Michael G. Carlton

President and Chief Executive Officer

Howe Barnes Hoefer & Arnett, Inc.

11

th

Annual Bank Conference

August 21, 2006

Exhibit 99.1

2

This presentation may contain forward-looking statements. These statements

are not historical facts, but rather are based on our current expectations,

estimates and projections about our industry, our beliefs and assumptions.

Words including “may,”

“will,”

“could,”

“would,”

“should,”

“anticipate,”

“expect,”

“intend,”

“plan,”

“project,”

“believe,”

“seek,”

“estimate”

and similar

expressions are intended to identify forward-looking statements. These

statements are not guarantees of future performance and are subject to

certain risks, uncertainties and other factors, some of which remain beyond

our control, are difficult to predict and could cause actual results to differ

materially from those expressed or forecasted in the forward-looking

statements. These risks and uncertainties are described in “Risk Factors”

and

elsewhere in the prospectus. We caution you not to place undue reliance on

these forward-looking statements, which reflect our management’s view only

as

of

the

date

of

the

prospectus.

We

are

not

obligated

to

update

these

statements or publicly release the result of any revisions to them to reflect

events or circumstances after the date of the prospectus or to reflect the

occurrence of unanticipated events.

Forward Looking Statements

3

Company Overview

4

About Crescent Financial

Headquartered in Cary, North Carolina

State-chartered community bank formed in 1998

Primary market areas are the Raleigh-Durham and Moore County (Pinehurst)

markets

10 full-service offices

Pending acquisition of Port City Capital Bank in Wilmington, NC

At June 30, 2006 we had:

Assets:

$471 million

Net income:

$3.8 million (last twelve months)

Market

cap:

$78

million (approximately)

Inside ownership

19.2%

Institutional ownership

3.5%

Average daily volume

7,674 shares (year-to-date)

Presently traded on the NASDAQ Global Market under the symbol “CRFN”

5

Business Plan

Focus on small-to-medium size business customers

Increase presence in existing and southeast North Carolina high growth

markets

Balance EPS growth and franchise expansion

Hire top talent

Sustain growth of core deposit funding in a very competitive market

Maintain excellent asset quality

Continue to enhance shareholder value

6

1999

2000

2001

2002

2003

2004

2005

1998

Crescent State Bank

established in

Cary, NC

December 31, 1998

Crescent Financial

Corp. was formed on

June 29, 2001

Completed $9.1M

acquisition of Centennial

Bank August 29, 2003

Announced joining

the Russell

Microcap Index

August 19, 2005

2006

Announced acquisition of

Port City Capital Bank in

Wilmington, NC

April 6, 2006

Significant Corporate Events

$6.3M Secondary

Offering

Completed

August 20, 2002

$14M Public

Offering

Completed

December 2, 2005

Issued $8M of

trust preferred

securities

August 27, 2003

7

Market Area

Crescent headquarters

Crescent offices

Pending Port City offices

Estimated Population

Growth %

2005-2010

<5%

5% to 10%

>10%

Source: ESRI and SNL Financial LC

8

Raleigh-Durham (Triangle Market) -

($13.2B MSA Deposits )

Home to the Research Triangle Park, one of the nation’s leading technology

business centers

World-class academic institutions and corporate research and development

Since the 1990 census, the Triangle area has experienced a 35.4%

increase in

population -

almost three times the U.S. growth rate of 13%

The Triangle area has had consistently low unemployment rates accompanied by

high rates of job growth

Cary was named the “best place to live”

on the east coast and one of the six most

desirable places to live in America by Money Magazine

Source: Wake County Economic Development

High Growth Markets

9

Greater Wilmington/Coastal Market

-

($4.9B MSA Deposits)

Wilmington is the largest city in southeastern North Carolina

Economists have forecasted growth in the Greater Wilmington area

to be the

strongest in the state between 2004 and 2010

It is projected that Brunswick county will triple its population

and expand its economy

in double digits each year for the next 10 years

Current and future retirement community for the emerging amount of baby-boomers

Lee

and

Moore

County

Market

–

($2.0B

MSA

Deposits)

Home of the towns of Pinehurst, Sanford and Southern Pines

Moore County is a popular retirement area and is famous for its abundance of world-

class golf courses

Pinehurst hosted the 1999 and 2005 men’s US Open Golf Championship

High Growth Markets

-Source: Greater Wilmington Chamber of Commerce

-Source: www.newcomer.com/cities/wilmington/WIMbrunswick.html

10

0%

5%

10%

15%

20%

25%

30%

Wake

Johnston

Lee

Moore

New Hanover

Household Growth

Employment Growth

High Growth Markets

Source:

NC

Profile,

Bureau

of

Labor

Statistics

and

SNL

Financial

LC. 

Growth (2000-June 2006)

NC Avg.

NC Avg.

US Avg.

US Avg.

11

Management Team

Senior Vice President and Chief Operating

Officer Nov, 2005; 29 years prior

experience with Wachovia, most recently a

Senior Regional Manager

Senior Vice President and Chief Operating

Officer

Ray D. Vaughn

(53)

Vice President and Secretary, Crescent

Financial Corporation and Senior Vice

President and Chief Financial Officer,

Crescent State Bank, 1998-Present

Vice President and Secretary of the

Company and Senior Vice President and

Chief Financial Officer of the Bank

Bruce W. Elder

(43)

President and Chief Executive Officer,

Crescent Financial Corporation and

Crescent State Bank, 1998-Present

President, Chief Executive Officer, and

Director of the Company and the Bank

Michael G. Carlton

(45)

Senior Vice President and Senior Credit

Officer, Crescent State Bank, 1998-

Present

Senior Vice President and Senior Credit

Officer of the Bank

Thomas E. Holder, Jr.

(46)

Business Experience

Title

Executive

12

Financial Data

13

Financial Highlights

Assets($000)

$470,763

20%

Loans($000)

$365,174

21%

Deposits($000)

$369,629

14%

Net Income($000)

$3,835

45%

EPS

$.68

28%

ROAE

10.08%

+36 basis points

ROAA

.91%

+18 basis points

LTM

6/30/06

%Change

From 6/30/05

14

Balance Sheet Growth

Assets ($MM's)

129

182

274

331

411

471

0

50

100

150

200

250

300

350

400

450

500

2001

2002

2003

2004

2005

6/30/06

Equity ($MM's)

10

18

24

27

41

43

0

5

10

15

20

25

30

35

40

45

50

2001

2002

2003

2004

2005

6/30/06

Net Loans ($MM's)

79

124

213

254

324

360

0

50

100

150

200

250

300

350

400

2001

2002

2003

2004

2005

6/30/06

Deposits ($MM's)

113

153

219

274

322

370

0

50

100

150

200

250

300

350

400

2001

2002

2003

2004

2005

6/30/06

15

Loan & Deposit Composition

$365.2 million of gross loans

$369.6 million of total deposits

Loan Composition

June 30, 2006

Deposit Composition

June 30, 2006

12%

10%

2%

40%

22%

13%

2%

1 to 4 family

Home equity

Multi-family

Commercial RE

Construction

C&I

Consumer

Other

14%

11%

12%

9%

20%

34%

DDA

NOW

MMDA

Savings

CD's < $100,000

CD's $100,000 +

16

Asset Quality & Reserve Coverage

Net Charge-Offs / Average Loans

0.03%

0.09%

0.05%

0.15%

0.04%

0.01%

0.00%

0.02%

0.04%

0.06%

0.08%

0.10%

0.12%

0.14%

0.16%

2001

2002

2003

2004

2005

6/30/06

Loan Loss Reserves / Gross Loans

1.36%

1.52%

1.42%

1.33%

1.31%

1.39%

1.20%

1.25%

1.30%

1.35%

1.40%

1.45%

1.50%

1.55%

2001

2002

2003

2004

2005

6/30/06

(1) Non-performing assets include non-accrual loans, loans 90 days

or more past due, and repossessed assets

NM

Non-Performing Assets

(1)

/ Total Assets

0.06%

0.09%

0.00%

0.01%

0.06%

0.33%

0.00%

0.05%

0.10%

0.15%

0.20%

0.25%

0.30%

0.35%

2001

2002

2003

2004

2005

6/30/06

Loan Loss Reserves / Non-Performing Assets

(1)

1231%

9065%

1689%

260%

410%

0%

1000%

2000%

3000%

4000%

5000%

6000%

7000%

8000%

9000%

10000%

2001

2002

2003

2004

2005

6/30/06

17

Earnings Growth

Net Interest Income ($MM's)

$3,762

$5,367

$7,201

$10,430

$13,955

$8,290

$0

$3,000

$6,000

$9,000

$12,000

$15,000

2001

2002

2003

2004

2005

YTD

6/30/2006

Noninterest Income ($MM's)

$441

$754

$1,654

$1,998

$2,433

$1,215

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

2001

2002

2003

2004

2005

YTD

6/30/2006

Net Income ($MM's)

$1,228

$1,655

$2,333

$3,144

$1,986

$307

$0

$900

$1,800

$2,700

$3,600

2001

2002

2003

2004

2005

YTD

6/30/2006

Earnings per Share

$0.12

$0.38

$0.38

$0.47

$0.61

$0.33

$0.00

$0.20

$0.40

$0.60

$0.80

2001

2002

2003

2004

2005

YTD

6/30/2006

18

Profitability

ROAA (%)

0.31%

0.85%

0.79%

0.76%

0.84%

0.90%

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

2001

2002

2003

2004

2005

YTD

6/30/2006

Net Interest Margin (%)

3.98%

3.87%

3.64%

3.61%

3.94%

4.02%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

2001

2002

2003

2004

2005

YTD

6/30/2006

ROAE (%)

2.97%

9.31%

8.25%

9.14%

10.34%

9.41%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

2001

2002

2003

2004

2005

YTD

6/30/2006

Efficiency Ratio (%)

82%

67%

65%

68%

66%

63%

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

2001

2002

2003

2004

2005

YTD

6/30/2006

(1)

(1)

(1) Annualized

19

Port City Acquisition

20

Port City Acquisition

Crescent headquarters

Crescent offices

Pending Port City offices

Announced

April 6, 2006

Expected Close

August 31, 2006

Purchase Price

$39.2M

Price/Share

$33.00

Consideration

90% stock/10% cash

Pro Forma Ownership

26.7%

Board Seats

3

Shareholder Vote

Approved by both

21

Overview of Port City

Port City began operations in July 2002 in Wilmington, NC

Business focused bank with limited retail exposure

Port

City

financial

highlights

(1)

:

Assets:

$170M   (31% LTM Growth)

ROAA (LTM):

1.33%

ROAE (LTM):

16%

Efficiency ratio (LTM):

42%

Net interest margin (LTM):

4.21%

NPAs / assets:

0.00%

Pristine asset quality –

no charge-off or NPA history

(1) Source: SNL Financial LC as of June 30, 2006

22

Keith Betts, President and Chief Executive Officer (50)

Previously Senior Vice President, Central Carolina Bank and Trust Company,

Wilmington, NC

John Franck, Executive Vice President and Senior Lending Officer

(40)

Previously First Vice President, Central Carolina Bank and Trust

Company,

Wilmington, NC

Larry Brobst, Executive Vice President and Chief Financial Officer (44)

Previously Senior Vice President and Area Commercial Banking Manager, First

Citizens Bank & Trust Company, Wilmington, NC

Port City Management Team

23

The proposed acquisition will create shareholder value through:

Highly Talented People

Experienced management team with proven performance

Highly respected board members

Key employees to sign non-compete agreements

Strong Earnings

Expected to be accretive to EPS during first full year of combined operations

Acquisition driven by revenue/earnings growth not cost savings

Higher lending limits

Significant potential for additional business with current customers

Transaction Merits

24

The proposed acquisition will create shareholder value through:

Additional Opportunities for Growth

Increases total assets by approximately $193M to approximately $663M

Entry into high-growth Wilmington market; and a $4.9B deposit market

Additional offices planned through de novo branching

Market cap will increase to approximately $110M

Transaction Merits

25

Pro Forma Financials

(1)

(1)

Estimate of pro forma financials based on June 30, 2006 financial information and a stock closing price on

August 10, 2006 of $13.25.

Crescent

Port City

Purchase

Pro Forma

6/30/06

6/30/06

Adjustments

Combined

Assets

Cash and securities

$88,677

$35,996

($5,432)

$119,241

Loans

360,402

132,131

(593)

$491,940

Goodwill

3,600

0

26,732

$30,332

Core deposit intangible

150

0

1,820

$1,970

Other assets

17,934

1,797

(54)

$19,677

Total assets

$470,763

$169,924

$663,160

Liabilities

Deposits

$369,629

$155,742

(268)

$525,103

Borrowings

48,000

0

$48,000

Trust preferred securities

8,248

0

$8,248

Other liabilities

1,922

446

468

$2,836

Total liabilities

$427,799

$156,188

$584,187

Equity

Total equity

$42,964

$13,736

22,273

$78,973

Total liabilities and equity

$470,763

$169,924

$663,160

Book value/share

$7.41

$9.59

Tangible book value/share

$6.76

$5.67

Shares outstanding

5,798,240

2,432,510

8,230,750

26

Stock Performance

and

Shareholder Returns

27

Historical Stock Price Performance

(1)

(1)

Trading activity from 8/11/1999 (first day of trading history) to 8/2/06

Source: SNL Financial LC

$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

$14.00

$16.00

Aug-99

Jan-00

Jul-00

Dec-00

Jun-01

Dec-01

May-02

Nov-02

Apr-03

Oct-03

Mar-04

Sep-04

Feb-05

Aug-05

Jan-06

Jul-06

0

50,000

100,000

150,000

200,000

250,000

300,000

10% Stock

Dividend

12.5% Stock

Dividend

12.5% Stock

Dividend

Secondary Offering

Completed 8/20/02

15% Stock

Dividend

Centennial

Acquisition

Completed 8/20/02

20% Stock

Dividend

15% Stock

Dividend

Public Offering

Completed 12/2/05

15% Stock

Dividend

Port City

Acquisition

Announced 4/6/06

28

Relative Price Performance

(1)

0

50

100

150

200

250

300

350

400

Aug-99

Jan-00

Jul-00

Dec-00

Jun-01

Dec-01

May-02

Nov-02

Apr-03

Oct-03

Mar-04

Sep-04

Feb-05

Aug-05

Jan-06

Jul-06

204%

159%

58%

43%

Crescent Financial Corporation

SNL Bank Index

SNL Southeast Bank Index

SNL Bank < $500MM Index

(1)

Trading activity from 8/11/1999 (first day of trading history) to 8/2/06

Source: SNL Financial LC

29

Significant growth potential in a dynamic banking market

Opportunities for continued expansion into Wilmington and surrounding

markets

Established local identity in the high-growth communities served

Seasoned management team with an intimate knowledge of the local

market

Track record of consistent earnings and balance sheet growth

Strong loan growth accompanied by exceptional asset quality

Commercially focused business mix

Investment Highlights

30

Maintain

our

momentum

from

1

st

half

of

2006

Continue to position ourselves for future growth

Close the Port City merger transaction

Integrate the Port City merger and leverage the franchise

Take advantage of the ample opportunity to capture market share

Begin to benefit from our new Raleigh office

Prepare for additional branching in 2007 and 2008

2006 Outlook

Crescent Financial Corporation

Crescent Financial Corporation