Crescent State Bank Honors Two Cary High School Students

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

Crescent State Bank Honors Two Cary High School Students
Community Bank Offers Scholarships To Graduating Seniors

CARY, N.C. – Michael G. Carlton, president of Crescent State Bank, a wholly-owned subsidiary of Crescent Financial Corporation, (NASDAQ National Market: CRFN), has announced that their bank’s Jr. Bank Board has awarded Elizabeth Mize and Larissa Shorter, two graduating seniors from Cary High School, with $500 college scholarships. The awards were presented at a ceremony held on May 26 at Cary High School. The students were chosen based on scholastic achievements and service to their community.

“We are honored to award such deserving students,” said Carlton. “The Jr. Bank Board provides high school students the opportunity to develop strong business skills through integrated programs offered through the bank. Awarding these scholarships furthers their potential to succeed.”

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 $445 million, deposits of approximately $350 million, and loans of $351 million as of March 31, 2006, with ten full service banking offices in the communities of Cary (2), Apex, Clayton, Garner, Holly Springs, Sanford, Southern Pines, Raleigh and Pinehurst, North Carolina.

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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.

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

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