Loans and ACL

12 Months Ended

Dec. 31, 2022

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.

	Accruing
December 31, 2022 (Dollars in millions)	Current		30-89 Days Past Due		90 Days Or More Past Due (1)		Nonperforming		Total
Commercial:
Commercial and industrial	$	163,604	$	256	$	49	$	398	$	164,307
CRE	22,568		25		1		82		22,676
Commercial construction	5,844		5		—		—		5,849
Consumer:
Residential mortgage	55,005		614		786		240		56,645
Residential home equity and direct	25,117		127		15		173		25,432
Indirect auto	27,015		646		1		289		27,951
Indirect other	12,833		128		10		6		12,977
Student	4,179		402		706		—		5,287
Credit card	4,766		64		37		—		4,867
Total	$	320,931	$	2,267	$	1,605	$	1,188	$	325,991
(1)Includes government guaranteed loans of $759 million in the residential mortgage portfolio and $702 million in the student portfolio.
	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 $864 million in the student portfolio.

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

December 31, 2022 (Dollars in millions)	Amortized Cost Basis by Origination Year												Revolving Credit		Loans Converted to Term		Other (1)
	2022		2021		2020		2019		2018		Prior								Total
Commercial:
Commercial and industrial:
Pass	$	45,890	$	21,642	$	11,219	$	8,258	$	4,977	$	9,686	$	57,854	$	—	$	(199)	$	159,327
Special mention	243		302		143		160		61		88		721		—		—		1,718
Substandard	518		387		113		413		249		187		997		—		—		2,864
Nonperforming	47		53		10		28		46		27		187		—		—		398
Total	46,698		22,384		11,485		8,859		5,333		9,988		59,759		—		(199)		164,307
CRE:
Pass	6,141		3,595		2,220		3,846		2,092		2,265		757		—		(70)		20,846
Special mention	106		118		74		229		281		5		18		—		—		831
Substandard	106		99		35		422		121		134		—		—		—		917
Nonperforming	—		3		—		—		77		2		—		—		—		82
Total	6,353		3,815		2,329		4,497		2,571		2,406		775		—		(70)		22,676
Commercial construction:
Pass	1,501		1,500		825		290		212		71		1,056		—		—		5,455
Special mention	80		—		93		—		—		—		35		—		—		208
Substandard	114		—		18		1		53		—		—		—		—		186
Total	1,695		1,500		936		291		265		71		1,091		—		—		5,849
Consumer:
Residential mortgage:
Current	13,824		17,340		6,167		3,084		1,384		13,206		—		—		—		55,005
30 - 89 days past due	55		61		32		37		43		386		—		—		—		614
90 days or more past due	5		31		62		62		91		535		—		—		—		786
Nonperforming	4		6		10		12		17		191		—		—		—		240
Total	13,888		17,438		6,271		3,195		1,535		14,318		—		—		—		56,645
Residential home equity and direct:
Current	5,111		3,130		1,481		834		296		297		10,121		3,847		—		25,117
30 - 89 days past due	12		16		8		7		2		2		58		22		—		127
90 days or more past due	1		—		—		—		—		—		11		3		—		15
Nonperforming	4		11		6		7		2		6		46		91		—		173
Total	5,128		3,157		1,495		848		300		305		10,236		3,963		—		25,432
Indirect auto:
Current	11,646		7,141		4,105		2,461		1,096		559		—		—		7		27,015
30 - 89 days past due	147		174		111		100		60		54		—		—		—		646
90 days or more past due	1		—		—		—		—		—		—		—		—		1
Nonperforming	41		77		56		56		34		25		—		—		—		289
Total	11,835		7,392		4,272		2,617		1,190		638		—		—		7		27,951
Indirect other:
Current	6,159		2,675		1,686		980		569		764		—		—		—		12,833
30 - 89 days past due	56		28		18		13		8		5		—		—		—		128
90 days or more past due	7		1		1		1		—		—		—		—		—		10
Nonperforming	—		—		2		2		—		2		—		—		—		6
Total	6,222		2,704		1,707		996		577		771		—		—		—		12,977
Student:
Current	—		—		17		71		57		4,034		—		—		—		4,179
30 - 89 days past due	—		—		—		1		1		400		—		—		—		402
90 days or more past due	—		—		—		1		1		704		—		—		—		706
Total	—		—		17		73		59		5,138		—		—		—		5,287
Credit card:
Current													4,750		16		—		4,766
30 - 89 days past due													63		1		—		64
90 days or more past due													36		1		—		37
Total	—		—		—		—		—		—		4,849		18		—		4,867
Total	$	91,819	$	58,390	$	28,512	$	21,376	$	11,830	$	33,635	$	76,710	$	3,981	$	(262)	$	325,991

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 or more days 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

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

ACL

The following tables present activity in the ACL:

(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
(Dollars in millions)	Balance at Jan 1, 2022		Charge-Offs		Recoveries		Provision (Benefit)		Other (1)		Balance at Dec 31, 2022
Commercial:
Commercial and industrial	$	1,426	$	(143)	$	87	$	39	$	—	$	1,409
CRE	350		(13)		8		(121)		—		224
Commercial construction	52		(1)		5		(10)		—		46
Consumer:
Residential mortgage	308		(9)		16		84		—		399
Residential home equity and direct	615		(294)		81		147		—		549
Indirect auto	1,022		(411)		91		279		—		981
Indirect other	195		(100)		23		193		—		311
Student	117		(22)		1		2		—		98
Credit card	350		(176)		34		152		—		360
ALLL	4,435		(1,169)		346		765		—		4,377
RUFC	260		—		—		12		—		272
ACL	$	4,695	$	(1,169)	$	346	$	777	$	—	$	4,649

(1)Includes the amounts for the ALLL for PCD acquisitions, and other activity.

The commercial ALLL decreased $149 million and the consumer ALLL increased $81 million for the year ended December 31, 2022. The decrease in the commercial ALLL primarily reflects continued strong commercial portfolio performance and loan growth concentrated in higher quality loans, partially offset by a moderately slower economic outlook. The increase in the consumer ALLL was primarily driven by loan growth, normalizing loss trends in certain consumer portfolios, and a moderately slower economic outlook. Considerations for the moderately slower economic outlook include the potential impacts related to the risks associated with inflation, rising rates, geopolitical events, and recession.

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. Forecasts of macroeconomic variables used in loss forecasting include, but are not limited to, unemployment trends, U.S. 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, 2022 ACL, unchanged since December 31, 2021. While the scenario weightings were unchanged, each forecast scenario reflected a moderate deterioration in certain economic variables over the reasonable and supportable forecast period when compared to the prior period. The primary economic forecast shaping the ACL estimate at December 31, 2022 included GDP growth and an unemployment rate in the low-single digits.

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, 2022 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.

NPAs

The following table provides a summary of nonperforming loans and leases, excluding LHFS:

	December 31, 2022				December 31, 2021
	Recorded Investment				Recorded Investment
(Dollars in millions)	Without an ALLL		With an ALLL		Without an ALLL		With an ALLL
Commercial:
Commercial and industrial	$	120	$	278	$	125	$	269
CRE	75		7		12		17
Commercial construction	—		—		—		7
Consumer:
Residential mortgage	4		236		4		292
Residential home equity and direct	2		171		3		138
Indirect auto	3		286		1		217
Indirect other	—		6		—		5
Total	$	204	$	984	$	145	$	945

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

(Dollars in millions)	Dec 31, 2022		Dec 31, 2021
Nonperforming loans and leases HFI	$	1,188	$	1,090
Nonperforming LHFS	—		22
Foreclosed real estate	4		8
Other foreclosed property	58		43
Total nonperforming assets	$	1,250	$	1,163
Residential mortgage loans in the process of foreclosure	$	248	$	135

TDRs

The following table presents a summary of TDRs:

(Dollars in millions)	Dec 31, 2022		Dec 31, 2021
Performing TDRs:
Commercial:
Commercial and industrial	$	136	$	147
CRE	5		5
Commercial construction	1		—
Consumer:
Residential mortgage	1,252		692
Residential home equity and direct	76		98
Indirect auto	462		389
Indirect other	6		7
Student	30		25
Credit card	18		27
Total performing TDRs	1,986		1,390
Nonperforming TDRs	214		152
Total TDRs	$	2,200	$	1,542
ALLL attributable to TDRs	$	152	$	102

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, 2022
(Dollars in millions)	Type of Modification				Prior Quarter Loan Balance		Related ALLL at Period End
	Rate		Structure
Newly designated TDRs:
Commercial	$	66	$	10	$	78	$	9
Consumer	496		627		1,107		56
Credit card	8		—		8		4
Re-modification of previously designated TDRs	113		133
	As of / For the Year Ended December 31, 2021
	Type of Modification				Prior Quarter Loan Balance		Related ALLL at Period End
(Dollars in millions)	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

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

The following table presents additional information about loans and leases:

(Dollars in millions)	Dec 31, 2022		Dec 31, 2021
Unearned income, discounts, and net deferred loan fees and costs	$	269	$	849