updated 6/7/2011 12:46:47 PM ET 2011-06-07T16:46:47

CARY and RALEIGH, N.C., June 7, 2011 (GLOBE NEWSWIRE) -- Crescent Financial Corporation, Cary, NC ("Crescent") (Nasdaq:CRFN) and Piedmont Community Bank Holdings, Inc., Raleigh, NC ("Piedmont") announced that at a special meeting of Crescent shareholders held today in Cary, NC, shareholders overwhelmingly approved the issuance of 18,750,000 new shares of Crescent common stock to Piedmont. Of the 5,562,543 shares voted, which represented approximately 58% of total shares outstanding, over 97% approved the investment. Shareholders also voted to approve the reincorporation of Crescent from North Carolina to Delaware. The investment of Piedmont into Crescent remains subject to the approval of regulatory authorities and the appropriate applications have been made. The closing of the investment is anticipated to occur in the third quarter of 2011.

Michael G. Carlton, President and CEO of Crescent and Crescent State Bank stated: "We are pleased to announce that our shareholders have approved this important partnership with Piedmont. The approval moves us one step closer to securing the additional capital needed to expand the franchise and better serve our customer base. Both management and the employees of Crescent look forward to benefiting from the expertise and vision that the Piedmont investment will offer and stand ready to begin to execute the next phase of Crescent's journey."

Scott M. Custer, CEO of Piedmont stated: "We look forward to partnering with Crescent and remain very enthusiastic about integrating Crescent State Bank as our platform for continued expansion in the Carolinas and Virginia."

As of March 31, 2011, Crescent Financial Corporation reported unaudited total assets of $959.6 million, total loans outstanding of $652.8 million, total deposits of $725.2 million and total equity capital of $71.7 million. Crescent's wholly owned subsidiary, 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 Corporation 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 www.crescentstatebank.com .

Cautionary Statement

The investment discussed above involves the sale of securities in a private transaction that will not be registered under the Securities Act of 1933, as amended, and will be subject to the resale restrictions under that Act. Such securities may not be offered or sold absent registration or an applicable exemption from registration requirements. This document does not constitute an offer to sell or a solicitation of an offer to buy any securities, nor shall there be any sale of securities in any state or jurisdiction in which such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Forward-looking Statements

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, delays in obtaining or failure to receive required regulatory approvals, including approval by the Board of Governors of the Federal Reserve System and the North Carolina Office of the Commissioner of Banks, the occurrence of events that would have a material adverse effect on Crescent as described in the investment agreement, the risk that the investment agreement could be terminated under circumstances that would require Crescent to pay termination fees and expenses to Piedmont, and other uncertainties arising in connection with the proposed investment transaction. Additional factors that could cause actual results to differ materially are discussed in Crescent's filings with the Securities and Exchange Commission ("SEC"), 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. Crescent does not undertake a duty to update any forward-looking statements in this press release.

CONTACT: Mr. Michael G. Carlton
         President and CEO
         Crescent Financial Corporation
         1005 High House Road
         Cary, NC 27513
         (919) 460-7770
         
         Mr. Scott M. Custer
         Chief Executive Officer
         Piedmont Community Bank Holdings, Inc.
         4711 Six Forks Road
         Raleigh, NC  27609
         (919) 782-2542

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