Exhibit 99.1

                   REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS

To BB&T Corporation:

  We have audited the accompanying consolidated balance sheets of BB&T
Corporation (a North Carolina corporation) and subsidiaries as of December 31,
1999 and 1998, and the related consolidated statements of income, changes in
shareholders' equity and cash flows for each of the three years in the period
ended December 31, 1999. These financial statements are the responsibility of
the Company's management. Our responsibility is to express an opinion on these
financial statements based on our audits.

  We conducted our audits in accordance with auditing standards generally
accepted in the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on
a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

  In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of BB&T Corporation and
subsidiaries as of December 31, 1999 and 1998, and the results of their
operations and their cash flows for each of the three years in the period
ended December 31, 1999 in conformity with accounting principles generally
accepted in the United States.

                                          Arthur Andersen LLP

Charlotte, North Carolina,
October 27, 2000.

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              MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL REPORTING

  The management of BB&T is responsible for the preparation of the financial
statements, related financial data and other information in this Current
Report on Form 8-K. The financial statements are prepared in accordance with
generally accepted accounting principles and include amounts based on
management's estimates and judgment where appropriate. Financial information
appearing throughout this Current Report on Form 8-K is consistent with the
financial statements.

  BB&T's accounting system, which records, summarizes and reports financial
transactions, is supported by an internal control structure which provides
reasonable assurance that assets are safeguarded and that transactions are
recorded in accordance with BB&T's policies and established accounting
procedures. As an integral part of the internal control structure, BB&T
maintains a professional staff of internal auditors who monitor compliance
with and assess the effectiveness of the internal control structure.

  The Audit Committee of BB&T's Board of Directors, composed solely of outside
directors, meets regularly with BB&T's management, internal auditors and
independent public accountants to review matters relating to financial
reporting, internal control structure and the nature, extent and results of
the audit effort. The independent public accountants and the internal auditors
have access to the Audit Committee with or without management present.

  The financial statements have been audited by Arthur Andersen LLP,
independent public accountants, who render an independent opinion on
management's financial statements. Their appointment was recommended by the
Audit Committee, approved by the Board of Directors and ratified by the
shareholders. Their examination provides an objective assessment of the degree
to which BB&T's management meets its responsibility for financial reporting.
Their opinion on the financial statements is based on auditing procedures,
which include reviewing the internal control structure to determine the timing
and scope of audit procedures and performing selected tests of transactions
and records as they deem appropriate. These auditing procedures are designed
to provide a reasonable level of assurance that the financial statements are
fairly presented in all material respects.


     John A. Allison             Scott E. Reed            Sherry A. Kellett
      Chairman and          Chief Financial Officer          Controller
 Chief Executive Officer

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