Quarterly Performance Summary issued January 13, 2004

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 13, 2004

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 12.   Results of Operations and Financial Condition

          The purpose of this Current Report on Form 8-K is to furnish BB&T’s second quarter 2004 earnings release.

EXHIBIT INDEX

Exhibit 99.1 Quarterly Performance Summary issued July 13, 2004

July 13, 2004

FOR IMMEDIATE RELEASE

Contacts:    
ANALYSTS MEDIA
Tom A. Nicholson Scott E. Reed Bob Denham
Executive 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 net income of $400 million, up 26.5%

          WINSTON-SALEM, N.C. — BB&T Corporation (NYSE: BBT) reported today second quarter net income totaling $400.1 million, or $.72 per diluted share. Net income increased 26.5% compared with $316.2 million earned in the second quarter of 2003, while diluted earnings per share reflected an increase of 7.5% compared to earnings per share of $.67 during the second quarter last year.

          BB&T’s second quarter net income produced annualized returns on average assets and average shareholders’ equity of 1.65% and 15.17%, respectively, compared to prior year returns of 1.57% and 16.38%, respectively.

          Cash basis operating results exclude the unamortized balances of intangibles from assets and shareholders’ equity and exclude the amortization of intangibles, the net amortization of purchase accounting mark-to-market adjustments and merger-related charges from earnings. Cash basis operating earnings totaled $422.5 million for the second quarter of 2004, an increase of 23.9% compared to the second quarter of 2003. Current quarter cash basis diluted earnings per share increased 5.6% to $.76, compared to $.72 earned during the same period in 2003. Cash basis operating earnings for the second quarter of 2004 produced an annualized return on average tangible assets of 1.83% and an annualized return on average tangible shareholders’ equity of 28.41%.

          “I am extremely pleased to report strong results for the second quarter of 2004,” said Chairman and Chief Executive Officer John A. Allison. “Our earnings reflect significant improvements in a number of key areas that drive our performance, including core loan growth, higher revenues from our noninterest income generating businesses, continued excellent asset quality and improving expense control. We are also gaining sales and earnings momentum in our new markets and achieving operating efficiencies from recent acquisitions. I believe we are well-positioned to further improve profitability during the remainder of 2004.”

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          For the first six months of 2004, BB&T’s net income was $728.6 million, an increase of 13.1% compared to $644.0 million earned in the first six months of 2003. Diluted earnings per share for the first half of 2004 totaled $1.32, a decrease of 2.9% compared to the same period in 2003. Excluding $6.5 million in net after-tax merger-related expenses, operating earnings for the first six months of 2004 were $735.1 million, an increase of 10.1% compared to 2003. Operating diluted earnings per share totaled $1.33 for the first six months of 2004, a decrease of 5.7% compared to the first six months last year.

Loan Growth Accelerates in Second Quarter – Core Loan Growth 12.3%

          Average loans and leases totaled $66.9 billion for the second quarter of 2004, reflecting an increase of $3.6 billion, or 23.2% on an annualized basis, compared to the first quarter of 2004. Excluding the impact of growth resulting from acquisitions, average loans grew 12.3% on an annualized basis compared to the first quarter of 2004, reflecting the strongest internal quarterly growth rate since 2000. This growth was led by mortgage loans, which increased at an annualized rate, excluding acquisitions, of 22.9% compared to the first quarter of 2004. Commercial loan growth substantially improved during the second quarter, with average commercial loans and leases increasing 9.1% on an annualized basis excluding acquisitions compared to the first quarter of 2004. BB&T also benefited from continued positive growth trends in consumer loans, with average direct retail loans and revolving credit increasing at annualized rates of 13.5% and 5.4%, respectively, excluding acquisitions, compared to the first quarter. Sales finance loan growth significantly improved compared to recent quarters, with average balances increasing at an annualized rate of 5.7% compared to the first quarter.

Asset Quality Excellent – Reflects Continued Improvement

          BB&T’s credit quality continued to improve during the second quarter. Nonperforming assets, as a percentage of total assets, decreased to .42% at June 30 compared to .49% at Dec. 31, 2003 and .55% at June 30, 2003. Annualized net charge-offs were .34% of average loans and leases for the second quarter of 2004, down from ..36% in the first quarter of 2004 and .43% in the second quarter of 2003. These are the lowest levels of nonperforming assets and quarterly net charge-offs in more than three years. Excluding losses at BB&T’s specialized lending subsidiaries, annualized net charge-offs for the current quarter were .24% of average loans and leases compared to .25% in the first quarter of 2004 and .31% in the second quarter of 2003.

Quarterly Cash Dividend Increased 9.4%

          On June 22, BB&T’s board of directors declared a cash dividend of $.35 per share, payable Aug. 2 to shareholders of record on July 16. This represents an increase of 9.4% and marks the 33rd consecutive year that BB&T has raised the cash dividend paid to shareholders. In addition, BB&T has paid a dividend every year since 1920.

Core Operating Noninterest Expenses Decrease 6.8%

          BB&T’s noninterest expenses totaled $750.7 million for the second quarter, an increase of $12.7 million, or 6.9% on an annualized basis, compared to the first quarter of 2004. Excluding merger-related expenses and expense growth resulting from purchase acquisitions, noninterest expenses decreased 6.8% on an annualized basis compared to the first quarter of 2004, demonstrating efficiencies realized in connection with recent mergers.

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Growth Continues in Noninterest Income

          The positive trends in BB&T’s noninterest income continued during the second quarter. Total noninterest income was $573.7 million for the quarter, an increase of 24.4% compared with the same period in 2003. Excluding growth resulting from acquisitions, noninterest income increased 4.4% compared to the second quarter of 2003. Noninterest income for the second quarter of 2004 increased at an 80.3% annualized rate compared to the first quarter of 2004, and grew an annualized 56.9%, excluding acquisitions, compared to the same period. The growth was led by substantially improved performance from mortgage banking operations, as well as increased revenues from insurance operations, service charges on deposit accounts and other nondeposit fees and commissions.

          Revenues from mortgage banking operations totaled $67.5 million for the second quarter of 2004, an increase of $100.2 million compared to a net loss of $32.7 million for the second quarter last year. Current quarter earnings increased primarily as a result of a $30.4 million net recapture of the valuation allowance offsetting mortgage servicing rights as higher mortgage rates have increased the value of these assets. Lower interest rates in the second quarter of 2003 required BB&T to record a $109.3 million increase to the allowance for mortgage servicing rights, resulting in the $32.7 million net loss.

          The continued expansion of BB&T’s insurance agency network and brokerage operations through both acquisitions and internal growth resulted in insurance commissions totaling $164.7 million for the second quarter, a 62.3% increase compared with $101.5 million earned during the second quarter of 2003. Revenues from BB&T’s insurance operations were the largest source of noninterest income during the quarter. Excluding the effect of acquisitions, second quarter insurance commissions increased 8.4% compared to the second quarter of 2003 and 54.3% on an annualized basis compared to the first quarter of 2004.

          Service charges for deposit-related services totaled $131.4 million during the second quarter of 2004, an increase of 36.0% compared to the second quarter of 2003. This increase resulted from service charge income from acquired institutions, growth in commercial account analysis fees and significantly lower fee waivers compared to last year. Excluding the effect of acquisitions, service charges on deposits for the second quarter of 2004 increased 12.6% compared to the second quarter last year.

          Other service charges, commissions and fees totaled $79.5 million for the second quarter of 2004, an increase of $18.7 million, or 30.8%, compared to the second quarter of 2003. Excluding the effect of acquisitions, other service charges, commissions and fees increased 12.2% compared to the second quarter last year. This increase was generated primarily by growth in bankcard fees and merchant-related services.

BB&T Completes Republic Merger and Continues Expansion of Existing Business Lines

          On April 14, BB&T consummated its merger with Republic Bancshares, Inc. (“Republic”), headquartered in St. Petersburg, Fla., and on June 14, BB&T successfully converted Republic’s systems to those of BB&T. Republic had $2.8 billion in assets and operated 71 banking offices along the Gulf Coast and in central and southern Florida at the time of acquisition. The Republic merger, BB&T’s second in Florida, effectively complements the acquisition of Regional Financial Corp., completed in September 2002, and provides BB&T with an enhanced presence in many of the strongest and fastest-growing economic markets in Florida.

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          On June 10, BB&T completed its acquisition of privately held investment advisory firm de Garmo & Kelleher of Washington, D.C. With more than $630 million in assets under management, de Garmo & Kelleher specializes in providing highly personalized investment counseling to individuals, families, professional corporations and charities primarily in Maryland, Virginia and Washington, D.C.

          On April 30, BB&T completed its acquisition of Capitol Premium Plan Inc., an insurance premium finance company based in Charlotte, which was combined with BB&T’s wholly-owned insurance premium finance subsidiary, Prime Rate Premium Finance Corporation Inc.

          On June 1, BB&T Insurance Services acquired Employee Benefit Services based in Lexington, Ky. Employee Benefit Services provides life, health, dental, vision and disability income insurance as part of employee benefit plans. This acquisition will further expand BB&T’s insurance operations, currently the nation’s sixth largest insurance broker.

          At June 30, BB&T had $97.3 billion in assets and operated more than 1,400 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 12 was $37.38 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

           Please visit our Web site at www.BBandT.com/Investor. Replays of the earnings conference call will be available through our Web site until 5 p.m. (EDT) July 28.

_________________

           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 and purchase accounting mark-to-market adjustments in the case of “cash basis” performance measures. These non-GAAP measures may also exclude other significant gains, losses or expenses that are unusual in nature and not expected to recur. Since these items and their impact on BB&T’s performance are difficult to predict, management believes presentations of financial measures excluding the impact of these items provide useful supplemental information that is 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)  Executive 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) 6/30/04 6/30/03 $ %
OPERATING EARNINGS STATEMENTS (1)
     Interest income - taxable equivalent     $ 1,139,932   $ 1,073,710   $ 66,222     6.2  %
     Interest expense    279,751    342,111    (62,360 )   (18.2 )
       Net interest income - taxable equivalent    860,181    731,599    128,582     17.6  
     Less: Taxable equivalent adjustment    20,478    28,179    (7,701 )   (27.3 )
       Net interest income    839,703    703,420    136,283     19.4  
     Provision for loan and lease losses    64,000    61,500    2,500    4.1  
       Net interest income after provision for loan and lease losses    775,703    641,920    133,783     20.8  
     Noninterest income (2)    573,655    461,096    112,559     24.4  
     Noninterest expense (3)    749,860    619,079    130,781    21.1  
     Operating earnings before income taxes    599,498    483,937    115,561    23.9  
     Provision for income taxes    199,041    147,009    52,032    35.4  
       Operating earnings (1)   $ 400,457   $ 336,928   $ 63,529     18.9  %
PER SHARE DATA BASED ON OPERATING EARNINGS (1)  
     Basic earnings   $ .72   $ .71   $ .01     1.4  %
     Diluted earnings    .72    .71    .01    1.4  
     Weighted average shares -                                                         Basic       554,041,770     471,713,450  
                                                                                                    Diluted    557,485,680     475,293,564  
     Dividends paid per common share   $ .32   $ .29   $ .03     10.3  %
PERFORMANCE RATIOS BASED ON OPERATING EARNINGS (1)  
     Return on average assets       1.66  %   1.67  %
     Return on average equity       15.18     17.45  
     Net yield on earning assets (taxable equivalent)       4.02     4.06  
     Efficiency ratio (taxable equivalent) (4)       52.8     52.0  
CASH BASIS PERFORMANCE  
     BASED ON OPERATING EARNINGS (1)(5)  
     Cash basis operating earnings   $ 422,466   $ 341,080   $ 81,386     23.9  %
     Diluted earnings per share    .76    .72    .04    5.6  
     Return on average tangible assets       1.83  %   1.73  %
     Return on average tangible equity       28.41     23.38  
     Efficiency ratio (taxable equivalent) (4)       50.5     51.4  

For the Three Months Ended Increase (Decrease)
(Dollars in thousands, except per share data) 6/30/04 6/30/03 $ %
INCOME STATEMENTS
     Interest income     $ 1,119,454   $ 1,045,531   $ 73,923     7.1  %
     Interest expense    279,751    342,111    (62,360 )  (18.2 )
       Net interest income    839,703    703,420    136,283    19.4  
     Provision for loan and lease losses    64,000    61,500    2,500    4.1  
       Net interest income after provision for loan and lease losses    775,703    641,920    133,783    20.8  
     Noninterest income    573,655    461,096    112,559    24.4  
     Noninterest expense    750,651    650,920    99,731    15.3  
     Income before income taxes    598,707    452,096    146,611    32.4  
     Provision for income taxes    198,601    135,859    62,742    46.2  
          Net income   $ 400,106   $ 316,237   $ 83,869     26.5  %
PER SHARE DATA  
     Basic earnings   $ .72   $ .67   $ .05     7.5  %
     Diluted earnings    .72    .67    .05    7.5  
     Weighted average shares -                                                         Basic       554,041,770     471,713,450  
                                                                                                    Diluted    557,485,680    475,293,564  
PERFORMANCE RATIOS BASED ON NET INCOME  
     Return on average assets       1.65  %   1.57  %
     Return on average equity       15.17   16.38
     Efficiency ratio (taxable equivalent) (4)       52.9     54.7  

NOTES:   Applicable ratios are annualized.
  (1) Operating earnings exclude the effect of merger-related and nonrecurring charges. These charges totaled $351 thousand and $20.7 million, net of tax, in the second quarters of 2004 and 2003, respectively. See Reconciliation Tables included herein.
  (2) Excluding purchase accounting transactions, noninterest income would have increased approximately 4.4% for the quarter, compared to the same period in 2003.
  (3) Excluding purchase accounting transactions, noninterest expense would have decreased approximately 3.9% for the quarter, compared to the same period in 2003.
  (4) Excludes securities gains (losses), foreclosed property expense, provisions for or recaptures of the impairment of mortgage servicing rights, and gains or losses on mortgage banking-related derivatives. Cash basis and operating ratios also exclude merger-related charges and nonrecurring charges. See Reconciliation Tables included herein.
  (5) Cash basis performance information excludes the effect on earnings of amortization expense applicable to intangible assets, the unamortized balances of intangibles from assets and equity, and the net amortization of purchase accounting mark-to-market adjustments. See Reconciliation Tables included herein.


QUARTERLY PERFORMANCE SUMMARY   Tom A. Nicholson    
BB&T Corporation (NYSE:BBT)  Executive 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) 6/30/04 6/30/03 $ %
OPERATING EARNINGS STATEMENTS (1)
     Interest income - taxable equivalent     $ 2,241,110   $ 2,158,588   $ 82,522     3.8  %
     Interest expense    553,377    704,813    (151,436 )  (21.5 )
       Net interest income - taxable equivalent    1,687,733    1,453,775    233,958    16.1  
     Less: Taxable equivalent adjustment    41,207    58,177    (16,970 )  (29.2 )
       Net interest income    1,646,526    1,395,598    250,928    18.0  
     Provision for loan and lease losses    126,500    124,500    2,000    1.6  
       Net interest income after provision for loan and lease losses    1,520,026    1,271,098    248,928    19.6  
     Noninterest income (2)    1,051,833    906,017    145,816    16.1  
     Noninterest expense (3)    1,478,196    1,218,438    259,758    21.3  
     Operating earnings before income taxes    1,093,663    958,677    134,986    14.1  
     Provision for income taxes    358,562    290,950    67,612    23.2  
       Operating earnings (1)   $735,101   $667,727   $67,374     10.1  %
PER SHARE DATA BASED ON OPERATING EARNINGS (1)  
     Basic earnings   $1.34   $1.42   $(.08 )   (5.6 ) %
     Diluted earnings    1.33    1.41    (.08 )  (5.7 )
     Weighted average shares -                                                         Basic       550,309,127     471,124,675
                                                                                                    Diluted    554,016,363    474,823,495  
     Dividends paid on common shares   $ .64   $ .58   $ .06     10.3  %
PERFORMANCE RATIOS BASED ON OPERATING EARNINGS (1)  
     Return on average assets       1.56  %   1.68  %
     Return on average equity       14.20     17.69  
     Net yield on earning assets (taxable equivalent)       4.06     4.09  
     Noninterest income as a percentage of  
       total income (taxable equivalent) (4)       37.9     37.8  
     Efficiency ratio (taxable equivalent) (4)       53.9     51.8  
CASH BASIS PERFORMANCE  
     BASED ON OPERATING EARNINGS (1)(5)  
     Cash basis operating earnings   $ 777,431   $ 675,999   $ 101,432     15.0  %
     Diluted earnings per share    1.40    1.42    (.02 )  (1.4 )
     Return on average tangible assets       1.73  %   1.74  %
     Return on average tangible equity       26.17     23.81  
     Efficiency ratio (taxable equivalent) (4)       51.7     51.2  

For the Six Months Ended Increase (Decrease)
(Dollars in thousands, except per share data) 6/30/04 6/30/03 $ %
INCOME STATEMENTS
     Interest income     $ 2,199,903   $ 2,100,411   $ 99,492     4.7  %
     Interest expense    553,377    704,813    (151,436 )  (21.5 )
       Net interest income    1,646,526    1,395,598    250,928    18.0  
     Provision for loan and lease losses    126,500    124,500    2,000    1.6  
       Net interest income after provision for loan and lease losses    1,520,026    1,271,098    248,928    19.6  
     Noninterest income    1,051,833    906,017    145,816    16.1  
     Noninterest expense    1,488,637    1,255,008    233,629    18.6  
     Income before income taxes    1,083,222    922,107    161,115    17.5  
     Provision for income taxes    354,616    278,122    76,494    27.5  
          Net income   $728,606   $643,985   $84,621    13.1  %
PER SHARE DATA  
     Basic earnings   $1.32   $1.37   $(.05 )  (3.6 ) %
     Diluted earnings    1.32    1.36    (.04 )  (2.9 )
     Weighted average shares -                                               Basic       550,309,127     471,124,675
                                                                                          Diluted    554,016,363    474,823,495  
PERFORMANCE RATIOS BASED ON NET INCOME  
     Return on average assets       1.55  %   1.62  %
     Return on average equity       14.07     17.06  
     Efficiency (taxable equivalent) (4)       54.3     53.4  

NOTES:   Applicable ratios are annualized.
  (1) Operating earnings exclude the effect of merger-related and nonrecurring charges. These charges totaled $6.5 million and $23.7 million, net of tax, in 2004 and 2003, respectively. See Reconciliation Tables included herein.
  (2) Excluding purchase accounting transactions, noninterest income would have decreased approximately 0.3% for the six months ended June 30, 2004 compared to 2003.
  (3) Excluding purchase accounting transactions, noninterest expense would have decreased approximately 1.5% for the six months ended June 30, 2004 compared to 2003.
  (4) Excludes securities gains (losses), foreclosed property expense, provisions for or recaptures of the impairment of mortgage servicing rights, and gains or losses on mortgage banking-related derivatives. Cash basis and operating ratios also exclude merger-related charges and nonrecurring charges. See Reconciliation Tables included herein.
  (5) Cash basis performance information excludes the effect on earnings of amortization expense applicable to intangible assets, the unamortized balances of intangibles from assets and equity, and the net amortization of purchase accounting mark-to-market adjustments. See Reconciliation Tables included herein.


QUARTERLY PERFORMANCE SUMMARY   Tom A. Nicholson    
BB&T Corporation (NYSE:BBT)  Executive 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) 6/30/04 6/30/03 $ %
CONSOLIDATED BALANCE SHEETS
End of period balances
Cash and due from banks     $ 1,967,249   $ 2,063,487   $ (96,238 )   (4.7 ) %
Interest-bearing deposits with banks    314,229    326,835    (12,606 )  (3.9 )
Federal funds sold and other earning assets    176,509    206,643    (30,134 )  (14.6 )
Securities available for sale    17,477,628    16,030,474    1,447,154    9.0  
Securities held to maturity    125    55,099    (54,974 )  (99.8 )
Trading securities    388,998    180,711    208,287    115.3  
  Total securities    17,866,751    16,266,284    1,600,467    9.8  
Commercial loans and leases    33,397,400    29,418,569    3,978,831    13.5  
Direct retail loans    13,314,629    9,716,242    3,598,387    37.0  
Sales finance loans    6,288,337    3,381,745    2,906,592    85.9  
Revolving credit loans    1,204,479    1,059,313    145,166    13.7  
Mortgage loans    12,831,806    11,368,328    1,463,478    12.9  
  Total loans and leases    67,036,651    54,944,197    12,092,454    22.0  
Allowance for loan and lease losses    816,330    719,576    96,754    13.4  
  Total earning assets    85,745,148    71,351,630    14,393,518    20.2  
Premises and equipment, net    1,270,680    1,068,808    201,872    18.9  
Goodwill    4,076,888    1,714,938    2,361,950    137.7  
Other intangible assets    586,199    152,054    434,145    285.5  
Other assets    4,869,459    4,421,136    448,323    10.1  
  Total assets    97,348,285    80,444,806    16,903,479    21.0  
Noninterest-bearing deposits    12,017,270    9,238,605    2,778,665    30.1  
Savings and interest checking    4,506,042    2,946,606    1,559,436    52.9  
Money rate savings    22,428,015    16,608,916    5,819,099    35.0  
CDs and other time deposits    27,711,563    23,561,639    4,149,924    17.6  
  Total deposits    66,662,890    52,355,766    14,307,124    27.3  
Short-term borrowed funds    6,232,126    4,627,801    1,604,325    34.7  
Long-term debt    10,524,646    12,831,350    (2,306,704 )  (18.0 )
  Total interest-bearing liabilities    71,402,392    60,576,312    10,826,080    17.9  
Other liabilities    3,403,910    2,926,465    477,445    16.3  
  Total liabilities    86,823,572    72,741,382    14,082,190    19.4  
  Total shareholders' equity   $10,524,713   $7,703,424   $2,821,289    36.6  %
Average balances  
Securities, at amortized cost   $17,783,393   $16,933,397   $849,996     5.0  %
Commercial loans and leases    32,272,966    29,116,242    3,156,724    10.8  
Direct retail loans    12,682,083    9,502,426    3,179,657    33.5  
Sales finance loans    6,208,974    3,483,651    2,725,323    78.2  
Revolving credit loans    1,176,648    1,041,279    135,369    13.0  
Mortgage loans    12,701,144    10,903,062    1,798,082    16.5  
  Total loans and leases    65,041,815    54,046,660    10,995,155    20.3  
Allowance for loan and lease losses    802,704    724,919    77,785    10.7  
Other earning assets    625,977    483,618    142,359    29.4  
  Total earning assets    83,451,185    71,463,675    11,987,510    16.8  
  Total assets    94,699,382    80,088,767    14,610,615    18.2  
Noninterest-bearing deposits    11,204,341    8,008,885    3,195,456    39.9  
Savings and interest checking    4,804,957    3,339,126    1,465,831    43.9  
Money rate savings    21,015,740    16,317,831    4,697,909    28.8  
CDs and other time deposits    26,745,650    24,574,832    2,170,818    8.8  
  Total deposits    63,770,688    52,240,674    11,530,014    22.1  
Short-term borrowed funds    6,640,017    4,384,035    2,255,982    51.5  
Long-term debt    10,644,980    13,376,650    (2,731,670 )  (20.4 )
  Total interest-bearing liabilities    69,851,344    61,992,474    7,858,870    12.7  
  Total shareholders' equity   $10,413,329   $7,612,013   $2,801,316    36.8  %

As of / For the Quarter Ended
(Dollars in thousands)   6/30/04 3/31/04 12/31/03 9/30/03 6/30/03
MISCELLANEOUS INFORMATION (1)
Unrealized appreciation (depreciation) on                                        
  securities available for sale, net of tax        $(228,129 ) $145,119   $11,450   $98,196   $ 240,474  
Derivatives (notional value)         19,980,873    20,219,582    14,608,690    9,625,035    12,377,125  
Fair value of derivatives portfolio         23,345    214,865    136,025    184,467    274,749  
Common stock prices:    High    37.91    38.80    39.69    38.19    35.93  
        Low     33.02     34.48     35.98     33.72     31.42
        End of period     36.97     35.30     38.64     35.91     34.30
Weighted average shares -       Basic     554,041,770     546,576,484     544,871,908     551,018,984     471,713,450  
        Diluted     557,485,680     550,547,045     549,858,403     555,543,993     475,293,564
End of period shares outstanding         555,337,965    548,022,164    541,942,987    548,886,598    472,118,220  
End of period banking offices         1,420    1,353    1,359    1,456    1,109  
ATMs         1,911    1,848    1,880    1,948    1,675  

NOTES:   All items referring to loans and leases include loans held for sale and are net of unearned income.
  (1) BB&T had approximately 26,800 full-time equivalent employees at June 30, 2004.


QUARTERLY PERFORMANCE SUMMARY   Tom A. Nicholson    
BB&T Corporation (NYSE:BBT)  Executive 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) 6/30/04 3/31/04 12/31/03 9/30/03 6/30/03
OPERATING EARNINGS STATEMENTS (1)
     Interest income - taxable equivalent
     Interest and fees on loans and leases     $ 952,389   $ 919,030   $ 925,614   $ 931,997   $ 853,094  
     Interest and dividends on securities    185,476    179,639    186,210    191,261    218,872  
     Interest on short-term investments    2,067    2,509    2,316    1,798    1,744  
       Total interest income - taxable equivalent    1,139,932    1,101,178    1,114,140    1,125,056    1,073,710  
     Interest expense  
     Interest on deposits    172,689    166,777    171,380    184,168    192,505  
     Interest on short-term borrowed funds    17,968    17,395    15,033    14,651    15,494  
     Interest on long-term debt    89,094    89,454    89,451    93,291    134,112  
       Total interest expense    279,751    273,626    275,864    292,110    342,111  
     Net interest income - taxable equivalent    860,181    827,552    838,276    832,946    731,599  
     Less: Taxable equivalent adjustment    20,478    20,729    26,600    26,488    28,179  
       Net interest income    839,703    806,823    811,676    806,458    703,420  
     Provision for loan and lease losses    64,000    62,500    58,500    65,000    61,500  
       Net interest income after provision for                                  
          loan and lease losses    775,703    744,323    753,176    741,458    641,920  
     Noninterest income  
     Service charges on deposits    131,445    122,763    122,120    121,981    96,645  
     Mortgage banking income (loss)    67,535    7,110    45,628    98,330    (32,711 )
     Investment banking and brokerage fees and commissions    63,624    76,598    68,667    65,805    60,597  
     Trust revenue    31,519    29,985    29,099    31,871    26,248  
     Insurance commissions    164,712    123,706    102,070    103,592    101,500  
     Other nondeposit fees and commissions    79,465    71,634    73,618    73,312    60,770  
     Securities gains (losses), net    2    (511 )  (7,529 )  (9,994 )  109,500  
     Other noninterest income    35,353    46,893    37,342    27,206    38,547  
       Total noninterest income    573,655    478,178    471,015    512,103    461,096  
     Noninterest expense  
     Personnel expense    433,866    422,966    374,788    412,350    367,497  
     Occupancy and equipment expense    103,428    100,147    100,463    97,352    85,625  
     Foreclosed property expense    7,085    6,002    6,556    5,163    3,541  
     Amortization of intangibles    28,670    24,056    21,100    20,990    6,806  
     Other noninterest expense    176,811    175,165    179,778    173,393    155,610  
       Total noninterest expense    749,860    728,336    682,685    709,248    619,079  
     Operating earnings before income taxes    599,498    494,165    541,506    544,313    483,937  
     Provision for income taxes    199,041    159,521    164,657    165,055    147,009  
       Operating earnings (1)   $400,457   $334,644   $376,849   $379,258   $336,928  
PER SHARE DATA BASED ON  
     OPERATING EARNINGS (1)  
     Basic earnings   $.72   $.61   $.69   $.69   $.71  
     Diluted earnings    .72    .61    .69    .68    .71  
     Dividends paid per common share    .32    .32    .32    .32    .29  
     Book value per share    18.95    19.03    18.33    18.61    16.32  
     Tangible book value per share (2)    10.56    11.01    10.92    11.20    12.36  
PERFORMANCE RATIOS BASED ON  
     OPERATING EARNINGS (1)  
     Return on average assets      1.66  %  1.46  %  1.66  %  1.66  %  1.67  %
     Return on average equity    15.18    13.17    14.80    14.73    17.45  
     Net yield on earning assets (taxable equivalent)    4.02    4.09    4.22    4.17    4.06  
     Efficiency ratio (taxable equivalent) (3)    52.8    55.1    52.7    53.0    52.0  
     Noninterest income as a percentage of                                  
       total income (taxable equivalent) (3)    38.8    36.9    34.7    37.3    38.2  
     Equity as a percentage of total assets at  
       end of period    10.8    11.1    11.0    11.3    9.6  
     Average earning assets as a percentage of                                  
       average total assets    88.2    88.1    87.9    87.6    89.3  
     Average loans and leases as a percentage of  
       average deposits    101.3    102.7    100.7    99.4    102.9  
CASH BASIS PERFORMANCE BASED ON  
     OPERATING EARNINGS (1) (4)  
     Cash basis operating earnings   $422,466   $354,965   $393,646   $395,987   $341,080  
     Diluted earnings per share    .76    .64    .72    .71    .72  
     Return on average tangible assets      1.83  %  1.62  %  1.81  %  1.81  %  1.73  %
     Return on average tangible equity    28.41    23.93    25.84    25.62    23.38  
     Efficiency ratio (taxable equivalent) (3)    50.5    52.9    50.8    51.2    51.4  

NOTES:   Applicable ratios are annualized.
  (1) Operating earnings exclude the effect of merger-related and nonrecurring charges. These charges totaled $351 thousand, $6.1 million, $71.8 million, $263.4 million, and $20.7 million, net of tax, for the quarters ended June 30, 2004, March 31, 2004, December 31, 2003, September 30, 2003 and June 30, 2003, respectively. See Reconciliation Tables included herein.
  (2) Excludes the carrying value of goodwill and other intangible assets from shareholders' equity.
  (3) Excludes securities gains (losses), foreclosed property expense, provisions for or recaptures of the impairment of mortgage servicing rights, gains or losses on mortgage banking-related derivatives, merger-related charges and nonrecurring charges, where applicable. See Reconciliation Tables included herein.
  (4) Cash basis operating performance information excludes the effect on earnings of amortization expense applicable to intangible assets, the unamortized balances of intangibles from assets and equity, and the net amortization of purchase accounting mark-to-market adjustments. See Reconciliation Tables included herein.

QUARTERLY PERFORMANCE SUMMARY   Tom A. Nicholson    
BB&T Corporation (NYSE:BBT)  Executive Vice President  (336) 733-3058  
Page 9  Investor Relations  FAX (336) 733-3132  

As of / For the Quarter Ended
(Dollars in thousands, except per share data) 6/30/04 3/31/04 12/31/03 9/30/03 6/30/03
INCOME STATEMENTS
     Interest income
     Interest and fees on loans and leases     $ 945,561   $ 912,156   $ 982,319   $ 920,451   $ 841,961  
     Interest and dividends on securities    171,826    165,784    171,178    176,319    201,826  
     Interest on short-term investments    2,067    2,509    2,316    1,798    1,744  
       Total interest income    1,119,454    1,080,449    1,155,813    1,098,568    1,045,531  
     Interest expense  
     Interest on deposits    172,689    166,777    171,380    184,168    192,505  
     Interest on short-term borrowed funds    17,968    17,395    15,033    14,651    15,494  
     Interest on long-term debt    89,094    89,454    89,451    93,291    134,112  
       Total interest expense    279,751    273,626    275,864    292,110    342,111  
     Net interest income    839,703    806,823    879,949    806,458    703,420  
     Provision for loan and lease losses    64,000    62,500    58,500    65,000    61,500  
       Net interest income after provision for                                  
          loan and lease losses    775,703    744,323    821,449    741,458    641,920  
     Noninterest income  
     Service charges on deposits    131,445    122,763    122,120    121,981    96,645  
     Mortgage banking income (loss)    67,535    7,110    45,628    98,330    (32,711 )
     Investment banking and brokerage fees and commissions    63,624    76,598    68,667    65,805    60,597  
     Trust revenue    31,519    29,985    29,099    31,871    26,248  
     Insurance commissions    164,712    123,706    102,070    103,592    101,500  
     Other nondeposit fees and commissions    79,465    71,634    73,618    73,312    60,770  
     Securities gains (losses), net    2    (511 )  (7,529 )  (9,994 )  109,500  
     Other noninterest income    35,353    46,893    37,342    27,206    38,547  
       Total noninterest income    573,655    478,178    471,015    512,103    461,096  
     Noninterest expense  
     Personnel expense    433,866    422,966    374,788    412,350    367,497  
     Occupancy and equipment expense    103,428    100,147    100,463    97,352    85,625  
     Foreclosed property expense    7,085    6,002    6,556    5,163    3,541  
     Amortization of intangibles    28,670    24,056    21,100    20,990    6,806  
     Merger-related and restructuring charges    791    9,650    51,451    22,820    10,775  
     Loss on early extinguishment of debt    --    --    --    384,898    --  
     Other noninterest expense    176,811    175,165    179,778    173,393    176,676  
       Total noninterest expense    750,651    737,986    734,136    1,116,966    650,920  
     Income before income taxes    598,707    484,515    558,328    136,595    452,096  
     Provision for income taxes    198,601    156,015    253,301    20,704    135,859  
       Net income   $400,106   $328,500   $305,027   $115,891   $316,237  
PER SHARE DATA  
     Basic earnings   $ .72   $ .60   $ .56   $ .21   $ .67  
     Diluted earnings    .72    .60    .55    .21    .67  

For the Quarter Ended
6/30/04 3/31/04 12/31/03 9/30/03 6/30/03
ANNUALIZED INTEREST YIELDS / RATES (1)
Interest income:
   Securities and other earning assets:
       U.S. Government securities and other earning assets       3.83  %   3.91  %   4.12  %   4.07  %   4.84  %
       Mortgage-backed securities    4.19    4.91    5.03    5.05    4.84  
       State and municipal securities    6.58    6.46    6.30    6.28    7.53  
       Trading securities    1.89    1.45    3.70    2.28    1.09  
          Total securities and other earning assets    3.96    4.07    4.30    4.28    4.92  
     Loans:  
       Commercial loans and leases    5.22    5.31    5.42    5.44    5.63  
       Consumer loans    6.65    6.77    6.83    7.08    7.84  
       Mortgage loans    5.55    5.72    5.98    5.82    6.06  
          Total loans    5.72    5.84    5.96    6.02    6.29  
             Total earning assets    5.33    5.45    5.60    5.62    5.95  
Interest expense:  
     Interest-bearing deposits:  
       Savings and interest checking    .20    .21    .24    .27    .38  
       Money rate savings    .64    .61    .63    .65    .86  
       CDs and other time deposits    1.98    2.07    2.11    2.23    2.49  
          Total interest-bearing deposits    1.28    1.32    1.35    1.44    1.73  
          Short-term borrowed funds    1.08    1.06    .98    .99    1.29  
          Long-term debt    3.36    3.38    3.55    3.60    4.04  
             Total interest-bearing liabilities    1.57    1.62    1.65    1.73    2.19  
     Net yield on earning assets    4.02  %  4.09  %  4.22  %  4.17  %  4.06  %

NOTES: (1) Fully taxable equivalent yields. Excludes nonrecurring items. Securities yields calculated based on amortized cost.


QUARTERLY PERFORMANCE SUMMARY   Tom A. Nicholson    
BB&T Corporation (NYSE:BBT)  Executive Vice President  (336) 733-3058  
Page 10  Investor Relations  FAX (336) 733-3132  

As of / For the Quarter Ended
(Dollars in thousands) 6/30/04 3/31/04 12/31/03 9/30/03 6/30/03
SELECTED BALANCE SHEET DATA
     End of period balances
     Securities available for sale     $ 17,477,628   $ 17,584,687   $ 15,562,954   $ 16,032,688   $ 16,030,474  
     Securities held to maturity    125    125    60,122    57,076    55,099  
     Trading securities    388,998    364,481    693,819    710,387    180,711  
       Total securities    17,866,751    17,949,293    16,316,895    16,800,151    16,266,284  
     Commercial loans and leases    33,397,400    31,743,612    31,335,752    30,939,186    29,418,569  
     Direct retail loans    13,314,629    12,447,494    12,130,101    11,791,148    9,716,242  
     Sales finance loans    6,288,337    6,190,940    6,035,662    6,164,851    3,381,745  
     Revolving credit loans    1,204,479    1,167,467    1,180,480    1,111,208    1,059,313  
     Mortgage loans    12,831,806    12,821,573    11,623,391    11,166,084    11,368,328  
       Total loans and leases    67,036,651    64,371,086    62,305,386    61,172,477    54,944,197  
     Allowance for loan and lease losses    816,330    790,271    784,937    791,527    719,576  
     Other earning assets    490,738    510,292    604,006    603,425    533,478  
       Total earning assets    85,745,148    82,607,385    79,208,578    78,410,936    71,351,630  
       Total assets    97,348,285    94,281,503    90,466,613    90,355,131    80,444,806  
     Noninterest-bearing deposits    12,017,270    11,500,136    11,098,251    10,909,953    9,238,605  
     Savings and interest checking    4,506,042    4,379,735    4,307,069    4,217,404    2,946,606  
     Money rate savings    22,428,015    20,569,144    20,348,969    20,231,596    16,608,916  
     CDs and other time deposits    27,711,563    27,675,877    23,595,496    25,936,345    23,561,639  
       Total deposits    66,662,890    64,124,892    59,349,785    61,295,298    52,355,766  
     Short-term borrowed funds    6,232,126    5,748,572    7,334,900    6,294,995    4,627,801  
     Long-term debt    10,524,646    10,625,382    10,807,700    9,837,910    12,831,350  
       Total interest-bearing liabilities    71,402,392    68,998,710    66,394,134    66,518,250    60,576,312  
       Total shareholders' equity    10,524,713    10,426,828    9,934,731    10,214,832    7,703,424  
     Goodwill    4,076,888    3,837,956    3,616,526    3,642,068    1,714,938  
     Core deposit and other intangibles    586,199    552,527    401,944    422,716    152,054  
       Total intangibles    4,663,087    4,390,483    4,018,470    4,064,784    1,866,992  
       Mortgage servicing rights   $371,118   $256,341   $334,931   $327,377   $220,301  
     Average balances  
     Securities, at amortized cost   $18,378,505   $17,188,281   $16,937,451   $17,423,216   $17,432,923  
     Commercial loans and leases    33,085,067    31,460,865    30,919,252    30,746,686    29,231,383  
     Direct retail loans    13,094,968    12,269,198    11,931,318    11,597,522    9,586,676  
     Sales finance loans    6,252,607    6,165,341    6,278,763    6,285,902    3,486,168  
     Revolving credit loans    1,184,780    1,168,516    1,136,268    1,098,690    1,044,083  
     Mortgage loans    13,246,064    12,156,224    11,425,458    11,790,843    11,032,165  
       Total loans and leases    66,863,486    63,220,144    61,691,059    61,519,643    54,380,475  
     Allowance for loan and lease losses    818,852    786,556    794,394    792,914    720,432  
     Other earning assets    554,295    697,659    590,519    633,744    514,879  
       Total earning assets    85,796,286    81,106,084    79,219,029    79,576,603    72,328,277  
       Total assets    97,286,405    92,112,359    90,116,726    90,845,816    81,012,962  
     Noninterest-bearing deposits    11,663,685    10,744,997    10,967,480    11,023,396    8,326,827  
     Savings and interest checking    5,034,541    4,575,373    4,425,717    4,497,102    3,303,608  
     Money rate savings    21,801,020    20,230,460    20,162,364    20,018,836    16,406,576  
     CDs and other time deposits    27,497,580    25,993,720    25,712,445    26,350,439    24,824,328  
       Total deposits    65,996,826    61,544,550    61,268,006    61,889,773    52,861,339  
     Short-term borrowed funds    6,682,835    6,597,199    6,006,630    5,763,994    4,744,761  
     Long-term debt    10,668,414    10,621,546    9,936,570    10,205,592    13,173,214  
       Total interest-bearing liabilities    71,684,390    68,018,298    66,243,726    66,835,963    62,452,487  
       Total shareholders' equity   $10,608,131   $10,218,527   $10,099,916   $10,215,142   $7,745,395  
SELECTED CAPITAL INFORMATION (1)  
     Risk-based capital:  
       Tier 1   $6,459,729   $6,218,081   $6,166,160   $6,274,986   $5,684,767  
       Total    8,536,134    8,270,138    8,211,674    8,683,707    8,022,774  
     Risk-weighted assets    69,649,686    67,264,355    65,511,840    65,442,593    58,324,722  
     Average quarterly tangible assets    92,923,668    87,835,595    86,157,150    86,828,988    78,631,225  
     Risk-based capital ratios:  
       Tier 1    9.3  %  9.2  %  9.4  %  9.6  %  9.8  %
       Total    12.3    12.3    12.5    13.3    13.8  
     Leverage capital ratio    7.0    7.1    7.2    7.2    7.2  
     Equity as a percentage of total assets    10.8    11.1    11.0    11.3    9.6  
     Book value per share   $18.95   $19.03   $18.33   $18.61   $16.32  
     Tangible book value per share (2)    10.56    11.01    10.92    11.20    12.36  

NOTES:   All items referring to loans and leases include loans held for sale and are net of unearned income.
  (1) Current quarter risk-based capital information is preliminary.
  (2) Excludes the carrying value of goodwill and other intangible assets from shareholders' equity.

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

As of / For the Quarter Ended
(Dollars in thousands) 6/30/04 3/31/04 12/31/03 9/30/03 6/30/03
ASSET QUALITY ANALYSIS
 Allowance For Loan and Lease Losses
  Beginning balance     $ 790,271   $ 784,937   $ 791,527   $ 719,576   $ 716,276  
  Allowance for acquired loans, net    19,284    --    --    68,768    --  
  Provision for loan and lease losses    64,000    62,500    58,500    65,000    61,500  
     Charge-offs  
          Commercial loans and leases    (23,740 )  (22,176 )  (38,577 )  (27,194 )  (27,853 )
          Direct retail loans    (11,538 )  (11,295 )  (12,395 )  (10,340 )  (10,078 )
          Sales finance loans    (21,664 )  (22,518 )  (21,856 )  (23,309 )  (24,751 )
          Revolving credit loans    (12,531 )  (14,286 )  (12,279 )  (12,387 )  (12,955 )
          Mortgage loans    (1,916 )  (1,375 )  (1,733 )  (1,523 )  (1,178 )
     Total charge-offs    (71,389 )  (71,650 )  (86,840 )  (74,753 )  (76,815 )
     Recoveries  
          Commercial loans and leases    4,216    6,057    13,703    4,102    10,668  
          Direct retail loans    2,675    2,489    2,442    3,269    2,857  
          Sales finance loans    4,165    3,511    3,279    3,305    2,848  
          Revolving credit loans    2,557    2,178    2,205    2,155    2,159  
          Mortgage loans    551    249    121    105    83  
     Total recoveries    14,164    14,484    21,750    12,936    18,615  
  Net charge-offs    (57,225 )  (57,166 )  (65,090 )  (61,817 )  (58,200 )
  Ending balance   $816,330   $790,271   $784,937   $791,527   $719,576  
Nonperforming Assets  
  Nonaccrual loans and leases:  
          Commercial loans and leases   $199,718   $218,111   $219,558   $226,655   $233,938  
          Direct retail loans    50,968    52,426    50,085    47,618    43,023  
          Sales finance loans    13,152    12,062    13,082    14,182    15,794  
          Revolving credit loans    369    367    342    354    278  
          Mortgage loans    61,132    62,756    67,373    66,611    70,491  
  Total nonaccrual loans and leases    325,339    345,722    350,440    355,420    363,524  
  Foreclosed real estate    68,035    74,832    78,964    70,178    64,347  
  Other foreclosed property    18,995    21,247    17,106    20,902    17,575  
  Restructured loans    566    573    592    613    145  
     Nonperforming assets   $412,935   $442,374   $447,102   $447,113   $445,591  
Loans 90 days or more past due  
  and still accruing:  
          Commercial loans and leases   $11,180   $18,885   $17,759   $34,965   $19,925  
          Direct retail loans    21,015    20,359    25,695    24,019    20,934  
          Sales finance loans    20,732    26,091    27,863    18,379    15,688  
          Revolving credit loans    4,116    4,644    5,601    4,626    4,466  
          Mortgage loans    38,698    33,917    39,840    39,918    36,466  
  Total loans 90 days or more past due  
     and still accruing    95,741    103,896    116,758    121,907    97,479  
  Loans 90 days or more past due and still accruing                                  
     as a percentage of total loans and leases    .14  %  .16  %  .19  %  .20  %  .18  %
Asset Quality Ratios  
  Nonaccrual and restructured loans and leases                                  
     as a percentage of total loans and leases    .49  %  .54  %  .56  %  .58  %  .66  %
  Nonperforming assets as a percentage of:  
     Total assets    .42    .47    .49    .49    .55  
     Loans and leases plus                                  
        foreclosed property    .62    .69    .72    .73    .81  
  Net charge-offs as a percentage of  
     average loans and leases    .34    .36    .42    .40    .43  
  Net charge-offs excluding specialized                                  
     lending as a percentage of average                                  
     loans and leases (1)    .24    .25    .31    .30    .31  
  Allowance for loan and lease losses as  
     a percentage of loans and leases    1.22    1.23    1.26    1.29    1.31  
  Allowance for loan and lease losses as                                  
     a percentage of loans and leases                                  
     held for investment    1.23    1.25    1.27    1.32    1.39  
  Ratio of allowance for loan and lease losses to:  
     Net charge-offs    3.55  x  3.44  x  3.04  x  3.23  x  3.08  x
     Nonaccrual and restructured loans and leases    2.50    2.28    2.24    2.22    1.98  

NOTES:   All items referring to loans and leases include loans held for sale and are net of unearned income. Applicable ratios are annualized.
  (1) Excludes net charge-offs and average loans from BB&T's specialized lending subsidiaries.


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

As of / For the Six Months Ended Increase (Decrease)
6/30/04 6/30/03 $ %
 Allowance For Loan and Lease Losses
  Beginning balance     $ 784,937   $ 723,685   $ 61,252     8.5  %
  Allowance for acquired loans, net    19,284    1,267    18,017    NM  
  Reclassification of allowance related to                            
     unfunded commitments    --    (8,986 )  8,986    NM  
  Provision for loan and lease losses    126,500    124,500    2,000    1.6  
     Charge-offs  
        Commercial loans and leases    (45,916 )  (56,871 )  10,955    (19.3 )
        Direct retail loans    (22,833 )  (22,613 )  (220 )  1.0  
        Sales finance loans    (44,182 )  (46,984 )  2,802    (6.0 )
        Revolving credit loans    (26,817 )  (25,378 )  (1,439 )  5.7  
        Mortgage loans    (3,291 )  (1,836 )  (1,455 )  79.2  
     Total charge-offs    (143,039 )  (153,682 )  10,643    (6.9 )
     Recoveries  
        Commercial loans and leases    10,273    17,037    (6,764 )  (39.7 )
        Direct retail loans    5,164    6,090    (926 )  (15.2 )
        Sales finance loans    7,676    5,341    2,335    43.7  
        Revolving credit loans    4,735    4,060    675    16.6  
        Mortgage loans    800    264    536    203.0  
     Total recoveries    28,648    32,792    (4,144 )  (12.6 )
  Net charge-offs    (114,391 )  (120,890 )  6,499    5.4  
  Ending balance   $816,330   $719,576   $96,754    13.4  %
Asset Quality Ratios  
  Net charge-offs as a percentage of                
     average loans and leases       .35  %   .45  %
  Net charge-offs excluding specialized  
     lending as a percentage of average    
     loans and leases (1)       .25     .33  
  Ratio of allowance for loan and lease losses to                
     net charge-offs       3.55  x   2.95  x

Percentage Increase (Decrease)
QTD Annualized Link QTD YTD
2Q04 vs. 2Q03 2Q04 vs. 1Q04 2004 vs. 2003
PERCENTAGE CHANGES IN SELECTED BALANCES ADJUSTED FOR
     PURCHASE ACQUISITIONS (2)
     Average Balances
     Commercial loans and leases       5.0  %   9.1  %   4.1  %
     Direct retail loans    11.3    13.5    10.2  
     Sales finance loans    (0.4 )  5.7    (1.3 )
     Revolving credit loans    9.9    5.4    9.5  
     Mortgage loans    15.1    22.9    12.7  
       Total loans and leases    7.6    12.3    6.4  
     Noninterest-bearing deposits    9.5    26.7    9.8  
     Interest-bearing transaction accounts    9.0    7.7    8.6  
     CDs and other time deposits    (1.4 )  6.5    (1.6 )
     Other deposits    7.3    16.3    5.6  
       Total deposits    4.1  %  12.7  %  3.5  %
 
PERCENTAGE CHANGES IN SELECTED INCOME STATEMENT ITEMS  
     BASED ON OPERATING EARNINGS ADJUSTED FOR PURCHASE ACQUISITIONS (2)  
     Net interest income - taxable equivalent    (0.2 ) %  4.8  %  (0.4 ) %
     Noninterest income  
       Service charges on deposits    12.6    23.9    9.6  
       Mortgage banking income    NM    NM    164.3  
       Investment banking and brokerage fees and commissions    4.2    (68.1 )  23.1  
       Trust revenue    4.7    17.6    3.0  
       Insurance commissions    8.4    54.3    9.3  
       Other nondeposit fees and commissions    12.2    39.6    11.0  
       Securities gains (losses), net    (100.0 )  NM    (100.3 )
       Other income    (12.1 )  (100.3 )  14.2  
     Total noninterest income    4.4    56.9    (0.3 )
     Noninterest expense  
       Personnel expense    (4.7 )  (8.5 )  (2.0 )
       Occupancy and equipment expense    (1.4 )  (7.6 )  (1.8 )
       Other noninterest expense    (3.5 )  (3.0 )  (0.4 )
     Total noninterest expense    (3.9 ) %  (6.8 ) %  (1.5 ) %

NOTES:   All items referring to loans and leases include loans held for sale and are net of unearned income. Applicable ratios are annualized.
  (1) Excludes net charge-offs and average loans from BB&T's specialized lending subsidiaries.
  (2) Adjusted to exclude estimated growth that resulted from the timing of acquisitions during 2004 and 2003.
  NM - not meaningful.


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

For the Three Months Ended
(Dollars in thousands, except per share data) 6/30/04 3/31/04 12/31/03 9/30/03 6/30/03
SELECTED MORTGAGE BANKING INFORMATION
     Residential Mortgage Servicing Rights (4):
          Ending balance     $ 441,506   $ 419,937   $ 463,876   $ 486,842   $ 571,003  
             Less: valuation allowance    (85,085 )  (178,424 )  (143,727 )  (172,649 )  (364,035 )
          Net balance    356,421    241,513    320,149    314,193    206,968  
       Mortgage Servicing Rights Valuation Allowance:  
          Beginning balance   $178,424   $143,727   $172,649   $364,035   $254,818  
             Provisions for impairment    --    43,590    --    --    109,217  
             Recaptures    (91,867 )  --    (20,420 )  (88,910 )  --  
             Other-than-temporary impairment    (1,472 )  (8,893 )  (8,502 )  (102,476 )  --  
          Ending balance    85,085    178,424    143,727    172,649    364,035  
       Residential Mortgage Loan Originations   $3,165,695   $2,299,118   $2,283,680   $5,887,089   $6,041,147  
       Residential Mortgage Servicing Portfolio:  
             Loans serviced for others   $24,662,645   $24,034,974   $25,015,348   $25,251,299   $25,149,885  
             Bank owned loans serviced    12,831,806    12,821,573    11,623,391    11,166,084    11,368,328  
               Total servicing portfolio    37,494,451    36,856,547    36,638,739    36,417,383    36,518,213  
             Weighted Average Coupon Rate    5.85  %  5.94  %  5.98  %  6.01  %  6.24  %
             Weighted Average Servicing Fee    .350    .349    .351    .352    .363  

For the Three Months Ended
(Dollars in thousands, except per share data) 6/30/04 3/31/04 12/31/03 9/30/03 6/30/03
RECONCILIATION TABLE  
       Net income     $ 400,106   $ 328,500   $ 305,027   $ 115,891   $ 316,237  
          Merger-related charges, net of tax    351    6,144    30,176    14,829    6,998  
          Other, net of tax (3)    --    --    41,646    248,538    13,693  
       Operating earnings    400,457    334,644    376,849    379,258    336,928  
          Amortization of intangibles, net of tax    18,135    15,215    12,871    12,804    4,152  
          Amortization of mark-to-market adjustments, net of tax    3,874    5,106    3,926    3,925    --  
       Cash basis operating earnings    422,466    354,965    393,646    395,987    341,080  
       Return on average assets    1.65  %  1.43  %  1.34  %  .51  %  1.57  %
          Effect of merger-related charges, net of tax    .01    .03    .13    .06    .03  
          Effect of other, net of tax (3)    --    --    .19    1.09    .07  
       Operating return on average assets    1.66    1.46    1.66    1.66    1.67  
          Effect of amortization of intangibles, net of tax (2)    .16    .14    .13    .13    .06  
          Effect of amortization of mark-to-market adjustments,                                  
             net of tax    .01    .02    .02    .02    --  
       Cash basis operating return on average  
           tangible assets    1.83    1.62    1.81    1.81    1.73  
       Return on average equity    15.17  %  12.93  %  11.98  %  4.50  %  16.38  %
          Effect of merger-related charges, net of tax    .01    .24    1.19    .58    .36  
          Effect of other, net of tax (3)    --    --    1.63    9.65    .71  
       Operating return on average equity    15.18    13.17    14.80    14.73    17.45  
          Effect of amortization of intangibles, net of tax (2)    12.97    10.42    10.89    10.64    5.93  
          Effect of amortization of mark-to-market adjustments,  
             net of tax    .26    .34    .15    .25    --  
       Cash basis operating return on average                                  
          tangible equity    28.41    23.93    25.84    25.62    23.38  
       Efficiency ratio (taxable equivalent) (1)    52.9  %  55.8  %  59.7  %  83.7  %  54.7  %
          Effect of merger-related charges    (.1 )  (.7 )  (4.0 )  (1.7 )  (.9 )
          Effect of other (3)    --    --    (3.0 )  (29.0 )  (1.8 )
       Operating efficiency ratio (1)    52.8    55.1    52.7    53.0    52.0  
          Effect of amortization of intangibles    (2.0 )  (1.9 )  (1.6 )  (1.6 )  (.6 )
          Effect of amortization of mark-to-market adjustments    (.3 )  (.3 )  (.3 )  (.2 )  --  
       Cash basis operating efficiency ratio (1)    50.5    52.9    50.8    51.2    51.4  
       Fee income ratio (1)    38.8  %  36.9  %  36.5  %  37.3  %  38.2  %
          Effect of other (3)    --    --    (1.8 )  --    --  
       Operating fee income ratio (1)    38.8    36.9    34.7    37.3    38.2  
       Basic earnings per share   $.72   $.60   $.56   $.21   $.67  
          Effect of merger-related charges, net of tax    --    .01    .06    .03    .01  
          Effect of other, net of tax (3)    --    --    .07    .45    .03  
       Operating basic earnings per share    .72    .61    .69    .69    .71  
       Diluted earnings per share   $.72   $.60   $.55   $.21   $.67  
          Effect of merger-related charges, net of tax    --    .01    .05    .03    .01  
          Effect of other, net of tax (3)    --    --    .09    .44    .03  
       Operating diluted earnings per share    .72    .61    .69    .68    .71  
          Effect of amortization of intangibles, net of tax    .03    .02    .02    .02    .01  
          Effect of amortization of mark-to-market adjustments,                                  
             net of tax    .01    .01    .01    .01    --  
       Cash basis operating diluted earnings per share    .76    .64    .72    .71    .72  
       Net yield on earning assets (taxable equivalent)    4.02  %  4.09  %  3.89  %  4.17  %  4.06  %
          Effect of other, net of tax (3)    --    --    .33    --    --  
       Operating net yield on earning assets    4.02    4.09    4.22    4.17    4.06  

NOTES:   Applicable ratios are annualized.
  (1) Excludes securities gains (losses), foreclosed property expense, provisions for or recaptures of the impairment of mortgage servicing rights, and gains or losses on mortgage banking-related derivatives. Operating and cash basis ratios also exclude merger-related and nonrecurring charges.
  (2) Reflects the effect of excluding average intangible assets from average assets and average equity to calculate cash basis ratios.
  (3) Reflects nonrecurring contributions made by an affiliated trust totaling $13.7 million in the second quarter of 2003, a loss on early extinguishment of debt totaling $248.5 million in the third quarter of 2003, and a one-time charge related to deferred income taxes associated with BB&T's leasing operations totaling $41.6 million in the fourth quarter of 2003.
  (4) Balances exclude commercial mortgage servicing rights totaling $14.7 million, $14.8 million, $14.8 million, $13.2 million and $13.3 million, as of June 30, 2004, March 31, 2004, December 31, 2003, September 30, 2003 and June 30, 2003, respectively.


QUARTERLY PERFORMANCE SUMMARY   Tom A. Nicholson    
BB&T Corporation (NYSE:BBT)  Executive Vice President  (336) 733-3058  
Page 14  Investor Relations  FAX (336) 733-3132  

For the Six Months Ended
(Dollars in thousands, except per share data) 6/30/04 6/30/03
RECONCILIATION TABLE
Net income     $ 728,606   $ 643,985  
   Merger-related charges, net of tax    6,495    10,049  
   Other, net of tax (3)    --    13,693  
Operating earnings    735,101    667,727  
   Amortization of intangibles, net of tax    33,349    8,272  
   Amortization of mark-to-market adjustments, net of tax    8,981    --  
Cash basis operating earnings    777,431    675,999  
Return on average assets    1.55  %  1.62  %
   Effect of merger-related charges, net of tax    .01    .03  
   Effect of other, net of tax (3)    --    .03  
Operating return on average assets    1.56    1.68  
   Effect of amortization of intangibles, net of tax (2)    .15    .06  
   Effect of amortization of mark-to-market adjustments, net of tax    .02    --  
Cash basis operating return on average tangible assets    1.73    1.74  
Return on average equity    14.07  %  17.06  %
   Effect of merger-related charges, net of tax    .13    .27  
   Effect of other, net of tax (3)    --    .36  
Operating return on average equity    14.20    17.69  
   Effect of amortization of intangibles, net of tax (2)    11.67    6.12  
   Effect of amortization of mark-to-market adjustments, net of tax    .30    --  
Cash basis operating return on average tangible equity    26.17    23.81  
Efficiency ratio (taxable equivalent) (1)    54.3  %  53.4  %
   Effect of merger-related charges    (.4 )  (.7 )
   Effect of other (3)    --    (.9 )
Operating efficiency ratio (1)    53.9    51.8  
   Effect of amortization of intangibles    (1.9 )  (.6 )
   Effect of amortization of mark-to-market adjustments    (.3 )  --  
Cash basis operating efficiency ratio (1)    51.7    51.2  
Basic earnings per share   $1.32   $1.37  
   Effect of merger-related charges, net of tax    .02    .02  
   Effect of other, net of tax (3)    --    .03  
Operating basic earnings per share    1.34    1.42  
Diluted earnings per share   $1.32   $1.36  
   Effect of merger-related charges, net of tax    .01    .02  
   Effect of other, net of tax (3)    --    .03  
Operating diluted earnings per share    1.33    1.41  
   Effect of amortization of intangibles, net of tax    .06    .01  
   Effect of amortization of mark-to-market adjustments, net of tax    .01    --  
Cash basis operating diluted earnings per share    1.40    1.42  

NOTES:     Applicable ratios are annualized.  
   (1)  Excludes securities gains (losses), foreclosed property expense, provisions for or recaptures of the impairment of mortgage servicing rights, and gains or losses on mortgage banking-related derivatives. Operating and cash basis ratios also exclude merger-related and nonrecurring charges. 
   (2)  Reflects the effect of excluding average intangible assets from average assets and average equity to calculate cash basis ratios. 
   (3)  Reflects nonrecurring contributions made by an affiliated trust totaling $13.7 million in the second quarter of 2003. 




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/ EDWARD D. VEST

                                                                                Edward D. Vest
                                                                                Senior Vice President and Corporate Controller
                                                                                (Principal Accounting Officer)

Date:       July 13, 2004