Truist Earnings: After Insurance Business Sale and Stronger Capital Ratios, Repurchases Are Resuming

After closing on the sale of its remaining stake in Truist Insurance Holdings and booking an after-tax gain of $4.8 billion, Truist repositioned its balance sheet, increasing its net interest income, and announced a repurchase authorization of up to $5 billion through 2026. The company reported net income to common shareholders of $826 million, or $0.62 per diluted share. Adjusting for unusual items in the quarter, such as losses related to repositioning its balance sheet by selling low-yielding securities at a loss and reinvesting proceeds into higher yielding securities, the company had adjusted earnings per share from continuing operations of $0.91. We don't anticipate making a material change to our $46 fair value estimate for narrow-moat Truist, and we assess shares are fairly valued.