BB&T 2009 Annual Report Download - page 44

(3) Excludes the effect of pay-fixed swaps hedging municipal securities.
(4) Trading securities and securities with no stated maturity include equity investments that totaled $864
million, certain municipal investments that totaled $16 million and trading securities that totaled $636
million.
(5) Includes securities available-for-sale and trading securities of $33.9 billion and $636 million, respectively.
The fully taxable equivalent (“FTE”) yield on the total securities portfolio was 4.30% for the year ended
December 31, 2009 compared to 5.05% for the prior year. The yield on mortgage-backed securities issued by
government-sponsored entities decreased from 4.94% to 4.14%, the FTE yield on state and municipal securities
decreased from 6.33% last year to 5.67% in the current year and the yield on U.S. government-sponsored entity
securities decreased from 4.86% in 2008 to 3.86% in 2009. The decrease in the annualized FTE yield on the
average securities portfolio was primarily the result of reinvesting the sales from the first quarter of 2009 into
shorter duration securities. Partially offsetting these declines, the FTE yield benefited from the addition of the
securities acquired in the Colonial transaction.
Loans and Leases
BB&T emphasizes commercial lending to small and medium-sized businesses, consumer lending, mortgage
lending and specialized lending with an overall goal of maximizing the profitability of the loan portfolio while
maintaining strong asset quality. The various categories of loan products offered by BB&T are discussed under
“Lending Activities” in the “Overview and Description of Business” section herein. BB&T is a full-service lender
with approximately one-half of its loan portfolio to businesses and one-half to individual consumers. BB&T’s loan
portfolio, excluding loans held for sale, increased $6.4 billion, or 6.6%, compared to year-end 2008. This increase
includes $8.0 billion in covered loans acquired as part of the Colonial transaction. All covered loans are covered by
one of the FDIC loss share agreements as further discussed in Note 2 to the consolidated financial statements.
Average total loans and leases for 2009 increased $7.0 billion, or 7.3%, compared to 2008. The growth in the
average loan portfolio included $3.2 billion of average loans as a result of the Colonial acquisition during 2009.
The following table presents BB&T’s average loans for the years ended December 31, 2009 and 2008,
segregated by major category:
Table 10
Composition of Average Loans and Leases
For The Year Ended December 31,
2009 2008
Balance % of total Balance % of total
(Dollars in millions)
Commercial loans and leases $ 50,074 48.9% $47,557 50.0%
Direct retail loans 14,730 14.4 15,580 16.4
Sales finance loans 6,392 6.3 6,216 6.5
Revolving credit loans 1,855 1.8 1,664 1.7
Mortgage loans 15,927 15.6 17,327 18.2
Specialized lending loans 7,141 7.0 5,509 5.8
Other acquired loans 52 0.1 ——
Total average loans and leases held for investment (excluding
covered loans) 96,171 94.1 93,853 98.6
Covered loans 3,144 3.1 ——
Total average loans and leases held for investment 99,315 97.2 93,853 98.6
Loans held for sale 2,831 2.8 1,342 1.4
Total average loans and leases $102,146 100.0% $95,195 100.0%
Average commercial loans and leases increased $2.5 billion, or 5.3%, in 2009 as compared to 2008. Overall, the
commercial loan and lease portfolio showed moderate growth during 2009. The mix of the commercial loan
portfolio has shifted somewhat, as commercial real estate lending has slowed due to a slower real estate market.
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