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Fair Value Disclosures
 9 Months Ended
Sep. 30, 2022
Fair Value Disclosures [Abstract]  
Fair Value Disclosures Fair Value Disclosures
Recurring Fair Value Measurements

Accounting standards define fair value as the price that would be received on the measurement date to sell an asset or the price paid to transfer a liability in the principal or most advantageous market available to the entity in an orderly transaction between market participants, with a three level measurement hierarchy:

•Level 1: Quoted prices for identical instruments in active markets
•Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets
•Level 3: Valuations derived from valuation techniques in which one or more significant inputs are unobservable

The following tables present fair value information for assets and liabilities measured at fair value on a recurring basis:
September 30, 2022
(Dollars in millions)		TotalLevel 1Level 2Level 3Netting Adjustments (1)
Assets:    
Trading assets:
U.S. Treasury$1,243 $— $1,243 $— $— 
GSE408 — 408 — — 
Agency MBS - residential1,041 — 1,041 — — 
Agency MBS - commercial60 — 60 — — 
States and political subdivisions393 — 393 — — 
Corporate and other debt securities595 — 595 — — 
Loans1,787 — 1,787 — — 
Other337 278 59 — — 
Total trading assets5,864 278 5,586 — — 
AFS securities: 
U.S. Treasury10,054 — 10,054 — — 
GSE287 — 287 — — 
Agency MBS - residential56,594 — 56,594 — — 
Agency MBS - commercial2,486 — 2,486 — — 
States and political subdivisions396 — 396 — — 
Non-agency MBS3,138 — 3,138 — — 
Other23 — 23 — — 
Total AFS securities72,978 — 72,978 — — 
LHFS at fair value1,868 — 1,868 — — 
Loans and leases19 — — 19 — 
Loan servicing rights at fair value3,797 — — 3,797 — 
Other assets:
Derivative assets1,140 397 3,001 6 (2,264)
Equity securities887 783 104 — — 
Total assets$86,553 $1,458 $83,537 $3,822 $(2,264)
Liabilities:    
Derivative liabilities$3,407 $449 $5,219 $77 $(2,338)
Securities sold short1,905 297 1,608 — — 
Total liabilities$5,312 $746 $6,827 $77 $(2,338)
December 31, 2021
(Dollars in millions)		TotalLevel 1Level 2Level 3Netting Adjustments (1)
Assets:    
Trading assets:
U.S. Treasury$125 $— $125 $— $— 
GSE306 — 306 — — 
Agency MBS - residential1,016 — 1,016 — — 
Agency MBS - commercial13 — 13 — — 
States and political subdivisions91 — 91 — — 
Corporate and other debt securities738 — 738 — — 
Loans1,791 — 1,791 — — 
Other343 285 58 — — 
Total trading assets4,423 285 4,138 — — 
AFS securities:    
U.S. Treasury9,795 — 9,795 — — 
GSE1,698 — 1,698 — — 
Agency MBS - residential134,042 — 134,042 — — 
Agency MBS - commercial2,882 — 2,882 — — 
States and political subdivisions420 — 420 — — 
Non-agency MBS4,258 — 4,258 — — 
Other28 — 28 — — 
Total AFS securities153,123 — 153,123 — — 
LHFS at fair value3,544 — 3,544 — — 
Loans and leases23 — — 23 — 
Loan servicing rights at fair value2,633 — — 2,633 — 
Other assets:    
Derivative assets2,370 887 3,110 30 (1,657)
Equity securities1,066 967 99 — — 
Total assets$167,182 $2,139 $164,014 $2,686 $(1,657)
Liabilities:    
Derivative liabilities$586 $438 $3,056 $42 $(2,950)
Securities sold short1,731 8 1,723 — — 
Total liabilities$2,317 $446 $4,779 $42 $(2,950)
(1)Refer to “Note 16. Derivative Financial Instruments” for additional discussion on netting adjustments.

At September 30, 2022 and December 31, 2021, investments totaling $394 million and $440 million, respectively, have been excluded from the table above as they are valued based on net asset value as a practical expedient. These investments primarily consist of certain SBIC funds.

For additional information on the valuation techniques and significant inputs for Level 2 and Level 3 assets and liabilities that are measured at fair value on a recurring basis, see “Note 18. Fair Value Disclosures” of the Annual Report on Form 10-K for the year ended December 31, 2021.
Activity for Level 3 assets and liabilities is summarized below:
Three Months Ended September 30, 2022 and 2021
(Dollars in millions)		Loans and LeasesLoan Servicing RightsNet Derivatives
Balance at July 1, 2021$— $2,231 $38 
Total realized and unrealized gains (losses):
Included in earnings— 78 6 
Purchases— 303 — 
Issuances— 145 77 
Sales— (1)— 
Settlements— (172)(111)
Balance at September 30, 2021$— $2,584 $10 
Balance at July 1, 2022$20 $3,466 $(36)
Total realized and unrealized gains (losses):
Included in earnings— 190 (61)
Purchases— 126 — 
Issuances— 130 (30)
Sales— (6)— 
Settlements— (109)56 
Other(1)— — 
Balance at September 30, 2022$19 $3,797 $(71)
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at September 30, 2022$— $189 $(48)
Nine Months Ended September 30, 2022 and 2021
(Dollars in millions)		Loans and LeasesLoan Servicing RightsNet Derivatives
Balance at January 1, 2021$— $2,023 $172 
Total realized and unrealized gains (losses): 
Included in earnings— 260 (77)
Purchases— 355 — 
Issuances— 532 254 
Sales— (1)— 
Settlements— (585)(339)
Balance at September 30, 2021$— $2,584 $10 
Balance at January 1, 2022$23 $2,633 $(12)
Total realized and unrealized gains (losses):
Included in earnings— 807 (324)
Purchases— 321 — 
Issuances— 411 10 
Sales— (7)— 
Settlements— (368)255 
Other(4)— — 
Balance at September 30, 2022$19 $3,797 $(71)
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at September 30, 2022$— $807 $(55)
Primary income statement location of realized gains (losses) included in earnings
Other incomeResidential mortgage income and Commercial mortgage incomeResidential mortgage income and Commercial mortgage income

Fair Value Option

The following table details the fair value and UPB of certain loans that were elected to be measured at fair value:
 September 30, 2022December 31, 2021
(Dollars in millions)Fair ValueUPBDifferenceFair ValueUPBDifference
Trading loans$1,787 $1,906 $(119)$1,791 $1,784 $7 
Loans and leases19 20 (1)23 35 (12)
LHFS at fair value1,868 1,931 (63)3,544 3,450 94 
Nonrecurring Fair Value Measurements

The following table provides information about certain assets measured at fair value on a nonrecurring basis still held as of period end. The carrying values represent end of period values, which approximate the fair value measurements that occurred on the various measurement dates throughout the period. These assets are considered to be Level 3 assets.
(Dollars in millions)Sep 30, 2022Dec 31, 2021
Carrying value:
LHFS$361 $101 
Loans and leases429 443 
Other64 100 

The following table provides information about valuation adjustments for certain assets measured at fair value on a nonrecurring basis. The valuation adjustments represent the amounts recorded during the period regardless of whether the asset is still held at period end.
Nine Months Ended September 30,
(Dollars in millions)20222021
Valuation adjustments:
LHFS$(9)$(27)
Loans and leases(280)(349)
Other(440)(156)

LHFS with valuation adjustments in the table above consisted primarily of residential mortgages and commercial loans that were valued using market prices and measured at LOCOM. The table above excludes $75 million and $1.2 billion of LHFS carried at cost at September 30, 2022 and December 31, 2021, respectively, that did not require a valuation adjustment during the period. The remainder of LHFS is carried at fair value.

Loans and leases consists of larger commercial loans and leases that are collateral-dependent and other secured loans and leases that have been charged-off to the fair value of the collateral. Valuation adjustments for loans and leases are primarily recorded in the Provision for credit losses in the Consolidated statement of income. Refer to “Note 1. Basis of Presentation” in Truist’s Annual Report on Form 10-K for the year ended December 31, 2021 for additional discussion of individually evaluated loans and leases.

Other includes foreclosed real estate, other foreclosed property, ROU assets, premises and equipment, and OREO, and consists primarily of residential homes, commercial properties, vacant lots, and automobiles. ROU assets are measured based on the fair value of the assets, which considers the potential for sublease income. The remaining assets are measured at LOCOM, less costs to sell.

Financial Instruments Not Recorded at Fair Value

For financial instruments not recorded at fair value, estimates of fair value are based on relevant market data and information about the instruments. Values obtained relate to trading without regard to any premium or discount that may result from concentrations of ownership, possible tax ramifications, estimated transaction costs that may result from bulk sales or the relationship between various instruments.

An active market does not exist for certain financial instruments. Fair value estimates for these instruments are based on current economic conditions and interest rate risk characteristics, loss experience and other factors. Many of these estimates involve uncertainties and matters of significant judgment and cannot be determined with precision. Therefore, the fair value estimates in many instances cannot be substantiated by comparison to independent markets. In addition, changes in assumptions could significantly affect these fair value estimates. Financial assets and liabilities not recorded at fair value are summarized below:
September 30, 2022December 31, 2021
(Dollars in millions)Fair Value HierarchyCarrying AmountFair ValueCarrying AmountFair Value
Financial assets:
HTM securitiesLevel 2$58,754 $48,975 $1,494 $1,495 
Loans and leases HFI, net of ALLLLevel 3310,111 301,437 285,055 284,914 
Financial liabilities:  
Time depositsLevel 214,454 14,521 15,886 16,017 
Long-term debtLevel 231,172 29,568 35,913 36,251 

The carrying value of the RUFC, which approximates the fair value of unfunded commitments, was $250 million and $260 million at September 30, 2022 and December 31, 2021, respectively.