Company: TFC
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0000092230-25-000020
Chunk: 1

Company: TRUIST FINANCIAL CORP
Filing Date: 2025-02-25
Form: 10-K
Item: Item 3
Chunk 1
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 and future funding commitments made.

The following table summarizes certain tax credit and certain equity investments:(Dollars in millions)Balance Sheet LocationDec 31, 2024Dec 31, 2023Investments in affordable housing projects and other qualified tax credits:  Carrying amountOther assets$7,782 $6,754 Amount of future funding commitments included in carrying amountOther liabilities2,667 2,473 Lending exposureLoans and leases for funded amounts2,376 1,981 Renewable energy investments:Carrying amountOther assets551 285 Amount of future funding commitments not included in carrying amountNA702 747 SBIC and certain other equity method investments:Carrying amountOther assets878 758 Amount of future funding commitments not included in carrying amountNA613 589 

140   Truist Financial Corporation

The following table presents a summary of tax credits and amortization expense associated with the Company’s tax credit investment activity. Activity related to the Company’s renewable energy investments, other than qualified tax credits, was immaterial.Year Ended December 31,(Dollars in millions)Income Statement Location202420232022Tax credits:Investments in affordable housing projects, other qualified tax credits, and other community development investmentsProvision for income taxes$723 $624 $583 Amortization and other changes in carrying amount:Investments in affordable housing projects and other qualified tax creditsProvision for income taxes$662 $586 $487 Other community development investmentsOther noninterest income11 11 81 Letters of Credit and Financial GuaranteesIn the normal course of business, Truist utilizes certain financial instruments to meet the financing needs of clients and to mitigate exposure to risks. Such financial instruments include commitments to extend credit and certain contractual agreements, including standby letters of credit and financial guarantee arrangements.

Commitments to extend, originate, or purchase credit are primarily lines of credit to businesses and consumers and have specified rates and maturity dates. Many of these commitments also have adverse change clauses, which allow Truist to cancel the commitment due to deterioration in the borrowers’ creditworthiness. The fair values of commitments are estimated using the fees charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. The fair values of guarantees and letters of credit are estimated based on the counterparties’ creditworthiness and average default rates for loan products with similar risks. Consumer lending and revolving credit