BB&T 2012 Annual Report Download - page 160

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Community Banking
Community Banking serves individual and business clients by offering a variety of loan and deposit products and other
financial services. Community Banking is primarily responsible for serving client relationships and, therefore, is credited
with certain revenue from the Residential Mortgage Banking, Financial Services, Insurance Services, Specialized Lending,
and other segments, which is reflected in net referral fees.
Residential Mortgage Banking
Residential Mortgage Banking retains and services mortgage loans originated by Community Banking 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 loans sold. Residential Mortgage Banking
earns interest on loans held in the warehouse and portfolio, earns fee income from the origination and servicing of mortgage
loans and recognizes gains or losses from the sale of mortgage loans.
Dealer Financial Services
Dealer Financial Services originates loans to consumers on a prime and nonprime basis 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 and nationally through Regional Acceptance Corporation. This segment 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 Dealer Financial Services and
Community Banking.
Specialized Lending
BB&T's Specialized Lending consists of eight LOBs that provide specialty finance products to consumers and businesses.
These LOBs are a combination of LOBs and operating subsidiaries of either the Company or Branch Bank. The LOBs
include Commercial Finance, which contains commercial finance and mortgage warehouse lending, and Governmental
Finance, which 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
BB&T FSB (merged into Branch Bank on January 1, 2013), 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 LOBs 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, a full-
service commercial mortgage banking lender providing loans on a national basis. Branch 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 LOBs 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 eighth largest in the world. Insurance Services provides property and
casualty, life and health insurance to businesses and individuals. It also provides small business and corporate services, such
as workers compensation and professional liability, as well as surety coverage and title insurance. In addition, Insurance
Services 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 a full-service brokerage and investment banking firm that 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. Financial