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Derivative Financial Instruments
 3 Months Ended
Mar. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
Impact of Derivatives on the Consolidated Balance Sheets

The following table presents the gross notional amounts and estimated fair value of derivative instruments employed by the Company:
March 31, 2024December 31, 2023
 Notional AmountFair ValueNotional AmountFair Value
(Dollars in millions)AssetsLiabilitiesAssetsLiabilities
Cash flow hedges:      
Interest rate contracts:      
Swaps hedging commercial loans$22,538 $1 $— $17,673 $— $— 
Fair value hedges:   
Interest rate contracts:   
Swaps hedging long-term debt 17,768 — — 14,268 — — 
Swaps hedging AFS securities25,043 — — 24,178 — — 
Total42,811 — — 38,446 — — 
Not designated as hedges:      
Client-related and other risk management:      
Interest rate contracts:      
Swaps154,598 580 (2,219)154,692 637 (1,926)
Options31,272 81 (101)34,593 114 (106)
Forward commitments443 1 (5)178 — (11)
Other3,969 — — 3,033 — — 
Equity contracts42,080 1,828 (2,395)39,561 1,164 (1,733)
Credit contracts:
Trading assets560 — — 100 — — 
Loans and leases325 — — 225 — — 
Risk participation agreements7,627 — (2)7,499 — (3)
Total return swaps1,592 38 (11)1,598 41 (7)
Foreign exchange contracts25,169 211 (197)24,480 256 (256)
Commodity8,858 548 (537)8,367 513 (503)
Total276,493 3,287 (5,467)274,326 2,725 (4,545)
Mortgage banking:      
Interest rate contracts:      
Swaps137 — — 105 — — 
Options400 1 — 400 3 — 
Interest rate lock commitments1,316 4 (10)746 5 (10)
When issued securities, forward rate agreements and forward commitments
2,049 10 (6)1,438 12 (17)
Other228 1 — 94 — — 
Total4,130 16 (16)2,783 20 (27)
MSRs:      
Interest rate contracts:      
Swaps18,492 1 — 15,252 — — 
Options15,002 86 (97)14,854 75 (109)
When issued securities, forward rate agreements and forward commitments
1,497 6 — 933 8 — 
Other2,125 — — 1,692 — (1)
Total37,116 93 (97)32,731 83 (110)
Total derivatives not designated as hedges317,739 3,396 (5,580)309,840 2,828 (4,682)
Total derivatives$383,088 3,397 (5,580)$365,959 2,828 (4,682)
Gross amounts in the Consolidated Balance Sheets:    
Amounts subject to master netting arrangements and exchange traded derivatives
(1,704)1,704  (1,268)1,268 
Cash collateral (received) posted for amounts subject to master netting arrangements
 (605)886  (609)817 
Net amount $1,088 $(2,990) $951 $(2,597)
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:
March 31, 2024
(Dollars in millions)		Gross AmountAmount OffsetNet Amount in Consolidated Balance SheetsHeld/Pledged Financial InstrumentsNet Amount
Derivative assets:
Derivatives subject to master netting arrangement or similar arrangement$1,784 $(1,483)$301 $— $301 
Derivatives not subject to master netting arrangement or similar arrangement78 — 78 — 78 
Exchange traded derivatives1,535 (826)709 — 709 
Total derivative assets$3,397 $(2,309)$1,088 $— $1,088 
Derivative liabilities:
Derivatives subject to master netting arrangement or similar arrangement$(3,954)$1,764 $(2,190)$157 $(2,033)
Derivatives not subject to master netting arrangement or similar arrangement(800)— (800)— (800)
Exchange traded derivatives(826)826 — — — 
Total derivative liabilities$(5,580)$2,590 $(2,990)$157 $(2,833)
December 31, 2023
(Dollars in millions)		Gross AmountAmount OffsetNet Amount in Consolidated Balance SheetsHeld/Pledged Financial InstrumentsNet Amount
Derivative assets:
Derivatives subject to master netting arrangement or similar arrangement$1,775 $(1,392)$383 $— $383 
Derivatives not subject to master netting arrangement or similar arrangement97 — 97 — 97 
Exchange traded derivatives956 (485)471 — 471 
Total derivative assets$2,828 $(1,877)$951 $— $951 
Derivative liabilities:
Derivatives subject to master netting arrangement or similar arrangement$(3,627)$1,600 $(2,027)$151 $(1,876)
Derivatives not subject to master netting arrangement or similar arrangement(568)— (568)— (568)
Exchange traded derivatives(487)485 (2)— (2)
Total derivative liabilities$(4,682)$2,085 $(2,597)$151 $(2,446)

The following table presents the carrying value of hedged items in fair value hedging relationships:
March 31, 2024December 31, 2023
Hedge Basis AdjustmentHedge Basis Adjustment
(Dollars in millions)Hedged Asset / Liability BasisItems Currently DesignatedDiscontinued HedgesHedged Asset / Liability BasisItems Currently DesignatedDiscontinued Hedges
AFS securities(1)
$49,955 $(433)$(5)$51,782 $6 $(5)
Loans and leases320 — 7 322 — 7 
Long-term debt30,847 (469)(453)27,572 (237)(475)
(1)The amortized cost of AFS securities was $58.7 billion at March 31, 2024 and $62.2 billion at December 31, 2023. Further, as of March 31, 2024, closed portfolios of securities hedged under the portfolio layer method have an amortized cost of $57.6 billion, of which $25.0 billion was designated as hedged. The remaining amount of amortized cost is from securities with terminated hedges where the basis adjustment is being amortized into earnings using the effective interest method over the contractual life of the security.
Impact of Derivatives on the Consolidated Statements of Income and Comprehensive Income

Derivatives Designated as Hedging Instruments under GAAP

No portion of the change in fair value of derivatives designated as hedges has been excluded from effectiveness testing.

The following table summarizes amounts related to cash flow hedges, which consist of interest rate contracts:
Three Months Ended March 31,
(Dollars in millions)20242023
Pre-tax gain (loss) recognized in OCI:
Commercial loans$(303)$163 
Pre-tax gain (loss) reclassified from AOCI into interest expense or interest income:
Commercial Loans(55)— 

The following table summarizes the impact on net interest income related to fair value hedges:
Three Months Ended March 31,
(Dollars in millions)20242023
Investment securities:
Amounts related to interest settlements$163 $76 
Recognized on derivatives442 (95)
Recognized on hedged items
(436)106 
Net income (expense) recognized(1)
169 87 
Loans and leases:
Recognized on hedged items
(1)(1)
Long-term debt:
Amounts related to interest settlements(39)(46)
Recognized on derivatives(232)156 
Recognized on hedged items
211 (142)
Net income (expense) recognized(60)(32)
Net income (expense) recognized, total
$108 $54 
(1)Includes $9 million of income recognized for the three months ended March 31, 2024, respectively, and $10 million for the three months ended March 31, 2023, respectively, from securities with terminated hedges that were reclassified to HTM. The income recognized was offset by the amortization of the fair value mark.
The following table presents information about the Company’s cash flow and fair value hedges:
(Dollars in millions)Mar 31, 2024Dec 31, 2023
Cash flow hedges:
Net unrecognized after-tax gain (loss) on active hedges recorded in AOCI$(310)$(106)
Net unrecognized after-tax gain (loss) on terminated hedges recorded in AOCI (to be recognized in earnings through 2029)
(180)(194)
Estimated portion of net after-tax gain (loss) on active and terminated hedges to be reclassified from AOCI into earnings during the next 12 months
(244)(203)
Maximum time period over which Truist is hedging a portion of the variability in future cash flows for forecasted transactions excluding those transactions relating to the payment of variable interest on existing instruments
5 years5 years
Fair value hedges:
Unrecognized pre-tax net gain (loss) on terminated hedges(1)
$(51)$(64)
Portion of pre-tax net gain (loss) on terminated hedges to be recognized as a change in interest during the next 12 months
(70)(60)
(1)Includes deferred gains that are recorded in AOCI as a result of the reclassification to HTM of previously hedged securities of $404 million at March 31, 2024 and $413 million at December 31, 2023.

Derivatives Not Designated as Hedging Instruments under GAAP

The Company also enters into derivatives that are not designated as accounting hedges under GAAP to economically hedge certain risks as well as in a trading capacity with its clients.

The following table presents pre-tax gain (loss) recognized in income for derivative instruments not designated as hedges:
Three Months Ended March 31,
(Dollars in millions)Income Statement Location20242023
Client-related and other risk management:  
Interest rate contractsInvestment banking and trading income and other income$39 $34 
Foreign exchange contractsInvestment banking and trading income and other income65 (3)
Equity contractsInvestment banking and trading income and other income(17)2 
Credit contractsInvestment banking and trading income and other income(24)(33)
Commodity contractsInvestment banking and trading income2 10 
Mortgage banking:
Interest rate contracts – residentialMortgage banking income(1)(1)
Interest rate contracts – commercialMortgage banking income— 1 
MSRs:
Interest rate contracts – residentialMortgage banking income(91)1 
Interest rate contracts – commercialMortgage banking income(6)3 
Total$(33)$14 
Credit Derivative Instruments

As part of the Company’s corporate and investment banking business, the Company enters into contracts that are, in form or substance, written guarantees; specifically, risk participations, TRS, and credit default swaps. The Company accounts for these contracts as derivatives.

Truist has entered into risk participation agreements to share the credit exposure with other financial institutions on client-related interest rate derivative contracts. Under these agreements, the Company has guaranteed payment to a dealer counterparty in the event the counterparty experiences a loss on the derivative due to a failure to pay by the counterparty’s client. The Company manages its payment risk on its risk participations by monitoring the creditworthiness of the underlying client through the normal credit review process that the Company would have performed had it entered into a derivative directly with the obligors. At March 31, 2024, the remaining terms on these risk participations ranged from less than one year to 13 years. The potential future exposure represents the Company’s maximum estimated exposure to written risk participations, as measured by projecting a maximum value of the guaranteed derivative instruments based on scenario simulations and assuming 100% default by all obligors on the maximum value.

The Company has also entered into TRS contracts on loans and bonds. To mitigate its credit risk, the Company typically receives initial margin from the counterparty upon entering into the TRS and variation margin if the fair value of the underlying reference assets deteriorates. For additional information on the Company’s TRS contracts, see “Note 14. Commitments and Contingencies.”

The Company enters into credit default swaps to hedge credit risk associated with certain loans and leases. The Company accounts for these contracts as derivatives, and accordingly, recognizes these contracts at fair value.

The following table presents additional information related to interest rate derivative risk participation agreements and total return swaps:
(Dollars in millions)Mar 31, 2024Dec 31, 2023
Risk participation agreements:
Maximum potential amount of exposure
$471 $520 
Total return swaps:
Cash and other collateral received419 437 

The following table summarizes collateral positions with counterparties:
(Dollars in millions)Mar 31, 2024Dec 31, 2023
Dealer and other counterparties:
Cash and other collateral received from counterparties$664 $609 
Derivatives in a net gain position secured by collateral received685 735 
Unsecured positions in a net gain with counterparties after collateral postings
80 126 
Cash collateral posted to counterparties1,045 960 
Derivatives in a net loss position secured by collateral1,155 1,052 
Central counterparties clearing:
Cash collateral, including initial margin, posted to central clearing parties8 14 
Derivatives in a net loss position— 8 
Derivatives in a net gain position7 2 
Securities pledged to central counterparties clearing1,058 1,249