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Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The following table presents the gross notional amounts and estimated fair value of derivative instruments employed by the Company. Truist held no cash flow hedges as of December 31, 2021 and December 31, 2020.





	2021						2020
December 31, (Dollars in millions)	Notional Amount		Fair Value				Notional Amount		Fair Value
			Gain		Loss				Gain		Loss



Fair value hedges:
Interest rate contracts:
Swaps hedging long-term debt	$	12,690	$	—	$	(6)	$	—	$	—	$	—


Swaps hedging AFS securities	12,711		—		(2)		17,765		—		—


Total	25,401		—		(8)		17,765		—		—
Not designated as hedges:
Client-related and other risk management:
Interest rate contracts:
Swaps	150,223		1,716		(733)		156,338		3,399		(862)

Options	23,659		43		(30)		25,386		45		(18)
Forward commitments	2,404		2		(5)		4,847		9		(11)
Other	2,927		—		—		2,573		—		—
Equity contracts	34,232		1,582		(2,089)		31,152		1,856		(2,297)
Credit contracts:
Loans and leases	570		—		(2)		1,056		—		(5)
Risk participation agreements	8,145		—		(4)		7,802		1		(13)
Total return swaps	1,445		3		(19)		1,296		13		(33)

Foreign exchange contracts	16,102		160		(156)		12,066		189		(219)
Commodity	4,641		475		(468)		2,872		130		(124)

Total	244,348		3,981		(3,506)		245,388		5,642		(3,582)
Mortgage banking:
Interest rate contracts:
Swaps	441		—		—		687		—		—
Interest rate lock commitments	4,163		30		(7)		8,609		186		(3)
When issued securities, forward rate agreements and forward commitments	6,913		7		(15)		11,691		6		(73)
Other	424		1		—		466		—		—
Total	11,941		38		(22)		21,453		192		(76)
MSRs:
Interest rate contracts:
Swaps	12,837		—		—		36,161		—		(5)

Options	101		1		—		101		—		—
When issued securities, forward rate agreements and forward commitments	3,927		7		—		1,314		7		—
Other	2,017		—		—		760		—		—
Total	18,882		8		—		38,336		7		(5)
Total derivatives not designated as hedges	275,171		4,027		(3,528)		305,177		5,841		(3,663)
Total derivatives	$	300,572	4,027		(3,536)		$	322,942	5,841		(3,663)
Gross amounts in the Consolidated Balance Sheets:
Amounts subject to master netting arrangements			(1,312)		1,312				(1,561)		1,561
Cash collateral (received) posted for amounts subject to master netting arrangements			(345)		1,638				(443)		1,547

Net amount			$	2,370	$	(586)			$	3,837	$	(555)

Netting of Financial Instruments - Derivatives

The following table presents the offsetting of derivative instruments including financial instrument collateral related to legally enforceable master netting agreements and amounts held or pledged as collateral. U.S. GAAP does not permit netting of non-cash collateral balances in the Consolidated Balance Sheets:


December 31, 2021 (Dollars in millions)	Gross Amount		Amount Offset		Net Amount in Consolidated Balance Sheets		Held/Pledged Financial Instruments		Net Amount
Derivative assets:
Derivatives subject to master netting arrangement or similar arrangement	$	2,752	$	(1,221)	$	1,531	$	(1)	$	1,530
Derivatives not subject to master netting arrangement or similar arrangement	388		—		388		—		388
Exchange traded derivatives	887		(436)		451		—		451
Total derivative assets	$	4,027	$	(1,657)	$	2,370	$	(1)	$	2,369
Derivative liabilities:
Derivatives subject to master netting arrangement or similar arrangement	$	(2,873)	$	2,514	$	(359)	$	66	$	(293)
Derivatives not subject to master netting arrangement or similar arrangement	(225)		—		(225)		—		(225)
Exchange traded derivatives	(438)		436		(2)		—		(2)
Total derivative liabilities	$	(3,536)	$	2,950	$	(586)	$	66	$	(520)

December 31, 2020 (Dollars in millions)	Gross Amount		Amount Offset		Net Amount in Consolidated Balance Sheets		Held/Pledged Financial Instruments		Net Amount
Derivative assets:
Derivatives subject to master netting arrangement or similar arrangement	$	4,383	$	(1,618)	$	2,765	$	(2)	$	2,763
Derivatives not subject to master netting arrangement or similar arrangement	705		—		705		(1)		704
Exchange traded derivatives	753		(386)		367		—		367
Total derivative assets	$	5,841	$	(2,004)	$	3,837	$	(3)	$	3,834
Derivative liabilities:
Derivatives subject to master netting arrangement or similar arrangement	$	(3,103)	$	2,722	$	(381)	$	35	$	(346)
Derivatives not subject to master netting arrangement or similar arrangement	(174)		—		(174)		—		(174)
Exchange traded derivatives	(386)		386		—		—		—
Total derivative liabilities	$	(3,663)	$	3,108	$	(555)	$	35	$	(520)

Schedule of Fair Value Hedging Basis Adjustments

The following table presents the carrying value of hedged items in fair value hedging relationships:





	2021						2020
			Hedge Basis Adjustment						Hedge Basis Adjustment
December 31, (Dollars in millions)	Hedged Asset / Liability Basis		Items Currently Designated		Items No Longer Designated		Hedged Asset / Liability Basis		Items Currently Designated		Items No Longer Designated
AFS securities (1)	$	108,758	$	(400)	$	(150)	$	100,988	$	(33)	$	50
Loans and leases	382		—		12		470		—		18

Long-term debt	27,361		(137)		629		27,725		—		930

(1)The amortized cost of AFS securities was $110.6 billion at December 31, 2021 and $99.4 billion at December 31, 2020.

Impact of Derivatives on the Consolidated Statements of Income and Comprehensive Income

The following table summarizes amounts related to cash flow hedges, which consist of interest rate contracts.







Year Ended December 31, (Dollars in millions)	2021		2020		2019
Pre-tax gain (loss) recognized in OCI:

Deposits	$	—	$	—	$	(42)
Short-term borrowings	—		—		2
Long-term debt	—		—		(76)
Total	$	—	$	—	$	(116)
Pre-tax gain (loss) reclassified from AOCI into interest expense:

Deposits	$	(2)	$	(8)	$	(1)
Short-term borrowings	(12)		(19)		(10)
Long-term debt	(22)		(21)		(14)
Total	$	(36)	$	(48)	$	(25)
Pre-tax gain (loss) reclassified from AOCI into other expense: (1)
Deposits	$	(12)	$	—	$	—
Short-term borrowings	(20)		—		—
Long-term debt	(4)		—		—
Total	$	(36)	$	—	$	—

(1)Represents the accelerated amortization of amounts reclassified from AOCI, where management determined that the forecasted transaction is probable of not occurring.

The following table summarizes the impact on net interest income related to fair value hedges:







Year Ended December 31, (Dollars in millions)	2021		2020		2019
AFS securities:
Amounts related to interest settlements	$	(48)	$	(3)	$	—
Recognized on derivatives	571		29		(16)
Recognized on hedged items	(568)		(41)		8
Net income (expense) recognized	(45)		(15)		$	(8)
Loans and leases:
Amounts related to interest settlements	—		(1)		—
Recognized on derivatives	—		(3)		(21)
Recognized on hedged items	(5)		1		19
Net income (expense) recognized	(5)		(3)		(2)





Long-term debt:
Amounts related to interest settlements	18		182		(56)
Recognized on derivatives	(136)		831		170
Recognized on hedged items	435		(732)		(151)
Net income (expense) recognized	317		281		(37)
Net income (expense) recognized, total	$	267	$	263	$	(47)

The following table presents information about the Company’s terminated cash flow and fair value hedges:



December 31, (Dollars in millions)	2021		2020
Cash flow hedges:

Net unrecognized after-tax gain (loss) on terminated hedges recorded in AOCI (to be recognized in earnings through 2022)	$	(9)	$	(64)
Estimated portion of net after-tax gain (loss) on terminated hedges to be reclassified from AOCI into earnings during the next 12 months	(9)		(42)

Fair value hedges:
Unrecognized pre-tax net gain (loss) on terminated hedges (to be recognized as interest primarily through 2029)	$	767	$	862
Portion of pre-tax net gain (loss) on terminated hedges to be recognized as a change in interest during the next 12 months	231		292

The following table presents pre-tax gain (loss) recognized in income for derivative instruments not designated as hedges:







Year Ended December 31, (Dollars in millions)	Location	2021		2020		2019
Client-related and other risk management:
Interest rate contracts	Investment banking and trading income and other income	$	193	$	44	$	76
Foreign exchange contracts	Investment banking and trading income and other income	133		(45)		(13)
Equity contracts	Investment banking and trading income and other income	(21)		(4)		(3)
Credit contracts	Investment banking and trading income and other income	(83)		178		(25)
Commodity contracts	Investment banking and trading income	7		6		—
Mortgage banking:
Interest rate contracts	Residential mortgage income	(21)		(418)		(61)
Interest rate contracts	Commercial mortgage income	(2)		3		(4)
MSRs:
Interest rate contracts	Residential mortgage income	(105)		495		137
Interest rate contracts	Commercial mortgage income	(8)		20		7
Total		$	93	$	279	$	114

Derivatives Credit Risk - Risk Participation Agreements

The following table presents additional information related to interest rate derivative risk participation agreements and total return swaps:



December 31, (Dollars in millions)	2021		2020
Risk participation agreements:


Maximum potential amount of exposure	$	521	$	530
Total return swaps:

Cash collateral held	290		374

Schedule of Derivative Instruments Summary of Collateral Positions with Counterparties

The following table summarizes collateral positions with counterparties:



December 31, (Dollars in millions)	2021		2020
Dealer and other counterparties:
Cash and other collateral received from counterparties	$	346	$	446
Derivatives in a net gain position secured by collateral received	506		585
Unsecured positions in a net gain with counterparties after collateral postings	143		49
Cash collateral posted to dealer counterparties	1,704		1,524
Derivatives in a net loss position secured by collateral	2,591		1,604
Additional collateral that would have been posted had the Company’s credit ratings dropped below investment grade	3		3
Central counterparties clearing:
Cash collateral, including initial margin, posted to central clearing parties	31		172
Derivatives in a net loss position	18		90
Derivatives in a net gain position	—		5
Securities pledged to central counterparties clearing	904		1,281