BB&T 2015 Annual Report Download - page 113

TableofContents
Certain investments in marketable debt securities and MBS issued by FNMA and FHLMC exceeded 10% of shareholders’ equity at December 31, 2015. The
FNMA investments had total amortized cost and fair value of $12.2 billion and $12.0 billion, respectively. The FHLMC investments had total amortized cost
and fair value of $5.8 billion and $5.7 billion, respectively.
The following table reflects changes in credit losses on securities with OTTI (excluding securities acquired from the FDIC) where a portion of the unrealized
loss was recognized in OCI:

  

Balance at beginning of period $ 64 $ 78 $ 98
Credit losses on securities without previous OTTI ― 6 ―
Credit losses on securities for which OTTI was previously recognized 4 ― ―
Reductions for securities sold/settled during the period (22) (17) (20)
Credit recoveries through yield (4) (3) ―
Balance at end of period $ 42 $ 64 $ 78
The amortized cost and estimated fair value of the securities portfolio by contractual maturity are shown in the following table. The expected life of MBS
may differ from contractual maturities because borrowers have the right to prepay the underlying mortgage loans with or without prepayment penalties.
 
   
    

Due in one year or less $ 265 $ 264 $ 1 $ 1
Due after one year through five years 1,661 1,667 2,097 2,101
Due after five years through ten years 971 992 4,062 3,998
Due after ten years 22,452 22,374 12,370 12,419
Total debt securities $ 25,349 $ 25,297 $ 18,530 $ 18,519
The following tables present the fair values and gross unrealized losses of investments based on the length of time that individual securities have been in a
continuous unrealized loss position:
  
     
      

AFS securities:
U.S. Treasury securities $ 1,211 $ 6 $ — $ — $ 1,211 $ 6
Agency MBS 12,052 199 5,576 240 17,628 439
States and political subdivisions 64 1 329 39 393 40
Total $ 13,327 $ 206 $ 5,905 $ 279 $ 19,232 $ 485
HTM securities:
GSE $ 2,307 $ 41 $ 1,743 $ 57 $ 4,050 $ 98
Agency MBS 3,992 21 124 1 4,116 22
Other securities 56 1 — — 56 1
Total $ 6,355 $ 63 $ 1,867 $ 58 $ 8,222 $ 121
102
Source: BB&T CORP, 10-K, February 25, 2016 Powered by Morningstar® Document Research℠
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