Edgar Filing: BB&T CORP

Quarterly Performance Summary issued July 14, 2003

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form 8-K
Current Report

Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

July 15, 2003

Date of Report (Date of earliest event reported)

BB&T Corporation
(Exact name of registrant as specified in its charter)

Commission file number : 1-10853


North Carolina	56-0939887
(State of incorporation)	(I.R.S. Employer Identification No.)


200 West Second Street
Winston-Salem, North Carolina	27101
(Address of principal executive offices)	(Zip Code)

(336) 733-2000
(Registrant's telephone number, including area code)

This Form 8-K has 15 pages.

ITEM 9. Regulation FD Disclosure (Information provided pursuant to Item 12)

The purpose of this Current Report on Form 8-K is to file BB&T’s second quarter 2003 earnings release and to reconcile BB&T’s 2003 operating earnings projections, which were provided in the earnings release, to amounts calculated in accordance with generally accepted accounting principles.

Reconciliation of Projected 2003 Operating Earnings Per Share to Earnings Per Share

Operating Diluted Earnings Per Share	$	2.75		to	$	2.85
Effect of:
Merger-related charges, net of tax		(0.08	)			(0.08	)
Loss on early retirement of debt, net of tax		(0.49	)			(0.49	)
Other, net of tax (1)		(0.03	)			(0.03	)

Diluted Earnings Per Share	$	2.15		to	$	2.25

(1) Reflects nonrecurring contributions made by an affiliated trust.

EXHIBIT INDEX

Exhibit 99.1 Quarterly Performance Summary issued July 14, 2003

July 14, 2003

FOR IMMEDIATE RELEASE


Contacts:
ANALYSTS		MEDIA
Tom A. Nicholson	Scott E. Reed	Bob Denham
Senior Vice President	Sr. Exec. Vice President	Senior Vice President
Investor Relations	Chief Financial Officer	Public Relations
(336) 733-3058	(336) 733-3088	(336) 733-1002

BB&T announces 2^nd quarter net income of $316.2 million; operating earnings per share increase 4.4%

WINSTON-SALEM, N.C. — BB&T Corporation (NYSE: BBT) reported today second quarter 2003 net income totaling $316.2 million, or $.67 per diluted share. Net income for the current quarter and diluted earnings per share reflected decreases of 3.6% and 1.5%, respectively, compared with $328.0 million and $.68 per diluted share earned during the second quarter of 2002. The decreases in current period performance were the result of merger-related and other nonrecurring charges.

Excluding the effects of merger-related charges and other nonrecurring expenses, operating earnings totaled $336.9 million for the second quarter of 2003, an increase of 2.4% compared to 2002. Diluted operating earnings per share for the second quarter were $.71, an increase of 4.4% compared with the $.68 earned during the same period last year.

BB&T’s second quarter 2003 net income produced annualized returns on average assets and average shareholders’ equity of 1.57% and 16.38%, respectively. On an operating basis, the annualized returns on average assets and average shareholders’ equity were 1.67% and 17.45%, respectively.

Cash basis operating results exclude the effects of intangible assets and related amortization expenses, as well as merger-related and other nonrecurring charges. Cash basis operating earnings totaled $341.1 million for the second quarter of 2003, or $.72 per diluted share. These results reflect increases of 2.5% in cash basis operating earnings and 4.3% in cash basis diluted operating earnings per share compared with results for the second quarter of 2002. Cash basis operating earnings for the current quarter produced an annualized return on average tangible assets of 1.73% and an annualized return on average tangible shareholders’ equity of 23.38%.

“Overall, I am pleased with our performance for the second quarter of 2003, particularly given the challenges created by the prolonged economic slowdown,” said Chairman and Chief Executive Officer John A. Allison. “Our second quarter results were driven by strong performances from our noninterest income generating businesses. We are also encouraged by the improvement in asset quality during the quarter. At the same time, despite some recent positive signs in the economy, commercial loan demand in our markets remains soft. In addition, historically low interest rates have resulted in contracting net interest margins and downward pressure on net interest income.”

For the first six months of 2003, BB&T’s net income was $644.0 million, or $1.36 per diluted share. These earnings reflect increases of 1.0% and 1.5%, respectively, compared to 2002. Excluding merger-related and other nonrecurring costs, operating earnings for the first six months of 2003 were $667.7 million, or $1.41 per diluted share, reflecting increases of 4.6% and 5.2%, respectively, compared with 2002.

Earnings Growth Driven by 19.8% Increase in Noninterest Income

The positive trends in many of BB&T’s noninterest income generating businesses continued during the second quarter. Total noninterest income was $461.1 million for the quarter, an increase of 19.8% compared with the same period in 2002. Higher revenues from BB&T’s insurance operations, as well as growth in income from investment banking and brokerage fees and commissions, and other nondeposit fees and commissions, were the primary contributors to this growth.

BB&T’s insurance operations experienced strong growth during the current quarter with insurance commissions increasing 30.0% to $101.5 million compared with $78.0 million earned during the second quarter of 2002. The expansion of BB&T’s insurance network through acquisitions of insurance agencies, combined with solid internal growth, generated the increase.

Nondeposit fees and commissions increased 16.6% to $60.8 million compared with the same quarter last year as a result of higher bankcard and merchant services income. Investment banking and brokerage fees and commissions increased 7.2% to $60.1 million compared to the second quarter last year and 15.8% compared to the first quarter this year.

The low interest rate environment continued to fuel momentum in mortgage originations and refinance activity, which in turn boosted mortgage banking income, including gains from sales of mortgage loans, origination fees and servicing fees. BB&T originated a one-quarter record $6.0 billion of mortgage loans during the second quarter, compared to $2.3 billion during the same period in 2002. While the decline in interest rates supported the growth in mortgage originations, it also produced higher prepayment speed assumptions on existing serviced loans resulting in writedowns in the value of BB&T’s mortgage servicing rights. BB&T recognized writedowns totaling $109.3 million during the second quarter of 2003 and $15.8 million during the second quarter last year. These writedowns were largely offset by gains realized from the sale of securities. Excluding these writedowns from 2003 and 2002, BB&T’s mortgage banking income totaled $76.6 million, an increase of 89.3% compared to the second quarter last year.

Asset Quality Improves

BB&T’s credit quality showed significant improvement compared to recent quarters. Nonperforming assets as a percentage of total assets were .55% at June 30, down from .60% at March 31. Annualized net charge-offs were .43% of average loans and leases for the second quarter of 2003, down from .47% in the first quarter of 2003 and .51% for the fourth quarter of 2002. Excluding losses at BB&T’s specialized lending subsidiaries, annualized net charge-offs for the current quarter were .31% of average loans and leases compared to .37% for the same period in 2002.

BB&T Declares 10.3% Increase in Dividend

On June 24, BB&T’s board of directors approved a 10.3% increase in the quarterly cash dividend paid to shareholders. The increase, to $.32 per share, marks the 32^nd consecutive year that BB&T has raised its cash dividend paid to shareholders. In addition, BB&T has paid a dividend every year since 1920. In recognition of this exceptional dividend history, Mergent, Inc., a provider of global business and financial information, recently named BB&T as a “2003 Dividend Achiever,” a designation received by fewer than 3% of the more than 10,000 U.S. publicly traded companies reviewed as part of Mergent’s study. The increase in the dividend produced an annualized dividend yield of 3.7% based on the July 11^th closing price of BB&T’s stock.

“Our ability to continue creating value for our shareholders, as evidenced by the increase in our quarterly cash dividend, is a noteworthy achievement in this difficult environment,” said Allison. “Our outstanding track record of dividend increases has made BB&T a rewarding long-term investment.”

BB&T Announces Balance Sheet Restructuring and Updates 2003 Earnings Projections

BB&T also today announced plans to restructure the company’s balance sheet in light of the low interest rate environment and significant liquidity resulting from the acquisition of First Virginia Banks, Inc. (“First Virginia”). This restructuring includes the prepayment of approximately $3 billion of fixed rate long-term advances from the Federal Home Loan Bank (“FHLB”) in the third quarter of 2003, resulting in an estimated after-tax loss of $250 million, and a reduction of approximately $5 billion in the securities portfolio. The cash flows realized from reducing the securities portfolio will be used to fund the prepayments of the Federal Home Loan Bank advances and to increase planned repurchases of BB&T’s common stock by 6 million shares to a total of approximately 18 million shares over the remainder of 2003. Management also plans to retain rather than sell up to $2 billion of fixed rate mortgage loans from originations during the second half of 2003. In addition, during the second quarter of 2003, approximately $3 billion in FHLB advances were restructured in a transaction that lowered the current interest rate paid on these borrowings.

The acquisition of First Virginia, the reduction in interest income on securities sold in the second quarter to offset writedowns in mortgage servicing rights, slower than anticipated loan growth and the reduction in interest margins brought about by the present interest rate environment are expected to result in dilution of BB&T’s 2003 operating earnings. After considering these factors, along with the favorable effects of the balance sheet restructuring initiatives previously discussed, management projects diluted operating earnings per share in the range of $2.75 to $2.85 for the full year 2003.

BB&T Completes First Virginia Merger

On July 1, BB&T consummated its merger with First Virginia, headquartered in Falls Church, Va. The acquisition substantially increased BB&T’s market share in Virginia, Maryland and Tennessee, and expanded BB&T’s presence in the fast-growing Washington, D.C. market. The combined company has approximately $91 billion in assets and is the 11^th largest financial holding company in the nation.

“We are very pleased to complete this important acquisition,” said Allison. “First Virginia and BB&T have been guided by similar values and operating philosophies and have both enjoyed long track records of financial strength and solid performance. We believe that the acquisition will add significant value to our franchise over the long term.”

On July 1, BB&T acquired Jackson, Miss.-based Southern Cross Underwriters (“SCU”) and Kingsport Development Company (“KDC”) Insurance Inc. of Kingsport, Tenn. SCU’s specialty lines include commercial transportation, property and casualty liability, marine liability and liability coverage for directors and officers. KDC is a full-service independent insurance agency specializing in coverage for hotels, restaurants and municipalities.

At June 30, BB&T had $80.4 billion in assets and operated more than 1,100 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 July 11 was $34.94 per share.

For additional information about BB&T’s financial performance, company news, products and services, please visit our Web site at www.BBandT.com.

Earnings Webcast

To hear a live webcast of BB&T’s second quarter 2003 earnings conference call at 10 a.m. (EDT) today, please visit our Web site at www.BBandT.com. Replays of the conference call will be available through our Web site until 5 p.m. (EDT) July 25.

_________________

This press release contains financial information determined by methods other than in accordance with Generally Accepted Accounting Principles (“GAAP”). BB&T’s management uses these non-GAAP measures in their analysis of the Company’s performance. These 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 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 essential to a proper understanding of the operating results of BB&T’s core businesses. These disclosures should not be viewed as a substitute for 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 forward-looking statements as defined by federal securities laws. These statements may address issues that involve significant risks, uncertainties, estimates and assumptions made by management. Actual results could 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 could 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	Tom A. Nicholson
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 thousands, except per share data)	6/30/03			6/30/02			$			%

OPERATING EARNINGS STATEMENTS (1)
Interest income - taxable equivalent	$	1,073,710		$	1,159,410		$	(85,700	)		(7.4	)%
Interest expense		342,111			432,169			(90,058	)		(20.8	)
Net interest income - taxable equivalent		731,599			727,241			4,358			.6
Less: Taxable equivalent adjustment		28,179			37,210			(9,031	)		(24.3	)
Net interest income		703,420			690,031			13,389			1.9
Provision for loan & lease losses		61,500			58,500			3,000			5.1
Net interest income after provision for loan & lease losses		641,920			631,531			10,389			1.6
Noninterest income (2)		461,096			384,864			76,232			19.8
Noninterest expense (3)		619,079			556,030			63,049			11.3
Operating earnings before income taxes		483,937			460,365			23,572			5.1
Provision for income taxes		147,009			131,363			15,646			11.9
Operating earnings (1)	$	336,928		$	329,002		$	7,926			2.4	%

PER SHARE DATA BASED ON OPERATING EARNINGS
Basic earnings	$	.71		$	.69		$	.02			2.9	%
Diluted earnings		.71			.68			.03			4.4
Weighted average shares - Basic		471,713,450			478,121,878
Diluted		475,293,564			484,009,961
Dividends paid on common shares	$	.29		$	.26		$	.03			11.5	%

PERFORMANCE RATIOS BASED ON OPERATING EARNINGS
Return on average assets		1.67	%		1.75	%
Return on average equity		17.45			18.44
Net yield on earning assets (taxable equivalent)		4.06			4.27
Efficiency ratio (taxable equivalent) (4)		51.6			50.1

CASH BASIS PERFORMANCE
BASED ON OPERATING EARNINGS (1)(5)
Cash basis operating earnings	$	341,080		$	332,899		$	8,181			2.5	%
Diluted earnings per share		.72			.69			.03			4.3
Return on average tangible assets		1.73	%		1.81	%
Return on average tangible equity		23.38			23.94
Efficiency ratio (taxable equivalent) (4)		51.0			49.5

	For the Three Months Ended						Increase (Decrease)

(Dollars in thousands, except per share data)	6/30/03			6/30/02			$			%

INCOME STATEMENTS
Interest income - taxable equivalent	$	1,073,710		$	1,159,410		$	(85,700	)		(7.4	)%
Interest expense		342,111			432,169			(90,058	)		(20.8	)
Net interest income - taxable equivalent		731,599			727,241			4,358			.6
Less: Taxable equivalent adjustment		28,179			37,210			(9,031	)		(24.3	)
Net interest income		703,420			690,031			13,389			1.9
Provision for loan & lease losses		61,500			58,500			3,000			5.1
Net interest income after provision for loan & lease losses		641,920			631,531			10,389			1.6
Noninterest income		461,096			384,864			76,232			19.8
Noninterest expense		650,920			557,584			93,336			16.7
Income before income taxes		452,096			458,811			(6,715	)		(1.5	)
Provision for income taxes		135,859			130,859			5,000			3.8
Net income	$	316,237		$	327,952		$	(11,715	)		(3.6	)%

PER SHARE DATA
Basic earnings	$	.67		$	.69		$	(.02	)		(2.9	)%
Diluted earnings		.67			.68			(.01	)		(1.5	)
Weighted average shares - Basic		471,713,450			478,121,878
Diluted		475,293,564			484,009,961

PERFORMANCE RATIOS BASED ON NET INCOME
Return on average assets		1.57	%		1.74	%
Return on average equity		16.38			18.38



NOTES:		Applicable ratios are annualized.
	(1)	Operating earnings statements exclude the effect of merger-related and other nonrecurring charges. These charges totaled $20.7 million and $1.1 million, net of tax, in the second quarters of 2003 and 2002, respectively. See Reconciliation Table.
	(2)	Excluding purchase accounting transactions, noninterest income would have increased $59.5 million, or 14.8% for the quarter, compared to the same period in 2002.
	(3)	Excluding purchase accounting transactions, noninterest expense would have increased $42.2 million, or 7.3% for the quarter, compared to the same period in 2002.
	(4)	Excludes securities gains (losses), foreclosed property expense, provisions for the impairment of mortgage servicing rights and merger-related and other nonrecurring charges.
	(5)	Cash basis performance excludes the effect on earnings of amortization expense applicable to intangible assets and the unamortized balances of intangibles from assets and equity. See Reconciliation Table.
	NM	- not meaningful.


QUARTERLY PERFORMANCE SUMMARY	Tom A. Nicholson
BB&T Corporation (NYSE:BBT)	Senior Vice President	(336) 733-3058
Page 6	Investor Relations	FAX (336) 733-3132

	For the Six Months Ended						Increase (Decrease)

(Dollars in thousands, except per share data)	6/30/03			6/30/02			$			%

OPERATING EARNINGS STATEMENTS (1)
Interest income - taxable equivalent	$	2,158,588		$	2,279,027		$	(120,439	)		(5.3	)%
Interest expense		704,813			866,530			(161,717	)		(18.7	)
Net interest income - taxable equivalent		1,453,775			1,412,497			41,278			2.9
Less: Taxable equivalent adjustment		58,177			75,200			(17,023	)		(22.6	)
Net interest income		1,395,598			1,337,297			58,301			4.4
Provision for loan & lease losses		124,500			115,000			9,500			8.3
Net interest income after provision for loan & lease losses		1,271,098			1,222,297			48,801			4.0
Noninterest income (2)		906,017			742,415			163,602			22.0
Noninterest expense (3)		1,218,438			1,072,546			145,892			13.6
Operating earnings before income taxes		958,677			892,166			66,511			7.5
Provision for income taxes		290,950			253,917			37,033			14.6
Operating earnings (1)	$	667,727		$	638,249		$	29,478			4.6	%

PER SHARE DATA BASED ON OPERATING EARNINGS
Basic earnings	$	1.42		$	1.36		$	.06			4.4	%
Diluted earnings		1.41			1.34			.07			5.2
Weighted average shares - Basic		471,124,675			470,554,054
Diluted		474,823,495			476,349,694
Dividends paid on common shares	$	.58		$	.52		$	.06			11.5	%

PERFORMANCE RATIOS BASED ON OPERATING EARNINGS
Return on average assets		1.68	%		1.75	%
Return on average equity		17.69			18.89
Net yield on earning assets (taxable equivalent)		4.09			4.26
Noninterest income as a percentage of
total income (taxable equivalent) (4)		38.5			34.2
Efficiency ratio (taxable equivalent) (4)		51.3			49.9

CASH BASIS PERFORMANCE
BASED ON OPERATING EARNINGS (1)(5)
Cash basis operating earnings	$	675,999		$	644,850		$	31,149			4.8	%
Diluted earnings per share		1.42			1.35			.07			5.2
Return on average tangible assets		1.74	%		1.80	%
Return on average tangible equity		23.81			23.70
Efficiency ratio (taxable equivalent) (4)		50.7			49.4

	For the Six Months Ended						Increase (Decrease)

(Dollars in thousands, except per share data)	6/30/03			6/30/02			$			%

INCOME STATEMENTS
Interest income - taxable equivalent	$	2,158,588		$	2,279,027		$	(120,439	)		(5.3	)%
Interest expense		704,813			866,530			(161,717	)		(18.7	)
Net interest income - taxable equivalent		1,453,775			1,412,497			41,278			2.9
Less: Taxable equivalent adjustment		58,177			75,200			(17,023	)		(22.6	)
Net interest income		1,395,598			1,337,297			58,301			4.4
Provision for loan & lease losses		124,500			115,000			9,500			8.3
Net interest income after provision for loan & lease losses		1,271,098			1,222,297			48,801			4.0
Noninterest income		906,017			742,415			163,602			22.0
Noninterest expense		1,255,008			1,088,719			166,289			15.3
Income before income taxes and cumulative effect of change in accounting principle		922,107			875,993			46,114			5.3
Provision for income taxes		278,122			248,176			29,946			12.1
Income before cumulative effect of change in accounting principle		643,985			627,817			16,168			2.6
Cumulative effect of change in accounting principle		--			9,780			(9,780	)		NM
Net income	$	643,985		$	637,597		$	6,388			1.0	%

PER SHARE DATA
Basic earnings
Income before cumulative effect of change in accounting principle	$	1.37		$	1.33		$	.04			3.0	%
Cumulative effect of change in accounting principle		--			.02			(.02	)		NM
Net income		1.37			1.35			.02			1.5
Diluted earnings
Income before cumulative effect of change in accounting principle		1.36			1.32			.04			3.0
Cumulative effect of change in accounting principle		--			.02			(.02	)		NM
Net income	$	1.36		$	1.34		$	.02			1.5	%

Weighted average shares - Basic		471,124,675			470,554,054
Diluted		474,823,495			476,349,694

PERFORMANCE RATIOS BASED ON NET INCOME
Return on average assets		1.62	%		1.75	%
Return on average equity		17.06			18.87



NOTES:		Applicable ratios are annualized.
	(1)	Operating earnings statements exclude the effect of merger-related and other nonrecurring charges and the cumulative effect of a change in accounting principle, which resulted in the recognition of income totaling $9.8 million in the first quarter of 2002. Merger-related and other nonrecurring charges, net of tax, totaled $23.7 million and $10.4 million in the first six months of 2003 and 2002, respectively. See Reconciliation Table.
	(2)	Excluding purchase accounting transactions, noninterest income would have increased $115.8 million, or 14.6% for the six months ended June 30, 2003, compared to 2002.
	(3)	Excluding purchase accounting transactions, noninterest expense would have increased $72.5 million, or 6.3% for the six months ended June 30, 2003, compared to 2002.
	(4)	Excludes securities gains (losses), foreclosed property expense, provisions for the impairment of mortgage servicing rights and merger-related and other nonrecurring charges.
	(5)	Cash basis performance excludes the effect on earnings of amortization expense applicable to intangible assets and the unamortized balances of intangibles from assets and equity. See Reconciliation Table.
	NM	- not meaningful.


QUARTERLY PERFORMANCE SUMMARY	Tom A. Nicholson
BB&T Corporation (NYSE:BBT)	Senior Vice President	(336) 733-3058
Page 7	Investor Relations	FAX (336) 733-3132

	As of / For the Six Months Ended				Increase (Decrease)

(Dollars in thousands)	6/30/03		6/30/02		$			%

SELECTED BALANCE SHEET DATA
End of period balances
Securities available for sale	$	16,030,474	$	18,076,387	$	(2,045,913	)		(11.3	)%
Securities held to maturity		55,099		47,366		7,733			16.3
Trading securities		180,711		132,305		48,406			36.6
Total securities		16,266,284		18,256,058		(1,989,774	)		(10.9	)
Commercial loans & leases		29,418,569		28,433,219		985,350			3.5
Consumer loans		13,097,987		12,305,600		792,387			6.4
Revolving credit loans		1,059,313		985,487		73,826			7.5
Mortgage loans		11,368,328		8,806,304		2,562,024			29.1
Total loans & leases		54,944,197		50,530,610		4,413,587			8.7
Allowance for loan & lease losses		719,576		706,446		13,130			1.9
Other earning assets		533,478		330,555		202,923			61.4
Total earning assets		71,351,630		68,638,800		2,712,830			4.0
Total assets		80,444,806		76,333,441		4,111,365			5.4
Noninterest-bearing deposits		9,238,605		7,625,530		1,613,075			21.2
Savings & interest checking		2,946,606		3,290,255		(343,649	)		(10.4	)
Money rate savings		16,608,916		14,632,630		1,976,286			13.5
CDs and other time deposits		23,561,639		25,360,774		(1,799,135	)		(7.1	)
Total deposits		52,355,766		50,909,189		1,446,577			2.8
Short-term borrowed funds		4,627,801		4,930,434		(302,633	)		(6.1	)
Long-term debt		12,831,350		10,979,492		1,851,858			16.9
Total interest-bearing liabilities		60,576,312		59,193,585		1,382,727			2.3
Total shareholders' equity	$	7,703,424	$	7,128,356	$	575,068			8.1	%

Average balances
Securities, at amortized cost	$	16,933,397	$	17,040,636	$	(107,239	)		(.6	)%
Commercial loans & leases		29,216,469		27,343,876		1,872,593			6.8
Consumer loans		12,885,850		11,780,775		1,105,075			9.4
Revolving credit loans		1,041,279		956,302		84,977			8.9
Mortgage loans		10,903,062		8,975,341		1,927,721			21.5
Total loans & leases		54,046,660		49,056,294		4,990,366			10.2
Allowance for loan & lease losses		724,919		683,370		41,549			6.1
Other earning assets		483,618		404,904		78,714			19.4
Total earning assets		71,463,675		66,501,834		4,961,841			7.5
Total assets		80,088,767		73,521,183		6,567,584			8.9
Noninterest-bearing deposits		8,008,885		6,830,019		1,178,866			17.3
Savings & interest checking		3,339,126		3,385,771		(46,645	)		(1.4	)
Money rate savings		16,317,831		14,171,994		2,145,837			15.1
CDs and other time deposits		24,574,832		23,146,790		1,428,042			6.2
Total deposits		52,240,674		47,534,574		4,706,100			9.9
Short-term borrowed funds		4,384,035		5,858,939		(1,474,904	)		(25.2	)
Long-term debt		13,376,650		11,429,177		1,947,473			17.0
Total interest-bearing liabilities		61,992,474		57,992,671		3,999,803			6.9
Total shareholders' equity	$	7,612,013	$	6,814,741	$	797,272			11.7

		As of / For the Quarter Ended

(Dollars in thousands)		6/30/03		3/31/03		12/31/02		9/30/02		6/30/02

MISCELLANEOUS INFORMATION (1)

Unrealized appreciation (depreciation) on
securities available for sale, net of tax		$	240,474	$	280,309	$	329,149	$	333,476	$	291,101
Derivatives (notional value)			12,377,125		13,195,050		11,697,739		9,476,733		5,787,952
Fair value of derivatives portfolio			274,749		179,474		149,498		79,380		40,848
Common stock prices (daily close):	High		35.90		38.63		38.23		38.40		39.23
	Low		31.75		31.15		31.26		32.18		36.60
	End of period		34.30		31.43		36.99		35.04		38.60
Weighted average shares -	Basic		471,713,450		470,529,359		474,905,234		477,112,074		478,121,878
	Diluted		475,293,564		474,348,203		480,065,651		482,325,535		484,009,961
End of period shares outstanding			472,118,220		471,218,625		470,452,260		480,439,801		475,535,863
End of period banking offices			1,109		1,118		1,122		1,123		1,122
ATMs			1,675		1,694		1,698		1,701		1,723




NOTES:		All items referring to loans and leases include loans held for sale and are net of unearned income.
	(1)	BB&T had approximately 22,800 full-time equivalent employees at June 30, 2003.


QUARTERLY PERFORMANCE SUMMARY	Tom A. Nicholson
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 thousands, except per share data)	6/30/03			3/31/03			12/31/02			9/30/02			6/30/02

OPERATING EARNINGS STATEMENTS (1)
Interest income - taxable equivalent
Interest & fees on loans & leases	$	853,094		$	858,137		$	899,264		$	897,969		$	881,019
Interest & dividends on securities		218,872			224,940			236,880			267,667			276,837
Interest on short-term investments		1,744			1,801			1,879			1,922			1,554
Total interest income - taxable equivalent		1,073,710			1,084,878			1,138,023			1,167,558			1,159,410
Interest expense
Interest on deposits		192,505			207,624			231,021			254,248			258,187
Interest on short-term borrowed funds		15,494			13,664			18,770			24,140			26,464
Interest on long-term debt		134,112			141,414			145,360			146,515			147,518
Total interest expense		342,111			362,702			395,151			424,903			432,169
Net interest income - taxable equivalent		731,599			722,176			742,872			742,655			727,241
Less: Taxable equivalent adjustment		28,179			29,998			34,801			40,563			37,210
Net interest income		703,420			692,178			708,071			702,092			690,031
Provision for loan & lease losses		61,500			63,000			84,700			64,000			58,500
Net interest income after provision for
loan & lease losses		641,920			629,178			623,371			638,092			631,531
Noninterest income
Service charges on deposits		96,645			96,778			105,686			104,754			101,874
Mortgage banking income (loss)		(32,711	)		59,972			103,010			(88,343	)		24,695
Investment banking & brokerage fees & commissions		60,094			51,909			53,742			47,912			56,039
Trust revenue		26,248			26,009			19,750			27,388			24,197
Insurance commissions		101,500			88,658			87,618			80,401			78,049
Other nondeposit fees & commissions		60,770			56,272			58,135			54,145			52,100
Securities gains (losses), net		109,500			34,234			1,508			135,519			19,666
Other noninterest income		39,050			31,089			27,172			31,583			28,244
Total noninterest income		461,096			444,921			456,621			393,359			384,864
Noninterest expense
Personnel expense		367,497			352,701			350,213			323,119			319,622
Occupancy & equipment expense		85,625			87,727			87,383			85,550			84,688
Foreclosed property expense		3,541			4,069			3,226			2,874			880
Amortization of intangibles		6,806			6,754			3,203			7,073			6,258
Other noninterest expense		155,610			148,108			165,128			145,863			144,582
Total noninterest expense		619,079			599,359			609,153			564,479			556,030
Operating earnings before income taxes		483,937			474,740			470,839			466,972			460,365
Provision for income taxes		147,009			143,941			127,122			131,003			131,363
Operating earnings (1)	$	336,928		$	330,799		$	343,717		$	335,969		$	329,002

PER SHARE DATA BASED ON
OPERATING EARNINGS
Basic earnings	$	.71		$	.70		$	.72		$	.70		$	.69
Diluted earnings		.71			.70			.72			.70			.68
Dividends paid on common shares		.29			.29			.29			.29			.26
Book value per share	$	16.32		$	16.05		$	15.70		$	15.68		$	14.99

PERFORMANCE RATIOS BASED ON
OPERATING EARNINGS
Return on average assets		1.67	%		1.69	%		1.74	%		1.72	%		1.75	%
Return on average equity		17.45			17.94			18.32			18.09			18.44
Net yield on earning assets (taxable equivalent)		4.06			4.13			4.22			4.25			4.27
Efficiency ratio (taxable equivalent) (2)		51.6			50.9			50.6			49.6			50.1
Noninterest income as a percentage of
total income (taxable equivalent) (2)		38.6			38.3			38.0			34.4			34.4
Equity as a percentage of total assets
end of period		9.6			9.5			9.2			9.6			9.3
Average earning assets as a percentage of
average total assets		89.3			89.2			89.5			89.8			90.3
Average loans & leases as a percentage of
average deposits		102.9			104.1			105.5			102.1			101.9

CASH BASIS PERFORMANCE BASED ON
OPERATING EARNINGS (1) (3)
Cash basis operating earnings	$	341,080		$	334,919		$	345,564		$	340,261		$	332,899
Diluted earnings per share		.72			.71			.72			.71			.69
Return on average tangible assets		1.73	%		1.76	%		1.79	%		1.78	%		1.81	%
Return on average tangible equity		23.38			24.26			24.58			23.72			23.94
Efficiency ratio (taxable equivalent) (2)		51.0			50.3			50.3			49.0			49.5




NOTES:		Applicable ratios are annualized.
	(1)	Operating income statements exclude the effect of merger-related and other nonrecurring charges. These charges totaled $20.7 million, $3.1 million, $6.5 million, $7.8 million and $1.1 million, net of tax, for the quarters ended June 30, 2003, March 31, 2003, December 31, 2002, September 30, 2002 and June 30, 2002, respectively. See Reconciliation Table.
	(2)	Excludes securities gains (losses), foreclosed property expense, provisions for the impairment of mortgage servicing rights and merger-related and other nonrecurring charges.
	(3)	Cash basis performance excludes the effect on earnings of amortization expense applicable to intangible assets and the unamortized balances of intangibles from assets and equity. See Reconciliation Table.


QUARTERLY PERFORMANCE SUMMARY	Tom A. Nicholson
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 thousands)	6/30/03			3/31/03			12/31/02			9/30/02			6/30/02

SELECTED BALANCE SHEET DATA
End of period balances
Securities available for sale	$	16,030,474		$	16,721,662		$	17,599,477		$	16,416,181		$	18,076,387
Securities held to maturity		55,099			57,489			55,523			51,401			47,366
Trading securities		180,711			172,789			148,488			121,525			132,305
Total securities		16,266,284			16,951,940			17,803,488			16,589,107			18,256,058
Commercial loans & leases		29,418,569			29,331,744			29,054,232			28,955,027			28,433,219
Consumer loans		13,097,987			12,865,697			12,811,120			12,708,072			12,305,600
Revolving credit loans		1,059,313			1,037,135			1,050,738			1,010,860			985,487
Mortgage loans		11,368,328			10,542,311			10,601,923			10,390,742			8,806,304
Total loans & leases		54,944,197			53,776,887			53,518,013			53,064,701			50,530,610
Allowance for loan & lease losses		719,576			716,276			723,685			723,688			706,446
Other earning assets		533,478			435,066			442,570			518,476			330,555
Total earning assets		71,351,630			70,709,082			71,227,929			69,629,079			68,638,800
Total assets		80,444,806			79,647,890			80,216,816			78,186,831			76,333,441
Noninterest-bearing deposits		9,238,605			8,614,360			7,864,338			7,967,366			7,625,530
Savings & interest checking		2,946,606			3,076,491			3,071,551			2,970,575			3,290,255
Money rate savings		16,608,916			16,388,917			17,188,942			15,636,969			14,632,630
CDs and other time deposits		23,561,639			23,161,261			23,155,185			23,236,561			25,360,774
Total deposits		52,355,766			51,241,029			51,280,016			49,811,471			50,909,189
Short-term borrowed funds		4,627,801			4,229,003			5,396,959			4,797,992			4,930,434
Long-term debt		12,831,350			13,565,934			13,587,841			13,384,826			10,979,492
Total interest-bearing liabilities		60,576,312			60,421,606			62,400,478			60,026,923			59,193,585
Total shareholders' equity		7,703,424			7,561,078			7,387,914			7,534,817			7,128,356
Goodwill		1,714,938			1,737,617			1,723,379			1,698,563			1,457,257
Core deposit & other intangibles		152,054			146,145			148,824			138,616			119,533
Total intangibles		1,866,992			1,883,762			1,872,203			1,837,179			1,576,790
Mortgage servicing rights	$	220,300		$	313,805		$	318,839		$	280,821		$	395,654

Average balances
Securities, at amortized cost	$	17,432,923		$	16,428,321		$	16,103,478		$	17,574,918		$	17,593,605
Commercial loans & leases		29,331,495			29,100,165			28,916,175			28,550,713			28,278,986
Consumer loans		12,972,732			12,798,003			12,771,340			12,557,457			12,210,161
Revolving credit loans		1,044,083			1,038,444			1,020,357			997,863			968,088
Mortgage loans		11,032,165			10,772,525			10,898,394			9,522,243			8,808,602
Total loans & leases		54,380,475			53,709,137			53,606,266			51,628,276			50,265,837
Allowance for loan & lease losses		720,432			729,456			731,126			716,160			708,395
Other earning assets		514,879			452,010			488,991			456,474			354,745
Total earning assets		72,328,277			70,589,468			70,198,735			69,659,668			68,214,187
Total assets		81,012,962			79,154,304			78,428,911			77,571,231			75,538,200
Noninterest-bearing deposits		8,326,827			7,687,410			7,753,037			7,383,310			7,157,722
Savings & interest checking		3,303,608			3,375,038			3,331,195			3,350,476			3,568,247
Money rate savings		16,406,576			16,228,100			15,821,819			15,110,502			14,617,809
CDs and other time deposits		24,824,328			24,322,564			23,892,511			24,708,799			24,007,125

Total deposits		52,861,339			51,613,112			50,798,562			50,553,087			49,350,903
Short-term borrowed funds		4,744,761			4,019,301			4,626,091			5,245,126			5,788,023
Long-term debt		13,173,214			13,582,346			13,344,191			12,313,297			11,287,626
Total interest-bearing liabilities		62,452,487			61,527,349			61,015,807			60,728,200			59,268,830
Total shareholders' equity	$	7,745,395		$	7,477,149		$	7,444,431		$	7,370,304		$	7,156,600

RISK-BASED CAPITAL (1)
Risk-based capital:
Tier 1	$	5,684,767		$	5,497,767		$	5,290,310		$	5,523,128		$	5,347,662
Total		8,022,774			7,946,913			7,741,048			7,714,898			7,021,213
Risk-weighted assets		59,016,968			57,651,703			57,701,308			56,973,337			54,996,625
Average quarterly tangible assets		78,634,589			76,718,630			76,209,580			75,364,440			73,627,410
Risk-based capital ratios:
Tier 1		9.63	%		9.54	%		9.17	%		9.69	%		9.72	%
Total		13.59			13.78			13.42			13.54			12.77
Leverage capital ratio		7.23			7.17			6.94			7.33			7.26




NOTES:		All items referring to loans & leases include loans held for sale & are net of unearned income.
	(1)	Current quarter information is preliminary.


QUARTERLY PERFORMANCE SUMMARY	Tom A. Nicholson
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 thousands)	6/30/03			3/31/03			12/31/02			9/30/02			6/30/02

ASSET QUALITY ANALYSIS
Allowance For Loan & Lease Losses
Beginning balance	$	716,276		$	723,685		$	723,688		$	706,446		$	705,905
Allowance for acquired loans, net		--			1,267			(16,075	)		16,861			136
Reclassification of allowance related
to unfunded commitments		--			(8,986	)		--			--			--
Provision for loan & lease losses		61,500			63,000			84,700			64,000			58,500
Charge-offs		(76,815	)		(76,867	)		(83,067	)		(77,732	)		(69,144	)
Recoveries		18,615			14,177			14,439			14,113			11,049

Net charge-offs		(58,200	)		(62,690	)		(68,628	)		(63,619	)		(58,095	)

Ending balance	$	719,576		$	716,276		$	723,685		$	723,688		$	706,446



Nonperforming Assets
Nonaccrual loans & leases	$	363,524		$	392,701		$	374,842		$	358,823		$	335,287
Foreclosed real estate		64,347			60,110			55,448			46,378			49,009
Other foreclosed property		17,575			21,714			21,199			17,712			15,803
Restructured loans		145			175			175			2,358			--

Nonperforming assets	$	445,591		$	474,700		$	451,664		$	425,271		$	400,099



Loans 90 days or more past due
& still accruing	$	97,479		$	93,609		$	115,047		$	100,147		$	98,143
Loans 90 days or more past due & still accruing
as a percentage of total loans and leases		.18	%		.17	%		.21	%		.19	%		.19	%



Asset Quality Ratios
Nonaccrual and restructured loans & leases
as a percentage of total loans & leases		.66	%		.73	%		.70	%		.68	%		.66	%
Nonperforming assets as a percentage of:
Total assets		.55			.60			.56			.54			.52
Loans & leases plus
foreclosed property		.81			.88			.84			.80			.79
Net charge-offs as a percentage of
average loans & leases		.43			.47			.51			.49			.46
Net charge-offs excluding specialized
lending as a percentage of average
loans & leases (1)		.31			.35			.40			.39			.37
Allowance for loan & lease losses as
a percentage of loans & leases		1.31			1.33			1.35			1.36			1.40
Allowance for loan & lease losses as
a percentage of loans & leases
held for investment		1.39			1.39			1.42			1.42			1.43
Ratio of allowance for loan & lease losses to:
Net charge-offs		3.08	x		2.82	x		2.66	x		2.87	x		3.03	x
Nonaccrual and restructured loans & leases		1.98			1.82			1.93			2.00			2.11

	As of / For the Six Months Ended						Increase (Decrease)

	6/30/03			6/30/02			$			%

Allowance For Loan & Lease Losses
Beginning balance	$	723,685		$	644,418		$	79,267			12.3	%
Allowance for acquired loans, net		1,267			61,313			(60,046	)		NM
Reclassification of allowance related
to unfunded commitments		(8,986	)		--			(8,986	)		NM
Provision for loan & lease losses		124,500			115,000			9,500			8.3
Charge-offs		(153,682	)		(136,350	)		(17,332	)		(12.7	)
Recoveries		32,792			22,065			10,727			48.6

Net charge-offs		(120,890	)		(114,285	)		(6,605	)		(5.8	)

Ending balance	$	719,576		$	706,446		$	13,130			1.9	%



Asset Quality Ratios
Net charge-offs as a percentage of
average loans & leases		.45	%		.47	%
Net charge-offs excluding specialized
lending as a percentage of average
loans & leases (1)		.33			.37
Ratio of allowance for loan & lease losses to
net charge-offs		2.95	x		3.07	x

	For the Quarter Ended

	6/30/03			3/31/03			12/31/02			9/30/02			6/30/02

ANNUALIZED INTEREST YIELDS / RATES (2)
Interest income:
Securities & other		4.92	%		5.38	%		5.76	%		5.98	%		6.20	%
Loans & leases		6.29			6.46			6.67			6.91			7.03

Total earning assets		5.95			6.20			6.45			6.67			6.81

Interest expense:
Interest-bearing deposits		1.73			1.92			2.13			2.34			2.45
Short-term borrowed funds		1.29			1.36			1.61			1.83			1.83
Long-term debt		4.04			4.16			4.33			4.73			5.24

Total interest-bearing liabilities		2.19			2.38			2.57			2.78			2.92

Net yield on earning assets		4.06	%		4.13	%		4.22	%		4.25	%		4.27	%





NOTES:		All items referring to loans & leases include loans held for sale & 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)	Fully taxable equivalent yields. Securities yields calculated based on amortized cost.
	NM	- not meaningful.


QUARTERLY PERFORMANCE SUMMARY	Tom A. Nicholson
BB&T Corporation (NYSE:BBT)	Senior Vice President	(336) 733-3058
Page 11	Investor Relations	FAX (336) 733-3132

	For the Three Months Ended					Increase (Decrease)

(Dollars in thousands)	6/30/03			6/30/02		$			%

SELECTED BALANCES ADJUSTED FOR PURCHASE ACQUISITIONS (1)
Average Balances
Commercial loans & leases	$	29,331,495		$	28,597,159	$	734,336			2.6	%
Consumer loans		12,972,732			12,231,468		741,264			6.1
Revolving credit loans		1,044,083			968,160		75,923			7.8
Mortgage loans		11,032,165			10,025,524		1,006,641			10.0
Total loans & leases		54,380,475			51,822,311		2,558,164			4.9
Noninterest-bearing deposits		8,326,827			7,206,995		1,119,832			15.5
Interest-bearing transaction accounts		6,948,577			6,160,096		788,481			12.8
CDs and other time deposits		24,824,328			24,840,437		(16,109	)		(0.1	)
Other deposits		12,761,607			12,510,843		250,764			2.0
Total deposits	$	52,861,339		$	50,718,371	$	2,142,968			4.2	%

SELECTED INCOME STATEMENT ITEMS BASED ON
OPERATING EARNINGS ADJUSTED FOR PURCHASE ACQUISITIONS (1)
Net interest income - taxable equivalent	$	731,599		$	738,530	$	(6,931	)		(0.9	)%
Noninterest income
Service charges on deposits		96,645			101,962		(5,317	)		(5.2	)
Mortgage banking income (2)		(32,711	)		28,968		(61,679	)		NM
Investment banking & brokerage fees & commissions		60,094			56,051		4,043			7.2
Trust revenue		26,248			25,982		266			1.0
Insurance commissions		102,521			89,305		13,216			14.8
Other nondeposit fees & commissions		60,770			52,139		8,631			16.6
Securities gains (losses), net (2)		109,500			19,666		89,834			NM
Other income		39,181			28,719		10,462			36.4
Total noninterest income		462,248			402,792		59,456			14.8
Noninterest expense
Personnel expense		367,870			331,730		36,140			10.9
Occupancy & equipment expense		85,669			86,944		(1,275	)		(1.5	)
Other noninterest expense		166,744			159,397		7,347			4.6
Total noninterest expense	$	620,283		$	578,071	$	42,212			7.3	%

	For the Three Months Ended					Increase (Decrease)

(Dollars in thousands)	6/30/03			3/31/03		$			%

SELECTED BALANCES ADJUSTED FOR PURCHASE ACQUISITIONS (1)
Average Balances
Commercial loans & leases	$	29,331,495		$	29,181,352	$	150,143			2.1	%
Consumer loans		12,972,732			12,807,778		164,954			5.2
Revolving credit loans		1,044,083			1,038,489		5,594			2.2
Mortgage loans		11,032,165			10,889,877		142,288			5.2
Total loans & leases		54,380,475			53,917,496		462,979			3.4
Noninterest-bearing deposits		8,326,827			7,691,076		635,751			33.2
Interest-bearing transaction accounts		6,948,577			6,903,292		45,285			2.6
CDs and other time deposits		24,824,328			24,481,640		342,688			5.6
Other deposits		12,761,607			12,733,712		27,895			0.9
Total deposits	$	52,861,339		$	51,809,720	$	1,051,619			8.1	%

SELECTED INCOME STATEMENT ITEMS BASED ON OPERATING
EARNINGS ADJUSTED FOR PURCHASE ACQUISITIONS (1)
Net interest income - taxable equivalent	$	731,599		$	724,036	$	7,563			4.2	%
Noninterest income
Service charges on deposits		96,645			96,809		(164	)		(0.7	)
Mortgage banking income (2)		(32,711	)		60,099		(92,810	)		NM
Investment banking & brokerage fees & commissions		60,094			51,932		8,162			63.0
Trust revenue		26,248			26,009		239			3.7
Insurance commissions		102,521			91,677		10,844			47.4
Other nondeposit fees & commissions		60,770			56,293		4,477			31.9
Securities gains (losses), net (2)		109,500			34,234		75,266			NM
Other income		39,181			31,106		8,075			104.1
Total noninterest income		462,248			448,159		14,089			12.6
Noninterest expense
Personnel expense		367,870			354,584		13,286			15.0
Occupancy & equipment expense		85,669			88,085		(2,416	)		(11.0	)
Other noninterest expense		166,744			160,909		5,835			14.5
Total noninterest expense	$	620,283		$	603,578	$	16,705			11.1	%




NOTES:		Applicable growth rates are annualized.
	(1)	Amounts adjusted to exclude growth that resulted from the timing of acquisitions during 2003 and 2002.
	(2)	Mortgage banking income includes provisions for the impairment of mortgage servicing rights totaling $109.3 million, $36.9 million and $15.8 million for the three months ended June 30, 2003, March 31, 2003 and June 30, 2002, respectively. These provisions are substantially offset by securities gains.
	NM	- not meaningful.


QUARTERLY PERFORMANCE SUMMARY	Tom A. Nicholson
BB&T Corporation (NYSE:BBT)	Senior Vice President	(336) 733-3058
Page 12	Investor Relations	FAX (336) 733-3132

	For the Six Months Ended				Increase (Decrease)

(Dollars in thousands)	6/30/03		6/30/02		$			%

SELECTED BALANCES ADJUSTED FOR PURCHASE ACQUISITIONS (1)
Average Balances
Commercial loans & leases	$	29,256,839	$	28,520,846	$	735,993			2.6	%
Consumer loans		12,890,710		12,105,025		785,685			6.5
Revolving credit loans		1,041,301		965,438		75,863			7.9
Mortgage loans		10,961,414		10,393,484		567,930			5.5
Total loans & leases		54,150,264		51,984,793		2,165,471			4.2
Noninterest-bearing deposits		8,010,708		7,086,655		924,053			13.0
Interest-bearing transaction accounts		6,926,059		6,133,788		792,271			12.9
CDs and other time deposits		24,653,931		24,657,927		(3,996	)		--
Other deposits		12,747,737		12,433,675		314,062			2.5
Total deposits	$	52,338,435	$	50,312,045	$	2,026,390			4.0	%

SELECTED INCOME STATEMENT ITEMS BASED ON
OPERATING EARNINGS ADJUSTED FOR PURCHASE ACQUISITIONS (1)
Net interest income - taxable equivalent	$	1,455,635	$	1,472,721	$	(17,086	)		(1.2	)%
Noninterest income
Service charges on deposits		193,454		197,243		(3,789	)		(1.9	)
Mortgage banking income (2)		27,388		68,296		(40,908	)		(59.9	)
Investment banking & brokerage fees & commissions		112,026		109,227		2,799			2.6
Trust revenue		52,257		55,695		(3,438	)		(6.2	)
Insurance commissions		194,198		169,156		25,042			14.8
Other nondeposit fees & commissions		117,063		99,337		17,726			17.8
Securities gains (losses), net (2)		143,734		33,186		110,548			NM
Other income		70,287		62,426		7,861			12.6
Total noninterest income		910,407		794,566		115,841			14.6
Noninterest expense
Personnel expense		722,454		666,873		55,581			8.3
Occupancy & equipment expense		173,754		176,786		(3,032	)		(1.7	)
Other noninterest expense		327,653		307,693		19,960			6.5
Total noninterest expense	$	1,223,861	$	1,151,352	$	72,509			6.3	%

	For the Three Months Ended

(Dollars in thousands, except per share data)	6/30/03			3/31/03			12/31/02			9/30/02			6/30/02

RECONCILIATION TABLE
Net income	$	316,237		$	327,748		$	337,255		$	328,157		$	327,952
Merger-related charges, net of tax		6,998			3,051			6,462			7,812			1,050
Other, net of tax (5)		13,693			--			--			--			--
Operating earnings		336,928			330,799			343,717			335,969			329,002
Amortization of intangibles, net of tax		4,152			4,120			1,847			4,292			3,897
Cash basis operating earnings		341,080			334,919			345,564			340,261			332,899

Return on average assets		1.57	%		1.68	%		1.71	%		1.68	%		1.74	%
Effect of merger-related charges, net of tax		.03			.01			.03			.04			.01
Effect of other, net of tax (5)		.07			--			--			--			--
Operating return on average assets		1.67			1.69			1.74			1.72			1.75
Effect of amortization of intangibles, net of tax (4)		.06			.07			.05			.06			.06
Cash basis operating return on average
tangible assets		1.73			1.76			1.79			1.78			1.81

Return on average equity		16.38	%		17.78	%		17.97	%		17.66	%		18.38	%
Effect of merger-related charges, net of tax		.36			.16			.35			.43			.06
Effect of other, net of tax (5)		.71			--			--			--			--
Operating return on average equity		17.45			17.94			18.32			18.09			18.44
Effect of amortization of intangibles, net of tax (4)		5.93			6.32			6.26			5.63			5.50
Cash basis operating return on average
tangible equity		23.38			24.26			24.58			23.72			23.94

Efficiency ratio (taxable equivalent) (3)		54.3	%		51.3	%		51.4	%		50.8	%		50.2	%
Effect of merger-related charges		(.9	)		(.4	)		(.8	)		(1.2	)		(.1	)
Effect of other (5)		(1.8	)		--			--			--			--
Operating efficiency ratio (3)		51.6			50.9			50.6			49.6			50.1
Effect of amortization of intangibles		(.6	)		(.6	)		(.3	)		(.6	)		(.6	)
Cash basis operating efficiency ratio (3)		51.0			50.3			50.3			49.0			49.5

Basic earnings per share	$	.67		$	.70		$	.71		$	.69		$	.69
Effect of merger-related charges, net of tax		.01			--			.01			.01			--
Effect of other, net of tax (5)		.03			--			--			--			--
Operating basic earnings per share		.71			.70			.72			.70			.69

Diluted earnings per share	$	.67		$	.69		$	.70		$	.68		$	.68
Effect of merger-related charges, net of tax		.01			.01			.02			.02			--
Effect of other, net of tax (5)		.03			--			--			--			--
Operating diluted earnings per share		.71			.70			.72			.70			.68
Effect of amortization of intangibles, net of tax		.01			.01			--			.01			.01
Cash basis operating diluted earnings per share		.72			.71			.72			.71			.69




NOTES:		Applicable ratios are annualized.
	(1)	Amounts adjusted to exclude growth that resulted from the timing of acquisitions during 2003 and 2002.
	(2)	Mortgage banking income includes provisions for the impairment of mortgage servicing rights totaling $146.2 million and $25.5 million for the six months ended June 30, 2003 and 2002, respectively. These provisions are substantially offset by securities gains.
	(3)	Excludes securities gains (losses), foreclosed property expense, and provisions for the impairment of mortgage servicing rights. Operating and cash basis ratios also exclude merger-related and other nonrecurring charges.
	(4)	Reflects the effect of excluding intangible assets from average assets and average equity to calculate cash basis ratios.
	(5)	Reflects nonrecurring contributions made by an affiliated trust.
	NM	- not meaningful.


QUARTERLY PERFORMANCE SUMMARY	Tom A. Nicholson
BB&T Corporation (NYSE:BBT)	Senior Vice President	(336) 733-3058
Page 13	Investor Relations	FAX (336) 733-3132

	For the Six Months Ended

(Dollars in thousands, except per share data)	6/30/03			6/30/02

RECONCILIATION TABLE
Net income	$	643,985		$	637,597
Merger-related charges, net of tax		10,049			10,432
Other, net of tax (1)		13,693			(9,780	)
Operating earnings		667,727			638,249
Amortization of intangibles, net of tax		8,272			6,601
Cash basis operating earnings		675,999			644,850

Return on average assets		1.62	%		1.75	%
Effect of merger-related charges, net of tax		.03			.03
Effect of other, net of tax (1)		.03			(.03	)
Operating return on average assets		1.68			1.75
Effect of amortization of intangibles, net of tax (3)		.06			.05
Cash basis operating return on average tangible assets		1.74			1.80

Return on average equity		17.06	%		18.87	%
Effect of merger-related charges, net of tax		.27			.31
Effect of other, net of tax (1)		.36			(.29	)
Operating return on average equity		17.69			18.89
Effect of amortization of intangibles, net of tax (3)		6.12			4.81
Cash basis operating return on average tangible equity		23.81			23.70

Efficiency ratio (taxable equivalent) (2)		52.8	%		50.4	%
Effect of merger-related charges		(.7	)		(.7	)
Effect of other (1)		(.8	)		.2
Operating efficiency ratio (2)		51.3			49.9
Effect of amortization of intangibles		(.6	)		(.5	)
Cash basis operating efficiency ratio (2)		50.7			49.4

Fee income ratio (2)		38.5	%		34.5	%
Effect of other (1)		--			(.3	)
Operating fee income ratio (2)		38.5			34.2

Basic earnings per share	$	1.37		$	1.35
Effect of merger-related charges, net of tax		.02			.03
Effect of other, net of tax (1)		.03			(.02	)
Operating basic earnings per share		1.42			1.36

Diluted earnings per share	$	1.36		$	1.34
Effect of merger-related charges, net of tax		.02			.02
Effect of other, net of tax (1)		.03			(.02	)
Operating diluted earnings per share		1.41			1.34
Effect of amortization of intangibles, net of tax		.01			.01
Cash basis operating diluted earnings per share		1.42			1.35




NOTES:		Applicable ratios are annualized.
	(1)	Reflects nonrecurring contributions made by an affiliated trust in 2003 and the effect of a $9.8 million gain resulting from the cumulative effect of adopting a new accounting standard in 2002.
	(2)	Excludes securities gains (losses), foreclosed property expense, and provisions for the impairment of mortgage servicing rights. Operating and cash basis ratios also exclude merger-related and other nonrecurring charges.
	(3)	Reflects the effect of excluding intangible assets from average assets and average equity to calculate cash basis ratios.

S I G N A T U R E

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

BB&T CORPORATION
(Registrant)

By: /S/ SHERRY A. KELLETT

                                                                                Sherry A. Kellett
                                                                                Senior Executive Vice President and Controller
                                                                                (Principal Accounting Officer)

Date: July 15, 2003