Bank of the Carolinas

Landis, NC · Cert 32366

FDIC

Q3 2001

$45.4MAssets

$40.5MLoans

$34.1MDeposits

$8.1MEquity

Deposit mix

Executive Summary

Earnings: ROA of 0.20%, down 18 bps year over year; NIM at 2.82%.
Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net charge-offs at 0.00%.
Funding: loans stand at 118.85% of deposits as of Q3 2001.

Return on Assets (YTD, annualized)

0.20%-18 bps YoY

Net Interest Margin (YTD, annualized)

2.82%

Efficiency Ratio (YTD, annualized)

78.10%

Tier 1 Leverage Ratio

n/a

Year to date, annualized, through each quarter.

Metric	Q4 1999	Q1 2000	Q2 2000	Q3 2000	Q4 2000	Q1 2001	Q2 2001	Q3 2001	YoY Δ	Trend
Earnings
Return on Assets	0.22%	0.31%	0.34%	0.38%	0.41%	0.41%	-0.02%	0.20%	-18 bps
Return on Equity	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Net Interest Margin	n/a	n/a	n/a	n/a	n/a	3.11%	2.99%	2.82%	n/a
Efficiency Ratio	n/a	n/a	n/a	n/a	n/a	82.56%	79.92%	78.10%	n/a
Non-Interest Burden	n/a	n/a	n/a	n/a	n/a	2.47%	2.26%	2.07%	n/a
Growth
Asset Growth (YoY)	1.96%	-2.52%	-0.79%	3.35%	8.76%	22.49%	24.60%	34.56%	+3,121 bps
Loan Growth (YoY)	16.37%	33.51%	37.00%	30.99%	21.50%	30.65%	44.40%	62.02%	+3,103 bps
Deposit Growth (YoY)	14.52%	18.11%	9.93%	16.21%	20.89%	24.21%	28.57%	35.33%	+1,912 bps
Asset Quality
Nonperforming Loans / Loans	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0 bps
Net Charge-Offs / Loans	n/a	n/a	n/a	n/a	n/a	0.00%	0.00%	0.00%	n/a
Allowance / Loans	n/a	n/a	n/a	n/a	n/a	0.14%	0.53%	0.47%	n/a
Allowance Coverage of NPLs	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Capital
Tier 1 Leverage Ratio	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Total Risk-Based Capital	n/a	n/a	n/a	n/a	n/a	31.53%	28.01%	24.37%	n/a
Equity / Assets	n/a	n/a	n/a	n/a	n/a	20.95%	19.48%	17.87%	n/a
Liquidity & Funding
Loans / Deposits	94.95%	100.52%	101.84%	99.28%	95.43%	105.73%	114.38%	118.85%	+1,958 bps
Liquid Assets / Assets	0.00%	0.00%	0.00%	0.00%	0.00%	2.43%	1.82%	2.96%	+296 bps
CRE / Total Capital	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a