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 March 31, 1998



                       Commission file number - 000-21346


                             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                                  14,349,663
            Class                              Outstanding at May 4, 1998


<PAGE>


                                    PART I - FINANCIAL INFORMATION

Item 1.   Financial Statements

          The Consolidated  Balance Sheets as of March 31, 1998 and December 31,
          1997 and the  Consolidated  Statements  of  Income  and  Comprehensive
          Income and Cash Flows for the three month periods ended March 31, 1998
          and March 31, 1997 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 (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.

          Highlights

          During the first quarter of 1998,  the Company  continued its strategy
          of growth with the signing of a definitive agreement to acquire United
          Federal  Savings Bank ("UFSB") in Rocky Mount,  North  Carolina.  UFSB
          operates  thirteen  banking  offices and reported total assets of $307
          million at March 31, 1998.  It is  anticipated  that this  transaction
          will be completed in September  1998,  subject to regulatory  and UFSB
          shareholder approval.

          In March 1998, the shareholders of Guaranty State Bank ("Guaranty") in
          Durham approved the acquisition of their company by Triangle  Bancorp.
          This  transaction  was  completed  on April 16,  1998,  at which  time
          Guaranty's  four offices in Durham and  approximately  $107 million in
          assets were merged into Triangle Bank.

          Operating Results for the Three Months Ended March 31, 1998  and 1997

          The Company's net income for the three months ended March 31, 1998 was
          $4,577,000  compared to  $3,675,000  for the same  period in 1997,  an
          increase of 25%.  Diluted  earnings per share were $0.34 for the three
          months  ended March 31, 1998  compared to $0.28 per share for the same
          period in 1997.

          For the three  months ended March 31, 1998 the  annualized  returns on
          average  assets  and  equity  were  1.17%  and  15.22%,  respectively,
          compared  to 1.19% and  13.51%,  respectively,  for the same period in
          1997.

          Earnings for the period were positively impacted by an increase in net
          interest  income due to an increase  in the volume of earning  assets.
          Net  interest  income for the three  months  ended  March 31, 1998 was
          $14,262,000 compared to $12,436,000 for the same period in 1997, an

<PAGE>


          Part I, Item 2 (Continued)

          Operating Results (Continued)

          increase of $1,826,000 or 15%.  Average earning assets  increased $309
          million,  primarily in loans ($164 million) and investment  securities
          ($145  million).  The  increase in loans is due to internal  growth as
          well as the  acquisition of two branch offices from Branch Banking and
          Trust and eight  branch  offices from United  Carolina  Bank in August
          1997 (the  "Branch  Acquisition")  in which the  Company  assumed  $61
          million in loans outstanding. The increase in investment securities is
          due to the overall  growth in the Company as well as the $130  million
          leveraged  investment  program  implemented  by Triangle in the fourth
          quarter of 1997.  This leveraged  investment  program employs a mix of
          fixed and  variable  Federal  Home Loan Bank  ("FHLB")  borrowings  to
          purchase  mortgage  backed  securities.  The yields on the investments
          exceeds the cost of borrowings  resulting in increased  income for the
          Company.  Average costing liabilities  increased by $299 million,  $30
          million in interest  bearing demand  deposits,  $55 million in savings
          and money market deposits, $59 million in time deposits and IRA's, and
          $157 million in FHLB advances.  The increase in deposits resulted from
          growth in the Company as well as the  deposits  acquired in the Branch
          Acquisition.  The increase in FHLB  advances was due to the  leveraged
          investment  program described above. The net yield on interest earning
          assets decreased to 4.08% at March 31, 1998 from 4.50% as of March 31,
          1997. This decrease was primarily a result of the leveraged investment
          program previously mentioned.

          For the three months  ended March 31,  1998, a loan loss  provision of
          $1,072,000  was made  compared to a provision of $544,000 for the same
          period in 1997.  The increase in  provision  was due to an increase in
          net  charge  offs in the first  quarter of 1998  compared  to the same
          period in 1997 as well as growth in the loan portfolio and a continued
          commitment to maintaining adequate loan loss reserves.

          Noninterest  income  for the three  months  ended  March 31,  1998 was
          $2,990,000  compared to  $2,491,000  for the same  period in 1997,  an
          increase of $499,000 or 20%. Increases were seen in service charges on
          deposit accounts, other commissions and fees, gains on sales of loans,
          other fee income,  and other  operating  income.  These increases were
          partially  offset  by lower  gains on sales of  securities.  Also,  in
          January  1997,  Mecklenburg  segregated a group of  securities  into a
          trading portfolio.  During the first quarter of 1997,  $310,000 in net
          trading  gains  were  recognized  by  Mecklenburg.  By the time of the
          Company's  acquisition  of  Mecklenburg  in October 1997,  the trading
          assets had been disposed of and the Company held no trading  assets at
          December 31, 1997.

          Noninterest  expenses increased $803,000,  or 9%, for the three months
          ended March 31, 1998 compared to the same period in 1997. Increases in
          occupancy expenses,  furniture and equipment expenses and amortization
          of  intangibles  were  incurred  due to the  addition  of ten  banking
          offices through the Branch Acquisition.

          Financial Condition

          Total assets were $1.607  billion as of March 31, 1998, an increase of
          $2 million  from  December 31, 1997.  The loan  portfolio  and federal
          funds sold increased $10 million and $26 million, respectively,  while
          investment   securities  decreased  $24  million.   Asset  growth  was
          partially  offset by the payoff of $45 million of FHLB advances by the
          Banks.


<PAGE>



          Part I, Item 2 (Continued)

          Financial Condition (continued)

          The Company continued to maintain strong loan loss reserves during the
          period.  As a result of increased net  chargeoffs and loan growth both
          internally  and  due to the  Branch  Acquisition,  the  provision  was
          increased to $1,072,000 for the three months ended March 31, 1998 from
          $544,000 for the same period in 1997.  Nonperforming  assets decreased
          to $6.2  million at March 31, 1998 from $6.4  million at December  31,
          1997 and from $6.8 million at March 31, 1997.  The loan loss  reserves
          at March 31, 1998 were 1.45% of gross loans and 226% of  nonperforming
          assets  and  other  real  estate  owned  compared  to 1.46%  and 175%,
          respectively,  at March 31, 1997.  Management feels loan loss reserves
          are  adequate.  A summary of certain  information  related to the loan
          loss reserves and nonperforming assets as of March 31, 1998 follows:


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


Analysis of Reserve for Loan Losses:

Beginning Balance, January 1, 1998                                      $13,800
                                                                        -------


Deduct charge-offs:
         Commercial financial and agricultural                              486
         Real estate, construction and land development                       0
         Installment loans to individuals                                   219
         Credit card and related plans                                      177
         Lease receivables                                                   51
                                                                        -------
                                                                            933
                                                                        -------
Add recoveries:
         Commercial, financial and agricultural                              12
         Real estate, construction and land development                      11
         Installment loans to individuals                                    12
         Credit card and related plans                                       17
                                                                        -------
                                                                             52
                                                                        -------

Net charge-offs                                                             881

Additions charged to operations                                           1,072
                                                                        -------

Ending balance, March 31, 1998                                          $13,991
                                                                        =======

Ratio of net charge-offs to average loans 
   outstanding during the period                                           0.37%


<PAGE>



Part I, Item 2 (Continued)

Financial Condition (Continued)


Analysis of Nonperforming Assets at March 31, 1998:

Nonaccrual loans:
         Commercial, financial and agricultural                          $1,266
         Real estate, construction and land development                   1,799
         Installment loans to individuals                                    35
         Credit card and related plans                                       53
                                                                         ------
                                                                          3,153

Loans contractually past due 90 days or more
     as to principal or interest                                          2,686
Foreclosed assets                                                           354
                                                                         ------

TOTAL                                                                    $6,193
                                                                         ======

          Total  deposits  were $1.26  billion at March 31, 1998, an increase of
          $68 million from December 31, 1997. Most of the increase from December
          31, 1997 was due to growth in public funds as a lower cost alternative
          to retail certificates of deposits.

          Capital

          The  adequacy  of  capital  is  reviewed  regularly  by the  Company's
          management,  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 March 31, 1998 were as follows:


                                                      Actual   Required  Excess
                                                      Percent  Percent   Percent

          Tier 1   Capital to Risked Based Assets     10.63 %    4.00 %   6.63 %

          Total   Capital to Risked Based Assets      11.88%     8.00 %   3.88 %

          Leverage Ratio                                7.57 %   4.00 %   3.57 %




<PAGE>



                           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

          On April 28,  1998,  the Annual  Shareholders  Meeting was held by the
          Company to consider the following matters:  (i) to elect 10 members to
          the Board of  Directors;  (ii) to consider  and act upon a proposal to
          amend  Article 2 of the  Corporation's  Articles of  Incorporation  to
          increase  the  number  of  authorized  shares  of  common  stock  from
          20,000,000 to 50,000,000; (iii) to consider and act upon a proposal to
          approve the Triangle  Bancorp,  Inc. 1998 Omnibus Stock Plan; and (iv)
          to consider a proposal to ratify the  appointment of Coopers & Lybrand
          L.L.P. as independent public accountants of the Company for 1998.

          All  directors  nominated in proposal  (i) were elected as  directors.
          Proxies were solicited  pursuant to Regulation 14 under the Securities
          and Exchange Act of 1934, and there was no  solicitation in opposition
          to the nominees.

          The results of the other proposals were as follows:

          The  results  of  proposal   (ii),   approval  of   amendment  to  the
          Corporation's  Articles of  Incorporation  to increase the  authorized
          number of  shares  of Common  Stock  from  20,000,000  to  50,000,000:
          9,061,269 for; 530,356 against; and 293,349 abstain.

          The results of proposal (iii),  approval of the Triangle Bancorp, Inc.
          1998 Omnibus  Stock Plan:  7,196,422  for;  423,881  against;  362,581
          abstain; and 1,902,047 broker non-vote.

          The results of  proposal  (iv),  ratification  of the  appointment  of
          Coopers & Lybrand  L.L.P.  as  independent  public  accountants of the
          Company for 1998: 9,822,334 for; 22,160 against; and 40,399 abstain.


Item 5.   Other Information

          Not Applicable.



<PAGE>


Part II,  Item 4 (Continued)


Item 6.   Exhibits and Reports on Form 8-K

a)        Exhibits

          (27)     Financial data schedule.


b)        Reports on Form 8-K

          A Current Report on Form 8-K was filed on March 11, 1998 to report the
          execution of an Agreement and Plan of Reorganization  and Merger dated
          March 4, 1998 by and among Triangle Bancorp,  Inc.,  Triangle Bank and
          United Federal  Savings Bank,  Rocky Mount,  North Carolina  ("UFSB"),
          whereby UFSB will be merged into Triangle Bank.

          A Current Report on Form 8-K was filed on March 20, 1998 to report the
          authorization  of  the  repurchase  of up to  100,000  shares  of  the
          registrant's common stock.



<PAGE>



                     TRIANGLE BANCORP, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                                  IN THOUSANDS
                                    UNAUDITED

                                               March 31, 1998  December 31, 1997
                                               --------------  -----------------
ASSETS
Cash and due from banks                         $    48,272    $    50,398
Federal funds sold                                   27,525          1,549
Interest-bearing deposits in banks                   13,782         23,027
Securities available for sale                       392,526        411,920
Securities held to maturity, market value;
       $86,485 and $95,946                           89,815         94,793
Loans and Leases, less allowance for losses of
      $13,991 and $13,800                           952,120        942,595
Premises and equipment, net                          33,481         32,503
Interest receivable                                  12,922         12,626
Deferred income taxes                                 7,591          6,567
Intangible assets                                    26,813         27,681
Other assets                                          2,260          1,353
                                                -----------    -----------

         Total Assets                           $ 1,607,107     $1,605,012
                                                ===========     ==========

LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits:
     Noninterest-bearing demand                 $   185,546     $  181,682
     Interest-bearing demand                        166,623        167,651
     Savings and money market                       243,960        242,127
     Large denomination certificates of deposit     170,093        111,293
     Other time                                     494,090        489,173
                                                -----------    -----------

         Total Deposits                           1,260,312      1,191,926

Short-term debt                                      40,309         61,506
Federal Home Loan Bank advances                     148,500        193,500
Corporation obligated manditorily
     redeemable securities                           19,951         19,951
Interest payable                                      7,212          8,546
Other liabilities                                     9,276         10,490
                                                -----------    -----------

         Total other liabilties                     225,248        293,993
                                                -----------    -----------

         Total liablities                         1,485,560      1,485,919
                                                -----------    -----------

Commitments and contingencies*

SHAREHOLDERS' EQUITY

Common stock, no par value 20,000                    76,737         75,562
     authorized; 13,088 shares and
     12,981 shares outstanding at
     March 31, 1998 and December 31, 1997,
     respectively
Undivided profits                                    46,332         43,324
Accumulated other comprehensive income               (1,522)           207
                                                -----------    -----------

         Total shareholders' equity                 121,547        119,093
                                                -----------    -----------
         Total liablities and 
              shareholders' equity              $ 1,607,107     $1,605,012
                                                ===========     ==========


Standby letters of credit outstanding at March 31, 1998 amounted to $5,202

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


<PAGE>



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

                                                   For the three  For the three
                                                    months ended   months ended
                                                   March 31, 1998 March 31, 1997
                                                   -------------- --------------
INTEREST INCOME
     Interest and fees on loans                      $21,927,471    $18,632,219
     Securities                                        7,595,306      5,339,088
     Interest bearing deposits                           255,079        157,407
     Federal funds sold                                  100,623         25,494
                                                     -----------    -----------
          Total interest income                       29,878,479     24,154,208

INTEREST EXPENSE:
     Large denomination certificates of deposit        2,073,291      1,589,182
     Other deposits                                    9,902,634      8,876,039
     Capital securities                                  469,168             --
     Short-term debt                                     565,114        259,083
     Other borrowed funds                              2,606,147        993,576
                                                     -----------    -----------
          Total interest expense                      15,616,354     11,717,880
                                                     -----------    -----------

Net interest income                                   14,262,125     12,436,328

Provision for loan losses                              1,071,600        544,000
                                                     -----------    -----------
Net interest income after
     provision for loan losses                        13,190,525     11,892,328
                                                     -----------    -----------
NONINTEREST INCOME:
     Service charges on deposit accounts               1,750,665      1,400,647
     Other commissions and fees                          622,851        476,234
     Gain on sale of securities                           38,724         68,121
     Trading gains, net                                       --        309,804
     Gain on sale of loans                               198,767         85,224
     Other fee income                                    134,399         95,012
     Other operating income                              245,039         55,718
                                                     -----------    -----------
          Total noninterest income                     2,990,445      2,490,760
                                                     -----------    -----------

NONINTEREST EXPENSES:
     Salaries and employee benefits                    3,860,852      3,860,519
     Occupancy expenses                                1,004,963        765,117
     Furniture and equipment expenses                    828,921        631,857
     Professional fees                                   263,532        586,798
     Federal deposit insurance expense                    30,000         18,000
     Advertising and public relations                    223,123        295,030
     Office expenses                                     387,299        361,595
     Telephone and communication                         307,373        240,633
     Merger expense                                      185,859          5,000
     Amortization of intangible assets                   791,829        390,607
     Other operating expense                           1,407,911      1,333,917
                                                     -----------    -----------
     Total noninterest expenses                        9,291,662      8,489,073
                                                     -----------    -----------

Net income before taxes                                6,889,308      5,894,015

Income tax expense                                     2,312,203      2,218,693
                                                     -----------    -----------

Net income                                           $ 4,577,105    $ 3,675,322
                                                     ===========    ===========

Basic income per share data:
     Net income                                      $      0.35    $      0.28
     Average shares outstanding                      $13,057,382    $12,920,808
Diluted income per share data:
     Net income                                      $      0.34    $      0.28
     Average common equivalent shares                $13,536,567    $13,359,261

Cash dividends declared per share                    $      0.12    $      0.09


<PAGE>



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


<TABLE>
<CAPTION>
                                                                                                        FOR THE            FOR THE
                                                                                                      THREE MONTHS      THREE MONTHS
                                                                                                         ENDED              ENDED
                                                                                                        MARCH 31,          MARCH 31,
                                                                                                          1998               1997
                                                                                                        --------           --------
<S>                                                                                                     <C>                <C>     
Cash flows from operating activities:
         Net income                                                                                     $  4,577           $  3,675
Adjustments to reconcile net income to net cash provided by (used in)
  operations:
         Depreciation and amortization                                                                     1,431                897
         Accretion of discount on investment securities,
           net of amortization of premiums                                                                   464                219
         Provision for loan losses                                                                         1,072                544
         Gain on sale of investments                                                                         (39)               (68)
         Gain on trading securities                                                                           --               (310)
         Gain on disposal of premises and equipment                                                           (4)              (129)
         Net change in trading securities                                                                     --            (12,156)
         Mortgage loans held for sale:
             Originations                                                                                     --               (944)
             Sales                                                                                            --              3,357
         Provision (benefit) for deferred taxes                                                              (50)                --
         Change in other assets and liabilities:
             Interest receivable                                                                            (296)              (789)
             Other assets                                                                                   (907)              (492)
              Interest payable                                                                            (1,334)              (222)
             Other liabilities                                                                            (1,214)             1,883
                                                                                                        --------           --------

         Net cash provided by (used in) operating activities                                               3,700             (4,535)
                                                                                                        --------           --------

Cash flows from investing activities:
         Proceeds from maturities and principal paydowns of securities AFS                                18,177              5,134
         Proceeds from maturities and principal paydowns of securities HTM                                12,715             11,032
         Proceeds from sales of investment securities AFS                                                 10,787             57,214
         Proceeds from sales of investment securities HTM                                                  1,250                 --
         Purchases of investment securities AFS                                                          (12,691)           (62,705)
         Purchases of investment securities HTM                                                           (8,994)            (4,280)
         Net increase in loans made to customers                                                         (10,597)           (42,863)
         Capital expenditures, bank premises and equipment                                                (1,541)              (478)
         Proceeds from sale of premises and equipment                                                          4                210
                                                                                                        --------           --------

         Net cash provided by (used in) investing activities                                               9,110            (36,736)
                                                                                                        --------           --------

Cash flows from financing activities:
         Net increase  in deposit accounts                                                                68,386             49,865
         Net decrease in short-term debt                                                                 (21,197)           (20,299)
         Net increase (decrease) in FHLB advances                                                        (45,000)             8,500
         Repurchase of common stock                                                                           --               (545)
         Cash dividends paid                                                                              (1,569)            (1,049)
         Shares issued under stock plans                                                                   1,175                429
                                                                                                        --------           --------

         Net cash provided by financing activities                                                         1,795             36,901
                                                                                                        --------           --------

         Net increase (decrease) in cash and cash equivalents                                             14,605             (4,370)

         Cash and cash equivalents at beginning of period                                                 74,974             43,615
                                                                                                        --------           --------

         Cash and cash equivalents at end of period                                                     $ 89,579           $ 39,245
                                                                                                        ========           ========

         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 Months Ended March 31, 1998 and 1997
                                   (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  three
     months  ended  March 31,  1998 and 1997 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 March 31,
     1998 and 1997, and the results of operations and cash flows for the periods
     ended March 31, 1998 and 1997. The results for the interim  periods are not
     necessarily  indicative of what results will be for the year ended December
     31, 1998.

2.   Reporting Comprehensive Income

     On January 1, 1998,  the Company  adopted the  provisions  of  Statement of
     Financial  Accounting Standards No. 130, "Reporting  Comprehensive  Income"
     ("SFAS No. 130").  As required by SFAS No. 130, prior year  information has
     been modified to conform with the new presentation.

     Comprehensive  income includes net income and other  comprehensive  income.
     Other  comprehensive  income  includes  all other  changes  to an  entity's
     equity, with the exception of transactions with shareholders. The Company's
     only component of other  comprehensive  income relates to unrealized  gains
     and losses on available for sale securities.

     The Company's total comprehensive  income for the three month periods ended
     March  31,  1998 and  1997 was  $2,848,000  and  $3,254,000,  respectively.
     Information  concerning the Company's  other  comprehensive  income for the
     three month periods ended March 31, 1998 and 1997 is as follows:

                                                             (In thousands)
                                                           1998          1997
                                                         --------      ------ 
     Unrealized gains(losses) on available for sale
               securities                                $  (2,645)    $ (683)

     Reclassification of gains recognized in net income        25          45

     Income tax benefit relating to unrealized gains
            (losses) on available for sale securities         891         217
                                                         --------      ------ 

     Other comprehensive income                          $ (1,729)     $ (421)
                                                         ========      ====== 


<PAGE>



3.   Disclosures about Segments of an Enterprise and Related Information

     On January 1, 1998,  the Company  adopted the  provisions  of  Statement of
     Financial Accounting  Standards No. 131,  "Disclosures about Segments of an
     Enterprise  and  Related  Information"  ("SFAS  No.  131").  SFAS  No.  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 No. 131 did not have a material  impact on
     the financial statements of the Company.

4.   Subsequent Event

     On April 16, 1998, the Company  completed the acquisition of Guaranty State
     Bank ("Guaranty")  headquartered in Durham, North Carolina.  Guaranty had 4
     branch  offices and $104 million in total assets as of March 31, 1998.  The
     merger was  accounted for as a pooling of interests  and  accordingly,  the
     Company's  future  historical  consolidated  financial  statements  will be
     restated to reflect the accounts and results of  operations  of Guaranty as
     if the merger had been effective as of the earliest  period  presented.  In
     connection  with the  acquisition,  1.41 shares of the Company's stock were
     issued for each share of Guaranty's outstanding stock or approximately 1.26
     million shares.

     The following  unaudited pro forma data summarizes the combined  results of
     operations  of the Company  and  Guaranty  as if the  acquisition  had been
     completed as of March 31, 1998.

                             Three months
                             ended March         Year ended December 31
                              31, 1998        1997         1996       1995
                                  (In thousands, except per share data)

     Total income              $35,100     $128,466     $107,809    $89,132
     Net interest income        15,419       57,915       49,491     43,095
     Net income                  4,911       17,724       14,300     10,086
     Earnings per share:
     Primary                       .34         1.25         1.04        .74
     Fully diluted                 .33         1.20         1.00        .72


<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:  May  15, 1998                                 \s\ Debra L. Lee
                                                     ---------------------------
                                                     Debra L. Lee,
                                                     EVP/Chief Financial Officer






<PAGE>



                             TRIANGLE BANCORP, INC.
                                  EXHIBIT INDEX


EXHIBIT
NUMBER            NAME                                                 PAGE
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27                Financial Data Schedule