EXHIBIT 99.1

    Four Oaks Fincorp, Inc. Announces 2004 Fourth Quarter and Annual Results

    FOUR OAKS, N.C.--(BUSINESS WIRE)--Jan. 24, 2005--Four Oaks
Fincorp, Inc., (OTCBB:FOFN) the holding company for Four Oaks Bank &
Trust Company, today announced fourth quarter and annual results for
fiscal year 2004. Net income in the fourth quarter of 2004 was
$1,263,000, or $0.37 per share compared to $910,000, or $0.27 per
share during the comparable period of 2003, an increase of 39%. Net
income for the year ended December 31, 2004 of $4,375,000, or $1.29
per share, increased 50% over 2003 earnings of $2,918,000, or $0.87
per share. Return on average equity and return on average assets for
2004 were 12.45% and 1.16%, respectively. In 2004, the Company
increased annual dividends paid to its shareholders to $0.32 per
share, compared to $0.29 per share in 2003.
    The Company's net income for 2004 reflected continued improved
income and expense trends begun in 2003 as net interest income
(increased 23% from 2003 to 2004), non-interest income (increased 11%
from 2003 to 2004), and operating expenses (increased only 9% from
2003 to 2004). With prime rates having risen by 25 basis points in
each of the months of July, August, September, November and December
of 2004, over half of our loan portfolio repriced upward. Our deposit
rates have increased as well, but our utilization of wholesale funding
sources has kept our cost of funds from rising lock-step with the
prime rate increases. Our total interest income increased 15% and our
total interest expense decreased 2% from 2003 to 2004. We believe
improved pricing strategies, competitive products and services, and
cost containment initiatives enhanced our earnings in 2004.
    The Company's balance sheet growth continued in 2004. Total
deposits grew 16% in 2004 to $315,307,000. Net loans increased 15% to
$308,760,000. Shareholders' equity grew to $37,295,000, representing a
13% increase over 2003. Book value per share at December 31, 2004 was
$10.85 compared to $9.83 at December 31, 2003. Shareholders' equity as
a percentage of total assets remains high at 9.36%.
    With $398,500,000 in total assets, Four Oaks Fincorp, Inc. through
its wholly owned subsidiary, Four Oaks Bank & Trust Company, offers a
broad range of financial services through its offices in Four Oaks,
Clayton, Smithfield, Garner, Benson, Fuquay-Varina, Wallace, and Holly
Springs, North Carolina. Our newest offices, a branch in Harrells,
North Carolina and a Loan Production Office in Sanford, North
Carolina, both opened for business on January 10, 2005.

    CONTACT: Four Oaks Fincorp, Inc.
             Ayden R. Lee, Jr., President and Chief Executive Officer
             Nancy S. Wise, Senior Vice President and Chief Financial
             Officer, 919-963-2177