Operating Segments

6 Months Ended

Jun. 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 June 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)		$	517	$	483	$	285	$	244	$	210	$	212	$	175	$	155
Net intersegment interest income (expense)			339		419		(193)		(182)		(54)		(69)		(40)		(41)
Segment net interest income			856		902		92		62		156		143		135		114
Allocated provision for loan and lease losses			190		125		38		146		27		26		24		18
Noninterest income			280		298		162		63		2		2		52		50
Intersegment net referral fees (expense)			43		28		―		(1)		―		―		―		―
Noninterest expense			447		526		92		69		25		23		58		59
Amortization of intangibles			10		12		―		―		―		1		2		2
Allocated corporate expenses			255		224		13		12		10		10		19		17
Income (loss) before income taxes			277		341		111		(103)		96		85		84		68
Provision (benefit) for income taxes			100		125		42		(39)		36		32		19		13
Segment net income (loss)		$	177	$	216	$	69	$	(64)	$	60	$	53	$	65	$	55
Identifiable segment assets (period end)		$	61,081	$	61,410	$	27,318	$	21,625	$	10,303	$	9,681	$	18,140	$	15,168
										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)		$	―	$	―	$	30	$	28	$	245	$	232	$	1,462	$	1,354
Net intersegment interest income (expense)			―		1		82		60		(134)		(188)		―		―
Segment net interest income			―		1		112		88		111		44		1,462		1,354
Allocated provision for loan and lease losses			―		―		(8)		(2)		2		15		273		328
Noninterest income			393		297		169		173		(92)		(96)		966		787
Intersegment net referral fees (expense)			―		―		6		3		(49)		(30)		―		―
Noninterest expense			260		206		173		145		342		342		1,397		1,370
Amortization of intangibles			17		11		1		1		(1)		(2)		29		25
Allocated corporate expenses			19		17		22		18		(338)		(298)		―		―
Income (loss) before income taxes			97		64		99		102		(35)		(139)		729		418
Provision (benefit) for income taxes			31		18		36		39		(73)		(97)		191		91
Segment net income (loss)		$	66	$	46	$	63	$	63	$	38	$	(42)	$	538	$	327
Identifiable segment assets (period end)		$	3,299	$	2,341	$	8,216	$	6,233	$	50,172	$	42,852	$	178,529	$	159,310
(1)	Includes financial data from subsidiaries below the quantitative and qualitative thresholds requiring disclosure.

BB&T Corporation
Reportable Segments
Six Months Ended June 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)		$	1,023	$	952	$	564	$	498	$	420	$	422	$	341	$	305
Net intersegment interest income (expense)			697		849		(384)		(365)		(113)		(141)		(81)		(83)
Segment net interest income			1,720		1,801		180		133		307		281		260		222
Allocated provision for loan and lease losses			445		329		16		225		54		59		51		22
Noninterest income			548		491		357		138		4		4		105		101
Intersegment net referral fees (expense)			82		60		(1)		(1)		―		―		―		―
Noninterest expense			935		1,064		177		132		50		45		121		114
Amortization of intangibles			19		25		―		―		―		1		3		3
Allocated corporate expenses			512		450		27		24		19		19		38		36
Income (loss) before income taxes			439		484		316		(111)		188		161		152		148
Provision (benefit) for income taxes			157		176		119		(42)		71		61		32		31
Segment net income (loss)		$	282	$	308	$	197	$	(69)	$	117	$	100	$	120	$	117
Identifiable segment assets (period end)		$	61,081	$	61,410	$	27,318	$	21,625	$	10,303	$	9,681	$	18,140	$	15,168
										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	$	57	$	51	$	492	$	410	$	2,898	$	2,639
Net intersegment interest income (expense)			1		2		162		116		(282)		(378)		―		―
Segment net interest income			2		3		219		167		210		32		2,898		2,639
Allocated provision for loan and lease losses			―		―		6		(11)		(11)		44		561		668
Noninterest income			663		546		347		339		(187)		(118)		1,837		1,501
Intersegment net referral fees (expense)			―		―		12		8		(93)		(67)		―		―
Noninterest expense			472		401		326		288		679		672		2,760		2,716
Amortization of intangibles			27		21		2		2		―		(1)		51		51
Allocated corporate expenses			39		34		45		36		(680)		(599)		―		―
Income (loss) before income taxes			127		93		199		199		(58)		(269)		1,363		705
Provision (benefit) for income taxes			38		27		74		75		(111)		(184)		380		144
Segment net income (loss)		$	89	$	66	$	125	$	124	$	53	$	(85)	$	983	$	561
Identifiable segment assets (period end)		$	3,299	$	2,341	$	8,216	$	6,233	$	50,172	$	42,852	$	178,529	$	159,310
(1)	Includes financial data from subsidiaries below the quantitative and qualitative thresholds requiring disclosure.