Carolina National Corporation Announces Results for the Second Quarter and First Six Months of 2007

COLUMBIA, S.C., Aug. 9  /PRNewswire-FirstCall/ -- Carolina National Corporation, (NASDAQ:CNCP) parent of Carolina National Bank and Trust Company, today announced its consolidated financial results for the second quarter and first six months of 2007:

                                       Unaudited               Audited
                                     June 30, 2007          Dec. 31, 2006
  Condensed Balance Sheet
  ($s in thousands)

        Assets
   Cash equivalents                   $  20,453                $ 12,036
   Investment Securities                  1,276                     644
   Loans, net                           200,406                 192,350
   Other Assets                           3,531                   3,882
   Total Assets                        $225,666                $208,912

        Liabilities
   Deposits                            $192,462                $175,582
   Other Liabilities                      1,593                   2,737
    Total Liabilities                  $194,055                $178,319

        Equity
   Shareholders' Equity               $  31,611                $ 30,593
   Total Liabilities and
        Shareholders' Equity           $225,666                $208,912



                                       Unaudited             Unaudited
                                     June 30, 2007         June 30, 2006
   Year To Date Income Statement
   ($s in thousands)
   Net Interest Income                $   4,292              $  3,787
   Provision for Loan Losses                 92                   251
   Net Interest Income after
        Provision for Loan Losses         4,200                 3,536
   Noninterest Income                       183                   207
   Noninterest Expense                    2,835                 2,249
   Income Tax Expense                       561                   505
        Net Income                    $     987              $    989



                                       Unaudited             Unaudited
                                     June 30, 2007         June 30, 2006

   Quarter To Date Income Statement
    ($s in thousands)
   Net Interest Income                $   2,143              $  1,993
   Provision for Loan Losses                 92                   100
   Net Interest Income after
        Provision for Loan Losses         2,051                 1,893
   Noninterest Income                        81                   110
   Noninterest Expense                    1,446                 1,130
   Income Tax Expense                       246                   295
        Net Income                     $    440              $    578




Roger Whaley, President and Chief Executive Officer, reported net income that was flat for the first six months and second quarter income for 2007 decreased somewhat as compared to the same periods in 2006.  Mr. Whaley stated that the Company was continuing to increase its total deposits and assets in the face of slowing general market conditions that have compressed the net interest margin.  We continue to implement our branch network growth strategy and absorb the related marketing and infrastructure costs.  The Company has successfully expanded our loan portfolio and we have maintained high quality without the need to increase loan loss reserves.

The Company continues to focus its efforts in the Columbia and Lexington markets of South Carolina and management believes that these markets continue to offer strong growth opportunities.  Plans are moving forward to open the Company's fifth full service branch, which will be located in the Lexington market, during the first quarter of 2008. 

DATASOURCE: Carolina National Corporation



CONTACT: Roger Whaley of Carolina National Corporation, [phone] 



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

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