Shareholders' Equity

3 Months Ended

Mar. 31, 2012

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 698 million and 697 million common shares issued and outstanding at March 31, 2012 and December 31, 2011, respectively.

Preferred Stock

The authorized preferred stock of BB&T consists of five million shares. At March 31, 2012 andDecember 31, 2011, there were no preferred shares outstanding.

BB&T issued $575 million of Series D Non-Cumulative Perpetual Preferred Stock on May 1, 2012. The preferred stock has a dividend of 5.85%.

Equity-Based Plans

At March 31, 2012, 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 March 31, 2012, 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, 2011 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. The following table presents the weighted average assumptions used:

		Three Months Ended March 31,
		2012			2011
Assumptions:
	Risk-free interest rate		1.5	%		1.7	%
	Dividend yield		4.4			3.5
	Volatility factor		33.0			37.2
	Expected life		7.0	yrs		7.4	yrs
Fair value of options per share		$	6.07		$	7.45

BB&T determines the assumptions used in the Black-Scholes option pricing model as follows: the risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of the grant; the dividend yield is based on the historical dividend yield of BB&T's stock, adjusted to reflect the expected dividend yield over the expected life of the option; the volatility factor is based on the historical volatility of BB&T's stock, adjusted to reflect the ways in which current information indicates that the future is reasonably expected to differ from the past; and the weighted-average expected life is based on the historical behavior of employees related to exercises, forfeitures and cancellations.

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 related to stock options awarded by BB&T:
			Three Months Ended March 31, 2012
				Wtd. Avg.
				Exercise
			Options	Price
	Outstanding at beginning of period		45,384,554	$	34.42
		Granted	4,683,073		30.09
		Exercised	(282,446)		22.90
		Forfeited or expired	(2,872,746)		36.78
	Outstanding at end of period		46,912,435		33.92
	Exercisable at end of period		35,303,412		35.76
	Exercisable and expected to vest at end of period		44,861,092	$	33.95

The following table details the activity related to restricted shares and restricted share units awarded by BB&T:
			Three Months Ended March 31, 2012
				Wtd. Avg.
				Grant Date
			Shares/Units	Fair Value
	Nonvested at beginning of period		13,462,630	$	19.47
		Granted	2,499,063		25.83
		Vested	(1,441,964)		32.89
		Forfeited	(79,262)		19.21
	Nonvested at end of period		14,440,467	$	19.23