Crescent Financial Corp. (CRFN, Financial) filed Quarterly Report for the period ended 2012-06-30.
Crescent Financial Bancshares, Inc. has a market cap of $131.7 million; its shares were traded at around $4.76 with and P/S ratio of 2.6.
Gross loans held for investment, net of deferred loan fees, totaled $508.3 million at June 30, 2012 reflecting a $44.6 million, or 8%, decrease compared to $552.9 million at December 31, 2011. This decline resulted from a combination of principal payments in the normal course of business, problem asset resolutions, which include loan sales, and a change in the Company’s business model which has shifted the loan portfolio mix to favor business and consumer lending over construction and speculative land loans. Most of the loan categories experienced a balance reduction in the first six months of 2012, except for commercial loans which reflects the Company’s lending strategy and new focus. The changes in the portfolio, by category, were as follows: construction and land development loans, $25.0 million decline, or 30%; commercial real estate loans, $21.7 million decline, or 7%; residential 1-4 family mortgage loans, $3.1 million decline, or 5%; commercial and industrial loans, $7.4 million increase, or 19%; home equity loans and lines of credit, $2.8 million decline, or 6%; and consumer loans, $0.6 million increase, or 20%.
Total non-interest earning assets increased from $109.3 million at December 31, 2011 to $113.8 million at June 30, 2012. Cash and due from banks, premises and equipment, bank owned life insurance, and other assets increased by $4.9 million, $0.3 million, $0.4 million, and $1.2 million, respectively. Foreclosed assets declined by $4.7 million as the Company has continued to focus on reducing problem assets through a variety of resolution strategies.
Net interest income in the second quarter of 2012 totaled $7.4 million compared to net interest income of $6.3 million in the predecessor second quarter of 2011. Net interest margin increased from 2.95% in the second quarter of 2011 to 4.24% in the second quarter of 2012. This significant margin improvement was primarily due to a decline in funding costs as the average rate on total interest-bearing liabilities fell from 2.24% in the second quarter of 2011 to 0.97% in the second quarter of 2012. Tax equivalent yield on earning assets increased from 4.97% in the second quarter of 2011 to 5.05% in the second quarter of 2012.
On a year-to-date basis, net interest income in the first six months of 2012 totaled $15.3 million compared to net interest income of $12.4 million in the predecessor first six months of 2011. Net interest margin increased from 2.88% in the first six months of 2011 to 4.36% in the first six months of 2012. This significant margin improvement was primarily due to a decline in funding costs as the average rate on total interest-bearing liabilities fell from 2.29% in the first six months of 2011 to 0.96% in the first six months of 2012. Tax equivalent yield on earning assets increased from 4.95% in the first six months of 2011 to 5.15% in the first six months of 2012.
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Crescent Financial Bancshares, Inc. has a market cap of $131.7 million; its shares were traded at around $4.76 with and P/S ratio of 2.6.
Highlight of Business Operations:
Total assets at June 30, 2012 were $819.5 million, which was a decrease of $15.0 million, or 2%, from total assets of $834.5 million at December 31, 2011. Earning assets totaled $707.8 million, or 86% of total assets, at June 30, 2012 compared to $725.4 million, or 87% of total assets, at December 31, 2011. Earning assets at June 30, 2012 consisted of $508.3 million in gross loans held for investment, $154.4 million in investment securities and Federal Home Loan Bank (“FHLB”) stock, $41.9 in federal funds sold and interest-earning deposits with correspondent banks and $3.2 million in mortgage loans held for sale. Earning assets at December 31, 2011 consisted of $552.9 million in gross loans held for investment, $152.2 million in investment securities and FHLB stock, $16.5 million in federal funds sold and interest-earning deposits and $3.8 million in mortgage loans held for sale. Total deposits and stockholders’ equity at June 30, 2012 were $659.5 million and $142.6 million, respectively, compared to $674.4 million and $143.1 million, respectively, at December 31, 2011.Gross loans held for investment, net of deferred loan fees, totaled $508.3 million at June 30, 2012 reflecting a $44.6 million, or 8%, decrease compared to $552.9 million at December 31, 2011. This decline resulted from a combination of principal payments in the normal course of business, problem asset resolutions, which include loan sales, and a change in the Company’s business model which has shifted the loan portfolio mix to favor business and consumer lending over construction and speculative land loans. Most of the loan categories experienced a balance reduction in the first six months of 2012, except for commercial loans which reflects the Company’s lending strategy and new focus. The changes in the portfolio, by category, were as follows: construction and land development loans, $25.0 million decline, or 30%; commercial real estate loans, $21.7 million decline, or 7%; residential 1-4 family mortgage loans, $3.1 million decline, or 5%; commercial and industrial loans, $7.4 million increase, or 19%; home equity loans and lines of credit, $2.8 million decline, or 6%; and consumer loans, $0.6 million increase, or 20%.
Total non-interest earning assets increased from $109.3 million at December 31, 2011 to $113.8 million at June 30, 2012. Cash and due from banks, premises and equipment, bank owned life insurance, and other assets increased by $4.9 million, $0.3 million, $0.4 million, and $1.2 million, respectively. Foreclosed assets declined by $4.7 million as the Company has continued to focus on reducing problem assets through a variety of resolution strategies.
Net interest income in the second quarter of 2012 totaled $7.4 million compared to net interest income of $6.3 million in the predecessor second quarter of 2011. Net interest margin increased from 2.95% in the second quarter of 2011 to 4.24% in the second quarter of 2012. This significant margin improvement was primarily due to a decline in funding costs as the average rate on total interest-bearing liabilities fell from 2.24% in the second quarter of 2011 to 0.97% in the second quarter of 2012. Tax equivalent yield on earning assets increased from 4.97% in the second quarter of 2011 to 5.05% in the second quarter of 2012.
On a year-to-date basis, net interest income in the first six months of 2012 totaled $15.3 million compared to net interest income of $12.4 million in the predecessor first six months of 2011. Net interest margin increased from 2.88% in the first six months of 2011 to 4.36% in the first six months of 2012. This significant margin improvement was primarily due to a decline in funding costs as the average rate on total interest-bearing liabilities fell from 2.29% in the first six months of 2011 to 0.96% in the first six months of 2012. Tax equivalent yield on earning assets increased from 4.95% in the first six months of 2011 to 5.15% in the first six months of 2012.
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