EX-99.1 3 dex991.htm PRESS RELEASE PRESS RELEASE
 
Exhibit 99.1
 
    
- NEWS RELEASE -
Date:
   
January 14, 2003
Contact:
   
Michael G. Carlton
    
President and CEO
    
Bruce W. Elder
    
Vice President
    
(919) 460-7770
 
Crescent Financial Corporation
Announces Record Fourth Quarter
And Year End Results
 
CARY, N.C. – Crescent Financial Corporation (NasdaqNM: CRFN), parent company of Crescent State Bank today announced net income for the three-month period ended December 31, 2002 of $401,000 or $.18 per diluted share compared to $155,000 for the three-month period ended December 31, 2001 or $.11 per share. Net income increased by 159% during the current quarter compared with the fourth quarter of 2001. Earnings per share growth was 64% due to an increase in the weighted average shares outstanding resulting primarily from the sale of 690,000 additional shares in August 2002.
 
For the year ended December 31, 2002, the Company reported a net profit of $1,228,000 up 300% when compared to $307,000 for the year ended December 31, 2001. Diluted earnings per share for the current twelve-month period was $.70 compared to $.21 for the prior year period. Weighted average shares outstanding for the current year were greater than the prior year due primarily to the sale of 690,000 additional shares in August 2002. Per share data for the 2001 reporting period has also been adjusted to reflect the 9-for-8 stock split effected as a dividend paid during the second quarter of 2002. Diluted earnings per share on a pre-tax basis was $.75 and $.21 for the years ended December 31, 2002 and 2001, respectively.
 
Total assets on December 31, 2002 were $182 million, reflecting a 41% increase over total assets of $129 million reported on December 31, 2001. Total net loans at December 31, 2002 increased by 56% to $124 million compared to $79 million at December 31, 2002. Total deposits increased 35% from $113 million on December 31, 2001 to $153 million on December 31, 2001. Total stockholders’ equity increased by 70% to almost $18 million. Net proceeds of the public offering in August 2002 were just under $6 million.
 
Mike Carlton, President and CEO of the Company and the Bank stated, “We are extremely pleased to report our second consecutive year of profitability. The increased earnings for both the quarter and the year reflect significant growth in the loan portfolio, a substantial decline in the Bank’s overall cost of funds and increased non-interest fee opportunities from mortgage loan originations and deposit account growth. We are proud of our employees’ accomplishments in 2002 and will strive to continue to provide quality financial services in our market areas and focus on enhancing shareholder value. We believe that Crescent is well positioned for the upcoming year as we continue our investments in expanding our branch system, lending capabilities and growing non-interest income.”

 
The Bank has received regulatory approval to open its fifth full-service banking office in Holly Springs, North Carolina. Holly Springs is a growing community located in southern Wake County. Crescent anticipates opening the office during the first quarter of 2003.
 
Crescent State Bank is headquartered in Cary, North Carolina and operates four full-service banking offices in Cary (2), Apex and Clayton, North Carolina. Crescent Financial Corporation stock can be found on the NASDAQ Small Cap Market trading under the symbol CRFN. Investors can access additional corporate information, product descriptions and online services through the Bank’s website at www.crescentstatebank.com.
 
Information in this press release contains “forward-looking statements.” These statements involve risks and uncertainties that could cause actual results to differ materially, including without limitation, the effects of future economic conditions, governmental fiscal and monetary policies, legislative and regulatory changes, the risks of changes in interest rates and the effects of competition. Additional factors that could cause actual results to differ materially are discussed in Crescent Financial Corporation’s recent filings with the Federal Deposit Insurance Corporation, including but not limited to its Annual Report on Form 10-K and its other periodic reports.
 
Crescent Financial Corporation Income Statements (unaudited)
(000s omitted except for per share data)
 
      
Three Months Ended
Dec 31, 2002
     
Three Months Ended
Dec 31, 2001
     
Twelve Months Ended
Dec 31, 2002
     
Twelve Months Ended
Dec 31, 2001 (b)
Interest Income
     
2,366
     
1,904
     
8,556
     
7,163
Interest Expense
     
850
     
834
     
3,189
     
3,401
Net interest income
     
1,516
     
1,070
     
5,367
     
3,762
Provision for loan losses
     
188
     
166
     
689
     
503
Net interest income after provision for loan losses
     
1,328
     
904
     
4,678
     
3,259
Non-interest income
     
249
     
191
     
768
     
490
Non-interest expense
     
1,098
     
940
     
4,124
     
3,442
Income before taxes
     
479
     
155
     
1,322
     
307
Income tax expense
     
78
     
—  
     
94
     
—  
Net income
     
401
     
155
     
1,228
     
307
Earnings per share:
                            
Basic
     
.19
     
.11
     
.72
     
.21
Diluted
     
.18
     
.11
     
.70
     
.21

Weighted avg. shares o/s (a)
                    
Basic
   
2,143,249
   
1,450,718
   
1,705,052
   
1,450,718
Diluted
   
2,204,015
   
1,450,718
   
1,754,268
   
1,450,718
 
(a)
 
2001 per share data has been adjusted to reflect the 9-for-8 stock split effected as a stock dividend paid during the second quarter of 2001.
(b)
 
Derived from audited financial statements.
 
Crescent Financial Corporation Balance Sheets
(000s omitted)
(unaudited)
 
    
Dec 31, 2002
     
Dec 31, 2001 (a)
     
% Change
  
Assets
                     
Cash and non-interest bearing deposits
   
9,461
     
10,095
     
(6
)
Interest-earning deposits with banks
   
81
     
4,589
     
(98
)
Federal funds sold
   
16,691
     
10,319
     
62
 
Securities available for sale
   
28,287
     
22,833
     
24
 
Federal Home Loan Bank stock
   
500
     
250
     
100
 
Loans Receivable, net of allowance
   
123,962
     
79,458
     
56
 
Accrued interest and dividends receivable
   
552
     
513
     
8
 
Premises and equipment, net
   
1,631
     
851
     
92
 
Other assets
   
625
     
267
     
134
 
Total Assets
   
181,790
     
129,175
     
41
 
Liabilities and Stockholders’ Equity
                     
Liabilities
                     
Total Deposits
   
153,106
     
113,155
     
35
 
Borrowed funds
   
10,000
     
5,000
     
100
 
Accrued interest payable
   
217
     
184
     
18
 
Accrued expenses and other liabilities
   
735
     
386
     
90
 
Total Liabilities
   
164,058
     
118,725
     
38
 
Stockholders’ Equity
                     
Total Stockholders’ Equity
   
17,732
     
10,450
     
70
 
Total Liabilities and Stockholders’ Equity
   
181,790
     
129,175
     
41
 
 
(a) Derived from audited financial statements.

 
Crescent Financial Corporation
Selected Financial Ratios
(000s omitted except per share data)
(unaudited)
 
      
As of or for the three months
ended December 31,
       
As of or for the twelve months
ended December 31,
  
      
2002
       
2001
       
2002
       
2001
  
Per share data: (a)
                                            
Basic earnings per share
     
$
0.19
 
     
$
0.11
 
     
$
0.72
 
     
$
0.21
 
Diluted earnings per share
     
 
0.18
 
     
 
0.11
 
     
 
0.70
 
     
 
0.21
 
Book value per share
     
 
8.27
 
     
 
7.20
 
     
 
8.27
 
     
 
7.20
 
Performance ratios:
                                            
Return on average assets
     
 
0.92
%
     
 
0.53
%
     
 
0.85
%
     
 
0.31
%
Return on average equity
     
 
9.11
%
     
 
5.73
%
     
 
9.31
%
     
 
2.97
%
Net interest margin
     
 
3.66
%
     
 
3.83
%
     
 
3.87
%
     
 
3.98
%
Asset quality:
                                            
Nonperforming loans
     
 
0
 
     
 
429
 
     
 
0
 
     
 
429
 
Nonperforming loans to total loans
     
 
0.00
%
     
 
0.53
%
     
 
0.00
%
     
 
0.53
%
Allowance for loan losses
     
 
1.36
%
     
 
1.38
%
     
 
1.36
%
     
 
1.38
%
Capital ratios:
                                            
Equity to total assets
     
 
9.75
%
     
 
8.09
%
     
 
9.75
%
     
 
8.09
%
 
(a) 2001 per share data has been adjusted to reflect the 9-for-8 stock split effected as a stock dividend paid during the second quarter of 2001.