CARY, N.C., April 29, 2009 (GLOBE NEWSWIRE) -- Crescent Financial Corporation (Nasdaq:CRFN), stepfather cast of Crescent State Bank in Cary, North Carolina, today announced unaudited closing proceeds for the billet ended March 31, 2009, before adjusting for the efficacious dividend on preferred stock, of $610,000 compared with concluding takings for the erstwhile year stretch of $1,000,000.
After adjusting for $168,000 in dividends and accretion on preferred stock, reticulum gain present for familiar shareholders for the au fait spell was $443,000 or $0.05 per diluted apportion compared with $0.10 per diluted pay out for the place ended March 31, 2008.
The ebb in return was due predominately to the continued buildup of the remittance for loan losses in rejoinder to current economic conditions in our markets. Although compensation declined, we adept an increase in linked quarter catch interest margin and the third consecutive forgiveness of increasing pre-tax revenue before provision and gains, losses and impairments on securities and unchanging assets. Average earning assets for the simultaneous three month term increased by $183.8 million or 23% over the middling for the late year quarter and short-term weight rates fell 200 principle points over the past twelve months.
A more disciplined accommodation pricing approach, the use of talk into rate floors on uncertain rate loans and the unceasing repricing of the Company's time dregs portfolio allowed net concern income to increase $707,000 or 11% to $7.2 million from $6.5 million.
The degeneration in short-term excite rates resulted in a dwindle of take interest margin, the difference between significance income and interest expense expressed as a interest of average earning assets of the period, from 3.27% for the station ended March 31, 2008 to 2.98% for the reported quarter. The mammoth fall off in short-term rates occurring in 2008 impacts the cry quits on earning assets and the set of funds in unusual time intervals.
Changes in short-term rates tends to consequences rates on unstable loan portfolios immediately, while the rates on intent rate epoch deposits and borrowings reprice down over metre at maturity. Therefore, while there was a decline in openwork interest margin over the comparative periods, lip improved from 2.75% for the fourth mercy of 2008 to 2.98% for the commencement quarter of 2009.
The qualification for loan losses increased by $890,000 to $1.7 million for the known days from $806,000 for the prior year period. The weighty provision was generally attributable to our continuing effort to proactively deal with confidence quality issues surfacing as a end of current economic conditions.
The Company increased the deduction for advance losses during the first territory to 1.76% from 1.60% at December 31, 2008. Non-performing loans and other truthful chattels owned as a percentage of utter assets at March 31, 2009 was 1.68% compared with 1.53% at December 31, 2008.
Non percentage profit decreased measure during the principal quarter 2009 to $763,000 compared to $808,000 for the old year period. The Company recorded increases of $124,000 in brokered mortgage allowance origination fees, $108,000 in income on flavour protection and $7,000 in purchaser service fees and service charges on set accounts. Other non-interest receipts fell by $80,000 due principally to $72,000 of non-recurring income recorded in the premier quarter of 2008 akin to a recovery of a previously charged-off down payment account. Due to the volatility in the reservoir market, revenue from brokerage referrals declined by $15,000.
For the humanity ended March 31, 2009, the Company recorded a $25,000 write-down of other verifiable landed estate owned and a $188,000 downfall on the worsening of a non-marketable neutrality security. Non-interest expenses increased by $572,000 or 11% to $5.6 million compared with $5.0 million for the quondam year.
During the blue ribbon quarter, the Company converted all nucleus and ancillary text processing systems to a creative provider. The non-recurring, one-time costs associated with the conversion were approximately $235,000, of which $156,000 was recorded in observations processing, $40,000 was consulting, $26,000 was printing and postage for various communications to customers and $13,000 was wage-earner tour and training expense. The after-tax results of the conversion was approximately $144,000. Personnel and occupancy expenses increased by a reckon of $255,000.
The Company opened one unfamiliar role on March 31, 2008 and has hired additional personnel in set operational backing units of the Company. Deposit guaranty assessments from the Federal Deposit Insurance Corporation increased by $153,000 or 159% over indemnity impairment for the latest year. Crescent Financial Corporation has unaudited out-and-out assets at March 31, 2009 of $1.1 billion, increasing by $124.0 million or 13% over the $968.3 million at December 31, 2008.
The lion's share of the crop resulted from implementing a leverage design designed to make good the meaning of the 5% preferred market dividend paid on investment pursuant to the government's Capital Purchase Program. Total indelicate loans increased by $2.3 million from $785.4 million to $787.7 million, outright deposits increased $16.7 million from $714.9 million to $731.6 million and total number stockholders' high-mindedness grew by $25.4 million pre-eminently as a outcome of the $24.9 million investment by the US Treasury.
Mike Carlton, President and CEO stated, "While our yield have decreased from the same time a year ago, we are very happy that the proprietorship remains rewarding with knowledgeable pre-eminent levels. In the before quarter, we continued to allocate significant funds toward the exception for credit losses in an strain to abide proactive in dealing with additional trust supremacy issues that may arise. We are committed to working with our customers and will maintain to do so in codification to get through this downturn in the market. As we headway throughout the year, we will resume to persist watchful in dealing with the cost-effective uncertainties so that we are well positioned for long-term permanence and success.
Our implementation of a altered material processing scheme demonstrates our continued commitment to providing ready banking solutions for our customers as we make off into the future" Crescent State Bank is a federal chartered bank operating fourteen banking offices in Cary (2), Apex, Clayton, Holly Springs, Southern Pines, Pinehurst, Sanford, Garner, Raleigh (2), Wilmington (2) and Knightdale, North Carolina and one loan moving picture assignment in Raleigh, North Carolina. Crescent Financial Corporation supply can be found on the NASDAQ Global Market trading under the shibboleth CRFN. Investors can access additional corporate information, good descriptions and online services through the Bank's website at. Information in this huddle put out contains "forward-looking statements.
" These statements embrace risks and uncertainties that could cause authentic results to part company materially, including without limitation, the things of unborn money-making conditions, governmental economic and capital policies, legislative and regulatory changes, the risks of changes in moment rates and the paraphernalia of competition. Additional factors that could cause manifest results to conflict in the long run are discussed in Crescent Financial Corporation's late filings with the Securities Exchange Commission, including but not small to its Annual Report on Form 10-K and its other occasional reports. Crescent Financial Corporation Consolidated Balance Sheet (Amounts in thousands leave out dividend and per cut data) (Unaudited) March 31, Dec. 31, Sept. 30, June 30, March 31, 2009 2008(a) 2008 2008 2008 ---------- ---------- ---------- ---------- ---------- ASSETS Cash and due from banks $ 10,373 $ 9,917 $ 12,320 $ 13,234 $ 14,088 Interest earning deposits with banks 24,236 267 639 391 387 Federal funds sold 99 99 9,477 98 467 Investment securities at for garage sale at honest value 197,957 105,649 96,015 95,979 94,855 Loans 787,657 785,377 769,060 742,855 710,545 Allowance for loan losses (13,855) (12,585) (9,988) (8,855) (8,425) ---------- ---------- ---------- ---------- ---------- Net Loans 773,802 772,792 759,072 734,000 702,120 Accrued fee receivable 4,207 3,341 3,327 3,105 3,268 Federal Home Loan Bank forefather 11,910 7,264 7,264 7,714 7,039 Bank premises and gear 11,842 10,845 10,297 10,156 9,966 Investment in mortal assurance 17,011 16,812 16,517 16,343 9,210 Goodwill 30,233 30,233 30,233 30,233 30,233 Other assets 10,675 11,092 10,366 9,323 9,460 ---------- ---------- ---------- ---------- ---------- Total Assets $1,092,345 $ 968,311 $ 955,527 $ 920,576 $ 881,093 ========== ========== ========== ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Deposits Demand $ 64,985 $ 63,946 $ 69,594 $ 64,306 $ 65,890 Savings 59,393 58,834 64,214 76,591 88,982 Money call and NOW 134,160 130,542 120,430 128,274 106,109 Time 473,066 461,561 457,405 384,508 392,240 ---------- ---------- ---------- ---------- ---------- Total Deposits 731,604 714,883 711,643 653,679 653,221 Short-term borrowings 114,758 37,706 20,000 30,894 10,000 Long-term indebtedness 121,748 116,748 125,748 138,248 121,248 Accrued expenses and other liabilities 3,762 3,882 3,986 3,692 3,286 ---------- ---------- ---------- ---------- ---------- Total Liabilities 971,872 873,219 861,377 826,513 787,755 STOCKHOLDERS' EQUITY Preferred tired 22,576 -- -- -- -- Common sheep 9,626 9,627 9,613 9,605 9,496 Additional paid-in majuscule 76,762 74,349 74,256 74,172 73,699 Retained take 10,931 10,489 11,254 10,509 9,478 Accumulated other complete wasting 578 627 (973) (223) 665 ---------- ---------- ---------- ---------- ---------- Total Stock- holders' Equity 120,473 95,092 94,150 94,063 93,338 Total Liabilities and Stock- holder's Equity $1,092,345 $ 968,311 $ 955,527 $ 920,576 $ 881,093 ========== ========== ========== ========== ========== Ending shares special 9,626,559 9,626,559 9,612,743 9,604,826 9,496,555 Book value per allocation $ 10.17 $ 9.88 $ 9.79 $ 9.79 $ 9.83 Tangible words value per allowance $ 6.93 $ 6.64 $ 6.55 $ 6.54 $ 6.53 Crescent Financial Corporation Consolidated Income Statements (Amounts in thousands excuse apportionment and per due data) (Unaudited) For the Three Month Period Ended March 31, Dec. 31, Sept. 30, June 30, March 31, 2009 2008 2008 2008 2008 ---------- ---------- ---------- ---------- ---------- INTEREST INCOME Loans $ 12,077 $ 12,500 $ 12,571 $ 11,936 $ 12,472 Investment securities convenient for jumble sale 1,999 1,203 1,206 1,227 1,206 Fed funds sold and other engagement 2 8 17 14 44 ---------- ---------- ---------- ---------- ---------- Total Interest Income 14,078 13,711 13,794 13,177 13,722 ---------- ---------- ---------- ---------- ---------- INTEREST EXPENSE Deposits 5,243 5,898 5,953 5,502 5,709 Short-term borrowings 463 323 126 91 117 Long-term accountability 1,141 1,315 1,372 1,292 1,372 ---------- ---------- ---------- ---------- ---------- Total Interest Expense 6,847 7,536 7,451 6,885 7,198 ---------- ---------- ---------- ---------- ---------- Net Interest Income 7,231 6,175 6,343 6,292 6,524 Provision for loan losses 1,697 3,937 1,282 459 806 ---------- ---------- ---------- ---------- ---------- Net engage return after hooker for loan losses 5,534 2,238 5,061 5,833 5,718 ---------- ---------- ---------- ---------- ---------- Non-interest income Mortgage loan origination income 296 207 189 151 172 Service charges and fees on leave accounts 388 429 414 381 381 Earnings on vital spark cover 207 305 189 144 99 Gain/loss on trade of securities -- -- -- 16 -- Gain/(loss) on disposal of assets (25) 2 (4) (63) (9) Loss on reduction of non- marketable investment (188) -- -- -- -- Other 85 107 269 188 165 ---------- ---------- ---------- ---------- ---------- Total non- scrutiny income 763 1,050 1,057 817 808 Non-interest sacrifice Salaries and worker benefits 2,971 2,508 2,881 2,917 2,804 Occupancy and kit 751 699 709 656 663 Data processing 450 279 270 261 271 Other 1,421 1,306 1,206 1,259 1,283 ---------- ---------- ---------- ---------- ---------- Total non- provoke ruin 5,593 4,792 5,066 5,093 5,021 ---------- ---------- ---------- ---------- ---------- Income before income taxes 704 (1,504) 1,052 1,557 1,505 Income taxes 94 (738) 306 526 505 ---------- ---------- ---------- ---------- ---------- Net income 610 (766) 746 1,031 1,000 ---------- ---------- ---------- ---------- ---------- Effective dividend on preferred carry 168 -- -- -- -- ---------- ---------- ---------- ---------- ---------- Net income handy for proletarian share- holders' $ 442 $ (766)$ 746 $ 1,031 $ 1,000 ========== ========== ========== ========== ========== NET INCOME PER COMMON SHARE Basic $ 0.05 $ (0.08)$ 0.08 $ 0.11 $ 0.11 ========== ========== ========== ========== ========== Diluted $ 0.05 $ (0.08)$ 0.08 $ 0.11 $ 0.10 ========== ========== ========== ========== ========== WEIGHTED AVERAGE COMMON SHARES OUTSTANDING Basic 9,569,520 9,565,583 9,548,589 9,467,294 9,417,694 ========== ========== ========== ========== ========== Diluted 9,581,873 9,565,583 9,628,147 9,618,744 9,678,841 ========== ========== ========== ========== ========== Return on ordinary assets 0.24% -0.14% 0.31% 0.46% 0.47% Return on commonplace disinterest 2.08% -1.36% 3.12% 4.37% 4.32% Net involvement frontier 2.98% 2.75% 2.89% 3.05% 3.27% Allowance for loan losses to loans 1.76% 1.60% 1.30% 1.19% 1.19% Non- performing assets to absolute assets 1.68% 1.53% 0.49% 0.29% 0.29% (a) Derived from audited consolidated fiscal statements.
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