Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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


	March 31, 2025						December 31, 2024
	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	$	66,585	$	—	$	(1)	$	66,585	$	—	$	—
Fair value hedges:
Interest rate contracts:
Swaps hedging long-term debt	17,993		—		—		17,368		—		—


Swaps hedging AFS securities	29,850		—		—		30,126		—		—

Total	47,843		—		—		47,494		—		—
Not designated as hedges:
Client-related and other risk management:
Interest rate contracts:
Swaps	152,012		508		(1,337)		146,194		488		(1,706)
Written options	10,554		17		(40)		9,623		16		(49)
Purchased options	10,079		25		(1)		11,321		29		(1)
Futures and forwards	4,418		5		(2)		4,782		1		(2)

Foreign exchange contracts:
Swaps	9,732		120		(89)		7,397		128		(114)
Futures and forwards	20,142		210		(203)		21,966		311		(270)
Other	2,437		33		(31)		760		5		(4)
Equity contracts:
Written options	31,647		16		(1,496)		28,228		12		(2,102)
Purchased options	14,506		876		(27)		11,956		1,366		(23)
Other	1,888		28		(70)		1,730		6		(41)
Commodity contracts	11,048		509		(488)		10,988		318		(297)
Credit contracts:
Credit default swaps	917		—		—		685		—		—
Total return swaps	1,810		38		—		1,485		25		(13)
Risk participation agreements	7,254		—		(2)		7,388		—		(2)


Total	278,444		2,385		(3,786)		264,503		2,705		(4,624)
MSRs and mortgage banking:
Interest rate contracts:
Swaps	22,267		—		—		20,696		—		—
Written options	1,299		26		(1)		1,932		32		(6)
Purchased options	8,259		19		(62)		8,910		60		(46)
Interest rate lock commitments	1,033		4		(3)		939		2		(13)
When issued securities, forward rate agreements, forward commitments, and futures	4,909		3		(7)		5,261		25		(11)


Total	37,767		52		(73)		37,738		119		(76)







Total derivatives not designated as hedges	316,211		2,437		(3,859)		302,241		2,824		(4,700)
Total derivatives	$	430,639	2,437		(3,860)		$	416,320	2,824		(4,700)
Gross amounts in the Consolidated Balance Sheets:
Amounts subject to master netting arrangements and exchange traded derivatives			(1,191)		1,191				(1,408)		1,408
Cash collateral (received) posted for amounts subject to master netting arrangements			(190)		906				(450)		1,006

Net amount			$	1,056	$	(1,763)			$	966	$	(2,286)

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. GAAP does not permit netting of non-cash collateral balances in the Consolidated Balance Sheets. Refer to "Note 3. Securities Financing Activities" for information about the Company's securities financing transactions subject to master netting (or similar) arrangements.


March 31, 2025 (Dollars in millions)	Gross Amount		Amount Offset		Net Amount in Consolidated Balance Sheets		Held/Pledged Financial Instruments(1)		Net Amount
Derivative assets:
Derivatives subject to master netting arrangement or similar arrangement	$	1,599	$	(1,005)	$	594	$	—	$	594
Derivatives not subject to master netting arrangement or similar arrangement	105		1		106		—		106
Exchange traded derivatives	733		(377)		356		—		356
Total derivative assets	$	2,437	$	(1,381)	$	1,056	$	—	$	1,056
Derivative liabilities:
Derivatives subject to master netting arrangement or similar arrangement	$	(2,851)	$	1,720	$	(1,131)	$	86	$	(1,045)
Derivatives not subject to master netting arrangement or similar arrangement	(632)		—		(632)		—		(632)
Exchange traded derivatives	(377)		377		—		—		—
Total derivative liabilities	$	(3,860)	$	2,097	$	(1,763)	$	86	$	(1,677)

December 31, 2024 (Dollars in millions)	Gross Amount		Amount Offset		Net Amount in Consolidated Balance Sheets		Held/Pledged Financial Instruments(1)		Net Amount
Derivative assets:
Derivatives subject to master netting arrangement or similar arrangement	$	1,599	$	(1,293)	$	306	$	—	$	306
Derivatives not subject to master netting arrangement or similar arrangement	78		—		78		—		78
Exchange traded derivatives	1,147		(565)		582		—		582
Total derivative assets	$	2,824	$	(1,858)	$	966	$	—	$	966
Derivative liabilities:
Derivatives subject to master netting arrangement or similar arrangement	$	(3,379)	$	1,849	$	(1,530)	$	94	$	(1,436)
Derivatives not subject to master netting arrangement or similar arrangement	(752)		—		(752)		—		(752)
Exchange traded derivatives	(569)		565		(4)		—		(4)
Total derivative liabilities	$	(4,700)	$	2,414	$	(2,286)	$	94	$	(2,192)

(1)The fair value of held/pledged financial instruments is limited to the carrying amount of the associated derivative asset or liability.

Schedule of Fair Value Hedging Basis Adjustments

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


	March 31, 2025						December 31, 2024
	Carrying Amount of the Hedged Assets and Liabilities(1)		Hedge Basis Adjustment				Carrying Amount of the Hedged Assets and Liabilities(1)		Hedge Basis Adjustment
(Dollars in millions)			Items Currently Designated		Discontinued Hedges				Items Currently Designated		Discontinued Hedges
AFS securities(2)	$	43,426	$	(110)	$	14	$	43,621	$	(503)	$	15
Loans and leases	249		—		4		297		—		5

Long-term debt	28,411		32		(491)		29,469		(121)		(533)

(1)Carrying value shown represents amortized cost.

(2)As of March 31, 2025, closed portfolios of securities hedged under the portfolio layer method have an amortized cost of $30.2 billion, of which $17.7 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 and hedges not designated under the portfolio-layer method.

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)		2025		2024
Pre-tax gain (loss) recognized in OCI:
Commercial loans		$	469	$	(303)




Pre-tax gain (loss) reclassified from AOCI into interest expense or interest income:




Commercial loans		(93)		(55)

The following table summarizes the impact on net interest income related to fair value hedges:


	Three Months Ended March 31,
(Dollars in millions)		2025		2024
Investment securities:
Amounts related to interest settlements		$	71	$	163
Recognized on derivatives		(392)		442
Recognized on hedged items		401		(436)
Net income (expense) recognized(1)		80		169
Loans and leases:


Recognized on hedged items		(1)		(1)






Long-term debt:
Amounts related to interest settlements		(22)		(39)
Recognized on derivatives		152		(232)
Recognized on hedged items		(195)		211
Net income (expense) recognized		(65)		(60)
Net income (expense) recognized, total		$	14	$	108

(1)Includes $9 million of income recognized for the three months ended March 31, 2025 and $9 million for the three months ended March 31, 2024 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, 2025		Dec 31, 2024
Cash flow hedges:
Net unrecognized after-tax gain (loss) on active hedges recorded in AOCI	$	(305)	$	(722)
Net unrecognized after-tax gain (loss) on terminated hedges recorded in AOCI (to be recognized in earnings through 2029)	(127)		(139)

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	4 years		5 years
Fair value hedges:
Unrecognized pre-tax net gain (loss) on terminated hedges(1)	$	(145)	$	(180)

(1)Includes deferred gains that are recorded in AOCI as a result of the reclassification to HTM of previously hedged securities of $364 million at March 31, 2025 and $373 million at December 31, 2024.

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		2025		2024
Client-related and other risk management:
Interest rate contracts	Investment banking and trading income and other income		$	11	$	39
Foreign exchange contracts	Investment banking and trading income and other income		(49)		65
Equity contracts	Investment banking and trading income, other income, and personnel expense		53		(17)
Credit contracts	Investment banking and trading income and other income		14		(24)
Commodity contracts	Investment banking and trading income		3		2
MSRs and mortgage banking:
Interest rate contracts	Mortgage banking income		37		(98)




Total			$	69	$	(33)

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, 2025		Dec 31, 2024
Risk participation agreements:


Maximum potential amount of exposure	$	374	$	381
Total return swaps:

Cash received for variation margin	37		25
Cash and other collateral received for initial margin	402		329