TRUIST FINANCIAL CORPTFC

TRUIST FINANCIAL CORP Debt Disclosure

10-KFiled Feb 24, 20262 min read
Borrowings
Short-Term Borrowings

The types of short-term borrowings that have been, or may be, used by the Company include Federal funds purchased, securities sold under repurchase agreements, master notes, commercial paper, short-term bank notes, and short-term FHLB advances. The carrying value of FHLB advances classified as short-term borrowings was $22.1 billion and $17.4 billion at December 31, 2025 and 2024, respectively. Additionally, securities sold short, which are used for client-related trading activities, are classified as Short-term borrowings in the Consolidated Balance Sheets. Refer to “Note 18. Fair Value Disclosures” for additional information on securities sold short and “Note 3. Securities Financing Activities” for information on securities sold under repurchase agreements.

Long-Term Debt

The types of long-term debt that have been, or may be, used by the Company include fixed and floating rate senior and subordinated notes and FHLB advances, which are typically prepayable and may be used for short-term liquidity management. The majority of long-term debt is redeemable at our option at one or more dates prior to contractual maturity. The effective rate is calculated based on the weighted-average yield, includes the impact of purchase accounting and excludes hedge accounting impacts. The following table presents a summary of long-term debt:

(Dollars in millions)Dec 31, 2025Dec 31, 2024
Effective RateCarrying AmountCarrying Amount
Maturity
Truist Financial Corporation:
Fixed rate senior notes2027to20364.82 %$20,093 $22,134 
Fixed rate subordinated notes202620334.36 1,818 1,828 
Capital notes202720285.64 639 634 
Truist Bank:
Fixed rate senior notes202720334.48 4,476 1,744 
Floating rate senior notes202820284.54 499 — 
Fixed rate subordinated notes202620303.20 3,553 4,771 
Floating rate FHLB advances
202620273.90 9,450 2,400 
Other long-term debt(1)
1,435 1,445 
Total long-term debt$41,963 $34,956 
(1)Includes debt associated with finance leases and tax credit investments.

In January 2026, the Parent Company issued $1.3 billion principal amount of fixed-to-floating rate senior notes with an interest rate of 4.60% due January 27, 2032. Additionally, Truist Bank issued $1.3 billion principal amount of fixed-to-floating rate senior notes with an interest rate of 4.14% due January 27, 2029 and $350 million principal amount of floating rate senior notes due January 27, 2029.

In February 2026, the Parent Company announced that it will redeem $1.3 billion principal amount of senior notes due on March 2, 2027 on the redemption date of March 2, 2026.
The following table presents future debt maturities:

(Dollars in millions)20262027202820292030Thereafter
Future debt maturities
Truist Financial Corporation$200 $3,834 $1,083 $4,876 $2,247 $10,310 
Truist Bank(1)
4,534 7,802 2,008 1,991 1,207 1,875 
Total long-term debt$4,734 $11,636 $3,091 $6,867 $3,454 $12,185 
(1)Amounts include imputed interest of $4 million related to finance leases.

Historical Timeline

Fiscal YearFiled
2025Feb 24, 2026Showing above
2024Feb 25, 2025
2023Feb 27, 2024
2022Feb 28, 2023
2021Feb 23, 2022
2020Feb 24, 2021
2019Mar 3, 2020
2018Feb 26, 2019
2017Feb 21, 2018
2016Feb 21, 2017
2015Feb 25, 2016

About Debt Disclosures

Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.

Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.

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