BB&T announces plan to repay government investment; Plan includes capital issuance,...

BB&T announces plan to repay government investment; Plan includes capital
issuance, temporary dividend reduction

WINSTON-SALEM, N.C., May 11 /PRNewswire-FirstCall/ -- BB&T Corporation (NYSE:
BBT) today announced a plan to repay all of its preferred stock and warrants
invested in the company through the U.S. Treasury's TARP Capital Purchase
Program.

"I am pleased to announce that BB&T is poised to be one of the first large
financial institutions to repay the government investment," said President and
Chief Executive Officer Kelly S. King. "Following the favorable results of the
government's rigorous stress test and consistent with our own internal
projections that BB&T has sufficient capital under an adverse economic
scenario, our board of directors has approved a plan that effectively
positions BB&T for the long term. After consultations with our regulators and,
subject to their approval, we will use the proceeds of a common stock
issuance, in addition to other funds, to repay the government's investment in
BB&T."

BB&T's board of directors yesterday also declared the third quarter 2009
dividend of $.15 per share, a 68% reduction compared to the third quarter last
year. The dividend will be paid August 3 to shareholders of record as of July
10. The action to reduce the dividend preserves approximately $725 million in
capital on an annualized basis.

"Our board carefully weighed many factors in making this decision," said King.
"We have a long and proud history of paying dividends and understand how
important the dividend is to our shareholders, so this decision to temporarily
reduce the dividend was extremely difficult for the board and, for me
personally, it marks the worst day in my 37 year career.

"However, we firmly believe this action is in the long-term best interests of
our shareholders and our company because of the risk and uncertainty
associated with being a TARP participant. In addition, our current earnings,
while superior to our peers, are not likely to justify our $.47 dividend in
the near term. When market conditions improve and our earnings provide for an
increase in the dividend, we are committed to increasing it accordingly.

"This capital plan meets all of our critical stated objectives, which include
maintaining a very strong capital position throughout the economic downturn,
repaying the government investment as soon as possible and solidifying our
position to benefit from the opportunities we predict will be available to
stronger banks as economic conditions improve."

BB&T's tier 1 common ratio at March 31 was 7.1% and the company's tier 1 risk
based capital ratio was 12.1%.

"BB&T remains an industry leader with very strong earnings power and capital
levels. Our regulatory capital levels will remain well above regulatory
minimums to be well capitalized following the implementation of our capital
plan. I am extremely proud of our company's performance and remain absolutely
convinced that our best days are ahead."

At March 31, BB&T had $143.4 billion in assets and operated 1,504 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.

For additional information about BB&T's financial performance, company news,
products and services, please visit our Web site at www.BBT.com.

Regulatory capital ratios are preliminary.

This press release contains certain forward-looking statements as defined in
the Private Securities Litigation Reform Act of 1995. These statements may
address issues that involve significant risks, uncertainties, estimates and
assumptions made by management. Actual results may 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 may affect BB&T's
forward-looking statements. BB&T undertakes no obligation to revise these
statements following the date of this press release.

SOURCE BB&T Corporation

ANALYSTS, Tamera Gjesdal, Senior Vice President, Investor Relations,
+1-336-733-3058, Daryl Bible, Sr. Exec. Vice President, Chief Financial
Officer, +1-336-733-3031, MEDIA, Bob Denham, Senior Vice President, Corporate
Communications, +1-336-733-1475