Carolina Fincorp, Inc. Announces First Quarter Results.

ROCKINGHAM, N.C.--(BUSINESS WIRE)--Nov. 4, 1999--

Carolina Fincorp, Inc., the parent holding company for Richmond Savings Bank, Inc., SSB, ("Bank") announced consolidated net income of $258,000, or $.15 per share, for the quarter ended September 30, 1999.

This compares with net income of $279,000, or $.16 per share, for same quarter in 1998. Net interest and non-interest income were up over the September 30, 1998 quarter but the increase was off-set by additional expenses related to the installation of new computer hardware and software, expenses of the new branch office in Laurinburg, N.C., and higher than anticipated expenses with the upcoming shareholder meeting.

Consolidated total assets increased from $111 million at September 30, 1998 to $120 million at September 30, 1999. Loans receivable grew from $87.7 million at September 30, 1998 to $92.8 million at September 30, 1999. Deposits increased from $93.9 million at September 30, 1998 to $102.7 million at September 30, 1999. Total stockholders' equity was $16.0 million at September 30, 1999 as compared with $15.6 million at September 30, 1998.

On October 18, 1999 the Board signed a definitive agreement with FNB Corp., the holding company for First National Bank and Trust Company of Asheboro, North Carolina. The terms of the agreement provide that FNB Corp. will issue .79 shares of its common stock for each share of Carolina Fincorp, Inc. common stock. The proposed merger would result in an institution with combined assets of approximately $500 million and a market capitalization in excess of $100 million. First National Bank and Trust operates twelve offices in Chatham, Montgomery and Randolph counties. The proposed merger would result in a company with 17 offices, operating in six mid-carolina counties.

The common stock of Carolina Fincorp, Inc. is qualified for quotation on the NASDAQ National Market under the symbol "CFNC".

This new release contains forward-looking statements and other forward-looking information. These estimates constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. As such, the estimates involve significant risks and uncertainties. Actual results may differ materailly due to such factors as: (1) revenues not meeting expectations; (2) costs being higher than expected; (3) competitive pressures among financial institutions increasing significantly; (4) general economic conditions being less favorable than anticipated; (5) adverse changes in the trading prices for equity in general or in Carolina Fincorp or FNB in particular, and (6) legislative or regulatory changes which have adverse effects.

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                        CAROLINA FINCORP, INC.
                    UNAUDITED FINANCIAL HIGHLIGHTS

                                      Three Months Ended September 30,
                                          1999             1998

Net earning                         $    258,000      $   279,000
Earnings per share                  $       0.15      $      0.16


                                       September 30,     September 30,
                                           1999              1998

Total assets                        $ 120,002,000     $ 110,960,000
Loans receivable                       92,754,000        87,666,000
Deposits                              102,717,000        93,851,000
Total stockholders' equity             15,961,000        15,625,000
Book value per share                $        8.53     $        8.20
Ratio of stockholders' equity to assets     13.30%            14.08%
Ratio of nonperforming assets to total
 assets                                       .46%              .10%