Exhibit 99.2

March 11, 2005


Name of Shareholder
Address of Shareholder


Dear Valued Investor,

We are proud to report  that in the  fourth  quarter of 2004  Carolina  National
realized it's first quarterly  profit since opening in July 2002. Net income for
the fourth  quarter was $21,000  compared to a net loss of $334,000 for the same
period last year.

The Company's loss for the year ended December 31, 2004 was $433,000 or $.30 per
share compared to a loss of $1,211,000 or $.85 per share in 2003. As of December
31, 2004,  the allowance for loan losses was  $1,300,000 or 1.47% of outstanding
loans.

Although our stock is thinly  traded,  you will be pleased to know that the last
known  trade in our stock was at  $13.50.  This is 35  percent  higher  than the
initial share price of $10.00. While we do not know of any potential sellers, we
are frequently contacted by potential buyers.

We are one of the fastest-growing banks in South Carolina. We have achieved this
growth based on a safe, sound, conservative management philosophy.

Here are some other  measures of financial  success that  illustrate  our growth
from December 31, 2003 to December 31 2004:

o    Total assets grew from $63 million to $99 million, a 57% increase.

o    Total loans grew from $55 million to $90 million, a 64% increase.

o    Deposits grew from $51 million to $86 million, a 70% increase.

o    Net interest spread grew from 2.18 % to 2.89%.

o    Net interest margin grew from 2.86 to 3.34%.

Our performance has been sound in all areas. We have controlled general expenses
with prudent, locally based decision-making,  and we have continued to develop a
management  culture based on high  motivation,  superior  customer service and a
strong sense of teamwork. In addition to our financial growth, we are continuing
to develop and nurture the skills of our team of banking experts, which we feel,
is already one of the strongest in our service area.

We continue to provide convenience to customers at our office on Main Street and
at our branch in Forest Acres. In order to better serve our customers,  we added
a Drive-in Window  Facility,  with an ATM, located a block from our main office.
We recently  established a Loan Production Office to serve the growing Lexington
County communities of St. Andrews, Irmo and Chapin.



As we move forward in 2005, our intent is not only to keep doing the things that
have made us  successful,  but also to do them even better.  We will continue to
strive to provide superior personal service and convenience for our customers.

In order to assist you in keeping  informed  about  Carolina  National,  we have
enclosed  information  on  how  you  can  access  our  Securities  and  Exchange
Commission  information  on the internet.  You are also invited to visit our Web
site at "www.carolinanationalbank.com" for additional general information.

Thank you for your confidence and support. We will continue to update you on the
performance of your bank, and if you have any questions, please let us know.


Sincerely,




s/Roger B. Whaley                                    s/Robert E. Staton
- ----------------------                               --------------------------
Roger B. Whaley                                      Robert E. Staton
President/ CEO                                       Chairman