Truist Financial : Regulatory Disclosure (TFC 2H25 NSFR Disclosures 4Q25)

About this update from Truist Financial Corporation

‌Net Stable Funding Ratio Disclosure Truist Financial Corporation December 31, 2025 (Includes Q3 and Q4 results) ‌Table of Contents I. Introduction 1 Page No. III. US NSFR Quantitative Disclosure 2 II. Net stable funding ratio 1 IV. Concentrations of funding sources and changes in funding structure 5 ‌Introduction‌ Truist Financial Corporation (Truist or the Company) is a financial holding company (FHC) and conducts its business operations through its bank subsidiary, Truist Bank, and other non-bank subsidiaries. Truist is a purpose-driven financial services company committed to inspiring and building better lives and communities. Headquartered in Charlotte, North Carolina, Truist has leading market share in many of the high-growth markets in the U.S. and offers a wide range of products and services through wholesale and consumer businesses, including consumer and small business banking, commercial and corporate banking, investment banking and capital markets, wealth management, payments, and specialized lending businesses. Truist Bank, the largest subsidiary of Truist Financial Corporation, is a state non-member bank and is supervised by the Federal Deposit Insurance Corporation (FDIC) and North Carolina Office of the Commissioner of Banks, while Truist Financial Corporation is supervised by the Federal Reserve Board (FRB). Truist's non-bank subsidiaries are regulated and supervised by various other regulatory bodies, including the Securities and Exchange Commission and the Financial Industry Regulatory Authority. Truist Bank was chartered in 1872 and is the oldest bank headquartered in North Carolina. Truist Bank is one of the 10 largest commercial banks in the U.S. and provides banking and trust services for clients through its digital platform and 1,927 branches as of December 31, 2025. In October 2019, the federal banking agencies adopted final rules for Applicability Thresholds for Regulatory Capital and Liquidity Requirements (Tailoring Rule). Under the Tailoring Rule, Truist is subject to the standards applicable to a Category III banking organizations, which generally include Bank Holding Companies with greater than $250 billion, but less than $700 billion, in total consolidated assets and less than $75 billion in certain other risk-related exposures. As a Category III institution, Truist and Truist Bank are subject to a Reduced daily Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR). ‌Net Stable Funding Ratio (NSFR)‌ The U.S. Net Stable Funding Ratio: Liquidity Risk Measurement Standards and Disclosure Requirements (the "NSFR rule") implements a stable funding requirement, known as the net stable funding ratio (NSFR), for certain large banking organizations. The NSFR is a quantitative metric that measures the stability of Truist's funding profile and requires that Truist and Truist Bank maintain minimum amounts of stable liabilities and regulatory capital to support its assets, commitments, and derivative exposures over a one-year time horizon. The NSFR is expressed as the ratio of available stable funding (ASF) relative to projected minimum funding needs or required stable funding (RSF). Covered companies are required to maintain a minimum NSFR of 100%, summarized as follows: The NSFR rule considers the differing risk characteristics of a covered company's various assets, liabilities, and certain off-balance sheet commitments and applies different weightings (ASF and RSF factors) to reflect these risk characteristics. ASF and RSF factors are used to determine the numerator and denominator of the NSFR and reflect, respectively, the stability of funding, and the need for assets and commitments to be supported by such funding. The NSFR serves as a complement to the Liquidity Coverage Ratio (LCR), which promotes shorter-term resilience that requires sufficient liquidity to withstand a 30 calendar-day period of significant stress. Please see Truist's Liquidity Coverage Ratio (LCR) Disclosures found on its website at https://ir.truist.com/other-filings . Truist prepares its NSFR disclosure based on its consolidated balance sheet. The NSFR Rules for consolidation require Truist to exclude from consolidated ASF any ASF held at the subsidiary level that exceeds the subsidiary's RSF. The rules allow Truist to include any such excess ASF to the degree that the subsidiary can transfer assets to Truist Financial Corporation, considering statutory, regulatory, contractual, or supervisory restrictions. When determining Truist Bank's excess ASF amount under NSFR Rules of consolidation, Truist excludes amounts resulting from transactions between Truist and Truist Bank that are netted under GAAP when preparing the consolidated balance sheet. This results in the exclusion of Truist Bank capital from the calculation of excess ASF when calculating Truist's consolidated NSFR. As such the Total ASF does not equal the sum of its quantitative disclosure components (see section III). The following table summarizes Truist's average NSFR for the three months ended September 30, 2025 and three months ended December 31, 2025, respectively. Three months ended September 30, 2025 (dollars in millions) Average weighted amount (1) Truist Financial Corporation: Total ASF (2) $ 344,519 Total adjusted RSF 271,782 NSFR 127 % (1) Represent the average weighted amount after applying NSFR rule prescribed ASF and RSF rates, respectively. (2) Excludes average excess ASF at Truist Bank that cannot be transferred. Three months ended December 31, 2025 (dollars in millions) Average weighted amount (1) Truist Financial Corporation: Total ASF (2) $ 351,319 Total adjusted RSF 276,655 NSFR 127 % (1) Represent the average weighted amount after applying NSFR rule prescribed ASF and RSF rates, respectively. (2) Excludes average excess ASF at Truist Bank that cannot be transferred. Truist's average NSFR is driven by the stability of funding sources coupled with the liquidity characteristics and residual maturities of assets and the contingent liquidity risk from off-balance sheet exposures. For the quarterly periods ended June 30, 2025, September 30, 2025 and December 31, 2025, Truist's average reduced NSFR was 127%, 127%, and 127% respectively, and in compliance with the regulatory minimum for such entities of 100%. Truist's NSFR for the 3rd quarter of 2025 was the same as the 2nd quarter of 2025, with higher total average weighted ASF offset by higher total average weighted RSF. Truist's NSFR for the 4th quarter of 2025 was the same as the 3rd quarter of 2025, with higher total average weighted ASF offset by higher total average weighted RSF. ‌U.S. NSFR Quantitative Disclosure‌ The following disclosures present expanded detail on Truist's average NSFR, and average unweighted and weighted amount of ASF items, and RSF items for the three months ended September 30, 2025 and three months ended December 31, 2025, respectively. Quarter Ended 9/30/25 (dollars in millions) Average Unweighted Amount Average Weighted Amount Open Maturity < 6 Months 6 months to < 1 year ≥ 1 year Perpetual ASF Item 1 Capital and Securities: $ - $ 10,874 $ 894 $ 28,051 $ 70,378 $ 98,876 2 NSFR regulatory capital elements - - - 3,141 70,378 73,519 3 Other capital elements and securities - 10,874 894 24,910 - 25,357 4 Retail Funding: $ 245,769 $ 2,049 $ 2,096 $ 404 $ - $ 223,373 5 Stable Deposits 151,986 - - - - 144,386 6 Less Stable Deposits 75,942 - - - - 68,348 7 Sweep deposits, brokered reciprocal deposits, and brokered deposits 17,841 1,847 2,096 404 - 10,537 8 Other retail funding - 202 - - - 101 9 Wholesale Funding: $ 135,853 $ 24,161 $ 920 $ 10,176 $ - $ 84,521 10 Operational Deposits 51,362 - - - - 25,681 11 Other wholesale funding 84,491 24,161 920 10,176 - 58,840 Other liabilities: 12 NSFR derivatives liability amount 1,934 13 Total derivatives liability amount 3,307 14 All other liabilities not included in the above categories 3,435 1,896 7 1,553 - - 15 Total ASF (1) $ 344,519 RSF Item 16 Total high-quality liquid assets (HQLA) $ 61,591 $ 4,991 $ 2,316 $ 81,743 $ - $ 8,455 17 Level 1 Liquid Assets 39,478 3,932 2,316 48,547 - - 18 Level 2A Liquid Assets 22,113 1,059 - 33,196 - 8,455 19 Level 2B Liquid Assets - - - - - - 20 Zero percent RSF assets that are not level 1 liquid assets or loans to financial sector entities or their consolidated subsidiaries $ 1,981 $ 188 $ 7 $ 2,022 $ - $ - 21 Operational deposits placed at financial sector entities or their consolidated subsidiaries $ 717 $ - $ - $ - $ - $ 358 22 Loans and Securities: $ 12,610 $ 29,692 $ 31,950 $ 254,296 $ - $ 242,220 23 Loans to financial sector entities secured by level 1 liquid assets - 1,099 - - - - 24 Loans to financial sector entities secured by assets other than level 1 liquid assets and unsecured loans to financial sector entities 1,261 1,812 2,000 7,299 - 8,759 25 Loans to wholesale customers or counterparties that are not financial sector entities and loans to retail customers or counterparties 10,099 25,465 29,905 185,392 - 189,749 26 Of which: With a risk weight no greater than 20 percent under regulation Q (12 CFR part 217) - - - 2,841 - 1,847 27 Retail mortgages - - - 58,906 - 39,891 28 Of which: With a risk weight of no greater than 50 percent under regulation Q (12 CFR part 217) - - - 50,897 - 33,083 29 Securities that do not qualify as HQLA 1,250 1,316 45 2,699 - 3,820 Other assets: 30 Commodities - - 31 Assets provided as initial margin for derivative transactions and contributions to CCPs' mutualized loss sharing arrangements 313 266 32 NSFR derivatives asset amount 1,677 1,677 33 Total derivatives asset amount 2,407 - 34 RSF for potential derivatives portfolio valuation changes 3,332 166 35 All other assets not included in the above categories, including nonperforming assets 49,470 3,680 271 1,893 - 57,710 36 Undrawn commitments $177,819 $ 8,891 37 TOTAL RSF prior to application of required stable funding adjustment percentage $ 319,743 38 Required stable funding adjustment percentage 85 % 39 Total adjusted RSF $ 271,782 40 Net Stable Funding Ratio 127 % (1) Totals deduct Truist Bank Excess ASF. Quarter ended 12/31/25 (dollars in millions) Average Unweighted Amount Average Weighted Amount Open Maturity < 6 Months 6 months to < 1 year ≥ 1 year Perpetual ASF Item 1 Capital and Securities: $ - $ 5,577 $ 937 $ 29,501 $ 70,714 $ 100,683 2 NSFR regulatory capital elements - - - 2,898 70,714 73,612 3 Other capital elements and securities - 5,577 937 26,603 - 27,071 4 Retail Funding: $ 236,906 $ 1,815 $ 1,513 $ 530 $ - $ 214,333 5 Stable Deposits 149,194 - - - - 141,735 6 Less Stable Deposits 68,083 - - - - 61,275 7 Sweep deposits, brokered reciprocal deposits, and brokered deposits 19,629 1,640 1,513 530 - 11,236 8 Other retail funding - 175 - - - 87 9 Wholesale Funding: $ 149,127 $ 26,317 $ 3,973 $ 4,170 $ - $ 90,620 10 Operational Deposits 85,778 - - - - 42,889 11 Other wholesale funding 63,349 26,317 3,973 4,170 - 47,731 Other liabilities: 12 NSFR derivatives liability amount 1,901 13 Total derivatives liability amount 3,335 14 All other liabilities not included in the above categories 3,828 2,076 12 1,903 - - 15 Total ASF (1) $ 351,319 RSF Item 16 Total high-quality liquid assets (HQLA) $ 57,364 $ 3,155 $ 1,902 $ 82,589 $ - $ 8,314 17 Level 1 Liquid Assets 34,673 3,006 1,902 50,001 - - 18 Level 2A Liquid Assets 22,691 149 - 32,588 - 8,314 19 Level 2B Liquid Assets - - - - - - 20 Zero percent RSF assets that are not level 1 liquid assets or loans to financial sector entities or their consolidated subsidiaries $ 1,694 $ 146 $ 12 $ 2,427 $ - $ - 21 Operational deposits placed at financial sector entities or their consolidated subsidiaries $ 465 $ - $ - $ - $ - $ 233 22 Loans and Securities: $ 14,197 $ 31,585 $ 31,339 $ 256,503 $ - $ 245,500 23 Loans to financial sector entities secured by level 1 liquid assets - 1,084 - - - - 24 Loans to financial sector entities secured by assets other than level 1 liquid assets and unsecured loans to financial sector entities 1,701 1,967 1,906 8,298 - 9,801 25 Loans to wholesale customers or counterparties that are not financial sector entities and loans to retail customers or counterparties 11,188 27,156 29,373 186,798 - 192,054 26 Of which: With a risk weight no greater than 20 percent under regulation Q (12 CFR part 217) - - - 2,913 - 1,893 27 Retail mortgages - - - 58,182 - 39,275 28 Of which: With a risk weight of no greater than 50 percent under regulation Q (12 CFR part 217) - - - 50,900 - 33,085 29 Securities that do not qualify as HQLA 1,308 1,378 59 3,225 - 4,370 Other assets: 30 Commodities - - 31 Assets provided as initial margin for derivative transactions and contributions to CCPs' mutualized loss sharing arrangements 607 516 32 NSFR derivatives asset amount 1,639 1,639 33 Total derivatives asset amount 2,259 34 RSF for potential derivatives portfolio valuation changes 3,373 169 35 All other assets not included in the above categories, including nonperforming assets 50,717 3,695 518 1,666 - 59,872 36 Undrawn commitments $184,655 $ 9,233 37 TOTAL RSF prior to application of required stable funding adjustment percentage $ 325,476 38 Required stable funding adjustment percentage 85 % 39 Total adjusted RSF $ 276,655 40 Net Stable Funding Ratio 127 % (1) Totals deduct Truist Bank Excess ASF. ‌Concentrations of Funding Sources and Changes in Funding Structure‌ Sources of Funds Truist's balance sheet is composed of diversified funding sources including deposits, capital markets secured and unsecured funding, and shareholders' equity. Deposits are the primary source of funds for Truist Bank's lending and investing activities. Additionally, Truist Bank may access funding through short- or long-term secured borrowings, through the issuance of unsecured long-term debt, or from inter-company borrowings from the Parent Company. Truist's non-bank subsidiaries are primarily funded through internal funding arrangements or, in the case of Truist Securities, through short-term secured borrowings which are securities sold under repurchase agreements. Truist Bank represents over 98% of Truist total liabilities and equity capital. Capital markets wholesale funding is managed within liquidity policy tolerances, balance-sheet objectives, interest-rate risk considerations, and Truist's risk appetite framework. Truist management monitors capital markets wholesale funding to ensure appropriate maturity and funding source diversification. Deposits Truist has a granular and diversified deposit base comprised largely of core retail and commercial clients. Truist's deposits are a stable and primary source of funding and limit the Company's need for wholesale capital markets funding. Within the NSFR Rule, retail funding is grouped into the following primary categories: 1) stable deposits, 2) less stable deposits, and 3) sweep deposits, brokered reciprocal deposits, and brokered deposits. Wholesale funding is grouped into the primary categories of operational deposits, and other wholesale funding. Funding Structure Truist's stable funding mix contributes to the stability of the NSFR. The tables below summarize NSFR weighted funding source concentrations for the three months ended September 30, 2025 and December 31, 2025, respectively. Funding Concentrations Three months ended September 30, 2025 (dollar in millions) Average unweighted ASF amount Average weighted ASF amount (1) Average weighted ASF Rate (2) Capital and Securities $ 110,197 $ 98,876 90% Regulatory capital elements 73,519 73,519 100% Other capital elements and securities 36,678 25,357 69% Retail Funding $ 250,318 $ 223,372 89% Stable deposits 151,986 144,386 95% Less stable deposits 75,942 68,348 90% Sweep deposits, brokered reciprocal deposits, and brokered deposits 22,188 10,537 47% Other retail funding 202 101 50% Wholesale Funding $ 171,110 $ 84,521 49% Operational deposits 51,362 25,681 50% Other wholesale funding 119,748 58,840 49% Total $ 531,625 $ 406,769 77% (1) Represent the average weighted amount after applying NSFR rule prescribed ASF rates. Totals do not deduct Truist Bank Excess ASF. (2) The higher the ASF rate, the higher degree of funding stability. Funding Concentrations Three months ended December 31, 2025 (dollars in millions) Average unweighted ASF amount Average weighted ASF amount (1) Average weighted ASF Rate (2) Capital and Securities $ 106,729 $ 100,683 94% Regulatory capital elements 73,612 73,612 100% Other capital elements and securities 33,117 27,071 82% Retail Funding $ 240,764 $ 214,333 89% Stable deposits 149,194 141,735 95% Less stable deposits 68,083 61,275 90% Sweep deposits, brokered reciprocal deposits, and brokered deposits 23,312 11,236 48% Other retail funding 175 87 50% Wholesale Funding $ 183,587 $ 90,620 49% Operational deposits 85,778 42,889 50% Other wholesale funding 97,809 47,731 49% Total $ 531,080 $ 405,636 76% (1) Represent the average weighted amount after applying NSFR rule prescribed ASF rates. Totals do not deduct Truist Bank Excess ASF. (2) The higher the ASF rate, the higher degree of funding stability.

View stock analysis, news, and events for Truist Financial Corporation