EX-99.1 2 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

 

Crescent Financial Corporation Announces Increased Earnings for Second Quarter

 

CARY, N.C., July 19 /PRNewswire-FirstCall/ — Crescent Financial Corporation (Nasdaq: CRFN), the holding company of Crescent State Bank, announced unaudited net income for the quarter ended June 30, 2005 of $653,000, an increase of 26% over the $519,000 for the comparative period ended June 30, 2004. Diluted earnings per share for the three-month periods ended June 30, 2005 and 2004 were $0.15 and $0.12, respectively.

 

The increase in earnings was the result of strong growth in earning assets over the past twelve months along with an improved net interest margin. Earning assets, which include loans outstanding, investment securities, and other interest earning assets, increased by more than $82 million over the past twelve months. Net interest income increased by 36% from $2.5 million for the prior year period to $3.3 million for the three-month period ended June 30, 2005. The net interest margin for the three-month period ended June 30, 2005 was 3.88% compared with 3.52% for the prior year period.

 

For the six months ended June 30, 2005, Crescent reported net income of $1,294,000 or $0.30 compared with $982,000 or $.23 per diluted share for the six months ended June 30, 2004. Net interest income increased by 32% from $4.8 million for the prior year period to $6.4 million for the current six- month period. The net interest margin for the current period was 3.86% compared to 3.55% for the prior year period.

 

Crescent Financial Corporation reported a $62 million or 19% increase in total assets from $331 million at year-end 2004 to $393 million at the end of June 2005. Total net loans grew over $43 million or 17% to $297 million at June 30, 2005 compared with $254 million at year-end 2004. Total deposits increased by $49 million or 18% to $323 million at June 30, 2005 from $274 million at December 31, 2004

 

Commenting on the performance, Mike Carlton, President and Chief Executive Officer stated, “We are very pleased with the financial results for both the second quarter and year-to-date. The increase in net income is especially gratifying in light of the additional expenses associated with the opening of a new operations center. The foundation now in place will allow us to continue our focus toward both franchise expansion and long-term earnings growth.”

 

Crescent State Bank, the wholly-owned subsidiary of Crescent Financial Corporation, is a state chartered bank operating nine banking offices in Cary (2), Apex, Clayton, Holly Springs, Southern Pines, Pinehurst, Sanford and Garner, 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 Securities Exchange Commission, including but not limited its Annual Report on Form 10-KSB and its other periodic reports.

 

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Crescent Financial Corporation and Subsidiary

Consolidated Comparative Income Statements (Unaudited)

(000s omitted except for per share data)

 

    

Three-month Periods

Ended June 30,

   

Six-month Periods

Ended June 30,

     2005
    2004
    2005
    2004

INTEREST INCOME

                            

Loans

    $ 4,814,378    $ 3,295,212    $ 9,000,256    $ 6,498,014

Investment securities available for sale

      566,043      428,065      1,135,347      830,483

Fed funds sold and interest-bearing deposits

      13,843      6,952      22,795      17,715

TOTAL INTEREST INCOME

      5,394,263      3,730,229      10,158,397      7,346,213

INTEREST EXPENSE

                            

Deposits

      1,619,288      1,046,380      2,966,135      2,044,015

Short-term borrowings

      45,477      94,066      62,936      21,351

Long-term debt

      404,615      136,993      760,795      442,940

TOTAL INTEREST EXPENSE

      2,069,379      1,277,439      3,789,866      2,508,306

NET INTEREST INCOME

      3,324,884      2,452,790      6,368,531      4,837,907

PROVISION FOR LOAN LOSSES

      302,602      128,588      506,554      384,165

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES

      3,022,282      2,324,202      5,861,977      4,453,742

NON INTEREST INCOME

      583,383      584,746      1,127,708      1,076,433

NON INTEREST EXPENSES

                            

Salaries and employee benefits

      1,369,661      1,099,253      2,672,214      2,109,011

Occupancy and equipment

      439,792      365,956      831,358      709,882

Data processing

      161,707      135,023      315,625      259,679

Other

      643,176      538,997      1,218,374      992,738

TOTAL NON-INTEREST EXPENSES

      2,614,335      2,139,230      5,037,570      4,071,310

INCOME BEFORE INCOME TAXES

      991,330      769,718      1,952,116      1,458,864

INCOME TAXES

      338,100      251,100      657,900      476,600

NET INCOME

    $ 653,230    $ 518,618    $ 1,294,216    $ 982,264

NET INCOME PER COMMON SHARE (a)

                            

Basic

    $ 0.16    $ 0.13    $ 0.31    $ 0.24

Diluted

    $ 0.15    $ 0.12    $ 0.30    $ 0.23

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING

                            

Basic

      4,115,021      4,048,988      4,110,206      4,042,789

Diluted

      4,369,012      4,267,590      4,359,051      4,264,705
(a) 2004 per share data has been adjusted to reflect a stock split, effected as a 15% stock dividend, paid during the second quarter of 2005.

 

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Crescent Financial Corporation and Subsidiary

Consolidated Balance Sheets (Unaudited)

(000s omitted)

 

     June 30, 2005
     June 30, 2004
     Dollar Change
     % Change
  

ASSETS

                               

Cash and noninterest bearing deposits

    $ 8,652,439     $ 8,664,987     $ (12,547 )   -0.14 %

Interest bearing deposits

      615,781       462,951       152,830     33.01 %

Federal funds sold

      14,753,000       783,000       13,970,000     1784.16 %

Securities available for sale

      52,250,753       41,486,921       10,763,831     25.95 %

Federal Home Loan Bank stock

      2,101,900       825,000       1,276,900     154.78 %

Loans receivable, net of allowance for loan losses

      297,044,664       240,642,768       56,401,895     23.44 %

Accrued interest and dividends receivable

      1,402,935       976,448       426,487     43.68 %

Premises and equipment, net

      3,622,329       2,986,405       635,923     21.29 %

Deferred Tax Asset

      1,810,997       2,298,307       (487,310 )   -21.20 %

Bank Owned Life Insurance

      5,384,317       5,179,692       204,625     3.95 %

Goodwill

      3,600,298       3,600,298       —       0.00 %

Other assets

      1,615,425       1,476,715       138,711     9.39 %

TOTAL ASSETS

    $ 392,854,837     $ 309,383,491     $ 83,471,346     26.98 %

LIABILITIES AND STOCKHOLDERS’ EQUITY

                               

LIABILITIES

                               

Demand

    $ 50,321,528     $ 41,453,563     $ 8,867,966     21.39 %

Savings

      3,673,188       2,836,860       836,327     29.48 %

Money market and NOW

      94,930,394       73,764,860       21,165,534     28.69 %

Time

      173,945,310       144,584,867       29,360,443     20.31 %

Total deposits

      322,870,420       262,640,150       60,230,270     22.93 %

Short-term borrowings

      2,213,286       442,985       1,770,301     399.63 %

Long-term debt

      38,248,000       20,000,000       18,248,000     91.24 %

Accrued interest payable

      639,055       402,628       236,427     58.72 %

Accrued expenses and other liabilities

      741,826       1,239,323       (497,497 )   -40.14 %

Deferred Tax Liability

      —         —         —       N/A  

Total Liabilities

      364,712,587       284,725,085       79,987,502     28.09 %

STOCKHOLDERS’ EQUITY

                               

Preferred stock, no par value, 5,000,000 shares authorized, none outstanding;

      —         —                  

Common stock, $1 par value, 20,000,000 shares authorized; 4,120,391 shares outstanding June 30, 2005; 3,539,409 shares outstanding June 30, 2004

      4,120,391       3,539,409       580,982     16.41 %

Additional paid in capital

      18,218,569       18,481,766       (263,197 )   -1.42 %

Net unrealized loss on securities available for sale

      (53,607 )     (575,017 )     521,411     -90.68 %

Undivided Profits/ loss

      5,856,897       3,212,248       2,644,649     82.33 %

Total Stockholders’ Equity

      28,142,250       24,658,406       3,483,844     14.13 %

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

    $ 392,854,837     $ 309,383,491     $ 83,471,346     26.98 %

 

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Crescent Financial Corporation

Selected Financial Ratios

(000s omitted except per share data)

(unaudited)

 

     As of or for the
three months
ended June 30,
     As of or for the
six months
ended June 30,
  
     2005
     2004
     2005
     2004
  

Per share data: (a)

                                 

Basic earnings per share

    $ .16     $ .13     $ .31     $ .24  

Diluted earnings per share

    $ .15     $ .12     $ .30     $ .23  

Book value per share

    $ 6.83     $ 6.06     $ 6.83     $ 6.06  

Performance ratios:

                                 

Return on average assets

      0.72 %     0.69 %     0.74 %     0.67 %

Return on average equity

      9.42 %     8.33 %     9.46 %     7.92 %

Net interest margin

      3.88 %     3.52 %     3.86 %     3.55 %

Asset quality:

                                 

Nonperforming loans

      24       302       24       302  

Nonperforming loans to total loans

      0.01 %     0.12 %     0.01 %     0.12 %

Allowance for loan losses

      1.35 %     1.46 %     1.35 %     1.46 %

Total nonperforming assets

      209       322       209       322  

Nonperforming assets to total assets

      0.05 %     0.11 %     0.05 %     0.11 %

Capital ratios:

                                 

Equity to total assets

      7.16 %     7.97 %     7.16 %     7.97 %
(a) 2004 per share data has been adjusted to reflect a stock split effected as a stock dividend 15% paid during the second quarter of 2005.

 

SOURCE Crescent Financial Corporation

 

-0-                                                          07/19/2005

/CONTACT: Crescent Financial Corporation, +1-919-460-7770/

/First Call Analyst:    /

/FCMN Contact:    /

/Web site: http://www.crescentstatebank.com/

(CRFN)

 

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