Exhibit 99.1 Four Oaks Fincorp, Inc. Announces 2005 Second Quarter Results FOUR OAKS, N.C.--(BUSINESS WIRE)--July 20, 2005--Four Oaks Fincorp, Inc., (OTCBB:FOFN) the holding company for Four Oaks Bank & Trust Company, today announced second quarter results for fiscal year 2005. Net income increased 34% in the second quarter of 2005 as compared to the same period of 2004. Net income was $1,317,000 or $0.38 per share for the quarter ended June 30, 2005, compared to $982,000 or $0.29 per share for the quarter ended June 30, 2004. For the six months ended June 30, 2005, net income was $2,493,000 or $0.72 per share, a 40% increase over the net income of $1,781,000 or $0.53 per share earned in the first six months of fiscal year 2004. Annualized return on average equity and return on average assets at June 30, 2005 were 12.90% and 1.19%, respectively, and increased from 10.38% and 0.98%, respectively, at June 30, 2004. The Company increased the level of dividends paid to its shareholders from the $0.08 per share that was paid in the second quarter of fiscal year 2004 to $0.09 per share paid in the second quarter of fiscal year 2005. Year to date dividends paid through June 30, 2005 were $0.18 per share, up from $0.16 as of June 30, 2004. All per share figures for fiscal year 2004 are adjusted for the effect of the five-for-four stock split effected in October 2004. Improved earnings trends continued in the second quarter of 2005, when compared to the same period of 2004, as evidenced by a 35% increase in net interest income after the provision for loan losses, from $3,392,000 to $4,564,000. Operating expenses increased 19% in the second quarter of fiscal year 2005 to $3,408,000, as compared to the same period of fiscal year 2004, primarily due to increased professional fees related to compliance with new regulations, along with increased salaries and benefits associated with expansion of our locations. The Company's balance sheet growth continued in the second quarter of fiscal year 2005. Total deposits of $353,131,000 at June 30, 2005 grew 12% from December 31, 2004. Net loans increased 12% to $346,885,000. Shareholders' equity grew to $39,724,000, resulting in a 6.5% increase over December 31, 2004. Book value per share at June 30, 2005 was $11.42 as compared to $10.85 at December 31, 2004. Shareholders' equity as a percentage of total assets remained high at 8.9%. With $447,083,000 in total assets, the Company, through its wholly owned subsidiary, Four Oaks Bank & Trust Company, offers a broad range of financial services through its twelve offices in Four Oaks, Clayton, Smithfield, Garner, Benson, Fuquay-Varina, Wallace, Holly Springs, Harrells, and Sanford, North Carolina. The Harrells branch office and the Sanford loan production office both opened on January 10, 2005. CONTACT: Four Oaks Fincorp, Inc. Ayden R. Lee, Jr., 919-963-2177 President and Chief Executive Officer Nancy S. Wise, 919-963-2177 Executive Vice President and Chief Financial Officer