SUBSEQUENT EVENT

9 Months Ended

Sep. 30, 2011

Subsequent Events [Abstract]

Subsequent Events [Text Block]

NOTE J – SUBSEQUENT EVENT

On October 24, 2011, the Company announced that Piedmont had received regulatory approval to invest $75.0 million into the Company in return for 18,750,000 shares of common stock (“the Investment”).  As a result, at the close of the Investment, Piedmont will own approximately 66 percent of the Company’s common stock.  The Investment is anticipated to close on or around November 18, 2011.

Pursuant to the Investment Agreement Piedmont will make a tender offer to the Company's shareholders commencing on November 8, 2011 to purchase up to 6,442,105 shares of currently outstanding Company common stock at a price of $4.75 per share.  If the maximum number of shares is tendered, Piedmont will pay approximately $30.6 million for all such shares, and Piedmont would then own a total of approximately 89 percent of all outstanding common Company shares. 

Upon closing of the investment, Adam Abram, chairman of Piedmont, will be named chairman of Crescent Financial Corporation, and Scott Custer, president and chief executive officer of Piedmont, will become chief executive officer of Crescent Financial Corporation. In addition, the board of directors of Crescent Financial Corporation will be restructured to include eight designees of Piedmont, including Mr. Abram and Mr. Custer, as well as four continuing Company directors, including Messrs. James A. Lucas Jr., Charles A. Paul III, Jon S. Rufty and Brent D. Barringer. These four existing Company directors will also be appointed to the board of directors of Piedmont.