MidCarolina Financial Corporation Announces Results for 1st Quarter 2009

BURLINGTON, N.C., April 29 /PRNewswire-FirstCall/ -- MidCarolina Financial
Corporation (OTC Bulletin Board: MCFI) today reported record total assets of
$552.9 million at March 31, 2009, an increase of $63.1 million, or 13%, when
compared to the $489.8 million reported at March 31, 2008. Total loans, net of
mortgage loans held-for-sale, were a record $447.4 million at March 31, 2009,
an increase of $60.5 million, or 16%, from the level a year ago. Total
deposits at the end of the quarter were $480.8 million, an increase of $90.2
million, or 23%, when compared to 2007 1st quarter balances.

MidCarolina reported net income available to common shareholders of $341,000
for the quarter ended March 31, 2009, a decrease of 58% when compared to the
$812,000 reported for the first quarter of 2008. Diluted earnings per common
share decreased to $0.07 for first quarter 2009, compared to $0.16 in 2008.
Commenting on these results, Charles T. Canaday, Jr., President and CEO, said,
"The first quarter of 2009 has been a challenging period for everyone. Our
industry has had to contend with the uncertainties caused by the global
economic and financial turmoil. We are pleased with our continuing
profitability and margin improvement. We continue to perform as one of the
most efficiently run community banks in the state. We chose to increase our
provision to loan loss reserves by $910,000 in the first quarter 2009 compared
to the first quarter of 2008, because of lagging performance trends resulting
from these difficult economic times. We are proud of the growth MidCarolina
achieved in our existing markets of Alamance and Guilford Counties. Our client
base continues to expand as commercial and retail businesses choose
MidCarolina as their financial partner."
MidCarolina Bank provides a complete line of banking services to individuals
and businesses through its six full-service banking offices and two
limited-service offices located in the cities of Burlington, Graham Greensboro
and Mebane, North Carolina. MidCarolina Bank, a wholly owned subsidiary of
MidCarolina Financial Corporation, also provides the Bank's markets with
access to personalized full brokerage services through a separate registered
broker dealer for stocks, bonds and mutual funds and an array of insurance
products.
Disclaimer Regarding "Forward Looking Statements"
Statements in this Report and its exhibits relating to plans, strategies,
economic performance and trends, projections of results of specific activities
or investments, expectations or beliefs about future events or results, and
other statements that are not descriptions of historical facts, may be
forward-looking statements as defined in Section 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking
information is inherently subject to risks and uncertainties, and actual
results could differ materially from those currently anticipated due to a
number of factors which include, but are not limited to, factors discussed in
our Annual Report on Form 10-K and in other documents we file with the
Securities and Exchange Commission from time to time. Copies of those reports
are available directly through the SEC's Internet website at www.sec.gov or
through our Internet website at www.midcarolinabank.com. Forward-looking
statements may be identified by terms such as "may," "will," "should,"
"could," "expects," "plans," "intends," "anticipates," "believes,"
"estimates," "predicts," "forecasts," "potential" or "continue," or similar
terms or the negative of these terms, or other statements concerning opinions
or judgments of our management about future events. Factors that could
influence the accuracy of forward-looking statements include, but are not
limited to, pressures on financial institutions resulting from current and
future conditions in the credit and capital markets, the financial success or
changing strategies of our customers, actions of government regulators, the
level of market interest rates, and changes in general economic conditions and
real estate values in our banking market (particularly changes that affect our
loan portfolio, the abilities of our borrowers to repay their loans, and the
values of loan collateral). Although we believe that the expectations
reflected in the forward-looking statements are reasonable, they represent our
management's judgments only as of the date they are made, and we cannot
guarantee future results, levels of activity, performance or achievements. As
a result, readers are cautioned not to place undue reliance on these
forward-looking statements. All forward-looking statements attributable to us
are expressly qualified in their entirety by the cautionary statements in this
paragraph. We have no obligation, and do not intend, to update these
forward-looking statements.

PERFORMANCE SUMMARY
MIDCAROLINA FINANCIAL CORPORATION
(Dollars in thousands, except per share and share data)

For the
Three Months Ended March 31,
2009 2008 %
(Unaudited) (Unaudited) Change

SUMMARY STATEMENTS OF OPERATIONS
Interest income $6,836 $7,585 -9.9%
Interest expense 3,001 4,318 -30.5%

Net interest income 3,835 3,267 17.4%
Provision for loan
losses 1,135 225 404.4%
Net interest income
after provision for
loan losses 2,700 3,042 -11.2%
Noninterest income 762 731 4.2%
Noninterest expense 2,815 2,388 17.9%
Income before income
tax expense 647 1,385 -53.3%
Provision for income
taxes 202 469 -56.9%
Net income 445 916 -51.4%
Dividends on preferred
stock (104) (104) -
Net income available
to common
shareholders $341 $812 -58.0%

PER SHARE DATA
Earnings per common
share, basic $0.07 $0.17 -58.8%
Earnings per common
share, diluted 0.07 0.16 -56.3%

PERFORMANCE AND ASSET QUALITY RATIOS
Return on average
assets 0.33% 0.77%
Return on average
common equity 4.24% 10.92%
Net yield on earning
assets (taxable
equivalent) 2.98% 2.85%
Average equity to
average assets 6.86% 7.31%
Allowance for loan
losses as a percentage
of total loans, end of
period 1.39% 1.20%
Non-performing assets
to total assets, end
of period 1.54% 0.26%
Ratio of net charge-
offs to average loans
outstanding 0.13% 0.01%

As of March 31,
2009 2008 %
(Unaudited) (Unaudited) Change

SELECTED BALANCE SHEET DATA
End of period balances
Total loans, net of
mortgages held-for-
sale $447,389 $386,882 15.6%
Allowance for loan
losses 6,198 4,650 33.3%
Loans, net of
allowance for loan
losses 441,191 382,232 15.4%
Securities, available
for sale 62,063 70,304 -11.7%
Federal funds sold &
interest-earning
deposits 21,187 10,443 102.9%
Total Assets 552,926 489,845 12.9%

Deposits:
Noninterest-bearing
deposits 44,829 30,904 45.1%
Interest-bearing
demand and savings 111,859 85,911 30.2%
CD's and other time
deposits 324,139 273,845 18.4%
Total Deposits 480,827 390,660 23.1%
Borrowed Funds 25,000 53,000 -52.8%
Junior Subordinated
Debentures 8,764 8,764 0.0%
Total interest-bearing
liabilities 469,762 421,520 11.4%
Shareholders' Equity 36,909 35,454 4.1%

SOURCE MidCarolina Financial Corporation

Charles T. Canaday, Jr., President and CEO, +1-336-538-1600; Chris Redcay,
Sr. Vice President and CFO, +1-336-538-1600, both of MidCarolina Financial
Corporation