Company: TFC
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0000092230-25-000020
Chunk: 448

Company: TRUIST FINANCIAL CORP
Filing Date: 2025-02-25
Form: 10-K
Item: Item 7A
Chunk 448
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ged items(58)149 1,014 Net income (expense) recognized(306)(179)110 Net income (expense) recognized, total$199 $288 $266 (1)Includes $40 million of income recognized for the year ended December 31, 2024, and $44 million for the year ended December 31, 2023 from securities with terminated hedges that were reclassified to HTM. The income recognized was offset by the amortization of the fair value mark.

154   Truist Financial Corporation

The following table presents information about the Company’s cash flow and fair value hedges:(Dollars in millions)Dec 31, 2024Dec 31, 2023Cash flow hedges:Net unrecognized after-tax gain (loss) on active hedges recorded in AOCI$(722)$(106)Net unrecognized after-tax gain (loss) on terminated hedges recorded in AOCI (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