Company: TFC
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0000092230-25-000020
Chunk: 441

Company: TRUIST FINANCIAL CORP
Filing Date: 2025-02-25
Form: 10-K
Item: Item 7A
Chunk 441
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 the investee to multiples in the marketplace for similar entities. This analysis requires significant judgment, and actual values in a sale could differ materially from those estimated.Brokered time deposits: The Company has elected to measure certain CDs that contain embedded derivatives at fair value. This fair value election better aligns the economics of the CDs with the Company’s risk management strategies. The Company elects, on an instrument by instrument basis, whether a new issuance will be measured at fair value. The Company has classified CDs measured at fair value as level 2 instruments due to the Company’s ability to observe all significant inputs to model-derived valuations in active markets. The Company employs a discounted cash flow approach based on observable market interest rates for the term of the CD and an estimate of the Bank’s credit risk. For any embedded derivative features, the Company uses the same valuation methodologies as if the derivative feature were a standalone derivative.Securities sold short: Securities sold short represent debt securities sold short that are entered into as a hedging strategy for the purposes of supporting institutional and retail client trading activities. The fair value of securities sold short is determined in the same manner as trading securities.Other trading liabilities: Other trading liabilities includes loans sold, but not yet purchased in connection with the Company’s trading business primarily consisting of commercial and corporate leveraged loans. Loans sold, but not yet purchased are valued primarily using quoted prices for similar instruments in active markets.Activity for Level 3 assets and liabilities is summarized below: (Dollars in millions)Loans and LeasesLoan Servicing RightsNet DerivativesBalance at January 1, 2022$23 $2,633 $(12)Total realized and unrealized gains (losses):Included in earnings— 801 (323)Purchases— 321 — Issuances— 482 2 Sales— (9)— Settlements(5)(470)297 Balance at December 31, 202218 3,758 (36)Total realized and unrealized gains (losses): Included in earnings— 86 (36)Purchases— 123 — Issuances— 270 29 Sales— (531)— Settlements(3)(328)24 Balance at December 31, 202315 3,378 (19)Total realized and unrealized gains (losses):Included in earnings— 234 (61)Purchases— 228 — Issuances—