VANTAGESOUTH BANCSHARES, INC. - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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8-K - FORM 8-K - VANTAGESOUTH BANCSHARES, INC.	f8k_030612.htm

EXHIBIT 99.1

Crescent Financial Bancshares, Inc. Announces Financial Results for Fourth Quarter and Full Year 2011

CARY, N.C., March 6, 2012 (GLOBE NEWSWIRE) -- Crescent Financial Bancshares, Inc. (Nasdaq:CRFN), the parent company of Crescent State Bank, today reported financial results for the fourth quarter and full year of 2011. Highlights include the following:

●	Piedmont Community Bank Holdings, Inc. ("Piedmont") completed its investment of $75.0 million in Crescent Financial Bancshares, Inc. (the "Company") through the purchase of 18,750,000 shares of the Company's common stock on November 18, 2011 (the "Piedmont Investment");

●

Piedmont purchased approximately 6.1 million additional shares of the Company's common stock at $4.75 per share through a tender offer to the Company's legacy shareholders which closed on December 21, 2011 ("Tender Offer"), increasing its ownership of the Company to approximately 88% of the common shares outstanding;

●	As a result of the Piedmont Investment, the Company's Tier 1 leverage ratio, Tier 1 risk-based capital ratio and total risk-based capital ratio increased to 10.68%, 14.26% and 15.27%, respectively, as of December 31, 2011;

●	The Company's asset quality improved as total nonperforming assets decreased from $56.8 million, or 6.20% of total assets, as of September 30, 2011 to $32.3 million, or 3.87% of total assets, as of December 31, 2011;

●	The Company's balance sheet was repositioned to reduce non-core funding;

●	The Company's net interest margin improved to 3.24% in the successor period of November 19 to December 31, 2011 from 3.03% in the predecessor fourth quarter of 2010 and from 3.09% in the predecessor period of October 1 to November 18, 2011; and

●

Net loss attributable to common shareholders for the successor period of November 19 to December 31, 2011 totaled $330 thousand, or ($0.01) per share, and net loss attributable to common shareholders for the predecessor period of October 1 to November 18, 2011 totaled $260 thousand, or ($0.00) per share.

"With the investment from Piedmont, Crescent State Bank is one of the most strongly capitalized banks in the Southeast and has the financial resources to provide services to businesses, business owners, and professionals throughout its markets," stated Scott Custer, CEO of the Company and Piedmont. Mr. Custer continued, "With our investment in Crescent and the other banks Piedmont has acquired, we are building a sustainable model for community banking that will provide first-class service to our customers and improve the Company's profitability to levels expected of a stable, high performing community bank. In the short period of time since Piedmont's investment, Crescent has already experienced improved capital ratios, asset quality, liquidity, and net interest margin."

- 1 -

Piedmont Investment

On November 18, 2011, the Company completed the issuance and sale of 18,750,000 shares of its common stock to Piedmont for $75.0 million in cash. On December 21, 2011, Piedmont purchased approximately 6.1 million additional shares of the Company's common stock at $4.75 per share through a tender offer to the Company's legacy shareholders. As a result of the Piedmont Investment and the Tender Offer, Piedmont currently owns approximately 88% of the Company's common stock.

Financial results for the fourth quarter of 2011 were significantly impacted by the controlling investment in the Company by Piedmont. Because of the level of Piedmont's ownership and control, the Company has applied push-down accounting to reflect the nature of the Piedmont transactions. Accordingly, the Company's assets and liabilities were adjusted to estimated fair value at the acquisition date, and the allowance for loan losses was eliminated. The Company is currently within the one-year measurement period with respect to the acquisition date, and thus, future material adjustments to these purchase accounting fair value adjustments are possible. Balances and activity in the Company's consolidated financial statements prior to the Piedmont Investment have been labeled with "Predecessor Company" while balances and activity subsequent to the Piedmont Investment have been labeled with "Successor Company."

Net Interest Income

Net interest income for the period of November 19 to December 31, 2011 ("Successor Period") totaled $3.4 million while net interest income for the predecessor period of October 1, 2011 to November 18, 2011 and the predecessor quarter ended December 31, 2010 totaled $3.3 million and $6.6 million, respectively. Net interest margin increased from 3.03% in the quarter ended December 31, 2010 and from 3.09% in the predecessor period of October 1, 2011 to November 18, 2011 to 3.24% in the Successor Period. This margin improvement was primarily due to a decline in funding costs as the average rate on total interest-bearing liabilities fell from 2.46% in the quarter ended December 31, 2010 and 2.04% in the predecessor period of October 1 to November 18, 2011 to 1.41% in the Successor Period. Although the Company's net interest margin improved in the Successor Period, its elevated balance of low-yielding, interest-bearing cash weighed on net interest margin as the Company's investment portfolio restructuring was in process during this period.

Net amortization of purchase accounting fair value adjustments on interest-bearing liabilities increased net interest income by $452 thousand in the Successor Period and lowered funding costs by 0.50%. The remaining 0.13% decline in funding costs from the predecessor period of October 1 to November 18, 2011 was due to re-pricing of deposits. Average earning assets totaled $865.7 million in the Successor Period compared with $908.4 million in the quarter ended December 31, 2010 and $857.3 million in the predecessor period of October 1, 2011 to November 18, 2011.

On a year-to-date basis, net interest income for the Successor Period totaled $3.4 million while net interest income for the predecessor period of January 1 to November 18, 2011 and the predecessor year ended December 31, 2010 totaled $22.4 million and $28.5 million, respectively. Net interest margin increased from 3.18% in 2010 and 2.87% for the predecessor period of January 1 to November 18, 2011 to 3.24% in the Successor Period. Average earning assets decreased from $931.2 million in 2010 and from $921.6 million in the predecessor period of January 1 to November 18, 2011 to $865.7 million in the Successor Period. Average earning asset levels in the Successor Period were affected by the Piedmont Investment and the Company's balance sheet repositioning which reduced non-core funding.

Provision for Loan Losses and Asset Quality

Provision for loan losses for the Successor Period totaled $227 thousand while provision for loan losses for the predecessor period of October 1, 2011 to November 18, 2011 and the predecessor quarter ended December 31, 2010 totaled $2.2 million and $5.2 million, respectively. In addition, provision for loan losses for the predecessor period of January 1 to November 18, 2011 and the predecessor year ended December 31, 2010 totaled $16.7 million and $20.3 million, respectively. The loan loss provision in the Successor Period reflects estimated losses inherent in loans originated subsequent to the Piedmont Investment. The purchased loan portfolio was adjusted to fair value at acquisition and no additional impairment on purchased loans was evident during the Successor Period.

- 2 -

Nonperforming loans as a percentage of total loans held for investment totaled 4.14% as of December 31, 2011, which was a decline from 7.00% as of September 30, 2011 and 4.52% as of December 31, 2010. Total nonperforming assets, which include nonaccrual loans, loans past due 90 days or more and still accruing, other real estate owned and repossessed loan collateral, as a percentage of total assets as of December 31, 2011 totaled 3.87%, which was a decline from 6.20% as of September 30, 2011 and 4.74% as of December 31, 2010.

As part of an ongoing, focused effort to reduce its problem asset levels, the Company has completed various note sales to investors subsequent to December 31, 2011. The note sales included loans with carrying values totaling $11.8 million as of December 31, 2011, of which $5.3 million were classified as nonperforming.

Noninterest Income

Noninterest income for the Successor Period totaled $484 thousand while noninterest income for the predecessor period of October 1, 2011 to November 18, 2011 and the predecessor quarter ended December 31, 2010 totaled $4.5 million and $1.5 million, respectively. Prior to the Piedmont Investment, the Company began the process of restructuring its investment portfolio and recognized a $3.7 million gain on sale of securities in the predecessor period of October 1 to November 18, 2011. The securities gain in this period contrasts with a loss on sale of securities of $55 thousand in the Successor Period and a gain on sale of securities of $25 thousand in the predecessor quarter ended December 31, 2010.

On a year-to-date basis, noninterest income for the Successor Period totaled $484 thousand while noninterest income for the predecessor period of January 1 to November 18, 2011 and the predecessor year ended December 31, 2010 totaled $8.1 million and $4.9 million, respectively. Noninterest income in the predecessor period of January 1 to November 18, 2011 was significantly benefited by $4.2 million in gains on the sale of securities, primarily due to the portfolio restructuring. The Company also recorded impairment of $227 thousand on equity investments, which partially offset higher income in the same period.

- 3 -

Noninterest Expense

Noninterest expense for the Successor Period totaled $4.3 million while noninterest expense for the predecessor period of October 1, 2011 to November 18, 2011 and the predecessor quarter ended December 31, 2010 totaled $5.6 million and $7.0 million, respectively. Expenses in the fourth quarter of 2011, both in the predecessor and successor periods, were impacted by various non-recurring items related to the Piedmont Investment, including restructuring of the Company's management team and business lines. Severance and contract termination payments to former members of the Company's staff and executive management increased salaries and employee benefits expense by $735 thousand in the Successor Period and increased expense in the predecessor period of October 1 to November 18, 2011 by $1.6 million. Non-recurring professional expenses related to the Piedmont Investment totaled $95 thousand in the Successor Period and $298 thousand in the predecessor period of October 1 to November 18, 2011.

On a year-to-date basis, noninterest expense for the Successor Period totaled $4.3 million while predecessor period of January 1 to November 18, 2011 and the predecessor year ended December 31, 2010 totaled $27.3 million and $27.0 million, respectively. Severance and contract termination payments to former members of the Company's staff and executive management increased salaries and employee benefits expense by $735 thousand in the Successor Period and increased expense in the predecessor period of January 1 to November 18, 2011 by $1.6 million. Non-recurring professional expenses related to the Piedmont Investment totaled $95 thousand in the Successor Period and $1.0 million in the predecessor period of January 1 to November 18, 2011. Additionally, data processing costs in the predecessor period of January 1 to November 18, 2011 were impacted by $108 thousand of system conversion costs.

Income Taxes

The Company did not record any tax benefit associated with the pre-tax loss for the predecessor period of January 1 to November 18, 2011. The valuation allowance on deferred tax assets was increased by $5.4 million during the period, which represented a full reserve on the tax benefit generated by current period losses. Because of the improvement in the Company's earnings prospects following the Piedmont Investment, the Company determined that there was sufficient positive evidence to indicate that it would likely realize the full value of its deferred tax assets over time and therefore established no valuation allowance on its deferred tax assets in purchase accounting. Thus, in the Successor Period, the Company recorded a tax benefit of $520 thousand, which was based on the pre-tax loss in that period adjusted for non-taxable investment and earnings on life insurance as well as non-deductible merger costs.

Crescent State Bank is a state chartered bank operating fifteen banking offices in Cary (2), Apex, Clayton, Holly Springs, Southern Pines, Pinehurst, Sanford, Garner, Raleigh (3), Wilmington (2) and Knightdale, North Carolina. Crescent Financial Bancshares, Inc. stock can be found on the NASDAQ Global Market trading under the symbol CRFN. Investors can access additional corporate information, product descriptions and online services through the Bank's website at http://www.crescentstatebank.com.

Forward-looking Statements

Information in this press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that could cause actual results to differ materially, including without limitation, risks associated with the ownership by Piedmont of a majority of the company's voting power, including interests of Piedmont differing from other stockholders or any change in management, strategic direction, business plan, or operations, the Company's new management's ability to successfully integrate into the Company's business and execute its business plan, local economic conditions affecting retail and commercial real estate, disruptions in the credit markets, changes in interest rates, adverse developments in the real estate market affecting the value and marketability of collateral securing loans made by the Bank, the failure of assumptions underlying loan loss and other reserves, competition and the risk of new and changing regulation. Additional factors that could cause actual results to differ materially are discussed in the Company's filings with the Securities and Exchange Commission, including without limitation its Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q and its Current Reports on Form 8-K. The forward-looking statements in this press release speak only as of the date of the press release, and the Company does not assume any obligation to update such forward-looking statements.

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(Amounts in thousands except share and per share data and prior quarters' information may have been reclassified)

INCOME STATEMENTS (unaudited)

	Successor Company			Predecessor Company
	For the Period of			For the Period of
	November 19			October 1
	through			through			For the Three Month Period Ended
	December 31,			November 18,			September 30,			June 30,			March 31,			December 31,
	2011			2011			2011			2011			2011			2010

INTEREST INCOME
Loans	$	4,252		$	4,439		$	9,030		$	9,022		$	9,078		$	10,020
Investment securities available for sale		313			874			1,836			1,825			1,663			1,689
Fed funds sold and other interest-earning deposits		45			7			18			28			29			9
Total Interest Income		4,610			5,320			10,884			10,875			10,770			11,718

INTEREST EXPENSE
Deposits		616			1,315			2,719			3,131			3,349			3,627
Short-term borrowings		19			21			21			21			15			31
Long-term debt		624			718			1,387			1,377			1,371			1,412
Total Interest Expense		1,259			2,054			4,127			4,529			4,735			5,070

Net Interest Income		3,351			3,266			6,757			6,346			6,035			6,648
Provision for loan losses		227			2,207			4,452			3,035			7,024			5,209
Net interest income (loss) after provision for loan losses		3,124			1,059			2,305			3,311			(989	)		1,439

Non-interest income
Mortgage loan origination income		23			38			83			57			75			107
Service charges and fees on deposit accounts		217			242			470			457			447			464
Earnings on life insurance		103			112			215			216			213			223
Gain on sale of available for sale securities		(55	)		3,691			236			189			101			25
Loss on impairment of nonmarketable equity securities		-			-			(48	)		(179	)		-			-
Gain on sale of loans		146			303			392			202			91			490
Other		50			125			96			134			115			154
Total non-interest income		484			4,511			1,444			1,076			1,042			1,463

Non-interest expense
Salaries and employee benefits		2,399			3,163			3,140			3,137			3,347			3,361
Occupancy and equipment		436			529			968			980			1,012			1,039
Data processing		241			241			447			449			420			414
FDIC deposit insurance premium		141			191			292			377			449			500
Net loss (gain) on foreclosed assets		5			64			291			1,187			159			(68	)
Other loan related expense		47			235			378			460			333			492
Other		1,007			1,174			1,237			1,242			1,380			2,238
Total non-interest expense		4,276			5,597			6,753			7,832			7,100			6,992

Income (loss) before income taxes		(668	)		(27	)		(3,004	)		(3,445	)		(7,047	)		(4,090	)
Income taxes		(520	)		-			-			-			-			433

Net income (loss)		(148	)		(27	)		(3,004	)		(3,445	)		(7,047	)		(4,523	)
Effective dividend on preferred stock		182			233			442			437			427			425
Net income (loss) attributable common shareholders	$	(330	)	$	(260	)	$	(3,446	)	$	(3,882	)	$	(7,474	)	$	(4,948	)

NET INCOME (LOSS) PER COMMON SHARE
Basic	$	(0.01	)	$	(0.00	)	$	(0.36	)	$	(0.40	)	$	(0.78	)	$	(0.52	)
Diluted	$	(0.01	)	$	(0.00	)	$	(0.36	)	$	(0.40	)	$	(0.78	)	$	(0.52	)

COMMON SHARE DATA

Book value per common share	$	4.18		$	4.16		$	4.48		$	4.74		$	4.98		$	5.76
Tangible book value per common share	$	3.39		$	4.10		$	4.41		$	4.67		$	4.92		$	5.69
Ending shares outstanding		28,412,059			9,662,059			9,662,059			9,664,059			9,664,059			9,664,059
Weighted average common shares outstanding - basic		28,353,053			9,587,324			9,587,324			9,586,390			9,581,390			9,581,390
Weighted average common shares outstanding - diluted		28,353,053			9,587,324			9,587,324			9,586,390			9,581,390			9,581,390

PERFORMANCE RATIOS (annualized)
Return on average assets		-0.13	%		-0.02	%		-1.32	%		-1.47	%		-2.96	%		-1.85	%
Return on average equity		-0.85	%		-0.31	%		-17.59	%		-19.21	%		-36.52	%		-21.13	%
Tax equivalent yield on earning assets		4.45	%		4.95	%		5.05	%		4.97	%		4.93	%		5.24	%
Cost of interest-bearing liabilities		1.41	%		2.04	%		2.10	%		2.24	%		2.33	%		2.46	%
Tax equivalent net interest margin		3.24	%		3.09	%		3.17	%		2.95	%		2.82	%		3.03	%
Efficiency ratio		111.51	%		71.97	%		82.34	%		105.52	%		100.33	%		86.21	%
Net loan charge-offs		0.00	%		2.74	%		2.64	%		2.62	%		2.57	%		1.45	%

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(Amounts in thousands except share and per share data and prior years' information may have been reclassified)

INCOME STATEMENTS (unaudited)

	Successor Company			Predecessor Company
	For the Period of			For the Period of
	November 19			January 1,
	through			through			For the year ended
	December 31,			November 18,			December 31,
	2011			2011			2010

INTEREST INCOME
Loans	$	4,252		$	31,569		$	43,420
Investment securities available for sale		313			6,198			7,326
Fed funds sold and other interest-earning deposits		45			82			34
Total Interest Income		4,610			37,849			50,780

INTEREST EXPENSE
Deposits		616			10,514			16,185
Short-term borrowings		19			78			418
Long-term debt		624			4,853			5,719
Total Interest Expense		1,259			15,445			22,322

Net Interest Income		3,351			22,404			28,458
Provision for loan losses		227			16,718			20,347
Net interest income after provision for loan losses		3,124			5,686			8,111

Non-interest income
Mortgage loan origination income		23			253			479
Service charges and fees on deposit accounts		217			1,616			1,834
Earnings on life insurance		103			756			884
Gain on sale of available for sale securities		(55	)		4,217			25
Loss on impairment of nonmarketable investment		-			(227	)		-
Gain on sale of loans		146			988			1,092
Other		50			470			599
Total non-interest income		484			8,073			4,913

Non-interest expense
Salaries and employee benefits		2,399			12,787			12,763
Occupancy and equipment		436			3,489			3,989
Data processing		241			1,558			1,582
FDIC deposit insurance premium		141			1,308			1,513
Net loss on foreclosed assets		5			1,701			881
Other loan related expense		47			1,406			1,704
Other		1,007			5,033			4,536
Total non-interest expense		4,276			27,282			26,968

Income (loss) before income taxes		(668	)		(13,523	)		(13,944	)
Income taxes		(520	)		-			(4,070	)

Net income (loss)		(148	)		(13,523	)		(9,874	)
Effective dividend on preferred stock		182			1,539			1,689
Net income (loss) attributable to common shareholders	$	(330	)	$	(15,062	)	$	(11,563	)

NET INCOME (LOSS) PER COMMON SHARE
Basic	$	(0.01	)	$	(1.57	)	$	(1.21	)
Diluted	$	(0.01	)	$	(1.57	)	$	(1.21	)

Weighted average common shares outstanding - basic		28,353,053			9,586,167			9,579,633
Weighted average common shares outstanding - diluted		28,353,053			9,586,167			9,579,633

PERFORMANCE RATIOS (annualized)
Return on average assets		-0.13	%		-1.57	%		-1.00	%
Return on average equity		-0.85	%		-20.51	%		-11.18	%
Tax equivalent yield on earning assets		4.45	%		4.78	%		5.59	%
Cost of interest-bearing liabilities		1.41	%		2.12	%		2.67	%
Tax equivalent net interest margin		3.24	%		2.87	%		3.18	%
Efficiency ratio		111.51	%		89.52	%		80.81	%
Net loan charge-offs		0.00	%		2.53	%		2.38	%

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(Amounts in thousands)
CONSOLIDATED BALANCE SHEETS (unaudited)

	Successor Company			Predecessor Company
	December 31,			September 30,			June 30,			March 31,			December 31,
	2011			2011			2011			2011			2010 (a)
ASSETS
Cash and due from banks	$	8,844		$	9,551		$	8,594		$	7,986		$	8,373
Interest earning deposits with banks		1,773			1,187			1,143			1,837			2,663
Federal funds sold		14,745			20,780			41,415			56,560			38,070
Investment securities available for sale at fair value		143,504			216,932			200,922			187,996			181,916
Loans held for sale		3,841			2,821			1,949			805			5,690
Loans		552,877			615,980			636,408			652,783			676,803
Allowance for loan losses		(227	)		(22,601	)		(22,319	)		(23,485	)		(20,702	)
Net Loans		552,650			593,379			614,089			629,298			656,101
Accrued interest receivable		2,802			3,284			3,655			3,385			3,995
Federal Home Loan Bank stock		8,669			9,156			9,606			10,522			10,522
Bank premises and equipment		10,286			10,988			11,208			11,394			11,586
Investment in life insurance		19,261			19,068			18,873			18,677			18,483
Goodwill		20,015			-			-			-			-
Other intangibles		2,230			593			626			660			693
Deferred tax asset		30,191			4,121			5,729			7,942			7,733
Foreclosed assets		9,422			13,643			13,491			14,113			15,524
Other assets		6,270			10,458			15,616			8,383			11,669

Total Assets	$	834,503		$	915,961		$	946,916		$	959,558		$	973,018

LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Deposits
Demand	$	91,215		$	70,739		$	67,616		$	59,261		$	62,044
Savings		46,840			50,130			55,038			57,277			64,773
Money market and NOW		226,584			226,868			228,102			230,432			220,749
Time		309,780			338,437			363,818			378,235			376,817
Total Deposits		674,419			686,174			714,574			725,205			724,383

Short-term borrowings		-			5,000			5,000			5,000			7,000
Long-term debt		12,216			152,748			152,748			152,748			157,748
Accrued expenses and other liabilities		4,809			5,057			5,175			4,936			4,872

Total Liabilities		691,444			848,979			877,497			887,889			894,003
STOCKHOLDERS’ EQUITY
Preferred stock		24,435			23,741			23,614			23,496			23,380
Common stock		28			9,664			9,664			9,664			9,664
Warrant		1,325			2,367			2,367			2,367			2,367
Additional paid-in capital		117,434			74,734			74,700			74,668			74,634
Accumulated deficit		(174	)		(46,776	)		(43,643	)		(40,080	)		(32,917	)
Accumulated other comprehensive income		11			3,252			2,717			1,553			1,887

Total Stockholders' Equity		143,059			66,982			69,419			71,668			79,015

Total Liabilities and Stockholders' Equity	$	834,503		$	915,961		$	946,916		$	959,558		$	973,018
(a) Derived from audited consolidated financial statements.

CAPITAL RATIOS

Tangible equity to tangible assets		14.87	%		7.25	%		7.27	%		7.41	%		8.06	%
Tangible common equity to tangible assets		11.87	%		4.66	%		4.80	%		4.97	%		5.65	%
Tier 1 leverage ratio		10.68	%		7.25	%		7.52	%		7.57	%		8.35	%
Tier 1 risk-based capital ratio		14.26	%		9.39	%		9.64	%		9.74	%		10.34	%
Total risk-based capital ratio		15.27	%		11.71	%		11.92	%		12.01	%		12.57	%

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ASSET QUALITY RATIOS (in thousands)

	Successor Company			Predecessor Company
	December 31,			September 30,			June 30,			March 31,			December 31,
	2011			2011			2011			2011			2010

Non accrual loans (a)	$	-		$	43,115		$	39,105		$	46,670		$	30,569
Accruing loans > 90 days past due (a)		22,888			-			-			-			-
Total nonperforming loans		22,888			43,115			39,105			46,670			30,569
Other real estate owned & repossessions		9,422			13,643			13,491			14,113			15,524
Total nonperforming assets	$	32,310		$	56,758		$	52,596		$	60,783		$	46,093
Allowance for loan losses to loans (b)		0.04	%		3.67	%		3.51	%		3.60	%		3.06	%
Nonperforming loans to total loans		4.14	%		7.00	%		6.14	%		7.15	%		4.52	%
Nonperforming assets to total assets		3.87	%		6.20	%		5.55	%		6.33	%		4.74	%
Restructured not included in categories above	$	-		$	10,602		$	7,221		$	5,755		$	7,540

	Nonperforming Loan Analysis
	Successor Company					Predecessor Company
	December 31, 2011					December 31, 2010
			Percentage					Percentage
	Nonperforming		of Total			Nonperforming		of Total
	Loans		Loans			Loans		Loans
Construction and A&D	$	10,710		1.94	%	$	16,835		2.49	%
Commercial real estate		6,101		1.10	%		7,633		1.13	%
Residential mortgage		4,148		0.75	%		4,166		0.62	%
Home equity lines and loans		1,128		0.20	%		1,314		0.19	%
Commercial and industrial		798		0.14	%		616		0.09	%
Consumer		3		0.00	%		5		0.00	%
Totals	$	22,888		4.14	%	$	30,569		4.52	%

(a)

Non accrual loans generally include loans for which full collection of principal and interest is not expected or loans past due greater than 90 days. Due to accounting for purchased impaired loans following the Piedmont Investment, all loans as of December 31, 2011 exhibiting these characteristics were included in an acquired loan pool and were therefore accreting interest based on the applicable pool yield.

(b)

The allowance for loan losses to total loans was eliminated in purchase accounting with the Piedmont Investment. All acquired loans were adjusted to fair value at that date, and the allowance for loan losses as of December 31, 2011 only represented estimates of incurred losses on loans originated subsequent to the Piedmont Investment. The allowance for loan losses to loans originated in the successor period totaled 1.74% as of December 31, 2011.

- 8 -

AVERAGE BALANCES, INTEREST AND YIELDS/COSTS (in thousands)

	Successor Company							Predecessor Company
	For the Period of							For the Period of
	November 19 through December 31, 2011							October 1 through November 18, 2011							For the Three Months Ended December 31, 2010
	Average				Average			Average				Average			Average				Average
	Balance		Interest		Yield/Cost			Balance		Interest		Yield/Cost			Balance		Interest		Yield/Cost

Interest-earnings assets
Loan portfolio	$	566,291	$	4,252		6.23	%	$	614,298	$	4,439		5.49	%	$	697,045	$	10,020		5.70	%
Investment securities*		105,784		313		2.61	%		217,774		874		3.75	%		189,922		1,689		4.28	%
Fed funds and other interest-earning		193,594		45		0.19	%		25,253		7		0.21	%		21,468		9		0.17	%
Total interest-earning assets		865,669		4,610		4.45	%		857,325		5,320		4.95	%		908,435		11,718		5.24	%
Noninterest-earning assets		109,677							52,197							61,440
Total Assets	$	975,346						$	909,522						$	969,875

Interest-bearing liabilities
Interest-bearing NOW	$	147,061		183		1.03	%	$	144,658		221		1.16	%	$	141,015		791		2.23	%
Money market and savings		114,529		93		0.67	%		126,429		104		0.63	%		133,767		354		1.05	%
Time deposits		321,316		340		0.88	%		335,555		991		2.25	%		378,334		2,484		2.60	%
Short-term borrowings		12,132		18		1.23	%		8,000		20		1.90	%		7,000		31		1.76	%
Long-term debt		145,280		625		3.57	%		149,748		718		3.65	%		157,748		1,410		3.55	%
Total interest-bearing liabilities		740,318		1,259		1.41	%		764,390		2,054		2.04	%		817,864		5,070		2.46	%
Non-interest bearing deposits		83,687							73,432							62,364
Other liabilities		6,328							5,268							4,679
Total Liabilities		830,333							843,090							884,907
Stockholders' Equity		145,013							66,432							84,968
Total Liabilities & Stockholders' Equity	$	975,346						$	909,522						$	969,875

Net interest income			$	3,351						$	3,266						$	6,648
Interest rate spread						3.04	%						2.91	%						2.78	%
Tax equivalent net interest-margin						3.24	%						3.09	%						3.03	%

Percentage of average interest-earning assets to average interest-bearing liabilities						116.93	%						112.16	%						111.07	%

* Shown as a tax equivalent yield

	Successor Company							Predecessor Company
	For the Period of							For the Period of
	November 19 through December 31, 2011							January 1 through November 18, 2011							For the Year Ended December 31, 2010
	Average				Average			Average				Average			Average				Average
	Balance		Interest		Yield/Cost			Balance		Interest		Yield/Cost			Balance		Interest		Yield/Cost

Interest-earnings assets
Loan portfolio	$	566,291	$	4,252		6.23	%	$	665,970	$	31,569		5.39	%	$	722,150	$	43,420		6.01	%
Investment securities*		105,784		313		2.61	%		213,542		6,198		3.77	%		193,819		7,326		4.37	%
Fed funds and other interest-earning		193,594		45		0.19	%		42,080		82		0.22	%		15,255		34		0.22	%
Total interest-earning assets		865,669		4,610		4.45	%		921,592		37,849		4.78	%		931,224		50,780		5.57	%
Noninterest-earning assets		109,677							56,058							56,326
Total Assets	$	975,346						$	977,650						$	987,550

Interest-bearing liabilities
Interest-bearing NOW	$	147,061		183		1.03	%	$	154,108		2,161		1.59	%	$	121,589		3,061		2.52	%
Money market and savings		114,529		93		0.67	%		136,606		909		0.76	%		132,053		1,503		1.14	%
Time deposits		321,316		340		0.88	%		374,158		7,444		2.26	%		401,338		11,621		2.90	%
Short-term borrowings		12,132		18		1.23	%		5,592		78		1.59	%		28,249		419		1.48	%
Long-term debt		145,280		625		3.57	%		158,785		4,853		3.48	%		152,910		5,718		3.74	%
Total interest-bearing liabilities		740,318		1,259		1.41	%		829,249		15,445		2.12	%		836,139		22,322		2.67	%
Non-interest bearing deposits		83,687							68,535							58,889
Other liabilities		6,328							4,896							4,178
Total Liabilities		830,333							902,680							899,206
Stockholders' Equity		145,013							74,970							88,344
Total Liabilities & Stockholders' Equity	$	975,346						$	977,650						$	987,550

Net interest income			$	3,351						$	22,404						$	28,458
Interest rate spread						3.04	%						2.66	%						2.90	%
Tax equivalent net interest-margin						3.24	%						2.87	%						3.18	%

Percentage of average interest-earning assets to average interest-bearing liabilities						116.93	%						111.14	%						111.37	%

* Shown as a tax equivalent yield

CONTACT: Mr. Terry Earley

Chief Financial Officer

Crescent Financial Bancshares, Inc.

Phone: (919) 659-9015

Email: tearley@CrescentStateBank.com

-9-

VANTAGESOUTH BANCSHARES, INC. - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - March 6, 2012

Attached files

VANTAGESOUTH BANCSHARES, INC. Reports