Bank of the Carolinas Reports Fourth Quarter Results Mocksville, N.C., March 9 /PRNewswire-FirstCall/ -- Bank of the Carolinas (BULLETIN BOARD: BCAR) , reports net income in the fourth quarter 2003 of $339 thousand or $.14 per share on a diluted basis compared to $330 thousand or $.17 per share the fourth quarter of 2002. Net income for the year 2003 was $1.38 million compared to $1.33 million for 2002. Income before taxes increased 53.9% from $1.33 million for 2002 to $2.05 million for 2003. Prior to 2003 the Bank did not incur tax expense due to losses during its startup period. For the twelve months of 2003, net interest income increased 21%; non-interest income increased 4.7% and non- interest expense increased 13.7%. For the year, return on average assets was .65% and return on average shareholders' equity was 7.75%. Assets as of December 31, 2003 were $232.3 million compared to $194.5 million at December 31, 2002. This represents an increase of 19.4%. Net loans increased $30.4 million or 20.2% while deposits grew $34.6 million or 21.6%. The Bank previously reported it declared December 17, 2003 a cash dividend of $.05 per share of its common stock. The dividend was paid to shareholders on January 15, 2004. Bank of the Carolinas is a state chartered bank headquartered in Mocksville, NC with offices in Advance, Asheboro, Carthage, Cleveland, Harrisburg and Landis. 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: J. A. Bush Chief Financial Officer Bank of the Carolinas 135 Boxwood Village Drive Mocksville, North Carolina 27028 (336) 751-5755 DATASOURCE: Bank of the Carolinas CONTACT: J. A. Bush, Chief Financial Officer of Bank of the Carolinas, +1-336-751-5755

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