Truist sells $5.5bn of auto loans, exits near-prime lending
The sale of Regional Acceptance Corporation assets is expected to add $945 million, or 22 basis points, of CET1 capital.
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Truist Financial has agreed to sell $5.5 billion of auto loans, covering substantially all of the assets held by Regional Acceptance Corporation. The deal completes the bank's exit from near-prime auto lending.
Truist expects the sale to generate $5.2 billion in net proceeds and a $535 million recapture of loan loss reserves. Together, those add up to $945 million, or 22 basis points, of CET1 capital, a measure of the capital banks hold against risk.
The bank says its 2026 share repurchase target stays at $5 billion. Closing is expected in late third-quarter or early fourth-quarter 2026, subject to customary conditions.
The sale removes a book of loans that carried more credit risk than Truist's main lending business. The capital it frees up comes on top of the buyback plan already in place, giving Truist room to return money to shareholders or reinvest it without touching that commitment.