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					Howe Barnes Hoefer & Arnett
13th Annual Bank Conference   August 2008
      Forward Looking Statements
    This presentation contains forward-looking statements (within the meaning of
       the Private Securities Litigation Reform Act of 1955). Such statements are
       not historical facts, but rather are based on our current expectations,
       estimates and projections about our industry, our beliefs and assumptions.
       Words including “may,” “will,” “could,” “would,” “should,” “anticipate,”
       “expect,” “intend,” “plan,” “project,” “believe,” “seek,” “estimate” and similar
       expressions are intended to identify forward-looking statements. These
       statements are not guarantees of future performance and are subject to
       certain risks, uncertainties and other factors, some of which remain beyond
       our control, are difficult to predict, and could cause actual results to differ
       materially from those expressed or forecasted in the forward-looking
       statements. Such risk factors are disclosed from time to time in filings made
       by Crescent Financial Corp. with the Securities and Exchange Commission.
       We caution you not to place undue reliance on these forward-looking
       statements, which reflect management’s view only as of the date of this
       presentation. We are not obligated to update these statements or publicly
       release the result of any revisions to them to reflect events or circumstances
       after the date of this presentation or to reflect the occurrence of
       unanticipated events.
2
    Agenda

             Background

             Market Analysis

             Financial Highlights

             Stock Performance

             Vision for the Future

3
Background & History
    Corporate Profile
    Headquartered in Cary, NC
    Opened in December 1998
    13 full-service offices
              Raleigh-Cary MSA, NC
              Wilmington, NC
              Pinehurst-Southern Pines-Sanford, NC
    Assets:                          $921MM
    NPA’s/ Assets:                   .29%
    Net income:                      $5.4MM LTM
    Ticker/Exchange                  CRFN/NASDAQ Global Market
    Inside ownership                 20.96%
    Institutional ownership          6.02%
    Market cap:                      $60 million (8/12/08)
    Average daily volume:            10,054 shares (three months)
    Shares Outstanding               9.6 million
5
     The Team That Makes It Happen

                                                       Years with   Years in
                                     Title               CRFN       Banking

     Michael G. Carlton        President & CEO            10          25

      Bruce W. Elder             SVP & CFO                10          24

    Thomas E. Holder, Jr.   SVP & Sr. Credit Officer      10          26

      Ray D. Vaughn              SVP & COO                 3          32

                              E.V.P. & Regional
         Keith Betts                                       2          26
                            President, Wilmington




6
    Successful Growth Strategy
    Increase presence in high-growth central and southeast
    North Carolina markets

    Identify communities of interest and then hire the best
    local bankers

    Target small- and medium-sized businesses,
    professionals and individuals located in the markets we
    serve

    Empower seasoned employees to make decisions at
    local level

    Focus on core deposit funding in highly competitive
    environment
7
          Significant Corporate Events
    Crescent State Bank                                   Completed $9M
       established in                                      acquisition of
         Cary, NC                                         Centennial Bank
    December 31, 1998                                     August 29, 2003

                                   Issued $8M of trust
                                   preferred securities
                                     August 27, 2003




1998        1999      2000      2001       2002           2003     2004        2005           2006    2007



                                                                                                 Completed $40M
                                               $6.3M Secondary                                  acquisition of Port
                                                   Offering                                     City Capital Bank in
                                                  Completed            $14M Public Offering       Wilmington, NC
                     Crescent Financial        August 20, 2002             Completed              August 31, 2006
                        Corporation                                     December 2, 2005
                       was formed on
                       June 29, 2001

8
Market Analysis
     Crescent’s Market Area
                                                Crescent headquarters
                                                13 Crescent offices




            Crescent MSAs are outlined in yellow.

10
             Targeting High Growth Markets
                                                       Projected 2007-2012
     25%
                                               Population Growth                 HH Income Growth
             19.4%
     20%                 18.9%
                                    17.7%                                            18.1%               17.5%          17.6%
                                                                            17.4%
                                              16.7%
                                                                 15.3%
     15%


                                                          9.7%
     10%                                                                                          8.9%

                                                                                                                 6.3%

     5%



     0%
               Ral e i g h- Car y   Wi l mi ng t o n       Sandhi l l s 1   To t al Cr e sce nt    NC St at e       U SA
                                                                                  M SA s




11    1   Weighted average of combined Southern Pines-Pinehurst and Sanford MSAs
          Source: SNL Financial LC.
         Raleigh-Cary MSA
          Eight banking offices with
          2.34% deposit market share in
                            1
          three county area

          Population 1,023,6202

          All CRFN loan growth in this
          MSA has been organic

          Home to the Research Triangle
          Park, one of the nation’s
          leading technology business
          centers

          Top-rated for quality of life,
          excellent education, business
          climate and entertainment
          options

12   1   Source: FDIC Summary of Deposits as of June 30, 2007
     2   SNL Financial
      Raleigh-Cary MSA Accolades

                                      #2 Kiplinger 2008
                                      Best City to Live
                                                          #1 Forbes 2008
               2007 Wired Top
                                                          Best Place for
                Tech Towns
                                                              Careers




       2005-2008
                                                                    #1 Forbes 2007
        Money                           RALEIGH/
                                                                   Best Place to Sell
     Best Places to                     CARY MSA
                                                                        a Home
          Live



                 5th Fastest                              #1 MSNBC 2008
               Growing Large                               Best Place to
              City (2007 US Census)                          Live in US
                                       #5 Forbes 2008
                                       Top Recession
                                         Proof City

13
                                                    1
           Sandhills MSA
            Three banking offices and 4.28%
            deposit market share1

            Pinehurst is one of the top three golf
            destinations in the world

                  Pinehurst hosted the 1999 and 2005
                  Men’s US Open Golf Championship

                  Southern Pines hosted the 2007
                  Women’s US Open Golf
                  Championship

            Population 141,1362

            Sanford ranked 37th top MSA
            Nationwide



     1 Source:
             FDIC Summary of Deposits as of June 30, 2007; comprised of a combination of
14
     Moore and Lee Counties 2 SNL Financial
         Wilmington Area/Coastal Market
         Two banking offices with 4.22%
         deposit market share in New Hanover
         county1.

         Wilmington Population 339,9062

         Wilmington is the largest city in
         southeastern NC; a regional medical
         and education center and major port

         Popular retirement market

         Known as “Hollywood East” for being
         home to Screen Gems Studios -
         North Carolina, one of the largest
         motion picture and television studios
         outside of Hollywood

         Home to GE, DuPont and Corning,
         University of North Carolina
         Wilmington


     1Source: FDIC Summary of Deposits as of June 30, 2007 for New Hanover County. 2 SNL
15
     Financial
              Market Share Opportunity
                             Deposit Market Share in 1
                Wake, Johnston, New Hanover, Lee and Moore Counties
                                                                                      Deposits
                                                                                      in Market      Market
               Rank     Institution                                  Branches          ($000s)       Share

                  1     Wachovia Corporation                             56              5,981,760       27.9%
                  2     BB&T Corporation                                 56              3,231,366       15.1%
                  3     First Citizens BancShares, Inc.                  46              1,969,345        9.2%
                  4     Royal Bank of Canada                             35              1,949,202        9.1%
                  5     Bank of America Corporation                      31              1,665,663        7.8%
                  6     SunTrust Banks, Inc.                             40              1,226,206        5.7%
                  7     Crescent Financial Corporation                   12                619,226        2.9%
                  8     First Bancorp                                    18                596,060        2.8%
                  9     Four Oaks Fincorp, Inc.                          12                480,675        2.2%
                 10     North State Bancorp                               5                454,156        2.1%
                        Other                                           112              3,268,980       15.2%
                        Total                                           423             21,442,639      100.0%




16        includes publicly traded companies, 2. Includes all publicly traded companies in these
     1.Only
       counties *Source: SNL Financial LC; Deposits as of June 30, 2007
Financial Highlights
           Financial Highlights

     ($MMs except EPS)                2006      2007    2Q’08
     Assets                           $697.9   $835.5   $920.6
     Gross Loans                      $549.8   $675.9   $742.9
     % Core Deposits                  56.9%    54.2%    53.1%
     Net Income                       $4.90    $6.25    $4.001
     EPS                              $0.64    $0.65    $0.402
     ROA                              0.93%    0.80%    0.46%1
     ROATE                            11.22%   10.93%   6.52%1


18   1   Annualized for 2008
     2   Analyst consensus for 2008
              Balance Sheet Growth
                             Assets ($MM's)
                                                                                               Net Loans ($MM's)

 1000
                                                                          800
  900
                                                                  921     700                                                      743
  800                                                     836
                                                                          600                                              668
  700
  600                                              698                    500                                       543
  500                                                                     400
  400
                                            411                           300
  300                                                                                                        324
                                    331                                   200                         254
  200                       274                                                                213
  100               182                                                   100
            129                                                                  79     124
    0                                                                       0
            2001    2002    2003    2004    2005   2006   2007   Jun-08         2001   2002   2003   2004   2005   2006   2007   Jun-08


                              Deposits ($MM's)                                                  Equity ($MM's)

     700                                                                  100
     600                                                          653      90                                                     94
                                                                                                                          92
                                                          605              80
                                                                                                                   83
     500                                            542                    70
     400                                                                   60
                                                                           50
     300
                                             322                           40
                                     274                                                                    41
     200                                                                   30
                             219
                                                                           20                 24     27
     100             153
             113                                                           10          18
                                                                                10
        0                                                                   0
             2001    2002    2003    2004   2005   2006   2007   Jun-08         2001   2002   2003   2004   2005   2006   2007   Jun-08


19
          Total Gross Loans of $742.9 million as of June 30, 2008
                                                                of which approximately 51% are variable.
                                         Home equity lines &
                                               loans             Consumer     Comm RE - owner
                                                 7%                 1%           occupied
                                                                                   24%
           Commercial & industrial
                   10%

     Land acquisition
           7%




     Construction -
      Commercial
          8%

                        Construction - 1 to 4
                               family
                                            Residential real estate                 Comm RE - non-owner
                                10%
                                                     3%                                  occupied
                                                                                           30%




20
     Commitment to Asset Quality
     Disciplined, conservative credit culture

     Consistent on analysis & underwriting standards

     Effective approval structure aimed at quality &
     responsiveness

     Robust credit monitoring process

        At individual credit level

        At portfolio level

     Do not compromise loan quality for growth

21
     No exposure to sub-prime loans
             Asset Quality & Reserve Coverage
                      Non-Performing Assets(1) / Total Assets                                         Net Charge-Offs / Average Loans (annualized)


     0.40%                                                                               0.20%
     0.35%                                                                               0.18%
                                                                                         0.16%




                                                                                                                                                                            0.19%
                                                                       0.36%
     0.30%




                                                                                                                                  0.15%
                                                                                         0.14%
              0.33%




                                                                                 0.29%
     0.25%                                                                               0.12%




                                                                                                                                                                  0.06%
     0.20%                                                                               0.10%
                                           0.09%

                                                                                         0.08%




                                                                                                                                              0.04%
     0.15%




                                                                                                  0.03%


                                                                                                              0.09%
                                 0.06%




                                                                                         0.06%


                                                              0.03%




                                                                                                                                                         0.02%
     0.10%
                                                     0.01%




                                                                                                                       0.05%
                                                                                         0.04%
                        0.00%




     0.05%                                                                               0.02%
     0.00%                                                                               0.00%
             2001      2002     2003     2004      2005      2006     2007     Jun-08             2001       2002     2003       2004        2005       2006     2007     Jun-08

                       Loan Loss Reserves / Gross Loans                                              Loan Loss Reserves / Non-Performing Loans(1)
     1.60%                                                                               80000%
                                 1.52%




     1.40%                                                                               70000%




                                                                                                                                    73360%
                                          1.42%
              1.39%


                        1.36%




                                                    1.33%




                                                                                         60000%
                                                              1.26%




     1.20%
                                                                       1.22%


                                                                                1.19%



     1.00%                                                                               50000%
     0.80%                                                                               40000%




                                                                                                                                               16961%
     0.60%                                                                               30000%




                                                                                                                                                         5145%
                                                                                                                         2078%
                                                                                         20000%




                                                                                                                                                                           1187%
     0.40%




                                                                                                                                                                  303%
     0.20%                                                                               10000%       260%

     0.00%                                                                                  0%
             2001      2002     2003     2004      2005      2006     2007     Jun-08              2001      2002     2003       2004        2005       2006     2007     Jun-08



22    (1) Non-performing assets include non-accrual loans, loans 90 days
          or more past due, and repossessed assets
          Asset Quality Comparisons

                                                            North Carolina Banks           Southeast Banks
                                              CRFN             Peer*              All      Peer*      All

     Non-performing Assets to
     Total Assets                               0.29%            1.19%            0.63%     1.26%     1.01%
     Last Twelve Months Net
     Charge-offs to Average
     Loans                                      0.14%            0.19%            0.13%     0.20%     0.17%

     Loan Loss Reserve to
     Total Loans                                1.19%            1.20%            1.21%     1.16%     1.23%




23     - Peer banks are defined as banks with total assets between $500 million and $1.0
       billion - Financial data as of 6/30/08 - Source: SNL Financial LC
       Total Deposits of $653 Million at June 30, 2008

           Time greater than               Non-interest
                $100K                    Bearing Demand     Interest
 Time less       15%                           10%        Bearing NOW
than $100K                                                     6%
   12%
                                                                   Savings
                                                                    12%




                                                             Money Market
                                                                 13%


         Brokered CDs
             32%

     Checking    CD’s      Savings/MMA


24
               Earnings Growth
                  Net Interest Income ($MM's)                                                                                    Noninterest Income ($MM's)

     $30,000                                                                                                   $3,000
     $27,000
                                                                                                               $2,500




                                                                                         $26,655




                                                                                                                                                                                             $2,621
                                                                                                                                                                                  $2,612
     $24,000




                                                                                                                                                                       $2,433
     $21,000                                                                                                   $2,000




                                                                                                                                                            $1,998
     $18,000




                                                                              $19,450
     $15,000                                                                                                   $1,500




                                                                                                                                                 $1,654




                                                                                                                                                                                                        $1,626
                                                                  $13,955
     $12,000
                                          $7,201




                                                                                                     $12,816
                               $5,367




                                                                                                               $1,000
                  $3,762




      $9,000
                                                      $10,430




                                                                                                                           $441
      $6,000




                                                                                                                                       $754
                                                                                                                $500
      $3,000
          $0                                                                                                      $0
                2001        2002        2003       2004         2005        2006        2007       2Q2008                2001        2002      2003       2004       2005       2006       2007       2Q2008



                           Net Income ($MM's)                                                                                          Earnings per Share

     $7,200                                                                                                    $0.80
     $6,300




                                                                                                                                                                                            $0.65
                                                                                                               $0.60




                                                                                                                                                                                 $0.64
     $5,400
                                                                                         $6,249




                                                                                                                                                                      $0.55
     $4,500
                                                                             $4,904




     $3,600                                                                                                    $0.40




                                                                                                                                                           $0.43
                                         $1,655




                                                                                                                                     $0.35


                                                                                                                                               $0.35
                                                                 $3,144




     $2,700
                            $1,228




                                                                                                                         $0.11
                                                    $2,333




     $1,800                                                                                                    $0.20
                                                                                                     $2,031




                                                                                                                                                                                                        $0.21
                $307




      $900
        $0                                                                                                     $0.00
               2001        2002         2003       2004         2005        2006        2007       2Q2008               2001        2002      2003        2004       2005       2006       2007       2Q2008


25
          Profitability
                                 ROAA (% )                                                                    ROAE (% )
1.00%                                                                        12.00%
                                                   0.93%                     10.00%
0.80%           0.85%                                                                                                  10.34%
                                           0.84%            0.80%
                         0.79%    0.76%                                                        9.31%           9.14%
                                                                             8.00%                                              8.72%
0.60%                                                                                                  8.25%
                                                                             6.00%                                                      7.15%
0.40%                                                               0.46%
                                                                             4.00%                                                              4.35%
0.20%   0.31%
                                                                             2.00%     2.97%

0.00%                                                                        0.00%
        2001    2002     2003     2004     2005    2006     2007    YTD                2001    2002    2003    2004    2005     2006    2007    YTD
                                                                    2008                                                                        2008

                        Net Interest Margin (% )                                                        Efficiency Ratio (% )
5.00%                                                                        100.00%

4.00%                                                                         80.00%
        3.98% 3.87%                        3.94%    3.95%                               82%
                          3.64%    3.61%                    3.72%
3.00%                                                                         60.00%            67%             68%                             70%
                                                                     3.16%                              65%             66%
                                                                                                                                61%     61%
2.00%                                                                         40.00%

1.00%                                                                         20.00%

0.00%                                                                          0.00%
        2001    2002      2003    2004     2005    2006     2007    YTD                 2001    2002    2003    2004    2005    2006    2007    YTD
                                                                    2008                                                                        2008



26
Stock Performance to Date
       Historical Book Value Per Share
     $10.00




                                                                                                                                      $9.79
                                                                                                                      $9.75
      $9.00




                                                                                                      $9.13
      $8.00
      $7.00




                                                                                                                              $6.54
                                                                                      $6.52
      $6.00




                                                                                                              $6.42
                                                                                    $5.93


                                                                                              $5.67
      $5.00




                                                                            $5.16
                                                                 $4.73
      $4.00




                                                                         $4.43
                                                     $4.12


                                                               $3.99
                                                     $4.12
                                            $3.59

      $3.00
                $3.64




                                            $3.59
                          $3.46
                                   $3.43
                                   $3.43
                $3.64

                          $3.46




      $2.00
      $1.00
      $0.00
               1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Jun-
                                                                  08
                                        Tangible Book Value         Book Value

      Adjusted for stock dividends paid as follows: 10% in 2000, 12½% in 2001 and 2002, 15% in 2003,
28
      20% in 2004, 15% in 2005 and 2006 and 10% in 2007.
                 Historical Stock Price Performance
              300,000                                                                                                  20.00


                                                                                                                       18.00
                                              Acquisition of      NASDAQ National                  Acquisition of
              250,000                          Centennial          Market Listing                     PCCB
                                             August 29, 2003      October 10, 2005                August 31, 2006      16.00


                                                                                                                       14.00
              200,000
                                 Secondary
                                  Offering                                                                             12.00
                               August 20, 2002
     Volume




                                                                                                                               Price
              150,000                                                                                                  10.00


                                                                                                                       8.00

              100,000                                                                      Public Offering
                                                                                          December 2, 2005             6.00


                                                                                                                       4.00
               50,000

                                                                                                                       2.00


                   0                                                                                                   0.00
                   Aug-99 Apr-00 Dec-00 Aug-01 Apr-02 Dec-02 Aug-03 Apr-04 Dec-04 Aug-05 Apr-06 Dec-06 Aug-07 Apr-08

                                                               Volume     Price

29
     Trading activity from 8/11/99 through April 25, 2008 Source: SNL Financial
Vision for the Future
     Vision for 2010
     The Bank may have:
       Traditional bank assets  $1.4B
       20+ banking offices strategically located in Central and Eastern North
       Carolina high growth markets
       Acquired one or more smaller banks to gain strategic locations, people
       and/or other resources
       Improved profitability
       Expanded services to include some/all of following: mortgage lending,
       brokerage, insurance & financial advisory

     Services delivered through a mix of “high-tech and high
     touch” channels
     The Bank will be recognized as the financial services
     provider of choice for each of the communities we serve

31
     CRFN: An Attractive Investment Opportunity

     LTM Organic Loan Growth                   22%
     Last Twelve Month EPS                    $0.55
     Book Value1                              $9.79
     Tangible Book Value1                     $6.54
     Price2/LTM EPS                           11.5x
     Price2/Book Value                         64%
     Price2/Tangible Book Value                96%

     - Financial data as of 6/30/08
32   - Trading price of $6.30 as of 8/12/08
     - Source: SNL Financial LC
     Investment Highlights
     Strong loan growth with exceptional asset quality

     Commercially focused business mix

     Attractive franchise demographics with significant growth
     potential

     Proven acquisition and de novo expansion expertise

     Established local identity in high-growth communities

     Seasoned management team with an intimate
     knowledge of local markets

     Track record of stable earnings and balance sheet
     growth
33
     NASDAQ: CRFN
www.CrescentStateBank.com

				
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