EX-99.1 2 exhibit991.htm Exhibit 99.1

April 20, 2006

FOR IMMEDIATE RELEASE

Contacts:    
ANALYSTS MEDIA
Tom Nicholson Chris Henson Bob Denham
Executive Vice President Senior Executive Vice President Senior Vice President
Investor Relations Chief Financial Officer Public Relations
(336) 733-3058 (336) 733-3008 (910) 914-9073

BB&T’s 1st quarter EPS totals $.79, up 11.3%

          WINSTON-SALEM, N.C. — BB&T Corporation (NYSE: BBT) reported today net income for the first quarter of 2006 totaling $431.5 million, or $.79 per diluted share, compared with $395.4 million, or $.71 per diluted share, earned during the first quarter of 2005. These results reflect increases of 9.1% and 11.3%, respectively, compared to the first quarter last year.

          BB&T’s first quarter net income produced annualized returns on average assets and average shareholders’ equity of 1.60% and 15.72%, respectively, compared to prior year returns of 1.60% and 14.70%, respectively.

          Operating earnings for the first quarter of 2006 totaled $427.7 million, or $.79 per diluted share, excluding an $18.3 million after-tax gain from the sale of duplicate facilities, $1.8 million in net after-tax merger-related credits and $16.4 million in after-tax equity-based compensation resulting from the adoption of SFAS 123(R) during the current quarter. Operating earnings for the first quarter of 2005 totaled $393.8 million, excluding $1.6 million in net after-tax merger-related credits. These results reflect increases of 8.6% and 11.3%, respectively, compared to the same period last year.

          Cash basis operating results exclude the unamortized balances of intangibles from assets and shareholders’ equity and exclude the amortization of intangibles, the net amortization of purchase accounting mark-to-market adjustments, merger-related items and nonrecurring items from earnings. Cash basis operating earnings totaled $446.6 million for the first quarter of 2006, an increase of 7.4% compared to the first quarter of 2005. Cash basis operating diluted earnings per share totaled $.82 for the first quarter of 2006, an increase of 9.3% compared to $.75 earned during the same period in 2005. Cash basis operating earnings for the first quarter of 2006 produced annualized returns on average tangible assets and average tangible shareholders’ equity of 1.74% and 28.41%, respectively, compared to prior year returns of 1.76% and 27.00%, respectively.

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          “I am very pleased to report strong results for the first quarter of 2006,” said Chairman and Chief Executive Officer John A. Allison. “The double-digit increase in earnings per share was driven by 10.2% growth in revenues, including a 17.7% increase in noninterest income, continued excellent asset quality, as evidenced by the lowest level of nonperforming assets in over ten years, and very strong combined loan and deposit growth. While expenses also increased significantly compared to the first quarter last year, this growth is consistent with our plan and reflects important investments for the future. Given that our first quarter is usually negatively affected by a number of seasonal factors, I am encouraged that these positive results reflect a very good start to 2006.”

BB&T’s Fee Based Businesses Enjoy Strong Quarterly Growth

          BB&T’s noninterest income generating businesses produced solid growth rates during the first quarter of 2006 compared to 2005. Total noninterest income was $608.2 million for the current quarter, an increase of 17.7% compared with the same period in 2005. This increase includes improved revenues from insurance operations, trust services, investment banking and brokerage fees and commissions, services charges on deposit accounts, other nondeposit fees and commissions and mortgage banking income.

          BB&T’s insurance operations continue to expand through acquisitions and internal growth and are the largest provider of noninterest income. Insurance commissions increased 15.9% to $176.5 million in the current quarter compared with $152.3 million earned during the first quarter last year. This increase was the result of growth in commissions from the sale of property and casualty coverage and improved sales of employee benefits-related insurance products.

          Trust revenues increased 21.7% to $37.0 million in the first quarter of 2006 compared with $30.4 million earned in the first quarter of 2005. This increase was primarily attributable to the merger with Sterling Capital Management LLC, which occurred on April 1, 2005.

          BB&T’s investment banking and brokerage operations enjoyed the strongest quarter in their history, as fees increased 18.0% to $81.3 million compared to $68.9 million earned in the same quarter last year. This increase was primarily driven by growth in revenues from investment banking services and commissions on retail accounts at Scott & Stringfellow.

          Service charges on deposit accounts totaled $131.2 million for the first quarter of 2006, an increase of 8.7% compared to $120.8 million earned in the same quarter last year. This increase was attributable to growth in revenues from overdraft items, which was partially offset by a decline in monthly account service fees due to growth in free checking accounts and free online services.

          Other nondeposit fees and commissions totaled $101.6 million for the first quarter of 2006, an increase of 26.4% compared to the first quarter of 2005. This increase was generated primarily by growth in bankcard fees and debit card related services.

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          Revenues from mortgage banking operations totaled $32.3 million for the first quarter of 2006, an increase of 7.0% compared to the $30.2 million earned in the first quarter last year. This increase was primarily the result of increased revenues from commercial mortgage banking operations, which increased $5.7 million compared to the first quarter of 2005.

Asset Quality Remains Excellent – Nonperforming Assets Improve

          BB&T’s asset quality remains excellent and improved further during the first quarter of 2006. Nonperforming assets, as a percentage of total assets, were .27% at both March 31 and Dec. 31, 2005, compared to .33% at March 31, 2005. Annualized net charge-offs were .26% of average loans and leases for the first quarter of 2006, down from .28% in the first quarter of 2005. Excluding losses incurred by BB&T’s specialized lending subsidiaries, annualized net charge-offs for the current quarter were .13% of average loans and leases compared to .17% in the same quarter last year.

Combined Loan and Deposit Growth Remains Strong

          Average loans and leases totaled $75.4 billion for the first quarter of 2006, reflecting an increase of $6.9 billion, or 10.0% compared to the first quarter of 2005. This increase was composed of growth in average commercial loans and leases, which increased $3.1 billion, or 9.3%, average mortgage loans, which increased $2.2 billion, or 17.5%, average consumer loans, which increased $1.0 billion, or 5.1% and growth in average loans originated by BB&T’s specialized lending subsidiaries, which increased $530.9 million, or 22.9% compared to the first quarter last year.

          Average deposits totaled $74.2 billion for the first quarter of 2006, an increase of 10.2% compared to $67.3 billion for the first quarter of 2005. Average retail deposit growth was led by client certificates of deposit, which increased $2.5 billion, or 14.1%, and interest checking, which increased $247 million, or 14.9%. During the first quarter of 2006, BB&T’s banking network generated more than 49,000 net new transaction accounts.

S&P Announces Credit Ratings Upgrade for BB&T

          On Feb. 28, Standard & Poor’s (“S&P”) announced that it had raised all of the key ratings for BB&T Corporation and its subsidiary banks, including BB&T’s long-term credit rating, which was raised to A+ from A. S&P stated that “The ratings upgrade acknowledges the company’s good profitability, improving funding profile, strong asset quality and robust capital levels. The ratings also reflect the Company’s solid business profile, which blends an equal mix of retail and commercial product lines, and the benefits it derives from operating in diverse and fast-growing markets in the Southeast.” Additionally, S&P stated, “We expect the company’s financial performance and its balance sheet to remain strong as management continues to expand the company’s geographic and business franchise.”

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BB&T Re-Launches Brand and Introduces New Tagline

          On March 9, BB&T initiated a major new advertising campaign to introduce its new brand positioning and new tagline — “There’s opportunity here.” The campaign represents a significant new commitment to advertising the BB&T brand and BB&T’s products, services and community banking model, particularly in the Company’s new markets.

BB&T Expands Automobile-Lending Business with Acquisition of FSB Financial

           On Feb. 16, BB&T announced plans to acquire the assets of nonprime automobile finance company, FSB Financial Ltd., of Arlington, Texas. FSB Financial buys nonprime automobile lending portfolios from banks, credit unions and finance companies across the country. FSB Financial merged into Regional Acceptance Corporation, BB&T’s wholly owned nonprime automobile finance subsidiary on March 1.

          At March 31, BB&T had $110.0 billion in assets and operated more than 1,400 banking offices in the Carolinas, Virginia, West Virginia, Kentucky, Georgia, Maryland, Tennessee, Florida, 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 19 was $40.10 per share.

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

Earnings Webcast

          To hear a live webcast of BB&T’s first quarter 2006 earnings conference call at 11:00 a.m. (EDT) today, please visit our Web site at www.BBT.com. Replays of the conference call will be available through our Web site until 5 p.m. (EDT) on May 5.

#

          This press release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). BB&T’s management uses these “non-GAAP” measures in their analysis of the Corporation’s performance. Non-GAAP measures typically adjust GAAP performance measures to exclude the effects of charges, expenses and gains related to the consummation of mergers and acquisitions, and costs related to the integration of merged entities, as well as the amortization of intangibles and purchase accounting mark-to-market adjustments in the case of “cash basis” performance measures. These non-GAAP measures also exclude equity-based compensation in order to make the 2006 results comparable with prior periods presented and may also exclude other significant gains, losses or expenses that are unusual in nature and not expected to recur. Since these items and their impact on BB&T’s performance are difficult to predict, management believes presentations of financial measures excluding the impact of these items provide useful supplemental information that is important for a proper understanding of the operating results of BB&T’s core businesses. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

          This press release contains certain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These statements may address issues that involve significant risks, uncertainties, estimates and assumptions made by management. Actual results may 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 may 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 Nicholson    
BB&T Corporation (NYSE:BBT)   Executive 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) 3/31/06 3/31/05 $ %
OPERATING EARNINGS STATEMENTS (1)        
    Interest income - taxable equivalent     $ 1,578,012   $ 1,263,654   $ 314,358     24.9  %
    Interest expense       658,618     394,309     264,309     67.0  
     Net interest income - taxable equivalent       919,394     869,345     50,049     5.8  
    Less: Taxable equivalent adjustment       21,342     20,162     1,180     5.9  
     Net interest income       898,052     849,183     48,869     5.8  
    Provision for credit losses       47,571     41,045     6,526     15.9  
     Net interest income after provision for credit losses       850,481     808,138     42,343     5.2  
    Noninterest income       608,195     516,621     91,574     17.7  
    Noninterest expense       823,831     733,263     90,568     12.4  
    Operating earnings before income taxes       634,845     591,496     43,349     7.3  
    Provision for income taxes       207,156     197,739     9,417     4.8  
     Operating earnings (1)     $ 427,689   $ 393,757   $ 33,932     8.6  %
PER SHARE DATA BASED ON OPERATING EARNINGS (1)    
    Basic earnings     $ .79   $ .72   $ .07     9.7  %
    Diluted earnings       .79     .71     .08     11.3  
    Weighted average shares -  Basic       539,952,669     549,282,008        
                                            Diluted       543,435,830     553,654,679  
    Dividends paid per share     $ .38   $ .35   $ .03     8.6  %
PERFORMANCE RATIOS BASED ON OPERATING EARNINGS (1)    
    Return on average assets       1.59  %   1.59  %            
    Return on average equity       15.58     14.64  
    Net yield on earning assets (taxable equivalent)       3.82     3.95  
    Efficiency ratio (taxable equivalent) (2)       53.8     52.9  
CASH BASIS PERFORMANCE    
    BASED ON OPERATING EARNINGS (1)(3)    
    Cash basis operating earnings     $ 446,648   $ 415,829   $ 30,819     7.4  %
    Diluted earnings per share       .82     .75     .07     9.3  
    Return on average tangible assets       1.74  %   1.76  %            
    Return on average tangible equity       28.41     27.00  
    Efficiency ratio (taxable equivalent) (2)       52.0     50.6  

For the Three Months Ended Increase (Decrease)
(Dollars in thousands, except per share data) 3/31/06 3/31/05 $ %
INCOME STATEMENTS        
    Interest income     $ 1,556,670   $ 1,243,492   $ 313,178     25.2  %
    Interest expense       658,618     394,309     264,309     67.0  
     Net interest income       898,052     849,183     48,869     5.8  
    Provision for credit losses       47,571     41,045     6,526     15.9  
     Net interest income after provision for credit losses       850,481     808,138     42,343     5.2  
    Noninterest income       608,195     516,621     91,574     17.7  
    Noninterest expense       819,181     730,706     88,475     12.1  
    Income before income taxes       639,495     594,053     45,442     7.6  
    Provision for income taxes       207,982     198,669     9,313     4.7  
       Net income     $ 431,513   $ 395,384   $ 36,129     9.1  %
PER SHARE DATA    
    Basic earnings     $ .80   $ .72   $ .08     11.1  %
    Diluted earnings       .79     .71     .08     11.3  
    Weighted average shares -  Basic       539,952,669   549,282,008        
                                            Diluted       543,435,830     553,654,679  
PERFORMANCE RATIOS BASED ON NET INCOME    
    Return on average assets       1.60  %   1.60  %            
    Return on average equity       15.72     14.70  
    Efficiency ratio (taxable equivalent) (2)       53.5     52.7  

NOTES:       Applicable ratios are annualized.  
   (1)  Operating earnings exclude the effect of merger-related charges or credits, equity-based compensation and nonrecurring items. These amounts totaled $(3.8 million) and $(1.6 million), net of tax, in the first quarters of 2006 and 2005, respectively. See Reconciliation Tables included herein.  
   (2)  Excludes securities gains (losses), foreclosed property expense, increases or decreases in the valuation of mortgage servicing rights, and gains or losses on mortgage servicing rights-related derivatives. Cash basis and operating ratios also exclude merger-related charges or credits, equity-based compensation and nonrecurring items, where applicable. See Reconciliation Tables included herein. 
   (3)  Cash basis performance information excludes the effect on earnings of amortization expense applicable to intangible assets, the unamortized balances of intangibles from assets and equity, and the net amortization of purchase accounting mark-to-market adjustments. See Reconciliation Tables included herein. 
 
QUARTERLY PERFORMANCE SUMMARY   Tom Nicholson    
BB&T Corporation (NYSE:BBT)   Executive 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) 3/31/06 3/31/05 $ %
CONSOLIDATED BALANCE SHEETS        
End of period balances        
Cash and due from banks     $ 1,933,456   $ 1,761,610   $ 171,846     9.8  %
Interest-bearing deposits with banks       372,336     291,293     81,043     27.8  
Federal funds sold and other earning assets       444,502     275,213     169,289     61.5  
 
Securities available for sale       19,433,575     19,562,488     (128,913 )   (.7 )
Trading securities       745,169     478,661     266,508     55.7  
 
  Total securities       20,178,744     20,041,149     137,595     .7  
 
Commercial loans and leases       37,191,415     34,144,061     3,047,354     8.9  
Direct retail loans       14,543,073     13,746,284     796,789     5.8  
Sales finance loans       5,176,673     5,083,149     93,524     1.8  
Revolving credit loans       1,299,396     1,236,693     62,703     5.1  
Mortgage loans       15,036,187     12,772,935     2,263,252     17.7  
Specialized lending       3,032,538     2,404,810     627,728     26.1  
 
  Total loans and leases       76,279,282     69,387,932     6,891,350     9.9  
 
Allowance for loan and lease losses       833,231     801,573     31,658     3.9  
 
  Total earning assets       97,984,757     90,424,985     7,559,772     8.4  
 
Premises and equipment, net       1,267,647     1,274,167     (6,520 )   (.5 )
Goodwill       4,300,396     4,163,108     137,288     3.3  
Core deposit and other intangibles       479,231     507,692     (28,461 )   (5.6 )
Other assets       5,611,326     5,114,495     496,831     9.7  
 
  Total assets       110,033,689     102,015,086     8,018,603     7.9  
 
Noninterest-bearing deposits       13,413,099     12,646,753     766,346     6.1  
Interest checking       1,338,847     1,277,754     61,093     4.8  
Other client deposits       32,074,100     30,232,014     1,842,086     6.1  
Client CDs       20,352,627     17,359,019     2,993,608     17.2  
Other interest-bearing deposits       8,385,456     5,320,799     3,064,657     57.6  
 
  Total deposits       75,564,129     66,836,339     8,727,790     13.1  
 
Fed funds purchased, repos and other borrowings       6,356,330     9,152,099     (2,795,769 )   (30.5 )
Long-term debt       13,045,058     11,126,988     1,918,070     17.2  
 
  Total interest-bearing liabilities       81,552,418     74,468,672     7,083,746     9.5  
 
Other liabilities       4,098,200     4,074,376     23,824     .6  
  Total liabilities       99,063,717     91,189,802     7,873,915     8.6  
  Total shareholders' equity     $ 10,969,972   $ 10,825,284   $ 144,688     1.3  %
Average balances    
 
Securities, at amortized cost     $ 20,955,014   $ 19,607,324   $ 1,347,690     6.9  %
 
Commercial loans and leases       36,897,691     33,772,824     3,124,867     9.3  
Direct retail loans       14,498,280     13,653,410     844,870     6.2  
Sales finance loans       5,215,937     5,105,891     110,046     2.2  
Revolving credit loans       1,316,837     1,252,297     64,540     5.2  
Mortgage loans       14,664,573     12,475,302     2,189,271     17.5  
Specialized lending       2,849,331     2,318,414     530,917     22.9  
 
  Total loans and leases       75,442,649     68,578,138     6,864,511     10.0  
 
Allowance for loan and lease losses       827,863     808,470     19,393     2.4  
Other earning assets       777,594     620,364     157,230     25.3  
 
  Total earning assets       97,175,257     88,805,826     8,369,431     9.4  
 
  Total assets       109,132,162     100,478,992     8,653,170     8.6  
 
Noninterest-bearing deposits       12,851,943     12,238,571     613,372     5.0  
Interest checking       1,905,570     1,658,639     246,931     14.9  
Other client deposits       30,687,180     29,796,666     890,514     3.0  
Client CDs       19,896,614     17,440,368     2,456,246     14.1  
Other interest-bearing deposits       8,858,068     6,187,310     2,670,758     43.2  
 
  Total deposits       74,199,375     67,321,554     6,877,821     10.2  
 
Fed funds purchased, repos and other borrowings       6,684,788     7,085,742     (400,954 )   (5.7 )
Long-term debt       13,111,268     11,390,424     1,720,844     15.1  
  Total interest-bearing liabilities       81,143,488     73,559,149     7,584,339     10.3  
  Total shareholders' equity     $ 11,134,096   $ 10,904,662   $ 229,434     2.1  %


    As of / For the Quarter Ended
(Dollars in thousands, except per share data)   3/31/06 12/31/05 9/30/05 6/30/05 3/31/05
MISCELLANEOUS INFORMATION            
             
Unrealized depreciation on            
  securities available for sale, net of tax           $ (449,770 ) $ (337,578 ) $ (266,690 ) $ (109,439 ) $ (270,708 )
Derivatives (notional value)             21,133,941     23,679,972     26,131,167     25,976,092     30,496,627  
Fair value of derivatives portfolio           (134,558 )   (10,600 )   (1,869 )   157,437     39,680  
Common stock prices:       High     42.85     43.92     43.00     40.95     42.24  
        Low     38.24   37.39   38.56   37.04   37.68
        End of period     39.20   41.91   39.05   39.97   39.08
Weighted average shares -       Basic     539,952,669     543,879,921     547,467,864     547,089,165     549,282,008  
        Diluted     543,435,830     548,607,865   552,058,757     551,245,112     553,654,679  
End of period shares outstanding             535,588,093     543,102,080     548,051,351     546,796,870     548,638,822  
End of period banking offices             1,409     1,404     1,402     1,407     1,409  
ATMs             1,964     1,951     1,944     1,929     1,930  
FTEs             28,300     27,745     27,080     26,945     26,526  

NOTES:   All items referring to loans and leases include loans held for sale and are net of unearned income.  
 
QUARTERLY PERFORMANCE SUMMARY   Tom Nicholson    
BB&T Corporation (NYSE:BBT)   Executive 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) 3/31/06 12/31/05 9/30/05 6/30/05 3/31/05
OPERATING EARNINGS STATEMENTS (1)          
    Interest income - taxable equivalent          
    Interest and fees on loans and leases     $ 1,341,049   $ 1,290,568   $ 1,227,374   $ 1,135,417   $ 1,059,777  
    Interest and dividends on securities       229,743     223,240     217,507     212,613     199,994  
    Interest on short-term investments       7,220     6,609     6,331     5,186     3,883  
      Total interest income - taxable equivalent       1,578,012     1,520,417     1,451,212     1,353,216     1,263,654  
    Interest expense    
    Interest on deposits       438,420     387,763     343,489     279,283     241,299  
    Interest on fed funds purchased, repos and other borrowings       65,081     65,371     58,169     58,546     42,466  
    Interest on long-term debt       155,117     146,350     129,799     117,890     110,544  
      Total interest expense       658,618     599,484     531,457     455,719     394,309  
    Net interest income - taxable equivalent       919,394     920,933     919,755     897,497     869,345  
    Less: Taxable equivalent adjustment       21,342     21,200     20,763     20,532     20,162  
      Net interest income       898,052     899,733     898,992     876,965     849,183  
    Provision for credit losses       47,571     69,329     57,465     49,424     41,045  
      Net interest income after provision for    
        credit losses       850,481     830,404     841,527     827,541     808,138  
    Noninterest income    
    Insurance commissions       176,512     197,372     182,915     181,612     152,290  
    Service charges on deposits       131,241     141,645     141,072     139,166     120,772  
    Other nondeposit fees and commissions       101,635     100,157     97,208     91,558     80,382  
    Investment banking and brokerage fees and commissions       81,311     69,682     70,036     81,046     68,883  
    Trust revenue       37,020     36,949     36,552     36,722     30,407  
    Mortgage banking income       32,295     25,357     35,840     12,367     30,193  
    Securities gains (losses), net       2     (81 )   193     (6 )   7  
    Other noninterest income       48,179     47,881     41,304     41,437     33,687  
      Total noninterest income       608,195     618,962     605,120     583,902     516,621  
    Noninterest expense    
    Personnel expense       487,467     468,098     451,260     450,730     415,116  
    Occupancy and equipment expense       107,785     112,018     105,656     104,122     105,744  
    Foreclosed property expense       3,912     5,809     6,322     5,327     5,718  
    Amortization of intangibles       25,108     29,054     26,540     28,611     28,102  
    Loss on early extinguishment of debt       —     —     —     2,943     —  
    Other noninterest expense       199,559     209,008     198,522     196,001     178,583  
      Total noninterest expense       823,831     823,987     788,300     787,734     733,263  
    Operating earnings before income taxes       634,845     625,379     658,347     623,709     591,496  
    Provision for income taxes       207,156     199,576     217,471     210,534     197,739  
      Operating earnings (1)     $ 427,689   $ 425,803   $ 440,876   $ 413,175   $ 393,757  
PER SHARE DATA BASED ON    
    OPERATING EARNINGS (1)    
    Basic earnings     $ .79   $ .78   $ .81   $ .76   $ .72  
    Diluted earnings       .79     .78     .80     .75     .71  
    Dividends paid per share       .38     .38     .38     .35     .35  
PERFORMANCE RATIOS BASED ON    
    OPERATING EARNINGS (1)    
    Return on average assets       1.59  %   1.57  %   1.64  %   1.60  %   1.59  %
    Return on average equity       15.58     15.18     15.65     15.00     14.64  
    Net yield on earning assets (taxable equivalent)       3.82     3.82     3.88     3.92     3.95  
    Efficiency ratio (taxable equivalent) (2)       53.8     53.0     51.7     52.5     52.9  
    Noninterest income as a percentage of    
      total income (taxable equivalent) (2)       39.7     40.3     39.2     39.8     36.8  
    Average earning assets as a percentage of    
      average total assets       89.0     88.9     88.7     88.4     88.4  
    Average loans and leases as a percentage of    
      average deposits       101.7     101.9     100.9     102.1     101.9  
CASH BASIS PERFORMANCE BASED ON    
    OPERATING EARNINGS (1) (3)    
    Cash basis operating earnings     $ 446,648   $ 448,866   $ 462,350   $ 435,959   $ 415,829  
    Diluted earnings per share       .82     .82     .84     .79     .75  
    Return on average tangible assets       1.74  %   1.73  %   1.81  %   1.77  %   1.76  %
    Return on average tangible equity       28.41     27.88     28.56     27.82     27.00  
    Efficiency ratio (taxable equivalent) (2)       52.0     50.9     49.7     50.3     50.6  

NOTES:       Applicable ratios are annualized.  
   (1)  Operating earnings exclude the effect of merger-related charges or credits, equity-based compensation and nonrecurring items. These amounts totaled $(3.8 million), $(3.8 million), $(1.1 million), $26.4 million, and $(1.6 million), net of tax, for the quarters ended March 31, 2006, December 31, 2005, September 30, 2005, June 30, 2005 and March 31, 2005, respectively. See Reconciliation Tables included herein. 
   (2)  Excludes securities gains (losses), foreclosed property expense, increases or decreases in the valuation of mortgage servicing rights, and gains or losses on mortgage servicing rights-related derivatives. Cash basis and operating ratios also exclude merger-related charges or credits, equity-based compensation and nonrecurring items, where applicable. See Reconciliation Tables included herein. 
   (3)  Cash basis operating performance information excludes the effect on earnings of amortization expense applicable to intangible assets, the unamortized balances of intangibles from assets and equity, and the net amortization of purchase accounting mark-to-market adjustments. See Reconciliation Tables included herein. 
 
QUARTERLY PERFORMANCE SUMMARY   Tom Nicholson    
BB&T Corporation (NYSE:BBT)   Executive 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) 3/31/06 12/31/05 9/30/05 6/30/05 3/31/05
INCOME STATEMENTS          
    Interest income          
    Interest and fees on loans and leases     $ 1,333,545   $ 1,283,225   $ 1,220,102   $ 1,128,331   $ 1,052,821  
    Interest and dividends on securities       215,905     209,383     204,016     199,167     186,788  
    Interest on short-term investments       7,220     6,609     6,331     5,186     3,883  
      Total interest income       1,556,670     1,499,217     1,430,449     1,332,684     1,243,492  
    Interest expense    
    Interest on deposits       438,420     387,763     343,489     279,283     241,299  
    Interest on fed funds purchased, repos and other borrowings       65,081     65,371     58,169     58,546     42,466  
    Interest on long-term debt       155,117     146,350     129,799     117,890     110,544  
      Total interest expense       658,618     599,484     531,457     455,719     394,309  
    Net interest income       898,052     899,733     898,992     876,965     849,183  
    Provision for credit losses       47,571     69,329     57,465     49,424     41,045  
      Net interest income after provision for    
        credit losses       850,481     830,404     841,527     827,541     808,138  
    Noninterest income    
    Insurance commissions       176,512     197,372     182,915     181,612     152,290  
    Service charges on deposits       131,241     141,645     141,072     139,166     120,772  
    Other nondeposit fees and commissions       101,635     100,157     97,208     91,558     80,382  
    Investment banking and brokerage fees and commissions       81,311     69,682     70,036     81,046     68,883  
    Trust revenue       37,020     36,949     36,552     36,722     30,407  
    Mortgage banking income       32,295     25,357     35,840     12,367     30,193  
    Securities gains (losses), net       2     (81 )   193     (6 )   7  
    Other noninterest income       48,179     47,881     41,304     42,454     33,687  
      Total noninterest income       608,195     618,962     605,120     584,919     516,621  
    Noninterest expense    
    Personnel expense       487,467     468,098     451,260     450,730     415,116  
    Equity-based compensation       26,532     —     —     —     —  
    Occupancy and equipment expense       107,785     112,018     105,656     148,080     105,744  
    Foreclosed property expense       3,912     5,809     6,322     5,327     5,718  
    Amortization of intangibles       25,108     29,054     26,540     28,611     28,102  
    Merger-related and restructuring charges or credits       (2,976 )   (5,956 )   (1,824 )   (404 )   (2,557 )
    Loss on early extinguishment of debt       —     —     —     2,943     —  
    Other noninterest expense       171,353     209,008     198,522     196,001     178,583  
      Total noninterest expense       819,181     818,031     786,476     831,288     730,706  
    Income before income taxes       639,495     631,335     660,171     581,172     594,053  
    Provision for income taxes       207,982     201,761     218,165     194,367     198,669  
      Net income     $ 431,513   $ 429,574   $ 442,006   $ 386,805   $ 395,384  
PER SHARE DATA    
    Basic earnings     $ .80   $ .79   $ .81   $ .71   $ .72  
    Diluted earnings       .79     .78     .80     .70     .71  

  For the Quarter Ended
  3/31/06 12/31/05 9/30/05 6/30/05 3/31/05
ANNUALIZED INTEREST YIELDS / RATES (1)          
Interest income:          
    Securities:    
      U.S. Treasury securities       3.11  %   2.95  %   2.94  %   3.11  %   3.20  %
      U.S. government-sponsored entity securities       3.95     3.87     3.75     3.76     3.76  
      Mortgage-backed securities       4.81     4.76     4.73     4.72     4.66  
      States and political subdivisions       6.82     6.81     6.74     6.66     6.71  
      Other securities       6.01     5.41     4.96     4.87     4.41  
      Trading securities       3.70     3.17     2.82     2.05     2.43  
        Total securities       4.39     4.29     4.18     4.13     4.08  
    Loans:    
      Commercial loans and leases       7.39     7.01     6.71     6.33     5.93  
      Consumer loans       6.95     6.69     6.54     6.37     6.31  
      Mortgage loans       5.50     5.46     5.45     5.42     5.43  
      Specialized lending       15.14     14.63     14.69     14.60     14.82  
        Total loans       7.19     6.90     6.71     6.47     6.25  
    Other earning assets       3.76     3.29     3.16     3.16     2.54  
          Total earning assets       6.56     6.30     6.12     5.92     5.75  
Interest expense:    
    Interest-bearing deposits:    
      Interest checking       1.38     1.13     .78     .68     .58  
      Other client deposits       2.03     1.80     1.61     1.37     1.25  
      Client CDs       3.66     3.29     3.03     2.73     2.53  
      Other interest-bearing deposits       4.54     4.03     3.47     3.09     2.50  
        Total interest-bearing deposits       2.90     2.58     2.31     1.99     1.78  
        Fed funds purchased, repos and other borrowings       3.95     3.64     3.24     2.86     2.43  
        Long-term debt       4.77     4.58     4.26     4.07     3.92  
          Total interest-bearing liabilities       3.29     3.00     2.70     2.40     2.17  
    Net yield on earning assets       3.82  %   3.82  %   3.88  %   3.92  %   3.95  %

NOTES:  

(1) Fully taxable equivalent yields. Securities yields calculated based on amortized cost.


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

  As of / For the Quarter Ended
(Dollars in thousands, except per share data) 3/31/06 12/31/05 9/30/05 6/30/05 3/31/05
SELECTED BALANCE SHEET DATA          
    End of period balances          
    Securities available for sale     $ 19,433,575   $ 19,782,966   $ 19,817,145   $ 20,123,465   $ 19,562,488  
    Trading securities       745,169     706,518     433,652     675,146     478,661  
      Total securities       20,178,744     20,489,484     20,250,797     20,798,611     20,041,149  
    Commercial loans and leases       37,191,415     36,615,085     35,848,589     35,056,980     34,144,061  
    Direct retail loans       14,543,073     14,452,518     14,279,817     14,094,081     13,746,284  
    Sales finance loans       5,176,673     5,264,088     5,368,126     5,216,027     5,083,149  
    Revolving credit loans       1,299,396     1,347,309     1,294,804     1,271,395     1,236,693  
    Mortgage loans       15,036,187     14,481,561     14,200,691     13,512,617     12,772,935  
    Specialized lending       3,032,538     2,862,927     2,679,818     2,589,516     2,404,810  
      Total loans and leases       76,279,282     75,023,488     73,671,845     71,740,616     69,387,932  
    Allowance for loan and lease losses       833,231     825,300     817,777     809,318     801,573  
    Other earning assets       816,838     730,819     709,478     798,810     566,506  
      Total earning assets       97,984,757     96,777,005     95,054,570     93,512,746     90,424,985  
      Total assets       110,033,689     109,169,759     107,080,153     105,835,324     102,015,086  
    Noninterest-bearing deposits       13,413,099     13,476,939     13,499,106     13,197,792     12,646,753  
    Interest checking       1,338,847     1,426,715     1,414,364     1,512,588     1,277,754  
    Other client deposits       32,074,100     30,959,888     30,135,171     29,642,503     30,232,014  
    Client CDs       20,352,627     19,309,667     18,402,885     17,793,434     17,359,019  
    Other interest-bearing deposits       8,385,456     9,108,590     9,728,748     9,684,042     5,320,799  
      Total deposits       75,564,129     74,281,799     73,180,274     71,830,359     66,836,339  
    Fed funds purchased, repos and other borrowings       6,356,330     6,561,719     6,533,455     7,137,762     9,152,099  
    Long-term debt       13,045,058     13,118,559     12,376,759     11,955,683     11,126,988  
      Total interest-bearing liabilities       81,552,418     80,485,138     78,591,382     77,726,012     74,468,672  
      Total shareholders' equity       10,969,972     11,129,114     11,195,918     11,090,367     10,825,284  
    Goodwill       4,300,396     4,255,998     4,237,451     4,233,719     4,163,108  
    Core deposit and other intangibles       479,231     487,525     503,686     535,965     507,692  
      Total intangibles       4,779,627     4,743,523     4,741,137     4,769,684     4,670,800  
      Mortgage servicing rights     $ 485,307   $ 451,287   $ 414,466   $ 341,676   $ 390,340  
    Average balances    
    Securities, at amortized cost     $ 20,955,014   $ 20,807,541   $ 20,822,997   $ 20,613,680   $ 19,607,324  
    Commercial loans and leases       36,897,691     36,213,607     35,424,216     34,547,569     33,772,824  
    Direct retail loans       14,498,280     14,354,335     14,194,755     13,923,123     13,653,410  
    Sales finance loans       5,215,937     5,316,296     5,313,245     5,122,957     5,105,891  
    Revolving credit loans       1,316,837     1,307,724     1,281,964     1,248,176     1,252,297  
    Mortgage loans       14,664,573     14,381,114     13,869,588     13,052,966     12,475,302  
    Specialized lending       2,849,331     2,741,610     2,630,756     2,490,899     2,318,414  
      Total loans and leases       75,442,649     74,314,686     72,714,524     70,385,690     68,578,138  
    Allowance for loan and lease losses       827,863     818,743     814,934     810,545     808,470  
    Other earning assets       777,594     797,372     795,338     657,433     620,364  
      Total earning assets       97,175,257     95,919,599     94,332,859     91,656,803     88,805,826  
      Total assets       109,132,162     107,844,163     106,360,541     103,663,680     100,478,992  
    Noninterest-bearing deposits       12,851,943     13,343,220     13,144,471     12,771,153     12,238,571  
    Interest checking       1,905,570     1,845,732     1,846,994     1,834,619     1,658,639  
    Other client deposits       30,687,180     30,166,800     29,729,490     29,558,096     29,796,666  
    Client CDs       19,896,614     18,849,059     18,155,972     17,414,006     17,440,368  
    Other interest-bearing deposits       8,858,068     8,743,882     9,215,190     7,364,178     6,187,310  
      Total deposits       74,199,375     72,948,693     72,092,117     68,942,052     67,321,554  
    Fed funds purchased, repos and other borrowings       6,684,788     7,118,752     7,123,027     8,218,309     7,085,742  
    Long-term debt       13,111,268     12,717,191     12,111,140     11,599,714     11,390,424  
      Total interest-bearing liabilities       81,143,488     79,441,416     78,181,813     75,988,922     73,559,149  
      Total shareholders' equity     $ 11,134,096   $ 11,126,630   $ 11,176,928   $ 11,050,089   $ 10,904,662  
SELECTED CAPITAL INFORMATION (1)    
 
    Risk-based capital:    
      Tier 1     $ 7,360,954   $ 7,453,987   $ 7,454,705   $ 6,681,308   $ 6,767,299  
      Total       11,418,033     11,610,547     11,648,384     10,854,492     10,575,173  
    Risk-weighted assets       81,657,414     80,390,559     78,417,224     76,415,717     73,936,837  
    Average quarterly tangible assets       105,038,107     103,741,007     102,009,127     99,316,641     96,134,396  
    Risk-based capital ratios:    
      Tier 1       9.0  %   9.3  %   9.5  %   8.7  %   9.2  %
      Total       14.0     14.4     14.9     14.2     14.3  
    Leverage capital ratio       7.0     7.2     7.3     6.7     7.0  
    Equity as a percentage of total assets       10.0     10.2     10.5     10.5     10.6  
    Book value per share     $ 20.48   $ 20.49   $ 20.43   $ 20.28   $ 19.73  
    Tangible book value per share (2)       11.56     11.76     11.78     11.56     11.22  

NOTES:  

All items referring to loans and leases include loans held for sale and are net of unearned income.


(1)  

Current quarter risk-based capital information is preliminary.


(2)  

Excludes the carrying value of goodwill and other intangible assets from shareholders' equity.


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

  As of / For the Quarter Ended
(Dollars in thousands) 3/31/06 12/31/05 9/30/05 6/30/05 3/31/05
ASSET QUALITY ANALYSIS          
 Allowance For Credit Losses          
  Beginning balance     $ 829,770   $ 830,344   $ 827,325   $ 822,464   $ 828,301  
  Allowance for acquired (sold) loans, net       3,731     (970 )   —     —     —  
  Provision for credit losses       47,571     69,329     57,465     49,424     41,045  
    Charge-offs    
        Commercial loans and leases       (5,407 )   (20,584 )   (7,440 )   (11,818 )   (9,420 )
        Direct retail loans       (10,597 )   (10,293 )   (20,558 )   (8,148 )   (7,449 )
        Sales finance loans       (5,610 )   (8,617 )   (6,874 )   (3,881 )   (7,292 )
        Revolving credit loans       (11,337 )   (15,994 )   (13,179 )   (12,552 )   (12,693 )
        Mortgage loans       (2,095 )   (1,347 )   (1,502 )   (1,728 )   (1,476 )
        Specialized lending       (27,226 )   (26,923 )   (23,190 )   (22,885 )   (21,904 )
    Total charge-offs       (62,272 )   (83,758 )   (72,743 )   (61,012 )   (60,234 )
    Recoveries    
        Commercial loans and leases       3,203     4,550     4,822     4,291     3,415  
        Direct retail loans       3,065     2,653     5,214     2,159     1,848  
        Sales finance loans       1,739     1,866     2,145     2,404     2,468  
        Revolving credit loans       2,743     2,841     2,740     2,737     2,540  
        Mortgage loans       144     162     340     39     95  
        Specialized lending       3,738     2,753     3,036     4,819     2,986  
    Total recoveries       14,632     14,825     18,297     16,449     13,352  
  Net charge-offs       (47,640 )   (68,933 )   (54,446 )   (44,563 )   (46,882 )
  Ending balance     $ 833,432   $ 829,770   $ 830,344   $ 827,325   $ 822,464  
Allowance For Credit Losses    
  Allowance for loan and lease losses     $ 833,231   $ 825,300   $ 817,777   $ 809,318   $ 801,573  
  Reserve for unfunded lending commitments       201     4,470     12,567     18,007     20,891  
    Total     $ 833,432   $ 829,770   $ 830,344   $ 827,325   $ 822,464  
Nonperforming Assets    
  Nonaccrual loans and leases:    
        Commercial loans and leases     $ 109,838   $ 103,804   $ 107,121   $ 110,662   $ 121,613  
        Direct retail loans       42,156     40,916     39,334     37,640     39,198  
        Sales finance loans       3,064     4,640     9,864     9,908     9,702  
        Revolving credit loans       177     233     304     348     266  
        Mortgage loans       49,643     48,126     48,301     49,163     58,576  
        Specialized lending       26,508     31,160     25,648     22,033     25,107  
  Total nonaccrual loans and leases       231,386     228,879     230,572     229,754     254,462  
  Foreclosed real estate       41,341     48,315     51,504     62,036     60,147  
  Other foreclosed property       22,895     22,420     21,692     16,550     18,199  
  Restructured loans       507     515     523     531     537  
    Nonperforming assets     $ 296,129   $ 300,129   $ 304,291   $ 308,871   $ 333,345  
Loans 90 days or more past due    
  and still accruing:    
        Commercial loans and leases     $ 5,727   $ 10,413   $ 5,948   $ 6,040   $ 9,188  
        Direct retail loans       17,686     20,814     18,197     14,718     13,857  
        Sales finance loans       18,347     21,585     16,246     16,015     18,291  
        Revolving credit loans       4,172     4,713     4,840     3,886     4,067  
        Mortgage loans       28,251     38,828     33,385     33,494     31,432  
        Specialized lending       5,050     7,092     5,999     5,164     6,421  
  Total loans 90 days or more past due    
    and still accruing       79,233     103,445     84,615     79,317     83,256  
  Loans 90 days or more past due and still accruing    
    as a percentage of total loans and leases       .10  %   .14  %   .11  %   .11  %   .12  %
Asset Quality Ratios    
  Nonaccrual and restructured loans and leases    
    as a percentage of total loans and leases       .30  %   .31  %   .31  %   .32  %   .37  %
  Nonperforming assets as a percentage of:    
    Total assets       .27     .27     .28     .29     .33  
    Loans and leases plus    
      foreclosed property       .39     .40     .41     .43     .48  
  Net charge-offs as a percentage of    
    average loans and leases       .26     .37     .30     .25     .28  
  Net charge-offs excluding specialized    
    lending as a percentage of average    
    loans and leases (1)       .13     .25     .19     .16     .17  
  Allowance for loan and lease losses as    
    a percentage of loans and leases       1.09     1.10     1.11     1.13     1.16  
  Allowance for loan and lease losses as    
    a percentage of loans and leases    
    held for investment       1.10     1.11     1.12     1.14     1.17  
  Ratio of allowance for loan and lease losses to:    
    Net charge-offs       4.31  x   3.02  x   3.79  x   4.53  x   4.22  x
    Nonaccrual and restructured loans and leases       3.59     3.60     3.54     3.51     3.14  

NOTES:  

All items referring to loans and leases include loans held for sale and are net of unearned income. Applicable ratios are annualized.


(1)  

Excludes net charge-offs and average loans from BB&T's specialized lending subsidiaries.


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

  Percentage Increase (Decrease)
  QTD Annualized Link QTD
  1Q06 vs. 1Q05 1Q06 vs. 4Q05
PERCENTAGE CHANGES IN SELECTED BALANCES ADJUSTED FOR    
  PURCHASE ACQUISITIONS (1)    
  Average Balances    
    Commercial loans and leases       9.3  %   7.7  %
    Direct retail loans       6.2     4.1  
    Sales finance loans       2.2     (7.7 )
    Revolving credit loans       5.2     2.8  
    Mortgage loans (2)       19.2     13.7  
    Specialized lending       21.6     16.2  
      Total loans and leases (2)       10.3     7.3  
 
    Noninterest-bearing deposits       5.0     (14.9 )
    Interest checking       14.9     13.1  
    Other client deposits       3.0     7.0  
    Client CDs       14.1     22.5  
    Other interest-bearing deposits       43.2     5.3  
      Total deposits       10.2  %   7.0  %
 
 
PERCENTAGE CHANGES IN SELECTED INCOME STATEMENT ITEMS    
    BASED ON OPERATING EARNINGS ADJUSTED FOR PURCHASE ACQUISITIONS (1)    
    Net interest income - taxable equivalent       5.3  %   (2.3 ) %
    Noninterest income    
      Insurance commissions       8.7     (44.4 )
      Service charges on deposits       8.7     (29.8 )
      Other nondeposit fees and commissions       26.4     5.9  
      Investment banking and brokerage fees and commissions       13.7     50.4  
      Trust revenue       2.0     0.8  
      Mortgage banking income (3)       43.0     (6.4 )
      Securities gains (losses), net       NM     NM  
      Other income       42.9     2.6  
    Total noninterest income (3)       15.1     (14.0 )
    Noninterest expense    
      Personnel expense       14.7     12.5  
      Occupancy and equipment expense       1.3     (15.1 )
      Other noninterest expense       5.4     (26.5 )
    Total noninterest expense       10.1  %   (2.7 ) %

NOTES:  

All items referring to loans and leases include loans held for sale and are net of unearned income. Applicable ratios are annualized.


(1)  

Adjusted to exclude estimated growth that resulted from the timing of acquisitions during 2006 and 2005.


(2)  

Adjusted for the average impact of $210 million in mortgage loans securitized in the fourth quarter of 2005.


(3)  

Excludes the net impact of valuation adjustments for mortgage servicing rights and gains or losses on mortgage servicing rights-related derivatives.


NM  

- not meaningful.


QUARTERLY PERFORMANCE SUMMARY   Tom Nicholson    
BB&T Corporation (NYSE:BBT)   Executive Vice President   (336) 733-3058  
Page 12   Investor Relations   FAX (336) 733-3132  

  As of / For the Quarter Ended
(Dollars in thousands) 3/31/06 12/31/05 9/30/05 6/30/05 3/31/05
SELECTED MORTGAGE BANKING INFORMATION          
Residential Mortgage Servicing Rights (1)     $ 462,920   $ 431,213   $ 397,908   $ 325,446   $ 376,134  
 
Income Statement Impact of Mortgage Servicing    
Rights Valuation:    
  MSRs fair value increase     $ 28,883   $ —   $ —   $ —   $ —  
  MSRs valuation recaptures (provisions)       —     29,407     66,666     (61,161 )   51,079  
  MSRs derivative hedge (losses) gains       (24,834 )   (32,747 )   (55,632 )   52,030     (40,168 )
    Net     $ 4,049   $ (3,340 ) $ 11,034   $ (9,131 ) $ 10,911  
Residential Mortgage Loan Originations     $ 2,308,835   $ 2,450,434   $ 3,130,026   $ 2,687,824   $ 2,260,384  
 
Residential Mortgage Servicing Portfolio:    
    Loans serviced for others     $ 26,787,683   $ 26,624,810   $ 26,547,319   $ 26,579,866   $ 25,575,478  
    Bank owned loans serviced       15,036,187     14,481,561     14,200,691     13,512,617     12,772,935  
      Total servicing portfolio       41,823,870     41,106,371     40,748,010     40,092,483     38,348,413  
    Weighted Average Coupon Rate       5.84  %   5.83  %   5.82  %   5.83  %   5.84  %
    Weighted Average Servicing Fee       .351     .349     .349     .349     .347  
 
  For the Quarter Ended
(Dollars in thousands, except per share data) 3/31/06 12/31/05 9/30/05 6/30/05 3/31/05
RECONCILIATION TABLE          
Net income     $ 431,513   $ 429,574   $ 442,006   $ 386,805   $ 395,384  
  Merger-related items, net of tax       (1,853 )   (3,771 )   (1,130 )   (249 )   (1,627 )
  Equity-based compensation, net of tax       16,363     —     —     —     —  
  Other, net of tax (4)       (18,334 )   —     —     26,619     —  
Operating earnings       427,689     425,803     440,876     413,175     393,757  
  Amortization of intangibles, net of tax       15,818     18,305     16,718     18,026     17,705  
  Amortization of mark-to-market adjustments, net of tax       3,141     4,758     4,756     4,758     4,367  
Cash basis operating earnings       446,648     448,866     462,350     435,959     415,829  
Return on average assets       1.60  %   1.58  %   1.65  %   1.50  %   1.60  %
  Effect of merger-related items, net of tax       —     (.01 )   (.01 )   —     (.01 )
  Effect of equity-based compensation, net of tax       .06     —     —     —     —  
  Effect of other, net of tax (4)       (.07 )   —     —     .10     —  
Operating return on average assets       1.59     1.57     1.64     1.60     1.59  
  Effect of amortization of intangibles, net of tax (2)       .14     .14     .15     .15     .15  
  Effect of amortization of mark-to-market adjustments,    
    net of tax       .01     .02     .02     .02     .02  
Cash basis operating return on average    
   tangible assets       1.74     1.73     1.81     1.77     1.76  
Return on average equity       15.72  %   15.32  %   15.69  %   14.04  %   14.70  %
  Effect of merger-related items, net of tax       (.07 )   (.14 )   (.04 )   (.01 )   (.06 )
  Effect of equity-based compensation, net of tax       .60     —     —     —     —  
  Effect of other, net of tax (4)       (.67 )   —     —     .97     —  
Operating return on average equity       15.58     15.18     15.65     15.00     14.64  
  Effect of amortization of intangibles, net of tax (2)       12.63     12.40     12.62     12.52     12.07  
  Effect of amortization of mark-to-market adjustments,    
    net of tax       .20     .30     .29     .30     .29  
Cash basis operating return on average    
  tangible equity       28.41     27.88     28.56     27.82     27.00  
Efficiency ratio (taxable equivalent) (3)       53.5  %   52.6  %   51.5  %   55.4  %   52.7  %
  Effect of merger-related items       .2     .4     .2     —     .2  
  Effect of equity-based compensation       (1.7 )   —     —     —     —  
  Effect of other (4)       1.8     —     —     (2.9 )   —  
Operating efficiency ratio (3)       53.8     53.0     51.7     52.5     52.9  
  Effect of amortization of intangibles       (1.6 )   (1.9 )   (1.8 )   (1.9 )   (2.0 )
  Effect of amortization of mark-to-market adjustments       (.2 )   (.2 )   (.2 )   (.3 )   (.3 )
Cash basis operating efficiency ratio (3)       52.0     50.9     49.7     50.3     50.6  
Basic earnings per share     $ .80   $ .79   $ .81   $ .71   $ .72  
  Effect of merger-related items, net of tax       (.01 )   (.01 )   —     —     —  
  Effect of equity-based compensation, net of tax       .03     —     —     —     —  
  Effect of other, net of tax (4)       (.03 )   —     —     .05     —  
Operating basic earnings per share       .79     .78     .81     .76     .72  
Diluted earnings per share     $ .79   $ .78   $ .80   $ .70   $ .71  
  Effect of merger-related items, net of tax       —     —     —     —     —  
  Effect of equity-based compensation, net of tax       .03     —     —     —     —  
  Effect of other, net of tax (4)       (.03 )   —     —     .05     —  
Operating diluted earnings per share       .79     .78     .80     .75     .71  
  Effect of amortization of intangibles, net of tax       .03     .03     .03     .03     .03  
  Effect of amortization of mark-to-market adjustments,    
    net of tax       —     .01     .01     .01     .01  
Cash basis operating diluted earnings per share       .82     .82     .84     .79     .75  

NOTES:  

Applicable ratios are annualized.


(1)  

Balances exclude commercial mortgage servicing rights totaling $22.4 million, $20.1 million, $16.6 million, $16.2 million and $14.2 million as of March 31, 2006, December 31, 2005, September 30, 2005, June 30, 2005 and March 31, 2005, respectively. Effective January 1, 2006, residential mortgage servicing rights are carried at fair value.


(2)  

Reflects the effect of excluding average intangible assets from average assets and average equity to calculate cash basis ratios.


(3)  

Excludes securities gains (losses), foreclosed property expense, increases or decreases in the valuation of mortgage servicing rights, and gains or losses on mortgage servicing rights-related derivatives. Operating and cash basis ratios also exclude merger-related items, equity-based compensation and nonrecurring charges, where applicable.


(4)  

Reflects a gain on the sale of duplicate facilities totaling $18.3 million, net of tax, in the first quarter of 2006 and a one-time charge related to the accounting for leases totaling $26.6 million, net of tax, in the second quarter of 2005.