SOURCE: Crescent Banking Company

August 04, 2006 13:00 ET

Crescent Banking Company Declares Quarterly Dividend and Announces Earnings

JASPER, GA -- (MARKET WIRE) -- August 4, 2006 -- Crescent Banking Company (NASDAQ: CSNT) (the "Company") is pleased to announce that its Board of Directors has declared the Company's 40th consecutive quarterly cash dividend on its common stock. The dividend of $.14 per share, representing an increase of 17% over last quarter's dividend, is payable on August 31, 2006 to holders of record on August 18, 2006.

The Company's net income for the six months ended June 30, 2006 totaled $3.5 million, which represented net income per share on a basic and a fully diluted basis of $1.34 and $1.30, respectively. In comparison, the Company had net income for the six months ended June 30, 2005 of $1.9 million, which represented net income per share on a basic and a fully diluted basis of $0.77 and $0.75, respectively. The net income for the first six months of 2006 represents an increase of 80% from the same period in 2005.

The Company's net income for the quarter ended June 30, 2006 totaled $2.0 million, which represented net income per share on a basic and a fully diluted basis of $0.80 and $0.77, respectively. In comparison, the Company had net income for the quarter ended June 30, 2005 of $899,752, which represented net income per share on a basic and a fully diluted basis of $0.36 and $0.35, respectively. The second quarter 2006 net income represents an increase of 128% from the same period in 2005.

The Company's loan portfolio increased from $593.7 million at December 31, 2005 to $629.2 million at June 30, 2006, a $35.5 million increase. The Company presently anticipates that the construction on its full service office at the corner of Reinhardt College Parkway and Riverstone Boulevard in Canton will be completed during the third quarter of 2006 and that the construction of its full service office at the corner of Ragsdale Road and Highway 92 in Woodstock will be completed during the fourth quarter of 2006. The Company now has 10 full service offices, three loan production offices and a corporate office located in seven counties in north Georgia.

Don Boggus, the Company's President, stated: "We are very pleased with our second quarter performance and, in particular, our 128% increase in net income over the second quarter of 2005. We have experienced an improvement in our net interest margin which has translated into good earnings growth. At the same time we have continued to see credit quality remain strong. At June 30, 2006 our ratio of non-performing assets to total loans and foreclosed properties was 0.58%. Our annualized net charge-offs was only 0.10% of total average loans for the first six months of 2006. We are excited and committed to continuing to build a strong community banking franchise in some of the most attractive markets in Georgia, including some of the fastest growing markets in the United States."

Crescent Banking Company is a bank holding company headquartered in Jasper, Georgia with total consolidated assets of approximately $754.1 million and consolidated shareholders' equity of $58.5 million, or $22.67 per share of common stock, as of June 30, 2006. The Company had approximately 2.6 million shares of common stock outstanding at June 30, 2006. The Company's common stock is listed on the Nasdaq Capital Market under the symbol "CSNT."

Cautionary Notice Regarding Forward-Looking Information

Certain of the statements in this press release are "forward-looking statements" for purposes of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934, and as such may involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements, including statements about the timing and the effects of the Company's community banking expansion and branch completion dates, and statements about the markets in which the Company does business, are based on information presently available to management and are subject to various risks and uncertainties, including, without limitation, those described herein and in the Company's Annual Report on Form 10-K for the year ended December 31, 2005 under the captions "Special Cautionary Notice Regarding Forward-Looking Statements and Risk Factors," and in the Company's other SEC reports and filings, which include updated and additional risk factors that you should consider. This press release should be read in conjunction with the Company's financial statements and related notes filed with the SEC, including, without limitation, the financial statements and notes set forth in the Company's Quarterly Report on Form 10-Q for the period ended June 30, 2006, which we presently expect will be filed with the SEC by August 14, 2006. You should not place undue reliance on forward-looking statements, since the statements speak only as of the date that they are made. The Company has no obligation and does not undertake to publicly update, revise or correct any of the forward-looking statements after the date of this press release, or after the respective dates on which such statements otherwise are made, whether as a result of new information, future events or otherwise.

Contact Information

  • Contact:
    CRESCENT BANKING COMPANY
    P.O. Box 668
    7 Caring Way
    Jasper, GA 30143
    (678) 454-2266
    (800) 872-7941
    Fax (678) 454-2282