Truist Financial Corp (TFC) (Q3 2026) Earnings Call Highlights: Record Wealth Income

Truist Financial (TFC) signed a $200M deal to sponsor the Truist Championship golf tournament. The bank pledged community investments and philanthropy. The event's first impact report shows $132.8M economic impact, $22.9M direct spending, and $7.3M in community impact, including small business investments and charitable donations.

Truist Financial (TFC) stock rose 1.4% after Evercore ISI raised its price target to $55, citing the company's strategic transformation. The move followed the release of TFC's Q3 10-Q filing, which included a $7.2B asset sale and record wealth management income. CEO Mike Lyons also bought 21,000 shares. Analysts' views were mixed, with Citi lowering its target to $50 and Wolfe Research initiating coverage with a Peer Perform rating.

U.S. banks face losses due to rising Treasury yields, with options to sell bonds at a loss or hold them, impacting financial strength and shareholder payouts. Bank of America reported $109B in unrealized losses. Fifth Third and Wells Fargo adjusted share buybacks due to rate impacts. Basel III rules add complexity to portfolio management.

Truist Financial sold its $5.5B near-prime auto loan portfolio, which earned about nothing before taxes, for $5.2B. The sale released $581M in loan-loss reserves and added $945M in core capital. Truist is shutting down Regional Acceptance Corp., the lender behind the loans, and plans to exit other non-core lending businesses. The buyer is reportedly Apollo Global Management, though Truist has not confirmed this.

Truist Financial has appointed Jeff Dunn and Bryan Cram as interim co-heads of its wealth division, replacing Brian Dowhower. Dunn leads Truist Private Banking, while Cram heads Truist Wealth Brokerage. Both report to Kristin Lesher. Truist's wealth division managed $77 billion in assets as of December 2025.

Stephens reduced its Truist Financial (TFC) price target to $54 from $55, citing Q3 earnings of $1.16 EPS, which beat estimates. The stock trades at $46.32 with a P/E of 12.0. CEO Mike Lyons aims for 15% ROTCE in 2027 and 16%-18% long-term. Q3 revenue missed forecasts at $3.75B vs. $5.35B expected, but ROTCE improved to 14.6%.