Business Combinations

12 Months Ended

Dec. 31, 2021

Business Combinations [Abstract]

Business Combination Disclosure

Business Combinations

Mergers and Acquisitions

On December 6, 2021, Truist acquired Service Finance, LLC for $2.0 billion in cash consideration, which resulted in $1.2 billion of goodwill and $647 million of identifiable intangible assets primarily representing client relationship intangibles in the CB&W segment. Fair value estimates related to the acquired assets and liabilities are subject to adjustment during the one-year measurement period following the closing of the acquisition. The identifiable intangible assets are being amortized over a term of 15 years based upon the estimated economic benefits received. Goodwill of $1.2 billion and identifiable intangible assets of $647 million are deductible for tax purposes.

On July 1, 2021, Truist acquired Constellation Affiliated Partners, which resulted in approximately $582 million of goodwill and $394 million of identifiable intangible assets in the IH segment. Fair value estimates related to the acquired assets and liabilities are subject to adjustment during the one-year measurement period following the closing of the acquisition. The identifiable intangible assets are being amortized over a term of 15 years based upon the estimated economic benefits received. Goodwill of $486 million and identifiable intangible assets of $261 million are deductible for tax purposes.

During 2020, Truist acquired several insurance companies, which resulted in $450 million of goodwill and $346 million of identifiable intangible assets in the IH segment. The identifiable intangible assets are being amortized over a term of 15 years based upon the estimated economic benefits received. Goodwill of $171 million and identifiable intangible assets of $160 million are deductible for tax purposes.

Effective December 6, 2019, the Company completed its Merger with SunTrust for $33.5 billion in stock consideration. The Merger was accounted for as a business combination. Results of operations are included from the effective date forward.

Branch Divestitures

In July 2020, Truist completed the divestiture of 30 branches to First Horizon Bank, a wholly owned subsidiary of First Horizon National Corporation, to satisfy regulatory requirements in connection with the Merger. The branches were located in North Carolina, Virginia, and Georgia. There were $425 million in loans and leases and $2.2 billion in deposits divested as part of this transaction.