<PAGE>


                    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, 1997



                        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                               10,465,612
             Class                           Outstanding at August 8, 1997


<PAGE>



                         PART I - FINANCIAL INFORMATION


Item 1.  Financial Statements

         The Consolidated Balance Sheets for June 30, 1997 and December 31,
         1996, the Consolidated Statements of Income for the three and six month
         periods ended June 30, 1997 and 1996, and the Consolidated Statements
         of Cash Flows for the six month periods ended June 30, 1997 and 1996
         have been included as Attachments to this report.

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

         Highlights

         During the second quarter of 1997, Triangle Bancorp, Inc. (the
         "Company") continued its growth strategy with the announcement of the
         signing of a definitive merger agreement with Bank of Mecklenburg
         ("Mecklenburg") on April 25. Mecklenburg operates three branch offices
         in Charlotte, North Carolina and had $306 million in total assets as of
         June 30, 1997. In addition, on May 20, 1997, the Company signed a
         Purchase and Assumption Agreement with Branch Bank and Trust Company
         ("BB&T") and United Carolina Bank ("UCB") for the Company to acquire
         $215 million in deposits and $71 million in loans associated with eight
         branches of UCB and two branches of BB&T located in south central and
         eastern North Carolina.

         The BB&T/UCB transaction, which has received regulatory approval, is
         scheduled for August 15, 1997. The Mecklenburg transaction, subject to
         regulatory and shareholder approval, is planned to take place in the
         fourth quarter of 1997. When these transactions are completed, the
         Company will have over $1.5 billion in total assets.

         In May 1997, the Company created a Delaware statutory business trust
         subsidiary which issued corporation-obligated manditorily redeemable
         capital securities ("trust securities") in the amount of $19.33 million
         to eight qualified institutional buyers, and $619,000 in trust common
         securities to the Company, both sales occurring on June 3, 1997. The
         Trust Securities have a maturity of 30 years, pay dividends at the rate
         of 9.375% and may be treated as tier 1 capital by the Company. To fund
         the trust, the Company sold to the trust $19.95 million of junior
         subordinated notes with a yield and maturity identical to the Trust
         Securities. Holders of the Trust Securities are entitled to receive
         preferential cumulative cash distributions accumulating from the date
         of original issuance and payable semi-annually in arrears on the first
         day of June and December of each year. The proceeds from the issuance
         of the junior subordinated debt are being used for general corporate
         purposes.

         Operating Results for the Three Months Ended June 30, 1997 and 1996

         The Company's net income for the three months ended June 30, 1997 was
         $4,709,000 compared to earnings of $2,901,000 for the same period in
         1996, an increase of $1,808,000 or 62%. Earnings per share were $0.43
         compared to $0.27 for the same period in 1996. The results for the
         three months ended June 30, 1997 and June 30, 1996 were positively
         impacted 


<PAGE>


         Part I, Item 2 (Continued)

         by one-time gains (on an after-tax basis) of $1,260,000, or $0.11 per
         share, in 1997 from the sale of the Company's two offices in Sanford,
         and $352,000, or $0.03 per share, in 1996 from the sale of the
         Elizabeth City office.

         For the three months ended June 30, 1997 the annualized returns on
         average assets (ROA) and equity (ROE) were 1.85% and 21.17%,
         respectively, compared to 1.27% and 14.32% for the same period in 1996.
         Without the gains on branch sales, ROA was 1.36% versus 1.11%, and ROE
         was 15.51% versus 12.58% for the three months ended June 30, 1997 and
         1996, respectively.

         Core earnings for the period were positively impacted by an increase in
         net interest income due to an increase in the volume of earning assets.
         The net interest income for the three months ended June 30, 1997 was
         $11,066,000 compared to $9,876,000 for the same period in 1996 an
         increase of $1,190,000 or 12%. The increases from volume were offset
         slightly by a decrease in the yield with net interest margin decreasing
         to 4.74% for the three months ended June 30, 1997 from 4.78% for the
         same period in 1996.

         For the three months ended June 30, 1997, a loan loss provision of
         $830,000 was made compared to a provision of $723,000 for the same
         period in 1996. The increase in provision was made to maintain the loan
         loss reserve at appropriate levels due to growth in the loan portfolio.

         Noninterest income for the three months ended June 30, 1997 was
         $4,114,000 compared to $2,529,000 for the same period in 1996 an
         increase of $1,585,000 or 63%. The increase of noninterest income is
         due primarily to the $2,000,000 pre-tax gain on branch sale in 1997
         versus the $558,000 pre-tax gain realized on branch sale in 1996.

         Noninterest expenses decreased by $207,000 for the three months ended
         June 30, 1997 compared to the same period in 1996. The decrease is
         primarily due to an increase during the first quarter of 1997 in
         personnel costs deferred required by SFAS 91 to more accurately reflect
         the cost of originating loans. This resulted in a decrease in salaries
         and employee benefits in 1997 compared to 1996. A decrease was also
         seen in furniture and equipment expense and Federal Deposit Insurance
         Corporation (FDIC) deposit insurance expense. Increases were seen in
         advertising, office expenses and occupancy due to the general growth of
         the Company. Professional fees increased due to legal fees associated
         with litigation described in Part II, item 1 as well as an increase in
         outside services such as recruiting and training.

         Operating Results for the Six Months Ended June 30, 1997 and 1996

         The Company's net income for the six months ended June 30, 1997 was
         $7,751,000, compared to $5,448,000 for the same period in 1996. This
         represents an increase of $2,303,000 or 42%. Excluding the sale of the
         branches in 1997 and 1996, core earnings for the six months ended June
         30, 1997 were $6,491,000, a 27% increase over the $5,096,000 earned
         during the same period in 1996. Earnings per share were $0.71 ($0.60
         without the gain) compared to $0.51 ($0.47 without the gain) for the
         same period in 1996.

<PAGE>


         Part I, Item 2 (Continued)


         For the six months ended June 30, 1997 the annualized returns on
         average assets and equity were 1.56% and 17.64%, respectively, compared
         to 1.23% and 13.51% for the same period in 1996. Without the gains on
         branch sales, ROA was 1.31% versus 1.15%, and ROE was 14.77% versus
         12.64% for the six months ended June 30, 1997 and 1996, respectively.

         Core earnings for the six month period ended June 30, 1997 were
         positively impacted by an increase in net interest income due to an
         increase in the volume of earning assets. The net interest income for
         the six months ended June 30, 1997 was $21,666,000 compared to
         $19,318,000 for the same period in 1996 an increase of $2,348,000 or
         12%. The net interest margin declined slightly to 4.73% for the six
         months ended June 30, 1997 from 4.75% for the same period in 1996.

         For the six months ended June 30, 1997, a loan loss provision of
         $1,330,000 was made compared to a provision of $1,035,000 for the same
         period in 1996. The increase in the provision was made to maintain the
         loan loss reserve at an appropriate level due to loan growth.

         Noninterest income for the six months ended June 30, 1997 was
         $6,101,000 compared to $4,576,000 for the same period in 1996 an
         increase of $1,525,000 or 33%. The branch sale in 1997 accounted for
         $1,442,000, or 95%, of this increase. An increase was also seen in
         income from the sale of SBA loans.

         Noninterest expenses for the six months ended June 30, 1997 decreased
         $92,000 over the same period in 1996. The decrease is primarily due to
         an increase during the first quarter of 1997 in personnel costs
         deferred required by SFAS 91 to more accurately reflect the cost of
         originating loans. This resulted in a decrease in salaries and employee
         benefits in 1997 compared to 1996. A decrease was also seen in
         furniture and equipment expense and (FDIC) deposit insurance expense.
         Due to internal growth of the Company including five new branches in
         the second half of 1996 and two in-store branches in 1997, increases
         were seen in advertising, office expenses, and occupancy. Professional
         fees increased in 1997 due to on-going litigation discussed in Part II,
         Item 1.


         Financial Condition

         Total assets increased $56 million, or 6%, to $1.03 billion at June 30,
         1997 versus $971 million at December 31, 1996. The increase was
         primarily attributed to a $59 million increase in loans with cash and
         cash equivalents decreasing $2.3 million and investments increasing
         $500,000. In June 1997, the Company sold it's two offices in Sanford,
         North Carolina divesting of $11 million in loans and $23.5 million in
         deposits.

         The Company continued to maintain strong loan loss reserves during the
         period with the loan loss reserves at June 30, 1997 being 1.54% of
         total loans and 176% of nonperforming loans. Nonperforming loans to
         total loans plus other real estate owned were .88% on June 30, 1997
         compared to .66% as of December 31, 1996. Net charge offs were .01% for
         the six month period ended June 30, 1997 versus .04% in the same period
         in 1996. A summary of 



<PAGE>


         certain information related to the loan loss reserves and nonperforming
         assets as of June 30, 1997 follows:


                  RESERVE FOR LOAN LOSSES AND NONPERFORMING ASSETS
                             (Dollars in Thousands)

Analysis of Reserve for Loan Losses:

<TABLE>
<CAPTION>

<S>                        <C>                                            <C>    
Beginning Balance, January 1, 1997                                        $ 9,715

Deduct charge-offs:
         Commercial financial and agricultural                                320
         Real estate, construction and land development                        19
         Installment loans to individuals                                     212
         Credit card and related plans                                        233
                                                                              ----
                                                                              784
Add recoveries:
         Commercial, financial and agricultural                               517
         Real estate                                                           13
         Installment loans to individuals                                     142
         Credit card and related plans                                         25
                                                                              ----
                                                                              697
                                                                              -----
Net charge-offs                                                                87

Additions charged to operations                                             1,330
                                                                          ----------

Ending Balance,  June, 30 1997                                            $10,959
                                                                          =========

Ratio of net charge-offs to average loans outstanding during the period      0.01%


Analysis of Nonperforming Assets:

Nonaccrual loans:
         Commercial, financial and agricultural                           $ 1,037
         Real estate, construction and land development                     1,020
         Installment loans to individuals                                      64
                                                                           --------
                                                                            2,121

Loans contractually past due 90 days or more
     as to principal or interest                                            3,712
Foreclosed assets                                                             409
                                                                           --------



TOTAL                                                                     $ 6,242
                                                                          ==========
</TABLE>

<PAGE>


Part 1, Item 2 (Continued)

         Financial Condition (Continued)

         Total deposits were $852 million as of June 30, 1997 compared to $848
         million at December 31, 1996. Net deposit growth has been minimal due
         to the divestiture of $23.5 million in deposits with the sale of the
         Sanford branch. Also, through deliberate pricing strategy, deposit
         growth has been limited due to the upcoming acquisition of $215 million
         in deposits from BB&T/UCB.

         As deposits have had limited growth, short-term debt and other
         borrowings have increased $25.6 million from December 31, 1996 to June
         30, 1997. This increase is primarily represented by a $20 million
         borrowing from the Federal Home Loan Bank (FHLB). Federal funds
         purchased on June 30, 1997 were $5 million greater than on December 31,
         1996.

         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. In
         June 1997, the Company formed a Delaware business trust subsidiary
         which issued $20 million in capital securities, all of which may be
         counted as Tier 1 capital by the Company. The Company considers the
         capital securities, which bear interest at the rate of 9.375% per annum
         and have a maturity of 30 years, to be a relatively inexpensive source
         of capital. The Company's capital ratios as of June 30, 1997 are as
         follows:

<TABLE>
<CAPTION>

                                                            Actual   Required    Excess
                                                           Percent    Percent    Percent

<S>           <C>                                                      <C>             
         Tier 1   Capital to Risk Based Assets            12.87%       4.00 %        8.87%

         Total  Capital to Risk Based Assets              14.12%       8.00 %        6.12%

         Leverage Ratio                                    9.95%       4.00 %        5.95%
</TABLE>


                           PART II - OTHER INFORMATION


Item 1.  Legal Proceedings

         Triangle Bank has been named as a defendant in a lender liability suit
         currently pending in state court in North Carolina in which the
         plaintiff claims that Triangle Bank breached an oral commitment to make
         a $100,000 loan to the plaintiff. The plaintiff is asserting that he is
         entitled to $5 million in damages and is seeking to have these damages
         trebled and an award of attorney's fees. The suit is scheduled to go to
         trial in early November 1997. The Company disputes the plaintiff's
         theories of liabilities and damages and intends to continue to defend
         the suit vigorously.

<PAGE>


Part II (Continued)


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

                  (19)     Report furnished to security holders.

                  (27)     Financial Data Schedule.

         b)       Reports on Form 8-K

                  On May 19, 1997, the Company filed an 8-K regarding two items.
                  The first was the signing of a definitive Agreement and Plan
                  of Reorganization and Merger with Bank of Mecklenburg.
                  Secondly, the Company announced a repurchase plan to buy back
                  170,000 shares of it's common stock over a two year period.

                  On May 27, 1997, the Company filed an 8-K regarding three
                  items. The first was pro forma financial statements reflecting
                  the Bank of Mecklenburg merger. Secondly, the Company
                  announced the signing of a Purchase and Assumption Agreement
                  regarding the BB&T/UCB branch divestitures. Pro forma
                  information was also provided regarding this transaction.
                  Lastly, the Company reported Triangle Bank has been named a
                  defendant in a lawsuit which is described above in Part II,
                  Item 1.



<PAGE>



                     TRIANGLE BANCORP, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                                    UNAUDITED

<TABLE>
<CAPTION>


                                                                    June 30,                     December 31,
                                                                      1997                           1996

ASSETS
<S>                                                               <C>                               <C>        
Cash and due from banks                                           $    33,424,919                   $34,614,622
Federal funds sold                                                        350,000                     1,010,891
Interest-bearing deposits in banks                                        396,396                       879,360
Securities available for sale                                         140,213,809                   146,086,069
Securities held to maturity, market value;
    $104,117,000 and $97,667,000                                      103,525,974                    97,111,953
Loans held for sale                                                             -                     2,412,738
Loans, less allowance for losses of
    $10,958,589 and $9,715,387                                        698,905,672                   639,718,248
Premises and equipment, net                                            19,873,271                    20,181,307
Interest receivable                                                     9,964,311                     8,812,952
Deferred income taxes                                                   6,751,266                     6,700,349
Intangible assets                                                      11,438,037                    11,654,033
Other assets                                                            2,364,271                     1,922,477
                                                               -------------------             -----------------

              Total assets                                         $1,027,207,926                  $971,104,999
                                                               -------------------             -----------------

LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits:
   Noninterest-bearing demand                                        $138,267,391                  $139,904,711
   Interest-bearing demand                                             69,460,822                    83,961,295
   Savings and money market                                           198,233,768                   181,658,946
   Large denomination certificates of deposit                          65,908,053                    61,684,287
   Other time                                                         380,476,324                   380,554,636
                                                               -------------------             -----------------

              Total deposits                                          852,346,358                   847,763,875

Short-term debt                                                        46,525,754                    15,962,391
Other borrowings                                                        5,000,000                    10,000,000
Corporation-obligated manditorily redemmable capital                   19,949,939                             0
Interest payable                                                        6,565,383                     6,593,267
Other liabilities                                                       5,178,649                     3,889,128
                                                               -------------------             -----------------

              Total other liabilities                                  83,219,725                    36,444,786
                                                               -------------------             -----------------

              Total liabilities                                       935,566,083                   884,208,661
                                                               -------------------             -----------------

Commitments and contingencies*


SHAREHOLDERS' EQUITY

   Common stock, no par value 20,000,000                               60,829,923                    61,544,172
      authorized; 10,474,053 shares and
      10,468,036 shares outstanding at June 30,
      1997 and December 31, 1996, respectively
   Undivided profits                                                   30,794,646                    25,245,470
   Unrealized gain on securities available for sale                        17,274                       106,696
                                                               -------------------             -----------------

              Total shareholders' equity                               91,641,843                    86,896,338
                                                               -------------------             -----------------

              Total liabilities and shareholders' equity           $1,027,207,926                  $971,104,999
                                                               -------------------             -----------------
</TABLE>

*Standby letters of credit outstanding at June 30, 1997 amounted to $3,583,273

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



<PAGE>


                     TRIANGLE BANCORP, INC. AND SUBSIDIARIES
                        CONSOLIDATED STATEMENTS OF INCOME
                                    UNAUDITED

<TABLE>
<CAPTION>


                                               For the three   For the three    For the six     For the six
                                                months ended    months ended    months ended   months ended
                                               June 30, 1997   June 30, 1996   June 30, 1997   June 30, 1996
INTEREST INCOME:
<S>                                             <C>             <C>             <C>             <C>         
   Interest and fees on loans                   $ 16,576,592    $ 14,591,494    $ 32,149,904    $ 28,386,739
   Securities                                      3,675,942       3,346,270       7,225,786       6,474,879
   Interest bearing deposits                           1,836           2,758           7,627          13,581
   Interest rate swap                                   --            43,125            --            46,910
   Federal funds sold                                 71,225          14,836         182,349          48,816
                                                ------------    ------------    ------------    ------------
     Total interest income                        20,325,595      17,998,483      39,565,666      34,970,925

INTEREST EXPENSE:
   Large denomination certificates of deposit        974,054         867,720       1,952,997       1,679,905
   Other deposits                                  7,575,570       6,567,751      14,812,338      12,864,477
   Short-term debt                                   494,685         686,948         819,272       1,107,481
   Other borrowed funds                              215,453            --           315,061             719
                                                ------------    ------------    ------------    ------------
     Total interest expense                        9,259,762       8,122,419      17,899,668      15,652,582
                                                ------------    ------------    ------------    ------------

Net interest income                               11,065,833       9,876,064      21,665,998      19,318,343

Provision for loan losses                            830,000         722,500       1,330,000       1,035,000
                                                ------------    ------------    ------------    ------------
Net interest income after
  provision for loan losses                       10,235,833       9,153,564      20,335,998      18,283,343
NONINTERST INCOME:
    Service charges on deposit accounts            1,467,934       1,421,184       2,844,468       2,864,150
    Other commissions and fees                       374,659         427,409         840,403         927,161
    Gain (loss) on sale of securities                (17,496)         (7,880)        (27,309)        (12,068)
    Gain (loss) on sale of foreclosed assets         (24,966)          1,818         (24,966)         17,908
    Gain on sale of branch                         2,000,000         558,133       2,000,000         558,133
    Gain on sale of loans                            109,969            --           195,193            --
    Triangle Investment Services                      34,668          69,874         127,179         116,803
    Other operating income                           168,767          58,062         146,509         104,201
                                                ------------    ------------    ------------    ------------
     Total noninterest income                      4,113,535       2,528,600       6,101,477       4,576,288
NONINTERST EXPENSES:
    Salaries and employee benefits                 2,714,137       3,256,287       6,003,338       6,616,305
    Occupancy expense                                698,403         651,180       1,369,946       1,292,173
    Furniture and equipment expense                  566,980         678,169       1,134,337       1,260,924
    Professional fees                                441,596         173,363         875,736         528,373
    Federal deposit insurance expense                 24,000          69,012          42,000         122,530
   Advertising and public relations                  269,102         185,711         482,880         429,790
   Office expenses                                   259,696         239,185         600,418         421,047
   Merger expenses                                    91,876          52,009          91,876          52,009
   Amortization of intangible assets                 352,164         344,625         704,326         686,751
   Other operating expenses                        1,472,781       1,448,599       2,846,533       2,833,135
                                                ------------    ------------    ------------    ------------
     Total noninterest expenses                    6,890,735       7,098,140      14,151,390      14,243,037
                                                ------------    ------------    ------------    ------------
Net income before income taxes                     7,458,633       4,584,024      12,286,085       8,616,594

Income tax expense                                 2,750,000       1,683,150       4,535,000       3,168,687
                                                ------------    ------------    ------------    ------------

Net income                                      $  4,708,633    $  2,900,874    $  7,751,085    $  5,447,907
                                                ============    ============    ============    ============

Primary income per share data:
    Net income                                  $       0.43    $       0.27    $       0.72    $       0.51
    Average common equivalent shares              10,863,337      10,765,357      10,828,751      10,760,429
Income per share data assuming full dilution:
    Net income                                  $       0.43    $       0.27    $       0.71    $       0.51
    Average common equivalent shares              10,917,543      10,766,149      10,900,871      10,761,221

Cash dividends declared per share               $       0.11    $       0.08    $       0.21    $       0.15
</TABLE>

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




<PAGE>


                     TRIANGLE BANCORP, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                    UNAUDITED

<TABLE>
<CAPTION>


                                                                                         JUNE 30,             JUNE 30,
                                                                                           1997                 1996
<S>                                                                                     <C>                  <C>         
Cash flows from operating activities:
         Net income                                                                     $  7,751,085         $  5,447,907
Adjustments to reconcile net income to net cash provided by
  operations:
         Depreciation and amortization                                                     1,005,612            1,229,225
         Accretion of discount on investment securities,                                  
           net of amortization of premiums                                                    65,267              153,414
         Provision for loan losses                                                         1,330,000            1,035,000
         Loss on sale of investments                                                          27,308               12,068
         Loss on disposal of fixed assets                                                    118,762                    -
         Gain on sale of  branch                                                           2,000,000              558,133
         Mortgage loans held for sale:
             Originations                                                                   (948,368)          (9,617,813)
             Sales                                                                         3,361,106           10,519,955
         Provision (benefit) for deferred taxes                                              (24,917)            (122,000)
         Change in other assets and liabilities:
             Interest receivable                                                          (1,151,359)          (1,757,046)
             Other assets                                                                   (447,632)             646,766
              Interest payable                                                               205,902           (1,751,356)
             Other liabilities                                                             1,294,602             (393,773)
                                                                                     ----------------     ----------------

         Net cash provided by operating activities                                        14,587,368            5,960,480
                                                                                     ----------------     ----------------

Cash flows from investing activities:
         Proceeds from maturities and principal paydowns of securities AFS                16,718,067           12,685,833
         Proceeds from maturities and principal paydowns of securities HTM                23,495,173            8,250,000
         Proceeds from sales of investment securities AFS                                 47,469,055           17,354,910
         Purchases of investment securities AFS                                          (58,585,764)         (47,927,335)
         Purchases of investment securities HTM                                          (29,846,288)         (16,003,610)
         Net increase in loans made to customers                                         (71,478,287)         (66,360,665)
         Capital expenditures, bank premises and equipment                                  (318,379)          (3,122,702)
         Proceeds from sale of foreclosed assets                                                   -              271,899
         Proceeds from sale of premises and equipment                                       (328,941)                   -
         Net cash acquired (divested) in acquisition and divestitures                    (10,289,407)          51,244,452
                                                                                     ----------------     ----------------

         Net cash used by investing activities                                           (83,164,771)         (43,607,218)
                                                                                     ----------------     ----------------

Cash flows from financing activities:
         Net increase  in deposit accounts                                                23,646,697           39,153,842
         Net increase (decrease) in short-term debt                                       30,563,363           (8,604,258)
         Net decrease in other borrowings                                                 (5,000,000)                   -
         Proceeds from issuance of corporation-obligated manditorily
           redeemable securities                                                          19,949,939
         Repurchase of common stock                                                       (1,373,667)             (71,962)
         Cash dividends paid                                                              (2,201,908)          (1,452,604)
         Warrants exercised                                                                   69,850                    -
         Shares issued under stock plans                                                     589,568              259,288
                                                                                     ----------------     ----------------

         Net cash provided by financing activities                                        66,243,842           29,284,306
                                                                                     ----------------     ----------------

         Net decrease in cash and cash equivalents                                        (2,333,561)          (8,362,432)

         Cash and cash equivalents at beginning of period                                 36,504,872           45,621,821
                                                                                     ----------------     ----------------

         Cash and cash equivalents at end of period                                      $34,171,311          $37,259,389
                                                                                     ================     ================
</TABLE>

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




<PAGE>


                     TRIANGLE BANCORP, INC. AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
            For the Three and Six Months Ended June 30, 1997 and 1996
                                   (Unaudited)


1.       Financial statement presentation and management representation

         The consolidated financial statements include the accounts and results
         of operations of Triangle Bancorp, Inc., its wholly-owned subsidiaries,
         Triangle Bank and Triangle Capital Trust. Triangle Capital Trust was
         formed under Delaware law on May 28, 1997 as a statutory business trust
         to issue capital securities. Triangle Bank has two wholly owned
         subsidiaries, Triangle Bank Leasing Corp., which is inactive, and
         Triangle Investment Services which provides discount brokerage
         services. All significant intercompany transactions and accounts are
         eliminated in consolidation.

         The interim consolidated financial statements as of and for the three
         and six months ended June 30, 1997 and 1996 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, 1997 and 1996, and the results of operations
         and cash flows for the periods ended June 30, 1997 and 1996. For the
         six month periods ended June 30, 1997 and June 30, 1996, $92,000 and
         $52,000, respectively, in pre-tax merger expenses were incurred. The
         results for the interim periods are not necessarily indicative of what
         results will be for the year ended December 31, 1997.

2.       Capital Securities

         On June 3, 1997, Triangle Capital Trust issued $20 million in 9.375%,
         30 year capital securities. Interest is payable June 1 and December 1
         of each year beginning December 1, 1997. The proceeds of the issuance
         were used to acquire 9.375%, 30 year junior subordinated debentures
         from the Company. The proceeds of the issuance of the junior
         subordinated debentures are being used for general corporate purposes
         including financing branch purchases, other acquisitions, repurchase of
         outstanding common stock of the Company and investments in or
         extensions of credit to it's subsidiaries.


3.       Earnings Per Share

         The Company will adopt Statement of Financial Accounting Standards
         (SFAS) No. 128 "Earnings Per Share" on December 31, 1997. SFAS No. 128
         requires the Company to change its method for computing, presenting and
         disclosing earnings per share information. Upon adoption, all prior
         period data presented will be restated to conform to the provisions of
         SFAS No. 128.

         If the Company had adopted SFAS No. 128 for the period ended June 30,
         1997, the following computation would have been presented on the
         consolidated statements of income:

<PAGE>


3.       Earnings Per Share (Continued)

                                                      Six Months ended June 30,
                                                       1997             1996

Basic income per common share:

  Net income                                         $ 7,751,085   $ 5,447,907

         Weighted average shares:

                  Common shares outstanding           10,477,645    10,429,350

                  Basic income per common share      $      0.74   $      0.52


Diluted income per common share:

Net income                                           $ 7,751,085   $ 5,447,907

         Weighted average shares:
                  Common shares outstanding           10,477,647    10,429,350
                  Dilutive effect of subordinated
                          debt options                     5,209         4,213
                  Dilutive effect of stock options       381,849       328,108
                  Total shares                        10,864,703    10,761,908

                  Diluted income per common share    $      0.71   $      0.51

4.       Reporting Comprehensive Income

         In June 1997, SFAS 130, "Reporting Comprehensive Income" was issued and
         is effective for fiscal years beginning after December 15, 1997. SFAS
         130 establishes standards for reporting and display of comprehensive
         income and its components (revenues, expenses, gains and losses) in a
         full set of general purpose financial statements. SFAS 130 requires the
         disclosure of an amount that represents total comprehensive income and
         the components of comprehensive income in the consolidated statement of
         income. The adoption of SFAS 130 is not expected to have a material
         impact on the financial statements of the Company.

5.       Disclosures about Segments of an Enterprise and Related Information

         In June 1997, SFAS 131, "Disclosures about Segments of an Enterprise
         and Related Information" was issued and is effective for financial
         statements for periods beginning after December 15, 1997. SFAS 131
         established standards for determining an entity's operating segments
         and the type and level of financial information to be disclosed in both
         the annual and interim financial statements. It also established
         standards for related disclosures about products and services,
         geographic areas and major customers. The adoption of SFAS 131 is not
         expected to have a material impact on the financial statements of the
         Company.



<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 14, 1997                         /s/ Michael S. Patterson
                                              Michael S. Patterson,
                                              President and CEO


Date: August 14, 1997                        /s/ Debra L. Lee
                                             Debra L. Lee,
                                             Chief Financial Officer









<PAGE>


                             TRIANGLE BANCORP, INC.
                                  EXHIBIT TABLE


                                                                       PAGE

(19)     Report furnished to security holders

(27)     Financial Data Schedule