8-K

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT

                     Pursuant to Section 13 or 15(d) of the
                         Securities Exchange Act of 1934

                          Date of Report: July 26, 2004

                             FOUR OAKS FINCORP, INC.

             (Exact name of registrant as specified in its charter)




       North Carolina               000-22787                 56-2028446
- ------------------------       -------------------       ----------------------
(State of incorporation)      (Commission File No.)        (I.R.S. Employer
                                                         Identification Number)


                              6114 U.S. 301 SOUTH,
                         FOUR OAKS, NORTH CAROLINA 27524
                    (Address of principal executive offices)

                                 (919) 963-2177
              (Registrant's telephone number, including area code)

               This document contains 2 pages, excluding exhibits.


ITEM 7.  FINANCIAL STATEMENTS AND EXHIBITS


(c)          Exhibits-- The following exhibit is furnished pursuant to Item 12
                        as part of this Current Report on Form 8-K:

             Exhibit No.       Description of Document
             ----------        -----------------------
                99.1           Press Release issued on July 26, 2004.


ItEM 12.   RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On July 26, 2004, Four Oaks Fincorp, Inc. (OTC BB: FOFN) issued a press release
announcing reported financial results for the three and six months periods ended
June 30, 2004. The full text of the press release is set forth in Exhibit 99.1
hereto and is incorporated herein by reference.

Pursuant to General Instruction B.6 of Current Report on Form 8-K, the
information in this Item 12 is furnished and shall not be deemed to be "filed"
for purposes of Section 18 of the Securities Exchange Act of 1934, as amended,
or otherwise subject to the liability of that section. Furthermore, the
information in this Item 12 shall not be deemed to be incorporated by reference
into the filings of the registrant under the Securities Act of 1933, as amended.


SIGNATURES

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

FOUR OAKS FINCORP, INC.

By:   /s/  Ayden R. Lee, Jr.,
- -------------------------------------------
      Ayden R. Lee, Jr.
      President and Chief Executive Officer


Date:  July 26, 2004

EX-99.1

                                                                    Exhibit 99.1

    Four Oaks Fincorp, Inc. Announces 2004 Second Quarter Results

    FOUR OAKS, N.C.--(BUSINESS WIRE)--July 26, 2004--Four Oaks
Fincorp, Inc., (OTCBB: FOFN) the holding company for Four Oaks Bank &
Trust Company, today announced second quarter results for fiscal year
2004. Net income increased 60% in the second quarter of 2004 as
compared to the same period of 2003. Net income was $982,000 or $0.36
per share for the quarter ended June 30, 2004, compared to $618,000 or
$0.23 per share in 2003. For the six months ending June 30, 2004, net
income was $1,781,000 or $0.66 per share, a 43% increase over the net
income of $1,246,000 or $0.46 per share earned in the first six months
of 2003. Annualized return on average equity and return on average
assets at June 30, 2004 were 10.38% and 0.98%, respectively, and
increased from 7.79% and 0.78%, respectively, at June 30, 2003. The
Company increased the level of dividends paid to its shareholders from
the $0.09 per share that was paid in the second quarter of 2003 to
$0.10 per share paid in June 2004. Year to date dividends paid through
June 30, 2004 were $0.20 per share, up from $0.18 as of June 30, 2003.
    Improved earnings trends continued in the second quarter and first
half of 2004, when compared to the same periods of 2003, as is
evidenced by the 22% increase in net interest income after the
provision for loan losses. Operating expenses increased 7% in the
first six months of 2004, as compared to 2003, primarily due to
increased salaries and benefits associated with expansion of our
locations. Pricing strategies implemented during 2003 continued to
enhance our ability to compete effectively for loans and deposits in
our local markets.
    The Company's balance sheet growth continued in 2004. Total
deposits of $303,820,000 at June 30, 2004 grew 11% from December 31,
2003. Net loans increased 10% to $296,706,000. Shareholders' equity
grew to $33,847,000, resulting in a 3% increase over December 31,
2003. Book value per share at June 30, 2004 was $12.43 as compared to
$12.29 at December 31, 2003. Shareholders' equity as a percentage of
total assets remains high at 8.8%.
    With $384,940,000 in total assets, Four Oaks Fincorp, Inc. through
its wholly owned subsidiary, Four Oaks Bank & Trust Company, offers a
broad range of financial services through its ten offices in Four
Oaks, Clayton, Smithfield, Garner, Benson, Fuquay-Varina, Wallace, and
Holly Springs, North Carolina.

    CONTACT: Four Oaks Fincorp, Inc.
             Ayden R. Lee, Jr. or Nancy S. Wise, 919-963-2177