Quarterly Performance Summary issued April 11, 2002

8-K 1 prtemp.htm FIRST QUARTER 2002 EARNINGS PRESS RELEASE Quarterly Performance Summary issued April 11, 2002

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

April 11, 2002

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 first quarter of 2002.

EXHIBIT INDEX

Exhibit 99.1 Quarterly Performance Summary issued April 11, 2002

April 11, 2002

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 achieves 18.3% growth in first quarter earnings

WINSTON-SALEM, N.C. -- BB&T Corporation (NYSE:BBT) reported today first quarter 2002 earnings totaling $309.2 million, or $.66 per diluted share, excluding nonrecurring items. Net income, excluding nonrecurring items, increased 18.3% and diluted earnings per share increased 15.8% compared to recurring results in the first quarter of 2001.

Net nonrecurring items for the quarter, while immaterial, were comprised of after-tax expenses of $9.4 million associated with acquisitions, offset by the cumulative effect of a change in accounting principle from the implementation of a new accounting rule, which resulted in the recognition of income totaling $9.8 million.

BB&T's first quarter 2002 results, excluding nonrecurring items, produced an annualized return on average assets of 1.75% and an annualized return on average shareholders' equity of 19.39%, compared to prior year ratios of 1.58% and 19.32%, respectively.

Cash basis operating results exclude the effects of intangible assets and related amortization expenses. Excluding nonrecurring items, cash basis earnings totaled $312.0 million for the first quarter of 2002, or $.67 per diluted share. These results reflect increases of 11.9% and 9.8%, respectively, compared to results for the first quarter of 2001. Cash basis earnings for the current quarter produced an annualized return on average tangible assets of 1.80%, and an annualized return on average tangible shareholders' equity of 23.46%.

"I am pleased to announce a strong start to 2002," said Chairman and Chief Executive Officer John A. Allison. "Our earnings benefited from a solid performance by our noninterest income generating businesses, improvement in our net interest margin and our continuing ability to achieve cost savings from acquisitions."

Including nonrecurring items, net income for the first quarter of 2002 totaled $309.6 million compared to $236.5 million earned in the first quarter of 2001, an increase of 30.9%. On a diluted per share basis, net income for the quarter was $.66, up 29.4% compared to $.51 earned in 2001. Net income for the first quarter generated an annualized return on average assets of 1.76% and an annualized return on average shareholders' equity of 19.41% compared to prior year ratios of 1.43% and 17.48%, respectively.

Noninterest Income Drives Earnings Growth

Total noninterest income, excluding nonrecurring items, was $374.7 million for the first quarter of 2002, an increase of 22.5% compared to the same period in 2001. This increase was driven by insurance agency commissions, mortgage banking income, investment banking and brokerage fees and commissions and service charges on deposits.

BB&T's insurance agency network is the 10th largest in the nation. Commissions from the agency network totaled $63.9 million in the first quarter of 2002, up 52.3% compared to the first quarter last year. This significant increase reflects the Jan. 1 purchase of Cooney, Rikard & Curtin, Inc. (CRC), the largest independently owned wholesale insurance broker in the nation, as well as acquisitions of other agencies in 2002 and 2001. Excluding the effect of these acquisitions, insurance agency commissions increased 11.3%.

BB&T enjoyed record mortgage loan originations in 2001 and continued that trend during the first quarter of this year with $2.8 billion in originations. This strong level of mortgage activity fueled a 22.7% increase in mortgage banking income in the first quarter of 2002 compared to the same period in 2001. BB&T recorded a $9.8 million provision for the impairment of mortgage servicing rights during the quarter because low mortgage rates have spurred significant prepayments in the underlying loans. This provision was offset by securities gains. Excluding the provision, mortgage banking income increased 46.5%.

Investment banking and brokerage fees and commissions totaled $52.9 million for the quarter, an increase of 21.0% compared to the first quarter last year due to higher trading and fee income in BB&T's brokerage operations. Income from service charges on deposit accounts increased because of growth in accounts, higher transaction volume and income from purchase acquisitions. Service charges on deposits totaled $90.2 million for the first quarter of 2002, an increase of 13.5% compared to the first quarter of 2001.

Excluding the effect of acquisitions accounted for as purchases, noninterest income totaled $351.8 million in the quarter, reflecting an increase of 15.0% compared to the same period in 2001.

Net Interest Margin Improves to 4.26%

BB&T's fully taxable equivalent net interest income totaled $685.3 million for the first quarter, an increase of $50.9 million, or 8.0%, compared to the first quarter of 2001. The net interest margin was 4.26% for the quarter, up from 4.14% in the first quarter of 2001 and 4.20% in last year's fourth quarter. BB&T's net interest margin has increased steadily in the last year despite aggressive actions by the Federal Reserve to lower short-term interest rates.

Cost Savings from Acquisitions Aid Expense Control

BB&T maintained excellent operating efficiency during the quarter. Noninterest expense for the first quarter of 2002, excluding nonrecurring items, was $533.7 million, an increase of 10.1% compared to the first quarter of 2001. However, excluding the effects of acquisitions accounted for as purchases, noninterest expense totaled $504.6 million for the current quarter, an increase of 4.1% compared to the same period last year. BB&T's cash basis efficiency ratio for the quarter was 50.1%.

Overall Loan Growth Slows

BB&T's loan and lease portfolios totaled $50.2 billion at March 31, an increase of 8.7% compared to the first quarter of 2001. The loan category leading the increase was commercial loans and leases, which increased $3.6 billion, or 14.4%. In addition, BB&T's consumer loan portfolio increased $838.1 million, or 7.5%; revolving credit increased $93.6 million, or 10.9%; and mortgage loans decreased $488.1 million, or 5.1%. For the quarter, average total loans and leases increased 5.6% compared to the first quarter of 2001. Excluding the effects of loans acquired through purchase acquisitions and the effects of loan securitization programs, average loans and leases totaled $51.1 billion for the first quarter, an increase of $1.7 billion, or 3.4%, compared to the same period last year.

Nonperforming Assets and Loan Losses Increase as Expected

As anticipated, BB&T's nonperforming assets and credit losses increased in the first quarter of 2002. Nonperforming assets as a percentage of total assets increased to .56% compared to .40% at March 31, 2001, and .53% at Dec. 31, 2001. Annualized net charge-offs were .48% of average loans and leases for the first quarter of 2002 compared to .26% in the first quarter of 2001, but down from .54% in the fourth quarter of 2001. Excluding losses at BB&T's specialized lending subsidiaries, annualized net charge-offs for the quarter were .37% of average loans and leases.

"These levels of nonperforming assets and net charge-offs, though higher than last year because of the recession, still reflect good quality in our portfolios," said Allison. "Our credit quality stacks up very well compared to our peers and the industry. We expect our credit quality indicators to show improvement later this year assuming the economy recovers." According to the FDIC's Quarterly Banking Profile, the fourth quarter 2001 average net charge-off ratio for institutions with assets greater than $10 billion was 1.46%, and the ratio of nonperforming assets to total assets was 1.00%. Industry data for the fourth quarter of 2001 is the most current available.

BB&T Continues to Pursue Strategic Acquisitions in 2002

On Jan. 1, BB&T acquired Birmingham, Ala.-based CRC. The transaction has substantially increased and diversified revenues from BB&T's insurance operations, as evidenced by the strong growth in agency insurance commissions during the quarter.

On March 8, BB&T completed its acquisition of Louisville, Ky.-based MidAmerica Bancorp. The transaction marks BB&T's initial presence in the economically vibrant Louisville market. MidAmerica has $2.0 billion in assets and operates 30 banking offices in the Louisville metropolitan statistical area.

On March 20, BB&T consummated its merger with AREA Bancshares Corporation of Owensboro, Ky. AREA has $2.9 billion in assets and operates 72 banking offices throughout Kentucky. The acquisition of AREA, combined with the MidAmerica merger, increased BB&T's assets in Kentucky to more than $5 billion and its market share in the state from 32nd to 3rd.

BB&T Insurance Services purchased three high-quality insurance agencies during the quarter. On Jan. 2, the acquisition of O'Neal and Hinson Insurance Services of Macon, Ga., was completed. On Feb. 1, Professional Benefits Management, Inc., of Greensboro, N.C., joined the BB&T team, and on March 1, the acquisition of Kaplan Insurance Services, Inc. of Macon, Ga., was completed.

On April 5, BB&T completed its acquisition of The Pfefferkorn Company, a mortgage banking company based in Winston-Salem, N.C. The Pfefferkorn Company has a mortgage servicing portfolio of $840 million. This acquisition further strengthens BB&T's position as the No. 1 mortgage originator in North Carolina.

BB&T also expanded its asset management and investment banking and brokerage operations during the quarter. BB&T Asset Management announced on Jan. 31 plans to acquire Virginia Investment Counselors Inc. (VIC) of Norfolk, Va. With $1.2 billion in assets under management, VIC is an investment advisory firm offering services in 20 states. Scott & Stringfellow, BB&T's investment banking and brokerage subsidiary, announced on Jan. 28 an agreement to buy Ryan, Lee & Co. Inc., an investment banking and brokerage firm based in McLean, Va. The transaction will bolster BB&T's presence in the Washington, D.C. area.

In addition to the mergers and acquisitions described above, BB&T completed the systems integration of F&M National Corporation of Winchester, Va., on March 18. The merger, completed in August 2001, provided BB&T with a major expansion in many excellent growth markets in Virginia, Maryland and West Virginia.

On March 31, BB&T had $74.9 billion in assets and operated 1,132 banking offices in the Carolinas, Virginia, West Virginia, Kentucky, Georgia, Maryland, Tennessee, Alabama, Indiana 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 April 10 was $37.96 per share.

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

To hear a live webcast of BB&T's first quarter 2002 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) April 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.


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)		3/31/02			3/31/01			$			%

INCOME STATEMENT EXCLUDING NONRECURRING ITEMS (1)
Interest income - taxable equivalent		$	1,119,623		$	1,320,500		$	(200,877	)		(15.2	)%
Interest expense			434,361			686,095			(251,734	)		(36.7	)
Net interest income - taxable equivalent			685,262			634,405			50,857			8.0
Less: Taxable equivalent adjustment			37,990			48,951			(10,961	)		(22.4	)
Net interest income			647,272			585,454			61,818			10.6
Provision for loan & lease losses			56,500			33,170			23,330			70.3
Net interest income after provision for loan & lease losses			590,772			552,284			38,488			7.0
Noninterest income (2)			374,720			305,881			68,839			22.5
Noninterest expense (3)			533,691			484,642			49,049			10.1
Income before income taxes			431,801			373,523			58,278			15.6
Provision for income taxes			122,554			112,078			10,476			9.3
Income excluding nonrecurring items (1)			309,247			261,445			47,802			18.3
Nonrecurring items, net of tax (1)			(398	)		24,945			(25,343	)		NM
Net income		$	309,645		$	236,500		$	73,145			30.9	%

PER SHARE DATA EXCLUDING NONRECURRING ITEMS (1)
Basic earnings		$	.67		$	.58		$	.09			15.5	%
Diluted earnings			.66			.57			.09			15.8
Weighted average shares -	Basic		462,902,144			452,634,896
	Diluted		468,604,312			459,429,071
Dividends paid on common shares		$	.26		$	.23		$	.03			13.0	%

PERFORMANCE RATIOS EXCLUDING NONRECURRING ITEMS (1)
Return on average assets			1.75	%		1.58	%
Return on average equity			19.39			19.32
Return on average realized equity (4)			20.32			19.90
Net yield on earning assets (taxable equivalent)			4.26			4.14
Efficiency (taxable equivalent) (5)			50.5			51.7

CASH BASIS PERFORMANCE EXCLUDING NONRECURRING ITEMS (1)(6)
Earnings excluding nonrecurring items		$	311,951		$	278,753		$	33,198			11.9	%
Diluted earnings per share			.67			.61			.06			9.8
Return on average tangible assets			1.80 %			1.71 %
Return on average tangible equity			23.46			24.23
Return on average realized tangible equity (4)			24.82			25.09
Efficiency ratio (taxable equivalent) (5)			50.1			49.8

	For the Three Months Ended						Increase (Decrease)

(Dollars in thousands, except per share data)	3/31/02			3/31/01			$			%

INCOME STATEMENT
Interest income - taxable equivalent	$	1,119,623		$	1,320,500		$	(200,877	)		(15.2	)%
Interest expense		434,361			686,095			(251,734	)		(36.7	)
Net interest income - taxable equivalent		685,262			634,405			50,857			8.0
Less: Taxable equivalent adjustment		37,990			48,951			(10,961	)		(22.4	)
Net interest income		647,272			585,454			61,818			10.6
Provision for loan & lease losses		56,500			42,020			14,480			34.5
Net interest income after provision for loan & lease losses		590,772			543,434			47,338			8.7
Noninterest income		374,720			332,011			42,709			12.9
Noninterest expense		548,310			538,498			9,812			1.8
Income before income taxes		417,182			336,947			80,235			23.8
Provision for income taxes		117,317			100,447			16,870			16.8
Income before cumulative effect of change in accounting principle		299,865			236,500			63,365			26.8
Cumulative effect of change in accounting principle		9,780			--			9,780			NM
Net Income	$	309,645		$	236,500		$	73,145			30.9	%

PER SHARE DATA
Basic earnings
Income before cumulative effect of change in accounting principle	$	.65		$	.52		$	.13			25.0	%
Cumulative effect of change in accounting principle		.02			--			.02			NM
Net income		.67			.52			.15			28.8
Diluted earnings
Income before cumulative effect of change in accounting principle		.64			.51			.13			25.5
Cumulative effect of change in accounting principle		.02			--			.02			NM
Net income	$	.66		$	.51		$	.15			29.4	%

PERFORMANCE RATIOS BASED ON NET INCOME
Return on average assets		1.76	%		1.43	%
Return on average equity		19.41			17.48
Return on average realized equity (4)		20.34			18.00

NOTES:		Applicable ratios are annualized.
	(1)	Nonrecurring items include $9.4 million in net after-tax expense associated with acquisitions, and the cumulative effect of a change in accounting principle which resulted in the recognition of income totaling $9.8 million.

	(2)	Excluding purchase accounting transactions, noninterest income would have increased $45.9 million, or 15.0%, for the quarter compared to the same period in 2001.
	(3)	Excluding purchase accounting transactions, noninterest expense would have increased $20.0 million, or 4.1%, for the quarter compared to the same period in 2001.
	(4)	Excludes the effect on average shareholders' equity of unrealized gains (losses) on securities available for sale.
	(5)	Excludes securities gains (losses), foreclosed property expense, provisions for the impairment of mortgage servicing rights and nonrecurring items.
	(6)	Cash basis performance excludes the effect on earnings of amortization expense applicable to intangible assets and the unamortized balances of
		intangibles from assets and equity.
	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

	As of / For the Three Months Ended				Increase (Decrease)

(Dollars in thousands)	3/31/02		3/31/01		$			%

SELECTED BALANCE SHEET DATA
End of period balances
Securities available for sale	$	17,515,228	$	15,244,516	$	2,270,712			14.9	%
Securities held to maturity		44,189		438,199		(394,010	)		(89.9	)
Trading securities		143,976		187,218		(43,242	)		(23.1	)
Total securities		17,703,393		15,869,933		1,833,460			11.6
Commercial loans & leases		28,139,248		24,587,877		3,551,371			14.4
Consumer loans		11,962,560		11,124,471		838,089			7.5
Revolving credit loans		953,956		860,396		93,560			10.9
Mortgage loans		9,100,813		9,588,919		(488,106	)		(5.1	)
Total loans & leases		50,156,577		46,161,663		3,994,914			8.7
Allowance for loan & lease losses		705,905		601,788		104,117			17.3
Other earning assets		333,035		532,472		(199,437	)		(37.5	)
Total earning assets		67,924,614		62,153,135		5,771,479			9.3
Total assets		74,949,720		67,859,827		7,089,893			10.4
Noninterest-bearing deposits		7,142,729		6,096,581		1,046,148			17.2
Savings & interest checking		3,287,663		3,295,178		(7,515	)		(.2	)
Money rate savings		14,894,883		12,481,532		2,413,351			19.3
CDs and other time deposits		23,145,964		22,056,193		1,089,771			4.9
Total deposits		48,471,239		43,929,484		4,541,755			10.3
Short-term borrowed funds		6,043,367		6,001,435		41,932			.7
Long-term debt		11,444,091		10,912,235		531,856			4.9
Total interest-bearing liabilities		58,815,968		54,746,573		4,069,395			7.4
Total shareholders' equity	$	7,055,418	$	5,624,614	$	1,430,804			25.4

Average balances
Securities, at amortized cost	$	16,482,625	$	15,742,659	$	739,966			4.7	%
Commercial loans & leases		26,352,170		24,655,245		1,696,925			6.9
Consumer loans		11,387,897		11,021,870		366,027			3.3
Revolving credit loans		944,465		851,899		92,566			10.9
Mortgage loans		9,148,681		8,770,706		377,975			4.3
Total loans & leases		47,833,213		45,299,720		2,533,493			5.6
Other earning assets		454,518		478,978		(24,460	)		(5.1	)
Total earning assets		64,770,356		61,521,357		3,248,999			5.3
Total assets		71,481,681		66,955,391		4,526,290			6.8
Noninterest-bearing deposits		6,498,552		5,817,639		680,913			11.7
Savings & interest checking		3,201,268		3,496,877		(295,609	)		(8.5	)
Money rate savings		13,721,226		11,756,965		1,964,261			16.7
CDs and other time deposits		22,276,868		21,956,161		320,707			1.5
Total deposits		45,697,914		43,027,642		2,670,272			6.2
Short-term borrowed funds		5,930,689		6,604,135		(673,446	)		(10.2	)
Long-term debt		11,572,254		10,465,027		1,107,227			10.6
Total interest-bearing liabilities		56,702,305		54,279,165		2,423,140			4.5
Total shareholders' equity	$	6,469,084	$	5,487,154	$	981,930			17.9

		As of / For the Quarter Ended

(Dollars in thousands)		3/31/02	12/31/01	9/30/01		6/30/01	3/31/01

MISCELLANEOUS INFORMATION (1)
Unrealized appreciation (depreciation) on
securities available for sale, net of tax		$ 160,399	$ 288,107	$ 407,966		$ 250,548	$ 248,575
Derivatives (notional value)		5,222,994	5,614,502	3,752,445		3,361,296	2,821,040
Fair value of derivatives portfolio		46,936	43,973	(2,407	)	8,667	(12,954	)
Common stock prices (daily close):	High	39.11	36.96	38.48		37.01	37.88
	Low	34.47	32.10	33.57		34.25	31.42
	End of period	38.11	36.11	36.45		36.70	35.17
Weighted average shares -	Basic	462,902,144	454,031,392	454,346,907		451,712,342	452,634,896
	Diluted	468,604,312	459,369,269	460,387,879		457,879,467	459,429,071
End of period shares outstanding		481,195,674	455,682,560	452,984,331		456,031,476	453,380,066
End of period banking offices		1,132	1,081	1,085		1,095	1,096
ATMs		1,718	1,613	1,614		1,430	1,374

NOTES:	All items referring to loans & leases include loans held for sale & are net of unearned income.
	(1) BB&T had approximately 23,500 full-time equivalent employees at March 31, 2002.


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 Quarter Ended

(Dollars in thousands, except per share data)	3/31/02			12/31/01			9/30/01			6/30/01			3/31/01

INCOME STATEMENTS EXCLUDING
NONRECURRING ITEMS (1)
Interest income - taxable equivalent
Interest & fees on loans & leases	$	844,804		$	897,529		$	977,910		$	998,665		$	1,028,789
Interest & dividends on securities		272,326			278,719			279,120			278,356			285,256
Interest on short-term investments		2,493			2,228			3,514			4,988			6,455
Total interest income - taxable equivalent		1,119,623			1,178,476			1,260,544			1,282,009			1,320,500
Interest expense
Interest on deposits		259,602			315,532			381,409			421,861			447,467
Interest on short-term borrowed funds		26,449			35,451			55,913			58,251			88,700
Interest on long-term debt		148,310			152,488			154,498			153,438			149,928
Total interest expense		434,361			503,471			591,820			633,550			686,095
Net interest income - taxable equivalent		685,262			675,005			668,724			648,459			634,405
Less: Taxable equivalent adjustment		37,990			42,938			45,572			53,404			48,951
Net interest income		647,272			632,067			623,152			595,055			585,454
Provision for loan & lease losses		56,500			65,000			45,500			44,298			33,170
Net interest income after provision for
loan & lease losses		590,772			567,067			577,652			550,757			552,284
Noninterest income
Service charges on deposits		90,162			93,773			88,305			87,992			79,452
Mortgage banking income		50,562			39,194			52,068			51,482			41,192
Investment banking & brokerage fees & commissions		52,893			45,085			43,599			42,904			43,708
Trust revenue		23,128			18,962			22,931			23,929			25,076
Agency insurance commissions		63,883			45,724			44,120			45,049			41,953
Other insurance commissions		3,485			4,122			3,089			3,549			2,840
Other nondeposit fees & commissions		44,116			46,709			48,600			47,750			44,549
Securities gains (losses), net		13,407			32,257			3,786			3,576			3,632
Other income		33,084			31,183			30,095			27,368			23,479
Total noninterest income		374,720			357,009			336,593			333,599			305,881
Noninterest expense
Personnel expense		304,893			288,235			281,830			282,484			274,309
Occupancy & equipment expense		83,451			73,890			79,222			75,102			75,172
Foreclosed property expense		341			1,158			673			500			417
Amortization of intangibles		4,351			17,854			18,529			18,404			17,871
Other noninterest expense		140,655			140,144			134,456			133,161			116,873
Total noninterest expense		533,691			521,281			514,710			509,651			484,642
Income before income taxes		431,801			402,795			399,535			374,705			373,523
Provision for income taxes		122,554			115,049			116,020			107,278			112,078
Income excluding nonrecurring items (1)	$	309,247		$	287,746		$	283,515		$	267,427		$	261,445

PER SHARE DATA EXCLUDING
NONRECURRING ITEMS (1)
Basic earnings	$	.67		$	.63		$	.62		$	.59		$	.58
Diluted earnings		.66			.63			.62			.58			.57
Dividends paid on common shares		.26			.26			.26			.23			.23
Book value per share	$	14.66		$	13.50		$	13.18		$	12.84		$	12.41

RATIOS EXCLUDING
NONRECURRING ITEMS (1)
Return on average assets		1.75	%		1.62	%		1.62	%		1.58	%		1.58	%
Return on average equity		19.39			18.56			19.05			18.95			19.32
Return on average realized equity (2)		20.32			19.89			20.00			19.74			19.90
Net yield on earning assets (taxable equivalent)		4.26			4.20			4.19			4.16			4.14
Efficiency (taxable equivalent) (3)		50.5			50.3			51.3			52.0			51.7
Noninterest income as a percentage of
total income (taxable equivalent) (3)		35.1			34.5			33.2			33.7			32.3
Equity as a percentage of total assets
end of period		9.4			8.7			8.5			8.5			8.3
Average earning assets as a percentage of
average total assets		90.6			90.7			91.4			91.7			91.9
Average loans & leases as a percentage of
average deposits		104.7			105.7			106.0			104.3			105.3

CASH BASIS PERFORMANCE EXCLUDING
NONRECURRING ITEMS (1)(4)
Earnings excluding nonrecurring items	$	311,951		$	304,526		$	300,643		$	285,243		$	278,753
Diluted earnings per share		.67			.66			.65			.62			.61
Return on average tangible assets		1.80	%		1.73	%		1.73	%		1.72	%		1.71	%
Return on average tangible equity		23.46			22.87			23.57			24.00			24.23
Return on average realized tangible equity (2)		24.82			24.81			24.94			24.91			25.09
Efficiency ratio (taxable equivalent) (3)		50.1			48.6			49.6			50.2			49.8


NOTES:		Applicable ratios are annualized.
	(1)	Net nonrecurring items totaled $.4 million, $9.8 million, $61.5 million, $30.2 million and $24.9 million, net of tax, for the quarters ended March 31, 2002, December 31, 2001, September 30, 2001, June 30, 2001 and March 31, 2001, respectively.

	(2)	Excludes the effect on average shareholders' equity of unrealized gains (losses) on securities available for sale.
	(3)	Excludes securities gains (losses), foreclosed property expense, provisions for the impairment of mortgage servicing rights and nonrecurring items.
	(4)	Cash basis performance excludes the effect on earnings of amortization expense applicable to intangible assets and the unamortized balances of intangibles from assets and equity


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)	3/31/02			12/31/01			9/30/01			6/30/01			3/31/01

SELECTED BALANCE SHEET DATA
End of period balances
Securities available for sale	$	17,515,228		$	16,621,684		$	16,679,755		$	15,370,474		$	15,244,516
Securities held to maturity		44,189			40,496			38,379			308,846			438,199
Trading securities		143,976			97,675			116,523			120,381			187,218
Total securities		17,703,393			16,759,855			16,834,657			15,799,701			15,869,933
Commercial loans & leases		28,139,248			25,959,142			25,532,901			25,102,074			24,587,877
Consumer loans		11,962,560			11,214,193			11,278,277			11,228,486			11,124,471
Revolving credit loans		953,956			951,319			908,868			892,969			860,396
Mortgage loans		9,100,813			9,318,519			9,429,390			9,803,743			9,588,919
Total loans & leases		50,156,577			47,443,173			47,149,436			47,027,272			46,161,663
Allowance for loan & lease losses		705,905			644,418			634,552			610,171			601,788
Other earning assets		333,035			360,789			370,912			506,263			532,472
Total earning assets		67,924,614			64,087,088			63,685,851			62,923,591			62,153,135
Total assets		74,949,720			70,869,945			70,309,046			68,811,370			67,859,827
Noninterest-bearing deposits		7,142,729			6,939,640			6,356,051			6,419,145			6,096,581
Savings & interest checking		3,287,663			3,013,702			3,094,104			3,263,459			3,295,178
Money rate savings		14,894,883			13,902,088			13,156,255			12,768,711			12,481,532
CDs and other time deposits		23,145,964			20,877,845			22,607,819			22,499,458			22,056,193
Total deposits		48,471,239			44,733,275			45,214,229			44,950,773			43,929,484
Short-term borrowed funds		6,043,367			6,649,100			5,923,442			5,704,614			6,001,435
Long-term debt		11,444,091			11,721,076			11,408,329			10,864,249			10,912,235
Total interest-bearing liabilities		58,815,968			56,163,811			56,189,949			55,100,491			54,746,573
Total shareholders' equity		7,055,418			6,150,209			5,969,828			5,855,699			5,624,614
Goodwill		1,463,532			879,903			792,689			804,916			797,494
Core deposit & other intangibles		104,411			54,456			42,950			41,721			43,030
Total intangibles		1,567,943			934,359			835,639			846,637			840,524
Mortgage servicing rights		386,386			359,037			340,746			295,527			237,978
Negative goodwill	$	--		$	9,780		$	10,465		$	11,143		$	12,704

Average balances
Securities, at amortized cost	$	16,482,625		$	16,239,595		$	16,015,660		$	15,542,138		$	15,742,659
Commercial loans & leases		26,352,170			25,801,611			25,497,844			25,083,430			24,655,245
Consumer loans		11,387,897			11,249,000			11,278,665			11,112,264			11,021,870
Revolving credit loans		944,465			919,501			897,121			871,586			851,899
Mortgage loans		9,148,681			9,452,120			9,510,234			9,348,150			8,770,706
Total loans & leases		47,833,213			47,422,232			47,183,864			46,415,430			45,299,720
Other earning assets		454,518			354,614			437,959			453,386			478,978
Total earning assets		64,770,356			64,016,441			63,637,483			62,410,954			61,521,357
Total assets		71,481,681			70,610,330			69,590,582			68,087,219			66,955,391
Noninterest-bearing deposits		6,498,552			6,560,631			6,319,783			6,119,524			5,817,639
Savings & interest checking		3,201,268			3,240,975			3,313,821			3,398,441			3,496,877
Money rate savings		13,721,226			13,208,472			12,654,015			12,371,408			11,756,965
CDs and other time deposits		22,276,868			21,864,320			22,237,050			22,628,040			21,956,161
Total deposits		45,697,914			44,874,398			44,524,669			44,517,413			43,027,642
Short-term borrowed funds		5,930,689			6,427,523			6,451,865			5,572,755			6,604,135
Long-term debt		11,572,254			11,492,851			11,174,903			10,975,583			10,465,027
Total interest-bearing liabilities		56,702,305			56,234,141			55,831,654			54,946,227			54,279,165
Total shareholders' equity	$	6,469,084		$	6,150,335		$	5,903,303		$	5,659,565		$	5,487,154

RISK-BASED CAPITAL (1)
Risk-based capital:
Tier 1	$	5,371,990		$	5,002,896		$	4,829,647		$	4,828,028		$	4,628,313
Total		7,201,714			6,796,958			6,613,329			5,950,114			5,860,999
Risk-weighted assets		53,800,991			50,972,300			50,130,294			49,587,717			48,396,432
Average quarterly tangible assets		69,705,579			69,262,888			68,411,234			67,464,682			65,781,373
Risk-based capital ratios:
Tier 1		10.0	%		9.8	%		9.6	%		9.7	%		9.6	%
Total		13.4			13.3			13.2			12.0			12.1
Leverage capital ratio		7.7			7.2			7.1			7.2			7.0


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


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)	3/31/02			12/31/01			9/30/01			6/30/01			3/31/01

ASSET QUALITY ANALYSIS
Allowance For Loan & Lease Losses
Beginning balance	$	644,418		$	634,552		$	610,171		$	601,788		$	578,107
Allowance for acquired loans, net		61,177			9,047			--			9,470			10,566
Provision for loan & lease losses		56,500			65,000			68,500			48,798			42,020
Charge-offs		(67,206	)		(76,082	)		(54,885	)		(59,750	)		(40,512	)
Recoveries		11,016			11,901			10,766			9,865			11,607

Net charge-offs		(56,190	)		(64,181	)		(44,119	)		(49,885	)		(28,905	)

Ending balance	$	705,905		$	644,418		$	634,552		$	610,171		$	601,788

Nonperforming Assets
Nonaccrual loans & leases	$	354,916		$	316,607		$	266,384		$	244,711		$	203,710
Foreclosed real estate		46,687			39,106			34,601			27,725			41,132
Other foreclosed property		20,734			17,858			17,733			20,494			22,946
Restructured loans		--			--			183			521			2,574

Nonperforming assets	$	422,337		$	373,571		$	318,901		$	293,451		$	270,362

Loans 90 days or more past due
& still accruing	$	100,962		$	101,778		$	93,968		$	84,399		$	83,001
Loans 90 days or more past due & still accruing
as a percentage of total loans and leases		.20	%		.21	%		.20	%		.18	%		.18	%

Asset Quality Ratios
Nonaccrual and restructured loans & leases
as a percentage of total loans & leases		.71	%		.67	%		.57	%		.52	%		.45	%
Nonperforming assets as a percentage of:
Total assets		.56			.53			.45			.43			.40
Loans & leases plus
foreclosed property		.84			.79			.68			.62			.58
Net charge-offs as a percentage of
average loans & leases		.48			.54			.37			.43			.26
Net charge-offs excluding specialized
lending as a percentage of average
loans & leases (1)		.37			.46			.30			.37			.20
Allowance for loan & lease losses as
a percentage of loans & leases		1.41			1.36			1.35			1.30			1.30
Ratio of allowance for loan & lease losses to:
Net charge-offs		3.10	x		2.53	x		3.63	x		3.05	x		5.13	x
Nonaccrual and restructured loans & leases		1.99			2.04			2.38			2.49			2.92

	For the Quarter Ended

	3/31/02			12/31/01			9/30/01			6/30/01			3/31/01

ANNUALIZED INTEREST YIELDS / RATES (2)
Interest income:
Securities & other		6.49	%		6.77	%		6.87	%		7.09	%		7.20	%
Loans & leases		7.14			7.52			8.24			8.63			9.19

Total earning assets		6.97			7.33			7.88			8.23			8.66

Interest expense:
Interest-bearing deposits		2.69			3.27			3.96			4.41			4.88
Short-term borrowed funds		1.81			2.19			3.44			4.19			5.45
Long-term debt		5.19			5.27			5.49			5.60			5.79

Total interest-bearing liabilities		3.10			3.55			4.21			4.62			5.12

Net yield on earning assets		4.26	%		4.20	%		4.19	%		4.16	%		4.14	%


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.


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

	For the Three Months Ended				Increase (Decrease)

(Dollars in thousands)	3/31/02		3/31/01		$			%

SELECTED BALANCES EXCLUDING PURCHASE ACQUISITIONS (1)
Average Balances
Commercial loans & leases	$	27,969,607	$	26,519,614	$	1,449,993			5.5	%
Consumer loans		11,884,736		11,742,611		142,125			1.2
Revolving credit loans		963,688		882,230		81,458			9.2
Mortgage loans (2)		10,239,377		10,241,732		(2,355	)		--
Total loans & leases		51,057,408		49,386,187		1,671,221			3.4
Noninterest-bearing deposits (3)		7,165,204		6,457,941		707,263			11.0
Interest-bearing transaction accounts		17,987,496		16,585,341		1,402,155			8.5
CD's and other time deposits		23,612,089		24,272,245		(660,156	)		(2.7	)
Total deposits	$	48,764,789	$	47,315,527	$	1,449,262			3.1	%

	For the Three Months Ended				Increase (Decrease)

(Dollars in thousands)	3/31/02		3/31/01		$			%

SELECTED RECURRING INCOME STATEMENT ITEMS
EXCLUDING PURCHASE ACQUISITIONS (1)
Net interest income - taxable equivalent	$	669,208	$	634,405	$	34,803			5.5	%
Noninterest income
Service charges on deposits		88,212		79,452		8,760			11.0
Mortgage banking income (4)		49,939		41,192		8,747			21.2
Investment banking & brokerage fees & commissions		52,772		43,708		9,064			20.7
Trust revenue		22,192		25,076		(2,884	)		(11.5	)
Agency insurance commissions		46,685		41,953		4,732			11.3
Other insurance commissions		3,398		2,840		558			19.6
Other nondeposit fees & commissions		43,253		44,549		(1,296	)		(2.9	)
Securities gains (losses), net (4)		13,413		3,632		9,781			NM
Other income		31,955		23,479		8,476			36.1
Total noninterest income		351,819		305,881		45,938			15.0
Noninterest expense
Personnel expense		286,128		274,309		11,819			4.3
Occupancy & equipment expense		81,035		75,172		5,863			7.8
Other noninterest expense		137,486		135,161		2,325			1.7
Total noninterest expense	$	504,649	$	484,642	$	20,007			4.1	%


NOTES:	(1)	Amounts adjusted to exclude growth that resulted from the timing of acquisitions purchased during 2002 and 2001.
	(2)	Excludes the impact of mortgage loan securitization programs in 2001.
	(3)	Excludes the impact of the outsourcing of official checks in both 2002 and 2001.
	(4)	Mortgage banking income includes a $9.8 million provision for the impairment of mortgage servicing rights in the 1st quarter of 2002. Securities gains (losses), net also includes a $9.8 million gain to offset this provision

	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: April 11, 2002