In its first full quarter since it was formed in the merger of SunTrust and BB&T, Truist Financial (TFC -1.69%) reported $986 million of net income, a 31% increase compared to what the two banks reported individually in the first quarter of 2019. Revenue was $5.6 billion, up from $2.9 billion.

Truist's diluted earnings per share (EPS) was $0.73, a 24.7% decrease. The figure was dragged down by merger-related expenses and a spike in the provision for credit losses.

The bank's provision of credit loss in the first quarter was $893 million, up from $171 million for the prior year's quarter. The provision of credit losses is due to the recognition of an economic downturn and an increase in loans due to the COVID-19 pandemic.

The front of a bank with the word "bank" across the front with buildings in the background

Image source: Getty Images

"As a well-capitalized institution with a strong liquidity position, we have seen significant growth in loans as our commercial clients drew down their lines of credit and have also seen a flight to quality as many of our clients move funds out of the financial markets and into deposit accounts," Truist Chairman and CEO Kelly King said.

Truist has $350.2 billion in total deposits, up from $334.7 billion at the end of the fourth quarter and $319.2 billion in loans, up from $299.8 billion at the end of 2019.

The bank also has a liquidity coverage ratio (LCR) of 117%, which is well above the minimum standard of 85%. LCR is a stress test that measures a bank's ratio of high-quality liquid assets to meet its obligations.