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BB&T CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
NOTE 3. Securities
The amortized cost and approximate fair values of securities available for sale were as follows:
December 31, 2008
Amortized
Cost
Gross Unrealized Fair
ValueGains Losses
(Dollars in millions)
Securities available for sale:
U.S. government-sponsored entities (GSE) $ 1,320 $ 13 $— $ 1,333
Mortgage-backed securities issued by GSE 27,117 338 25 27,430
States and political subdivisions 2,413 8 344 2,077
Non-agency mortgage-backed securities 1,573 — 475 1,098
Equity and other securities 937 2 34 905
Total securities available for sale $33,360 $361 $878 $32,843
December 31, 2007
Amortized
Cost
Gross Unrealized Fair
ValueGains Losses
(Dollars in millions)
Securities available for sale:
U.S. government-sponsored entities (GSE) $ 9,792 $ 50 $ 35 $ 9,807
Mortgage-backed securities issued by GSE 8,218 58 55 8,221
States and political subdivisions 1,423 20 51 1,392
Non-agency mortgage-backed securities 1,740 8 28 1,720
Equity and other securities 1,291 7 19 1,279
Total securities available for sale $22,464 $143 $188 $22,419
Accumulated other comprehensive income at December 31, 2008 and 2007 included $324 million and $28
million, respectively, of net after-tax unrealized losses relating to securities available for sale.
At December 31, 2008 and 2007, securities with carrying value of approximately $16.1 billion and $13.9 billion
were pledged to secure municipal deposits, securities sold under agreements to repurchase, other borrowings,
and for other purposes as required or permitted by law.
BB&T had certain investments in marketable debt securities and mortgage-backed securities issued by
Fannie Mae and Freddie Mac that exceeded ten percent of shareholders’ equity at December 31, 2008. The
Fannie Mae investments had total amortized cost and market values of $11.4 billion and $11.6 billion, respectively,
at December 31, 2008, while Freddie Mac investments had total amortized cost and market values of $7.2 billion
and $7.3 billion, respectively. Trading securities totaling $376 million at December 31, 2008 and $1.0 billion at
December 31, 2007 are excluded from the accompanying tables.
Equity securities include investments in stock issued by the FHLB of Atlanta. At December 31, 2008 and
2007, BB&T held $479 million and $365 million, respectively, of investments in FHLB stock.
Proceeds from sales of securities available for sale during 2008, 2007 and 2006 were $21.0 billion, $2.5 billion
and $2.7 billion, respectively. Gross gains of $244 million, $22 million and $2 million and gross losses of $33 million,
$25 million and $75 million were realized on those sales in 2008, 2007 and 2006, respectively.
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