XML 32 R21.htm IDEA: XBRL DOCUMENT v3.26.1
Derivative Financial Instruments
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
Impact of Derivatives on the Consolidated Balance Sheets

The following table presents the gross notional or contractual amounts and estimated fair value of derivative instruments employed by the Company:
June 30, 2026December 31, 2025
Notional or Contractual AmountFair ValueNotional or Contractual AmountFair Value
(Dollars in millions)AssetsLiabilitiesAssetsLiabilities
Derivatives designated as hedges:
Interest rate contracts:
Swaps hedging commercial loans$83,672 $— $(6)$97,135 $— $— 
Swaps hedging long-term debt 28,400 — (1)27,033 — — 
Swaps hedging AFS securities23,730 — (1)26,751 — — 
Total derivatives designated as hedges135,802 — (8)150,919 — — 
Derivatives not designated as hedges:
Client-related and other risk management:
Interest rate contracts:
Swaps195,669 411 (1,115)185,861 516 (944)
Written options10,712 1 (28)10,577 2 (18)
Purchased options5,792 15 — 8,558 15 — 
Futures and forwards2,997 1 (3)2,636 2 (14)
Foreign exchange contracts:
Swaps16,539 418 (372)13,647 450 (382)
Futures and forwards27,887 374 (332)27,008 338 (335)
Other2,615 29 (26)2,820 35 (33)
Equity contracts:
Written options30,311 18 (2,770)26,600 12 (2,278)
Purchased options13,989 1,800 (139)12,485 1,358 (121)
Other2,521 74 (22)1,386 11 (59)
Commodity contracts10,920 437 (417)8,340 322 (302)
Credit contracts:
Credit default swaps1,181 — (3)900 — — 
Total return swaps1,782 34 (5)1,835 31 (7)
Risk participation agreements9,211 — (2)8,863 — (2)
Total332,126 3,612 (5,234)311,516 3,092 (4,495)
MSRs and mortgage banking:
Interest rate contracts:
Swaps15,605 — — 11,035 — — 
Written options568 11 — 1,288 14 — 
Purchased options9,550 6 (75)10,465 10 (118)
Interest rate lock commitments1,271 5 (10)960 4 (2)
When issued securities, forward rate agreements, forward commitments, and futures
7,843 10 (4)7,807 2 — 
Total34,837 32 (89)31,555 30 (120)
Total derivatives not designated as hedges366,963 3,644 (5,323)343,071 3,122 (4,615)
Total derivatives$502,765 $3,644 $(5,331)$493,990 $3,122 $(4,615)
Gross amounts in the Consolidated Balance Sheets:
Amounts subject to master netting arrangements and exchange traded derivatives
(1,963)1,963 (1,585)1,585 
Cash collateral (received) posted for amounts subject to master netting arrangements
(226)1,140 (194)1,233 
Net amount$1,455 $(2,228)$1,343 $(1,797)
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 2. Securities Financing Activities“ for information about the Company's securities financing transactions subject to master netting (or similar) arrangements.
June 30, 2026
(Dollars in millions)		Gross AmountAmount OffsetNet Amount in Consolidated Balance Sheets
Held/Pledged Financial Instruments(1)
Net Amount
Derivative assets:
Derivatives subject to master netting arrangement or similar arrangement$1,896 $(1,354)$542 $— $542 
Derivatives not subject to master netting arrangement or similar arrangement169 — 169 — 169 
Exchange traded derivatives1,579 (835)744 — 744 
Total derivative assets$3,644 $(2,189)$1,455 $— $1,455 
Derivative liabilities:
Derivatives subject to master netting arrangement or similar arrangement$(3,486)$2,268 $(1,218)$80 $(1,138)
Derivatives not subject to master netting arrangement or similar arrangement(1,009)— (1,009)— (1,009)
Exchange traded derivatives(836)835 (1)— (1)
Total derivative liabilities$(5,331)$3,103 $(2,228)$80 $(2,148)
December 31, 2025
(Dollars in millions)		Gross AmountAmount OffsetNet Amount in Consolidated Balance Sheets
Held/Pledged Financial Instruments(1)
Net Amount
Derivative assets:
Derivatives subject to master netting arrangement or similar arrangement$1,836 $(1,157)$679 $— $679 
Derivatives not subject to master netting arrangement or similar arrangement129 — 129 — 129 
Exchange traded derivatives1,157 (622)535 — 535 
Total derivative assets$3,122 $(1,779)$1,343 $— $1,343 
Derivative liabilities:
Derivatives subject to master netting arrangement or similar arrangement$(3,171)$2,196 $(975)$77 $(898)
Derivatives not subject to master netting arrangement or similar arrangement(821)— (821)— (821)
Exchange traded derivatives(623)622 (1)— (1)
Total derivative liabilities$(4,615)$2,818 $(1,797)$77 $(1,720)
(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:

June 30, 2026December 31, 2025
Carrying Amount of the Hedged Assets and Liabilities(1)
Cumulative basis adjustment increasing (decreasing) the carrying amount
Carrying Amount of the Hedged Assets and Liabilities(1)
Cumulative basis adjustment increasing (decreasing) the carrying amount
(Dollars in millions)Items Currently DesignatedDiscontinued HedgesItems Currently DesignatedDiscontinued Hedges
AFS securities(2)
$38,106 $(148)$(27)$38,608 $104 $13 
Loans and leases174 — 2 179 — 3 
Long-term debt28,633 (354)(305)28,194 70 (375)
(1)Carrying value shown represents amortized cost.
(2)As of June 30, 2026, closed portfolios of securities hedged under the portfolio layer method had an amortized cost of $19.4 billion, of which $14.8 billion was designated as the hedged item. As of December 31, 2025, closed portfolios of securities hedged under the portfolio layer method had an amortized cost of $27.4 billion, of which $16.4 billion was designated as the hedged item. 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.
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 the impact on NII related to fair value hedges:

Three Months Ended June 30,Six Months Ended June 30,
(Dollars in millions)2026202520262025
Investment securities:
Amounts related to settlements(1)
$14 $79 $29 $158 
Recognized on derivatives171 (199)292 (591)
Recognized on hedged items
(171)201 (292)594 
Interest income gain (loss) recognized(2)
14 81 29 161 
Loans and leases:
Amounts related to settlements(1)
(1)— (1)(1)
Long-term debt:
Amounts related to settlements(1)
(24)(56)(51)(120)
Recognized on derivatives(262)92 (435)244 
Recognized on hedged items
262 (90)434 (243)
Interest expense gain (loss) recognized(24)(54)(52)(119)
Net interest income gain (loss) recognized, total
$(11)$27 $(24)$41 
(1)Includes amounts related to active and terminated hedges. Prior period balances have been conformed to current period presentation.
(2)Includes income recognized from securities with terminated hedges that were reclassified to HTM of $9 million and $17 million for the three and six months ended June 30, 2026, respectively, and $9 million and $18 million for the three and six months ended June 30, 2025, respectively. The income recognized was offset by the amortization of the fair value mark. Refer to “Note 3. Investment Securities” for additional information on the hedge basis adjustment.

The following table summarizes amounts related to cash flow hedges, which consist of interest rate contracts:

Three Months Ended June 30,Six Months Ended June 30,
(Dollars in millions)2026202520262025
Pre-tax gain (loss) recognized in OCI:
Commercial loans$(663)$267 $(1,223)$736 
Pre-tax gain (loss) reclassified from AOCI into interest income:
Commercial loans(54)(92)(91)(185)
The following table presents information about the Company’s cash flow and fair value hedges:

(Dollars in millions)Jun 30, 2026Dec 31, 2025
Cash flow hedges:
Net unrecognized after-tax gain (loss) on hedges recorded in AOCI$(1,035)$(173)
Maximum length of time over which forecasted cash flows are hedged
4 years5 years
Fair value hedges:
Net unrecognized pre-tax gain (loss) on terminated hedges(1)
$38 $(56)
(1)Includes deferred gains that are recorded in AOCI as a result of the reclassification to HTM of previously hedged securities of $318 million at June 30, 2026 and $335 million at December 31, 2025.

Of the after-tax net loss on active and terminated cash flow hedges in OCI as of June 30, 2026, losses of $401 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 and for purposes of facilitating client trades.

The following table presents pre-tax gains (losses) recognized in income for derivative instruments not designated as hedges:

Three Months Ended June 30,Six Months Ended June 30,
(Dollars in millions)Income Statement Location2026202520262025
Client-related and other risk management:
Interest rate contractsInvestment banking and trading income and other income$25 $10 $58 $21 
Foreign exchange contractsInvestment banking and trading income and other income55 (164)121 (213)
Equity contractsInvestment banking and trading income, other income, and personnel expense212 (38)250 15 
Credit contractsInvestment banking and trading income and other income(26)(26)(11)(12)
Commodity contractsInvestment banking and trading income2 3 6 6 
MSRs and mortgage banking:
Interest rate contractsMortgage banking income(26)(18)(15)19 
Total$242 $(233)$409 $(164)
Credit Derivative Instruments

As part of the Company’s investment banking and capital markets business, the Company enters into contracts that are, in form or substance, written guarantees; specifically, risk participation agreements and TRS. The Company also seeks to economically transfer certain credit risks by entering into 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 clients through the normal credit review process that the Company would have performed had it entered into a derivative directly with the obligors. At June 30, 2026, the remaining terms on these risk participations ranged from less than one year to ten 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. Refer to “Note 12. Commitments and Contingencies” for additional information on the Company’s TRS contracts.

The Company’s credit default swaps economically hedge credit risk associated with certain loans and leases.

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

(Dollars in millions)June 30, 2026Dec 31, 2025
Risk participation agreements:
Maximum potential amount of exposure
$377 $554 
Total return swaps:
Cash received for variation margin34 31 
Cash and other collateral received for initial margin488 471