BB&T 2010 Annual Report Download - page 167

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, financing and servicing to dealers for
their inventories is provided through a joint relationship between Sales Finance and Community Banking.
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
Community Banking segment 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 $38 million, $37
million, and $28 million for 2010, 2009 and 2008, respectively.
Insurance Services
BB&T’s insurance agency / brokerage network is the 6th largest in the world. 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 Community Banking segment 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 $20 million, $21 million and $19 million for 2010, 2009 and 2008, 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
Services segment also offers clients investment alternatives, including discount brokerage services, equities,
fixed-rate and variable-rate annuities, mutual funds and governmental and municipal bonds through BB&T
Investment Services, Inc., a subsidiary of Branch Bank. The Financial Services segment includes Scott &
Stringfellow, LLC, a full-service brokerage and investment banking firm headquartered in Richmond, Virginia.
Scott & Stringfellow provides services in retail brokerage, equity and debt underwriting, investment advice,
corporate finance and equity research and facilitates the origination, trading and distribution of fixed-income
securities and equity products in both the public and private capital markets. Scott & Stringfellow also has a
public finance department that provides investment banking services, financial advisory services and municipal
bond financing to a variety of regional taxable and tax-exempt issuers. Scott & Stringfellow’s investment banking
and corporate and public finance areas conduct business as BB&T Capital Markets. The Financial Services
segment includes BB&T Capital Partners that is a group of BB&T-sponsored private equity and mezzanine
investment funds that invests in privately owned middle-market operating companies to facilitate growth or
ownership transition while leveraging the Community Banking network for referrals and other bank services.
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