Quarterly Performance Summary issued July 12, 2001

8-K 1 prtemp.htm BB&T THIRD QUARTER EARNINGS PRESS RELEASE Quarterly Performance Summary issued July 12, 2001

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form 8-K
Current Report

Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

October 11, 2001

Date of Report (Date of earliest event reported)

BB&T Corporation
(Exact name of registrant as specified in its charter)

Commission file number : 1-10853


North Carolina	56-0939887
(State of incorporation)	(I.R.S. Employer Identification No.)


200 West Second Street
Winston-Salem, North Carolina	27101
(Address of principal executive offices)	(Zip Code)

(336) 733-2000
(Registrant's telephone number, including area code)

This Form 8-K has 14 pages.

ITEM 5. OTHER EVENTS

The purpose of this Current Report on Form 8-K is to file BB&T Corporation's Quarterly Performance Summary for the third quarter of 2001.

EXHIBIT INDEX

Exhibit 99.1 Quarterly Performance Summary issued October 11, 2001

October 11, 2001

FOR IMMEDIATE RELEASE

Contacts:
ANALYSTS                                                                                                                    MEDIA
Tom A. Nicholson                               Scott E. Reed                                                        Bob Denham
Senior Vice President                        Sr. Exec. Vice President                                       Senior Vice President
Investor Relations                             Chief Financial Officer                                         Public Relations
(336) 733-3058                                  (336) 733-3088                                                     (336) 733-1002

BB&T’s 3rd quarter earnings up 14.8%

WINSTON-SALEM, N.C. -- BB&T Corporation (NYSE:BBT) reported today third quarter 2001 earnings totaling $283.5 million, or $.62 per diluted share, excluding $61.5 million in after-tax nonrecurring items associated with the recently-completed merger with F&M National Corporation of Winchester, Va., and systems conversion costs related to other mergers. Diluted earnings per share, excluding nonrecurring items, increased 14.8% in the third quarter of 2001 compared to the prior year, while recurring net income increased 14.2% compared to third quarter 2000 results.

BB&T’s third quarter 2001 results, excluding nonrecurring items, produced an annualized return on average assets of 1.62% compared to 1.58% in the third quarter of 2000. The annualized return on average shareholders’ equity generated by third quarter earnings, exclusive of nonrecurring items, was 19.05% in 2001 and 19.62% in 2000, while the return on average shareholders’ equity, excluding net unrealized gains or losses on securities available for sale, or realized equity, was 20.00% for the third quarter of 2001 and 18.80% for the third quarter last year.

Cash basis operating results, which exclude the effects of intangible assets and the related amortization expenses, also reflected double-digit gains compared to 2000. Recurring cash basis earnings totaled $300.6 million for the third quarter of 2001, or $.65 per diluted share, increases of 14.1% and 12.1%, respectively, compared to prior year results. Cash basis earnings for the current quarter generated an annualized return on average tangible assets of 1.73% and an annualized return on average tangible shareholders’ equity of 23.57%.

“I am pleased to announce solid third quarter results, especially in light of the current challenging economic environment,” said Chairman and Chief Executive Officer John A. Allison. “Our loan growth has slowed and our levels of nonperforming assets and credit losses have increased as a result of the economic slowdown. However, healthy growth of noninterest income and effective expense control have allowed us to achieve strong overall results.”

For the nine months ended Sept. 30, BB&T's net income was $812.4 million, or $1.77 per diluted share, excluding after-tax nonrecurring items totaling $116.7 million. These earnings reflect increases of 14.7% and 14.2%, respectively, compared to 2000. Recurring earnings for the first nine months of 2001 and 2000 resulted in annualized returns on average assets of 1.59% in 2001 and 1.55% in 2000. The annualized return on average shareholders’ equity produced by recurring earnings was 19.11% in 2001 compared to 19.49% a year earlier, while the annualized return on average realized shareholders’ equity was 19.89% for the first nine months of 2001 compared to 18.26% in 2000.

Including the nonrecurring items, net income for the third quarter of 2001 totaled $222.0 million, an increase of 206.3% compared to $72.5 million earned in the third quarter of 2000. On a diluted per share basis, net income for the quarter was $.48, an increase of 200.0% compared to $.16 earned in 2000. For the first nine months of 2001, net income was $695.7 million, an increase of 49.0% compared to $466.8 million earned during the first nine months of 2000. On a diluted per share basis, net income was $1.51 for the nine months ended Sept. 30, an increase of 48.0% compared to $1.02 earned in 2000. Results in 2000 were significantly affected by merger-related charges and losses from a restructuring of the securities portfolio.

Earnings Growth Led by 24.0% Increase in Noninterest Income

BB&T continues to enjoy solid growth in noninterest income producing businesses. Excluding nonrecurring items, noninterest income totaled $336.3 million for the third quarter, reflecting an increase of 24.0% compared to the third quarter of 2000. This increase was driven by substantially higher mortgage banking income and continued growth in service charges on deposits, trust revenue and insurance commissions.

BB&T’s mortgage loan production has more than doubled during 2001 compared to last year because of 2001's lower interest rate environment. Through Sept. 30, BB&T originated $7.1 billion in mortgage loans, generating a 105.6% increase in mortgage banking income in the third quarter of 2001 compared to the same period last year. An increase in deposit account and transaction volume fueled the growth in service charges on deposits, which totaled $88.4 million for the quarter, an increase of 16.3% compared to the third quarter of 2000. Trust income totaled $22.9 million for the third quarter, up 7.9% compared to 2000. Agency insurance commissions totaled $44.2 million for the third quarter, an increase of 14.0% compared to the third quarter of 2000. This growth resulted from higher property and casualty, group health and surety insurance commissions, as well as acquisitions of additional agencies. BB&T’s insurance agency network is the 10th largest insurance broker in the country according to Business Insurance magazine.

Excluding purchase accounting transactions, noninterest income would have totaled $321.9 million in the third quarter, reflecting an increase of 18.7% compared to the same period in 2000.

Loan Growth Slows in Response to Economic Conditions

Average loans and leases totaled $47.2 billion for the third quarter, reflecting an increase of 11.2% compared to the same period last year. Commercial loans and leases increased $2.9 billion, or 13.0%; consumer loans increased $511.9 million, or 4.8%; mortgage loans increased $1.2 billion, or 14.2%; and revolving credit increased $134.5 million, or 17.6%. Excluding the effects of loans acquired through purchase acquisitions and the effects of loan securitization programs, average total loans and leases would have increased 8.9% compared to the third quarter of 2000.

Nonperforming Assets and Credit Losses Increase – Still Favorable Compared to Peers

As anticipated, BB&T’s nonperforming asset levels and credit losses increased in the third quarter. Nonperforming assets, as a percentage of total assets, increased to .45% compared to .31% at Sept. 30, 2000, and .43% at June 30, 2001. Net charge-offs amounted to .37% of average loans and leases for the third quarter of 2001 and .35% year to date. Excluding losses at BB&T’s specialized lending subsidiaries, net charge-offs for the third quarter and nine months of 2001 were .30% and .29%, respectively.

Over the long term, BB&T’s net charge-off ratios and relative levels of nonperforming assets have been substantially better than industry averages, and current levels are approximately half that of the most recently published industry results.

“We have maintained industry leading credit quality levels in good economic times and recessions,” said Allison. “By applying a lending strategy focused on clients in our local markets through our community bank approach and by lending to clients with whom we have broad financial relationships, we have successfully managed credit risk.”

Noninterest Expense Control Continues

BB&T has consistently improved its productivity, partially by focusing on controlling expenses. Recurring noninterest expense for the third quarter of 2001 was $515.0 million, an increase of 11.1% compared to the third quarter of 2000. Excluding the effects of purchase accounting, noninterest expense would have totaled $491.6 million for the third quarter, an increase of 6.0% compared to the third quarter last year. BB&T’s efficiency ratio for the third quarter of 2001 was 51.4% compared to 52.2% for the same period in 2000. On a cash basis, the efficiency ratio was 49.6% for the third quarter, compared to a prior year ratio of 50.4%. Cost savings achieved in mergers have been one of the primary reasons that BB&T has been able to consistently improve its efficiencies.

Net Interest Income Increases 8.8%

BB&T’s recurring net interest income on a fully taxable equivalent basis totaled $669.3 million for the third quarter, an increase of $54.1 million, or 8.8%, compared to the third quarter of 2000. The net interest margin was 4.19% for the third quarter, down from 4.22% in the comparable period last year, but higher than the second quarter’s margin, which was 4.16%. The yield earned on average loans during the third quarter was 8.24%, down 1.21% compared to the third quarter last year, while the rate paid for interest-bearing deposits averaged 3.96% for the third quarter, down .96% compared to 2000.

BB&T Continues to Integrate Past Acquisitions and Pursue Strategic Merger Partners

On July 10, BB&T announced plans to acquire Community First Banking Company of Carrollton, Ga. (“CFBC”). CFBC has approximately $548.1 million in assets and operates nine banking offices in western Georgia. The acquisition, which is planned for completion in the fourth quarter, will expand BB&T’s presence in the metropolitan Atlanta area and give BB&T the seventh largest deposit market share in Georgia, a state BB&T entered only two years ago.

On Aug. 9, BB&T completed its merger with F&M National Corporation of Winchester, Va. (“F&M”). With approximately $4.0 billion in assets, F&M operates 163 banking offices, 13 mortgage banking offices, three trust offices, and six insurance offices. The transaction expands BB&T’s presence along the Interstate 81 and Interstate 95 corridors in northern Virginia and the economically strong markets of Richmond and Washington, D.C. The merger propelled BB&T to fourth in terms of deposit market share in Virginia and fifth in Washington, D.C.

On Aug. 29, BB&T announced plans to acquire The Southeastern Trust Company, a trust and asset management company with offices in Anderson, Charleston, Columbia and Greenville, S.C. This acquisition, which is scheduled for completion in the fourth quarter, will expand BB&T’s market position providing wealth management services to affluent individuals and institutional investors in South Carolina.

BB&T Insurance Services, Inc. continued to grow through the acquisition of high-quality agencies during the quarter. First American Title Company of the Carolinas, LLC, of Charlotte, N.C., Lowery D. Finley and Company of Virginia Beach, Va., and Lofton and Company, Inc. of Savannah, Ga., were all acquired during the current quarter.

On Oct. 9, BB&T announced plans to acquire Horizon Mortgage & Investment Company of Atlanta (“Horizon”). With a loan servicing portfolio of $480 million, the purchase of Horizon will enhance BB&T’s mortgage banking operations. The transaction is expected to be completed in the fourth quarter.

During the quarter, BankFirst Corporation, FirstSpartan Financial Corp. and Virginia Capital Bancshares, Inc., were successfully converted to BB&T’s systems. During the first nine months of 2001, BB&T has successfully completed a total of six major systems conversions.

At Sept. 30, BB&T had $70.3 billion in assets and operated 1,094 banking offices in the Carolinas, Virginia, West Virginia, Kentucky, Georgia, Maryland, Tennessee, Alabama and Washington, D.C. BB&T’s common stock is traded on the New York Stock Exchange under the trading symbol BBT. The closing price of BB&T’s common stock on Oct. 10 was $33.20 per share.

For additional information about BB&T’s financial performance, products and services, please visit our web site at www.BBandT.com.

To hear a live webcast of BB&T’s third quarter earnings conference call at 10 a.m. today, please visit our web site at www.BBandT.com. Replays of the conference call will be available through our web site until 5 p.m. (EDT) Oct. 26.

This press release contains forward-looking statements as defined by federal securities laws. These statements may address issues that involve significant risks, uncertainties, estimates and assumptions made by management. Actual results could differ materially from current projections. Please refer to BB&T’s filings with the Securities and Exchange Commission for a summary of important factors that could affect BB&T’s forward-looking statements. BB&T undertakes no obligation to revise these statements following the date of this press release.

BB&T’s news releases are available at no charge through PR Newswire&s Company News On-Call facsimile service. For a menu of BB&T’s news releases or to retrieve a specific release call 800-758-5804, extension 809325.


QUARTERLY PERFORMANCE SUMMARY	Tom A. Nicholson
BB&T Corporation (NYSE:BBT)	Senior Vice President	(336) 733-3058
Page 5	Investor Relations	FAX (336) 733-3132

		For the Three Months Ended				Increase (Decrease)
(Dollars in thousands, except per share data)		9/30/01		9/30/00		$	%

INCOME STATEMENT EXCLUDING NONRECURRING ITEMS
Interest income - taxable equivalent	$	1,261,183	$	1,289,138	$	(27,955)	(2.2)	%
Interest expense		591,839		673,864		(82,025)	(12.2)
Net interest income - taxable equivalent		669,344		615,274		54,070	8.8
Less: Taxable equivalent adjustment		45,572		29,177		16,395	56.2
Net interest income		623,772		586,097		37,675	6.4
Provision for loan & lease losses		45,500		26,514		18,986	71.6
Net interest income after provision for loan & lease losses		578,272		559,583		18,689	3.3
Noninterest income (3)		336,296		271,183		65,113	24.0
Noninterest expense (4)		515,033		463,549		51,484	11.1
Income before income taxes		399,535		367,217		32,318	8.8
Provision for income taxes		116,020		119,043		(3,023)	(2.5)
Income excluding nonrecurring items		283,515		248,174		35,341	14.2
Nonrecurring items, net of tax		61,549		175,700		(114,151)	NM
Net income	$	221,966	$	72,474	$	149,492	206.3	%

PER SHARE DATA EXCLUDING NONRECURRING ITEMS
Basic earnings	$	.62	$	.55	$	.07	12.7	%
Diluted earnings		.62		.54		.08	14.8
Weighted average shares - Basic		454,346,907		451,578,894
Diluted		460,387,879		456,725,224
Dividends paid on common shares	$	.26	$	.23	$	.03	13.0	%

PERFORMANCE RATIOS EXCLUDING NONRECURRING ITEMS
Return on average assets		1.62	%	1.58	%
Return on average equity		19.05		19.62
Return on average realized equity (5)		20.00		18.80
Net yield on earning assets (taxable equivalent)		4.19		4.22
Efficiency (taxable equivalent) (1)		51.4		52.2

CASH BASIS PERFORMANCE EXCLUDING NONRECURRING ITEMS (2)
Net Income	$	300,643	$	263,543	$	37,100	14.1	%
Diluted earnings per share		.65		.58		.07	12.1
Return on average tangible assets		1.73	%	1.70	%
Return on average tangible equity		23.57		24.36
Return on average realized tangible equity (5)		24.94		23.18
Efficiency ratio (taxable equivalent) (1)		49.6		50.4

		For the Three Months Ended				Increase (Decrease)
(Dollars in thousands, except per share data)		9/30/01		9/30/00		$	%

INCOME STATEMENT
Interest income - taxable equivalent	$	1,259,722	$	1,289,138	$	(29,416)	(2.3)	%
Interest expense		591,839		673,864		(82,025)	(12.2)
Net interest income - taxable equivalent		667,883		615,274		52,609	8.6
Less: Taxable equivalent adjustment		45,572		29,177		16,395	56.2
Net interest income		622,311		586,097		36,214	6.2
Provision for loan & lease losses		68,500		40,714		27,786	68.2
Net interest income after provision for loan & lease losses		553,811		545,383		8,428	1.5
Noninterest income		335,685		90,772		244,913	269.8
Noninterest expense		582,234		536,084		46,150	8.6
Income before income taxes		307,262		100,071		207,191	207.0
Provision for income taxes		85,296		27,597		57,699	209.1
Net income	$	221,966	$	72,474	$	149,492	206.3	%

PER SHARE DATA
Basic earnings	$	.49	$	.16	$	.33	206.3	%
Diluted earnings		.48		.16		.32	200.0
Weighted average shares - Basic		454,346,907		451,578,894
Diluted		460,387,879		456,725,224
Dividends paid on common shares	$	.26	$	.23	$	.03	13.0	%

PERFORMANCE RATIOS
Return on average assets		1.27	%	.46	%
Return on average equity		14.92		5.73
Return on average realized equity (5)		15.66		5.49
Net yield on earning assets (taxable equivalent)		4.18		4.22
Efficiency (taxable equivalent) (1)		51.4		52.2


NOTES:		Applicable ratios are annualized.
	(1)	Excludes securities gains (losses), foreclosed property expense and nonrecurring items for all periods.
	(2)	Cash basis operating results exclude the effect on earnings of amortization expense applicable to intangible assets that do not qualify as regulatory capital. Cash basis performance ratios exclude the amortization of nonqualifying intangible assets from earnings and the unamortized balances of nonqualifying intangibles from assets and equity.
	(3)	Excluding purchase accounting transactions, noninterest income would have increased $50.7 million, or 18.7%, for the quarter compared to the same period in 2000.
	(4)	Excluding purchase accounting transactions, noninterest expense would have increased $28.0 million, or 6.0%, for the quarter compared to the same period in 2000.
	(5)	Excludes the impact on average shareholders' equity of unrealized gains (losses) that result from changes in market values of securities available for sale.
	NM -	not meaningful.


QUARTERLY PERFORMANCE SUMMARY	Tom A. Nicholson
BB&T Corporation (NYSE:BBT)	Senior Vice President	(336) 733-3058
Page 6	Investor Relations	FAX (336) 733-3132

		For the Nine Months Ended				Increase (Decrease)
(Dollars in thousands, except per share data)		9/30/01		9/30/00		$	%

INCOME STATEMENT EXCLUDING NONRECURRING ITEMS
Interest income - taxable equivalent	$	3,863,879	$	3,681,096	$	182,783	5.0	%
Interest expense		1,911,569		1,861,321		50,248	2.7
Net interest income - taxable equivalent		1,952,310		1,819,775		132,535	7.3
Less: Taxable equivalent adjustment		147,927		79,695		68,232	85.6
Net interest income		1,804,383		1,740,080		64,303	3.7
Provision for loan & lease losses		122,968		79,779		43,189	54.1
Net interest income after provision for loan & lease losses		1,681,415		1,660,301		21,114	1.3
Noninterest income		975,808		790,673		185,135	23.4
Noninterest expense		1,509,460		1,397,886		111,574	8.0
Income before income taxes		1,147,763		1,053,088		94,675	9.0
Provision for income taxes		335,376		344,783		(9,407)	(2.7)
Income excluding nonrecurring items		812,387		708,305		104,082	14.7
Nonrecurring items, net of tax		116,692		241,539		(124,847)	NM
Net income	$	695,695	$	466,766	$	228,929	49.0	%

PER SHARE DATA EXCLUDING NONRECURRING ITEMS
Basic earnings	$	1.79	$	1.57	$	.22	14.0	%
Diluted earnings		1.77		1.55		.22	14.2
Weighted average shares - Basic		452,904,319		451,513,773
Diluted		459,235,651		456,679,270
Dividends paid on common shares	$	.72	$	.63	$	.09	14.3	%

PERFORMANCE RATIOS EXCLUDING NONRECURRING ITEMS
Return on average assets		1.59	%	1.55	%
Return on average equity		19.11		19.49
Return on average realized equity (3)		19.89		18.26
Net yield on earning assets (taxable equivalent)		4.17		4.26
Noninterest income as a percentage of
total income (taxable equivalent) (1)		33.1		30.3
Efficiency (taxable equivalent) (1)		51.7		53.4

CASH BASIS PERFORMANCE EXCLUDING NONRECURRING ITEMS (2)
Net Income	$	864,639	$	754,956	$	109,683	14.5	%
Diluted earnings per share		1.88		1.65		.23	13.9
Return on average tangible assets		1.72	%	1.67	%
Return on average tangible equity		23.84		24.40
Return on average realized tangible equity (3)		24.99		22.60
Efficiency ratio (taxable equivalent) (1)		49.8		51.6

		For the Nine Months Ended				Increase (Decrease)
(Dollars in thousands, except per share data)		9/30/01		9/30/00		$	%

INCOME STATEMENT
Interest income - taxable equivalent	$	3,861,830	$	3,681,096	$	180,734	4.9	%
Interest expense		1,911,569		1,861,321		50,248	2.7
Net interest income - taxable equivalent		1,950,261		1,819,775		130,486	7.2
Less: Taxable equivalent adjustment		147,927		79,695		68,232	85.6
Net interest income		1,802,334		1,740,080		62,254	3.6
Provision for loan & lease losses		159,318		99,229		60,089	60.6
Net interest income after provision for loan & lease losses		1,643,016		1,640,851		2,165	.1
Noninterest income		1,014,395		569,171		445,224	78.2
Noninterest expense		1,684,708		1,526,931		157,777	10.3
Income before income taxes		972,703		683,091		289,612	42.4
Provision for income taxes		277,008		216,325		60,683	28.1
Net income	$	695,695	$	466,766	$	228,929	49.0	%

PER SHARE DATA
Basic earnings	$	1.54	$	1.03	$	.51	49.5	%
Diluted earnings		1.51		1.02		.49	48.0
Weighted average shares - Basic		452,904,319		451,513,773
Diluted		459,235,651		456,679,270
Dividends paid on common shares	$	.72	$	.63	$	.09	14.3	%

PERFORMANCE RATIOS
Return on average assets		1.36	%	1.02	%
Return on average equity		16.36		12.84
Return on average realized equity (3)		17.03		12.03
Net yield on earning assets (taxable equivalent)		4.16		4.26
Efficiency (taxable equivalent) (1)		51.7		53.4


NOTES:		Applicable ratios are annualized.
	(1)	Excludes securities gains (losses), foreclosed property expense and nonrecurring items for all periods.
	(2)	Cash basis operating results exclude the effect on earnings of amortization expense applicable to intangible assets that do not qualify as regulatory capital. Cash basis performance ratios exclude the amortization of nonqualifying intangible assets from earnings and the unamortized balances of nonqualifying intangibles from assets and equity.
	(3)	Excludes the impact on average shareholders' equity of unrealized gains (losses) that result from changes in market values of securities available for sale.
	NM -	not meaningful.


QUARTERLY PERFORMANCE SUMMARY	Tom A. Nicholson
BB&T Corporation (NYSE:BBT)	Senior Vice President	(336) 733-3058
Page 7	Investor Relations	FAX (336) 733-3132

		As of / For the Nine Months Ended				Increase (Decrease)
(Dollars in thousands)		9/30/01		9/30/00		$	%

SELECTED BALANCE SHEET DATA
End of period balances
Securities available for sale	$	16,679,755	$	14,527,160	$	2,152,595	14.8	%
Securities held to maturity		38,379		638,760		(600,381)	(94.0	)
Trading securities		116,523		132,543		(16,020)	(12.1	)
Total securities		16,834,657		15,298,463		1,536,194	10.0
Commercial loans & leases		25,532,901		22,499,933		3,032,968	13.5
Consumer loans		11,278,277		10,992,847		285,430	2.6
Revolving credit loans		908,868		813,094		95,774	11.8
Mortgage loans		9,429,390		8,598,210		831,180	9.7
Total loans & leases		47,149,436		42,904,084		4,245,352	9.9
Allowance for loan & lease losses		634,552		559,455		75,097	13.4
Other earning assets		370,912		457,997		(87,085)	(19.0	)
Total earning assets		63,685,851		58,890,723		4,795,128	8.1
Total assets		70,309,046		63,808,683		6,500,363	10.2
Noninterest-bearing deposits		6,356,051		5,938,470		417,581	7.0
Savings & interest checking		3,094,104		3,560,987		(466,883)	(13.1	)
Money rate savings		13,156,255		10,891,016		2,265,239	20.8
CD's and other time deposits		22,607,819		21,427,330		1,180,489	5.5
Total deposits		45,214,229		41,817,803		3,396,426	8.1
Short-term borrowed funds		5,923,442		7,022,471		(1,099,029)	(15.7	)
Long-term debt		11,408,329		8,675,769		2,732,560	31.5
Total interest-bearing liabilities		56,189,949		51,577,573		4,612,376	8.9
Total shareholders' equity	$	5,969,828	$	4,959,479	$	1,010,349	20.4

Average balances
Securities, at amortized cost	$	15,767,824	$	15,160,276	$	607,548	4.0	%
Commercial loans & leases		24,933,417		21,865,428		3,067,989	14.0
Consumer loans		11,127,578		10,516,242		611,336	5.8
Revolving credit loans		873,955		735,447		138,508	18.8
Mortgage loans		9,374,228		8,299,754		1,074,474	12.9
Total loans & leases		46,309,178		41,416,871		4,892,307	11.8
Other earning assets		460,558		457,240		3,318	.7
Total earning assets		62,537,560		57,034,387		5,503,173	9.6
Total assets		68,231,868		61,106,903		7,124,965	11.7
Noninterest-bearing deposits		6,086,614		5,911,277		175,337	3.0
Savings & interest checking		3,422,254		4,004,166		(581,912)	(14.5	)
Money rate savings		12,320,263		10,267,376		2,052,887	20.0
CD's and other time deposits		22,275,306		20,962,772		1,312,534	6.3
Total deposits		44,104,437		41,145,591		2,958,846	7.2
Short-term borrowed funds		6,226,380		6,966,872		(740,492)	(10.6	)
Long-term debt		10,792,831		7,301,915		3,490,916	47.8
Total interest-bearing liabilities		55,037,034		49,503,101		5,533,933	11.2
Total shareholders' equity	$	5,684,865	$	4,854,273	$	830,592	17.1	%

		As of / For the Quarter Ended
(Dollars in thousands)		9/30/01		6/30/01		3/31/01		12/31/00		9/30/00

MISCELLANEOUS INFORMATION (1)
Unrealized appreciation (depreciation) on
securities available for sale, net of tax	$	407,966	$	250,548	$	248,575	$	104,297	$	(147,634)
Derivatives (notional value) (2)		900,275		253,817		334,767		825,878		1,752,086
Unrealized gain (loss) on derivatives portfolio (2)		32,759		413		1,577		348		5,864
Common stock prices (daily close): High		38.48		37.01		37.88		38.25		30.44
Low		33.57		34.25		31.42		27.38		24.06
End of period		36.45		36.70		35.17		37.31		30.13
Weighted average shares - Basic		454,346,907		451,712,342		452,634,896		448,630,759		451,578,894
Diluted		460,387,879		457,879,467		459,429,071		454,825,664		456,725,224
End of period shares outstanding		452,984,331		456,031,476		453,380,066		453,307,379		449,661,955
End of period banking offices		1,094		1,095		1,096		1,091		1,060


NOTES:		All items referring to loans & leases include loans held for sale & are net of unearned income.
	(1)	BB&T had approximately 20,700 full-time equivalent employees at September 30, 2001.
	(2)	Consists only of interest rate caps, swaps, floors & collars.


QUARTERLY PERFORMANCE SUMMARY	Tom A. Nicholson
BB&T Corporation (NYSE:BBT)	Senior Vice President	(336) 733-3058
Page 8	Investor Relations	FAX (336) 733-3132

		As of / For the Quarter Ended
(Dollars in thousands, except per share data)		9/30/01		6/30/01		3/31/01		12/31/00		9/30/00

INCOME STATEMENTS EXCLUDING
NONRECURRING ITEMS
Interest income - taxable equivalent
Interest & fees on loans & leases	$	978,540	$	998,845	$	1,028,814	$	1,042,159	$	1,007,129
Interest & dividends on securities		279,121		278,358		285,254		281,596		274,661
Interest on short-term investments		3,522		4,988		6,437		7,425		7,348
Total interest income - taxable equivalent		1,261,183		1,282,191		1,320,505		1,331,180		1,289,138
Interest expense
Interest on deposits		382,222		422,901		448,632		458,320		445,852
Interest on short-term borrowed funds		55,507		58,322		88,829		111,242		95,463
Interest on long-term debt		154,110		152,362		148,684		133,029		132,549
Total interest expense		591,839		633,585		686,145		702,591		673,864
Net interest income - taxable equivalent		669,344		648,606		634,360		628,589		615,274
Less: Taxable equivalent adjustment		45,572		53,404		48,951		53,971		29,177
Net interest income		623,772		595,202		585,409		574,618		586,097
Provision for loan & lease losses		45,500		44,298		33,170		37,513		26,514
Net interest income after provision for
loan & lease losses		578,272		550,904		552,239		537,105		559,583
Noninterest income
Service charges on deposits		88,383		88,054		79,518		77,933		75,978
Mortgage banking income		51,840		51,102		41,007		26,940		24,620
Investment banking & brokerage fees & commissions		43,569		42,585		43,350		39,013		36,877
Trust revenue		22,931		23,929		25,076		18,831		21,246
Agency insurance commissions		44,179		45,049		41,953		39,528		38,757
Other insurance commissions		3,089		3,549		2,840		3,938		3,987
Other nondeposit fees & commissions		48,353		48,156		45,070		47,487		42,697
Securities gains (losses), net		3,786		3,576		3,632		5,247		586
Other income		30,166		27,536		23,530		21,264		26,435
Total noninterest income		336,296		333,536		305,976		280,181		271,183
Noninterest expense
Personnel expense		282,180		282,487		274,324		255,022		252,428
Occupancy & equipment expense		79,700		75,442		75,510		70,355		71,722
Foreclosed property expense		(192	)	500		382		2,151		893
Amortization of intangibles		18,529		18,404		17,906		16,570		15,942
Other noninterest expense		134,816		132,902		116,570		115,985		122,564
Total noninterest expense		515,033		509,735		484,692		460,083		463,549
Income before income taxes		399,535		374,705		373,523		357,203		367,217
Provision for income taxes		116,020		107,278		112,078		107,644		119,043
Net income	$	283,515	$	267,427	$	261,445	$	249,559	$	248,174

PER SHARE DATA EXCLUDING
NONRECURRING ITEMS
Basic earnings	$	.62	$	.59	$	.58	$	.56	$	.55
Diluted earnings		.62		.58		.57		.55		.54
Dividends paid on common shares		.26		.23		.23		.23		.23
Book value per common share	$	13.18	$	12.84	$	12.41	$	11.96	$	11.03

RATIOS EXCLUDING
NONRECURRING ITEMS
Return on average assets		1.62	%	1.58	%	1.58	%	1.55	%	1.58	%
Return on average equity		19.05		18.95		19.32		19.54		19.62
Return on average realized equity (3)		20.00		19.75		19.91		19.17		18.80
Net yield on earning assets (taxable equivalent)		4.19		4.16		4.14		4.23		4.22
Efficiency (taxable equivalent) (1)		51.4		52.0		51.7		50.7		52.2
Noninterest income as a percentage of
total income (taxable equivalent) (1)		33.2		33.7		32.3		30.4		30.5
Equity as a percentage of total assets
end of period		8.5		8.5		8.3		8.1		7.8
Average earning assets as a percentage of
average total assets		91.4		91.7		91.9		92.9		93.0
Average loans & leases as a percentage of
average deposits		105.8		104.1		105.1		103.0		101.0

CASH BASIS PERFORMANCE (2)
Cash basis earnings excluding nonrecurring items	$	300,643	$	285,243	$	278,753	$	265,709	$	263,543
Diluted cash basis earnings per share		.65		.62		.61		.58		.58
Return on average tangible assets		1.73	%	1.72	%	1.71	%	1.67	%	1.70	%
Return on average tangible equity		23.57		24.00		24.22		24.38		24.36
Return on average realized tangible equity (3)		24.94		24.92		25.09		23.85		23.18
Efficiency ratio (taxable equivalent) (1)		49.6		50.2		49.8		48.9		50.4


NOTES:		Applicable ratios are annualized.
	(1)	Excludes securities gains (losses), foreclosed property expense and nonrecurring items for all periods.
	(2)	Cash basis operating results exclude the effect on earnings of amortization expense applicable to intangible assets that do not qualify as regulatory capital. Cash basis performance ratios exclude the amortization of nonqualifying intangible assets from earnings and the unamortized balances of nonqualifying intangibles from assets and equity.
	(3)	Excludes unrealized gains (losses) resulting from changes in market values of securities available for sale.


QUARTERLY PERFORMANCE SUMMARY	Tom A. Nicholson
BB&T Corporation (NYSE:BBT)	Senior Vice President	(336) 733-3058
Page 9	Investor Relations	FAX (336) 733-3132

		As of / For the Quarter Ended
(Dollars in thousands)		9/30/01		6/30/01		3/31/01		12/31/00		9/30/00

SELECTED BALANCE SHEET DATA
End of period balances
Securities available for sale	$	16,679,755	$	15,370,474	$	15,244,516	$	15,231,123	$	14,527,160
Securities held to maturity		38,379		308,846		438,199		622,102		638,760
Trading securities		116,523		120,381		187,218		96,719		132,543
Total securities		16,834,657		15,799,701		15,869,933		15,949,944		15,298,463
Commercial loans & leases		25,532,901		25,102,074		24,587,877		23,986,611		22,499,933
Consumer loans		11,278,277		11,228,486		11,124,471		11,181,338		10,992,847
Revolving credit loans		908,868		892,969		860,396		863,089		813,094
Mortgage loans		9,429,390		9,803,743		9,588,919		8,796,037		8,598,210
Total loans & leases		47,149,436		47,027,272		46,161,663		44,827,075		42,904,084
Allowance for loan & lease losses		634,552		610,171		601,788		578,107		559,455
Other earning assets		370,912		506,263		532,472		391,343		457,997
Total earning assets		63,685,851		62,923,591		62,153,135		60,986,973		58,890,723
Total assets		70,309,046		68,811,370		67,859,827		66,552,823		63,808,683
Noninterest-bearing deposits		6,356,051		6,419,145		6,096,581		6,178,233		5,938,470
Savings & interest checking		3,094,104		3,263,459		3,295,178		3,397,973		3,560,987
Money rate savings		13,156,255		12,768,711		12,481,532		11,853,614		10,891,016
CD's and other time deposits		22,607,819		22,499,458		22,056,193		22,447,499		21,427,330
Total deposits		45,214,229		44,950,773		43,929,484		43,877,319		41,817,803
Short-term borrowed funds		5,923,442		5,704,614		6,001,435		7,309,978		7,022,471
Long-term debt		11,408,329		10,864,249		10,912,235		8,646,018		8,675,769
Total interest-bearing liabilities		56,189,949		55,100,491		54,746,573		53,655,082		51,577,573
Total shareholders' equity		5,969,828		5,855,699		5,624,614		5,419,809		4,959,479
Goodwill		792,689		804,916		797,494		770,617		699,147
Core deposit & other intangibles		42,950		41,721		43,030		40,217		41,622
Total intangibles		835,639		846,637		840,524		810,834		740,769
Mortgage servicing rights		340,746		295,527		237,978		239,251		219,059
Negative goodwill	$	10,465	$	11,143	$	12,704	$	14,264	$	15,825

Average balances
Securities, at amortized cost	$	16,015,659	$	15,542,138	$	15,742,675	$	15,482,384	$	15,341,496
Commercial loans & leases		25,367,850		24,924,004		24,498,848		23,060,161		22,455,779
Consumer loans		11,246,411		11,101,875		11,032,093		10,888,102		10,734,534
Revolving credit loans		896,751		871,722		852,910		801,732		762,275
Mortgage loans		9,677,370		9,517,819		8,919,162		8,722,717		8,475,620
Total loans & leases		47,188,382		46,415,420		45,303,013		43,472,712		42,428,208
Other earning assets		451,010		451,487		479,490		394,260		413,661
Total earning assets		63,655,051		62,409,045		61,525,178		59,349,356		58,183,365
Total assets		69,607,180		68,086,413		66,973,065		63,917,592		62,558,010
Noninterest-bearing deposits		6,319,729		6,117,192		5,817,401		5,855,202		5,963,751
Savings & interest checking		3,334,252		3,424,045		3,510,401		3,550,529		3,746,810
Money rate savings		12,725,908		12,420,119		11,804,638		11,171,283		10,485,816
CD's and other time deposits		22,238,104		22,629,282		21,955,426		21,648,786		21,805,459
Total deposits		44,617,993		44,590,638		43,087,866		42,225,800		42,001,836
Short-term borrowed funds		6,418,925		5,595,541		6,667,405		7,050,743		6,105,917
Long-term debt		11,128,696		10,877,563		10,363,829		8,595,844		8,546,973
Total interest-bearing liabilities		55,845,885		54,946,550		54,301,699		52,017,185		50,690,975
Total shareholders' equity	$	5,903,303	$	5,659,565	$	5,487,154	$	5,081,679	$	5,031,614

RISK-BASED CAPITAL *
Risk-based capital:
Tier 1	$	4,829,647	$	4,828,028	$	4,628,313	$	4,591,023	$	4,422,933
Total		6,612,821		5,950,114		5,860,999		5,800,668		5,614,655
Risk-weighted assets		50,087,321		49,587,717		48,396,432		47,391,701		45,318,306
Average quarterly tangible assets		68,406,155		67,464,682		65,781,373		63,125,936		61,858,568
Risk-based capital ratios:
Tier 1		9.6	%	9.7	%	9.6	%	9.7	%	9.8	%
Total		13.2		12.0		12.1		12.2		12.4
Leverage capital ratio		7.1		7.2		7.0		7.3		7.1


NOTES:		All items referring to loans & leases include loans held for sale & are net of unearned income.
	*	Current quarter information is estimated.


QUARTERLY PERFORMANCE SUMMARY	Tom A. Nicholson
BB&T Corporation (NYSE:BBT)	Senior Vice President	(336) 733-3058
Page 10	Investor Relations	FAX (336) 733-3132

		As of / For the Quarter Ended
(Dollars in thousands)		9/30/01		6/30/01		3/31/01		12/31/00		9/30/00

ASSET QUALITY ANALYSIS
Allowance For Loan & Lease Losses
Beginning balance	$	610,171	$	601,788	$	578,107	$	559,455	$	542,305
Allowance for acquired loans		--		9,470		10,566		12,934		--
Provision for loan & lease losses		68,500		48,798		42,020		47,958		40,714
Charge-offs		(54,885	)	(59,750	)	(40,512	)	(53,736	)	(31,483	)
Recoveries		10,766		9,865		11,607		11,496		7,919

Net charge-offs		(44,119	)	(49,885	)	(28,905	)	(42,240	)	(23,564	)

Ending balance	$	634,552	$	610,171	$	601,788	$	578,107	$	559,455

Nonperforming Assets
Nonaccrual loans & leases	$	266,384	$	244,711	$	203,710	$	180,638	$	150,046
Foreclosed real estate		34,601		27,725		41,132		37,966		32,403
Other foreclosed property		17,733		20,494		22,946		17,233		16,347
Restructured loans		183		521		2,574		492		445

Nonperforming assets	$	318,901	$	293,451	$	270,362	$	236,329	$	199,241

Loans 90 days or more past due
& still accruing	$	93,968	$	84,399	$	83,001	$	81,629	$	84,220
Loans 90 days or more past due & still accruing
as a percentage of total loans and leases		.20	%	.18	%	.18	%	.18	%	.20	%

Asset Quality Ratios
Nonaccrual and restructured loans & leases
as a percentage of total loans & leases		.57	%	.52	%	.45	%	.40	%	.35	%
Nonperforming assets as a percentage of:
Total assets		.45		.43		.40		.36		.31
Loans & leases plus
foreclosed property		.68		.62		.58		.53		.46
Net charge-offs as a percentage of
average loans & leases		.37		.43		.26		.39		.22
Net charge-offs excluding specialized
lending as a percentage of average
loans & leases (1)		.30		.37		.20		.33		.19
Allowance for loan & lease losses as
a percentage of loans & leases		1.35		1.30		1.30		1.29		1.30
Ratio of allowance for loan & lease losses to:
Net charge-offs		3.63	x	3.05	x	5.13	x	3.44	x	5.97	x
Nonaccrual and restructured loans & leases		2.38		2.49		2.92		3.19		3.72

		As of / for the Nine Months Ended				Increase (Decrease)
		9/30/01		9/30/00		$		%

Allowance For Loan & Lease Losses
Beginning balance	$	578,107	$	529,236	$	48,871		9.2	%
Allowance for acquired loans		20,036		1,377		18,659		NM
Provision for loan & lease losses		159,318		99,229		60,089		60.6
Charge-offs		(155,147	)	(96,779	)	(58,368	)	(60.3	)
Recoveries		32,238		26,392		5,846		22.2

Net charge-offs		(122,909	)	(70,387	)	(52,522	)	(74.6	)

Ending balance	$	634,552	$	559,455	$	75,097		13.4

Asset Quality Ratios
Net charge-offs as a percentage of
average loans & leases		.35	%	.23	%
Ratio of allowance for loan & lease losses to
net charge-offs		3.86	x	5.95	x

	For the Quarter Ended
	9/30/01		6/30/01		3/31/01		12/31/00		9/30/00

ANNUALIZED INTEREST YIELDS / RATES (2)
Interest income:
Securities & other	6.86	%	7.09	%	7.20	%	7.28	%	7.16	%
Loans & leases	8.24		8.63		9.19		9.55		9.45

Total earning assets	7.88		8.23		8.66		8.94		8.83

Interest expense:
Interest-bearing deposits	3.96		4.41		4.88		5.01		4.92
Short-term borrowed funds	3.43		4.18		5.40		6.28		6.22
Long-term debt	5.50		5.62		5.80		6.17		6.18

Total interest-bearing liabilities	4.21		4.62		5.12		5.38		5.29

Net yield on earning assets	4.19	%	4.16	%	4.14	%	4.23	%	4.22	%


NOTES:		All items referring to loans & leases include loans held for sale & are net of unearned income.
	(1)	Excludes net charge-offs and average loans from BB&T's consumer finance subsidiaries.
	(2)	Excludes nonrecurring items. Fully taxable equivalent yields. Securities yields calculated based on amortized cost.
	NM -	not meaningful.


QUARTERLY PERFORMANCE SUMMARY	Tom A. Nicholson
BB&T Corporation (NYSE:BBT)	Senior Vice President	(336) 733-3058
Page 11	Investor Relations	FAX (336) 733-3132

		For the Nine Months Ended				Increase (Decrease)
(Dollars in thousands)		9/30/01		9/30/00		$	%

SELECTED BALANCES EXCLUDING PURCHASE ACQUISITIONS (1)
Average Balances
Commercial loans & leases	$	24,990,679	$	22,477,564	$	2,513,115	11.2	%
Consumer loans		11,165,905		10,758,340		407,565	3.8
Revolving credit loans		874,422		741,413		133,009	17.9
Mortgage loans (2)		10,821,467		9,251,109		1,570,358	17.0
Total loans & leases		47,852,473		43,228,426		4,624,047	10.7
Noninterest-bearing deposits (3)		6,313,102		6,131,605		181,497	3.0
Interest-bearing transaction accounts		15,814,066		14,644,711		1,169,355	8.0
CD's and other time deposits		22,521,124		21,840,542		680,582	3.1
Total deposits		$44,648,292		$42,616,858		$2,031,434	4.8	%

		For the Nine Months Ended				Increase (Decrease)
(Dollars in thousands)		9/30/01		9/30/00		$		%

SELECTED RECURRING INCOME STATEMENT ITEMS
EXCLUDING PURCHASE ACQUISITIONS (1)
Net interest income - taxable equivalent	$	1,911,420	$	1,819,775	$	91,645		5.0	%

Noninterest income
Service charges on deposits	$	251,093	$	214,559	$	36,534		17.0
Mortgage banking income		128,780		77,639		51,141		65.9
Investment banking & brokerage fees & commissions		125,442		124,467		975		0.8
Trust revenue		71,352		61,208		10,144		16.6
Agency insurance commissions		110,121		107,156		2,965		2.8
Other insurance commissions		9,375		11,432		(2,057	)	(18.0	)
Other nondeposit fees & commissions		140,924		119,051		21,873		18.4
Securities gains (losses), net		10,992		545		10,447		NM
Other income		80,619		74,616		6,003		8.0
Total noninterest income		928,698		790,673		138,025		17.5
Noninterest expense
Personnel expense		803,639		760,753		42,886		5.6
Occupancy & equipment expense		223,441		212,038		11,403		5.4
Other noninterest expense		413,028		425,095		(12,067	)	(2.8	)
Total noninterest expense	$	1,440,108	$	1,397,886	$	42,222		3.0	%


NOTES:	(1)	Amounts adjusted to exclude growth that resulted from the timing of acquisitions purchased during 2001 and 2000.
	(2)	Excludes the impact of mortgage loan securitization programs in both 2001 and 2000.
	(3)	Excludes the impact of the outsourcing of official checks in both 2001 and 2000.
	NM -	not meaningful.

S I G N A T U R E

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

BB&T CORPORATION
(Registrant)

By: /S/ SHERRY A. KELLETT

                                                                                Sherry A. Kellett
                                                                                Senior Executive Vice President and Controller
                                                                                (Principal Accounting Officer)

Date: October 11 , 2001