EX-99.1 2 exhibit991.htm Exhibit 99.1

April 19, 2007

FOR IMMEDIATE RELEASE

Contacts:    
ANALYSTS MEDIA
Tamera Gjesdal Chris Henson Bob Denham
Senior Vice President Senior Executive Vice President Senior Vice President
Investor Relations Chief Financial Officer Corporate Communications
(336) 733-3058 (336) 733-3008 (336) 733-1475

BB&T reports 1st quarter net income of $421 million;

Operating earnings per share total $.78 for the quarter

     WINSTON-SALEM, N.C. -- BB&T Corporation (NYSE: BBT) reported today net income for the first quarter of 2007 totaling $421 million, or $.77 per diluted share, compared with $431 million, or $.79 per diluted share, earned during the first quarter of 2006. These results reflect decreases of 2.3% and 2.5%, 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 1.41% and 14.81%, respectively, compared to prior year returns of 1.60% and 15.72%, respectively.

     Operating earnings for the first quarter of 2007 totaled $425 million, or $.78 per diluted share, excluding $4 million in net after-tax merger-related and restructuring charges. Operating earnings for the first quarter of 2006 totaled $411 million, excluding an $18 million after-tax gain from the sale of duplicate facilities and $2 million in net after-tax merger-related credits. These results reflect increases of 3.4% and 2.6%, 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 and restructuring charges or credits and nonrecurring items from earnings. Cash basis operating earnings totaled $441 million for the first quarter of 2007, an increase of 2.6% compared to the first quarter of 2006. Cash basis operating diluted earnings per share totaled $.81 for the first quarter of 2007, an increase of 2.5% compared to $.79 earned during the same period in 2006. Cash basis operating earnings for the first quarter of 2007 produced annualized returns on average tangible assets and average tangible shareholders’ equity of 1.54% and 28.20%, respectively, compared to prior year returns of 1.67% and 26.73%, respectively.

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     “Overall, I am pleased with our first quarter performance, particularly in light of a challenging  interest rate environment and a slowing economy,” said Chairman and Chief Executive Officer John A. Allison. “We continue to experience solid loan and deposit growth and have healthy asset quality. I am also pleased with the progress we made this quarter in operating efficiency, which improved to 52.1% on a cash basis, generating positive operating leverage of 6.2% compared with the fourth quarter of last year. Considering that our first quarter typically includes a number of adverse seasonal factors, I am encouraged that these results represent a good start for 2007.”

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 2007 compared to 2006. Total noninterest income was $652 million for the current quarter, an increase of 7.2% compared with the same period in 2006. This increase includes improved revenues from insurance operations, trust services, service charges on deposit accounts, and other nondeposit fees and commissions.

     BB&T’s insurance operations continue to expand through acquisitions and internal growth and are the largest provider of noninterest income. Insurance commissions increased 11.9% to $197 million in the current quarter compared with $176 million earned during the first quarter last year. This increase was primarily the result of increased commissions from the sale of property and casualty coverage.

     Trust revenues increased 8.1% to $40 million in the first quarter of 2007 compared with $37 million earned in the first quarter of 2006. This increase was primarily driven by improved performance in BB&T’s Wealth Management division.

     Service charges on deposit accounts totaled $138 million for the first quarter of 2007, an increase of 5.3% compared to $131 million earned in the same quarter last year. This increase was primarily attributable to growth in revenues from overdraft items.

     Other nondeposit fees and commissions totaled $114 million for the first quarter of 2007, an increase of 11.8% compared to the first quarter of 2006. This increase was generated primarily by growth in check card-related services.

Asset Quality Remains Excellent

     BB&T’s asset quality remained excellent during the first quarter of 2007. Nonperforming assets, as a percentage of total assets, were .30% at March 31 and .29% at Dec. 31, 2006, compared to .27% at March 31, 2006. Annualized net charge-offs were .29% of average loans and leases for the first quarter of 2007, up slightly from .26% in the first quarter of 2006, but down from .33% in the fourth quarter of 2006. Excluding losses incurred by BB&T’s specialized lending subsidiaries, annualized net charge-offs were .13% of average loans and leases for the current quarter and the first quarter last year.

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BB&T Produces Positive Operating Leverage Driven By Improved Expense Control

     BB&T produced positive operating leverage of 6.2% on an annualized basis during the first quarter of 2007 compared to the fourth quarter of 2006 and 2.6% compared to the first quarter last year. These results were driven primarily by better expense control. BB&T’s noninterest expenses totaled $883 million for the first quarter of 2007, a decrease of 17.2%, compared to $922 million for the fourth quarter of 2006. Excluding merger-related and restructuring charges or credits, nonrecurring items and growth resulting from purchase acquisitions, noninterest expenses decreased 19.4% on an annualized basis compared to the fourth quarter of 2006 and 1.0% compared to the first quarter of 2006. The decline in noninterest expenses is attributable to BB&T’s greater emphasis on cost control for 2007.

Combined Loan and Deposit Growth Remains Strong

     Average loans and leases totaled $84.9 billion for the first quarter of 2007, reflecting an increase of $9.5 billion, or 12.5%, compared to the first quarter of 2006. This increase was composed of growth in average commercial loans and leases, which increased $4.2 billion, or 11.4%, average mortgage loans, which increased $1.8 billion, or 12.4%, average consumer loans, which increased $1.4 billion, or 6.5%, and growth in average loans originated by BB&T’s specialized lending subsidiaries, which increased $2.0 billion, or 71.9%, compared to the first quarter last year. The growth in loans originated by BB&T’s specialized lending subsidiaries was primarily driven by the acquisition of AFCO Credit Corporation, which added approximately $1.2 billion in loans. Excluding the impact of this acquisition, average loans in BB&T’s specialized lending group increased 25.5% compared to the first quarter last year.

     Average deposits totaled $82.5 billion for the first quarter of 2007, an increase of 11.2% compared to $74.2 billion for the first quarter of 2006. Total average client deposits totaled $73.6 billion for the first quarter of 2007, an increase of 12.7% compared to $65.3 billion for the first quarter of 2006. Average retail deposit growth was led by client certificates of deposit, which increased $5.2 billion, or 26.0%, and other client deposits, which increased $2.7 billion, or 8.8% . During the first quarter of 2007, BB&T’s banking network generated approximately 33,000 net new transaction accounts.

BB&T Receives Recognition for Online Account Opening System

     BB&T was ranked among the top five in the nation by Change Sciences Group, a national research firm, for the best online customer experience of the top forty national and regional banks. BB&T’s new online account opening system also received high marks from Forrester Research in a Feb. 2007 report titled, “How BB&T Built a Superior Online Application.” Forrester, a technology and marketing research company, said that BB&T’s new online application “promises to be the envy of the industry and has already led to more sales, reduced costs, and a better overall customer experience.” BB&T’s banking network generated approximately 5,000 net new transaction accounts via the new online account opening system during the first quarter of 2007.

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Acquisition of AFCO, CAFO Completed in First Quarter

     On Jan. 2, BB&T completed its acquisition of insurance premium finance company, AFCO Credit Corporation, and its Canadian affiliate, CAFO Inc. The acquisition moves BB&T from the ninth to the second largest provider of insurance premium financing in the United States and the largest in Canada.

Coastal Financial Acquisition Planned for 2nd Quarter

     In the fourth quarter last year, BB&T announced plans to acquire Coastal Financial Corporation, of Myrtle Beach, S.C. Coastal Financial operates 24 banking offices in high-growth markets in the Myrtle Beach, S.C., and the Wilmington, N.C., areas. The merger, which is subject to regulatory and shareholder approval, is expected to close in the second quarter this year.

     At March 31, BB&T had $121.7 billion in assets and operated 1,472 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 18 was $41.05 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 2007 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 4.

#

     Prior period operating and cash basis results have been revised to include equity-based compensation expense to be comparable with the 2007 results presented herein.

     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 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)   Senior Vice President   (336) 733-3058  
Page 5   Investor Relations   FAX (336) 733-3132  

    For the Three Months Ended   Increase (Decrease)
(Dollars in millions, except per share data)   3/31/07   3/31/06   $ %
OPERATING EARNINGS STATEMENTS (1)                    
   Interest income - taxable equivalent   $ 1,909 $ 1,578 $ 331   21.0 %
   Interest expense     946   659   287   43.6  
      Net interest income - taxable equivalent     963   919   44   4.8  
   Less: Taxable equivalent adjustment     18   22   (4)   (18.2 )
      Net interest income     945   897   48   5.4  
   Provision for credit losses     71   47   24   51.1  
      Net interest income after provision for credit losses   874   850   24   2.8  
   Noninterest income     652   608   44   7.2  
   Noninterest expense     877   850   27   3.2  
   Operating earnings before income taxes     649   608   41   6.7  
   Provision for income taxes     224   197   27   13.7  
      Operating earnings (1)   $ 425 $ 411 $ 14   3.4 %
PER SHARE DATA BASED ON OPERATING EARNINGS (1)                  
   Basic earnings   $ .78 $ .76 $ .02   2.6 %
   Diluted earnings     .78   .76   .02   2.6  
   Weighted average shares - Basic 541,850,632   539,952,669          
  Diluted 547,229,662   543,435,830          
   Dividends paid per share   $ .42 $ .38 $ .04   10.5 %
PERFORMANCE RATIOS BASED ON OPERATING EARNINGS (1)                  
   Return on average assets     1.42  % 1.53  %        
   Return on average equity     14.94   14.98          
   Net yield on earning assets (taxable equivalent)     3.61   3.82          
   Efficiency ratio (taxable equivalent) (2)     53.7   55.6          
CASH BASIS PERFORMANCE                    
   BASED ON OPERATING EARNINGS (1)(3)                    
   Cash basis operating earnings   $ 441 $ 430 $ 11   2.6 %
   Diluted earnings per share     .81   .79   .02   2.5  
   Return on average tangible assets     1.54  % 1.67  %        
   Return on average tangible equity     28.20   26.73          
   Efficiency ratio (taxable equivalent) (2)     52.1   53.7          
 
 
    For the Three Months Ended   Increase (Decrease)
(Dollars in millions, except per share data)   3/31/07   3/31/06   $ %
INCOME STATEMENTS                    
   Interest income   $ 1,891 $ 1,556 $ 335   21.5 %
   Interest expense     946   659   287   43.6  
      Net interest income     945   897   48   5.4  
   Provision for credit losses     71   47   24   51.1  
      Net interest income after provision for credit losses   874   850   24   2.8  
   Noninterest income     652   608   44   7.2  
   Noninterest expense     883   819   64   7.8  
   Income before income taxes     643   639   4   .6  
   Provision for income taxes     222   208   14   6.7  
      Net income   $ 421 $ 431 $ (10)   (2.3) %
PER SHARE DATA                    
   Basic earnings   $ .78 $ .80 $ (.02)   (2.5) %
   Diluted earnings     .77   .79   (.02)   (2.5)  
   Weighted average shares - Basic 541,850,632   539,952,669          
  Diluted 547,229,662   543,435,830          
PERFORMANCE RATIOS BASED ON NET INCOME                    
   Return on average assets     1.41  % 1.60  %        
   Return on average equity     14.81   15.72          
   Efficiency ratio (taxable equivalent) (2)     54.1   53.5          

NOTES:    Prior period operating and cash basis results have been revised to include equity-based compensation expense to be comparable with the 2007 results presented herein.
   Applicable ratios are annualized.
(1)   Operating earnings exclude the effect of merger-related charges or credits and nonrecurring items. These amounts totaled $4 million and $(20 million), net of tax, in the first quarters of 2007 and 2006, 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 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, net of deferred taxes, 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)   Senior Vice President   (336) 733-3058  
Page 6   Investor Relations   FAX (336) 733-3132  

        As of / For the Three Months Ended   Increase (Decrease)
(Dollars in millions)       3/31/07   3/31/06   $   %  
CONSOLIDATED BALANCE SHEETS                      
   End of period balances                      
   Cash and due from banks     $ 1,749 $ 1,933 $ (184 )   (9.5 )%
   Interest-bearing deposits with banks       484   373   111   29.8  
   Federal funds sold and other earning assets       298   444   (146 )   (32.9 )
   Securities available for sale       20,898   19,434   1,464   7.5  
   Trading securities       906   745   161   21.6  
      Total securities       21,804   20,179   1,625   8.1  
   Commercial loans and leases       41,241   37,191   4,050   10.9  
   Direct retail loans       15,283   14,543   740   5.1  
   Sales finance loans       5,774   5,177   597   11.5  
   Revolving credit loans       1,386   1,299   87   6.7  
   Mortgage loans       16,674   15,036   1,638   10.9  
   Specialized lending       4,962   3,033   1,929   63.6  
      Total loans and leases       85,320   76,279   9,041   11.9  
   Allowance for loan and lease losses       896   833   63   7.6  
      Total earning assets       108,193   97,985   10,208   10.4  
   Premises and equipment, net       1,431   1,268   163   12.9  
   Goodwill       4,860   4,301   559   13.0  
   Core deposit and other intangibles       479   479   -   -  
   Other assets       6,165   5,611   554   9.9  
      Total assets       121,694   110,034   11,660   10.6  
   Noninterest-bearing deposits       13,533   13,413   120   .9  
   Interest checking       1,288   1,339   (51 ) (3.8 )
   Other client deposits       34,657   32,074   2,583   8.1  
   Client certificates of deposit       25,322   20,353   4,969   24.4  
     Total client deposits       74,800   67,179   7,621   11.3  
   Other interest-bearing deposits       5,039   8,385   (3,346 ) (39.9 )
      Total deposits       79,839   75,564   4,275   5.7  
   Fed funds purchased, repos and other borrowings       6,770   6,356   414   6.5  
   Long-term debt       19,936   13,046   6,890   52.8  
      Total interest-bearing liabilities       93,012   81,553   11,459   14.1  
   Other liabilities       3,499   4,098   (599 ) (14.6 )
      Total liabilities       110,044   99,064   10,980   11.1  
      Total shareholders' equity     $ 11,650 $ 10,970 $ 680   6.2  %
   Average balances                      
   Securities, at amortized cost     $ 21,872 $ 20,955 $ 917   4.4  %
   Commercial loans and leases       41,122   36,898   4,224   11.4  
   Direct retail loans       15,272   14,498   774   5.3  
   Sales finance loans       5,734   5,216   518   9.9  
   Revolving credit loans       1,387   1,317   70   5.3  
   Mortgage loans       16,481   14,665   1,816   12.4  
   Specialized lending       4,898   2,849   2,049   71.9  
      Total loans and leases       84,894   75,443   9,451   12.5  
   Allowance for loan and lease losses       894   828   66   8.0  
   Other earning assets       840   777   63   8.1  
      Total earning assets       107,606   97,175   10,431   10.7  
      Total assets       121,054   109,132   11,922   10.9  
   Noninterest-bearing deposits       12,946   12,852   94   .7  
   Interest checking       2,206   1,906   300   15.7  
   Other client deposits       33,393   30,687   2,706   8.8  
   Client certificates of deposit       25,076   19,897   5,179   26.0  
     Total client deposits       73,621   65,342   8,279   12.7  
   Other interest-bearing deposits       8,902   8,857   45   .5  
      Total deposits       82,523   74,199   8,324   11.2  
   Fed funds purchased, repos and other borrowings       7,627   6,685   942   14.1  
   Long-term debt       16,086   13,111   2,975   22.7  
      Total interest-bearing liabilities       93,290   81,143   12,147   15.0  
      Total shareholders' equity     $ 11,522 $ 11,134 $ 388   3.5  %
 
    As of / For the Quarter Ended
(Dollars in millions, except per share data)   3/31/07   12/31/06   9/30/06   6/30/06   3/31/06  
MISCELLANEOUS INFORMATION                      
 
   Unrealized depreciation on                      
      securities available for sale, net of tax $ (178 )  $ (249 )  $ (313 ) $ (535 ) $ (450)  
   Derivatives (notional value)   40,159   23,097   25,054   24,282   21,134  
   Fair value of derivatives portfolio   (40)   (45)   (26)   (215)   (135)  
   Common stock prices: High 44.30   44.74   44.54   43.46   42.85  
  Low 39.54   42.48   39.87   39.09   38.24  
End of period 41.02   43.93   43.78   41.59   39.20  
   Weighted average shares - Basic 541,850,632   540,807,172   538,911,074   536,882,392   539,952,669  
  Diluted 547,229,662   546,618,368   544,285,889   541,607,530   543,435,830  
   End of period shares outstanding   542,415,919   541,475,305   540,652,126   536,895,965   535,588,093  
   End of period banking offices   1,472   1,459   1,462   1,443   1,409  
   ATMs   2,121   2,125   2,106   2,057   1,964  
   FTEs   28,876   29,344   29,112   29,016   28,300  

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)   Senior Vice President   (336) 733-3058  
Page 7   Investor Relations   FAX (336) 733-3132  

  As of / For the Quarter Ended
(Dollars in millions, except per share data) 3/31/07   12/31/06   9/30/06   6/30/06   3/31/06
OPERATING EARNINGS STATEMENTS (1)                    
   Interest income - taxable equivalent                    
   Interest and fees on loans and leases $ 1,622 $ 1,609 $ 1,571 $ 1,452 $ 1,341
   Interest and dividends on securities   277   255   243   228   230
   Interest on short-term investments   10   24   11   10   7
      Total interest income - taxable equivalent 1,909   1,888   1,825   1,690   1,578
   Interest expense                    
   Interest on deposits   647   616   586   496   439
   Interest on fed funds purchased, repos and other borrowings   87   80   75   81   65
   Interest on long-term debt   212   214   204   174   155
      Total interest expense   946   910   865   751   659
   Net interest income - taxable equivalent   963   978   960   939   919
   Less: Taxable equivalent adjustment   18   22   22   22   22
      Net interest income   945   956   938   917   897
   Provision for credit losses   71   73   62   58   47
      Net interest income after provision for                    
         credit losses   874   883   876   859   850
   Noninterest income                    
   Insurance commissions   197   214   209   214   176
   Service charges on deposits   138   141   138   138   131
   Other nondeposit fees and commissions   114   116   115   111   102
   Investment banking and brokerage fees and commissions   82   75   82   79   81
   Trust revenue   40   40   39   38   37
   Mortgage banking income   30   24   23   29   32
   Securities (losses) gains, net   (11 ) 2   -   -   -
   Other noninterest income   62   65   54   42   49
      Total noninterest income   652   677   660   651   608
   Noninterest expense                    
   Personnel expense   524   533   524   506   514
   Occupancy and equipment expense   116   118   114   109   108
   Foreclosed property expense   7   6   4   4   4
   Amortization of intangibles   25   27   27   25   25
   Other noninterest expense   205   229   236   214   199
      Total noninterest expense   877   913   905   858   850
   Operating earnings before income taxes   649   647   631   652   608
   Provision for income taxes   224   205   207   222   197
      Operating earnings (1) $ 425 $ 442 $ 424 $ 430 $ 411
PER SHARE DATA BASED ON                    
   OPERATING EARNINGS (1)                    
   Basic earnings $ .78 $ .82 $ .79 $ .80 $ .76
   Diluted earnings   .78   .81   .78   .79   .76
   Dividends paid per share   .42   .42   .42   .38   .38
PERFORMANCE RATIOS BASED ON                    
   OPERATING EARNINGS (1)                    
   Return on average assets 1.42  % 1.48  % 1.44  % 1.54  % 1.53  %
   Return on average equity 14.94   14.70   14.60   15.37   14.98
   Net yield on earning assets (taxable equivalent) 3.61   3.70   3.68   3.76   3.82
   Efficiency ratio (taxable equivalent) (2) 53.7   54.8   55.6   53.9   55.6
   Noninterest income as a percentage of                    
      total income (taxable equivalent) (2) 40.6   40.9   40.8   40.8   39.7
   Average earning assets as a percentage of                    
      average total assets 88.9   88.6   88.8   89.0   89.0
   Average loans and leases as a percentage of                    
      average deposits 102.9   103.5   102.4   103.1   101.7
CASH BASIS PERFORMANCE BASED ON                    
   OPERATING EARNINGS (1) (3)                    
 
   Cash basis operating earnings $ 441 $ 460 $ 441 $ 449 $ 430
   Diluted earnings per share   .81   .84   .81   .83   .79
   Return on average tangible assets 1.54  % 1.61  % 1.57  % 1.67  % 1.67  %
   Return on average tangible equity 28.20   26.88   27.43   27.90   26.73
   Efficiency ratio (taxable equivalent) (2) 52.1   53.1   53.9   52.1   53.7

NOTES:    Prior period operating and cash basis results have been revised to include equity-based compensation expense to be comparable with the 2007 results presented herein.
   Applicable ratios are annualized.
(1)   Operating earnings exclude the effect of merger-related charges or credits and nonrecurring items. These amounts totaled $4 million, $191 million, $7 million, $1 million and $(20 million), net of tax, for the quarters ended March 31, 2007, December 31, 2006, September 30, 2006, June 30, 2006, and March 31, 2006, 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 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, net of deferred taxes, 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)   Senior Vice President   (336) 733-3058  
Page 8   Investor Relations   FAX (336) 733-3132  

  As of / For the Quarter Ended
(Dollars in millions, except per share data) 3/31/07   12/31/06   9/30/06   6/30/06   3/31/06  
 
INCOME STATEMENTS                      
   Interest income                      
   Interest and fees on loans and leases $ 1,613 $ 1,601 $ 1,562 $ 1,445 $ 1,333  
   Interest and dividends on securities   268   241   230   213   216  
   Interest on short-term investments   10   24   11   10   7  
      Total interest income 1,891   1,866   1,803   1,668   1,556  
   Interest expense                      
   Interest on deposits   647   616   586   496   439  
   Interest on fed funds purchased, repos and other borrowings   87   80   75   81   65  
   Interest on long-term debt   212   214   204   174   155  
      Total interest expense   946   910   865   751   659  
   Net interest income   945   956   938   917   897  
   Provision for credit losses   71   73   62   58   47  
      Net interest income after provision for                      
         credit losses   874   883   876   859   850  
   Noninterest income                      
   Insurance commissions   197   214   209   214   176  
   Service charges on deposits   138   141   138   138   131  
   Other nondeposit fees and commissions   114   116   115   111   102  
   Investment banking and brokerage fees and commissions   82   75   82   79   81  
   Trust revenue   40   40   39   38   37  
   Mortgage banking income   30   24   23   29   32  
   Securities (losses) gains, net   (11 ) (73 ) -   -   -  
   Other noninterest income   62   65   54   42   49  
      Total noninterest income   652   602   660   651   608  
   Noninterest expense                      
   Personnel expense   524   533   524   506   514  
   Occupancy and equipment expense   116   118   114   109   108  
   Foreclosed property expense   7   6   4   4   4  
   Amortization of intangibles   25   27   27   25   25  
   Merger-related and restructuring charges (credits), net   6   9   10   2   (3 )
   Other noninterest expense   205   229   236   214   171  
      Total noninterest expense   883   922   915   860   819  
   Income before income taxes   643   563   621   650   639  
   Provision for income taxes   222   312   204   221   208  
      Net income $ 421 $ 251 $ 417 $ 429 $ 431  
PER SHARE DATA                      
   Basic earnings $ .78 $ .46 $ .77 $ .80 $ .80  
   Diluted earnings   .77   .46   .77   .79   .79  
 
  For the Quarter Ended
  3/31/07   12/31/06   9/30/06   6/30/06   3/31/06  
ANNUALIZED INTEREST YIELDS / RATES (1)                      
Interest income:                      
   Securities:                      
      U.S. Treasury securities 4.47  % 4.48  % 3.72  % 3.19  % 3.11  %
      U.S. government-sponsored entity securities 4.39   4.17   4.00   3.96   3.95  
      Mortgage-backed securities 5.09   5.10   5.10   4.83   4.81  
      States and political subdivisions 6.85   7.00   6.90   6.84   6.82  
      Other securities 7.03   6.45   5.24   5.25   6.01  
      Trading securities 5.89   3.45   3.31   2.94   3.70  
      Total securities 5.06   4.72   4.47   4.33   4.39  
   Loans:                      
      Commercial loans and leases 7.89   7.97   8.00   7.73   7.39  
      Consumer loans 7.51   7.44   7.38   7.14   6.95  
      Mortgage loans 5.90   5.85   5.79   5.66   5.50  
      Specialized lending 13.62   15.29   15.32   15.12   15.14  
         Total loans 7.73   7.73   7.70   7.47   7.19  
   Other earning assets (2) 4.96   10.44   4.16   4.23   3.76  
            Total earning assets 7.17   7.14   6.99   6.77   6.56  
Interest expense:                      
   Interest-bearing deposits:                      
      Interest checking 2.38   2.29   1.94   1.78   1.38  
      Other client deposits 2.82   2.76   2.61   2.29   2.03  
      Client certificates of deposit 4.60   4.53   4.33   3.99   3.66  
      Other interest-bearing deposits 5.35   5.35   5.36   5.00   4.54  
         Total interest-bearing deposits 3.77   3.67   3.54   3.20   2.90  
         Fed funds purchased, repos and other borrowings (2) 4.61   4.51   4.43   4.30   3.95  
         Long-term debt 5.32   5.27   5.28   5.04   4.77  
            Total interest-bearing liabilities 4.11   4.02   3.91   3.60   3.29  
   Net yield on earning assets 3.61  % 3.70  % 3.68  % 3.76  % 3.82  %


NOTES: (1) Fully taxable equivalent yields. Securities yields calculated based on amortized cost.
              (2) The fourth quarter of 2006 includes interest income and expense associated with a deposit placed with the IRS to curtail the accrual of interest on disputed tax payments.

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

   As of / For the Quarter Ended
(Dollars in millions, except per share data)   3/31/07   12/31/06   9/30/06   6/30/06   3/31/06  
SELECTED BALANCE SHEET DATA                      
   End of period balances                      
   Securities available for sale $ 20,898 $ 20,721 $ 20,733 $ 20,091 $ 19,434
   Trading securities   906   2,147   888   919   745  
     Total securities   21,804   22,868   21,621   21,010   20,179  
   Commercial loans and leases   41,241   41,300   40,430   39,652   37,191  
   Direct retail loans   15,283   15,312   15,244   14,941   14,543  
   Sales finance loans   5,774   5,683   5,553   5,377   5,177  
   Revolving credit loans   1,386   1,414   1,355   1,328   1,299  
   Mortgage loans   16,674   16,257   15,847   15,681   15,036  
   Specialized lending   4,962   3,625   3,521   3,305   3,033  
     Total loans and leases   85,320   83,591   81,950   80,284   76,279  
   Allowance for loan and lease losses   896   888   883   870   833  
   Other earning assets   782   826   938   959   817  
     Total earning assets   108,193   107,676   105,001   103,097   97,985  
     Total assets   121,694   121,351   118,524   116,284   110,034  
   Noninterest-bearing deposits   13,533   13,393   13,560   13,820   13,413  
   Interest checking   1,288   1,333   1,323   1,597   1,339  
   Other client deposits   34,657   34,062   32,732   32,100   32,074  
   Client certificates of deposit   25,322   24,987   24,356   23,697   20,353  
     Total client deposits   74,800   73,775   71,971   71,214   67,179  
   Other interest-bearing deposits   5,039   7,196   8,095   7,299   8,385  
     Total deposits   79,839   80,971   80,066   78,513   75,564  
   Fed funds purchased, repos and other borrowings   6,770   8,087   7,235   6,797   6,356  
   Long-term debt   19,936   15,904   16,159   15,195   13,046  
     Total interest-bearing liabilities   93,012   91,569   89,900   86,685   81,553  
     Total shareholders' equity   11,650   11,745   11,734   11,164   10,970  
   Goodwill   4,860   4,827   4,824   4,731   4,301  
   Core deposit and other intangibles   479   455   478   493   479  
     Total intangibles   5,339   5,282   5,302   5,224   4,780  
     Mortgage servicing rights $ 525 $ 512 $ 507 $ 524 $ 485  
   Average balances                      
   Securities, at amortized cost $ 21,872 $ 21,609   $ 21,736 $ 21,081 $ 20,955  
   Commercial loans and leases   41,122   40,758   39,977   38,175   36,898  
   Direct retail loans   15,272   15,291   15,100   14,718   14,498  
   Sales finance loans   5,734   5,623   5,453   5,242   5,216  
   Revolving credit loans   1,387   1,362   1,338   1,308   1,317  
   Mortgage loans   16,481   16,091   15,803   15,351   14,665  
   Specialized lending   4,898   3,565   3,373   3,184   2,849  
     Total loans and leases   84,894   82,690   81,044   77,978   75,443  
   Allowance for loan and lease losses   894   891   880   852   828  
   Other earning assets   840   917   977   969   777  
     Total earning assets   107,606   105,216   103,757   100,028   97,175  
     Total assets   121,054   118,777   116,884   112,383   109,132  
   Noninterest-bearing deposits   12,946   13,289   13,511   13,213   12,852  
   Interest checking   2,206   2,284   2,228   2,234   1,906  
   Other client deposits   33,393   32,616   31,713   30,809   30,687  
   Client certificates of deposit   25,076   24,712   23,951   21,627   19,897  
     Total client deposits   73,621   72,901   71,403   67,883   65,342  
   Other interest-bearing deposits   8,902   6,988   7,720   7,743   8,857  
     Total deposits   82,523   79,889   79,123   75,626   74,199  
   Fed funds purchased, repos and other borrowings   7,627   7,109   6,720   7,507   6,685  
   Long-term debt   16,086   16,101   15,433   13,826   13,111  
     Total interest-bearing liabilities   93,290   89,810   87,765   83,746   81,143  
     Total shareholders' equity $ 11,522 $ 11,941   $ 11,500 $ 11,221 $ 11,134  
SELECTED CAPITAL INFORMATION (1)                      
   Risk-based capital:                      
     Tier 1 $ 7,987 $ 8,226   $ 8,155 $ 7,841 $ 7,361  
     Total   12,791   13,016   12,938   11,864   11,418  
   Risk-weighted assets   92,187   90,982   88,619   86,412   81,623  
   Average quarterly tangible assets   116,161   114,007   112,402   108,027   105,038  
   Risk-based capital ratios:                      
     Tier 1   8.7 % 9.0 % 9.2 % 9.1 % 9.0 %
     Total   13.9   14.3   14.6   13.7   14.0  
   Leverage capital ratio   6.9   7.2   7.3   7.3   7.0  
   Equity as a percentage of total assets   9.6   9.7   9.9   9.6   10.0  
   Tangible equity as a percentage of tangible assets (2)   5.5   5.7   5.8   5.5   6.0  
   Book value per share $ 21.48 $ 21.69      $ 21.70 $ 20.79 $ 20.48  
   Tangible book value per share (2)   11.89   12.20   12.18   11.36   11.84  
 

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 and total assets, net of deferred taxes, where applicable.
 
QUARTERLY PERFORMANCE SUMMARY   Tamera L. Gjesdal    
BB&T Corporation (NYSE:BBT)   Senior Vice President   (336) 733-3058  
Page 10   Investor Relations   FAX (336) 733-3132  

  As of / For the Quarter Ended 
(Dollars in millions)   3/31/07     12/31/06     9/30/06     6/30/06     3/31/06    
ASSET QUALITY ANALYSIS                                
   Allowance For Credit Losses                                
     Beginning balance $ 888        $ 884   $ 871        $ 833        $ 830    
     Allowance for acquired (sold) loans, net   3     (1 )   6     25     4    
     Provision for credit losses   71     73     62     58     47    
         Charge-offs                                
               Commercial loans and leases   (10 )   (15 )   (10 )   (7 )   (5 )  
               Direct retail loans   (12 )   (13 )   (12 )   (12 )   (11 )  
               Sales finance loans   (6 )   (5 )   (5 )   (5 )   (6 )  
               Revolving credit loans   (12 )   (12 )   (11 )   (11 )   (11 )  
               Mortgage loans   (1 )   (2 )   (1 )   (1 )   (2 )  
               Specialized lending   (41 )   (36 )   (31 )   (26 )   (27 )  
         Total charge-offs   (82 )   (83 )   (70 )   (62 )   (62 )  
         Recoveries                                
               Commercial loans and leases   8     3     4     5     3    
               Direct retail loans   4     3     3     3     3    
               Sales finance loans   2     2     2     2     2    
               Revolving credit loans   3     3     3     3     2    
               Mortgage loans              -     -              -     1                -    
               Specialized lending   4     4     3     3     4    
         Total recoveries   21     15     15     17     14    
     Net charge-offs   (61 )   (68 )   (55 )   (45 )   (48 )  
     Ending balance $ 901        $ 888   $ 884        $ 871        $ 833    
 
   Allowance For Credit Losses                                
     Allowance for loan and lease losses $ 896        $ 888   $ 883        $ 870        $ 833    
     Reserve for unfunded lending commitments   5     -     1     1                -    
         Total $ 901        $ 888   $ 884        $ 871        $ 833    
   Nonperforming Assets                                
     Nonaccrual loans and leases:                                
               Commercial loans and leases $ 148        $ 129   $ 124        $ 126        $ 110    
               Direct retail loans   43     39     38     39     42    
               Sales finance loans   1     2     2     3     3    
               Revolving credit loans              -     -              -                -                -    
               Mortgage loans   51     53     50     47     50    
               Specialized lending   33     37     31     24     26    
     Total nonaccrual loans and leases   276     260     245     239     231    
     Foreclosed real estate   56     54     55     56     41    
     Other foreclosed property   35     35     30     24     23    
     Restructured loans              -     -     1                -     1    
         Nonperforming assets $ 367        $ 349   $ 331        $ 319        $ 296    
   Loans 90 days or more past due                                
     and still accruing:                                
               Commercial loans and leases $ 18        $ 14   $ 8        $ 19        $ 6    
               Direct retail loans   13     20     17     17     18    
               Sales finance loans   16     17     13     12     18    
               Revolving credit loans   7     6     6     5     4    
               Mortgage loans   39     37     36     32     28    
               Specialized lending   10     8     7     6     5    
     Total loans 90 days or more past due                                
         and still accruing   103     102     87     91     79    
     Loans 90 days or more past due and still accruing                                
         as a percentage of total loans and leases   .12  %   .12  %   .11  %   .11  %   .10  %  
   Asset Quality Ratios                                
     Nonaccrual and restructured loans and leases                                
         as a percentage of total loans and leases   .32  %   .31  %   .30  %   .30  %   .30  %  
     Nonperforming assets as a percentage of:                                
         Total assets   .30     .29     .28     .27     .27    
         Loans and leases plus                                
            foreclosed property   .43     .42     .40     .40     .39    
     Net charge-offs as a percentage of                                
         average loans and leases   .29     .33     .27     .23     .26    
     Net charge-offs excluding specialized                                
         lending as a percentage of average                                
         loans and leases (1)   .13     .18     .14     .12     .13    
     Allowance for loan and lease losses as                                
         a percentage of loans and leases   1.05     1.06     1.08     1.08     1.09    
     Allowance for loan and lease losses as                                
         a percentage of loans and leases                                
         held for investment   1.06     1.07     1.09     1.09     1.10    
     Ratio of allowance for loan and lease losses to:                                
         Net charge-offs   3.58  x   3.29  x   4.07  x   4.78  x 4.31  x  
         Nonaccrual and restructured loans and leases   3.24 3.41 3.59 3.63 3.59
 

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)   Senior Vice President   (336) 733-3058  
Page 11   Investor Relations   FAX (336) 733-3132  

  Percentage Increase (Decrease)      
  QTD Annualized Link QTD
  1Q07 vs. 1Q06     1Q07 vs. 4Q06
PERCENTAGE CHANGES IN SELECTED BALANCES ADJUSTED FOR              
 PURCHASE ACQUISITIONS (1)              
 Average Balances              
 Commercial loans and leases (2) 6.8  %     8.6  %  
 Direct retail loans 3.9       (0.5 )  
 Sales finance loans 9.9       8.0    
 Revolving credit loans 5.3       7.4    
 Mortgage loans (3) 12.5       11.0    
 Specialized lending (4) 14.4       (4.8 )  
     Total loans and leases (2) (3) (4) 7.9       6.5    
 
 Noninterest-bearing deposits (2.0 )     (10.5 )  
 Interest checking 3.4       (13.8 )  
 Other client deposits 6.4       9.7    
 Client certificates of deposit 21.1       6.0    
     Total client deposits 9.2       4.0    
 Other interest-bearing deposits (1.7 )     111.1    
     Total deposits 7.9  %     13.4  %  
 
 
PERCENTAGE CHANGES IN SELECTED INCOME STATEMENT ITEMS              
 BASED ON OPERATING EARNINGS ADJUSTED FOR PURCHASE ACQUISITIONS (1)              
 Net interest income - taxable equivalent (2) (.8 ) %     (13.3 ) %  
 Noninterest income              
     Insurance commissions 9.4       (32.1 )  
     Service charges on deposits 3.0       (8.6 )  
     Other nondeposit fees and commissions 10.7       (7.0 )  
     Investment banking and brokerage fees and commissions 1.2       37.9    
     Trust revenue 8.1                            -    
     Mortgage banking income (5) (10.3 )     (15.0 )  
     Securities gains (losses), net NM       NM    
     Other income 19.2       (18.7 )  
 Total noninterest income (5) 5.3       (17.3 )  
 Noninterest expense              
     Personnel expense (1.3 )     (9.8 )  
     Occupancy and equipment expense 3.6       (6.9 )  
     Other noninterest expense (2.1 )     (42.7 )  
 Total noninterest expense (1.0 ) %     (19.4 ) %  

 

NOTES: All items referring to loans and leases include loans held for sale and are net of unearned income. Applicable ratios are annualized.
(1)    Adjusted to exclude estimated growth that resulted from the timing of acquisitions during 2007 and 2006.
(2)    Adjusted for leveraged leases due to the impact of adopting FSP FAS 13-2.
(3)    Adjusted for the average impact of $51 million in mortgage loans securitized in the fourth quarter of 2006.
(4)    Loans from specialized lending, excluding AFCO/CAFO from both 2006 and 2007, grew 25.5% and 10.2%, respectively, comparing the first quarter 2007 to the first quarter of 2006 and the fourth quarter of 2006 annualized. In addition, total loans grew 8.2% and 7.4%, respectively, for the first quarter of 2007 compared to the first quarter of 2006 and the fourth quarter of 2006 annualized.
(5)    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)   Senior Vice President   (336) 733-3058  
Page 12   Investor Relations   FAX (336) 733-3132  

  As of / For the Quarter Ended
(Dollars in millions)    3/31/07     12/31/06     9/30/06     6/30/06     3/31/06  
SELECTED MORTGAGE BANKING INFORMATION                              
     Residential Mortgage Servicing Rights (1) $ 494   $ 484   $ 481   $ 500   $ 463  
 
     Income Statement Impact of Mortgage Servicing                              
     Rights Valuation:                              
         MSRs fair value (decrease) increase $ 7      $ -   $ (40 )  $ 32    $ 29  
         MSRs derivative hedge gains (losses)   (3 )   (3 )   40     (29 )   (25 )
           Net $ 4      $ (3 ) $          -    $ 3   $ 4  
 
     Residential Mortgage Loan Originations $ 2,461    $ 2,463   $ 2,461      $ 2,656    $ 2,309  
 
     Residential Mortgage Servicing Portfolio:                              
           Loans serviced for others $ 29,420     $ 28,979   $ 28,590      $ 27,025      $ 26,788  
           Bank owned loans serviced   16,571     16,257     15,847     15,681     15,036  
           Total servicing portfolio   45,991     45,236     44,437     42,706     41,824  
           Weighted Average Coupon Rate   5.93  % 5.92  % 5.90  % 5.86  % 5.84  %
           Weighted Average Servicing Fee   .356     .353     .351     .351     .351  
 
  For the Quarter Ended
(Dollars in millions, except per share data)    3/31/07     12/31/06     9/30/06     6/30/06     3/31/06  
RECONCILIATION TABLE                              
     Net income $ 421     $ 251   $ 417    $ 429     $ 431  
         Merger-related and restructuring items, net of tax   4     5     7     1     (2 )
         Other, net of tax (4)   -     186     -     -     (18 )
     Operating earnings   425     442     424     430     411  
         Amortization of intangibles, net of tax   16     17     16     16     16  
         Amortization of mark-to-market adjustments, net of tax   -     1     1     3     3  
     Cash basis operating earnings   441     460     441     449     430  
     Return on average assets   1.41  % .84  % 1.42  % 1.53  % 1.60  %
         Effect of merger-related and restructuring items, net of tax   .01     .02     .02     .01     -  
         Effect of other, net of tax (4)   -     .62     -     -     (.07 )
     Operating return on average assets   1.42     1.48     1.44     1.54     1.53  
         Effect of amortization of intangibles, net of tax (2)   .12     .13     .13     .12     .13  
         Effect of amortization of mark-to-market adjustments,                              
           net of tax   -     -     -     .01     .01  
     Cash basis operating return on average                              
         tangible assets   1.54     1.61     1.57     1.67     1.67  
     Return on average equity   14.81  % 8.33  % 14.39  % 15.34  % 15.72  %
         Effect of merger-related and restructuring items, net of tax   .13     .19     .21     .03     (.07 )
         Effect of other, net of tax (4)   -     6.18     -     -     (.67 )
     Operating return on average equity   14.94     14.70     14.60     15.37     14.98  
         Effect of amortization of intangibles, net of tax (2)   13.26     12.12     12.77     12.37     11.56  
         Effect of amortization of mark-to-market adjustments,                              
           net of tax   -     .06     .06     .16     .19  
     Cash basis operating return on average                              
         tangible equity   28.20     26.88     27.43     27.90     26.73  
     Efficiency ratio (taxable equivalent) (3)   54.1  % 55.3  % 56.2  % 54.0  % 53.5  %
         Effect of merger-related and restructuring items   (.4 )   (.5 )   (.6 )   (.1 )   .2  
         Effect of other (4)   -   -     -     -     1.9  
     Operating efficiency ratio (3)   53.7     54.8     55.6     53.9     55.6  
         Effect of amortization of intangibles   (1.6 )   (1.6 )   (1.6 )   (1.7 )   (1.7 )
         Effect of amortization of mark-to-market adjustments   -     (.1 )   (.1 )   (.1 )   (.2 )
     Cash basis operating efficiency ratio (3)   52.1     53.1     53.9     52.1     53.7  
     Basic earnings per share $ .78     $ .46   $ .77     $ .80      $ .80  
         Effect of merger-related and restructuring items, net of tax   -     .01     .02     -     (.01 )
         Effect of other, net of tax (4)   -     .35     -     -     (.03 )
     Operating basic earnings per share   .78     .82     .79     .80     .76  
     Diluted earnings per share $ .77      $ .46   $ .77     $ .79      $ .79  
         Effect of merger-related and restructuring items, net of tax   .01     .01     .01     -     -  
         Effect of other, net of tax (4)   -     .34     -     -     .03  
     Operating diluted earnings per share   .78     .81     .78     .79     .76  
         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                -  
     Cash basis operating diluted earnings per share   .81     .84     .81     .83     .79  
 
NOTES:    Prior period operating and cash basis results have been revised to include equity-based compensation expense to be comparable with the 2007 results presented herein.
   Applicable ratios are annualized.
(1)    Balances exclude commercial mortgage servicing rights totaling $31 million, $28 million, $26 million, $24 million and $22 million as of March 31, 2007, December 31, 2006, September 30, 2006, June 30, 2006 and March 31, 2006, respectively.
(2)    Reflects the effect of excluding average intangible assets from average assets and average equity, net of deferred taxes, 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 and nonrecurring items, where applicable.
(4)    Reflects an additional tax provision of $139 million related to leveraged leases and a loss on the sale of securities totaling $47 million, net of tax, in the fourth quarter of 2006 and a gain on the sale of duplicate facilities totaling $18 million, net of tax, in the first quarter of 2006