Company: TFC
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0000092230-25-000020
Chunk: 22

Company: TRUIST FINANCIAL CORP
Filing Date: 2025-02-25
Form: 10-K
Item: Item 3
Chunk 22
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OCI (to be recognized in earnings through 2029)(139)(194)Estimated portion of net after-tax gain (loss) on active and terminated hedges to be reclassified from AOCI into earnings during the next 12 months261 (203)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 instruments5 years5 yearsFair value hedges:Unrecognized pre-tax net gain (loss) on terminated hedges(1)$(180)$(64)Portion of pre-tax net gain (loss) on terminated hedges to be recognized as a change in interest during the next 12 months(116)(60)(1)Includes deferred gains that are recorded in AOCI as a result of the reclassification to HTM of previously hedged securities of $373 million at December 31, 2024 and $413 million at December 31, 2023.Derivatives Not Designated as Hedging Instruments under GAAPThe Company also enters into derivatives that are not designated as accounting hedges under GAAP to economically hedge certain risks as well as in a trading capacity with its clients.The following table presents pre-tax gain (loss) recognized in income for derivative instruments not designated as hedges:Year Ended December 31,(Dollars in millions)Income Statement Location202420232022Client-related and other risk management:Interest rate contractsInvestment banking and trading income and other income$61 $104 $197 Foreign exchange contractsInvestment banking and trading income and other income236 7 236 Equity contractsInvestment banking and trading income, other income, and personnel expense45 (29)5Credit contractsInvestment banking and trading income and other income(35)(112)53 Commodity contractsInvestment banking and trading income13 21 11 Mortgage banking:   Interest rate contracts – residentialMortgage banking income4 37 596Interest rate contracts – commercialMortgage banking income— (1)(1)MSRs:   Interest rate contracts – residentialMortgage banking income(247)(137)(792)Interest rate contracts – commercialMortgage banking income(10)(3)(22)Total$67 $(113)$283 

Truist Financial Corporation   155

Credit Derivative InstrumentsAs part of the Company’s investment banking and capital market business, the Company enters into contracts