Truist(TFC) - 2024 Q4 - Annual Results

Quarterly Performance Summary - Quarterly Performance Summary for Truist Financial Corporation in Q4 2024[1] - Net interest income for the quarter ended Dec. 31, 2024, was $3.59 billion, compared to$ 3.52 billion in the previous quarter[3] - Noninterest income for the quarter ended Dec. 31, 2024, was $1.47 billion, compared to$ (5.21) billion in the previous quarter[3] - Net income available to common shareholders for the quarter ended Dec. 31, 2024, was $1.22 billion, compared to$ 826 million in the previous quarter[3] - Earnings per share-diluted for the quarter ended Dec. 31, 2024, was $0.91, compared to$ 0.62 in the previous quarter[3] - Return on average assets for the quarter ended Dec. 31, 2024, was 0.96%, compared to 0.70% in the previous quarter[3] - Nonperforming loans and leases as a percentage of LHFI for the quarter ended Dec. 31, 2024, was 0.47%, compared to 0.46% in the previous quarter[3] - Common equity tier 1 ratio for the quarter ended Dec. 31, 2024, was 11.5%, compared to 11.6% in the previous quarter[3] - Total shareholders' equity as of Dec. 31, 2024, was $63.68 billion, compared to$ 65.70 billion in the previous quarter[3] - Liquidity coverage ratio as of Dec. 31, 2024, was 109%, compared to 112% in the previous quarter[3] - Net interest income for the quarter ended Dec. 31, 2024, was $3.59 billion, compared to$ 3.52 billion in the previous quarter[7] - Noninterest income for the quarter ended Dec. 31, 2024, was $1.47 billion, a significant recovery from a loss of$ 5.21 billion in the previous quarter[7] - Net income (loss) available to common shareholders for the quarter ended Dec. 31, 2024, was $1.22 billion, compared to a loss of$ 5.17 billion in the previous quarter[7] - Earnings per common share (diluted) for the quarter ended Dec. 31, 2024, was $0.91, compared to a loss of$ 3.87 in the previous quarter[7] - Wealth management income for the quarter ended Dec. 31, 2024, was $345 million, a 1.4% decrease from$ 350 million in the previous quarter[7] - Investment banking and trading income for the quarter ended Dec. 31, 2024, was $262 million, a 21.1% decrease from$ 332 million in the previous quarter[7] - Total Truist Financial Corporation net income from continuing operations was $1,289 million in Q4 2024, a significant improvement from a loss of$ 5,191 million in Q4 2023[25] Financial Statements and Metrics - Consolidated Statements of Income and Ending Balance Sheets included in the report[2] - Average Balances and Rates for both Quarters and Year-to-Date provided[2] - Credit Quality and Segment Financial Performance detailed[2] - Capital Information and Selected Mortgage Banking Information included[2] - Additional Information and Selected Items covered in the report[2] - Total interest income for the year-to-date 2024 was $25.07 billion, a 2.5% increase from$ 24.45 billion in 2023[7] - Provision for credit losses for the quarter ended Dec. 31, 2024, was $471 million, a 17.7% decrease from$ 572 million in the previous quarter[7] - Total noninterest expense for the quarter ended Dec. 31, 2024, was $3.04 billion, a 3.7% increase from$ 2.93 billion in the previous quarter[7] - Total assets increased to $531.176 billion as of December 31, 2024, up from$ 523.434 billion in the previous quarter[9] - Total loans and leases held for investment decreased slightly to $306.383 billion in December 2024 from$ 307.224 billion in March 2024[9] - Total deposits remained stable at $390.524 billion in December 2024, compared to$ 387.778 billion in September 2024[9] - Securities available for sale at fair value increased to $67.464 billion in December 2024, up from$ 64.111 billion in September 2024[9] - Commercial and industrial loans decreased to $154.848 billion in December 2024 from$ 160.788 billion in December 2023[9] - Residential mortgage loans increased to $55.599 billion in December 2024, up from$ 53.963 billion in September 2024[9] - Total shareholders' equity decreased to $63.679 billion in December 2024 from$ 65.696 billion in September 2024[9] - Allowance for loan and lease losses increased slightly to $4.857 billion in December 2024 from$ 4.798 billion in December 2023[9] - Interest-bearing deposits with banks increased to $33.975 billion in December 2024 from$ 25.230 billion in December 2023[9] - Goodwill remained stable at $17.125 billion in December 2024, consistent with previous quarters[9] - Total interest-bearing deposits averaged$ 280,229 million with a yield of 2.80% for the year-to-date period ending December 31, 2024[14] - Net interest income for the year-to-date period was $14,303 million, with a net interest margin of 3.03%[14] - Total loans and leases held for investment averaged$ 305,233 million with a yield of 6.34%[14] - Commercial and industrial loans averaged $155,674 million with a yield of 6.36%[14] - Residential mortgage loans averaged$ 54,486 million with a yield of 3.88%[14] - Total securities averaged $123,858 million with a yield of 2.83%[14] - Noninterest-bearing deposits averaged$ 107,639 million[14] - Short-term borrowings averaged $24,499 million with a yield of 5.36%[14] - Long-term debt averaged$ 36,713 million with a yield of 4.94%[14] - Total deposits averaged $387,868 million with a yield of 2.02%[14] - Total assets increased to$ 531,176 million in Q4 2024, compared to $535,349 million in Q4 2023, with tangible assets at$ 512,902 million[27] - Tangible common equity per common share improved to $30.01 in Q4 2024, up from$ 21.83 in Q4 2023, reflecting stronger financial health[27] - The supplementary leverage ratio improved to 8.8% in Q4 2024, up from 7.9% in Q4 2023, indicating stronger capital adequacy[27] Credit Quality and Loan Performance - Nonperforming loans and leases as a percentage of loans and leases held for investment increased to 0.47% in Dec. 2024 from 0.44% in Dec. 2023[18] - Nonperforming assets decreased to $1,477 million as of Dec. 31, 2024, compared to$ 1,488 million in Dec. 2023[17] - Total nonaccrual loans and leases held for investment stood at $1,429 million as of Dec. 31, 2024, slightly down from$ 1,467 million in Sept. 2024[17] - Loans 90 days or more past due and still accruing increased to $587 million as of Dec. 31, 2024, up from$ 518 million in Sept. 2024[17] - Loans 30-89 days past due rose to $1,949 million as of Dec. 31, 2024, compared to$ 1,769 million in Sept. 2024[17] - Net charge-offs as a percentage of average loans and leases increased to 0.59% in 2024, up from 0.50% in 2023[20] - The allowance for credit losses ended at $5,161 million as of Dec. 31, 2024, compared to$ 5,093 million in Dec. 2023[22] - Total charge-offs for 2024 amounted to $2,216 million, higher than$ 1,920 million in 2023[22] - Recoveries for 2024 totaled $413 million, up from$ 325 million in 2023[22] - The ratio of allowance for loan and lease losses to net charge-offs decreased to 2.7X in 2024 from 3.0X in 2023[20] - Net charge-offs as a percentage of average loans and leases for commercial and industrial loans increased to 0.27% in Q4 2024, up from 0.23% in Q4 2023[23] - Indirect auto loan charge-offs rose to 2.33% in Q4 2024, compared to 2.19% in Q4 2023[23] - Credit card charge-offs reached 5.10% in Q4 2024, up from 4.38% in Q4 2023[23] - Total loans and leases charge-offs increased to 0.59% in Q4 2024, compared to 0.57% in Q4 2023[23] Segment Performance - Consumer and Small Business Banking segment net interest income grew to $2,591 million in Q4 2024, up from$ 2,630 million in Q4 2023[25] - Wholesale Banking segment net income improved to $1,001 million in Q4 2024, recovering from a loss of$ 2,165 million in Q4 2023[25] - Other, Treasury & Corporate segment reported a net loss of $504 million in Q4 2024, compared to a loss of$ 426 million in Q4 2023[25] Capital and Liquidity - Common equity tier 1 capital increased to $48,223 million in Q4 2024, up from$ 42,671 million in Q4 2023, with a ratio of 11.5% compared to 10.1% in Q4 2023[27] - Brokered deposits decreased to $28,085 million in Q4 2024 from$ 31,260 million in Q4 2023, indicating a shift in deposit strategy[29] - FTEs (full-time equivalents) for continuing operations decreased to 37,661 in Q4 2024 from 40,997 in Q4 2023, showing workforce optimization[29] Mortgage Banking and Real Estate - Total mortgage banking income rose to $117 million in Q4 2024, up from$ 94 million in Q4 2023, driven by growth in both residential and commercial mortgage income[29] - Residential mortgage loan originations surged to $4,745 million in Q4 2024, a significant increase from$ 3,027 million in Q4 2023[29] - Total servicing portfolio for residential mortgages stood at 273,412 loans in Q4 2024, slightly down from 269,068 loans in Q4 2023[29] Market and Stock Performance - The company's common stock price ended at $43.38 in Q4 2024, up from$ 36.92 in Q4 2023, reflecting improved market confidence[29] Special Items and Adjustments - Restructuring charges in Q4 2024 amounted to $11 million pre-tax, impacting diluted EPS by$ (0.01)[32] - FDIC special assessment in Q4 2024 resulted in a pre-tax cost of $8 million, with no impact on diluted EPS[32] - Gain on sale of TIH in Q3 2024 contributed$ 36 million pre-tax, increasing diluted EPS by $0.01[32] - Loss on sale of securities in Q2 2024 was$ 6,650 million pre-tax, reducing diluted EPS by $(3.80)[32] - Goodwill impairment in Q4 2023 was$ 6,078 million pre-tax, significantly impacting diluted EPS by $(4.53)[32] - FDIC special assessment in Q4 2023 cost$ 507 million pre-tax, reducing diluted EPS by $(0.29)[32] - Restructuring charges in Q4 2023 totaled$ 183 million pre-tax, decreasing diluted EPS by $(0.10)[32] - Discrete tax benefit in Q4 2023 provided$ 204 million after-tax, positively impacting diluted EPS by $0.15[32] - Accelerated recognition of TIH equity compensation expense in Q1 2024 was$ 89 million pre-tax, reducing diluted EPS by $(0.05)[32] - Charitable contribution in Q2 2024 amounted to$ 150 million pre-tax, decreasing diluted EPS by $(0.09)[32] Asset and Liability Management - Average balances of U.S. Treasury securities increased to$ 14,387 million in Q4 2024, with a yield of 5.40%, up from $10,967 million and a yield of 1.37% in Q4 2023[11] - Mortgage-backed securities issued by GSE saw average balances rise to$ 109,644 million in Q4 2024, with a yield of 2.89%, compared to $118,548 million and a yield of 2.48% in Q4 2023[11] - Commercial and industrial loans averaged$ 153,209 million in Q4 2024, with a yield of 5.95%, slightly down from $160,278 million and a yield of 6.58% in Q4 2023[11] - Residential mortgage loans averaged$ 54,390 million in Q4 2024, with a yield of 3.94%, compared to $55,658 million and a yield of 3.83% in Q4 2023[11] - Credit card loans averaged$ 4,926 million in Q4 2024, with a yield of 11.54%, up from $4,996 million and a yield of 11.84% in Q4 2023[11] - Total loans and leases held for investment averaged$ 303,110 million in Q4 2024, with a yield of 6.12%, compared to $312,587 million and a yield of 6.36% in Q4 2023[11] - Interest-bearing deposits in checking accounts averaged$ 107,075 million in Q4 2024, with a yield of 2.52%, up from $101,722 million and a yield of 2.48% in Q4 2023[11] - Money market and savings deposits averaged$ 138,242 million in Q4 2024, with a yield of 2.41%, compared to $137,464 million and a yield of 2.43% in Q4 2023[11] - Time deposits averaged$ 36,757 million in Q4 2024, with a yield of 3.66%, down from $41,592 million and a yield of 4.19% in Q4 2023[11] - Total earning assets averaged$ 472,639 million in Q4 2024, with a yield of 5.25%, compared to $481,538 million and a yield of 5.22% in Q4 2023[11] Corporate Transactions - The company completed the sale of its remaining 80% stake in TIH, resulting in an after-tax gain of$ 4.8 billion[4] - The company completed the sale of its IH segment on May 6, 2024, resulting in an after-tax gain of $4.8 billion[7] - The company completed the sale of its remaining 80% stake in TIH on May 6, 2024, resulting in an after-tax gain of$ 4.8 billion[26] - Corporate expense allocation methodology was enhanced in Q3 2024 to more fully allocate certain overhead or functional expenses[26]