Using ablack inkpen, mark your votes with anXas shown in this example. Please do not write outside the designated areas. X 02O8CC 1 U P X +Special Meeting Proxy Card.C Authorized Signatures — This section must be completed for your vote to be counted. — Date and Sign BelowPlease sign exactly as name(s) appears hereon. Joint owners should each sign. When signing as attorney, executor, administrator, corporate officer, trustee, guardian, or custodian, please give full title. Date (mm/dd/yyyy) — Please print date below. Signature 1 — Please keep signature within the box. Signature 2 — Please keep signature within the box. +Change of Address— Please print your new address below.Comments— Please print your comments below.B Non-Voting Items A Proposals — The Board of Directors recommends a vote “FOR” each of the proposals listed. Meeting AttendanceMark the box to the right if you plan to attend the Special Meeting.IMPORTANT SPECIAL MEETING INFORMATIONFor Against Abstain1. Approval of the Agreement and Plan of Merger and Reorganization, dated as of June 9, 2017, by and between First South Bancorp, Inc. (“First South”) and Carolina Financial Corporation (“Carolina Financial”), as it may be amended from time to time, under which First South will merge with and into Carolina Financial, a copy of which is included as Annex A to the joint proxy statement/prospectus. 3. Approval of the adjournment of the Carolina Financial special meeting to a later date or dates, if necessary or appropriate, to solicit additional proxies in the event there are not sufficient votes at the time of the special meeting to approve proposals 1 and 2 listed above.For Against Abstain2. Approval of the issuance of shares of Carolina Financial common stock, $0.01 par value per share, to stockholders of First South in connection with the merger. 4. In their discretion, the proxies are authorized to vote on such other business as may properly come before the special meeting or any adjournment of the special meeting. MMMMMMMMMMMM MMMMMMMMMMMMMMM 000000000.000000 ext 000000000.000000 ext 000000000.000000 ext 000000000.000000 ext 000000000.000000 ext 000000000.000000 ext 000004 MR A SAMPLE DESIGNATION (IF ANY) ADD 1 ADD 2 ADD 3 ADD 4 ADD 5 ADD 6 ENDORSEMENT_LINE______________ SACKPACK_____________ MMMMMMM 3 4 6 8 9 6 1 MR A SAMPLE (THIS AREA IS SET UP TO ACCOMMODATE 140 CHARACTERS) MR A SAMPLE AND MR A SAMPLE AND MR A SAMPLE AND MR A SAMPLE AND MR A SAMPLE AND MR A SAMPLE AND MR A SAMPLE AND MR A SAMPLE AND MMMMMMMMM C 1234567890 J N T C1234567891234 5678 9012 345qIF YOU HAVE NOT VOTED VIA THE INTERNET OR TELEPHONE, FOLD ALONG THE PERFORATION, DETACH AND RETURN THE BOTTOM PORTION IN THE ENCLOSED ENVELOPE.qElectronic Voting Instructions Available 24 hours a day, 7 days a week!Instead of mailing your proxy, you may choose one of the voting methods outlined below to vote your proxy. VALIDATION DETAILS ARE LOCATED BELOW IN THE TITLE BAR.Proxies submitted by the Internet or telephone must be received by 11:59 p.m., Eastern Time, on October 23, 2017. Vote by Internet• Go towww.investorvote.com/CARO• Or scan the QR code with your smartphone • Follow the steps outlined on the secure websiteVote by telephone• Call toll free 1-800-652-VOTE (8683) within the USA, US territories & Canada on a touch tone telephone • Follow the instructions provided by the recorded message
SPECIAL MEETING OF STOCKHOLDERS — October 24, 2017 The undersigned hereby appoints W. Scott Brandon and Robert G. Clawson, Jr. with full powers of substitution, to act as attorneys and proxies for the undersigned to vote all shares of capital stock of Carolina Financial Corporation (the “Company”) which the undersigned is entitled to vote at the Special Meeting of Stockholders (the “Meeting”) to be held at the Charleston Country Club, 1 Country Club Drive, Charleston, SC 29412, at 4:00 p.m. and at any and all adjournments and postponements thereof.THIS PROXY WILL BE VOTED AS DIRECTED, BUT IF NO INSTRUCTIONS ARE SPECIFIED, THIS PROXY WILL BE VOTED FOR EACH OF THE PROPOSALS AND EACH OF THE NOMINEES LISTED ABOVE. IF ANY OTHER BUSINESS IS PRESENTED AT THE MEETING, THIS PROXY WILL BE VOTED BY THOSE NAMED IN THIS PROXY IN THEIR BEST JUDGMENT. AT THE PRESENT TIME, THE BOARD OF DIRECTORS KNOWS OF NO OTHER BUSINESS TO BE PRESENTED AT THE MEETING. Proxy — Carolina Financial CorporationqIF YOU HAVE NOT VOTED VIA THE INTERNET OR TELEPHONE, FOLD ALONG THE PERFORATION, DETACH AND RETURN THE BOTTOM PORTION IN THE ENCLOSED ENVELOPE.