Crescent State posts profit

Crescent State Bank reported a first-quarter profit under its new ownership, reversing its loss of a year ago. The Raleigh-based bank also announced it would resume paying dividends to the U.S. Treasury for the funds it received from the Troubled Asset Relief Program, or TARP.

Crescent's corporate parent, Raleigh-based Crescent Financial Bancshares, reported net income of $324,000, or 1 cent per share. That compared to a loss of $7.5 million a year ago.

Crescent also reported Monday that it has received regulatory approval to resume paying dividends on its TARP debt, which it deferred as of Feb. 15, 2011.  The bank ,which received $24.9 million in TARP funds, will resume paying dividends as of May 15, including $1.6 million in deferred dividends.

"Crescent improved its earnings, asset quality, net interest margin and capital ratios," CEO Scott Custer said in a prepared statement. He described Crescent as "one of the most strongly capitalized banks in the Southeast."

Custer also is CEO of Piedmont Community Bank Holdings, the Raleigh company that took control of Crescent Nov. 18 in conjunction with an infusion of $75 million in cash. That investment, plus a subsequent tender offer to Crescent shareholders, gave Piedmont an 88 percent ownership stake in the bank.

In conjunction with the deal, Crescent has adopted "push-down accounting" that valued assets and liabilities at the time of the acquisition.

Non-performing loans as a percentage of total loans totaled 2.99 percent as of March 31, down from 7.15 percent a year ago. Net interest income totaled $7.9 million, up from $6 million a year ago. Noninterest income totaled $1.6 million, up from $1 million, thanks to growth in the company's mortgage lending business.

Crescent has 15 North Carolina branches, 11 of which are in the Triangle.