BB&T 2012 Annual Report Download - page 129

Download and view the complete annual report

Please find page 129 of the 2012 BB&T annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 176

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176

107
During 2012, BB&T acquired the life and property and casualty insurance divisions of Crump Group Inc. The changes in
Insurance Services goodwill and other identifiable intangibles were primarily the result of this acquisition, although the final
purchase accounting has not been completed.
During 2012, BB&T completed the acquisition of Fort Lauderdale, Florida-based BankAtlantic. BB&T acquired
approximately $1.7 billion in loans and assumed approximately $3.5 billion in deposits. BB&T also assumed the seller’ s
obligations with respect to outstanding trust preferred securities, with an aggregate principal balance of $285 million. In
exchange for the assumption of these liabilities, BB&T received a 95% preferred interest in a newly established LLC, which
holds a pool of loans and other net assets. BankAtlantic Bancorp also provided BB&T with an incremental $35 million
guarantee to further assure BB&T’ s recovery of the $285 million. The LLC’ s assets will be monetized over time and once
BB&T has recovered $285 million in preference amount from the LLC plus a defined return, BB&T’ s interest in the LLC
will terminate. The net purchase price received, excluding cash held by BankAtlantic, was $45 million, which consisted of
net liabilities assumed less a deposit premium of $316 million. The changes in Community Banking goodwill and CDI were
primarily the result of this acquisition, although the final purchase accounting has not been completed.
At December 31, 2012, the weighted-average remaining life of CDI and other identifiable intangibles was 7.9 years and 15.9
years, respectively. Estimated amortization expense of identifiable intangible assets for each for the next five years total
$105 million, $89 million, $75 million, $65 million and $56 million.
NOTE 7. Loan Servicing
Residential Mortgage Banking Activities
The following tables summarize residential mortgage banking activities for the periods presented:
December 31,
2012 2011
(Dollars in millions)
Mortgage loans managed or securitized (1) $ 29,882 $ 26,559
Less: Loans securitized and transferred to securities available for sale 4 4
LHFS 3,547 3,394
Covered mortgage loans 1,040 1,264
Mortgage loans sold with recourse 1,019 1,316
Mortgage loans held for investment $ 24,272 $ 20,581
Mortgage loans on nonaccrual status $ 269 $ 308
Mortgage loans 90 days or more past due and still accruing interest (2) 92 104
Mortgage loans net charge-offs - year to date 133 264
Unpaid principal balance of residential mortgage loans servicing portfolio 101,270 91,640
Unpaid principal balance of residential mortgage loans serviced for others 73,769 67,066
Maximum recourse exposure from mortgage loans sold with recourse liability 446 522
Recorded reserves related to recourse exposure 12 6
Repurchase reserves for mortgage loan sales to GSEs 59 29
(1) Balances exclude loans serviced for others with no other continuing involvement.
(2) Includes amounts related to residential mortgage LHFS and excludes amounts related to government guaranteed loans
and covered mortgage loans. Refer to the Loans and Leases Note for additional disclosures related to past due
government guaranteed loans.