Company: TFC
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0000092230-25-000020
Chunk: 401

Company: TRUIST FINANCIAL CORP
Filing Date: 2025-02-25
Form: 10-K
Item: Item 7A
Chunk 401
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 period varied by economic variable and time period. The economic outlook generally reflected modest improvement in GDP growth and no material change in forecasted unemployment compared to the prior quarter. The overall economic forecast shaping the ACL estimate at December 31, 2024 included GDP growth in the low-single digits and an unemployment rate near the mid-single digits.Quantitative models have certain limitations with respect to estimating expected losses, particularly in times of rapidly changing macro-economic conditions and forecasts. As a result, management believes that the qualitative component of the ACL, which incorporates management’s judgment related to expected future credit losses, will continue to be an important component of the ACL for the foreseeable future. The December 31, 2024 ACL estimate includes adjustments to consider the impact of current and expected events or risks not captured by the loss forecasting models, the outcomes of which are uncertain and may not be completely considered by quantitative models. Refer to “Note 1. Basis of Presentation” for additional information.NPAsThe following table provides a summary of nonperforming loans and leases, excluding LHFS:December 31, 2024December 31, 2023Recorded InvestmentRecorded Investment(Dollars in millions)Without an ALLLWith an ALLLWithout an ALLLWith an ALLLCommercial: Commercial and industrial$52 $469 $123 $347 CRE32 266 154 130 Commercial construction— 3 — 24 Consumer:Residential mortgage1 165 1 152 Home equity1 115 1 121 Indirect auto23 236 20 248 Other consumer— 66 — 59 Total$109 $1,320 $299 $1,081 The following table presents a summary of nonperforming assets and residential mortgage loans in the process of foreclosure:(Dollars in millions)Dec 31, 2024Dec 31, 2023Nonperforming loans and leases HFI$1,429 $1,380 Nonperforming LHFS— 51 Foreclosed real estate3 3 Other foreclosed property45 54 Total nonperforming assets$1,477 $1,488 Residential mortgage loans in the process of foreclosure$169 $214 

120   Truist Financial Corporation

Loan ModificationsThe following tables summarize the amortized cost basis and the weighted average financial effect of loans to borrowers experiencing financial difficulty that were modified during the year, disaggregated by