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


FORM 10-Q


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

For the quarterly period ended:

September 30, 2003


Commission file number: 1-10853


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


North Carolina 56-0939887
(State of Incorporation) (I.R.S. Employer Identification No.)
   
200 West Second Street 27101
Winston-Salem, North Carolina (Zip Code)
(Address of Principal Executive Offices)  

(336) 733-2000
(Registrant's Telephone Number, Including Area Code)


               Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes  [ X ]   No  [__]


Indicate by check mark whether the Registrant is an accelerated filer (as defined in Rule 12b-2 of the Act).    Yes  [ X ]   No  [__]

At October 31, 2003, 546,606,886 shares of the registrant's common stock, $5 par value, were outstanding.


This Form 10-Q has 58 pages. The Exhibit Index begins on page 50.



BB&T CORPORATION

FORM 10-Q

September 30, 2003


INDEX


Page No.
   
Part I. FINANCIAL INFORMATION  
   
  Item 1. Financial Statements (Unaudited) 2 
   
              Consolidated Financial Statements 2 
   
              Notes to Consolidated Financial Statements 6 
   
  Item 2. Management's Discussion and Analysis of Financial Condidion and Results of Operations 21 
   
              Analysis of Financial Condition 23 
   
              Market Risk Management 30 
   
              Capital Adequacy and Resources 35 
   
              Analysis of Results of Operations 36 
   
  Item 3. Quantitative and Qualitative Disclosures About Market Risk 49 
   
  Item 4. Controls and Procedures 49 
   
Part II. OTHER INFORMATION  
   
  Item 1. Legal Proceedings 50 
   
  Item 6. Exhibits and Reports on Form 8-K 50 
   
SIGNATURES 54 
   
CERTIFICATIONS 55 



BB&T Corporation          Page 1          Third Quarter 2003 Form 10-Q



Item 1. Financial Statements

BB&T CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands, except per share data)

 September 30, December 31,
2003 2002
Assets            
     Cash and due from banks     $ 2,113,640   $ 1,929,650  
     Interest-bearing deposits with banks    281,439    148,122  
     Federal funds sold and securities purchased under resale agreements or                
         similar arrangements    321,986    294,448  
     Trading securities at fair value    710,387    148,488  
     Securities available for sale at fair value    16,032,688    17,599,477  
     Securities held to maturity at amortized cost (fair value:$57,074 at September 30, 2003  
         and $55,512 at December 31, 2002)    57,076    55,523  
     Loans held for sale    1,419,173    2,377,707  
     Loans and leases, net of unearned income    59,753,304    51,140,306  
         Allowance for loan and lease losses    (791,527 )  (723,685 )
     Loans and leases, net    58,961,777    50,416,621  
     Premises and equipment, net of accumulated depreciation    1,221,089    1,072,101  
     Goodwill    3,642,068    1,723,379  
     Core deposit and other intangible assets    422,716    148,824  
     Other assets    5,171,092    4,302,476  
                 Total assets   $90,355,131   $80,216,816  
Liabilities and Shareholders' Equity  
     Deposits:  
         Noninterest-bearing deposits   $10,909,953   $7,864,338  
         Savings and interest checking    4,217,404    3,071,551  
         Money rate savings    20,231,596    17,188,942  
         Certificates of deposit and other time deposits    25,936,345    23,155,185  
                 Total deposits    61,295,298    51,280,016  
     Short-term borrowed funds    6,294,995    5,396,959  
     Long-term debt    9,837,910    13,587,841  
     Accounts payable and other liabilities    2,712,096    2,564,086  
                 Total liabilities    80,140,299    72,828,902  
     Shareholders' equity:  
         Preferred stock, $5 par, 5,000,000 shares authorized, none issued or                
             outstanding at September 30, 2003 or at December 31, 2002    --    --  
         Common stock, $5 par, 1,000,000,000 shares authorized;  
             548,886,598 issued and outstanding at September 30, 2003, and  
             470,452,260 issued and outstanding at December 31, 2002    2,744,433    2,352,261  
         Additional paid-in capital    3,152,668    793,123  
         Retained earnings    4,180,674    3,912,320  
         Unvested restricted stock    (355 )  (499 )
         Accumulated other comprehensive income, net of deferred income  
             taxes of $92,510 at September 30, 2003, and $208,008 at December 31, 2002    137,412    330,709  
                 Total shareholders' equity    10,214,832    7,387,914  
                 Total liabilities and shareholders' equity   $90,355,131   $80,216,816  

The accompanying notes are an integral part of these consolidated financial statements.


BB&T Corporation          Page 2          Third Quarter 2003 Form 10-Q



BB&T CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Dollars in thousands, except per share data)

For the Three Months Ended For the Nine Months Ended
September 30, September 30,
2003 2002 2003 2002
Interest Income                    
       Interest and fees on loans and leases     $ 920,451   $ 881,761   $ 2,609,083   $ 2,582,257  
       Interest and dividends on securities    176,319    243,312    584,553    742,596  
       Interest on short-term investments    1,798    1,922    5,343    5,969  
           Total interest income    1,098,568    1,126,995    3,198,979    3,330,822  
 
Interest Expense  
       Interest on deposits    184,168    254,248    584,297    772,037  
       Interest on short-term borrowed funds    14,651    24,140    43,809    77,053  
       Interest on long-term debt    93,291    146,515    368,817    442,343  
           Total interest expense    292,110    424,903    996,923    1,291,433  
 
Net Interest Income    806,458    702,092    2,202,056    2,039,389  
       Provision for loan and lease losses    65,000    64,000    189,500    179,000  
Net Interest Income After Provision for Loan and Lease Losses    741,458    638,092    2,012,556    1,860,389  
 
Noninterest Income  
       Service charges on deposits    121,981    104,754    315,404    296,790  
       Mortgage banking income (loss)    117,463    (88,343 )  144,724    (30,261 )
       Trust income    31,871    27,388    84,128    74,713  
       Investment banking and brokerage fees and commissions    65,306    47,912    177,309    156,844  
       Insurance commissions    103,592    80,401    293,750    225,818  
       Bankcard fees and merchant discounts    23,348    17,584    58,896    48,400  
       Other nondeposit fees and commissions    49,964    36,561    131,458    101,967  
       Securities gains (losses), net    (29,127 )  135,519    114,607    168,592  
       Other income    27,705    31,583    97,844    92,911  
           Total noninterest income    512,103    393,359    1,418,120    1,135,774  
 
Noninterest Expense  
       Personnel expense    412,350    323,119    1,132,548    947,634  
       Occupancy and equipment expense    97,352    85,550    270,704    253,689  
       Amortization of intangibles    20,990    7,073    34,550    17,682  
       Professional services    17,309    17,958    50,921    50,516  
       Merger-related and restructuring charges    22,820    12,694    38,324    28,867  
       Loss on early extinguishment of debt    384,898    --    384,898    --  
       Other expense    161,247    130,779    460,029    367,504  
           Total noninterest expense    1,116,966    577,173    2,371,974    1,665,892  
 
Earnings  
       Income before income taxes and cumulative effect of                            
           change in accounting principle    136,595    454,278    1,058,702    1,330,271  
       Provision for income taxes    20,704    126,121    298,826    374,297  
       Income before cumulative effect of change in accounting principle    115,891    328,157    759,876    955,974  
       Cumulative effect of change in accounting principle    --    --    --    9,780  
       Net income   $115,891   $328,157   $759,876   $965,754  
 
Per Common Share  
       Basic Earnings:  
           Income before cumulative effect of change in accounting principle   $.21   $.69   $1.53   $2.02  
           Cumulative effect of change in accounting principle    --    --    --    .02  
           Net income   $.21   $.69   $1.53   $2.04  
 
       Diluted Earnings:  
           Income before cumulative effect of change in accounting principle   $.21   $.68   $1.51   $2.00  
           Cumulative effect of change in accounting principle    --    --    --    .02  
           Net income   $.21   $.68   $1.51   $2.02