Crescent State Bank - Crescent Financial Corporation Announces Financial Results For Second Quarter Ending June 30, 2008

CARY, N.C. – Crescent Financial Corporation (Nasdaq:CRFN), ancestor aggregation of Crescent State Bank headquartered in Cary, North Carolina, has appear unaudited net assets for the division concluded June 30, 2007 of $1,031,000, compared to net assets of $1,448,000 for the above-mentioned year period. Diluted balance per allotment for the accepted three-month aeon was $0.11 compared to $.15 for the additional division of 2007. Earnings in the accepted aeon were impacted by net absorption allowance compression consistent from the lower absorption amount environment.

Net absorption assets was $6.3 actor for the accepted division compared to $6.6 actor for the allusive above-mentioned year quarter. Average earning assets grew by $124.5 million, from $705.6 actor to $830.1 million. Despite advance in earning assets, the aggressive accommodation appraisement environment, the about top amount of money to armamentarium the able accommodation appeal and the appulse of a amount ambiance which is 325 base credibility lower than a year ago resulted in lower net absorption income. Net absorption allowance beneath by 68 base credibility to 3.05% for the division concluded June 30, 2008 compared with 3.73% for the above-mentioned year quarter.

Non-interest assets grew by $170,000 or 26% to $817,000 compared to $647,000 for the above-mentioned year quarter. Revenues added above several non absorption assets categories including chump account fees, bead account charges, balance on banknote amount of case endemic allowance and mortgage accommodation alpha fees. The Company incurred a $63,000 accident on the disposition of added absolute acreage endemic during the division which was account by a $16,000 accretion on the auction of balance and $45,000 in added miscellaneous, non-recurring revenue.

Non-interest costs added by $470,000 or 10% from $4.6 actor during the additional division of 2007 to $5.1 actor for the accepted quarter. Personnel, control and abstracts processing costs calm added by $478,000 as a aftereffect of aperture two new cyberbanking offices and advance in both lending and abutment staff. As a aftereffect of changes fabricated in mid 2007 to appraisal rates, FDIC allowance premiums added by $84,000. Advertising, business and business development costs beneath by $29,000 and added non-interest costs decreased by $64,000. There were non-recurring items in both the accepted and above-mentioned three-month periods. During the additional division of 2007, $190,000 of costs were non-recurring, the majority of which accompanying to amalgamation Port City Capital Bank into Crescent State Bank. During the additional division of 2008, the Company was reimbursed for $65,000 of costs incurred during the aboriginal quarter. The accouterment for accommodation losses was $459,000 during the accepted division compared with $322,000 for the above-mentioned year period.

For the six months concluded June 30, 2008, the Company appear net assets of $2,031,000 compared to $2,914,000 for the six months concluded June 30, 2007. Diluted balance per allotment was $0.21 for the accepted aeon and $0.30 for the above-mentioned six-month period. Net absorption assets was banausic at $12.8 million. Average earning assets for the accepted six-month aeon added by $131.0 million, but was account by a 61 base point abatement in net absorption allowance from 3.77% to 3.16%. Non-interest assets added by $349,000, or 27%, primarily in the areas of chump account fees, mortgage accommodation alpha fees and balance on banknote amount of case endemic activity insurance. Non-interest costs added by $1.3 million, or 14%, with $1.1 actor attributable to personnel, control and FDIC allowance exceptional expenses. The accouterment for accommodation losses for the accepted six-month aeon was $1.3 actor compared with $682,000 for the above-mentioned year period.

Crescent Financial Corporation appear absolute assets on June 30, 2008 of $920.6 actor absorption an 18% access over absolute assets of $782.2 actor on June 30, 2007. Total net loans added by 22% from $600.8 actor to $734.0 million, absolute deposits added 6% from $617.8 actor to $653.7 actor and absolute borrowings added by 125% from $75.2 actor to $169.1 million. Total stockholders’ disinterestedness grew by 9% from $86.0 actor to $94.1 million.

" Recognizing that the accepted bread-and-butter ambiance is actual difficult for the absolute banking casework industry, we are admiring that we are able to address abiding balance in allegory with the aboriginal division of this year while continuing to aggrandize the antithesis area with solid accommodation growth,” said Michael Carlton, admiral of Crescent State Bank. “During the aboriginal six months of the year we accept been able to advance a connected mix aural the accommodation portfolio as construction, accretion and development accomplish up alone 26% of the portfolio while bartering absolute acreage reflects 53% of the absolute loans. As a Company we abide to carefully adviser accident aural the portfolio and are admiring that our acclaim above has captivated up during these ambiguous bread-and-butter times. Our levels of non assuming assets and charge–offs are decidedly beneath than our associate accumulation and reflect our bourgeois underwriting practices. Nonperforming loans to absolute loans were .10% while the allegation offs for the additional division were alone $29,000 or .02% of boilerplate loans on an annualized basis. As we move into the additional bisected of the year we will abide to focus on non-interest assets and bigger amount ascendancy while continuing to body the basement bare for a billion dollar banking institution.”

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Information in this columnist absolution contains "forward-looking statements." These statements absorb risks and uncertainties that could could cause absolute after-effects to alter materially, including after limitation, the accoutrement of approaching bread-and-butter conditions, authoritative budgetary and budgetary policies, aldermanic and authoritative changes, the risks of changes in absorption rates, and the accoutrement of competition. Additional factors that could could cause absolute after-effects to alter materially are discussed in Crescent Financial Corporation’s contempo filings with the Securities and Exchange Commission, including, but not bound to, its Annual Report on Form 10-K and its added alternate reports.

Patty Briguglio
MMI Associates, Inc.
(919) 233-6600
patty@mmimarketing.com
PR Firms Raleigh, NC

Crescent State Bank is a wholly endemic accessory of Crescent Financial Corporation. The case has absolute assets of $920.6 million, deposits of $653.7 million, and net loans of $734.0 actor as of June 30, 2008. The case operates 13 full-service cyberbanking offices in the communities of Cary (2), Apex, Clayton, Garner, Holly Springs, Sanford, Southern Pines, Pinehurst, Raleigh, Knightdale and Wilmington (2), North Carolina. For added information, appointment www.crescentstatebank.com.