Truist Financial : Regulatory Disclosure (TFC 4Q25 LCR Disclosures)

About this update from Truist Financial Corporation

‌Liquidity Coverage Ratio Disclosure Truist Financial Corporation December 31, 2025 ‌Table of Contents Page No. I. Introduction 1 II. Liquidity Coverage Ratio (LCR) 2 III. U.S. LCR Quantitative Disclosure 3 IV. The Composition of Eligible HQLA 4 V. Total Adjusted Net Cash Outflows 4 VI. Concentration of Funding Sources 4 VII. Derivative Exposure 4 VIII. Liquidity Management 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. This report provides certain quantitative and qualitative information on Truist's Liquidity Coverage Ratio (LCR), which described more fully in Section II and III of this report. It should be read in conjunction with Truist's Annual Report on Form 10-K for the year ended December 31, 2025 and the Consolidated Financial Statements for Bank Holding Companies - FR Y-9C for the period ended December 31, 2025. Truist's SEC filings are located on its website at ir.truist.com/sec-filings and Truist's other regulatory reports are located on its website at ir.truist.com/ other-filings . ‌Liquidity Coverage Ratio‌ The U.S. Liquidity Coverage Ratio: Liquidity Risk Measurement Standards (the LCR Rule), was adopted in 2014 by the FRB, the Office of the Comptroller of the Currency (OCC), and the FDIC. In October 2019, the federal banking agencies adopted final rules for liquidity requirements that amend the LCR Rule such that bank holding companies with assets between $250 billion and $700 billion, and less than $75 billion in certain other risk-related exposures, (Category III institutions) would be subject to a reduced LCR requirement. Truist became a Category III institution effective January 1, 2020. The LCR Rule requires that Truist and Truist Bank maintain an amount of eligible High-Quality Liquid Assets (HQLA) that is sufficient to meet their respective estimated total net cash outflows over a prospective 30 calendar-day period of stress. The LCR for both Truist and Truist Bank is required to be a minimum of 100%. As a Category III institution, Truist's and Truist Bank's LCR is subject to a reduced LCR factor of 0.85 of total net cash outflows. Truist's disclosures are based on daily averages. The LCR Rule identifies HQLA eligibility criteria and limits the inclusion of subsidiary HQLA available in consolidation. The amount of HQLA held by Truist Bank that is in excess of its stand-alone 100% minimum LCR requirement, and that is not transferable to non-bank affiliates, must be excluded from Truist's reported eligible HQLA (Excess eligible HQLA). The following table summarizes Truist's average LCR for the three months ending December 31, 2025. Three Months Ended December 31, 2025 (Dollars in millions) Average Weighted Amount (1) Total adjusted net cash outflows 82,442 LCR 111 % HQLA (2) $ 91,732 HQLA In excess of adjusted net cash outflows $ 9,290 Represents the average weighted amount after applying regulatory prescribed (1) HQLA haircuts and (2) cash outflow and inflow rates adjusted by 85 percent outflow adjustment, respectively. Excludes average excess eligible HQLA at Truist Bank that are not transferable to Truist. For the quarterly period ended December 31, 2025, Truist's average reduced LCR was 111% and in compliance with the regulatory minimum for such entities of 100%. Truist's average LCR increased one percentage point during the three months ended December 31, 2025, compared with the three-month period ended September 30, 2025 due to higher HQLA, and lower net cash outflows. The reduction in net cash outflows is attributed to deposit mix and higher inflows. ‌U.S. LCR Quantitative Disclosure‌ The table below presents detail on Truist's consolidated average LCR, including HQLA, Cash Outflow and Cash Inflow, for the three months ended December 31, 2025. Unweighted Three Months Ended December 31, 2025 Average Average Weighted (Dollars in millions) Amount Amount HIGH-QUALITY LIQUID ASSETS 1. Total eligible high-quality liquid assets (HQLA), of which: $ 94,041 $ 91,732 78,648 15,393 - 78,648 13,084 - CASH OUTFLOW AMOUNTS 5. Deposit outflow from retail customers and counterparties, of which: $ 240,591 $ 17,153 145,266 68,083 27,242 4,358 6,808 5,987 9. Unsecured wholesale funding outflow, of which: 139,887 47,678 73,075 66,562 250 17,799 29,629 250 20,122 186,807 3,208 31,535 1,830 184,977 1,830 29,705 967 31,934 967 958 19. TOTAL CASH OUTFLOW $ 620,308 $ 101,499 CASH INFLOW AMOUNTS 20. Secured lending and asset exchange cash inflow $ 2,387 $ 557 21. Retail cash inflow 1,901 951 22. Unsecured wholesale cash inflow 5,248 3,471 23. Other cash inflows, of which: 539 528 24. Net derivative cash inflow 202 202 25. Securities cash inflow 285 285 26. Broker-dealer segregated account inflow 41 41 27. Other cash inflow 11 - 28. TOTAL CASH INFLOW $ 10,075 $ 5,507 Average Amount (1) 29. HQLA AMOUNT (2) $ 91,732 30. TOTAL NET CASH OUTFLOW AMOUNT EXCLUDING THE MATURITY MISMATCH ADD-ON 95,992 31. MATURITY MISMATCH ADD-ON 999 32. TOTAL UNADJUSTED NET CASH OUTFLOW AMOUNT $ 96,991 33. OUTFLOW ADJUSTMENT PERCENTAGE 85 % 34. TOTAL ADJUSTED NET CASH OUTFLOW AMOUNT $ 82,442 35. LIQUIDITY COVERAGE RATIO (%) 111 % Eligible level 1 liquid assets Eligible level 2A liquid assets Eligible level 2B liquid assets Stable retail deposit outflow Other retail funding Brokered deposit outflow Operational deposit outflow Non-operational funding outflow Unsecured debt outflow Secured wholesale funding and asset exchange outflow Additional outflow requirements, of which: Outflow related to derivative exposures and other collateral requirements Outflow related to credit and liquidity facilities including unconsolidated structured transactions and Other contractual funding obligations outflow Other contingent funding obligations outflow mortgage commitments The amounts reported in this column may not equal the calculation of those amounts using component amounts reported in rows 1-28 due to technical factors such as the application of the level 2 liquid asset caps and the total inflow cap. Excludes average excess eligible HQLA at Truist Bank that are not transferable to non-bank affiliates. ‌The Composition of Eligible HQLA‌ Eligible HQLA is the amount of unencumbered liquid assets that qualify for inclusion within the numerator based on the LCR Rule. The LCR Rule divides HQLA into Level 1 assets and Level 2 assets. Level 1 includes Federal Reserve Bank balances net of reserve requirements and the highest quality liquid and readily-marketable securities such as those issued or guaranteed by either the Department of the Treasury or a U.S. government agency. Level 2 assets are further divided into categories designated A and B. Level 2A assets are subject to a 15% haircut and include certain securities issued or guaranteed by a U.S. government-sponsored enterprise or sovereign entity not eligible as Level 1, subject to certain restrictions in the LCR rule. Level 2B assets are subject to a 50% haircut and include certain corporate debt securities, certain U.S. municipal securities, and publicly traded common equities. For the three months ended December 31, 2025, Truist's average weighted HQLA was $91.7 billion, which includes $78.6 billion of eligible Level 1 assets and $13.1 billion of Level 2A assets. Truist currently does not include any Level 2B assets as HQLA. ‌Total Adjusted Net Cash Outflows‌ Truist's net cash outflow and cash inflow amounts are calculated by multiplying average unweighted balances for assets, sources of funds, and obligations by standardized outflow and inflow rates as prescribed in the LCR rule. The largest drivers of Truist's weighted outflows are deposits, credit and liquidity commitments, and wholesale funding. Truist's cash inflow amounts are made up primarily of retail and wholesale contractual loan inflows. The total unadjusted net cash outflow includes a maturity mismatch add-on which captures the largest net maturity outflow over the 30-day calculation. Lastly, an outflow adjustment percentage of 85% is applied to the total unadjusted net cash outflow to arrive at total adjusted net cash outflow. ‌Concentration of Funding Sources‌ Deposits Truist has a granular and diversified deposit base comprising largely core retail and commercial clients. Truist's deposits are a stable and primary source of funding and limit the Company's need for wholesale funding. For the three months ended December 31, 2025, Truist had total average unweighted retail deposits of $240.6 billion. In addition, for the three months ended December 31, 2025, Truist had total average unweighted unsecured wholesale operational deposits of $73.1 billion, and total average unweighted unsecured wholesale non-operational funding of $66.6 billion. The remaining deposit base includes public fund deposits which are included within LCR Quantitative Disclosure table line 13, secured wholesale funding and asset exchange outflow. Truist's total average weighted deposit cash outflow rate, excluding collateralized deposits, is 17.0%. Wholesale Funding Access to capital markets wholesale funding is required to the extent asset growth is in excess of what can be funded with deposits. Short-term borrowings may include federal funds purchased, commercial paper, repurchase agreements, borrowings secured by high-grade assets, and other short-term borrowings. Long-term funding consists primarily of medium-term notes issued from Truist in addition to bank notes and Federal Home Loan Bank advances issued through Truist Bank. Wholesale funding is managed within liquidity policy tolerances, balance-sheet objectives, interest-rate risk considerations, and Truist's risk appetite framework. Management monitors wholesale funding to seek to maintain appropriate maturity and funding source diversification. ‌Derivative Exposure‌ Truist uses derivatives primarily to manage the economic risk related to securities, commercial loans, MSRs and mortgage banking operations, long-term debt, and other funding sources. Truist also enters into derivatives as a market maker to facilitate hedging transactions for its clients. Truist's total net cash outflows related to derivative exposures and other collateral requirements amounted to less than 2% of total unadjusted net cash outflows for the fourth quarter of 2025. ‌Liquidity Management‌ Liquidity Risk Management Truist's liquidity objective is to meet demands for cash (including loans, deposit withdrawals, payments, disbursements, debt maturity, interest, preferred and common stock dividends), while prudently managing funding costs. In order to accomplish this objective, Truist's Corporate Treasury function assesses liquidity needs that may occur in both the normal course of business and during times of unusual, adverse events, considering both on and off-balance sheet arrangements and commitments that may impact liquidity in certain business environments. Liquidity is monitored both at a consolidated level and at the legal-entity level, with particular focus on the parent, bank, and broker-dealer entities. In this evaluation, Truist takes into account a legal entity's capital position, balance sheet position and outlook, market conditions for financial firms, relative access to wholesale funding, complexity of the organization, and unique liquidity risks. This process seeks to ensure the Company's liquidity profile is consistent with its risk appetite. Truist's Corporate Treasury, working with the lines of business, is responsible for liquidity risk management. Liquidity Risk Oversight Truist's Board of Directors (the Board) oversees Truist's Liquidity Risk as part of its oversight of Truist's enterprise risk framework and risk appetite. The Board or the Board Risk Committee (BRC) approve the liquidity risk appetite, Liquidity Risk Management Policy, and the Contingency Funding Plan. The BRC authorizes the Asset Liability Committee (ALCO), a management committee, which is chaired by the Corporate Treasurer and whose membership includes the Chairman & Chief Executive Officer, Chief Financial Officer, and Chief Risk Officer and other members of Executive Leadership, to manage Truist's liquidity risk profile. As noted above, day-to-day management of funding and liquidity risk, including stress testing, is the responsibility of Corporate Treasury. Treasury & Market Risk Oversight (TMRO), part of the Risk Management Organization, conducts independent oversight of liquidity risk management activities. Further, Truist Audit Services conducts an independent assessment of the adequacy of internal controls, including procedural documentation, approval processes, reconciliations, and other mechanisms employed by Corporate Treasury and MLRM, seeking to ensure that liquidity risk is consistent with applicable policies, procedures, laws, and regulations. For additional information, refer to the Funding Activities and Liquidity sections of Truist's Annual Report on Form 10-K for the year ended December 31, 2025.

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