BB&T 2009 Annual Report Download - page 21

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Specialized Lending Portfolio
BB&T’s specialized lending portfolio consists of loans originated through six business units that provide
specialty finance alternatives to consumers and businesses including: dealer-based financing of equipment for
small businesses and consumers, commercial equipment leasing and finance, direct and indirect consumer finance,
insurance premium finance, indirect subprime automobile finance, and full-service commercial mortgage banking.
BB&T offers these services to bank clients as well as nonbank clients within and outside BB&T’s primary
geographic market area.
BB&T’s specialized lending subsidiaries adhere to the same overall underwriting approach as the commercial
and consumer lending portfolio and also utilize automated credit scoring to assist with underwriting the credit
risk. The majority of these loans are relatively homogenous and no single loan is individually significant in terms
of its size and potential risk of loss. The majority of the loans are secured by real estate, automobiles, equipment
or unearned insurance premiums. As of December 31, 2009, included in the specialized lending portfolio are loans
to subprime borrowers of approximately $2.9 billion, or 2.7% of the total BB&T loan and lease portfolio. Of these,
approximately $365 million are residential real estate loans and included in the disclosures in Table 14-2 herein.
Covered Loan Portfolio
In connection with the FDIC-assisted acquisition of Colonial, BB&T acquired approximately $14.1 billion of
loans that are covered by loss sharing agreements. BB&T recorded these loans at $9.6 billion, which represented
their fair value on the acquisition date. The loans covered by loss sharing agreements are primarily commercial
real estate loans and residential mortgage loans. See Note 2 “Business Combinations” and Note 4 “Loans and
Leases” in the “Notes to Consolidated Financial Statements” in this report for additional disclosures related to
BB&T’s covered loans.
The following table presents BB&T’s total loan portfolio based upon BB&T’s lines of business, as discussed
herein, rather than upon regulatory reporting classifications:
Table 3
Composition of Loan and Lease Portfolio Based on Lines of Business
December 31,
2009 2008 2007 2006 2005
(Dollars in millions)
Loans and leases, net of unearned income:
Commercial loans $ 49,445 $49,727 $43,685 $39,580 $34,965
Leveraged leases 375 753 1,185 1,720 1,650
Total commercial loans and leases 49,820 50,480 44,870 41,300 36,615
Sales finance 6,290 6,354 6,021 5,683 5,264
Revolving credit 2,016 1,777 1,618 1,414 1,347
Direct retail 14,283 15,454 15,691 15,312 14,453
Residential mortgage loans 15,435 17,091 17,467 15,596 13,971
Specialized lending 7,670 6,089 5,240 3,606 2,744
Other acquired loans 123 ————
Total loans and leases held for investment (excluding
covered loans) 95,637 97,245 90,907 82,911 74,394
Covered loans 8,019 ————
Total loans and leases held for investment 103,656 97,245 90,907 82,911 74,394
Total loans held for sale 2,551 1,424 779 680 629
Total loans and leases $106,207 $98,669 $91,686 $83,591 $75,023
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