Truist Financial (TFC) 8-K Second Quarter 2001 Earnings Press Release

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 12, 2001

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 14 pages.

ITEM 5.    OTHER EVENTS

     The purpose of this Current Report on Form 8-K is to file BB&T Corporation's Quarterly Performance Summary for the second quarter of 2001.

EXHIBIT INDEX

Exhibit 99.1 Quarterly Performance Summary issued July 12, 2001

July 12, 2001

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 reports 15.9% increase in 2nd quarter earnings

           WINSTON-SALEM, N.C. -- BB&T Corporation (NYSE:BBT) reported today second quarter 2001 earnings totaling $255.1 million, or $.60 per diluted share, excluding $24.3 million in after-tax nonrecurring items associated primarily with the second quarter merger with Century South Banks, Inc., and systems conversion costs related to other mergers. Net income, excluding nonrecurring items, increased 15.9% in the second quarter of 2001 compared to the prior year, while diluted earnings per share increased 15.4% compared to second quarter 2000 recurring results.

           BB&T's second quarter 2001 results, excluding nonrecurring items, generated an annualized return on average assets of 1.60% and an annualized return on average shareholders' equity of 19.52%, compared to prior year ratios of 1.54% and 19.85%, respectively.

           BB&T's "cash basis" operating results, which exclude the effects of intangible assets and the related amortization expenses, improved in the second quarter of 2001 compared to 2000. Recurring cash basis earnings totaled $272.3 million for the second quarter of 2001, or $.64 per diluted share, increases of 15.5% and 16.4%, respectively, compared to prior year results. Cash basis earnings for the current quarter generated an annualized return on average tangible assets of 1.73% and an annualized return on average tangible shareholders' equity of 24.60%.

           "We are very pleased to announce a successful second quarter," said Chairman and Chief Executive Officer John A. Allison. "We have achieved our earnings goals in a slowing national economy and a difficult interest rate environment. While our levels of nonperforming assets and credit losses have increased in response to the economic slowdown, our credit quality remains strong and very favorable in comparison to industry averages. We benefited from strong growth in noninterest income and careful control of expenses during the quarter."

           For the six months ended June 30, BB&T's net income was $502.4 million, or $1.18 per diluted share, excluding net after-tax nonrecurring charges totaling $49.3 million. These earnings reflect increases of 15.5% and 15.7%, respectively, compared to 2000. Recurring earnings for the first six months of 2001 yielded an annualized return on average assets of 1.60% and an annualized return on average equity of 19.62%, compared to prior year ratios of 1.54% and 19.85%, respectively.

           Including the nonrecurring items, net income for the second quarter of 2001 totaled $230.8 million, an increase of 32.6% compared to $174.1 million earned in the second quarter of 2000. On a diluted per share basis, net income for the quarter was $.54, an increase of 31.7% compared to $.41 earned in 2000. For the first six months of 2001, net income was $453.1 million, an increase of 22.8% compared to $369.0 million earned in 2000. On a diluted per share basis, net income was $1.06 for the six months ended June 30, 2001, an increase of 21.8% compared to $.87 earned in 2000.

BB&T Increases Cash Dividend

           On June 26, BB&T's board of directors approved a 13% increase in the quarterly cash dividend paid to shareholders. The increase, to $.26 per share, marks the 29th consecutive year that BB&T has increased the quarterly cash dividend.

Noninterest Income Increases a Healthy 26.2%

           BB&T's noninterest income, excluding nonrecurring items, totaled $320.1 million for the second quarter, reflecting an increase of 26.2% compared to the second quarter of 2000. This increase was driven by substantially higher mortgage banking income, growth in service charges on deposits, increased trust revenue and growth in insurance commissions from BB&T's agency network.

           The declining interest rate environment during the first six months of 2001 has benefited BB&T through increased mortgage originations and mortgage banking income, which totaled $49.8 million for the second quarter of 2001, an increase of 97.7% compared to the same period last year. Service charges on deposits totaled $83.9 million for the quarter, an increase of 23.8% compared to the second quarter of 2000. Trust income totaled $23.0 million for the second quarter, up 17.1% compared to 2000, reflecting growth in BB&T's trust relationships. Agency insurance commissions totaled $42.8 million for the second quarter, an increase of 31.4% compared to the second quarter of 2000. This growth resulted from higher property and casualty, group health and surety insurance commissions, as well as the purchase of eight additional insurance agencies in the past year.

           Excluding purchase accounting transactions, noninterest income would have totaled $303.4 million in the second quarter, reflecting an increase of 19.6% compared to the same period in 2000.

Nonperforming Assets Increase - Overall Asset Quality Remains Strong

           Consistent with the slowing economy, BB&T's nonperforming asset levels and credit losses rose in the second quarter. Nonperforming assets as a percentage of total assets increased to .44% compared to .29% at June 30, 2000, while net charge-offs amounted to .35% of average loans and leases for the second quarter of 2001 compared to .25% in the second quarter last year. Over the long term, BB&T's net charge-offs have been substantially below industry averages, and current levels remain significantly better than the most recently published industry averages. Excluding losses at BB&T's specialized lending subsidiaries, net charge-offs for the second quarter were .29%.

Noninterest Expense Control Continues

           BB&T has consistently met or exceeded overall projected cost savings goals associated with the integration of mergers and acquisitions. This success in the execution of acquisitions, together with an on-going emphasis on controlling expenses, has produced improved efficiency ratios and low rates of growth in noninterest expenses. Recurring noninterest expense for the second quarter of 2001 was $473.5 million, an increase of 7.7% compared to the second quarter of 2000. Excluding the effects of purchase accounting, noninterest expense would have totaled $447.7 million for the second quarter, an increase of 1.8% compared to the second quarter of 2000. BB&T's efficiency ratio for the second quarter of 2001 was 51.4% compared to 53.6% for the same period in 2000. On a cash basis, the efficiency ratio was 49.5% for the second quarter, compared to a prior year ratio of 51.4%.

Loans Grow 12% Led by Commercial Loans

           BB&T continued to enjoy healthy loan growth in the second quarter, particularly in light of the slowing economy. Average loans and leases were $44.0 billion for the second quarter, reflecting an increase of 12.0% compared to the same period last year. By major category, commercial loans and leases increased $2.8 billion, or 13.5%; consumer loans increased $602.0 million, or 6.0%; mortgage loans increased $1.2 billion, or 15.1%; and revolving credit increased $145.1 million, or 20.4%. Excluding the effects of loans acquired through purchase acquisitions and the effects of loan securitization programs, average total loans and leases would have been $45.6 billion for the second quarter, an increase of $4.5 billion, or 11.0%, compared to the second quarter of 2000.

Net Interest Income Growth Slows as Margins Tighten

           BB&T's recurring net interest income on a fully taxable equivalent basis totaled $602.2 million for the second quarter, an increase of $37.6 million, or 6.7%, compared to the second quarter of 2000. The net interest margin was 4.11% for the second quarter, down from 4.21% in the comparable period last year, but essentially the same as the first quarter of this year. The tightening margin resulted because the rapidly changing interest rate environment affected interest-sensitive loans more quickly than less interest-sensitive sources of funds. The yield earned on average loans during the second quarter was 8.60%, down .73% compared to the second quarter last year, while the rate paid for interest-bearing deposits averaged 4.43% for the second quarter, down .22% compared to 2000.

BB&T Expands in Fast-Growing Markets

           On July 10, BB&T announced plans to acquire Community First Banking Company of Carrollton, Ga. ("CFBC"). CFBC has approximately $548.1 million in assets and operates nine banking offices in western Georgia. The acquisition expands BB&T's presence in the metropolitan Atlanta area and gives BB&T the seventh largest deposit market share in Georgia, a state BB&T entered only two years ago.

           On June 7, BB&T completed its acquisition of Century South Banks, Inc. of Alpharetta, Ga. This merger expanded BB&T's Georgia franchise in the vibrant metropolitan Atlanta market, as well as Savannah, Macon and north Georgia. Century South has approximately $1.6 billion in assets and operates 40 banking offices.

           On June 27, BB&T completed its acquisition of Virginia Capital Bancshares of Fredericksburg, Va. ("VCAP"). VCAP has approximately $532.7 million in assets and operates four banking offices. Through this purchase, BB&T attained the No. 1 deposit market share in the emerging high-tech center of Fredericksburg, along the I-95 corridor between Richmond and Washington, D.C.

           BB&T also has a pending merger with F&M National Corporation of Winchester, Va. ("F&M"). With approximately $4.0 billion in assets, F&M operates 163 banking offices, 13 mortgage banking offices, three trust offices, and six insurance offices. When this merger is complete, BB&T will hold the fourth largest deposit market share in Virginia and the No. 5 market share position in Washington, D.C.

           At June 30, BB&T had $64.7 billion in assets and 932 banking offices in the Carolinas, Virginia, West Virginia, Kentucky, Georgia, Maryland, Tennessee, Alabama 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 $35.30 per share.

           For additional information about BB&T's financial performance, products and services, please visit our web site at www.BBandT.com.

           To hear a live webcast of BB&T's second quarter earnings conference call at 11 a.m. 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) Friday, July 27, 2001.

#

      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.

      BB&T's news releases are available at no charge through PR Newswire's Company News On-Call facsimile service. For a menu of BB&T's news releases or to retrieve a specific release call 800-758-5804, extension 809325.

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)	6/30/01			6/30/00			$			%
INCOME STATEMENT EXCLUDING NONRECURRING ITEMS
Interest income - taxable equivalent	$	1,207,064		$	1,154,050		$	53,014			4.6	%
Interest expense		604,884			589,492			15,392			2.6
Net interest income - taxable equivalent		602,180			564,558			37,622			6.7
Less: Taxable equivalent adjustment		53,080			24,859			28,221			113.5
Net interest income		549,100			539,699			9,401			1.7
Provision for loan & lease losses		39,398			25,326			14,072			55.6
Net interest income after provision for loan & lease losses		509,702			514,373			(4,671)			(.9)
Noninterest income (3)		320,119			253,596			66,523			26.2
Noninterest expense (4)		473,501			439,696			33,805			7.7
Income before income taxes		356,320			328,273			28,047			8.5
Provision for income taxes		101,186			108,121			(6,935)			(6.4)
Income excluding nonrecurring items		255,134			220,152			34,982			15.9
Nonrecurring items, net of tax		24,329			46,056			(21,727	)		NM
Net income	$	230,805		$	174,096		$	56,709			32.6	%
PER SHARE DATA EXCLUDING NONRECURRING ITEMS
Basic earnings	$	.61		$	.52		$	.09			17.3	%
Diluted earnings		.60			.52			.08			15.4
Weighted average shares -       Basic		420,692,786			421,190,364
Diluted		426,623,357			426,399,394
Dividends paid on common shares	$	.23		$	.20		$	.03			15.0	%
PERFORMANCE RATIOS EXCLUDING NONRECURRING ITEMS
Return on average assets		1.60	%		1.54	%
Return on average equity		19.52			19.85
Net yield on earning assets (taxable equivalent)		4.11			4.21
Efficiency (taxable equivalent) (1)		51.4			53.6
CASH BASIS PERFORMANCE EXCLUDING NONRECURRING ITEMS (2)
Net Income	$	272,275		$	235,720		$	36,555			15.5	%
Diluted earnings per share		.64			.55			.09			16.4
Return on average tangible assets		1.73	%		1.67	%
Return on average tangible equity		24.60			25.20
Efficiency ratio (taxable equivalent) (1)		49.5			51.4

	For the Three Months Ended						Increase (Decrease)
(Dollars in thousands, except per share data)	6/30/01			6/30/00			$		%
Interest income - taxable equivalent	$	1,206,476		$	1,154,050		$	52,426		4.5	%
Interest expense		604,884			589,492			15,392		2.6
Net interest income - taxable equivalent		601,592			564,558			37,034		6.6
Less: Taxable equivalent adjustment		53,080			24,859			28,221		113.5
Net interest income		548,512			539,699			8,813		1.6
Provision for loan & lease losses		43,898			29,076			14,822		51.0
Net interest income after provision for loan & lease losses		504,614			510,623			(6,009)		(1.2)
Noninterest income		333,187			212,786			120,401		56.6
Noninterest expense		518,663			465,576			53,087		11.4
Income before income taxes		319,138			257,833			61,305		23.8
Provision for income taxes		88,333			83,737			4,596		5.5
Net income	$	230,805		$	174,096		$	56,709		32.6	%
PER SHARE DATA
Basic earnings	$	.55		$	.41		$	.14		34.1	%
Diluted earnings		.54			.41			.13		31.7
Weighted average shares -      Basic		420,692,786			421,190,364
Diluted		426,623,357			426,399,394
Dividends paid on common shares	$	.23		$	.20		$	.03		15.0	%
PERFORMANCE RATIOS
Return on average assets		1.45	%		1.22	%
Return on average equity		17.66			15.70
Net yield on earning assets (taxable equivalent)		4.10			4.21
Efficiency (taxable equivalent) (1)		51.4			53.6

NOTES:		Applicable ratios are annualized.
	(1)	Excludes securities gains (losses), foreclosed property expense and nonrecurring items for all periods
	(2)	Cash basis operating results exclude the effect on earnings of amortization expense applicable to intangible assets that do not qualify as regulatory capital. Cash basis performance ratios exclude the amortization of nonqualifying intangible assets from earnings and the unamortized balances of nonqualifying intangibles from assets and equity
	(3)	Excluding purchase accounting transactions, noninterest income would have increased $49.8 million, or 19.6%, for the quarter compared to the same period in 2000
	(4)	Excluding purchase accounting transactions, noninterest expense would have increased $8.0 million, or 1.8%, for the quarter compared to the same period in 2000
	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)	6/30/01			6/30/00			$			%
INCOME STATEMENT EXCLUDING NONRECURRING ITEMS
Interest income - taxable equivalent	$	2,451,987		$	2,256,968		$	195,019			8.6	%
Interest expense		1,259,535			1,134,620			124,915			11.0
Net interest income - taxable equivalent		1,192,452			1,122,348			70,104			6.2
Less: Taxable equivalent adjustment		101,683			49,309			52,374			106.2
Net interest income		1,090,769			1,073,039			17,730			1.7
Provision for loan & lease losses		71,574			51,276			20,298			39.6
Net interest income after provision for loan & lease losses		1,019,195			1,021,763			(2,568)			(.3)
Noninterest income		612,867			496,022			116,845			23.6
Noninterest expense		923,955			870,354			53,601			6.2
Income before income taxes		708,107			647,431			60,676			9.4
Provision for income taxes		205,705			212,632			(6,927)			(3.3)
Income excluding nonrecurring items		502,402			434,799			67,603			15.5
Nonrecurring items, net of tax		49,274			65,839			(16,565	)		NM
Net income	$	453,128		$	368,960		$	84,168			22.8	%
PER SHARE DATA EXCLUDING NONRECURRING ITEMS
Basic earnings	$	1.19		$	1.03		$	.16			15.5	%
Diluted earnings		1.18			1.02			.16			15.7
Weighted average shares -                Basic		421,294,032			420,911,258
Diluted		427,515,463			425,867,326
Dividends paid on common shares	$	.46		$	.40		$	.06			15.0	%
PERFORMANCE RATIOS EXCLUDING NONRECURRING ITEMS
Return on average assets		1.60	%		1.54	%
Return on average equity		19.62			19.85
Net yield on earning assets (taxable equivalent)		4.10			4.23
Noninterest income as a percentage of
total income (taxable equivalent) (1)		33.7			30.7
Efficiency (taxable equivalent) (1)		51.3			53.7
CASH BASIS PERFORMANCE EXCLUDING NONRECURRING ITEMS (2)
Net Income	$	536,183		$	465,469		$	70,714			15.2	%
Diluted earnings per share		1.25			1.09			.16			14.7
Return on average tangible assets		1.73	%		1.67	%
Return on average tangible equity		24.73			25.30
Efficiency ratio (taxable equivalent) (1)		49.3			51.7

	For the Six Months Ended						Increase (Decrease)
(Dollars in thousands, except per share data)	6/30/01			6/30/00			$		%
INCOME STATEMENT
Interest income - taxable equivalent	$	2,451,399		$	2,256,968		$	194,431		8.6	%
Interest expense		1,259,535			1,134,620			124,915		11.0
Net interest income - taxable equivalent		1,191,864			1,122,348			69,516		6.2
Less: Taxable equivalent adjustment		101,683			49,309			52,374		106.2
Net interest income		1,090,181			1,073,039			17,142		1.6
Provision for loan & lease losses		84,924			56,526			28,398		50.2
Net interest income after provision for loan & lease losses		1,005,257			1,016,513			(11,256)		(1.1)
Noninterest income		652,065			454,931			197,134		43.3
Noninterest expense		1,022,973			926,864			96,109		10.4
Income before income taxes		634,349			544,580			89,769		16.5
Provision for income taxes		181,221			175,620			5,601		3.2
Net income	$	453,128		$	368,960		$	84,168		22.8	%
PER SHARE DATA
Basic earnings	$	1.08		$	.88		$	.20		22.7	%
Diluted earnings		1.06			.87			.19		21.8
Weighted average shares -                Basic		421,294,032			420,911,258
Diluted		427,515,463			425,867,326
Dividends paid on common shares	$	.46		$	.40		$	.06		15.0	%
PERFORMANCE RATIOS
Return on average assets		1.44	%		1.31	%
Return on average equity		17.69			16.84
Net yield on earning assets (taxable equivalent)		4.10			4.23
Efficiency (taxable equivalent) (1)		51.3			53.7

NOTES:		Applicable ratios are annualized.
	(1)	Excludes securities gains (losses), foreclosed property expense and nonrecurring items for all periods.
	(2)	Cash basis operating results exclude the effect on earnings of amortization expense applicable to intangible assets that do not qualify as regulatory capital. Cash basis performance ratios exclude the amortization of nonqualifying intangible assets from earnings and the unamortized balances of nonqualifying intangibles from assets and equity.
	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

	For the Six Months Ended				Increase (Decrease)
(Dollars in thousands)	6/30/01		6/30/00		$		%
SELECTED BALANCE SHEET DATA
End of period balances
Securities available for sale	$	14,490,894	$	13,106,164	$	1,384,730		10.6
Securities held to maturity		38,249		388,692		(350,443)		(90.2)
Trading securities		120,381		127,344		(6,963)		(5.5)
Total securities		14,649,524		13,622,200		1,027,324		7.5
Commercial loans & leases		23,856,922		20,966,201		2,890,721		13.8
Consumer loans		10,772,437		10,312,950		459,487		4.5
Revolving credit loans		876,465		710,649		165,816		23.3
Mortgage loans		9,048,524		7,877,956		1,170,568		14.9
Total loans & leases		44,554,348		39,867,756		4,686,592		11.8
Allowance for loan & lease losses		588,926		515,806		73,120		14.2
Other earning assets		309,921		421,702		(111,781)		(26.5)
Total earning assets		59,115,932		54,415,119		4,700,813		8.6
Total assets		64,733,769		58,238,087		6,495,682		11.2
Noninterest-bearing deposits		5,643,208		5,490,948		152,260		2.8
Savings & interest checking		2,421,322		3,073,083		(651,761)		(21.2)
Money rate savings		12,349,867		10,125,733		2,224,134		22.0
CD's and other time deposits		20,970,361		20,156,448		813,913		4.0
Total deposits		41,384,758		38,846,212		2,538,546		6.5
Short-term borrowed funds		5,553,996		6,474,064		(920,068)		(14.2)
Long-term debt		10,864,249		7,628,326		3,235,923		42.4
Total interest-bearing liabilities		52,159,795		47,457,654		4,702,141		9.9
Total shareholders' equity	$	5,441,792	$	4,513,383	$	928,409		20.6
Average balances
Securities, at amortized cost	$	14,478,054	$	14,030,066	$	447,988		3.2	%
Commercial loans & leases		23,433,027		20,485,570		2,947,457		14.4
Consumer loans		10,663,140		9,965,248		697,892		7.0
Revolving credit loans		847,796		704,676		143,120		20.3
Mortgage loans		8,513,832		7,584,676		929,156		12.3
Total loans & leases		43,457,795		38,740,170		4,717,625		12.2
Other earning assets		326,652		397,569		(70,917)		(17.8)
Total earning assets		58,262,501		53,167,805		5,094,696		9.6
Total assets		63,462,467		56,811,547		6,650,920		11.7
Noninterest-bearing deposits		5,225,668		5,231,789		(6,121)		(.1)
Savings & interest checking		2,641,991		3,396,733		(754,742)		(22.2)
Money rate savings		11,739,360		9,844,975		1,894,385		19.2
CD's and other time deposits		20,753,287		19,210,761		1,542,526		8.0
Total deposits		40,360,306		37,684,258		2,676,048		7.1
Short-term borrowed funds		5,994,985		7,282,625		(1,287,640)		(17.7)
Long-term debt		10,616,315		6,647,988		3,968,327		59.7
Total interest-bearing liabilities		51,745,938		46,383,082		5,362,856		11.6
Total shareholders' equity	$	5,164,595	$	4,405,766	$	758,829		17.2

	As of / For the Quarter Ended
(Dollars in thousands)	6/30/01		3/31/01		12/31/00		9/30/00		6/30/00
MISCELLANEOUS INFORMATION (1)
Unrealized appreciation (depreciation) on
securities available for sale, net of tax	$	240,169	$	237,629	$	100,226	$	(140,503)	$	(315,997)
Derivatives (notional value)		253,817		334,767		825,878		1,752,086		2,354,529
Unrealized (loss) gain on derivatives portfolio		413		1,577		348		5,864		(2,887)
Common stock prices (daily close):                         High		37.01		37.88		38.25		30.44		31.75
Low		34.25		31.42		27.38		24.06		23.88
End of period		36.70		35.17		37.31		30.13		23.88
Weighted average shares -                                     Basic		420,692,786		421,901,958		418,316,769		421,086,144		421,190,364
Diluted		426,623,357		428,417,481		424,306,754		426,040,634		426,399,394
End of period shares outstanding		424,987,963		422,375,771		423,049,641		419,243,274		421,359,323
End of period banking offices		932		933		928		897		904

NOTES:		All items referring to loans & leases include loans held for sale & are net of unearned income.
	(1)	BB&T had approximately 18,400 full-time equivalent employees at June 30, 2001.

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)	6/30/01			3/31/01			12/31/00			9/30/00			6/30/00
INCOME STATEMENTS EXCLUDING
NONRECURRING ITEMS
Interest income - taxable equivalent
Interest & fees on loans & leases	$	943,006		$	974,703		$	988,291		$	954,681		$	911,624
Interest & dividends on securities		260,439			265,388			260,415			256,513			236,338
Interest on short-term investments		3,619			4,832			6,202			5,656			6,088
Total interest income - taxable equivalent		1,207,064			1,244,923			1,254,908			1,216,850			1,154,050
Interest expense
Interest on deposits		394,369			418,423			428,994			418,505			378,092
Interest on short-term borrowed funds		58,465			87,990			110,155			94,715			106,510
Interest on long-term debt		152,050			148,238			132,709			132,213			104,890
Total interest expense		604,884			654,651			671,858			645,433			589,492
Net interest income - taxable equivalent		602,180			590,272			583,050			571,417			564,558
Less: Taxable equivalent adjustment		53,080			48,603			53,366			28,573			24,859
Net interest income		549,100			541,669			529,684			542,844			539,699
Provision for loan & lease losses		39,398			32,176			35,953			25,103			25,326
Net interest income after provision for
loan & lease losses		509,702			509,493			493,731			517,741			514,373
Noninterest income
Service charges on deposits		83,893			75,479			73,649			71,849			67,788
Mortgage banking income		49,774			40,266			26,555			24,279			25,173
Investment banking & brokerage fees & commissions		42,584			43,346			39,010			36,876			41,653
Trust revenue		23,000			24,143			17,828			20,477			19,639
Agency insurance commissions		42,796			39,465			37,375			36,275			32,579
Other insurance commissions		3,444			2,750			3,839			3,831			3,785
Other nondeposit fees & commissions		44,519			41,539			44,220			39,587			36,864
Securities gains (losses), net		3,709			2,942			5,242			530			(304)
Other income		26,400			22,818			20,990			26,683			26,419
Total noninterest income		320,119			292,748			268,708			260,387			253,596
Noninterest expense
Personnel expense		260,580			254,494			235,752			234,321			234,963
Occupancy & equipment expense		69,756			69,911			65,060			66,699			64,942
Foreclosed property expense		1,201			297			1,989			614			949
Amortization of intangibles		17,735			17,232			15,837			15,558			15,774
Other noninterest expense		124,229			108,520			105,690			114,703			123,068
Total noninterest expense		473,501			450,454			424,328			431,895			439,696
Income before income taxes		356,320			351,787			338,111			346,233			328,273
Provision for income taxes		101,186			104,519			101,330			111,841			108,121
Net income	$	255,134		$	247,268		$	236,781		$	234,392		$	220,152
PER SHARE DATA EXCLUDING
NONRECURRING ITEMS
Basic earnings	$	.61		$	.59		$	.57		$	.56		$	.52
Diluted earnings		.60			.58			.56			.55			.52
Dividends paid on common shares		.23			.23			.23			.23			.20
Book value per common share	$	12.80		$	12.33		$	11.90		$	10.94		$	10.71
RATIOS EXCLUDING
NONRECURRING ITEMS
Return on average assets		1.60	%		1.59	%		1.57	%		1.59	%		1.54	%
��  Return on average equity		19.52			19.72			20.03			20.00			19.85
Net yield on earning assets (taxable equivalent)		4.11			4.10			4.18			4.17			4.21
Efficiency (taxable equivalent) (1)		51.4			51.1			49.9			51.9			53.6
Noninterest income as a percentage of
total income (taxable equivalent) (1)		34.4			32.9			31.1			31.3			31.0
Equity as a percentage of total assets
end of period		8.4			8.2			8.0			7.7			7.7
Average earning assets as a percentage of
average total assets		91.7			91.9			92.9			93.1			93.5
Average loans & leases as a percentage of
average deposits		107.1			108.3			105.9			103.6			103.1
CASH BASIS PERFORMANCE (2)
Cash basis earnings excluding nonrecurring items	$	272,275		$	263,908		$	252,197		$	249,376		$	235,720
Diluted cash basis earnings per share		.64			.62			.59			.59			.55
Return on average tangible assets		1.73	%		1.72	%		1.69	%		1.71	%		1.67	%
Return on average tangible equity		24.60			24.87			25.15			25.05			25.20
Efficiency ratio (taxable equivalent) (1)		49.5			49.2			48.0			50.0			51.4

NOTES:		Applicable ratios are annualized.
	(1)	Excludes securities gains (losses), foreclosed property expense and nonrecurring items for all periods.
	(2)	Cash basis operating results exclude the effect on earnings of amortization expense applicable to intangible assets that do not qualify as regulatory capital. Cash basis performance ratios exclude the amortization of nonqualifying intangible assets from earnings and the unamortized balances of nonqualifying intangibles from assets and equity.

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)	6/30/01			3/31/01			12/31/00			9/30/00			6/30/00
SELECTED BALANCE SHEET DATA
End of period balances
Securities available for sale	$	14,490,894		$	14,519,495		$	14,495,830		$	13,816,603		$	13,106,164
Securities held to maturity		38,249			54,518			88,578			108,030			388,692
Trading securities		120,381			187,218			96,719			132,543			127,344
Total securities		14,649,524			14,761,231			14,681,127			14,057,176			13,622,200
Commercial loans & leases		23,856,922			23,383,011			22,848,164			21,380,014			20,966,201
Consumer loans		10,772,437			10,663,807			10,724,769			10,534,118			10,312,950
Revolving credit loans		876,465			844,148			845,259			796,173			710,649
Mortgage loans		9,048,524			8,877,927			8,108,229			7,924,390			7,877,956
Total loans & leases		44,554,348			43,768,893			42,526,421			40,634,695			39,867,756
Allowance for loan & lease losses		588,926			573,877			550,599			532,344			515,806
Other earning assets		309,921			246,885			313,685			378,806			421,702
Total earning assets		59,115,932			58,382,988			57,351,835			55,289,905			54,415,119
Total assets		64,733,769			63,786,046			62,575,133			59,893,353			58,238,087
Noninterest-bearing deposits		5,643,208			5,351,485			5,480,778			5,249,715			5,490,948
Savings & interest checking		2,421,322			2,454,218			2,580,923			2,741,493			3,073,083
Money rate savings		12,349,867			12,120,055			11,505,630			10,544,978			10,125,733
CD's and other time deposits		20,970,361			20,499,857			20,945,956			19,942,599			20,156,448
Total deposits		41,384,758			40,425,615			40,513,287			38,478,785			38,846,212
Short-term borrowed funds		5,553,996			5,831,945			7,139,003			6,876,469			6,474,064
Long-term debt		10,864,249			10,912,232			8,625,100			8,653,786			7,628,326
Total interest-bearing liabilities		52,159,795			51,818,307			50,796,612			48,759,325			47,457,654
Total shareholders' equity		5,441,792			5,209,096			5,033,834			4,587,135			4,513,383
Goodwill		795,216			787,507			760,345			688,982			676,724
Core deposit & other intangibles		14,793			15,708			16,598			17,557			19,977
Total intangibles		810,009			803,215			776,943			706,539			696,701
Mortgage servicing rights		295,386			237,826			239,088			218,884			193,875
Negative goodwill	$	11,143		$	12,704		$	14,264		$	15,825		$	17,385
Average balances
Securities, at amortized cost	$	14,420,181		$	14,536,570		$	14,218,232		$	14,226,221		$	14,074,766
Commercial loans & leases		23,633,446			23,230,381			21,923,857			21,344,810			20,820,466
Consumer loans		10,693,207			10,632,739			10,435,547			10,279,691			10,091,195
Revolving credit loans		857,563			837,920			784,685			745,481			712,486
Mortgage loans		8,797,828			8,226,680			8,046,280			7,808,324			7,643,895
Total loans & leases		43,982,044			42,927,720			41,190,369			40,178,306			39,268,042
Other earning assets		317,206			336,203			324,551			302,980			359,098
Total earning assets		58,719,431			57,800,493			55,733,152			54,707,507			53,701,906
Total assets		64,021,438			62,897,285			59,971,769			58,777,567			57,431,995
Noninterest-bearing deposits		5,340,196			5,109,867			5,161,109			5,290,402			5,365,422
Savings & interest checking		2,585,498			2,699,111			2,744,853			2,956,671			3,297,466
Money rate savings		12,042,107			11,433,249			10,818,523			10,153,485			9,984,073
CD's and other time deposits		21,092,464			20,410,341			20,154,364			20,394,300			19,437,476
Total deposits		41,060,265			39,652,568			38,878,849			38,794,858			38,084,437
Short-term borrowed funds		5,518,060			6,477,209			6,892,261			5,959,378			7,146,093
Long-term debt		10,877,561			10,352,166			8,573,106			8,524,444			6,945,887
Total interest-bearing liabilities		52,115,690			51,372,076			49,183,107			47,988,278			46,810,995
Total shareholders' equity	$	5,241,999		$	5,086,331		$	4,702,357		$	4,661,237		$	4,461,140
RISK-BASED CAPITAL *
Risk-based capital:
Tier 1	$	4,458,980		$	4,260,723		$	4,241,646		$	4,076,951		$	4,184,985
Total		5,559,381			5,465,679			5,423,376			5,241,562			5,333,087
Risk-weighted assets		47,006,475			45,789,912			44,956,078			42,908,696			41,459,945
Average quarterly tangible assets		62,924,543			61,860,610			59,184,965			58,066,780			57,033,926
Risk-based capital ratios:
Tier 1		9.5	%		9.3	%		9.4	%		9.5	%		10.1	%
Total		11.8			11.9			12.1			12.2			12.9
Leverage capital ratio		7.1			6.9			7.2			7.0			7.3

NOTES:	All items referring to loans & leases include loans held for sale & are net of unearned income.
	* Current quarter information is estimated.

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)	6/30/01			3/31/01			12/31/00			9/30/00			6/30/00
ASSET QUALITY ANALYSIS
Allowance For Loan & Lease Losses
Beginning balance	$	573,877		$	550,599		$	532,344		$	515,806		$	511,066
Allowance for acquired loans		9,470			10,084			12,934			--			--
Provision for loan & lease losses		43,898			41,026			46,398			39,303			29,076
Charge-offs		(47,777)			(39,132)			(52,199)			(30,435)			(32,808)
Recoveries		9,458			11,300			11,122			7,670			8,472
Net charge-offs		(38,319)			(27,832)			(41,077)			(22,765)			(24,336)
Ending balance	$	588,926		$	573,877		$	550,599		$	532,344		$	515,806
Nonperforming Assets
Nonaccrual loans & leases	$	236,387		$	189,642		$	167,249		$	138,192		$	134,650
Foreclosed real estate		24,989			31,325			29,324			22,831			19,585
Other foreclosed property		20,068			22,681			16,903			16,042			13,694
Restructured loans		324			2,261			492			445			501
Nonperforming assets	$	281,768		$	245,909		$	213,968		$	177,510		$	168,430
Loans 90 days or more past due
& still accruing	$	82,507		$	79,780		$	75,191		$	77,108		$	64,767
Loans 90 days or more past due & still accruing
as a percentage of total loans and leases		.19	%		.18	%		.18	%		.19	%		.16	%
Asset Quality Ratios
Nonaccrual and restructured loans & leases
as a percentage of total loans & leases		.53	%		.44	%		.39	%		.34	%		.34	%
Nonperforming assets as a percentage of:
Total assets		.44			.39			.34			.30			.29
Loans & leases plus
foreclosed property		.63			.56			.50			.44			.42
Net charge-offs as a percentage of
average loans & leases		.35			.26			.40			.23			.25
Net charge-offs excluding specialized
lending as a percentage of average
loans & leases (1)		.29			.21			.34			.19			.21
Allowance for loan & lease losses as
a percentage of loans & leases		1.32			1.31			1.29			1.31			1.29
Ratio of allowance for loan & lease losses to:
Net charge-offs		3.83	x		5.08	x		3.37	x		5.88	x		5.27	x
Nonaccrual and restructured loans & leases		2.49			2.99			3.28			3.84			3.82

	As of / for the Six Months Ended						Increase (Decrease)
	6/30/01			6/30/00			$		%
Allowance For Loan & Lease Losses
Beginning balance	$	550,599		$	502,522		$	48,077		9.6	%
Allowance for acquired loans		19,554			1,378			18,176		NM
Provision for loan & lease losses		84,924			56,526			28,398		50.2
Charge-offs		(86,909)			(62,715)			(24,194)		(38.6)
Recoveries		20,758			18,095			2,663		14.7
Net charge-offs		(66,151)			(44,620)			(21,531)		(48.3)
Ending balance	$	588,926		$	515,806		$	73,120		14.2
Asset Quality Ratios
Net charge-offs as a percentage of
average loans & leases		.31	%		.23	%
Ratio of allowance for loan & lease losses to
net charge-offs		4.42	x		5.72	x

	For the Quarter Ended
(Dollars in thousands)	6/30/01			3/31/01			12/31/00			9/30/00			6/30/00
ANNUALIZED INTEREST YIELDS / RATES (2)
Interest income:
Securities & other		7.17	%		7.27	%		7.33	%		7.22	%		6.72	%
Loans & leases		8.59			9.19			9.55			9.46			9.33
Total earning assets		8.23			8.69			8.97			8.86			8.63
Interest expense:
Interest-bearing deposits		4.43			4.91			5.06			4.97			4.65
Short-term borrowed funds		4.25			5.51			6.36			6.32			5.99
Long-term debt		5.60			5.79			6.17			6.18			6.06
Total interest-bearing liabilities		4.65			5.16			5.44			5.35			5.06
Net yield on earning assets		4.10	%		4.10	%		4.18	%		4.17	%		4.21	%

NOTES:		All items referring to loans & leases include loans held for sale & are net of unearned income.
	(1)	Excludes net charge-offs and average loans from BB&T's consumer finance 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 Six Months Ended				Increase (Decrease)
(Dollars in thousands)	6/30/01		6/30/00		$		%
SELECTED BALANCES EXCLUDING PURCHASE ACQUISITIONS (1)
Average Balances
Commercial loans & leases	$	23,471,599	$	21,004,637	$	2,466,962		11.7	%
Consumer loans		10,724,318		10,243,581		480,737		4.7
Revolving credit loans		848,499		712,859		135,640		19.0
Mortgage loans (2)		10,103,720		8,451,314		1,652,406		19.6
Total loans & leases		45,148,136		40,412,391		4,735,745		11.7
Noninterest-bearing deposits (3)		5,259,768		5,245,451		14,317		0.3
Interest-bearing transaction accounts		14,103,175		13,241,708		861,467		6.5
CD's and other time deposits		20,216,657		19,210,761		1,005,896		5.2
Total deposits	$	39,579,600	$	37,697,920	$	1,881,680		5.0	%

	For the Six Months Ended				Increase (Decrease)
(Dollars in thousands)	6/30/01		6/30/00		$		%
SELECTED RECURRING INCOME STATEMENT ITEMS EXCLUDING PURCHASE ACQUISITIONS (1)
Net interest income - taxable equivalent	$	1,169,750	$	1,122,348	$	47,402		4.2	%
Noninterest income
Service charges on deposits	$	156,228	$	131,056	$	25,172		19.2	%
Mortgage banking income		80,567		52,524		28,043		53.4
Investment banking & brokerage fees & commissions		83,155		87,585		(4,430)		(5.1)
Trust revenue		46,754		38,385		8,369		21.8
Agency insurance commissions		66,183		64,118		2,065		3.2
Other insurance commissions		6,131		7,145		(1,014)		(14.2)
Other nondeposit fees & commissions		85,630		70,161		15,469		22.0
Securities gains (losses), net		6,651		(46)		6,697		NM
Other income		48,835		45,094		3,741		8.3
Total noninterest income		580,134		496,022		84,112		17.0
Noninterest expense
Personnel expense		492,043		472,526		19,517		4.1
Occupancy & equipment expense		134,922		130,242		4,680		3.6
Other noninterest expense		251,100		267,586		(16,486)		(6.2)
Total noninterest expense	$	878,065	$	870,354	$	7,711		0.9	%

NOTES:	(1)	Amounts adjusted to exclude growth that resulted from the timing of acquisitions purchased during 2001 and 2000.
	(2)	Excludes the impact of mortgage loan securitization programs in both 2001 and 2000.
	(3)	Excludes the impact of the outsourcing of official checks.
	NM	- not meaningful

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 12, 2001