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 (336) 751-5755 DATASOURCE: Bank of the Carolinas CONTACT: J. A. Bush, Chief Financial Officer of Bank of the Carolinas, +1-336-751-5755 Web site: http://www.bankofthecarolinas.com/

Copyright