BB&T 2013 Annual Report Download - page 43
Download and view the complete annual report
Please find page 43 of the 2013 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.-
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
 |
 |
43
2013 compared to 2012
Interest income for 2013 on covered loans and securities acquired in the Colonial acquisition decreased $349 million
compared to 2012, primarily due to lower average covered loan balances. The yield on covered loans for 2013 was 16.93%
compared to 18.91% in 2012. At December 31, 2013, the accretable yield balance on covered loans was $538 million.
Accretable yield represents the excess of expected future cash flows above the current net carrying amount of loans and will
be recognized in income over the remaining life of the covered loans.
During 2013, BB&T increased the accretable yield balance on covered loans by $107 million, compared to a $72 million
reduction in 2012, primarily due to improved loss results in 2013 and changes in the expected lives of the underlying loans in
2012. These adjustments are recognized on a prospective basis over the remaining lives of the loan pools.
The provision for covered loans was $5 million in 2013, a decrease of $8 million compared to 2012. This decrease resulted
from the quarterly reassessment process.
FDIC loss share income, net, was $25 million better than 2012, primarily due to securities duration adjustments that
increased the expected lives of securities in 2013, compared to duration adjustments that shortened the lives in 2012.
2012 compared to 2011
Interest income for 2012 on covered loans and securities acquired in the Colonial acquisition decreased $284 million
compared to 2011, primarily due to lower average covered loan balances. The yield on covered loans for 2012 was 18.91%
compared to 19.15% in 2011. At December 31, 2012, the accretable yield balance on covered loans was $881 million.
Accretable yield represents the excess of expected future cash flows above the current net carrying amount of loans and will
be recognized in income over the remaining life of the covered loans.
During 2012, BB&T reduced the accretable yield balance on covered loans by $72 million primarily due to changes in the
expected lives of the underlying loans. During 2011, BB&T reclassified $379 million from the nonaccretable balance to
accretable yield on covered loans. This reclassification was primarily the result of increased cash flow estimates resulting
from improved loss expectations.
The provision for covered loans was $13 million in 2012, a decrease of $58 million compared to 2011. This decrease resulted
from the quarterly reassessment process.
FDIC loss share income, net was $29 million worse than 2011 primarily due to a lower offset to the provision for covered
loans.
FTE Net Interest Income and Rate / Volume Analysis
The following table sets forth the major components of net interest income and the related yields and rates for 2013, 2012 and
2011, as well as the variances between the periods caused by changes in interest rates versus changes in volumes. Changes
attributable to the mix of assets and liabilities have been allocated proportionally between the changes due to rate and the
changes due to volume.