Truist CEO Buys $1 Million in Stock as Bank Exits Near‑Prime Auto Lending

Truist Financial Corporation (NYSE: TFC) is attracting investor attention this week following two material developments: a strategic exit from its near‑prime auto lending business and a significant insider purchase by its CEO.
On September 15, Truist unveiled an agreement to sell $5.5 billion worth of near‑prime auto loans, largely tied to its subsidiary Regional Acceptance Corp. The transaction is projected to deliver $5.2 billion in net proceeds and recapture $535 million in loan loss reserves. This move underscores the bank’s broader strategic priority to reduce exposure to non‑strategic, lower‑margin lending segments as part of a refreshed positioning effort under incoming CEO Mike Lyons.
Separately, on September 18, Michael P. Lyons—recently elevated to President and CEO—executed an open‑market purchase of approximately $1.02 million worth of Truist stock. This purchase, comprising roughly 21,000 shares at around $48.36 each, signals a strong personal investment in the bank’s future.
Together, these developments reflect a calculated repositioning at Truist: scaling back risk‑weighted, subprime lending and reinforcing executive alignment with shareholders through buy‑in at the highest levels.

‘Exiting Near‑Prime’ Strategy Explained

Truist’s September 15 announcement detailed the decision to divest its near‑prime auto loan portfolio, valued at $5.5 billion. According to the bank’s filing, the move will bring significant net proceeds and recover reserves, as CFO Mike Maguire told the Barclays Global Financial Services Conference. This divestiture is part of a broader strategic review initiated earlier in the year, aimed at improving capital efficiency and refocusing on core, high‑return operations.
This news was first reported by Reuters and picked up by Boursorama, stating that the sale is expected to yield $5.2 billion in net proceeds and a $535 million reserve recovery. At the same time, Truist continues broader divestment of less profitable consumer lending platforms, including marine and recreational vehicle financing.
Industry coverage, including Banking Dive, highlighted that this pullback from near‑prime auto is closely linked to the renewed strategic urgency under Mike Lyons, who took over the CEO role in September.

CEO Lyons’ Stock Purchase: A Confidence Signal?

Just three days after the auto‑lending announcement, Mike Lyons acquired $1.02 million of Truist stock via open‑market purchase. InsiderFlow, referencing SEC Form 4 disclosures, confirms that this represents the first insider buy in the past 12 months and underscores Lyons’ public confidence in the bank’s strategic direction.
Lyons purchased the shares directly and not under a Rule 10b5‑1 plan, marking his personal belief in the firm’s prospects amid ongoing restructuring—a move that often resonates positively with investors as a sign of alignment between leadership and shareholders.

What This Means for Investors

These two announcements together offer rare clarity on both strategy and execution at a large regional bank. Exiting the near‑prime auto lending business may dampen lending volumes in the short term, but the infusion of liquidity and improved risk profile offer a path toward bolstered returns and operational focus.
Meanwhile, the CEO’s personal investment adds psychological weight to Truist’s commitment to this transformation. Importantly, this is not a speculative gesture: it comes on the heels of a defined strategic pivot and leadership change, painting a coherent narrative for the bank’s next phase.
Looking ahead, shareholders will watch for how Truist redeploys the proceeds—whether through reinvestment in higher‑margin areas like wealth and commercial banking, or via enhanced capital returns through buybacks or elevated dividends. TFC shares were trading at $47.66 as of September 25, reflecting today’s market price and a modest 0.8% gain.

Next Steps to Monitor

• Execution progress on the auto‑loan divestiture, especially confirmation of purchase agreement close and timing of net proceeds inflow.
• Reallocation of capital and strategic reinvestment—whether toward digital growth, wealth management, or buybacks.
• Subsequent insider activity and whether Lyons or other executives make further equity moves.

Truist’s dual moves—shrinking lower‑return credit exposures while signaling executive alignment through a sizable insider purchase—mark a noteworthy strategic pivot in the regional banking space.