BB&T 2015 Annual Report Download - page 152

TableofContents
The fair values of derivatives in a gain or loss position are presented on a gross basis in other assets or other liabilities, respectively, in the Consolidated
Balance Sheets. Cash collateral posted for derivatives in a loss position is reported as restricted cash. Derivatives with dealer counterparties at both the bank
and the parent company are governed by the terms of ISDA Master netting agreements and Credit Support Annexes. The ISDA Master agreements allow
counterparties to offset trades in a gain against trades in a loss to determine net exposure and allows for the right of setoff in the event of either a default or an
additional termination event. Credit Support Annexes govern the terms of daily collateral posting practices. Collateral practices mitigate the potential loss
impact to affected parties by requiring liquid collateral to be posted on a scheduled basis to secure the aggregate net unsecured exposure. In addition to
collateral, the right of setoff allows counterparties to offset net derivative values with a defaulting party against certain other contractual receivables from or
obligations due to the defaulting party in determining the net termination amount. No portion of the change in fair value of derivatives designated as hedges
has been excluded from effectiveness testing. The ineffective portion was immaterial for all periods presented.



  
  
      

Cash Flow Hedges:
Interest rate contracts $ (130) $ (172) $ 204 Total interest income $ ― $ ― $ ―
Total interest expense (83) (82) (77)
$ (83) $ (82) $ (77)

 
   

Fair Value Hedges:
Interest rate contracts Total interest income $ (20) $ (22) $ (21)
Total interest expense 279 233 141
$ 259 $ 211 $ 120
Not Designated as Hedges:
Client-related and other risk management:
Interest rate contracts Other income $ 27 $ 18 $ 26
Foreign exchange contracts Other income 21 16 11
Mortgage Banking:
Interest rate contracts Mortgage banking income 7 (16) (27)
MSRs:
Interest rate contracts Mortgage banking income 32 251 (197)
$ 87 $ 269 $ (187)
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Source: BB&T CORP, 10-K, February 25, 2016 Powered by Morningstar® Document Research℠
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