Crescent Financial Corporation Announces Results For Q2 2010
CARY, N.C., July 28, 2010 (GLOBE NEWSWIRE) -- Crescent Financial Corporation (Nasdaq:CRFN), (the "Company") parent company of Crescent State Bank headquartered in Cary, North Carolina, announced an unaudited net loss for the three months ended June 30, 2010, before adjusting for the effective dividend on preferred stock, of ($4,010,000) compared to net income of $574,000 for the prior year period. After adjusting for $421,000 and $422,000 in dividends and accretion on preferred stock for the two respective periods, net loss attributable to common shareholders for the current period was ($4,431,000) or ($0.46) per diluted share compared with net income attributable to common shareholders of $152,000 or $0.02 per diluted share for the quarter ended June 30, 2009. Despite improvements in net interest income, expansion of net interest margin and higher non-interest revenue, earnings in the current period were impacted by higher loan loss provisions and expenses related to the loan collection and foreclosure process.
Net Interest Income
Net interest income for the three-month period ended June 30, 2010 increased by $269,000 or 4% to $7.5 million compared with $7.3 million for the period ended June 30, 2009. The yield on average earning assets increased by 8 basis points from 5.74% to 5.82%. In the stable interest rate environment we have experienced since the beginning of 2009, the cost of interest bearing deposits has declined from 3.17% in the prior year period to 2.57% for the quarter ended June 30, 2010. The cost of borrowings has increased from 2.91% to 3.49% as we have taken advantage of the low interest rate environment to extend our borrowings and lock-in favorable long-term pricing to improve our interest rate risk profile. The tax equivalent net interest margin improved to 3.33% for the quarter ended June 30, 2010 compared to 3.00% for the prior year quarter.
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