Truist Financial TFC · USD

Operating SegmentsTruist operates and measures business activity across two segments: CSBB and WB, with functional activities included in OT&C. The Company’s business segment structure is based on the manner in which financial information is evaluated by management as well as the products and services provided or the type of client served. The Chairman and CEO is the Truist CODM. The CODM regularly reviews segment net income and its significant components in comparison to expected results as part of evaluating segment performance and optimizing resource allocation. In this regular review, segment net income typically excludes amortization of intangibles and goodwill impairment which are separately presented in the table below, as applicable.Consumer and Small Business BankingCSBB serves retail, premier, and small business clients, providing checking, money market, savings, time and other deposits, payment services, and lending solutions through digital banking, an extensive network of community banking branches, ATMs, virtual service centers, and other channels. Lending solutions include credit cards, personal and unsecured loans originated through the branch network and digital channels; national indirect lending services providing a comprehensive set of technology-enabled consumer lending solutions, including point-of-sale offerings for autos, recreational vehicles, outdoor power sports, outdoor power equipment, and home improvement; and real estate lending providing residential mortgages through retail, direct, and correspondent channels, and home equity loans delivered through the branch network.Wholesale BankingWB provides a comprehensive set of products, solutions, and advisory services to commercial, corporate, institutional, and wealth clients. Banking expertise and product capabilities are delivered through a combination of regional coverage across the Truist footprint and national industry coverage for real estate, investment banking, and capital markets clients. WB works with clients to meet their core banking needs, including traditional and specialized credit solutions and commercial payments to manage deposits, liquidity, payables, and receivables. Through investment banking capabilities, clients have full access to strategic advisory services, debt and equity capital markets, leveraged finance, and securitizations, with distribution channels and market making across both fixed income and equity markets.

Commitments and ContingenciesTruist utilizes a variety of financial instruments to mitigate exposure to risks and meet the financing needs and provide investment opportunities for clients. These financial instruments include commitments to extend credit, letters of credit and financial guarantees, derivatives, and other investments. Truist also has commitments to fund certain affordable housing investments and contingent liabilities related to certain sold loans.Tax Credit and Certain Equity InvestmentsThe Company invests in certain affordable housing projects throughout its market area as a means of supporting local communities. Truist receives tax credits related to these investments, for which the Company typically acts as a limited partner and therefore does not exert control over the operating or financial policies of the partnerships. Truist typically provides financing during the construction and development of the properties; however, permanent financing is generally obtained from independent third parties upon completion of a project. Tax credits are subject to recapture by taxing authorities based on compliance features required to be met at the project level. The Company has determined that these investments in certain affordable housing projects are VIEs. Truist’s maximum potential exposure to losses relative to investments in VIEs is generally limited to the sum of the outstanding balance, future funding commitments, and any related loans to the entity, exclusive of any potential tax recapture associated with the investments. Loans to these entities are underwritten in substantially the same manner as the Company’s other loans and are generally secured.The Company invests as a limited partner in certain projects through the New Market Tax Credit program, which is a Federal financial program aimed to stimulate business and real estate investment in underserved communities via a Federal tax credit. These tax credits, referred to as “Other qualified tax credits” below, qualify for the proportional amortization method. The Company holds Production Tax Credit investments, a number of which are eligible for the proportional amortization method and are included in “Other qualified tax credits” below.The Company also invests as a limited partner in entities that promote renewable energy sources. The Company has determined that these renewable energy tax credit partnerships are VIEs.

Income TaxesThe components of the income tax provision or benefit are as follows:Year Ended December 31,(Dollars in millions)202520242023Current provision (benefit): Federal$1,052 $(514)$1,012 State and local115 (15)135 Current provision (benefit)1,167 (529)1,147 Deferred provision (benefit):Federal(168)45 (390)State and local43 (72)(19)Deferred provision (benefit)(125)(27)(409)Total provision (benefit) for income taxes:Federal884 (469)622 State and local158 (87)116 Provision (benefit) for income taxes$1,042 $(556)$738 The components of income taxes paid are as follows:Year Ended December 31,(Dollars in millions)202520242023Federal$54 $493 $538 State and localCalifornia26 **New York21 **New York City17 **North Carolina14 **Florida**45 Other60 337 197 Total state and local138 337 242 Total income taxes paid$192 $830 $780 *The amount of income taxes paid during the year did not meet the 5% disaggregation threshold.A reconciliation of the provision for income taxes at the statutory federal income tax rate to the Company’s actual provision for income taxes and effective tax rate is presented in the following table:Year Ended December 31,202520242023(Dollars in millions)Amount% of Income Before TaxesAmount% of Income Before TaxesAmount% of Income Before TaxesFederal income taxes at statutory rate$1,333 21.0 %$(126)21.0 %$(161)21.0 %State and local income taxes, net of federal income tax effect(1)126 2.0 (61)10.1 99 (12.9)Tax credits, net of amortization and other tax benefitsLow income housing tax credits(127)(2.0)(111)18.5 (102)13.3 Energy related credits(111)(1.8)(93)15.5 (31)4.1 New market tax credits(33)(0.5)(32)5.3 (30)3.9 Other tax credits(1)— (15)2.5 (11)1.4 Nontaxable or nondeductible itemsTax-exempt income(204)(3.2)(195)32.4 (203)26.5 Nondeductible goodwill— — — — 1,276 (166.8)Internal legal entity restructuring— — — — (191)25.0 Other66 1.0 79 (13.1)96 (12.5)Changes in unrecognized tax benefits(7)(0.1)(13)2.2 (10)1.3 Other adjustments— — 11 (1.9)6 (0.8)Provision (benefit) for income taxes$1,042 16.4 $(556)92.5 $738 (96.5)(1)For the Year Ended December 31, 2025, state and local taxes in California, New York City, North Carolina, and Florida made up the majority (greater than 50 percent) of the tax effect in this category. For the Year Ended December 31, 2024 state taxes in Tennessee, Georgia, and Florida made up the majority (greater than 50 percent) of the tax effect in this category.

The following is a discussion of Truist’s cybersecurity risk management strategy and governance. Refer to “Item 1A. Risk Factors” for information on risks from cybersecurity threats and the “Risk Management” section in MD&A for additional discussion on Truist’s technology risk management.Cybersecurity risk management and strategyLike other financial services firms, Truist faces an increasingly complex and evolving cybersecurity threat environment. We maintain a risk-based cybersecurity framework that is a part of our ERM framework. Our cybersecurity framework utilizes people, processes, and systems to identify, assess, monitor, mitigate, and otherwise address material risks from cybersecurity threats, and Truist seeks to adapt and refine its risk mitigation activities and capabilities based on the cybersecurity risks identified through this framework.Foundationally, our cybersecurity framework is based on the Cyber Risk Institute Cyber Profile, which tailors the National Institute of Standards and Technology Cybersecurity Framework for the financial sector. In addition, as a key part of our Corporate Information Security Program, Truist participates in the federally recognized Financial Services Information Sharing and Analysis Center, as well as other industry organizations and initiatives that promote industry best practices, such as harmonized cybersecurity standards, cybersecurity readiness, and secure consumer financial data sharing. Our cybersecurity framework also informs our data security strategy, which is designed to reduce cybersecurity risk while enabling Truist’s corporate business objectives.For the fiscal year ended December 31, 2025, Truist has not identified any cybersecurity incidents that have materially affected, or are reasonably likely to materially affect, its business strategy, results of operations, or financial condition. We expect to continue to be the target of cybersecurity threats with increased frequency and severity due to the evolving threat environment, including the increasing use of machine learning and generative AI, and there can be no assurance that future cybersecurity incidents, including incidents experienced by third parties, will not have a material adverse impact on Truist, including our business strategy, results of operations, or financial condition.

AOCIAOCI includes the after-tax change in unrecognized net costs related to defined benefit pension and OPEB plans as well as unrealized gains and losses on cash flow hedges, AFS securities, and HTM securities previously transferred from AFS securities.(Dollars in millions)Pension and OPEB CostsCash Flow HedgesAFS SecuritiesHTM SecuritiesOther, netTotalAOCI balance, January 1, 2023$(1,535)$(78)$(9,395)$(2,588)$(5)$(13,601)OCI before reclassifications, net of tax406 (260)925 — 3 1,074 Amounts reclassified from AOCI: Before tax65 49 (385)306 — 35 Tax effect15 11 (77)65 — 14 Amounts reclassified, net of tax50 38 (308)241 — 21 Total OCI, net of tax456 (222)617 241 3 1,095 AOCI balance, December 31, 2023(1,079)(300)(8,778)(2,347)(2)(12,506)OCI before reclassifications, net of tax(1)430 (835)(497)— (4)(906)Amounts reclassified from AOCI: Before tax1 359 6,154 288 — 6,802 Tax effect— 85 1,452 66 — 1,603 Amounts reclassified, net of tax1 274 4,702 222 — 5,199 Total OCI, net of tax431 (561)4,205 222 (4)4,293 AOCI balance, December 31, 2024$(648)$(861)$(4,573)$(2,125)$(6)$(8,213)OCI before reclassifications, net of tax266 421 1,481 — 6 2,174 Amounts reclassified from AOCI: Before tax1 349 (278)276— 348 Tax effect— 82 (64)60— 78 Amounts reclassified, net of tax1 267 (214)216 — 270 Total OCI, net of tax267 688 1,267 216 6 2,444 AOCI balance, December 31, 2025$(381)$(173)$(3,306)$(1,909)$— $(5,769)Primary income statement location of amounts reclassified from AOCIOther expenseNet interest incomeSecurities gains (losses) and Interest on securitiesInterest on securitiesOther income(1)Includes the impact of the remeasurement of the pension plan and the reduction of pension benefit obligations following the sale of TIH. Refer to “Note 15. Benefit Plans” for additional information.

DepositsThe composition of deposits is presented in the following table:(Dollars in millions)Dec 31, 2025Dec 31, 2024Noninterest-bearing deposits$105,092 $107,451 Interest-bearing deposits:Interest checking117,830 109,042 Money market and savings139,044 137,307 Time deposits38,432 36,724 Total deposits$400,398 $390,524 Time deposits greater than $250,000$11,005 $10,041 The following table presents time deposit maturities:(Dollars in millions)20262027202820292030Future time deposit maturities$35,443 $1,552 $845 $175 $417

BorrowingsShort-Term BorrowingsThe types of short-term borrowings that have been, or may be, used by the Company include Federal funds purchased, securities sold under repurchase agreements, master notes, commercial paper, short-term bank notes, and short-term FHLB advances. The carrying value of FHLB advances classified as short-term borrowings was $22.1 billion and $17.4 billion at December 31, 2025 and 2024, respectively. Additionally, securities sold short, which are used for client-related trading activities, are classified as Short-term borrowings in the Consolidated Balance Sheets. Refer to “Note 18. Fair Value Disclosures” for additional information on securities sold short and “Note 3. Securities Financing Activities” for information on securities sold under repurchase agreements.Long-Term DebtThe types of long-term debt that have been, or may be, used by the Company include fixed and floating rate senior and subordinated notes and FHLB advances, which are typically prepayable and may be used for short-term liquidity management. The majority of long-term debt is redeemable at our option at one or more dates prior to contractual maturity. The effective rate is calculated based on the weighted-average yield, includes the impact of purchase accounting and excludes hedge accounting impacts. The following table presents a summary of long-term debt:(Dollars in millions)Dec 31, 2025Dec 31, 2024Effective RateCarrying AmountCarrying AmountMaturityTruist Financial Corporation:Fixed rate senior notes2027to20364.82 %$20,093 $22,134 Fixed rate subordinated notes202620334.36 1,818 1,828 Capital notes202720285.64 639 634 Truist Bank:Fixed rate senior notes202720334.48 4,476 1,744 Floating rate senior notes202820284.54 499 — Fixed rate subordinated notes202620303.20 3,553 4,771 Floating rate FHLB advances202620273.90 9,450 2,400 Other long-term debt(1)1,435 1,445 Total long-term debt$41,963 $34,956 (1)Includes debt associated with finance leases and tax credit investments.In January 2026, the Parent Company issued $1.3 billion principal amount of fixed-to-floating rate senior notes with an interest rate of 4.60% due January 27, 2032. Additionally, Truist Bank issued $1.3 billion principal amount of fixed-to-floating rate senior notes with an interest rate of 4.14% due January 27, 2029 and $350 million principal amount of floating rate senior notes due January 27, 2029.In February 2026, the Parent Company announced that it will redeem $1.

Benefit PlansDefined Benefit Retirement PlansTruist provides defined benefit retirement plans qualified under the IRC. Benefits are based on years of service, age at retirement and the employee’s compensation during the five highest consecutive years of earnings within the last ten years of employment. In addition, supplemental retirement benefits are provided to certain key officers under supplemental defined benefit executive retirement plans, which are not qualified under the IRC. Although technically unfunded plans, Rabbi Trusts and insurance policies on the lives of certain of the covered employees are available to finance future benefits.The following tables present a summary of the qualified and nonqualified defined benefit pension plans. On the Consolidated Balance Sheets, the qualified pension plan net asset is recorded as a component of Other assets and the nonqualified pension plan net liability is recorded as a component of Other liabilities. The data is calculated using an actuarial measurement date of December 31.Year Ended December 31,(Dollars in millions)Location202520242023Net periodic pension cost: Service cost(1)Personnel expense$272 $319 $341 Interest costOther expense457 444 446 Estimated return on plan assetsOther expense(971)(951)(909)Net amortization and otherOther expense— 1 78 Net periodic benefit cost (income)(242)(187)(44)Pre-tax amounts recognized in OCI: Net actuarial loss (gain)(341)(550)(567)Net amortization— (1)(78)Net amount recognized in OCI(341)(551)(645)Total net periodic pension costs (income) recognized in total comprehensive income, pre-tax$(583)$(738)$(689)Weighted average assumptions used to determine net periodic pension cost:Discount rate(2)5.82 %5.12 %5.30 %Expected long-term rate of return on plan assets6.70 6.80 6.70 Cash balance interest crediting rate4.00 4.50 4.50 Assumed long-term rate of annual compensation increases4.50 4.50 4.50 (1)Includes $10 million and $22 million for the years ended December 31, 2024 and 2023, respectively, of service cost reported in net income from discontinued operations for the qualified defined benefit pension plan for employees of TIH.(2)The 2024 rate represents the beginning of the year assumptions. Following the sale of TIH, the weighted average assumed discount rate was updated from 5.12% to 5.78%.