Crescent State Bank Named To Top 200 List By US Banker Magazine

MMI Associates, Inc.
7406-H Chapel Hill Road
Raleigh, NC 27607
(919) 233-6600 • (919) 233-0300 (fax)
patty@mmimarketing.com

For Immediate Release Contact: Patty Briguglio (919) 233-6600

Crescent State Bank Named To Top 200 List
By US Banker Magazine
Local Community Bank Recognized As A Top Bank In U.S.

CARY, NC – Crescent State Bank, the wholly owned subsidiary of Crescent Financial Corporation (Nasdaq National Market: CRFN), has announced that it has been recognized as one of the Top 200 Publicly Traded Community Banks by U.S. Banker Magazine. Crescent State Bank was ranked 159 based on performance and a 3-year average return on equity (ROE) as of December 31, 2004. U.S. Banker Magazine published the list in their July 2005 edition.

“Crescent State Bank is honored to be named one of the top 200 community banks in the nation,” said Michael Carlton, President. “This recognition is the result of several years of hard work by a very dedicated group of directors, management and employees.”

About Crescent State Bank:
Crescent State Bank is a wholly owned subsidiary of Crescent Financial Corporation. The Bank opened in December 1998 to cater to the financial needs of the communities it serves. The bank has total assets of approximately $405 million, deposits of approximately $313 million, and loans of $318 million as of September 30, 2005, with nine full service banking offices in the communities of Cary (2), Apex, Clayton, Garner, Holly Springs, Sanford, Southern Pines, and Pinehurst, North Carolina, and a loan production office in Raleigh.

Patty Briguglio
MMI Associates, Inc.
919-233-6600
patty@mmimarketing.com

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Information in this press release contains "forward-looking statements." These statements involve risks and uncertainties that could cause actual results to differ materially, including without limitation, the effects of future economic conditions, governmental fiscal and monetary policies, legislative and regulatory changes, the risks of changes in interest rates, and the effects of competition. Additional factors that could cause actual results to differ materially are discussed in Crescent Financial Corporation’s recent filings with the Securities and Exchange Commission, including, but not limited to, its Annual Report on Form 10-K and its other periodic reports.