Bank of the Carolinas Reports First Quarter Results

Bank of the Carolinas Reports First Quarter Results 


MOCKSVILLE, N.C., May 13  /PRNewswire-FirstCall/ -- Bank of the Carolinas 
(BULLETIN BOARD: BCAR) , today reported operating results for the first quarter
ended March 31, 2004.

The Bank reported net income of $327,268 or $.13 per share on a diluted basis
for the first quarter compared to $297,695 or $.15 per share on a diluted basis
for the same period in 2003.  This represents a 10.0% increase in operating
profit.

Net interest income increased 16.2% during the first quarter compared to the
corresponding period in 2003; non-interest income increased 20.6% and non-
interest expense increased 19.4%.  The Bank reserved $150,000 for possible loan
losses compared to $120,000 for the same period in 2003.

At the end of the quarter total assets were $236.6 million, an increase of $31
million.  Net loans increased $27 million or 16.9% while deposits grew $21
million or 12.5%.

Bank of the Carolinas is a state chartered bank headquartered in Mocksville, NC
with offices in Advance, Asheboro, Carthage, Cleveland, Harrisburg, Landis, and
has made application to state and federal regulators to open a full service
office at 119 West Center Street in Lexington, NC.

Common stock of the bank is traded on the OTC Bulletin Board under the Symbol
BCAR.  Market Makers include Scott & Stringfellow, Inc., Monroe Securities, and
Baird, Patrick and Company.

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. Bank of the Carolinas
undertakes no obligation to revise these statements following the date of this
press release.

   For further information contact:
   Robert E. Marziano, President
   Bank of the Carolinas
   135 Boxwood Village Drive
   Mocksville, North Carolina 27028
   [phone]


DATASOURCE: Bank of the Carolinas



CONTACT:  Robert E. Marziano, President of Bank of the Carolinas,

[phone]

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