Crescent Financial Bancshares, Inc. Announces First Quarter 2013 Financial Results, Which Reflect Strong Loan Growth and Merger

Crescent Financial Bancshares, Inc. Announces First Quarter 2013 Financial
Results, Which Reflect Strong Loan Growth and Merger Activities

RALEIGH, N.C., May 1, 2013 (GLOBE NEWSWIRE) -- Crescent Financial Bancshares,
Inc. (Nasdaq:CRFN), the bank holding company for VantageSouth Bank, today
reported unaudited financial results for the quarter ended March 31, 2013.
Highlights include the following:

  *Net loss was $806 thousand in 1Q 2013, which included significant merger
    and system conversion costs, while net income was $57 thousand in the
    successor period from February 1 to March 31, 2012 ("2012 Successor
    Period") and $529 thousand in the predecessor period from January 1 to
    January 31, 2012 ("2012 Predecessor Period").
  *The merger with ECB Bancorp, Inc. ("ECB") was completed on April 1, 2013,
    which provides the Company with $2.0 billion in total assets and an
    expanded network of ATMs and 45 branches in central and eastern North
    Carolina. ECB's data processing system conversion was also completed in
    April, and the combined bank now operates on a single technology platform
    with common business processes and policies across the organization.
  *Merger and system conversion costs totaled $1.6 million in 1Q 2013 while
    such costs totaled $497 thousand in the 2012 Successor Period and $78
    thousand in the 2012 Predecessor Period.
  *Annualized net loan growth in 1Q 2013 was 17 percent, which was driven by
    loan originations of $81.2 million. Net loan growth over the trailing four
    quarters was 13 percent. Loan growth has remained strong through the first
    month of 2Q 2013.
  *Revenue mix improved as non-interest income increased to 26 percent of
    total revenues in 1Q 2013 from 18 percent in the 2012 Successor Period and
    16 percent in the 2012 Predecessor Period.
  *Asset quality continued to improve as nonperforming assets decreased to
    1.48 percent of total assets as of March 31, 2013 from 1.71 percent of
    total assets as of December 31, 2012 and 2.54 percent of total assets as
    of March 31, 2012.

"The Company generated strong loan growth in the first quarter of 2013 while
continuing to reduce legacy nonperforming assets," stated Scott Custer, CEO of
the Company. Mr. Custer continued, "Our earnings in the quarter were
negatively impacted by ECB merger costs as well as costs to prepare for the
ECB data conversion. Completion of this merger and operational integration of
ECB's systems, processes, and personnel have been a major focus of our senior
management team for the past two quarters. We are pleased to now be the
largest community bank east of Raleigh, North Carolina. Our market position,
coupled with the strength of our balance sheet, should serve us well in the
future."

ECB Merger

On April 1, 2013, the Company completed the merger of ECB with and into the
Company (the "ECB merger"). The ECB merger was completed pursuant to an
Agreement and Plan of Merger dated as of September 25, 2012 (the "Merger
Agreement"). Immediately following the ECB merger, The East Carolina Bank, a
wholly-owned subsidiary of ECB, was merged with and into VantageSouth Bank.
Upon the closing of the ECB merger, each outstanding share of ECB common stock
was converted into the right to receive 3.55 shares of common stock of the
Company. The aggregate merger consideration consisted of approximately
10,312,186 shares of the Company's common stock. Based upon the $3.94 per
share closing price of the Company's common stock on March 28, 2013, the
transaction value was $40.6 million. Following the ECB merger, Piedmont
Community Bank Holdings, Inc. ("Piedmont") owns approximately 70 percent of
the Company's outstanding common stock.

Pursuant to the Merger Agreement, the Company agreed to exchange each share of
ECB's Fixed Rate Cumulative Perpetual Preferred Stock, Series A, into one
share of the Company's Fixed Rate Cumulative Perpetual Preferred Stock, Series
B. At the closing of the ECB merger, the Company also issued a warrant to
purchase 514,693.2 shares of the Company's common stock to the U.S. Treasury
Department ("Treasury") in exchange for the warrant issued by ECB to Treasury
on January 16, 2009 to purchase 144,984 shares of ECB's common stock, which
reflects the exchange ratio associated with the ECB merger.

As of March 31, 2013, ECB had total assets of $857.9 million, loans of $497.3
million, deposits of $731.9 million, and shareholders' equity of $80.9
million. The Company's first quarter 2013 financial results do not reflect
ECB's financial condition or results of operations since the ECB merger was
completed subsequent to quarter end. In connection with the ECB merger on
April 1, 2013, the Company applied the acquisition method of accounting to
ECB's balance sheet. Therefore, all acquired assets and liabilities will be
adjusted to fair value, and the historical allowance for loan losses will be
eliminated. Goodwill will be recorded to the extent that the combined purchase
price and fair value of non-controlling interests exceeds the fair value of
acquired net assets. A gain will be recorded in the Company's second quarter
2013 earnings to the extent that the fair value of acquired net assets exceeds
the combined purchase price and fair value of non-controlling interests. The
Company is currently in the process of finalizing its preliminary valuations
of ECB's assets and liabilities.

Results of Operations

Net loss was $806 thousand in the first quarter of 2013 while net income was
$57 thousand in the 2012 Successor Period and $529 thousand in the 2012
Predecessor Period. After preferred stock dividends, net loss attributable to
common stockholders was $0.03 per common share in the first quarter of 2013.
Net loss attributable to common stockholders was $0.01 per common share in the
2012 Successor Period, and net income available to common stockholders was
$0.01 per common share in the 2012 Predecessor Period.

On November 30, 2012, VantageSouth Bank ("Legacy VantageSouth") was merged
with and into Crescent State Bank, a wholly-owned banking subsidiary of
Crescent Financial Bancshares, Inc. ("Crescent Financial"), and the combined
bank was re-branded as VantageSouth Bank. This merger was a combination of
commonly controlled companies since both banks were subsidiaries of Piedmont,
and it was accounted for in a manner similar to a pooling of interests
transaction. Thus, the Company's financial statements were retrospectively
adjusted to combine the financial condition and results of operations of
Crescent Financial and Legacy VantageSouth from the date the two companies
became commonly controlled. Due to the application of push-down accounting to
Legacy VantageSouth's books on February 1, 2012 when Piedmont purchased the
bank's remaining non-controlling equity interests, periods prior to this date
are denoted as "Predecessor Company" and periods after this date are denoted
as "Successor Company."

Net Interest Income

Net interest income in the first quarter of 2013 totaled $9.9 million while
net interest income totaled $6.9 million in the 2012 Successor Period and $3.6
million in the 2012 Predecessor Period. Taxable equivalent net interest margin
decreased from 4.55 percent in the 2012 Predecessor Period and 4.42 percent in
the 2012 Successor Period to 4.24 percent in the first quarter of 2013. The
decrease in net interest margin was primarily due to a decline in earning
asset yields resulting from the origination of new loans at lower current
market rates and the reinvestment of matured or sold securities at lower
current market rates. The average yield on loans declined from 6.15 percent in
the 2012 Predecessor Period and 6.05 percent in the 2012 Successor Period to
5.54 percent in the first quarter of 2013, and the average yield on investment
securities declined from 2.74 percent in the 2012 Predecessor Period and 2.75
percent in the 2012 Successor Period to 2.42 percent in the first quarter of
2013. The cost of interest-bearing liabilities partially offset lower earning
asset yields as it fell from 0.95 percent in the 2012 Predecessor Period and
0.92 percent in the 2012 Successor Period to 0.76 percent in the first quarter
of 2013.

Average earning assets totaled $956.1 million in the first quarter of 2013,
which was largely unchanged from the 2012 Successor period but was an increase
from $934.3 million in the 2012 Predecessor Period. While total average
earning assets were unchanged from the 2012 Successor Period, the mix of
earning assets over this period was significantly changed, reflecting loan
growth and declining cash and securities balances to fund that loan growth.
Average loan balances increased $46.6 million from the 2012 Successor Period
to the first quarter of 2013 while the average balances of investment
securities and federal funds sold and other interest-earning cash declined by
$34.5 million and $12.0 million, respectively.

Income accretion on purchased loans totaled $3.6 million in the first quarter
of 2013, which consisted of $3.4 million of accretion on purchased
credit-impaired ("PCI") loans and $118 thousand of accretion income on
purchased non-impaired loans. PCI loan accretion represents all interest
income recorded for those loans in the period while accretion income on
purchased non-impaired loans represents accretion of the fair value discount
on the effective yield method, which increased interest income above
contractual yields. The time deposit fair value premium amortization totaled
$484 thousand, which reduced interest expense, while accretion of the fair
value discount on long-term debt totaled $38 thousand, which increased
interest expense. Time deposit amortization and long-term debt accretion
reduced the Company's cost of interest-bearing liabilities by 0.22 percent in
the first quarter of 2013.

Income accretion on purchased loans totaled $2.8 million and $1.6 million in
the 2012 Successor Period and 2012 Predecessor Period, respectively. Net
amortization of fair value premiums on interest-bearing liabilities in the
2012 Successor Period and 2012 Predecessor Period totaled $588 thousand and
$298 thousand, respectively, which reduced the Company's cost of
interest-bearing liabilities by 0.45 percent in each period.

Provision for Loan Losses

Provision for loan losses in the first quarter of 2013 totaled $1.9 million
while provision for loan losses totaled $869 thousand in the 2012 Successor
Period and $195 thousand in the 2012 Predecessor Period. The allowance for
loan losses ("ALL") and related provision were calculated in separate models
for the following three portfolio categories: new loans, purchased
non-impaired loans, and PCI loans.

The following table summarizes the changes in ALL for each loan category in
the quarter ended March 31, 2013.

(Dollars in        New Loans Purchased          Purchased             Total
thousands)                   Non-Impaired       Credit-Impaired
                                                                  
Balance at January $2,665  $55              $1,278              $3,998
1, 2013
Net charge-offs    (56)      (355)              —                     (411)
Provision for loan 225       510                1,205                 1,940
losses
Balance at March   $2,834  $210             $2,483              $5,527
31, 2013

The ALL of $2.8 million on new loans as of March31, 2013 was 0.87 percent of
related outstanding balances, excluding the guaranteed portion of loans
originated through the U.S. Small Business Administration's ("SBA") lending
program. For new loans, the evaluation of the adequacy of the ALL includes
both loans evaluated collectively for impairment and loans evaluated
individually for impairment. The determination of loss rates on loans
collectively evaluated for impairment involves consideration of peer loan loss
experience as well as certain qualitative factors such as current delinquency
levels and trends, loan growth, loan portfolio composition, prevailing
economic conditions, the loan review function, and other relevant factors.
Because the Company has not yet experienced material charge-offs on the new
loan portfolio, trailing two-year peer loss rates are used as a proxy for
charge-off rates on the Company's new loan portfolio.

Purchased non-impaired loans were adjusted to fair value at acquisition.
Following acquisition, the Company records charge-offs for losses in excess of
the fair value discount and provides reserves for deterioration in credit
quality on these loans. For purchased non-impaired loans, the evaluation of
the adequacy of the ALL also includes both loans evaluated collectively for
impairment and loans evaluated individually for impairment and involves
considerations of historical loan loss experience as well as certain
qualitative factors such as current delinquency levels and trends, loan
growth, loan portfolio composition, prevailing economic conditions, the loan
review function, and other relevant factors. The Company uses trailing
two-year historical loss rates on the legacy portfolio plus qualitative
factors to determine appropriate loss rates for loans evaluated collectively.

Loans acquired with evidence of credit deterioration since origination are
accounted for as PCI loans. Subsequent to acquisition of these loans,
estimates of 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 cash flows expected to be collected (other than due to
decreases in interest rates), 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 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 first quarter cash flow re-estimation are summarized
as follows.

                                                CashFlow   New   Previous
(Dollars in thousands)                Impairment Improvement Yield Yield
                                                                
Loan pools with cash flow improvement $(181)    $688      8.39% 7.53%
Loan pools with impairment            1,386       —           6.52% 6.52%
Total                                 $1,205    $688      7.07% 6.82%

The first quarter of 2013 cash flow re-estimation indicated net reduction in
estimated cash flows on purchased credit-impaired loan pools of $517 thousand.
The $688 thousand of estimated 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 $1.2 million impairment
was recorded to provision for loan losses in the first quarter of 2013. This
impairment was primarily related to the default of one legacy commercial real
estate loan in the quarter, which reduced expected cash flows on that
commercial real estate pool. 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.

Nonperforming loans as a percentage of total loans was 1.48 percent as of
March31, 2013, which was a decline from 1.67 percent as of December 31, 2012
and 2.71 percent as of March 31, 2012. Total nonperforming assets (which
include nonaccrual loans, loans past due 90 days or more and still accruing,
and foreclosed assets) as a percentage of total assets as of March31, 2013
totaled 1.48 percent, which was a decline from 1.71 percent as of December 31,
2012 and 2.54 percent as of March 31, 2012. The decline in nonperforming
assets was due primarily to the Company's continuing efforts to resolve legacy
problem assets while maximizing the value of those assets. These resolution
efforts have included a combination of asset sales through various channels
and successful loan workout plans.

Non-Interest Income

Non-interest income in the first quarter of 2013 totaled $3.5 million while
non-interest income totaled$1.5 million in the 2012 Successor Period and $657
thousand in the 2012 Predecessor Period. Government-guaranteed lending income
totaled $1.1 million in the first quarter of 2013, which included gains on
sales of the guaranteed portion of certain SBA loans originated by the Company
as well as servicing fees on previously sold SBA loans. The Company 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. SBA
lending and sales volumes have increased significantly over the past year
while secondary market premiums have also risen.

Securities gains totaled $1.1 million in the first quarter of 2013 as the
Company sold the majority of its municipal bonds for balance sheet management
and tax purposes. Additionally, mortgage banking income, service charges and
fees on deposit accounts, and bank-owned life insurance income totaled $391
thousand, $515 thousand and $195 thousand, respectively, in the first quarter
of 2013.

Non-Interest Expense

Non-interest expense in the first quarter of 2013 totaled $12.7 million while
non-interest expense totaled $7.4 million in the 2012 Successor Period and
$3.2 million in the 2012 Predecessor Period. Expenses in the first quarter of
2013 were significantly impacted by merger and system conversion costs, which
totaled $1.6 million. Such costs included professional fees and other expenses
required to close the ECB merger as well as costs to convert ECB's data
processing and other related activities to the Company's integrated platform.
The Company expects to again incur significant merger and system conversion
costs in the second quarter of 2013 as ECB's data processing conversion and
re-branding was completed in April 2013. Additionally, salaries and employee
benefits expense totaled $6.0 million, and occupancy and equipment expense
totaled $1.5 million in the first quarter of 2013.

Income Taxes

The Company's income tax benefit in the first quarter of 2013 totaled $395
thousand, which represented a 32.9 percent effective tax rate on pre-tax
losses. The effective tax rate was determined by the Company's blended federal
and state statutory income tax rate adjusted primarily for non-taxable
municipal investment income, earnings on bank-owned life insurance, and
non-deductible merger costs. The Company recorded income tax expense in the
2012 Successor Period of $4 thousand and income tax expense of $270 thousand
in the 2012 Predecessor Period associated with the pre-tax income in those
periods.

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 carryforward
periods, merger costs and savings, asset quality trends, capital levels, and
potential tax planning strategies, 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 as of
March31, 2013.

Linked Quarter Comparison

Net loss in the first quarter of 2013 was $806 thousand compared to net income
of $2.1 million in the fourth quarter of 2012. Afterpreferred stock
dividends, net loss attributable to common stockholders was $0.03 per common
share during the first quarter of 2013 compared to net income available to
common stockholders of $0.05 per common share in the fourth quarter of 2012.
The Company's results of operations in 1Q 2013 compared to 4Q 2012 were
significantly impacted by a tax benefit in the prior quarter from the reversal
of a valuation allowance on deferred tax assets, higher provision for loan
losses, lower mortgage banking and government-guaranteed lending income,
partially offset by lower foreclosed asset expense as well as merger and
conversion costs combined with higher securities gains.

Net interest income in the first quarter of 2013 totaled $9.9 million compared
to net interest income of $10.2 million in thefourth quarter of 2013. Net
interest margin decreased from 4.37 percent in the fourth quarter to 4.24
percent in the first quarter. The linked quarter decrease in net interest
margin and net interest income was primarily due to lower loan and investment
yields as loan production is being booked at lower current market rates and as
principal paydowns and maturities on investment securities are also being
re-invested at currently low market rates. In addition to normal principal
paydowns on the investment portfolio, the Company sold the majority of its tax
exempt municipal bond portfolio in the quarter which reduced the annualized
taxable equivalent yield on securities by 0.06 percent.

Higher average loan balances from the Company's strong loan growth and lower
rates on interest-bearing liabilities partially offset the decline in net
interest income. Average loan balances increased from $749.1 million in the
fourth quarter of 2012 to $783.0 million in the first quarter of 2013. This
increase was a result of the origination of $81.2 million in new loans in the
first quarter of 2013. The Company also recognized a smaller benefit from
acquisition accounting as net amortization of fair value premiums on time
deposits and long-term debt reduced the cost of interest-bearing liabilities
by 0.22 percent in the first quarter of 2013 compared to 0.28 percent in the
fourth quarter of 2012.

Provision for loan losses in the first quarter of 2013 totaled $1.9 million
compared to provision of $1.2 million in the fourth quarter of 2013. The
increase in provision was related to a $834 thousand increase in provision for
PCI loans, which was primarily due to the default of one legacy commercial
real estate loan in the quarter, an increase of $193 thousand in provision for
purchased non-impaired loans, and a $254 thousand decrease in provision for
new loans.

Non-interest income in the first quarter of 2013 totaled $3.5 million compared
to $4.1 million in the fourth quarter of 2012. This decrease was primarily due
to lower mortgage banking and government-guaranteed lending income, which
declined by $380 thousand and $599 thousand, respectively. Mortgage banking
income in the current quarter was negatively impacted by seasonality in the
local housing market, changes in market interest rates on mortgage loans which
have reduced refinancings, and by the ECB system conversion and integration
which absorbed much of the focus and time of a key mortgage executive.
Government-guaranteed income was negatively impacted by seasonality in the SBA
lending business as well as uncertainty among SBA borrowers due to continued
fiscal uncertainty for the federal government. The reduction in non-interest
income was partially offset by securities gains, which increased by $489
thousand on a linked quarter basis.

Non-interest expense in the first quarter of 2013 totaled $12.7 million
compared to $14.4 million in the fourth quarter of 2013. Lower expenses on a
linked quarter basis were the result of a $597 thousand decrease in salaries
and employee benefits, which was primarily due to incentive compensation
payments in the prior quarter, a $479 thousand decrease in foreclosed asset
expense, and a $513 thousand reduction in merger and conversion costs.

VantageSouth Bank is a state-chartered bank operating forty-five banking
offices in central and eastern North Carolina. The common stock of Crescent
Financial Bancshares, Inc. can be found on the NASDAQ Global Market where it
trades under the symbol CRFN. Investors can access additional corporate
information, product descriptions and online services through VantageSouth
Bank's website at www.VantageSouth.com.

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 ability
of the Company's management to successfully integrate the Company's business
and execute its business plan across several geographic areas, 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.

Disclaimer

This press release is not a solicitation of a proxy, an offer to purchase, nor
a solicitation of an offer to sell shares of the Company, and it is not a
substitute for any proxy statement or other filings that may be made with the
SEC. If such documents are filed with the SEC, investors will be urged to
thoroughly review and consider them because they will contain important
information, including risk factors. Any such documents, once filed, would be
available free of charge at the SEC's website (www.sec.gov) and from the
Company.

QUARTERLY RESULTS OF OPERATIONS (unaudited)
(Dollars in thousands except per share data)
                                                                   
                                                                   
                     Successor                                         Predecessor
                     Company                                            Company
                      Three      Three     Three     Three     February  January 1
                     Months     Months    Months    Months    1 to     to
                      Ended     Ended    Ended    Ended
                     March 31,  December  September June 30,  March 31, January 31,
                      2013       31, 2012  30, 2012  2012      2012      2012
Interest income                                                     
Loans                 $10,697  $10,898 $10,810 $10,707 $7,302  $3,807
Investment securities 815        855       1,036     1,070     756       395
Federal funds sold
and interest-earning  16         20        16        33        16        4
deposits
Total interest income 11,528     11,773    11,862    11,810    8,074     4,206
Interest expense                                                    
Deposits              1,302      1,309     1,320     1,462     995       530
Short-term borrowings 12         10        3         4         2         —
Long-term debt        270        279       274       311       201       103
Total interest        1,584      1,598     1,597     1,777     1,198     633
expense
Net interest income   9,944      10,175    10,265    10,033    6,876     3,573
Provision for loan    1,940      1,167     1,077     2,046     869       195
losses
Net interest income
after provision for   8,004      9,008     9,188     7,987     6,007     3,378
loan losses
Non-interest income                                                 
Service charges and
fees on deposit       515        508       523       557       349       194
accounts
Mortgage banking      391        771       1,127     770       496       225
Government-guaranteed 1,119      1,718     776       572       (6)       98
lending
Bank-owned life       195        208       215       203       134       70
insurance income
Gain (loss) on sale
of available for sale 1,092      603       483       (27)      192       —
securities
Other                 150        325       208       315       307       70
Total non-interest    3,462      4,133     3,332     2,390     1,472     657
income
Non-interest expense                                                
Salaries and employee 5,991      6,588     5,648     5,513     3,500     1,737
benefits
Occupancy and         1,547      1,321     1,385     1,353     809       396
equipment
Data processing       644        698       644       594       445       212
FDIC insurance        227        216       205       229       277       141
premiums
Professional services 497        684       800       584       541       144
Foreclosed asset      183        662       251       295       95        11
expenses
Other loan-related    461        352       419       335       417       162
expense
Merger and conversion 1,601      2,114     547       6         497       78
costs
Other                 1,516      1,719     1,241     1,389     837       355
Total non-interest    12,667     14,354    11,140    10,298    7,418     3,236
expense
Income (loss) before  (1,201)    (1,213)   1,380     79        61        799
income taxes
Income tax expense    (395)      (3,326)   95        (259)     4         270
(benefit)
Net income (loss)     (806)      2,113     1,285     338       57        529
Dividends and
accretion on          369        368       367       367       244       122
preferred stock
Net income available
(loss attributable)   $(1,175) $1,745  $918    $(29)   $(187)  $407
to common
stockholders
                                                                   
NET INCOME (LOSS) PER                                               
COMMON SHARE
Basic                 $(0.03)  $0.05   $0.03   $ —     $(0.01) $0.01
Diluted               $(0.03)  $0.05   $0.03   $ —     $(0.01) $0.01

                                                                      
                Successor                                             Predecessor
                Company                                                Company
                 Three      Three      Three      Three      February 1
                Months     Months     Months     Months     to         January 1 to
                 Ended     Ended     Ended     Ended
                March 31,  December   September  June 30,   March 31,  January 31,
                 2013       31, 2012   30, 2012   2012       2012       2012
                                                                  
COMMON SHARE                                                       
DATA
                                                                  
Book value per   $4.13    $4.18    $4.11    $4.07    $4.10    N/A
common share
Tangible book
value per common $3.33    $3.37    $3.31    $3.26    $3.29    N/A
share
Ending shares    35,779,127 35,754,247 35,747,576 35,749,689 35,749,603 35,549,785
outstanding
Weighted average
common shares    35,758,033 35,728,359 35,725,915 35,723,442 35,718,091 35,511,770
outstanding -
basic
Weighted average
common shares    35,758,033 35,806,191 35,749,168 35,723,442 35,718,091 35,534,050
outstanding -
diluted
                                                                  
PERFORMANCE
RATIOS                                                             
(annualized)
                                                                  
Return on        (0.30)%    0.79%      0.49%      0.13%      0.03%      0.58%
average assets
Return on        (1.88)%    4.84%      2.98%      0.80%      0.20%      3.67%
average equity
Tax equivalent
yield on earning 4.91%      5.05%      5.18%      5.07%      5.15%      5.35%
assets
Cost of
interest-bearing 0.76%      0.80%      0.83%      0.91%      0.92%      0.95%
liabilities
Tax equivalent
net interest     4.24%      4.37%      4.49%      4.30%      4.39%      4.55%
margin
Efficiency ratio 94.49%     100.32%    81.93%     82.89%     88.86%     76.50%
Net loan         0.21%      0.17%      0.44%      0.35%      0.45%      —%
charge-offs


QUARTERLY BALANCE SHEETS (unaudited)
(Dollars in thousands)
                                                                
                Period End Balances
                March 31,    December 31, September    June 30,     March 31,
                                           30,
                2013         2012         2012         2012         2012
ASSETS                                                           
Cash and due     $11,020    $15,735    $13,187    $18,776    $16,373
from banks
Interest-earning
deposits with    4,092        7,978        3,821        6,817        5,020
banks
Federal funds    29,125       26,750       20,550       44,535       59,145
sold
Investment
securities       154,634      136,311      153,742      173,757      168,526
available for
sale
Investment
securities held  194          180          166          130          125
to maturity
Loans held for   8,671        16,439       8,239        7,357        4,874
sale
Loans            794,623      763,416      739,028      696,872      704,261
Allowance for    (5,527)      (3,998)      (3,146)      (3,043)      (1,607)
loan losses
Net loans        789,096      759,418      735,882      693,829      702,654
Federal Home     2,382        2,307        2,172        3,894        9,793
Loan Bank stock
Premises and     17,885       17,351       17,068       17,130       17,054
equipment, net
Bank-owned life  20,138       19,976       19,800       19,620       19,442
insurance
Foreclosed       4,752        5,837        6,697        7,772        8,340
assets
Deferred tax     37,525       36,659       33,162       33,590       33,704
asset, net
Goodwill         26,254       26,254       26,254       26,254       26,254
Other intangible 2,266        2,376        2,487        2,597        2,708
assets, net
Accrued interest
receivable and   8,008        11,654       10,842       11,771       9,096
other assets
Total assets     $1,116,042 $1,085,225 $1,054,069 $1,067,829 $1,083,108
                                                                
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES                                                      
Deposits:                                                        
Non-interest     $73,756    $71,613    $111,725   $102,596   $99,236
demand
Interest-bearing 188,463      188,843      139,768      146,027      160,007
demand
Money market and 270,994      260,966      241,324      245,913      227,075
savings
Time             370,710      351,800      360,172      372,074      390,181
Total deposits   903,923      873,222      852,989      866,610      876,499
Short-term       6,000        7,500        —            —            5,000
borrowings
Long-term debt   28,902       19,864       24,326       24,288       24,252
Accrued interest
payable and      4,818        10,698       5,243        7,050        6,158
other
liabilities
Total            943,643      911,284      882,558      897,948      911,909
liabilities
                                                                
STOCKHOLDERS'                                                    
EQUITY
Preferred stock, 24,715       24,657       24,601       24,544       24,489
no par value
Common stock,    36           36           36           36           36
$0.001 par value
Common stock     1,325        1,325        1,325        1,325        1,325
warrant
Additional       147,738      147,510      146,655      146,648      146,627
paid-in capital
Accumulated      (2,578)      (1,405)      (3,200)      (4,115)      (2,420)
deficit
Accumulated
other            1,163        1,818        2,094        1,443        1,142
comprehensive
income
Total
stockholders'    172,399      173,941      171,511      169,881      171,199
equity
Total
liabilities and  $1,116,042 $1,085,225 $1,054,069 $1,067,829 $1,083,108
stockholders'
equity

                     
                     Period End Balances
                     March 31, December 31, September 30, June 30,  March 31,
                     2013      2012         2012          2012      2012
CAPITAL RATIOS                                                   
Tangible equity to    13.23%    13.75%       13.92%        13.57%    13.49%
tangible assets
Tangible common
equity to tangible    10.96%    11.42%       11.52%        11.21%    11.17%
assets
VantageSouth Bank:                                               
Tier 1 leverage ratio 11.08%    11.45%       9.89%         9.41%     8.93%
Tier 1 risk-based     13.13%    13.66%       12.82%        12.02%    11.17%
capital ratio
Total risk-based      14.58%    14.96%       13.28%        12.49%    11.62%
capital ratio
Crescent State Bank:                                             
Tier 1 leverage ratio N/A       N/A          12.21%        12.11%    12.18%
Tier 1 risk-based     N/A       N/A          13.81%        14.22%    14.96%
capital ratio
Total risk-based      N/A       N/A          15.20%        15.61%    16.17%
capital ratio
                                                                
ASSET QUALITY DATA                                               
                                                                
Nonperforming loans   $11,792 $12,770    $14,023     $17,983 $19,118
Foreclosed assets     4,752     5,837        6,697         7,772     8,340
Total nonperforming   $16,544 $18,607    $20,720     $25,755 $27,458
assets
                                                                
Allowance for loan    0.70%     0.52%        0.43%         0.44%     0.23%
losses to loans
Nonperforming loans   1.48%     1.67%        1.90%         2.58%     2.71%
to total loans
Nonperforming assets  1.48%     1.71%        1.97%         2.41%     2.54%
to total assets
Restructured loans
not included in       $558    $104       $ —           $ —       $917
categories above


QUARTERLY AVERAGE BALANCES, TAXABLE EQUIVALENT INTEREST AND YIELDS/COSTS
(Dollars in thousands)
                                                                                                         
                    Successor Company                  Successor Company                  Predecessor Company
                    Three months ended                Period from February 1 to         Period from January 1 to
                    March 31, 2013                     March 31, 2012                     January 31, 2012
                    Average      Interest* Yield/Cost* Average      Interest* Yield/Cost* Average      Interest* Yield/Cost*
                     Balance                            Balance                            Balance
                                                                                                         
Assets                                                                                                    
Loans                $783,023   $10,697 5.54%       $736,434   $7,302  6.05%       $730,387   $3,807  6.15%
Investment           143,475      857       2.42        178,013      803       2.75        180,220      419       2.74
securities
Federal funds and    29,625       16        0.22        41,618       16        0.23        23,719       4         0.20
other
Total
interest-earning     956,123      11,570    4.91%       956,065      8,121     5.18%       934,326      4,230     5.35%
assets
Non-interest-earning 134,333                          111,784                          134,240               
assets
Total assets         $1,090,456                     $1,067,849                     $1,068,566          
                                                                                                         
Liabilities and                                                                                           
Equity
Interest-bearing     $183,667   139       0.31%       $162,954   $156    0.58%       $172,363   $108    0.74%
demand
Money market and     264,917      343       0.53        207,934      239       0.70        184,716      96        0.61
savings
Time                 363,248      820       0.92        392,458      600       0.93        404,999      326       0.95
Total
interest-bearing     811,832      1,302     0.65        763,346      995       0.80        762,078      530       0.82
deposits
Short-term           7,200        12        0.68        5,083        2         0.24        968          —         —
borrowings
Long-term debt       23,211       270       4.72        24,186       201       5.07        24,217       103       5.02
Total
interest-bearing     842,243      1,584     0.76%       792,615      1,198     0.92%       787,263      633       0.95%
liabilities
Noninterest-bearing  67,970                           99,925                           107,156               
deposits
Other liabilities    6,427                            5,089                            4,184                 
Total liabilities    916,640                          897,629                          898,603               
Stockholders' equity 173,816                          170,220                          169,963               
Total liabilities
and stockholders'    $1,090,456                     $1,067,849                     $1,068,566          
equity
                                                                                                         
Net interest income,             $9,986                         $6,923                         $3,597  
taxable equivalent
Interest rate spread                      4.15%                            4.26%                            4.40%
Tax equivalent net                        4.24%                            4.42%                            4.55%
interest margin
                                                                                                         
Percentage of
average
interest-earning                          113.52%                          120.62%                          118.68%
assets to average
interest-bearing
liabilities
* Taxable equivalent                                                                                      
basis


LINKED QUARTER AVERAGE BALANCES, TAXABLE EQUIVALENT INTEREST AND YIELDS/COSTS
(Dollars in thousands)
                                                                         
                    Three months ended                Three months ended
                    March 31, 2013                     December 31, 2012
                    Average      Interest* Yield/Cost* Average      Interest* Yield/Cost*
                     Balance                            Balance
                                                                         
Assets                                                                    
Loans                $783,023   $10,697 5.54%       $749,053   $10,898 5.79%
Investment           143,475      857       2.42        147,188      923       2.49
securities
Federal funds and    29,625       16        0.22        36,791       20        0.22
other
Total
interest-earning     956,123      11,570    4.91%       933,032      11,841    5.05%
assets
Non-interest-earning 134,333                          132,629               
assets
Total assets         $1,090,456                     $1,065,661          
                                                                         
Liabilities and                                                           
Equity
Interest-bearing     $183,667   139       0.31%       $159,071   120       0.30%
demand
Money market and     264,917      343       0.53        250,625      343       0.54
savings
Time                 363,248      820       0.92        361,557      846       0.93
Total
interest-bearing     811,832      1,302     0.65        771,253      1,309     0.68
deposits
Short-term           7,200        12        0.68        4,511        10        0.88
borrowings
Long-term debt       23,211       270       4.72        22,517       279       4.93
Total
interest-bearing     842,243      1,584     0.76%       798,281      1,598     0.80%
liabilities
Noninterest-bearing  67,970                           86,266                
deposits
Other liabilities    6,427                            7,459                 
Total liabilities    916,640                          892,006               
Stockholders' equity 173,816                          173,655               
Total liabilities
and stockholders'    $1,090,456                     $1,065,661          
equity
                                                                         
Net interest income,             $9,986                         $10,243 
taxable equivalent
Interest rate spread                      4.15%                            4.25%
Tax equivalent net                        4.24%                            4.37%
interest margin
                                                                         
Percentage of
average
interest-earning                          113.52%                          116.88%
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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