Loans and ACL

9 Months Ended

Sep. 30, 2016

Receivables [Abstract]

Loans and ACL

Loans and ACL

During the third quarter of 2016, Branch Bank entered into an early termination agreement with the FDIC that terminated the loss share agreements. As a result, the assets acquired from the FDIC are no longer covered by loss sharing. The accounting for the related loans is unaffected by the termination, and these loans will continue to be carried in PCI. During the third quarter of 2016, a sales finance portfolio totaling $1.0 billion was acquired.

	Accruing
September 30, 2016	Current		30-89 Days Past Due		90 Days Or More Past Due		Nonaccrual		Total
	(Dollars in millions)
Commercial:
Commercial and industrial	$	51,332	$	34	$	—	$	413	$	51,779
CRE-income producing properties	14,583		3		—		38		14,624
CRE-construction and development	3,850		2		—		12		3,864
Dealer floor plan	1,288		—		—		—		1,288
Other lending subsidiaries	7,396		16		—		10		7,422
Retail:
Direct retail lending	11,898		62		7		55		12,022
Revolving credit	2,532		20		9		—		2,561
Residential mortgage-nonguaranteed	28,906		354		66		167		29,493
Residential mortgage-government guaranteed	350		112		414		—		876
Sales finance	9,894		60		4		6		9,964
Other lending subsidiaries	7,195		272		—		56		7,523
PCI	870		45		92		—		1,007
Total	$	140,094	$	980	$	592	$	757	$	142,423

	Accruing
December 31, 2015	Current		30-89 Days Past Due		90 Days Or More Past Due		Nonaccrual		Total
	(Dollars in millions)
Commercial:
Commercial and industrial	$	48,157	$	36	$	—	$	237	$	48,430
CRE-income producing properties	13,370		13		—		38		13,421
CRE-construction and development	3,710		9		—		13		3,732
Dealer floor plan	1,215		—		—		—		1,215
Other lending subsidiaries	6,771		18		—		6		6,795
Retail:
Direct retail lending	11,032		58		7		43		11,140
Revolving credit	2,478		22		10		—		2,510
Residential mortgage-nonguaranteed	29,038		397		55		173		29,663
Residential mortgage-government guaranteed	306		78		486		—		870
Sales finance	10,243		72		5		7		10,327
Other lending subsidiaries	6,381		286		—		59		6,726
PCI	966		42		114		—		1,122
Total	$	133,667	$	1,031	$	677	$	576	$	135,951

The following tables present the carrying amount of loans by risk rating. PCI loans are excluded because their related ALLL is determined by loan pool performance.

September 30, 2016	Commercial & Industrial		CRE - Income Producing Properties		CRE - Construction and Development		Dealer Floor Plan		Other Lending Subsidiaries
	(Dollars in millions)
Commercial:
Pass	$	49,616	$	14,135	$	3,769	$	1,279	$	7,345
Special mention	541		164		28		—		27
Substandard - performing	1,209		287		55		9		40
Nonperforming	413		38		12		—		10
Total	$	51,779	$	14,624	$	3,864	$	1,288	$	7,422

	Direct Retail Lending		Revolving Credit		Residential Mortgage		Sales Finance		Other Lending Subsidiaries
	(Dollars in millions)
Retail:
Performing	$	11,967	$	2,561	$	30,202	$	9,958	$	7,467
Nonperforming	55		—		167		6		56
Total	$	12,022	$	2,561	$	30,369	$	9,964	$	7,523

December 31, 2015	Commercial & Industrial		CRE - Income Producing Properties		CRE - Construction and Development		Dealer Floor Plan		Other Lending Subsidiaries
	(Dollars in millions)
Commercial:
Pass	$	46,760	$	12,940	$	3,619	$	1,195	$	6,757
Special mention	305		166		29		6		3
Substandard-performing	1,128		277		71		14		29
Nonperforming	237		38		13		—		6
Total	$	48,430	$	13,421	$	3,732	$	1,215	$	6,795

	Direct Retail Lending		Revolving Credit		Residential Mortgage		Sales Finance		Other Lending Subsidiaries
	(Dollars in millions)
Retail:
Performing	$	11,097	$	2,510	$	30,360	$	10,320	$	6,667
Nonperforming	43		—		173		7		59
Total	$	11,140	$	2,510	$	30,533	$	10,327	$	6,726

The following tables represent activity in the ACL for the periods presented:

	ACL Rollforward
Three Months Ended September 30, 2016	Beginning Balance		Charge- Offs			Recoveries		Provision (Benefit)			Acquisition		Ending Balance
	(Dollars in millions)
Commercial:
Commercial and industrial	$	519	$	(23	)	$	6	$	21		$	—	$	523
CRE-income producing properties	116		(5		)	3		(2		)	—		112
CRE-construction and development	28		(1		)	3		(3		)	—		27
Dealer floor plan	10		—			—		—			—		10
Other lending subsidiaries	27		(5		)	1		5			—		28
Retail:
Direct retail lending	105		(12		)	7		3			—		103
Revolving credit	98		(18		)	5		14			—		99
Residential mortgage-nonguaranteed	194		(11		)	1		—			—		184
Residential mortgage-government guaranteed	30		(2		)	—		9			—		37
Sales finance	36		(7		)	3		4			—		36
Other lending subsidiaries	279		(86		)	11		85			—		289
PCI	65		—			—		(2		)	—		63
ALLL	1,507		(170		)	40		134			—		1,511
RUFC	96		—			—		14			—		110
ACL	$	1,603	$	(170	)	$	40	$	148		$	—	$	1,621

	ACL Rollforward
Three Months Ended September 30, 2015	Beginning Balance		Charge- Offs			Recoveries		Provision (Benefit)			Acquisition		Ending Balance
	(Dollars in millions)
Commercial:
Commercial and industrial	$	457	$	(16	)	$	8	$	13		$	—	$	462
CRE-income producing properties	141		(4		)	3		(5		)	—		135
CRE-construction and development	38		(1		)	3		(7		)	—		33
Dealer floor plan	10		—			—		(1		)	—		9
Other lending subsidiaries	21		(2		)	1		1			—		21
Retail:
Direct retail lending	113		(15		)	8		10			—		116
Revolving credit	102		(17		)	5		11			—		101
Residential mortgage-nonguaranteed	197		(7		)	1		4			—		195
Residential mortgage-government guaranteed	28		(3		)	—		2			—		27
Sales finance	44		(5		)	2		1			—		42
Other lending subsidiaries	249		(75		)	7		76			—		257
PCI	57		—			—		3			—		60
ALLL	1,457		(145		)	38		108			—		1,458
RUFC	78		—			—		(5		)	20		93
ACL	$	1,535	$	(145	)	$	38	$	103		$	20	$	1,551

	ACL Rollforward
Nine Months Ended September 30, 2016	Beginning Balance		Charge-Offs			Recoveries		Provision (Benefit)			Acquisition		Ending Balance
	(Dollars in millions)
Commercial:
Commercial and industrial	$	466	$	(105	)	$	30	$	132		$	—	$	523
CRE-income producing properties	135		(7		)	7		(23		)	—		112
CRE-construction and development	37		(1		)	9		(18		)	—		27
Dealer floor plan	8		—			—		2			—		10
Other lending subsidiaries	22		(17		)	5		18			—		28
Retail:
Direct retail lending	105		(37		)	20		15			—		103
Revolving credit	104		(53		)	15		33			—		99
Residential mortgage-nonguaranteed	194		(26		)	3		13			—		184
Residential mortgage-government guaranteed	23		(4		)	—		18			—		37
Sales finance	40		(21		)	9		8			—		36
Other lending subsidiaries	265		(239		)	31		232			—		289
PCI	61		—			—		2			—		63
ALLL	1,460		(510		)	129		432			—		1,511
RUFC	90		—			—		11			9		110
ACL	$	1,550	$	(510	)	$	129	$	443		$	9	$	1,621

	ACL Rollforward
Nine Months Ended September 30, 2015	Beginning Balance		Charge-Offs			Recoveries		Provision (Benefit)			Acquisition		Ending Balance
	(Dollars in millions)
Commercial:
Commercial and industrial	$	421	$	(62	)	$	29	$	74		$	—	$	462
CRE-income producing properties	162		(17		)	6		(16		)	—		135
CRE-construction and development	48		(3		)	9		(21		)	—		33
Dealer floor plan	10		—			—		(1		)	—		9
Other lending subsidiaries	21		(7		)	3		4			—		21
Retail:
Direct retail lending	110		(40		)	23		23			—		116
Revolving credit	110		(54		)	15		30			—		101
Residential mortgage-nonguaranteed	217		(26		)	2		2			—		195
Residential mortgage-government guaranteed	36		(4		)	—		(5		)	—		27
Sales finance	40		(16		)	7		11			—		42
Other lending subsidiaries	235		(194		)	24		192			—		257
PCI	64		(1		)	—		(3		)	—		60
ALLL	1,474		(424		)	118		290			—		1,458
RUFC	60		—			—		9			24		93
ACL	$	1,534	$	(424	)	$	118	$	299		$	24	$	1,551

The following table provides a summary of loans that are collectively evaluated for impairment.

	September 30, 2016				December 31, 2015
	Recorded Investment		Related ALLL		Recorded Investment		Related ALLL
	(Dollars in millions)
Commercial:
Commercial and industrial	$	51,276	$	472	$	48,110	$	439
CRE-income producing properties	14,545		106		13,339		127
CRE-construction and development	3,837		24		3,697		32
Dealer floor plan	1,288		10		1,215		8
Other lending subsidiaries	7,410		27		6,789		21
Retail:
Direct retail lending	11,940		92		11,055		93
Revolving credit	2,531		87		2,477		91
Residential mortgage-nonguaranteed	29,035		141		29,228		153
Residential mortgage-government guaranteed	463		6		553		1
Sales finance	9,947		35		10,308		39
Other lending subsidiaries	7,302		252		6,534		235
PCI	1,007		63		1,122		61
Total	$	140,581	$	1,315	$	134,427	$	1,300

The following tables set forth certain information regarding impaired loans, excluding PCI and LHFS, that were individually evaluated for impairment.

As of / For The Nine Months Ended September 30, 2016	Recorded Investment		UPB		Related ALLL		Average Recorded Investment		Interest Income Recognized
	(Dollars in millions)
With no related allowance recorded:
Commercial:
Commercial and industrial	$	230	$	251	$	—	$	210	$	—
CRE-income producing properties	15		18		—		15		—
CRE-construction and development	8		8		—		7		—
Other lending subsidiaries	5		7		—		6		—
Retail:
Direct retail lending	13		39		—		12		—
Residential mortgage-nonguaranteed	74		136		—		76		2
Residential mortgage-government guaranteed	2		3		—		3		—
Sales finance	1		2		—		1		—
Other lending subsidiaries	3		8		—		4		—
With an allowance recorded:
Commercial:
Commercial and industrial	273		279		51		256		3
CRE-income producing properties	64		67		6		70		2
CRE-construction and development	19		19		3		23		1
Other lending subsidiaries	7		7		1		4		—
Retail:
Direct retail lending	69		71		11		71		3
Revolving credit	30		30		12		31		1
Residential mortgage-nonguaranteed	384		409		43		360		12
Residential mortgage-government guaranteed	411		412		31		341		10
Sales finance	16		16		1		17		1
Other lending subsidiaries	218		220		37		199		23
Total	$	1,842	$	2,002	$	196	$	1,706	$	58

As Of / For The Year Ended December 31, 2015	Recorded Investment		UPB		Related ALLL		Average Recorded Investment		Interest Income Recognized
	(Dollars in millions)
With no related ALLL recorded:
Commercial:
Commercial and industrial	$	129	$	164	$	—	$	95	$	1
CRE-income producing properties	8		13		—		17		—
CRE-construction and development	8		11		—		10		—
Dealer floor plan	—		—		—		2		—
Other lending subsidiaries	2		3		—		—		—
Retail:
Direct retail lending	11		40		—		12		1
Residential mortgage-nonguaranteed	84		153		—		97		4
Residential mortgage-government guaranteed	5		5		—		3		—
Sales finance	1		2		—		1		—
Other lending subsidiaries	4		8		—		3		—
With an ALLL recorded:
Commercial:
Commercial and industrial	191		194		27		223		5
CRE-income producing properties	74		77		8		96		3
CRE-construction and development	27		27		5		36		1
Dealer floor plan	—		—		—		1		—
Other lending subsidiaries	4		5		1		6		—
Retail:
Direct retail lending	74		75		12		79		4
Revolving credit	33		33		13		36		1
Residential mortgage-nonguaranteed	351		368		41		354		15
Residential mortgage-government guaranteed	312		312		22		323		13
Sales finance	18		18		1		19		1
Other lending subsidiaries	188		190		30		179		28
Total	$	1,524	$	1,698	$	160	$	1,592	$	77

Trial modifications are excluded from the following disclosures because the specific types and amounts of concessions offered to borrowers frequently change between the trial modification and the permanent modification. The following table provides a summary of TDRs, all of which are considered impaired.

	September 30, 2016		December 31, 2015
	(Dollars in millions)
Performing TDRs:
Commercial:
Commercial and industrial	$	46	$	49
CRE-income producing properties	14		13
CRE-construction and development	8		16
Direct retail lending	69		72
Sales finance	16		17
Revolving credit	30		33
Residential mortgage-nonguaranteed	287		288
Residential mortgage-government guaranteed	393		316
Other lending subsidiaries	209		178
Total performing TDRs	1,072		982
Nonperforming TDRs (also included in NPL disclosures)	134		146
Total TDRs	$	1,206	$	1,128
ALLL attributable to TDRs	$	132	$	126

The following tables summarize the primary reason loan modifications were classified as TDRs and includes newly designated TDRs as well as modifications made to existing TDRs. Balances represent the recorded investment at the end of the quarter in which the modification was made. Rate modifications include TDRs made with below market interest rates that also include modifications of loan structures.

	Three Months Ended September 30,
	2016						2015
	Types of Modifications				Impact To ALLL		Types of Modifications				Impact To ALLL
	Rate		Structure				Rate		Structure
	(Dollars in millions)
Commercial:
Commercial and industrial	$	10	$	34	$	1	$	19	$	11	$	—
CRE-income producing properties	4		4		—		—		1		—
CRE-construction and development	2		4		—		5		9		—
Retail:
Direct retail lending	5		—		—		6		3		1
Revolving credit	4		—		1		4		—		1
Residential mortgage-nonguaranteed	12		35		2		21		7		2
Residential mortgage-government guaranteed	105		—		7		42		—		2
Sales finance	—		2		—		—		3		1
Other lending subsidiaries	44		—		6		32		—		5

	Nine Months Ended September 30,
	2016						2015
	Types of Modifications				Impact To ALLL		Types of Modifications				Impact To ALLL
	Rate		Structure				Rate		Structure
	(Dollars in millions)
Commercial:
Commercial and industrial	$	105	$	57	$	3	$	68	$	35	$	2
CRE-income producing properties	15		12		—		4		14		—
CRE-construction and development	6		7		—		5		21		—
Retail:
Direct retail lending	13		1		—		12		3		3
Revolving credit	13		—		3		12		—		3
Residential mortgage-nonguaranteed	50		49		5		65		29		7
Residential mortgage-government guaranteed	213		—		12		151		—		6
Sales finance	—		5		—		—		8		1
Other lending subsidiaries	118		—		16		92		—		13

Charge-offs and forgiveness of principal and interest for TDRs were immaterial for all periods presented.

The pre-default balance for modifications that experienced a payment default that had been classified as TDRs during the previous 12 months was $19 million and $28 million for the three months ended September 30, 2016 and 2015, respectively, and $52 million and $63 million for the nine months ended September 30, 2016 and 2015, respectively. Payment default is defined as movement of the TDR to nonaccrual status, foreclosure or charge-off, whichever occurs first.

Changes in the carrying value and accretable yield of PCI loans are presented in the following table:

	Nine Months Ended September 30, 2016												Year Ended December 31, 2015
	Purchased Impaired						Purchased Nonimpaired						Purchased Impaired						Purchased Nonimpaired
	Accretable Yield			Carrying Value			Accretable Yield			Carrying Value			Accretable Yield			Carrying Value			Accretable Yield			Carrying Value
	(Dollars in millions)
Balance at beginning of period	$	189		$	700		$	176		$	422		$	134		$	579		$	244		$	636
Additions	36			124			—			—			98			402			—			—
Accretion	(101		)	101			(57		)	57			(89		)	89			(89		)	89
Payments received, net	—			(263		)	—			(134		)	—			(370		)	—			(303		)
Other, net	133			—			45			—			46			—			21			—
Balance at end of period	$	257		$	662		$	164		$	345		$	189		$	700		$	176		$	422
Outstanding UPB at end of period				$	978					$	467					$	1,063					$	587

The following table presents additional information about BB&T's loans and leases:

	September 30, 2016		December 31, 2015
	(Dollars in millions)
Unearned income, discounts and net deferred loan fees and costs, excluding PCI	$	511	$	598
Residential mortgage loans in process of foreclosure	367		229