U. S. SECURITIES AND EXCHANGE COMMISSION

                              Washington, DC 20549


                                    FORM 10-Q


                QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (D)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                  For the quarterly period ended June 30, 1999
                                                 --------------


                        Commission file number - 0-21346
                                                 -------

                             TRIANGLE BANCORP, INC.
             (Exact name of registrant as specified in its charter)


         North Carolina                                     56-1764546
         --------------                                     ----------
(State or other jurisdiction of                          (I.R.S. Employer
incorporation or organization)                          Identification No.)


                              4300 Glenwood Avenue
                         Raleigh, North Carolina 27612
                         -----------------------------
                    (Address of principal executive offices)
                                   (Zip Code)

                           Telephone: (919) 881-0455
                           -------------------------
                         (Registrant's telephone number)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.

Yes  x       No
    ----        ----

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.

       Common Stock                                 25,111,994
       ------------                                 ----------
          Class                           Outstanding at August 6, 1999

<PAGE>
                         PART I - FINANCIAL INFORMATION


Item 1.  Financial Statements

         The Consolidated Balance Sheets for June 30, 1999 and December 31,
         1998, the Consolidated Statements of Income for the three and six month
         periods ended June 30, 1999 and 1998, and the Consolidated Statements
         of Cash Flows for the six month periods ended June 30, 1999 and 1998
         have been included as Attachments to this report.

Item 2.  Management's Discussion and Analysis of Financial Condition and Results
         of Operations.

         GENERAL
         -------

         The purpose of this discussion is to provide the reader with a concise
         understanding of the performance and financial condition of Triangle
         Bancorp, Inc. (the "Company"). The Company is a multibank holding
         company incorporated in November 1991 under the laws of the State of
         North Carolina, with four wholly-owned subsidiaries: Triangle Bank
         ("Triangle"); Bank of Mecklenburg ("Mecklenburg") (collectively, the
         "Banks"); Coastal Leasing LLC ("Coastal"); and Triangle Capital Trust.

         OPERATING RESULTS FOR THE THREE MONTHS ENDED JUNE 30, 1999 AND 1998
         -------------------------------------------------------------------

         The Company's net income for the three months ended June 30, 1999 was
         $6,867,000 compared to recurring earnings of $6,078,000 for the same
         period in 1998, an increase of $789,000 or 13%. Diluted earnings per
         share were $0.27 compared to $0.24 for the same period in 1998. The
         results for the three months ended June 30, 1998 included after-tax
         merger expenses of $794,000 resulting in actual earnings of $5,284,000
         and diluted earnings per share of $.20. Cash basis diluted earnings per
         share, which exclude the amortization of intangible assets, were $.29
         for the quarter ended June 30, 1999, a 16% increase over the $.25
         earned for the same period in 1998, excluding merger expenses.

         For the three months ended June 30, 1999 the annualized returns on
         average assets (ROA) and equity (ROE) were 1.24% and 16.28%,
         respectively, compared to 1.23% and 15.47% for the same period in 1998,
         excluding merger expenses.

         Net taxable equivalent interest income for the three months ended June
         30, 1999 was $20,838,000 compared to $19,666,000 for the same period in
         1998, an increase of $1,172,000, or 6%. Average earning assets
         increased $205 million with loans increasing $167 million and
         investments increasing by $38 million. While the volume of earning
         assets increased, the taxable equivalent yields declined due to the
         overall interest rate environment including the reduction in the prime
         based lending rate. Average costing liabilities increased by $195
         million, with interest bearing deposits growing $80 million, short-term
         debt increasing $138 million and FHLB advances declining $23 million.
         The increase in short-term debt is attributable to the Company being in
         a federal funds purchased position for much of the second quarter of
         1999 as compared to 1998. Also, reverse repurchase
<PAGE>
         agreements were used as an alternative to higher priced deposits to
         fund loan growth. The cost of liabilities decreased when comparing the
         second quarter of 1999 to 1998, again due to the overall interest rate
         environment. The net taxable equivalent yield on interest earning
         assets decreased by 21 basis points to 4.11% for the quarter ended June
         30, 1999 compared to 4.32% for the quarter ended June 30, 1998.

         For the three months ended June 30, 1999, a loan loss provision of
         $1,936,000 was made compared to a provision of $1,155,000 for the same
         period in 1998. The provision increased due to continued loan growth
         during the second quarter of 1999 as well as increased charge-offs in
         1999 compared to 1998.

         Noninterest income for the three months ended June 30, 1999 was
         $5,409,000 compared to $4,659,000 for the same period in 1998 an
         increase of 16%. This increase resulted from increases in service
         charges and other commissions and fees. In addition, other operating
         income increased $569,000 primarily due to $558,000 in income on bank
         owned life insurance purchased by the Company in the third quarter of
         1998 and the first quarter of 1999.

         Noninterest expenses, excluding merger expenses, decreased by $38,000
         for the three months ended June 30, 1999 compared to the same period in
         1998. These decreases are the result of efficiencies achieved in
         mergers with Guaranty State Bancorp in April 1998 and United Federal
         Savings Bank in September 1998. For the three months ended June 30,
         1999, there was a decrease in professional fees compared to the same
         period in 1998 relating to Year 2000 consulting expenses.

         OPERATING RESULTS FOR THE SIX MONTHS ENDED JUNE 30, 1999 AND 1998
         -----------------------------------------------------------------

         The Company's net income for the six months ended June 30, 1999 was
         $13,469,000, compared to recurring net income of $11,664,000 for the
         same period in 1998. This represents an increase of $1,805,000 or 16%.
         Including nonrecurring merger expenses in 1998 of $998,000,
         year-to-date net income was $10,666,000. Fully diluted earnings per
         share for the six months ended June 30, 1999 were $.52 compared to $.45
         for the same period in 1998, excluding merger expenses. Cash basis
         diluted earnings per share, which exclude the amortization of
         intangible assets, were $.56 for the year to date period ended June 30,
         1999, a 14% increase over the $.49 earned on recurring cash basis
         earnings for the same period in 1998.

         For the six months ended June 30, 1999 the annualized returns on
         average assets and equity were 1.26% and 16.18%, respectively, compared
         to 1.18% and 14.97% for the same period in 1998, excluding nonrecurring
         items.

         Net taxable equivalent interest income for the six months ended June
         30, 1999 was $40,414,000 compared to $38,877,000 for the same period in
         1998, an increase of $1,537,000. Average earning assets increased $128
         million with loans increasing $138 million and investments decreasing
         by $10 million. While the volume of earning assets increased, the
         taxable equivalent yields declined due to the overall interest rate
         environment including the reduction in the prime based lending rate and
         accelerated mortgage prepayments on collateralized mortgage obligations
         in the investment portfolio. Average costing liabilities increased by
         $135 million, with interest bearing deposits growing $57
<PAGE>
         million, short-term debt increasing $116 million and FHLB advances
         declining $38 million. The increase in short-term debt is attributable
         to the Company being in a federal funds purchased position for much of
         1999 as compared to 1998. Also, reverse repurchase agreements were used
         as an alternative to higher priced deposits to fund loan growth. The
         cost of liabilities decreased when comparing the first six months of
         1999 to 1998, again due to the overall interest rate environment. The
         net taxable equivalent yield on interest earning assets decreased by 11
         basis points to 4.10% for the six months ended June 30, 1999 from 4.21%
         for the six months ended June 30, 1998.

         For the six months ended June 30, 1999, a loan loss provision of
         $3,251,000 was made compared to a provision of $2,606,000 for the same
         period in 1998. The increase in provision was due to the loan growth
         and increased charge-offs during 1999.

         Noninterest income for the six months ended June 30, 1999 was
         $10,182,000 compared to $8,506,000 for the same period in 1998 an
         increase of 20%. This increase resulted from increases in service
         charges on deposit accounts and fees from the Company's investment
         services subsidiary. Other operating income increased $841,000
         primarily due to $878,000 in income on bank owned life insurance
         purchased by the Company in the third quarter of 1998 and the first
         quarter of 1999.

         Noninterest expenses, excluding merger expenses, for the six months
         ended June 30, 1999 decreased $309,000 compared to the same period in
         1998. These decreases are the result of efficiencies achieved in the
         mergers with Guaranty State Bancorp in April 1998 and United Federal
         Savings Bank in September 1998.

         FINANCIAL CONDITION
         -------------------

         Total assets increased $162 million, or 8%, to $2.285 billion at June
         30, 1999 versus $2.123 billion at December 31, 1998. Loans have
         increased $125 million and investments grew $21 million. Other assets
         increased $22 million due to the purchase of additional bank owned life
         insurance in the first quarter of 1999. This growth was funded by a
         decrease in cash of $17 million as well as deposit growth of $126
         million and an increase in other borrowings of $32 million.

         The Company continued to maintain adequate loan loss reserves during
         the period with the loan loss reserves at June 30, 1999 being 1.37% of
         total loans and 230% of nonaccrual loans and loans ninety days or more
         past due and still accruing. Nonperforming assets to total loans plus
         other real estate owned were .71% on June 30, 1999 compared to .92% as
         of December 31, 1998. Net charge-offs were .31% for the six month
         period ended June 30, 1999 versus .25% in the same period in 1998. A
         summary of certain information related to the loan loss reserves and
         nonperforming assets as of June 30, 1999 follows:
<PAGE>
                RESERVE FOR LOAN LOSSES AND NONPERFORMING ASSETS
                             (DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>


ANALYSIS OF RESERVE FOR LOAN LOSSES:

<S>                                                                              <C>
Beginning Balance, January 1, 1998                                               $19,584
                                                                                 -------

Deduct charge-offs:
         Commercial financial and agricultural                                     1,592
         Installment loans to individuals                                            480
         Credit card and related plans                                               445
                                                                                   ------

                                                                                   2,517
Add recoveries:
         Commercial, financial and agricultural                                       65
         Real estate                                                                  54
         Installment loans to individuals                                            100
         Credit card and related plans                                                69
                                                                                   ------
                                                                                     288
Net charge-offs                                                                    2,229

Additions charged to operations                                                    3,251

Ending Balance,  June 30, 1999                                                  $ 20,606
                                                                                ========

Ratio of net charge-offs to average loans outstanding during the period           0.31%

ANALYSIS OF NONPERFORMING ASSETS:

Nonaccrual loans:
         Commercial, financial and agricultural                                  $ 1,775
         Real estate, construction and land development                            1,499
         Installment loans to individuals                                            215
                                                                                  ------
                                                                                   3,489

Loans contractually past due 90 days or more
     as to principal or interest                                                   5,471
Foreclosed assets                                                                  1,779
                                                                                   -----


TOTAL                                                                           $ 10,739
                                                                                ========
</TABLE>
<PAGE>
         Total deposits were $1.752 billion as of June 30, 1999 compared to
         $1.626 billion at December 31, 1998. Significant growth in time
         deposits were offset somewhat by declines in interest bearing demand
         deposits. The growth in time deposits greater than $100,000 was the
         result of the Company implementing a program late in the fourth quarter
         of 1998 of accepting a limited amount of brokered deposits as an
         alternative to higher priced retail deposits.

         Short-term debt has increased $37 million as of June 30, 1999 compared
         to December 31, 1998. Federal Home Loan Bank borrowings have been
         reduced by $5 million from December 31, 1998 to June 30, 1999.

         CAPITAL
         -------

         The adequacy of capital is reviewed regularly, in light of current
         plans and economic conditions, to ensure that sufficient capital is
         available for current and future needs, to minimize the Company's cost
         of capital and to assure compliance with regulatory requirements. The
         Company's capital ratios as of June 30, 1999 are as follows:

                                                 ACTUAL   REQUIRED  EXCESS
                                                 PERCENT  PERCENT   PERCENT
                                                 -------  -------   -------

         Tier 1   Capital to Risk Based Assets    10.03%    4.00%     6.03%

         Total  Capital to Risk Based Assets      11.24%    8.00%     3.24%

         Leverage Ratio                            7.90%    4.00%     3.90%

         IMPACT OF YEAR 2000 ISSUE
         -------------------------

         The Year 2000 Issue is the result of computer programs being written
         using two digits rather than four to define the applicable year. As a
         result, many automated applications may fail to function properly or
         may cease to function unless corrected or replaced.

         The Company is a "turnkey" institution; it does not write or develop
         any of its own computer applications, but instead purchases or licenses
         its applications from third party vendors. As a "turnkey" institution,
         the Company is in dialogue with all of its vendors as to their
         preparedness for Year 2000. In 1997, the Company hired an independent
         consultant to assist it in all phases of its Year 2000 plan. With the
         assistance of the consultant, the Company in 1997 adopted a plan which
         called for the Company's applications to properly process dates in the
         Year 2000 and beyond by April 30, 1999.
<PAGE>

         In 1998, the Company completed its assessment of its existing computer
         systems and applications and had identified 30 mission critical
         applications which was later increased to 36 due to a merger in
         September 1998 and new or replacement applications in 1999. Due to the
         applications added in 1998, and 1999, the April 30 deadline was not met
         by eight applications. All other applications in use were prepared for
         the Year 2000 on April 30, 1999. As of July 31, 1999, the Company had
         completed renovation, validation and implementation of all of its
         mission critical and its non-mission critical applications. As of June
         30, 1999 the Company had completed contingency planning for all
         existing applications and functions.

         The Company originally budgeted $1,000,000 for the Year 2000 plan, with
         approximately $50,000 for 1997, $750,000 for 1998 and $200,000 for
         1999. As of June 30, 1999, the Company has spent approximately $40,000
         and $614,000 in 1997 and 1998, respectively, on Year 2000 issues
         leaving $346,000 budgeted for 1999. The amount spent on Year 2000
         issues in the quarters ended March 31, 1999 and June 30, 1999 was
         $94,000 and $87,000, respectively. The Company does not expect the
         costs of this process to be material to its financial condition or
         results of operations.

         Based on information now available, the Company anticipates its systems
         will properly process dates in the year 2000 and beyond.


                           PART II - OTHER INFORMATION


Item 1.  Legal Proceedings

         There are no material pending legal proceedings involving the Company.

Item 2.  Changes in Securities

         There have been no changes in the rights of the holders of the common
         stock of the Company.

Item 3.  Defaults Upon Senior Securities

         Not Applicable.

Item 4.  Submission of Matters to a Vote of Security Holders

         Not Applicable.

Item 5.  Other Information

         Not Applicable.

Item 6.  Exhibits and Reports on Form 8-K

         a)   Exhibits
<PAGE>
              (27)   Financial Data Schedule.


         b)   Reports on Form 8-K

              Not Applicable.
<PAGE>
                     TRIANGLE BANCORP, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                                  IN THOUSANDS
                                    UNAUDITED
<TABLE>
<CAPTION>
                                                                 June 30, 1999       December 31, 1998
                                                                ----------------    --------------------
<S>                                                                    <C>                     <C>
ASSETS
Cash and due from banks                                                $ 60,092                $ 76,624
Interest-bearing deposits in banks                                       11,345                     911
Securities available for sale                                           543,105                 482,155
Securities held to maturity, market value;
       $41,893 and $82,790                                               41,667                  81,138
Loans and Leases, less allowance for losses of
      $20,606 and $19,584                                             1,488,775               1,363,553
Premises and equipment, net                                              38,471                  40,492
Interest receivable                                                      16,999                  16,468
Deferred income taxes                                                    13,310                  10,597
Intangible assets                                                        22,470                  24,207
Other assets                                                             49,099                  26,939
                                                                ----------------    --------------------

                        Total Assets                                $ 2,285,333             $ 2,123,084
                                                                ----------------    --------------------

LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits:
     Noninterest-bearing demand                                       $ 228,933               $ 224,732
     Interest-bearing demand                                            180,842                 201,042
     Savings and money market                                           289,794                 293,652
     Large denomination certificates of deposit                         264,371                 217,598
     Other time                                                         787,568                 688,874
                                                                ----------------    --------------------

                        Total Deposits                                1,751,508               1,625,898

Short-term debt                                                         195,817                 158,980
Federal Home Loan Bank advances                                         125,300                 130,300
Corporation obligated mandatorily
     redeemable securities                                               19,953                  19,952
Custodial deposits                                                        9,469                   7,243
Interest payable                                                          8,891                   8,292
Other liabilities                                                         9,601                   9,392
                                                                ----------------    --------------------

                         Total other liabilties                         369,031                 334,159
                                                                ----------------    --------------------

                         Total liablities                             2,120,539               1,960,057
                                                                ----------------    --------------------

Commitments and contingencies*

SHAREHOLDERS' EQUITY

Common stock, no par value 50,000
     authorized;  25,086 shares and
     25,184 shares outstanding at June 30,
     1999 and December 31, 1998, respectively                            84,299                  86,549
Undivided profits                                                        89,688                  80,753
Accumulated other comprehensive income                                   (9,193)                 (4,275)
                                                                ----------------    --------------------

                  Total shareholders' equity                            164,794                 163,027
                                                                ----------------    --------------------
                  Total liablities and shareholders' equity         $ 2,285,333             $ 2,123,084
                                                                ----------------    --------------------


*Standby letters of credit outstanding at June 30, 1999 amounted to $5,283.
The accompanying notes are an integral part of the consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                                For the three     For the three        For the six       For the six
                                                 months ended     months ended         months ended      months ended
                                                June 30, 1999     June 30, 1998       June 30, 1999     June 30, 1998
                                                ---------------   --------------      ---------------   ---------------
<S>                                                   <C>              <C>                  <C>               <C>
INTEREST INCOME
     Interest and fees on loans                       $ 32,239         $ 30,404             $ 62,607          $ 60,027
     Securities                                          7,756            7,436               15,076            15,665
     Other interest income                                  69              465                  138             1,010
                                                ---------------   --------------      ---------------   ---------------
          Total interest income                         40,064           38,305               77,821            76,702

INTEREST EXPENSE:
     Large denomination certificates of deposit          3,323            2,976                6,824             5,700
     Other deposits                                     12,730           13,516               24,538            27,161
     Other borrowings                                    2,608              931                4,845             1,987
     Federeal Home Loan Bank borrowings                  1,718            2,199                3,431             4,887
                                                ---------------   --------------      ---------------   ---------------
          Total interest expense                        20,379           19,622               39,638            39,735
                                                ---------------   --------------      ---------------   ---------------

Net interest income                                     19,685           18,683               38,183            36,967

Provision for loan losses                                1,936            1,155                3,251             2,606
                                                ---------------   --------------      ---------------   ---------------
Net interest income after
     provision for loan losses                          17,749           17,528               34,932            34,361
                                                ---------------   --------------      ---------------   ---------------
NONINTEREST INCOME:
     Service charges on deposit accounts                 2,403            2,171                4,509             4,129
     Other commissions and fees                          1,033              911                1,963             1,797
     Mortgage servicing fees net of amortization           192              190                  456               421
     Gain on sale of securities, net                       240              433                  532               472
     Gain on sale of government loans                      289              344                  434               543
     Gain on sale of mortgage loans                        154              133                  343               268
     Investment commissions and fees                       266              214                  578               350
     Other operating income                                832              263                1,367               526
                                                ---------------   --------------      ---------------   ---------------
          Total noninterest income                       5,409            4,659               10,182             8,506
                                                ---------------   --------------      ---------------   ---------------
NONINTEREST EXPENSES:
     Salaries and employee benefits                      5,333            5,594               10,534            11,182
     Occupancy expenses                                  1,301            1,205                2,648             2,464
     Furniture and equipment expenses                    1,339            1,202                2,554             2,242
     Professional fees                                     634              722                1,131             1,178
     Deposit insurance expense                             127               47                  190               140
     Advertising and public relations                      377              395                  781               654
     Office expenses                                       390              433                  710               895
     Telephone and communication                           410              432                  773               828
     Other real estate owned expense                        35               42                   44               158
     Amortization of intangible assets                     792              793                1,584             1,587
     Merger expenses                                         -            1,303                    -             1,632
     Other operating expense                             2,051            1,962                3,784             3,714
                                                ---------------   --------------      ---------------   ---------------
     Total noninterest expenses                         12,789           14,130               24,733            26,674
                                                ---------------   --------------      ---------------   ---------------
Net income before taxes                                 10,369            8,057               20,381            16,193

Income tax expense                                       3,502            2,773                6,912             5,527
                                                ---------------   --------------      ---------------   ---------------

Net income                                             $ 6,867          $ 5,284             $ 13,469          $ 10,666
                                                ---------------   --------------      ---------------   ---------------
Basic income per share data:
     Net income                                         $ 0.27           $ 0.21               $ 0.54            $ 0.43
     Average shares outstanding                         25,124           25,113               25,157            25,062
Diluted income per share data:
     Net income                                         $ 0.27           $ 0.20               $ 0.52            $ 0.41
     Average common equivalent shares                   25,729           25,876               25,771            25,872

Cash dividends declared per share                       $ 0.09           $ 0.08               $ 0.18            $ 0.15


The accompanying notes are an integral part of the consolidated financial statements.
</TABLE>
<PAGE>

                     TRIANGLE BANCORP, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  IN THOUSANDS
                                    UNAUDITED
<TABLE>
<CAPTION>
                                                                                         JUNE 30               JUNE 30
                                                                                          1999                 1998
<S>                                                                                        <C>                  <C>
Cash flows from operating activities:
         Net income                                                                     $ 13,469              $ 10,666
Adjustments to reconcile net income to net cash provided by (used in)
  operations:
         Depreciation and amortization                                                     4,156                 3,925
         Accretion of discount on investment securities,
           net of amortization of premiums                                                 3,023                   870
         Provision for loan losses                                                         3,251                 2,606
         Gain on sale of investments                                                        (532)                 (472)
         Gain on sale of loans                                                              (777)                 (811)
         Gain on sale of other assets                                                        (73)                    -
         Mortgage loans held for sale:
             Originations                                                                (44,597)              (30,550)
             Sales                                                                        42,564                31,154
         Provision (benefit) for deferred taxes                                              (50)                  (50)
         Change in other assets and liabilities:
             Interest receivable                                                            (531)                 (885)
             Other assets                                                                 (2,308)                  708
              Interest payable                                                               599                (1,219)
             Other liabilities                                                               343                (2,290)
                                                                                 ----------------     -----------------

         Net cash provided by operating activities                                        18,537                13,652
                                                                                 ----------------     -----------------

Cash flows from investing activities:
         Proceeds from maturities and principal paydowns of securities AFS               122,650                44,153
         Proceeds from maturities and principal paydowns of securities HTM                11,525                26,342
         Proceeds from sales of investment securities AFS                                 24,296                31,010
         Purchases of investment securities AFS                                         (190,023)              (39,825)
         Purchases of investment securities HTM                                                -               (14,446)
         Purchase of bank owned life insurance                                           (20,000)                    -
         Cost of loan servicing rights                                                      (704)                 (181)
         Net increase in loans made to customers                                        (125,663)              (27,417)
         Proceeds from sale of other assets                                                  855                     -
         Capital expenditures, bank premises and equipment, net                             (327)               (3,062)
                                                                                 ----------------     -----------------

         Net cash provided by (used in) investing activities                            (177,391)               16,574
                                                                                 ----------------     -----------------

Cash flows from financing activities:
         Net increase in deposit accounts                                                125,610                34,690
         Net increase in custodail accounts                                                2,226                 2,779
         Net increase (decrease) in short-term debt                                       36,837               (20,924)
         Net decrease in FHLB advances                                                    (5,000)              (59,500)
         Repurchase of common stock                                                       (3,533)                 (846)
         Cash paid for fractional shares                                                       -                   (17)
         Cash dividends paid to shareholders                                              (4,533)               (3,915)
         Shares issued under stock plans                                                   1,149                 2,260
                                                                                 ----------------     -----------------

         Net cash provided by (used in) financing activities                             152,756               (45,473)
                                                                                 ----------------     -----------------

         Net (decrease) in cash and cash equivalents                                      (6,098)              (15,247)

         Cash and cash equivalents at beginning of period                                 77,535                98,352
                                                                                 ----------------     -----------------

         Cash and cash equivalents at end of period                                     $ 71,437              $ 83,105
                                                                                 ================     =================

         The accompanying notes are an integral part of the consolidated financial statements.

</TABLE>
<PAGE>
                     TRIANGLE BANCORP, INC. AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
            For the Three and Six Months Ended June 30, 1999 and 1998
                                   (Unaudited)


1.       Financial statement presentation and management representation
         --------------------------------------------------------------

         The consolidated financial statements include the accounts and results
         of operations of Triangle Bancorp, Inc. and its four wholly-owned
         subsidiaries, Triangle Bank, Bank of Mecklenburg, Coastal Leasing LLC,
         and Triangle Capital Trust. All significant intercompany transactions
         and accounts are eliminated in consolidation.

         The interim consolidated financial statements as of and for the six
         months ended June 30, 1999 and 1998 are unaudited. In the opinion of
         management, the consolidated financial statements contain all
         adjustments, consisting of normal recurring adjustments, necessary to
         present fairly, in all material respects, the consolidated financial
         position as of June 30, 1999 and 1998, and the results of operations
         and cash flows for the periods ended June 30, 1999 and 1998. The
         results for the interim periods are not necessarily indicative of what
         results will be for the year ended December 31, 1999.

2.       Accounting for Derivative Instruments and Hedging Activities
         ------------------------------------------------------------

         As of January 1, 1999 the Company adopted Statement of Financial
         Accounting Standards No. 133, Accounting for Derivative Instruments and
         Hedging Activities (FAS 133). FAS 133 requires that all derivative
         instruments be recorded on the balance sheet at fair value. Changes in
         the fair value of derivatives are recorded each period in current
         earnings or other comprehensive income, depending on whether a
         derivative is designated as part of a hedge transaction and, if it is,
         the type of hedge transaction. FAS 133, as amended by Statement of
         Financial Accounting Standards No. 137, Accounting for Derivative
         Instruments and Hedging Activities-Deferral of the Effective Date of
         FAS 133, is effective for all fiscal quarters of all fiscal years
         beginning after June 15, 2000, with earlier adoption allowed.

         As part of the adoption, the Company reclassified approximately $28
         million of held to maturity securities to available for sale during the
         first quarter of 1999. The adoption had no other significant effect on
         the Company's results of operations or its financial position.

3.       Comprehensive Income
         ------------------------------

         The Company's only component of other comprehensive income relates to
         unrealized gains or losses on available for sale securities.
         Information concerning the Company's other comprehensive income (loss)
         for the three and six months ended June 30, 1999 and 1998 follows (in
         thousands):
<PAGE>
<TABLE>
<CAPTION>
                                                                    For the three months ended June 30,
                                                                        1999                  1998
                <S>                                                     <C>                   <C>
         Net income                                                 $  6,867                $5,284
         Holding losses on available for sale securities, net
         of taxes of $3,051 and $166, respectively                    (5,982)                 (324)
         Reclassification of gains recognized in net income,
         net of taxes of  $81 and $147, respectively                    (159)                 (286)
                                                                    --------------------------------

         Other comprehensive loss                                     (6,141)                 (610)
         Comprehensive income                                       $    726               $ 4,674
                                                                    --------------------------------

                                                                    For the six months ended June 30,
                                                                        1999                1998

         Net income                                                 $  13,469              $10,666
         Holding losses on available for sale securities, net
         of taxes of $(2,343) and $(1,058), respectively              (4,566)               (2,023)

         Reclassification of gains recognized in net income,
         net of taxes of  $180 and $160, respectively                   (352)                 (312)
                                                                     --------------------------------

         Other comprehensive loss                                     (4,918)               (2,335)
         Comprehensive income                                       $  8,551               $ 8,331
                                                                     --------------------------------

</TABLE>
<PAGE>
                                   SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                                               TRIANGLE BANCORP, INC.

Date: August 16, 1999                          /s/ Michael S. Patterson
      ---------------                          ------------------------
                                               Michael S. Patterson,
                                               President and CEO


Date: August 16, 1999                          /s/ Debra L. Lee
      ---------------------                    ----------------
                                               Debra L. Lee,
                                               Chief Financial Officer
<PAGE>
                             TRIANGLE BANCORP, INC.
                                  EXHIBIT TABLE


                                                                       PAGE

 (27)    Financial Data Schedule