BB&T 2013 Annual Report Download - page 145

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145
Financial Services includes BB&T Securities, 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. BB&T Securities 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.
Financial Services includes 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 and Corporate in the accompanying tables. Also captured within the net intersegment interest income for Financial
Services is the NIM for the loans and deposits assigned to the Wealth Management Division that are housed in the
Community Bank.
Other, Treasury and Corporate
Other, Treasury and 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, which is responsible for the management of
the securities portfolios, overall balance sheet funding and liquidity, and overall management of interest rate risk; the
corporate support functions that have not been allocated to the business segments; merger-related charges or credits that are
incurred as part of the 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).
The substantial majority of the loan portfolio acquired in the Colonial acquisition is covered by loss sharing agreements with
the FDIC and is managed outside of the Community Banking segment. The assets and related interest income from this loan
portfolio have an expected finite business life and are therefore included in the Other, Treasury and Corporate segment.
Results for BankAtlantic were included in the Other, Treasury and Corporate segment until the system conversion in October
2012. Historically, performance results of bank acquisitions prior to system conversion are reported in this segment and on a
post-conversion date are reported in the Community Banking segment.
Segment Asset Transfer
During January 2014, approximately $8.3 billion of home equity loans and lines were transferred from Community Banking
to Residential Mortgage Banking based on a change in how these loans will be managed as a result of new qualified
mortgage regulations. The following tables disclose selected financial information with respect to BB&T's reportable
business segments before the loan transfer and on a pro-forma basis subsequent to the loan transfer.