Mergers & Acquisitions ·
Truist Financial Corporation announced an agreement to sell approximately $5.5 billion of near-prime auto loans…
TFCTruist Financial Corp
Truist Financial Corporation announced an agreement to sell approximately $5.5 billion of near-prime auto loans, representing substantially all assets of Regional Acceptance Corporation (RAC). The transaction is expected to close in late third quarter or early fourth quarter 2026. The sale will generate $5.2 billion in net proceeds and a $535 million loan loss reserve recapture, creating approximately $945 million or 22 basis points of CET1 capital. Truist plans to use the proceeds to repay wholesale borrowings and reposition available-for-sale securities to offset the capital increase. The company stated that its third quarter 2026 and full-year 2026 outlook remain unchanged excluding this strategic action, while anticipating modest earnings accretion in 2027. Truist Financial Corporation operates as a diversified financial services holding company providing banking, wealth management, and insurance products.