Press Release: Crescent Financial Corporation
August 21, 2002
CARY, NC -- Crescent Financial Corporation (OTC Bulletin Board: CRFN), the parent holding company for Crescent
State Bank, announced yesterday that it had successfully completed the sale of 690,000 shares of its common stock
at a price of $9.25 per share. The number of shares sold includes 145,000 shares sold to existing shareholders
in a rights offering and 545,000 shares sold in a best efforts public offering managed by McKinnon & Company,
Inc. Net proceeds from the offering amounted to approximately $6 million.
Michael G. Carlton, President, stated: "We are extremely pleased with the results of this offering given the
volatile environment of the stock market. The rights offering to our shareholders was oversubscribed and the public
offering, which initially was to consist of 455,000 shares, also was oversubscribed. We exercised the right to
sell an additional 90,000 shares, which increased the total number of shares sold in the public offering to 545,000.
We will immediately put this capital to work to support our banking activities and carry out our strategic plan."
In accordance with the strategic plan, Crescent State Bank has purchased land in Holly Springs, North Carolina
and anticipates filing an application to open a full-service branch facility. Holly Springs is a growing community
with a population of over 9,000 located in southern Wake County. With the addition of the branch in Holly Springs,
Crescent State Bank will operate 5 banking locations serving four communities in Wake and Johnston counties.
Concurrent with the stock sale, Crescent Financial Corporation expects its shares to begin trading on the Nasdaq
Small Cap Market on August 21, 2002. Crescent was able to retain its current trading symbol of "CRFN".
Mr. Carlton commented: "With the increased number of shares outstanding and heightened activity in our stock,
we are excited to be accepted for trading on the Nasdaq Small Cap Market and hopeful that this will lead to a more
efficient and orderly trading in our common stock."
Crescent Financial Corporation, the parent company for Crescent State Bank, had, as of June 30, 2002, total assets
of $152 million, total deposits of $135 million and four banking offices in Cary, Apex and Clayton, North Carolina.
With the net proceeds from the sale of the 690,000 shares, total stockholders' equity will be increased to $17
million.
SOURCE: Crescent Financial Corporation