Shareholders' Equity

6 Months Ended

Jun. 30, 2011

Shareholders' Equity

Shareholders' Equity

NOTE 9. Shareholders' Equity

Common Stock

The authorized common stock of BB&T consists of two billion shares with a $5 par value. There were 697 million and 694 million common shares issued and outstanding at June 30, 2011 and December 31, 2010, respectively.

Preferred Stock

The authorized preferred stock of BB&T consists of five million shares. At June 30, 2011 and December 31, 2010, there were no preferred shares outstanding.

Equity-Based Plans

At June 30, 2011, BB&T has options, restricted shares and restricted share units outstanding from the following equity-based compensation plans: the 2004 Stock Incentive Plan ("2004 Plan"), the 1995 Omnibus Stock Incentive Plan ("Omnibus Plan"), the Non-Employee Directors' Stock Option Plan ("Directors' Plan"), and a plan assumed from an acquired entity. BB&T's shareholders have approved all equity-based compensation plans with the exception of the plan assumed from an acquired entity. As of June 30, 2011, the 2004 Plan is the only plan that has shares available for future grants. The 2004 Plan allows for accelerated vesting of awards for holders who retire and have met all retirement eligibility requirements and in connection with certain other events. Refer to BB&T's Annual Report on Form 10-K for the year ended December 31, 2010 for further disclosures related to equity-based awards issued by BB&T.

BB&T measures the fair value of each option award on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions used for grants awarded during the first six months of 2011 and 2010, respectively. Substantially all of BB&T's option awards are granted in February of each year. Therefore, the assumptions noted below are weighted accordingly:

	June 30,
	2011			2010
Assumptions:
Risk-free interest rate		1.7	%		2.0	%
Dividend yield		3.5			5.4
Volatility factor		37.2			36.0
Expected life		7.4	yrs		7.2	yrs
Fair value of options per share	$	7.45		$	5.60

BB&T measures the fair value of restricted shares based on the price of BB&T's common stock on the grant date and the fair value of restricted share units based on the price of BB&T's common stock on the grant date less the present value of expected dividends that are foregone during the vesting period.

The following table details the activity during the first six months of 2011 related to stock options awarded by BB&T:

	Six Months Ended June 30, 2011
	Options			Wtd. Avg. Exercise Price
Outstanding at beginning of period		44,690,131		$	35.06
Granted		3,755,975			27.73
Exercised		(33,198	)		17.89
Forfeited or expired		(2,609,000	)		36.30
Outstanding at end of period		45,803,908			34.40
Exercisable at end of period		34,303,021		$	36.38

The following table details the activity during the first six months of 2011 related to restricted shares and restricted share units awarded by BB&T:

	Six Months Ended June 30, 2011
	Shares/Units			Wtd. Avg. Grant Date Fair Value
Nonvested at beginning of period		13,283,786		$	20.06
Granted		2,554,528			24.15
Vested		(1,803,878	)		29.99
Forfeited		(325,913	)		21.43
Nonvested at end of period		13,708,523		$	19.48