EX-99.1 2 exhibit991a.htm exhibit991a.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing
January 17, 2008        
 
 
FOR IMMEDIATE RELEASE    
 
Contacts:        
ANALYSTS       MEDIA
Tamera Gjesdal   Chris Henson   Bob Denham
Senior Vice President   Sr. Exec. Vice President   Senior Vice President
Investor Relations   Chief Financial Officer   Corporate Communications
(336) 733-3058   (336) 733-3008   (336) 733-1475

BB&T reports 2007 net income of $1.73 billion; up 13.5%

26th Consecutive year of record operating earnings

     WINSTON-SALEM, N.C. -- BB&T Corporation (NYSE: BBT) reported today earnings for the fourth quarter and the full year 2007. For the fourth quarter, net income totaled $411 million, or $.75 per diluted share, compared with $251 million, or $.46 per diluted share, earned during the fourth quarter of 2006. These results reflect increases of 63.7% and 63.0%, respectively, compared to the fourth quarter last year.

     During the fourth quarter of 2007, BB&T recorded a net after-tax liability of $9 million relating to the Visa antitrust lawsuit settlement with American Express and other pending litigation. BB&T expects that proceeds from an anticipated share redemption related to its ownership interest in Visa’s planned initial public offering will more than offset this charge. In addition, BB&T recorded a credit of $7 million to the provision for income taxes related to leveraged lease transactions and $2 million in net after-tax merger-related and restructuring charges.

     Fourth quarter 2006 net income was negatively affected by a $139 million after-tax charge associated with providing additional tax reserves related to leveraged lease transactions, $47 million in after-tax losses resulting from restructuring a portion of the securities portfolio and $5 million in net after-tax merger-related and restructuring charges.

     Excluding the impact of these items from both 2007 and 2006, operating earnings for the fourth quarter of 2007 totaled $415 million, or $.75 per diluted share, compared with fourth quarter 2006 operating earnings of $442 million, or $.81 per diluted share. The 2007 operating results reflect decreases of 6.1% and 7.4%, respectively, compared to the same period last year.

     For the full year 2007, BB&T’s net income was $1.73 billion compared to $1.53 billion earned in 2006, an increase of 13.5% . Diluted earnings per share for 2007 totaled $3.14, an increase of 11.7% compared to $2.81 earned in 2006. Excluding net after-tax merger-related and restructuring charges or credits and nonrecurring items from 2007 and 2006, operating earnings for 2007 totaled $1.75 billion, an increase of 2.5% compared to operating earnings of $1.71 billion earned in 2006. Diluted operating earnings per share totaled $3.17 in 2007, an increase of 1.0% compared to $3.14 earned in 2006.

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     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 $432 million for the fourth quarter of 2007, a decrease of 6.1% compared to the fourth quarter of 2006. Cash basis operating diluted earnings per share totaled $.78 for the fourth quarter of 2007, a decrease of 7.1% compared to $.84 earned during the same period in 2006. Cash basis operating earnings for the fourth quarter of 2007 produced annualized returns on average tangible assets and average tangible shareholders’ equity of 1.37% and 24.03%, respectively, compared to prior year returns of 1.61% and 26.88%, respectively.

     “Despite a very challenging economic environment and deteriorating credit quality, 2007 operating results represent our 26th consecutive year of record operating earnings,” said Chairman and Chief Executive Officer John A. Allison. “As anticipated, levels of nonperforming assets and credit losses increased during the quarter as a result of the slowing residential real estate market and a weaker overall economy. These credit issues required an increase to the allowance for loan losses, which reduced fourth quarter earnings. While it is difficult to know the full extent of the economic downturn and the resulting impact on BB&T’s credit quality, given our current outlook, we do expect further increases in nonperforming assets and net charge-offs into 2008, but we believe the increases will be manageable.

     “Despite the credit issues, the fourth quarter also reflects a number of positives, including a slightly higher net interest margin compared to the third quarter that is very encouraging, solid production from our lending and deposit gathering efforts, healthy growth in many of our fee income producing businesses, strong capital levels, and a 1.0% reduction in noninterest expenses, excluding purchases, compared to the fourth quarter last year.”

Nonperforming Assets and Credit Losses Increase in Response to Economic Conditions

     BB&T’s nonperforming asset levels and credit losses increased in the fourth quarter. Nonperforming assets, as a percentage of total assets, increased to .52% at Dec. 31, 2007, compared to .42% at Sept. 30, 2007, and .29% at Dec. 31, 2006. Annualized net charge-offs were .48% of average loans and leases for the fourth quarter of 2007, up from .33% in the fourth quarter of 2006. Excluding losses incurred by BB&T’s specialized lending subsidiaries, annualized net charge-offs for the current quarter were .28% of average loans and leases compared to .18% in the same quarter last year. The provision for credit losses totaled $184 million in the fourth quarter of 2007, an increase of 152% compared to the same quarter last year, and exceeded net charge-offs by $73 million in the quarter. The higher provision increased the allowance for loan and lease losses as a percentage of loans to 1.10% at Dec. 31, 2007, compared to 1.04% at Sept. 30, 2007. The increases in net charge-offs, nonperforming assets and the provision for credit losses were largely driven by challenges in residential real estate markets with the largest concentration of credit issues occurring in Atlanta and Florida.

Combined Loan and Deposit Growth Remains Healthy

     Average loans and leases totaled $90.8 billion for the fourth quarter of 2007, reflecting an increase of $8.1 billion, or 9.8%, compared to the fourth quarter of 2006. This increase was composed of growth in average commercial loans and leases, which increased $3.2 billion, or 7.9%; average mortgage loans, which increased $2.2 billion, or 13.7%; average consumer loans, which increased $1.0 billion, or 4.3%; and growth in average loans originated by BB&T’s specialized lending subsidiaries, which increased $1.7 billion, or 48.9%, compared to the fourth quarter last year. For the full year 2007, average loans and leases were $88.0 billion, an increase of 10.9% compared to the same period last year.

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     BB&T’s deposit gathering efforts continued to be successful during the fourth quarter, as average client deposits increased 5.6% compared to the fourth quarter last year. Average total client deposits were $77.0 billion for the fourth quarter of 2007 compared to $72.9 billion for the same period of 2006. Total average deposits for the fourth quarter were $85.3 billion, an increase of 6.7% compared to $79.9 billion for the fourth quarter of 2006. For the full year 2007, average client deposits and average total deposits increased 9.2% and 8.1%, respectively, compared to the full year 2006.

BB&T’s Fee Based Businesses Produce Solid Quarterly Growth Rates

      Noninterest income, excluding securities gains and losses, increased $42 million, or 6.2%, during the fourth quarter of 2007 compared to 2006. These increases include higher revenues from BB&T’s insurance operations, service charges on deposit accounts, and other nondeposit fees and commissions, as well as a solid performance from both BB&T’s investment banking and brokerage operations and mortgage banking operations during the quarter.

     Commissions from BB&T’s insurance operations increased 3.3% to $221 million in the current quarter compared with $214 million earned in the fourth quarter of 2006. This increase was primarily the result of growth from improved sales of insurance products, which were partially offset by more competitive pricing in the property and casualty insurance market.

     Service charges on deposit accounts totaled $165 million for the fourth quarter of 2007, an increase of 17.0% compared to $141 million earned in the same quarter last year. This increase was attributable to growth in revenues from overdraft items.

     Other nondeposit fees and commissions totaled $133 million for the fourth quarter of 2007, an increase of 14.7% compared to the fourth quarter of 2006. This increase was generated primarily by growth in bankcard income and debit and check card related services.

     BB&T’s investment banking and brokerage operations enjoyed a solid quarter as fees increased 13.3% to $85 million compared to $75 million earned in the same quarter last year. This increase was primarily driven by growth in revenues at Scott & Stringfellow.

     Revenues from mortgage banking operations totaled $27 million for the fourth quarter of 2007, an increase of 12.5% compared to the fourth quarter of 2006. This growth was primarily attributable to an increase in commercial mortgage banking revenues, which increased 27.3% to $14 million in the fourth quarter of 2007 compared to $11 million earned during the fourth quarter of 2006, as a result of the acquisition of Collateral Real Estate Capital, LLC.

     Other noninterest income totaled $44 million for the fourth quarter of 2007 compared to $65 million earned in the same quarter last year, a decrease of 32.3%. This decrease primarily resulted from losses on trading, hedging and other market activities.

Capital Levels Remain Very Strong

     BB&T’s tangible and regulatory capital levels exceeded all internal targets and remained very strong at Dec. 31, 2007. BB&T’s tangible capital ratio was 5.6% at Dec. 31, 2007, and the Tier 1 leverage ratio was 7.2% . In addition, BB&T’s Tier 1 risked-based capital and total risked-based capital ratios as of Dec. 31, 2007, were 9.1% and 14.3%, respectively. BB&T’s risked-based capital ratios are significantly higher than its peer group of banks and provide a strong foundation for the future. Given these healthy capital levels and management’s current projections, it is anticipated that BB&T will increase the cash dividend during 2008, which will mark the 37th consecutive year that BB&T has raised the cash dividend to shareholders. BB&T has paid a cash dividend every year since 1903 and has been recognized as a member of both the Mergent Dividend Achievers and Standard and Poors Dividend Aristocrats based on an excellent track record of paying dividends.

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BB&T Exceeds Goals Related to Noninterest Expense

     Noninterest expense, on an operating basis, totaled $925 million for the fourth quarter of 2007, an increase of 1.3% compared to the same period in 2006. BB&T’s goal for 2007 was to limit noninterest expense growth to 4.0%, excluding purchases. In fact, noninterest expense decreased .7% for 2007 compared to the full year 2006, excluding acquisitions, and decreased 1.0% in 2007’s fourth quarter compared to the same period last year.

BB&T Expands Businesses Through High-Quality Acquisitions

     On Nov. 1, 2007, BB&T completed the acquisition of Collateral Real Estate Capital, LLC (“Collateral”), a commercial real estate finance company headquartered in Birmingham, Alabama. BB&T combined the operations of Collateral with its existing commercial mortgage banking subsidiary, Laureate Capital LLC. The combined company was renamed Grandbridge Real Estate Capital LLC and is based in Charlotte, North Carolina. Also, in early January 2008, BB&T Insurance Services continued to expand its metro Atlanta operation with the acquisition of Ott & Company of Alpharetta, Ga. and Ramsay Title Group of Norcross, Ga.

     At Dec. 31, 2007, BB&T had $132.6 billion in assets and operated 1,492 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 Jan. 16 was $28.19 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 fourth quarter 2007 earnings conference call at 11:00 a.m. (EST) 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, Feb. 1.

#

     2006 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)   12/31/07   12/31/06   $      %    
OPERATING EARNINGS STATEMENTS (1)                        
 Interest income - taxable equivalent   $ 2,029 $ 1,888 $ 141     7.5   %
 Interest expense     1,021   910   111     12.2    
     Net interest income - taxable equivalent     1,008   978   30     3.1    
 Less: Taxable equivalent adjustment     17   22   (5 )   (22.7 )  
     Net interest income     991   956   35     3.7    
 Provision for credit losses     184   73   111     152.1    
     Net interest income after provision for credit losses   807   883   (76 )   (8.6 )  
 Noninterest income     718   677   41     6.1    
 Noninterest expense     925   913   12     1.3    
 Operating earnings before income taxes     600   647   (47 )   (7.3 )  
 Provision for income taxes     185   205   (20 )   (9.8 )  
     Operating earnings (1)   $ 415      $ 442      $ (27 )   (6.1 ) %
PER SHARE DATA BASED ON OPERATING EARNINGS (1)                      
 Basic earnings   $ .76      $ .82      $ (.06 )   (7.3 ) %
 Diluted earnings     .75   .81   (.06 )   (7.4 )  
 Weighted average shares (in thousands) - Basic 547,795   540,807              
  Diluted 551,078   546,618              
 Dividends paid per share   $ .46      $ .42      $ .04     9.5   %
PERFORMANCE RATIOS BASED ON OPERATING EARNINGS (1)                      
 Return on average assets     1.26  % 1.48  %            
 Return on average equity     13.00   14.70              
 Net yield on earning assets (taxable equivalent)     3.46   3.70              
 Efficiency ratio (taxable equivalent) (2)     52.8   54.8              
CASH BASIS PERFORMANCE                        
 BASED ON OPERATING EARNINGS (1)(3)                        
 Cash basis operating earnings   $ 432      $ 460      $ (28 )   (6.1 ) %
 Diluted earnings per share     .78   .84   (.06 )   (7.1 )  
 Return on average tangible assets     1.37  % 1.61  %            
 Return on average tangible equity     24.03   26.88              
 Efficiency ratio (taxable equivalent) (2)     51.3   53.1              
 
 
    For the Three Months Ended Increase (Decrease)
(Dollars in millions, except per share data)   12/31/07   12/31/06 $ %
INCOME STATEMENTS                        
 Interest income   $ 2,012      $ 1,866      $ 146     7.8   %
 Interest expense     1,021   910   111     12.2    
     Net interest income     991   956   35     3.7    
 Provision for credit losses     184   73   111     152.1    
     Net interest income after provision for credit losses   807   883   (76 )   (8.6 )  
 Noninterest income     718   602   116     19.3    
 Noninterest expense     942   922   20     2.2    
 Income before income taxes     583   563   20     3.6    
 Provision for income taxes     172   312   (140 )   (44.9 )  
         Net income   $ 411      $ 251      $ 160     63.7   %
PER SHARE DATA                        
 Basic earnings   $ .75      $ .46      $ .29     63.0   %
 Diluted earnings     .75   .46   .29     63.0    
 Weighted average shares (in thousands) - Basic 547,795   540,807              
  Diluted 551,078   546,618              
PERFORMANCE RATIOS BASED ON NET INCOME                        
 Return on average assets     1.24  % .84  %            
 Return on average equity     12.89   8.33              
 Efficiency ratio (taxable equivalent) (2)     53.8   55.3              
 
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 and restructuring charges or credits and nonrecurring items. These amounts totaled $4 million
       and $191 million, net of tax, in the fourth 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 and restructuring 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  


               For the Twelve Months Ended   Increase (Decrease)
(Dollars in millions, except per share data)            12/31/07   12/31/06 $ %
OPERATING EARNINGS STATEMENTS (1)                        
 Interest income - taxable equivalent   $ 7,962 $ 6,981 $ 981     14.1   %
 Interest expense     4,014   3,185   829     26.0    
     Net interest income - taxable equivalent     3,948   3,796   152     4.0    
 Less: Taxable equivalent adjustment     68   88   (20 )   (22.7 )  
     Net interest income     3,880   3,708   172     4.6    
 Provision for credit losses     448   240   208     86.7    
     Net interest income after provision for credit losses   3,432   3,468   (36 )   (1.0 )  
 Noninterest income     2,774   2,596   178     6.9    
 Noninterest expense     3,601   3,526   75     2.1    
 Operating earnings before income taxes     2,605   2,538   67     2.6    
 Provision for income taxes     856   831   25     3.0    
     Operating earnings (1)   $ 1,749      $ 1,707      $ 42     2.5   %
PER SHARE DATA BASED ON OPERATING EARNINGS (1)                      
 Basic earnings   $ 3.20      $ 3.17      $ .03     .9   %
 Diluted earnings     3.17   3.14   .03     1.0    
 Weighted average shares (in thousands) - Basic 547,184   539,140              
  Diluted 551,755   543,891              
 Dividends paid per share   $ 1.76      $ 1.60      $ .16     10.0   %
PERFORMANCE RATIOS BASED ON OPERATING EARNINGS (1)                      
 Return on average assets     1.38  % 1.49  %            
 Return on average equity     14.37   14.91              
 Net yield on earning assets (taxable equivalent)     3.52   3.74              
 Noninterest income as a percentage of                        
     total income (taxable equivalent) (2)     41.3   40.6              
 Efficiency ratio (taxable equivalent) (2)     53.1   54.9              
CASH BASIS PERFORMANCE                        
 BASED ON OPERATING EARNINGS (1)(3)                        
 Cash basis operating earnings   $ 1,816      $ 1,780      $ 36     2.0   %
 Diluted earnings per share     3.29   3.27   .02     .6    
 Return on average tangible assets     1.50  % 1.63  %            
 Return on average tangible equity     26.82   27.23              
 Efficiency ratio (taxable equivalent) (2)     51.6   53.2              
 
 
 
    For the Twelve Months Ended   Increase (Decrease)
(Dollars in millions, except per share data)            12/31/07   12/31/06   $ %
INCOME STATEMENTS                        
 Interest income   $ 7,894      $ 6,893      $ 1,001     14.5   %
 Interest expense     4,014   3,185   829     26.0    
     Net interest income     3,880   3,708   172     4.6    
 Provision for credit losses     448   240   208     86.7    
     Net interest income after provision for credit losses   3,432   3,468   (36 )   (1.0 )  
 Noninterest income     2,774   2,521   253     10.0    
 Noninterest expense     3,636   3,516   120     3.4    
 Income before income taxes     2,570   2,473   97     3.9    
 Provision for income taxes     836   945   (109 )   (11.5 )  
           Net income   $ 1,734      $ 1,528      $ 206     13.5   %
PER SHARE DATA                        
 Basic earnings   $ 3.17      $ 2.84      $ .33     11.6   %
 Diluted earnings     3.14   2.81   .33     11.7    
 Weighted average shares (in thousands) - Basic 547,184   539,140              
  Diluted 551,755   543,891              
PERFORMANCE RATIOS BASED ON NET INCOME                        
 Return on average assets     1.37  % 1.34  %            
 Return on average equity     14.25   13.35              
 Efficiency ratio (taxable equivalent) (2)     53.7   54.8              
 
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 and restructuring charges or credits and nonrecurring items. These amounts totaled $15 million
       and $179 million, net of tax, in 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 and restructuring 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 7   Investor Relations   FAX (336) 733-3132  


         
          As of / For the Twelve Months Ended   Increase (Decrease)  
(Dollars in millions)          12/31/07 12/31/06 $ %
CONSOLIDATED BALANCE SHEETS                                
 End of period balances                                
 Cash and due from banks         $ 2,054   $ 2,068   $ (14 )   (0.7 ) %
 Interest-bearing deposits with banks           592     544     48     8.8  
 Federal funds sold and other earning assets           715     283     432     152.7  
 Securities available for sale           22,419     20,721     1,698     8.2  
 Trading securities           1,009     2,147     (1,138 )   (53.0 )
     Total securities           23,428     22,868     560     2.4  
 Commercial loans and leases           44,870     41,300     3,570     8.6  
 Direct retail loans           15,691     15,312     379     2.5  
 Sales finance loans           6,021     5,683     338     5.9  
 Revolving credit loans           1,618     1,414     204     14.4  
 Mortgage loans           17,467     15,596     1,871     12.0  
 Specialized lending           5,240     3,606     1,634     45.3  
     Total loans and leases held for investment           90,907     82,911     7,996     9.6  
 Loans held for sale           779     680     99     14.6  
     Total loans and leases           91,686     83,591     8,095     9.7  
 Allowance for loan and lease losses           1,004     888     116     13.1  
     Total earning assets           116,466     107,676     8,790     8.2  
 Premises and equipment, net           1,529     1,410     119     8.4  
 Goodwill           5,194     4,827     367     7.6  
 Core deposit and other intangibles           489     454     35     7.7  
 Other assets           7,935     6,194     1,741     28.1  
     Total assets           132,618     121,351     11,267     9.3  
 Noninterest-bearing deposits           13,059     13,393     (334 )   (2.5 )
 Interest checking           1,201     1,333     (132 )   (9.9 )
 Other client deposits           35,504     34,062     1,442     4.2  
 Client certificates of deposit           26,972     24,987     1,985     7.9  
     Total client deposits           76,736     73,775     2,961     4.0  
 Other interest-bearing deposits           10,030     7,196     2,834     39.4  
     Total deposits           86,766     80,971     5,795     7.2  
 Fed funds purchased, repos and other borrowings           10,634     8,087     2,547     31.5  
 Long-term debt           18,693     15,904     2,789     17.5  
     Total interest-bearing liabilities           103,034     91,569     11,465     12.5  
 Other liabilities           3,893     4,644     (751 )   (16.2 )
     Total liabilities           119,986     109,606     10,380     9.5  
     Total shareholders' equity          $ 12,632   $ 11,745   $ 887     7.6  %
 Average balances                                
 Securities, at amortized cost         $ 23,311   $ 21,348   $ 1,963     9.2  %
 Commercial loans and leases           42,475     38,966     3,509     9.0  
 Direct retail loans           15,471     14,904     567     3.8  
 Sales finance loans           5,903     5,385     518     9.6  
 Revolving credit loans           1,460     1,331     129     9.7  
 Mortgage loans           17,489     15,482     2,007     13.0  
 Specialized lending           5,154     3,245     1,909     58.8  
     Total loans and leases           87,952     79,313     8,639     10.9  
 Allowance for loan and lease losses           922     863     59     6.8  
 Other earning assets           1,042     911     131     14.4  
     Total earning assets           112,305     101,572     10,733     10.6  
     Total assets           126,420     114,328     12,092     10.6  
 Noninterest-bearing deposits           13,151     13,218     (67 )   (.5 )
 Interest checking           2,297     2,164     133     6.1  
 Other client deposits           34,273     31,462     2,811     8.9  
 Client certificates of deposit           26,039     22,564     3,475     15.4  
     Total client deposits           75,760     69,408     6,352     9.2  
 Other interest-bearing deposits           7,741     7,822     (81 )   (1.0 )
     Total deposits           83,501     77,230     6,271     8.1  
 Fed funds purchased, repos and other borrowings           9,325     7,006     2,319     33.1  
 Long-term debt           18,045     14,628     3,417     23.4  
     Total interest-bearing liabilities           97,720     85,646     12,074     14.1  
     Total shareholders' equity          $ 12,166   $ 11,452   $ 714     6.2

 %

 
             As of / For the Quarter Ended              
(Dollars in millions, except per share data)      12/31/07     9/30/07     6/30/07     3/31/07     12/31/06  
MISCELLANEOUS INFORMATION                                
 
 Unrealized depreciation on                                
     securities available for sale, net of tax   $ (29 ) $ (150 ) $ (339 ) $ (178 ) $ (249 )
 Derivatives (notional value)     47,197     43,051     36,108     40,159     23,097  
 Fair value of derivatives portfolio     181     34     (175 )   (40 )   (45 )
 Common stock prices: High   42.61     43.00     43.02     44.30     44.74  
  Low   30.36     36.95     39.13     39.54     42.48  
  End of period   30.67     40.39     40.68     41.02     43.93  
 Weighted average shares (in thousands) - Basic   547,795     550,603     548,385     541,851     540,807  
  Diluted   551,078     555,336     553,935     547,230     546,618  
 End of period shares outstanding (in thousands)     545,955     549,337     551,948     542,416     541,475  
 End of period banking offices     1,492     1,501     1,507     1,472     1,459  
 ATMs     2,158     2,166     2,170     2,121     2,125  
 FTEs      29,394     28,886     28,961     28,876     29,344  
 
NOTES: All items referring to average loans and leases include loans held for sale.                              


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)   12/31/07   9/30/07   6/30/07   3/31/07     12/31/06  
OPERATING EARNINGS STATEMENTS (1)                        
 Interest income - taxable equivalent                        
 Interest and fees on loans and leases $ 1,711 $ 1,725      $ 1,682 $ 1,622   $ 1,609  
 Interest and dividends on securities   304   305   285   277     255  
 Interest on short-term investments   14   14   13   10     24  
     Total interest income - taxable equivalent   2,029   2,044   1,980   1,909     1,888  
 Interest expense                        
 Interest on deposits   655   679   639   647     616  
 Interest on fed funds purchased, repos and other borrowings   110   110   102   87     80  
 Interest on long-term debt   256   263   254   212     214  
     Total interest expense   1,021   1,052   995   946     910  
 Net interest income - taxable equivalent   1,008   992   985   963     978  
 Less: Taxable equivalent adjustment   17   14   19   18     22  
     Net interest income   991   978   966   945     956  
 Provision for credit losses   184   105   88   71     73  
     Net interest income after provision for                        
      credit losses   807   873   878   874     883  
 Noninterest income                        
 Insurance commissions   221   206   229   197     214  
 Service charges on deposits   165   157   151   138     141  
 Other nondeposit fees and commissions   133   129   127   114     116  
 Investment banking and brokerage fees and commissions   85   87   89   82     75  
 Trust revenue   42   40   40   40     40  
 Mortgage banking income   27   27   31   30     24  
 Securities gains (losses), net   1   6   1   (11 )   2  
 Other noninterest income   44   23   61   62     65  
     Total noninterest income   718   675   729   652     677  
 Noninterest expense                        
 Personnel expense   516   514   540   524     533  
 Occupancy and equipment expense   126   118   117   116     118  
 Foreclosed property expense   13   5   6   7     6  
 Amortization of intangibles   27   26   26   25     27  
 Other noninterest expense   243   218   229   205     229  
     Total noninterest expense   925   881   918   877     913  
 Operating earnings before income taxes   600   667   689   649     647  
 Provision for income taxes   185   219   228   224     205  
     Operating earnings (1) $ 415 $ 448      $ 461 $ 425   $ 442  
PER SHARE DATA BASED ON                        
 OPERATING EARNINGS (1)                        
 Basic earnings $ .76 $ .81      $ .84 $ .78   $ .82  
 Diluted earnings   .75   .81   .83   .78     .81  
 Dividends paid per share   .46   .46   .42   .42     .42  
PERFORMANCE RATIOS BASED ON                        
 OPERATING EARNINGS (1)                        
 Return on average assets   1.26  % 1.38  % 1.48  % 1.42  %   1.48  %
 Return on average equity   13.00   14.38   15.28   14.94     14.70  
 Net yield on earning assets (taxable equivalent)   3.46   3.45   3.55   3.61     3.70  
 Efficiency ratio (taxable equivalent) (2)   52.8   52.9   53.2   53.7     54.8  
 Noninterest income as a percentage of                        
     total income (taxable equivalent) (2)   41.7   40.1   42.6   40.6     40.9  
 Average earning assets as a percentage of                        
     average total assets   88.6   89.0   88.9   88.9     88.6  
 Average loans and leases as a percentage of                        
     average deposits   106.5   105.8   106.1   102.9     103.5  
CASH BASIS PERFORMANCE BASED ON                        
 OPERATING EARNINGS (1) (3)                        
 Cash basis operating earnings $ 432 $ 466      $ 477 $ 441   $ 460  
 Diluted earnings per share   .78   .84   .86   .81     .84  
 Return on average tangible assets   1.37  % 1.50  % 1.61  % 1.54  % 1.61  %
 Return on average tangible equity   24.03   26.86   28.48   28.20     26.88  
 Efficiency ratio (taxable equivalent) (2)   51.3   51.3   51.7   52.1     53.1  
 
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 and restructuring charges or credits and nonrecurring items. These amounts totaled $4 million,
       $4 million, $3 million, $4 million and $191 million, net of tax, for the quarters ended December 31, 2007, September 30, 2007, June 30, 2007, March 31, 2007,
       and December 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 and restructuring 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 9   Investor Relations   FAX (336) 733-3132  


    As of / For the Quarter Ended
(Dollars in millions, except per share data)   12/31/07   9/30/07   6/30/07   3/31/07     12/31/06  
 
INCOME STATEMENTS                        
 Interest income                        
 Interest and fees on loans and leases $ 1,706 $ 1,719 $ 1,675 $ 1,613   $ 1,601  
 Interest and dividends on securities   292   297   273   268     241  
 Interest on short-term investments   14   14   13   10     24  
     Total interest income   2,012   2,030   1,961   1,891     1,866  
 Interest expense                        
 Interest on deposits   655   679   639   647     616  
 Interest on fed funds purchased, repos and other borrowings   110   110   102   87     80  
 Interest on long-term debt   256   263   254   212     214  
     Total interest expense   1,021   1,052   995   946     910  
 Net interest income   991   978   966   945     956  
 Provision for credit losses   184   105   88   71     73  
     Net interest income after provision for                        
         credit losses   807   873   878   874     883  
 Noninterest income                        
 Insurance commissions   221   206   229   197     214  
 Service charges on deposits   165   157   151   138     141  
 Other nondeposit fees and commissions   133   129   127   114     116  
 Investment banking and brokerage fees and commissions   85   87   89   82     75  
 Trust revenue   42   40   40   40     40  
 Mortgage banking income   27   27   31   30     24  
 Securities gains (losses), net   1   6   1   (11 )   (73 )
 Other noninterest income   44   23   61   62     65  
     Total noninterest income   718   675   729   652     602  
 Noninterest expense                        
 Personnel expense   516   514   540   524     533  
 Occupancy and equipment expense   126   118   117   116     118  
 Foreclosed property expense   13   5   6   7     6  
 Amortization of intangibles   27   26   26   25     27  
 Merger-related and restructuring charges (credits), net   3   7   5   6     9  
 Other noninterest expense   257   218   229   205     229  
     Total noninterest expense   942   888   923   883     922  
 Income before income taxes   583   660   684   643     563  
 Provision for income taxes   172   216   226   222     312  
     Net income $ 411 $ 444      $ 458 $ 421        $ 251  
PER SHARE DATA                        
 Basic earnings $ .75 $ .81      $ .84 $ .78        $ .46  
 Diluted earnings   .75   .80   .83   .77     .46  
 
    For the Quarter Ended
    12/31/07   9/30/07   6/30/07   3/31/07     12/31/06  
ANNUALIZED INTEREST YIELDS / RATES (1)                        
Interest income:                        
 Securities:                        
     U.S. Treasury securities   4.59  % 4.48  % 4.53  % 4.47  % 4.48  %
     U.S. government-sponsored entity securities   4.67   4.67   4.60   4.39     4.17  
     Mortgage-backed securities   5.27   5.21   5.02   5.09     5.10  
     States and political subdivisions   5.54   5.48   6.87   6.85     7.00  
     Other securities   6.43   6.01   5.94   7.03     6.45  
     Trading securities   4.06   4.54   4.36   5.89     3.45  
         Total securities   5.08   5.02   4.94   5.06     4.72  
 Loans:                        
     Commercial loans and leases   7.37   7.80   7.92   7.89     7.97  
     Consumer loans   7.53   7.58   7.53   7.51     7.44  
     Mortgage loans   6.07   6.05   5.96   5.90     5.85  
     Specialized lending   13.10   13.02   13.37   13.62     15.29  
         Total loans   7.48   7.70   7.75   7.73     7.73  
 Other earning assets (2)   4.48   4.96   5.26   4.96     10.44  
              Total earning assets   6.95   7.11   7.14   7.17     7.14  
Interest expense:                        
 Interest-bearing deposits:                        
     Interest checking   2.22   2.33   2.30   2.38     2.29  
     Other client deposits   2.69   2.94   2.85   2.82     2.76  
     Client certificates of deposit   4.58   4.64   4.63   4.60     4.53  
     Other interest-bearing deposits   4.72   5.22   5.34   5.35     5.35  
         Total interest-bearing deposits   3.60   3.80   3.73   3.77     3.67  
         Fed funds purchased, repos and other borrowings (2)   4.06   4.43   4.55   4.61     4.51  
         Long-term debt   5.39   5.59   5.51   5.32     5.27  
              Total interest-bearing liabilities   3.98   4.20   4.15   4.11     4.02  
 Net yield on earning assets   3.46  % 3.45  % 3.55  % 3.61  %   3.70  %
 
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 10   Investor Relations   FAX (336) 733-3132  


  As of / For the Quarter Ended
(Dollars in millions, except per share data)   12/31/07     9/30/07     6/30/07     3/31/07     12/31/06  
SELECTED BALANCE SHEET DATA                              
 End of period balances                              
 Securities available for sale $ 22,419   $ 23,061  $ 22,254   $ 20,898   $ 20,721  
 Trading securities   1,009     1,587     1,067     906     2,147  
     Total securities   23,428     24,648     23,321     21,804     22,868  
 Commercial loans and leases   44,870     43,365     42,632     41,238     41,300  
 Direct retail loans   15,691     15,586     15,520     15,283     15,312  
 Sales finance loans   6,021     6,056     5,889     5,774     5,683  
 Revolving credit loans   1,618     1,535     1,461     1,386     1,414  
 Mortgage loans   17,467     17,051     16,640     16,011     15,596  
 Specialized lending   5,240     5,288     5,248     4,956     3,606  
     Total loans and leases held for investment   90,907     88,881     87,390     84,648     82,911  
 Loans held for sale   779     1,178     1,152     672     680  
     Total loans and leases   91,686     90,059     88,542     85,320     83,591  
 Allowance for loan and lease losses   1,004     934     920     896     888  
 Other earning assets   1,307     1,111     1,188     782     826  
     Total earning assets   116,466     116,057     113,599     108,193     107,676  
     Total assets   132,618     130,781     127,577     121,694     121,351  
 Noninterest-bearing deposits   13,059     13,197     13,641     13,533     13,393  
 Interest checking   1,201     1,128     1,384     1,288     1,333  
 Other client deposits   35,504     35,391     35,741     34,657     34,062  
 Client certificates of deposit   26,972     26,315     27,445     25,322     24,987  
     Total client deposits   76,736     76,031     78,211     74,800     73,775  
 Other interest-bearing deposits   10,030     9,154     5,868     5,039     7,196  
     Total deposits   86,766     85,185     84,079     79,839     80,971
 Fed funds purchased, repos and other borrowings   10,634     10,618     9,410     6,770     8,087  
 Long-term debt   18,693     19,059     18,313     19,936     15,904  
     Total interest-bearing liabilities   103,034     101,665     98,161     93,012     91,569  
     Total shareholders' equity   12,632     12,402     12,125     11,650     11,745  
 Goodwill   5,194     5,132     5,114     4,860     4,827  
 Core deposit and other intangibles   489     491     504     479     454  
     Total intangibles   5,683     5,623     5,618     5,339     5,281  
     Mortgage servicing rights $ 560   $ 567    $ 609   $ 525   $ 512  
 Average balances                              
 Securities, at amortized cost $ 23,967   $ 24,246  $ 23,124   $ 21,872   $ 21,609  
 Commercial loans and leases   43,969     42,838     41,935     41,122     40,758  
 Direct retail loans   15,640     15,534     15,438     15,272     15,291  
 Sales finance loans   6,042     6,006     5,823     5,734     5,623  
 Revolving credit loans   1,548     1,485     1,417     1,387     1,362  
 Mortgage loans   18,297     17,922     17,231     16,481     16,091  
 Specialized lending   5,309     5,305     5,095     4,898     3,565  
     Total loans and leases   90,805     89,090     86,939     84,894     82,690  
 Allowance for loan and lease losses   945     931     916     894     891  
 Other earning assets   1,257     1,105     967     840     917  
     Total earning assets   116,029     114,441     111,030     107,606     105,216  
     Total assets   131,009     128,633     124,848     121,054     118,777  
 Noninterest-bearing deposits   13,040     13,248     13,367     12,946     13,289  
 Interest checking   2,293     2,202     2,487     2,206     2,284  
 Other client deposits   34,981     34,836     33,860     33,393     32,616  
 Client certificates of deposit   26,682     26,456     25,919     25,076     24,712  
     Total client deposits   76,996     76,742     75,633     73,621     72,901  
 Other interest-bearing deposits   8,264     7,481     6,326     8,902     6,988  
     Total deposits   85,260     84,223     81,959     82,523     79,889  
 Fed funds purchased, repos and other borrowings   10,739     9,892     9,000     7,627     7,109  
 Long-term debt   18,864     18,721     18,471     16,086     16,101  
     Total interest-bearing liabilities   101,823     99,588     96,063     93,290     89,810  
     Total shareholders' equity $ 12,655   $ 12,359    $ 12,113   $ 11,522   $ 11,941  
SELECTED CAPITAL INFORMATION (1)                              
 Risk-based capital:                              
     Tier 1 $ 9,085   $ 9,048  $ 8,936   $ 7,987   $ 8,226  
     Total   14,226     14,081     13,968     12,791     13,016  
 Risk-weighted assets   99,659     96,926     94,732     92,192     90,982  
 Average quarterly tangible assets   125,515     123,480     119,636     116,161     114,007  
 Risk-based capital ratios:                              
     Tier 1   9.1  %   9.3 % 9.4 %   8.7 %   9.0  %
     Total   14.3     14.5     14.7     13.9     14.3  
 Leverage capital ratio   7.2     7.3     7.5     6.9     7.2  
 Equity as a percentage of total assets   9.5     9.5     9.5     9.6     9.7  
 Tangible equity as a percentage of tangible assets (2)   5.6     5.5     5.5     5.5     5.7  
 Book value per share $ 23.14   $ 22.58  $ 21.97   $ 21.48   $ 21.69  
 Tangible book value per share (2)   12.98     12.60     12.05     11.89     12.20  
 
NOTES: All items referring to average loans and leases include loans held for sale.                            

(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 11   Investor Relations   FAX (336) 733-3132  


   As of / For the Quarter Ended
(Dollars in millions)   12/31/07     9/30/07     6/30/07     3/31/07     12/31/06  
ASSET QUALITY ANALYSIS                              
 Allowance For Credit Losses                              
     Beginning balance $ 941   $ 926   $ 901   $ 888   $ 884  
     Allowance for acquired (sold) loans, net   1     -     13     3     (1 )
     Provision for credit losses   184     105     88     71     73  
         Charge-offs                              
               Commercial loans and leases   (26 )   (18 )   (11 )   (10 )   (15 )
               Direct retail loans   (18 )   (20 )   (22 )   (12 )   (13 )
               Sales finance loans   (10 )   (9 )   (6 )   (6 )   (5 )
               Revolving credit loans   (11 )   (12 )   (12 )   (12 )   (12 )
               Mortgage loans   (6 )   (1 )   (2 )   (1 )   (2 )
               Specialized lending   (54 )   (45 )   (40 )   (41 )   (36 )
         Total charge-offs   (125 )   (105 )   (93 )   (82 )   (83 )
         Recoveries                              
               Commercial loans and leases   2     3     4     8     3  
               Direct retail loans   3     3     3     4     3  
               Sales finance loans   2     2     2     2     2  
               Revolving credit loans   3     3     3     3     3  
               Specialized lending   4     4     5     4     4  
         Total recoveries   14     15     17     21     15  
     Net charge-offs   (111 )   (90 )   (76 )   (61 )   (68 )
     Ending balance $ 1,015   $ 941   $ 926   $ 901   $ 888  
 
 Allowance For Credit Losses                              
     Allowance for loan and lease losses $ 1,004   $ 934   $ 920   $ 896   $ 888  
     Reserve for unfunded lending commitments   11     7     6     5                -  
         Total $ 1,015   $ 941   $ 926   $ 901   $ 888  
 Nonperforming Assets                              
     Nonaccrual loans and leases:                              
               Commercial loans and leases $ 273   $ 237   $ 178   $ 148   $ 129  
               Direct retail loans   43     56     43     43     39  
               Sales finance loans   5     4     4     1     2  
               Mortgage loans   119     74     63     51     53  
               Specialized lending   62     48     36     33     37  
     Total nonaccrual loans and leases   502     419     324     276     260  
     Foreclosed real estate   143     82     61     56     54  
     Other foreclosed property   51     46     38     35     35  
         Nonperforming assets $ 696   $ 547   $ 423   $ 367   $ 349  
 Loans 90 days or more past due                              
     and still accruing:                              
               Commercial loans and leases $ 40   $ 21   $ 18   $ 18   $ 14  
               Direct retail loans   58     18     17     13     20  
               Sales finance loans   17     14     12     16     17  
               Revolving credit loans   15     7     6     7     6  
               Mortgage loans   85     76     48     39     37  
               Specialized lending   8     13     7     10     8  
     Total loans 90 days or more past due                              
         and still accruing   223     149     108     103     102  
     Loans 90 days or more past due and still accruing                              
         as a percentage of total loans and leases   .24  %   .17  %   .12  %   .12  %    .12  %
 
 Asset Quality Ratios                              
     Nonaccrual and restructured loans and leases                              
         as a percentage of total loans and leases   .55  % .47  % .37  % .32  % .31  %
     Nonperforming assets as a percentage of:                              
         Total assets   .52     .42     .33     .30     .29  
         Loans and leases plus                              
          foreclosed property   .76     .61     .48     .43     .42  
     Net charge-offs as a percentage of                              
         average loans and leases   .48     .40     .35     .29     .33  
     Net charge-offs excluding specialized                              
         lending as a percentage of average                              
         loans and leases (1)   .28     .23     .20     .13     .18  
     Allowance for loan and lease losses as                              
         a percentage of loans and leases   1.10     1.04     1.04     1.05     1.06  
     Allowance for loan and lease losses as                              
         a percentage of loans and leases                              
         held for investment   1.10     1.05     1.05     1.06     1.07  
     Ratio of allowance for loan and lease losses to:                              
         Net charge-offs   2.29  x   2.61  x 3.04  x 3.58  x 3.29  x
         Nonaccrual and restructured loans and leases   2.00     2.23     2.83     3.24     3.41  
 
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 12   Investor Relations   FAX (336) 733-3132  


  As of / For the Twelve Months Ended   Increase (Decrease)
(Dollars in millions)   12/31/07     12/31/06       $     %  
 Allowance For Credit Losses                          
     Beginning balance $ 888   $ 830   $   58     7.0 %
     Allowance for acquired (sold) loans, net   17     34       (17 )   NM  
     Provision for credit losses   448     240       208     86.7  
         Charge-offs                          
           Commercial loans and leases   (65 )   (37 )     (28 )   75.7  
           Direct retail loans   (72 )   (48 )     (24 )   50.0  
           Sales finance loans   (31 )   (21 )     (10 )   47.6  
           Revolving credit loans   (47 )   (45 )     (2 )   4.4  
           Mortgage loans   (10 )   (6 )     (4 )   66.7  
           Specialized lending   (180 )   (120 )     (60 )   50.0  
         Total charge-offs   (405 )   (277 )     (128 )   46.2  
         Recoveries                          
           Commercial loans and leases   17     15       2     13.3  
           Direct retail loans   13     12       1     8.3  
           Sales finance loans   8     8                      -     -  
           Revolving credit loans   12     11       1     9.1  
           Mortgage loans                -     1       (1 )   (100.0 )
           Specialized lending   17     14       3     21.4  
         Total recoveries   67     61       6     9.8  
     Net charge-offs   (338 )   (216 )     (122 )   56.5  
     Ending balance $ 1,015   $ 888   $   127     14.3  %
Allowance For Credit Losses
     Allowance for loan and lease losses $ 1,004   $ 888   $   116     13.1  %
     Reserve for unfunded lending commitments   11     -       11     NM  
     Total $ 1,015   $ 888   $   127     14.3  %
 Asset Quality Ratios                          
     Net charge-offs as a percentage of                          
         average loans and leases   .38  % .27  %            
     Net charge-offs excluding specialized                          
         lending as a percentage of average                          
         loans and leases (1)   .21     .14                
     Ratio of allowance for loan and lease losses to                          
         net charge-offs   2.97  x    4.12  x               
 
 
        Percentage Increase (Decrease)
               QTD   Annualized Link QTD   YTD  
        4Q07 vs. 4Q06 4Q07 vs. 3Q07 2007 vs. 2006
PERCENTAGE CHANGES IN SELECTED BALANCES ADJUSTED FOR                          
 PURCHASE ACQUISITIONS (2)                          
 Average Balances                          
 Commercial loans and leases (3)         7.6  %   10.9  %   6.7  %
 Direct retail loans         1.7       2.7     2.7  
 Sales finance loans         7.5       2.4     9.6  
 Revolving credit loans         13.6       16.8     9.5  
 Mortgage loans (4)         11.3       8.3     11.3  
 Specialized lending (5)         7.0       (3.0 )   11.7  
     Total loans and leases (3) (4) (5)         7.3       7.6     7.4  
 
 Noninterest-bearing deposits         (3.2 )     (6.2 )   (2.7 )
 Interest checking         (4.5 )     16.4     (2.1 )
 Other client deposits         6.2       1.7     7.1  
 Client certificates of deposit         6.1       3.4     12.0  
     Total client deposits         4.1       1.3     6.5  
 Other interest-bearing deposits         18.3       41.5     (2.1 )
     Total deposits         5.3  %      4.9  %   5.7  %
 
 
PERCENTAGE CHANGES IN SELECTED INCOME STATEMENT ITEMS                          
 BASED ON OPERATING EARNINGS ADJUSTED FOR PURCHASE ACQUISITIONS (2)                          
 Net interest income - taxable equivalent (3)         (1.3 )     6.1     (1.1 )
 Noninterest income                          
     Insurance commissions         2.7       24.1     4.8  
     Service charges on deposits         16.1       22.7     9.2  
     Other nondeposit fees and commissions         13.8       9.2     12.0  
     Investment banking and brokerage fees and commissions         10.5       (18.0 )   7.5  
     Trust revenue         7.7       19.8     5.2  
     Mortgage banking income (6)         -       62.0     3.2  
     Securities gains (losses), net         NM       NM     NM  
     Other income         (34.3 )     NM     (13.1 )
 Total noninterest income (6)         4.6       24.7     5.8  
 Noninterest expense                          
     Personnel expense         (4.9 )     (3.0 )   (1.3 )
     Occupancy and equipment expense         5.8       26.7     3.4  
     Other noninterest expense         4.0       51.5     (1.4 )
 Total noninterest expense         (1.0 ) %      16.3  %   (0.7 ) %
 
NOTES: All items referring to loans and leases include loans held for sale and are net of unearned income. Applicable ratios are annualized.                      

(1) 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 2007 and 2006.
(3) Adjusted for leveraged leases due to the adoption of FSP FAS 13-2 and the sale of a leveraged lease investment in the fourth quarter of 2007.
(4) Adjusted for the average impact of $51 million in mortgage loans securitized in the fourth quarter of 2006.
(5) Loans from specialized lending, excluding AFCO/CAFO from both 2006 and 2007, grew 14.2% and 20.7%, respectively, comparing the fourth quarter 2007 to
     the fourth quarter of 2006 and the YTD 2007 to the YTD 2006. In addition, total loans grew 7.6% and 7.7%, respectively, for the fourth quarter of 2007 compared
     to the fourth quarter of 2006 and the YTD 2007 to the YTD 2006.
(6) 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 13   Investor Relations   FAX (336) 733-3132  


         
   As of / For the Quarter Ended
(Dollars in millions) 12/31/07 9/30/07 6/30/07 3/31/07 12/31/06
SELECTED MORTGAGE BANKING INFORMATION                              
     Residential Mortgage Servicing Rights (1) $ 472   $ 533   $ 577   $ 494   $ 484  
 
     Income Statement Impact of Mortgage Servicing                              
     Rights Valuation:                              
         MSRs fair value (decrease) increase $ (85 ) $ (54 ) $ 72   $ 7   $ -  
         MSRs derivative hedge gains (losses)   80     60     (73 )   (3 )   (3 )
           Net $ (5 ) $ 6   $ (1 ) $ 4   $ (3 )
 
     Residential Mortgage Loan Originations $ 3,240   $ 3,225   $ 3,014   $ 2,461   $ 2,463  
 
     Residential Mortgage Servicing Portfolio:                              
           Loans serviced for others $ 32,762   $ 31,081   $ 30,077   $ 29,420   $ 28,979  
           Bank owned loans serviced   18,191     18,059     17,611     16,571     16,257  
             Total servicing portfolio   50,953     49,140     47,688     45,991     45,236  
           Weighted Average Coupon Rate   6.01  %   5.98  %   5.95  %   5.93  %   5.92  %
           Weighted Average Servicing Fee   .363     .359     .357     .356     .353  
 
    For the Quarter Ended
(Dollars in millions, except per share data) 12/31/07 9/30/07 6/30/07 3/31/07 12/31/06
RECONCILIATION TABLE                              
     Net income $ 411   $ 444   $ 458   $ 421   $ 251  
         Merger-related and restructuring items, net of tax   2     4     3     4     5  
         Other, net of tax (4)   2     -     -     -     186  
     Operating earnings   415     448     461     425     442  
         Amortization of intangibles, net of tax   16     17     16     16     17  
         Amortization of mark-to-market adjustments, net of tax   1     1     -     -     1  
     Cash basis operating earnings   432     466     477     441     460  
     Return on average assets   1.24  %   1.37  %   1.47  %   1.41  %   .84  %
         Effect of merger-related and restructuring items, net of tax   .01     .01     .01     .01     .02  
         Effect of other, net of tax (4)   .01     -     -     -     .62  
     Operating return on average assets   1.26     1.38     1.48     1.42     1.48  
         Effect of amortization of intangibles, net of tax (2)   .11     .12     .13     .12     .13  
         Effect of amortization of mark-to-market adjustments,                              
           net of tax   -     -     -     -     -  
     Cash basis operating return on average                              
         tangible assets   1.37     1.50     1.61     1.54     1.61  
     Return on average equity   12.89  %   14.24  %   15.18  %   14.81  %   8.33  %
         Effect of merger-related and restructuring items, net of tax   .05     .14     .10     .13     .19  
         Effect of other, net of tax (4)   .06     -     -     -     6.18  
     Operating return on average equity   13.00     14.38     15.28     14.94     14.70  
         Effect of amortization of intangibles, net of tax (2)   10.99     12.43     13.20     13.26     12.12  
         Effect of amortization of mark-to-market adjustments,                              
           net of tax   .04     .05     -     -     .06  
     Cash basis operating return on average                              
         tangible equity   24.03     26.86     28.48     28.20     26.88  
     Efficiency ratio (taxable equivalent) (3)   53.8  %   53.3  %   53.5  %   54.1  %   55.3  %
         Effect of merger-related and restructuring items   (.2 )   (.4 )   (.3 )   (.4 )   (.5 )
         Effect of other (4)   (.8 )   -     -     -     -  
     Operating efficiency ratio (3)   52.8     52.9     53.2     53.7     54.8  
         Effect of amortization of intangibles   (1.5 )   (1.6 )   (1.5 )   (1.6 )   (1.6 )
         Effect of amortization of mark-to-market adjustments   -     -     -     -     (.1 )
     Cash basis operating efficiency ratio (3)   51.3     51.3     51.7     52.1     53.1  
     Basic earnings per share $ .75   $ .81   $ .84   $ .78   $ .46  
         Effect of merger-related and restructuring items, net of tax   .01     -     -     -     .01  
         Effect of other, net of tax (4)   -     -     -     -     .35  
     Operating basic earnings per share   .76     .81     .84     .78     .82  
     Diluted earnings per share $ .75   $ .80   $ .83   $ .77   $ .46  
         Effect of merger-related and restructuring items, net of tax   -     .01     -     .01     .01  
         Effect of other, net of tax (4)   -     -     -     -     .34  
     Operating diluted earnings per share   .75     .81     .83     .78     .81  
         Effect of amortization of intangibles, net of tax   .03     .03     .03     .03     .03  
         Effect of amortization of mark-to-market adjustments,                              
           net of tax   -     -     -     -                -  
     Cash basis operating diluted earnings per share   .78     .84     .86     .81     .84  

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 $88 million, $34 million, $32 million, $31 million and $28 million as of December 31, 2007, September 30, 2007,
        June 30, 2007, March 31, 2007 and December 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 and restructuring charges or credits and nonrecurring items, where applicable.
  (4) Reflects a reserve charge relating to the Visa USA, Inc settlement totaling $9 million, net of tax, and a credit of $7 million to the provision for income taxes related to leveraged leases in
       the fourth quarter of 2007. The 2006 fourth quarter 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.


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


 
  For the Twelve Months Ended
(Dollars in millions, except per share data) 12/31/07 12/31/06
RECONCILIATION TABLE            
     Net income $ 1,734   $ 1,528  
         Merger-related and restructuring items, net of tax   13     11  
         Other, net of tax (3)   2     168  
     Operating earnings   1,749     1,707  
         Amortization of intangibles, net of tax   65     65  
         Amortization of mark-to-market adjustments, net of tax   2     8  
     Cash basis operating earnings   1,816     1,780  
     Return on average assets   1.37  % 1.34  %
         Effect of merger-related and restructuring items, net of tax   .01     .01  
         Effect of other, net of tax (3)   -     .14  
     Operating return on average assets   1.38     1.49  
         Effect of amortization of intangibles, net of tax (1)   .12     .13  
         Effect of amortization of mark-to-market adjustments, net of tax   -     .01  
     Cash basis operating return on average tangible assets   1.50     1.63  
     Return on average equity   14.25  % 13.35  %
         Effect of merger-related and restructuring items, net of tax   .10     .10  
         Effect of other, net of tax (3)   .02     1.46  
     Operating return on average equity   14.37     14.91  
         Effect of amortization of intangibles, net of tax (1)   12.42     12.20  
         Effect of amortization of mark-to-market adjustments, net of tax   .03     .12  
     Cash basis operating return on average tangible equity   26.82     27.23  
     Efficiency ratio (taxable equivalent) (2)   53.7  % 54.8  %
         Effect of merger-related and restructuring items   (.3 )   (.3 )
         Effect of other (3)   (.3 )   .4  
     Operating efficiency ratio (2)   53.1     54.9  
         Effect of amortization of intangibles   (1.5 )   (1.6 )
         Effect of amortization of mark-to-market adjustments   -     (.1 )
     Cash basis operating efficiency ratio (2)   51.6     53.2  
     Basic earnings per share $ 3.17   $ 2.84  
         Effect of merger-related and restructuring items, net of tax   .02     .02  
         Effect of other, net of tax (3)   .01     .31  
     Operating basic earnings per share   3.20     3.17  
     Diluted earnings per share $ 3.14   $ 2.81  
         Effect of merger-related and restructuring items, net of tax   .02     .02  
         Effect of other, net of tax (3)   .01     .31  
     Operating diluted earnings per share   3.17     3.14  
         Effect of amortization of intangibles, net of tax   .12     .12  
         Effect of amortization of mark-to-market adjustments, net of tax   -     .01  
     Cash basis operating diluted earnings per share   3.29     3.27  
 
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) Reflects the effect of excluding average intangible assets from average assets and average equity, net of deferred taxes, 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 and restructuring charges or credits
                        and nonrecurring items, where applicable.
             (3) Reflects a reserve charge relating to the Visa USA, Inc settlement totaling $9 million, net of tax, and a credit of $7 million to the provision for income taxes related to leveraged leases
                        in 2007. 2006 reflects an additional tax provision of $139 million related to leveraged leases, a loss on the sale of securities totaling $47 million, net of tax, and a gain on the sale of
                        duplicate facilities totaling $18 million, net of tax.


QUARTERLY PERFORMANCE SUMMARY   Tamera L. Gjesdal    
BB&T Corporation (NYSE:BBT)   Senior Vice President   (336) 733-3058  
CREDIT SUPPLEMENT PAGE 1   Investor Relations   FAX (336) 733-3132  


(Dollars in millions, except average loan size)                        
SUPPLEMENTAL RESIDENTIAL MORTGAGE PORTFOLIO INFORMATION                        
 
  As of / For the Period Ended December 31, 2007
 
                Construction/      
 Mortgage Loans   Prime ALT -A   Permanent   Subprime (1)
 
     Total loans outstanding $ 12,213   $ 3,295   $ 1,788   $ 520  
 
     Average loan size (in thousands)   187     323     298     64  
     Average credit score   720     734     734     604  
 
     Percentage of total loans   13.3  %   3.6  %   2.0  %   .6  %
     Percentage that are first mortgages   99.6     99.7     98.7     81.2  
 
     Nonaccrual loans and leases as a percentage of category   .55     .72     1.09     3.28  
     Gross charge-offs as a percentage of category   .04     .03     .26     .78  
 
 
  As of / For the Period Ended December 31, 2007
 
                      Gross Charge-
                Nonaccrual as a   Offs as a
  Total Mortgages     Percentage of   Percentage of   Percentage of
 Residential Mortgage Loans by State Outstanding (1)            Total     Outstandings   Outstandings
 
     North Carolina $ 4,385     24.6  %   .33  %   .06  %
     Virginia   3,627     20.4     .53     .09  
     Florida   2,657     14.9     1.67     .04  
     Maryland   1,876     10.5     .43     .05  
     South Carolina   1,676     9.4     .38     .02  
     Georgia   1,669     9.4     1.37     .22  
     West Virginia   398     2.2     .52     .01  
     Kentucky   356     2.0     .53     .14  
     Tennessee   246     1.4     .13     .02  
     Washington, D.C.   185     1.0     .40                  -  
     Other   741     4.2     .94     .11  
     Total $ 17,816     100.0  %   .71  %   .08  %
 
 
(Dollars in millions, except average loan size)                        
SUPPLEMENTAL HOME EQUITY PORTFOLIO INFORMATION (2)                        
                As of / For the Period Ended  
                       December 31, 2007  
 
                Home Equity   Home Equity
 Home Equity Loans & Lines               Loans   Lines
 
     Total loans outstanding             $ 10,138   $ 4,463  
 
     Average loan size (in thousands) (3)               47     32  
     Average credit score               724     757  
 
     Percentage of total loans               11.1  %   4.9  %
     Percentage that are first mortgages               76.9     22.6  
 
     Nonaccrual loans and leases as a percentage of category               .32     .19  
     Gross charge-offs as a percentage of category               .29     .26  
 
 
 
  As of / For the Period Ended December 31, 2007
 
  Total Home                 Gross Charge-
  Equity Loans and           Nonaccrual as a   Offs as a
  Lines     Percentage of   Percentage of   Percentage of
 Home Equity Loans and Lines by State Outstanding            Total     Outstandings   Outstandings
     North Carolina $ 5,145     35.2  %   .24  %   .43  %
     Virginia   3,223     22.1     .14     .19  
     South Carolina   1,454     10.0     .37     .23  
     Georgia   1,136     7.8     .41     .29  
     West Virginia   904     6.2     .30     .10  
     Maryland   843     5.8     .18     .15  
     Florida   714     4.9     .57     .27  
     Kentucky   615     4.2     .39     .20  
     Tennessee   457     3.1     .43     .08  
     Washington, D.C.   92     .6     .29     .55  
     Other   18     .1     .57                  -  
     Total $ 14,601     100.0  %   .28  %   .28  %
 
           

NOTES: (1) Includes $350 million in loans originated by Lendmark Financial Services, which are disclosed as a part of the specialized lending category.
             (2) Home Equity portfolio is a component of direct retail loans and originated through the BB&T branching network.
             (3) Home equity lines without an outstanding balance are excluded from this calculation.


QUARTERLY PERFORMANCE SUMMARY   Tamera L. Gjesdal    
BB&T Corporation (NYSE:BBT)   Senior Vice President   (336) 733-3058  
CREDIT SUPPLEMENT PAGE 2   Investor Relations   FAX (336) 733-3132  


(Dollars in millions, except average loan and average client size)                                  
SUPPLEMENTAL COMMERCIAL REAL ESTATE LOAN PORTFOLIO INFORMATION (1)                          
 
  As of / For the Period Ended December 31, 2007
 
 Residential Acquisition, Development, and Construction   Builder / Land / Land   Condos /       Other Commercial Total Commercial
 Loans (ADC)    Construction Development   Townhomes   Total ADC Real Estate (2) Real Estate
 
     Total loans outstanding $ 3,446 $ 4,614   $ 665   $ 8,725   $ 9,769   $ 18,494  
 
     Average loan size (in thousands)   286   586     1,419     427     433     430  
     Average client size (in thousands)   857   1,345     3,400     1,137     604     781  
 
 
     Percentage of total loans   3.8  % 5.0  %   .7  %   9.5  %   10.7  %   20.2  %
 
     Nonaccrual loans and leases as a percentage of category   1.33   1.39     .45     1.30     .37     .81  
     Gross charge-offs as a percentage of category   .21   .20     .23     .21     .07     .13  
 
 
 
 
      As of / For the Period Ended December 31, 2007
 
                              Gross Charge-
                  Nonaccrual Nonaccrual as a Offs as a
Residential Acquisition, Development, and Construction       Total Percentage of Loans Percentage of Percentage of
 Loans (ADC) by State of Origination       Outstandings Total and Leases Outstandings Outstandings
North Carolina          $ 2,893     33.2 % $ 18     .62 %   .10 %
     Georgia       1,754     20.1     28     1.58     .57  
     Virginia       1,410     16.2     4     .32     .13  
     Florida       928     10.7     35     3.77     .10  
     South Carolina       674     7.7     5     .72     .02  
     Tennessee       291     3.3     4     1.25     .05  
     Washington, D.C.       264     3.0     1     .34                  -  
     Kentucky       221     2.5     5     2.42     .09  
     West Virginia       151     1.7     13     8.61     1.07  
     Maryland       139     1.6              -                    -                  -  
        Total          $ 8,725     100.0 % $ 113     1.30 %   .21 %

NOTES: (1) Commercial real estate loans (CRE) are defined as loans to finance non-owner occupied real property where the primary repayment source is the sale or rental/lease of the real property.
         Definition is based on internal classification.
  (2) Other CRE loans consist primarily of non-residential income producing CRE loans. C&I loans secured by real property are excluded.