BB&T 2014 Annual Report Download - page 147

Table of Contents
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.
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 loan portfolio acquired in the Colonial acquisition 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. The investment balances
and results related to affordable housing investments are also included in this 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 table has been
retrospectively adjusted for the loan transfer.
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Source: BB&T CORP, 10-K, February 25, 2015 Powered by Morningstar® Document Research℠
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