Company: TFC
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0000092230-25-000020
Chunk: 391

Company: TRUIST FINANCIAL CORP
Filing Date: 2025-02-25
Form: 10-K
Item: Item 7A
Chunk 391
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$356 $(2)$8,806 $(470)$9,162 $(472)GSE16 — 255 (34)271 (34)Agency MBS – residential258 (4)51,006 (9,696)51,264 (9,700)Agency MBS – commercial61 (2)2,185 (567)2,246 (569)States and political subdivisions35 — 243 (13)278 (13)Non-agency MBS— — 2,981 (717)2,981 (717)Other— — 20 — 20 — Total$726 $(8)$65,496 $(11,497)$66,222 $(11,505)HTM securities:      Agency MBS – residential$— $— $44,630 $(9,477)$44,630 $(9,477)At December 31, 2024 and December 31, 2023, no ACL was established for AFS or HTM securities. Substantially all of the unrealized losses on the securities portfolio were the result of changes in market interest rates compared to the date the securities were acquired rather than the credit quality of the issuers or underlying loans. The Company does not expect to incur any credit losses on investment securities.

The following table presents gross securities gains and losses recognized in earnings:(Dollars in millions)Year Ended December 31,202420232022Gross realized gains$— $— $13 Gross realized losses(1)(6,651)— (84)Securities gains (losses), net$(6,651)$— $(71)(1)Includes $485 million pre-tax gain on terminated hedges for the year ended December 31, 2024.Following the sale of TIH, Truist executed a strategic balance sheet repositioning of a portion of its AFS investment securities portfolio by selling $27.7 billion of lower-yielding investment securities, resulting in an after-tax loss of $5.1 billion in the second quarter of 2024. The investment securities that were sold had a book value of $34.4 billion including the impact of hedges. Truist invested approximately $18.7 billion of the sale proceeds in shorter duration, higher-yielding investment securities.

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