Bank of the Carolinas Reports Third Quarter Results

Bank of the Carolinas Reports Third Quarter Results 


MOCKSVILLE, N.C., Nov. 4  /PRNewswire-FirstCall/ -- Bank of the Carolinas
(OTC:BCAR) (BULLETIN BOARD: BCAR)  today reported operating results for the
third quarter ended September 30, 2004.

The Bank reported net income of $460,738 or $.19 per share on a diluted basis
for the third quarter compared to $416,536 or $.20 per share on a diluted basis
for the same period in 2003.  This represents a 10.6% increase in operating
profit.  Year to date income increased to $1,164 or $.50 per share on a diluted
basis from $1,038 or $.54 per share for 2003.

Net interest income increased 18.1% during the third quarter compared to the
corresponding period in 2003; non-interest income increased 1.5% and non-
interest expense increased 21.6%.  Net interest income for the year to date
increased 16.7%. Non-interest income year to date increased 10.3% and non-
interest expense increased 17.8%.  The Bank reserved $150,000 for possible loan
losses compared to $120,000 for the same period in 2003.  Provision for
possible loans losses year to date increased from $360 to $610.

Total assets grew $34.4 million to $266.7 million year to date, which is an
increase of 14.8%. Net loans increased $25.5 million or 14.0% year to date,
while deposits grew $25.2 million or 12.9%.

On August 28, the Bank moved into its Operations Administrative building
located in Advance and on August 30 the Bank opened it eighth office in
Lexington.

Bank of the Carolinas is a state chartered bank headquartered in Mocksville, NC
with offices in Advance, Asheboro, Carthage, Cleveland, Harrisburg, Landis, and
Lexington.

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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