BB&T 2014 Annual Report Download - page 52

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Table of Contents
The following table provides information regarding the composition of the securities portfolio for the years presented:



  

AFS securities (at fair value):
U.S. Treasury $ 1,231 $ 595 $ 281
GSE ― ― 9
MBS issued by GSE 16,154 17,929 20,930
States and political subdivisions 1,974 1,851 2,011
Non-agency MBS 264 291 312
Other 41 45 3
Acquired from FDIC 1,243 1,393 1,591
Total AFS securities 20,907 22,104 25,137
HTM securities (at amortized cost):
U.S. Treasury 1,096 392 ―
GSE 5,394 5,603 3,808
MBS issued by GSE 13,120 11,636 9,273
States and political subdivisions 22 33 34
Other 608 437 479
Total HTM securities 20,240 18,101 13,594
Total securities $ 41,147 $ 40,205 $ 38,731
The securities portfolio totaled $41.1 billion at December 31, 2014, an increase of $942 million, or 2.3%, over the prior year. The increase was driven by
higher HTM portfolio balances in response to new regulatory requirements related to liquidity. As of December 31, 2014, approximately 14.0% of the
securities portfolio was variable rate, compared to 14.7% as of December 31, 2013. The effective duration of the securities portfolio was 3.9 years at
December 31, 2014, compared to 5.5 years at the end of 2013. The duration of the securities portfolio excludes equity securities, auction rate securities, and
certain non-agency MBS acquired from the FDIC.
MBS issued by GSEs were 71.1% of the total securities portfolio at year-end 2014, compared to 73.5% as of prior year end. As of December 31, 2014, the AFS
securities portfolio also includes $1.2 billion of securities that were acquired from the FDIC as part of the Colonial acquisition. Effective October 1, 2014,
securities subject to the commercial loss sharing agreement with the FDIC related to the Colonial acquisition were no longer subject to loss sharing; however,
any gains on the sale of these securities through September 30, 2017 would be shared with the FDIC. Since these securities are in a significant unrealized gain
position, they are effectively covered as any declines in the unrealized gains of the securities down to a contractually specified amount would reduce the
liability to the FDIC at the applicable percentage. Securities acquired from the FDIC consisted of $931 million of non-agency MBS and $312 million of
municipal securities as of December 31, 2014.
During 2014, securities totaling $1.3 billion were sold for a net realized gain of $3 million. During 2013, $2.2 billion of securities were sold that produced a
net realized gain of $51 million. During 2012, $306 million of securities were sold for a net realized loss of $3 million. In addition, BB&T recognized $6
million in OTTI charges for 2014 and $9 million in OTTI charges for 2012.
Refer to Note 3 “Securities” in the “Notes to Consolidated Financial Statements” herein for additional disclosures related to the evaluation of securities for
OTTI.
51
Source: BB&T CORP, 10-K, February 25, 2015 Powered by Morningstar® Document Research℠
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