BB&T 2015 Annual Report Download - page 111

TableofContents

The following table summarizes the purchase price allocations for certain bank and branch acquisitions. Accordingly, the assets acquired and liabilities
assumed are presented at their estimated fair values. In many cases, the determination of these fair values required management to make estimates about
discount rates, future expected cash flows, market conditions and other future events that are highly subjective in nature and subject to change. The fair value
estimates for the current-year acquisitions are considered preliminary and are subject to change for up to one year after the closing date of the acquisition as
additional information becomes available.









Period of acquisition Q2 2015 Q1 2015 Q2 2014
Assets acquired:
Cash, due from banks and federal funds sold $ 135 $ 14 $ 6
Securities 348 ― ―
Loans 1,198 61 112
Goodwill 234 90 30
CDI 17 26 20
Other assets 94 47 15
Total assets acquired 2,026 238 183
Liabilities assumed:
Deposits 1,555 1,907 1,228
Debt 73 ― ―
Other liabilities 3 ― ―
Total liabilities assumed 1,631 1,907 1,228
Consideration paid (received) $ 395 $ (1,669) $ (1,045)
Cash paid (received) $ 73 $ (1,669) $ (1,045)
Fair value of common stock issued 322 ― ―
The acquisition of The Bank of Kentucky provided 32 additional retail branches. The UPB of loans acquired from The Bank of Kentucky was $1.3 billion,
and immaterial amounts of the intangible assets recognized are deductible for income tax purposes.
BB&T has reached an agreement to acquire National Penn Bancshares, Inc., a Pennsylvania corporation, which is currently expected to occur during 2016.

During the second quarter of 2015, BB&T purchased additional ownership interest in AmRisc, LP from the noncontrolling owners for cash and ownership of
American Coastal. Since BB&T held a controlling interest in AmRisc, LP prior to this transaction, the total consideration less the establishment of a deferred
tax asset was recognized as a charge to shareholders’ equity. BB&T will continue to consolidate AmRisc, LP and recognize a noncontrolling interest for the
remaining interests held by the noncontrolling owners. The transfer of the ownership of American Coastal was accounted for as a sale, and the resulting pre-
tax loss is included in other income in the Consolidated Statements of Income. The following table summarizes these transactions:
 

Fair value of American Coastal $ 216 Fair value of American Coastal $ 216
Cash paid 146 Net assets sold (193)
Total consideration 362 Allocated goodwill (49)
Deferred tax asset recognized (140) Pre-tax loss on sale (26)
Income tax expense (8)
Net charge to shareholders' equity $ 222 After-tax net loss on sale $ (34)
100
Source: BB&T CORP, 10-K, February 25, 2016 Powered by Morningstar® Document Research℠
The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,
except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.