Loans and ACL

12 Months Ended

Dec. 31, 2021

Receivables [Abstract]

Loans and ACL

Loans and ACLThe following tables present loans and leases HFI by aging category. Government guaranteed loans are not placed on nonperforming status regardless of delinquency because collection of principal and interest is reasonably assured. The past due status of loans that received a deferral under the CARES Act is generally frozen during the deferral period. In certain limited circumstances, accommodation programs result in the delinquency status being reset to current.

	Accruing
December 31, 2021 (Dollars in millions)	Current		30-89 Days Past Due		90 Days Or More Past Due (1)		Nonperforming		Total
Commercial:
Commercial and industrial	$	138,225	$	130	$	13	$	394	$	138,762
CRE	23,902		20		—		29		23,951
Commercial construction	4,962		2		—		7		4,971
Consumer:
Residential mortgage	46,033		514		1,009		296		47,852
Residential home equity and direct	24,809		107		9		141		25,066
Indirect auto	25,615		607		1		218		26,441
Indirect other	10,811		64		3		5		10,883
Student	5,357		555		868		—		6,780
Credit card	4,735		45		27		—		4,807
Total	$	284,449	$	2,044	$	1,930	$	1,090	$	289,513
(1)Includes government guaranteed loans of $978 million in the residential mortgage portfolio and $865 million in the student portfolio.
	Accruing
December 31, 2020 (Dollars in millions)	Current		30-89 Days Past Due		90 Days Or More Past Due (1)		Nonperforming		Total
Commercial:
Commercial and industrial	$	142,932	$	89	$	13	$	560	$	143,594
CRE	26,506		14		—		75		26,595
Commercial construction	6,472		5		—		14		6,491
Consumer:
Residential mortgage	45,333		782		841		316		47,272
Residential home equity and direct	25,751		98		10		205		26,064
Indirect auto	25,498		495		2		155		26,150
Indirect other	11,102		68		2		5		11,177
Student	5,823		618		1,111		—		7,552
Credit card	4,759		51		29		—		4,839
Total	$	294,176	$	2,220	$	2,008	$	1,330	$	299,734
(1)Includes government guaranteed loans of $787 million in the residential mortgage portfolio and $1.1 billion in the student portfolio.

The following tables present the amortized cost basis of loans by origination year and credit quality indicator:

December 31, 2021 (Dollars in millions)	Amortized Cost Basis by Origination Year												Revolving Credit		Loans Converted to Term		Other (1)
	2021		2020		2019		2018		2017		Prior								Total
Commercial:
Commercial and industrial:
Pass	$	35,530	$	17,430	$	14,105	$	8,994	$	5,633	$	9,424	$	43,035	$	—	$	(169)	$	133,982
Special mention	195		221		326		317		46		70		691		—		—		1,866
Substandard	352		356		395		197		91		335		794		—		—		2,520
Nonperforming	50		19		49		42		16		34		184		—		—		394
Total	36,127		18,026		14,875		9,550		5,786		9,863		44,704		—		(169)		138,762
CRE:
Pass	4,836		2,946		5,109		3,201		1,774		2,131		762		—		(61)		20,698
Special mention	13		118		483		247		44		83		—		—		—		988
Substandard	321		264		523		528		321		279		—		—		—		2,236
Nonperforming	1		1		11		—		9		7		—		—		—		29
Total	5,171		3,329		6,126		3,976		2,148		2,500		762		—		(61)		23,951
Commercial construction:
Pass	1,113		1,179		1,259		419		44		95		558		—		12		4,679
Special mention	—		14		72		50		—		—		—		—		—		136
Substandard	7		13		45		67		17		—		—		—		—		149
Nonperforming	—		—		1		—		5		—		—		—		1		7
Total	1,120		1,206		1,377		536		66		95		558		—		13		4,971
Consumer:
Residential mortgage:
Current	$	17,271	$	6,798	$	3,642	$	1,753	$	2,237	$	14,240	$	—	$	—	$	92	$	46,033
30 - 89 days past due	58		31		32		40		31		322		—		—		—		514
90 days or more past due	3		44		91		133		95		643		—		—		—		1,009
Nonperforming	1		5		18		27		20		226		—		—		(1)		296
Total	17,333		6,878		3,783		1,953		2,383		15,431		—		—		91		47,852
Residential home equity and direct:
Current	4,962		2,630		1,717		691		189		425		10,757		3,388		50		24,809
30 - 89 days past due	8		8		10		3		1		3		53		21		—		107
90 days or more past due	—		—		—		—		—		—		5		4		—		9
Nonperforming	2		3		4		1		—		7		48		75		1		141
Total	4,972		2,641		1,731		695		190		435		10,863		3,488		51		25,066
Indirect auto:
Current	10,699		6,691		4,293		2,158		1,081		504		—		—		189		25,615
30 - 89 days past due	119		138		145		97		56		52		—		—		—		607
90 days or more past due	—		—		—		—		—		1		—		—		—		1
Nonperforming	28		48		61		41		21		19		—		—		—		218
Total	10,846		6,877		4,499		2,296		1,158		576		—		—		189		26,441
Indirect other:
Current	4,333		2,724		1,638		937		455		691		—		—		33		10,811
30 - 89 days past due	14		15		15		12		4		4		—		—		—		64
90 days or more past due	1		1		1		—		—		—		—		—		—		3
Nonperforming	1		1		1		—		—		2		—		—		—		5
Total	4,349		2,741		1,655		949		459		697		—		—		33		10,883
Student:
Current	—		21		88		73		61		5,122		—		—		(8)		5,357
30 - 89 days past due	—		—		1		1		1		552		—		—		—		555
90 days or more past due	—		—		—		—		1		867		—		—		—		868
Total	—		21		89		74		63		6,541		—		—		(8)		6,780
Credit card:
Current													4,711		24		—		4,735
30 - 89 days past due													43		2		—		45
90 days or more past due													26		1		—		27
Total	—		—		—		—		—		—		4,780		27		—		4,807
Total	$	79,918	$	41,719	$	34,135	$	20,029	$	12,253	$	36,138	$	61,667	$	3,515	$	139	$	289,513

December 31, 2020 (Dollars in millions)	Amortized Cost Basis by Origination Year												Revolving Credit		Loans Converted to Term		Other (1)
	2020		2019		2018		2017		2016		Prior								Total
Commercial:
Commercial and industrial:
Pass	$	36,235	$	20,020	$	14,087	$	8,459	$	5,415	$	9,648	$	42,780	$	231	$	(552)	$	136,323
Special mention	472		473		363		103		120		164		1,808		5		(1)		3,507
Substandard	461		479		342		125		147		287		1,353		12		(2)		3,204
Nonperforming	40		97		51		38		29		66		233		4		2		560
Total	37,208		21,069		14,843		8,725		5,711		10,165		46,174		252		(553)		143,594
CRE:
Pass	4,563		6,600		4,427		2,752		1,473		2,096		617		—		(69)		22,459
Special mention	171		599		585		116		77		141		—		—		—		1,689
Substandard	410		776		438		281		182		280		5		—		—		2,372
Nonperforming	1		15		1		9		6		43		—		—		—		75
Total	5,145		7,990		5,451		3,158		1,738		2,560		622		—		(69)		26,595
Commercial construction:
Pass	1,052		2,141		1,889		232		27		110		534		—		2		5,987
Special mention	—		108		64		1		—		—		2		—		—		175
Substandard	70		106		73		59		6		1		—		—		—		315
Nonperforming	1		3		—		7		—		—		—		3		—		14
Total	1,123		2,358		2,026		299		33		111		536		3		2		6,491
Consumer:
Residential mortgage:
Current	8,141		6,586		3,569		4,235		5,252		17,386		—		—		164		45,333
30 - 89 days past due	34		69		68		59		74		478		—		—		—		782
90 or more days past due	22		74		98		80		98		469		—		—		—		841
Nonperforming	3		13		16		13		14		257		—		—		—		316
Total	8,200		6,742		3,751		4,387		5,438		18,590		—		—		164		47,272
Residential home equity and direct:
Current	4,507		3,109		1,408		479		213		554		13,843		1,591		47		25,751
30 - 89 days past due	6		16		7		2		1		3		38		25		—		98
90 days or more past due	—		1		1		—		—		—		5		3		—		10
Nonperforming	1		4		2		1		1		7		87		101		1		205
Total	4,514		3,130		1,418		482		215		564		13,973		1,720		48		26,064
Indirect auto:
Current	10,198		7,283		3,898		2,327		1,178		467		—		—		147		25,498
30 - 89 days past due	72		153		117		74		42		37		—		—		—		495
90 days or more past due	—		—		—		—		—		2		—		—		—		2
Nonperforming	13		50		44		27		15		12		—		—		(6)		155
Total	10,283		7,486		4,059		2,428		1,235		518		—		—		141		26,150
Indirect other:
Current	4,419		2,998		1,687		818		428		713		—		—		39		11,102
30 - 89 days past due	14		20		18		8		3		5		—		—		—		68
90 days or more past due	—		1		1		—		—		—		—		—		—		2
Nonperforming	1		1		1		—		—		2		—		—		—		5
Total	4,434		3,020		1,707		826		431		720		—		—		39		11,177
Student:
Current	22		110		93		80		63		5,460		—		—		(5)		5,823
30 - 89 days past due	—		—		1		1		1		615		—		—		—		618
90 days or more past due	—		—		1		—		—		1,110		—		—		—		1,111
Total	22		110		95		81		64		7,185		—		—		(5)		7,552
Credit card:
Current													4,727		32		—		4,759
30 - 89 days past due													48		3		—		51
90 days or more past due													27		2		—		29
Total	—		—		—		—		—		—		4,802		37		—		4,839
Total	$	70,929	$	51,905	$	33,350	$	20,386	$	14,865	$	40,413	$	66,107	$	2,012	$	(233)	$	299,734

(1)Includes certain deferred fees and costs, unapplied payments, and other adjustments.

ACL

The following tables present activity in the ACL:

(Dollars in millions)	Balance at Jan 1, 2019		Charge-Offs		Recoveries		Provision (Benefit)		Other (1)		Balance at Dec 31, 2019
Commercial:
Commercial and industrial	$	557	$	(101)	$	26	$	88	$	—	$	570
CRE	142		(33)		5		36		—		150
Commercial construction	48		—		3		1		—		52
Consumer:
Residential mortgage	232		(21)		2		(37)		—		176
Residential home equity and direct	104		(93)		30		66		—		107
Indirect auto	298		(370)		52		324		—		304
Indirect other	58		(62)		17		47		—		60
Credit card	110		(109)		20		101		—		122
PCI	9		—		—		(1)		—		8
ALLL	1,558		(789)		155		625		—		1,549
RUFC	93		—		—		(10)		257		340
ACL	$	1,651	$	(789)	$	155	$	615	$	257	$	1,889
(Dollars in millions)	Balance at Jan 1, 2020		Charge-Offs		Recoveries		Provision (Benefit)		Other (1)		Balance at Dec 31, 2020
Commercial:
Commercial and industrial	$	570	$	(412)	$	96	$	952	$	998	$	2,204
CRE	150		(78)		5		414		82		573
Commercial construction	52		(30)		11		32		16		81
Consumer:
Residential mortgage	176		(56)		10		(27)		265		368
Residential home equity and direct	107		(231)		66		318		454		714
Indirect auto	304		(378)		87		367		818		1,198
Indirect other	60		(60)		23		35		150		208
Student	—		(23)		1		23		129		130
Credit card	122		(182)		32		212		175		359
PCI	8		—		—		—		(8)		—
ALLL	1,549		(1,450)		331		2,326		3,079		5,835
RUFC	340		—		—		9		15		364
ACL	$	1,889	$	(1,450)	$	331	$	2,335	$	3,094	$	6,199
(Dollars in millions)	Balance at Jan 1, 2021		Charge-Offs		Recoveries		Provision (Benefit)		Other (1)		Balance at Dec 31, 2021
Commercial:
Commercial and industrial	$	2,204	$	(243)	$	107	$	(642)	$	—	$	1,426
CRE	573		(10)		6		(219)		—		350
Commercial construction	81		(2)		4		(31)		—		52
Consumer:
Residential mortgage	368		(23)		12		(49)		—		308
Residential home equity and direct	714		(214)		79		36		—		615
Indirect auto	1,198		(336)		92		68		—		1,022
Indirect other	208		(57)		24		20		—		195
Student	130		(24)		1		4		6		117
Credit card	359		(150)		37		104		—		350
ALLL	5,835		(1,059)		362		(709)		6		4,435
RUFC	364		—		—		(104)		—		260
ACL	$	6,199	$	(1,059)	$	362	$	(813)	$	6	$	4,695

(1)Includes the amounts assumed in the Merger, adoption of CECL, the ALLL for PCD acquisitions, and other activity.

The commercial ALLL decreased $1.0 billion for the year ended December 31, 2021. The decrease reflects an improving economic outlook and lower loan balances.

The consumer ALLL decreased $361 million for the year ended December 31, 2021. The decrease reflects an improving economic outlook and lower loan balances primarily in the home equity and direct portfolio.

The RUFC decreased $104 million for the year ended December 31, 2021. The decreases reflect an improving economic outlook.

The quantitative models have been designed to estimate losses using macro-economic forecasts over a reasonable and supportable forecast period of two years, followed by a reversion to long-term historical loss conditions over a one-year period. These macro-economic forecasts include a number of key economic variables utilized in loss forecasting that include, but are not limited to, unemployment trends, US real GDP, corporate credit spreads, rental rates, property values, the primary 30-year mortgage rate, home price indices, and used car prices.

The primary economic forecast incorporates a third-party baseline forecast that is adjusted to reflect Truist’s interest rate outlook. Management also considers optimistic and pessimistic third-party macro-economic forecasts in order to capture uncertainty in the economic environment. These forecasts, along with the primary economic forecast, are weighted 40% baseline, 30% optimistic, and 30% pessimistic in the December 31, 2021 ACL. The primary economic forecast shaping the ACL estimate at December 31, 2021 included GDP growth starting in the mid-high single digits declining to the low single digits by the end of 2022, and an improving unemployment rate starting in the mid-single digits and improving through the end of the reasonable and supportable period.

Quantitative models have certain limitations with respect to estimating expected losses, particularly in times of rapidly changing macro-economic conditions and forecasts. As a result, management believes that the qualitative component of the ACL, which incorporates management’s expert judgment related to expected future credit losses, will continue to be an important component of the ACL for the foreseeable future. The December 31, 2021 ACL estimate includes adjustments to consider the impact of current and expected events or risks not captured by the loss forecasting models, the outcomes of which are uncertain and may not be completely considered by quantitative models. Refer to “Note 1. Basis of Presentation” for additional information.

PCD Loan Activity

For PCD loans, the initial estimate of expected credit losses is recognized in the ALLL on the date of acquisition using the same methodology as other loans held for investment. The following table provides a summary of purchased student loans with credit deterioration at acquisition:

Year Ended December 31, (Dollars in millions)
Par value	$	424
ALLL at acquisition	(6)
Non-credit premium (discount)	3
Purchase price	$	421

NPAs

The following table provides a summary of nonperforming loans, excluding LHFS. Interest income recognized on nonperforming loans HFI was immaterial for the year ended December 31, 2021 and 2020, respectively.

	2021				2020
	Recorded Investment				Recorded Investment
December 31, (Dollars in millions)	Without an ALLL		With an ALLL		Without an ALLL		With an ALLL
Commercial:
Commercial and industrial	$	125	$	269	$	82	$	478
CRE	12		17		63		12
Commercial construction	—		7		—		14
Consumer:
Residential mortgage	4		292		4		312
Residential home equity and direct	3		138		2		203
Indirect auto	1		217		1		154
Indirect other	—		5		—		5
Total	$	145	$	945	$	152	$	1,178

The following table presents a summary of nonperforming assets and residential mortgage loans in the process of foreclosure.

December 31, (Dollars in millions)	2021		2020
Nonperforming loans and leases HFI	$	1,090	$	1,330
Nonperforming LHFS	22		5
Foreclosed real estate	8		20
Other foreclosed property	43		32
Total nonperforming assets	$	1,163	$	1,387
Residential mortgage loans in the process of foreclosure	$	135	$	140

TDRs

The following table presents a summary of TDRs:

December 31, (Dollars in millions)	2021		2020
Performing TDRs:
Commercial:
Commercial and industrial	$	147	$	138
CRE	5		47
Consumer:
Residential mortgage	692		648
Residential home equity and direct	98		88
Indirect auto	389		392
Indirect other	7		6
Student	25		5
Credit card	27		37
Total performing TDRs	1,390		1,361
Nonperforming TDRs	152		164
Total TDRs	$	1,542	$	1,525
ALLL attributable to TDRs	$	102	$	132

The primary type of modification for newly designated TDRs is summarized in the tables below. New TDR balances represent the recorded investment at the end of the quarter in which the modification was made. The prior quarter balance represents recorded investment at the beginning of the quarter in which the modification was made. Rate modifications consist of TDRs made with below market interest rates, including those that also have modifications of loan structures.

	As of / For the Year Ended December 31, 2021
(Dollars in millions)	Type of Modification				Prior Quarter Loan Balance		ALLL at Period End
	Rate		Structure
Newly designated TDRs:
Commercial	$	35	$	130	$	193	$	17
Consumer	284		312		606		36
Credit card	11		—		12		5
Re-modification of previously designated TDRs	61		38
	As of / For the Year Ended December 31, 2020
	Type of Modification				Prior Quarter Loan Balance		ALLL at Period End
(Dollars in millions)	Rate		Structure
Newly designated TDRs:
Commercial	$	89	$	176	$	290	$	24
Consumer	543		240		797		49
Credit card	29		—		28		10
Re-modification of previously designated TDRs	41		22
	As of / For the Year Ended December 31, 2019
	Type of Modification				Prior Quarter Loan Balance		ALLL at Period End
(Dollars in millions)	Rate		Structure
Newly designated TDRs:
Commercial	$	93	$	12	$	101	$	15
Consumer	445		38		493		64
Credit card	24		—		18		9
Re-modification of previously designated TDRs	53		23

Charge-offs and forgiveness of principal and interest for TDRs were immaterial for all periods presented. The amount of modified loans that were classified as TDRs during the previous 12 months and experienced a payment default for year ended December 31, 2021, 2020, and 2019 was immaterial. Payment default is defined as movement of the TDR to nonperforming status, foreclosure, or charge-off, whichever occurs first.

Unearned Income, Discounts, and Net Deferred Loan Fees and Costs

The following table presents additional information about loans and leases:

December 31, (Dollars in millions)	2021		2020
Unearned income, discounts, and net deferred loan fees and costs	$	849	$	2,219