TRUIST FINANCIAL CORPTFC
TRUIST FINANCIAL CORP Fair Value Disclosure
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:
| December 31, 2025 (Dollars in millions) | Total | Level 1 | Level 2 | Level 3 | Netting Adjustments(1) | |||||||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||||||||
| Trading assets: | ||||||||||||||||||||||||||||||||
| U.S. Treasury | $ | 244 | $ | — | $ | 244 | $ | — | $ | — | ||||||||||||||||||||||
| GSE | 42 | — | 42 | — | — | |||||||||||||||||||||||||||
| States and political subdivisions | 301 | — | 301 | — | — | |||||||||||||||||||||||||||
| Corporate and other debt securities | 1,970 | — | 1,970 | — | — | |||||||||||||||||||||||||||
| Loans | 2,168 | — | 2,168 | — | — | |||||||||||||||||||||||||||
| Equity securities | 1,065 | 1,065 | — | — | — | |||||||||||||||||||||||||||
| Total trading assets | 5,790 | 1,065 | 4,725 | — | — | |||||||||||||||||||||||||||
| AFS securities: | ||||||||||||||||||||||||||||||||
| U.S. Treasury | 12,792 | — | 12,792 | — | — | |||||||||||||||||||||||||||
| GSE | 460 | — | 460 | — | — | |||||||||||||||||||||||||||
| Agency MBS – residential | 48,226 | — | 48,226 | — | — | |||||||||||||||||||||||||||
| Agency MBS – commercial | 3,200 | — | 3,200 | — | — | |||||||||||||||||||||||||||
| States and political subdivisions | 350 | — | 350 | — | — | |||||||||||||||||||||||||||
| Other | 14 | — | 14 | — | — | |||||||||||||||||||||||||||
| Total AFS securities | 65,042 | — | 65,042 | — | — | |||||||||||||||||||||||||||
LHFS | 1,622 | — | 1,622 | — | — | |||||||||||||||||||||||||||
| Loans and leases | 11 | — | — | 11 | — | |||||||||||||||||||||||||||
| Loan servicing rights at fair value | 3,972 | — | — | 3,972 | — | |||||||||||||||||||||||||||
| Other assets: | ||||||||||||||||||||||||||||||||
| 1,343 | 1,157 | 1,961 | 4 | (1,779) | ||||||||||||||||||||||||||||
| Equity securities | 382 | 293 | 89 | — | — | |||||||||||||||||||||||||||
| Total assets | $ | 78,162 | $ | 2,515 | $ | 73,439 | $ | 3,987 | $ | (1,779) | ||||||||||||||||||||||
| Liabilities: | ||||||||||||||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||||||||||||||
| Brokered time deposits | $ | 639 | $ | — | $ | 639 | $ | — | $ | — | ||||||||||||||||||||||
| Short-term borrowings: | ||||||||||||||||||||||||||||||||
| Securities sold short | 2,185 | 652 | 1,533 | — | — | |||||||||||||||||||||||||||
| Other trading liabilities | 209 | — | 209 | — | — | |||||||||||||||||||||||||||
| Other liabilities: | ||||||||||||||||||||||||||||||||
| Derivative liabilities | 1,797 | 623 | 3,959 | 33 | (2,818) | |||||||||||||||||||||||||||
| Total liabilities | $ | 4,830 | $ | 1,275 | $ | 6,340 | $ | 33 | $ | (2,818) | ||||||||||||||||||||||
| 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 | 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: | ||||||||||||||||||||||||||||||||
| 2,286 | 569 | 4,088 | 43 | (2,414) | ||||||||||||||||||||||||||||
| Total liabilities | $ | 4,374 | $ | 927 | $ | 5,818 | $ | 43 | $ | (2,414) | ||||||||||||||||||||||
(1)Refer to “Note 19. Derivative Financial Instruments” for additional discussion on netting adjustments.
At December 31, 2025 and December 31, 2024, investments totaling $622 million and $535 million, respectively, have been excluded from the tables above as they are valued based on net asset value as a practical expedient. These investments primarily consist of certain SBIC funds.
The following discussion focuses 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.
Available for Sale and Trading Securities: Securities accounted for at fair value include both the available-for-sale and trading portfolios. The Company uses prices obtained from pricing services, dealer quotes, or recent trades to estimate the fair value of securities. The majority of AFS securities were priced by third-party vendors whereas trading securities are priced internally. Management independently evaluates the fair values of AFS securities and trading securities through comparisons to external pricing sources, review of additional information provided by the pricing service and other third-party sources for selected securities and back-testing to compare the price realized on any security sales to the pricing information received from the pricing service. Fair value measurements for trading securities are derived from observable market-based information including overall market conditions, recent trades, comparable securities, broker quotes, and FINRA’s Trade Reporting and Compliance Engine data when determining the value of a position. Security prices are also validated through actual cash settlement upon the sale of a security. As described by security type below, additional inputs may be used, or some inputs may not be applicable.
Trading loans: The Company has elected to measure trading loans at fair value. Trading loans are valued primarily using quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active by a third-party pricing service. Trading loans include loans held in connection with the Company’s trading business primarily consisting of commercial and corporate leveraged loans and loans made or acquired in connection with the Company’s TRS business.
U.S. Treasury securities: Treasury securities are valued using quoted prices in active over-the-counter markets.
GSE securities and agency MBS: GSE securities consist of debt obligations issued by GSEs, such as FNMA, FHLMC, and FHLB, as well as U.S. agency securities that are backed by the full faith and credit of the U.S. government. Agency MBS includes pass-through securities and CMOs issued by GSEs and U.S. government agencies, such as FNMA, FHLMC, and GNMA. Each security contains a guarantee by the issuing GSE or agency. GSE pass-through securities are valued using market-based pricing matrices that reference observable inputs including benchmark to-be-announced security pricing and yield curves that were estimated based on U.S. Treasury yields and certain floating rate indices. The pricing matrices for these securities may also give consideration to pool-specific data supplied directly by the GSE. GSE CMOs are valued using market-based pricing matrices that are based on observable inputs including offers, bids, reported trades, dealer quotes, and market research reports, the characteristics of a specific tranche, market convention prepayment speeds, and benchmark yield curves as described above.
States and political subdivisions: The Company’s investments in U.S. states and political subdivisions include obligations of county and municipal authorities and agency bonds, which are general obligations of the municipality or are supported by a specified revenue source. These securities are valued using market-based pricing matrices that reference observable inputs including MSRB reported trades, issuer spreads, material event notices, and benchmark yield curves.
Corporate and other debt securities: These securities consist primarily of corporate bonds and commercial paper. Corporate bonds are senior and subordinated debt obligations of domestic corporations. The Company acquires commercial paper that is generally short-term in nature and highly rated. These securities are valued based on a review of quoted market prices for similar assets as well as through the various other inputs described above.
LHFS: Certain mortgage loans that are originated to be sold to investors are carried at fair value. The fair value is primarily based on quoted market prices for securities backed by similar types of loans, adjusted for servicing, interest rate risk, and credit risk. The changes in fair value of these assets are largely driven by changes in interest rates subsequent to loan funding and changes in the fair value of servicing associated with the mortgage LHFS.
Loans and leases: Fair values for loans are based on a discounted cash flow methodology that considers credit loss expectations, market interest rates, and other market factors such as liquidity from the perspective of a market participant. The probability of default, loss given default, and prepayment assumptions are the key factors driving credit losses which are embedded into the estimated cash flows. These assumptions are informed by internal data on loan characteristics, historical loss experience, and current and forecasted economic conditions. The interest and liquidity component of the estimate is determined by discounting interest and principal cash flows through the expected life of each loan. The discount rates used for loans are based on current market rates for new originations of comparable loans and include adjustments for liquidity.
Loan servicing rights: Residential MSRs are valued using an OAS valuation model to project cash flows over multiple interest rate scenarios and then are discounted at risk-adjusted rates. The model considers portfolio characteristics, contractually specified servicing fees, prepayment assumptions, delinquency rates, late charges, other ancillary revenue, costs to service and other economic factors. Fair value estimates and assumptions are compared to industry surveys, recent market activity, actual portfolio experience, and other observable market data. Commercial MSRs and other loan servicing rights are valued using a cash flow valuation model that calculates the present value of estimated future net servicing cash flows. The Company considers actual and expected loan prepayment rates, discount rates, servicing costs, and other economic factors that are determined based on current market conditions. Refer to “Note 8. Loan Servicing” for additional information on valuation techniques and inputs for loan servicing rights.
Derivative assets and liabilities: The Company holds derivative instruments for both trading and risk management purposes. These include exchange-traded futures or option contracts, OTC swaps, options, forwards, interest rate lock commitments, and risk participation agreements. The fair values of derivatives are determined based on quoted market prices and internal pricing models that use market observable assumptions for interest rates, foreign exchange, equity, and credit. The fair values of interest rate lock commitments, which are related to mortgage loan commitments and are categorized as Level 3, are based on quoted market prices adjusted for commitments that are not expected to fund and include the value attributable to the net servicing fees. Funding rates are based on the Company’s historical data. The fair value attributable to servicing is based on discounted cash flows and is impacted by prepayment assumptions, discount rates, delinquency rates, contractually specified servicing fees, servicing costs, and underlying portfolio characteristics. Refer to “Note 19. Derivative Financial Instruments” for additional information on derivative assets and liabilities.
Equity securities: Equity securities primarily consist of exchange-traded securities and are valued using quoted prices in active markets.
Brokered time deposits: The Company has elected to measure certain CDs that contain embedded derivatives at fair value. This fair value election better aligns the economics of the CDs with the Company’s risk management strategies. The Company elects, on an instrument by instrument basis, whether a new issuance will be measured at fair value. The Company has classified CDs measured at fair value as level 2 instruments due to the Company’s ability to observe all significant inputs to model-derived valuations in active markets. The Company employs a discounted cash flow approach based on observable market interest rates for the term of the CD and an estimate of the Bank’s credit risk. For any embedded derivative features, the Company uses the same valuation methodologies as if the derivative feature were a standalone derivative.
Securities sold short: Securities sold short represent debt securities sold short that are entered into as a hedging strategy for the purposes of supporting institutional and retail client trading activities. The fair value of securities sold short is determined in the same manner as trading securities.
Other trading liabilities: Other trading liabilities includes loans sold, but not yet purchased in connection with the Company’s trading business primarily consisting of commercial and corporate leveraged loans. Loans sold, but not yet purchased are valued primarily using quoted prices for similar instruments in active markets.
Activity for Level 3 assets and liabilities is summarized below:
| (Dollars in millions) | Loans and Leases | Loan Servicing Rights | Net Derivatives | ||||||||||||||
| Balance at January 1, 2023 | $ | 18 | $ | 3,758 | $ | (36) | |||||||||||
| Total realized and unrealized gains (losses): | |||||||||||||||||
| Included in earnings | — | 86 | (36) | ||||||||||||||
| Purchases | — | 123 | — | ||||||||||||||
| Issuances | — | 270 | 29 | ||||||||||||||
| Sales | — | (531) | — | ||||||||||||||
| Settlements | (3) | (328) | 24 | ||||||||||||||
| Balance at December 31, 2023 | 15 | 3,378 | (19) | ||||||||||||||
| Total realized and unrealized gains (losses): | |||||||||||||||||
| Included in earnings | — | 234 | (61) | ||||||||||||||
| Purchases | — | 228 | — | ||||||||||||||
| Issuances | — | 205 | 31 | ||||||||||||||
| Sales | — | (2) | — | ||||||||||||||
| Settlements | (2) | (335) | 8 | ||||||||||||||
| Balance at December 31, 2024 | $ | 13 | $ | 3,708 | $ | (41) | |||||||||||
| Total realized and unrealized gains (losses): | |||||||||||||||||
| Included in earnings | — | 42 | 9 | ||||||||||||||
| Purchases | — | 339 | — | ||||||||||||||
| Issuances | — | 262 | 27 | ||||||||||||||
| Settlements | (2) | (379) | (24) | ||||||||||||||
| Balance at December 31, 2025 | $ | 11 | $ | 3,972 | $ | (29) | |||||||||||
| Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at December 31, 2025 | $ | — | $ | 42 | $ | (18) | |||||||||||
Primary income statement location of realized gains (losses) included in earnings | Other income | Mortgage banking income | Mortgage banking income and other 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:
| December 31, 2025 | December 31, 2024 | |||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | Fair Value | UPB | Difference | Fair Value | UPB | Difference | ||||||||||||||||||||||||||||||||
| Trading loans | $ | 2,168 | $ | 2,230 | $ | (62) | $ | 1,671 | $ | 1,697 | $ | (26) | ||||||||||||||||||||||||||
LHFS | 1,622 | 1,592 | 30 | 1,233 | 1,232 | 1 | ||||||||||||||||||||||||||||||||
| Loans and leases | 11 | 12 | (1) | 13 | 14 | (1) | ||||||||||||||||||||||||||||||||
| Brokered time deposits | 639 | 642 | (3) | 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 | Dec 31, 2025 | Dec 31, 2024 | ||||||||||||||
| Carrying value: | |||||||||||||||||
| LHFS | Level 3 | 4 | 4 | ||||||||||||||
Loans and leases(1) | Level 3 | 468 | 525 | ||||||||||||||
| Other | Level 3 | 65 | 147 | ||||||||||||||
(1)Total loans and leases measured at fair value on a nonrecurring basis still held as of period end were $599 million and $682 million at December 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.
| Year Ended December 31, | ||||||||||||||||||||
| (Dollars in millions) | 2025 | 2024 | 2023 | |||||||||||||||||
| Valuation adjustments: | ||||||||||||||||||||
| LHFS | $ | (69) | $ | (17) | $ | (58) | ||||||||||||||
| Loans and leases | (862) | (1,026) | (894) | |||||||||||||||||
| Other | (308) | (301) | (305) | |||||||||||||||||
LHFS with valuation adjustments in the table above consist primarily of residential mortgages and commercial loans that are valued using market prices and measured at LOCOM.
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 Statements of Income. Refer to “Note 1. Basis of Presentation” 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:
| December 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 | $ | 47,186 | $ | 39,130 | $ | 50,640 | $ | 40,286 | ||||||||||||||||||||
| Loans and leases, net of ALLL | Level 3 | 323,554 | 320,018 | 301,513 | 294,190 | ||||||||||||||||||||||||
| Financial liabilities: | |||||||||||||||||||||||||||||
| Time deposits | Level 2 | 37,793 | 37,723 | 36,532 | 36,377 | ||||||||||||||||||||||||
| Long-term debt | Level 2 | 41,963 | 42,451 | 34,956 | 34,917 | ||||||||||||||||||||||||
The carrying value of the RUFC, which approximates the fair value, was $317 million and $304 million at December 31, 2025 and December 31, 2024, respectively. Cash and due from banks, interest-bearing deposits with banks, securities borrowed or purchased under agreements to resell, and short-term borrowings are reflected in the Consolidated Balance Sheets at cost, which approximates the fair value due to the short-term nature of these instruments and their limited inherent credit risk.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Feb 23, 2022 | |
| 2020 | Feb 24, 2021 | |
| 2019 | Mar 3, 2020 | |
| 2018 | Feb 26, 2019 | |
| 2017 | Feb 21, 2018 | |
| 2016 | Feb 21, 2017 | |
| 2015 | Feb 25, 2016 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.