Truist Financial (TFC) said Tuesday it agreed to sell $5.5 billion of auto loans representing substantially all the assets of its Regional Acceptance unit.

The company said the deal is expected to close in late Q3 or early Q4 and to generate about $5.2 billion of net proceeds along with a $535 million release of loan-loss reserves.

The sale is expected to increase its equity Tier 1 capital ratio by about 22 basis points and reduce non-performing loans by more than 10 basis points as of June 30, the company said.

It is also expected to reduce annual net charge-offs by about 10 basis points.

Truist said its Q3 and full-year 2026 outlook remains unchanged, excluding the impact of the strategic actions.

The company said it expects the actions to modestly increase earnings and return on tangible common equity in 2027.