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Derivative Financial Instruments
 3 Months Ended
Mar. 31, 2020
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. Truist held no cash flow hedges as of March 31, 2020 and December 31, 2019.
 March 31, 2020December 31, 2019
 Notional AmountFair ValueNotional AmountFair Value
(Dollars in millions)AssetsLiabilitiesAssetsLiabilities
Fair value hedges:         
Interest rate contracts:         
Swaps hedging long-term debt $23,701  $577  $—  $23,701  $113  $(25) 
Options hedging long-term debt3,407  —  (5) 3,407  —  (2) 
Swaps hedging commercial loans44  —  —  44  —  —  
Total27,152  577  (5) 27,152  113  (27) 
Not designated as hedges:                  
Client-related and other risk management:                  
Interest rate contracts:                  
Swaps150,165  4,029  (1,026) 144,473  1,817  (673) 
Options24,997  59  (23) 25,938  28  (19) 
Forward commitments10,902  140  (147) 7,907  6  (7) 
Other2,483  —  —  1,807  —  —  
Equity contracts39,452  1,483  (1,781) 38,426  1,988  (2,307) 
Credit contracts:
Loans and leases1,179  18  (22) 894  —  (34) 
Risk participation agreements6,829  —  (9) 6,696  —  (2) 
Total return swaps1,924  318  (4) 2,531  27  (11) 
Trading677  5  (5) —  —  —  
Foreign exchange contracts13,192  242  (259) 12,986  144  (164) 
Commodity2,800  346  (342) 2,659  67  (65) 
Total254,600  6,640  (3,618) 244,317  4,077  (3,282) 
Mortgage banking:                  
Interest rate contracts:                  
Swaps300  —  —  535  —  —  
Interest rate lock commitments7,605  177  (22) 4,427  34  (2) 
When issued securities, forward rate agreements and forward commitments
10,855  27  (224) 11,997  10  (18) 
Other668  6  —  603  2  —  
Total19,428  210  (246) 17,562  46  (20) 
MSRs:                  
Interest rate contracts:                  
Swaps21,142  —  —  19,196  —  —  
Options1,684  15  (19) 1,519  22  (2) 
When issued securities, forward rate agreements and forward commitments
1,224  29  (54) 5,560  2  (5) 
Other739  —  —  567  —  —  
Total24,789  44  (73) 26,842  24  (7) 
Total derivatives not designated as hedges298,817  6,894  (3,937) 288,721  4,147  (3,309) 
Total derivatives$325,969  7,471  (3,942) $315,873  4,260  (3,336) 
Gross amounts in the Consolidated Balance Sheets:     
Amounts subject to master netting arrangements
(1,988) 1,988   (1,708) 1,708  
Cash collateral (received) posted for amounts subject to master netting arrangements
 (1,443) 1,190   (499) 1,262  
Net amount $4,040  $(764)  $2,053  $(366) 
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 sheet:
March 31, 2020
(Dollars in millions)		Gross
Amount		Amount
Offset		Net Amount Presented in the Consolidated Balance SheetsHeld/Pledged Financial InstrumentsNet Amount
Derivative assets:
Derivatives subject to master netting arrangement or similar arrangement$6,333  $(2,897) $3,436  $(24) $3,412  
Derivatives not subject to master netting arrangement or similar arrangement590  —  590  (1) 589  
Exchange traded derivatives548  (534) 14  —  14  
Total derivative assets$7,471  $(3,431) $4,040  $(25) $4,015  
Derivative liabilities:
Derivatives subject to master netting arrangement or similar arrangement$(3,100) $2,644  $(456) $3  $(453) 
Derivatives not subject to master netting arrangement or similar arrangement(168) —  (168) 13  (155) 
Exchange traded derivatives(674) 534  (140) —  (140) 
Total derivative liabilities$(3,942) $3,178  $(764) $16  $(748) 
December 31, 2019
(Dollars in millions)		Gross
Amount		Amount
Offset		Net Amount Presented in the Consolidated Balance SheetsHeld/Pledged Financial InstrumentsNet Amount
Derivative assets:
Derivatives subject to master netting arrangement or similar arrangement$3,516  $(2,003) $1,513  $(17) $1,496  
Derivatives not subject to master netting arrangement or similar arrangement138  —  138  (1) 137  
Exchange traded derivatives606  (204) 402  —  402  
Total derivative assets$4,260  $(2,207) $2,053  $(18) $2,035  
Derivative liabilities:
Derivatives subject to master netting arrangement or similar arrangement$(2,939) $2,761  $(178) $22  $(156) 
Derivatives not subject to master netting arrangement or similar arrangement(193) 5  (188) 11  (177) 
Exchange traded derivatives(204) 204  —  —  —  
Total derivative liabilities$(3,336) $2,970  $(366) $33  $(333) 

The following table presents the carrying value of hedged items in fair value hedging relationships:
March 31, 2020December 31, 2019
Hedge Basis AdjustmentHedge Basis Adjustment
(Dollars in millions)Hedged Asset / Liability BasisItems Currently DesignatedItems No Longer DesignatedHedged Asset / Liability BasisItems Currently DesignatedItems No Longer Designated
AFS securities$433  $—  $56  $473  $—  $65  
Loans and leases518  6  14  528  3  15  
Long-term debt29,980  1,098  22  28,557  174  23  
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)20202019
Pre-tax gain (loss) recognized in OCI:
Deposits$—  $(10) 
Short-term borrowings—  (10) 
Long-term debt—  (20) 
Total$—  $(40) 
Pre-tax gain (loss) reclassified from AOCI into interest expense:
Deposits$(2) 2  
Short-term borrowings(4) 1  
Long-term debt(8) 2  
Total$(14) $5  

The following table summarizes the impact on net interest income related to fair value hedges:
Three Months Ended March 31,
(Dollars in millions)20202019
AFS securities:
Amounts related to interest settlements$—  $—  
Recognized on derivatives—  (7) 
Recognized on hedged items
(2) 5  
Net income (expense) recognized(2) (2) 
Loans and leases:
Amounts related to interest settlements—  —  
Recognized on derivatives(3) (8) 
Recognized on hedged items
2  8  
Net income (expense) recognized(1) —  
Long-term debt:
Amounts related to interest settlements16  (22) 
Recognized on derivatives922  116  
Recognized on hedged items
(922) (108) 
Net income (expense) recognized16  (14) 
Net income (expense) recognized, total
$13  $(16) 

The following table presents information about the Company's cash flow and fair value hedges:
(Dollars in millions)Mar 31, 2020Dec 31, 2019
Cash flow hedges:
Net unrecognized after-tax gain (loss) on active hedges recorded in AOCI$—  $—  
Net unrecognized after-tax gain (loss) on terminated hedges recorded in AOCI (to be recognized in earnings through 2022)
(90) (101) 
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
(34) (37) 
Fair value hedges:
Unrecognized pre-tax net gain (loss) on terminated hedges (to be recognized as interest primarily through 2029)
$(48) $(57) 
Portion of pre-tax net gain (loss) on terminated hedges to be recognized as a change in interest during the next 12 months
(4) (6) 
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 Location20202019
Client-related and other risk management:
Interest rate contractsInvestment banking and trading income and other income$(64) $10  
Foreign exchange contractsInvestment banking and trading income107  2  
Equity contractsInvestment banking and trading income and other income(10) —  
Credit contractsInvestment banking and trading income and other income459  —  
Commodity contractsInvestment banking and trading income3  —  
Mortgage banking:      
Interest rate contractsResidential mortgage income(122) (15) 
Interest rate contractsCommercial real estate related income2  —  
MSRs:      
Interest rate contractsResidential mortgage income495  54  
Interest rate contractsCommercial real estate related income20  —  
Total$890  $51  

Credit Derivative Instruments

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

The Company has entered into TRS contracts on loans. The Company’s TRS business consists of matched trades, such that when the Company pays depreciation on one TRS, it receives the same amount on the matched TRS. 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.

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 dealer experiences a loss on the derivative, such as an interest rate swap, due to a failure to pay by the client, on that derivative. 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, 2020, the remaining terms on these risk participations ranged from less than one year to 10 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 following table presents additional information related to interest rate derivative risk participation agreements and total return swaps:
(Dollars in millions)Mar 31, 2020Dec 31, 2019
Risk participation agreements:
Maximum potential amount of exposure
$410  $291  
Total return swaps:
Cash collateral held783  653  
The following table summarizes collateral positions with counterparties:
(Dollars in millions)Mar 31, 2020Dec 31, 2019
Dealer and other counterparties:  
Cash and other collateral received from counterparties$1,467  $514  
Derivatives in a net gain position secured by collateral received1,581  615  
Unsecured positions in a net gain with counterparties after collateral postings
114  101  
Cash collateral posted to dealer counterparties1,005  1,255  
Derivatives in a net loss position secured by collateral received1,052  1,300  
Additional collateral that would have been posted had the Company's credit ratings dropped below investment grade
13  12  
Central counterparties clearing:
Cash collateral, including initial margin, posted to central clearing parties220  30  
Derivatives in a net loss position199  31  
Derivatives in a net gain position5  —  
Securities pledged to central counterparties clearing663  513