Loans and Leases

6 Months Ended

Jun. 30, 2012

Loans and Leases

Loans and Leases

NOTE 3. Loans and Leases

The following table provides a breakdown of BB&T’s loan portfolio:
				June 30,		December 31,
				2012		2011
				(Dollars in millions)
	Loans and leases, net of unearned income:
		Commercial:
			Commercial and industrial	$	36,938	$	36,415
			Commercial real estate - other		10,457		10,689
			Commercial real estate - residential ADC (1)		1,590		2,061
		Direct retail lending			15,155		14,467
		Sales finance			7,794		7,401
		Revolving credit			2,206		2,212
		Residential mortgage			23,117		20,581
		Other lending subsidiaries			9,835		8,737
		Other acquired			28		39
			Total loans and leases held for investment (excluding covered loans)		107,120		102,602
		Covered			3,955		4,867
			Total loans and leases held for investment		111,075		107,469
		Loans held for sale			2,736		3,736
			Total loans and leases	$	113,811	$	111,205
(1)	Commercial real estate - residential ADC represents residential acquisition, development and construction loans.

Covered loans represent loans acquired from the FDIC subject to one of the loss sharing agreements. Other acquired loans represent consumer loans acquired from the FDIC that are not subject to one of the loss sharing agreements.

The following table reflects the carrying amount of all purchased impaired and nonimpaired loans and the related allowance:
			June 30, 2012						December 31, 2011
			Purchased		Purchased				Purchased		Purchased
			Impaired		Nonimpaired				Impaired		Nonimpaired
			Loans		Loans		Total		Loans		Loans		Total
			(Dollars in millions)
	Residential mortgage		$	611	$	548	$	1,159	$	647	$	617	$	1,264
	Commercial real estate			1,079		1,264		2,343		1,407		1,597		3,004
	Commercial			56		397		453		68		531		599
		Total covered		1,746		2,209		3,955		2,122		2,745		4,867
	Other acquired			1		27		28		2		37		39
		Total		1,747		2,236		3,983		2,124		2,782		4,906
	Allowance for loan losses			(87)		(52)		(139)		(113)		(36)		(149)
		Net	$	1,660	$	2,184	$	3,844	$	2,011	$	2,746	$	4,757

Changes in the carrying amount and accretable yield for purchased impaired and nonimpaired loans were as follows:
		Six Months Ended June 30, 2012								Year Ended December 31, 2011
		Purchased Impaired				Purchased Nonimpaired				Purchased Impaired				Purchased Nonimpaired
				Carrying				Carrying				Carrying				Carrying
		Accretable		Amount		Accretable		Amount		Accretable		Amount		Accretable		Amount
		Yield		of Loans		Yield		of Loans		Yield		of Loans		Yield		of Loans
		(Dollars in millions)
Balance at beginning of period		$	521	$	2,124	$	1,239	$	2,782	$	835	$	2,858	$	1,611	$	3,394
	Accretion		(131)		131		(297)		297		(359)		359		(706)		706
	Payments received, net		―		(508)		―		(843)		―		(1,093)		―		(1,318)
	Other, net		(92)		―		(44)		―		45		―		334		―
Balance at end of period		$	298	$	1,747	$	898	$	2,236	$	521	$	2,124	$	1,239	$	2,782

The outstanding unpaid principal balance for all purchased impaired loans as of June 30, 2012 and December 31, 2011 was $2.6 billion and $3.3 billion, respectively. The outstanding unpaid principal balance for all purchased nonimpaired loans as of June 30, 2012 and December 31, 2011 was $3.1 billion and $3.9 billion, respectively.

At June 30, 2012 and December 31, 2011, none of the purchased loans were classified as nonperforming assets. Therefore, interest income, through accretion of the difference between the carrying amount of the loans and the expected cash flows, is being recognized on all purchased loans. The allowance for loan losses related to the purchased loans results from decreased expectations of future cash flows due to increased credit losses for certain acquired loan pools.

The following table provides a summary of BB&T’s nonperforming assets and loans 90 days or more past due and still accruing:
			June 30,		December 31,
			2012		2011
			(Dollars in millions)
	Nonaccrual loans and leases held for investment		$	1,647	$	1,872
	Foreclosed real estate (1)			221		536
	Other foreclosed property			29		42
		Total nonperforming assets (excluding covered assets) (1)	$	1,897	$	2,450
	Loans 90 days or more past due and still accruing (excluding covered loans) (2)(3)(4)		$	147	$	202
(1)	Excludes foreclosed real estate totaling $310 million and $378 million as of June 30, 2012 and December 31, 2011, respectively, that is covered by FDIC loss sharing agreements.
(2)	Excludes mortgage loans guaranteed by GNMA that BB&T does not have the obligation to repurchase totaling $453 million and $426 million as of June 30, 2012 and December 31, 2011, respectively.
(3)	Excludes loans 90 days or more past due that are covered by FDIC loss sharing agreements totaling $613 million and $736 million as of June 30, 2012 and December 31, 2011, respectively.
(4)	Excludes mortgage loans 90 days or more past due that are government guaranteed totaling $217 million and $206 million as of June 30, 2012 and December 31, 2011, respectively.

The following table provides a summary of loans that continue to accrue interest under restructured terms ("performing restructurings") and restructured loans that have been placed in nonaccrual status ("nonperforming restructurings''):
				June 30,		December 31,
				2012		2011
				(Dollars in millions)
	Performing restructurings:
		Commercial:
			Commercial and industrial	$	62	$	74
			Commercial real estate - other		78		117
			Commercial real estate - residential ADC		28		44
		Direct retail lending			114		146
		Sales finance			7		8
		Revolving credit			58		62
		Residential mortgage (1)(2)			636		608
		Other lending subsidiaries			69		50
			Total performing restructurings (1)(2)		1,052		1,109
	Nonperforming restructurings (3)				219		280
			Total restructurings (1)(2)(3)(4)	$	1,271	$	1,389
(1)	Excludes restructured mortgage loans held for investment that are government guaranteed totaling $264 million and $232 million at June 30, 2012 and December 31, 2011, respectively.
(2)	Excludes restructured mortgage loans held for sale that are government guaranteed totaling $2 million and $4 million at June 30, 2012 and December 31, 2011, respectively.
(3)	Nonperforming restructurings are included in nonaccrual loan disclosures.
(4)	All restructurings are considered impaired. The allowance for loan and lease losses attributable to these restructured loans totaled $220 million and $266 million at June 30, 2012 and December 31, 2011, respectively.
Commitments to lend additional funds to clients with loans whose terms have been modified in restructurings was immaterial at June 30, 2012 and December 31, 2011.