BB&T 2007 Annual Report Download - page 87

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BB&T CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
of the loan should be included in the measurement of all written loan commitments that are accounted for at fair
value through earnings. The provisions of SAB No. 109 affect only the timing of mortgage banking income
recognition and are effective for loan commitments entered into after January 1, 2008. The adoption of the
provisions of SAB No. 109 was not material to BB&T’s consolidated results of operations.
In December 2007, the FASB issued SFAS No. 141 (revised 2007), “Business Combinations,” (“SFAS
No. 141(R)”). SFAS No. 141(R) requires the acquiring entity in a business combination to recognize the full fair
value of assets acquired and liabilities assumed in the transaction (whether a full or partial acquisition);
establishes the acquisition-date fair value as the measurement objective for all assets acquired and liabilities
assumed; requires expensing of most transaction and restructuring costs; and requires the acquirer to disclose to
investors and other users all of the information needed to evaluate and understand the nature and financial effect
of the business combination. SFAS No. 141(R) is effective for BB&T for business combinations entered into after
January 1, 2009.
In December 2007, the FASB issued SFAS No. 160, “Noncontrolling Interests in Consolidated Financial
Statements—an amendment of ARB No. 51,” (“SFAS No. 160”). SFAS No. 160 requires that a noncontrolling
interest in a subsidiary be accounted for as equity in the consolidated statement of financial position and that net
income include the amounts for both the parent and the noncontrolling interest, with a separate amount
presented in the income statement for the noncontrolling interest share of net income. SFAS No. 160 also
expands the disclosure requirements and provides guidance on how to account for changes in the ownership
interest of a subsidiary. SFAS No. 160 is effective prospectively for BB&T on January 1, 2009, except for the
presentation and disclosure provisions which will be applied retrospectively for all periods presented.
NOTE 2. Business Combinations
Financial Institution Acquisitions
On May 1, 2007, BB&T completed the acquisition of Coastal Financial Corporation (“Coastal”), a $1.7 billion
bank holding company headquartered in Myrtle Beach, South Carolina. In conjunction with this transaction,
BB&T issued approximately 8.8 million shares of common stock and 574 thousand stock options valued in the
aggregate at $400 million. Including subsequent adjustments, BB&T recorded $246 million in goodwill and $47
million in amortizing intangibles, which are primarily core deposit intangibles.
On August 1, 2006, BB&T completed the acquisition of First Citizens Bancorp (“First Citizens”), a $700
million bank holding company headquartered in Cleveland, Tennessee. In conjunction with this transaction,
BB&T issued approximately 2.9 million shares of common stock and 38 thousand stock options valued in the
aggregate at $122 million and paid $20 million in cash. Including subsequent adjustments, BB&T recorded $94
million in goodwill and $14 million in amortizing intangibles, which are primarily core deposit intangibles.
On June 1, 2006, BB&T completed the acquisition of Main Street Banks Inc. (“Main Street”), a $2.3 billion
bank holding company headquartered in Atlanta, Georgia. In conjunction with this transaction, BB&T issued
approximately 14.3 million shares of common stock and 636 thousand stock options valued in the aggregate at
$621 million. Including subsequent adjustments, BB&T recorded $426 million in goodwill and $43 million in
amortizing intangibles, which are primarily core deposit intangibles.
Insurance and Other NonBank Acquisitions
On January 2, 2007, BB&T completed the acquisition of AFCO Credit Corporation and its Canadian affiliate,
CAFO, Inc (collectively, “AFCO”). In conjunction with this transaction, BB&T recorded $10 million in goodwill
and $51 million in amortizing intangibles, which are primarily related to broker relationships.
During 2007, BB&T also acquired four insurance agencies and one commercial real estate finance company.
In conjunction with these transactions, BB&T recorded approximately $73 million in goodwill and $40 million of
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