Loans and Leases

6 Months Ended

Jun. 30, 2011

Loans and Leases

Loans and Leases

NOTE 3. Loans and Leases

The following table provides a breakdown of BB&T's loan portfolio as of June 30, 2011 and December 31, 2010:

	June 30, 2011		December 31, 2010
	(Dollars in millions)
Loans and leases, net of unearned income:
Commercial:
Commercial and industrial	$	34,166	$	34,050
Commercial real estate—other		11,134		11,439
Commercial real estate—residential ADC (1)		2,689		3,397
Direct retail lending		13,679		13,749
Sales finance		7,236		7,050
Revolving credit		2,091		2,127
Residential mortgage		18,372		17,550
Specialized lending		8,464		7,953
Other acquired		50		58
Total loans and leases held for investment (excluding covered loans)		97,881		97,373
Covered		5,504		6,194
Total loans and leases held for investment		103,385		103,567
Loans held for sale		1,965		3,697
Total loans and leases	$	105,350	$	107,264

(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 value of all purchased impaired and nonimpaired loans, and the related allowance, as of June 30, 2011 and December 31, 2010:

	June 30, 2011									December 31, 2010
	Purchased Impaired Loans			Purchased Nonimpaired Loans			Total			Purchased Impaired Loans			Purchased Nonimpaired Loans			Total
	(Dollars in millions)
Residential mortgage	$	700		$	678		$	1,378		$	733		$	713		$	1,446
Commercial real estate		1,728			1,826			3,554			2,031			1,982			4,013
Commercial		89			483			572			91			644			735
Total covered		2,517			2,987			5,504			2,855			3,339			6,194
Other acquired		2			48			50			3			55			58
Total		2,519			3,035			5,554			2,858			3,394			6,252
Allowance for loan losses		(114	)		(45	)		(159	)		(90	)		(54	)		(144	)
Net	$	2,405		$	2,990		$	5,395		$	2,768		$	3,340		$	6,108

Changes in the carrying amount and accretable yield for purchased impaired and nonimpaired loans, excluding loans held for sale, were as follows for the six months ended June 30, 2011 and the year ended December 31, 2010:

	June 30, 2011												December 31, 2010
	Purchased Impaired						Purchased Nonimpaired						Purchased Impaired						Purchased Nonimpaired
	Accretable Yield			Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans
	(Dollars in millions)
Balance at beginning of period	$	835		$	2,858		$	1,611		$	3,394		$	889		$	3,666		$	1,301		$	4,476
Additions		—			—			—			—			—			—			—			—
Accretion		(187	)		187			(355	)		355			(459	)		459			(483	)		483
Reclassifications from nonaccretable balance, net		135			—			475			—			405			—			793			—
Payments received, net		—			(526	)		—			(714	)		—			(1,267	)		—			(1,565	)
Balance at end of period	$	783		$	2,519		$	1,731		$	3,035		$	835		$	2,858		$	1,611		$	3,394

The outstanding unpaid principal balance for all purchased impaired loans as of June 30, 2011 and December 31, 2010 was $3.2 billion and $3.8 billion, respectively. The outstanding unpaid principal balance for all purchased nonimpaired loans as of June 30, 2011 and December 31, 2010 was $4.3 billion and $5.0 billion, respectively.

At June 30, 2011 and December 31, 2010, 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 loans and loans 90 days or more past due and still accruing as of June 30, 2011 and December 31, 2010:

	June 30, 2011		December 31, 2010
	(Dollars in millions)
Nonaccrual loans and leases:
Held for investment (1)	$	2,061	$	2,149
Held for sale		116		521
Total nonaccrual loans and leases (1)		2,177		2,670
Foreclosed real estate (2)		1,147		1,259
Other foreclosed property		29		42
Total foreclosed property (2)		1,176		1,301
Total nonperforming assets (excluding covered assets) (1)(2)	$	3,353	$	3,971
Loans 90 days or more past due and still accruing (excluding covered loans) (3)(4)(5)	$	203	$	295

(1) Covered and other acquired loans are considered to be performing due to the application of the accretion method. Covered loans that are contractually past due 90 days or more and still accruing are noted below.

(2) Excludes foreclosed real estate totaling $348 million and $313 million as of June 30, 2011 and December 31, 2010, respectively, that is covered by FDIC loss sharing agreements.

(3) Excludes mortgage loans guaranteed by GNMA that BB&T does not have the obligation to repurchase totaling $389 million and $425 million as of June 30, 2011 and December 31, 2010, respectively.

(4) Excludes loans past due 90 days or more that are covered by FDIC loss sharing agreements totaling $935 million and $1.1 billion as of June 30, 2011 and December 31, 2010, respectively.

(5) Excludes mortgage loans past due 90 days or more that are government guaranteed totaling $162 million and $153 million as of June 30, 2011 and December 31, 2010, respectively.

The following table provides a summary of loans that continue to accrue interest under the terms of the restructuring ("performing restructurings") and restructured loans that have been placed in nonaccrual status ("nonperforming restructurings") as of June 30, 2011 and December 31, 2010:

	June 30, 2011		December 31, 2010
	(Dollars in millions)
Performing restructurings:
Commercial:
Commercial and industrial	$	100	$	205
Commercial real estate—other		153		280
Commercial real estate—residential ADC		105		172
Direct retail lending		143		141
Sales finance		6		5
Revolving credit		62		62
Residential mortgage (1)(2)		570		585
Specialized lending		39		26
Total performing restructurings (1)(2)		1,178		1,476
Nonperforming restructurings (3)(4)		381		479
Total restructurings (1)(2)(3)(4)(5)	$	1,559	$	1,955

(1) Excludes restructured mortgage loans held for investment that are government guaranteed totaling $160 million and $115 million at June 30, 2011 and December 31, 2010, respectively.

(2) Excludes restructured mortgage loans held for sale that are government guaranteed totaling $24 million and $14 million at June 30, 2011 and December 31, 2010, respectively.

(3) Nonperforming restructurings are included in nonaccrual loan disclosures.

(4) Includes approximately $20 million and $110 million of nonperforming restructurings included in loans held for sale at June 30, 2011 and December 31, 2010, respectively.

(5) All restructurings are considered impaired. The allowance for loan and lease losses attributable to these restructured loans totaled $321 million and $324 million at June 30, 2011 and December 31, 2010, respectively.

BB&T had commitments totaling $28 million and $64 million at June 30, 2011 and December 31, 2010, respectively, to lend additional funds to clients with loans whose terms have been modified in restructurings.