Crescent Financial Corporation Announces 49% Increase in Comparative First Quarter Earnings

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Summary

The incremental cost of wholesale funds coupled with the competitive nature of loan pricing has caused downward pressure on net interest margin.The Company has added head count in several operational areas within our organization in order to create the infrastructure needed to further expand the franchise.Patty Briguglio MMI Associates, Inc. 919-233-6600 patty@mmimarketing.com ### Cary, NC, April 26, 2007 --( PR.com )-- Crescent Financial Corporation (NasdaqGM: CRFN), parent company of Crescent State Bank of Cary and Port City Capital Bank of Wilmington, N.C., today announced unaudited net income for the quarter ended March 31, 2007 of $1,466,000, reflecting a 49% increase over net income of $982,000 for the prior year quarter.The incremental cost of wholesale funds coupled with the competitive nature of loan pricing has caused downward pressure on net interest margin.Non-interest income grew by $33,000 or 6% from $596,000 for the prior year quarter to $629,000 for the three months ended March 31, 2007.The Company has added head count in several operational areas within our organization in order to create the infrastructure needed to further expand the franchise.

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