Truist Financial ($TFC) has agreed to sell $5.5 billion of auto loans representing substantially all assets of its Regional Acceptance unit as the bank exits near-prime auto lending.
- The transaction is expected to generate $5.2 billion in net proceeds and a $535 million loan-loss reserve recapture.
- Truist estimates the sale will create $945 million, or 22 basis points, of CET1 capital.
- The transaction is expected to reduce nonperforming loans by more than 10 basis points and annual net charge-offs by approximately 10 basis points.
- Truist plans to repay wholesale borrowings with the proceeds and is considering repositioning certain available-for-sale securities to offset capital created by the sale.
- The bank's $5 billion 2026 share repurchase target remains unchanged.
- Closing is anticipated in late Q3 or early Q4 2026, subject to customary conditions.
Relevant Companies
- Truist Financial ($TFC) - The sale exits a non-core lending business and is expected to generate $5.2 billion in net proceeds.
Editor’s Note: This is a developing story. This article may be updated as more details become available.
