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Derivative Financial Instruments (Tables)
9 Months Ended
Sep. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Classifications and Hedging Relationships
Derivative Classifications and Hedging Relationships
 
 
 
 
 
 
 
 
 
 
 
September 30, 2016
 
December 31, 2015
 
 
Hedged Item or
Transaction
 
Notional
Amount
 
Fair Value
 
Notional
Amount
 
Fair Value
 
 
 
 
Gain
 
Loss
 
 
Gain
 
Loss
 
 
 
 
(Dollars in millions)
Cash flow hedges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate contracts:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pay fixed swaps
 
3 mo. LIBOR funding
 
$
7,250

 
$

 
$
(414
)
 
$
9,300

 
$

 
$
(214
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value hedges:
 
 
 
 

 
 

 
 

 
 

 
 

 
 

Interest rate contracts:
 
 
 
 

 
 

 
 

 
 

 
 

 
 

Receive fixed swaps
 
Long-term debt
 
12,099

 
489

 
(2
)
 
13,092

 
329

 
(1
)
Option trades
 
Long-term debt
 
1,600

 

 
(1
)
 

 

 

Pay fixed swaps
 
Commercial loans
 
268

 

 
(5
)
 
207

 

 
(2
)
Pay fixed swaps
 
Municipal securities
 
230

 

 
(114
)
 
244

 

 
(94
)
Total
 
 
 
14,197

 
489

 
(122
)
 
13,543

 
329

 
(97
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Not designated as hedges:
 
 
 
 

 
 

 
 

 
 

 
 

 
 

Client-related and other risk management:
 
 

 
 

 
 

 
 

 
 

 
 

Interest rate contracts:
 
 
 
 

 
 

 
 

 
 

 
 

 
 

Receive fixed swaps
 
 
 
9,890

 
502

 

 
8,827

 
337

 
(1
)
Pay fixed swaps
 
 
 
10,169

 

 
(539
)
 
8,984

 
1

 
(363
)
Other swaps
 
 
 
1,144

 
4

 
(7
)
 
1,005

 
3

 
(6
)
Other
 
 
 
792

 
1

 
(1
)
 
601

 
1

 
(2
)
Forward commitments
 
 
 
7,956

 
16

 
(14
)
 
4,403

 
5

 
(4
)
Foreign exchange contracts
 
 
 
567

 
3

 
(3
)
 
513

 
6

 
(4
)
Total
 
 
 
30,518

 
526

 
(564
)
 
24,333

 
353

 
(380
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage banking:
 
 
 
 

 
 

 
 

 
 

 
 

 
 

Interest rate contracts:
 
 
 
 

 
 

 
 

 
 

 
 

 
 

Interest rate lock commitments
 
2,821

 
22

 
(2
)
 
1,828

 
8

 
(4
)
When issued securities, forward rate agreements and forward commitments
 
5,054

 
5

 
(20
)
 
2,725

 
9

 
(5
)
Other
 
 
 
566

 
6

 

 
677

 
4

 

Total
 
 
 
8,441

 
33

 
(22
)
 
5,230

 
21

 
(9
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MSRs:
 
 
 
 

 
 

 
 

 
 

 
 

 
 

Interest rate contracts:
 
 
 
 

 
 

 
 

 
 

 
 

 
 

Receive fixed swaps
 
 
 
4,496

 
134

 
(1
)
 
2,343

 
79

 
(7
)
Pay fixed swaps
 
 
 
2,252

 

 
(46
)
 
2,329

 
4

 
(56
)
Option trades
 
 
 
4,080

 
79

 
(18
)
 
7,765

 
184

 
(24
)
When issued securities, forward rate agreements and forward commitments
 
3,165

 
6

 

 
2,682

 

 
(5
)
Other
 
 
 
149

 

 

 

 

 

Total
 
 
 
14,142

 
219

 
(65
)
 
15,119

 
267

 
(92
)
Total derivatives not designated as hedges
 
53,101

 
778

 
(651
)
 
44,682

 
641

 
(481
)
Total derivatives
 
 
 
$
74,548

 
1,267

 
(1,187
)
 
$
67,525

 
970

 
(792
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross amounts not offset in the Consolidated Balance Sheets:
 
 

 
 

 
 

 
 

 
 

 
 

Amounts subject to master netting arrangements not offset due to policy election
 
 
 
(628
)
 
628

 
 

 
(391
)
 
391

Cash collateral (received) posted
 
 
 
 

 
(174
)
 
501

 
 

 
(283
)
 
368

Net amount
 
 
 
 

 
$
465

 
$
(58
)
 
 

 
$
296

 
$
(33
)
The Effect of Derivative Instruments on the Consolidated Statements of Income
The Effect of Derivative Instruments on the Consolidated Statements of Income
Three Months Ended September 30, 2016 and 2015
 
 
 
Effective Portion
 
Pre-tax Gain
 
 
 
Pre-tax Gain (Loss)
 
(Loss) Recognized
 
 
 
Reclassified from
 
in AOCI
 
Location of Amounts
 
AOCI into Income
 
2016
 
2015
 
Reclassified from AOCI into Income
 
2016
 
2015
 
(Dollars in millions)
Cash flow hedges:
 
 
 
 
 
 
 
 
 
Interest rate contracts
$
38

 
$
(168
)
 
Total interest expense
 
$
3

 
$
(21
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pre-tax Gain
 
 
 
 
 
 
 
(Loss) Recognized
 
 
 
 
 
Location of Amounts
 
in Income
 
 
 
 
 
Recognized in Income
 
2016
 
2015
 
 
 
 
 
 
 
(Dollars in millions)
Fair value hedges:
 
 
 
 
 
 
 
 
 
Interest rate contracts
 
 
 
 
Total interest income
 
$
(5
)
 
$
(5
)
Interest rate contracts
 
 
 
 
Total interest expense
 
58

 
69

Total
 
 
 
 
 
 
$
53

 
$
64

 
 
 
 
 
 
 
 
 
 
Not designated as hedges:
 
 
 
 
 
 
 

 
 

Client-related and other risk management:
 
 
 
 

 
 

Interest rate contracts
 
 
 
 
Other noninterest income
 
$
15

 
$
3

Foreign exchange contracts
 
 
 
Other noninterest income
 
(1
)
 
7

Mortgage banking:
 
 
 
 
 
 
 

 
 

Interest rate contracts
 
 
 
 
Mortgage banking income
 
17

 
(21
)
MSRs:
 
 
 
 
 
 
 

 
 

Interest rate contracts
 
 
 
 
Mortgage banking income
 
3

 
94

Total
 
 
 
 
 
 
$
34

 
$
83


The Effect of Derivative Instruments on the Consolidated Statements of Income
Nine Months Ended September 30, 2016 and 2015
 
 
 
 
 
Effective Portion
 
 
Pre-tax Gain
 
 
 
Pre-tax Gain (Loss)
 
 
(Loss) Recognized
 
 
 
Reclassified from
 
 
in AOCI
 
Location of Amounts
 
AOCI into Income
 
 
2016
 
2015
 
Reclassified from AOCI into Income
 
2016
 
2015
 
 
(Dollars in millions)
Cash Flow Hedges:
 
 
 
 
 
 
 
 
 
 
Interest rate contracts
 
$
(245
)
 
$
(180
)
 
Total interest expense
 
$
(18
)
 
$
(63
)
 
 
 

 
 

 
 
 
 
 
 
 
 
 
 
Pre-tax Gain
 
 
 
 
 
 
 
 
(Loss) Recognized
 
 
 
 
 
 
Location of Amounts
 
in Income
 
 
 
 
 
 
Recognized in Income
 
2016
 
2015
 
 
 
 
 
 
 
 
(Dollars in millions)
Fair Value Hedges:
 
 
 
 
 
 
 
 
 
 
Interest rate contracts
 
 
 
 
 
Total interest income
 
$
(13
)
 
$
(15
)
Interest rate contracts
 
 
 
 
 
Total interest expense
 
177

 
205

Total
 
 
 
 
 
 
 
$
164

 
$
190

 
 
 
 
 
 
 
 
 
 
 
Not Designated as Hedges:
 
 
 
 
 
 
 
 

 
 

Client-related and other risk management:
 
 
 
 

 
 

Interest rate contracts
 
 
 
 
 
Other noninterest income
 
$
23

 
$
15

Foreign exchange contracts
 
 
 
Other noninterest income
 
4

 
16

Mortgage Banking:
 
 
 
 
 
 
 
 
 
 

Interest rate contracts
 
 
 
 
 
Mortgage banking income
 
(2
)
 
(1
)
MSRs:
 
 
 
 
 
 
 
 

 
 

Interest rate contracts
 
 
 
 
 
Mortgage banking income
 
232

 
56

Total
 
 
 
 
 
 
 
$
257

 
$
86

Summary of Cash Flow and Fair Value Hedges
The following table presents information about BB&T's cash flow and fair value hedges:
 
 
September 30, 2016
 
December 31, 2015
 
 
(Dollars in millions)
Cash flow hedges:
 
 
 
 
 

 
Net unrecognized after-tax loss on active hedges recorded in AOCI
 
$
(260
)
 
 
$
(134
)
 
Net unrecognized after-tax gain on terminated hedges recorded in AOCI (to be recognized in earnings through 2022)
 
33

 
 
50

 
Estimated portion of net after-tax gain (loss) on active and terminated hedges to be reclassified from AOCI into earnings during the next 12 months
 
2

 
 
(7
)
 
Maximum time period over which BB&T has hedged a portion of the variability in future cash flows for forecasted transactions excluding those transactions relating to the payment of variable interest on existing instruments
 
6

yrs
 
7

yrs
 
 
 
 
 
 
 
Fair value hedges:
 
 

 
 
 
 
Unrecognized pre-tax net gain on terminated hedges (to be recognized as interest primarily through 2019)
 
$
185

 
 
$
138

 
Portion of pre-tax net gain on terminated hedges to be recognized as a change in interest during the next 12 months
 
60

 
 
57

 
Schedule of Derivative Instruments Summary of Collateral Positions with Counterparties
 
September 30, 2016
 
December 31, 2015
 
(Dollars in millions)
Dealer Counterparties:
 
 
 
Cash collateral received from dealer counterparties
$
181

 
$
283

Derivatives in a net gain position secured by that collateral
174

 
301

Unsecured positions in a net gain with dealer counterparties after collateral postings

 
18

 
 
 
 
Cash collateral posted to dealer counterparties
242

 
156

Derivatives in a net loss position secured by that collateral
262

 
161

Additional collateral that would have been posted had BB&T's credit ratings dropped below investment grade
25

 
6

 
 
 
 
Central Clearing Parties:
 

 
 
Cash collateral, including initial margin, posted to central clearing parties
265

 
223

Derivatives in a net loss position secured by that collateral
276

 
227

Securities pledged to central clearing parties
142

 
207