Loans and Leases

9 Months Ended

Sep. 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:
				September 30,		December 31,
				2012		2011
				(Dollars in millions)
	Loans and leases, net of unearned income:
		Commercial:
			Commercial and industrial	$	38,012	$	36,415
			Commercial real estate - other		10,913		10,689
			Commercial real estate - residential ADC (1)		1,454		2,061
		Direct retail lending			15,710		14,506
		Sales finance			7,723		7,401
		Revolving credit			2,291		2,212
		Residential mortgage			24,293		20,581
		Other lending subsidiaries			10,056		8,737
			Total loans and leases held for investment (excluding covered loans)		110,452		102,602
		Covered			3,688		4,867
			Total loans and leases held for investment		114,140		107,469
		Loans held for sale			3,467		3,736
			Total loans and leases	$	117,607	$	111,205
(1)	Commercial real estate - residential ADC represents residential acquisition, development and construction loans.

Changes in the carrying amount and accretable yield for purchased impaired and nonimpaired loans accounted for under the accretion method were as follows:
		Nine Months Ended September 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		(177)		177		(429)		429		(359)		359		(706)		706
	Payments received, net		―		(736)		―		(1,061)		―		(1,093)		―		(1,318)
	Other, net		(107)		―		(26)		―		45		―		334		―
Balance at end of period		$	237	$	1,565	$	784	$	2,150	$	521	$	2,124	$	1,239	$	2,782

The outstanding unpaid principal balance for all purchased impaired loans as of September 30, 2012 and December 31, 2011 was $2.3 billion and $3.3 billion, respectively. The outstanding unpaid principal balance for all purchased nonimpaired loans as of September 30, 2012 and December 31, 2011 was $2.9 billion and $3.9 billion, respectively.

At September 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:
			September 30,		December 31,
			2012		2011
			(Dollars in millions)
	Nonaccrual loans and leases held for investment		$	1,540	$	1,872
	Foreclosed real estate (1)			139		536
	Other foreclosed property			39		42
		Total nonperforming assets (excluding covered assets) (1)	$	1,718	$	2,450
	Loans 90 days or more past due and still accruing (excluding covered loans) (2)(3)(4)		$	152	$	202
(1)	Excludes foreclosed real estate totaling $289 million and $378 million as of September 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 $499 million and $426 million as of September 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 $476 million and $736 million as of September 30, 2012 and December 31, 2011, respectively.
(4)	Excludes mortgage loans 90 days or more past due that are government guaranteed totaling $233 million and $206 million as of September 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''):
				September 30,		December 31,
				2012		2011
				(Dollars in millions)
	Performing restructurings:
		Commercial:
			Commercial and industrial	$	66	$	74
			Commercial real estate - other		75		117
			Commercial real estate - residential ADC		25		44
		Direct retail lending			120		146
		Sales finance			7		8
		Revolving credit			58		62
		Residential mortgage (1)(2)			646		608
		Other lending subsidiaries			77		50
			Total performing restructurings (1)(2)		1,074		1,109
	Nonperforming restructurings (3)				225		280
			Total restructurings (1)(2)(3)(4)	$	1,299	$	1,389
(1)	Excludes restructured mortgage loans held for investment that are government guaranteed totaling $272 million and $232 million at September 30, 2012 and December 31, 2011, respectively.
(2)	Excludes restructured mortgage loans held for sale that are government guaranteed totaling $3 million and $4 million at September 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 $254 million and $266 million at September 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 September 30, 2012 and December 31, 2011.