BB&T 2008 Annual Report Download - page 138

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BB&T CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Residential Mortgage Banking
The Residential Mortgage Banking segment retains and services mortgage loans originated by the Banking
Network as well as those purchased from various correspondent originators. Mortgage loan products include
fixed- and adjustable-rate government and conventional loans for the purpose of constructing, purchasing or
refinancing residential properties. Substantially all of the properties are owner occupied. BB&T generally retains
the servicing rights to all loans sold. The Residential Mortgage Banking segment earns interest on loans held in
the warehouse and portfolio, fee income from the origination and servicing of mortgage loans and recognizes gains
or losses from the sale of mortgage loans. The Banking Network receives an intersegment referral fee for the
origination of loans and servicing rights, with a portion of the corresponding charge incurred by the Residential
Mortgage Banking segment and the remaining charge incurred in the corporate office, which is reflected as part
of Parent/Reconciling Items in the accompanying tables. Amortization and depreciation expense that has been
allocated to the segment was not material for any of the years presented.
Sales Finance
BB&T’s Sales Finance segment primarily originates loans to consumers for the purchase of automobiles.
Such loans are originated on an indirect basis through approved franchised and independent automobile dealers
throughout the BB&T market area. Sales Finance also originates loans for the purchase of boats and recreational
vehicles originated through dealers in BB&T’s market area. In addition, Sales Finance also provides financing to
dealers for their inventories. The Banking Network receives an intersegment referral fee for servicing the loans
originated by the Sales Finance segment with the corresponding charge remaining in the Sales Finance segment.
Amortization and depreciation expense that has been allocated to the segment was not material for any of the
years presented.
Specialized Lending
BB&T’s Specialized Lending segment consists of six business units that provide specialty finance
alternatives to consumers and businesses including: dealer-based financing of equipment for both small
businesses and consumers, equipment leasing, direct consumer finance, insurance premium finance, indirect
sub-prime automobile finance, and full-service commercial mortgage banking. Bank clients as well as nonbank
clients within and outside BB&T’s primary geographic market area are served by these companies. The Banking
Network receives credit for referrals to these companies with the corresponding charge retained in the corporate
office, which is reflected as part of Parent/Reconciling Items in the accompanying tables. Amortization and
depreciation expense that has been allocated to the segment totaled $28 million, $23 million and $17 million for
2008, 2007 and 2006, respectively.
Insurance Services
BB&T operates the 6th largest insurance agency/brokerage network in the nation. BB&T Insurance Services
provides property and casualty, life and health insurance to businesses and individuals. It also provides small
business and corporate products, such as workers compensation and professional liability, as well as surety
coverage and title insurance. In addition, the Insurance Services segment also underwrites a limited amount of
property and casualty coverage. The Banking Network receives credit for insurance commissions on referred
accounts, with the corresponding charge retained in the corporate office, which is reflected as part of Parent/
Reconciling Items in the accompanying tables. Amortization and depreciation expense that has been allocated to
the segment totaled $19 million, $13 million and $13 million for 2008, 2007 and 2006, respectively.
Financial Services
BB&T’s Financial Services segment provides personal trust administration, estate planning, investment
counseling, wealth management, asset management, employee benefits services, corporate banking and corporate
trust services to individuals, corporations, institutions, foundations and government entities. BB&T’s Financial
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