Crescent Financial Bancshares, Inc. Announces Fourth Quarter Net Income of $2.1 Million and Continued Strong Revenue and Loan

Crescent Financial Bancshares, Inc. Announces Fourth Quarter Net Income of
$2.1 Million and Continued Strong Revenue and Loan Growth

RALEIGH, N.C., Jan. 30, 2013 (GLOBE NEWSWIRE) -- Crescent Financial
Bancshares, Inc. (Nasdaq:CRFN) ("Crescent" or the "Company"), today reported
financial results for the fourth quarter and year ended December 31, 2012.
Crescent Financial is the parent company of VantageSouth Bank (formerly
Crescent State Bank) and is a subsidiary of Piedmont Community Bank Holdings,
Inc. ("Piedmont").

Crescent Financial Bancshares, Inc. Logo

VantageSouth Bank Logo

The fourth quarter and year ended December 31, 2012 summary for Crescent is as
follows:

  *Net income in the fourth quarter of 2012 totaled $2.1 million while the
    net loss in the predecessor fourth quarter of 2011 totaled $852 thousand.
  *Net income totaled $3.8 million in the successor period from February 1 to
    December 31, 2012 ("2012 Successor Period") and $529 thousand in
    predecessor period from January 1 to January 31, 2012 ("2012 Predecessor
    Period"). Net income in the predecessor year ended December 31, 2011
    totaled $968 thousand.
  *The fourth quarter of 2012 included $2.3 million in merger, conversion and
    re-branding costs that reduced net income by $1.4 million on an after-tax
    basis. Merger, conversion and re-branding costs totaled $3.4 million in
    the 2012 Successor Period and reduced net income by $2.1 million on an
    after-tax basis.
  *Annualized revenue growth equaled 21 percent from the third quarter of
    2012 to the fourth quarter of 2012 driven by loan growth and improved
    revenue mix.
  *Annualized net loan growth in the last six months of 2012 was 19 percent,
    which was driven by loan originations for the second half of 2012 totaling
    $162.3 million which was a significant increase from $82.9 million in the
    first half of 2012. Fourth quarter 2012 loan originations totaled $87.6
    million.
  *Net interest margin improved to 4.37 percent in the fourth quarter of 2012
    from 3.72 percent in the predecessor fourth quarter of 2011. Net interest
    margin improved to 4.40 percent in the 2012 Successor Period and 4.55
    percent in the 2012 Predecessor Period from 4.19 percent in the
    predecessor year ended December 31, 2011.
  *Revenue mix improved as non-interest income increased to 29 percent of
    total revenues in the fourth quarter of 2012 from 14 percent of total
    revenues in the predecessor fourth quarter of 2011. Non-interest income
    improvement has been primarily due to growth in the Company's mortgage and
    government-guaranteed lending businesses in 2012.
  *VantageSouth Bank and Crescent State Bank were merged on November 30, 2012
    with the combined bank being re-branded as VantageSouth Bank. The combined
    VantageSouth Bank now operates on a single technology platform and
    utilizes common business processes and policies across the company.

"We are proud of the many accomplishments of our team members during 2012,"
stated Scott Custer, President and CEO of the Company and Piedmont. Mr. Custer
continued, "Because of their hard work and dedication, the Company was able to
complete two mergers, two system conversions, a bank re-branding, and was able
to sign a merger agreement with ECB within the year. These activities elevated
expenses but simplified our organizational structure and better position the
Company for growth. Additionally, the Company continued to execute on its
business plan by increasing loan production, growing revenues and improving
mix, and decreasing non-performing assets in the fourth quarter of 2012. We
look forward to the proposed merger with ECB, which we believe will generate
new revenues and create operating efficiencies for the combined institution
and provide the Company with new markets, relationship-focused bankers, a
strong core deposit franchise, and an established agricultural lending
program."

VantageSouth Bank Merger

On November 30, 2012, the Company completed the merger of VantageSouth Bank
("Legacy VantageSouth") into Crescent State Bank in a share exchange based on
Crescent's volume weighted average stock price. All outstanding Legacy
VantageSouth shares of common stock were converted into Crescent's shares at a
5.3278 exchange ratio for a total transaction value of approximately $35.0
million. At the time of merger, Piedmont owned all outstanding shares of
Legacy VantageSouth except for shares of common stock held by directors as
required by state law. Piedmont owns approximately 90% of Crescent's
outstanding common stock following the merger. Legacy VantageSouth was
headquartered in Burlington, North Carolina, and operated five branch offices
located in Burlington (2), Fayetteville, Salisbury, and China Grove, North
Carolina. The Company re-branded its wholly-owned banking subsidiary as
VantageSouth Bank ("VantageSouth") immediately following the merger.

The merger of Legacy VantageSouth into Crescent State Bank was a merger of
commonly controlled companies and was accounted for in a manner similar to a
pooling of interests transaction. Thus, the Company's financial statements
have been retrospectively adjusted to combine the financial statement balances
of Crescent and Legacy VantageSouth beginning on November 18, 2011, the date
the two companies became commonly controlled by Piedmont. Periods prior to the
date of common control reflect only Legacy VantageSouth's historical balances
since it was the first company acquired by Piedmont. Due to the application of
push-down accounting to Legacy VantageSouth's books on February 1, 2012,
periods prior to this date are denoted as "Predecessor Period(s)" and periods
after this date are denoted as "Successor Period(s)".

Earnings Per Share

After preferred stock dividends, the Company recognized net income of $0.05
per basic and diluted common share during the fourth quarter of 2012 and a net
loss of $0.05 per basic and diluted common share in the predecessor fourth
quarter of 2011. The Company recognized net income of $0.01 per basic and
diluted common share during the 2012 Predecessor Period and net income of
$0.07 per basic and diluted common share in the 2012 Successor Period. Net
income per basic and diluted common shared equaled $0.07 for the predecessor
year ended December 31, 2011.

Net Interest Income

Net interest income in the fourth quarter of 2012 totaled $10.2 million and
net interest income totaled $5.9 million in the predecessor fourth quarter of
2011. Taxable equivalent net interest margin increased to 4.37 percent in the
fourth quarter of 2012 from 3.72 percent in the predecessor fourth quarter of
2011. This significant margin improvement resulted from a decline in funding
costs and an increase in yield on interest-earning assets. Funding costs
declined as the average rate on total interest-bearing liabilities fell from
1.24 percent in the predecessor fourth quarter of 2011 to 0.80 percent in the
fourth quarter of 2012. Taxable equivalent yield on interest-earning assets
increased from 4.79 percent in the predecessor fourth quarter of 2011 to 5.05
percent in the fourth quarter of 2012. The increase in taxable equivalent
yield on interest-earning assets was primarily due to an improved asset mix as
lower yielding federal funds and overnight investments were used to fund loan
growth and securities purchases in 2012.

Average earning assets totaled $933.0 million in the fourth quarter of 2012
and $628.3 million in the predecessor fourth quarter of 2011. Average
interest-bearing liabilities equaled $798.3 million in the fourth quarter of
2012 and $541.7 million in the predecessor fourth quarter of 2011. The
increase in average balances was primarily due to Piedmont's acquisition of
Crescent in the fourth quarter of 2011 and strong loan growth in the last half
of 2012. The first half of the year was marked primarily by a focus on
reducing problem assets and building out the Company's lending platform, which
included recruiting experienced commercial and retail bankers. In the last
half of the year, the Company was able to leverage its lending platform and
execute on its business plan by growing its loan portfolio.

Net interest income totaled $37.3 million in the 2012 Successor Period and
$3.6 million in the 2012 Predecessor Period compared to net interest income of
$11.6 million in the predecessor year ended December 31, 2011. Taxable
equivalent net interest margin improved to 4.40 percent in the 2012 Successor
Period and 4.55 percent in the 2012 Predecessor Period from 4.19 percent in
the predecessor year ended December 31, 2011.

Provision for Loan Losses and Asset Quality

Provision for loan losses totaled $1.2 million in the fourth quarter of 2012
and $729 thousand in the predecessor fourth quarter of 2011. The loan loss
provision totaled $5.2 million for the 2012 Successor Period and $195 thousand
in the 2012 Predecessor Period while the loan loss provision in the
predecessor year ended December 31, 2011 totaled $880 thousand. The allowance
for loan losses and related provision are calculated for the following three
portfolio categories: (1) loans originated subsequent to Piedmont's respective
acquisitions of Legacy VantageSouth, Community Bank of Rowan, and Crescent (or
"New Loans"), (2) purchased non-impaired loans, and (3) purchased
credit-impaired loans.

The following table summarizes the changes in allowance for loan losses for
each loan category in the three month period and 2012 Successor Period ended
December 31, 2012:

(Dollars in thousands)       New Loans Purchased Non- Purchased       Total
                                       Impaired       Credit-Impaired
Three Months Ended:                                                
Balance at October 1, 2012   $2,152    $87            $907            $3,146
Net charge-offs                       (315)          —               (315)
Provision for loan losses    513       283            371             1,167
Balance at December 31, 2012 $2,665    $55            $1,278          $3,998
                                                                  
2012 Successor Period:                                             
Balance at February 1, 2012  $1,276    $—             $—              $1,276
Net charge-offs              —         (2,437)        —               (2,437)
Provision for loan losses    1,389     2,492          1,278           5,159
Balance at December 31, 2012 $2,665    $55            $1,278          $3,998

The allowance for loan losses of $2.7 million on New Loans at December31,
2012 represents 0.93 percent of outstanding balances on all New Loans.
Impaired New Loans at December31, 2012 represented 0.38 percent of related
outstanding balances on impaired New Loans. Although purchased non-impaired
loans were adjusted to fair value at acquisition, the Company records
charge-offs for losses and provides reserves for deterioration in credit
quality on these loans. All revolving loans were classified as purchased
non-impaired at each respective acquisition and a majority of the charge-offs
and provision relate to acquired revolving home equity lines.

Loans acquired with evidence of credit deterioration since origination have
been grouped into pools of loans with similar risk characteristics and
accounted for as purchased credit-impaired loans. Subsequent to acquisition of
these loans, estimates of pool-level cash flows expected to be collected are
updated each reporting period based on assumptions regarding default rates,
loss severities, and other factors that reflect current market conditions. If
the Company has probable decreases in pool-level cash flows expected to be
collected, the provision for loan losses is charged, resulting in an increase
to the allowance for loan losses. If there are probable and significant
increases in pool-level cash flows expected to be collected, the Company will
first reverse any previously established allowance for loan losses and then
increase interest income as a prospective yield adjustment over the remaining
life of the loans.

Results of the Company's fourth quarter cash flow re-estimation are summarized
as follows:

(Dollars in thousands)                Impairment CashFlow   New   Previous
                                                 Improvement Yield Yield
Loan pools with cash flow improvement $(111)     $508        7.48% 7.07%
Loan pools with impairment            482        —           6.51% 6.51%
                                                               
Total                                 $371       $508        6.82% 6.67%

The fourth quarter of 2012 cash flow re-estimation indicated net improved cash
flows on purchased credit-impaired loan pools of $137 thousand. The $508
thousand of cash flow improvement on related loan pools will be recorded as
additional interest income as a prospective yield adjustment over the
remaining life of the loans. The $371 thousand impairment was recorded to the
provision for loan losses in the fourth quarter of 2012. The pool-level
impairment and cash flow improvement were calculated as the difference between
the pool-level recorded investment and the net present value of estimated cash
flows at the time of the cash flow re-estimation.

Non-performing loans as a percentage of total loans was 2.43 percent at
December31, 2012, which was a decline from 2.80 percent at September 30, 2012
and 5.09 percent for the predecessor company at December31, 2011. Total
non-performing assets (which include non-accrual loans, loans past due 90 days
or more and still accruing, other real estate owned and repossessed loan
collateral) as a percentage of total assets at December31, 2012 was 1.71
percent, which was a decline from 1.97 percent at September 30, 2012 and 3.44
percent for the predecessor company at December31, 2011.

Non-Interest Income

Non-interest income totaled $4.1 million in the fourth quarter of 2012
compared to $921 thousand in the predecessor fourth quarter of
2011.Non-interest income in the fourth quarter of 2012 included $771 thousand
in mortgage banking income, which was an increase from $282 thousand in the
fourth quarter of 2011. The Company restructured its mortgage lending business
following Piedmont's investment in Crescent and hired additional experienced
mortgage lenders. The Company also continues to benefit from the improving
housing market in the Raleigh, North Carolina and surrounding areas as well as
the currently low interest rate environment that has encouraged refinancings.

Non-interest income in the fourth quarter of 2012 also included $1.7 million
in servicing fees and gains on the sale of the guaranteed portion of U.S.
Small Business Administration ("SBA") loans originated by the Company, which
was a significant increase from $51 thousand in the fourth quarter of 2011.
The Company entered the government-guaranteed lending business following
Piedmont's acquisition of Community Bank of Rowan in April 2011 and sells the
guaranteed portion of certain SBA loans in the secondary market without
recourse and recognizes gains as those loans are sold at a premium.
Government-guaranteed lending and sales volumes have increased significantly
throughout 2012 while secondary market premiums have also risen. Securities
gains also contributed to higher non-interest income as the Company realized
$603 thousand in gains in the fourth quarter of 2012 compared to losses of $55
thousand in the fourth quarter of 2011.

Non-interest income totaled $11.3 million in the 2012 Successor Period and
$657 thousand in the 2012 Predecessor Period. Non-interest income in the
predecessor year ended December31, 2011 equaled $1.7 million. The 2012
Successor Period included $3.2 million in mortgage banking income, $3.1
million in government-guaranteed lending income, and $1.3 million in
securities gains while the 2012 Predecessor Period included $225 thousand in
mortgage banking income and $98 thousand in government-guaranteed lending
income.

Non-Interest Expense

Non-interest expense in the fourth quarter of 2012 totaled $14.4 million
compared with $7.4 million in the predecessor fourth quarter of 2011.
Non-interest expense in the fourth quarter of 2012 included $6.6 million in
salaries and employee benefits expense and $1.4 million in occupancy and
equipment expense. Also included in non-interest expense in the fourth quarter
of 2012 was $2.3 million in merger, conversion, and re-branding costs
associated with the Crescent/ Legacy VantageSouth merger and the proposed
merger with ECB Bancorp, Inc. ("ECB").

Non-interest expense totaled $43.2 million in the 2012 Successor Period and
$3.2 million in the 2012 Predecessor Period while non-interest expense in the
predecessor year ended December31, 2011 equaled $11.2 million. The 2012
Successor Period included$21.3 million in salaries and employee benefits
expense and $4.9 million in occupancy and equipment expense while the 2012
Predecessor Period included $1.7 million in salaries and employee benefits
expense and $396 thousand in occupancy and equipment expense. The 2012
Successor Period and 2012 Predecessor Period included $3.4 million and $59
thousand, respectively, in merger, conversion, and re-branding costs
associated with the Legacy VantageSouth/Community Bank of Rowan merger, the
Crescent/Legacy VantageSouth merger, and the proposed merger with ECB. Higher
non-interest expense in the fourth quarter of 2012 and the combined 2012
Predecessor and Successor Periods was driven by the fact that the operations
of Crescent State Bank are included in the consolidated results of operations
for periods after Piedmont's acquisition on November 19, 2011.

Income Taxes

The Company's income tax benefit in the fourth quarter of 2012 totaled $3.3
million while the Company's income tax benefit in the 2012 Successor Period
totaled $3.5 million. Income tax expense totaled $270 thousand in the 2012
Predecessor Period. The income tax benefits recognized in the quarterly and
year-to-date successor periods were primarily due to the Company's reversal of
a valuation allowance in the fourth quarter of 2012 related to tax benefits
generated by Legacy VantageSouth before and after Piedmont's investment in
that company. This valuation allowance reversal was based on the Company's
analysis of positive and negative evidence regarding future realization of its
deferred tax assets, which included an evaluation of historical and forecasted
pre-tax earnings, net operating loss periods, merger costs and savings, asset
quality trends, capital levels, and potential tax planning strategies. Based
on this analysis, the Company determined that there was sufficient positive
evidence to indicate that it would likely realize the full value of its
deferred tax assets over time and therefore it was determined that no
valuation allowance on its deferred tax assets was needed at December31,
2012.

The Company's income tax benefit in the predecessor fourth quarter of 2011
totaled $504 thousand and was $188 thousand in the predecessor year ended
December31, 2011.

Linked Quarter Comparison

Net income in the fourth quarter of 2012 equaled $2.1 million, which was an
increase from $1.3 million in the third quarter of 2012. After preferred stock
dividends, the Company recognized net income of $0.05 per basic and diluted
common share during the fourth quarter of 2012 compared to a net loss of $0.03
per basic and diluted common share in the third quarter of 2012. The increase
in net income on a linked quarter basis was primarily due to the reversal of a
$3.3 million valuation allowance in the fourth quarter of 2012 related to tax
benefits generated by Legacy VantageSouth before and after Piedmont's
investment in that company. Net income before income taxes decreased by $2.6
million in the fourth quarter of 2012 compared to the third quarter of 2012.
This decrease in pre-tax net income was primarily due to $1.8 million in
higher merger, conversion, and re-branding costs, a $963 thousand increase in
salaries and benefits expense and a $411 thousand increase in losses on
foreclosed assets. The decline in pre-tax net income was partially offset by a
$942 thousand increase in government-guaranteed lending income.

Net interest income in the fourth quarter of 2012 totaled $10.2 million
compared to $10.3 million in the third quarter of 2012. Net interest margin
declined from 4.49 percent in the third quarter to 4.37 percent in the fourth
quarter. The linked quarter decrease in margin was due to lower yields on
interest-earning assets as the loan and securities portfolios repriced down
somewhat in the fourth quarter, but the impact on net interest income was
largely offset by an increase in average loan balances. Average loan balances
increased from $722.2 million in the third quarter to $749.1 million in the
fourth quarter of 2012. The Company originated 87.6 million in new commercial
and consumer loans in the fourth quarter while continuing to resolve problem
assets. Excluding the impact of purchase accounting accretion, net interest
margin declined from 3.76 percent in the third quarter to 3.74 percent in the
fourth quarter of 2012.

Provision for loan losses in the fourth quarter of 2012 totaled $1.2 million
compared to provision of $1.1 million in the third quarter of 2012. The
moderate increase in provision was related to an increase in provision for
purchased credit-impaired loans, which was mostly offset by a decrease in
provision for new loans. The provision (or impairment) on purchased
credit-impaired loans in the third and fourth quarters was based on the
Company's respective quarterly cash flow re-estimations.

Non-interest income in the fourth quarter of 2012 totaled $4.1 million, which
was an increase from $3.3 million in the third quarter of 2012. This increase
was primarily due to government-guaranteed lending income, which increased by
$942 thousand on a linked quarter basis. SBA guaranteed lending and sales
volumes have increased significantly throughout 2012 while secondary market
premiums have also risen. The improvement in non-interest income was partially
offset by mortgage banking income, which decreased by $356 thousand. The
Company restructured its mortgage lending business and government-guaranteed
lending operations following Piedmont's investment and hired additional
experienced mortgage lenders. While mortgage banking income fell on a linked
quarter basis, it has been a strong source of non-interest income as the
Company continues to benefit from the improving housing market in the Raleigh,
North Carolina and surrounding areas as well as the currently low interest
rate environment that has encouraged refinancings. Securities gains also
contributed to higher non-interest income as the Company realized $603
thousand in gains in the fourth quarter of 2012 compared to $483 thousand in
the third quarter.

Non-interest expense in the fourth quarter of 2012 totaled $14.4 million
compared to $11.1 million in the third quarter of 2012. This increase was
primarily due to a $1.0 million increase in salaries and employee benefits
expense related to performance incentive payments at year end and a $1.8
million increase in merger, conversion, and re-branding costs, most of which
are included in other non-interest expense.

The Company's income tax benefit equaled $3.3 million in the fourth quarter of
2012 primarily due to the Company's reversal of a valuation allowance related
to deferred tax benefits generated by Legacy VantageSouth before and after
Piedmont's investment in that company. Income tax expense of $95 thousand in
the third quarter of 2012 was based on pre-tax income adjusted for non-taxable
income, such as municipal investment income and earnings on bank owned life
insurance, and non-deductible expenses, such as certain merger related costs.

Proposed ECB Bancorp, Inc. Merger

On September 25, 2012, Crescent entered into an Agreement and Plan of Merger
with ECB (the "ECB Merger Agreement"). Pursuant to the ECB Merger Agreement,
ECB will merge with and into Crescent (the "Merger"), which will be the
surviving bank holding corporation in the merger. Immediately following the
merger, The East Carolina Bank, a North Carolina banking corporation and a
wholly-owned subsidiary of ECB, will be merged with and into VantageSouth. At
the effective time of the merger, ECB's outstanding shares of common stock
will be converted into the right to receive 3.55 shares of the common stock of
the Company. The Merger has been approved by the North Carolina Commissioner
of Banks but is still subject to federal regulatory approvals and stockholder
approvals. The Company expects the merger to close within the first half of
2013.

ECB (NYSE Amex:ECBE) is a bank holding company, headquartered in Engelhard,
North Carolina. The East Carolina Bank has twenty-five branch offices in
eastern North Carolina stretching from the Virginia to South Carolina state
lines east of Interstate 95. ECB offers a full range of financial services,
including mortgage, agricultural banking and wealth management services.

VantageSouth Bank is a state chartered bank operating twenty banking offices
in Cary (2), Apex, Burlington (2), China Grove, Salisbury, Clayton, Holly
Springs, Southern Pines, Pinehurst, Sanford, Fayetteville, Garner, Raleigh
(3), Wilmington (2) and Knightdale, North Carolina. Crescent Financial
Bancshares, Inc. stock can be found on the NASDAQ Global Market trading under
the symbol CRFN. Investors can access additional corporate information,
product descriptions and online services through VantageSouth Bank's website
at http://www.vantagesouthbank.com.

The VantageSouth Bank logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=16910

The Crescent Financial Bancshares, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=14863

Forward-looking Statements

Information in this press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995. These
statements involve risks and uncertainties that could cause actual results to
differ materially, including without limitation, risks associated with the
ownership by Piedmont of a majority of the Company's voting power, including
interests of Piedmont differing from other Company stockholders or any change
in management, strategic direction, business plan, or operations, the
Company's new management's ability to successfully integrate into the
Company's business and execute its business plan, the Company's ability to
integrate recent and proposed acquisitions into the Company's operations
successfully, local economic conditions affecting retail and commercial real
estate, disruptions in the credit markets, changes in interest rates, adverse
developments in the real estate market affecting the value and marketability
of collateral securing loans made by the Bank, the failure of assumptions
underlying loan loss and other reserves, competition, and the risk of new and
changing regulation. Additional factors that could cause actual results to
differ materially are discussed in the Company's filings with the Securities
and Exchange Commission (the "SEC"), including without limitation its Annual
Report on Form 10-K, its Quarterly Reports on Form 10-Q, and its Current
Reports on Form 8-K. The forward-looking statements in this press release
speak only as of the date of the press release, and the Company does not
assume any obligation to update such forward-looking statements.

Information in this press release also contains forward-looking statements
with respect to the expected acquisition of ECB by Crescent. These statements
involve risks and uncertainties that could cause actual results to differ
materially from those anticipated by such forward-looking statements,
including without limitation: delays in obtaining or failure to receive
required regulatory approvals; the possibility that fewer than the required
number of ECB's stockholders vote to approve the Merger; the occurrence of
events that would have a material adverse effect on ECB or Crescent (as
defined in the ECB Merger Agreement); potential delays in the closing of the
Merger, potential deposit attrition, higher than expected costs, customer loss
and business disruption associated with business integration, including,
without limitation, potential difficulties in maintaining relationships with
key personnel, technological integration, and other integration
related-matters; other uncertainties arising in connection with the Merger;
and risk factors that are discussed in Crescent's and ECB's filings with the
Securities and Exchange Commission ("SEC"), including without limitation their
respective Annual Reports on Form 10-K, their respective Quarterly Reports on
Form 10-Q and their respective Current Reports on Form 8-K. Crescent does not
undertake a duty to update any forward-looking statements in this Form 8-K.

Additional Information and Where to Find It

In connection with the Merger, Crescent filed with the SEC on November 21,
2012, and amended on December 21, 2012, a Registration Statement on Form S-4
that includes a preliminary Joint Proxy Statement of Crescent and ECB and a
preliminary Prospectus of Crescent (together with the Joint Proxy Statement,
as amended, the "Joint Proxy Statement/Prospectus"). The companies will file
with the SEC other relevant materials in connection with the proposed Merger.
Once the Registration Statement is declared effective by the SEC, the
companies will mail the Joint Proxy Statement/Prospectus to their respective
shareholders. SHAREHOLDERS OF BOTH CRESCENT AND ECB ARE STRONGLY URGED TO READ
THE REGISTRATION STATEMENT AND THE JOINT PROXY STATEMENT/PROSPECTUS REGARDING
THE PROPOSED MERGER AND OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL
AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN
IMPORTANT INFORMATION REGARDING CRESCENT, ECB AND THE PROPOSED MERGER. You
will be able to obtain a free copy of the Registration Statement, as well as
other filings containing information about Crescent at the SEC's Internet site
(http://www.sec.gov). The documents can also be obtained, without charge, by
directing a written request to either Crescent Financial Bancshares, Inc.,
3600 Glenwood Avenue, Suite 300, Raleigh, NC 27612, Attention: Terry Earley,
Executive Vice President and Chief Financial Officer, or ECB Bancorp, Inc.,
Post Office Box 337, Engelhard, NC 27824, Attention: Tom Crowder, Chief
Financial Officer.

Crescent, ECB and their respective directors and executive officers may be
deemed to be "participants" in the solicitation of proxies from the
shareholders of Crescent and ECB in favor of the Merger. Information about the
directors and executive officers of ECB and their ownership of ECB common
stock is set forth in ECB's definitive proxy statement filed with the SEC on
April 27, 2012 and available at the SEC's Internet site (http://www.sec.gov)
and from ECB at the address set forth in the preceding paragraph. Information
about the directors and executive officers of Crescent and their ownership of
Crescent common stock is set forth in Crescent's definitive proxy statement
filed with the SEC on April 5, 2012 and available at the SEC's internet site
(http://www.sec.gov) and from Crescent at the address set forth in the
preceding paragraph. Additional information regarding the interests of these
participants and other persons who may be deemed participants in the
solicitation may be obtained by reading the Joint Proxy Statement/Prospectus
regarding the proposed Merger. Free copies of this document may be obtained as
described in the preceding paragraph.

INCOME STATEMENTS (unaudited)

(Dollars in thousands except per share data; prior quarters' information has
been retrospectively adjusted to reflect the common control merger between
Legacy VantageSouth and Crescent)

                        Successor Company                    Predecessor
                                                              Company
                                                     For the  For the For the
                                                   Period   Period  Three
                                                     of       of      Month
                        For the Three Month Period  February January Period
                         Ended                       1 to     1 to    Ended
                        December September June 30, March    January December
                         31,      30,                31,      31,     31,
                        2012     2012      2012     2012     2012    2011
Interest income                                                  
Loans                    $10,898  $10,810   $10,707  $7,302   $3,807  $6,984
Investment securities    855      1,036     1,070    756      395     507
Fed funds sold and
interest-earning         20       16        33       16       4       61
deposits
Total interest income    11,773   11,862    11,810   8,074    4,206   7,552
Interest expense                                                 
Deposits                 1,309    1,320     1,462    995      530     1,032
Short-term borrowings    10       3         4        2        —       18
Long-term debt           279      274       311      201      103     646
Total interest expense   1,598    1,597     1,777    1,198    633     1,696
                                                                
Net interest income      10,175   10,265    10,033   6,876    3,573   5,856
Provision for loan       1,167    1,077     2,046    868      195     729
losses
Net interest income
after provision for loan 9,008    9,188     7,987    6,008    3,378   5,127
losses
                                                                
Non-interest income                                              
Mortgage banking income  771      1,127     770      496      225     282
Government-guaranteed    1,718    776       572      (6)      98      51
lending
Service charges and fees 508      523       557      349      194     301
on deposit accounts
Bank-owned life          208      215       203      134      70      103
insurance income
Gain (loss) on sale of
available for sale       603      483       (27)     192      —       (55)
securities
Other                    325      208       315      307      70      239
Total non-interest       4,133    3,332     2,390    1,472    657     921
income
Non-interest expense                                             
Salaries and employee    6,613    5,650     5,513    3,500    1,737   3,923
benefits
Occupancy and equipment  1,371    1,387     1,353    809      396     590
Data processing          852      644       596      881      271     (150)
FDIC insurance premiums  216      205       229      277      141     602
Net loss on foreclosed   662      251       295      95       11      265
assets
Other loan related       352      419       335      417      162     261
expense
Other                    4,288    2,584     1,977    1,438    518     1,913
Total non-interest       14,354   11,140    10,298   7,417    3,236   7,404
expense
                                                                
Income (loss) before     (1,213)  1,380     79       63       799     (1,356)
income taxes
Income taxes             (3,326)  95        (259)    4        270     (504)
Net income (loss)        2,113    1,285     338      59       529     (852)
Effective dividend on    368      367       367      244      122     182
preferred stock
Net income (loss) to     $1,745   $918      $(29)    $(185)   $407    $(1,034)
common stockholders
                                                                
NET INCOME (LOSS) PER                                            
COMMON SHARE
Basic                    $0.05    $0.03     $—       $(0.01)  $0.01   $(0.05)
Diluted                  $0.05    $0.03     $—       $(0.01)  $0.01   $(0.05)

                                                
                Successor Company                           Predecessor Company
                                                  For the    For the    For the
                                                Period of  Period of  Three
                                                                        Month
                For the Three Month Period Ended February 1 January 1  Period
                                                  to         to         Ended
                December   September  June 30,   March 31,  January    December
                 31,        30,                              31,        31,
                2012       2012       2012       2012       2012       2011
COMMON SHARE                                                       
DATA
                                                                  
Book value per   $4.18      $4.11      $4.07      $4.10      N/A        $4.08
common share
Tangible book
value per common $3.37      $3.31      $3.26      $3.29      N/A        $3.27
share
Ending shares    35,754,247 35,747,576 35,749,689 35,749,603 35,549,785 35,549,785
outstanding
Weighted average
common shares    35,730,855 35,728,451 35,727,207 35,721,856 35,515,535 19,061,335
outstanding -
basic
Weighted average
common shares    35,808,687 35,751,704 35,727,207 35,721,856 35,537,815 19,061,335
outstanding -
diluted
                                                                  
PERFORMANCE
RATIOS                                                             
(annualized)
                                                                  
Return on        0.79%      0.49%      0.13%      0.03%      0.58%      (0.48)%
average assets
Return on        4.84%      2.98%      0.80%      0.21%      3.67%      (3.56)%
average equity
Tax equivalent
yield on earning 5.05%      5.18%      5.07%      5.15%      5.35%      4.79%
assets
Cost of
interest-bearing 0.80%      0.83%      0.91%      0.92%      0.95%      1.24%
liabilities
Tax equivalent
net interest     4.37%      4.49%      4.30%      4.39%      4.55%      3.72%
margin
Efficiency ratio 100.32%    81.93%     82.89%     88.85%     76.50%     109.25%
Net loan         0.17%      0.44%      0.35%      0.45%      —          0.54%
charge-offs

INCOME STATEMENTS (unaudited)

(Dollars in thousands except per share data; prior years' information has been
retrospectively adjusted to reflect the common control merger between Legacy
VantageSouth and Crescent)

                                  Successor     Predecessor
                                   Company       Company
                                   February 1 to January 1 to     Year Ended
                                  December 31,  January 31, 2012 December 31,
                                   2012                           2011
Interest income                                                 
Loans                              $39,717       $3,807           $13,362
Investment securities              3,717         395              870
Federal funds sold and             85            4                102
interest-earning deposits
Total interest income              43,519        4,206            14,334
Interest expense                                                
Non-maturity deposits              1,873         205              903
Time deposits                      3,213         325              1,132
Short-term borrowings              19            —                18
Long-term debt                     1,065         103              725
Total interest expense             6,170         633              2,778
Net interest income                37,349        3,573            11,556
Provision for loan losses          5,159         195              880
Net interest income after          32,190        3,378            10,676
provision for loan losses
Non-interest income                                             
Mortgage banking income            3,164         225              440
Government-guaranteed lending      3,061         98               476
Service charges and fees on        1,937         194              516
deposit accounts
Bank-owned life insurance income   760           70               103
Gain (loss) on sale of available   1,251         —                (38)
for sale securities
Other                              1,154         70               219
Total non-interest income          11,327        657              1,716
Non-interest expense                                            
Salaries and employee benefits     21,276        1,737            5,786
Occupancy and equipment            4,920         396              953
Net (gain) loss on foreclosed      1,303         11               (191)
assets
Data processing                    2,972         271              1,000
FDIC insurance premiums            926           141              373
Other loan related expense         1,524         162              337
Professional services              4,691         144              867
Advertising and business           1,083         73               723
development
Printing, postage, and supplies    786           47               210
Other                              3,729         254              1,178
Total non-interest expense         43,210        3,236            11,236
Income before income tax           307           799              1,156
Income tax expense (benefit)       (3,486)       270              188
Net income                         3,793         529              968
Effective dividend on preferred    1,346         122              182
stock
Net income available to common     $2,447        $407             $786
shareholders
Net income per common share                                     
Basic                              $0.07         $0.01            $0.07
Diluted                            $0.07         $0.01            $0.07
Weighted average common shares                                  
outstanding
Basic                              35,727,930    35,515,535       10,858,657
Diluted                            35,800,148    35,537,815       10,916,549
                                                               
PERFORMANCE RATIOS (annualized)                                 
Return on average assets           0.39%         0.58%            0.32%
Return on average equity           2.41%         3.67%            2.56%
Tax equivalent yield on earning    5.12%         5.35%            5.20%
assets
Cost of interest-bearing           0.86%         0.95%            1.15%
liabilities
Tax equivalent net interest margin 4.40%         4.55%            4.19%
Efficiency ratio                   88.77%        76.50%           84.66%
Net loan charge-offs               0.37%         —                0.31%

CONSOLIDATED BALANCE SHEETS (unaudited)

(Dollars in thousands, prior periods' information has been retrospectively
adjusted to reflect the common control merger between Legacy VantageSouth and
Crescent)

                Successor                                          Predecessor
                Company                                             Company
                December 31, September    June 30,     March 31,    December 31,
                              30,
                2012         2012         2012         2012         2011
ASSETS                                                           
Cash and due     $15,735    $13,187    $18,776    $16,373    $13,229
from banks
Interest-earning
deposits with    7,978        3,821        6,817        5,020        8,583
banks
Federal funds    26,750       20,550       44,535       59,145       24,660
sold
Investment
securities       136,311      153,742      173,757      168,526      169,583
available for
sale
Investment
securities held  180          166          130          125          421
to maturity
Loans held for   16,439       8,239        7,357        4,874        4,214
sale
Loans            763,416      739,028      696,872      704,261      736,089
Allowance for    (3,998)      (3,146)      (3,043)      (1,607)      (2,131)
loan losses
Net loans        759,418      735,882      693,829      702,654      733,958
                                                                
Federal Home     2,307        2,172        3,894        9,793        9,899
Loan Bank stock
Premises and     17,351       17,068       17,130       17,054       16,841
equipment, net
Bank-owned life  19,976       19,800       19,620       19,442       19,261
insurance
Foreclosed       5,837        6,697        7,772        8,340        11,066
assets
Deferred tax     36,659       33,162       33,590       33,704       33,935
asset, net
Goodwill         26,254       26,254       26,254       26,254       26,254
Other intangible 2,376        2,487        2,597        2,708        2,452
assets, net
Other assets     11,654       10,842       11,771       9,096        13,265
                                                                
Total assets     $1,085,225 $1,054,069 $1,067,829 $1,083,108 $1,087,621
                                                                
LIABILITIES AND
STOCKHOLDERS'                                                    
EQUITY
LIABILITIES                                                      
Deposits ^(1)                                                    
Non-interest     $71,613    $111,725   $102,596   $99,236    $113,321
demand
Interest-bearing 188,843      139,768      146,027      160,007      175,840
demand
Money market and 260,966      241,324      245,913      227,075      189,468
savings
Time             351,800      360,172      372,074      390,181      407,615
Total deposits   873,222      852,989      866,610      876,499      886,244
                                                                
Short-term       7,500        —            —            5,000        —
borrowings
Long-term debt   19,864       24,326       24,288       24,252       24,216
Other            10,698       5,243        7,050        6,158        7,652
liabilities
Total            911,284      882,558      897,948      911,909      918,112
liabilities
                                                                
STOCKHOLDERS'                                                    
EQUITY
Preferred stock  24,657       24,601       24,544       24,489       24,442
Common stock     36           36           36           36           36
Common stock     1,325        1,325        1,325        1,325        1,325
warrant
Additional       147,510      146,655      146,648      146,627      152,515
paid-in capital
Accumulated      (1,405)      (3,200)      (4,115)      (2,420)      (9,089)
deficit
Accumulated
other            1,818        2,094        1,443        1,142        280
comprehensive
income
                                                                
Total
stockholders'    173,941      171,511      169,881      171,199      169,509
equity
                                                                
Total
liabilities and  $1,085,225 $1,054,069 $1,067,829 $1,083,108 $1,087,621
stockholders'
equity
                                                                
(1) Certain business deposit accounts became interest-bearing in the fourth
quarter of 2012 as the Company enhanced its deposit product offerings to attract
and retain core deposit relationships. This deposit product change increased
interest-bearing demand balances while decreasing non-interest demand balances in
the fourth quarter.


                           Successor                             Predecessor
                            Company                               Company
                           December September June 30, March 31, December 31,
                            31,      30,
                           2012     2012      2012     2012      2011
CAPITAL RATIOS                                                
Tangible equity to tangible 13.75%   13.92%    13.57%   13.49%    13.30%
assets
Tangible common equity to   11.42%   11.52%    11.21%   11.17%    10.99%
tangible assets
VantageSouth Bank:                                            
Tier 1 leverage ratio       11.49%   9.89%     9.41%    8.93%     8.49%
Tier 1 risk-based capital   13.48%   12.82%    12.02%   11.17%    10.59%
ratio
Total risk-based capital    14.76%   13.28%    12.49%   11.62%    11.85%
ratio
Crescent State Bank:                                          
Tier 1 leverage ratio       N/A      12.21%    12.11%   12.18%    10.19%
Tier 1 risk-based capital   N/A      13.81%    14.22%   14.96%    13.62%
ratio
Total risk-based capital    N/A      15.20%    15.61%   16.17%    14.64%
ratio
                                                             
ASSET QUALITY DATA                                            
                                                             
Non-performing loans        $12,751  $14,023   $17,983  $19,118   $26,396
Foreclosed assets           5,837    6,697     7,772    8,340     11,066
Total non-performing assets $18,588  $20,720   $25,755  $27,458   $37,462
                                                             
Allowance for loan losses   0.52%    0.43%     0.44%    0.23%     0.29%
to loans
Non-performing loans to     2.43%    2.80%     3.70%    3.90%     5.09%
total loans
Non-performing assets to    1.71%    1.97%     2.41%    2.54%     3.44%
total assets
Restructured loans not
included in categories      104      —         —        917       782
above

AVERAGE BALANCES, TAXABLE EQUIVALENT INTEREST AND YIELDS/COSTS

(Dollars in thousands)

                    SuccessorCompany                                                 PredecessorCompany
                    Three months ended               Three months ended               Three months ended
                     December 31, 2012                September 30, 2012               December 31, 2011
                    Average             Average     Average             Average     Average           Average
                    Balance   Interest* Yield/Cost* Balance   Interest* Yield/Cost* Balance Interest* Yield/Cost*
                                                                                                 
Assets                                                                                            
Loans                $ 749,053 $ 10,898   5.79%       $ 722,177 $ 10,810   5.95%       $       $ 6,984    6.33%
                                                                                       437,688
Investment           147,188   934        2.52        163,655   1,115      2.71        75,000  540        2.86
securities
Federal funds and
other                36,791    20         0.22        30,844    16         0.21        115,584 61         0.21
interest-earning
assets
Total
interest-earning     933,032   11,852     5.05%       916,676   11,941     5.18%       628,272 7,585      4.79%
assets
Non-interest-earning 132,629                        132,347                        73,063            
assets
Total assets         $                              $                              $                 
                     1,065,661                        1,049,023                        701,335
                                                                                                 
Liabilities and                                                                                   
Equity
Interest-bearing     $ 159,071 120        0.30%       $ 135,786 102        0.30%       $       $ 217      0.94%
demand                                                                                 91,583
Money market and     250,625   343        0.54        244,619   357        0.58        115,012 212        0.73
savings
Time deposits        361,557   846        0.93        362,733   861        0.94        249,627 603        0.96
Total
interest-bearing     771,253   1,309      0.68        743,138   1,320      0.71        456,222 1,032      0.90
deposits
Short-term           4,511     10         0.88        1,500     3          0.80        5,670   18         1.26
borrowings
Long-term debt       22,517    279        4.93        22,802    274        4.78        79,811  646        3.21
Total
interest-bearing     798,281   1,598      0.80%       767,440   1,597      0.83%       541,703 1,696      1.24%
liabilities
Non interest-bearing 86,266                         103,535                        60,985            
deposits
Other liabilities    7,459                          6,457                          3,656             
Total liabilities    892,006                        877,432                        606,344           
Stockholders' equity 173,655                        171,591                        94,991            
Total liabilities    $                                $                                $
and stockholders'    1,065,661                      1,049,023                      701,335           
equity
                                                                                                 
Net interest income,          $ 10,254                       $ 10,344                     $ 5,889    
taxable equivalent
Interest rate spread                    4.25%                          4.35%                        3.55%
Tax equivalent net                      4.37%                          4.49%                        3.72%
interest margin
                                                                                                 
Percentage of
average
interest-earning                        116.88%                        119.45%                      115.98%
assets to average
interest-bearing
liabilities
                                                                                                 
* Taxable equivalent                                                                              
basis

                    Successor Company                   Predecessor Company
                    February 1, 2012 through            January 1, 2012 through             Year Ended December 31, 2011
                     December 31, 2012                   January 31, 2012
                    Average                Average     Average                Average     Average              Average
                    balance      Interest* Yield/Cost* balance      Interest* Yield/Cost* balance    Interest* Yield/Cost*
                                                                                                          
Assets:                                                                                                    
Loans                $727,339   $ 39,717   5.97%       $730,387   $ 3,807    6.15%       $201,106 $ 13,362   6.64%
Investment           164,113      3,990      2.66%       180,220      419        2.74%       29,827     903        3.03%
securities
Federal funds and
other                42,603       85         0.22%       23,719       4          0.20%       45,384     102        0.22%
interest-earning
assets
Total
interest-earning     934,055      43,792     5.12%       934,326      4,230      5.35%       276,317    14,367     5.20%
assets
Non-interest-earning 127,572                           134,240                           28,430               
assets
Total assets         $1,061,627                      $1,068,566                      $304,747           
                                                                                                          
Liabilities and                                                                                            
Equity:
Interest-bearing     $149,394   540        0.39%       $172,363   108        0.74%       $36,756  338        0.92%
demand
Money market and     236,735      1,333      0.62%       184,716      96         0.61%       59,813     565        0.94%
savings
Time deposits        373,337      3,213      0.94%       404,999      325        0.95%       115,245    1,132      0.98%
Total
interest-bearing     759,466      5,086      0.73%       762,078      529        0.82%       211,814    2,035      
deposits
Short-term           3,351        19         0.62%       968          —          —           1,429      18         1.26%
borrowings
Long-term debt       22,966       1,065      5.07%       24,217       103        5.02%       27,850     725        2.60%
Total
interest-bearing     785,783      6,170      0.86%       787,263      632        0.95%       241,093    2,778      1.15%
liabilities
Non interest-bearing 97,250                            107,156                           24,549               
deposits
Other liabilities    6,858                             4,184                             1,266                
Total liabilities    889,891                           898,603                           266,908              
Stockholders' equity 171,736                           169,963                           37,839               
Total liabilities
and stockholders'    $1,061,627                      $1,068,566                      $304,747           
equity
                                                                                                          
Net interest income              $37,622                         $3,598                        $11,589  
Interest rate spread                       4.26%                             4.40%                           4.05%
Net interest margin                        4.40%                             4.55%                           4.19%
                                                                                                          
Percentage of
average
interest-earning                           118.87%                           118.68%                         114.61%
assets to average
interest-bearing
liabilities
                                                                                                          
* Taxable equivalent                                                                                       
basis

CONTACT: Terry Earley, CFO
         Crescent Financial Bancshares, Inc.
         Phone: (919) 659-9015
         Email: Terry.Earley@vsb.com

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