Company: TFC
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0000092230-25-000020
Chunk: 368

Company: TRUIST FINANCIAL CORP
Filing Date: 2025-02-25
Form: 10-K
Item: Item 7A
Chunk 368
---
 and consideration of offers from the borrower to provide additional collateral or guarantor support. The credit evaluation could also include review of cash flow projections, consideration of the adequacy of collateral to cover all principal and interest, and trends indicating improving profitability and collectability of receivables.The evaluation of mortgage and other consumer loans included an evaluation of the client’s debt-to-income ratio, credit report, property value and certain other client-specific factors that impact the clients’ ability to make timely principal and interest payments on the loan.

100   Truist Financial Corporation

NPAsNPAs include NPLs and foreclosed property. Foreclosed property consists of real estate and other assets acquired as a result of clients’ loan defaults. Truist’s policies for placing loans on nonperforming status conform to guidelines prescribed by bank regulatory authorities. Truist classifies loans and leases as past due when the payment of principal and interest based upon contractual terms is greater than 30 days delinquent or if one payment is past due. The following table summarizes the delinquency thresholds that are a factor used in evaluating nonperforming classification and the timing of charge-off evaluations:(number of days)Placed on Nonperforming(1)(2)Evaluated for Charge-off(2)Commercial:Commercial and industrial90(3)90(3)CRE90(3)90(3)Commercial construction90(3)90(3)Consumer:Residential mortgage(4)90to18090to180Home equity(4)90to12090to180Indirect auto(4)90120Other consumer(4)90to12090to120Student(5)(6)NA120to180Credit card(7)NA90to180(1)Loans may be returned to performing status when (i) the borrower has resumed paying the full amount of the scheduled contractual interest and principal payments, (ii) management concludes that all principal and interest amounts contractually due (including arrearages) are reasonably assured of repayment, and (iii) there is a sustained period of repayment performance, generally a minimum of six months.(2)The timing of nonperforming and charge-off evaluations are accelerated in circumstances where the borrower has filed for bankruptcy.(3)Or when it is probable that principal or interest is not fully collectible, whichever occurs first.(4)Depends on product type, loss mitigation status, status of the government guaranty, if applicable, and certain other product-specific factors.(5)Student loans are not placed in non