The corporate parent of Crescent State Bank managed to eke out a profit in the first quarter despite a tough environment for community banks.
Cary-based Crescent Financial Corp. posted a profit of $123,000, or 1 cent per share, versus a profit of $443,000 a year ago, the bank announced this morning.
The lower earnings resulted primarily from a higher provision for loan losses plus an increase in non-interest expenses due to the opening of two offices in Raleigh.
"Although the first quarter results reflect the continued stress of this economic cycle, we are pleased to report a profitable quarter," CEO Mike Carlton said in a prepared statement. "Our core banking operation continues to remain solid."
The bank's provision for loan losses totaled $1.8 million, versus $1.7 million a year ago. However, the provision was much lower than the $6.7 million the bank set aside in the fourth quarter.
Non-interest income rose to $1 million, versus $788,000 a year ago.
Crescent has 15 branches, including 10 in the Triangle.
Crescent shares closed Tuesday at $4.28, up 28 cents. Shares were fetching $3 at the outset of the year.
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