Truist Financial is selling its auto loan portfolio, valued at $5,5 billion, to Regional Acceptance Corporation. The bank expects the transaction to close in the third or fourth quarter, pending standard closing conditions. This move represents the sale of substantially all assets belonging to the bank’s national auto finance affiliate.
The divestment is part of a broader strategic review aimed at exiting non-core, less profitable business segments. Truist previously discontinued its marine and recreational vehicle loan operations. The bank intends to use the proceeds from this sale to repay wholesale borrowings and improve its overall capital efficiency.
The deal is expected to strengthen the bank’s balance sheet by enhancing liquidity and funding profiles. As of June 30, the sale is projected to reduce non-performing loans by more than 10 basis points and decrease annual net charge-offs by approximately 10 basis points. Regional Acceptance Corporation reported pre-tax earnings near breakeven for the first half of the year.
Truist executives stated that the bank is shifting its focus toward commercial borrowers to drive growth in deposits, payments, and liquidity services. CFO Mike Maguire noted that the strategic review also includes rebalancing wholesale banking operations through refined client selection, pricing, and product design.
