Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments

The following table presents the gross notional amounts and estimated fair value of derivative instruments employed by the Company:

	March 31, 2024						December 31, 2023
	Notional Amount		Fair Value				Notional Amount		Fair Value
(Dollars in millions)			Assets		Liabilities				Assets		Liabilities
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 securities	25,043		—		—		24,178		—		—
Total	42,811		—		—		38,446		—		—
Not designated as hedges:
Client-related and other risk management:
Interest rate contracts:
Swaps	154,598		580		(2,219)		154,692		637		(1,926)
Options	31,272		81		(101)		34,593		114		(106)
Forward commitments	443		1		(5)		178		—		(11)
Other	3,969		—		—		3,033		—		—
Equity contracts	42,080		1,828		(2,395)		39,561		1,164		(1,733)
Credit contracts:
Trading assets	560		—		—		100		—		—
Loans and leases	325		—		—		225		—		—
Risk participation agreements	7,627		—		(2)		7,499		—		(3)
Total return swaps	1,592		38		(11)		1,598		41		(7)
Foreign exchange contracts	25,169		211		(197)		24,480		256		(256)
Commodity	8,858		548		(537)		8,367		513		(503)
Total	276,493		3,287		(5,467)		274,326		2,725		(4,545)
Mortgage banking:
Interest rate contracts:
Swaps	137		—		—		105		—		—
Options	400		1		—		400		3		—
Interest rate lock commitments	1,316		4		(10)		746		5		(10)
When issued securities, forward rate agreements and forward commitments	2,049		10		(6)		1,438		12		(17)
Other	228		1		—		94		—		—
Total	4,130		16		(16)		2,783		20		(27)
MSRs:
Interest rate contracts:
Swaps	18,492		1		—		15,252		—		—
Options	15,002		86		(97)		14,854		75		(109)
When issued securities, forward rate agreements and forward commitments	1,497		6		—		933		8		—
Other	2,125		—		—		1,692		—		(1)
Total	37,116		93		(97)		32,731		83		(110)
Total derivatives not designated as hedges	317,739		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)

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:

March 31, 2024 (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	$	1,784	$	(1,483)	$	301	$	—	$	301
Derivatives not subject to master netting arrangement or similar arrangement	78		—		78		—		78
Exchange traded derivatives	1,535		(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 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	$	1,775	$	(1,392)	$	383	$	—	$	383
Derivatives not subject to master netting arrangement or similar arrangement	97		—		97		—		97
Exchange traded derivatives	956		(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)

Schedule of Fair Value Hedging Basis Adjustments

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

	March 31, 2024						December 31, 2023
			Hedge Basis Adjustment						Hedge Basis Adjustment
(Dollars in millions)	Hedged Asset / Liability Basis		Items Currently Designated		Discontinued Hedges		Hedged Asset / Liability Basis		Items Currently Designated		Discontinued Hedges
AFS securities(1)	$	49,955	$	(433)	$	(5)	$	51,782	$	6	$	(5)
Loans and leases	320		—		7		322		—		7
Long-term debt	30,847		(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

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

	Three Months Ended March 31,
(Dollars in millions)	2024		2023
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)	2024		2023
Investment securities:
Amounts related to interest settlements	$	163	$	76
Recognized on derivatives	442		(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, 2024		Dec 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 years		5 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.

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 Location	2024		2023
Client-related and other risk management:
Interest rate contracts	Investment banking and trading income and other income	$	39	$	34
Foreign exchange contracts	Investment banking and trading income and other income	65		(3)
Equity contracts	Investment banking and trading income and other income	(17)		2
Credit contracts	Investment banking and trading income and other income	(24)		(33)
Commodity contracts	Investment banking and trading income	2		10
Mortgage banking:
Interest rate contracts – residential	Mortgage banking income	(1)		(1)
Interest rate contracts – commercial	Mortgage banking income	—		1
MSRs:
Interest rate contracts – residential	Mortgage banking income	(91)		1
Interest rate contracts – commercial	Mortgage banking income	(6)		3
Total		$	(33)	$	14

Derivatives Credit Risk - Risk Participation Agreements and Total Return Swaps

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

(Dollars in millions)	Mar 31, 2024		Dec 31, 2023
Risk participation agreements:
Maximum potential amount of exposure	$	471	$	520
Total return swaps:
Cash and other collateral received	419		437

Schedule of Derivative Instruments Summary of Collateral Positions with Counterparties

The following table summarizes collateral positions with counterparties:

(Dollars in millions)	Mar 31, 2024		Dec 31, 2023
Dealer and other counterparties:
Cash and other collateral received from counterparties	$	664	$	609
Derivatives in a net gain position secured by collateral received	685		735
Unsecured positions in a net gain with counterparties after collateral postings	80		126
Cash collateral posted to counterparties	1,045		960
Derivatives in a net loss position secured by collateral	1,155		1,052
Central counterparties clearing:
Cash collateral, including initial margin, posted to central clearing parties	8		14
Derivatives in a net loss position	—		8
Derivatives in a net gain position	7		2
Securities pledged to central counterparties clearing	1,058		1,249