-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, L7Oxv6piowc+zfDiC5rg+G2CR2Sv/pUOz4OspP+MolK1ZcAnXPPN9pg4nfGWMH5R NMlQyW7vlZYw8/IWbB914A== 0000950168-97-001695.txt : 19970701 0000950168-97-001695.hdr.sgml : 19970701 ACCESSION NUMBER: 0000950168-97-001695 CONFORMED SUBMISSION TYPE: 424B3 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19970630 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: BB&T CORP CENTRAL INDEX KEY: 0000092230 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 560939887 STATE OF INCORPORATION: NC FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 424B3 SEC ACT: 1933 Act SEC FILE NUMBER: 033-57859 FILM NUMBER: 97632575 BUSINESS ADDRESS: STREET 1: 200 WEST SECOND STREET CITY: WINSTON-SALEM STATE: NC ZIP: 27101 BUSINESS PHONE: 9107332000 MAIL ADDRESS: STREET 1: 200 WEST SECOND STREET CITY: WINSTON-SALEM STATE: NC ZIP: 27101 FORMER COMPANY: FORMER CONFORMED NAME: SOUTHERN NATIONAL CORP /NC/ DATE OF NAME CHANGE: 19920703 424B3 1 BB&T CORPORATION 424B3 P R O S P E C T U S Pursuant to Rule 424(b)(3) (AMENDING AND RESTATING THE Registration No. 33-57859 PROSPECTUS DATED MARCH 1, 1995) BB&T CORPORATION 5,500,000 SHARES OF COMMON STOCK OFFERED AS SET FORTH HEREIN PURSUANT TO THE DIVIDEND REINVESTMENT PLAN OF BB&T CORPORATION The Dividend Reinvestment Plan (the "Plan") of BB&T Corporation (the "Corporation") provides participants in the Plan with a convenient and economical way of investing dividends and optional cash payments in additional shares of the common stock, $5.00 par value ("Common Stock"), of the Corporation. Any holder of record of Common Stock is eligible to participate in the Plan. Participants in the Plan may: (Bullet) have cash dividends on all or part of their shares reinvested automatically in shares of Common Stock at a price of not less than 95% of the then current market value; or (Bullet) invest optional cash payments in shares of Common Stock at the then current market value provided that each payment is at least $25 and total payments by a participant in any calendar month do not exceed $10,000. The price per share of Common Stock purchased for participants in the Plan from the reinvested dividends on their holdings of Common Stock will not be less than 95% (subject to adjustment) of the closing sales price for the shares on the New York Stock Exchange (the "NYSE") on the trading day immediately preceding the applicable purchase date. Shares for the Plan either will come from authorized but unissued Common Stock or will be purchased for participants in open market transactions. A shareholder who is not presently participating in the Plan may become a participant by completing the enclosed Authorization Form and returning it to the Plan Administrator, Dividend Reinvestment Plan, P.O. Box 2887, Wilson, North Carolina 27894-2887. However, a shareholder already enrolled in the Plan (or in a dividend reinvestment plan of any predecessor company) will remain a participant in the Plan (on the terms set forth in this Prospectus) automatically without any further action. A shareholder who does not wish to participate in the Plan need not take any action and will continue to receive cash dividends, if and when declared, in the usual manner. Any questions about the administration of the Plan should be directed to the Plan Administrator at 919/246-4606. THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. THE SHARES OF COMMON STOCK OFFERED HEREBY ARE NOT SAVINGS ACCOUNTS, DEPOSITS OR OTHER OBLIGATIONS OF A BANK OR SAVINGS ASSOCIATION AND ARE NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENTAL AGENCY. THE DATE OF THIS PROSPECTUS IS JUNE 30, 1997. THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY THE SECURITIES COVERED BY THIS PROSPECTUS IN ANY JURISDICTION TO ANY PERSON TO WHOM IT IS UNLAWFUL TO MAKE SUCH OFFER OR SOLICITATION. NEITHER THE DELIVERY OF THIS PROSPECTUS NOR ANY SALE MADE HEREUNDER SHALL, UNDER ANY CIRCUMSTANCES, CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE CORPORATION SINCE THE DATE HEREOF. TABLE OF CONTENTS
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AVAILABLE INFORMATION............................ 3 INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE...................................... 3 THE CORPORATION.................................. 4 USE OF PROCEEDS.................................. 4 DESCRIPTION OF THE PLAN.......................... 5 Purpose........................................ 5 1. What is the purpose of the Plan?........... 5 Participation Alternatives..................... 5 2. What alternatives are available to participants in the Plan?.................. 5 Advantages..................................... 5 3. What are the advantages of the Plan?....... 5 Administration................................. 6 4. Who administers the Plan for participants?.............................. 6 Participation.................................. 6 5. Who is eligible to participate?............ 6 6. How does an eligible shareholder participate?............................... 6 7. When may an eligible shareholder enroll in the Plan?...................................... 7 8. What does the Authorization Form provide?................................... 7 9. How may a participant change participation alternatives under the Plan?............... 8 Costs.......................................... 8 10. Are there any expenses to participants in connection with purchases under the Plan?.. 8 Purchases...................................... 8 11. What is the source of shares purchased under the Plan?............................ 8 12. How many shares will be purchased for participants?.............................. 8 13. What will be the price of shares of Common Stock purchased under the Plan?............ 8 14. How will participants be informed of the amount of the discounted purchase price to fair market value as in effect from time to time?...................................... 9 15. When will purchases of shares of Common Stock be made?............................. 9 Optional Cash Payments......................... 9 16. How do optional cash payments work?........ 9 17. How may optional cash payments be made?...................................... 9 Reports to Participants........................ 10 18. What kind of reports will be sent to participants in the Plan?.................. 10 Dividends on Fractions of Shares............... 10 19. Will participants be credited with cash dividends on full and fractional shares held in their accounts under the Plan?..... 10 Certificates for Shares........................ 10 20. Will stock certificates be issued for the shares of Common Stock purchased?.......... 10 21. In whose name will certificates be registered when issued to participants?.... 11 Change of Participation, Withdrawals and Termination.................................. 11 22. How do participants change their method of participation?............................. 11 23. How does a participant withdraw shares from his or her Plan Account?................... 11 24. How may participation in the Plan be terminated?................................ 11 25. When may participation in the Plan be terminated?................................ 11 Taxes.......................................... 12 26. What are the Federal income tax consequences of participation in the Plan?...................................... 12 Other Information.............................. 13 27. What happens when you sell or transfer all of the shares registered in your name?..... 13 28. What happens when you sell or transfer some but not all of the shares registered in your name?................................. 13 29. If the Corporation has a rights offering, how will the rights on the Plan shares be handled?................................... 13 30. What happens if the Corporation issues a dividend payable in stock or declares a stock split?............................... 14 31. How will a participant's shares held by the Plan Administrator be voted at shareholders' meetings?.................................. 14 32. What are the responsibilities of the Corporation and the Plan Administrator under the Plan?............................ 14 33. May the Plan be changed or discontinued?... 14 34. How may shareholders obtain answers to other questions regarding the Plan?........ 15 35. What provision is made for those shareholders whose dividends are subject to income tax withholdings?................... 15 INDEMNIFICATION.................................. 15
AVAILABLE INFORMATION The Corporation is subject to the informational requirements of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and in accordance therewith files periodic reports, proxy statements and other information with the Securities and Exchange Commission (the "Commission") containing information relating to the business, financial statements, directors, officers and principal holders of its securities and other matters. Such reports, proxy statements and other information concerning the Corporation are available for inspecting and copying at the public reference facilities maintained by the Commission at Room 1024, Judiciary Plaza, 450 Fifth Street, N.W., Washington, D.C. 20549 and at its regional offices at 7 World Trade Center, New York, New York 10048, and 500 West Madison Street, Suite 1400, Chicago, Illinois 60611-2511. Copies of the foregoing materials also can be obtained at prescribed rates by request in writing directed to the Commission, Public Reference Section, 450 Fifth Street, N.W., Washington, D.C. 20549. The Commission maintains a World Wide Web site on the Internet at http://www.sec.gov that contains reports, proxy and information statements and other information regarding registrants that file electronically with the Commission, including the Corporation. Shares of the Corporation's Common Stock are listed on the NYSE (trading symbol BBK), and reports, proxy statements and other information may also be inspected at the offices of the NYSE, 20 Broad Street, New York, New York 10005. INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE The Corporation hereby incorporates by reference in this Prospectus the following documents filed with the Commission: (i) the Corporation's Annual Report on Form 10-K for the year ended December 31, 1996; (ii) the Corporation's Quarterly Report on Form 10-Q for the three months ended March 31, 1997; (iii) the Corporation's Current Reports on Form 8-K filed with the Commission on April 11, 1997, May 23, 1997 and June 11, 1997; (iv) the information appearing under the heading "Pro Forma Condensed Financial Information" in the Joint Proxy Statement/Prospectus dated March 19, 1997 included in the Corporation's Registration Statement on Form S-4 (Reg. No. 333-23569); (v) the description of the Common Stock in the Corporation's Registration Statement filed with the Commission under the Exchange Act, including all amendments and reports filed for the purpose of updating such description; and (vi) the description of the Corporation's Share Purchase Rights in the Corporation's Registration Statement on Form 8-A filed with the Commission under the Exchange Act. All other reports filed by the Corporation with the Commission pursuant to Section 13(a) and 13(c) of the Exchange Act subsequent to the date of this Prospectus and prior to the termination of the offering of shares of Corporation's Common Stock pursuant to the Plan, any definitive proxy or information statement filed pursuant to Section 14 of the Exchange Act in connection with any subsequent meetings of shareholders and any reports filed pursuant to Section 15 of the Exchange Act prior to any such termination of the offering of shares shall be deemed to be incorporated by reference in this Prospectus and to be a part hereof from the date of filing of such documents. Any statement contained in a document incorporated or deemed to be incorporated by reference herein shall be deemed to be modified or superseded for purposes of this Prospectus to the extent that a statement contained herein or in any other subsequently filed document which also is or is 3 deemed to be incorporated by reference herein modified or superseded such statement. Any such statement so modified or superseded shall not be deemed, except as so modified or superseded, to constitute a part of this Prospectus. The Corporation will provide promptly without charge to each person to whom this Prospectus is delivered, on the written or oral request of any such person, a copy of any or all of the documents incorporated herein by reference (other than exhibits to such documents which are not specifically incorporated by reference in such documents). Written requests for such copies should be directed to Jerone C. Herring, General Counsel, BB&T Corporation, 200 West Second Street, Winston-Salem, North Carolina 27101. Telephone requests may be directed to 910/733-2180. Additional information regarding the Corporation, the Plan described herein and the securities offered by this Prospectus is contained in the Registration Statement on Form S-3 and the exhibits relating thereto, as filed with the Commission under the Securities Act of 1933, as amended. For further information in this regard, reference is made to the Registration Statement and the exhibits thereto, which may be inspected without charge at, and copies thereof may be obtained at prescribed rates from, the office of the Commission at 450 Fifth Street, N.W., Washington, D.C. 20549. See "Available Information." THE CORPORATION The Corporation is a multi-bank holding company incorporated under the laws of the State of North Carolina in 1968. The Corporation offers a wide range of banking services to retail and commercial customers, including small and mid-size businesses, public agencies and local governments, trust customers and individuals. The Corporation also engages in banking related activities through additional subsidiaries that offer leasing, investment, insurance and other products and services. The Corporation's principal executive offices are located at 200 West Second Street, Winston-Salem, North Carolina 27101, and its telephone number is 910/733-2300. USE OF PROCEEDS The proceeds from the sale of the Common Stock offered pursuant to the Plan will be used for general corporate purposes, including investments in, or extensions of credit to, the Corporation's subsidiaries. 4 DESCRIPTION OF THE PLAN The Plan permits participants to purchase additional shares of Common Stock at any time by reinvesting cash dividends on the shares and by making optional cash payments as described below. Such purchases will be effected without payment of any brokerage commissions, service charges or other fees by the participants. The following is a statement of the material features of the Plan in a question and answer format. PURPOSE 1. WHAT IS THE PURPOSE OF THE PLAN? The purpose of the Plan is to continue to provide holders of record of the Corporation's Common Stock with a simple, economical and convenient method of acquiring additional shares of Common Stock by the reinvestment of cash dividends (at a price of not less than 95% of the fair market value) and through optional cash payments (at a price equal to 100% of the fair market value), and in both instances without payment of any brokerage fees or commissions, service charges or other expenses. To the extent these additional shares are purchased directly from the Corporation, the Corporation will receive additional funds for its general corporate purposes. PARTICIPATION ALTERNATIVES 2. WHAT ALTERNATIVES ARE AVAILABLE TO PARTICIPANTS IN THE PLAN? As a participant in the Plan: a. You may have cash dividends on all of.your shares automatically reinvested. You also may make optional cash payments of not less than $25 but limited to aggregate payments of $10,000 per calendar month. b. You may have cash dividends on less than all of your shares automatically reinvested, while continuing to receive cash dividends on the other shares. The right to make optional cash payments of not less than $25 up to a total of $10,000 per calendar month will continue to be available. c. You may make optional cash payments only of not less than $25 but limited to aggregate payments of $10,000 per calendar month, whether or not you have elected to have cash dividends reinvested under a or b above. ADVANTAGES 3. WHAT ARE THE ADVANTAGES OF THE PLAN? a. The price of those shares to be purchased with reinvested dividends will not be less than 95% of the current market value of Common Stock, as more fully explained under Question 13. Please note, however, no purchase discount from current market value will be available for those shares to be purchased with optional cash payments. b. No brokerage fees or commissions, service charges or other direct expenses will be paid by you in connection with purchases of Common Stock under the Plan. c. The funds made available will be fully invested because the Plan permits fractions of shares of Common Stock to be credited to your account. The cash dividends on such fractions, as well as on whole 5 shares, credited to your account will be reinvested in additional shares at not less than 95% of the fair market value thereof. d. You will avoid the need for safekeeping of stock certificates for shares of Common Stock credited to your account under the Plan. You may also surrender to the Plan Administrator for safekeeping certificates for shares of Common Stock for which you are having dividends reinvested (see Question 20). e. The regular periodic statements and reports from the Plan Administrator will reflect (i) the rate of the discounted purchase price (not less than 95% of the fair market value) for purchases of shares of Common Stock through utilization of cash dividends, as determined by the Corporation's directors; and (ii) the current activity under your account, including purchases and latest balances, which will simplify your record-keeping. ADMINISTRATION 4. WHO ADMINISTERS THE PLAN FOR PARTICIPANTS? Branch Banking and Trust Company ("BB&T-NC"), a wholly-owned subsidiary of the Corporation, has been appointed Plan Administrator. It will keep records, send statements of account to each participant, and will perform other administrative duties relating to the Plan. The shares of Common Stock purchased for you under the Plan will be held for you in safekeeping by or through BB&T-NC until termination of your participation in the Plan or until a written request is received from you for withdrawal of all or part of your shares. If you have any questions, please call the Plan Administrator at 919/246-4606. The Corporation has the authority to adopt and amend rules and regulations to facilitate the administration of the Plan. All purchases of shares of Common Stock for the accounts of participants on the open market will be accomplished through the The Bank of New York or such other independent agent as may be selected by the Plan Administrator (the "Agent"). The Agent also may effect sales of such shares on the open market in case of the withdrawal or termination of a participant's interests under the Plan, if authorized by the terms of the Plan or if otherwise directed by the participant to do so. See Questions 23 and 24. PARTICIPATION 5. WHO IS ELIGIBLE TO PARTICIPATE? If you are a holder of the Corporation's Common Stock registered in your name, you are eligible to participate. If you beneficially own shares registered in another name (for example, in the name of a broker or bank nominee), you must either make appropriate arrangements for your broker or nominee to participate, or you must become a shareholder of record by having all or a portion of your shares transferred to your own name. 6. HOW DOES AN ELIGIBLE SHAREHOLDER PARTICIPATE? Unless otherwise a participant in the Plan, the holder of record of the Corporation's Common Stock may enroll in the Plan by checking the appropriate box on the Authorization Form and signing and returning it to the Plan Administrator at the address below. A return envelope will be provided for this purpose. Where Common Stock is registered in more than one name (i.e. joint tenants, trustees, etc.), all of the registered holders must sign. See Question 8 for more information on the Authorization Form. 6 All questions and communications regarding the Plan should be addressed to the Plan Administrator at the following address: Branch Banking and Trust Company Corporate Trust Department Dividend Reinvestment Plan P.O. Box 2887 Wilson, N.C. 27894-2887 919/246-4606 7. WHEN MAY AN ELIGIBLE SHAREHOLDER ENROLL IN THE PLAN? An eligible shareholder may enroll in the Plan at any time. Unless you select the "Optional Cash Purchases Only" investment option, you will begin to participate in the Plan as of the dividend payment date associated with the first dividend record date which occurs after the date the Plan Administrator receives your signed Authorization Form. The dividend record dates usually precede the dividend payment dates by approximately two weeks. See Questions 16 and 17 to determine when those holders who select the "Optional Cash Purchases Only" option will begin to participate in the Plan. 8. WHAT DOES THE AUTHORIZATION FORM PROVIDE? The Authorization Form provides for the purchase of additional shares of the Corporation's Common Stock through the following investment options: A. "Full Dividend Reinvestment" -- directs the investment, in accordance with the Plan, of the cash dividends on all of the shares of Common Stock then or subsequently registered in your name, and also permits you to make optional cash payments for the purchase of additional shares in accordance with the Plan; B. "Partial Dividend Reinvestment" -- directs the investment, in accordance with the Plan, of the cash dividends on only a specified portion of the shares of Common Stock, and also permits you to make optional cash payments for the purchase of additional shares in accordance with the Plan; and C. "Optional Cash Purchases Only" -- permits you to make optional cash payments for the purchase of additional shares of Common Stock in accordance with the Plan, but without any reinvestment of cash dividends on those shares directly held by you. After you receive your statement on each optional cash purchase, you may elect to receive the cash dividends on such shares by written notification to the Plan Administrator at the address listed in Question 6. Otherwise, such cash dividends will be automatically reinvested pursuant to the Plan. If you return an Authorization Form properly executed but with no investment alternative designated, you will be enrolled in the "Full Dividend Reinvestment" option. You may select either of the cash dividends reinvestment alternatives or the optional cash purchase alternative only. In all cases, the cash dividends on shares held for your account under the Plan will be reinvested in accordance with the Plan, including dividends on shares purchased with optional cash payments, unless notice is given as described in paragraph C above. 7 9. HOW MAY A PARTICIPANT CHANGE PARTICIPATION ALTERNATIVES UNDER THE PLAN? As a participant, you may change your investment alternatives at any time by requesting a new Authorization Form and returning it to the Plan Administrator at the address set forth in Question 6. (See also Questions 7 and 8.) If an Authorization Form changing the reinvestment of cash dividends is received before the record date for payment of the related cash dividends, the change will be effective on the related dividend payment date. If the Authorization Form is received later than that date, the change will be put into effect on the next cash dividends payment date. COSTS 10. ARE THERE ANY EXPENSES TO PARTICIPANTS IN CONNECTION WITH PURCHASES UNDER THE PLAN? No. All costs of administration of the Plan will be paid by the Corporation. No brokerage fees or commissions on shares purchased under the Plan will be paid by participants, whether the additional shares are purchased directly from the Corporation or, under certain conditions, on the open market. PURCHASES 11. WHAT IS THE SOURCE OF SHARES PURCHASED UNDER THE PLAN? Shares purchased under the Plan either will come from the Corporation's authorized but unissued shares or from shares purchased for participants' accounts on the open market. The decision to purchase shares on the open market will take into account the Corporation's equity position, general market conditions, relationship between the purchase price and the book value per share, and other relevant factors. 12. HOW MANY SHARES WILL BE PURCHASED FOR PARTICIPANTS? The number of shares purchased for your account will depend on the amount of your cash dividends and/or optional cash payments and the price per share. Your account will be credited with that number of shares, including fractions, equal to the total amount to be invested divided by the applicable purchase price per share. 13. WHAT WILL BE THE PRICE OF SHARES OF COMMON STOCK PURCHASED UNDER THE PLAN? For purposes of determining the number of shares of Common Stock to be purchased for participants accounts under the Plan with reinvested cash dividends (including those dividends on all shares of Common Stock credited to participants' accounts under the Plan), the price per share will not be less than 95% of the fair market value of Common Stock based upon the closing sales price, as reported on the NYSE, on the first trading day on which the closing sales price is so reported immediately preceding the applicable Investment Date as defined below (see Question 15). With respect to the number of shares of Common Stock to be purchased for those participants electing to make optional cash payments, the price of each such share shall be 100% of the fair market value and without benefit of any discounted purchase price. The determination of the purchase price for shares made in accordance with this question is solely for the purpose of determining the number of shares to be purchased for each participant's account and does not determine the participant's tax basis in the shares so purchased. See Question 26 for tax information. 8 14. HOW WILL PARTICIPANTS BE INFORMED OF THE AMOUNT OF THE DISCOUNTED PURCHASE PRICE TO FAIR MARKET VALUE AS IN EFFECT FROM TIME TO TIME? For the benefit of new enrollees under the Plan, the Authorization Form described in Question 8 will reflect the then current percentage amount of the rate of purchase price discount (if any). In no event shall the purchase price be less than 95% of fair market value. For those participants who will continue under the Plan, they will be advised of the applicable rate of purchase price discount by the provisions of the reports to be furnished to participants by the Plan Administrator. See Question 18. 15. WHEN WILL PURCHASES OF SHARES OF COMMON STOCK BE MADE? The shares of Common Stock to be purchased for participants will be allocated to their accounts as of the Investment Date. For the reinvestment of cash dividends, the Investment Date will be the dividend payment date, which generally is the 1st day of February, May, August, and November. For the investment of all optional cash payments, the Investment Date will be the first and fifteenth day of the calendar month if received on or before the fifth day immediately preceding those dates. See Question 16 for information on return of optional cash payments if not invested timely. OPTIONAL CASH PAYMENTS 16. HOW DO OPTIONAL CASH PAYMENTS WORK? The optional cash payments received from a participant will be accumulated with the optional cash payments of all participants, inclusive of the cash dividends held for reinvestment on the same Investment Date. Such accumulated amounts will be applied by the Plan Administrator to the purchase of additional shares of Common Stock directly from the Corporation, or by the Agent with respect to the accumulated amounts to be utilized to effect purchases on the open market, as of that Investment Date. The price of the shares of Common Stock purchased with the optional cash payments will be one hundred percent (100%) of fair market value as described in Question 13 above. The optional cash payments received within five days immediately preceding an Investment Date will be held by the Plan Administrator until the next Investment Date; provided, however, that no optional cash payments will be held for more than 20 days. The purchase price for all shares purchased as of the same Investment Date will be allocated to each participant's account on the basis of the weighted average price of all such shares if effected in more than one transaction and at different prices. The optional cash payments received prior to the 20th day preceding an Investment Date on which they could have been invested will be returned to the participant. No interest will be paid by either the Corporation or the Plan Administrator on optional cash payments held pending investment. Consequently, you are strongly urged to make your optional cash payments as close as possible to the fifth day immediately preceding the next appropriate Investment Date (the first or fifteenth day of each calendar month). In this regard, you should allow sufficient time to ensure that your payment is received by the Plan Administrator five days before these dates. A shareholder may participate in the Plan even if he or she wishes to make the optional cash payments only. 17. HOW MAY OPTIONAL CASH PAYMENTS BE MADE? An optional cash payment may be made by a participant at the time of enrolling in the Plan by enclosing with the Authorization Form a check made payable to Branch Banking and Trust Company, as Plan Administrator. Thereafter, the optional cash payments may be made monthly through use of the cash payment forms, which will be attached to statements of account sent by the Plan Administrator to participants, or by bank 9 draft. The same amount need not be sent each month, and there is no obligation to make an optional cash payment for each or any Investment Date. The minimum optional cash payment by a participant in any calendar month is $25 and the aggregate of such payments received by the Plan Administrator in any one calendar month cannot exceed a total of $10,000 for any participant. An optional cash payment will be refunded if a written request for refund is received by the Plan Administrator at least 48 hours prior to the next applicable Investment Date on which the cash payment otherwise would have been invested. REPORTS TO PARTICIPANTS 18. WHAT KIND OF REPORTS WILL BE SENT TO PARTICIPANTS IN THE PLAN? As soon as practicable after each purchase of Common Stock under the Plan (on a monthly basis for optional cash payments and quarterly with respect to all transactions), a statement of the transaction reflecting the amount, per share price and number of full shares and fractional interests purchased will be mailed to the participant by the Plan Administrator. The quarterly reports will reflect the appropriate rate of purchase price discount (if any discount is then in effect) to fair market value applicable to the reinvestment of cash dividends. These statements and reports are your continuing record of account activity and the cost of your purchases and should be retained for tax purposes. In addition, you will receive copies of communications sent to holders of the Corporation's Common Stock, including the Corporation's Quarterly Reports, Annual Reports, Notices of Shareholder Meetings and Proxy Statements, and any reports of taxable income as may be required by the Internal Revenue Service. DIVIDENDS ON FRACTIONS OF SHARES 19. WILL PARTICIPANTS BE CREDITED WITH CASH DIVIDENDS ON FULL AND FRACTIONAL SHARES HELD IN THEIR ACCOUNTS UNDER THE PLAN? Yes. Dividends on fractions, as well as on full shares, will be credited to participants' accounts and will be reinvested in additional shares (see Question 8). CERTIFICATES FOR SHARES 20. WILL STOCK CERTIFICATES BE ISSUED FOR THE SHARES OF COMMON STOCK PURCHASED? Certificates for the shares of Common Stock purchased under the Plan will not be issued directly to you, unless requested as hereinbelow provided. Such certificates will be held by or through the Plan Administrator. The number of shares credited to your account under the Plan will be shown on your statement of account. This additional service protects against loss, theft or destruction of stock certificates. Certificates for any number of shares up to the full number of shares credited to your account under the Plan will be delivered to you upon written request. This request should be mailed to the Plan Administrator at the address set forth in Question 6. Until a sale, termination or change in your method of participation, the cash dividends for all such shares will continue to be reinvested pursuant to the Plan. The shares credited to your account under the Plan may not be pledged or assigned. Any attempted pledge or assignment shall be void. If you wish to pledge shares held under the Plan, you must request that the certificates for such shares be reissued in your name. Certificates for fractional shares will not be issued under any circumstances. 10 21. IN WHOSE NAME WILL CERTIFICATES BE REGISTERED WHEN ISSUED TO PARTICIPANTS? The accounts under the Plan will be maintained in the name in which your shares are registered at the time you elect to enroll in the Plan. Consequently, certificates for full shares purchased under the Plan will be similarly registered when delivered to you upon your request. Should you want these shares registered and reissued in a different name, you must so indicate by a written request bearing your signature which has been guaranteed by an authorized financial institution. Since this would constitute a reregistration, you would be responsible for any transfer taxes that may be due and for compliance with any other applicable transfer requirements. CHANGE OF PARTICIPATION, WITHDRAWALS AND TERMINATION 22. HOW DO PARTICIPANTS CHANGE THEIR METHOD OF PARTICIPATION? You may change your method of participation at any time by indicating the change on an Authorization Form and mailing it to the Plan Administrator at the address set forth in Question 6. 23. HOW DOES A PARTICIPANT WITHDRAW SHARES FROM HIS OR HER PLAN ACCOUNT? You may at any time withdraw any or all full shares credited to your Plan account, by notifying the Plan Administrator in writing that you wish to do so. Such notice should be sent to the address set forth in Question 6. At your request, the Plan Administrator, through the Agent, will sell the shares withdrawn, and in that event you will be charged any brokerage commissions on the sale, as well as any transfer tax or other direct costs incurred in connection with the sale. The sale will be made by the Agent for your account, on the open market, within 10 business days after receipt of such request or as soon as otherwise practicable. 24. HOW MAY PARTICIPATION IN THE PLAN BE TERMINATED? In order to terminate your participation in the Plan, you must notify the Plan Administrator in writing that you wish to do so. Such notice should be addressed to the Plan Administrator at the address set forth in Question 6. Upon termination, you may elect to receive: (a) stock certificates for the full shares held for your account under the Plan, plus a check for the proceeds from the sale of any fractional share; or (b) a check for the proceeds from the sale of all shares, including any fractional share, held for your account, less any brokerage fees or commissions and any applicable transfer taxes or other direct costs incurred in connection with the sale. The sale will be made by the Agent for your account, on the open market, within 10 business days after receipt of your request or as soon as otherwise practicable, except as provided in Question 25. 25. WHEN MAY PARTICIPATION IN THE PLAN BE TERMINATED? You may terminate your participation in the Plan at any time. If the request to terminate is received on or after the record date for a dividend, any cash dividends paid on that dividend payment date will be reinvested for your account. Any optional cash payment sent to the Corporation prior to the request for termination will be invested, unless a return of the amount is expressly made in the request for termination and the request for termination is received at least 48 hours prior to the Investment Date. In the event cash dividends are reinvested, or optional cash payments invested, after the receipt of a request to terminate, the request will be processed as promptly as possible following the applicable Investment Date as set forth in Question 15. 11 All subsequent cash dividends will be paid to you by check in the ordinary manner, unless you reenroll in the Plan, which you may do at any time. The Plan provides for the termination of any participant's account upon adequate written notice of such participant's death or adjudication of incompetency, in which cases no further purchases for the account will be made. Further, a participant's account will be terminated if any participant does not make at least four payments (either in cash dividends or optional cash payments) in any 12-month period. TAXES 26. WHAT ARE THE FEDERAL INCOME TAX CONSEQUENCES OF PARTICIPATION IN THE PLAN? The following discussion summarizes the principal federal income tax consequences, under current law, of participation in the Plan. It assumes that, as expected, all dividend distributions by the Corporation will be from "earnings and profits" and therefore will constitute dividends (rather than a return of capital) for federal income tax purposes. This discussion does not address all potentially relevant federal income tax matters, including consequences peculiar to persons subject to special provisions of federal income tax law. It is based on various rulings of the Internal Revenue Service regarding several types of dividend reinvestment plans, but no ruling has been issued or requested regarding the Plan. The following discussion is for general information only, and participants are urged to consult their own tax advisors to determine the particular federal, as well as state and local, tax consequences that may result from participation in the Plan and the disposition of any shares of Common Stock purchased pursuant to the Plan. (a) REINVESTED DIVIDENDS. When your dividends are reinvested to acquire shares of Common Stock (including any fractional share), you will be treated as having received a taxable dividend equal to the amount of reinvested dividends plus the amount of the purchase price discount then in effect (if any). For example, if dividends of $95 are reinvested under the Plan to acquire shares of Common Stock with a fair market value of $100, the amount of taxable dividend will be $100. In addition, when shares are acquired for you under the Plan through open market purchases, you will be treated as having received a dividend in the amount of your allocable portion of any brokerage commissions or other acquisition fees paid by the Corporation. Thus, for example, if $95 of your dividends are reinvested to purchase shares of Common Stock with a fair market value of $100 in the open market under the Plan, and if your portion of acquisition fees paid by the Corporation is $1, the total amount of the taxable dividend you will be treated as receiving will be $101. (The $1 figure is for purposes of illustration only; it is not a representation or estimate of the amount or percentage of brokerage commissions and other acquisition fees that may be paid under the Plan.) The initial tax basis of a share of Common Stock you acquire with reinvested dividends will equal the amount of the dividend represented by the share, I.E., the share's purchase price plus the purchase price discount and, if the share is acquired through an open market purchase, the amount of any brokerage commissions and other acquisition fees allocable to the share. (b) OPTIONAL CASH PAYMENTS. Because there is no purchase price discount for shares purchased with optional cash payments, the purchase of shares of Common Stock under the Plan with your optional cash payments will not result in a taxable distribution to you for federal income tax purposes unless the purchase is made in the open market. In the case of an open market purchase, you will be treated as receiving a taxable dividend equal to your portion of any brokerage commissions and other acquisition fees paid by the Corporation. The initial tax basis of a share of Common Stock acquired with an optional cash payment will be the purchase price plus the amount of any such brokerage commissions and other acquisition fees allocable to the share. 12 (c) HOLDING PERIOD. The holding period for a share of Common Stock acquired under the Plan will begin the day after the Investment Date on which the share was acquired. A whole share consisting of fractional shares purchased on different dates will have a split holding period, with the holding period for each fractional component beginning the day after the Investment Date when the fraction was acquired. (d) RECEIPT OF SHARE CERTIFICATES AND CASH. You will not realize any income when you receive certificates for whole shares credited to your account under the Plan. Any cash received for a fractional share held in your account will be treated as an amount realized on the sale of the fractional share. You therefore will recognize gain or loss equal to any difference between the amount of cash received for a fractional share and your tax basis in the fractional share. Similarly, if the Plan Adminstrator sells shares from your Plan account for you, you will recognize gain or loss equal to the difference between the amount you realize on the sale and your tax basis in the shares. Gain or loss recognized on a sale of shares (including a fractional share) from your Plan account generally will be capital gain or loss if you hold your shares of Common Stock in the Plan as capital assets, and will be long-term gain or loss if the holding period exceeds one year when the sale occurs. OTHER INFORMATION 27. WHAT HAPPENS WHEN YOU SELL OR TRANSFER ALL OF THE SHARES REGISTERED IN YOUR NAME? If you sell or transfer all shares registered in your name, the cash dividends on shares credited to your account under the Plan will continue to be reinvested, subject to your right to withdraw from the Plan at any time. However, if a participant has only a fractional share in Common Stock credited to the account under the Plan on the record date for cash dividends on the Common Stock, the Corporation reserves the right not to reinvest the additional dividends on such fractional share and to terminate such participant's account. If the Corporation exercises this right, the participant will receive a check for the proceeds from the sale of such fractional share, plus the amount of the cash dividends thereon. 28. WHAT HAPPENS WHEN YOU SELL OR TRANSFER SOME BUT NOT ALL OF THE SHARES REGISTERED IN YOUR NAME? If you are reinvesting the cash dividends on all of the shares registered in your name (i.e., you have elected the "Full Dividend Reinvestment" alternative as described in Question 8) and you sell or transfer a portion of such shares, the cash dividends on the remainder of the shares registered in your name will continue to be reinvested. 29. IF THE CORPORATION HAS A RIGHTS OFFERING, HOW WILL THE RIGHTS ON THE PLAN SHARES BE HANDLED? If the Corporation should determine to offer securities through the issuance of rights to subscribe, warrants or subscriptions representing the rights on all shares held for the Plan will be issued to BB&T-NC, as Plan Administrator, which will sell such rights, credit your account in proportion to the full and fractional shares held therein on the record date for such rights offering, and apply the proceeds to the purchase of additional shares of Common Stock. If you wish to exercise stock purchase rights on your Plan shares, you must furnish to BB&T-NC, and BB&T-NC must receive prior to the record date for any such rights offering, instructions that BB&T-NC deliver to you a certificate for the full shares as provided in Question 20. 13 30. WHAT HAPPENS IF THE CORPORATION ISSUES A DIVIDEND PAYABLE IN STOCK OR DECLARES A STOCK SPLIT? Any dividend payable in stock or split shares distributed by the Corporation on shares registered in your name will be distributed to you. For shares credited to your account under the Plan, any such additional shares will be added to your Plan account. 31. HOW WILL A PARTICIPANT'S SHARES HELD BY THE PLAN ADMINISTRATOR BE VOTED AT SHAREHOLDERS' MEETINGS? No shares held under the Plan will be voted by the Plan Administrator. A proxy card will be sent to you in connection with any annual or special meeting of shareholders, as in the case of shareholders not participating in the Plan. This proxy will apply to all full shares registered in your own name, whether acquired pursuant to the Plan or otherwise, as well as to all shares and fractional interests credited to your account under the Plan. 32. WHAT ARE THE RESPONSIBILITIES OF THE CORPORATION AND THE PLAN ADMINISTRATOR UNDER THE PLAN? Neither the Corporation, the Plan Administrator nor the Agent will be liable under the Plan for any act done in good faith or for any good faith omission to act, including, without limitation, any claim of or liability arising out of failure to terminate your account upon your death, the prices at which shares are purchased for your account, the times when purchases or sales are made, or the fluctuations in the market value of the Corporation's stock held for your account. YOU SHOULD RECOGNIZE THAT NEITHER THE PLAN ADMINISTRATOR NOR THE CORPORATION CAN ASSURE YOU OF A PROFIT OR PROTECT YOU AGAINST A LOSS ON THE SHARES HELD FOR YOUR ACCOUNT UNDER THE PLAN. Neither the Corporation, the Plan Administrator nor the Agent and their agents shall have any responsibility beyond the exercise of ordinary care for any action taken or omitted in connection with the Plan, nor shall they have any duties, responsibilities or liabilities except as expressly set forth herein. 33. MAY THE PLAN BE CHANGED OR DISCONTINUED? The Board of Directors reserves the right to amend, modify, suspend or terminate the Plan at any time. Notice of any material amendment or modification, or of any suspension or termination, will be mailed to all participants prior to the effective date thereof. Any amendment or modification shall conclusively be deemed to be accepted by the participant unless, prior to the effective date thereof, the Plan Administrator receives written notice of the termination of his or her account. Upon termination of the Plan, any uninvested optional cash payments will be returned, a certificate for the full shares credited to your account under the Plan will be issued, and a cash payment will be made for any fraction of a share credited to your account. 14 34. HOW MAY SHAREHOLDERS OBTAIN ANSWERS TO OTHER QUESTIONS REGARDING THE PLAN? Any additional questions about the Plan should be addressed to the Plan Administrator: Branch Banking and Trust Company Corporate Trust Department Dividend Reinvestment Plan P.O. Box 2887 Wilson, North Carolina 27894-2887 Telephone: 919/246-4606 35. WHAT PROVISION IS MADE FOR THOSE SHAREHOLDERS WHOSE DIVIDENDS ARE SUBJECT TO INCOME TAX WITHHOLDINGS? Dividends received by foreign corporations and nonresident aliens generally are subject to a 30% United States withholding tax. The Plan Administrator will deduct the amount of tax to be withheld (currently 30% of the dividend amount unless the participant establishes that some lower percentage is available by reason of treaty or other exemption) from a foreign corporation or non-resident alien. If withholding is not required to be imposed as provided in the prior sentence, no withholding will apply unless the dividend payment is subject to 31% backup withholding. Backup withholding is required if a participant fails to provide a completed Payor's Request for Taxpayer Identification Number Substitute Form W-9 and is not otherwise exempt from backup withholding, or if the Internal Revenue Service notifies the Corporation that the participant has provided an incorrect taxpayer identification number or has failed to report dividend or interest income. INDEMNIFICATION Directors and officers of the Corporation are entitled to indemnification as expressly permitted by the provisions of the North Carolina Business Corporation Act and the Corporation's Bylaws. The Corporation has purchased a liability insurance policy for its directors and certain of its officers which, subject to limitations set forth in the insurance policy, indemnifies them for certain liabilities which they, or any one of them, may incur in connection with the performance of duties in their official capacities. Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers, or controlling persons of the Corporation pursuant to the foregoing provisions, the Corporation has been informed that in the opinion of the Securities and Exchange Commission, such indemnification is against public policy as expressed in such Act and is therefore unenforceable. 15 NO PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR TO MAKE ANY REPRESENTATIONS, OTHER THAN AS CONTAINED HEREIN, IN CONNECTION WITH THE OFFER DESCRIBED HEREIN, AND IF GIVEN OR MADE, SUCH INFORMATION OR REPRESENTATION MUST NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED BY BB&T CORPORATION. BB&T CORPORATION DIVIDEND REINVESTMENT PLAN 5,500,000 SHARES OF COMMON STOCK PROSPECTUS DATED JUNE 30, 1997 -----END PRIVACY-ENHANCED MESSAGE-----