RECENT DEVELOPMENTS
Truists Second Quarter 2022 Financial Results
On July 19, 2022, we reported earnings for the second quarter of 2022. Outlined below is a summary of those results. Our second quarter
2022 consolidated financial results below are unaudited and preliminary. Such results are based on information available to management as of the date of the earnings report and is subject to completion by management of our financial statements as of
and for the quarter ended June 30, 2022. There can be no assurance that actual results for the second quarter will not differ from these preliminary financial data, including as a result of quarter-end
closing, and any such changes could be material. Complete quarterly results will be included in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2022. Our second quarter 2022 consolidated
financial results below should be read in conjunction with our Quarterly Report on Form 10-Q for the period ended March 31, 2022 and our Annual Report on Form 10-K
for the year ended December 31, 2021, which are incorporated by reference herein.
Earnings OverviewSecond Quarter 2022 Compared to
Second Quarter 2021
Net income available to common shareholders for the second quarter of 2022 was $1.5 billion, down 6.7%
from the second quarter of last year, which we refer to as the earlier quarter, primarily due to a benefit in the provision for credit losses last year. Earnings per diluted common share were $1.09, a decrease of 6.0% compared with the same period
last year. Earnings for the current quarter include merger-related and restructuring charges of $121 million ($92 million after-tax), incremental operating expenses related to the merger with
SunTrust Banks, Inc. of $117 million ($89 million after-tax), and a gain on the redemption of Federal Home Loan Bank (FHLB) advances of $39 million ($30 million after-tax).
Our results for the second quarter produced an annualized return on average assets of
1.14%, an annualized return on average common shareholders equity of 10.3% and an annualized return on tangible common shareholders equity of 22.7%.
Total taxable-equivalent revenues were $5.7 billion for the second quarter of 2022, relatively flat compared to the earlier quarter.
Taxable equivalent net interest income for the second quarter of 2022 was up $162 million, or 4.9%, compared to the earlier quarter
primarily due to higher market interest rates coupled with well controlled deposit costs, growth in the securities portfolio and lower premium amortization. These increases were partially offset by lower purchase accounting accretion and lower
Paycheck Protection Program (PPP) revenue. Average earning assets increased $20.6 billion, or 4.5%, compared to the earlier quarter. The increase in average earning assets reflects a $13.0 billion, or 10%, increase in average
securities, a $6.9 billion, or 2.4%, increase in total loans and leases, and a $1.0 billion, or 20%, increase in average interest earning trading assets. Average deposits increased $27.5 billion, or 6.9%, and average short term
borrowings increased $3.5 billion, or 56%, compared to the earlier quarter, while average long-term debt decreased $5.6 billion, or 15%.
Net interest margin was 2.89%, up one basis point compared to the earlier quarter. The yield on the total loan portfolio for the second
quarter of 2022 was 3.91%, down 10 basis points compared to the earlier quarter, reflecting the impact of lower purchase accounting accretion, partially offset by higher market interest rates. The yield on the average securities portfolio was 1.82%,
up 35 basis points compared to the earlier quarter primarily due to purchases of higher yielding securities, favorable hedge benefits, and lower premium amortization.
The average cost of total deposits was 0.09%, up five basis points compared to the earlier quarter. The average cost of short-term borrowings
was 1.26%, up 28 basis points compared to the earlier quarter. The average cost of long-term debt was 1.75%, up 15 basis points compared to the earlier quarter. The increase in rates on deposits and other funding sources was largely attributable to
the higher rate environment.
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