EX-99.1 2 exhibit991.htm Exhibit 99.1

EXHIBIT 99.1

October 19, 2006

FOR IMMEDIATE RELEASE

Contacts:    
ANALYSTS MEDIA
Tamera Gjesdal Chris Henson Bob Denham
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 reports 3rd quarter net income of $417.0 million

          WINSTON-SALEM, N.C. — BB&T Corporation (NYSE: BBT) reported today net income for the third quarter of 2006 totaling $417.0 million, or $.77 per diluted share, compared with $442.0 million, or $.80 per diluted share, earned during the third quarter of 2005. These results reflect decreases of 5.7% and 3.8%, respectively, compared to the third quarter last year. Third quarter earnings were negatively affected by a one-time charge related to an unforeseen legal matter totaling $9.8 million after-tax, or $.02 per diluted share.

          BB&T’s third quarter net income produced annualized returns on average assets and average shareholders’ equity of 1.42% and 14.39%, respectively, compared to prior year returns of 1.65% and 15.69%, respectively.

          Operating earnings for the third quarter of 2006 totaled $429.8 million, or $.79 per diluted share, excluding $6.2 million in net after-tax merger-related charges and $6.5 million in after-tax equity-based compensation. Operating earnings for the third quarter of 2005 totaled $440.9 million, excluding $1.1 million in net after-tax merger-related credits. These results reflect decreases of 2.5% and 1.3%, respectively, compared to the same period last year. Operating results were also reduced by $.02 per diluted share because of the aforementioned legal charge.

          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 charges or credits, equity-based compensation and nonrecurring items from earnings. Cash basis operating earnings totaled $447.6 million for the third quarter of 2006, a decrease of 3.2% compared to the third quarter of 2005. Cash basis operating diluted earnings per share totaled $.82 for the third quarter of 2006, a decrease of 2.4% compared to $.84 earned during the same period in 2005. Cash basis operating earnings for the third quarter of 2006 produced annualized returns on average tangible assets and average tangible shareholders’ equity of 1.59% and 28.53%, respectively, compared to prior year returns of 1.81% and 28.56%, respectively.

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          “The challenging interest rate environment continued to erode our margins and the legal charge we incurred late in the quarter negatively affected our earnings,” said Chairman and Chief Executive Officer John A. Allison. “While I am disappointed in our bottom-line results, I am pleased with a number of very positive trends in our performance. We experienced positive growth in loans and deposits, including a very favorable report on deposit market share released last week by the FDIC. Also, we enjoyed strong results from our investment banking division and our insurance operations, and continue to benefit from excellent asset quality levels and reasonable growth in total revenues.”

          For the first nine months of 2006, BB&T’s net income was $1.28 billion, an increase of 4.4% compared to $1.22 billion earned in the first nine months of 2005. Diluted earnings per share for the first nine months of 2006 totaled $2.35, an increase of 5.9% compared to the same period in 2005. Excluding merger-related charges or credits, equity-based compensation and nonrecurring items, operating earnings for the first nine months of 2006 totaled $1.29 billion, or $2.38 per diluted share, increases of 3.7% and 5.3%, respectively, compared to the first nine months of 2005.

Deposits Grow 9.8% Compared to Last Year, BB&T Gains Deposit Market Share

          BB&T’s deposit gathering efforts continued to be successful during the third quarter, as average deposits totaled $79.1 billion, an increase of 9.8% compared to $72.1 billion for the third quarter last year. Average client deposit growth was led by client certificates of deposit, which increased $5.8 billion, or 31.9%, and other client deposits, which increased $2.2 billion, or 7.5% compared to the third quarter of 2005. In addition, deposit growth accelerated during the third quarter, with annualized growth of 18.3% compared to the second quarter of 2006. During the first nine months of 2006, BB&T generated more than 115,000 net new transaction deposit accounts. According to the FDIC’s “Summary of Deposits” report released last week, based on data for commercial banks, BB&T maintained its leading market share in West Virginia and gained market share in every other state in the Company’s footprint. In addition, BB&T enjoyed double-digit deposit growth in six of the nine states where it has a significant presence.

BB&T Posts 11.5% Loan Growth during the Quarter

          Average loans and leases totaled $81.0 billion for the third quarter of 2006, reflecting an increase of $8.3 billion, or 11.5%, compared to the third quarter of 2005. This increase was composed of growth in average commercial loans and leases, which increased $4.5 billion, or 12.8%; average mortgage loans, which increased $1.9 billion, or 13.9%; average consumer loans, which increased $1.1 billion, or 5.4%; and growth in average loans originated by BB&T’s specialized lending subsidiaries, which increased $742.6 million, or 28.2%, compared to the third quarter last year.

BB&T’s Noninterest Income up 9.1%

          Noninterest income from BB&T’s fee generating businesses increased 9.1% during the third quarter of 2006 compared to 2005. Total noninterest income was $660.2 million for the current quarter and represented 40.8% of total revenues. This increase includes a record performance from BB&T’s investment banking and brokerage operations, as well as increased revenues from BB&T’s insurance operations, other nondeposit fees and commissions, and trust operations.

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          BB&T’s investment banking and brokerage operations enjoyed record results in the current quarter as fees increased 18.1% to $82.7 million compared to $70.0 million earned in the same quarter last year. This increase was primarily driven by growth in revenues at BB&T Capital Markets, a division of Scott & Stringfellow.

          Commissions from BB&T’s insurance operations increased 13.6% to $207.8 million in the current quarter compared with $182.9 million earned in the third quarter of 2005. 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.

          Other nondeposit fees and commissions totaled $115.0 million for the third quarter of 2006, an increase of 18.3% compared to the third quarter of 2005. This increase was generated primarily by growth in debit card related services.

          Trust revenues increased 8.6% to $39.7 million in the third quarter of 2006 compared with $36.6 million earned in the third quarter of 2005. This increase was primarily attributable to improved performance from institutional trust services and wealth management.

          Revenues from mortgage banking operations totaled $22.6 million for the third quarter of 2006 compared to $35.8 million earned in the third quarter last year. This decrease was primarily the result of fluctuations in the fair value of residential mortgage servicing rights and the related derivative hedge. Third quarter 2006 revenues include a net decrease in the fair value of mortgage servicing rights of $.5 million compared to a net increase in fair value of $11.0 million in the third quarter last year.

Asset Quality Remains Excellent

          BB&T’s asset quality remains excellent. Nonperforming assets, as a percentage of total assets, were .28% at Sept. 30 compared to .27% at Dec. 31, 2005, and .28% at Sept. 30, 2005. Annualized net charge-offs were .27% of average loans and leases for the third quarter of 2006, down from .30% in the third quarter of 2005. Excluding losses incurred by BB&T’s specialized lending subsidiaries, annualized net charge-offs for the current quarter were .14% of average loans and leases compared to .19% in the same quarter last year.

BB&T Recognized Nationally for Home Mortgage Customer Service

          On July 19, the J.D. Power and Associates 2006 Primary Mortgage Servicer Study was released and BB&T Corporation ranked first in the nation among banks in home mortgage customer service satisfaction. The survey is based on responses from nearly 13,000 home mortgage customers and involves the largest home mortgage providers in the nation. The ranking recognizes BB&T as the best among banks at dealing with all aspects of servicing mortgage loans.

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BB&T Expands Specialized Lending Business

          On Aug. 24, BB&T Corporation announced plans to acquire insurance premium finance company AFCO Credit Corporation and its Canadian affiliate, CAFO Inc. The acquisition will significantly strengthen BB&T’s insurance premium finance franchise in the United States, as well as provide entry into Canada – a first for BB&T. The acquisition will advance BB&T from the ninth to the second largest provider of insurance premium financing in the United States and the largest in Canada. The transaction is subject to regulatory approval and is expected to be completed during the first quarter of 2007.

BB&T Completes Acquisition of First Citizens Bancorp

           On Aug. 1, BB&T completed its acquisition of First Citizens Bancorp of Cleveland, Tenn. With $722.9 million in assets at Sept. 30, First Citizens operated 16 full-service banking centers in Tennessee, two in North Carolina and one in Georgia. The acquisition provides BB&T with significant opportunities to increase the number of consumer and small business loans in First Citizens’ markets, as well as to develop additional commercial lending relationships.

           At Sept. 30, BB&T had $118.5 billion in assets and operated 1,462 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 Oct. 18 was $44.00 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 third 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. (EST) on Friday, Nov. 3.

#

           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   Tamera L. Gjesdal    
BB&T Corporation (NYSE:BBT)   Vice President   (336) 733-3058  
Page 5   Investor Relations   FAX (336) 733-3132  

For the Three Months Ended Increase (Decrease)
(Dollars in thousands, except per share data) 9/30/06 9/30/05 $ %
OPERATING EARNINGS STATEMENTS (1)        
   Interest income - taxable equivalent     $ 1,824,658   $ 1,451,212   $ 373,446     25.7  %
   Interest expense       864,603     531,457     333,146     62.7  
     Net interest income - taxable equivalent       960,055     919,755     40,300     4.4  
   Less: Taxable equivalent adjustment       22,267     20,763     1,504     7.2  
     Net interest income       937,788     898,992     38,796     4.3  
   Provision for credit losses       62,336     57,465     4,871     8.5  
     Net interest income after provision for credit losses       875,452     841,527     33,925     4.0  
   Noninterest income       660,182     605,120     55,062     9.1  
   Noninterest expense       894,779     788,300     106,479     13.5  
   Operating earnings before income taxes       640,855     658,347     (17,492 )   (2.7 )
   Provision for income taxes       211,102     217,471     (6,369 )   (2.9 )
     Operating earnings (1)     $ 429,753   $ 440,876   $ (11,123 )   (2.5 ) %
PER SHARE DATA BASED ON OPERATING EARNINGS (1)    
   Basic earnings     $ .80   $ .81   $ (.01 )   (1.2 ) %
   Diluted earnings       .79     .80     (.01 )   (1.3 )
   Weighted average shares -            Basic       538,911,074     547,467,864  
                                                    Diluted       544,285,889     552,058,757  
   Dividends paid per share     $ .42   $ .38   $ .04     10.5  %
PERFORMANCE RATIOS BASED ON OPERATING EARNINGS (1)    
   Return on average assets       1.46  %   1.64  %
   Return on average equity       14.83     15.65  
   Net yield on earning assets (taxable equivalent)       3.68     3.88  
   Efficiency ratio (taxable equivalent) (2)       54.9     51.7  
CASH BASIS PERFORMANCE    
   BASED ON OPERATING EARNINGS (1)(3)    
   Cash basis operating earnings     $ 447,598   $ 462,350   $ (14,752 )   (3.2 ) %
   Diluted earnings per share       .82     .84     (.02 )   (2.4 )
   Return on average tangible assets       1.59  %   1.81  %
   Return on average tangible equity       28.53     28.56  
   Efficiency ratio (taxable equivalent) (2)       53.2     49.7  


  For the Three Months Ended Increase (Decrease)
(Dollars in thousands, except per share data) 9/30/06 9/30/05 $ %
INCOME STATEMENTS        
   Interest income     $ 1,802,391   $ 1,430,449   $ 371,942     26.0  %
   Interest expense       864,603     531,457     333,146     62.7  
     Net interest income       937,788     898,992     38,796     4.3  
   Provision for credit losses       62,336     57,465     4,871     8.5  
     Net interest income after provision for credit losses       875,452     841,527     33,925     4.0  
   Noninterest income       660,182     605,120     55,062     9.1  
   Noninterest expense       915,478     786,476     129,002     16.4  
   Income before income taxes       620,156     660,171     (40,015 )   (6.1 )
   Provision for income taxes       203,128     218,165     (15,037 )   (6.9 )
       Net income     $ 417,028   $ 442,006   $ (24,978 )   (5.7 ) %
PER SHARE DATA    
   Basic earnings     $ .77   $ .81   $ (.04 )   (4.9 ) %
   Diluted earnings       .77     .80     (.03 )   (3.8 )
   Weighted average shares -            Basic       538,911,074     547,467,864  
                                                    Diluted       544,285,889     552,058,757  
PERFORMANCE RATIOS BASED ON NET INCOME    
   Return on average assets       1.42  %   1.65  %
   Return on average equity       14.39     15.69  
   Efficiency ratio (taxable equivalent) (2)       56.2     51.5  


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 $12.7 million and $(1.1 million), net of tax, in the third 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   Tamera L. Gjesdal    
BB&T Corporation (NYSE:BBT)   Vice President   (336) 733-3058  
Page 6   Investor Relations   FAX (336) 733-3132  

  For the Nine Months Ended Increase (Decrease)
(Dollars in thousands, except per share data) 9/30/06 9/30/05 $ %
OPERATING EARNINGS STATEMENTS (1)        
   Interest income - taxable equivalent     $ 5,093,118   $ 4,068,082   $ 1,025,036     25.2  %
   Interest expense       2,275,067     1,381,485     893,582     64.7  
     Net interest income - taxable equivalent       2,818,051     2,686,597     131,454     4.9  
   Less: Taxable equivalent adjustment       65,442     61,457     3,985     6.5  
     Net interest income       2,752,609     2,625,140     127,469     4.9  
   Provision for credit losses       167,639     147,934     19,705     13.3  
     Net interest income after provision for credit losses       2,584,970     2,477,206     107,764     4.4  
   Noninterest income       1,919,054     1,705,643     213,411     12.5  
   Noninterest expense       2,566,484     2,309,297     257,187     11.1  
   Operating earnings before income taxes       1,937,540     1,873,552     63,988     3.4  
   Provision for income taxes       643,771     625,744     18,027     2.9  
     Operating earnings (1)     $ 1,293,769   $ 1,247,808   $ 45,961     3.7  %
PER SHARE DATA BASED ON OPERATING EARNINGS (1)    
   Basic earnings     $ 2.40   $ 2.28   $ .12     5.3  %
   Diluted earnings       2.38     2.26     .12     5.3  
   Weighted average shares -            Basic       538,578,229     547,939,700  
                                                    Diluted       543,496,218     552,313,670  
   Dividends paid per share     $ 1.18   $ 1.08   $ .10     9.3  %
PERFORMANCE RATIOS BASED ON OPERATING EARNINGS (1)    
   Return on average assets       1.53  %   1.61  %
   Return on average equity       15.33     15.10  
   Net yield on earning assets (taxable equivalent)       3.75     3.92  
   Noninterest income as a percentage of    
     total income (taxable equivalent) (2)       40.4     38.7  
   Efficiency ratio (taxable equivalent) (2)       54.0     52.3  
CASH BASIS PERFORMANCE    
   BASED ON OPERATING EARNINGS (1)(3)    
   Cash basis operating earnings     $ 1,349,021   $ 1,314,138   $ 34,883     2.7  %
   Diluted earnings per share       2.48     2.38     .10     4.2  
   Return on average tangible assets       1.67  %   1.78  %
   Return on average tangible equity       28.63     27.81  
   Efficiency ratio (taxable equivalent) (2)       52.3     50.2  


  For the Nine Months Ended Increase (Decrease)
(Dollars in thousands, except per share data) 9/30/06 9/30/05 $ %
INCOME STATEMENTS        
   Interest income     $ 5,027,676   $ 4,006,625   $ 1,021,051     25.5  %
   Interest expense       2,275,067     1,381,485     893,582     64.7  
     Net interest income       2,752,609     2,625,140     127,469     4.9  
   Provision for credit losses       167,639     147,934     19,705     13.3  
     Net interest income after provision for credit losses       2,584,970     2,477,206     107,764     4.4  
   Noninterest income       1,919,054     1,706,660     212,394     12.4  
   Noninterest expense       2,594,268     2,348,470     245,798     10.5  
   Income before income taxes       1,909,756     1,835,396     74,360     4.1  
   Provision for income taxes       632,115     611,201     20,914     3.4  
       Net income     $ 1,277,641   $ 1,224,195   $ 53,446     4.4  %
PER SHARE DATA    
   Basic earnings     $ 2.37   $ 2.23   $ .14     6.3  %
   Diluted earnings       2.35     2.22     .13     5.9  
   Weighted average shares -             Basic       538,578,229     547,939,700  
                                                     Diluted       543,496,218     552,313,670  
PERFORMANCE RATIOS BASED ON NET INCOME    
   Return on average assets       1.51  %   1.58  %
   Return on average equity       15.13     14.82  
   Efficiency ratio (taxable equivalent) (2)       54.6     53.2  


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 $16.1 million and $23.6 million, net of tax, in the first nine months 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   Tamera L. Gjesdal    
BB&T Corporation (NYSE:BBT)   Vice President   (336) 733-3058  
Page 7   Investor Relations   FAX (336) 733-3132  

  As of / For the Nine Months Ended Increase (Decrease)
(Dollars in thousands) 9/30/06 9/30/05 $ %
CONSOLIDATED BALANCE SHEETS
End of period balances        
Cash and due from banks     $ 1,953,967   $ 1,942,658   $ 11,309     0.6  %
Interest-bearing deposits with banks       567,323     379,423     187,900     49.5  
Federal funds sold and other earning assets       370,236     330,055     40,181     12.2  
Securities available for sale       20,733,173     19,817,145     916,028     4.6  
Trading securities       887,605     433,652     453,953     104.7  
  Total securities       21,620,778     20,250,797     1,369,981     6.8  
Commercial loans and leases       40,354,582     35,848,589     4,505,993     12.6  
Direct retail loans       15,317,659     14,279,817     1,037,842     7.3  
Sales finance loans       5,553,067     5,368,126     184,941     3.4  
Revolving credit loans       1,356,425     1,294,804     61,621     4.8  
Mortgage loans       15,847,368     14,200,691     1,646,677     11.6  
Specialized lending       3,520,978     2,679,818     841,160     31.4  
  Total loans and leases       81,950,079     73,671,845     8,278,234     11.2  
Allowance for loan and lease losses       883,497     817,777     65,720     8.0  
  Total earning assets       105,000,543     95,054,570     9,945,973     10.5  
Premises and equipment, net       1,387,080     1,269,224     117,856     9.3  
Goodwill       4,822,813     4,237,451     585,362     13.8  
Core deposit and other intangibles       478,853     503,686     (24,833 )   (4.9 )
Other assets       6,256,265     5,312,791     943,474     17.8  
  Total assets       118,523,897     107,080,153     11,443,744     10.7  
Noninterest-bearing deposits       13,533,341     13,499,106     34,235     .3  
Interest checking       1,303,510     1,414,364     (110,854 )   (7.8 )
Other client deposits       32,795,530     30,135,171     2,660,359     8.8  
Client certificates of deposit       24,337,678     18,402,885     5,934,793     32.2  
Other interest-bearing deposits       8,096,144     9,728,748     (1,632,604 )   (16.8 )
  Total deposits       80,066,203     73,180,274     6,885,929     9.4  
Fed funds purchased, repos and other borrowings       7,234,721     6,533,455     701,266     10.7  
Long-term debt       16,159,379     12,376,759     3,782,620     30.6  
  Total interest-bearing liabilities       89,926,962     78,591,382     11,335,580     14.4  
Other liabilities       3,329,669     3,793,747     (464,078 )   (12.2 )
  Total liabilities       106,789,972     95,884,235     10,905,737     11.4  
  Total shareholders' equity     $ 11,733,925   $ 11,195,918   $ 538,007     4.8  %
Average balances    
Securities, at amortized cost     $ 21,260,419   $ 20,352,453   $ 907,966     4.5  %
Commercial loans and leases       38,361,308     34,587,586     3,773,722     10.9  
Direct retail loans       14,777,404     13,925,745     851,659     6.1  
Sales finance loans       5,304,404     5,181,457     122,947     2.4  
Revolving credit loans       1,321,446     1,260,921     60,525     4.8  
Mortgage loans       15,273,524     13,137,726     2,135,798     16.3  
Specialized lending       3,137,432     2,481,167     656,265     26.4  
  Total loans and leases       78,175,518     70,574,602     7,600,916     10.8  
Allowance for loan and lease losses       853,623     811,340     42,283     5.2  
Other earning assets       908,187     691,686     216,501     31.3  
  Total earning assets       100,344,124     91,618,741     8,725,383     9.5  
  Total assets       112,828,161     103,522,615     9,305,546     9.0  
Noninterest-bearing deposits       13,125,282     12,721,383     403,899     3.2  
Interest checking       2,099,489     1,780,774     318,715     17.9  
Other client deposits       31,169,006     29,694,505     1,474,501     5.0  
Client certificates of deposit       21,837,614     17,672,736     4,164,878     23.6  
Other interest-bearing deposits       8,102,648     7,599,984     502,664     6.6  
  Total deposits       76,334,039     69,469,382     6,864,657     9.9  
Fed funds purchased, repos and other borrowings       6,970,893     7,475,829     (504,936 )   (6.8 )
Long-term debt       14,131,826     11,703,066     2,428,760     20.8  
  Total interest-bearing liabilities       84,311,476     75,926,894     8,384,582     11.0  
  Total shareholders' equity     $ 11,286,577   $ 11,044,890   $ 241,687     2.2  %


    As of / For the Quarter Ended
(Dollars in thousands, except per share data)   9/30/06 6/30/06 3/31/06 12/31/05 9/30/05
MISCELLANEOUS INFORMATION            
             
Unrealized depreciation on            
  securities available for sale, net of tax           $ (312,735 ) $ (535,078 ) $ (449,770 ) $ (337,578 ) $ (266,690 )
Derivatives (notional value)             25,054,319     24,282,135     21,133,941     23,679,972     26,131,167  
Fair value of derivatives portfolio             (25,763 )   (215,469 )   (134,558 )   (10,600 )   (1,869 )
Common stock prices:       High     44.54     43.46     42.85     43.92     43.00  
        Low     39.87     39.09     38.24     37.39     38.56  
        End of period     43.78     41.59     39.20     41.91     39.05  
Weighted average shares -       Basic     538,911,074     536,882,392     539,952,669     543,879,921     547,467,864  
        Diluted     544,285,889     541,607,530     543,435,830     548,607,865     552,058,757  
End of period shares outstanding             540,652,126     536,895,965     535,588,093     543,102,080     548,051,351  
End of period banking offices             1,462     1,443     1,409     1,404     1,402  
ATMs             2,106     2,057     1,964     1,951     1,944  
FTEs             29,112     29,016     28,300     27,745     27,080  


NOTES:

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

QUARTERLY PERFORMANCE SUMMARY   Tamera L. Gjesdal    
BB&T Corporation (NYSE:BBT)   Vice President   (336) 733-3058  
Page 8   Investor Relations   FAX (336) 733-3132  

  As of / For the Quarter Ended
(Dollars in thousands, except per share data) 9/30/06 6/30/06 3/31/06 12/31/05 9/30/05
OPERATING EARNINGS STATEMENTS (1)          
    Interest income - taxable equivalent          
    Interest and fees on loans and leases     $ 1,571,500   $ 1,452,022   $ 1,341,049   $ 1,290,568   $ 1,227,374  
    Interest and dividends on securities       242,925     228,204     229,743     223,240     217,507  
    Interest on short-term investments       10,233     10,222     7,220     6,609     6,331  
      Total interest income - taxable equivalent       1,824,658     1,690,448     1,578,012     1,520,417     1,451,212  
    Interest expense    
    Interest on deposits       585,115     497,238     438,420     387,763     343,489  
    Interest on fed funds purchased, repos and other borrowings       74,974     80,560     65,081     65,371     58,169  
    Interest on long-term debt       204,514     174,048     155,117     146,350     129,799  
      Total interest expense       864,603     751,846     658,618     599,484     531,457  
    Net interest income - taxable equivalent       960,055     938,602     919,394     920,933     919,755  
    Less: Taxable equivalent adjustment       22,267     21,833     21,342     21,200     20,763  
      Net interest income       937,788     916,769     898,052     899,733     898,992  
    Provision for credit losses       62,336     57,732     47,571     69,329     57,465  
      Net interest income after provision for    
         credit losses       875,452     859,037     850,481     830,404     841,527  
    Noninterest income    
    Insurance commissions       207,799     214,087     176,512     197,372     182,915  
    Service charges on deposits       137,950     138,112     131,241     141,645     141,072  
    Other nondeposit fees and commissions       114,952     111,489     101,635     100,157     97,208  
    Investment banking and brokerage fees and commissions       82,698     78,220     81,311     69,682     70,036  
    Trust revenue       39,699     37,739     37,020     36,949     36,552  
    Mortgage banking income       22,616     29,128     32,295     25,357     35,840  
    Securities gains (losses), net       179     153     2     (81 )   193  
    Other noninterest income       54,289     41,749     48,179     47,881     41,304  
      Total noninterest income       660,182     650,677     608,195     618,962     605,120  
    Noninterest expense    
    Personnel expense       513,539     495,454     487,467     468,098     451,260  
    Occupancy and equipment expense       113,808     109,707     107,785     112,018     105,656  
    Foreclosed property expense       4,490     3,929     3,912     5,809     6,322  
    Amortization of intangibles       26,776     25,225     25,108     29,054     26,540  
    Other noninterest expense       236,166     213,559     199,559     209,008     198,522  
      Total noninterest expense       894,779     847,874     823,831     823,987     788,300  
    Operating earnings before income taxes       640,855     661,840     634,845     625,379     658,347  
    Provision for income taxes       211,102     225,513     207,156     199,576     217,471  
      Operating earnings (1)     $ 429,753   $ 436,327   $ 427,689   $ 425,803   $ 440,876  
PER SHARE DATA BASED ON    
    OPERATING EARNINGS (1)    
    Basic earnings     $ .80   $ .81   $ .79   $ .78   $ .81  
    Diluted earnings       .79     .81     .79     .78     .80  
    Dividends paid per share       .42     .38     .38     .38     .38  
PERFORMANCE RATIOS BASED ON    
    OPERATING EARNINGS (1)    
    Return on average assets       1.46  %   1.56  %   1.59  %   1.57  %   1.64  %
    Return on average equity       14.83     15.60     15.58     15.18     15.65  
    Net yield on earning assets (taxable equivalent)       3.68     3.76     3.82     3.82     3.88  
    Efficiency ratio (taxable equivalent) (2)       54.9     53.2     53.8     53.0     51.7  
    Noninterest income as a percentage of    
      total income (taxable equivalent) (2)       40.8     40.8     39.7     40.3     39.2  
    Average earning assets as a percentage of    
      average total assets       88.8     89.0     89.0     88.9     88.7  
    Average loans and leases as a percentage of    
      average deposits       102.4     103.1     101.7     101.9     100.9  
CASH BASIS PERFORMANCE BASED ON    
    OPERATING EARNINGS (1) (3)    
    Cash basis operating earnings     $ 447,598   $ 454,775   $ 446,648   $ 448,866   $ 462,350  
    Diluted earnings per share       .82     .84     .82     .82     .84  
    Return on average tangible assets       1.59  %   1.70  %   1.74  %   1.73  %   1.81  %
    Return on average tangible equity       28.53     28.96     28.41     27.88     28.56  
    Efficiency ratio (taxable equivalent) (2)       53.2     51.5     52.0     50.9     49.7  


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 $12.7 million, $7.2 million, $(3.8 million), $(3.8 million) and $(1.1 million), net of tax, for the quarters ended September 30, 2006, June 30, 2006, March 31, 2006, December 31, 2005, and September 30, 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   Tamera L. Gjesdal    
BB&T Corporation (NYSE:BBT)   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) 9/30/06 6/30/06 3/31/06 12/31/05 9/30/05
INCOME STATEMENTS          
    Interest income          
    Interest and fees on loans and leases     $ 1,563,071   $ 1,443,972   $ 1,333,545   $ 1,283,225   $ 1,220,102  
    Interest and dividends on securities       229,087     214,421     215,905     209,383     204,016  
    Interest on short-term investments       10,233     10,222     7,220     6,609     6,331  
      Total interest income       1,802,391     1,668,615     1,556,670     1,499,217     1,430,449  
    Interest expense    
    Interest on deposits       585,115     497,238     438,420     387,763     343,489  
    Interest on fed funds purchased, repos and other borrowings       74,974     80,560     65,081     65,371     58,169  
    Interest on long-term debt       204,514     174,048     155,117     146,350     129,799  
      Total interest expense       864,603     751,846     658,618     599,484     531,457  
    Net interest income       937,788     916,769     898,052     899,733     898,992  
    Provision for credit losses       62,336     57,732     47,571     69,329     57,465  
      Net interest income after provision for    
         credit losses       875,452     859,037     850,481     830,404     841,527  
    Noninterest income    
    Insurance commissions       207,799     214,087     176,512     197,372     182,915  
    Service charges on deposits       137,950     138,112     131,241     141,645     141,072  
    Other nondeposit fees and commissions       114,952     111,489     101,635     100,157     97,208  
    Investment banking and brokerage fees and commissions       82,698     78,220     81,311     69,682     70,036  
    Trust revenue       39,699     37,739     37,020     36,949     36,552  
    Mortgage banking income       22,616     29,128     32,295     25,357     35,840  
    Securities gains (losses), net       179     153     2     (81 )   193  
    Other noninterest income       54,289     41,749     48,179     47,881     41,304  
      Total noninterest income       660,182     650,677     608,195     618,962     605,120  
    Noninterest expense    
    Personnel expense       513,539     495,454     487,467     468,098     451,260  
    Equity-based compensation       10,601     10,104     26,532     —     —  
    Occupancy and equipment expense       113,808     109,707     107,785     112,018     105,656  
    Foreclosed property expense       4,490     3,929     3,912     5,809     6,322  
    Amortization of intangibles       26,776     25,225     25,108     29,054     26,540  
    Merger-related and restructuring charges (credits), net       10,098     1,631     (2,976 )   (5,956 )   (1,824 )
    Other noninterest expense       236,166     213,559     171,353     209,008     198,522  
      Total noninterest expense       915,478     859,609     819,181     818,031     786,476  
    Income before income taxes       620,156     650,105     639,495     631,335     660,171  
    Provision for income taxes       203,128     221,005     207,982     201,761     218,165  
      Net income     $ 417,028   $ 429,100   $ 431,513   $ 429,574   $ 442,006  
PER SHARE DATA    
    Basic earnings     $ .77   $ .80   $ .80   $ .79   $ .81  
    Diluted earnings       .77     .79     .79     .78     .80  


  For the Quarter Ended
  9/30/06 6/30/06 3/31/06 12/31/05 9/30/05
ANNUALIZED INTEREST YIELDS / RATES (1)          
Interest income:    
    Securities:    
      U.S. Treasury securities       3.72  %   3.19  %   3.11  %   2.95  %   2.94  %
      U.S. government-sponsored entity securities       4.00     3.96     3.95     3.87     3.75  
      Mortgage-backed securities       5.10     4.83     4.81     4.76     4.73  
      States and political subdivisions       6.90     6.84     6.82     6.81     6.74  
      Other securities       5.24     5.25     6.01     5.41     4.96  
      Trading securities       3.31     2.94     3.70     3.17     2.82  
         Total securities       4.47     4.33     4.39     4.29     4.18  
    Loans:    
      Commercial loans and leases       7.99     7.73     7.39     7.01     6.71  
      Consumer loans       7.38     7.14     6.95     6.69     6.54  
      Mortgage loans       5.79     5.66     5.50     5.46     5.45  
      Specialized lending       15.32     15.12     15.14     14.63     14.69  
         Total loans       7.70     7.47     7.19     6.90     6.71  
    Other earning assets       4.16     4.23     3.76     3.29     3.16  
           Total earning assets       6.99     6.77     6.56     6.30     6.12  
Interest expense:    
    Interest-bearing deposits:    
      Interest checking       1.92     1.77     1.38     1.13     .78  
      Other client deposits       2.60     2.29     2.03     1.80     1.61  
      Client certificates of deposit       4.32     3.99     3.66     3.29     3.03  
      Other interest-bearing deposits       5.36     5.00     4.54     4.03     3.47  
         Total interest-bearing deposits       3.53     3.19     2.90     2.58     2.31  
         Fed funds purchased, repos and other borrowings       4.43     4.30     3.95     3.64     3.24  
         Long-term debt       5.28     5.04     4.77     4.58     4.26  
           Total interest-bearing liabilities       3.90     3.60     3.29     3.00     2.70  
    Net yield on earning assets       3.68  %   3.76  %   3.82  %   3.82  %   3.88  %


NOTES:

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

QUARTERLY PERFORMANCE SUMMARY   Tamera L. Gjesdal    
BB&T Corporation (NYSE:BBT)   Vice President   (336) 733-3058  
Page 10   Investor Relations   FAX (336) 733-3132  

  As of / For the Quarter Ended
(Dollars in thousands, except per share data) 9/30/06 6/30/06 3/31/06 12/31/05 9/30/05
SELECTED BALANCE SHEET DATA          
     End of period balances          
    Securities available for sale     $ 20,733,173   $ 20,090,945   $ 19,433,575   $ 19,782,966   $ 19,817,145  
    Trading securities       887,605     918,621     745,169     706,518     433,652  
      Total securities       21,620,778     21,009,566     20,178,744     20,489,484     20,250,797  
    Commercial loans and leases       40,354,582     39,691,954     37,191,415     36,615,085     35,848,589  
    Direct retail loans       15,317,659     14,908,991     14,543,073     14,452,518     14,279,817  
    Sales finance loans       5,553,067     5,378,205     5,176,673     5,264,088     5,368,126  
    Revolving credit loans       1,356,425     1,327,623     1,299,396     1,347,309     1,294,804  
    Mortgage loans       15,847,368     15,671,640     15,036,187     14,481,561     14,200,691  
    Specialized lending       3,520,978     3,305,220     3,032,538     2,862,927     2,679,818  
      Total loans and leases       81,950,079     80,283,633     76,279,282     75,023,488     73,671,845  
    Allowance for loan and lease losses       883,497     869,880     833,231     825,300     817,777  
    Other earning assets       937,559     960,176     816,838     730,819     709,478  
      Total earning assets       105,000,543     103,097,439     97,984,757     96,777,005     95,054,570  
      Total assets       118,523,897     116,283,730     110,033,689     109,169,759     107,080,153  
    Noninterest-bearing deposits       13,533,341     13,625,502     13,413,099     13,476,939     13,499,106  
    Interest checking       1,303,510     1,539,064     1,338,847     1,426,715     1,414,364  
    Other client deposits       32,795,530     32,344,438     32,074,100     30,959,888     30,135,171  
    Client certificates of deposit       24,337,678     23,704,122     20,352,627     19,309,667     18,402,885  
    Other interest-bearing deposits       8,096,144     7,299,675     8,385,456     9,108,590     9,728,748  
      Total deposits       80,066,203     78,512,801     75,564,129     74,281,799     73,180,274  
    Fed funds purchased, repos and other borrowings       7,234,721     6,797,108     6,356,330     6,561,719     6,533,455  
    Long-term debt       16,159,379     15,195,145     13,045,058     13,118,559     12,376,759  
      Total interest-bearing liabilities       89,926,962     86,879,552     81,552,418     80,485,138     78,591,382  
      Total shareholders' equity       11,733,925     11,164,113     10,969,972     11,129,114     11,195,918  
    Goodwill       4,822,813     4,730,294     4,300,396     4,255,998     4,237,451  
    Core deposit and other intangibles       478,853     493,463     479,231     487,525     503,686  
      Total intangibles       5,301,666     5,223,757     4,779,627     4,743,523     4,741,137  
      Mortgage servicing rights     $ 507,171   $ 523,908   $ 485,307   $ 451,287   $ 414,466  
    Average balances    
    Securities, at amortized cost     $ 21,736,400   $ 21,081,257   $ 20,955,014   $ 20,807,541   $ 20,822,997  
    Commercial loans and leases       39,964,654     38,187,877     36,897,691     36,213,607     35,424,216  
    Direct retail loans       15,119,924     14,707,176     14,498,280     14,354,335     14,194,755  
    Sales finance loans       5,452,543     5,242,132     5,215,937     5,316,296     5,313,245  
    Revolving credit loans       1,338,798     1,308,461     1,316,837     1,307,724     1,281,964  
    Mortgage loans       15,795,190     15,348,385     14,664,573     14,381,114     13,869,588  
    Specialized lending       3,373,322     3,183,885     2,849,331     2,741,610     2,630,756  
      Total loans and leases       81,044,431     77,977,916     75,442,649     74,314,686     72,714,524  
    Allowance for loan and lease losses       880,383     852,045     827,863     818,743     814,934  
    Other earning assets       976,003     968,783     777,594     797,372     795,338  
      Total earning assets       103,756,834     100,027,956     97,175,257     95,919,599     94,332,859  
      Total assets       116,884,135     112,383,000     109,132,162     107,844,163     106,360,541  
    Noninterest-bearing deposits       13,339,523     13,179,022     12,851,943     13,343,220     13,144,471  
    Interest checking       2,164,673     2,225,377     1,905,570     1,845,732     1,846,994  
    Other client deposits       31,957,072     30,848,811     30,687,180     30,166,800     29,729,490  
    Client certificates of deposit       23,942,313     21,629,456     19,896,614     18,849,059     18,155,972  
    Other interest-bearing deposits       7,719,550     7,742,838     8,858,068     8,743,882     9,215,190  
      Total deposits       79,123,131     75,625,504     74,199,375     72,948,693     72,092,117  
    Fed funds purchased, repos and other borrowings       6,720,188     7,507,314     6,684,788     7,118,752     7,123,027  
    Long-term debt       15,433,191     13,825,503     13,111,268     12,717,191     12,111,140  
      Total interest-bearing liabilities       87,936,987     83,779,299     81,143,488     79,441,416     78,181,813  
      Total shareholders' equity     $ 11,500,116   $ 11,221,497   $ 11,134,096   $ 11,126,630   $ 11,176,928  
SELECTED CAPITAL INFORMATION (1)    
    Risk-based capital:    
      Tier 1     $ 8,137,534   $ 7,841,326   $ 7,360,953   $ 7,453,987   $ 7,454,705  
      Total       12,921,304     11,863,873     11,418,033     11,610,547     11,648,384  
    Risk-weighted assets       88,546,317     86,412,021     81,623,098     80,390,559     78,417,224  
    Average quarterly tangible assets       112,401,583     108,026,743     105,038,107     103,741,007     102,009,127  
    Risk-based capital ratios:    
      Tier 1       9.2  %   9.1  %   9.0  %   9.3  %   9.5  %
      Total       14.6     13.7     14.0     14.4     14.9  
    Leverage capital ratio       7.2     7.3     7.0     7.2     7.3  
    Equity as a percentage of total assets       9.9     9.6     10.0     10.2     10.5  
    Book value per share     $ 21.70   $ 20.79   $ 20.48   $ 20.49   $ 20.43  
    Tangible book value per share (2)       11.90     11.06     11.56     11.76     11.78  


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   Tamera L. Gjesdal    
BB&T Corporation (NYSE:BBT)   Vice President   (336) 733-3058  
Page 11   Investor Relations   FAX (336) 733-3132  

  As of / For the Quarter Ended
(Dollars in thousands) 9/30/06 6/30/06 3/31/06 12/31/05 9/30/05
ASSET QUALITY ANALYSIS          
 Allowance For Credit Losses          
  Beginning balance     $ 870,877   $ 833,432   $ 829,770   $ 830,344   $ 827,325  
  Allowance for acquired (sold) loans, net       5,669     25,043     3,731     (970 )   —  
  Provision for credit losses       62,336     57,732     47,571     69,329     57,465  
     Charge-offs    
         Commercial loans and leases       (10,339 )   (7,025 )   (5,407 )   (20,584 )   (7,440 )
         Direct retail loans       (11,952 )   (11,638 )   (10,597 )   (10,293 )   (20,558 )
         Sales finance loans       (5,007 )   (5,304 )   (5,610 )   (8,617 )   (6,874 )
         Revolving credit loans       (10,207 )   (10,435 )   (11,337 )   (15,994 )   (13,179 )
         Mortgage loans       (1,350 )   (1,238 )   (2,095 )   (1,347 )   (1,502 )
         Specialized lending       (30,879 )   (26,306 )   (27,226 )   (26,923 )   (23,190 )
     Total charge-offs       (69,734 )   (61,946 )   (62,272 )   (83,758 )   (72,743 )
     Recoveries    
         Commercial loans and leases       3,648     5,392     3,203     4,550     4,822  
         Direct retail loans       3,233     3,012     3,065     2,653     5,214  
         Sales finance loans       1,646     1,732     1,739     1,866     2,145  
         Revolving credit loans       3,063     2,974     2,743     2,841     2,740  
         Mortgage loans       95     84     144     162     340  
         Specialized lending       3,311     3,422     3,738     2,753     3,036  
     Total recoveries       14,996     16,616     14,632     14,825     18,297  
  Net charge-offs       (54,738 )   (45,330 )   (47,640 )   (68,933 )   (54,446 )
  Ending balance     $ 884,144   $ 870,877   $ 833,432   $ 829,770   $ 830,344  
Allowance For Credit Losses    
  Allowance for loan and lease losses     $ 883,497   $ 869,880   $ 833,231   $ 825,300   $ 817,777  
  Reserve for unfunded lending commitments       647     997     201     4,470     12,567  
     Total     $ 884,144   $ 870,877   $ 833,432   $ 829,770   $ 830,344  
Nonperforming Assets    
  Nonaccrual loans and leases:    
         Commercial loans and leases     $ 124,018   $ 125,950   $ 109,838   $ 103,804   $ 107,121  
         Direct retail loans       38,205     39,470     42,156     40,916     39,334  
         Sales finance loans       2,483     2,502     3,064     4,640     9,864  
         Revolving credit loans       203     222     177     233     304  
         Mortgage loans       49,817     46,705     49,643     48,126     48,301  
         Specialized lending       30,683     24,154     26,508     31,160     25,648  
  Total nonaccrual loans and leases       245,409     239,003     231,386     228,879     230,572  
  Foreclosed real estate       54,553     55,623     41,341     48,315     51,504  
  Other foreclosed property       30,555     24,304     22,895     22,420     21,692  
  Restructured loans       584     494     507     515     523  
     Nonperforming assets     $ 331,101   $ 319,424   $ 296,129   $ 300,129   $ 304,291  
Loans 90 days or more past due    
  and still accruing:    
         Commercial loans and leases     $ 8,454   $ 18,510   $ 5,727   $ 10,413   $ 5,948  
         Direct retail loans       16,646     16,536     17,686     20,814     18,197  
         Sales finance loans       12,489     12,318     18,347     21,585     16,246  
         Revolving credit loans       6,254     5,456     4,172     4,713     4,840  
         Mortgage loans       36,300     32,221     28,251     38,828     33,385  
         Specialized lending       6,762     5,675     5,050     7,092     5,999  
  Total loans 90 days or more past due    
     and still accruing       86,905     90,716     79,233     103,445     84,615  
  Loans 90 days or more past due and still accruing    
     as a percentage of total loans and leases       .11  %   .11  %   .10  %   .14  %   .11  %
Asset Quality Ratios    
  Nonaccrual and restructured loans and leases    
     as a percentage of total loans and leases       .30  %   .30  %   .30  %   .31  %   .31  %
  Nonperforming assets as a percentage of:    
     Total assets       .28     .27     .27     .27     .28  
     Loans and leases plus    
       foreclosed property       .40     .40     .39     .40     .41  
  Net charge-offs as a percentage of    
     average loans and leases       .27     .23     .26     .37     .30  
  Net charge-offs excluding specialized    
     lending as a percentage of average    
     loans and leases (1)       .14     .12     .13     .25     .19  
  Allowance for loan and lease losses as    
     a percentage of loans and leases       1.08     1.08     1.09     1.10     1.11  
  Allowance for loan and lease losses as    
     a percentage of loans and leases    
     held for investment       1.09     1.09     1.10     1.11     1.12  
  Ratio of allowance for loan and lease losses to:    
     Net charge-offs       4.07  x   4.78  x   4.31  x   3.02  x   3.79  x
     Nonaccrual and restructured loans and leases       3.59     3.63     3.59     3.60     3.54  


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   Tamera L. Gjesdal    
BB&T Corporation (NYSE:BBT)   Vice President   (336) 733-3058  
Page 12   Investor Relations   FAX (336) 733-3132  

  As of / For the Nine Months Ended Increase (Decrease)
(Dollars in thousands) 9/30/06 9/30/05 $ %
 Allowance For Credit Losses        
  Beginning balance     $ 829,770   $ 828,301   $ 1,469     .2  %
  Allowance for acquired (sold) loans, net       34,443     —     34,443     NM  
  Provision for credit losses       167,639     147,934     19,705     13.3  
     Charge-offs    
       Commercial loans and leases       (22,771 )   (28,678 )   5,907     (20.6 )
       Direct retail loans       (34,187 )   (36,155 )   1,968     (5.4 )
       Sales finance loans       (15,921 )   (18,047 )   2,126     (11.8 )
       Revolving credit loans       (31,979 )   (38,424 )   6,445     (16.8 )
       Mortgage loans       (4,683 )   (4,706 )   23     (.5 )
       Specialized lending       (84,411 )   (67,979 )   (16,432 )   24.2  
     Total charge-offs       (193,952 )   (193,989 )   37     (.0 )
     Recoveries    
       Commercial loans and leases       12,243     12,528     (285 )   (2.3 )
       Direct retail loans       9,310     9,221     89     1.0  
       Sales finance loans       5,117     7,017     (1,900 )   (27.1 )
       Revolving credit loans       8,780     8,017     763     9.5  
       Mortgage loans       323     474     (151 )   (31.9 )
       Specialized lending       10,471     10,841     (370 )   (3.4 )
     Total recoveries       46,244     48,098     (1,854 )   (3.9 )
  Net charge-offs       (147,708 )   (145,891 )   (1,817 )   (1.2 )
  Ending balance     $ 884,144   $ 830,344   $ 53,800     6.5  %
Allowance For Credit Losses    
  Allowance for loan and lease losses     $ 883,497   $ 817,777   $ 65,720     8.0  %
  Reserve for unfunded lending commitments       647     12,567     (11,920 )   (94.9 )
  Total     $ 884,144   $ 830,344   $ 53,800     6.5  %
Asset Quality Ratios    
  Net charge-offs as a percentage of    
     average loans and leases       .25 %   .28 %
  Net charge-offs excluding specialized    
     lending as a percentage of average    
     loans and leases (1)       .13     .17  
  Ratio of allowance for loan and lease losses to    
     net charge-offs       4.47  x   4.19  x


  Percentage Increase (Decrease)
  QTD Annualized Link QTD YTD
  3Q06 vs. 3Q05 3Q06 vs. 2Q06 2006 vs. 2005
PERCENTAGE CHANGES IN SELECTED BALANCES ADJUSTED FOR      
    PURCHASE ACQUISITIONS (2)      
       
    Average Balances      
    Commercial loans and leases       7.0  %   4.2  %   8.1  %
    Direct retail loans       5.0     6.5     5.4  
    Sales finance loans       2.6     15.9     2.4  
    Revolving credit loans       4.3     8.8     4.8  
    Mortgage loans (3)       15.3     11.5     17.8  
    Specialized lending       24.3     23.6     23.2  
      Total loans and leases (3)       8.4     7.6     9.4  
 
    Noninterest-bearing deposits       (0.7 )   (1.2 )   2.2  
    Interest checking       5.2     (34.3 )   11.0  
    Other client deposits       5.0     7.8     3.7  
    Client certificates of deposit       26.5     31.9     21.0  
    Other interest-bearing deposits       (17.6 )   (8.7 )   6.0  
      Total deposits       6.6  %   10.2  %   8.3  %
 
PERCENTAGE CHANGES IN SELECTED INCOME STATEMENT ITEMS    
    BASED ON OPERATING EARNINGS ADJUSTED FOR PURCHASE ACQUISITIONS (2)    
    Net interest income - taxable equivalent       0.3  %   (.1 ) %   2.7  %
    Noninterest income    
      Insurance commissions       9.9     (14.9 )   11.2  
      Service charges on deposits       (4.1 )   (5.8 )   0.7  
      Other nondeposit fees and commissions       16.7     8.6     21.1  
      Investment banking and brokerage fees and commissions       13.8     22.6     6.3  
      Trust revenue       8.6     20.6     4.5  
      Mortgage banking income (4)       (11.2 )   (41.6 )   12.3  
      Securities gains (losses), net       NM     NM     NM  
      Other income       25.9     109.0     20.1  
    Total noninterest income (4)       8.3     8.9     9.5  
    Noninterest expense    
      Personnel expense       9.4     8.0     10.5  
      Occupancy and equipment expense       4.3     4.6     3.4  
      Other noninterest expense       10.9     26.3     6.7  
    Total noninterest expense       9.2  %   12.8  %   8.4  %


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.

  (2)

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

  (3)

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

  (4)

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   Tamera L. Gjesdal    
BB&T Corporation (NYSE:BBT)   Vice President   (336) 733-3058  
Page 13   Investor Relations   FAX (336) 733-3132  

  As of / For the Quarter Ended
(Dollars in thousands) 9/30/06 6/30/06 3/31/06 12/31/05 9/30/05
SELECTED MORTGAGE BANKING INFORMATION          
Residential Mortgage Servicing Rights (1)     $ 480,839   $ 499,706   $ 462,920   $ 431,213   $ 397,908  
 
Income Statement Impact of Mortgage Servicing    
Rights Valuation:    
   MSRs fair value (decrease) increase     $ (40,620 ) $ 32,389   $ 28,883   $ —   $ —  
   MSRs valuation recaptures       —     —     —     29,407     66,666  
   MSRs derivative hedge gains (losses)       40,080     (28,873 )   (24,834 )   (32,747 )   (55,632 )
     Net     $ (540 ) $ 3,516   $ 4,049   $ (3,340 ) $ 11,034  
Residential Mortgage Loan Originations     $ 2,461,175   $ 2,656,293   $ 2,308,835   $ 2,450,434   $ 3,130,026  
 
Residential Mortgage Servicing Portfolio:    
     Loans serviced for others     $ 28,589,372   $ 27,024,724   $ 26,787,683   $ 26,624,810   $ 26,547,319  
     Bank owned loans serviced       15,847,368     15,671,640     15,036,187     14,481,561     14,200,691  
       Total servicing portfolio       44,436,740     42,696,364     41,823,870     41,106,371     40,748,010  
     Weighted Average Coupon Rate       5.90  %   5.86  %   5.84  %   5.83  %   5.82  %
     Weighted Average Servicing Fee       .351     .351     .351     .349     .349  


  For the Quarter Ended
(Dollars in thousands, except per share data) 9/30/06 6/30/06 3/31/06 12/31/05 9/30/05
RECONCILIATION TABLE          
Net income     $ 417,028   $ 429,100   $ 431,513   $ 429,574   $ 442,006  
   Merger-related items, net of tax       6,182     989     (1,853 )   (3,771 )   (1,130 )
   Equity-based compensation, net of tax       6,543     6,238     16,363     —     —  
   Other, net of tax (4)       —     —     (18,334 )   —     —  
Operating earnings       429,753     436,327     427,689     425,803     440,876  
   Amortization of intangibles, net of tax       16,869     15,892     15,818     18,305     16,718  
   Amortization of mark-to-market adjustments, net of tax       976     2,556     3,141     4,758     4,756  
Cash basis operating earnings       447,598     454,775     446,648     448,866     462,350  
Return on average assets       1.42  %   1.53  %   1.60  %   1.58  %   1.65  %
   Effect of merger-related items, net of tax       .02     —     —     (.01 )   (.01 )
   Effect of equity-based compensation, net of tax       .02     .03     .06     —     —  
   Effect of other, net of tax (4)       —     —     (.07 )   —     —  
Operating return on average assets       1.46     1.56     1.59     1.57     1.64  
   Effect of amortization of intangibles, net of tax (2)       .13     .13     .14     .14     .15  
   Effect of amortization of mark-to-market adjustments,    
     net of tax       —     .01     .01     .02     .02  
Cash basis operating return on average    
    tangible assets       1.59     1.70     1.74     1.73     1.81  
Return on average equity       14.39  %   15.34  %   15.72  %   15.32  %   15.69  %
   Effect of merger-related items, net of tax       .21     .04     (.07 )   (.14 )   (.04 )
   Effect of equity-based compensation, net of tax       .23     .22     .60     —     —  
   Effect of other, net of tax (4)       —     —     (.67 )   —     —  
Operating return on average equity       14.83     15.60     15.58     15.18     15.65  
   Effect of amortization of intangibles, net of tax (2)       13.64     13.27     12.63     12.40     12.62  
   Effect of amortization of mark-to-market adjustments,    
     net of tax       .06     .09     .20     .30     .29  
Cash basis operating return on average    
   tangible equity       28.53     28.96     28.41     27.88     28.56  
Efficiency ratio (taxable equivalent) (3)       56.2  %   54.0  %   53.5  %   52.6  %   51.5  %
   Effect of merger-related items       (.6 )   (.1 )   .2     .4     .2  
   Effect of equity-based compensation       (.7 )   (.7 )   (1.7 )   —     —  
   Effect of other (4)       —     —     1.8     —     —  
Operating efficiency ratio (3)       54.9     53.2     53.8     53.0     51.7  
   Effect of amortization of intangibles       (1.6 )   (1.6 )   (1.6 )   (1.9 )   (1.8 )
   Effect of amortization of mark-to-market adjustments       (.1 )   (.1 )   (.2 )   (.2 )   (.2 )
Cash basis operating efficiency ratio (3)       53.2     51.5     52.0     50.9     49.7  
Basic earnings per share     $ .77   $ .80   $ .80   $ .79   $ .81  
   Effect of merger-related items, net of tax       .01     —     (.01 )   (.01 )   —  
   Effect of equity-based compensation, net of tax       .02     .01     .03     —     —  
   Effect of other, net of tax (4)       —     —     (.03 )   —     —  
Operating basic earnings per share       .80     .81     .79     .78     .81  
Diluted earnings per share     $ .77   $ .79   $ .79   $ .78   $ .80  
   Effect of merger-related items, net of tax       .01     —     —     —     —  
   Effect of equity-based compensation, net of tax       .01     .02     .03     —     —  
   Effect of other, net of tax (4)       —     —     (.03 )   —     —  
Operating diluted earnings per share       .79     .81     .79     .78     .80  
   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  
Cash basis operating diluted earnings per share       .82     .84     .82     .82     .84  


NOTES:  

Applicable ratios are annualized.

  (1)

Balances exclude commercial mortgage servicing rights totaling $26.3 million, $24.2 million, $22.4 million, $20.1 million and $16.6 million as of September 30, 2006, June 30, 2006, March 31, 2006, December 31, 2005 and September 30, 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 charges or credits, equity-based compensation and nonrecurring items, 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.

QUARTERLY PERFORMANCE SUMMARY   Tamera L. Gjesdal    
BB&T Corporation (NYSE:BBT)   Vice President   (336) 733-3058  
Page 14   Investor Relations   FAX (336) 733-3132  

  For the Nine Months Ended
(Dollars in thousands, except per share data) 9/30/06 9/30/05
RECONCILIATION TABLE    
Net income     $ 1,277,641   $ 1,224,195  
   Merger-related items, net of tax       5,318     (3,006 )
   Equity-based compensation, net of tax       29,144     —  
   Other, net of tax (3)       (18,334 )   26,619  
Operating earnings       1,293,769     1,247,808  
   Amortization of intangibles, net of tax       48,579     52,449  
   Amortization of mark-to-market adjustments, net of tax       6,673     13,881  
Cash basis operating earnings       1,349,021     1,314,138  
Return on average assets       1.51  %   1.58  %
   Effect of merger-related items, net of tax       .01     —  
   Effect of equity-based compensation, net of tax       .03     —  
   Effect of other, net of tax (3)       (.02 )   .03  
Operating return on average assets       1.53     1.61  
   Effect of amortization of intangibles, net of tax (1)       .13     .15  
   Effect of amortization of mark-to-market adjustments, net of tax       .01     .02  
Cash basis operating return on average tangible assets       1.67     1.78  
Return on average equity       15.13  %   14.82  %
   Effect of merger-related items, net of tax       .06     (.04 )
   Effect of equity-based compensation, net of tax       .35     —  
   Effect of other, net of tax (3)       (.21 )   .32  
Operating return on average equity       15.33     15.10  
   Effect of amortization of intangibles, net of tax (1)       13.16     12.41  
   Effect of amortization of mark-to-market adjustments, net of tax       .14     .30  
Cash basis operating return on average tangible equity       28.63     27.81  
Efficiency ratio (taxable equivalent) (2)       54.6  %   53.2  %
   Effect of merger-related items       (.2 )   .1  
   Effect of equity-based compensation       (1.0 )   —  
   Effect of other (3)       .6     (1.0 )
Operating efficiency ratio (2)       54.0     52.3  
   Effect of amortization of intangibles       (1.6 )   (1.9 )
   Effect of amortization of mark-to-market adjustments       (.1 )   (.2 )
Cash basis operating efficiency ratio (2)       52.3     50.2  
Basic earnings per share     $ 2.37   $ 2.23  
   Effect of merger-related items, net of tax       .01     —  
   Effect of equity-based compensation, net of tax       .05     —  
   Effect of other, net of tax (3)       (.03 )   .05  
Operating basic earnings per share       2.40     2.28  
Diluted earnings per share     $ 2.35   $ 2.22  
   Effect of merger-related items, net of tax       .01     (.01 )
   Effect of equity-based compensation, net of tax       .05     —  
   Effect of other, net of tax (3)       (.03 )   .05  
Operating diluted earnings per share       2.38     2.26  
   Effect of amortization of intangibles, net of tax       .09     .09  
   Effect of amortization of mark-to-market adjustments, net of tax       .01     .03  
Cash basis operating diluted earnings per share       2.48     2.38  


NOTES:

Applicable ratios are annualized.

  (1)

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

  (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. Operating and cash basis ratios also exclude merger-related charges or credits, equity-based compensation and nonrecurring items, where applicable.

  (3)

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.