CARY, N.C., Aug. 14, 2009 (GLOBE NEWSWIRE) -- Crescent Financial Corporation (Nasdaq:CRFN), parent company of Crescent State Bank headquartered in Cary, North Carolina, announced that earnings for the second quarter of 2009 have been revised to fully account for the FDIC special assessment. The Company had previously been accruing for the estimated assessment over the year and has now recorded the entire special assessment in the second quarter of 2009. The revision effectively shifts expense which would have been recognized over the last half of the year into the second quarter. Unaudited net income for the three months ended June 30, 2009, before adjusting for the effective dividend on preferred stock, was $574,000 compared to net income of $1,031,000 for the prior year period. After adjusting for $422,000 in dividends and accretion on preferred stock, net income available for common shareholders for the current period was $152,000 or $0.02 per diluted share compared with $0.11 per diluted share for the quarter ended June 30, 2008. For the six months ended June 30, 2009, the Company reported net income, before adjusting for the effective dividend on preferred stock, of $1,185,000 compared to $2,031,000 for the six months ended June 30, 2008. After adjusting for $590,000 in dividends and accretion on preferred stock, net income available for common shareholders for the current period was $595,000 or $0.06 for the current period compared to $0.21 for the prior six-month period.
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 to its Annual Report on Form 10-K and its other periodic reports.
Crescent Financial Corporation
Financial Summary
(Amounts in thousands except share and per share data and prior
quarters' information may have been reclassified)
INCOME STATEMENTS (unaudited)
-----------------------------
For the Three Month Period Ended
June 30, March 31, Dec. 31, Sept. 30, June 30,
2009 2009 2008 2008 2008
---------- ---------- ---------- ---------- ----------
INTEREST INCOME
Loans $ 12,026 $ 12,077 $ 12,500 $ 12,571 $ 11,936
Investment
securities
available
for sale 2,053 1,999 1,203 1,206 1,227
Fed funds
sold and
other
interest-
earning
deposits 5 2 8 17 14
---------- ---------- ---------- ---------- ----------
Total
Interest
Income 14,084 14,078 13,711 13,794 13,177
---------- ---------- ---------- ---------- ----------
INTEREST EXPENSE
Deposits 5,069 5,243 5,898 5,953 5,502
Short-term
borrowings 506 463 323 126 91
Long-term
debt 1,241 1,141 1,315 1,372 1,292
---------- ---------- ---------- ---------- ----------
Total
Interest
Expense 6,816 6,847 7,536 7,451 6,885
---------- ---------- ---------- ---------- ----------
Net Interest
Income 7,268 7,231 6,175 6,343 6,292
Provision for
loan losses 1,132 1,697 3,937 1,282 459
---------- ---------- ---------- ---------- ----------
Net interest
income after
provision
for loan
losses 6,136 5,534 2,238 5,061 5,833
---------- ---------- ---------- ---------- ----------
Non-interest
income
Mortgage loan
origination
income 215 296 207 189 151
Service
charges and
fees on
deposit
accounts 396 388 429 414 381
Earnings on
life
insurance 228 207 305 189 144
Gain/loss on
sale of
available
for sale
securities -- -- -- -- 16
Loss on
impairment
of non-
marketable
investment (219) (188) -- -- --
Other 132 85 107 267 189
---------- ---------- ---------- ---------- ----------
Total non-
interest
income 752 788 1,048 1,059 881
Non-interest
expense
Salaries and
employee
benefits 3,017 2,971 2,508 2,881 2,917
Occupancy and
equipment 904 751 699 709 656
Data
processing 302 450 279 270 261
FDIC deposit
insurance
premium 773 249 107 103 97
Other 1,299 1,197 1,197 1,105 1,226
---------- ---------- ---------- ---------- ----------
Total non-
interest
expense 6,295 5,618 4,790 5,068 5,157
---------- ---------- ---------- ---------- ----------
Income
before
income
taxes 593 704 (1,504) 1,052 1,557
Income taxes 19 94 (738) 306 526
---------- ---------- ---------- ---------- ----------
Net income 574 610 (766) 746 1,031
---------- ---------- ---------- ---------- ----------
Effective
dividend on
preferred
stock 422 168 -- -- --
---------- ---------- ---------- ---------- ----------
Net income
available
for common
share-
holders' $ 152 $ 442 $ (766) $ 746 $ 1,031
========== ========== ========== ========== ==========
NET INCOME PER
COMMON SHARE
Basic $ 0.02 $ 0.05 $ (0.08) $ 0.08 $ 0.11
========== ========== ========== ========== ==========
Diluted $ 0.02 $ 0.05 $ (0.08) $ 0.08 $ 0.11
========== ========== ========== ========== ==========
PERFORMANCE RATIOS (annualized)
------------------------------
Return on
average
assets 0.21% 0.24% -0.14% 0.31% 0.46%
Return on
average
equity 1.89% 2.08% -1.36% 3.12% 4.37%
Yield on
earning
assets 5.66% 5.79% 6.13% 6.30% 6.38%
Cost of
interest-
bearing
liabilities 3.10% 3.18% 3.76% 3.81% 3.77%
Net interest
margin 2.92% 2.98% 2.75% 2.89% 3.05%
Efficiency
ratio 78.49% 69.96% 66.33% 68.46% 71.64%
Net loan
charge-offs 0.94% 0.22% 0.68% 0.08% 0.02%
(Amounts in thousands except share and per share data)
CONSOLIDATED BALANCE SHEETS (unaudited)
---------------------------------------
June 30, March 31, Dec. 31, Sept. 30, June 30,
2009 2009 2008 (a) 2008 2008
---------- ---------- ---------- ---------- ----------
ASSETS
Cash and due
from banks $ 10,394 $ 10,373 $ 9,917 $ 12,320 $ 13,234
Interest
earning
deposits
with banks 3,207 24,236 267 639 391
Federal funds
sold 15,285 99 99 9,477 98
Investment
securities
available for
sale at fair
value 193,764 197,957 105,649 96,015 95,979
Loans 775,301 787,657 785,377 769,060 742,855
Allowance for
loan losses (13,144) (13,855) (12,585) (9,988) (8,855)
---------- ---------- ---------- ---------- ----------
Net Loans 762,157 773,802 772,792 759,072 734,000
Accrued
interest
receivable 4,347 4,207 3,341 3,327 3,105
Federal Home
Loan Bank
stock 11,777 11,910 7,264 7,264 7,714
Bank premises
and equipment 12,007 11,842 10,845 10,297 10,156
Investment in
life insurance 17,229 17,011 16,812 16,517 16,343
Goodwill 30,233 30,233 30,233 30,233 30,233
Other assets 12,957 10,675 11,092 10,366 9,323
---------- ---------- ---------- ---------- ----------
Total
Assets $1,073,357 $1,092,345 $ 968,311 $ 955,527 $ 920,576
========== ========== ========== ========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Deposits
Demand $ 67,371 $ 64,985 $ 63,946 $ 69,594 $ 64,306
Savings 58,150 59,393 58,834 64,214 76,591
Money market
and NOW 136,644 134,160 130,542 120,430 128,274
Total
Deposits 706,702 731,604 714,883 711,643 653,679
Short-term
borrowings 128,000 114,758 37,706 20,000 30,894
Long-term debt 113,748 121,748 116,748 125,748 138,248
Accrued
expenses and
other
liabilities 3,680 3,762 3,882 3,986 3,692
---------- ---------- ---------- ---------- ----------
Total
Liabilities 952,130 971,872 873,219 861,377 826,513
STOCKHOLDERS'
EQUITY
Preferred stock 22,687 22,576 -- - --
Common stock 9,627 9,626 9,627 9,613 9,605
Warrant 2,367 2,367 -- - --
Additional
paid-in
capital 74,439 74,395 74,349 74,256 74,172
Retained
earnings 11,083 10,931 10,489 11,254 10,509
Accumulated
other
comprehensive
income (loss) 1,024 578 627 (973) (223)
---------- ---------- ---------- ---------- ----------
Total Stock-
holders'
equity 121,227 120,473 95,092 94,150 94,063
Total
Liabilities
and Stock-
holders'
Equity $ 1,073,357 $1,092,345 $ 968,311 $ 955,527 $ 920,576
=========== ========== ========== ========== ==========
(a) Derived from audited consolidated financial statements.
COMMON SHARE DATA
-----------------
Book value per
common
share $ 10.24 $ 10.17 $ 9.88 $ 9.79 $ 9.79
Tangible book
value per
common
share $ 7.00 $ 6.93 $ 6.64 $ 6.55 $ 6.54
Ending shares
outstanding 9,626,559 9,626,559 9,626,559 9,612,743 9,604,826
Weighted
average
common
shares out-
standing -
basic 9,569,520 9,569,520 9,565,583 9,548,589 9,467,294
========== ========== ========== ========== ==========
Weighted
average
common
shares out-
standing -
diluted 9,599,466 9,581,873 9,565,583 9,628,147 9,618,744
========== ========== ========== ========== ==========
CAPITAL RATIOS
--------------
Tangible
equity to
tangible
assets 8.65% 8.42% 6.82% 6.81% 7.06%
Tangible
common equity
to tangible
assets 6.47% 6.29% 6.82% 6.81% 7.06%
Tier 1
leverage
ratio 9.34% 9.45% 7.67% 7.89% 8.21%
Tier 1 risk-
based capital
ratio 11.43% 11.29% 8.53% 8.66% 8.81%
Total risk-
based capital
ratio 13.56% 13.42% 10.68% 10.77% 9.90%
ASSET QUALITY RATIOS (in thousands)
-----------------------------------
Non accrual
loans 13,335 16,421 13,094 2,772 746
Accruing loans
> 90 days
past due -- 4 -- -- --
---------- ---------- ---------- ---------- ----------
Total non-
performing
loans 13,335 16,425 13,094 2,772 746
Other real
estate owned
& re-
possessions 4,401 1,911 1,716 1,870 1,891
---------- ---------- ---------- ---------- ----------
Total non-
performing
assets 17,736 18,336 14,810 4,642 2,637
========== ========== ========== ========== ==========
Allowance for
loan losses
to loans 1.70% 1.76% 1.60% 1.30% 1.19%
Nonperforming
loans to
total loans 1.72% 2.09% 1.67% 0.36% 0.10%
Nonperforming
assets to
total assets 1.65% 1.68% 1.53% 0.49% 0.29%
Restructured
not included
in categories
above 4,482 89 -- -- --
AVERAGE BALANCES (in thousands)
------------------------------
Total Assets $1,070,516 $1,053,447 $ 958,547 $ 941,317 $ 896,654
Gross loans 782,886 788,810 779,534 765,539 724,011
Earnings
assets 998,892 985,755 889,992 871,723 830,084
Deposits 704,791 703,872 712,511 695,083 659,501
Interest-
bearing
liabilities 882,079 872,056 796,557 778,529 734,170
Shareholders'
equity 122,049 119,070 95,457 94,824 94,618