Truist Financial agreed to sell $5.5 billion of auto loans as part of its exit from near-prime auto lending, according to disclosures released on 15 September. The portfolio represents substantially all assets of Regional Acceptance Corporation. Completion remains subject to customary conditions.
The disposal follows earlier reductions in consumer lending businesses. Truist stopped originating marine and recreational-vehicle loans in the second quarter, Banking Dive reported. It also reduced originations in other lending segments as management reviewed their profitability and strategic fit.
CAPITAL AND RESERVE EFFECTS
The bank estimated net proceeds of $5.2 billion and a $535 million loan-loss reserve recapture. Its presentation projected $945 million of additional common equity tier 1 capital, equivalent to 22 basis points.
Those estimates do not represent cash proceeds of $5.5 billion. Truist described possible repayment of wholesale borrowing and repositioning of available-for-sale securities as illustrative deployment actions dependent on market conditions.
STRATEGIC REVIEW CONTINUES
Chief financial officer Mike Maguire said the wider review remained active, according to Banking Dive. Regional Acceptance’s limited opportunities for broader customer relationships were among the considerations behind the exit.
Truist expects closing late in the third quarter or early in the fourth quarter of 2026. The bank projects modest earnings and return-on-tangible-common-equity benefits from its strategic actions in 2027; these remain forecasts.