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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").
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."