guidance
- Quantitative forward tax-rate guidance
- Quantitative forward ROTCE guidance
- Prior-period outlook for comparison
- Gross margin
- Operating income
- Operating cash flow
- Free cash flow
- Cash balance
- Debt balance
- CFO commentary
- Formal business-segment revenue disclosure
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Truist filed a Form 8‑K reporting its third‑quarter 2026 financial results, including earnings metrics, loan‑sale transaction, and balance‑sheet changes.
Ticker impact
Truist Financial reported Q3 2026 results with diluted EPS $0.56, adjusted EPS $1.16 (down 12% YoY) and disclosed a $7.7B loan sale to Carlyle, plus one-time losses on AFS securities and RAC loan sale.
likely pressure as the market prices in lower earnings and one‑time losses
The report shows a decline in EPS and sizable one‑time charges, which typically trigger short‑term downside.
Market effects
Banking sector may face broader pressure from earnings weakness and loan‑sale activity.
U.S. equity markets could see a modest dip in financial stocks.
Impact largely confined to U.S. markets; limited global spillover.
Counterpoint
Despite the earnings miss, the loan sale could improve balance‑sheet quality and free capital for higher‑margin businesses.
Key entities
- CompanyTruist Financial Corp.
U.S. bank reporting Q3 2026 results.
- CompanyCarlyle Group Inc.
Buyer of $7.7 billion of Truist unsecured consumer loans.
