BB&T (BBT)

BB&T reports 2004 net income of $1.56 billion, up 46.3%; surpasses $100 billion in assets

          WINSTON-SALEM, N.C. — BB&T Corporation (NYSE: BBT) reported today earnings for the fourth quarter and the full year 2004. For the fourth quarter, net income totaled $416.9 million, or $.75 per diluted share, compared with $305.0 million, or $.55 per diluted share, earned during the fourth quarter of 2003. These results reflect increases of 36.7% and 36.4%, respectively, compared to the fourth quarter of 2003. Net income and diluted earnings per share for the fourth quarter of 2003 were negatively affected by merger-related and nonrecurring expenses, which collectively totaled $71.8 million on an after-tax basis.

          BB&T’s fourth quarter net income produced annualized returns on average assets and average shareholders’ equity of 1.68% and 15.21%, respectively, compared to prior year returns of 1.34% and 11.98%, respectively.

          Operating earnings for the fourth quarter of 2004 totaled $415.8 million, or $.75 per diluted share, excluding $1.1 million in net after-tax merger-related gains. Excluding the effects of merger-related items and nonrecurring charges from both 2004 and 2003, operating earnings for the fourth quarter of 2004 increased 10.3% compared with the fourth quarter of 2003. Diluted operating earnings per share for the fourth quarter of 2004 increased 8.7% compared to the fourth quarter last year.

          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, merger-related charges and nonrecurring items from earnings. Cash basis operating earnings totaled $438.2 million for the fourth quarter of 2004, or $.79 per diluted share, which represent increases of 11.3% and 9.7%, respectively, compared to the fourth quarter of 2003. Cash basis operating earnings for the fourth quarter of 2004 produced an annualized return on average tangible assets of 1.86% and an annualized return on average tangible shareholders’ equity of 27.77%.