Item 1. FINANCIAL STATEMENTS

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Item 1. FINANCIAL STATEMENTS

CONSOLIDATED BALANCE SHEETS

TRUIST FINANCIAL CORPORATION AND SUBSIDIARIES



Unaudited (Dollars in millions, except per share data, shares in thousands)	Mar 31, 2025		Dec 31, 2024
Assets
Cash and due from banks	$	5,996	$	5,793
Interest-bearing deposits with banks	36,175		33,975
Securities borrowed or purchased under agreements to resell	2,810		2,550
Trading assets at fair value	5,838		5,100
AFS securities at fair value	68,012		67,464
HTM securities (fair value of $40,438 and $40,286, respectively)	49,876		50,640
LHFS (including $917 and $1,233 at fair value, respectively)	1,114		1,388
Loans and leases (including $12 and $13 at fair value, respectively)	308,638		306,383
ALLL	(4,870)		(4,857)
Loans and leases, net of ALLL	303,768		301,526
Premises and equipment	3,168		3,225
Goodwill	17,125		17,125
CDI and other intangible assets	1,473		1,550
Loan servicing rights at fair value	3,628		3,708
Other assets (including $1,324 and $1,271 at fair value, respectively)	36,916		37,132

Total assets	$	535,899	$	531,176
Liabilities
Noninterest-bearing deposits	$	108,461	$	107,451
Interest-bearing deposits (including $279 and $192 at fair value, respectively)	295,275		283,073
Short-term borrowings (including $2,329 and $1,896 at fair value, respectively)	23,730		29,205
Long-term debt	32,030		34,956
Other liabilities (including $1,763 and $2,286 at fair value, respectively)	11,768		12,812

Total liabilities	471,264		467,497
Shareholders’ Equity
Preferred stock	5,907		5,907
Common stock, $5 par value	6,548		6,580
Additional paid-in capital	35,178		35,628
Retained earnings	24,252		23,777
AOCI, net of deferred income taxes	(7,250)		(8,213)

Total shareholders’ equity	64,635		63,679
Total liabilities and shareholders’ equity	$	535,899	$	531,176
Common shares outstanding	1,309,539		1,315,936
Common shares authorized	2,000,000		2,000,000
Preferred shares outstanding	216		216
Preferred shares authorized	5,000		5,000

The accompanying notes are an integral part of these consolidated financial statements.

4 Truist Financial Corporation

CONSOLIDATED STATEMENTS OF INCOME

TRUIST FINANCIAL CORPORATION AND SUBSIDIARIES



Unaudited (Dollars in millions, except per share data, shares in thousands)	Three Months Ended March 31,
		2025			2024
Interest Income
Interest and fees on loans and leases			$	4,493		$	4,865
Interest on securities			975			805
Interest on other earning assets			520			514
Total interest income			5,988			6,184
Interest Expense
Interest on deposits			1,736			1,964
Interest on long-term debt			409			482
Interest on other borrowings			336			366
Total interest expense			2,481			2,812
Net Interest Income			3,507			3,372
Provision for credit losses			458			500
Net Interest Income After Provision for Credit Losses			3,049			2,872
Noninterest Income
Wealth management income			344			356
Investment banking and trading income			273			323
Card and payment related fees			220			224
Service charges on deposits			230			225
Mortgage banking income			108			97
Lending related fees			95			96
Operating lease income			53			59


Securities gains (losses)			(1)			—
Other income			70			66
Total noninterest income			1,392			1,446
Noninterest Expense
Personnel expense			1,587			1,630
Professional fees and outside processing			364			278
Software expense			230			224
Net occupancy expense			163			160
Equipment expense			82			88
Amortization of intangibles			75			88
Marketing and customer development			75			56
Operating lease depreciation			35			40

Regulatory costs			69			152
Restructuring charges			38			51


Other expense			188			186
Total noninterest expense			2,906			2,953
Earnings
Income before income taxes			1,535			1,365
Provision for income taxes			274			232
Net income from continuing operations			1,261			1,133
Net income from discontinued operations			—			67
Net income			1,261			1,200

Noncontrolling interests from discontinued operations			—			3

Preferred stock dividends and other			104			106
Net income available to common shareholders			$	1,157		$	1,091
Basic earnings from continuing operations			$	0.88		$	0.77

Basic EPS			0.88			0.82
Diluted earnings from continuing operations			0.87			0.76

Diluted EPS			0.87			0.81
Basic weighted average shares outstanding			1,307,457			1,335,091
Diluted weighted average shares outstanding			1,324,339			1,346,904

The accompanying notes are an integral part of these consolidated financial statements.

Truist Financial Corporation 5

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

TRUIST FINANCIAL CORPORATION AND SUBSIDIARIES



Unaudited (Dollars in millions)	Three Months Ended March 31,
		2025			2024
Net income			$	1,261		$	1,200
OCI, net of tax:
Net change in net pension and postretirement costs			5			1
Net change in cash flow hedges			429			(190)
Net change in AFS securities			478			(576)
Net change in HTM securities			50			51
Other, net			1			(2)
Total OCI, net of tax			963			(716)
Total comprehensive income			$	2,224		$	484
Income Tax Effect of Items Included in OCI:
Net change in net pension and postretirement costs			$	1		$	—
Net change in cash flow hedges			133			(58)
Net change in AFS securities			149			(177)
Net change in HTM securities			15			15

Total income taxes related to OCI			$	298		$	(220)

The accompanying notes are an integral part of these consolidated financial statements.

6 Truist Financial Corporation

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

TRUIST FINANCIAL CORPORATION AND SUBSIDIARIES




Unaudited (Dollars in millions, shares in thousands)	Shares of Common Stock	Preferred Stock		Common Stock		Additional Paid-In Capital		Retained Earnings		AOCI		Noncontrolling Interests		Total Shareholders’ Equity













































Balance, January 1, 2024	1,333,743	$	6,673	$	6,669	$	36,177	$	22,088	$	(12,506)	$	152	$	59,253
Net income	—	—		—		—		1,197		—		3		1,200
OCI	—	—		—		—		—		(716)		—		(716)


Issued in connection with equity awards, net	4,353	—		21		(43)		(2)		—		—		(24)



Cash dividends declared on common stock	—	—		—		—		(694)		—		—		(694)
Cash dividends declared on preferred stock	—	—		—		—		(106)		—		—		(106)
Equity-based compensation expense	—	—		—		63		—		—		—		63


Other, net	—	—		—		—		—		—		77		77
Balance, March 31, 2024	1,338,096	$	6,673	$	6,690	$	36,197	$	22,483	$	(13,222)	$	232	$	59,053
Balance, January 1, 2025	1,315,936	$	5,907	$	6,580	$	35,628	$	23,777	$	(8,213)	$	—	$	63,679
Net income	—	—		—		—		1,261		—		—		1,261
OCI	—	—		—		—		—		963		—		963

Issued in connection with equity awards, net	4,858	—		24		(83)		(3)		—		—		(62)

Repurchase of common stock, including excise tax	(11,255)	—		(56)		(447)		—		—		—		(503)

Cash dividends declared on common stock	—	—		—		—		(679)		—		—		(679)
Cash dividends declared on preferred stock	—	—		—		—		(104)		—		—		(104)
Equity-based compensation expense	—	—		—		80		—		—		—		80



Balance, March 31, 2025	1,309,539	$	5,907	$	6,548	$	35,178	$	24,252	$	(7,250)	$	—	$	64,635

The accompanying notes are an integral part of these consolidated financial statements.

Truist Financial Corporation 7

CONSOLIDATED STATEMENTS OF CASH FLOWS**(1)**

TRUIST FINANCIAL CORPORATION AND SUBSIDIARIES



Unaudited (Dollars in millions)		Three Months Ended March 31,
	2025			2024
Cash Flows From Operating Activities:
Net income (loss)		$	1,261		$	1,200
Adjustments to reconcile net income to net cash from operating activities:
Provision for credit losses		458			500

Depreciation		145			164

Amortization of intangibles		75			109




Net change in operating assets and liabilities:
LHFS		316			(349)

Pension asset		(72)			(57)
Derivative assets and liabilities		(613)			255
Trading assets		(738)			(936)

Other assets and other liabilities		(276)			(1,985)

Other, net		190			109
Net cash from operating activities		746			(990)
Cash Flows From Investing Activities:
Proceeds from sales of AFS securities		722			6
Proceeds from maturities, calls and paydowns of AFS securities		3,906			3,923
Purchases of AFS securities		(4,143)			(3,807)
Proceeds from maturities, calls and paydowns of HTM securities		833			808

Originations of loans and leases, net of principal collected		(2,445)			4,515
Purchases of loans and leases		(500)			(39)
Sales of loans and leases		174			216

Net cash received (paid) for securities borrowed or purchased under agreements to resell		(260)			287



Other, net		82			(6)
Net cash from investing activities		(1,631)			5,903
Cash Flows From Financing Activities:
Net change in deposits		13,212			(1,599)
Net change in short-term borrowings		(5,462)			1,493
Proceeds from issuance of long-term debt		552			8,130
Repayment of long-term debt		(3,669)			(7,750)
Repurchase of common stock		(500)			—


Cash dividends paid on common stock		(679)			(694)
Cash dividends paid on preferred stock		(104)			(106)


Other, net		(62)			(46)
Net cash from financing activities		3,288			(572)
Net Change in Cash and Cash Equivalents		2,403			4,341
Cash and Cash Equivalents of Continuing and Discontinued Operations, January 1		39,768			30,644
Cash and Cash Equivalents of Continuing and Discontinued Operations, March 31		$	42,171		$	34,985
Supplemental Disclosure of Cash Flow Information:
Net cash paid (received) during the period for:
Interest expense		$	2,378		$	2,826
Income taxes		38			30

(1)Cash flows of discontinued operations are reflected within operating, investing, and financing activities in the Consolidated Statements of Cash Flows. The cash balances of these operations were reported as assets of discontinued operations on the Consolidated Balance Sheets prior to the sale of TIH. Refer to “Note 2. Discontinued Operations” for additional information related to discontinued operations.

The accompanying notes are an integral part of these consolidated financial statements.

8 Truist Financial Corporation

NOTE 1. Basis of Presentation

General

See the Glossary of Defined Terms at the beginning of this Report for terms used herein. These consolidated financial statements and notes are presented in accordance with the instructions for Form 10-Q, and, therefore, do not include all information and notes necessary for a complete presentation of financial position, results of operations, and cash flow activity required in accordance with GAAP. In the opinion of management, all normal recurring adjustments necessary for a fair statement of the consolidated financial position and consolidated results of operations have been made. The year-end consolidated balance sheet data was derived from audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements. The information contained in the financial statements and notes included in the Annual Report on Form 10-K for the year ended December 31, 2024 should be referred to in connection with these unaudited interim consolidated financial statements. The Company updated its accounting policies in connection with recently adopted accounting standards, as applicable, which are described in this footnote. There were no other significant changes to the Company’s accounting policies from those disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024 that could have a material effect on the Company’s financial statements.

Reclassifications

Certain amounts reported in prior periods’ consolidated financial statements have been reclassified to conform to the current presentation.

Use of Estimates in the Preparation of Financial Statements

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change include the determination of the ACL; determination of fair value for securities, MSRs, trading assets and liabilities, and derivative assets and liabilities; goodwill and other intangible assets; income taxes; and pension and postretirement benefit obligations.

Changes in Accounting Principles and Effects of New Accounting Standards

The following table provides a summary of significant accounting standards not yet adopted:


Standard / Adoption Date	Description	Effects on the Financial Statements




Standards Not Yet Adopted
Improvements to Income Tax Disclosures / December 31, 2025	Improves the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures.	Truist is evaluating the impact of this standard on its disclosures. This standard relates to footnote disclosures only.
Expense Disaggregation Disclosures / December 31, 2027	Introduces new requirements to disclose additional information about certain types of expenses, including employee compensation, depreciation, intangible asset amortization, and selling expenses. Banks that present a caption for salaries and benefits under SEC rules would be permitted to retain their current definition.	Truist is evaluating the impact of this standard on its disclosures. This standard relates to footnote disclosures only.

Truist Financial Corporation 9

NOTE 2. Discontinued Operations

On February 20, 2024, the Company entered into an agreement to sell the remaining stake of the common equity in TIH to an investor group led by Stone Point Capital LLC and Clayton, Dubilier & Rice for a purchase price that implied an enterprise value for TIH of $15.5 billion. The divestiture of TIH represented a strategic shift that had a major effect on our operations and financial results. The Company reclassified all of the assets and liabilities of TIH to discontinued operations in connection with the announcement of the disposition of the business. As such, financial information attributed to TIH has been recast to reflect discontinued operations for the periods presented herein. On May 6, 2024, the Company completed the sale.

The following footnotes exclude discontinued operations for TIH, unless otherwise noted: “Note 6. Goodwill and Other Intangible Assets,” “Note 8. Other Assets and Liabilities,” “Note 12. Income Taxes,” “Note 13. Benefit Plans,” “Note 17. Computation of EPS,” and “Note 18. Operating Segments.”

The following presents operating results of TIH classified as discontinued operations:


Three Months Ended March 31, 2024 (Dollars in millions)


Interest Income
Interest on other earning assets	$	24
Total interest income	24
Noninterest income
Insurance income	892
Other income	5
Total noninterest income	897
Noninterest expense
Personnel expense	634
Professional fees and outside processing	48
Software expense	17
Net occupancy expense	15
Equipment expense	9
Amortization of intangibles	21
Marketing and customer development	10

Restructuring charges	19
Other expense	58
Total noninterest expense	831
Earnings

Income before income taxes from discontinued operations	90
Provision for income taxes	23
Net income from discontinued operations	67
Noncontrolling interests	3
Net income from discontinued operations attributable to controlling interest	$	64

The components of net cash provided by operating, investing, and financing activities of discontinued operations included in the Consolidated Statements of Cash Flows are as follows:


Three Months Ended March 31, 2024 (Dollars in millions)


Net cash from operating activities	$	(346)
Net cash from investing activities	(4)
Net cash from financing activities	373

10 Truist Financial Corporation

NOTE 3. Securities Financing Activities

Securities purchased under agreements to resell are primarily collateralized by U.S. government or agency securities and are carried at the amounts at which the securities will be subsequently sold, plus accrued interest. Securities borrowed are primarily collateralized by corporate securities. The Company borrows securities and purchases securities under agreements to resell as part of its securities financing activities. On the acquisition date of these securities, the Company and the related counterparty agree on the amount of collateral required to secure the principal amount loaned under these arrangements. The Company monitors collateral values daily and calls for additional collateral to be provided as warranted under the respective agreements.

For securities sold under agreements to repurchase, the Company would be obligated to provide additional collateral in the event of a significant decline in fair value of the collateral pledged. This risk is managed by monitoring the liquidity and credit quality of the collateral, as well as the maturity profile of the transactions. Refer to “Note 14. Commitments and Contingencies” for additional information related to pledged securities.

The agreements that govern the Company's securities financing transactions provide for a right of setoff in the event of default or bankruptcy with respect to either party to such transactions. The following table presents the Company's securities financing transactions, including those executed under master netting (or similar) arrangements. Refer to "Note 16. Derivative Financial Instruments" for information about the Company's derivative instruments subject to master netting (or similar) arrangements.


	March 31, 2025														December 31, 2024
(Dollars in millions)			Amount in Consolidated Balance Sheets(1)				Received/Pledged Financial Instruments(2)				Net Amount				Amount in Consolidated Balance Sheets(1)		Received/Pledged Financial Instruments(2)		Net Amount
Assets:
Securities purchased under agreements to resell			$	1,470			$	(1,464)			$	6			$	1,322	$	(1,313)	$	9
Securities borrowed	1,340				(1,306)				34				1,228		(1,192)		36
Total securities borrowed or purchased under agreements to resell	$	2,810			$	(2,770)			$	40			$	2,550	$	(2,505)	$	45
Liabilities:
Securities sold under agreements to repurchase			$	(2,778)			$	2,778			$	—			$	(9,675)	$	9,675	$	—

(1)There were no securities financing transactions subject to legally enforceable master netting arrangements that were eligible for balance sheet netting for the periods presented.

(2)The fair value of received/pledged financial instruments is limited to the carrying amount of the associated asset or liability. The fair value of collateral received that was permitted to be sold or repledged was $2.8 billion as of March 31, 2025 and $2.5 billion as of December 31, 2024. Of the fair value of collateral permitted to be resold or repledged, the fair value of securities repledged or resold was $2.1 billion as of March 31, 2025 and $1.6 billion as of December 31, 2024.

The following table presents additional information related to the Company’s securities sold under agreements to repurchase, by collateral type and remaining contractual maturity:


	March 31, 2025								December 31, 2024
(Dollars in millions)	Overnight and Continuous		Up to 30 days		30-90 days		Total		Overnight and Continuous		Up to 30 days		30-90 days		Total
U.S. Treasury	$	—	$	100	$	503	$	603	$	—	$	2,445	$	300	$	2,745
State and Municipal	337		14		—		351		350		100		—		450

Agency MBS – residential	—		1,000		—		1,000		—		5,750		—		5,750
Corporate and other debt securities	563		261		—		824		450		280		—		730
Total securities sold under agreements to repurchase	$	900	$	1,375	$	503	$	2,778	$	800	$	8,575	$	300	$	9,675

Truist Financial Corporation 11

NOTE 4. Investment Securities

The following tables summarize the Company’s AFS and HTM securities:


March 31, 2025 (Dollars in millions)	Amortized Cost		Gross Unrealized				Net unrealized gains (losses)		Fair Value
	Gains		Losses
AFS securities:
U.S. Treasury	$	14,334	$	140	$	(16)	$	124	$	14,458
GSE	469		3		(28)		(25)		444
Agency MBS – residential	55,183		98		(5,012)		(4,914)		50,269
Agency MBS – commercial	3,067		3		(604)		(601)		2,466
States and political subdivisions	370		10		(20)		(10)		360

Other	16		—		(1)		(1)		15
Total AFS securities, excluding portfolio level basis adjustments	73,439		254		(5,681)		(5,427)		68,012
Portfolio level basis adjustments(1)	(70)						70		—
Total AFS securities	$	73,369	$	254	$	(5,681)	$	(5,357)	$	68,012
HTM securities:


Agency MBS – residential	$	49,876	$	—	$	(9,438)	$	(9,438)	$	40,438





December 31, 2024 (Dollars in millions)	Amortized Cost		Gross Unrealized				Net unrealized gains (losses)		Fair Value
	Gains		Losses
AFS securities:
U.S. Treasury	$	14,279	$	156	$	(24)	$	132	$	14,411
GSE	441		1		(39)		(38)		403
Agency MBS – residential	55,769		6		(5,816)		(5,810)		49,959
Agency MBS – commercial	2,938		—		(645)		(645)		2,293
States and political subdivisions	390		11		(19)		(8)		382

Other	16		—		—		—		16
Total AFS securities, excluding portfolio level basis adjustments	73,833		174		(6,543)		(6,369)		67,464
Portfolio level basis adjustments(1)	(385)						385		—
Total AFS securities	$	73,448	$	174	$	(6,543)	$	(5,984)	$	67,464
HTM securities:


Agency MBS – residential	$	50,640	$	—	$	(10,354)	$	(10,354)	$	40,286

(1)Represents fair value hedge basis adjustments related to active portfolio layer method hedges, which are not allocated to individual securities. For additional information, refer to “Note 16. Derivative Financial Instruments.”

The amortized cost and estimated fair value of certain MBS securities issued by FNMA and FHLMC that exceeded 10% of shareholders’ equity are shown in the table below:


	March 31, 2025
(Dollars in millions)	Amortized Cost		Fair Value
FNMA	$	29,331	$	24,928
FHLMC	29,693		25,086

The amortized cost and estimated fair value of the securities portfolio by contractual maturity are shown in the following table. The expected life of MBS may be shorter than the contractual maturities because borrowers have the right to prepay their obligations with or without penalties.

12 Truist Financial Corporation


	Amortized Cost										Fair Value
March 31, 2025 (Dollars in millions)	Due in one year or less		Due after one year through five years		Due after five years through ten years		Due after ten years		Total		Due in one year or less		Due after one year through five years		Due after five years through ten years		Due after ten years		Total
AFS securities:
U.S. Treasury	$	4,251	$	8,919	$	426	$	738	$	14,334	$	4,274	$	9,028	$	424	$	732	$	14,458
GSE	2		—		1		466		469		2		—		1		441		444
Agency MBS – residential	—		86		362		54,735		55,183		—		84		347		49,838		50,269
Agency MBS – commercial	—		109		135		2,823		3,067		—		110		131		2,225		2,466
States and political subdivisions	21		66		147		136		370		21		68		145		126		360

Other	—		8		8		—		16		—		7		8		—		15
Total AFS securities	$	4,274	$	9,188	$	1,079	$	58,898	$	73,439	$	4,297	$	9,297	$	1,056	$	53,362	$	68,012
HTM securities:


Agency MBS – residential	$	—	$	—	$	—	$	49,876	$	49,876	$	—	$	—	$	—	$	40,438	$	40,438

The following tables present the fair values and gross unrealized losses of investments based on the length of time that individual securities have been in a continuous unrealized loss position:


	Less than 12 months				12 months or more				Total
March 31, 2025 (Dollars in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
AFS securities:
U.S. Treasury	$	2,420	$	(4)	$	244	$	(12)	$	2,664	$	(16)
GSE	106		(1)		214		(27)		320		(28)
Agency MBS – residential	10,845		(146)		26,761		(4,866)		37,606		(5,012)
Agency MBS – commercial	35		—		2,133		(604)		2,168		(604)
States and political subdivisions	184		(17)		37		(3)		221		(20)

Other	8		—		7		(1)		15		(1)
Total	$	13,598	$	(168)	$	29,396	$	(5,513)	$	42,994	$	(5,681)
HTM securities:


Agency MBS – residential	$	—	$	—	$	40,438	$	(9,438)	$	40,438	$	(9,438)








	Less than 12 months				12 months or more				Total
December 31, 2024 (Dollars in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses

AFS securities:
U.S. Treasury	$	1,579	$	(6)	$	352	$	(18)	$	1,931	$	(24)
GSE	146		(4)		230		(35)		376		(39)
Agency MBS – residential	20,546		(322)		26,788		(5,494)		47,334		(5,816)
Agency MBS – commercial	105		(1)		2,111		(644)		2,216		(645)
States and political subdivisions	20		(1)		202		(18)		222		(19)

Other	—		—		7		—		7		—
Total	$	22,396	$	(334)	$	29,690	$	(6,209)	$	52,086	$	(6,543)
HTM securities:


Agency MBS – residential	$	—	$	—	$	40,286	$	(10,354)	$	40,286	$	(10,354)

At March 31, 2025 and December 31, 2024, no ACL was established for AFS or HTM securities. Substantially all of the unrealized losses on the securities portfolio were the result of changes in market interest rates compared to the date the securities were acquired rather than the credit quality of the issuers or underlying loans. The Company does not expect to incur any credit losses on investment securities.

The following table presents gross securities gains and losses recognized in earnings:


(Dollars in millions)	Three Months Ended March 31,
		2025			2024
Gross realized gains			$	2		$	—
Gross realized losses			(3)			—

Securities gains (losses), net			$	(1)		$	—

Truist Financial Corporation 13

NOTE 5. Loans and ACL

The following tables present loans and leases HFI by aging category. Government guaranteed loans are not placed on nonperforming status regardless of delinquency because collection of principal and interest is reasonably assured.


	Accruing
March 31, 2025 (Dollars in millions)	Current		30-89 Days Past Due		90 Days Or More Past Due(1)		Nonperforming		Total
Commercial:
Commercial and industrial	$	155,970	$	118	$	5	$	586	$	156,679
CRE	19,272		12		—		294		19,578
Commercial construction	8,764		—		—		2		8,766

Consumer:
Residential mortgage	54,759		631		530		179		56,099
Home equity	9,346		57		6		114		9,523
Indirect auto	22,896		484		—		248		23,628
Other consumer	29,203		246		23		65		29,537

Credit card	4,705		71		52		—		4,828

Total	$	304,915	$	1,619	$	616	$	1,488	$	308,638
(1)Includes government guaranteed loans of $468 million in the residential mortgage portfolio.

	Accruing
December 31, 2024 (Dollars in millions)	Current		30-89 Days Past Due		90 Days Or More Past Due(1)		Nonperforming		Total
Commercial:
Commercial and industrial	$	154,140	$	168	$	19	$	521	$	154,848
CRE	20,004		60		1		298		20,363
Commercial construction	8,514		3		—		3		8,520

Consumer:
Residential mortgage	54,233		719		481		166		55,599
Home equity	9,457		60		9		116		9,642
Indirect auto	22,208		622		—		259		23,089
Other consumer	29,070		236		23		66		29,395

Credit card	4,792		81		54		—		4,927

Total	$	302,418	$	1,949	$	587	$	1,429	$	306,383
(1)Includes government guaranteed loans of $430 million in the residential mortgage portfolio.

14 Truist Financial Corporation

The following tables present the amortized cost basis of loans by origination year and credit quality indicator:


March 31, 2025 (Dollars in millions)	Amortized Cost Basis by Origination Year																	Revolving Credit		Loans Converted to Term		Other(1)
2025			2024			2023			2022			2021			Prior					Total
Commercial:
Commercial and industrial:
Pass	$	9,579		$	20,915		$	13,067		$	19,390		$	10,569		$	18,325	$	58,394	$	—	$	(194)	$	150,045
Special mention	228			289			373			171			425			153		868		—		—		2,507
Substandard	28			451			537			516			188			662		1,159		—		—		3,541
Nonperforming	—			75			91			26			38			54		302		—		—		586
Total	9,835			21,730			14,068			20,103			11,220			19,194		60,723		—		(194)		156,679
Gross charge-offs	3			5			24			4			2			12		52		—		—		102
CRE:
Pass	795			1,477			2,324			3,766			1,932			4,824		1,159		—		(60)		16,217
Special mention	—			252			146			291			179			157		186		—		—		1,211
Substandard	41			244			208			492			364			507		—		—		—		1,856
Nonperforming	—			26			79			39			9			141		—		—		—		294
Total	836			1,999			2,757			4,588			2,484			5,629		1,345		—		(60)		19,578
Gross charge-offs	—			17			12			1			—			40		—		—		—		70
Commercial construction:
Pass	208			604			1,634			1,425			335			96		1,746		—		—		6,048
Special mention	37			112			58			661			282			—		83		—		—		1,233
Substandard	—			180			172			983			79			—		69		—		—		1,483
Nonperforming	—			2			—			—			—			—		—		—		—		2
Total	245			898			1,864			3,069			696			96		1,898		—		—		8,766








Consumer:
Residential mortgage:

Current	976			4,547			2,719			12,557			15,265			18,695		—		—		—		54,759
30 - 89 days past due	8			23			33			52			76			439		—		—		—		631
90 days or more past due	—			15			71			56			37			351		—		—		—		530
Nonperforming	—			—			4			30			24			121		—		—		—		179
Total	984			4,585			2,827			12,695			15,402			19,606		—		—		—		56,099
Gross charge-offs	—			—			—			—			—			1		—		—		—		1
Home equity:

Current	—			—			—			—			—			—		6,117		3,229		—		9,346
30 - 89 days past due	—			—			—			—			—			—		41		16		—		57
90 days or more past due	—			—			—			—			—			—		4		2		—		6
Nonperforming	—			—			—			—			—			—		39		75		—		114
Total	—			—			—			—			—			—		6,201		3,322		—		9,523
Gross charge-offs	—			—			—			—			—			—		2		—		—		2
Indirect auto:

Current	3,104			8,175			2,821			4,688			2,435			1,680		—		—		(7)		22,896
30 - 89 days past due	3			80			84			133			82			102		—		—		—		484

Nonperforming	—			29			47			72			47			53		—		—		—		248
Total	3,107			8,284			2,952			4,893			2,564			1,835		—		—		(7)		23,628
Gross charge-offs	—			21			34			47			22			30		—		—		—		154
Other consumer:

Current	3,128			8,729			5,585			4,678			2,064			2,417		2,580		19		3		29,203
30 - 89 days past due	5			46			69			51			29			38		6		2		—		246
90 days or more past due	—			6			9			5			—			1		2		—		—		23
Nonperforming	—			8			14			14			12			17		—		—		—		65
Total	3,133			8,789			5,677			4,748			2,105			2,473		2,588		21		3		29,537
Gross charge-offs	7			35			48			34			12			12		6		—		—		154







Credit card:
Current	—			—			—			—			—			—		4,695		10		—		4,705
30 - 89 days past due	—			—			—			—			—			—		70		1		—		71
90 days or more past due	—			—			—			—			—			—		51		1		—		52

Total	—			—			—			—			—			—		4,816		12		—		4,828
Gross charge-offs	—			—			—			—			—			—		73		1		—		74
Total	$	18,140		$	46,285		$	30,145		$	50,096		$	34,471		$	48,833	$	77,571	$	3,355	$	(258)	$	308,638
Gross charge-offs	$	10		$	78		$	118		$	86		$	36		$	95	$	133	$	1	$	—	$	557

Truist Financial Corporation 15


December 31, 2024 (Dollars in millions)	Amortized Cost Basis by Origination Year																	Revolving Credit		Loans Converted to Term		Other(1)
2024			2023			2022			2021			2020			Prior					Total
Commercial:
Commercial and industrial:
Pass	$	22,675		$	14,595		$	20,976		$	11,449		$	6,607		$	13,087	$	58,790	$	—	$	(199)	$	147,980
Special mention	460			302			377			407			80			254		830		—		—		2,710
Substandard	481			608			618			234			180			484		1,032		—		—		3,637
Nonperforming	28			98			64			31			11			60		229		—		—		521
Total	23,644			15,603			22,035			12,121			6,878			13,885		60,881		—		(199)		154,848
Gross charge-offs	33			126			66			14			6			42		108		—		—		395
CRE:
Pass	1,704			2,696			3,788			1,955			1,557			3,649		1,794		—		(64)		17,079
Special mention	262			65			331			197			52			29		91		—		—		1,027
Substandard	252			207			374			356			157			499		114		—		—		1,959
Nonperforming	7			134			52			7			34			64		—		—		—		298
Total	2,225			3,102			4,545			2,515			1,800			4,241		1,999		—		(64)		20,363
Gross charge-offs	14			48			111			1			32			110		—		—		—		316
Commercial construction:
Pass	721			1,603			1,521			516			37			71		1,461		—		—		5,930
Special mention	100			106			701			158			70			95		79		—		—		1,309
Substandard	54			95			752			308			—			—		69		—		—		1,278
Nonperforming	2			—			1			—			—			—		—		—		—		3
Total	877			1,804			2,975			982			107			166		1,609		—		—		8,520







Consumer:
Residential mortgage:

Current	4,174			2,754			12,743			15,471			5,298			13,793		—		—		—		54,233
30 - 89 days past due	21			30			69			70			49			480		—		—		—		719
90 or more days past due	7			53			44			31			34			312		—		—		—		481
Nonperforming	—			4			22			26			7			107		—		—		—		166
Total	4,202			2,841			12,878			15,598			5,388			14,692		—		—		—		55,599
Gross charge-offs	—			—			—			—			—			3		—		—		—		3
Home equity:

Current	—			—			—			—			—			—		6,135		3,322		—		9,457
30 - 89 days past due	—			—			—			—			—			—		42		18		—		60
90 days or more past due	—			—			—			—			—			—		6		3		—		9
Nonperforming	—			—			—			—			—			—		39		77		—		116
Total	—			—			—			—			—			—		6,222		3,420		—		9,642
Gross charge-offs	—			—			—			—			—			—		9		—		—		9
Indirect auto:

Current	8,904			3,130			5,279			2,814			1,299			791		—		—		(9)		22,208
30 - 89 days past due	80			113			177			110			58			84		—		—		—		622

Nonperforming	17			49			78			53			28			34		—		—		—		259
Total	9,001			3,292			5,534			2,977			1,385			909		—		—		(9)		23,089
Gross charge-offs	23			120			216			98			47			87		—		—		—		591
Other consumer:

Current	9,945			6,285			5,172			2,340			1,198			1,498		2,608		21		3		29,070
30 - 89 days past due	44			71			63			25			12			14		6		1		—		236
90 days or more past due	5			10			5			1			—			—		2		—		—		23
Nonperforming	5			18			16			12			5			10		—		—		—		66
Total	9,999			6,384			5,256			2,378			1,215			1,522		2,616		22		3		29,395
Gross charge-offs	90			193			159			70			35			31		28		—		—		606







Credit card:
Current	—			—			—			—			—			—		4,778		14		—		4,792
30 - 89 days past due	—			—			—			—			—			—		80		1		—		81
90 days or more past due	—			—			—			—			—			—		53		1		—		54

Total	—			—			—			—			—			—		4,911		16		—		4,927
Gross charge-offs	—			—			—			—			—			—		287		9		—		296
Total	$	49,948		$	33,026		$	53,223		$	36,571		$	16,773		$	35,415	$	78,238	$	3,458	$	(269)	$	306,383
Gross charge-offs	$	160		$	487		$	552		$	183		$	120		$	273	$	432	$	9	$	—	$	2,216

(1)Includes certain deferred fees and costs and other adjustments.

16 Truist Financial Corporation

ACL

The following tables present activity in the ACL:






























































(Dollars in millions)	Balance at Jan 1, 2024		Charge-Offs		Recoveries		Provision (Benefit)		Other(1)		Balance at Mar 31, 2024
Commercial:
Commercial and industrial	$	1,404	$	(97)	$	32	$	22	$	(1)	$	1,360
CRE	616		(103)		7		143		—		663
Commercial construction	174		—		—		24		—		198

Consumer:
Residential mortgage	298		(1)		1		(76)		—		222
Home equity	89		(3)		5		(1)		—		90
Indirect auto	942		(154)		28		107		—		923
Other consumer	890		(165)		28		206		—		959

Credit card	385		(77)		9		71		—		388

ALLL	4,798		(600)		110		496		(1)		4,803
RUFC	295		—		—		4		(2)		297
ACL	$	5,093	$	(600)	$	110	$	500	$	(3)	$	5,100

(Dollars in millions)	Balance at Jan 1, 2025		Charge-Offs		Recoveries		Provision (Benefit)		Other(1)		Balance at Mar 31, 2025
Commercial:
Commercial and industrial	$	1,284	$	(102)	$	24	$	100	$	1	$	1,307
CRE	643		(70)		7		24		—		604
Commercial construction	257		—		—		23		—		280

Consumer:
Residential mortgage	204		(1)		2		22		—		227
Home equity	89		(2)		4		2		—		93
Indirect auto	955		(154)		25		129		—		955
Other consumer	994		(154)		30		119		—		989

Credit card	431		(74)		11		47		—		415

ALLL	4,857		(557)		103		466		1		4,870
RUFC	304		—		—		(8)		—		296
ACL	$	5,161	$	(557)	$	103	$	458	$	1	$	5,166

(1)Includes the amounts for the ALLL for PCD acquisitions and other activity.

The commercial ALLL increased $7 million, and the consumer and credit card ALLL increased $6 million in the three months ended March 31, 2025. The increase in total ALLL reflects an increase in loan volume with a generally stable reserve rate that considers uncertainty in the economic outlook. The increase in commercial ALLL reflects an increase in commercial loan balances and an increase in reserve rates primarily in commercial construction. The increase in consumer and credit card ALLL was primarily driven by loan growth with an increase in the reserve rate in residential real estate, partially offset by a decrease in volume and reserves in certain consumer non-real-estate portfolios.

The quantitative models have been designed to estimate losses using macro-economic forecasts over a reasonable and supportable forecast period of two years, followed by a reversion to long-term historical loss conditions over a one-year period. Forecasts of macroeconomic variables used in loss forecasting include unemployment trends, U.S. real GDP, corporate credit spreads, property values, home price indices, and used car prices.

The overall economic forecast incorporates a third-party baseline forecast that is adjusted to reflect Truist’s interest rate outlook. Management also considers optimistic and pessimistic third-party macro-economic forecasts in order to capture uncertainty in the economic environment. These forecasts, along with the primary economic forecast, are weighted 40% baseline, 30% optimistic, and 30% pessimistic in the March 31, 2025 ACL, unchanged since December 31, 2024. While the scenario weightings were unchanged, the economic outlook showed signs of deterioration compared to the prior quarter, primarily related to potential impacts of tariffs and increases to inflation. Risks, including tariff and inflation-related uncertainty not fully captured by the quantitative models and scenario weightings, are incrementally reflected in the qualitative component. The economic forecast shaping the quantitative model outcomes of the ACL estimate as of March 31, 2025 included low, single-digit GDP growth and a mid-to-high single-digit unemployment rate.

Truist Financial Corporation 17

Quantitative models have certain limitations with respect to estimating expected losses, particularly in times of rapidly changing macro-economic conditions and forecasts. As a result, management believes that the qualitative component of the ACL, which incorporates management’s judgment related to expected future credit losses, will continue to be an important component of the ACL for the foreseeable future. The March 31, 2025 ACL estimate includes adjustments to consider the impact of current and expected events or risks not captured by the loss forecasting models, the outcomes of which are uncertain and may not be completely considered by quantitative models. Refer to “Note 1. Basis of Presentation” in Truist’s Annual Report on Form 10-K for the year ended December 31, 2024 for additional information.

NPAs

The following table provides a summary of nonperforming loans and leases, excluding LHFS:


	March 31, 2025				December 31, 2024
	Recorded Investment				Recorded Investment
(Dollars in millions)	Without an ALLL		With an ALLL		Without an ALLL		With an ALLL
Commercial:
Commercial and industrial	$	101	$	485	$	52	$	469
CRE	23		271		32		266
Commercial construction	—		2		—		3

Consumer:
Residential mortgage	2		177		1		165
Home equity	1		113		1		115
Indirect auto	—		248		23		236
Other consumer	—		65		—		66


Total	$	127	$	1,361	$	109	$	1,320

The following table presents a summary of nonperforming assets and residential mortgage loans in the process of foreclosure:


(Dollars in millions)	Mar 31, 2025		Dec 31, 2024
Nonperforming loans and leases HFI	$	1,488	$	1,429
Nonperforming LHFS	77		—
Foreclosed real estate	4		3
Other foreclosed property	49		45
Total nonperforming assets	$	1,618	$	1,477

Residential mortgage loans in the process of foreclosure	$	208	$	169

18 Truist Financial Corporation

Loan Modifications

The following tables summarize the amortized cost basis and the weighted average financial effect of loans to borrowers experiencing financial difficulty that were modified during the period, disaggregated by class of financing receivable and type of modification granted.


Three Months Ended March 31, 2025 (Dollars in millions)	Renewals		Term Extensions		Interest Rate Adjustments		Capitalizations		Payment Delays		Combination - Capitalization and Term Extension		Other		Total Modified Loans		Percentage of Total Class of Financing Receivable
Commercial:
Commercial and industrial	$	283	$	—	$	—	$	—	$	46	$	—	$	—	$	329	0.21	%
CRE	223		—		—		—		—		—		—		223		1.14
Commercial construction	38		—		—		—		—		—		—		38		0.43
Consumer:
Residential mortgage	—		19		—		34		36		83		21		193		0.34
Home equity	—		—		—		—		—		—		1		1		0.01
Indirect auto	—		5		—		—		624		—		8		637		2.70
Other consumer	—		9		—		—		—		—		1		10		0.03
Credit card	—		—		8		—		—		—		—		8		0.17
Total	$	544	$	33	$	8	$	34	$	706	$	83	$	31	$	1,439	0.47


Three Months Ended March 31, 2024 (Dollars in millions)	Renewals		Term Extensions		Capitalizations		Payment Delays		Combination - Capitalization and Term Extension		Other		Total Modified Loans		Percentage of Total Class of Financing Receivable
Commercial:
Commercial and industrial	$	142	$	—	$	—	$	1	$	—	$	15	$	158	0.10	%
CRE	167		—		—		10		—		13		190		0.86
Commercial construction	45		—		—		—		—		—		45		0.60
Consumer:
Residential mortgage	—		19		13		16		55		10		113		0.21
Home equity	—		—		—		—		—		2		2		0.02
Indirect auto	—		6		—		549		—		7		562		2.54
Other consumer	—		9		—		—		—		1		10		0.04

Credit card	—		—		—		—		—		10		10		0.20
Total	$	354	$	34	$	13	$	576	$	55	$	58	$	1,090	0.35

Truist Financial Corporation 19





































Three Months Ended March 31, 2025
Loan Type						Financial Effect
Renewals
Commercial and industrial						Extended the term by 7 months and increased the interest rate by 0.2%.
CRE						Extended the term by 18 months and increased the interest rate by 0.03%.
Commercial construction						Extended the term by 12 months.
Term Extensions

Residential mortgage						Extended the term by 90 months.

Indirect auto						Extended the term by 26 months.
Other consumer						Extended the term by 25 months.
Interest Rate Adjustments


Credit card						Decreased the interest rate by 17%.
Capitalizations
Residential mortgage						Capitalized a portion of forborne loan and other advanced payments into the outstanding loan balance.
Payment Delays
Commercial and industrial						Provided 180 days of payment deferral.

Residential mortgage						Provided 224 days of payment deferral.

Indirect auto						Provided 244 days of payment deferral.







Combination - Capitalization and Term Extension
Residential mortgage						Capitalized a portion of forborne loan and other advanced payments into the outstanding loan balance and extended the term by 99 months.

20 Truist Financial Corporation






























Three Months Ended March 31, 2024
Loan Type						Financial Effect
Renewals
Commercial and industrial						Extended the term by 11 months and increased the interest rate by 0.5%.
CRE						Extended the term by 6 months and increased the interest rate by 0.5%.
Commercial construction						Extended the term by 11 months and increased the interest rate by 0.1%.
Term Extensions

Residential mortgage						Extended the term by 105 months.
Indirect auto						Extended the term by 26 months.
Other consumer						Extended the term by 26 months.
Capitalizations
Residential mortgage						Capitalized a portion of forborne loan and other advanced payments into the outstanding loan balance.
Payment Delays
Commercial and industrial						Provided 90 days of payment deferral.
CRE						Provided 90 days of payment deferral.
Residential mortgage						Provided 193 days of payment deferral.

Indirect auto						Provided 186 days of payment deferral.







Combination - Capitalization and Term Extension
Residential mortgage						Capitalized a portion of forborne loan and other advanced payments into the outstanding loan balance and extended the term by 85 months.

The tables above exclude trial modifications totaling $55 million and $40 million as of March 31, 2025 and 2024, respectively. Such modifications will be included in the modification activity disclosure if the borrower successfully completes the trial period and the loan modification is finalized.

As of March 31, 2025 and December 31, 2024, Truist had $330 million and $336 million, respectively, in unfunded lending commitments to lend additional funds to borrowers experiencing financial difficulty for which Truist has modified the terms of the loans in the ways described above during the twelve months preceding March 31, 2025 and December 31, 2024, respectively.

Upon Truist’s determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the ACL is adjusted by the same amount.

Truist Financial Corporation 21

Truist closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table summarizes the period-end delinquency status and amortized cost of loans that were modified in the last 12 months. The period-end delinquency status of loans that were modified are disclosed at amortized cost and reflect the impact of any paydowns, payoffs, or charge-offs that occurred subsequent to modification.


	Payment Status (Amortized Cost Basis)
March 31, 2025 (Dollars in millions)	Current		30-89 Days Past Due		90 Days or More Past Due		Total
Commercial:
Commercial and industrial	$	950	$	13	$	55	$	1,018
CRE	447		—		—		447
Commercial construction	108		—		—		108
Consumer:
Residential mortgage	343		92		136		571
Home equity	5		—		—		5
Indirect auto	1,090		162		61		1,313
Other consumer	31		2		1		34
Credit card	19		3		3		25
Total	$	2,993	$	272	$	256	$	3,521
Total nonaccrual loans included above	$	306	$	43	$	154	$	503

	Payment Status (Amortized Cost Basis)
December 31, 2024 (Dollars in millions)	Current		30-89 Days Past Due		90 Days or More Past Due		Total
Commercial:
Commercial and industrial	$	974	$	44	$	18	$	1,036
CRE	313		7		3		323
Commercial construction	79		—		—		79
Consumer:
Residential mortgage	279		95		102		476
Home equity	9		—		—		9
Indirect auto	1,025		213		35		1,273
Other consumer	32		3		1		36
Credit card	20		3		2		25
Total	$	2,731	$	365	$	161	$	3,257
Total nonaccrual loans included above	$	232	$	78	$	91	$	401

The following table provides the amortized cost basis of financing receivables that were modified in the last twelve months and were in payment default at period end:


March 31, 2025 (Dollars in millions)	Renewals		Term Extensions		Interest Rate Adjustments		Capitalizations		Payment Delays		Combination - Capitalization and Term Extension		Other		Total
Commercial:
Commercial and industrial	$	55	$	—	$	—	$	—	$	—	$	—	$	—	$	55


Consumer:
Residential mortgage	—		14		—		5		77		34		6		136

Indirect auto	—		1		—		—		58		—		2		61
Other consumer	—		1		—		—		—		—		—		1
Credit card	—		—		3		—		—		—		—		3
Total	$	55	$	16	$	3	$	5	$	135	$	34	$	8	$	256

22 Truist Financial Corporation
















December 31, 2024 (Dollars in millions)	Renewals		Term Extensions		Interest Rate Adjustments		Capitalizations		Payment Delays		Combination - Capitalization and Term Extension		Other		Total
Commercial:
Commercial and industrial	$	18	$	—	$	—	$	—	$	—	$	—	$	—	$	18
CRE	3		—		—		—		—		—		—		3

Consumer:
Residential mortgage	—		13		—		6		44		33		6		102

Indirect auto	—		1		—		—		32		—		2		35
Other consumer	—		1		—		—		—		—		—		1
Credit card	—		—		2		—		—		—		—		2
Total	$	21	$	15	$	2	$	6	$	76	$	33	$	8	$	161

Unearned Income, Discounts, and Net Deferred Loan Fees and Costs

The following table presents additional information about loans and leases:


(Dollars in millions)			Mar 31, 2025						Dec 31, 2024
Unearned income, discounts, and net deferred loan fees and costs			$	495					$	595

Truist Financial Corporation 23

NOTE 6. Goodwill and Other Intangible Assets

The Company monitored events and circumstances during the period from January 1, 2025 to March 31, 2025, including macroeconomic and market factors, industry and banking sector events, Truist specific performance indicators, a comparison of management’s forecast and assumptions to those used in its October 1, 2024 quantitative impairment test, and the sensitivity of the October 1, 2024 quantitative results to changes in assumptions as of March 31, 2025. Based on these considerations, Truist concluded that it was not more-likely-than-not that the fair value of one or more of its reporting units is below its respective carrying amount as of March 31, 2025.

The Company most recently performed its annual goodwill impairment test for its CSBB, WB, and Wealth reporting units as of October 1, 2024. Based on the results of the quantitative analyses, the Company concluded that the fair values of the CSBB, WB and Wealth reporting units exceeded their respective carrying values; therefore, there was no goodwill impairment. However, for the WB reporting unit, the fair value of the reporting unit exceeded its carrying value by approximately 10%, indicating that the goodwill of the WB reporting unit may remain at risk of impairment. The fair values of the CSBB, WB, and Wealth reporting units were estimated using the income approach and a market-based approach, each weighted 50%.

The changes in the carrying amount of goodwill attributable to operating segments are reflected in the table below. Activity during 2024 primarily relates to the segment realignment and the divestiture of Sterling Capital Management, LLC. Refer to “Note 18. Operating Segments” for additional information on segments and “Note 21. Operating Segments” of the Annual Report on Form 10-K for the year ended December 31, 2024 for additional information on the segment realignment.



(Dollars in millions)	CSBB		WB		Total



Goodwill, January 1, 2024	$	13,503	$	3,653	$	17,156

Segment realignment	(1,498)		1,498		—
Divestitures	—		(32)		(32)

Adjustments and other	—		1		1
Goodwill, December 31, 2024	12,005		5,120		17,125





Goodwill, March 31, 2025	$	12,005	$	5,120	$	17,125

The following table, which excludes fully amortized intangibles, presents information for identifiable intangible assets:


		March 31, 2025									December 31, 2024
(Dollars in millions)	Gross Carrying Amount			Accumulated Amortization			Net Carrying Amount			Gross Carrying Amount			Accumulated Amortization			Net Carrying Amount
CDI		$	2,427		$	(1,854)		$	573		$	2,453		$	(1,837)		$	616
Other, primarily client relationship intangibles		1,463			(563)			900			1,458			(524)			934
Total		$	3,890		$	(2,417)		$	1,473		$	3,911		$	(2,361)		$	1,550

24 Truist Financial Corporation

NOTE 7. Loan Servicing

The Company acquires servicing rights, and retains servicing rights related to certain of its sales or securitizations of residential mortgages, commercial mortgages, and other consumer loans. Servicing rights are capitalized by the Company as Loan servicing rights on the Consolidated Balance Sheets. Income earned by the Company on its loan servicing rights is derived primarily from contractually specified servicing fees, late fees, net of curtailment costs, and other ancillary fees.

Residential Mortgage Activities

The following tables summarize residential mortgage servicing activities:



(Dollars in millions)	Mar 31, 2025			Dec 31, 2024
UPB of residential mortgage loan servicing portfolio	$	271,268		$	273,412
UPB of residential mortgage loans serviced for others, primarily agency conforming fixed rate	216,148			218,475
Mortgage loans sold with recourse	142			146
Maximum recourse exposure from mortgage loans sold with recourse liability	89			91
Indemnification, recourse and repurchase reserves	43			44

As of / For the Three Months Ended March 31, (Dollars in millions)	2025			2024
UPB of residential mortgage loans sold from LHFS	$	2,508		$	1,763
Pre-tax gains recognized on mortgage loans sold and held for sale	15			15
Servicing fees recognized from mortgage loans serviced for others	154			147
Approximate weighted average servicing fee on the outstanding balance of residential mortgage loans serviced for others	0.28		%	0.28		%
Weighted average interest rate on mortgage loans serviced for others	3.68			3.59

The following table presents a roll forward of the carrying value of residential MSRs recorded at fair value:




(Dollars in millions)	2025		2024
Residential MSRs, carrying value, January 1	$	3,430	$	3,088

Additions	53		30
Sales	—		(1)
Change in fair value due to changes in valuation inputs or assumptions	(49)		77
Realization of expected net servicing cash flows, passage of time, and other	(68)		(60)
Residential MSRs, carrying value, March 31	$	3,366	$	3,134

The sensitivity of the fair value of the Company’s residential MSRs to changes in key assumptions is presented in the following table:


	March 31, 2025								December 31, 2024
	Range				Weighted Average				Range					Weighted Average
(Dollars in millions)	Min		Max					Min			Max
Prepayment speed	6.4	%	13.3	%	7.4		%		6.3	%		11.2	%	7.1		%
Effect on fair value of a 10% increase					$	(92)								$	(89)
Effect on fair value of a 20% increase					(179)									(172)
OAS	1.5	%	12.2	%	4.7		%		1.8	%		12.5	%	4.8		%
Effect on fair value of a 10% increase					$	(68)								$	(70)
Effect on fair value of a 20% increase					(133)									(138)
Composition of loans serviced for others:
Fixed-rate residential mortgage loans					99.7		%							99.7		%
Adjustable-rate residential mortgage loans					0.3									0.3
Total					100.0		%							100.0		%
Weighted average life					7.5 years									7.6 years

The sensitivity calculations above are hypothetical and should not be considered predictive of future performance. As indicated, changes in fair value based on adverse changes in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, in the above table, the effect of an adverse variation in one assumption on the fair value of the MSRs is calculated without changing any other assumption; while in reality, changes in one factor may result in changes in another, which may magnify or counteract the effect of the change. See “Note 15. Fair Value Disclosures” for additional information on the valuation techniques used.

Truist Financial Corporation 25

Commercial Mortgage Activities

The following table summarizes commercial mortgage servicing activities:



(Dollars in millions)	Mar 31, 2025		Dec 31, 2024
UPB of CRE mortgages serviced for others	$	27,570	$	27,845
CRE mortgages serviced for others covered by recourse provisions	9,915		9,985
Maximum recourse exposure from CRE mortgages sold with recourse liability	2,915		2,940
Recorded reserves related to recourse exposure	11		11
CRE mortgages originated during the year-to-date period	90		1,467
Commercial MSRs at fair value	251		265

NOTE 8. Other Assets and Liabilities

Lessee Operating and Finance Leases

The Company leases certain assets, consisting primarily of real estate, and assesses at contract inception whether a contract is, or contains, a lease. The following tables present additional information on leases, excluding leases related to the lease financing businesses:




	March 31, 2025						December 31, 2024
(Dollars in millions)	Operating Leases			Finance Leases			Operating Leases			Finance Leases
ROU assets	$	992		$	16		$	1,015		$	17
Lease liabilities	1,263			18			1,301			19
Weighted average remaining term	6.7 years			7.6 years			6.7 years			7.8 years
Weighted average discount rate	3.6		%	5.1		%	3.5		%	5.1		%


	Three Months Ended March 31,
(Dollars in millions)		2025		2024
Operating lease costs		$	68	$	77

Lessor Operating Leases

The Company’s two primary lessor businesses are equipment financing and structured real estate with income recorded in Operating lease income on the Consolidated Statements of Income. The following table presents a summary of assets under operating leases held for investment. This table excludes subleases on assets included in premises and equipment.


(Dollars in millions)	Mar 31, 2025		Dec 31, 2024
Assets held under operating leases(1)(2)	$	1,953	$	1,843


Accumulated depreciation	(541)		(539)
Net	$	1,412	$	1,304

(1)Includes certain land parcels subject to operating leases that have indefinite lives.

(2)Excludes operating leases held-for-sale that totaled $15 million and $18 million at March 31, 2025 and December 31, 2024, respectively.

Bank-Owned Life Insurance

Bank-owned life insurance consists of life insurance policies held on certain teammates for which the Company is the beneficiary. The carrying value of bank-owned life insurance was $7.8 billion at March 31, 2025 and December 31, 2024.

26 Truist Financial Corporation

NOTE 9. Borrowings

The following table presents a summary of long-term debt:


(Dollars in millions)	Mar 31, 2025		Dec 31, 2024


Truist Financial Corporation:(1)
Fixed rate senior notes	$	22,308	$	22,134

Fixed rate subordinated notes(2)	1,827		1,828
Capital notes(2)	635		634

Truist Bank:(1)
Fixed rate senior notes	501		1,744

Fixed rate subordinated notes(2)	4,782		4,771

Floating rate FHLB advances	500		2,400
Other long-term debt(3)	1,477		1,445


Total long-term debt	$	32,030	$	34,956

(1)Certain senior and subordinated notes convert from fixed to floating one year prior to maturity, and are callable within the final year of maturity at par.

(2)Subordinated and capital notes with a remaining maturity of one year or greater qualify under the risk-based capital guidelines as Tier 2 supplementary capital, subject to certain limitations.

(3)Includes debt associated with finance leases, tax credit investments, and other.

NOTE 10. Shareholders’ Equity

Common Stock

The following table presents total dividends declared per share of common stock:


	Three Months Ended March 31,
		2025		2024
Cash dividends declared per share		$	0.52	$	0.52

Share Repurchase Activity

In June 2024, Truist announced that the Board had authorized the repurchase of up to $5.0 billion of common stock beginning in the third quarter of 2024 through 2026 as part of Truist’s overall capital distribution strategy. During the first quarter of 2025, the Company repurchased $503 million of common stock, including excise tax, which represented 11.3 million shares, through open market repurchases. Repurchased shares revert to the status of authorized and unissued shares upon repurchase. At March 31, 2025, Truist had remaining authorization to repurchase up to $3.5 billion of common stock under the Board approved repurchase plan.

Truist Financial Corporation 27

NOTE 11. AOCI

AOCI includes the after-tax change in unrecognized net costs related to defined benefit pension and OPEB plans as well as unrealized gains and losses on cash flow hedges, AFS securities, and HTM securities previously transferred from AFS securities.






(Dollars in millions)	Pension and OPEB Costs		Cash Flow Hedges		AFS Securities		HTM Securities		Other, net		Total
AOCI balance, January 1, 2024	$	(1,079)	$	(300)	$	(8,778)	$	(2,347)	$	(2)	$	(12,506)
OCI before reclassifications, net of tax	1		(232)		(455)		—		(2)		(688)

Amounts reclassified from AOCI:
Before tax	—		55		(158)		66		—		(37)
Tax effect	—		13		(37)		15		—		(9)
Amounts reclassified, net of tax	—		42		(121)		51		—		(28)
Total OCI, net of tax	1		(190)		(576)		51		(2)		(716)
AOCI balance, March 31, 2024	$	(1,078)	$	(490)	$	(9,354)	$	(2,296)	$	(4)	$	(13,222)
AOCI balance, January 1, 2025	$	(648)	$	(861)	$	(4,573)	$	(2,125)	$	(6)	$	(8,213)
OCI before reclassifications, net of tax	5		358		543		—		1		907

Amounts reclassified from AOCI:
Before tax	—		93		(85)		65		—		73
Tax effect	—		22		(20)		15		—		17
Amounts reclassified, net of tax	—		71		(65)		50		—		56
Total OCI, net of tax	5		429		478		50		1		963
AOCI balance, March 31, 2025	$	(643)	$	(432)	$	(4,095)	$	(2,075)	$	(5)	$	(7,250)





























Primary income statement location of amounts reclassified from AOCI	Other expense		Net interest income		Securities gains (losses) and Interest on securities		Interest on securities		Other income

28 Truist Financial Corporation

NOTE 12. Income Taxes

For the three months ended March 31, 2025 and 2024, the provision for income taxes from continuing operations was $274 million and $232 million, respectively, representing effective tax rates of 17.9% and 17.0%, respectively. The higher effective tax rate for the three months ended March 31, 2025 was primarily due to higher forecasted 2025 pre-tax earnings, partially offset by lower discrete tax expense. The Company calculated the provision for income taxes by applying the estimated annual effective tax rate to year-to-date pre-tax income and adjusting for discrete items that occurred during the period.

NOTE 13. Benefit Plans

The components of net periodic (benefit) cost for defined benefit pension plans are summarized in the following table:


		Three Months Ended March 31,
(Dollars in millions)	Income Statement Location	2025		2024
Service cost(1)	Personnel expense / Net income from discontinued operations	$	68	$	96
Interest cost	Other expense	114		108
Estimated return on plan assets	Other expense	(243)		(244)
Amortization and other	Other expense	—		1
Net periodic (benefit) cost		$	(61)	$	(39)

(1)Includes $7 million for the three months ended March 31, 2024 of service cost reported in net income from discontinued operations for the qualified defined benefit pension plan for employees of TIH.

Truist may make contributions to the qualified pension plans up to the maximum amount deductible for federal income tax purposes. Truist did not make a discretionary contribution to the qualified pension plan during the three months ended March 31, 2025.

Truist Financial Corporation 29

NOTE 14. Commitments and Contingencies

Truist utilizes a variety of financial instruments to mitigate exposure to risks and meet the financing needs and provide investment opportunities for clients. These financial instruments include commitments to extend credit, letters of credit and financial guarantees, derivatives, and other investments. Truist also has commitments to fund certain affordable housing investments and contingent liabilities related to certain sold loans.

Tax Credit and Certain Equity Investments

The following table summarizes certain tax credit and certain equity investments:


(Dollars in millions)	Balance Sheet Location	Mar 31, 2025		Dec 31, 2024
Investments in affordable housing projects and other qualified tax credits:
Carrying amount	Other assets	$	7,734	$	7,782
Amount of future funding commitments included in carrying amount	Other liabilities	2,547		2,667
Lending exposure	Loans and leases for funded amounts	2,251		2,376

Renewable energy investments:
Carrying amount	Other assets	752		551
Amount of future funding commitments not included in carrying amount	NA	649		702
SBIC and certain other equity method investments:
Carrying amount	Other assets	918		878
Amount of future funding commitments not included in carrying amount	NA	618		613

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.


		Three Months Ended March 31,
(Dollars in millions)	Income Statement Location	2025		2024
Tax credits:


Investments in affordable housing projects, other qualified tax credits, and other community development investments	Provision for income taxes	$	211	$	185

Amortization and other changes in carrying amount:
Investments in affordable housing projects and other qualified tax credits	Provision for income taxes	$	188	$	171
Other community development investments	Other noninterest income	2		2

Letters of Credit and Financial Guarantees

In the normal course of business, Truist utilizes certain financial instruments to meet the financing needs of clients and to mitigate exposure to risks. Such financial instruments include commitments to extend credit and certain contractual agreements, including standby letters of credit and financial guarantee arrangements.

The following is a summary of selected notional amounts of off-balance sheet financial instruments:


(Dollars in millions)	Mar 31, 2025		Dec 31, 2024
Commitments to extend, originate, or purchase credit and other commitments	$	215,892	$	210,645
Residential mortgage loans sold with recourse	142		146
CRE mortgages serviced for others covered by recourse provisions	9,915		9,985
Other loans serviced for others covered by recourse and other provisions	2,118		2,022
Letters of credit	8,329		7,532

30 Truist Financial Corporation

Total Return Swaps

The Company enters into TRS transactions with third-party clients, whereby a VIE purchases reference assets identified by a client. The Company financially supports the VIE’s purchases of the reference assets. Reference assets are typically fixed income instruments primarily composed of syndicated bank loans. The TRS contracts pass through interest and other cash flows on the reference assets to the third-party clients, along with exposing those clients to decreases in value on the reference assets and providing them with the rights to appreciation on the reference assets. The terms of the TRS contracts require the third-party clients to post initial margin collateral, as well as ongoing variation margin as the fair values of the underlying reference assets change. The following table provides a summary of the TRS transactions with the associated VIE reference assets, which include trading loans and bonds:


(Dollars in millions)	Mar 31, 2025		Dec 31, 2024
Total return swaps:
VIE assets	$	2,257	$	1,854
Trading loans and bonds	1,962		1,473
VIE liabilities	465		356

The Company concluded that the associated VIEs should be consolidated because the Company has (i) the power to direct the activities that most significantly impact the economic performance of the VIE and (ii) the obligation to absorb losses and the right to receive benefits, which could potentially be significant. The activities of the VIEs are restricted to buying and selling the reference assets, and the risks/benefits of any such assets owned by the VIEs are passed to the third-party clients via the TRS contracts.

Pledged Assets

Certain assets were pledged to secure municipal deposits, securities sold under agreements to repurchase, certain derivative agreements, and borrowings or borrowing capacity, as well as to fund certain obligations related to nonqualified defined benefit and defined contribution retirement plans and for other purposes as required or permitted by law. Assets pledged to the FHLB and FRB are subject to applicable asset discounts when determining borrowing capacity. The Company has capacity for secured financing from both the FRB and FHLB and letters of credit from the FHLB. The Company’s letters of credit from the FHLB can be used to secure various client deposits, including public fund relationships. Excluding assets related to nonqualified benefit plans, the majority of the agreements governing the pledged assets do not permit the other party to sell or repledge the collateral. The following table provides the total carrying amount of pledged assets by asset type:


(Dollars in millions)	Mar 31, 2025		Dec 31, 2024
Pledged securities	$	38,172	$	48,058

Pledged loans:
FRB	102,211		93,497
FHLB	70,894		71,931
Unused borrowing capacity:
FRB	79,737		72,040
FHLB	32,041		31,411

Legal Proceedings and Other Matters

Truist is routinely named as a defendant in or a party to numerous actual or threatened legal proceedings and other matters and is or may be subject to potential liability in connection with them. The legal proceedings and other matters may be formal or informal and include litigation and arbitration with one or more identified claimants, certified or purported class actions with yet-to-be-identified claimants, and regulatory or other governmental information-gathering requests, examinations, investigations, and enforcement proceedings. Claims may be based in law or equity—such as those arising under contracts or in tort and those involving banking, consumer-protection, securities, antitrust, tax, employment, and other laws—and some present novel legal theories, allegations of substantial or indeterminate damages, demands for injunctive or similar relief, and requests for fines, penalties, restitution, or alterations in Truist’s business practices. Our legal proceedings and other matters exist in varying stages of adjudication, arbitration, negotiation, or investigation and span our business lines and operations.

The course and outcome of legal proceedings and other matters are inherently unpredictable. This is especially so when a matter is still in its early stages, the damages sought are indeterminate or unsupported, significant facts are unclear or disputed, novel questions of law or other meaningful legal uncertainties exist, a request to certify a proceeding as a class action is outstanding or granted, multiple parties are named, or regulatory or other governmental entities are involved. As a result, we often are unable to determine how or when actual or threatened legal proceedings and other matters will be resolved and what losses may be incrementally and ultimately incurred. It is possible that the ultimate resolution of these matters, including the matter described below, if unfavorable, may be material to the consolidated financial position, consolidated results of operations, or consolidated cash flows of Truist, or cause significant reputational consequences.

Truist Financial Corporation 31

Truist establishes accruals for legal proceedings and other matters when potential losses become probable and the amount of loss can be reasonably estimated. Accruals are evaluated each quarter and may be adjusted, upward or downward, based on our best judgment after consultation with counsel and others. No assurance exists that our accruals will not need to be adjusted in the future. Actual losses may be higher or lower than any amounts accrued, possibly to a significant degree.

The Company estimates reasonably possible losses, in excess of amounts accrued, of up to approximately $375 million as of March 31, 2025. This estimate does not represent Truist’s maximum loss exposure, and actual losses may vary significantly. Also, the outcome of a particular matter may be one that the Company did not take into account in its estimate because the Company judged the likelihood of that outcome to be remote. In addition, the matters underlying this estimate may change from time to time. Estimated losses, like accruals, are based upon currently available information and involve considerable uncertainties and judgment.

For certain matters, Truist may be unable to estimate the loss or range of loss, even if it believes that a loss is probable or reasonably possible, until developments in the matter provide additional information sufficient to support such an estimate. These matters are not accrued for and are not reflected in the estimate of reasonably possible losses.

The following is a description of a legal proceeding in which Truist is involved:

Bickerstaff v. SunTrust Bank

This class action case was filed in Fulton County State Court on July 12, 2010, and an amended complaint was filed on August 9, 2010. Plaintiff alleges that all overdraft fees charged to his account which related to debit card and ATM transactions are actually interest charges and therefore subject to the usury laws of Georgia. The amended complaint asserts claims for violations of civil and criminal usury laws, conversion, and money had and received, and seeks damages on a class-wide basis, including refunds of challenged overdraft fees and pre-judgment interest. On October 6, 2017, the trial court granted plaintiff’s motion for class certification and defined the class as “Every Georgia citizen who had or has one or more accounts with SunTrust Bank and who, from July 12, 2006, to October 6, 2017 (i) had at least one overdraft of $500.00 or less resulting from an ATM or debit card transaction (the “Transaction”); (ii) paid any Overdraft Fees as a result of the Transaction; and (iii) did not receive a refund of those Fees,” and the granting of a certified class was affirmed on appeal. The class seeks a return of up to $452 million in paid overdraft fees from the 2006 to 2017 period above, plus prejudgment interest which, based on the amount of claimed fees, was estimated to be approximately $439 million as of March 31, 2025. A court-ordered mediation was held on February 28, 2024, but no resolution was reached. On March 4, 2024, the trial court issued an order granting in part and denying in part Truist’s motions to amend the class definition to narrow the scope of the class, to compel arbitration against certain class members, and for summary judgment. Truist and the class separately appealed the trial court’s order to the Georgia Court of Appeals.

On February 20, 2025, the Court of Appeals ruled on the appeals and affirmed in part and reversed in part the trial court’s March 4, 2024 order. Truist and the class filed motions to reconsider with the Court of Appeals, which were denied on March 19, 2025. On April 8, 2025, Truist filed a petition for a writ of certiorari with the Georgia Supreme Court, which remains pending. The class did not seek such a writ, and therefore, the rulings by the Court of Appeals in favor of Truist are final.

32 Truist Financial Corporation

NOTE 15. Fair Value Disclosures

Recurring Fair Value Measurements

Accounting standards define fair value as the price that would be received on the measurement date to sell an asset or the price paid to transfer a liability in the principal or most advantageous market available to the entity in an orderly transaction between market participants, with a three-level measurement hierarchy:

Level 1: Quoted prices for identical instruments in active markets
Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets
Level 3: Valuations derived from valuation techniques in which one or more significant inputs are unobservable

The following tables present fair value information for assets and liabilities measured at fair value on a recurring basis:


March 31, 2025 (Dollars in millions)	Total		Level 1		Level 2		Level 3		Netting Adjustments(1)
Assets:
Trading assets:
U.S. Treasury	$	137	$	—	$	137	$	—	$	—
GSE	42		—		42		—		—


States and political subdivisions	817		—		817		—		—

Corporate and other debt securities	1,681		—		1,681		—		—
Loans	2,269		—		2,269		—		—
Equity securities	499		499		—		—		—
Other	393		223		170		—		—
Total trading assets	5,838		722		5,116		—		—
AFS securities:
U.S. Treasury	14,458		—		14,458		—		—
GSE	444		—		444		—		—
Agency MBS – residential	50,269		—		50,269		—		—
Agency MBS – commercial	2,466		—		2,466		—		—
States and political subdivisions	360		—		360		—		—

Other	15		—		15		—		—
Total AFS securities	68,012		—		68,012		—		—
LHFS at fair value	917		—		917		—		—
Loans and leases	12		—		—		12		—
Loan servicing rights at fair value	3,628		—		—		3,628		—
Other assets:
Derivative assets	1,056		733		1,702		2		(1,381)
Equity securities	268		259		9		—		—

Total assets	$	79,731	$	1,714	$	75,756	$	3,642	$	(1,381)
Liabilities:
Interest-bearing deposits:
Brokered time deposits	$	279	$	—	$	279	$	—	$	—
Short-term borrowings:
Securities sold short	2,133		294		1,839		—		—
Other trading liabilities	196		—		196		—		—
Other liabilities:
Derivative liabilities	1,763		377		3,448		35		(2,097)
Total liabilities	$	4,371	$	671	$	5,762	$	35	$	(2,097)

Truist Financial Corporation 33


December 31, 2024 (Dollars in millions)	Total		Level 1		Level 2		Level 3		Netting Adjustments(1)
Assets:
Trading assets:
U.S. Treasury	$	143	$	—	$	143	$	—	$	—
GSE	41		—		41		—		—


States and political subdivisions	786		—		786		—		—

Corporate and other debt securities	1,679		—		1,679		—		—
Loans	1,671		—		1,671		—		—
Equity securities	413		413		—		—		—
Other	367		267		100		—		—
Total trading assets	5,100		680		4,420		—		—
AFS securities:
U.S. Treasury	14,411		—		14,411		—		—
GSE	403		—		403		—		—
Agency MBS – residential	49,959		—		49,959		—		—
Agency MBS – commercial	2,293		—		2,293		—		—
States and political subdivisions	382		—		382		—		—

Other	16		—		16		—		—
Total AFS securities	67,464		—		67,464		—		—
LHFS at fair value	1,233		—		1,233		—		—
Loans and leases	13		—		—		13		—
Loan servicing rights at fair value	3,708		—		—		3,708		—
Other assets:
Derivative assets	966		1,147		1,675		2		(1,858)
Equity securities	305		298		7		—		—

Total assets	$	78,789	$	2,125	$	74,799	$	3,723	$	(1,858)
Liabilities:
Interest-bearing deposits:
Brokered time deposits	$	192	$	—	$	192	$	—	$	—
Short-term borrowings:
Securities sold short	1,694		358		1,336		—		—
Other trading liabilities	202		—		202		—		—
Other liabilities:
Derivative liabilities	2,286		569		4,088		43		(2,414)
Total liabilities	$	4,374	$	927	$	5,818	$	43	$	(2,414)

(1)Refer to “Note 16. Derivative Financial Instruments” for additional discussion on netting adjustments.

At March 31, 2025 and December 31, 2024, investments totaling $557 million and $535 million, respectively, have been excluded from the table above as they are valued based on net asset value as a practical expedient. These investments primarily consist of certain SBIC funds.

For additional information on the valuation techniques and significant inputs for Level 2 and Level 3 assets and liabilities that are measured at fair value on a recurring basis, see “Note 18. Fair Value Disclosures” of the Annual Report on Form 10-K for the year ended December 31, 2024.

34 Truist Financial Corporation

Activity for Level 3 assets and liabilities is summarized below:




Three Months Ended March 31, 2025 and 2024 (Dollars in millions)	Loans and Leases		Loan Servicing Rights		Net Derivatives
Balance at January 1, 2024	$	15	$	3,378	$	(19)
Total realized and unrealized gains (losses):
Included in earnings	—		82		(3)


Issuances	—		32		(1)
Sales	—		(1)		—
Settlements	(1)		(74)		2


Balance at March 31, 2024	$	14	$	3,417	$	(21)
Balance at January 1, 2025	$	13	$	3,708	$	(41)
Total realized and unrealized gains (losses):
Included in earnings	—		(56)		6


Issuances	—		57		4

Settlements	(1)		(81)		(2)


Balance at March 31, 2025	$	12	$	3,628	$	(33)
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at March 31, 2025	$	—	$	(56)	$	(2)









































Primary income statement location of realized gains (losses) included in earnings	Other income		Mortgage banking income		Mortgage banking income

Fair Value Option

The following table details the fair value and UPB of certain loans and time deposits that were elected to be measured at fair value:


	March 31, 2025						December 31, 2024
(Dollars in millions)	Fair Value		UPB		Difference		Fair Value		UPB		Difference
Trading loans	$	2,269	$	2,355	$	(86)	$	1,671	$	1,697	$	(26)
Loans and leases	12		13		(1)		13		14		(1)
LHFS at fair value	917		901		16		1,233		1,232		1
Brokered time deposits	279		281		(2)		192		195		(3)

Nonrecurring Fair Value Measurements

The following table provides information about certain assets measured at fair value on a nonrecurring basis still held as of period end with valuation adjustments recorded during the period. The carrying values represent end of period values, which approximate the fair value.


(Dollars in millions)	Fair Value Hierarchy	Mar 31, 2025		Dec 31, 2024
Carrying value:
LHFS	Level 2	$	42	$	—
LHFS	Level 3	—		4
Loans and leases(1)	Level 3	324		525
Other	Level 3	99		147

(1)Total loans and leases measured at fair value on a nonrecurring basis still held as of period end were $610 million and $682 million at March 31, 2025 and December 31, 2024, respectively.

The following table provides information about valuation adjustments for certain assets measured at fair value on a nonrecurring basis. The valuation adjustments represent the amounts recorded during the period regardless of whether the asset is still held at period end.


	Three Months Ended March 31,
(Dollars in millions)	2025		2024
Valuation adjustments:
LHFS	$	(40)	$	(9)
Loans and leases	(220)		(272)
Other	(87)		(83)

LHFS with valuation adjustments in the table above consisted primarily of residential mortgages and commercial loans that were valued using market prices and measured at LOCOM.

Truist Financial Corporation 35

Loans and leases consist of larger commercial loans and leases that are collateral-dependent and other secured loans and leases that have been charged-off to the fair value of the collateral. Valuation adjustments for loans and leases are primarily recorded in the Provision for credit losses in the Consolidated Statement of Income. Refer to “Note 1. Basis of Presentation” in Truist’s Annual Report on Form 10-K for the year ended December 31, 2024 for additional discussion of individually evaluated loans and leases.

Other includes foreclosed real estate, other foreclosed property, partnership investments, premises and equipment, OREO, and held for sale operating leases, and consists primarily of residential homes, commercial properties, vacant lots, and automobiles. Partnership investments are measured based on discounted expected future cash flows. The remaining assets are measured at LOCOM, less costs to sell.

Financial Instruments Not Recorded at Fair Value

For financial instruments not recorded at fair value, estimates of fair value are based on relevant market data and information about the instruments. Values obtained relate to trading without regard to any premium or discount that may result from concentrations of ownership, possible tax ramifications, estimated transaction costs that may result from bulk sales, or the relationship between various instruments.

An active market does not exist for certain financial instruments. Fair value estimates for these instruments are based on current economic conditions and interest rate risk characteristics, loss experience, and other factors. Many of these estimates involve uncertainties and matters of significant judgment and cannot be determined with precision. Therefore, the fair value estimates in many instances cannot be substantiated by comparison to independent markets. In addition, changes in assumptions could significantly affect these fair value estimates. Financial assets and liabilities not recorded at fair value are summarized below:


		March 31, 2025				December 31, 2024
(Dollars in millions)	Fair Value Hierarchy	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets:
HTM securities	Level 2	$	49,876	$	40,438	$	50,640	$	40,286
Loans and leases HFI, net of ALLL	Level 3	303,756		299,101		301,513		294,190
Financial liabilities:
Time deposits	Level 2	40,176		40,041		36,532		36,377
Long-term debt	Level 2	32,030		32,058		34,956		34,917

The carrying value of the RUFC, which approximates the fair value of unfunded commitments, was $296 million and $304 million at March 31, 2025 and December 31, 2024, respectively.

36 Truist Financial Corporation

NOTE 16. Derivative Financial Instruments

Impact of Derivatives on the Consolidated Balance Sheets

The following table presents the gross notional amounts and estimated fair value of derivative instruments employed by the Company:


	March 31, 2025								December 31, 2024
	Notional Amount			Fair Value					Notional Amount		Fair Value
(Dollars in millions)			Assets			Liabilities			Assets		Liabilities
Cash flow hedges:
Interest rate contracts:

Swaps hedging commercial loans	$	66,585		$	—		$	(1)	$	66,585	$	—	$	—
Fair value hedges:
Interest rate contracts:
Swaps hedging long-term debt	17,993			—			—		17,368		—		—


Swaps hedging AFS securities	29,850			—			—		30,126		—		—

Total	47,843			—			—		47,494		—		—
Not designated as hedges:
Client-related and other risk management:
Interest rate contracts:
Swaps	152,012			508			(1,337)		146,194		488		(1,706)
Written options	10,554			17			(40)		9,623		16		(49)
Purchased options	10,079			25			(1)		11,321		29		(1)
Futures and forwards	4,418			5			(2)		4,782		1		(2)

Foreign exchange contracts:
Swaps	9,732			120			(89)		7,397		128		(114)
Futures and forwards	20,142			210			(203)		21,966		311		(270)
Other	2,437			33			(31)		760		5		(4)
Equity contracts:
Written options	31,647			16			(1,496)		28,228		12		(2,102)
Purchased options	14,506			876			(27)		11,956		1,366		(23)
Other	1,888			28			(70)		1,730		6		(41)
Commodity contracts	11,048			509			(488)		10,988		318		(297)
Credit contracts:
Credit default swaps	917			—			—		685		—		—
Total return swaps	1,810			38			—		1,485		25		(13)
Risk participation agreements	7,254			—			(2)		7,388		—		(2)


Total	278,444			2,385			(3,786)		264,503		2,705		(4,624)
MSRs and mortgage banking:
Interest rate contracts:
Swaps	22,267			—			—		20,696		—		—
Written options	1,299			26			(1)		1,932		32		(6)
Purchased options	8,259			19			(62)		8,910		60		(46)
Interest rate lock commitments	1,033			4			(3)		939		2		(13)
When issued securities, forward rate agreements, forward commitments, and futures	4,909			3			(7)		5,261		25		(11)


Total	37,767			52			(73)		37,738		119		(76)







Total derivatives not designated as hedges	316,211			2,437			(3,859)		302,241		2,824		(4,700)
Total derivatives	$	430,639		2,437			(3,860)		$	416,320	2,824		(4,700)
Gross amounts in the Consolidated Balance Sheets:
Amounts subject to master netting arrangements and exchange traded derivatives				(1,191)			1,191				(1,408)		1,408
Cash collateral (received) posted for amounts subject to master netting arrangements				(190)			906				(450)		1,006

Net amount				$	1,056		$	(1,763)			$	966	$	(2,286)

Truist Financial Corporation 37

The following table presents the offsetting of derivative instruments including financial instrument collateral related to legally enforceable master netting agreements and amounts held or pledged as collateral. GAAP does not permit netting of non-cash collateral balances in the Consolidated Balance Sheets. Refer to "Note 3. Securities Financing Activities" for information about the Company's securities financing transactions subject to master netting (or similar) arrangements.


March 31, 2025 (Dollars in millions)	Gross Amount		Amount Offset		Net Amount in Consolidated Balance Sheets		Held/Pledged Financial Instruments(1)		Net Amount
Derivative assets:
Derivatives subject to master netting arrangement or similar arrangement	$	1,599	$	(1,005)	$	594	$	—	$	594
Derivatives not subject to master netting arrangement or similar arrangement	105		1		106		—		106
Exchange traded derivatives	733		(377)		356		—		356
Total derivative assets	$	2,437	$	(1,381)	$	1,056	$	—	$	1,056
Derivative liabilities:
Derivatives subject to master netting arrangement or similar arrangement	$	(2,851)	$	1,720	$	(1,131)	$	86	$	(1,045)
Derivatives not subject to master netting arrangement or similar arrangement	(632)		—		(632)		—		(632)
Exchange traded derivatives	(377)		377		—		—		—
Total derivative liabilities	$	(3,860)	$	2,097	$	(1,763)	$	86	$	(1,677)

December 31, 2024 (Dollars in millions)	Gross Amount		Amount Offset		Net Amount in Consolidated Balance Sheets		Held/Pledged Financial Instruments(1)		Net Amount
Derivative assets:
Derivatives subject to master netting arrangement or similar arrangement	$	1,599	$	(1,293)	$	306	$	—	$	306
Derivatives not subject to master netting arrangement or similar arrangement	78		—		78		—		78
Exchange traded derivatives	1,147		(565)		582		—		582
Total derivative assets	$	2,824	$	(1,858)	$	966	$	—	$	966
Derivative liabilities:
Derivatives subject to master netting arrangement or similar arrangement	$	(3,379)	$	1,849	$	(1,530)	$	94	$	(1,436)
Derivatives not subject to master netting arrangement or similar arrangement	(752)		—		(752)		—		(752)
Exchange traded derivatives	(569)		565		(4)		—		(4)
Total derivative liabilities	$	(4,700)	$	2,414	$	(2,286)	$	94	$	(2,192)

(1)The fair value of held/pledged financial instruments is limited to the carrying amount of the associated derivative asset or liability.

The following table presents the carrying amount of hedged items in fair value hedging relationships:


	March 31, 2025								December 31, 2024
	Carrying Amount of the Hedged Assets and Liabilities(1)			Hedge Basis Adjustment					Carrying Amount of the Hedged Assets and Liabilities(1)		Hedge Basis Adjustment
(Dollars in millions)			Items Currently Designated			Discontinued Hedges			Items Currently Designated		Discontinued Hedges
AFS securities(2)	$	43,426		$	(110)		$	14	$	43,621	$	(503)	$	15
Loans and leases	249			—			4		297		—		5

Long-term debt	28,411			32			(491)		29,469		(121)		(533)

(1)Carrying value shown represents amortized cost.

(2)As of March 31, 2025, closed portfolios of securities hedged under the portfolio layer method have an amortized cost of $30.2 billion, of which $17.7 billion was designated as hedged. The remaining amount of amortized cost is from securities with terminated hedges where the basis adjustment is being amortized into earnings using the effective interest method over the contractual life of the security and hedges not designated under the portfolio-layer method.

38 Truist Financial Corporation

Impact of Derivatives on the Consolidated Statements of Income and Comprehensive Income

Derivatives Designated as Hedging Instruments under GAAP

No 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:


	Three Months Ended March 31,
(Dollars in millions)		2025		2024
Pre-tax gain (loss) recognized in OCI:
Commercial loans		$	469	$	(303)




Pre-tax gain (loss) reclassified from AOCI into interest expense or interest income:




Commercial loans		(93)		(55)

The following table summarizes the impact on net interest income related to fair value hedges:


	Three Months Ended March 31,
(Dollars in millions)		2025		2024
Investment securities:
Amounts related to interest settlements		$	71	$	163
Recognized on derivatives		(392)		442
Recognized on hedged items		401		(436)
Net income (expense) recognized(1)		80		169
Loans and leases:


Recognized on hedged items		(1)		(1)






Long-term debt:
Amounts related to interest settlements		(22)		(39)
Recognized on derivatives		152		(232)
Recognized on hedged items		(195)		211
Net income (expense) recognized		(65)		(60)
Net income (expense) recognized, total		$	14	$	108

(1)Includes $9 million of income recognized for the three months ended March 31, 2025 and $9 million for the three months ended March 31, 2024 from securities with terminated hedges that were reclassified to HTM. The income recognized was offset by the amortization of the fair value mark.

Truist Financial Corporation 39

The following table presents information about the Company’s cash flow and fair value hedges:


(Dollars in millions)	Mar 31, 2025		Dec 31, 2024
Cash flow hedges:
Net unrecognized after-tax gain (loss) on active hedges recorded in AOCI	$	(305)	$	(722)
Net unrecognized after-tax gain (loss) on terminated hedges recorded in AOCI (to be recognized in earnings through 2029)	(127)		(139)

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 instruments	4 years		5 years
Fair value hedges:
Unrecognized pre-tax net gain (loss) on terminated hedges(1)	$	(145)	$	(180)

(1)Includes deferred gains that are recorded in AOCI as a result of the reclassification to HTM of previously hedged securities of $364 million at March 31, 2025 and $373 million at December 31, 2024.

Of the after-tax net loss on active and terminated cash flow hedges in OCI as of March 31, 2025, losses of $232 million after-tax are expected to be reclassified into earnings in the next 12 months.

Derivatives Not Designated as Hedging Instruments under GAAP

The 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:


		Three Months Ended March 31,
(Dollars in millions)	Income Statement Location		2025		2024
Client-related and other risk management:
Interest rate contracts	Investment banking and trading income and other income		$	11	$	39
Foreign exchange contracts	Investment banking and trading income and other income		(49)		65
Equity contracts	Investment banking and trading income, other income, and personnel expense		53		(17)
Credit contracts	Investment banking and trading income and other income		14		(24)
Commodity contracts	Investment banking and trading income		3		2
MSRs and mortgage banking:
Interest rate contracts	Mortgage banking income		37		(98)




Total			$	69	$	(33)

40 Truist Financial Corporation

Credit Derivative Instruments

As part of the Company’s investment banking and capital market business, the Company enters into contracts that are, in form or substance, written guarantees; specifically, risk participations, TRS, and credit default swaps. The Company accounts for these contracts as derivatives.

Truist has entered into risk participation agreements to share the credit exposure with other financial institutions on client-related interest rate derivative contracts. Under these agreements, the Company has guaranteed payment to a dealer counterparty in the event the counterparty experiences a loss on the derivative due to a failure to pay by the counterparty’s client. The Company manages its payment risk on its risk participations by monitoring the creditworthiness of the underlying client through the normal credit review process that the Company would have performed had it entered into a derivative directly with the obligors. At March 31, 2025, the remaining terms on these risk participations ranged from less than one year to 10 years. The potential future exposure represents the Company’s maximum estimated exposure to written risk participations, as measured by projecting a maximum value of the guaranteed derivative instruments based on scenario simulations and assuming 100% default by all obligors on the maximum value.

The Company has also entered into TRS contracts on loans and bonds. To mitigate its credit risk, the Company typically receives initial margin from the counterparty upon entering into the TRS and variation margin if the fair value of the underlying reference assets deteriorates. For additional information on the Company’s TRS contracts, see “Note 14. Commitments and Contingencies.”

The Company enters into credit default swaps to hedge credit risk associated with certain loans and leases. The Company accounts for these contracts as derivatives, and accordingly, recognizes these contracts at fair value.

The following table presents additional information related to interest rate derivative risk participation agreements and total return swaps:


(Dollars in millions)	Mar 31, 2025		Dec 31, 2024
Risk participation agreements:


Maximum potential amount of exposure	$	374	$	381
Total return swaps:

Cash received for variation margin	37		25
Cash and other collateral received for initial margin	402		329

Truist Financial Corporation 41

NOTE 17. Computation of EPS

Basic and diluted EPS calculations are presented in the following table:


	Three Months Ended March 31,
(Dollars in millions, except per share data, shares in thousands)		2025		2024
Net income available to common shareholders from continuing operations		$	1,157	$	1,027
Net income available to common shareholders from discontinued operations		—		64
Net income available to common shareholders		$	1,157	$	1,091
Weighted average number of common shares		1,307,457		1,335,091
Effect of dilutive outstanding equity-based awards		16,882		11,813
Weighted average number of diluted common shares		1,324,339		1,346,904
Basic earnings from continuing operations		$	0.88	$	0.77
Basic earnings from discontinued operations		—		0.05
Basic EPS		$	0.88	$	0.82
Diluted earnings from continuing operations		$	0.87	$	0.76
Diluted earnings from discontinued operations		—		0.05
Diluted EPS		$	0.87	$	0.81
Anti-dilutive awards		—		—

42 Truist Financial Corporation

NOTE 18. Operating Segments

Truist operates and measures business activity across two segments: CSBB and WB, with functional activities included in OT&C. The Company’s business segment structure is based on the manner in which financial information is evaluated by management as well as the products and services provided or the type of client served. The Chairman and CEO is the Truist CODM. The CODM regularly reviews segment net income and its significant components in comparison to expected results as part of evaluating segment performance and optimizing resource allocation. In this regular review, segment net income typically excludes amortization of intangibles, restructuring charges, and goodwill impairment which are separately presented in the table below.

Consumer and Small Business Banking

CSBB serves retail, premier, and small business clients, providing checking, money market, savings, time and other deposits, payment services, and lending solutions through digital banking, an extensive network of community banking branches, ATMs, virtual service centers, and other channels. Lending solutions include credit cards, personal and unsecured loans originated through the branch network and digital channels; national indirect lending services providing a comprehensive set of technology-enabled consumer lending solutions, including point-of-sale offerings for autos, recreational vehicles, outdoor power sports, outdoor power equipment, and home improvement; and real estate lending providing residential mortgages through retail, direct, and correspondent channels, and home equity loans delivered through the branch network.

Wholesale Banking

WB provides a comprehensive set of products, solutions, and advisory services to commercial, corporate, institutional, and wealth clients. Banking expertise and product capabilities are delivered through a combination of regional coverage across the Truist footprint and national industry coverage for real estate, investment banking, and capital markets clients. WB works with clients to meet their core banking needs, including traditional and specialized credit solutions and commercial payments to manage deposits and liquidity, payables, and receivables. Through investment banking capabilities, clients have full access to strategic advisory services, debt and equity capital markets, leveraged finance, and securitizations, with distribution channels and market making across both fixed income and equity markets. WB also invests in certain affordable housing, New Market Tax Credit, and renewable energy tax credit investments. For additional information on these investments, see “Note 14. Commitments and Contingencies”. The wealth business delivers asset management, trust, brokerage, and investment management, as well as specialized commercial products, while aligning closely with regional and industry banking coverage.

Other, Treasury & Corporate

OT&C includes management of the Company’s investment securities portfolio, long-term debt, derivative instruments used for balance sheet hedging, short-term liquidity and funding activities, balance sheet risk management and most bank-owned real estate assets, as well as the Company’s functional activities such as finance, enterprise risk, legal, and enterprise technology and management, among others. Additionally, OT&C houses intersegment eliminations, including intersegment net referral fees and residual interest rate risk.

Truist promotes revenue growth by bringing the full breadth and depth of Truist’s products and services to meet clients’ financial needs. The objective is to deepen client relationships and deliver the best financial experience in the marketplace. Revenues of certain products and services are reflected in the results of the segment providing those products and services and are also allocated to CSBB and WB. These allocated revenues between segments are reflected as net referral fees in noninterest income and eliminated in OT&C.

The segment results are presented based on internal management methodologies that were designed to support Truist’s strategic objectives. Unlike financial accounting, there is no comprehensive authoritative body of guidance for management accounting equivalent to GAAP. The performance of the segments is not comparable with Truist’s consolidated results or with similar information presented by other financial institutions. Additionally, because of the interrelationships between the various segments, the information presented is not indicative of how the segments would perform if they operated as independent entities.

Because business segment results are presented based on management accounting practices, the transition to the consolidated results prepared under GAAP creates certain differences, which are reflected as residuals in OT&C. Business segment reporting conventions include the items as detailed below.

Segment net interest income reflects matched maturity funds transfer pricing, which ascribes credits or charges based on the economic value or cost created by assets and liabilities of each segment. Residual differences between these credits and charges are captured in OT&C.

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In the first quarter of 2025, deposit interest expense methodology was enhanced to reflect a change to funds transfer pricing. Prior period results have been revised to conform to the current allocation methodology. As a result of this methodology change, CSBB net interest income decreased $133 million for the three months ended March 31, 2024, with an off-setting increase in OT&C net interest income. For the same reason, WB net interest income decreased $49 million for the three months ended March 31,2024, with an off-setting increase in OT&C net interest income.

Noninterest income includes inter-segment referral fees, as well as federal and state tax credits that are grossed up for the WB segment on a pre-tax equivalent basis, related primarily to certain community development investments. Recoveries for these allocations are reported in OT&C.

Corporate expense allocations, including overhead or functional expenses that are not directly charged to the segments, are allocated to segments based on various drivers (number of FTEs, number of accounts, loan balances, net revenue, etc.). Recoveries for these allocations are reported in OT&C.

Provision for credit losses represents net charge-offs by segment combined with an allocation to the segments for the provision attributable to each segment’s quarterly change in the ALLL. Provision for income taxes is calculated using a blended income tax rate for each segment and includes reversals of the noninterest income tax adjustments described above. The difference between the calculated provision for income taxes at the segment level and the consolidated provision for income taxes is reported in OT&C.

The application and development of management reporting methodologies is an active process and undergoes periodic enhancements. The implementation of these enhancements to the internal management reporting methodology may materially affect the results disclosed for each segment, with no impact on consolidated results. When significant changes to management reporting methodologies take place, the impact of these changes is quantified, and prior period information is revised as practicable.

44 Truist Financial Corporation

The following table presents results by segment:


Three Months Ended March 31, (Dollars in millions)	CSBB						WB					OT&C(1)					Total
2025			2024			2025			2024				2025			2024			2025			2024
Net interest income (expense)	$	1,426		$	1,267		$	1,892		$	2,231			$	189		$	(126)		$	3,507		$	3,372
Net intersegment interest income (expense)	858			1,210			(299)			(615)				(559)			(595)			—			—
Segment net interest income	2,284			2,477			1,593			1,616				(370)			(721)			3,507			3,372
Allocated provision for credit losses	328			313			131			188				(1)			(1)			458			500
Noninterest income	503			497			949			980				(60)			(31)			1,392			1,446
Personnel expense	408			405			548			580				631			645			1,587			1,630
Amortization of intangibles	39			46			36			42				—			—			75			88
Restructuring charges	—			1			1			7				37			43			38			51

Other direct noninterest expense(2)	275			244			192			176				739			764			1,206			1,184
Total direct noninterest expense	722			696			777			805				1,407			1,452			2,906			2,953
Expense Allocations	941			890			524			528				(1,465)			(1,418)			—			—
Total noninterest expense	1,663			1,586			1,301			1,333				(58)			34			2,906			2,953
Income (loss) before income taxes from continuing operations	796			1,075			1,110			1,075				(371)			(785)			1,535			1,365
Provision (benefit) for income taxes	194			259			222			209				(142)			(236)			274			232
Segment net income (loss) from continuing operations	$	602		$	816		$	888		$	866			$	(229)		$	(549)		$	1,261		$	1,133

Identifiable assets (period end) of continuing operations	$	147,376		$	143,381		$	209,135		$	209,188			$	179,388		$	174,618		$	535,899		$	527,187

(1)As described above, includes the Company’s investment securities portfolio, most long-term debt, derivative instruments used for balance sheet hedging, short-term liquidity and funding activities, balance sheet risk management, most bank-owned real estate assets, as well as functional activities such as finance, enterprise risk, legal, and enterprise technology and management. Additionally, houses intersegment eliminations, including for residual interest rate risk, intersegment net referral fees, and expense allocations. May also include financial data from business units below the quantitative and qualitative thresholds requiring disclosure.

(2)Other direct noninterest expense within the table above includes expenses for occupancy and equipment, professional fees and outside processing, regulatory costs, and other expenses.

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