BB&T 2011 Annual Report Download - page 151

mortgage warehouse lending; and, Governmental Finance that is responsible for tax-exempt government finance.
Operating subsidiaries include BB&T Equipment Finance which provides equipment leasing largely within BB&T’s
banking footprint; Sheffield Financial, a division of FSB Financial, a dealer-based financer of equipment for both small
businesses and consumers; Lendmark Financial Services, a direct consumer finance lending company; Prime Rate
Premium Finance Corporation which includes AFCO and CAFO, insurance premium finance business units that provide
funding to businesses in the United States and Canada and to consumers in certain markets within BB&T’s banking
footprint; and Grandbridge Real Estate Capital, a full-service commercial mortgage banking lender providing loans on a
national basis. The commercial finance, mortgage warehouse lending and tax-exempt government finance LOBs were
previously reported within the Other segment and their move reflects their growth as individual LOBs over recent time
periods and their organizational reporting structure. Bank clients as well as nonbank clients within and outside BB&T’s
primary geographic market area are served by these eight LOBs. The Community Banking segment receives credit for
referrals to these business units with the corresponding charge retained as part of Other, Treasury & Corporate in the
accompanying tables.
Insurance Services
BB&T’s insurance agency / brokerage network is the 7th 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, Insurance Services also underwrites a limited amount of property and casualty coverage.
Community Banking and Financial Services receive credit for insurance commissions on referred accounts, with the
corresponding charge retained in the corporate office, which is reflected as part of Other, Treasury & Corporate in the
accompanying tables.
Financial Services
Financial Services 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. Financial Services 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. Financial Services 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. This 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. Financial Services also includes the Corporate Banking Division that originates and services large corporate
relationships, syndicated lending relationships and client derivatives. Community Banking receives an interoffice credit
for referral fees, with the corresponding charge reflected as part of Other, Treasury & Corporate in the accompanying
tables. Also captured within the net intersegment interest income for Financial Services is the net interest margin for the
loans and deposits assigned to the Wealth Management Division that are housed in the Community Bank.
Other, Treasury & Corporate
Other, Treasury & Corporate is the combination of the Other segment that represents operating entities that do not meet
the quantitative or qualitative thresholds for disclosure; BB&T’s Treasury function that is responsible for the management
of the securities portfolios, overall balance sheet funding and liquidity, and overall management of interest rate risk; and,
the corporate support functions that have not been allocated to the business segments, merger-related charges or credits
that are incurred as part of acquisition and conversion of acquired entities, nonrecurring charges that are considered to be
unusual in nature or infrequent and not reflective of the normal operations of the segments, and intercompany eliminations
including intersegment net referral fees and net intersegment interest income (expense).
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