Truist to Sell $5.5 Billion of Loans as It Exits Near-Prime Auto Lending
By Colin Kellaher
Truist Financial has inked a deal to sell $5.5 billion of auto loans as part of the regional bank's decision to exit the near-prime auto lending business.
Truist on Tuesday said it expects the sale, which represents substantially all assets of its Regional Acceptance auto-finance unit, to generate net proceeds of $5.2 billion, along with a $535 million loan-loss-reserve recapture.
Regional Acceptance generated breakeven pretax earnings in the first half of the year, Truist said.
The Charlotte, N.C., company said the move will reduce non-performing loans as of June 30 by more than 10 basis points and reduce net charge-offs by about 10 basis points a year.
The sale is slated to close by the end of the year.
Truist, which earlier this year exited marine and recreational-vehicle lending, said it plans to use proceeds from the sale of the auto loans to repay wholesale borrowings, adding that it is continuing its broader strategic review.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
September 15, 2026 07:53 ET (11:53 GMT)
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