Carolina Alliance Bank (“CAB”) (OTCBB:CRLN and OTCQB:CRLN) and Forest Commercial Bank (“FCB”) jointly announced today that the previously announced merger of the two banks was completed on April 5, 2014 after receiving all shareholder and regulatory approvals. Today the Forest Commercial offices in Asheville and Hendersonville and its loan production office in Charlotte opened as offices of Carolina Alliance Bank.

Upon completion of the merger, FCB shareholders received 0.755 newly issued shares of CAB in exchange for each outstanding FCB share and own approximately 40% of the Bank. The Bank’s total assets now stand at approximately $400 million.

“Both Carolina Alliance and Forest Commercial remain committed to delivering the same exceptional customer service to the communities in which we operate,” said John Poole, Chief Executive Officer of CAB. “As we grow, we continue to stay true to our philosophy of serving our markets through local bankers making local decisions.” John Kimberly, CAB President and former President and Chief Executive Officer of FCB, noted “The advantages of our combined financial institution include a significantly higher lending limit, expanded product offerings, and the ability to generate efficiencies, which we believe in turn will increase profitability.” Mr. Kimberly added, “With our expanding footprint and the many benefits to be recognized in this merger, we believe that our bank is well positioned for future success.”

CAB began operations in January 2007 and is headquartered in Spartanburg, South Carolina. FCB was founded in March 2008 and has been headquartered in Asheville, North Carolina. In addition to its Spartanburg main office, CAB recently established a branch office in Seneca, South Carolina and expects to open a branch office in Anderson, South Carolina later this month. Through the former Forest Commercial offices, the combined bank now serves western North Carolina from offices in Asheville and Hendersonville and a loan production office in Charlotte. Certain executive and operating functions also are maintained in the Asheville office. More information about CAB can be found on its website at www.carolinaalliancebank.com.

Carolina Alliance was advised in the transaction by FIG Partners, LLC as financial advisor and Nelson Mullins Riley & Scarborough LLP as legal counsel. Forest Commercial was advised by Banks Street Partners, LLC as financial advisor and Wyrick Robbins Yates & Ponton LLP as legal counsel.

Note

Certain statements in this news release contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future plans and expectations, and are thus prospective. Such forward-looking statements are subject to risks, uncertainties, and other factors, such as the businesses of Carolina Alliance Bank and Forest Commercial Bank may not be integrated successfully or such integration may take longer to accomplish than expected, the expected cost savings and any revenue synergies from the merger may not be fully realized within the expected timeframes, disruption from the merger may make it more difficult to maintain relationships with clients, associates, or suppliers, a continued downturn in the economy, competitive pressures among depository and other financial institutions, the rate of delinquencies and amounts of charge-offs, the level of allowance for loan loss, the rates of loan growth, or adverse changes in asset quality in our loan portfolio, and changes in the U.S. legal and regulatory framework, including the effect of recent financial reform legislation on the banking industry, any of which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements.

Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. Therefore, we can give no assurance that the results contemplated in the forward-looking statements will be realized. The inclusion of this forward-looking information should not be construed as a representation by us or any person that the future events, plans, or expectations contemplated by us will be achieved. All subsequent written and oral forward-looking statements concerning us or any person acting on our behalf is expressly qualified in its entirety by the cautionary statements above. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, to reflect circumstances or events that occur after the date the forward-looking statements are made.

Carolina Alliance BankJohn S. Poole, 864-542-2615orForest Commercial BankJohn D. Kimberly, 828-255-5711