REGULATORY MATTERS

12 Months Ended

Dec. 31, 2011

Regulatory Matters Disclosure [Abstract]

Regulatory Matters Disclosure [Text Block]

NOTE N - REGULATORY MATTERS

The Company and the Bank are subject to various regulatory capital requirements administered by federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s and Bank’s financial position and results of operations. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Prompt corrective action provisions are not applicable to bank holding companies.

The Bank, as a North Carolina banking corporation, may pay dividends to the Company only out of undivided profits as determined pursuant to North Carolina General Statutes Section 53-87. Payment of dividends by the Bank to the Company are subject to written consent of the regulatory authorities.

Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios of total and Tier I capital (as defined) to average assets (as defined). Management believes, as of December 31, 2011 and 2010, that the Company and the Bank met all capital adequacy requirements to which they are subject.

The Bank’s capital amounts and ratios as of December 31, 2011 and 2010 are presented in the table below.

											Minimum to be well
						Minimum for capital					capitalized under prompt
	Actual					adequacy purposes					corrective action provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(Dollars in thousands)
Crescent State Bank
As of December 31, 2011: (Successor Company)
Total Capital (to Risk-Weighted Assets)	$	101,282		14.64	%	$	55,355		8.00	%	$	69,194		10.00	%
Tier I Capital (to Risk-Weighted Assets)		94,276		13.62	%		27,678		4.00	%		41,516		6.00	%
Tier I Capital (to Average Assets)		94,276		10.19	%		37,016		4.00	%		46,270		5.00	%
As of December 31, 2010: (Predecessor Company)
Total Capital (to Risk-Weighted Assets)	$	95,019		12.27	%	$	61,952		8.00	%	$	77,440		10.00	%
Tier I Capital (to Risk-Weighted Assets)		77,750		10.04	%		30,976		4.00	%		46,464		6.00	%
Tier I Capital (to Average Assets)		77,689		8.11	%		38,317		4.00	%		47,897		5.00	%

The Bank is currently operating under additional capital requirements which call for the maintenance of a Tier 1 leverage ratio and total risk-based capital ratio of 8.00% and 11.00%, respectively. At December 31, 2011, the Bank had a leverage ratio of 10.19% and a total risk-based capital ratio of 14.64%, both of which exceeded the additional capital requirements.

At December 31, 2011, the Successor Company’s total capital to risk-weighted assets, Tier I capital to risk-weighted assets and Tier I capital to average assets were 15.27%, 14.26% and 10.68%, respectively. At December 31, 2010, the Predecessor Company’s total capital to risk-weighted assets, Tier I capital to risk-weighted assets and Tier I capital to average assets were 12.57%, 10.34% and 8.35%, respectively.