BB&T 2010 Annual Report Download - page 73

Download and view the complete annual report

Please find page 73 of the 2010 BB&T annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 181

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181

The ability to generate significant amounts of noninterest revenue in the future will be important to the
continued financial success of BB&T. Through its subsidiaries, BB&T will continue to focus on asset management,
mortgage banking, trust, insurance, investment banking and brokerage services, as well as other fee-producing
products and services. BB&T plans to continue to pursue acquisitions of additional financial services companies,
including insurance agencies and other fee income producing businesses as a means of expanding fee-based
revenues. Also, among BB&T’s principal strategies following the acquisition of a financial institution is the cross-
sell of noninterest income generating products and services to the acquired institution’s client base. Management
expects that noninterest income excluding securities gains will be relatively flat in 2011 as a result of revenue
challenges due to regulatory changes that are currently in effect or proposed to take effect during 2011.
Management has estimated that noninterest revenue sources at risk as a result of various regulatory initiatives,
including the Durbin Amendment and overdraft policy changes are in the range of $450 million on an annual run
rate basis beginning in 2012. To date, management has implemented or identified changes in products and fees to
offset approximately half of the potential lost revenue and is continuing to evaluate the Company’s product
offerings in an effort to eliminate, as much as possible, the negative financial impacts of these regulatory changes.
Noninterest Expense
Noninterest expense totaled $5.7 billion in 2010, $4.9 billion in 2009 and $3.9 billion in 2008. Noninterest
expense includes certain merger-related and restructuring charges recorded during the years 2010, 2009 and 2008
as noted in Table 21 below. These amounts totaled $69 million in 2010, $38 million in 2009 and $15 million in 2008.
Additional disclosures related to these merger-related and restructuring charges are presented in “Merger-
Related and Restructuring Charges.” The table below shows the components of noninterest expense and the
discussion that follows explains the composition of certain categories and the factors that caused them to change
in 2010 and 2009.
73