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BB&T CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Average impaired loans for the years ended December 31, 2007, 2006, and 2005 were $137 million, $59 million
and $54 million, respectively. The amount of interest that has been recognized as income on impaired loans for
any of the last three years has not been significant.
NOTE 5. Allowance for Loan and Lease Losses and Reserve for Unfunded Lending
Commitments
An analysis of the allowance for credit losses for each of the past three years is presented in the following
table:
For the Years Ended
December 31,
2007 2006 2005
(Dollars in millions)
Beginning Balance $ 888 $ 830 $ 828
Allowance for acquired (sold) loans, net 17 34 (1)
Provision for credit losses 448 240 217
Loans and leases charged-off (405) (277) (277)
Recoveries of previous charge-offs 67 61 63
Net loans and leases charged-off (338) (216) (214)
Ending Balance $1,015 $ 888 $ 830
The allowance for credit losses consists of the allowance for loan and lease losses, which is presented on the
Consolidated Balance Sheets, and the reserve for unfunded lending commitments, which is included in other
liabilities on the Consolidated Balance Sheets. At December 31, 2007, 2006 and 2005, the allowance for loan and
lease losses totaled $1.0 billion, $888 million and $825 million, respectively. The reserve for unfunded lending
commitments totaled $11 million and $5 million at December 31, 2007 and 2005, respectively.
For the Years Ended
December 31,
2007 2006 2005
(Dollars in millions)
Nonaccrual loans and leases $502 $260 $229
Foreclosed real estate 143 54 48
Other foreclosed property 51 35 23
Total foreclosed property 194 89 71
Total nonperforming assets $696 $349 $300
Loans 90 days or more past due and still accruing $223 $102 $103
The gross additional interest income that would have been earned if the loans and leases classified as
nonaccrual had performed in accordance with the original terms was approximately $30 million, $20 million and
$15 million in 2007, 2006 and 2005, respectively.
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