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