BB&T 2015 Annual Report Download - page 157

TableofContents
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. 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.
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 consolidated SBIC private equity and mezzanine investment funds that invest in privately owned middle-market
operating companies to facilitate growth or ownership transition. 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. Performance results of bank acquisitions prior to system conversion
are typically 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 are managed as a result of qualified mortgage regulations. The following tables have been retrospectively
adjusted for the loan transfer.
Segment Realignment
During the first quarter of 2016, the asset-based lending group within the Specialized Lending segment was moved to Community Banking, and the supply-
chain lending responsibility was moved from the Specialized Lending segment to the Financial Services segment. The following tables present segment
results prior to the realignment and subsequent to the realignment.
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Source: BB&T CORP, 10-K, February 25, 2016 Powered by Morningstar® Document Research℠
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