Bank of the Carolinas Reports Second Quarter Results

Bank of the Carolinas Reports Second Quarter Results 


MOCKSVILLE, N.C., July 23  /PRNewswire-FirstCall/ -- Bank of the Carolinas
(OTC:BCAR) (BULLETIN BOARD: BCAR) , today reported operating results for the
second quarter ended June 30, 2004.

The Bank reported net income of $376,081 or $.15 per share on a diluted basis
for the second quarter compared to $323,672 or $.16 per share on a diluted
basis for the same period in 2003.  This represents a 14.9% increase in
operating profit.

Net interest income increased 13.1% during the second quarter compared to the
corresponding period in 2003; non-interest income increased 30.5% and
non-interest expense increased 12.0%.  The Bank reserved $310,000 for possible
loan losses compared to $120,000 for the same period in 2003.

At the end of the quarter total assets were $243.8 million, an increase of
$32.9 million. When compared to June 30, 2003, this is an increase of 15.6%.
Net loans increased $21.4 million or 12.7% while deposits grew $23.9 million or
13.5% for the same period.

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.  The opening of this office
is anticipated in September 2004.

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. Additional information about Bank of the Carolinas is available
on its website at http://www.bankofthecarolinas.com/ .

    For further information contact:

     J. A. Bush
     Chief Financial Officer
     Bank of the Carolinas
     135 Boxwood Village Drive
     Mocksville, North Carolina 27028
     [phone]


DATASOURCE: Bank of the Carolinas



CONTACT:  J. A. Bush, Chief Financial Officer of Bank of the Carolinas,

[phone]



Web site: http://www.bankofthecarolinas.com/ 

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