Truist Sold $5.5 Billion in Auto Loans
The bank will divest its near-prime lending unit to boost capital and refocus on corporate businesses.
Updated on Sept. 29, 2026 in Buying/Selling
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Truist has reached an agreement to sell $5.5 billion in auto loans to Apollo Global Management for $5.2 billion in net proceeds. The deal involves the sale of the Regional Acceptance unit as the bank works to trim non-core business lines.
Why it matters
The move is designed to improve capital efficiency and reduce credit risk by shedding less profitable assets. By offloading these auto loans, Truist plans to bolster its balance sheet and concentrate resources on its core deposit franchise.
The transaction includes $5.2 billion in net proceeds and releases $535 million from loan-loss reserves. The bank currently reports a 1.73% net charge-off rate for its indirect auto loans.
The players
Truist
Truist is a major American bank formed by the merger of BB&T and SunTrust that provides a variety of financial services including retail, small business, and commercial banking.
Mike Lyons
Mike Lyons is the chief executive officer of Truist who assumed the role in September 2026.
Apollo Global Management
Apollo Global Management is a global alternative investment manager that specializes in credit, private equity, and real estate markets.
Regional Acceptance
Regional Acceptance is a specialized auto-lending unit focused on the near-prime consumer market.
The details
Truist will sell substantially all assets of Regional Acceptance, its near-prime auto-lending arm that posted roughly breakeven earnings in the first half of 2026. The funds generated from the sale will be used to repay wholesale borrowings and strengthen the bank's regulatory capital position.
Timeline
September 1, 2026: CEO Mike Lyons received restricted stock-unit grants.
September 15, 2026: Truist filed the regulatory disclosure regarding the sale.
September 17, 2026: CEO Mike Lyons purchased $1.01 million in company stock.
Late Q3 or early Q4 2026: The loan sale is expected to close.
Roadmap
This divestiture aligns with a broader industry trend where traditional retail banks shed secondary lending units to prioritize institutional business lines. By exiting the volatile near-prime auto sector, Truist shifts its operational focus toward areas with lower credit risk and higher capital efficiency.
Customers of the Regional Acceptance unit should expect a transition in loan servicing as the portfolio moves to its new owner. The bank's focus on its core franchise may lead to future shifts in product offerings or interest rates for existing Truist retail clients.
The takeaway
Truist's pivot indicates a strategic retreat from higher-risk consumer lending in favor of a more stable corporate-focused balance sheet. Investors should monitor how the company balances this capital-heavy restructuring with its $5 billion annual stock repurchase commitment.
What happens next
The transaction is expected to finalize in late Q3 or early Q4 2026, at which point the final financial impact on the bank's Tier 1 capital ratio will be confirmed.
Further reading
Explore more developments in corporate finance by visiting our Buying/Selling section.
Source note: This article includes information reported by International Business Times UK.
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