BB&T 2013 Annual Report Download - page 144

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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 LOBs and subsidiaries that provide specialty finance products to consumers and
businesses. The LOBs include Commercial Finance and Governmental Finance. Commercial Finance structures and manages
asset-based working capital financing, supply chain financing, export-import finance, accounts receivable management and
credit enhancement. Commercial Finance also contains the Mortgage Warehouse Lending business, which provides short-
term lending solutions to finance first-lien residential mortgage loans held for sale by independent mortgage companies.
Governmental Finance provides tax-exempt financing to meet the capital project needs of local governments. Operating
subsidiaries include BB&T Equipment Finance, which provides equipment leasing largely within BB&T’s banking footprint;
Sheffield Financial, a dealer-based financer of equipment for both small businesses and consumers; 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. Lendmark Financial Services, a direct
consumer finance lending company, was sold during the fourth quarter of 2013, resulting in the sale of $500 million of loans
and the transfer of $230 million of loans to Residential Mortgage Banking. Branch Bank clients as well as nonbank clients
within and outside BB&T’s primary geographic market area are served by these LOBs. The Community Banking segment
receives credit for referrals to these LOBs with the corresponding charge retained as part of Other, Treasury and Corporate in
the accompanying tables.
Insurance Services
BB&T's insurance agency / brokerage network is the sixth largest in the world. Insurance Services provides property and
casualty, employee benefits and life 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 and Corporate in the accompanying tables.
Financial Services
Financial Services provides personal trust administration, estate planning, investment counseling, wealth management, asset
management, corporate retirement services, corporate banking and corporate trust services. 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.