BB&T 2008 Annual Report Download - page 25

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Home Equity Portfolio (2)
As of / For the Period
Ended December 31, 2008
Home Equity Loans & Lines Home Equity
Loans Home Equity
Lines
(Dollars in millions)
Total loans outstanding $8,878 $5,497
Average loan size (in thousands) (3) 48 36
Average credit score 725 759
Percentage of total loans 9.0% 5.6%
Percentage that are first mortgages 77.2 24.3
Average loan to value 67.4 66.7
Nonaccrual loans and leases as a percentage of category .79 .28
Gross charge-offs as a percentage of category .61 .88
As of / For the Period Ended December 31, 2008
Home Equity Loans and Lines by State
Total Home
Equity
Loans and
Lines
Outstanding Percentage
of Total
Nonaccrual as
a Percentage
of Outstandings
Gross Charge-Offs
as a Percentage
of Outstandings
(Dollars in millions)
North Carolina $ 4,992 34.7% .54% .29%
Virginia 3,232 22.5 .30 .83
South Carolina 1,407 9.8 1.03 .50
Georgia 1,158 8.1 .66 1.19
West Virginia 863 6.0 .34 .31
Maryland 861 6.0 .27 .68
Florida 721 5.0 1.69 3.51
Kentucky 605 4.2 .73 .35
Tennessee 425 3.0 .96 .21
Washington, D.C. 90 .6 1.13 3.89
Other 21 .1 .35 .27
Total $14,375 100.0% .60 .71
NOTES: (1) Includes $380 million in loans originated by Lendmark Financial Services, which are disclosed as a
part of the specialized lending category, and excludes mortgage loans guaranteed by GNMA that
BB&T does not have the obligation to repurchase.
(2) Home Equity portfolio is a component of direct retail loans and originated through the BB&T
branching network.
(3) Home equity lines without an outstanding balance are excluded from this calculation.
Investment Activities
Investment securities represent a significant portion of BB&T’s assets. Branch Bank invests in securities as
allowable under bank regulations. These securities include obligations of the U.S. Treasury, U.S. government
agencies, U.S. government sponsored entities, including mortgage-backed securities, bank eligible obligations of
any state or political subdivision, privately-issued mortgage-backed securities, structured notes, bank eligible
corporate obligations, including corporate debentures, commercial paper, negotiable certificates of deposit,
bankers acceptances, mutual funds and limited types of equity securities. Branch Bank also may deal in securities
subject to the provisions of the Gramm-Leach-Bliley Act. Scott & Stringfellow, LLC, BB&T’s full-service
brokerage and investment banking subsidiary, engages in the underwriting, trading and sales of equity and debt
securities subject to the risk management policies of the Corporation.
BB&T’s investment activities are governed internally by a written, board-approved policy. The investment
policy is carried out by the Corporation’s Market Risk and Liquidity Committee (“MRLC”), which meets
regularly to review the economic environment and establish investment strategies. The MRLC also has much
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