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<B><FONT SIZE=4><P ALIGN="CENTER">SECURITIES AND EXCHANGE COMMISSION</P>


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</FONT><FONT SIZE=4><P ALIGN="CENTER">WASHINGTON, D.C.  20549</P>


</FONT><FONT SIZE=2><P ALIGN="CENTER"></P>


</FONT><FONT SIZE=5><P ALIGN="CENTER">Form 8-K</P>


</FONT><FONT SIZE=2><P ALIGN="CENTER"></P>


<P ALIGN="CENTER">CURRENT REPORT</P>


</B><P ALIGN="CENTER"></P>


<P ALIGN="CENTER">Pursuant to Section 13 or 15(d) of the </P>


<P ALIGN="CENTER">Securities Exchange Act of 1934</P>


<P ALIGN="CENTER"></P>


<P ALIGN="CENTER">&nbsp;</P>


<P ALIGN="CENTER">Date of Report (Date of earliest event reported) June 28, 2005</P>


<P ALIGN="CENTER"></P>


<P ALIGN="CENTER">&nbsp;</P>


<B><P ALIGN="CENTER">Crescent Financial Corporation</P>


</B><P ALIGN="CENTER">______________________________________________________________________________</P>


<P ALIGN="CENTER">(Exact name of Registrant as specified in its charter)</P>


<P ALIGN="CENTER"></P>


<P ALIGN="CENTER">&nbsp;</P>


<B><P ALIGN="CENTER">North Carolina                             000-32951                                         52-2259050</P>


</B><P ALIGN="CENTER">______________________________________________________________________________</P>


<P ALIGN="CENTER">(State or other jurisdiction                  (Commission File No.)            (IRS Employer Identification</P>


<P ALIGN="CENTER">of incorporation)                                                                                  number)</P>





<P>&nbsp;</P>


<B><P ALIGN="CENTER">1005 HIGH HOUSE ROAD, CARY, NC 27513</P>


</B><P ALIGN="CENTER">______________________________________________________________________________</P>


<P ALIGN="CENTER">(Address of principal executive offices)</P>





<P>&nbsp;</P>


<P ALIGN="CENTER">Registrant's telephone number, including area code <B>(919) 460-7770</P>





<P>&nbsp;</P>


<P ALIGN="CENTER">Not Applicable</P>


</B><P ALIGN="CENTER">______________________________________________________________________________</P>


<P ALIGN="CENTER">(Former address of principal executive offices)</P>


<P ALIGN="CENTER"></P><DIR>


<DIR>





<P>Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: <BR>


&nbsp; </P><DIR>


<DIR>





<P>[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) </P>


<P>[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) </P>


<P>[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) </P>


<P>[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</P>


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<P>Item&nbsp;1.01 &#9;ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT</P>


</B><P>&nbsp;</P>


<P>On June 28, 2005, the Board of Directors of Crescent Financial Corporation (the "Registrant") took formal action to approve amendments to the Crescent Financial Corporation 1999 Incentive Stock Option Plan (the "Plan") increasing the number of shares authorized for issuance upon the exercise of stock options granted under the Plan.  The amendments increased the number of shares eligible for issuance under the Plan by 100,000 shares.  </P>





<P>The amendments to the Plan were approved by the Registrant's shareholders at the Registrant's annual meeting of shareholders on May 3, 2005.  </P>





<P>Copies of the amended Plan, as adopted by the Registrant's Board of Directors on June 28, 2005, are attached hereto as Exhibit 99.1 and incorporated by reference herein.   </P>


<P>&nbsp;</P>


<B><P>Item&nbsp;9.01 &#9;Financial Statements and Exhibits</B> </P>


</FONT><P>&nbsp;</P>


<FONT SIZE=2><P>(c)&nbsp;&nbsp;&nbsp;&nbsp;Exhibits. </P>


<P>&nbsp;</P>


<P>The following exhibits are filed herewith: </P>


<P>&nbsp;</P></FONT>


<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=626>


<TR><TD WIDTH="16%" VALIGN="BOTTOM">


<U><FONT SIZE=2><P>EXHIBIT&nbsp;NO</U>.</FONT></TD>


<TD WIDTH="5%" VALIGN="BOTTOM">


<FONT SIZE=2><P>&nbsp;&nbsp;</FONT></TD>


<TD WIDTH="80%" VALIGN="BOTTOM">


<U><FONT SIZE=2><P>DESCRIPTION OF EXHIBIT</U></FONT></TD>


</TR>


<TR><TD WIDTH="16%" VALIGN="MIDDLE" HEIGHT=5><P></P></TD>


<TD WIDTH="84%" VALIGN="MIDDLE" COLSPAN=2 HEIGHT=5><P></P></TD>


</TR>


<TR><TD WIDTH="16%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="CENTER">99.1</FONT></TD>


<TD WIDTH="5%" VALIGN="BOTTOM">


<FONT SIZE=2><P>&nbsp;&nbsp;</FONT></TD>


<TD WIDTH="80%" VALIGN="BOTTOM">


<FONT SIZE=2><P>Crescent Financial Corporation 1999 Incentive Stock Option Plan</FONT></TD>


</TR>


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<FONT SIZE=2>


<P>&nbsp;</P>


<P>This Current Report on Form 8-K (including information included or incorporated by reference herein) may contain, among other things, certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, (i) statements regarding certain of Registrant's goals and expectations with respect to earnings, income per share, revenue, expenses and the growth rate in such items, as well as other measures of economic performance, including statements relating to estimates of credit quality trends, and (ii) statements preceded by, followed by or that include the words &quot;may,&quot; &quot;could,&quot; &quot;should,&quot; &quot;would,&quot; &quot;believe,&quot; &quot;anticipate,&quot; &quot;estimate,&quot; &quot;expect,&quot; &quot;intend,&quot; &quot;plan,&quot; &quot;projects,&quot; &quot;outlook&quot; or similar expressions. These statements are based upon the current belief and expectations of Registrant's management and are subject to significant risks and uncertainties that are subject to change based on various factors (many of which are beyond Registrant's control). </P>





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<B><P ALIGN="CENTER">SIGNATURES</P>


</B><P ALIGN="CENTER"></P>


<P ALIGN="CENTER">&nbsp;</P>


<P>Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>





</FONT><B><P>&nbsp;</P>


<FONT SIZE=2><P>&#9;&#9;&#9;&#9;&#9;CRESCENT FINANCIAL CORPORATION</P>


</B></FONT>


<FONT SIZE=2><P>&nbsp;</P>


<P>&nbsp;</P>


<P>&#9;&#9;&#9;&#9;&#9;By: &#9;_<U>/s/ Michael G. Carlton</U>______________</P>


<P>&#9;&#9;&#9;&#9;&#9;      &#9;Michael G. Carlton</P>


<P>&#9;&#9;&#9;&#9;&#9;&#9; President and Chief Executive Officer</P>





<P>&nbsp;</P>


<P>&nbsp;</P>


<P>Dated:  June 29, 2005</P>





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</FONT><B><U><P ALIGN="CENTER">EXHIBIT INDEX</P>


</B></U><FONT SIZE=2><P ALIGN="CENTER"></P>


<P ALIGN="CENTER">&nbsp;</P>


<P>&nbsp;</P></FONT>


<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=492>


<TR><TD WIDTH="23%" VALIGN="TOP">


<B><FONT SIZE=2><P ALIGN="CENTER">Exhibit</P>


<U><P ALIGN="CENTER">Number</B></U></FONT></TD>


<TD WIDTH="77%" VALIGN="TOP">


<B><U><FONT SIZE=2><P ALIGN="CENTER"></P>


<P ALIGN="CENTER">Description of Exhibit</B></U></FONT></TD>


</TR>


<TR><TD WIDTH="23%" VALIGN="TOP">&nbsp;</TD>


<TD WIDTH="77%" VALIGN="TOP">&nbsp;</TD>


</TR>


<TR><TD WIDTH="23%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="CENTER">99.1</FONT></TD>


<TD WIDTH="77%" VALIGN="TOP">


<FONT SIZE=2><P>Crescent Financial Corporation 1999 Incentive Stock Option Plan</FONT></TD>


</TR>


<TR><TD WIDTH="23%" VALIGN="TOP">&nbsp;</TD>


<TD WIDTH="77%" VALIGN="TOP">&nbsp;</TD>


</TR>


<TR><TD WIDTH="23%" VALIGN="TOP">&nbsp;</TD>


<TD WIDTH="77%" VALIGN="TOP">&nbsp;</TD>


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[{"type": "8-K", "sequence": "1", "filename": "rrd84167.htm", "secsgml_size_bytes": 8209}]
{"company-data": {"conformed-name": "CRESCENT FINANCIAL CORP", "cik": "0001143921", "assigned-sic": "6035", "irs-number": "562259050", "state-of-incorporation": "NC", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-32951", "film-number": "05925888"}, "business-address": {"street1": "1005 HIGH HOUSE ROAD", "city": "CARY", "state": "NC", "zip": "27513", "phone": "9194607770"}, "mail-address": {"street1": "P O BOX 5809", "city": "CARY", "state": "NC", "zip": "275125809"}}
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.  20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) June 28, 2005
Crescent Financial Corporation
______________________________________________________________________________
(Exact name of Registrant as specified in its charter)
North Carolina                             000-32951                                         52-2259050
______________________________________________________________________________
(State or other jurisdiction                  (Commission File No.)            (IRS Employer Identification
of incorporation)                                                                                  number)
1005 HIGH HOUSE ROAD, CARY, NC 27513
______________________________________________________________________________
(Address of principal executive offices)
Registrant's telephone number, including area code
(919) 460-7770
Not Applicable
______________________________________________________________________________
(Former address of principal executive offices)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 1.01 	ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT
On June 28, 2005, the Board of Directors of Crescent Financial Corporation (the "Registrant") took formal action to approve amendments to the Crescent Financial Corporation 1999 Incentive Stock Option Plan (the "Plan") increasing the number of shares authorized for issuance upon the exercise of stock options granted under the Plan.  The amendments increased the number of shares eligible for issuance under the Plan by 100,000 shares.
The amendments to the Plan were approved by the Registrant's shareholders at the Registrant's annual meeting of shareholders on May 3, 2005.
Copies of the amended Plan, as adopted by the Registrant's Board of Directors on June 28, 2005, are attached hereto as Exhibit 99.1 and incorporated by reference herein.
Item 9.01 	Financial Statements and Exhibits
(c)    Exhibits.
The following exhibits are filed herewith:
EXHIBIT NO
.
DESCRIPTION OF EXHIBIT
99.1
Crescent Financial Corporation 1999 Incentive Stock Option Plan
This Current Report on Form 8-K (including information included or incorporated by reference herein) may contain, among other things, certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, (i) statements regarding certain of Registrant's goals and expectations with respect to earnings, income per share, revenue, expenses and the growth rate in such items, as well as other measures of economic performance, including statements relating to estimates of credit quality trends, and (ii) statements preceded by, followed by or that include the words "may," "could," "should," "would," "believe," "anticipate," "estimate," "expect," "intend," "plan," "projects," "outlook" or similar expressions. These statements are based upon the current belief and expectations of Registrant's management and are subject to significant risks and uncertainties that are subject to change based on various factors (many of which are beyond Registrant's control).
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
CRESCENT FINANCIAL CORPORATION
By: 	_
/s/ Michael G. Carlton
______________
Michael G. Carlton
President and Chief Executive Officer
Dated:  June 29, 2005
EXHIBIT INDEX
Exhibit
Number
Description of Exhibit
99.1
Crescent Financial Corporation 1999 Incentive Stock Option Plan