Crescent State Bank

Cary, NC · Cert 35006

FDIC · 41 branches

Q2 2014

$2.1BAssets

$1.4BLoans

$1.7BDeposits

$279.5MEquity

Loan mix

Deposit mix

NIM

Market Position · Raleigh, NC · 2014 SOD (annual) · 3.0% share · #7 of 33 inst. · $0.7B of $23.6B

3.1% Wake

15.0% Dare

7.1% Pitt

2.4% New Hanover

Earnings: ROA of 0.79%, down 19 bps year over year; NIM at 3.75%.
Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net charge-offs at 0.07%.
Funding: loans stand at 82.08% of deposits as of Q2 2014.

Return on Assets (quarter, annualized)

0.79%-19 bps YoY

Net Interest Margin (quarter, annualized)

3.75%-42 bps YoY

Efficiency Ratio (quarter, annualized)

69.73%-2,211 bps YoY

Tier 1 Leverage Ratio

n/a

Discrete quarter, annualized.

Metric	Q2 2013	Q3 2013	Q4 2013	Q1 2014	Q2 2014	YoY Δ	Trend
Earnings
Return on Assets	0.98%	0.27%	0.75%	0.52%	0.79%	-19 bps
Return on Equity	7.42%	2.16%	5.77%	3.99%	6.01%	-142 bps
Net Interest Margin	4.17%	4.04%	4.03%	3.81%	3.75%	-42 bps
Efficiency Ratio	91.84%	74.87%	70.22%	74.44%	69.73%	-2,211 bps
Non-Interest Burden	3.68%	2.90%	2.63%	2.66%	2.39%	-129 bps
Growth
Asset Growth (YoY)	145.25%	157.72%	95.27%	88.70%	6.42%	-13,883 bps
Loan Growth (YoY)	163.02%	148.32%	79.31%	73.42%	2.52%	-16,050 bps
Deposit Growth (YoY)	149.88%	156.04%	92.10%	83.79%	1.52%	-14,836 bps
Asset Quality
Nonperforming Loans / Loans	0.00%	0.00%	0.00%	0.00%	0.00%	0 bps
Net Charge-Offs / Loans	0.18%	0.20%	0.21%	0.32%	0.07%	-11 bps
Allowance / Loans	0.48%	0.52%	0.50%	0.52%	0.54%	+6 bps
Allowance Coverage of NPLs	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Capital
Tier 1 Leverage Ratio	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Total Risk-Based Capital	11.11%	12.66%	12.70%	12.85%	13.12%	+201 bps
Equity / Assets	11.69%	13.15%	12.81%	13.07%	13.07%	+138 bps
Liquidity & Funding
Loans / Deposits	81.28%	83.58%	83.21%	83.75%	82.08%	+80 bps
Liquid Assets / Assets	2.90%	2.37%	3.42%	2.19%	3.73%	+84 bps
CRE / Total Capital	n/a	n/a	n/a	n/a	n/a	n/a	n/a