Operating Segments

9 Months Ended

Sep. 30, 2012

Operating Segments

Operating Segments

NOTE 17. Operating Segments

BB&T's operations are divided into six reportable business segments: Community Banking, Residential Mortgage Banking, Dealer Financial Services, Specialized Lending, Insurance Services and Financial Services.These operating segments have been identified based on BB&T's organizational structure. The segments require unique technology and marketing strategies and offer different products and services. While BB&T is managed as an integrated organization, individual executive managers are held accountable for the operations of these business segments.

BB&T emphasizes revenue growth by focusing on client service, sales effectiveness and relationship management. The segment results contained herein are presented based on internal management accounting policies that were designed to support these strategies. Unlike financial accounting, there is no comprehensive authoritative body of guidance for management accounting equivalent to GAAP. The performance of the segments is not comparable with BB&T's consolidated results or with similar information presented by any other financial institution. Additionally, because of the interrelationships of the various segments, the information presented is not indicative of how the segments would perform if they operated as independent entities.

Allocation methodologies are subject to periodic adjustment as the internal management accounting system is revised and business or product lines within the segments change. Also, because the development and application of these methodologies is a dynamic process, the financial results presented may be periodically revised.

The following tables disclose selected financial information with respect to BB&T's reportable business segments for the periods indicated:
BB&T Corporation
Reportable Segments
Three Months Ended September 30, 2012 and 2011
		Community				Residential				Dealer				Specialized
		Banking				Mortgage Banking				Financial Services				Lending
		2012		2011		2012		2011		2012		2011		2012		2011
		(Dollars in millions)
Net interest income (expense)		$	526	$	486	$	286	$	255	$	213	$	217	$	181	$	164
Net intersegment interest income (expense)			325		405		(194)		(182)		(53)		(67)		(38)		(45)
Segment net interest income			851		891		92		73		160		150		143		119
Allocated provision for loan and lease losses			92		142		23		56		43		24		65		26
Noninterest income			281		284		190		100		1		1		58		53
Intersegment net referral fees (expense)			48		31		―		1		―		―		―		―
Noninterest expense			428		549		112		78		24		22		66		61
Amortization of intangibles			11		11		―		―		1		―		1		1
Allocated corporate expenses			256		224		14		12		8		9		20		18
Income (loss) before income taxes			393		280		133		28		85		96		49		66
Provision (benefit) for income taxes			143		102		50		11		32		36		6		12
Segment net income (loss)		$	250	$	178	$	83	$	17	$	53	$	60	$	43	$	54
Identifiable segment assets (period end)		$	61,748	$	61,008	$	28,615	$	23,270	$	10,316	$	9,803	$	18,650	$	16,089
										Other, Treasury				Total BB&T
		Insurance Services				Financial Services				and Corporate (1)				Corporation
		2012		2011		2012		2011		2012		2011		2012		2011
		(Dollars in millions)
Net interest income (expense)		$	1	$	1	$	30	$	27	$	246	$	266	$	1,483	$	1,416
Net intersegment interest income (expense)			1		1		84		71		(125)		(183)		―		―
Segment net interest income			2		2		114		98		121		83		1,483		1,416
Allocated provision for loan and lease losses			―		―		12		1		9		1		244		250
Noninterest income			334		239		183		172		(84)		(159)		963		690
Intersegment net referral fees (expense)			―		―		7		6		(55)		(38)		―		―
Noninterest expense			272		198		152		143		444		342		1,498		1,393
Amortization of intangibles			18		10		―		―		―		2		31		24
Allocated corporate expenses			20		17		26		20		(344)		(300)		―		―
Income (loss) before income taxes			26		16		114		112		(127)		(159)		673		439
Provision (benefit) for income taxes			10		6		43		42		(107)		(141)		177		68
Segment net income (loss)		$	16	$	10	$	71	$	70	$	(20)	$	(18)	$	496	$	371
Identifiable segment assets (period end)		$	3,090	$	2,133	$	8,991	$	6,561	$	50,611	$	48,813	$	182,021	$	167,677
(1)	Includes financial data from subsidiaries below the quantitative and qualitative thresholds requiring disclosure.

BB&T Corporation
Reportable Segments
Nine Months Ended September 30, 2012 and 2011
		Community				Residential				Dealer				Specialized
		Banking				Mortgage Banking				Financial Services				Lending
		2012		2011		2012		2011		2012		2011		2012		2011
			(Dollars in millions)
Net interest income (expense)		$	1,549	$	1,438	$	850	$	753	$	633	$	639	$	522	$	469
Net intersegment interest income (expense)			1,022		1,254		(578)		(547)		(166)		(208)		(119)		(128)
Segment net interest income			2,571		2,692		272		206		467		431		403		341
Allocated provision for loan and lease losses			537		471		39		281		97		83		116		48
Noninterest income			829		775		547		238		5		5		163		154
Intersegment net referral fees (expense)			130		91		(1)		―		―		―		―		―
Noninterest expense			1,363		1,613		289		210		74		67		187		175
Amortization of intangibles			30		36		―		―		1		1		4		4
Allocated corporate expenses			768		674		41		36		27		28		58		54
Income (loss) before income taxes			832		764		449		(83)		273		257		201		214
Provision (benefit) for income taxes			300		278		169		(31)		103		97		38		43
Segment net income (loss)		$	532	$	486	$	280	$	(52)	$	170	$	160	$	163	$	171
Identifiable segment assets (period end)		$	61,748	$	61,008	$	28,615	$	23,270	$	10,316	$	9,803	$	18,650	$	16,089
										Other, Treasury				Total BB&T
		Insurance Services				Financial Services				and Corporate (1)				Corporation
		2012		2011		2012		2011		2012		2011		2012		2011
		(Dollars in millions)
Net interest income (expense)		$	2	$	2	$	87	$	78	$	738	$	676	$	4,381	$	4,055
Net intersegment interest income (expense)			2		3		246		187		(407)		(561)		―		―
Segment net interest income			4		5		333		265		331		115		4,381		4,055
Allocated provision for loan and lease losses			―		―		18		(10)		(2)		45		805		918
Noninterest income			997		785		530		511		(271)		(277)		2,800		2,191
Intersegment net referral fees (expense)			―		―		19		14		(148)		(105)		―		―
Noninterest expense			744		599		478		431		1,123		1,014		4,258		4,109
Amortization of intangibles			45		31		2		2		―		1		82		75
Allocated corporate expenses			59		51		71		56		(1,024)		(899)		―		―
Income (loss) before income taxes			153		109		313		311		(185)		(428)		2,036		1,144
Provision (benefit) for income taxes			48		33		117		117		(218)		(325)		557		212
Segment net income (loss)		$	105	$	76	$	196	$	194	$	33	$	(103)	$	1,479	$	932
Identifiable segment assets (period end)		$	3,090	$	2,133	$	8,991	$	6,561	$	50,611	$	48,813	$	182,021	$	167,677
(1)	Includes financial data from subsidiaries below the quantitative and qualitative thresholds requiring disclosure.