Company: TFC
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0000092230-25-000020
Chunk: 427

Company: TRUIST FINANCIAL CORP
Filing Date: 2025-02-25
Form: 10-K
Item: Item 7A
Chunk 427
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 tax credits, referred to as “Other qualified tax credits” below, qualify for the proportional amortization method. The Company’s Production Tax Credit investments also qualify for the proportional amortization method and are included in “Other qualified tax credits” below.The Company also invests in entities that promote renewable energy sources as a limited partner. The Company has determined that these renewable energy tax credit partnerships are VIEs. The Company has concluded that it is not the primary beneficiary of these VIEs because it does not have the power to direct the activities that most significantly impact the VIEs’ financial performance and therefore, it is not required to consolidate these VIEs. The Company’s maximum exposure to loss related to these investments is limited to its equity investments in these partnerships and any additional unfunded equity commitments.Truist has investments in and future funding commitments related to private equity and certain other equity method investments. The risk exposure relating to such commitments is generally limited to the amount of investments 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