BB&T 2015 Annual Report Download - page 148

TableofContents
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 
   
    

Balance at January 1, 2014 $ 861 $ 1,047 $ (11) $ 291
Total realized and unrealized gains (losses):
Included in earnings:
Interest income 33 ― ― ―
Mortgage banking income ― (221) 94 ―
Other noninterest income ― ― (2) 27
Included in unrealized net holding gains (losses) in OCI (38) ― ― ―
Purchases ― ― ― 67
Issuances ― 141 75 ―
Sales ― ― ― (50)
Settlements (111) (123) (139) (7)
Transfers into Level 3 ― ― ― 1
Balance at December 31, 2014 $ 745 $ 844 $ 17 $ 329
Change in unrealized gains (losses) included in earnings for the period,
attributable to assets and liabilities still held at December 31, 2014 $ 33 $ (221) $ 17 $ 15
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 
   
    

Balance at January 1, 2013 $ 994 $ 627 $ 54 $ 323
Total realized and unrealized gains (losses):
Included in earnings:
Interest income 37 ― ― ―
Mortgage banking income ― 229 21 ―
Other noninterest income ― ― ― 33
Included in unrealized holding gains (losses) in OCI (14) ― ― ―
Purchases ― ― ― 58
Issuances ― 336 65 ―
Sales ― ― ― (59)
Settlements (156) (145) (151) (64)
Balance at December 31, 2013 $ 861 $ 1,047 $ (11) $ 291
Change in unrealized gains (losses) included in earnings for the period,
attributable to assets and liabilities still held at December 31, 2013 $ 37 $ 229 $ (11) $ 22
BB&T’s policy is to recognize transfers between levels as of the end of a reporting period. Transfers in and out of Level 3 are shown in the preceding tables.
There were no transfers between Level 1 and Level 2 during 2015, 2014 or 2013.
BB&T’s private equity and similar investments are primarily in SBIC qualified funds, which focus on equity and subordinated debt investments in privately-
held middle market companies. These investments generally are not redeemable and distributions are received as the underlying assets of the funds liquidate.
The timing of distributions, which are expected to occur on various dates through 2026, is uncertain and dependent on various events such as
recapitalizations, refinance transactions and ownership changes, among others. Excluding the investment of future funds, BB&T estimates these investments
have a weighted average remaining life of approximately two years; however, the timing and amount of distributions may vary significantly. As of December
31, 2015, restrictions on the ability to sell the investments include, but are not limited to, consent of a majority member or general partner approval for
transfer of ownership. BB&T’s investments are spread over numerous privately-held middle market companies, and thus the sensitivity to a change in fair
value for any single investment is limited. The significant unobservable inputs for these investments are EBITDA multiples that ranged from 5x to 12x, with
a weighted average of 8x, at December 31, 2015.
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Source: BB&T CORP, 10-K, February 25, 2016 Powered by Morningstar® Document Research℠
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