Truist Financial has agreed to sell $5.5 billion of auto loans, effectively exiting near-prime lending through its Regional Acceptance subsidiary. The transaction is expected to produce $5.2 billion in net proceeds, a $535 million loan-loss-reserve recapture and an annual reduction of about 10 basis points in net charge-offs as a share of total loans. The deal is expected to close in the third or fourth quarter, although Truist has not identified the buyer. The move is part of CEO Michael Lyons' broader review of businesses that do not fit the bank's strategy or economics. Regional Acceptance's non-performing indirect auto loans reached $569 million in the second quarter, about one-third of Truist's total non-accruing assets. The bank has also stopped originating recreational and marine vehicle loans, while analysts expect further divestitures as Truist pursues stronger growth and profitability.