RECENT DEVELOPMENTS
Truists Fourth Quarter 2022 Financial Results
On January 19, 2023, we reported earnings for the fourth quarter of 2022. Outlined below is a summary of those results. Our fourth quarter
2022 consolidated financial results below are unaudited and preliminary. Such results are based on information available to management as of the date of the earnings report and is subject to completion by management of our financial statements as of
and for the year ended December 31, 2022. There can be no assurance that actual results for the fourth quarter will not differ from these preliminary financial data, including as a result
of year-end closing, and any such changes could be material. Complete yearly results will be included in our Annual Report on Form 10-K for the year ended
December 31, 2022, which we expect to file with the SEC on or before March 1, 2023, and which will contain more detailed information than is included below. Our fourth quarter 2022 consolidated financial results below should be read in
conjunction with our Quarterly Reports on Form 10-Q for the periods ended March 31, 2022, June 30, 2022 and September 30, 2022 and our Annual Report on
Form 10-K for the year ended December 31, 2021, which are incorporated by reference herein.
Earnings OverviewFourth Quarter 2022 Compared to Fourth Quarter 2021
Net income available to common shareholders for the fourth quarter of 2022 was $1.6 billion, up 5.6% from the fourth quarter of 2021,
which we refer to as the earlier quarter. Earnings per diluted common share were $1.20, an increase of 6.2% compared with the same period last year. Earnings for the current quarter include merger-related and restructuring charges of
$114 million ($87 million after-tax) and incremental operating expenses related to the merger with SunTrust Banks, Inc. of $56 million
($43 million after-tax).
Our results for the fourth quarter produced an annualized
return on average assets of 1.21%, an annualized return on average common shareholders equity of 11.7% and an annualized return on tangible common shareholders equity of 27.6%.
Total taxable-equivalent revenues were $6.3 billion for the fourth quarter of 2022, an increase of $668 million, or 12%, compared to
the earlier quarter.
Taxable equivalent net interest income for the fourth quarter of 2022 was up $764 million, or 23%, compared to
the earlier quarter primarily due to strong loan growth and higher market interest rates coupled with well controlled deposit costs. These increases were partially offset by lower purchase accounting accretion and lower Paycheck Protection Program
(PPP) revenue. Average earning assets increased $21.9 billion, or 4.7%, compared to the earlier quarter primarily due to growth in average total loans of $31.7 billion, or 10.9%, partially offset by a decrease in average
securities of $11.0 billion, or 7.2%. Average deposits increased $2.3 billion, or 0.6%, average short-term borrowings increased $19.2 billion, and average long-term debt increased $1.1 billion, or 2.9%, compared to the earlier
quarter.
Net interest margin was 3.25%, up 49 basis points compared to the earlier quarter. The yield on the total loan portfolio for the
fourth quarter of 2022 was 5.26%, up 147 basis points compared to the earlier quarter, primarily reflecting higher market interest rates, partially offset by lower purchase accounting accretion and lower PPP revenue. The yield on the average
securities portfolio was 2.08%, up 51 basis points compared to the earlier quarter primarily due to the higher rate environment.
The
average cost of total deposits was 0.66%, up 63 basis points compared to the earlier quarter. The average cost of short-term borrowings was 3.75%, up 320 basis points compared to the earlier quarter. The average cost of long-term debt was 3.42%, up
207 basis points compared to the earlier quarter. The increase in rates on deposits and other funding sources was largely attributable to the higher rate environment.
The provision for credit losses was $467 million, compared to a benefit of $103 million for the earlier quarter. The increase in the
current quarter provision expense primarily reflects a moderately slower economic
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