BB&T Notes Q1 Income of $328.5 Million

April 14, 2004

North Carolina-based BB&T Corporation has reported net income for the first quarter of 2004 totaling $328.5 million, or $.60 per diluted share.

Net income increased slightly compared with $327.7 million earned in the first quarter of 2003, while diluted earnings per share reflected a decrease of 13.0 percent compared to earnings of $.69 during the same period last year.

Excluding the effects of expenses associated with mergers and
acquisitions, operating earnings totaled $334.6 million for the first quarter of 2004, an increase of 1.2 percent compared to 2003. Diluted operating earnings per share were $.61, a decrease of 12.9% compared with $.70 earned during the first quarter of 2003. Merger-related charges for the first quarter of 2004 totaled $6.1 million after-tax.

“Our first quarter performance was disappointing in comparison to past
trends,” said Chairman and Chief Executive Officer John Allison. “However, we continue to believe that performance will improve as the year progresses and, in fact, we are beginning to see progress in several important areas.”

BB&T’s insurance operations were the largest provider of noninterest
income during the quarter, as insurance commissions totaled $123.7 million, an increase of 39.5 percent compared with $88.7 million earned during the first quarter of 2003.

The expansion of BB&T’s insurance network through acquisitions, the largest of which was the merger with McGriff, Seibels & Williams Inc., combined with solid internal growth, drove the increase. Excluding the effect of acquisitions, insurance commissions increased 10.1 percent.

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