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Fair Value Disclosures
 6 Months Ended
Jun. 30, 2023
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:
June 30, 2023
(Dollars in millions)		TotalLevel 1Level 2Level 3
Netting Adjustments(1)
Assets:    
Trading assets:
U.S. Treasury$142 $— $142 $— $— 
GSE50 — 50 — — 
Agency MBS - residential— — — — — 
States and political subdivisions466 — 466 — — 
Corporate and other debt securities1,368 — 1,368 — — 
Loans1,701 — 1,701 — — 
Other370 306 64 — — 
Total trading assets4,097 306 3,791 — — 
AFS securities: 
U.S. Treasury9,718 — 9,718 — — 
GSE288 — 288 — — 
Agency MBS - residential53,195 — 53,195 — — 
Agency MBS - commercial2,292 — 2,292 — — 
States and political subdivisions418 — 418 — — 
Non-agency MBS3,028 — 3,028 — — 
Other26 — 26 — — 
Total AFS securities68,965 — 68,965 — — 
LHFS at fair value1,645 — 1,645 — — 
Loans and leases16 — — 16 — 
Loan servicing rights at fair value3,497 — — 3,497 — 
Other assets:
Derivative assets805 907 1,819 2 (1,923)
Equity securities910 803 107 — — 
Total assets$79,935 $2,016 $76,327 $3,515 $(1,923)
Liabilities:    
Derivative liabilities$3,128 $486 $4,665 $33 $(2,056)
Securities sold short1,585 263 1,322 — — 
Total liabilities$4,713 $749 $5,987 $33 $(2,056)
December 31, 2022
(Dollars in millions)		TotalLevel 1Level 2Level 3
Netting Adjustments(1)
Assets:    
Trading assets:
U.S. Treasury$137 $— $137 $— $— 
GSE457 — 457 — — 
Agency MBS - residential804 — 804 — — 
Agency MBS - commercial62 — 62 — — 
States and political subdivisions422 — 422 — — 
Corporate and other debt securities761 — 761 — — 
Loans1,960 — 1,960 — — 
Other302 261 41 — — 
Total trading assets4,905 261 4,644 — — 
AFS securities:    
U.S. Treasury10,295 — 10,295 — — 
GSE303 — 303 — — 
Agency MBS - residential55,225 — 55,225 — — 
Agency MBS - commercial2,424 — 2,424 — — 
States and political subdivisions416 — 416 — — 
Non-agency MBS3,117 — 3,117 — — 
Other21 — 21 — — 
Total AFS securities71,801 — 71,801 — — 
LHFS at fair value1,065 — 1,065 — — 
Loans and leases18 — — 18 — 
Loan servicing rights at fair value3,758 — — 3,758 — 
Other assets:    
Derivative assets684 472 1,980 1 (1,769)
Equity securities898 796 102 — — 
Total assets$83,129 $1,529 $79,592 $3,777 $(1,769)
Liabilities:    
Derivative liabilities$2,971 $364 $4,348 $37 $(1,778)
Securities sold short1,551 114 1,437 — — 
Total liabilities$4,522 $478 $5,785 $37 $(1,778)
(1)Refer to “Note 16. Derivative Financial Instruments” for additional discussion on netting adjustments.

At June 30, 2023 and December 31, 2022, investments totaling $379 million and $385 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, 2022.
Activity for Level 3 assets and liabilities is summarized below:
Three Months Ended June 30, 2023 and 2022
(Dollars in millions)		Loans and LeasesLoan Servicing RightsNet Derivatives
Balance at April 1, 2022$21 $3,013 $(74)
Total realized and unrealized gains (losses):
Included in earnings— 260 (93)
Purchases— 195 — 
Issuances— 123 23 
Sales— (1)— 
Settlements— (124)108 
Transfers out of level 3 and other(1)— — 
Balance at June 30, 2022$20 $3,466 $(36)
Balance at April 1, 2023$17 $3,303 $(18)
Total realized and unrealized gains (losses):
Included in earnings— 70 (20)
Purchases— 123 — 
Issuances— 92 18 
Sales— (1)— 
Settlements(1)(90)(11)
Balance at June 30, 2023$16 $3,497 $(31)
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at June 30, 2023$— $71 $(9)
Six Months Ended June 30, 2023 and 2022
(Dollars in millions)		Loans and LeasesLoan Servicing RightsNet Derivatives
Balance at January 1, 2022$23 $2,633 $(12)
Total realized and unrealized gains (losses): 
Included in earnings— 617 (263)
Purchases— 195 — 
Issuances— 281 40 
Sales— (1)— 
Settlements— (259)199 
Other(3)— — 
Balance at June 30, 2022$20 $3,466 $(36)
Balance at January 1, 2023$18 $3,758 $(36)
Total realized and unrealized gains (losses):
Included in earnings— 65 (22)
Purchases— 123 — 
Issuances— 140 16 
Sales— (429)— 
Settlements(2)(160)11 
Balance at June 30, 2023$16 $3,497 $(31)
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at June 30, 2023$— $16 $(20)
Primary income statement location of realized gains (losses) included in earnings
Other incomeMortgage banking incomeMortgage banking 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:
 June 30, 2023December 31, 2022
(Dollars in millions)Fair ValueUPBDifferenceFair ValueUPBDifference
Trading loans$1,701 $1,819 $(118)$1,960 $2,101 $(141)
Loans and leases16 18 (2)18 20 (2)
LHFS at fair value1,645 1,645 — 1,065 1,056 9 
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)Jun 30, 2023Dec 31, 2022
Carrying value:
LHFS$123 $271 
Loans and leases738 500 
Other91 120 

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.
Six Months Ended June 30,
(Dollars in millions)20232022
Valuation adjustments:
LHFS$(27)$(4)
Loans and leases(311)(165)
Other(1)
(86)(50)
(1)Prior period amounts were revised.

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 $155 million and $108 million of LHFS carried at cost at June 30, 2023 and December 31, 2022, respectively, that did not require a valuation adjustment during the period. The remainder of LHFS is carried at fair value.

Loans and leases consist 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, 2022 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:
June 30, 2023December 31, 2022
(Dollars in millions)Fair Value HierarchyCarrying AmountFair ValueCarrying AmountFair Value
Financial assets:
HTM securitiesLevel 2$55,958 $45,956 $57,713 $47,791 
Loans and leases HFI, net of ALLLLevel 3317,470 308,846 321,596 308,738 
Financial liabilities:  
Time depositsLevel 242,227 41,992 23,474 23,383 
Long-term debtLevel 244,749 43,072 43,203 40,951 

The carrying value of the RUFC, which approximates the fair value of unfunded commitments, was $273 million and $272 million at June 30, 2023 and December 31, 2022, respectively.