Truist Reports Q3 Commercial Portfolio Decline Despite Growth in Equipment Finance

In its Q3/20 earnings report, Truist Financial revealed that average loans and leases held for investment for Q3/20 were $310.4 billion, down $11.2 billion compared with Q2/20, primarily due to a decline in the commercial portfolio.

The decline in the commercial portfolio was primarily in commercial and industrial loans and reflects the repayment of revolver usage. Within the commercial and industrial portfolio, Truist experienced growth in loans from mortgage warehouse lending due to the decline in rates and increased refinance activity, as well as growth in premium finance lending and equipment finance lending. Growth in these portfolios was partially offset by a decline in dealer floor plan lending.

Truist also reported net income available to common shareholders of $1.1 billion, which was up 45.3% compared with the third quarter last year. In addition, the company reported adjusted net income available to common shareholders of $1.3 billion, excluding merger-related and restructuring charges of $236 million ($181 million after-tax), incremental operating expenses related to the merger of $152 million ($115 million after-tax), securities gains of $104 million ($80 million after-tax) and a charitable contribution of $50 million ($38 million after-tax).

“We are pleased to report strong performance for the quarter, particularly given the challenging environment,” Kelly S. King, chairman and CEO of Truist Financial, said. “Our earnings reflect a modest build in our allowance for loan and lease losses, benefiting from our relatively stable asset quality. We also benefited from our diverse noninterest-income generating businesses and disciplined core expense control.”

Truist’s entire Q3/20 earnings report can be found here.

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