Company: TFC
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0000092230-25-000020
Chunk: 21

Company: TRUIST FINANCIAL CORP
Filing Date: 2025-02-25
Form: 10-K
Item: Item 3
Chunk 21
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 to “Note 4. Investment Securities” for additional information.

Truist Financial Corporation   153

Impact of Derivatives on the Consolidated Statements of Income and Comprehensive IncomeDerivatives Designated as Hedging Instruments under GAAPNo portion of the change in fair value of derivatives designated as hedges has been excluded from effectiveness testing.The following table summarizes amounts related to cash flow hedges, which consist of interest rate contracts:Year Ended December 31,(Dollars in millions)202420232022Pre-tax gain (loss) recognized in OCI:Commercial loans$(1,094)$(340)$(102)Pre-tax gain (loss) reclassified from AOCI into interest expense or interest income:Long-term debt— — (12)Commercial Loans(359)(49)— Total$(359)$(49)$(12)The following table summarizes the impact on net interest income related to fair value hedges:Year Ended December 31,(Dollars in millions)202420232022Investment securities:Amounts related to interest settlements$469 $427 $102 Recognized on derivatives978 (651)598 Recognized on hedged items(940)694 (541)Net income (expense) recognized(1)507 470 159 Loans and leases:Recognized on hedged items(2)(3)(3)Long-term debt:Amounts related to interest settlements(203)(192)(64)Recognized on derivatives(45)(136)(840)Recognized on hedged 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 A