The corporate parent of VantageSouth Bank posted a first-quarter loss due to the costs stemming from its recent acquisition of East Carolina Bank.
Raleigh-based Crescent Financial Bancshares reported Wednesday that it posted a loss of $1.2 million, or 3 cents per share, in the first quarter. A year ago the bank posted a profit of $586,000.
Net income was reduced by $369,000 in dividends paid to the U.S. Treasury for funds the bank received from the Troubled Asset Relief Program, or TARP, when the bank was under different ownership.
The bank spent $1.6 million in the quarter on acquisition costs, including the cost of converting East Carolina's data processing system. The acquisition of East Carolina and its 25 branches was completed April 1, so the performance of those branches wasn't included in the first-quarter results.
Terry Earley, VantageSouth's chief financial officer, called it "an okay quarter. We would like to have done better and I think we will do better during the course of the year."
Moving forward, Earley added, VantageSouth will benefit from "the earnings power" of the East Carolina branches.
Loans in the first quarter grew at an annualized 17 percent rate compared to the fourth quarter of last year.
Earley credited the team of loan officers the bank has assembled and
"strength in some key core markets" -- the Triangle, Fayetteville and Wilmington.
VantageSouth Bank has 45 branches and eastern North Carolina, including 15 former Crescent State Bank branches. The bank changed its name from Crescent State to VantageSouth in December after the two banks merged.