Company: TFC
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0000092230-25-000020
Chunk: 447

Company: TRUIST FINANCIAL CORP
Filing Date: 2025-02-25
Form: 10-K
Item: Item 7A
Chunk 447
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)(533)27,572 (237)(475)(1)The amortized cost of AFS securities was $43.6 billion at December 31, 2024 and $62.2 billion at December 31, 2023. Further, as of December 31, 2024, closed portfolios of securities hedged under the portfolio layer method have an amortized cost of $30.5 billion, of which $18.0 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 and hedges not designated under the portfolio-layer method.(2)The decline in hedged AFS securities from December 31, 2023 to December 31, 2024 was due to the balance sheet repositioning in May 2024. Refer to “Note 4. Investment Securities” for additional information.

Truist Financial Corporation   153

Impact of Derivatives on the Consolidated Statements of Income and Comprehensive IncomeDerivatives Designated as Hedging Instruments under GAAPNo 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:Year Ended December 31,(Dollars in millions)202420232022Pre-tax gain (loss) recognized in OCI:Commercial loans$(1,094)$(340)$(102)Pre-tax gain (loss) reclassified from AOCI into interest expense or interest income:Long-term debt— — (12)Commercial Loans(359)(49)— Total$(359)$(49)$(12)The following table summarizes the impact on net interest income related to fair value hedges:Year Ended December 31,(Dollars in millions)202420232022Investment securities:Amounts related to interest settlements$469 $427 $102 Recognized on derivatives978 (651)598 Recognized on hedged items(940)694 (541)Net income (expense) recognized(1)507 470 159 Loans and leases:Recognized on hedged items(2)(3)(3)Long-term debt:Amounts related to interest settlements(203)(192)(64)Recognized on derivatives(45)(136)(840)Recognized on hed