Bank of the Carolinas Reports Third Quarter Results MOCKSVILLE, N.C., Oct. 29 /PRNewswire-FirstCall/ -- Bank of the Carolinas (BULLETIN BOARD: BCAR) , reports net income in the third quarter 2003 was $417 thousand or $.20 per share on a diluted basis compared to $391 thousand or $.20 per share the third quarter of 2002. Net income for the first nine months of 2003 was $1.04 million compared to $1.0 million for the same period 2002. Income before tax increased 58.4% from $1.0 million for the first nine months of 2002 to $1.59 million in 2003. Prior to 2003 the bank did not incur tax expense due to losses during its startup period. For the first nine months of 2003, net interest income increased 21.5%; non-interest income increased 31.8% and non-interest expense increased 15.9%. On an annualized basis, return on average assets was .67% and return on average equity was 8.46%. Assets as of September 30, 2003 were $214.8 million compared to $194.5 million at December 31, 2002. This represents an increase of 10.5%. Net loans increased $23.4 million or 15.6% while deposits grew $17.5 million or 10.9%. The Bank successfully completed a stock offering on September 15, 2003 with the sale of 395,137 shares for net proceeds after expenses of $5.1 million. 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 Nasdaq 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 more information contact: J. A. Bush Chief Financial Officer 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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