FOR IMMEDIATE RELEASE

September 25, 2009

Contact: John Poole, (864) 208-2265

Carolina Alliance Bank approved to offer FHA loans

SPARTANBURG, S.C. (September 25, 2009) - Carolina Alliance Bank ((OTCBB: CRLN.OB)

is now offering Federal Housing Administration (FHA) secured mortgages which will help make

home purchasing and refinancing more feasible and affordable for many Spartanburg County

residents.

As an FHA-approved lender, Carolina Alliance can help families buy a home with a lower down

payment - often as low as 3.5%. Since FHA loans do not require as large a down payment as

conventional mortgage loans, FHA loans are often popular with first time homebuyers, as the

down payment money can come from a variety of sources including gifts and down payment

assistance grants.

“FHA loans are a great option for many consumers and we are pleased, as a community bank,

that we are able to offer them,” said Carolyn MacIntosh, Carolina Alliance Vice President/Senior

Mortgage Lender.

MacIntosh said there are many advantages of an FHA loan including: customers can have a credit

score of 640 (or higher); non-traditional credit is acceptable; first time home buyers are

acceptable; and FHA loans have great versatility as they may be used to purchase or refinance a

new or existing single family home.

FHA loans have been available since 1934 as a way for lenders to provide home buyers with

access to safe and affordable loans, even during times of tremendous market volatility. These

loans have many positives and are also compatible with industry requirements for: appraisal and

repair; closing costs and lender insurance.

For more information about FHA loans, contact Carolina Alliance Bank at

or (864) 208-BANK (2265).

About Carolina Alliance Bank:

Carolina Alliance is located at 200 South Church Street, in the heart of downtown Spartanburg.

The bank, which commenced business in January 2007, was recognized by the American

Bankers Association as one of the country's top de novo banks of 2007. In a comparison with

other start-up banks that opened in 2007, Carolina Alliance was ranked as South Carolina's top

performer and No. 13 nationally in the ABA's 'The Banking Class of2007." This list names the

top 50 banks chartered in 2007 as ranked by assets on December 31, 2007.

The bank's hours of operation are - Lobby: Monday-Thursday: 9 a.m.-5 p.m.; Friday 9 a.m.-6

p.m., and Drive-Thru: Monday-Thursday 8:30 a.m.-5: 30 p.m.; Friday 8:30 a.m.-6 p.m.

The Board of Directors of Carolina Alliance includes community leaders from throughout

Spartanburg County. They are: Chairman Robert A. Harley; Charles E. Atchison; Andrew M.

Babb; Vollie C. "Vic" Bailey, Jr.; James D. Bearden III, MD; Terry 1. Cash; Norman H.

Chapman; T. Alexander Evins; Caleb C. Fort; Marsha H. Gibbs; Samuel H. Maw, Jr.; D. Byrd

Miller III; John S. Poole (President and Chief Executive Officer); R. Lamar Simpson (Executive

Vice President and Chief Financial Officer); 1. Terrell Sovey; and W. Lewis White, Sr.

For additional information about Carolina Alliance please call (864) 208-BANK (2265) or visit