Crescent Financial Corporation Reports Earnings for Q1 2010 MarketWatch (press release)
, Parent company of Crescent State Bank in Cary, North Carolina today announced unaudited net income for the quarter ended March 31, 2010, before adjusting for the effective dividend on preferred stock, of $542,000 compared with net income for the prior year period of $611,000. After adjusting for $419,000 and $168,000 in dividends and accretion on preferred stock for each respective period, net income available for common shareholders for the current period was $123,000 or $0.01 per diluted share compared with $443,000 or $0.05 per diluted share for the quarter ended March 31, 2009. The decline in earnings was due primarily to a higher provision for loan losses and an increase in non-interest expenses. These increases were partially offset by increases in net interest income and non-interest revenue.Net Interest Income
Net interest income for the current three-month period increased by $230,000 or 3% to $7.5 million compared with $7.2 million for the period ended March 31, 2009. The yield on average earning assets declined by 9 basis points from 5.87% to 5.78%. In the stable interest rate environment we have experienced since the beginning of 2009, the cost of interest bearing deposits has declined as we have enjoyed a continuous repricing of our time deposit portfolio. The cost of interest-bearing deposits declined from 3.30% in the prior year period to 2.71% for the three-month period ending March 31, 2010. The cost of borrowings has increased from 2.83% to 3.05% as we have taken advantage of the low interest rate environment to extend our borrowings and lock-in favorable long-term pricing. The tax equivalent net interest margin improved to 3.27% for the current quarter compared to 3.05% for the prior year quarter.
