Truist Financial in Charlotte, N.C., used proceeds from the sale of its insurance business to offset a restructuring of its balance sheet.
The $535 billion-asset company said in a press release that it sold $27.7 billion of lower-yielding investment securities at a $5.1 billion after-tax loss. The securities had a book value of $34.4 billion and a weighted average book yield of 2.80% for the remainder of 2024.
Truist invested about $18.7 billion into shorter-duration securities yielding 5.27%. The remaining $20.7 billion will be held in cash.
The restructuring followed the sale of the insurance business, which resulted in a $4.7 billion after-tax gain.
The company said that proceeds from the sale of the insurance business and the balance sheet repositioning will add $160 million to net interest income in the second quarter and $710 million during this year.
The moves led the company to adjust its outlook, estimating that second-quarter revenue should increase by about 1% from a quarter earlier. It had previously forecast a 2% decline.
Full-year revenue is expected to decline by 0.5%-1.5% from 2023, an improvement from the prior forecast of a 4%-5% decline.