ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS MD&A is intended to assist readers in their analysis of the accompanying Consolidated Financial Statements and the accompanying Notes to the Consolidated Financial Statements. It should be read in conjunction with the Consolidated Financial Statements and the accompanying Notes to the Consolidated Financial Statements in this Form 10-K, and other information contained in this document. For discussion of 2024 results as compared to 2023 results, refer to MD&A in the Annual Report on Form 10-K for the year ended December 31, 2024. A description of certain factors that may affect our future results and risk factors is set forth in “Item 1A. Risk Factors.” Executive Overview During 2025, we focused on delivering strong, purpose-driven performance by deepening client relationships, enhancing operational efficiency, investing in talented teammates and innovative technology, and increasing capital return to shareholders. Through disciplined risk management and sound governance, we believe we strengthened our foundation and positioned Truist for sustainable growth. During 2025, we returned $5.2 billion of capital to our common shareholders through $2.7 billion of common stock dividends and $2.5 billion in common share repurchases. In December 2025, we announced that the Board authorized the repurchase of up to $10.0 billion of common stock effective immediately with no expiration date, replacing the previous repurchase authority, as part of Truist’s overall capital distribution strategy. Key Areas of Focus In 2025, our work centered around five core strategic priorities: • Execute strategic growth and profitability initiatives in both WB and CSBB including: ◦ In WB, capture more of the commercial middle market with an industry banking strategy, continue momentum in Investment Banking and Capital Markets, generate additional fee income from existing clients in Wealth, and deepen and grow existing client relationships in Wholesale Payments. ◦ In CSBB, grow deposits with a focus on Premier clients, increase client acquisition, deepen client relationships, and drive digital acquisition and client engagement. • Drive positive operating leverage through revenue growth and expense discipline. • Invest in talent, technology, and our risk infrastructure. • Maintain our credit and risk discipline. • Return capital to shareholders through our common stock dividend and share repurchases. Looking ahead, our strategic priorities remain unchanged. By successfully executing on them, we seek to accelerate revenue growth, drive greater positive operating leverage, and return more capital to shareholders, all while maintaining our risk discipline. These outcomes are central to driving improved profitability. Financial Results Net income to common shareholders totaled $5.0 billion, or $3.82 per share, for 2025, compared to $4.5 billion, or $3.36 per share, for the prior year. • Results from continuing operations for 2025 included charges primarily related to severance of $156 million ($119 million after-tax, or $0.09 per share), an incremental accrual related to executing a settlement agreement in a specific legal matter of $130 million ($99 million after-tax, or $0.08 per share), and securities losses of $19 million ($15 million after-tax or $0.01 per share). • Results from continuing operations for 2024 included securities losses of $6.7 billion ($5.1 billion after-tax or $3.82 per share) from a balance sheet repositioning executed in connection with the TIH sale, a charitable contribution to the Truist Foundation of $150 million ($115 million after-tax, or $0.09 per share), and charges primarily related to severance of $120 million ($92 million after-tax, or $0.07 per share). • Results from discontinued operations of $4.9 billion for 2024 included a gain on the sale of TIH of $6.9 billion ($4.8 billion after-tax, or $3.64 per share), the accelerated recognition of TIH equity compensation expense for certain event-driven awards of $99 million ($76 million after tax, or $0.06 per share), and restructuring charges of $82 million ($62 million after-tax, or $0.05 per share). Truist did not have discontinued operations in 2025. Truist Financial Corporation 49 Table 6: Earnings Highlights (Dollars in millions) As of / for the Year Ended December 31, Change 2025 2024 2023 2025 vs. 2024 2024 vs. 2023 Net interest income $ 14,423  $ 14,091  $ 14,524  $ 332  $ (433) TE adjustment (1) 196  212  220 Net interest income - TE (1) 14,619  14,303  14,744  316  (441) Noninterest income 5,896  (813) 5,498  6,709  (6,311) Total revenue 20,319  13,278  20,022  7,041  (6,744) Total revenue-TE (1) 20,515  13,490  20,242  7,025  (6,752) Noninterest expense 12,076  12,009  18,678  67  (6,669) Income (loss) before income taxes 6,349  (601) (765) 6,950  164 Provision (benefit) for income taxes 1,042  (556) 738  1,598  (1,294) Net income (loss) from continuing operations 5,307  (45) (1,503) 5,352  1,458 Net income from discontinued operations —  4,885  456  (4,885) 4,429 Net income (loss) 5,307  4,840  (1,047) 467  5,887 Net income (loss) available to common shareholders 4,974  4,469  (1,452) 505  5,921 Diluted earnings per common share $ 3.82  $ 3.36  $ (1.09) $ 0.46  $ 4.45 Common shareholders’ equity per common share 47.74  43.90  3.84 TBVPS (1) 33.48  30.01  3.47 Return on average common shareholders’ equity 8.4  % 8.0  % (2.6) % 40 bps NM ROTCE (1) 12.7  13.3  18.9  (60) bps (560) bps Net interest margin - TE (1) 3.03  3.03  2.98  — bps 5 bps (1) Represents a non-GAAP measure. A reconciliation of each non-GAAP measure to the most directly comparable GAAP measure is included within the table above or in the “Non-GAAP Financial Measures” section in this report. Net interest income - TE for the year ended December 31, 2025 was up $316 million, or 2.2%, compared to the year ended December 31, 2024 primarily due to loan and deposit growth, fixed-rate asset repricing, and the balance sheet repositioning in the second quarter of 2024, partially offset by the impact of reductions in interest rates throughout 2025. Net interest margin - TE was 3.03%, flat compared to the prior year. • The yield on the average total loan portfolio was 5.96% for 2025, down 38 basis points, compared to the prior year, primarily due to the impact of variable-rate loans repricing, partially offset by fixed-rate loan repricing. The yield on the average securities portfolio was 3.13% for 2025, up 30 basis points compared to the prior year, reflecting the impact of balance sheet repositioning in 2024 and the reinvestment of cash flows into higher yielding securities. • The average cost of total deposits was 1.78% for 2025, down 24 basis points compared to the prior year. The average cost of short-term borrowings was 4.36% for 2025, down 100 basis points compared to the prior year. The average cost of long-term debt was 5.01% for 2025, stable compared to the prior year. The decline in the cost of deposits and short-term borrowings was driven by the impact of reductions in interest rates. The provision for credit losses was $1.9 billion for the year ended December 31, 2025, up $24 million, or 1.3%, compared to the year ended December 31, 2024. The net charge-off ratio for the year ended December 31, 2025 was 0.54%, down five basis points compared to the prior year. • The provision for credit losses for the year ended December 31, 2025 reflected a higher allowance build and lower net charge-offs compared to the prior year. • The net charge-off ratio was down compared to the prior year driven by lower net charge-offs combined with growth in average loans and leases. Net charge-offs were lower in the CRE and credit card portfolios, partially offset by increases in the commercial and industrial, indirect auto, and other consumer portfolios. Noninterest income was up $6.7 billion for the year ended December 31, 2025, compared to the year ended December 31, 2024, primarily due to securities losses resulting from the balance sheet repositioning in 2024, as well as higher other income and card and treasury management fees, partially offset by lower investment banking and trading income. Noninterest expense was up $67 million, or 0.6%, for the year ended December 31, 2025 compared to the year ended December 31, 2024 primarily due to higher personnel expense, professional fees and outside processing, software expense, and marketing and customer development, partially offset by lower regulatory costs, other expense, and amortization of intangibles. Truist had a provision for income taxes of $1.0 billion for 2025, compared to a benefit from income taxes of $556 million in 2024. The 2024 benefit from income taxes was driven by the discrete impact of the balance sheet repositioning of securities. 50 Truist Financial Corporation Truist’s total assets at December 31, 2025, were $547.5 billion, an increase of $16.4 billion, or 3.1%, compared to December 31, 2024, as loans and leases, net of ALLL, increased $22.0 billion, or 7.3%, partially offset by a decrease of $5.9 billion, or 5.0%, in total securities. • Average earning assets increased $9.6 billion, or 2.0%, compared to the prior year primarily due to an increase in average total loans of $11.1 billion, or 3.6%, and an increase in other earning assets of $1.2 billion, or 3.3%, partially offset by a decline in average securities of $3.2 billion, or 2.6%. The increase in average other earning assets and decrease in average securities primarily reflect the impact of the balance sheet repositioning in the second quarter of 2024. Total liabilities at December 31, 2025, were $482.3 billion, an increase of $14.9 billion, or 3.2%, compared to December 31, 2024, reflecting an increase of $9.9 billion, or 2.5%, in deposits and an increase of $7.0 billion, or 20%, in long-term debt, partially offset by a decrease of $1.4 billion, or 4.7%, in short-term borrowings. • Average deposits increased $8.5 billion, or 2.2%, average short-term borrowings increased $3.6 billion, or 15%, and average long-term debt increased $125 million, or 0.3%, compared to the prior year. Total shareholders’ equity was $65.2 billion at December 31, 2025, an increase of $1.5 billion from December 31, 2024. This increase includes $5.3 billion in net income and $2.4 billion in OCI, partially offset by $3.0 billion in common and preferred dividends, $2.5 billion in common share repurchases, and $1.0 billion for the redemption of series P preferred stock. Truist’s book value per common share at December 31, 2025, was $47.74, compared to $43.90 at December 31, 2024. Truist’s TBVPS of $33.48 at December 31, 2025, increased 12% compared to December 31, 2024. Refer to the “Non-GAAP Financial Measures“ section in MD&A for additional information on TBVPS, which is a non-GAAP measure. Asset quality was solid for the year ended December 31, 2025. • Nonperforming loans and leases held for investment totaled $1.6 billion or 0.48% of loans and leases held for investment at December 31, 2025, up one basis point compared to December 31, 2024. • Loans 90 days or more past due and still accruing totaled $684 million or 0.21% of loans and leases held for investment at December 31, 2025, up two basis points as a percentage of loans and leases compared with December 31, 2024. Excluding government guaranteed loans, the ratio of loans 90 days or more past due and still accruing as a percentage of loans and leases was 0.05% at December 31, 2025, flat compared to December 31, 2024. • The allowance for credit losses at December 31, 2025, was $5.3 billion and included $5.0 billion for the allowance for loan and lease losses and $317 million for the reserve for unfunded commitments. The ALLL ratio was 1.53% at December 31, 2025, down six basis points compared with December 31, 2024. Capital and liquidity ratios remained strong during 2025. • Truist’s CET1 ratio was 10.8% as of December 31, 2025, down 70 basis points since December 31, 2024, as capital was returned to shareholders and an increase in risk-weighted assets outpaced current year earnings. • Truist returned $5.2 billion to common shareholders through declared common dividends of $2.7 billion, or $2.08 per share, during 2025 and repurchases of $2.5 billion of common stock, resulting in a dividend payout ratio of 54% and total payout ratio of 104%. • Truist redeemed all outstanding shares of its perpetual preferred stock series P and the corresponding depositary shares representing fractional interests in such series for $1.0 billion. • Truist’s average consolidated LCR was 111% for the three months ended December 31, 2025, compared to the regulatory minimum of 100%. Truist Financial Corporation 51 Analysis of Results of Operations Net Interest Income and NIM - TE Net interest income - TE for the year ended December 31, 2025 was up $316 million, or 2.2%, compared to the year ended December 31, 2024 primarily due to loan and deposit growth, fixed-rate asset repricing, and the balance sheet repositioning in the second quarter of 2024, partially offset by the impact of reductions in interest rates throughout 2025. Net interest margin - TE was 3.03%, flat compared to the prior year. • The yield on the average total loan portfolio was 5.96% for 2025, down 38 basis points, compared to the prior year, primarily due to the impact of variable-rate loans repricing, partially offset by fixed-rate loan repricing. The yield on the average securities portfolio was 3.13% for 2025, up 30 basis points compared to the prior year, reflecting the impact of balance sheet repositioning in 2024 and the reinvestment of cash flows into higher yielding securities. • The average cost of total deposits was 1.78% for 2025, down 24 basis points compared to the prior year. The average cost of short-term borrowings was 4.36% for 2025, down 100 basis points compared to the prior year. The average cost of long-term debt was 5.01% for 2025, up seven basis points compared to the prior year. The decline in the cost of deposits and short-term borrowings was driven by the impact of reductions in interest rates. • Average earning assets increased $9.6 billion, or 2.0%, compared to the prior year primarily due to an increase in average total loans of $11.1 billion, or 3.6%, and an increase in other earning assets of $1.2 billion, or 3.3%, partially offset by a decline in average securities of $3.2 billion, or 2.6%. The increase in average other earning assets and decrease in average securities primarily reflect the impact of the balance sheet repositioning in the second quarter of 2024. • Average deposits increased $8.5 billion, or 2.2%, average short-term borrowings increased $3.6 billion, or 15%, and average long-term debt increased $125 million, or 0.3%, compared to the prior year. The major components of net interest income and the related annualized yields as well as the variances between the periods caused by changes in interest rates versus changes in volumes are summarized below. 52 Truist Financial Corporation Table 7: Taxable-Equivalent Net Interest Income and Rate / Volume Analysis Year Ended December 31, (Dollars in millions) Average Balances (1) Annualized Yield/Rate (2) Income/Expense (2) Incr. (Decr.) Change due to Incr. (Decr.) Change due to 2025 2024 2023 2025 2024 2023 2025 2024 2023 Rate Volume Rate Volume Assets AFS and HTM securities at amortized cost: U.S. Treasury $ 13,876  $ 12,100  $ 11,021  5.10  % 4.01  % 1.20  % $ 708  $ 485  $ 132  $ 223  $ 145  $ 78  $ 353  $ 339  $ 14 GSE 465  390  348  3.78  3.38  2.94  17  13  10  4  2  2  3  2  1 Agency MBS 105,955  109,652  121,923  2.87  2.70  2.31  3,036  2,958  2,821  78  181  (103) 137  441  (304) States and political subdivisions 362  417  424  4.21  4.14  4.13  15  17  18  (2) —  (2) (1) —  (1) Non-agency MBS —  1,282  3,816  —  2.85  2.34  —  37  89  (37) (18) (19) (52) 16  (68) Other 15  17  20  4.55  5.25  5.37  1  1  1  —  —  —  —  —  — Total securities 120,673  123,858  137,552  3.13  2.83  2.23  3,777  3,511  3,071  266  310  (44) 440  798  (358) Interest earning trading assets 5,884  5,320  4,739  5.69  6.12  6.64  336  326  314  10  (24) 34  12  (26) 38 Other earning assets (3) 37,818  36,622  29,335  4.42  5.48  5.31  1,693  2,008  1,557  (315) (382) 67  451  51  400 Loans and leases, net of unearned income: Commercial and industrial 160,004  155,674  163,983  5.64  6.36  6.34  9,025  9,897  10,389  (872) (1,142) 270  (492) 33  (525) CRE 20,984  21,585  22,741  6.14  6.81  6.71  1,300  1,480  1,535  (180) (140) (40) (55) 22  (77) Commercial Construction 8,403  7,729  6,125  6.76  7.67  7.62  557  583  459  (26) (75) 49  124  3  121 Residential mortgage 56,812  54,486  56,131  4.10  3.88  3.78  2,328  2,114  2,121  214  122  92  (7) 55  (62) Home equity 9,606  9,778  10,388  7.42  7.94  7.36  713  776  765  (63) (50) (13) 11  57  (46) Indirect auto 24,510  22,326  25,621  7.27  7.00  6.10  1,781  1,563  1,563  218  62  156  —  215  (215) Other consumer 30,904  28,748  28,412  8.35  8.18  7.25  2,581  2,351  2,061  230  50  180  290  265  25 Student —  —  2,453  —  —  6.91  —  —  170  —  —  —  (170) (85) (85) Credit card 4,903  4,907  4,876  11.39  11.96  11.59  559  587  565  (28) (28) —  22  18  4 Total loans and leases HFI 316,126  305,233  320,730  5.96  6.34  6.12  18,844  19,351  19,628  (507) (1,201) 694  (277) 583  (860) LHFS 1,483  1,305  1,605  5.94  6.31  6.37  88  82  102  6  (5) 11  (20) (1) (19) Total loans and leases 317,609  306,538  322,335  5.96  6.34  6.12  18,932  19,433  19,730  (501) (1,206) 705  (297) 582  (879) Total earning assets 481,984  472,338  493,961  5.13  5.35  4.99  24,738  25,278  24,672  (540) (1,302) 762  606  1,405  (799) Nonearning assets 56,244  51,185  51,554 Assets of discontinued operations —  2,542  7,617 Total assets $ 538,228  $ 526,065  $ 553,132 Liabilities and Shareholders’ Equity Interest-bearing deposits: Interest-checking $ 111,741  $ 104,606  $ 103,465  2.38  2.68  2.11  2,661  2,802  2,184  (141) (325) 184  618  594  24 Money market and savings 136,786  136,217  138,841  2.14  2.54  2.04  2,926  3,457  2,834  (531) (545) 14  623  677  (54) Time deposits 41,839  39,406  36,803  3.49  4.04  3.83  1,461  1,590  1,409  (129) (224) 95  181  79  102 Total interest-bearing deposits 290,366  280,229  279,109  2.43  2.80  2.30  7,048  7,849  6,427  (801) (1,094) 293  1,422  1,350  72 Short-term borrowings 28,117  24,499  24,478  4.36  5.36  5.25  1,227  1,313  1,286  (86) (264) 178  27  26  1 Long-term debt 36,838  36,713  49,678  5.01  4.94  4.46  1,844  1,813  2,215  31  25  6  (402) 220  (622) Total interest-bearing liabilities 355,321  341,441  353,265  2.85  3.21  2.81  10,119  10,975  9,928  (856) (1,333) 477  1,047  1,596  (549) Noninterest-bearing deposits 105,969  107,639  122,018 Other liabilities 12,270  13,343  11,560 Liabilities of discontinued operations —  1,049  3,190 Shareholders’ equity 64,668  62,593  63,099 Total liabilities and shareholders’ equity $ 538,228  $ 526,065  $ 553,132 Average interest-rate spread     2.28  % 2.14  % 2.18  % NIM/net interest income - TE (2)     3.03  % 3.03  % 2.98  % $ 14,619  $ 14,303  $ 14,744  $ 316  $ 31  $ 285  $ (441) $ (191) $ (250) Less: TE adjustment (2)         196  212  $ 220 Net interest income $ 14,423  $ 14,091 Memo: Total deposits $ 396,335  $ 387,868  $ 401,127  1.78  % 2.02  % 1.60  % $ 7,048  $ 7,849  $ 6,427  $ (801) $ 1,422 (1) Represents daily average balances. Unrealized gains and losses on available-for-sale securities are included in nonearning assets. Active hedge basis adjustments for fair value hedges are included in nonearning assets and other liabilities. (2) Yields are stated on a TE basis, which represents a non-GAAP measure, utilizing a federal tax rate of 21%. Interest income includes certain fees, deferred costs, and dividends. The change in interest not solely due to changes in rate or volume has been allocated based on the pro-rata absolute dollar amount of each. (3) Includes cash equivalents, interest-bearing deposits with banks, FHLB stock, and other earning assets. Truist Financial Corporation 53 Provision for Credit Losses The provision for credit losses was $1.9 billion for the year ended December 31, 2025, up $24 million, or 1.3%, compared to the year ended December 31, 2024. The net charge-off ratio for the year ended December 31, 2025 was 0.54%, down five basis points compared to the prior year. • The provision for credit losses for the year ended December 31, 2025 reflects a higher allowance build and lower net charge-offs compared to the prior year. • The net charge-off ratio was down compared to the prior year driven by lower net charge-offs and growth in average loans and leases. Net charge-offs were lower in the CRE and credit card portfolios, partially offset by increases in the commercial and industrial, indirect auto, and other consumer portfolios. Refer to “Note 5. Loans and ACL” for additional discussion of the ACL. Noninterest Income Noninterest income is a significant contributor to Truist’s financial results. Management focuses on diversifying its sources of revenue to reduce Truist’s reliance on traditional spread-based interest income, as certain fee-based activities are a relatively stable revenue source during periods of changing interest rates. The following table provides a breakdown of Truist’s noninterest income: Table 8: Noninterest Income Year Ended December 31, % Change (Dollars in millions) 2025 2024 2023 2025 vs. 2024 2024 vs. 2023 Wealth management income $ 1,431  $ 1,412  $ 1,358  1.3  % 4.0  % Card and treasury management fees (1)(2) 1,360  1,311  1,316  3.7  (0.4) Investment banking and trading income 1,136  1,203  822  (5.6) 46.4 Other deposit revenue (1)(3) 471  511  493  (7.8) 3.7 Mortgage banking income 452  432  437  4.6  (1.1) Lending related fees 395  366  447  7.9  (18.1) Securities gains (losses) (19) (6,651) —  (99.7) NM Other income (4) 670  603  625  11.1  (3.5) Total noninterest income $ 5,896  $ (813) $ 5,498  NM (114.8) (1) Effective December 31, 2025, Truist reclassified treasury management fees to ‘Card and treasury management fees’ from ‘Other deposit revenue.’ Prior period balances have been conformed to current period presentation. (2) Renamed from ‘Card and payment related fees.’ (3) Renamed from ‘Service charges on deposits.’ (4) Effective December 31, 2025, Truist reclassified operating lease income into ‘Other income.’ Prior period balances have been conformed to current period presentation. Noninterest income was up $6.7 billion for the year ended December 31, 2025, compared to the year ended December 31, 2024, primarily due to securities losses resulting from the balance sheet repositioning in 2024 as well as higher other income and card and treasury management fees, partially offset by lower investment banking and trading income. • Other income increased primarily due to higher income from certain solar and other investments, partially offset by the 2024 gain on the sale of Sterling Capital Management LLC. • Card and treasury management fees increased primarily due to higher treasury management fees. • Investment banking and trading income decreased due to lower trading income, merger and acquisition fees, and capital markets activity. 54 Truist Financial Corporation Noninterest Expense The following table provides a breakdown of Truist’s noninterest expense: Table 9: Noninterest Expense Year Ended December 31, % Change (Dollars in millions) 2025 2024 2023 2025 vs. 2024 2024 vs. 2023 Personnel expense (1) $ 6,848  $ 6,587  $ 6,765  4.0  % (2.6) % Professional fees and outside processing (1) 1,420  1,342  1,194  5.8  12.4 Software expense 936  896  868  4.5  3.2 Net occupancy expense (1) 710  695  732  2.2  (5.1) Equipment expense 351  373  381  (5.9) (2.1) Marketing and customer development 299  268  260  11.6  3.1 Amortization of intangibles 290  345  395  (15.9) (12.7) Regulatory costs 163  344  824  (52.6) (58.3) Goodwill impairment —  —  6,078  — (100.0) Other expense (1)(2) 1,059  1,159  1,181  (8.6) (1.9) Total noninterest expense $ 12,076  $ 12,009  $ 18,678  0.6  (35.7) (1) Effective December 31, 2025, Truist reclassified the underlying activities of restructuring charges, which were previously reported in a separate financial statement caption, to their natural expense categories of ‘Personnel,’ ‘Net occupancy,’ ‘Professional fees and outside processing,’ and ‘Other expense.’ Prior period balances have been conformed to current period presentation. (2) Effective December 31, 2025, Truist reclassified operating lease depreciation into ‘Other expense.’ Prior period balances have been conformed to current period presentation. Noninterest expense was up $67 million, or 0.6%, for the year ended December 31, 2025, compared to the year ended December 31, 2024, primarily due to higher personnel expense, professional fees and outside processing, software expense, and marketing and customer development, partially offset by lower regulatory costs, other expense, and amortization of intangibles. • Personnel expense increased due to higher investments in talent in revenue producing businesses as well as the technology and risk infrastructure organizations, incentives, insurance costs, and severance charges, partially offset by lower expenses for other employee benefits. • Professional fees and outside processing expense increased due to higher investments in technology and risk infrastructure. • Software expense increased primarily due to higher spending on certain projects. • Marketing and customer development expense increased primarily due to marketing initiatives. • Regulatory costs decreased primarily due to the additional accrual for the FDIC special assessment in 2024, and related adjustments to the special assessment in 2025. • Other expense decreased primarily due to a charitable contribution in 2024 and lower operating losses in 2025, partially offset by a $130 million incremental accrual related to executing a settlement agreement in a specific legal matter. • Amortization of intangibles decreased primarily due to the scheduled amortization for certain assets. Truist Financial Corporation 55 Segment Results Truist operates and measures business activity across two reportable segments: Consumer and Small Business Banking (CSBB) and Wholesale Banking (WB), with functional activities included in Other, Treasury, and Corporate (OT&C). The Company’s business segment structure is based on the manner in which financial information is evaluated by management as well as the products and services provided or the type of client served. Refer to “Note 21. Operating Segments” for additional information on the Company’s reportable segments. Table 10: Net Income from Continuing Operations by Reportable Segment Year Ended December 31, % Change (Dollars in millions) 2025 2024 2023 2025 vs. 2024 2024 vs. 2023 Consumer and Small Business Banking $ 2,529  $ 3,075  $ (36) (17.8) % NM Wholesale Banking 4,102  3,856  169  6.4  NM Other, Treasury & Corporate (1,324) (6,976) (1,636) 81.0  NM Truist Financial Corporation $ 5,307  $ (45) $ (1,503) NM (97.0) Consumer and Small Business Banking CSBB net income was $2.5 billion for the year ended December 31, 2025, a decrease of $546 million compared to the prior year. • Segment net interest income decreased $395 million primarily driven by lower funding credit on deposits. • The allocated provision for credit losses increased $223 million primarily reflecting a net reserve build in the current year. • Noninterest income increased $29 million primarily due to increased residential mortgage income, partially offset by lower deposit related revenue. • Noninterest expense increased $113 million primarily driven by higher enterprise technology and payments support charges, partially offset by lower operating charge-offs. CSBB average loans and leases held for investment increased $6.3 billion, or 5.0%, for the year ended December 31, 2025 compared to the prior year, primarily due to higher indirect lending in the prime auto and Service Finance portfolios, and increased real estate lending driven by the mortgage portfolio. CSBB average total deposits increased $1.7 billion, or 0.8%, for the year ended December 31, 2025 compared to the prior year, primarily due to higher average money market and savings and noninterest-bearing deposits, partially offset by lower average interest-bearing checking deposits. Wholesale Banking WB net income was $4.1 billion for the year ended December 31, 2025, an increase of $246 million compared to the prior year. • Segment net interest income increased $207 million primarily due to lower cost of deposits and higher funding credit on higher deposit balances, partially offset by lower loan yields. • The allocated provision for credit losses decreased $196 million, which reflected a decrease in net charge-offs as well as an increase in the net reserve release compared to the prior year. • Noninterest income increased $121 million primarily due to higher income from certain strategic investments, tax credit related investments, higher card and treasury management fees, and lending related fees, partially offset by lower income from investment banking and trading. • Noninterest expense increased $165 million primarily due to higher charges for enterprise functional support and enterprise operations as well as increased personnel expenses driven by incentives expense, partially offset by lower regulatory costs. WB average loans and leases held for investment increased $4.6 billion, or 2.6%, for the year ended December 31, 2025 compared to the prior year, primarily driven by higher balances in the commercial and industrial loan portfolio, partially offset by lower commercial real estate balances. WB average total deposits increased $3.8 billion, or 2.7%, for the year ended December 31, 2025 compared to the prior year, primarily due to higher average interest-bearing checking balances, partially offset by lower average noninterest-bearing deposits and money market and savings balances. 56 Truist Financial Corporation Other, Treasury, and Corporate OT&C generated a net loss of $1.3 billion for the year ended December 31, 2025, compared to a net loss of $7.0 billion in the prior year. • OT&C net interest income increased $520 million primarily due to lower inter-segment funding costs for deposits, the balance sheet repositioning in 2024, and reinvesting cash flows into higher yielding securities, partially offset by the lower funding charges primarily on loans to other segments. • Noninterest income increased $6.6 billion primarily due to the securities losses from the balance sheet repositioning in 2024. • Noninterest expense decreased $211 million primarily driven by recoveries received from the business segments for enterprise functional, technology, and operations support expenses, as well as lower other expense due to a charitable contribution to the Truist Foundation in 2024, partially offset by increased salaries driven by higher investments in talent for technology and risk infrastructures and an increase in non-fraud operational charge-offs. Truist Financial Corporation 57 Analysis of Financial Condition Investment Activities Truist’s investment policy is approved and carried out by the ALCO, which meets regularly to review the economic environment and establish investment strategies. The ALCO also has broader responsibilities, which are discussed in the “Market Risk” section in MD&A. Investment strategies are reviewed by the ALCO based on the interest rate environment, balance sheet mix, actual and anticipated loan demand, funding opportunities, and the overall interest rate sensitivity of the Company. In general, the goals of the investment portfolio are: (i) to provide sufficient liquid assets to meet unanticipated deposit and loan fluctuations and overall corporate treasury objectives; (ii) to provide eligible securities to secure public funds, trust deposits, and other borrowings; and (iii) to earn an optimal return on funds invested commensurate with meeting regulatory requirements, consistent with the Company’s risk appetite. Truist Bank invests in securities allowable under bank regulations. These securities may include obligations of the U.S. Treasury, U.S. government agencies, GSEs (including MBS), bank eligible obligations of any state or political subdivision, structured notes, bank eligible corporate obligations (including corporate debentures), commercial paper, negotiable CDs, bankers’ acceptances, mutual funds, and limited types of equity securities. Table 11: Composition of Securities Portfolio (Dollars in millions) Dec 31, 2025 Dec 31, 2024 AFS securities (at fair value): U.S. Treasury $ 12,792  $ 14,411 GSE 460  403 Agency MBS – residential 48,226  49,959 Agency MBS – commercial 3,200  2,293 States and political subdivisions 350  382 Other 14  16 Total AFS securities 65,042  67,464 HTM securities (at amortized cost): Agency MBS – residential 47,186  50,640 Total securities $ 112,228  $ 118,104 The securities portfolio totaled $112.2 billion at December 31, 2025, compared to $118.1 billion at December 31, 2024. U.S. Treasury, GSE, and agency MBS represented 99.7% of the total securities portfolio as of December 31, 2025 and December 31, 2024. The majority of the portfolio is agency MBS. • The decrease in 2025 was driven by paydowns and maturities of $20.2 billion and sales of $2.7 billion, partially offset by purchases of $14.5 billion as well as an increase in the fair value of AFS securities. • As of December 31, 2025, and December 31, 2024, 41% of the investment securities portfolio was classified as held-to-maturity at amortized cost, excluding portfolio-level basis adjustments associated with certain AFS securities. • As of December 31, 2025, approximately 3.7% of the securities portfolio was variable rate, excluding the impact of swaps, compared to 3.0% as of December 31, 2024. • The effective duration of the AFS securities portfolio was 4.4 years at December 31, 2025, and 5.0 years at December 31, 2024, excluding the impact of swaps, or 2.9 years at December 31, 2025 and 3.3 years at December 31, 2024, including the impact of swaps. The effective duration of the HTM securities portfolio was 7.5 years at December 31, 2025, and 7.0 years at December 31, 2024. 58 Truist Financial Corporation The following table presents the securities portfolio by major category of security holdings with ranges of maturities and average yields: Table 12: Securities Yields by Major Category and Maturity December 31, 2025 (Dollars in millions) AFS HTM Fair Value Effective Yield (1) Amortized Cost Effective Yield (1) U.S. Treasury: Within one year $ 4,752  4.41  % $ —  —  % One to five years 7,091  4.27  —  — Five to ten years 228  3.61  —  — After ten years 721  4.64  —  — Total 12,792  4.33  —  — GSE: Five to ten years 3  2.78  —  — After ten years 457  4.04  —  — Total 460  4.03  —  — Agency MBS – residential: (2) Five to ten years 39  5.26  —  — After ten years 48,187  3.88  47,186  1.79 Total 48,226  3.88  47,186  1.79 Agency MBS – commercial: (2) One to five years 538  4.31  —  — Five to ten years 421  4.36  —  — After ten years 2,241  2.05  —  — Total 3,200  2.73  —  — States and political subdivisions: Within one year 2  4.80  —  — One to five years 83  6.87  —  — Five to ten years 173  6.46  —  — After ten years 92  5.17  —  — Total 350  6.21  —  — Other: Within one year 7  2.87  —  — Five to ten years 7  5.84  —  — Total 14  4.31  —  — Total securities $ 65,042  3.93  $ 47,186  1.79 (1) Yields represent interest computed using the effective interest method on the amortized cost of securities inclusive of amortization of premiums or accretion of discounts, and excluding the impact of hedging. Weighted yield is represented on a TE basis with the exception of obligations of state and political subdivisions which are presented on a tax-effected basis. (2) For purposes of maturity, MBS, which are not due at a single maturity date, have been included in maturity groupings based on the contractual maturity. The expected life of MBS will differ from contractual maturities because borrowers may have the right to call or prepay the underlying mortgage loans with or without call or prepayment penalties. Truist Financial Corporation 59 Lending Activities Truist strives to meet the credit needs of its clients while pursuing a balanced strategy of loan profitability, loan growth, and loan quality. Management believes that this purpose can best be accomplished by building strong client relationships over time and developing in-depth local market knowledge. The Company employs underwriting criteria governing the degree of risk assumed and the diversity of the loan portfolio in terms of type, industry, and geographical concentration. Truist aims to lend to a diverse client base that is managed to be geographically dispersed with the goal of mitigating concentration risk arising from local and regional economic downturns. The following discussion provides additional information on the Company’s loan and lease portfolios. Refer to the “Risk Management” section in MD&A for a discussion of the credit risk management policies used to manage the portfolios. Commercial Loan and Lease Portfolio Commercial loans and leases represent the largest category of the Company’s loan and lease portfolio. Commercial Banking and Small Business Banking generally target small-to-middle market businesses with annual sales between $2 million and $500 million, while Investment Banking and Capital Markets provides lending solutions to large corporate clients. The commercial loan and lease portfolio consists of lending to public and private business clients and includes commercial and industrial, owner-occupied, equipment leasing and financing, CRE, government and institutional financing, premium financing, and dealer floor plan financing. In accordance with the Company’s lending policy, each commercial loan undergoes a detailed underwriting process. Commercial loans are typically priced with an interest rate tied to market indices, such as the prime rate or SOFR and are individually monitored and reviewed for deterioration in the ability of the client to repay the loan. The majority of Truist’s commercial loans are secured by real estate, business equipment, inventories, and other types of collateral. Residential Mortgage Loan Portfolio Truist primarily originates conforming mortgage loans, loans under FHA, U.S. Department of Veterans Affairs, or U.S. Department of Agriculture programs, and higher quality jumbo and construction-to-permanent loans for one- to four-family residential properties. Conforming loans are loans that are underwritten in accordance with the underwriting standards set forth by FNMA and FHLMC. They are generally collateralized by one-to-four-family residential real estate, typically have loan-to-collateral value ratios of 80% or less at origination, or have mortgage insurance as required by investors and are made to borrowers that meet Truist’s credit standards. Risks associated with mortgage lending include interest rate risk, which is mitigated through the sale of a substantial portion of conforming fixed-rate loans in the secondary mortgage market and an effective MSR hedging process. Credit risk is managed through underwriting procedures and mortgage insurance. The right to service the loans and receive servicing income is generally retained when conforming loans are sold. Management believes that the retention of mortgage servicing diversifies income while enabling Truist to build long-term client relationships and offer high-quality client service. Truist also purchases residential mortgage loans from correspondent originators. The loans purchased from third-party originators are subject to substantially the same underwriting and risk-management criteria as loans originated internally. Home Equity Loan Portfolio The home equity portfolio is composed of loans offered through Truist’s branch network. These include home equity loans and revolving home equity lines of credit secured by first or second liens on residential real estate in Truist’s market areas. Indirect Auto Loan Portfolio The indirect auto portfolio primarily includes secured indirect installment loans to consumers for the purchase of new and used automobiles. The indirect auto portfolio also includes nonprime and near-prime automobile finance. Such loans are originated through approved franchised and independent dealers throughout the Truist market area and nationally through Regional Acceptance Corporation. These loans are homogeneous, and no single loan is individually significant in terms of its size and potential risk of loss. Indirect auto loans are subject to lending policies and procedures and are underwritten with note amounts and credit limits that are consistent with the Company’s risk philosophy. In addition to its normal underwriting due diligence, Truist uses application systems and scoring systems to help underwrite and manage the credit risk in its indirect auto portfolio. 60 Truist Financial Corporation Other Consumer Loan Portfolio The other consumer loan portfolio includes: secured and unsecured loans originated through the Truist branch network marketed to qualifying clients and other creditworthy candidates in Truist’s market areas; LightStream, an online platform which originates fixed-rate, unsecured lending to consumers with strong credit; secured indirect installment loans to consumers for the purchase of new and used boats and recreational vehicles; Sheffield, a small ticket consumer lending division related to the purchase of power sports and outdoor power equipment; other indirect and point-of-sale lending to consumers, including through Service Finance, to finance home improvements, furniture purchases, certain elective health-care services; and unsecured loans originated via third-party partnerships, which are in runoff. These loans are homogeneous, and no single loan is individually significant in terms of its size and potential risk of loss. These loans are originated in accordance with underwriting criteria as determined by Truist. Credit Card Loan Portfolio The credit card portfolio consists of the outstanding balances on credit cards for commercial and consumer clients. Truist markets credit cards to its existing client base and does not solicit cardholders through nationwide programs or other forms of mass marketing. Such balances are generally unsecured and actively managed. Refer to “Note 5. Loans and ACL” for additional information. The following table summarizes the loan portfolio: Table 13: Loans and Leases as of Period End (Dollars in millions) Dec 31, 2025 Dec 31, 2024 Commercial: Commercial and industrial $ 167,808  $ 154,848 CRE 23,720  20,363 Commercial construction 7,783  8,520 Consumer: Residential mortgage 56,807  55,599 Home equity 9,719  9,642 Indirect auto 25,659  23,089 Other consumer 32,181  29,395 Credit card 4,918  4,927 Total loans and leases HFI 328,595  306,383 LHFS 1,883  1,388 Total loans and leases $ 330,478  $ 307,771 Loans and leases HFI were $328.6 billion at December 31, 2025, up $22.2 billion compared to 2024. Commercial loans increased $15.6 billion during 2025 primarily due to an increase of $13.0 billion in the commercial and industrial portfolio and $3.4 billion in the CRE portfolio due to higher production. Consumer loans and credit cards increased $6.6 billion during 2025 primarily due to a $2.8 billion increase in other consumer portfolio driven by growth of higher-return point-of-sale lending or online portfolios (Service Finance and LightStream), a $2.6 billion increase in indirect auto portfolio primarily due to higher production, and a $1.2 billion increase in residential mortgage portfolio due to additional purchases and correspondent production. Truist Financial Corporation 61 The following table presents a summary of the loans and leases by scheduled repayment period and interest rate terms. Determinations of maturities are based on scheduled repayments, except when rollovers or extensions are included for purposes of measuring the ACL. Truist’s credit policy typically does not permit automatic renewal of loans. At the scheduled maturity date (including balloon payment date), the client generally must request a new loan to replace the matured loan and execute either a new note or note modification with rate, terms, and conditions negotiated at that time. Table 14: Loan Maturities December 31, 2025 (Dollars in millions) 1 Year or Less 1 to 5 Years 5 to 15 Years After 15 Years Total Fixed rate: Commercial: Commercial and industrial $ 10,558  $ 13,331  $ 9,153  $ 2,146  $ 35,188 CRE 556  1,646  188  7  2,397 Commercial construction 13  34  21  34  102 Total commercial 11,127  15,011  9,362  2,187  37,687 Consumer: Residential mortgage 1,527  6,204  17,327  22,924  47,982 Home equity 282  880  1,412  337  2,911 Indirect auto 5,806  17,630  2,223  —  25,659 Other consumer 6,058  15,198  7,306  891  29,453 Total consumer 13,673  39,912  28,268  24,152  106,005 Credit card 251  —  —  —  251 Total fixed rate 25,051  54,923  37,630  26,339  143,943 Variable rate: Commercial: Commercial and industrial 39,774  82,733  8,161  1,952  132,620 CRE 4,812  15,869  633  9  21,323 Commercial construction 3,186  4,488  7  —  7,681 Total commercial 47,772  103,090  8,801  1,961  161,624 Consumer: Residential mortgage 206  920  2,835  4,864  8,825 Home equity 640  2,129  4,026  13  6,808 Other consumer 1,183  1,267  276  2  2,728 Total consumer 2,029  4,316  7,137  4,879  18,361 Credit card 4,667  —  —  —  4,667 Total variable rate 54,468  107,406  15,938  6,840  184,652 Total loans and leases HFI $ 79,519  $ 162,329  $ 53,568  $ 33,179  $ 328,595 Certain residential mortgage loans have an initial period where the borrower is only required to pay the periodic interest. After the interest-only period, the loan will require the payment of both interest and principal over the remaining term. The outstanding balances of variable rate residential mortgage loans in the interest-only phase were approximately $714 million and $647 million at December 31, 2025 and December 31, 2024, respectively. 62 Truist Financial Corporation The following table presents the composition of average loans and leases: Table 15: Average Loans and Leases Three Months Ended (Dollars in millions) Dec 31, 2025 Sep 30, 2025 Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Commercial: Commercial and industrial $ 163,990  $ 162,207  $ 158,491  $ 155,214  $ 153,209 CRE 23,205  21,171  19,687  19,832  20,504 Commercial construction 8,015  8,258  8,613  8,734  8,261 Consumer: Residential mortgage 57,100  57,676  56,789  55,658  54,390 Home equity 9,679  9,588  9,586  9,569  9,675 Indirect auto 25,639  24,964  24,158  23,248  22,790 Other consumer 32,181  31,714  30,387  29,291  29,355 Credit card 4,956  4,915  4,890  4,849  4,926 Total average loans and leases HFI $ 324,765  $ 320,493  $ 312,601  $ 306,395  $ 303,110 Average loans and leases HFI were $324.8 billion for fourth quarter of 2025, an increase of $4.3 billion, or 1.3%, compared to the third quarter of 2025. • Average commercial loans increased 1.9% due to an increase in the commercial and industrial and CRE portfolios. • Average consumer loans increased 0.5% due to growth in the indirect auto and other consumer portfolios, partially offset by a decline in the residential mortgage portfolio. Truist Financial Corporation 63 Asset Quality The following tables summarize asset quality information: Table 16: Asset Quality (Dollars in millions) Dec 31, 2025 Dec 31, 2024 NPAs: NPLs: Commercial and industrial $ 839  $ 521 CRE 47  298 Commercial construction 41  3 Residential mortgage 213  166 Home equity 99  116 Indirect auto 267  259 Other consumer 71  66 Total NPLs HFI 1,577  1,429 Loans held for sale —  — Total nonperforming loans and leases 1,577  1,429 Foreclosed real estate 3  3 Other foreclosed property 53  45 Total nonperforming assets $ 1,633  $ 1,477 Loans 90 days or more past due and still accruing: Commercial and industrial $ 3  $ 19 CRE —  1 Lease financing Residential mortgage – government guaranteed 532  430 Residential mortgage – nonguaranteed 38  51 Home equity 7  9 Other consumer 28  23 Credit card 76  54 Total loans 90 days or more past due and still accruing $ 684  $ 587 Loans 30-89 days past due and still accruing: Commercial and industrial $ 127  $ 168 CRE 25  60 Commercial construction 36  3 Residential mortgage – government guaranteed 329  318 Residential mortgage – nonguaranteed 357  401 Home equity 69  60 Indirect auto 679  622 Other consumer 281  236 Credit card 77  81 Total loans 30-89 days past due and still accruing $ 1,980  $ 1,949 Nonperforming assets totaled $1.6 billion at December 31, 2025, up $156 million compared to December 31, 2024 due to an increase in the commercial and industrial and residential mortgage portfolios, partially offset by a decline in the CRE portfolio. Nonperforming loans and leases represented 0.48% of total loans and leases HFI, up one basis point compared to December 31, 2024. Effective January 1, 2026, the Company has enhanced its nonaccrual criteria for certain indirect auto loans to prospectively include accounts in which cumulative payment extensions are at or above 12 months. Management expects this change to accelerate the timing of nonaccrual recognition in future periods for such loans, but does not expect a material impact on earnings or cash flows. Loans 90 days or more past due and still accruing totaled $684 million at December 31, 2025, up $97 million compared to the prior year. Excluding government guaranteed loans, the ratio of loans 90 days or more past due and still accruing as a percentage of loans and leases HFI was 0.05% at December 31, 2025, flat compared to December 31, 2024. Loans 30-89 days past due and still accruing totaled $2.0 billion at December 31, 2025, up $31 million compared to the prior year due to increases in the indirect auto, other consumer, and commercial construction portfolios, partially offset by declines in the commercial and industrial, CRE, and residential mortgage portfolios. The ratio of loans 30-89 days past due and still accruing as a percentage of loans and leases HFI was 0.60% at December 31, 2025, down four basis points compared to the prior year. 64 Truist Financial Corporation Problem loans include NPLs and loans that are 90 days or more past due and still accruing as disclosed in Table 16. In addition, for the commercial portfolio segment, loans that are rated special mention or substandard performing are closely monitored by management as potential problem loans. Refer to “Note 5. Loans and ACL” for the amortized cost basis of loans by origination year and credit quality indicator as well as additional disclosures related to NPLs. Table 17: Asset Quality Ratios Dec 31, 2025 Dec 31, 2024 Loans 30-89 days past due and still accruing as a percentage of loans and leases 0.60  % 0.64  % Loans 90 days or more past due and still accruing as a percentage of loans and leases 0.21  0.19 NPLs as a percentage of loans and leases 0.48  0.47 NPLs as a percentage of total loans and leases (1) 0.48  0.46 NPAs as a percentage of: Total assets (1) 0.30  0.28 Loans and leases plus foreclosed property 0.50  0.48 ALLL as a percentage of loans and leases 1.53  1.59 Ratio of ALLL to nonperforming loans and leases 3.2x 3.4x Loans 90 days or more past due and still accruing as a percentage of loans and leases, excluding government guaranteed (2) 0.05  % 0.05  % (1) Includes LHFS. (2) This asset quality ratio has been adjusted to remove the impact of government guaranteed loans. Management believes the inclusion of such assets in this asset quality ratio results in distortion of this ratio because collection of principal and interest on government guaranteed loans is reasonably assured. Table 18: Asset Quality Ratios Year Ended December 31, 2025 2024 2023 Net charge-offs as a percentage of average loans and leases: Commercial: Commercial and industrial 0.23  % 0.20  % 0.20  % CRE 0.62  1.31  0.71 Commercial construction (0.03) (0.03) 0.04 Consumer: Residential mortgage —  (0.01) 0.01 Home equity (0.06) (0.07) (0.12) Indirect auto 2.00  2.11  1.66 Other consumer 1.66  1.73  1.40 Student —  —  4.39 Credit card 4.45  5.26  3.85 Total 0.54  0.59  0.50 Ratio of ALLL to net charge-offs 3.0x 2.7x 3.0x The following table presents activity related to NPAs: Table 19: Rollforward of NPAs (Dollars in millions) 2025 2024 Balance, January 1 $ 1,477  $ 1,488 New NPAs 3,298  3,331 Advances and principal increases 390  454 Disposals of foreclosed assets (1) (634) (616) Disposals of NPLs (2) (316) (223) Charge-offs and losses (1,208) (1,313) Payments (1,109) (1,308) Transfers to performing status (265) (309) Other, net —  (27) Ending balance, December 31 $ 1,633  $ 1,477 (1) Includes charge-offs and losses recorded upon sale of $285 million and $260 million for the years ended December 31, 2025 and 2024, respectively. (2) Includes gains, net of charge-offs and losses recorded upon sale, of $2 million and $14 million for the years ended December 31, 2025 and 2024, respectively. Truist Financial Corporation 65 Commercial Credit Concentrations Truist has established the following general practices to manage commercial credit risk: • limiting the amount of credit that Truist may extend to a borrower; • establishing a process for credit approval accountability; • initial underwriting and analysis of borrower, transaction, market, and collateral risks; • evaluating the diversity of the loan portfolio in terms of type, industry, and geographical concentration; • ongoing servicing and monitoring of individual loans and lending relationships; • continuous monitoring of the portfolio, market dynamics, and the economy; and • periodically reevaluating the Company’s strategy and overall exposure as economic, market, and other relevant conditions change. Truist monitors various segments of its credit portfolios to assess potential concentration risks. Management is involved in the credit approval and review process, and risk acceptance criteria are adjusted as needed to reflect the Company’s risk appetite. Consistent with established risk management objectives, the Company utilizes various risk mitigation techniques, including collecting collateral and security interests, obtaining guarantees, and, to a limited extent, through the purchase of credit loss protection via third-party insurance or use of credit derivatives such as credit default swaps. In the commercial portfolio, risk concentrations are evaluated regularly on both an aggregate portfolio level and on an individual client basis. The Company manages its commercial exposure through portfolio targets, limits, and transactional risk acceptance criteria as well as other techniques, including loan syndications/participations, loan sales, collateral, structure, covenants, and other risk reduction techniques. The following tables provide industry distribution by major types of commercial credit exposure and the geographical distribution of commercial exposures. Industry classification for commercial and industrial loans is based on the North American Industry Classification System. CRE loans are classified based on type of property. For the geographic disclosures, amounts are generally assigned to a state based on the physical billing address of the client or physical property address. 66 Truist Financial Corporation Table 20: Commercial and Industrial Portfolio Industry and Geography December 31, 2025 December 31, 2024 (Dollars in millions) LHFI % of Total NPL LHFI % of Total NPL Industry: Finance and insurance $ 30,464  18.2  % $ 2  $ 24,271  15.7  % $ 28 Manufacturing 13,418  8.0  91  12,298  7.9  62 Real estate and rental and leasing 11,993  7.1  1  11,354  7.3  3 Retail trade 11,940  7.1  24  12,488  8.1  66 Health care and social assistance 11,779  7.0  67  12,154  7.8  129 Public administration 8,658  5.2  2  8,860  5.7  — Wholesale trade 7,655  4.6  212  7,428  4.8  45 Information 7,523  4.5  158  5,235  3.4  66 Utilities 6,582  3.9  —  4,096  2.6  — Professional, scientific, and technical services 5,043  3.0  5  4,125  2.7  8 Educational services 4,868  2.9  —  4,478  2.9  — Transportation and warehousing 4,497  2.7  22  4,634  3.0  34 Arts, entertainment, and recreation 4,182  2.5  1  3,599  2.3  6 Construction 3,350  2.0  4  2,607  1.7  10 Administrative and support and waste management and remediation services 3,108  1.9  36  3,022  2.0  — Accommodation and food services 2,990  1.8  24  2,935  1.9  9 Other (1) 11,903  7.0  115  12,211  7.9  23 Subtotal 149,953  89.4  764  135,795  87.7  489 Business owner occupied 17,855  10.6  75  19,053  12.3  32 Total commercial and industrial $ 167,808  100.0  % $ 839  $ 154,848  100.0  % $ 521 Geography: Florida $ 18,532  11.0  % $ 30  $ 18,258  11.8  % $ 172 Texas 17,001  10.1  157  14,728  9.5  47 New York 12,719  7.6  70  11,379  7.3  50 California 12,460  7.4  34  8,115  5.2  8 North Carolina 12,154  7.2  11  12,167  7.9  16 Georgia 11,452  6.8  149  11,240  7.3  10 Virginia 9,061  5.4  3  9,343  6.0  7 Maryland 7,057  4.2  4  6,781  4.4  3 Pennsylvania 6,890  4.1  131  6,466  4.2  9 Tennessee 5,873  3.5  42  5,729  3.7  51 New Jersey 4,743  2.8  5  3,947  2.5  5 South Carolina 4,213  2.5  4  4,151  2.7  23 Illinois 3,970  2.4  12  3,639  2.4  20 Ohio 3,624  2.2  —  3,482  2.2  1 Other (2) 38,059  22.8  187  35,423  22.9  99 Total commercial and industrial $ 167,808  100.0  % $ 839  $ 154,848  100.0  % $ 521 (1) Represents other remaining industries that are deemed to be individually insignificant. (2) Represents other remaining states, U.S. territories, and non-U.S. loans that are deemed to be individually insignificant. The Finance and insurance industry includes various types of nonbank financial institutions, including asset securitization, securities-based lending, and certain REITs, which together comprise approximately 59% of Truist’s funded loans within that industry category. Asset securitization facilities are structured to provide funding to clients based on advance rates that are applied to pools of eligible collateral that generally result in over collateralization of the funded exposures. Securities-based lending arrangements are collateralized by marketable securities that are maintained in a restricted account and monitored by Truist on a daily basis to help determine whether the value of the underlying securities collateral complies with the terms of the margin agreement established with the origination of the loan. Truist Financial Corporation 67 Table 21: CRE Portfolio Property Type and Geography December 31, 2025 December 31, 2024 (Dollars in millions) LHFI % of Total NPL LHFI % of Total NPL Industry: Multifamily $ 8,055  34.0  % $ 4  $ 5,508  27.0  % $ 27 Industrial 5,521  23.3  —  4,303  21.1  3 Retail 4,244  17.9  5  3,530  17.3  33 Office 2,435  10.3  36  3,459  17.0  228 Hotel 1,558  6.6  —  1,891  9.3  — Other (1) 1,907  7.9  2  1,672  8.3  7 Total CRE $ 23,720  100.0  % $ 47  $ 20,363  100.0  % $ 298 Geography: Florida $ 2,668  11.2  % $ 2  $ 2,594  12.7  % $ 26 Georgia 2,586  10.9  1  2,010  9.9  80 Texas 2,411  10.2  1  1,599  7.9  6 North Carolina 2,324  9.8  1  2,212  10.9  10 New York 2,323  9.8  6  1,491  7.3  2 California 1,628  6.9  —  1,683  8.3  — Pennsylvania 1,566  6.6  —  1,218  6.0  1 Illinois 1,178  5.0  13  624  3.1  — New Jersey 1,118  4.7  3  439  2.2  35 Virginia 1,034  4.4  —  1,108  5.4  3 Maryland 883  3.7  2  713  3.5  8 Other (2) 4,001  16.8  18  4,672  22.8  127 Total CRE $ 23,720  100.0  % $ 47  $ 20,363  100.0  % $ 298 (1) Represents other remaining property types that are deemed to be individually insignificant. (2) Represents other remaining states, U.S. territories, and non-U.S. loans that are deemed to be individually insignificant. Table 22: Commercial Construction Portfolio Property Type and Geography December 31, 2025 December 31, 2024 (Dollars in millions) LHFI % of Total NPL LHFI % of Total NPL Industry: Multifamily $ 3,871  49.7  % $ —  $ 4,918  57.7  % $ — Industrial 1,884  24.2  —  1,680  19.7  — Single family - construction to permanent 1,070  13.7  —  664  7.8  2 Office 392  5.0  40  627  7.4  — Single family - acquisition and development and commercial land 208  2.7  —  187  2.2  1 Other (1) 358  4.7  1  444  5.2  — Total commercial construction $ 7,783  100.0  % $ 41  $ 8,520  100.0  % $ 3 Geography: Florida $ 1,453  18.7  $ —  $ 1,138  13.4  $ — Georgia 1,188  15.3  —  1,294  15.2  — Texas 1,088  14.0  —  1,345  15.8  — North Carolina 748  9.6  —  992  11.6  1 California 431  5.5  —  492  5.8  — Other (2) 2,875  36.9  41  3,259  38.2  2 Total commercial construction $ 7,783  100.0  % $ 41  $ 8,520  100.0  % $ 3 (1) Represents other remaining property types that are deemed to be individually insignificant. (2) Represents other remaining states, U.S. territories, and non-U.S. loans that are deemed to be individually insignificant. Refer to “Note 5. Loans and ACL” for additional information on the commercial portfolios, including loans by origination year and credit quality indicator. 68 Truist Financial Corporation ACL Activity related to the ACL is presented in the following tables: Table 23: Activity in ACL Year Ended December 31, (Dollars in millions) 2025 2024 2023 Balance, beginning of period $ 5,161  $ 5,093  $ 4,649 Provision for credit losses 1,894  1,870  2,109 Charge-offs: Commercial and industrial (461) (395) (390) CRE (147) (316) (166) Commercial construction —  —  (5) Residential mortgage (6) (3) (10) Home equity (10) (9) (10) Indirect auto (591) (591) (531) Other consumer (633) (606) (477) Student —  —  (108) Credit card (260) (296) (223) Total charge-offs (2,108) (2,216) (1,920) Recoveries: Commercial and industrial 98  87  70 CRE 18  34  3 Commercial construction 2  2  3 Residential mortgage 5  6  6 Home equity 16  16  23 Indirect auto 102  120  107 Other consumer 120  110  78 Credit card 42  38  35 Total recoveries 403  413  325 Net charge-offs (1,705) (1,803) (1,595) Other (1) (3) 1  (70) Balance, end of period $ 5,347  $ 5,161  $ 5,093 ACL: ALLL 5,030  4,857  4,798 RUFC 317  304  295 Total ACL $ 5,347  $ 5,161  $ 5,093 (1) 2023 includes the impact from the adoption of the Troubled Debt Restructurings and Vintage Disclosures accounting standard. Net charge-offs during 2025 totaled $1.7 billion, or 0.54% as a percentage of average loans, and were down five basis points compared to the prior year, primarily driven by lower net charge-offs and growth in average loans and leases. Net charge-offs were lower in the CRE and credit card portfolios, partially offset by increases in the commercial and industrial, indirect auto, and other consumer portfolios. The allowance for credit losses was $5.3 billion at December 31, 2025 and includes $5.0 billion for the allowance for loan and lease losses and $317 million for the reserve for unfunded commitments. The ALLL ratio was 1.53% at December 31, 2025, compared to 1.59% at December 31, 2024. Refer to “Note 5. Loans and ACL.” for additional information on the fluctuations in the ALLL. The ALLL covered nonperforming loans and leases held for investment 3.2x at December 31, 2025 compared to 3.4x at December 31, 2024. At December 31, 2025, the ALLL was 3.0x net charge-offs, compared to 2.7x at December 31, 2024. Truist Financial Corporation 69 The following table presents an allocation of the ALLL. The entire amount of the allowance is available to absorb losses occurring in any category of loans and leases. Table 24: Allocation of ALLL by Category December 31, 2025 December 31, 2024 (Dollars in millions) Amount % ALLL in Each Category % Loans in Each Category Amount % ALLL in Each Category % Loans in Each Category Commercial and industrial $ 1,326  26.3  % 51.0  % $ 1,284  26.4  % 50.7  % CRE 476  9.5  7.2  643  13.2  6.6 Commercial construction 246  4.9  2.4  257  5.3  2.8 Residential mortgage 198  3.9  17.3  204  4.2  18.1 Home equity 84  1.7  3.0  89  1.8  3.1 Indirect auto 1,036  20.6  7.8  955  19.7  7.5 Other consumer 1,238  24.6  9.8  994  20.5  9.6 Credit card 426  8.5  1.5  431  8.9  1.6 Total ALLL 5,030  100.0  % 100.0  % 4,857  100.0  % 100.0  % RUFC 317    304 Total ACL $ 5,347    $ 5,161 Truist monitors the performance of its home equity loans and lines secured by second liens similarly to other consumer loans and utilizes assumptions specific to these loans in determining the necessary ALLL. Truist also receives notification when the first lien holder, whether Truist or another financial institution, has initiated foreclosure proceedings against the borrower. When notified that the first lien is in the process of foreclosure, Truist obtains valuations to determine if any additional charge-offs or reserves are warranted. These valuations are updated at least annually thereafter. Truist has limited ability to monitor the delinquency status of the first lien, unless the first lien is held or serviced by Truist. Truist estimates credit losses on second lien loans where the first lien is delinquent based on historical experience; the increased risk of loss on these credits is reflected in the ALLL. Other Assets The components of other assets are presented in the following table: Table 25: Other Assets as of Period End (Dollars in millions) Dec 31, 2025 Dec 31, 2024 Tax credit and other private equity investments $ 9,882  $ 9,303 Bank-owned life insurance 8,515  7,801 Pension assets, net 7,920  7,238 Accrued income 2,028  2,069 Accounts receivable 1,624  1,904 FHLB stock 1,521  965 DTA 1,507  1,945 Leased assets and related assets 1,359  1,352 Derivative assets 1,343  966 Prepaid expenses 1,075  1,061 ROU assets 1,045  1,015 Other 1,151  1,513 Total other assets $ 38,970  $ 37,132 70 Truist Financial Corporation Funding Activities Deposits are the primary source of funds for the Company’s lending and investing activities. Management also uses short-term borrowings, long-term debt, and scheduled payments and maturities from portfolios of loans and investment securities as a supplementary funding source for loan growth and other balance sheet management purposes. FHLB advances, other secured borrowings, Federal funds purchased and other short-term borrowed funds, as well as long-term debt issued through the capital markets, all provide supplemental liquidity sources. Funding activities are monitored and governed through Truist’s overall ALM process under the governance and oversight of the ALCO, which is further discussed in the “Market Risk” section in MD&A. The following section provides a brief description of the various sources of funds. Deposits Deposits are obtained principally from individuals and businesses within Truist’s geographic area and include noninterest-bearing checking accounts, interest-bearing checking accounts, savings accounts, money market deposit accounts, CDs, and IRAs. Deposit account terms vary with respect to the minimum balance required, the time period the funds must remain on deposit, and service charge schedules. Interest rates paid on specific deposit types are determined based on (i) competitor deposit rates, (ii) the anticipated amount and timing of funding needs, (iii) the availability and cost of alternative sources of funding, and (iv) anticipated future economic conditions and interest rates. Deposits are attractive sources of funding because of their stability and relative cost. The following table presents a summary of deposits: Table 26: Deposits as of Period End (Dollars in millions) Dec 31, 2025 Dec 31, 2024 Noninterest-bearing deposits $ 105,092  $ 107,451 Interest checking 117,830  109,042 Money market and savings 139,044  137,307 Time deposits 38,432  36,724 Total deposits $ 400,398  $ 390,524 Deposits totaled $400.4 billion at December 31, 2025, an increase of $9.9 billion, or 2.5%, from December 31, 2024 primarily due to increases in interest checking deposits, money market and savings, and time deposits, partially offset by a decline in noninterest-bearing deposits. Brokered deposits were $29.8 billion at December 31, 2025 compared to $28.1 billion at December 31, 2024. Truist Financial Corporation 71 Approximately 62% of deposits were insured or collateralized at both December 31, 2025 and December 31, 2024. Truist deposit accounts are typically based on long-term relationships that include multiple products and services. The amount of deposits above the FDIC’s insurance limit of $250,000 was $177.6 billion and $170.7 billion as of December 31, 2025 and 2024, respectively, calculated using the same methodology as the Call Report for Truist Bank. The following table summarizes the maturities of time deposit accounts above $250,000: Table 27: Scheduled Maturities of Time Deposits $250,000 and Greater December 31, 2025 (Dollars in millions) Three months or less $ 8,140 Over three through six months 1,832 Over six through twelve months 617 Over twelve months 416 Total $ 11,005 The following table presents average deposits: Table 28: Average Deposits Three Months Ended (Dollars in millions) Dec 31, 2025 Sep 30, 2025 Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Noninterest-bearing deposits $ 105,552  $ 105,751  $ 106,686  $ 105,895  $ 107,968 Interest checking 112,313  109,244  116,193  109,208  107,075 Money market and savings 138,114  136,515  135,607  136,897  138,242 Time deposits 40,031  45,090  41,997  40,204  36,757 Total average deposits $ 396,010  $ 396,600  $ 400,483  $ 392,204  $ 390,042 Average deposits for the fourth quarter of 2025 were $396.0 billion, flat compared to the third quarter of 2025. Average noninterest-bearing deposits decreased 0.2% compared to the prior quarter and represented 26.7% of total deposits for both the fourth and third quarters of 2025. Average interest checking deposits increased 2.8%. Average money market and savings accounts increased 1.2%. Average time deposits decreased 11.2%. 72 Truist Financial Corporation Borrowings The following table summarizes certain information for the past three years with respect to short-term borrowings excluding trading liabilities, hedges, and collateral in excess of derivative exposure: Table 29: Short-Term Borrowings As Of / For The Year Ended December 31, (Dollars in millions) 2025 2024 2023 Securities sold under agreements to repurchase: Maximum outstanding at any month-end during the year $ 8,425  $ 9,675  $ 4,120 Balance outstanding at end of year 3,103  9,675  2,427 Average outstanding during the year 5,845  2,947  2,472 Average interest rate during the year 4.36  % 5.13  % 5.18  % Average interest rate at end of year 3.84  4.42  5.39 Federal funds purchased and short-term borrowed funds: Maximum outstanding at any month-end during the year $ 29,332  $ 28,218  $ 26,453 Balance outstanding at end of year 24,736  19,530  22,401 Average outstanding during the year 22,273  21,552  22,007 Average interest rate during the year 4.36  % 5.39  % 5.26  % Average interest rate at end of year 3.47  4.04  5.15 At December 31, 2025, short-term borrowings totaled $27.8 billion, a decrease of $1.4 billion compared to December 31, 2024. Average short-term borrowings were $28.1 billion and $24.5 billion for the years ended December 31, 2025 and 2024, respectively. Long-term debt provides funding and, to a lesser extent, regulatory capital, and primarily consists of senior and subordinated notes issued by the Parent Company and Truist Bank. Long-term debt totaled $42.0 billion at December 31, 2025, an increase of $7.0 billion compared to December 31, 2024. During the year ended December 31, 2025, the Company had: • Issuances of $7.1 billion of primarily fixed-to-floating rate senior notes with a weighted average interest rate of 4.68% due between May 20, 2027 and October 23, 2036 and $500 million of floating rate senior notes due July 24, 2028. • Net issuances of $7.1 billion floating rate FHLB advances. • Maturities and redemptions of $6.7 billion of senior notes and $1.3 billion of subordinated notes. In January 2026, the Parent Company issued $1.3 billion principal amount of fixed-to-floating rate senior notes with an interest rate of 4.60% due January 27, 2032. Additionally, Truist Bank issued $1.3 billion principal amount of fixed-to-floating rate senior notes with an interest rate of 4.14% due January 27, 2029 and $350 million principal amount of floating rate senior notes due January 27, 2029. In February 2026, the Parent Company announced that it will redeem $1.3 billion principal amount of senior notes due on March 2, 2027 on the redemption date of March 2, 2026. Refer to “Note 11. Borrowings” for additional information on short-term borrowings and long-term debt. Shareholders’ Equity Total shareholders’ equity was $65.2 billion at December 31, 2025, an increase of $1.5 billion from December 31, 2024. This increase includes $5.3 billion in net income and $2.4 billion in OCI, partially offset by $3.0 billion in common and preferred dividends, $2.5 billion in common share repurchases, and $1.0 billion for the redemption of series P preferred stock. Truist’s book value per common share at December 31, 2025 was $47.74, compared to $43.90 at December 31, 2024. Truist’s TBVPS was $33.48 at December 31, 2025, up 12% compared to December 31, 2024. Truist Financial Corporation 73 Risk Management Truist seeks to maintain a comprehensive risk management framework supported by people, processes, and systems designed to identify, assess, measure, monitor, control, mitigate, govern, and report on risks arising from exposures and business activities. Truist has developed a risk taxonomy to provide for the identification, measurement, and reporting of primary risk types and classification of risk elements at Truist. Primary risk types are defined across eight categories including credit, market, liquidity, strategic, operational, technology, compliance, and financial crimes. Truist has established an enterprise risk management framework to enable the execution of strategic goals and objectives in alignment with its risk appetite. Truist is committed to fostering a culture that prioritizes and supports the identification and escalation of risks across the organization. All teammates are responsible for upholding the Company’s purpose, mission, and values, and are encouraged to speak up if there is any activity or behavior that is inconsistent with the Company’s culture. The Truist Code of Ethics influences the Company’s decision making and informs teammates on how to act in the absence of specific guidance. Truist seeks an appropriate return for the risk taken in its business operations. Risk-taking activities must be evaluated and prioritized to identify those that are within the Company’s risk appetite and present attractive risk-adjusted returns, while preserving asset value and capital. Truist’s compensation plans are designed to consider teammates’ adherence to and successful implementation of Truist’s risk values and associated policies and procedures. The Company’s compensation structure is designed to support its core values and sound risk management practices and to promote judicious risk-taking behavior. Truist’s risk appetite is defined as the level of risk exposure Truist is willing to assume to realize its purpose, mission, and values, as well as to achieve its strategic objectives, deliver shareholder returns, and maintain the safety and soundness of Truist. The Board oversees the development of, and reviews, approves, and periodically monitors, the Company’s strategy and risk appetite with a long-term perspective on risks and rewards that is consistent with the capacity of Truist’s risk-management framework. The BRC assists the Board in overseeing the stature and performance of the RMO and the Company’s risk management framework and policies, including quantitative and qualitative statements of the Company’s risk appetite and risk limits, thresholds, and other parameters designed to supplement them. The BRC appoints the CRO to lead the RMO and oversee the identification, assessment, measurement, monitoring, mitigating, and reporting of risks to Truist. The CRO reports functionally to the BRC and administratively to the CEO and has direct access to the Board to escalate risks (current or emerging) and report on the performance of risk management activities across the enterprise. Truist’s RMO provides independent oversight and guidance for risk-taking across the enterprise. In keeping with the belief that consistent values drive long-term behaviors, Truist’s RMO has established four key behaviors all teammates are expected to practice daily, regardless of role: • Awareness: demonstrate an appropriate understanding of enterprise and business unit risks and the controls required to effectively mitigate those risks. Complete required risk and compliance training within deadlines. Comply with applicable risk-related Truist policies. • Identification: proactively recognize business concerns, issues, risks, or emerging risks as they arise in day-to-day activities. • Escalation: speak up, report, and elevate concerns, issues, and risks as soon as possible through the appropriate reporting channel. Based on role, escalate and open issues timely. • Mitigation: consistently execute applicable risk-related procedures and processes as designed for day-to-day activities. Maintain and execute effective controls to manage risk within the Company’s risk appetite. As applicable, complete successful and timely remediation of assigned issues. The risk management framework is supported by a three-lines-of-defense structure with unique roles and responsibilities for executing risk management activities, maintaining independent oversight, and providing independent assurance. The first line of defense comprises the business units that originate the risks and are responsible for managing them through risk management activities. The second line of defense is the independent risk management oversight and challenge function provided by the RMO. The third line of defense is the independent assurance function provided by Truist Audit Services. Centralized first-line risk execution and management has been standardized across the Company in partnership with the business units and enterprise functions. Dedicated first line of defense risk partners provide risk advice and oversight, issues management, testing, reporting, and business continuity expertise. First line of defense coordinates closely with the RMO in executing these responsibilities. 74 Truist Financial Corporation The second line of defense is led by the CRO and is responsible for providing independent risk management, oversight, and effective challenge of the first line of defense. The key responsibilities of the second line of defense include (i) establishing policies and procedures to guide and oversee the execution of risk management framework requirements across Truist, (ii) overseeing first line of defense identification and assessment of current and emerging risks, as well as the effectiveness of governance, processes, and controls to mitigate risks, (iii) controlling the selection of key risk indicators and the establishment of risk limits to measure and monitor risk exposures relative to the Company’s established risk appetite, (iv) independently identifying and escalating issues, including opportunities to strengthen the internal control environment, and (v) acting in a consultative role to assist the first line of defense with identifying, monitoring, and mitigating risks. As the third line of defense, Truist Audit Services provides independent and objective assurance for Truist. Truist Audit Services independently evaluates the adequacy and effectiveness of Truist's risk management, governance, and oversight, consistent with regulatory expectations and Truist's size, complexity, and risk profile. Truist Audit Services is led by the Chief Audit Officer, who reports functionally to the Audit Committee and administratively to the CEO. Truist’s Committee and Risk Reporting Governance Program is designed to provide comprehensive Board and management risk oversight, maintaining a committee governance structure that supports alignment and execution of the risk management framework. The committee structure provides a mechanism to allow for efficient aggregation and escalation of risk information from the business units up to management and ultimately the Board. Truist’s committee structure is broken down into three levels of committees: • Level I committees: Board committees established by the Board to assist in its oversight of the Company. Level I committees are subject to governance directly by the Board, Board committee charters, Truist Bylaws, and Corporate Governance Guidelines. • Level II committees: Management committees appointed by a Level I committee. Level II committees report to the appointing Level I committee. The appointing Level I committee conducts an annual review of the Level II committee and its charter. • Level III committees: Management committees appointed by a Level I or II committee. Level III committees report to the appointing Level I or II committee. The appointing Level I or II committee conducts an annual review of the Level III committee and its charter. This committee structure includes management committees that are responsible for providing independent risk oversight of each of Truist’s primary risk types and comprehensive coverage of Truist’s strategy, risk-taking and execution activities. Examples of such committees include the ERC and Management Compensation Oversight Committee. The BRC authorized the ERC to provide broad strategic oversight of all risk types and establish an integrated view of risks across Truist at the enterprise level. The ERC is responsible for maintaining a risk management framework and monitoring its adoption and execution across the enterprise. The ERC is chaired by the CRO, and its membership includes the CEO, CFO, Chief Audit Officer, and other designated members of Truist management. Under our risk management taxonomy, the primary risk types consist of credit, market, liquidity, strategic, operational, technology, compliance, and financial crimes. Truist also uses models as a key component of its risk management activities, which are overseen by the MRO. The following is a discussion of each primary risk type. Credit Risk Credit risk is the risk to current or anticipated earnings or capital arising when a borrower, obligor, issuer, or counterparty may not meet its financial obligations. Credit risk is inherent in the financial services business and is primarily incurred through lending activities in the Company’s WB and CSBB operating segments. Several products expose the Company to credit risk, including loans and leases, lending commitments, derivatives, trading assets, and investment securities. Changes in credit quality can have a significant impact on the Company’s earnings and capital position. The Level II ECRC, established by the BRC, oversees credit risk governance. The ECRC is responsible for maintaining an effective credit risk and portfolio management program. The ECRC utilizes Level III committees to oversee Truist’s WB and CSBB loan portfolios. The BRC reviews and approves the Level I Enterprise Credit Risk Management Policy on an annual basis. That policy authorizes the ECRC and its Level III committees to review, monitor, and approve Truist’s credit policies and key risk indicators, including limits. Truist Financial Corporation 75 Truist manages credit risk in a manner consistent with Truist’s strategy and risk appetite by: • establishing credit policies and underwriting requirements that are aligned with our strategy and risk appetite and periodically reevaluated per credit, market, economic and other relevant factors; • setting portfolio asset quality, concentration and underwriting exception limits and transactional thresholds, as appropriate, in alignment with our risk appetite; • monitoring current and emerging credit risks, early warning indicators and portfolio performance; • monitoring criticized exposures and delinquent loans; and • estimating credit losses and supporting appropriate levels of reserves and credit risk-based capital management. Underwriting Approach The loan portfolio is a primary source of profitability and risk. Proper loan underwriting is critical to Truist’s long-term financial success. The most significant underwriting criteria used to evaluate new loans and loan renewals are: • Cash flow and debt service coverage - cash flow adequacy is a necessary condition of creditworthiness, meaning that loans must either be clearly supported by a borrower’s cash flow or, if not, must be justified by secondary repayment sources. • Secondary sources of repayment - alternative repayment funds are a significant risk-mitigating factor as long as they are liquid, can be easily accessed, and provide adequate resources to supplement the primary cash flow source. • Value of any underlying collateral - loans are generally secured by the asset being financed. Because an analysis of the primary and secondary sources of repayment is the most important factor, collateral, unless it is liquid, does not justify loans that cannot be serviced by the borrower’s primary and secondary cash flows. • Overall creditworthiness of the client, taking into account the client’s relationships, both past and current, with Truist and other lenders - Truist’s success depends on building lasting and mutually beneficial relationships with clients, which involves assessing their financial position and background. • Level of equity invested in the transaction - in general, borrowers are required to contribute or invest a portion of their own funds prior to any loan advances. Refer to the “Lending Activities” section in MD&A for a discussion of each loan and lease portfolio. Market Risk Market risk is the risk to current or anticipated earnings, capital, or economic value arising from changes in interest rates, spreads, or prices of financial instruments, and the corresponding impact on the composition of the balance sheet or trading and fair value positions. Market risk results from changes in the level, volatility, or correlations among financial market risk factors or prices, including interest rates, credit spreads, foreign exchange rates, equity, and commodity prices. Truist’s most significant market risk exposure is to interest rate risk in its balance sheet. However, market risk also results from underlying product liquidity risk, price risk, and volatility risk of instruments held in Truist’s business units. Interest rate risk results from: • differences between the timing of rate changes and the timing of cash flows associated with assets and liabilities (re-pricing risk); • changing rate relationships among different yield curves affecting bank activities (basis risk); • changing rate relationships across the spectrum of maturities (yield curve risk); and • interest-related options inherently embedded in bank products (options risk). The primary objectives of market risk management are to minimize adverse effects from changes in market risk factors on net interest income, net income, and capital, and to offset the risk of price changes for certain assets and liabilities recorded at fair value. At Truist, market risk management also includes the enterprise-wide IPV function. Market Risk - Interest Rate As a financial institution, Truist is exposed to interest rate risk from assets, liabilities, and off-balance sheet positions. Truist primarily monitors this risk through two measurement types, (i) NII at risk and (ii) economic value of equity. Truist manages this interest rate risk with securities, derivatives, and broader asset liability management activities. Truist uses derivatives to hedge interest income variability of floating rate loans and to hedge valuation changes of long-term debt and investment securities. 76 Truist Financial Corporation Corporate Treasury is responsible for the management of Truist’s IRR position as part of an integrated balance sheet management strategy. The TMRO team within the RMO monitors Corporate Treasury’s execution of these responsibilities. The ALCO and the BRC approve the policies governing interest rate management and, along with the ERC, receive periodic updates. IRR measurement is reported monthly through the ALCO. Monthly IRR reporting includes exposure and historical trends relative to risk limit scenarios, impacts to a wide range of rate scenarios, and sensitivity tests of key assumptions. IRR reporting is provided to the BRC quarterly. IRR measurement is influenced by data, assumptions, and models. Due to their high sensitivity to market rates, mortgage (loan and security) prepayments leverage an industry model that results in varying prepayment speeds across rate scenarios. Prepayments for non-mortgage loans leverage a mix of dynamic models (varying results based on market rates) and static prepayment assumptions based on historical experience. Our analysis incorporates dynamic client deposit balance levels, the mix across product types, and deposit rate paid across alternate rate scenarios based on modeled changes in client and bank behavior. The use of dynamic deposit balance models results in rotation to higher cost funding products (e.g., CDs) when market rates increase and to lower cost funding products (e.g., non-maturity deposits) when market rates decrease. The use of dynamic rate paid models results in varying deposit betas based on the timing and conditions within market rate cycles. NII at risk measures the change in NII under alternate interest rate scenarios relative to Truist’s baseline scenario, which incorporates Truist’s current balance sheet and off-balance sheet hedges as well as expectations for new business over the forecast horizon. Truist’s baseline scenario relies on assumptions including expectations of the economy and interest rates – which are influenced by market conditions, new business volume, pricing, and client behavior. In measuring NII at risk, Truist assumes that changes in key factors, such as prepayments and deposit pricing (betas), largely move in line with those Truist has experienced in prior rate cycles. However, future behavior of key factors may vary from Truist’s assumptions. NII at risk measurement assumes, when applicable, that U.S. interest rates floor at zero and Truist does not take any balance sheet or hedging actions in response to the rate scenarios. Truist evaluates a wide range of alternate scenarios including instantaneous and gradual as well as parallel and non-parallel changes in interest rates. The table below presents the estimated change to NII over the following 12 months for select parallel alternate scenarios, expressed as a percentage change relative to baseline NII. From December 31, 2024 to December 31, 2025, the Company’s net interest income sensitivity to changes in interest rates decreased. This change was primarily driven by the addition of interest rate hedging instruments executed as part of Truist’s ongoing interest rate risk management activities. Table 30: Interest Sensitivity Simulation Analysis Dec 31, 2025 Dec 31, 2024 Up 200bps gradual change in interest rates (0.9) % 1.1  % Up 50bps instantaneous change in interest rates (0.1) 0.6 Down 50bps instantaneous change in interest rates (0.2) (0.8) Down 200bps gradual change in interest rates (0.3) (2.1) Truist performs and monitors sensitivity tests of key assumptions used in NII risk including: • Asset prepayment speeds • New loan volume pricing spreads • Interest-bearing deposit betas • Non-interest-bearing demand deposit balance runoff, replaced by market funding EVE measures changes in the economic value of Truist’s current balance sheet and off-balance sheet hedges under alternate rate scenarios relative to starting economic value. Truist uses EVE as a longer-term measure of interest rate risk. Truist performs and monitors sensitivity tests of key assumptions used in EVE including: • Asset prepayment speeds • Mortgage spreads (mortgage loan and security valuations) • Interest-bearing deposit beta • Deposit runoff / decay Key assumption tests are generally performed by increasing and decreasing the assumption, whether static or dynamically modeled, relative to their respective starting values and then measuring the resulting impact to NII and EVE under baseline and alternate rate scenarios. The identification and testing of key assumptions are influenced by market conditions and management’s views on key risks. The results of key assumption sensitivity tests are reported to the ALCO and the BRC at least quarterly. Key assumptions and their associated sensitivity tests are reviewed with the ALCO and the BRC at least annually. Truist Financial Corporation 77 Market Risk - Trading Activities As a financial intermediary, Truist provides its clients access to derivatives, foreign exchange, and securities markets, which generate market risks. Trading market risk is managed using a multi-faceted risk management approach, which includes measuring risk using VaR, stress testing, and sensitivity analysis. Risk metrics are monitored against a suite of limits at both the trading desk level and at the aggregate portfolio level. Truist is also subject to risk-based capital guidelines for market risk under the Market Risk Rule. The Capital Markets Risk Management team within the RMO selects, calibrates and monitors compliance with key risk indicators and other risk measures, designed to establish risk-taking parameters for the trading desks within WB. The Capital Markets Risk Committee, ERC and BRC establish policies governing trading activities and receive regular updates to support the oversight of those activities. Covered Trading Positions Covered positions subject to the Market Risk Rule include trading assets and liabilities, specifically those held for the purpose of short-term resale or with the intent of benefiting from actual or expected short-term price movements or to lock in arbitrage profits. Truist’s trading portfolio of covered positions results primarily from market making and underwriting services for the Company’s clients, as well as associated risk mitigating hedging activity. The trading portfolio, measured in terms of VaR, consists primarily of four sub-portfolios of covered positions: (i) credit trading, (ii) fixed income securities, (iii) interest rate derivatives, and (iv) equity derivatives. As a market maker across different asset classes, Truist’s trading portfolio also contains other sub-portfolios, including foreign exchange, loan trading, and commodity derivatives; however, these portfolios do not generate material trading risk exposures. Valuation policies and methodologies exist for all trading positions. Additionally, these positions are subject to independent price verification. Refer to the “Critical Accounting Policies” section in MD&A, “Note 18. Fair Value Disclosures,” and “Note 19. Derivative Financial Instruments” for discussion of valuation policies and methodologies. Securitizations As of December 31, 2025, the aggregate market value of on-balance sheet securitization positions subject to the Market Risk Rule, which were non-agency asset backed securities positions, was $94 million. Consistent with the Market Risk Rule requirements, the Company performs pre-purchase due diligence on each securitization position to identify the characteristics, including deal structure and the asset quality of the underlying assets, that materially affect valuation and performance. Securitization positions are subject to Truist’s risk management framework, which includes daily monitoring against a suite of limits. There were no off-balance sheet securitization positions during the reporting period. Correlation Trading Positions The trading portfolio of covered positions did not contain any correlation trading positions as of December 31, 2025. VaR-Based Measures VaR measures the potential loss of a given position or portfolio of positions at a specified confidence level and time horizon. Truist utilizes a historical VaR methodology to measure and aggregate risks across its covered trading positions. The VaR calculation is based on a historical simulation approach and measures the potential trading losses using a one-day holding period at a one-tail, 99% confidence level. For Market Risk Rule purposes, the Company calculates VaR using a 10-day holding period and a 99% confidence level. Due to inherent limitations of the VaR methodology, such as the assumption that past market behavior is indicative of future market performance, VaR is only one of several tools we use to measure and manage market risk. Other tools used to manage market risk include stress testing, scenario analysis, and stop loss limits. 78 Truist Financial Corporation The trading portfolio’s VaR profile is influenced by a variety of factors, including the size and composition of the portfolio, market volatility, and the correlation between different positions. A portfolio of trading positions is typically less risky than the sum of the risk from each of the individual sub-portfolios, because, under normal market conditions, risk within each category partially offsets the exposure to other risk categories. The following table summarizes certain VaR-based measures for the years ended December 31, 2025 and 2024. Average VaR measures in the year ended December 31, 2025 were higher compared to the year ended December 31, 2024, primarily due to elevated market volatility in April 2025. Table 31: VaR-based Measures Year Ended December 31, 2025 2024 (Dollars in millions) 10-Day Holding Period 1-Day Holding Period 10-Day Holding Period 1-Day Holding Period VaR-based Measures: Maximum $ 63  $ 15  $ 28  $ 12 Average 22  8  21  7 Minimum 9  4  12  4 Period-end 10  4  16  6 VaR by Risk Class: Interest Rate Risk 4  6 Credit Spread Risk 3  6 Equity Price Risk 3  6 Foreign Exchange Risk —  1 Portfolio Diversification (6) (12) Period-end 4  6 Stressed VaR-based measures Stressed VaR, another component of market risk capital, is calculated using the same internal models as used for the VaR-based measure. Stressed VaR is calculated over a ten-day holding period at a one-tail, 99% confidence level and employs a historical simulation approach based on a continuous twelve-month historical window selected to reflect a period of significant financial stress for the Company’s trading portfolio. The following table summarizes Stressed VaR-based measures: Table 32: Stressed VaR-based Measures - 10 Day Holding Period Year Ended December 31, (Dollars in millions) 2025 2024 Maximum $ 287  $ 234 Average 120  145 Minimum 45  69 Period-end 52  105 Specific Risk Measures Specific risk is a measure of idiosyncratic risk that could result from risk factors other than broad market movements (e.g., default or event risks). The Market Risk Rule provides fixed risk weights under a standardized measurement method while also allowing a model-based approach, subject to regulatory approval. Truist utilizes the standardized measurement method to calculate the specific risk component of market risk regulatory capital. As such, incremental risk capital requirements do not apply. Truist Financial Corporation 79 VaR Model Backtesting In accordance with the Market Risk Rule, the Company evaluates the accuracy of its VaR model through daily backtesting by comparing aggregate daily trading gains and losses (excluding fees, commissions, reserves, net interest income, and intraday trading) from covered positions with the corresponding daily VaR-based measures generated by the model. As illustrated in the following graph, there was one Company-wide VaR backtesting exception during the twelve months ended December 31, 2025. The backtesting exception was driven by tariff-related market volatility. The total number of Company-wide VaR backtesting exceptions over the preceding twelve months is used to determine the multiplication factor for the VaR-based capital requirement under the Market Risk Rule. The capital multiplication factor increases from a minimum of three to a maximum of four, depending on the number of exceptions. All Company-wide VaR backtesting exceptions are reviewed in the context of VaR model use and performance. There was no change in the capital multiplication factor over the preceding twelve months. Model Risk Oversight The MRO is responsible for the independent model validation of all decision models, including trading market risk models. As part of ongoing monitoring efforts, the performance of all trading risk models is reviewed regularly to evaluate model performance with emerging developments in financial markets, assess evolving modeling approaches, and identify potential model enhancements. Stress Testing The Company uses a range of stress testing techniques to help monitor risks across trading desks and to augment standard daily VaR and other risk limits reporting. The stress testing framework is designed to quantify the impact of extreme, but plausible, stress scenarios that could lead to large, unexpected losses. Stress tests include simulations for risk factor sensitivities, historical repeats, and hypothetical scenarios with varying liquidity horizons of key risk factors. All trading positions within each applicable market risk category (i.e., interest rate risk, equity risk, foreign exchange rate risk, credit spread risk, and commodity price risk) are included in the Company’s stress testing framework. Management reviews stress testing scenarios and makes updates on an ongoing basis. Management also utilizes stress analyses to support the Company’s capital adequacy assessment standards. Refer to the “Capital” section in MD&A for additional discussion of capital adequacy. Liquidity Risk Liquidity risk is the risk that Truist will be unable, or that market participants may perceive Truist to be unable, to fund increases in its assets and meet its financial obligations at a reasonable cost and in a timely manner. Corporate Treasury is responsible for Truist’s Liquidity Risk Management as part of an integrated balance sheet management strategy, subject to the oversight of the TMRO team within the RMO. The ALCO, the BRC, and the Board approve the policies governing Liquidity Risk Management and, along with the ERC, receive periodic updates regarding the execution of the Liquidity Risk Management program. Refer to the “Liquidity” section in MD&A for additional discussion. 80 Truist Financial Corporation Strategic Risk Strategic risk is the risk to earnings, capital, franchise value, stakeholder confidence, and human capital arising from ineffective strategy, inability to adapt to changes in the operating environment, adverse business decisions, or improper execution of strategic initiatives. Truist manages strategic risk through continuous monitoring of several key factors, including the Company’s earnings performance, human capital strength, capital adequacy, progress against strategic objectives, and external conditions such as market dynamics and client sentiment. Strategic risk is managed by and the responsibility of the Corporate Finance & Strategy team, with governance through the Enterprise Strategy & Execution Committee. Independent oversight is provided by Strategic Risk Oversight within the RMO, with escalation through the Liquidity, Market, and Strategic Risk Committee to the ERC and, ultimately, the BRC. Operational Risk Operational risk is the risk of loss associated with external events or inadequate or failed internal processes, people, or systems. It includes legal risk, which is the risk of loss arising from defective transactions, litigation, claims, or the failure to adequately protect Company-owned assets. An operational loss occurs when an event results in a loss or reserve originating from operational risk. The Company executes business activities in diverse markets and relies on the ability of its teammates and systems to process a high number of transactions. Operational risk is inherent in all business activities, and the management of this risk is important to the achievement of the Company’s objectives. Business units and enterprise functions have primary responsibility and accountability for identifying, mitigating, and monitoring operational risks embedded in their business activities, including additional or increased risks created by economic and financial disruptions. Business continuity and disaster recovery planning are critical to effectively managing operational risks. Each business unit and enterprise function is required to develop, maintain, and test these plans at least annually to identify recovery activities that, if needed, can support mission critical functions, including technology, networks and data centers supporting client applications and business operations. While the Company strives to design processes to minimize operational risks, there is no absolute assurance that business disruptions or operational losses will not occur as a result of an external event or internal control breakdown. On an ongoing basis, management makes process changes and investments to enhance Truist’s systems of internal controls and business continuity and disaster recovery plans. Model Risk Model risk is the risk of adverse consequences to earnings, capital, compliance, operations, reputation, or client outcomes arising from decisions based on incorrect or misused model outputs. While model risk is not a primary risk type, Truist uses models for many purposes across our businesses, including the valuation of financial positions, estimation of credit losses, and the measurement of risk. Models also support activities such as pricing and profitability analysis, capital and liquidity planning, stress testing, scenario analysis, customer segmentation, fraud detection, marketing optimization, and strategic decision-making. Given their widespread use, model risk may adversely affect multiple risk areas, including credit, market, liquidity, and operational risks, among others. Models are managed by the applicable business units, which are responsible for their development, implementation, and use. Oversight of these activities is provided by the MRO, which is a component of the RMO. All models must meet pre-established validation criteria and undergo independent model testing prior to approval. Once models have been approved by the MRO, the applicable business units are responsible for the maintenance of an appropriate operating environment and must monitor and evaluate the performance of the models on a recurring basis. Models are updated in response to changes in portfolio composition, industry and economic conditions, technological capabilities, and other developments. The MRO manages model risk through a suite of model governance and validation activities. The risk of each model is assessed and classified into risk tiers. Additionally, the MRO maintains an enterprise-wide model inventory containing relevant model lifecycle information. Regarding model validation, the MRO employs internal validation analysts and managers with relevant skill sets and expertise to conduct thorough reviews of model development, conceptual soundness, and implementation. On certain occasions, the MRO will also engage external parties to assist with validation efforts. Once in a production environment, the MRO assesses a model’s performance on a periodic basis through ongoing monitoring reviews. The MRO is also responsible for tracking issues that have been identified during model validation or through ongoing monitoring and engages with the applicable business unit to drive timely remediation. The MRO gauges model risk utilizing a collection of key risk indicators, which are periodically reported to relevant committees, including the Model Risk Management Committee and the ERC. The MRO also presents model risk topics to the BRC as necessary. Technology Risk Technology risk is the risk associated with the disruption or failure of technology that negatively impacts business operations. Truist has defined and adopted a technology risk framework that provides the foundation for its technology risk strategy, program, and oversight and defines key objectives, operating model components, risk domains, and capabilities to manage this risk. Refer to “Item 1C. Cybersecurity” for a discussion regarding Truist’s cybersecurity risk management, strategy, and governance. Truist Financial Corporation 81 Data Analytics, AI, and Generative AI Risks Data risk is the risk to current or projected financial condition, operations, strategic objectives, and regulatory compliance arising from inadequate data accuracy, completeness, consistency, timeliness, relevance, integrity, and validity (i.e., data fidelity). Inadequate data fidelity can negatively impact regulatory and management reporting, public disclosures, and business decisions. Truist recognizes the importance of maintaining accurate and reliable data and maintains a formal Data Risk Management program that is designed to mitigate risks related to data fidelity. Through active data risk monitoring and accuracy testing, Truist seeks to provide reasonable assurance regarding data-related processes, risks, and controls, as well as the quality and retention of key data used for operational, strategic, regulatory, and compliance purposes. Management and the Board provide oversight of the Data Risk Management program and receive regular updates from the RMO. Truist’s AI program is foundationally based on the National Institute of Standards and Technology AI Risk Management Framework Core, which provides outcomes and actions that enable dialogue, understanding, and activities to manage AI risks and develop trustworthy AI systems. Oversight of Truist’s AI program is a regular focus of the Board, the BRC, and the BTC. Compliance Risk Compliance risk is the risk of legal or regulatory sanctions, financial loss, or damage to reputation as a result of noncompliance with (i) applicable laws, regulations, rules or other regulatory requirements (for example, the risk of consumers experiencing economic loss or other legal harm as a result of noncompliance with consumer protection laws, regulations and requirements); (ii) internal policies and procedures, standards of best practice, or codes of conduct; and (iii) principles of integrity and fair dealing applicable to Truist’s activities and functions. Truist recognizes that these compliance requirements are increasingly complex. Truist’s Compliance and Ethics Risk Management program provides independent oversight of first line of defense activities for compliance with the requirements applicable to the products and services provided by Truist through risk identification and evaluation, monitoring, and independent testing, among other activities. The program also oversees aspects of the Code of Ethics. The ERC and the BRC receive regular reporting from the program. Financial Crimes Risk Financial crimes risk is the risk of criminal charges, prosecutions, and penalties, as well as supervisory fines or supervisory actions due to noncompliance with applicable AML, sanctions, and anti-bribery/corruption laws and regulations. This includes the BSA, as amended, and its implementing regulations, Office of Foreign Assets Control prohibitions, and the Foreign Corrupt Practices Act. Key risks involve enforcement actions, monetary penalties, financial losses, reputational damage, and the risks related to mitigating money laundering, the financing of terrorism, engaging in prohibited activity with persons, entities, countries, and territories that are the subject of sanctions, and related illegal activities as required by applicable law. Truist’s AML Program provides risk identification, independent oversight of activities for compliance with BSA requirements, transaction monitoring, independent testing, issues management, training, and the creation and maintenance of compliance policies and procedures. Truist’s Financial Crimes Risk Management team is responsible for oversight of financial crimes risk. This team reports to the CRO and provides periodic updates to the ERC, the BRC, and the Board. The Board approves the appointment of the chief officer in charge of the AML Program, which includes a review of the AML policy on an annual basis. Liquidity Liquidity is the ability to fund increases in assets and meet obligations as they come due, all without incurring unacceptable costs. In addition to the level of liquid assets, such as cash, cash equivalents, and highly liquid unencumbered securities, other factors affect the ability to meet liquidity needs, including access to a variety of funding sources, maintaining borrowing capacity, growing core deposits, loan repayment, and the ability to securitize or package loans for sale. 82 Truist Financial Corporation Truist has a liquidity risk management process designed to identify, measure, and monitor key liquidity risks to assess whether Truist is operating within its liquidity risk appetite. The liquidity risk appetite is outlined using a qualitative statement and more granular detailed risk appetite statements aligned to Truist’s risk taxonomy. Risk statements form the basis for aligning risk appetite with risk management goals and strategy. Using the risk appetite statements, key risk indicators are developed that represent quantitative metrics which measure current risk exposure relative to Truist’s risk appetite, which help the Board oversee and management monitor liquidity risk-taking activity. Truist’s key risk indicators are designed to support the following objectives: • maintain (i) a diversified, but client deposit centric, funding base, (ii) a level of liquid, readily monetized assets sufficient to satisfy business as usual and stressed cash flow needs across multiple liquidity horizons, and (iii) an appropriate level of contingent funding to meet any unexpected needs; • limit concentration risk from individual, correlated counterparties, and funding concentrations in tenors that may negatively impact Truist from an unforeseen idiosyncratic or market event; and • maintain sufficient liquidity in the holding company to serve as a source of strength to its subsidiaries. Internal Liquidity Stress Testing Liquidity stress testing is conducted for Truist and Truist Bank using a variety of institution-specific and market-wide adverse scenarios. Each liquidity stress test scenario applies defined assumptions to execute sources and uses of liquidity over varying planning horizons. The types of expected liquidity uses during a stressed event may include deposit attrition, contractual maturities, reductions in unsecured and secured funding, increased draws on unfunded commitments, and the potential need to post additional collateral for derivatives. To mitigate liquidity outflows, Truist has identified sources of liquidity; however, access to these sources of liquidity could be affected within a stressed environment. Truist maintains a liquidity buffer of cash on hand and highly liquid unencumbered securities that is designed to meet the projected 30-day net stressed cash-flow needs. Truist’s liquidity buffer is substantially the same in composition to what qualifies as HQLA under the LCR rule. Truist periodically monetizes a representative sample of the liquidity buffer to assess operational readiness through available monetization channels. Contingency Funding Plan Truist has a contingency funding plan designed to address ongoing obligations and commitments, particularly in the event of a liquidity contraction. This plan is designed to examine and quantify the organization’s liquidity under the various internal liquidity stress scenarios and is periodically tested to assess the plan’s reliability. Additionally, the plan provides a framework for management and other teammates to follow in the event of a liquidity contraction or in anticipation of such an event. The plan addresses authority for activation and decision making, liquidity options, and the responsibilities of key departments in the event of a liquidity contraction. On a quarterly basis, Truist conducts testing of market access for alternative sources of funds (e.g., FRB, discount window, standing repo facility, etc.) to test operational readiness. On a periodic basis, Truist conducts a tabletop test of the Contingency Funding Plan to assess reliability of the plan during liquidity stress events and to simulate the operational elements of the plan such as communications, coordination, and decision-making. LCR, NSFR, and HQLA The LCR rule requires that Truist and Truist Bank maintain an amount of eligible HQLA that is sufficient within the parameters of the rule to meet their estimated total net cash outflows over a prospective 30 calendar-day period of stress. Eligible HQLA, for purposes of calculating the LCR, is the amount of unencumbered HQLA that satisfies operational requirements of the LCR rule. Truist and Truist Bank are subject to the Category III reduced LCR requirements. Truist held average weighted eligible HQLA of $91.7 billion and Truist’s average LCR was 111% for the three months ended December 31, 2025. The NSFR rule defines a minimum amount of stable, long-term funding that Truist and Truist Bank must maintain in relation to their asset composition and off-balance sheet activities. Truist and Truist Bank are subject to the Category III reduced NSFR requirements. At December 31, 2025, Truist was compliant with this requirement. Sources of Funds Truist funds its balance sheet through diverse sources of funding, including client deposits, secured and unsecured capital markets funding, and shareholders’ equity. Truist Bank’s primary source of funding is client deposits. Continued access to client deposits is highly dependent on public confidence in the stability of Truist Bank and its ability to return funds to clients when requested. Truist Financial Corporation 83 Truist Bank maintains a number of diverse funding sources to meet its liquidity requirements. These sources include unsecured borrowings from the capital markets through the issuance of senior or subordinated bank notes, institutional CDs, overnight and term Federal funds markets, and retail brokered CDs. Truist Bank also maintains access to secured borrowing sources, including FHLB advances, repurchase agreements, and the Federal Reserve discount window. Available investment securities could be pledged to create additional secured borrowing capacity. The following table presents a summary of Truist Bank’s available secured borrowing capacity and eligible cash at the Federal Reserve: Table 33: Selected Liquidity Sources (Dollars in millions) Dec 31, 2025 Dec 31, 2024 Unused borrowing capacity: Federal Reserve $ 84,160  $ 72,040 FHLB 23,464  31,411 Available investment securities (at fair value) 70,150  68,212 Available secured borrowing capacity 177,774  171,663 Eligible cash at the Federal Reserve 29,973  33,717 Total $ 207,747  $ 205,380 At December 31, 2025, Truist Bank’s available secured borrowing capacity represented approximately 4.8 times the amount of wholesale funding maturities in one year or less. As of December 31, 2025, the Company had $1.3 billion in obligations to purchase goods or services that are enforceable and legally binding. Many of the purchase obligations have terms that are not fixed and determinable and are included in the total amount of obligations based upon the estimated timing and amount of payment. In addition, certain of the purchase agreements contain clauses that would allow Truist to cancel the agreement with specified notice; however, that impact is not included in determining the total amount of obligations. Refer to “Note 9. Other Assets and Liabilities,” “Note 11. Borrowings,” and “Note 16. Commitments and Contingencies” for additional information regarding outstanding balances of sources of liquidity and contractual commitments and obligations. Parent Company The Parent Company serves as the primary source of capital for its operating subsidiaries. The Parent Company’s assets consist primarily of cash on deposit with Truist Bank, equity investments in subsidiaries, and advances to subsidiaries, including notes receivable from subsidiaries. The principal obligations of the Parent Company are payments on long-term debt. The main sources of funds for the Parent Company are dividends and management fees from subsidiaries, repayments of advances to subsidiaries, and proceeds from the issuance of equity and long-term debt. The primary uses of funds by the Parent Company are investments in subsidiaries, advances to subsidiaries, dividend payments to common and preferred shareholders, repurchases of common stock, payments on and, from time to time, potential repurchases or redemptions of a portion of an outstanding tranche of long-term debt of the Parent Company (as may be permitted by the terms of each respective series), and the redemption of preferred stock. Refer to “Note 22. Parent Company Financial Information” for additional information regarding dividends from subsidiaries and debt transactions. Access to funding at the Parent Company is more sensitive to market disruptions. Therefore, Truist manages cash levels at the Parent Company to exceed a minimum of 12 months of projected cash outflows. In determining the buffer, Truist considers cash requirements for common and preferred dividends, unfunded commitments to affiliates, serving as a source of strength to Truist Bank, and being able to withstand sustained market disruptions that could limit access to the capital markets. At December 31, 2025, the Parent Company held cash on hand to meet these requirements. Credit Ratings Credit ratings are forward-looking opinions of rating agencies as to the Company’s ability to meet its financial commitments and repay its securities and obligations in accordance with their terms of issuance. Credit ratings influence both borrowing costs and access to the capital markets. The Company’s credit ratings are continuously monitored by the rating agencies and are subject to change at any time. As Truist seeks to maintain high quality credit ratings, management meets with the major rating agencies on a regular basis to provide financial and business updates and to discuss current outlooks and trends. 84 Truist Financial Corporation The following table presents the credit ratings and outlooks of the Parent Company and Truist Bank as of December 31, 2025: Table 34: Credit Ratings of Truist Financial Corporation and Truist Bank Moody’s S&P Fitch DBRS Morningstar Truist Financial Corporation: Issuer Baa1 A- / A-2 A / F1 AAL / R-1M Senior unsecured Baa1 A- A- AAL Subordinated Baa1 BBB+ BBB+ AH Preferred stock Baa3(hyb) BBB- BBB- AL Truist Bank: Issuer A3 A / A-1 A / F1 AA / R-1H Senior unsecured A3 A A AA Deposits A1 / P-1 NA A+ / F1 AA Subordinated A3 A- A- AAL Ratings outlook: Credit trend Stable Stable Stable Stable Capital The maintenance of appropriate levels of capital is a management priority and is monitored on a regular basis. Truist’s principal goals related to the maintenance of capital are to provide adequate capital to support Truist’s risk profile consistent with the Board-approved risk appetite; provide financial flexibility to support future growth and client needs; comply with relevant laws, regulations, and supervisory guidance; achieve optimal credit ratings for Truist; for the Parent Company to remain a source of strength for the Parent Company’s subsidiaries; and provide a competitive return to shareholders. Risk-based capital ratios, which include CET1 capital, Tier 1 capital, and Total capital, are calculated based on regulatory guidance related to the measurement of capital and risk-weighted assets. Management regularly monitors the capital position of Truist on both a consolidated and bank-level basis. In this regard, management’s objective is to maintain capital at levels that are in excess of internal capital limits, which are above the regulatory “well-capitalized” minimums. Truist also regularly performs stress testing on its capital levels and is required to periodically submit the Company’s capital plans and stress testing results to the banking regulators. Management has implemented internal stress capital ratio minimums that serve as limits which are measured under internally-developed stress testing scenarios to evaluate whether capital ratios calculated under hypothetical stress, and after the effect of alternative capital actions, are likely to remain above internal stressed minimums. Breaches of internal capital limits, or projected breaches of internal stress capital ratio minimums under hypothetical stress, result in the activation of Truist’s capital contingency plan. Table 35: Capital Requirements Minimum Capital Well-Capitalized Minimum Capital Plus Stress Capital Buffer (1) Truist Truist Bank CET1 4.5  % NA 6.5  % 7.0  % Tier 1 capital 6.0  6.0  % 8.0  8.5 Total capital 8.0  10.0  10.0  10.5 Leverage ratio 4.0  NA 5.0  NA Supplementary leverage ratio 3.0  NA NA NA (1) Reflects an SCB requirement of 2.5% applicable to Truist as of December 31, 2025. Truist’s SCB requirement, received in the 2025 CCAR process, is effective from October 1, 2025 to September 30, 2027. Payments of cash dividends and repurchases of common shares are among the methods used to manage any excess capital generated. In addition, management closely monitors the Parent Company’s double leverage ratio (investments in subsidiaries as a percentage of shareholders’ equity). The active management of the subsidiaries’ equity capital is the process used to manage this important driver of Parent Company liquidity and is a key element in the management of Truist’s capital position. Management intends to maintain capital at Truist Bank at levels that exceed the minimum capital plus CCB. This will also result in Truist Bank being “well-capitalized” for regulatory purposes. The CCB is a regulatory requirement for banks to hold a specific amount of capital in addition to the minimum capital requirements. Truist Bank’s CCB is 2.5% of its risk-weighted assets. Management’s capital deployment plan is to focus on (i) organic growth, (ii) dividends, (iii) share repurchases, and (iv) strategic opportunities and acquisitions. Truist Financial Corporation 85 Truist Bank’s capital ratios are presented in the following table: Table 36: Capital Ratios - Truist Bank (Dollars in millions) Dec 31, 2025 Dec 31, 2024 Risk-based: CET1 11.8  % 12.6  % Tier 1 capital 11.8  12.6 Total capital 13.3  14.3 Leverage ratio 9.8  10.1 Supplementary leverage ratio 8.2  8.5 Risk-weighted assets $ 434,977  $ 407,778 The Parent Company’s capital ratios are presented in the following table: Table 37: Capital Ratios - Truist Financial Corporation (Dollars in millions) Dec 31, 2025 Dec 31, 2024 Risk-based: CET1 10.8  % 11.5  % Tier 1 capital 11.9  12.9 Total capital 13.8  15.0 Leverage ratio 10.0  10.5 Supplementary leverage ratio 8.3  8.8 Risk-weighted assets $ 443,257  $ 418,337 Truist’s CET1 ratio was 10.8% as of December 31, 2025, down 70 basis points since December 31, 2024 as capital returned to shareholders and an increase in risk-weighted assets outpaced current year earnings. Truist paid $2.7 billion in common stock dividends, or $2.08 per share, during 2025 and $2.8 billion, or $2.08 per share, during 2024. Truist repurchased $2.5 billion and $1.0 billion in common stock during 2025 and 2024, respectively. In early 2026, Truist declared common dividends of $0.52 per share for the first quarter of 2026. In December 2025, Truist announced that the Board authorized the repurchase of up to $10.0 billion of common stock effective immediately with no expiration date, replacing the previous repurchase authority, as part of Truist’s overall capital distribution strategy. 86 Truist Financial Corporation Non-GAAP Financial Measures Tangible common equity, average tangible common equity, and related measures, including ROTCE and TBVPS, are non-GAAP measures that exclude the impact of intangible assets, net of deferred taxes, and their related amortization and impairment charges. These measures are useful for evaluating the performance of a business consistently, whether acquired or developed internally. Truist’s management uses these measures to assess profitability, returns relative to balance sheet risk, and shareholder value. These measures should not be considered in isolation or as a substitute for the related GAAP financial measures presented in this report and are not necessarily comparable to similar non-GAAP financial measures that may be presented by other companies. The following tables reconcile each non-GAAP financial measure to the most directly comparable GAAP financial measure. Table 38: Reconciliation of ROTCE Year Ended December 31, (Dollars in millions) 2025 2024 2023 Calculation of tangible net income available to common shareholders: Net income available to common shareholders (a) $ 4,974  $ 4,469  $ (1,452) Goodwill impairment —  —  6,078 Amortization of intangibles 290  345  527 Applicable income taxes related to amortization of intangibles (1) (69) (65) (125) Tangible net income available to common shareholders (b) $ 5,195  $ 4,749  $ 5,028 Calculation of average tangible common shareholders’ equity: Average common shareholders’ equity (c) $ 58,902  $ 55,876  $ 56,306 Average intangible assets (18,560) (20,636) (30,441) Applicable deferred taxes related to intangible assets (1) 416  550  790 Average tangible common shareholders’ equity (d) $ 40,758  $ 35,790  $ 26,655 Return on average common shareholders’ equity (a)/(c) 8.4  % 8.0  % (2.6) % ROTCE (b)/(d) 12.7  13.3  18.9 (1) Calculated using the applicable marginal tax rate. Table 39: Reconciliation of Tangible Common Equity (Dollars in millions, except per share data, shares in thousands) Dec 31, 2025 Dec 31, 2024 Calculation of period end tangible common equity: Total shareholders’ equity $ 65,189  $ 63,679 Preferred stock (4,916) (5,907) Common shareholders’ equity (a) $ 60,273  $ 57,772 Intangible assets (18,416) (18,702) Applicable deferred taxes related to intangible assets (1) 407  428 Tangible common equity (b) $ 42,264  $ 39,498 Common shares outstanding at end of period (c) 1,262,470  1,315,936 Common shareholders’ equity per common share (a)/(c) $ 47.74  $ 43.90 TBVPS (b)/(c) 33.48  30.01 (1) Calculated using the applicable marginal tax rate. Truist Financial Corporation 87 Reclassifications In certain circumstances, reclassifications have been made to prior period information to conform to the current presentation. Such reclassifications had no effect on previously reported shareholders’ equity or net income. Refer to “Note 1. Basis of Presentation” for additional discussion regarding reclassifications. Critical Accounting Policies The accounting and reporting policies of Truist are in accordance with GAAP and conform to the accounting and reporting guidelines prescribed by bank regulatory authorities. The financial position and results of operations are affected by management’s application of accounting policies, including estimates, assumptions and judgments made to arrive at the carrying value of assets and liabilities and amounts reported for revenues and expenses. Different assumptions in the application of these policies could result in material changes in the consolidated financial position or consolidated results of operations and related disclosures. Understanding Truist’s accounting policies is fundamental to understanding the consolidated financial position and consolidated results of operations. Accordingly, Truist’s significant accounting policies and the effects of new accounting pronouncements are discussed in detail in “Note 1. Basis of Presentation.” The following is a summary of Truist’s critical accounting policies that are highly dependent on estimates, assumptions, and judgments. These critical accounting policies are reviewed with the Audit Committee of the Board on a periodic basis. Allowance for Credit Losses (ACL) Truist’s ACL represents management’s best estimate of expected future credit losses related to the loan and lease portfolios and off-balance sheet lending commitments at the balance sheet date. Estimates of expected future loan and lease losses are determined by using statistical models and management’s judgment. The ACL estimation process includes both quantitatively calculated components as well as qualitative components. Quantitative models are designed to forecast probability of default, exposure at default and loss given default by correlating certain macroeconomic forecast data to historical experience. The models are generally applied at the portfolio level to pools of loans with similar risk characteristics. Certain loans or leases that do not have similar risk characteristics are individually evaluated when establishing an allowance for expected credit losses. The macroeconomic forecast data used in the models is based on forecasted variables for the reasonable and supportable period of two years. Beyond this forecast period, the models gradually revert to long-term historical loss conditions over a one-year period. As a means of addressing uncertainty related to future economic conditions, the quantitative allowance components include an adjustment that reflects model outputs calculated using a range of potential future economic conditions. Expected losses are estimated through contractual maturity, giving appropriate consideration to expected prepayments unless the borrower has a right to renew that is not cancellable or to capture the losses expected at the balance sheet date. The qualitative components of the ACL incorporate management’s judgment in determining adjustments where model outputs are inconsistent with management’s expectations of expected credit losses. The qualitative components are used to adjust for limitations in modeled results related to current economic conditions, as well as considerations with respect to the impact of current and expected events or risks, the outcomes of which are uncertain and may not be completely considered by quantitative models. Management considers a range of macroeconomic forecast data in the allowance estimation process. Under the range of scenarios considered as of December 31, 2025, use of the Company’s pessimistic scenario would have resulted in an increase to the modeled allowance results of approximately $2.4 billion. This estimate reflects the sensitivity of the modeled allowance estimate to macroeconomic forecast data but does not consider other qualitative adjustments that could increase or decrease modeled loss estimates calculated using this alternative economic scenario. The methodology used to determine an estimate of the reserve for unfunded commitments (RUFC) is similar to that used to determine the funded component of the ALLL and is measured over the period for which there is a contractual obligation to extend credit that is not unconditionally cancellable. The RUFC is adjusted for factors specific to binding commitments, including the probability of funding and exposure at default. A detailed discussion of the methodology used in determining the ACL is included in “Note 1. Basis of Presentation.” Fair Value of Financial Instruments The vast majority of assets and liabilities measured at fair value on a recurring basis are based on either quoted market prices or market prices for similar instruments. The Enterprise Valuation Committee provides oversight to Truist’s enterprise-wide IPV function, which is responsible for the comparison of pricing information received from the third-party pricing service or internally to other third-party pricing sources, approving tolerance limits determined by IPV for price comparison exceptions, reviewing significant changes to pricing and valuation policies, and reviewing and approving the pricing decisions made on any illiquid and hard-to-price securities. Refer to “Note 18. Fair Value Disclosures” for additional disclosures regarding the fair value of financial instruments. 88 Truist Financial Corporation Investment Securities Truist generally utilizes a third-party pricing service in determining the fair value of its AFS investment securities. Fair value measurements are derived from market-based pricing matrices that were developed using observable inputs that include benchmark yields, benchmark securities, reported trades, offers, bids, issuer spreads, and broker quotes. Management performs procedures to evaluate the fair values provided by the third-party service provider. These procedures, which are performed independently of the responsible business unit, include comparison of pricing information received from the third-party pricing service to other third-party pricing sources, review of additional information provided by the third-party pricing service and other third-party sources for selected securities, and back-testing to compare the price realized on security sales to the daily pricing information received from the third-party pricing service. When market observable data is not available, which generally occurs due to the lack of liquidity or inactive markets for certain securities, the valuation of the security is subjective and may involve substantial judgment by management to reflect unobservable input assumptions. Mortgage Servicing Rights Residential MSRs do not trade in an active, open market with readily observable prices. While sales of MSRs do occur, the precise terms and conditions typically are not readily available. Accordingly, Truist estimates the fair value of residential MSRs using a valuation model to project residential MSR cash flows over multiple interest rate scenarios, which are then discounted at risk-adjusted rates. The model considers portfolio characteristics, contractually specified servicing fees, prepayment assumptions, delinquency rates, late charges, other ancillary revenue, costs to service, and other economic factors. Truist periodically reassesses and adjusts the underlying inputs and assumptions in the model to reflect market conditions and assumptions that a market participant would consider in valuing the residential MSR asset. Fair value estimates and assumptions are compared to industry surveys, recent market activity, actual portfolio experience and, when available, observable market data. Due to the nature of the valuation inputs, residential MSRs are classified within Level 3 of the valuation hierarchy. The value of residential MSRs is significantly affected by mortgage interest rates available in the marketplace, which influence mortgage loan prepayment speeds. In general, during periods of declining interest rates, the value of MSRs declines due to increasing prepayments attributable to increased mortgage-refinance activity. Conversely, during periods of rising interest rates, the value of residential MSRs generally increases due to reduced refinance activity. Truist typically hedges against market value changes in the residential MSRs. Refer to “Note 8. Loan Servicing” for quantitative disclosures reflecting the effect that changes in management’s assumptions would have on the fair value of residential MSRs. Trading Assets and Liabilities Fair value measurements for trading securities and securities sold short are derived from observable market-based information, including overall market conditions, recent trades, comparable securities, broker quotes, and FINRA’s Trade Reporting and Compliance Engine data. Security prices are also validated through actual cash settlement upon the sale of a security. When observable market prices are not available, the Company uses judgment and estimates fair value using internal models that reflect assumptions consistent with those that would be used by a market participant in estimating fair value. Refer to “Note 18. Fair Value Disclosures” for further information about the Company’s trading securities and securities sold short. Truist elects to measure certain loans at fair value when such reporting aligns with the underlying business purpose. Trading loans include loans held in connection with the Company’s trading business primarily consisting of commercial and corporate leveraged loans and loans made or acquired in connection with the Company’s TRS business. Trading loans are valued by a third-party pricing service primarily using quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active. Refer to “Note 18. Fair Value Disclosures” for further information on the Company’s trading loans and other trading liabilities. Refer to “Note 16. Commitments and Contingencies,” and “Note 19. Derivative Financial Instruments,” for further discussion of the Company’s TRS business. Derivative Assets and Liabilities Truist uses derivatives to manage various financial risks and in a dealer capacity to facilitate client transactions. The fair values of derivative financial instruments are determined based on quoted market prices and internal pricing models that use market observable data for interest rates, foreign exchange, equity, and credit. The fair value of interest rate lock commitments, which are related to mortgage loan commitments, is based on quoted market prices adjusted for commitments that Truist does not expect to fund and includes the value attributable to the net servicing fee. Refer to “Note 18. Fair Value Disclosures” for information on the significant inputs used to value derivatives, as well as how such values are impacted by changes in those inputs. Truist Financial Corporation 89 Goodwill and Other Intangible Assets The acquisition method of accounting requires that assets acquired and liabilities assumed in business combinations are recorded at their fair values. This often involves estimates based on third-party valuations or internal valuations based on discounted cash flow analyses or other valuation techniques, which are inherently subjective. The amortization of definite-lived intangible assets is based upon the estimated economic benefits to be received, which is also subjective. Business combinations also typically result in goodwill, which is subject to ongoing periodic impairment testing based on the fair values of the reporting units to which the acquired goodwill relates. Refer to “Note 1. Basis of Presentation” for a description of the impairment testing process. The Company’s three reporting units with goodwill balances are CSBB, WB excluding Wealth, and Wealth. Management performs a goodwill impairment analysis on an annual basis as of October 1 st , or more often if events or circumstances indicate that it is more-likely-than not that the fair value of a reporting unit is below its carrying value. For its annual impairment review, Truist performed a quantitative test of each of its reporting units. The quantitative impairment test estimates the fair value of the reporting units using the income approach and a market-based approach, weighted 50% and 50%, respectively. The inputs and assumptions specific to each reporting unit are incorporated in the valuations, including projections of future cash flows, discount rates, applicable valuation multiples based on the comparable public company information, and guideline transactions, when applicable. The income approach utilizes a discounted cash flow analysis of multi-year financial forecasts developed for each reporting unit by considering several inputs and assumptions such as net interest income, expected credit losses, noninterest income, noninterest expense, and required capital. The market-based approach utilizes comparable public company information, key valuation multiples, and considers a market control premium associated with cost synergies and other cash flow benefits that arise from obtaining control over a reporting unit, and guideline transactions, when applicable. Truist also assesses the reasonableness of the aggregate estimated fair value of the reporting units by comparison to its market capitalization over a reasonable period of time, including consideration of expected acquirer expense synergies, historic bank control premiums, and the current market. The projection of net interest income is the most significant input to the financial projections of the CSBB and WB reporting units, while noninterest income is the most significant input to the financial projections of the Wealth reporting unit. The long-term growth rate used in determining the terminal value of each reporting unit was 3% as of October 1, 2025, based on management’s assessment of the minimum expected terminal growth rate of each reporting unit. Discount rates are estimated based on the Capital Asset Pricing Model, which considers the risk-free interest rate, market risk premium, beta, and unsystematic risk adjustments specific to a particular reporting unit. The discount rates are also calibrated based on risks related to the projected cash flows of each reporting unit. The estimated fair value of a reporting unit is highly sensitive to changes in management’s estimates and assumptions; therefore, in some instances, changes in these assumptions could impact whether the fair value of a reporting unit is greater than its carrying value. The valuation of the WB reporting unit as of October 1, 2025 indicated that if the discount rate increased 100 basis points, with other cash flow assumptions unchanged, the reporting unit’s fair value would be less than its carrying value, indicating a goodwill impairment under the income approach. Ultimately, adverse performance in relation to management’s projections or potential future changes in management’s assumptions may impact the estimated fair value of a reporting unit and cause the fair value of the reporting unit to be below its carrying value. Additionally, a reporting unit’s carrying value could change based on market conditions, changes in the underlying makeup of the reporting unit, or changes in the risk profile of the reporting unit, which could impact whether the fair value of a reporting unit is less than its carrying value. Refer to “Note 1. Basis of Presentation” and “Note 7. Goodwill and Other Intangible Assets” for additional goodwill information. Income Taxes Truist is subject to income tax laws of the U.S., its states, and the municipalities in which the Company conducts business. In estimating the net amount due to or to be received from tax jurisdictions either currently or in the future, the Company assesses the appropriate tax treatment of transactions and filing positions after considering statutes, regulations, judicial precedent, and other pertinent information. The income tax laws are complex and subject to different interpretations by the taxpayer and the relevant government taxing authorities. Significant judgment is required in determining the tax accruals and in evaluating the Company’s tax positions, including evaluating uncertain tax positions. Changes in the estimate of accrued taxes occur periodically due to changes in tax rates, interpretations of tax laws and new judicial guidance, the status of examinations by the tax authorities, and newly enacted statutory and regulatory guidance that could impact the relative merits and risks of tax positions. These changes, when they occur, impact tax expense and can materially affect operating results. Truist reviews tax positions quarterly and adjusts accrued taxes as new information becomes available. 90 Truist Financial Corporation Deferred income tax assets represent amounts available to reduce income taxes payable in future years. Such assets arise due to temporary differences between the financial reporting and tax bases of assets and liabilities, as well as from NOL and tax credit carryforwards. The Company regularly evaluates the ability to realize DTAs, recognizing a valuation allowance if, based on the weight of available evidence, it is more-likely-than-not that some portion or all of the DTA will not be realized. In determining whether a valuation allowance is necessary, the Company considers the level of taxable income in prior years to the extent that carrybacks are permitted under current tax laws, as well as estimates of future pre-tax and taxable income and tax planning strategies that would, if necessary, be implemented. Truist currently maintains a valuation allowance for certain state carryforwards. Refer to “Note 1. Basis of Presentation” and “Note 14. Income Taxes” for additional income tax information. Pension and Postretirement Benefit Obligations Truist offers various pension plans and postretirement benefit plans to teammates. Calculation of the obligations and related expenses under these plans requires the use of actuarial valuation methods and assumptions, which are subject to management judgment and may differ significantly if different assumptions are used. The discount rate assumption used to measure the postretirement benefit obligations is set by reference to a high-quality corporate bond yield curve and the individual characteristics of the plans such as projected cash flow patterns and payment durations. Management also considered the sensitivity that changes in the expected return on plan assets and the discount rate would have on pension expense. For the Company’s qualified plans, a decrease of 50 basis points in the discount rate would result in additional pension expense of approximately $20 million for 2026, while a decrease of 50 basis points in the expected return on plan assets would result in an increase of approximately $79 million in pension expense for 2026. These estimates reflect the sensitivity of certain factors considered in calculation of pension expense but does not consider all factors that could increase or decrease estimates calculated. Refer to “Note 15. Benefit Plans” for disclosures related to the benefit plans. ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Refer to the “Market Risk” section in MD&A for additional information, which is incorporated by reference into this item. Truist Financial Corporation 91 ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA