Truist to Sell $5.5B Near-Prime Auto Loan Portfolio, Exits RAC Business
TFC sits 22% above its 52-week low of $40.785.
Summary
Truist agreed to sell $5.5B of near-prime auto loans, exiting the RAC business. The deal adds $945MM of CET1 capital and modestly improves credit metrics.
Key Events · M&A and Partnerships · TFC
-
RAC Auto Loan Sale
Truist entered into an agreement to sell $5.5B of auto loans representing substantially all assets of Regional Acceptance Corporation, exiting near-prime auto lending.
-
Capital and Credit Impact
The sale generates $5.2B net proceeds, a $535MM loan loss reserve recapture, and $945MM (22 bps) of CET1 capital. NPLs fall by >10 bps and NCOs by ~10 bps annually.
-
Earnings Accretion
Strategic actions are expected to create modest earnings and ROTCE accretion in 2027, with 3Q26 and 2026 outlook unchanged excluding these actions.
-
Closing Timeline
Closing is anticipated in late 3Q26 or early 4Q26, subject to customary closing conditions.
Analysis · TFC · Finance
Truist is exiting the near-prime auto lending business by selling substantially all assets of Regional Acceptance Corporation for $5.5B in loans. The deal generates $5.2B in net proceeds, recaptures $535MM in loan loss reserves, and creates $945MM (22 bps) of CET1 capital. It also reduces NPLs by more than 10 bps and NCOs by roughly 10 bps annually. The transaction sharpens strategic focus on core banking, strengthens the balance sheet, and is expected to be modestly accretive to earnings and ROTCE in 2027. The 2026 share repurchase target remains unchanged at $5B.
How filings like this one have moved
In the 30 days to Sep 15, 2026, 29.9% of the 1678 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.25%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, TFC was trading at $49.75 on NYSE in the Finance sector, with a market capitalization of approximately $61.2B. The 52-week trading range was $40.79 to $56.20. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.