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TRUIST FINANCIAL CORP 8-K Report, Corporate Update (May 10, 2024)

Reports
Other Events·Exhibits & Filings
Filing Date
Filed May 10, 2024
Period End
May 10, 2024
In the record · 2016–202610-K1110-Q338-K196

TFC filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 196 current reports (8-K) between 2016 and 2026.

  1. Deal closed8-K · Apr ’16Apr ’16
  2. Deal closed8-K · Dec ’19Dec ’19
  3. Leadership change8-K · Sep ’22Sep ’22
  4. Leadership change8-K · Oct ’26Oct ’26

01—Abstract

Summary

Summary of the 8-K filed May 10, 2024. Cited figures are marked; the original filing is the authoritative source.

Truist Financial's May 10, 2024 Form 8-K is a recast, not a new results release.

It re-presents the 2023 Form 10-K financial statements and MD&A (Items 7 and 8, excluding Risk Management, Liquidity, and Capital sections) to reflect two changes: the discontinued-operations treatment of Truist Insurance Holdings (TIH), whose remaining equity interests were sold on May 6, 2024, and a January 1, 2024 segment realignment. The filing does not update the 2023 results or any other 2023 Form 10-K disclosure, and it should be read alongside the original 10-K and the Q1 2024 10-Q. The company's underlying 2023 figures are unchanged in total; what changes is how the insurance business and segments are presented.

On a continuing-operations basis, Truist reported a 2023 net loss from continuing operations of $1.5 billiona, driven mainly by a non-cash, non-tax-deductible $6.1 billion goodwill impairment on the CB&W and C&CB reporting units (now CSBB and WB). Net income from discontinued operations was $456 million for 2023, versus $488 million in 2022. Total 2023 net loss available to common shareholders was $1.5 billion, or $(1.09) per diluted share.

Continuing-operations revenue was $20.0 billionb, and net interest margin was 2.99%. Key capital and funding metrics were a CET1 ratio of 10.1%, tangible book value per common share of $21.83 (up 21%), and 2023 common dividends of $2.08 per share. For investors, the practical takeaway is that the TIH sale closes the exit from insurance brokerage and reframes Truist as a pure banking franchise with two reportable segments, CSBB and WB, plus OT&C.

The filing itself contains no new forward-looking guidance. Investors should focus on the continuing-operations trends, including the asset quality normalization (NPLs at 0.44%c of loans, up 8 basis points) and the 0.50% net charge-off ratio, and on how the sale proceeds are deployed against the capital and dividend priorities the company has stated.

02—Key points

Key Highlights

  1. Recast of 2023 Form 10-K financials to present Truist Insurance Holdings (TIH) as discontinued operations, following the May 6, 2024 completion of the sale of its remaining equity interests.
  2. Segment realignment effective January 1, 2024: CB&W renamed Consumer and Small Business Banking (CSBB), C&CB renamed Wholesale Banking (WB), with Wealth moved into WB and small business client segmentation moved into CSBB; the former IH segment is no longer reported.
  3. 2023 net loss from continuing operations of $1.5 billion, versus net income of $5.8 billion in 2022, primarily due to a $6.1 billion non-cash, non-tax-deductible goodwill impairment charge.
  4. Net income from discontinued operations (TIH) was $456 million in 2023, compared with $488 million in 2022.
  5. Net loss available to common shareholders of $1.5 billion, or $(1.09) per diluted share, for 2023, versus $4.43 per share in 2022.
  6. Capital and balance sheet: CET1 ratio of 10.1% (up 110 bps, aided by the TIH minority stake sale), tangible book value per common share of $21.83 (up 21%), and continuing-operations total assets of $527.7 billion.
  7. Credit and funding: net charge-off ratio of 0.50% (up 23 bps), provision for credit losses of $2.1 billion, NPLs at 0.44% of loans HFI, and deposits down $17.6 billion to $395.9 billion.

03—Questions

Frequently Asked Questions

  1. Does this 8-K change Truist's 2023 reported results?

    No. The filing recasts the presentation of 2023 results to move TIH into discontinued operations and to reflect the segment realignment. It does not restate the company's total net loss, the goodwill impairment, or other reported 2023 amounts, and it does not update other 2023 Form 10-K disclosures. Continuing-operations figures will differ from the original 10-K presentation, but consolidated totals are unchanged.

  2. Why did Truist's 2023 net loss get reported as a loss from continuing operations?

    The 2023 continuing-operations loss of $1.5 billion reflects the $6.1 billion non-cash goodwill impairment on the CB&W (now CSBB) and C&CB (now WB) reporting units, which was driven by higher interest and discount rates and a decline in bank share prices. The impairment has no impact on regulatory capital ratios, liquidity, or the common dividend. The insurance business's results are now shown separately as discontinued operations.

  3. What does the TIH sale mean for Truist going forward?

    With the May 6, 2024 completion of the sale of its remaining TIH equity interests, Truist has exited insurance brokerage and is now a banking-focused company with CSBB and WB as its reportable segments. The proceeds support the company's stated capital priorities, which are client financial needs and the common dividend. The filing does not disclose the sale price or how the proceeds will be deployed.

  4. Should investors rely on this filing for updated 2024 outlook or guidance?

    No. The filing states it does not modify or update 2023 Form 10-K disclosures for developments after February 27, 2024, except for the recast. For current conditions, investors should review the Q1 2024 Form 10-Q filed May 9, 2024, subsequent 8-Ks, and the risk factors and forward-looking statements in the 10-K.

04—Continue

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