BB&T 2009 Annual Report Download - page 108

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BB&T CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
At December 31, 2009 and 2008, there were $15 million and $24 million, respectively, of merger-related and
restructuring accruals. Merger-related and restructuring accruals are established when the costs are incurred or
once all requirements for a plan to dispose of certain business functions have been approved by management. In
general, a major portion of accrued costs are utilized in conjunction with or immediately following the systems
conversion, when most of the duplicate positions are eliminated and the terminated employees begin to receive
severance. Other accruals are utilized over time based on the sale, closing or disposal of duplicate facilities or
equipment or the expiration of lease contracts. Merger and restructuring accruals are re-evaluated periodically
and adjusted as necessary. The remaining accruals at December 31, 2009 are expected to be utilized during 2010,
unless they relate to specific contracts that expire in later years.
NOTE 3. Securities
The amortized cost and approximate fair values of securities available for sale were as follows:
December 31, 2009
Amortized
Cost
Gross
Unrealized
Fair ValueGains Losses
(Dollars in millions)
Securities available for sale:
U.S. government-sponsored entities (GSE) $ 2,090 $ 5 $ 60 $ 2,035
Mortgage-backed securities issued by GSE 26,649 231 210 26,670
States and political subdivisions 2,176 56 125 2,107
Non-agency mortgage-backed securities 1,339 — 317 1,022
Equity and other securities 852 22 — 874
Covered securities 1,166 47 12 1,201
Total securities available for sale $34,272 $361 $724 $33,909
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
Covered securities include $896 million of non-agency mortgage-backed securities and $305 million of
municipal securities acquired as part of the Colonial transaction. All covered securities are covered by one of the
FDIC loss share agreements as further discussed in Note 2 to these consolidated financial statements.
At December 31, 2009 and 2008, securities with carrying value of approximately $20.7 billion and $16.1 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, 2009. The
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