NU Online News Service, Jan. 26, 4:05 p.m.EST

BB&T Corp. reported its insurance brokerage divisioncontinued to grow in the fourth quarter, primarily on the strengthof acquisitions.

The Winston-Salem, N.C.-based bank reported Friday thatinsurance income in the fourth quarter rose more than 5 percent, or$13 million, to $260 million.

For the year, insurance income was up close to 13 percent, or$119 million, to $1.05 billion.

The company said the growth was primarily from growth inproperty and casualty fees and acquisitions.

Kelly S. King, BB&T's chairman and chief executive officer,said while the insurance segment's growth was primarily fromacquisitions, "it is growth and it takes work."

During the fourth quarter, BB&T Insurance Services expandedits southwest Florida operation with the acquisition of OswaldTrippe and Company of Fort Myers, Fla. That and the acquisition ofColonial Bank in August will expand the company's presence insouthwest Florida.

For the bank as a whole, net income dropped $113 million in thequarter to $194 million. This translated to earnings per share of27 cents compared to 51 cents for the same period in 2008.

For the year, net income stood at $877 million, or $1.24 ashare, down $652 million from the same period in 2008.

Mr. King noted that the company's earnings beat analyst'sestimates by 6 cents a share. He said that housing was the biggestproblem primarily in Florida, Atlanta and Washington, D.C.

He called the company's result solid, but remarked that there isa lot of uncertainty in the economy.

"Clearly things are improving and recession is clearly over,technically," said Mr. King.

He said the conversation in Washington over the economy "needsto slow down" and be less heated. There needs to be more smallbusiness lending, something BB&T is pushing by taking a secondlook at denied loans.

"If it is a loan we can make, we're going to make it," hesaid.

"I think we are finding the bottom," added Mr. King, saying heis extremely optimistic about the rest of the year "and not to letthe bumps of the next two or three quarters" rattle investors.