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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>As filed with the Securities and Exchange
Commission on May 4, 2012.&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0; text-align: right"><B>SEC File No. 333- </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION<BR>
Washington, D.C. 20549 </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FORM S-1</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OF 1933</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;<BR STYLE="mso-special-character: line-break">
</B></P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CRESCENT FINANCIAL BANCSHARES,
INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Exact name of registrant as specified in
its charter)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 34%; text-autospace: none; font-size: 10pt; font-weight: bold; text-align: center">Delaware</TD>
    <TD STYLE="width: 33%; text-autospace: none; font-size: 10pt; font-weight: bold; text-align: center">6022</TD>
    <TD STYLE="width: 33%; text-autospace: none; font-size: 10pt; font-weight: bold; text-align: center">45-2915089</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><I>(State or jurisdiction of</I></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><I>incorporation or organization)</I></P></TD>
    <TD STYLE="text-autospace: none; font-size: 10pt; font-style: italic; text-align: center">(Primary Standard Industrial <BR> Classification Code Number)</TD>
    <TD STYLE="text-autospace: none; font-size: 10pt; font-style: italic; text-align: center">(I.R.S. Employer Identification No.)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>3600 Glenwood Avenue, Suite 300</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Raleigh, North Carolina 27612</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0"><B>(919) 659-9000</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><I>(Address, including zip code, and telephone
number, including area code, of registrant&rsquo;s principal executive offices)</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Jonathan Hornaday</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Corporate Secretary </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>3600 Glenwood Avenue, Suite 300</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Raleigh, North Carolina 27612</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0"><B>(919) 659-9000</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><I>(Name, address, including zip code, and
telephone number, including area code, of agent for service)</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>Copies of all communications, including
communications sent to agent for service, should be sent to:</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Kenneth L. Henderson, Esq.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Bryan Cave LLP</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>1290 Avenue of the Americas </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>New York, New York 10104</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Tel (212) 541-2000 </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Fax (212) 541-4630</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>Approximate date of commencement of proposed
sale to the public:</B> As soon as practicable after the effective date of this Registration Statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If any of the securities being registered
on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933 check the
following box: <FONT STYLE="font-family: Wingdings">x</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If this Form is filed to register additional
securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities
Act registration statement number of the earlier effective registration statement for the same offering. <FONT STYLE="font-family: Wingdings">&uml;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If this Form is a post-effective amendment
filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement
number of the earlier effective registration statement for the same offering. <FONT STYLE="font-family: Wingdings">&uml;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If this Form is a post-effective amendment
filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement
number of the earlier effective registration statement for the same offering. <FONT STYLE="font-family: Wingdings">&uml;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Indicate by check mark whether the registrant
is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions
of &ldquo;large accelerated filer,&rdquo; &ldquo;accelerated filer&rdquo; and &ldquo;smaller reporting company&rdquo; in Rule 12b-2
of the Exchange Act. (Check one)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; text-autospace: none; font-size: 10pt">Large accelerated filer <FONT STYLE="font-family: Wingdings">&uml;</FONT></TD>
    <TD STYLE="width: 50%; text-autospace: none; font-size: 10pt">Accelerated filer <FONT STYLE="font-family: Wingdings">&uml;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-autospace: none; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Non-accelerated filer <FONT STYLE="font-family: Wingdings">&uml;</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(Do not check if a smaller reporting company)</P></TD>
    <TD STYLE="text-autospace: none; font-size: 10pt">Smaller reporting company <FONT STYLE="font-family: Wingdings">x</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CALCULATION OF REGISTRATION FEE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 9pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">Title&nbsp;of&nbsp;Each&nbsp;Class&nbsp;of&nbsp;Securities&nbsp;to&nbsp;be<BR>
    Registered</FONT></TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">Amount&nbsp;to&nbsp;be<BR>
    Registered</FONT></TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">Proposed&nbsp;Maximum<BR>
    Offering&nbsp;Price&nbsp;Per&nbsp;Unit&nbsp;(1)</FONT></TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">Proposed&nbsp;Maximum<BR>
    Aggregate&nbsp;Offering&nbsp;Price</FONT></TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">Amount&nbsp;of<BR>
    Registration&nbsp;Fee</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 32%; text-align: left"><FONT STYLE="font-size: 8pt">Fixed Rate Cumulative Perpetual Preferred Stock, Series
    A (2)</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 12%; text-align: right"><FONT STYLE="font-size: 8pt">24,900
                                                                                           shares</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="width: 16%; text-align: right"><FONT STYLE="font-size: 8pt">1,000.00</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="width: 16%; text-align: right"><FONT STYLE="font-size: 8pt">24,900,000.00</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="width: 12%; text-align: right"><FONT STYLE="font-size: 8pt">2,853.54</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">(3)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">Depositary Shares (2)</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt">Total</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 8pt">24,900
                                                                                                                   shares</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 8pt">1,000.00</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 8pt">24,900,000.00</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 8pt">2,853.54</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(1)</TD><TD>Represents the liquidation preference amount per share of the preferred stock being registered for resale (the &ldquo;Series
A Preferred Stock&rdquo;), which we sold to the United States Department of the Treasury (&ldquo;Treasury&rdquo;) pursuant to Treasury&rsquo;s
Troubled Asset Relief Program Capital Purchase Program.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(2)</TD><TD>In the event Treasury requests that we deposit the shares of Series A Preferred Stock with a depositary pursuant to a depositary
arrangement, depositary shares evidencing fractional shares of the Series A Preferred Stock may be sold pursuant to this registration
statement in lieu of whole shares of Series A Preferred Stock.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(3)</TD><TD>Calculated in accordance with Rule 457(a).</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>The registrant hereby amends this registration
statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment
which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of
the Securities Act of 1933 or until the registration statement shall become effective on such date as the Commission, acting pursuant
to said Section 8(a), may determine.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>The information in this prospectus is not complete and may
be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission
is effective. This prospectus is not an offer to sell these securities and is not soliciting an offer to buy these securities in
any state where the offer or sale is not permitted.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SUBJECT TO COMPLETION, DATED MAY 4, 2012</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>PROSPECTUS </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><IMG SRC="logo1.jpg" ALT=""></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CRESCENT FINANCIAL BANCSHARES, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>24,900 Shares of Fixed Rate Cumulative
Perpetual Preferred Stock, Series A,<BR>
Liquidation Preference Amount $1,000 Per Share<BR>
(or Depositary Shares Evidencing Fractional Interests in Such Shares)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;Crescent Financial Bancshares, Inc.
is the holding company for Crescent State Bank, a North Carolina state bank headquartered in Raleigh, North Carolina.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">This prospectus relates to the potential
resale from time to time by selling securityholders of 24,900 shares of our Fixed Rate Cumulative Perpetual Preferred Stock, Series
A, liquidation preference amount $1,000 per share, or, in the event such shares are deposited with a depositary as described in
this prospectus, depositary shares evidencing fractional interests in such shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The shares of the Fixed Rate Cumulative
Perpetual Preferred Stock, Series A, or CFC Preferred Stock, were originally issued by our predecessor, Crescent Financial Corporation,
on January 9, 2009 to the United States Department of the Treasury, which we refer to as Treasury or the initial selling securityholder,
as part of Treasury&rsquo;s Troubled Asset Relief Program Capital Purchase Program in a transaction exempt from the registration
requirements of the Securities Act of 1933, as amended, or the Securities Act. On November 15, 2011, in connection with a reincorporation
of Crescent Financial Corporation, we assumed the obligations and responsibilities of our predecessor with respect to Treasury
and issued to Treasury 24,900 shares of our Fixed Rate Cumulative Perpetual Preferred Stock, Series A, or Series A Preferred Stock,
in exchange for the previously issued 24,900 shares of CFC Preferred Stock, also in a transaction exempt from the registration
requirements of the Securities Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Dividends on the shares of Series A Preferred
Stock are payable quarterly in arrears on <FONT STYLE="font-family: Times New Roman, Times, Serif">each February 15, May 15, August
15 and November 15. The initial dividend rate is 5% per annum for the first five years, and will increase to 9% per annum on and
after February 15, 2014 if not otherwise redeemed earlier for cash by us. We deferred dividends on the </FONT>Series A <FONT STYLE="font-family: Times New Roman, Times, Serif">Preferred
Stock in the first, second, third and fourth quarters of 2011 and in the first quarter of 2012. On April 12, 2012, we received
approval from the Federal Reserve Bank of Richmond to (i) pay in full all amounts in arrears due to dividends on the Series A
Preferred Stock deferred during 2011 and the first quarter of 2012, and (ii) the dividend payment on Series A Preferred Stock
due during the second quarter of 2012. We may redeem the</FONT> Series A<FONT STYLE="font-family: Times New Roman, Times, Serif">
Preferred Stock, at any time, in whole or in part, at our option, subject to prior approval by the appropriate federal banking
agency, for cash, for a redemption price equal to </FONT>the per share liquidation amount of $1,000, <FONT STYLE="font-family: Times New Roman, Times, Serif">plus
any accrued and unpaid dividends to but excluding the date fixed for redemption.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The initial selling securityholder and its
successors, including transferees, to which we collectively refer as the selling securityholders, may offer the Series A Preferred
Stock from time to time directly or through underwriters, broker-dealers or agents and in one or more public or private transactions
and at fixed prices, prevailing market prices, at prices related to prevailing market prices or at negotiated prices. If these
securities are sold through underwriters, broker-dealers or agents, the selling securityholders will be responsible for underwriting
discounts or commissions or agents&rsquo; commissions. We will not receive any proceeds from the sale of securities by the selling
securityholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Series A Preferred Stock is not listed
on any exchange, and, unless requested by the initial selling securityholder, we do not intend to list the Series A Preferred Stock
on any exchange. Our common stock is traded on the Nasdaq Global Market under the symbol &ldquo;CRFN.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>You should read this prospectus and any
supplements carefully before you invest. Investing in our Series A Preferred Stock involves a high degree of risk. You should carefully
consider the risk factors set forth in the section entitled &ldquo;Risk Factors,&rdquo; beginning on page 3 of this prospectus,
and elsewhere in the documents we file with the Securities and Exchange Commission, or SEC, that are incorporated in this prospectus
by reference, including our Annual Report on Form 10-K for the year ended December 31, 2011.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>Neither the SEC nor any state securities
commission has approved or disapproved our securities or determined that this prospectus is truthful or complete. Any representation
to the contrary is a criminal offense.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>These securities will not be savings
accounts, deposits or other obligations of any bank and are not insured or guaranteed by the Federal Deposit Insurance Corporation,
the Deposit Insurance Fund or any other governmental agency or instrumentality.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0">The date of this prospectus
is ________________, 2012</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>TABLE OF CONTENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 92%; text-autospace: none">&nbsp;</TD>
    <TD STYLE="width: 8%; border-bottom: windowtext 1pt solid; text-autospace: none; text-align: center">Page</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="text-autospace: none">About This Prospectus</TD>
    <TD STYLE="text-autospace: none; text-align: center">ii</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-autospace: none">Where You Can Find More Information</TD>
    <TD STYLE="text-autospace: none; text-align: center">iii</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="text-autospace: none">Incorporation of Certain Information by Reference</TD>
    <TD STYLE="text-autospace: none; text-align: center">iii</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-autospace: none">Note Regarding Forward Looking Statements</TD>
    <TD STYLE="text-autospace: none; text-align: center">iv</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="text-autospace: none">Prospectus Summary</TD>
    <TD STYLE="text-autospace: none; text-align: center">1</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-autospace: none">Risk Factors</TD>
    <TD STYLE="text-autospace: none; text-align: center">3</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="text-autospace: none">Use of Proceeds</TD>
    <TD STYLE="text-autospace: none; text-align: center">7</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-autospace: none">Description of Series A Preferred Stock</TD>
    <TD STYLE="text-autospace: none; text-align: center">8</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="text-autospace: none">Description of Depositary Shares</TD>
    <TD STYLE="text-autospace: none; text-align: center">11</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-autospace: none">Plan of Distribution</TD>
    <TD STYLE="text-autospace: none; text-align: center">12</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="text-autospace: none">Selling Securityholders</TD>
    <TD STYLE="text-autospace: none; text-align: center">13</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-autospace: none">Legal Matters</TD>
    <TD STYLE="text-autospace: none; text-align: center">14</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="text-autospace: none">Experts</TD>
    <TD STYLE="text-autospace: none; text-align: center">14</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ABOUT THIS PROSPECTUS </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Unless the
context requires otherwise, in this prospectus, we use the terms &ldquo;we,&rdquo; &ldquo;us,&rdquo; &ldquo;our,&rdquo; &ldquo;Crescent&rdquo;
and the &ldquo;Company&rdquo; to refer to Crescent Financial Bancshares, Inc. The term &ldquo;Bank&rdquo; refers to our wholly-owned
subsidiary, Crescent State Bank</FONT> <FONT STYLE="font-size: 10pt">(unless the context indicates another meaning).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">This prospectus is part of a registration
statement we filed with the SEC, under which the selling securityholders may, from time to time, offer and sell, in one or more
offerings, the securities described in this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We may provide a prospectus supplement containing
specific information about the terms of a particular offering by the selling securityholders. The prospectus supplement may add
to, update or change information in this prospectus. If the information in this prospectus is inconsistent with a prospectus supplement,
you should rely on the information in that prospectus supplement. You should read both this prospectus and any applicable prospectus
supplements together with the additional information described under the heading &ldquo;Where You Can Find More Information.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our SEC registration statement containing
this prospectus, including exhibits, provides additional information about us and the securities offered under this prospectus.
The registration statement can be read at the SEC&rsquo;s website or at the SEC&rsquo;s offices. The SEC&rsquo;s website and street
addresses are provided under the heading &ldquo;Where You Can Find More Information.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">You should rely only on the information
contained in or incorporated by reference in this prospectus or a supplement to this prospectus. We have not, and the selling securityholders
have not, authorized anyone to provide you with different information. This document may be used only in jurisdictions where offers
and sales of these securities are permitted. You should not assume that information contained in this prospectus, in any supplement
to this prospectus, or in any document incorporated by reference is accurate as of any date other than the date on the front page
of the document that contains the information, regardless of when this prospectus is delivered or when any sale of our Series A
Preferred Stock occurs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>Where
You Can Find More Information</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">This prospectus is a part of a registration
statement on Form S-1 that we filed with the SEC under the Securities Act. This prospectus does not contain all the information
set forth in the registration statement, certain parts of which are omitted in accordance with the rules and regulations of the
SEC. For further information with respect to us and the securities offered by this prospectus, reference is made to the registration
statement, including the exhibits to the registration statement and the documents incorporated by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We file annual, quarterly and current reports,
proxy statements and other information with the SEC. Our filings are available to the public over the Internet at the SEC&rsquo;s
website at http://www.sec.gov. You may also read and copy any document we file with the SEC at its Public Reference Room at 100
F Street, N.E., Washington, D.C. 20549. You can also obtain copies of the documents at prescribed rates by writing to the Public
Reference Room of the SEC at 100 F Street, N.E., Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 for further information
on the operation of the Public Reference Room. Our SEC filings are also available on our website at http://www.crescentstatebank.com
(the other information contained in, or that can be accessed through, our website is not a part of this prospectus or any prospectus
supplement).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in"><FONT STYLE="text-transform: uppercase"><B>Incorporation
of Certain Information by Reference</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We &ldquo;incorporate by reference&rdquo;
into this prospectus the information we file with the SEC, which means that we can disclose important information to you by referring
you to those documents. The information incorporated by reference is an important part of this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We incorporate by reference the documents
listed below (except Items 2.02 and 7.01 of any Current Report on Form 8-K listed below, unless otherwise indicated in the Form
8-K):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>our Annual Report on Form 10-K for the fiscal year ended December 31, 2011, filed on March 30, 2012;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>our Current Reports on Form 8-K filed with the SEC since December 31, 2011; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD>our Definitive Proxy on Schedule 14A filed on April 5, 2012.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Any statement contained in a document incorporated
by reference in this prospectus shall be deemed to be modified or superseded for purposes of this prospectus to the extent that
a statement contained in this prospectus modifies or supersedes the statement. Any statement so modified or superseded shall not
be deemed to constitute a part of this prospectus except as so modified or superseded. The information contained in this prospectus
should be read together with the information in the documents incorporated in this prospectus by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We will provide to each person, including
any beneficial owner, to whom this prospectus is delivered these incorporated documents without charge, excluding any exhibits
to these documents unless the exhibit is specifically incorporated by reference in such document, upon request received in writing
or by telephone at the following address:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">Jonathan Hornaday</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">Corporate Secretary<BR>
Crescent Financial Bancshares, Inc.<BR>
3600 Glenwood Avenue, Suite 300<BR>
Raleigh, North Carolina 27612<BR>
(919) 659-9000</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">These incorporated documents
may also be available on our website at www.crescentstatebank.com. Except for incorporated documents, information contained on
our website is not a prospectus and does not constitute part of this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTE REGARDING FORWARD-LOOKING STATEMENTS
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We make certain forward-looking statements
in this prospectus, any prospectus supplement, and in the documents incorporated by reference into this prospectus that are based
upon our current expectations and projections about current events. You should not rely on forward-looking statements in this prospectus,
any prospectus supplement, or the documents incorporated by reference. We intend these forward-looking statements to be covered
by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995,
and we are including this statement for purposes of these safe harbor provisions. You can identify these statements from our use
of the words &ldquo;may,&rdquo; &ldquo;will,&rdquo; &ldquo;should,&rdquo; &ldquo;could,&rdquo; &ldquo;would,&rdquo; &ldquo;plan,&rdquo;
&ldquo;potential,&rdquo; &ldquo;estimate,&rdquo; &ldquo;project,&rdquo; &ldquo;believe,&rdquo; &ldquo;intend,&rdquo; &ldquo;anticipate,&rdquo;
&ldquo;expect,&rdquo; &ldquo;target&rdquo; and similar expressions. Examples of forward-looking statements include, but are not
limited to, estimates with respect to the financial condition, expected or anticipated revenue, results of operations and business
of the Company that are subject to various factors which could cause actual results to differ materially from these estimates.
These factors include, but are not limited to, general economic conditions, changes in interest rates, deposit flows, loan demand,
real estate values, and competition; changes in accounting principles, policies, or guidelines; changes in legislation or regulations;
and other economic, competitive, governmental, regulatory, and technological factors affecting the Company&rsquo;s operations,
pricing, products and services.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">You should also consider carefully the statements
under &ldquo;Risk Factors&rdquo; and other sections of this prospectus, any prospectus supplement, and the documents we incorporate
by reference, including our Annual Report on Form 10-K for the year ended December 31, 2011, which address additional facts that
could cause our actual results to differ from those set forth in the forward-looking statements. We caution investors not to place
significant reliance on the forward-looking statements contained in this prospectus, any prospectus supplement, and the documents
we incorporate by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Because of these and other uncertainties,
our actual future results, performance or achievements, or industry results, may be materially different from the results contemplated
by these forward-looking statements. In addition, our past results of operations do not necessarily indicate our future results.
You should not place undue reliance on any forward-looking statement, which speak only as of the date they were made. We do not
intend to update these forward-looking statements, even though our situation may change in the future, unless we are obligated
to do so under the federal securities laws. We qualify all of our forward-looking statements by these cautionary statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PROSPECTUS SUMMARY </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>This summary highlights selected information
about Crescent and a general description of the securities that may be offered for resale by the selling securityholders. This
summary is not complete and does not contain all of the information that may be important to you. For a more complete understanding
of us and the terms of the securities offered by the selling securityholders, you should carefully read this entire prospectus,
including the &ldquo;Risk Factors&rdquo; section, any applicable prospectus supplement for these securities and the other documents
we refer to and incorporate by reference. In particular, we incorporate important business and financial information into this
prospectus by reference. </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"><B>Crescent
Financial Bancshares, Inc. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We are a holding company incorporated under
the laws of Delaware on March 28, 2011 and a successor company to Crescent Financial Corporation (&ldquo;CFC&rdquo;) through a
reincorporation of CFC which occurred on November 15, 2011 (the &ldquo;Reincorporation&rdquo;). In the Reincorporation, all shares
of CFC&rsquo;s outstanding common stock, $1.00 par value, were converted to shares of our common stock, $0.001 par value. CFC was
a bank holding company incorporated under the laws of North Carolina on June 29, 2001. We operate for the primary purpose of serving
as the holding company for the Bank.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Bank was incorporated on December 22,
1998 as a North Carolina-chartered commercial bank and opened for business on December 31, 1998. The Bank operates fifteen (15)
full service branch offices in the communities of Cary (2), Apex, Clayton, Holly Springs, Pinehurst, Raleigh (3), Southern Pines,
Sanford, Garner, Wilmington (2) and Knightdale, North Carolina.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Bank is a community bank focused on being
the bank of choice for businesses, business owners, and professionals in the markets we serve. We are accomplishing this by creating
mutually beneficial and robust relationships with our customers and positively impacting our communities. In addition to offering
standard banking products and services, we build relationships with our customers by understanding their personal and business
challenges and goals, and providing tangible solutions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We offer a broad range of banking services,
including checking and savings accounts, money market accounts, individual retirement accounts, certificates of deposit, commercial,
consumer and personal loans, mortgage banking services and other associated financial services. These banking services are offered
through our branch network and certain services are offered through our online banking platform. We believe that we operate in
attractive banking markets with long-term growth potential.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">For a complete description of our business,
financial condition, results of operations and other important information, we refer you to our filings with the SEC that are incorporated
by reference in this prospectus, including our Annual Report on Form 10-K for the year ended December 31, 2011. For instructions
on how to find copies of these documents, see &ldquo;Where You Can Find More Information&rdquo;.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our principal office is located at 3600 Glenwood
Avenue, Suite 300, Raleigh, North Carolina 27612 and our telephone number is (919) 659-9000. Our website address is at www.crescentstatebank.com.
Information on our website, or that can be accessed through our website, is not incorporated by reference into this prospectus
and does not constitute part of this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Securities Being Offered</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On January 9, 2009, our predecessor, CFC,
issued 24,900 shares of its CFC Preferred Stock pursuant to a Letter Agreement dated January 9, 2009, and the related Securities
Purchase Agreement &ndash; Standard Terms, between CFC and Treasury (the &ldquo;Securities Purchase Agreement&rdquo;), as part
of Treasury&rsquo;s Troubled Asset Relief Program Capital Purchase Program. The issuance of the CFC Preferred Stock was completed
in a private placement to Treasury exempt from the registration requirements of the Securities Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On November 15, 2011, in connection with
the Reincorporation, we, CFC and Treasury entered into a letter agreement (the &ldquo;TARP Letter Agreement&rdquo;) pursuant to
which we assumed CFC&rsquo;s covenants, agreements, and conditions under the Securities Purchase Agreement. Additionally, we issued
to Treasury 24,900 shares of our Series A Preferred Stock in exchange for the previously issued 24,900 shares of CFC Preferred
Stock. The terms of the Series A Preferred Stock are substantially identical to the previously outstanding CFC Preferred Stock,
and the issuance of the Series A Preferred Stock was also exempt from the registration requirements of the Securities Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We are required under the terms of the Securities
Purchase Agreement to register for resale the shares of the Series A Preferred Stock. This registration includes depositary shares,
representing fractional interests in the Series A Preferred Stock, which may be resold pursuant to this prospectus in lieu of whole
shares of Series A Preferred Stock in the event Treasury requests that we deposit the Series A Preferred Stock held by Treasury
with a depositary under a depositary arrangement entered into in accordance with the Securities Purchase Agreement. See &ldquo;Description
of Depositary Shares.&rdquo; The terms of the Series A Preferred Stock are described under &ldquo;Description of Series A Preferred
Stock.&rdquo; The Securities Purchase Agreement and the TARP Letter Agreement are attached as Exhibit 10.1 to our Current Report
on Form 8-K filed on January 14, 2009 and Exhibit 10.1 to our Current Report on Form 8-K filed on November 17, 2011, respectively,
and incorporated into this prospectus by reference. See &ldquo;Where You Can Find More Information.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>RISK FACTORS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Ownership of the Series A Preferred Stock
involves certain risks. You should consider carefully the risks and uncertainties described in, or incorporated by reference in,
this prospectus, including the risks described below and under the caption &ldquo;Risk Factors&rdquo; in our Annual Report on Form
10-K for the year ended December 31, 2011, and in any other reports that we file with the SEC, along with the other information
included or incorporated by reference in this prospectus, in evaluating an investment in the Series A Preferred Stock. The information
included or incorporated by reference in this prospectus may be amended, supplemented or superseded from time to time by other
reports we file with the SEC in the future. For a description of these reports and documents, and information about where you can
find them, see the sections entitled &ldquo;Where You Can Find More Information&rdquo; and &ldquo;Incorporation of Certain Information
by Reference&rdquo; in this prospectus. </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>The risks and uncertainties described
in this prospectus and the documents incorporated by reference in this prospectus are not the only ones facing us. Additional risks
and uncertainties that we do not presently know about or that we currently believe are not material may also adversely affect our
business. If any of the risks and uncertainties described in this prospectus or the documents incorporated by reference herein
actually occur, our business, financial condition and results of operations could be adversely affected in a material way. This
could cause the value of the Series A Preferred Stock to decline, and you may lose part or all of your investment.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in"><B>Risks Related to
the Series A Preferred Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>The Series A Preferred Stock is equity
and is subordinated to all of our existing and future indebtedness; and the Series A Preferred Stock places no limitations on the
amount of indebtedness we and our subsidiaries may incur in the future.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Shares of the Series A Preferred Stock are
equity interests in the Company and do not constitute indebtedness. As such, the Series A Preferred Stock, like our common stock,
ranks junior to all existing and future indebtedness and other non-equity claims on the Company with respect to assets available
to satisfy claims on the Company, including in a liquidation of the Company. Additionally, unlike indebtedness, where principal
and interest would customarily be payable on specified due dates, in the case of perpetual preferred stock like the Series A Preferred
Stock, there is no stated maturity date (although the Series A Preferred Stock is subject to redemption at our option) and dividends
are payable only if, when and as authorized and declared by our board of directors and depend on, among other matters, our historical
and projected results of operations, liquidity, cash flows, capital levels, financial condition, debt service requirements and
other cash needs, financing covenants, applicable state law, federal and state regulatory prohibitions and other restrictions and
any other factors our board of directors deems relevant at the time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The shares of Series A Preferred Stock are
not savings accounts, deposits or other obligations of any depository institution and are not insured or guaranteed by the Federal
Deposit Insurance Corporation (&ldquo;FDIC&rdquo;) or any other governmental agency or instrumentality. Furthermore, the Company
is a legal entity that is separate and distinct from its subsidiaries, and its subsidiaries have no obligation, contingent or otherwise,
to make any payments in respect of the Series A Preferred Stock or to make funds available therefor. Because the Company is a holding
company that maintains only limited cash at that level, its ability to pay dividends on, and redeem at its option, the Series A
Preferred Stock will be highly dependent upon the receipt of dividends, fees and other amounts from the Bank and its other subsidiaries,
which, in turn, will be highly dependent upon the historical and projected results of operations, liquidity, cash flows and financial
condition of its subsidiaries. In addition, the right of the Company to participate in any distribution of assets of any of its
subsidiaries upon their respective liquidation or reorganization will be subject to the prior claims of the creditors (including
any depositors) and preferred equity holders of the applicable subsidiary, except to the extent that the Company is a creditor,
and is recognized as a creditor, of such subsidiary. Accordingly, the holders of the Series A Preferred Stock will be structurally
subordinated to all existing and future obligations and preferred equity of the Company&rsquo;s subsidiaries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition, the terms of the Series A Preferred
Stock do not limit the amount of debt or other obligations we or our subsidiaries may incur in the future. Accordingly, we and
our subsidiaries may incur substantial amounts of additional debt and other obligations that will rank senior to the Series A Preferred
Stock or to which the Series A Preferred Stock will be structurally subordinated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>We are highly dependent on dividends
and other amounts from our subsidiaries in order to pay dividends on, and redeem at our option, the Series A Preferred Stock, which
is subject to various prohibitions and other restrictions.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">There are various legal and
regulatory prohibitions and other restrictions on the ability of the Bank and any other depository institution subsidiary of
the Company to pay dividends, extend credit or otherwise transfer funds to the Company or affiliates. Such dividend payments
are subject to regulatory tests, generally based on current and retained earnings of such subsidiaries and other factors,
and, will require regulatory approval in the future. Dividend payments to the Company from the Bank may also be prohibited if
such payments would impair the capital of the Bank and in certain other cases. In addition, regulatory rules limit the
aggregate amount of a depository institution&rsquo;s loans to, and investments in, any single affiliate in varying thresholds
and may prevent the Company from borrowing from the Bank and require any permitted borrowings to be collateralized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Company also is subject to various legal
and regulatory policies and requirements impacting the Company&rsquo;s ability to pay dividends on, or redeem, the Series A Preferred
Stock. Dividends on the shares of Series A Preferred Stock are payable quarterly in arrears on <FONT STYLE="font-family: Times New Roman, Times, Serif">each
February 15, May 15, August 15 and November 15. The initial dividend rate is 5% per annum for the first five years, and will increase
to 9% per annum on and after February 15, 2014 if not otherwise redeemed earlier by the Company. The Company deferred dividends
on the </FONT>Series A <FONT STYLE="font-family: Times New Roman, Times, Serif">Preferred Stock in the first, second, third and
fourth quarters of 2011 and in the first quarter of 2012. On April 12, 2012, the Company received approval from the Federal Reserve
Bank of Richmond to (i) pay in full all amounts in arrears due to dividends on the Series A Preferred Stock deferred during 2011
and the first quarter of 2012, and (ii) the dividend payment on Series A Preferred Stock due during the second quarter of 2012.</FONT>
All future dividend payments will require prior approval from the Board of Governors of the Federal Reserve System (the &ldquo;Federal
Reserve&rdquo;). As a matter of policy, the Federal Reserve may restrict or prohibit the payment of dividends on Series A Preferred
Stock if (i) the Company&rsquo;s net income available to stockholders for the past four quarters, net of dividends previously paid
during that period, is not sufficient to fully fund the dividends; (ii) the Company&rsquo;s prospective rate of earnings retention
is not consistent with its capital needs and overall current and prospective financial condition; (iii) the Company will not meet,
or is in danger of not meeting, its minimum regulatory capital ratios; or (iv) the Federal Reserve otherwise determines that the
payment of dividends would constitute an unsafe or unsound practice. In addition, the Federal Reserve also will require the Company
to consult with it prior to increasing dividends. Recent and future regulatory developments may result in additional restrictions
on the Company&rsquo;s ability to pay dividends. Furthermore, under the Federal Reserve&rsquo;s capital regulations, in order to
ensure Tier 1 capital treatment for the Series A Preferred Stock, the Company&rsquo;s redemption of any of the Series A Preferred
Stock must be subject to prior regulatory approval.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>An active trading market for the Series
A Preferred Stock may not develop</B> <B>or be maintained.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Series A Preferred Stock is not currently
listed on any securities exchange or available for quotation on any national quotation system, and we do not anticipate listing
the Series A Preferred Stock. There can be no assurance that an active trading market for the Series A Preferred Stock will develop
or, if developed, will be maintained. If an active market is not developed or sustained, the market value and liquidity of the
Series A Preferred Stock may be materially and adversely affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>The Series A Preferred Stock may be junior
in rights and preferences to our future preferred stock.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Subject to approval by the holders of at
least 66 2/3% of the shares of Series A Preferred Stock then outstanding, voting as a separate class, we may issue preferred stock
in the future the terms of which are expressly senior to the Series A Preferred Stock. The terms of any such future preferred stock
expressly senior to the Series A Preferred Stock may prohibit or otherwise restrict dividend payments on the Series A Preferred
Stock. For example, the terms of any such senior preferred stock may provide that, unless full dividends for all of our outstanding
preferred stock senior to the Series A Preferred Stock have been paid for the relevant periods, no dividends will be paid on the
Series A Preferred Stock, and no shares of the Series A Preferred Stock may be repurchased, redeemed, or otherwise acquired by
us. In addition, in the event of our liquidation, dissolution or winding-up, the terms of any such senior preferred stock would
likely prohibit us from making any payments on the Series A Preferred Stock until all amounts due to holders of such senior preferred
stock are paid in full.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>Holders of the Series A Preferred Stock
have limited voting rights.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Unless and until we are in arrears on our
dividend payments on the Series A Preferred Stock for six quarterly periods, whether or not consecutive, the holders of the Series
A Preferred Stock will have no voting rights except with respect to certain fundamental changes in the terms of the Series A Preferred
Stock and certain other matters and except as may be required by applicable law. If dividends on the Series A Preferred Stock are
not paid in full for six quarterly periods, whether or not consecutive, the total number of positions on our board of directors
will automatically increase by two and the holders of the Series A Preferred Stock, acting as a class with any other parity securities
having similar voting rights, will have the right to elect two individuals to serve in the new director positions. This right and
the terms of such directors will end when we have paid in full all accrued and unpaid dividends for all past dividend periods.
See &ldquo;Description of Series A Preferred Stock&mdash;Voting.&rdquo; Based on the current number of members of our board of
directors (12), directors elected by the holders of the common stock would have a controlling majority of the board and would be
able to take any action approved by them notwithstanding any objection by the directors elected by the holders of the Series A
Preferred Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>We are subject to extensive regulation,
and ownership of the Series A Preferred Stock may have regulatory implications for holders thereof. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We are subject to extensive federal and
state banking laws, including the Bank Holding Company Act of 1956, as amended (the &ldquo;BHCA&rdquo;), and federal and state
banking regulations, that impact the rights and obligations of owners of the Series A Preferred Stock, including, for example,
our ability to declare and pay dividends on, and to redeem, the Series A Preferred Stock. Although the Company does not believe
the Series A Preferred Stock is considered &ldquo;voting securities&rdquo; currently, if they were to become voting securities
for the purposes of the BHCA, whether because the Company has missed six dividend payments and holders of the Series A Preferred
Stock have the right to elect directors as a result, or for other reasons, a holder of 25% or more of the Series A Preferred Stock,
or a holder of a lesser percentage of our Series A Preferred Stock that is presumed by the Federal Reserve to exercise a &ldquo;controlling
influence&rdquo; over us, may become subject to regulation under the BHCA. In addition, if the Series A Preferred Stock become
&ldquo;voting securities&rdquo;, then (a) any bank holding company or foreign bank that is subject to the BHCA may need Federal
Reserve approval to acquire or retain more than 5% of the then outstanding Series A Preferred Stock, and (b) any holder (or group
of holders acting in concert, as determined under the BHCA and its accompanying regulations) will need regulatory approval to acquire
or retain 10% or more of the Series A Preferred Stock. A holder or group of holders may also be deemed to control us if they own
one-third or more of our total equity, both voting and non-voting, aggregating all shares held by the investor across all classes
of stock. Holders of the Series A Preferred Stock should consult their own counsel with regard to regulatory implications.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>If we redeem the Series A Preferred Stock,
you may be unable to reinvest the redemption proceeds in a comparable investment at the same or greater rate of return. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We have the right to redeem the Series A
Preferred Stock, in whole or in part, at our option at any time, subject to prior regulatory approval. If we choose to redeem the
Series A Preferred Stock in part, we have been informed by the Depository Trust Company that it is their current practice to determine
by lot the amount of the interest of each direct participant (through which beneficial owners hold their interest) to be redeemed.
If we choose to redeem the Series A Preferred Stock, we are likely to do so if we are able to obtain a lower cost of capital. If
prevailing interest rates are relatively low if or when we choose to redeem the Series A Preferred Stock, you generally may not
be able to reinvest the redemption proceeds in a comparable investment at the same or greater rate of return. Furthermore, if we
redeem the Series A Preferred Stock in part, the liquidity of the Series A Preferred Stock that remains outstanding may be limited.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>If we do not redeem the Series A Preferred
Stock prior to February 15, 2014, the cost of this capital to us will increase substantially and could have a material adverse
effect on our financial condition.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We have the right to redeem the Series A
Preferred Stock, in whole or in part, at our option at any time. If we do not redeem the Series A Preferred Stock prior to February
15, 2014, the cost of this capital to us will increase substantially on and after that date, with the dividend rate increasing
from 5.0% per annum (approximately $1.2 million annually) to 9.0% per annum (approximately $2.2 million annually). See &ldquo;Description
of Series A Preferred Stock&mdash;Redemption.&rdquo; Depending on our financial condition at the time, this increase in the annual
dividend rate on the Series A Preferred Stock could have a material adverse effect on our financial condition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>Treasury is a federal agency and your
ability to bring a claim against Treasury under the federal securities laws in connection with a purchase of the Series A Preferred
Stock may be limited. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The doctrine of sovereign immunity, as limited
by the Federal Tort Claims Act (the &ldquo;FTCA&rdquo;), provides that claims may not be brought against the United States of America
or any agency or instrumentality thereof unless specifically permitted by act of Congress. The FTCA bars claims for fraud or misrepresentation.
At least one federal court, in a case involving a federal agency, has held that the United States may assert its sovereign immunity
to claims brought under the federal securities laws. In addition, Treasury and its officers, agents, and employees are exempt from
liability for any violation or alleged violation of the anti-fraud provisions of Section 10(b) of the Securities Exchange Act of
1934, as amended (the &ldquo;Exchange Act&rdquo;) by virtue of Section 3(c) thereof. Accordingly, any attempt to assert such a
claim against the officers, agents or employees of Treasury for a violation of the Securities Act or the Exchange Act resulting
from an alleged material misstatement in or material omission from this prospectus, any supplement to this prospectus, the registration
statement of which this prospectus or the documents incorporated by reference in this prospectus are a part or resulting from any
other act or omission in connection with the offering of the Series A Preferred Stock by Treasury would likely be barred.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>USE OF PROCEEDS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">All securities sold pursuant to this prospectus
will be sold by the selling securityholders and we will not receive the proceeds from such sales.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>DESCRIPTION OF SERIES A <FONT STYLE="font-family: Times New Roman, Times, Serif; text-transform: uppercase">Preferred
Stock</FONT></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As of the date of this prospectus, our capital
structure consists of 75,000,000 authorized shares of common stock, $0.001 par value per share, and 5,000,000 authorized shares
of preferred stock, no par value. We have designated 24,900 shares of our authorized preferred stock as &ldquo;Fixed Rate Cumulative
Perpetual Preferred Stock, Series A,&rdquo; which we refer to in this prospectus as the Series A Preferred Stock. We issued these
shares to Treasury on November 15, 2011 to replace, as a result of the Reincorporation, the previously outstanding 24,900 shares
of CFC Preferred Stock, which our predecessor issued on January 9, 2009, pursuant to Treasury&rsquo;s Troubled Asset Relief Program
Capital Purchase Program. The following is a summary of the material provisions of the Series A Preferred Stock, which are substantially
identical to the terms of the CFC Preferred Stock. The full terms of the Series A Preferred Stock are set forth in Exhibit 3(i)
to the registration statement of which this prospectus is a part and incorporated by reference herein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>Ranking</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">With respect to the payment of dividends
and the amounts to be paid upon liquidation, the Series A Preferred Stock will rank senior to our common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>Dividend</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Cumulative dividends on shares of the Series
A Preferred Stock accrue on the liquidation value of $1,000 per share at a rate of 5% per annum for the first five years following
the date of issue from January 9, 2009 to, but excluding, February 15, 2014. From and after February 15, 2014, such rate will increase
to 9% per annum, if, as and when declared by our board of directors out of funds legally available therefor. Dividends will be
payable in arrears on the 15th day of February, May, August and November of each year. Dividends will be payable to holders of
record as they appear in the stock register of the Company at the close of business on the applicable record date, which shall
be the 15th calendar day immediately preceding such dividend payment date or such other record date fixed by the board of directors
or any duly authorized committee of the board of directors that is not more than 60 nor less than 10 days prior to such dividend
payment date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Dividends on the Series A Preferred Stock
will accumulate whether or not we have earnings, whether or not there are funds legally available for the payment of such dividends
and whether or not such dividends are authorized. Accumulated but unpaid dividends on the Series A Preferred Stock shall bear interest
at the applicable dividend rate, unless and otherwise prohibited or limited by applicable law, and shall be compounded (i.e., dividends
are paid on the amount of unpaid dividends). The Series A Preferred Stock has no maturity date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">So long as any shares of Series A Preferred
Stock remain outstanding, unless all accrued and unpaid dividends for all prior dividend periods have been paid or are contemporaneously
declared and paid in full, no dividend whatsoever shall be paid or declared on our common stock or any other junior stock, other
than a dividend payable solely in common stock. We also may not purchase, redeem or otherwise acquire for consideration any shares
of our common stock or other junior stock unless we have paid in full all accrued dividends on the Series A Preferred Stock for
all prior dividend periods, other than:</P>

<P STYLE="font: 10pt Symbol; margin: 0pt 0 0pt 74.25pt; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>purchases, redemptions or other acquisitions of our common stock or any other junior stock in connection with the administration
of our employee benefit plans in the ordinary course of business and consistent with past practice;</TD></TR></TABLE>

<P STYLE="font: 10pt Symbol; margin: 0pt 0 0pt 74.25pt; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>purchases or other acquisitions by an affiliated broker-dealer solely for the purpose of market-making, stabilization or customer
facilitation transactions in common stock or any other junior stock or parity stock in the ordinary course of its business;</TD></TR></TABLE>

<P STYLE="font: 10pt Symbol; margin: 0pt 0 0pt 74.25pt; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>purchases by an affiliated broker-dealer for resale pursuant to our offering of capital stock that is underwritten by an affiliated
broker-dealer;</TD></TR></TABLE>

<P STYLE="font: 10pt Symbol; margin: 0pt 0 0pt 74.25pt; text-indent: -0.25in">&nbsp;</P>

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<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>any dividends or distributions of rights or junior stock in connection with any stockholders&rsquo; rights plan or repurchases
of rights pursuant to any stockholders&rsquo; rights plan;</TD></TR></TABLE>

<P STYLE="font: 10pt Symbol; margin: 0pt 0 0pt 74.25pt; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>acquisition of record ownership of common stock or any other junior stock or parity stock for the beneficial ownership of any
person other than the Company or any of its subsidiaries, including as trustee or custodian; and</TD></TR></TABLE>

<P STYLE="font: 10pt Symbol; margin: 0pt 0 0pt 74.25pt; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the exchange or conversion of common stock or any other junior stock for or into other junior stock or of parity stock for
or into other parity stock or junior stock but only to the extent that such acquisition is required pursuant to binding contractual
agreements entered into before January 9, 2009 or any subsequent agreement for the accelerated exercise, settlement or exchange
thereof for common stock.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On any dividend payment date for which full
dividends are not paid, or declared and funds set aside therefor, on the Series A Preferred Stock and any other parity stock, all
dividends paid or declared for payment on that dividend payment date (or, with respect to parity stock with a different dividend
payment date, on the applicable dividend date therefor falling within the dividend period related to such dividend payment date
for the Series A Preferred Stock) with respect to the Series A Preferred Stock and any other parity stock shall be declared pro
rata so that the respective amounts of such dividends declared shall bear the same ratio to each other as all accrued and unpaid
dividends per share on the shares of Series A Preferred Stock and any other parity stock payable on such dividend payment date
bear to each other.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Subject to the foregoing, such dividends
(payable in cash, stock or otherwise) as may be determined by our board of directors, or a duly authorized committee of the board,
may be declared and paid on our common stock and any other stock ranking equally with or junior to the Series A Preferred Stock
from time to time out of any funds legally available for such payment, and the Series A Preferred Stock shall not be entitled to
participate in any such dividend.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>Rights Upon Liquidation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In the event that we voluntarily or involuntarily
liquidate, dissolve or wind up our affairs, holders of Series A Preferred Stock will be entitled to receive an amount per share,
referred to as the total liquidation amount, equal to the fixed liquidation amount of $1,000 per share, plus any accrued and unpaid
dividends, whether or not declared, to the date of payment. Holders of the Series A Preferred Stock will be entitled to receive
the total liquidation amount out of our assets that are available for distribution to stockholders, after payment or provision
for payment of our debts and other liabilities but before any distribution of assets is made to holders of our common stock or
any other shares ranking, as to that distribution, junior to the Series A Preferred Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If our assets are not sufficient to pay
the total liquidation amount in full to all holders of Series A Preferred Stock and all holders of any shares of outstanding parity
stock, the amounts paid to the holders of Series A Preferred Stock and other shares of parity stock will be paid pro rata in accordance
with the respective total liquidation amount for those holders. If the total liquidation amount per share of Series A Preferred
Stock has been paid in full to all holders of Series A Preferred Stock and other shares of parity stock, the holders of our common
stock or any other shares ranking, as to such distribution, junior to the Series A Preferred Stock will be entitled to receive
all of our remaining assets according to their respective rights and preferences.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">For purposes of the liquidation rights,
neither the sale, conveyance, exchange or transfer of all or substantially all of our property and assets, nor the consolidation
or merger by us with or into any other corporation or by another corporation with or into us, will constitute a liquidation, dissolution
or winding-up of our affairs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>Redemption</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We, at our option, upon not less than 30
nor more than 60 days&rsquo; written notice, may redeem the Series A Preferred Stock, in whole or in part, at any time or from
time to time, <FONT STYLE="font-family: Times New Roman, Times, Serif">subject to prior approval by the appropriate federal banking
agency</FONT>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In any redemption, the redemption price
is an amount equal to the per share liquidation amount of $1,000, plus accrued and unpaid dividends, if any, thereon to but excluding,
the date fixed for redemption.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Holders of Series A Preferred Stock to be
redeemed shall surrender such Series A Preferred Stock at the place designated in the notice of redemption and shall be entitled
to the redemption price upon such surrender. If notice of redemption of any Series A Preferred Stock has been given and if the
funds necessary for such redemption have been set apart, then from and after the redemption date dividends will cease to accumulate
on such Series A Preferred Stock, such stock shall no longer be deemed outstanding and all rights of the holders of such Series
A Preferred Stock will terminate, except the right to receive the redemption price.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Notice of redemption will be given to the
respective holders of record of the Series A Preferred Stock to be redeemed at their respective addresses as they appear on the
books of the Company. Any notice properly sent shall be presumed to have been duly given, whether or not the holder receives such
notice, but failure duly to give such notice by mail, or any defect in such notice or in the mailing thereof, to any holder shall
not affect the validity of the proceedings for the redemption of any other shares of Series A Preferred Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Series A Preferred Stock does not have
a stated maturity and is not subject to any sinking fund or mandatory redemption provisions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If fewer than all of the outstanding shares
of Series A Preferred Stock are to be redeemed, the shares to be redeemed will be selected either pro rata from the holders of
record of shares of Series A Preferred Stock in proportion to the number of shares held by those holders or in such other manner
as our board of directors or a duly authorized committee thereof may determine to be fair and equitable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Shares of Series A Preferred Stock that
are redeemed, repurchased or otherwise acquired by us will revert to authorized but unissued shares of our preferred stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>Conversion</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Shares of Series A Preferred Stock are not
convertible.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>Voting</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The holders of Series A Preferred Stock
will have no voting rights, except as otherwise from time to time required by applicable law and voting group rights on matters
as set forth below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&bull; any authorization or issuance of
shares ranking senior to the Series A Preferred Stock;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&bull; any amendment to the rights of the
Series A Preferred Stock; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&bull; any merger, exchange or similar transaction
which would adversely affect the rights of the Series A Preferred Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Any class vote held on the above matters
entitles each share of Series A Preferred Stock to one vote and requires approval of at least 66 2/3% of the shares of Series A
Preferred Stock outstanding at such time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If dividends on the Series A Preferred Stock
are not paid in full for six dividend periods, whether or not consecutive, the authorized number of directors of the Company shall
automatically be increased by two and the holders of the Series A Preferred Stock shall have the right, with holders of shares
of any stock ranking on parity with the Series A Preferred Stock, voting together as a group, to elect two directors to fill such
newly created directorships at the Company&rsquo;s next annual meeting of stockholders (or at a special meeting called for that
purpose prior to such next annual meeting) and at each subsequent annual meeting of stockholders until all accrued and unpaid dividends
for all past dividend periods have been declared and paid in full at which time such right shall terminate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>Securities Are Not Insured by the FDIC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Investments in the Series A Preferred Stock
or any of our equity or debt securities will not qualify as deposits or savings accounts and will not be insured or guaranteed
by the FDIC or any other governmental agency and are subject to investment risk, including the possible loss of principal.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>DESCRIPTION OF DEPOSITARY SHARES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Pursuant to the Securities
Purchase Agreement and the TARP Letter Agreement, we have agreed, if requested by Treasury, to enter into a depositary arrangement
pursuant to which the shares of Series A Preferred Stock may be deposited and depositary shares, each representing a fraction of
a share of Series A Preferred Stock as specified by Treasury, may be issued. The shares of Series A Preferred Stock would be held
by a depositary (expected to be a bank or trust company) reasonably acceptable to Treasury. If we enter into such a depositary
arrangement, the selling securityholders would be offering depositary shares, each representing a fraction of a share of Series
A Preferred Stock, instead of actual whole shares of Series A Preferred Stock. The actual terms of any such depositary arrangement
would be set forth in a deposit agreement to which we would be a party.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PLAN OF DISTRIBUTION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The selling securityholders and their successors,
including their transferees, may sell all or a portion of the Series A Preferred Stock owned by them and offered by this prospectus
from time to time directly to purchasers or through one or more underwriters, broker-dealers or agents, who may receive compensation
in the form of discounts, concessions or commissions from the selling securityholders or the purchasers of the securities. These
discounts, concessions or commissions as to any particular underwriter, broker-dealer or agent may be in excess of those customary
in the types of transactions involved.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Series A Preferred Stock may be sold
in one or more transactions at fixed prices, at prevailing market prices at the time of sale, at varying prices determined at the
time of sale or at negotiated prices. These sales may be effected in transactions, which may involve crosses or block transactions.
The selling securityholders may use any one or more of the following methods when selling shares:</P>

<P STYLE="font: 10pt Symbol; margin: 0pt 0 0pt 78.75pt; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>on any national securities exchange or quotation service on which our Series A Preferred Stock may be listed or quoted at the
time of sale;</TD></TR></TABLE>

<P STYLE="font: 10pt Symbol; margin: 0pt 0 0pt 78.75pt; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>in the over-the-counter market;</TD></TR></TABLE>

<P STYLE="font: 10pt Symbol; margin: 0pt 0 0pt 78.75pt; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>in transactions otherwise than on these exchanges or services or in the over-the-counter market;</TD></TR></TABLE>

<P STYLE="font: 10pt Symbol; margin: 0pt 0 0pt 78.75pt; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>through the writing of options, whether the options are listed on an options exchange or otherwise;</TD></TR></TABLE>

<P STYLE="font: 10pt Symbol; margin: 0pt 0 0pt 78.75pt; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>a combination of any such methods of sale; or</TD></TR></TABLE>

<P STYLE="font: 10pt Symbol; margin: 0pt 0 0pt 78.75pt; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>any other method permitted pursuant to applicable law.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition, any securities that qualify
for sale pursuant to Rule 144 under the Securities Act may be sold under Rule 144 rather than pursuant to this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In connection with the sale of the Series
A Preferred Stock<B> </B>or otherwise, the selling securityholders may loan or pledge the Series A Preferred Stock to broker-dealers
that in turn may sell these securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The aggregate proceeds to the selling securityholders
from the sale of the Series A Preferred Stock will be the purchase price of the securities less discounts and commissions, if any.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In effecting sales, broker-dealers or agents
engaged by the selling securityholders may arrange for other broker-dealers to participate. Broker-dealers or agents may receive
commissions, discounts or concessions from the selling securityholders in amounts to be negotiated immediately prior to the sale.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In offering the securities covered by this
prospectus, the selling securityholders and any broker-dealers who execute sales for the selling securityholders may be deemed
to be &ldquo;underwriters&rdquo; within the meaning of Section 2(a)(11) of the Securities Act in connection with such sales. Any
profits realized by the selling securityholders and the compensation of any broker-dealer may be deemed to be underwriting discounts
and commissions. Selling securityholders who are &ldquo;underwriters&rdquo; within the meaning of Section 2(a)(11) of the Securities
Act will be subject to the prospectus delivery requirements of the Securities Act and may be subject to certain statutory and regulatory
liabilities, including liabilities imposed pursuant to Sections 11, 12 and 17 of the Securities Act and Rule 10b-5 under the Exchange
Act. We will make copies of this prospectus available to the selling securityholders for the purpose of satisfying the prospectus
delivery requirements of the Securities Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In order to comply with the securities laws
of certain states, if applicable, the Series A Preferred Stock must be sold in such jurisdictions only through registered or licensed
brokers or dealers. In addition, in certain states the securities may not be sold unless they have been registered or qualified
for sale in the applicable state or an exemption from the registration or qualification requirement is available and is complied
with.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">At the time a particular offer of securities
is made, if required, a prospectus supplement will set forth the number of shares of Series A Preferred Stock being offered and
the terms of the offering, including the name of any underwriter, dealer or agent, the purchase price paid by any underwriter,
any discount, commission and other item constituting compensation, any discount, commission or concession allowed or reallowed
or paid to any dealer, and the proposed selling price to the public.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We do not intend to apply for listing of
the Series A Preferred Stock on any securities exchange or for inclusion of the Series A Preferred Stock in any automated quotation
system unless we are requested to do so by Treasury. No assurance can be given as to the liquidity of the trading market, if any,
for the Series A Preferred Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We have agreed to indemnify the selling
securityholders against certain liabilities, including certain liabilities under the Securities Act. We have also agreed, among
other things, to bear substantially all expenses (other than underwriting discounts and selling commissions) in connection with
the registration and sale of the securities covered by this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SELLING SECURITYHOLDERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As described above, on January 9, 2009,
our predecessor, CFC, issued 24,900 shares of CFC Preferred Stock to Treasury, which is the initial selling securityholder under
this prospectus, in a transaction exempt from the registration requirements of the Securities Act. On November 15, 2011, in connection
with the Reincorporation, we issued to Treasury 24,900 shares of our Series A Preferred Stock in exchange for the previously issued
24,900 shares of CFC Preferred Stock, also in a transaction exempt from the registration requirements of the Securities Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The initial selling securityholder, or its
successors, including transferees, may from time to time offer and sell, pursuant to this prospectus or a supplement to this prospectus,
any or all of 24,900 shares of our Series A Preferred Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">For purposes of this prospectus, we have
assumed that, after completion of the offering, no shares of our Series A Preferred Stock will be held by the selling securityholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Beneficial ownership is determined in accordance
with the rules of the SEC and includes voting or investment power with respect to the securities. To our knowledge, the initial
selling securityholder has sole voting and investment power with respect to our Series A Preferred Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We do not know when or in what amounts the
selling securityholders may offer shares of the Series A Preferred Stock for sale. The selling securityholders might not sell any
or all of the securities offered by this prospectus. Because the selling securityholders may offer all or some of the securities
pursuant to this offering, and because currently no sale of our Series A Preferred Stock is subject to any agreements, arrangements
or understandings, we cannot estimate the number of shares of our Series A Preferred Stock that will be held by the selling securityholders
after completion of the offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Other than with respect to the acquisition
of the securities, the initial selling securityholder has not had a material relationship with us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Information about the selling securityholders
may change over time and changed information will be set forth in supplements to this prospectus if and when necessary.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>LEGAL MATTERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The validity of the securities being offered
by this prospectus has been passed upon for us by Bryan Cave LLP, New York, New York.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>EXPERTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our consolidated financial statements as
of December 31, 2011 (Successor) and 2010 (Predecessor), and for the period from November 19, 2011 through December 31, 2011 (Successor),
the period from January 1, 2011 through November 18, 2011 (Predecessor) and the years ended December 31, 2010 and 2009 (Predecessor)
incorporated in this prospectus by reference from the Company&rsquo;s 2011 Annual Report on Form 10-K have been audited by Dixon
Hughes Goodman LLP, an independent registered public accounting firm, as stated in their report, which is incorporated by reference
herein, and has been so incorporated in reliance upon the report of such firm given upon the authority of said firm as experts
in accounting and auditing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CRESCENT FINANCIAL BANCSHARES, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>24,900 Shares of Fixed Rate Cumulative
Perpetual Preferred Stock, Series A,</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Liquidation Preference Amount $1,000
Per Share</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(or Depositary Shares Evidencing Fractional
Interests in Such Shares)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PROSPECTUS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<!-- Field: Rule-Page --><DIV ALIGN="CENTER" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>_______________, 2012</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PART II</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>INFORMATION NOT REQUIRED IN PROSPECTUS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.75in; text-align: left"><B>Item 13.</B></TD><TD STYLE="text-align: justify"><B>Other Expenses of Issuance and Distribution.</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-indent: 0.5in">The following table sets forth the fees
and expenses payable by us in connection with the issuance and distribution of the securities being registered. None of the following
expenses are payable by the selling securityholder. All of the amounts shown are estimates, except for the SEC registration fee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 87%; text-align: left">SEC Registration Fee</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">2,853.54</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Accounting Fees and Expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,500.00</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Legal Fees and Expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">20,000.00</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Printing Expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,800.00</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Miscellaneous Fees and Expenses</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">2,500.00</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt">Total</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">31,653.54</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.75in; text-align: left"><B>Item 14.</B></TD><TD STYLE="text-align: justify"><B>Indemnification of Directors and Officers.</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Section 145 of the Delaware General Corporation
Law provides that a corporation may indemnify directors and officers, as well as other employees and individuals, against expenses
(including attorneys&rsquo; fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by such person
in connection with any threatened, pending or completed actions, suits or proceedings in which such person is made a party by reason
of such person being or having been a director, officer, employee or agent to the registrant. The Delaware General Corporation
Law provides that Section 145 is not exclusive of other rights to which those seeking indemnification may be entitled under any
certificate of incorporation, bylaws, agreement, vote of stockholders or disinterested directors or otherwise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The registrant&rsquo;s amended and restated
certificate of incorporation provides for indemnification by the registrant of its directors to the fullest extent permitted by
the Delaware General Corporation Law. The Registrant&rsquo;s amended and restated bylaws provide for indemnification by the registrant
of its officers, directors and certain third parties acting on the registrant&rsquo;s behalf to the fullest extent permitted by
the Delaware General Corporation Law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">At present, there is no pending litigation
or proceeding involving a director or officer of the registrant as to which indemnification is being sought from the registrant,
nor is the registrant aware of any threatened litigation that may result in claims for indemnification from the registrant by any
officer or director.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Further, the registrant may purchase and
maintain insurance on behalf of any person who is or was a director, officer, employee, or agent of the registrant or is or was
serving at the request of the registrant as a director, officer, employee or agent of another corporation, partnership, joint venture,
trust or other enterprise against any liability asserted against him and incurred by him in any such capacity or arising out of
his status as such, whether or not the registrant would have the power to indemnify him against such liability under Section 145
of the Delaware General Corporation Law. The registrant has purchased director and officer liability insurance that, subject to
certain limitations, insures its directors and officers against liabilities in connection with the performance of their duties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.75in; text-align: left"><B>Item 16.</B></TD><TD STYLE="text-align: justify"><B>Exhibits.</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following exhibits are filed with or incorporated by reference
into this registration statement:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="width: 12%; text-autospace: none; font-weight: bold; border-bottom: Black 1pt solid">Exhibit No.</TD>
    <TD NOWRAP STYLE="width: 1%; text-autospace: none; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 87%; text-autospace: none; font-weight: bold; border-bottom: Black 1pt solid">Description</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">3(i)</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Amended and Restated Certificate of Incorporation of Crescent Financial Bancshares, Inc. (8)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">3(ii)</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Amended and Restated Bylaws of Crescent Financial Bancshares, Inc. (8)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">4(i)</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Letter Agreement, dated as of January 9, 2009, between Crescent Financial Corporation and the U.S. Department of the Treasury (17)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">4(ii)</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">TARP Letter Agreement, dated November 15, 2011, by and among Crescent Financial Bancshares, Inc., Crescent Financial Corporation, and the U.S. Department of the Treasury (9)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">5</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Opinion of Bryan Cave LLP*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(i)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">1999 Incentive Stock Option Plan (1)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(ii)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">1999 Non-statutory Stock Option Plan for Directors, as amended (1)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(iii)</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Amended and Restated Declaration of Trust of Crescent Financial Capital Trust I, dated as of August 27, 2003 (2)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(iv)</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Indenture, dated as of August 27, 2003, between Crescent Financial Corporation and Wells Fargo Bank, N.A. (2)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(v)</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Form of Junior Subordinated Debenture (2)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(vi)</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Guarantee Agreement, dated as of August 27, 2003, between Crescent Financial Corporation and Wells Fargo Bank, N.A. (2)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(vii)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Second Amended Salary Continuation Agreement, dated September 10, 2008, by and between Crescent State Bank and Michael G. Carlton (7)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(viii)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Amended Salary Continuation Agreement, dated October 24, 2007, by and between Crescent State Bank and Bruce W. Elder (4)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(ix)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Amended Salary Continuation Agreement, dated October 24, 2007, by and between Crescent State Bank and Thomas E. Holder, Jr. (4)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(x)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Endorsement Split Dollar Agreement by and between Crescent State Bank and Michael G. Carlton, dated October 1, 2003 (2)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xi)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Endorsement Split Dollar Agreement by and between Crescent State Bank and Bruce W. Elder, dated October 1, 2003 (2)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xii)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Endorsement Split Dollar Agreement by and between Crescent State Bank and Thomas E. Holder, Jr., dated October 1, 2003 (2)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xiii)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Crescent State Bank Directors&rsquo; Compensation Plan, dated as of February 22, 2005 (3)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xiv)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Amended Salary Continuation Agreement, dated September 10, 2008, by and between Crescent State Bank and Ray D. Vaughn (7)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 12%; text-autospace: none">10(xv)+</TD>
    <TD STYLE="width: 1%; text-autospace: none">&nbsp;</TD>
    <TD STYLE="width: 87%; text-autospace: none">Amended Salary Continuation Agreement, dated December 29, 2008, by and between Crescent State Bank and W. Keith Betts (5)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xvi)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Endorsement Split Dollar Agreement by and between Crescent State Bank and Ray D. Vaughn, dated October 24, 2007(4)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xvii)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Endorsement Split Dollar Agreement by and between Crescent State Bank and W. Keith Betts, dated October 24, 2007(4)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xviii)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">2006 Omnibus Stock Ownership and Long Term Incentive Plan (6)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xix)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Executive Employment Agreement, dated February 23, 2011, by and among Bruce W. Elder, Crescent Financial Corporation, and Crescent State Bank (10)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xx)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Executive Employment Agreement, dated February 23, 2011, by and between Thomas E. Holder, Jr. and Crescent State Bank (10)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xxi)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Amendment to Amended Salary Continuation Agreement, dated February 23, 2011, by and between Michael G. Carlton and Crescent State Bank (10)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xxii)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Amendment to Amended Salary Continuation Agreement, dated February 23, 2011, by and between Bruce W. Elder and Crescent State Bank (10)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xxiii)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Amendment to Amended Salary Continuation Agreement, dated February 23, 2011, by and between Thomas E. Holder, Jr. and Crescent State Bank (10)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xxiv)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Amendment to Amended Salary Continuation Agreement, dated February 23, 2011, by and between Ray D. Vaughn and Crescent State Bank (10)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xxv)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Amendment to Amended Salary Continuation Agreement, dated February 23, 2011, by and between W. Keith Betts and Crescent State Bank (10)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xxvi)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Executive Employment Agreement, dated February 23, 2011, by and among Michael G. Carlton, Crescent Financial Corporation, and Crescent State Bank (12)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xxvii)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Executive Employment Agreement, dated February 23, 2011, by and between W. Keith Betts and Crescent State Bank (12)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xxviii)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Executive Employment Agreement, dated February 23, 2011, by and among Ray D. Vaughn and Crescent State Bank (12)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xxix)</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Investment Agreement, dated February 23, 2011 by and among Crescent Financial Corporation, Crescent State Bank and Piedmont Community Bank Holdings, Inc. (12)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xxx)</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Amendment to Investment Agreement, dated as of March 24, 2011 (13)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xxxi)</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Amendment No. 2 to Investment Agreement, dated as of November 2, 2011 (13)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xxxii)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Indemnification Agreement, dated February 23, 2011 by and among Michael G. Carlton, Crescent Financial Corporation and Crescent State Bank (12)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xxxiii)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Letter Amendment to Employment Agreement for Michael G. Carlton dated November 2, 2011 (11)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 12%; text-autospace: none">10(xxxiv)+</TD>
    <TD STYLE="width: 1%; text-autospace: none">&nbsp;</TD>
    <TD STYLE="width: 87%; text-autospace: none">Amendment to Endorsement Split Dollar Agreement by and between Crescent State Bank and Michael G. Carlton dated November 2, 2011 (11)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xxxv)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Amendment to Endorsement Split Dollar Agreement by and between Crescent State Bank and Bruce W. Elder dated November 2, 2011 (11)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xxxvi)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Amendment to Endorsement Split Dollar Agreement by and between Crescent State Bank and Thomas E. Holder, Jr. dated November 2, 2011 (11)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xxxvii)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Amendment No. 1 to Amended and Restated Directors&rsquo; Compensation Plan, dated as of November 14, 2011 (14)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xxxviii)</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">ARRA Letter Agreement, dated November 15, 2011, by and between Crescent Financial Bancshares, Inc. and the U.S. Department of the Treasury (9)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xxxix)</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Registration Rights Agreement, dated November 18, 2011, by and between Crescent Financial Bancshares, Inc. and Piedmont Community Bank Holdings, Inc. (15)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xl)</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Tax Sharing Agreement, effective as of December 22, 2011, between Piedmont Community Bank Holdings, Inc. and Crescent Financial Bancshares, Inc. (16)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xli)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Separation and Release Agreement, dated as of January 30, 2012, by and among Crescent Financial Bancshares, Inc., Crescent State Bank and Michael G. Carlton (18)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xlii)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Separation and Release Agreement, dated as of January 27, 2012, by and between Crescent State Bank and Thomas E. Holder, Jr. (18)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xliii)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Separation and Release Agreement, dated as of February 13, 2012, by and between Crescent State Bank and Ray D. Vaughn (18)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xliv)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Separation and Release Agreement, dated as of March 15, 2012, by and among Crescent Financial Bancshares, Inc., Crescent State Bank and Bruce W. Elder (18)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xlv)</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Affiliate Services Agreement, entered into March 28, 2012, by and among Crescent Financial Bancshares, Inc., Crescent State Bank,&nbsp; Piedmont Community Bank Holdings, Inc. and VantageSouth Bank (18)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">21</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Subsidiaries (18)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">23(i)</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Consent of Dixon Hughes Goodman LLP*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">23(ii)</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Consent of Bryan Cave LLP (included as part of Exhibit 5)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: -4.5pt; text-autospace: none">&nbsp;</TD>
    <TD STYLE="padding-right: -4.5pt; text-autospace: none">&nbsp;</TD>
    <TD STYLE="padding-right: -4.5pt; text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: -4.5pt; text-autospace: none">24</TD>
    <TD STYLE="padding-right: -4.5pt; text-autospace: none">&nbsp;</TD>
    <TD STYLE="padding-right: -4.5pt; text-autospace: none">Power of Attorney (included as part of the signature page of the registration statement on Form S-1)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">* Filed herewith.<BR>
+ Management contracts and compensatory plans or arrangement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1. Incorporated by reference from Registration Statement on
Form S-8 filed with the Securities and Exchange Commission on September 5, 2001.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">2. Incorporated by reference from Annual Report on Form 10-KSB
filed with the Securities and Exchange Commission on March 30, 2004.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">3. Incorporated by reference from Annual Report on Form 10-K
filed with the Securities and Exchange Commission on March 28, 2006.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">4. Incorporated by reference from Annual Report on Form 10-K
filed with the Securities and Exchange Commission on March 11, 2008.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">5. Incorporated by reference from Current Report on Form 8-K
filed with the Securities and Exchange Commission on December 31, 2008.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">6. Incorporated by reference from Exhibit 99.1 to the Registration
Statement on Form S-8, filed with the Securities and Exchange Commission on August 11, 2006.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">7. Incorporated by reference from Annual Report on Form 10-K
filed with the Securities and Exchange Commission on March 27, 2009.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">8. Incorporated by reference from Current Report on Form 8-K12G3
filed with the Securities and Exchange Commission on November 16, 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">9. Incorporated by reference from Current Report on Form 8-K
filed with the Securities and Exchange Commission on November 17, 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">10. Incorporated by reference from Solicitation/Recommendation
Statement on Schedule 14D-9 filed with the Securities and Exchange Commission on November 8, 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">11. Incorporated by reference from Current Report on Form 8-K
filed with the Securities and Exchange Commission on November 7, 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">12. Incorporated by reference from Annual Report on Form 10-K
filed with the Securities and Exchange Commission on March 29, 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">13. Incorporated by reference from Tender Offer Statement on
Schedule TO filed by Piedmont Community Bank Holdings, Inc. with the Securities and Exchange Commission on November 8, 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">14. Incorporated by reference from Solicitation/Recommendation
Statement on Schedule 14D-9/A filed with the Securities and Exchange Commission on November 17, 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">15. Incorporated by reference from Amendment No. 2 to Tender
Offer Statement on Schedule TO filed by Piedmont Community Bank Holdings, Inc. with the Securities and Exchange Commission on November
18, 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">16. Incorporated by reference from Current Report on Form 8-K
filed with the Securities and Exchange Commission on January 24, 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">17. Incorporated by reference from Current Report on Form 8-K
filed with the Securities and Exchange Commission on January 14, 2009.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">18. Incorporated by reference from Annual Report on Form 10-K
filed with the Securities and Exchange Commission on March 30, 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.75in; text-align: left"><B>Item 17.</B></TD><TD STYLE="text-align: justify"><B>Undertakings.</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The undersigned registrant hereby undertakes:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">(i) To include any prospectus required by
Section 10(a)(3) of the Securities Act;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">(ii) To reflect in the prospectus any facts
or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof)
which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement.
Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities
offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering
range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes
in volume and price represent no more than 20% change in the maximum aggregate offering price set forth in the &ldquo;Calculation
of Registration Fee&rdquo; table in the effective registration statement;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">(iii) To include any material information
with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such
information in the registration statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;That,
for the purpose of determining any liability under the Securities Act, each such post-effective amendment shall be deemed to be
a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall
be deemed to be the initial bona fide offering thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the
termination of the offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">(4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;That,
for the purpose of determining liability under the Securities Act to any purchaser, each prospectus filed pursuant to Rule 424(b)
as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than
prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the
date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus
that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration
statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior
to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of
the registration statement or made in any such document immediately prior to such date of first use.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">(5)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insofar
as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons
of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable.
In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred
or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding)
is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant
will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed
by the final adjudication of such issue.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in"><B>SIGNATURES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Pursuant to the requirements of the Securities
Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto
duly authorized in the City of Raleigh, State of North Carolina, on May 4, 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-autospace: none">CRESCENT FINANCIAL BANCSHARES, INC.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 55%; text-autospace: none">&nbsp;</TD>
    <TD STYLE="width: 5%; text-autospace: none">By:</TD>
    <TD STYLE="width: 40%; border-bottom: windowtext 1pt solid; text-autospace: none">/s/ Scott M. Custer</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Name: Scott M. Custer</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Title: &nbsp;&nbsp;President and Chief Executive Officer</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>POWER OF ATTORNEY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">KNOW ALL MEN BY THESE PRESENTS, that the undersigned officers
and directors of Crescent Financial Bancshares, Inc., a Delaware corporation that is filing a registration statement on Form S-1
with the Securities and Exchange Commission under the provisions of the Securities Act of 1933, as amended, hereby constitute and
appoint Scott M. Custer and Terry S. Earley, and each of them, their true and lawful attorneys-in-fact and agents, with full power
of substitution and re-substitution, for him and in his name, place and stead, in any and all capacities, to sign any or all amendments
to the registration statement, including a prospectus or an amended prospectus therein, and all other documents in connection therewith
to be filed with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full
power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises,
as fully to all interests and purposes as they might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact
and agents or either of them, or their substitute or substitutes, may lawfully do or cause to be done by virtue hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Pursuant to the requirements of the Securities
Act of 1933, this registration statement has been signed by the following persons in the capacities and on the dates indicated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 26%; border-bottom: windowtext 1pt solid; text-autospace: none; font-weight: bold; text-align: center">Signature</TD>
    <TD STYLE="width: 2%; text-autospace: none; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 53%; border-bottom: windowtext 1pt solid; text-autospace: none; font-weight: bold; text-align: center">Title</TD>
    <TD STYLE="width: 2%; text-autospace: none; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 17%; border-bottom: windowtext 1pt solid; text-autospace: none; font-weight: bold; text-align: center">Date</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; text-autospace: none">/s/ Scott M. Custer</TD>
    <TD STYLE="vertical-align: top; text-autospace: none">&nbsp;</TD>
    <TD STYLE="vertical-align: top">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Chief Executive Officer, President and Director</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(Principal Executive Officer)</P></TD>
    <TD STYLE="vertical-align: top; text-autospace: none">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-autospace: none">May 4, 2012</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-top: windowtext 1pt solid; text-autospace: none">Scott M. Custer</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: bottom; text-autospace: none">/s/ Terry S. Earley</TD>
    <TD STYLE="vertical-align: top; text-autospace: none">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-autospace: none">Chief Financial Officer and Executive Vice President <BR>
(Principal Financial Officer)</TD>
    <TD STYLE="vertical-align: top; text-autospace: none">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-autospace: none">May 4, 2012</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">Terry S. Earley</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">/s/ David B. Therit</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Principal Accounting Officer and Senior Vice President</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">May 4, 2012</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-top: windowtext 1pt solid; text-autospace: none">David B. Therit</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: windowtext 1pt solid; text-autospace: none">/s/ J. Adam Abram</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Chairman of the Board of Directors</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">May 4, 2012</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">J. Adam Abram&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">/s/ Brent D. Barringer</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Director</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">May 4, 2012</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-top: windowtext 1pt solid; text-autospace: none">Brent D. Barringer&nbsp;&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">/s/ David S. Brody</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Director</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">May 4, 2012</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-top: windowtext 1pt solid; text-autospace: none">David S. Brody&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">/s/ Alan N. Colner</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Director</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">May 4, 2012</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-top: windowtext 1pt solid; text-autospace: none">Alan N. Colner&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">/s/ Thierry Ho</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Director</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">May 4, 2012</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-top: windowtext 1pt solid; text-autospace: none">Thierry Ho&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 26%; border-bottom: windowtext 1pt solid; text-autospace: none; font-weight: bold; text-align: center">Signature</TD>
    <TD STYLE="width: 2%; text-autospace: none; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 53%; border-bottom: windowtext 1pt solid; text-autospace: none; font-weight: bold; text-align: center">Title</TD>
    <TD STYLE="width: 2%; text-autospace: none; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 17%; border-bottom: windowtext 1pt solid; text-autospace: none; font-weight: bold; text-align: center">Date</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: windowtext 1pt solid; text-autospace: none">/s/ Steven J. Lerner</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Director</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">May 4, 2012</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">Steven J. Lerner</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: windowtext 1pt solid; text-autospace: none">/s/ James A. Lucas, Jr.</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Director</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">May 4, 2012</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">James A. Lucas, Jr.</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: windowtext 1pt solid; text-autospace: none">/s/ Charles A. Paul, III</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Director</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">May 4, 2012</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">Charles A. Paul, III</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: windowtext 1pt solid; text-autospace: none">/s/ Jon S. Rufty</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Director</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">May 4, 2012</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">Jon S. Rufty</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: windowtext 1pt solid; text-autospace: none">/s/ A. Wellford Tabor</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Director</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">May 4, 2012</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">A. Wellford Tabor</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: windowtext 1pt solid; text-autospace: none">/s/ Nicolas D. Zerbib</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Director</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">May 4, 2012</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">Nicolas D. Zerbib</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>EXHIBIT INDEX</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 12%; text-autospace: none; font-weight: bold; border-bottom: Black 1pt solid">Exhibit No.</TD>
    <TD STYLE="width: 1%; text-autospace: none; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 87%; text-autospace: none; font-weight: bold; border-bottom: Black 1pt solid">Description</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;3(i)</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Amended and Restated Certificate of Incorporation of Crescent Financial Bancshares, Inc. (8)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">3(ii)</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Amended and Restated Bylaws of Crescent Financial Bancshares, Inc. (8)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">4(i)</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Letter Agreement, dated as of January 9, 2009, between Crescent Financial Corporation and the U.S. Department of the Treasury (17)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">4(ii)</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">TARP Letter Agreement, dated November 15, 2011, by and among Crescent Financial Bancshares, Inc., Crescent Financial Corporation, and the U.S. Department of the Treasury (9)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">5</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Opinion of Bryan Cave LLP*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(i)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">1999 Incentive Stock Option Plan (1)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(ii)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">1999 Non-statutory Stock Option Plan for Directors, as amended (1)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(iii)</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Amended and Restated Declaration of Trust of Crescent Financial Capital Trust I, dated as of August 27, 2003 (2)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(iv)</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Indenture, dated as of August 27, 2003, between Crescent Financial Corporation and Wells Fargo Bank, N.A. (2)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(v)</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Form of Junior Subordinated Debenture (2)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(vi)</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Guarantee Agreement, dated as of August 27, 2003, between Crescent Financial Corporation and Wells Fargo Bank, N.A. (2)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(vii)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Second Amended Salary Continuation Agreement, dated September 10, 2008, by and between Crescent State Bank and Michael G. Carlton (7)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(viii)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Amended Salary Continuation Agreement, dated October 24, 2007, by and between Crescent State Bank and Bruce W. Elder (4)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(ix)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Amended Salary Continuation Agreement, dated October 24, 2007, by and between Crescent State Bank and Thomas E. Holder, Jr. (4)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(x)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Endorsement Split Dollar Agreement by and between Crescent State Bank and Michael G. Carlton, dated October 1, 2003 (2)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xi)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Endorsement Split Dollar Agreement by and between Crescent State Bank and Bruce W. Elder, dated October 1, 2003 (2)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xii)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Endorsement Split Dollar Agreement by and between Crescent State Bank and Thomas E. Holder, Jr., dated October 1, 2003 (2)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xiii)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Crescent State Bank Directors&rsquo; Compensation Plan, dated as of February 22, 2005 (3)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xiv)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Amended Salary Continuation Agreement, dated September 10, 2008, by and between Crescent State Bank and Ray D. Vaughn (7)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 12%; text-autospace: none">10(xv)+</TD>
    <TD STYLE="width: 1%; text-autospace: none">&nbsp;</TD>
    <TD STYLE="width: 87%; text-autospace: none">Amended Salary Continuation Agreement, dated December 29, 2008, by and between Crescent State Bank and W. Keith Betts (5)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xvi)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Endorsement Split Dollar Agreement by and between Crescent State Bank and Ray D. Vaughn, dated October 24, 2007(4)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xvii)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Endorsement Split Dollar Agreement by and between Crescent State Bank and W. Keith Betts, dated October 24, 2007(4)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xviii)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">2006 Omnibus Stock Ownership and Long Term Incentive Plan (6)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xix)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Executive Employment Agreement, dated February 23, 2011, by and among Bruce W. Elder, Crescent Financial Corporation, and Crescent State Bank (10)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xx)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Executive Employment Agreement, dated February 23, 2011, by and between Thomas E. Holder, Jr. and Crescent State Bank (10)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xxi)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Amendment to Amended Salary Continuation Agreement, dated February 23, 2011, by and between Michael G. Carlton and Crescent State Bank (10)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xxii)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Amendment to Amended Salary Continuation Agreement, dated February 23, 2011, by and between Bruce W. Elder and Crescent State Bank (10)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xxiii)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Amendment to Amended Salary Continuation Agreement, dated February 23, 2011, by and between Thomas E. Holder, Jr. and Crescent State Bank (10)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xxiv)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Amendment to Amended Salary Continuation Agreement, dated February 23, 2011, by and between Ray D. Vaughn and Crescent State Bank (10)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xxv)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Amendment to Amended Salary Continuation Agreement, dated February 23, 2011, by and between W. Keith Betts and Crescent State Bank (10)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xxvi)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Executive Employment Agreement, dated February 23, 2011, by and among Michael G. Carlton, Crescent Financial Corporation, and Crescent State Bank (12)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xxvii)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Executive Employment Agreement, dated February 23, 2011, by and between W. Keith Betts and Crescent State Bank (12)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xxviii)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Executive Employment Agreement, dated February 23, 2011, by and among Ray D. Vaughn and Crescent State Bank (12)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xxix)</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Investment Agreement, dated February 23, 2011 by and among Crescent Financial Corporation,
    Crescent State Bank and Piedmont Community Bank Holdings, Inc. (12)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xxx)</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Amendment to Investment Agreement, dated as of March 24, 2011 (13)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xxxi)</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Amendment No. 2 to Investment Agreement, dated as of November 2, 2011 (13)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xxxii)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Indemnification Agreement, dated February 23, 2011 by and among Michael G. Carlton, Crescent Financial Corporation and Crescent State Bank (12)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xxxiii)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Letter Amendment to Employment Agreement for Michael G. Carlton dated November 2, 2011 (11)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 12%; text-autospace: none">10(xxxiv)+</TD>
    <TD STYLE="width: 1%; text-autospace: none">&nbsp;</TD>
    <TD STYLE="width: 87%; text-autospace: none">Amendment to Endorsement Split Dollar Agreement by and between Crescent State Bank and Michael G. Carlton dated November 2, 2011 (11)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xxxv)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Amendment to Endorsement Split Dollar Agreement by and between Crescent State Bank and Bruce W. Elder dated November 2, 2011 (11)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xxxvi)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Amendment to Endorsement Split Dollar Agreement by and between Crescent State Bank and Thomas E. Holder, Jr. dated November 2, 2011 (11)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xxxvii)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Amendment No. 1 to Amended and Restated Directors&rsquo; Compensation Plan, dated as of November 14, 2011 (14)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xxxviii)</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">ARRA Letter Agreement, dated November 15, 2011, by and between Crescent Financial Bancshares, Inc. and the U.S. Department of the Treasury (9)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xxxix)</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Registration Rights Agreement, dated November 18, 2011, by and between Crescent Financial Bancshares, Inc. and Piedmont Community Bank Holdings, Inc. (15)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xl)</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Tax Sharing Agreement, effective as of December 22, 2011, between Piedmont Community Bank Holdings, Inc. and Crescent Financial Bancshares, Inc. (16)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xli)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Separation and Release Agreement, dated as of January 30, 2012, by and among Crescent Financial Bancshares, Inc., Crescent State Bank and Michael G. Carlton (18)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xlii)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Separation and Release Agreement, dated as of January 27, 2012, by and between Crescent State Bank and Thomas E. Holder, Jr. (18)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xliii)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Separation and Release Agreement, dated as of February 13, 2012, by and between Crescent State Bank and Ray D. Vaughn (18)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xliv)+</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Separation and Release Agreement, dated as of March 15, 2012, by and among Crescent Financial Bancshares, Inc., Crescent State Bank and Bruce W. Elder (18)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10(xlv)</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Affiliate Services Agreement, entered into March 28, 2012, by and among Crescent Financial Bancshares, Inc., Crescent State Bank,&nbsp; Piedmont Community Bank Holdings, Inc. and VantageSouth Bank (18)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">21</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Subsidiaries (18)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">23(i)</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Consent of Dixon Hughes Goodman LLP*</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">23(ii)</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Consent of Bryan Cave LLP (included as part of Exhibit 5)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: -4.5pt; text-autospace: none">24</TD>
    <TD STYLE="padding-right: -4.5pt; text-autospace: none">&nbsp;</TD>
    <TD STYLE="padding-right: -4.5pt; text-autospace: none">Power of Attorney (included as part of the signature page of the registration statement on Form S-1)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">* Filed herewith.<BR>
+ Management contracts and compensatory plans or arrangement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1. Incorporated by reference from Registration Statement on
Form S-8 filed with the Securities and Exchange Commission on September 5, 2001.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">2. Incorporated by reference from Annual Report on Form 10-KSB
filed with the Securities and Exchange Commission on March 30, 2004.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<!-- Field: Page; Sequence: 34 -->
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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">3. Incorporated by reference from Annual Report on Form 10-K
filed with the Securities and Exchange Commission on March 28, 2006.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">4. Incorporated by reference from Annual Report on Form 10-K
filed with the Securities and Exchange Commission on March 11, 2008.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">5. Incorporated by reference from Current Report on Form 8-K
filed with the Securities and Exchange Commission on December 31, 2008.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">6. Incorporated by reference from Exhibit 99.1 to the Registration
Statement on Form S-8, filed with the Securities and Exchange Commission on August 11, 2006.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">7. Incorporated by reference from Annual Report on Form 10-K
filed with the Securities and Exchange Commission on March 27, 2009.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">8. Incorporated by reference from Current Report on Form 8-K12G3
filed with the Securities and Exchange Commission on November 16, 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">9. Incorporated by reference from Current Report on Form 8-K
filed with the Securities and Exchange Commission on November 17, 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">10. Incorporated by reference from Solicitation/Recommendation
Statement on Schedule 14D-9 filed with the Securities and Exchange Commission on November 8, 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">11. Incorporated by reference from Current Report on Form 8-K
filed with the Securities and Exchange Commission on November 7, 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">12. Incorporated by reference from Annual Report on Form 10-K
filed with the Securities and Exchange Commission on March 29, 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">13. Incorporated by reference from Tender Offer Statement on
Schedule TO filed by Piedmont Community Bank Holdings, Inc. with the Securities and Exchange Commission on November 8, 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">14. Incorporated by reference from Solicitation/Recommendation
Statement on Schedule 14D-9/A filed with the Securities and Exchange Commission on November 17, 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">15. Incorporated by reference from Amendment No. 2 to Tender
Offer Statement on Schedule TO filed by Piedmont Community Bank Holdings, Inc. with the Securities and Exchange Commission on November
18, 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">16. Incorporated by reference from Current Report on Form 8-K
filed with the Securities and Exchange Commission on January 24, 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">17. Incorporated by reference from Current Report on Form 8-K
filed with the Securities and Exchange Commission on January 14, 2009.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">18. Incorporated by reference from Annual Report on Form 10-K
filed with the Securities and Exchange Commission on March 30, 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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[{"type": "S-1", "sequence": "1", "filename": "v311785_s1.htm", "description": "FORM S-1", "secsgml_size_bytes": 243741}]
{"company-data": {"conformed-name": "Crescent Financial Bancshares, Inc.", "cik": "0001143921", "assigned-sic": "6022", "irs-number": "452915089", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "S-1", "act": "33", "file-number": "333-181152", "film-number": "12813826"}, "business-address": {"street1": "3600 GLENWOOD AVENUE", "street2": "SUITE 300", "city": "RALEIGH", "state": "NC", "zip": "27612-4937", "phone": "(919) 659-9000"}, "mail-address": {"street1": "3600 GLENWOOD AVENUE", "street2": "SUITE 300", "city": "RALEIGH", "state": "NC", "zip": "27612-4937"}, "former-company": {"former-conformed-name": "CRESCENT FINANCIAL CORP", "date-changed": "20010627"}}
As filed with the Securities and Exchange
Commission on May 4, 2012.
SEC File No. 333-
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-1
REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OF 1933
CRESCENT FINANCIAL BANCSHARES,
INC.
(Exact name of registrant as specified in
its charter)
Delaware
6022
45-2915089
(State or jurisdiction of
incorporation or organization)
(Primary Standard Industrial
Classification Code Number)
(I.R.S. Employer Identification No.)
3600 Glenwood Avenue, Suite 300
Raleigh, North Carolina 27612
(919) 659-9000
(Address, including zip code, and telephone
number, including area code, of registrant's principal executive offices)
Jonathan Hornaday
Corporate Secretary
3600 Glenwood Avenue, Suite 300
Raleigh, North Carolina 27612
(919) 659-9000
(Name, address, including zip code, and
telephone number, including area code, of agent for service)
Copies of all communications, including
communications sent to agent for service, should be sent to:
Kenneth L. Henderson, Esq.
Bryan Cave LLP
1290 Avenue of the Americas
New York, New York 10104
Tel (212) 541-2000
Fax (212) 541-4630
Approximate date of commencement of proposed
sale to the public:
As soon as practicable after the effective date of this Registration Statement.
If any of the securities being registered
on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933 check the
following box:
x
If this Form is filed to register additional
securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities
Act registration statement number of the earlier effective registration statement for the same offering.
¨
If this Form is a post-effective amendment
filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement
number of the earlier effective registration statement for the same offering.
¨
If this Form is a post-effective amendment
filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement
number of the earlier effective registration statement for the same offering.
¨
Indicate by check mark whether the registrant
is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions
of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2
of the Exchange Act. (Check one)
Large accelerated filer
¨
Accelerated filer
¨
Non-accelerated filer
¨
(Do not check if a smaller reporting company)
Smaller reporting company
x
CALCULATION OF REGISTRATION FEE
Title of Each Class of Securities to be
Registered
Amount to be
Registered
Proposed Maximum
Offering Price Per Unit (1)
Proposed Maximum
Aggregate Offering Price
Amount of
Registration Fee
Fixed Rate Cumulative Perpetual Preferred Stock, Series
    A (2)
24,900
                                                                                           shares
$
1,000.00
$
24,900,000.00
$
2,853.54
(3)
Depositary Shares (2)
—
—
—
—
Total
24,900
                                                                                                                   shares
$
1,000.00
$
24,900,000.00
$
2,853.54
(1)
Represents the liquidation preference amount per share of the preferred stock being registered for resale (the "Series
A Preferred Stock"), which we sold to the United States Department of the Treasury ("Treasury") pursuant to Treasury's
Troubled Asset Relief Program Capital Purchase Program.
(2)
In the event Treasury requests that we deposit the shares of Series A Preferred Stock with a depositary pursuant to a depositary
arrangement, depositary shares evidencing fractional shares of the Series A Preferred Stock may be sold pursuant to this registration
statement in lieu of whole shares of Series A Preferred Stock.
(3)
Calculated in accordance with Rule 457(a).
The registrant hereby amends this registration
statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment
which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of
the Securities Act of 1933 or until the registration statement shall become effective on such date as the Commission, acting pursuant
to said Section 8(a), may determine.
The information in this prospectus is not complete and may
be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission
is effective. This prospectus is not an offer to sell these securities and is not soliciting an offer to buy these securities in
any state where the offer or sale is not permitted.
SUBJECT TO COMPLETION, DATED MAY 4, 2012
PROSPECTUS
CRESCENT FINANCIAL BANCSHARES, INC.
24,900 Shares of Fixed Rate Cumulative
Perpetual Preferred Stock, Series A,
Liquidation Preference Amount $1,000 Per Share
(or Depositary Shares Evidencing Fractional Interests in Such Shares)
Crescent Financial Bancshares, Inc.
is the holding company for Crescent State Bank, a North Carolina state bank headquartered in Raleigh, North Carolina.
This prospectus relates to the potential
resale from time to time by selling securityholders of 24,900 shares of our Fixed Rate Cumulative Perpetual Preferred Stock, Series
A, liquidation preference amount $1,000 per share, or, in the event such shares are deposited with a depositary as described in
this prospectus, depositary shares evidencing fractional interests in such shares.
The shares of the Fixed Rate Cumulative
Perpetual Preferred Stock, Series A, or CFC Preferred Stock, were originally issued by our predecessor, Crescent Financial Corporation,
on January 9, 2009 to the United States Department of the Treasury, which we refer to as Treasury or the initial selling securityholder,
as part of Treasury's Troubled Asset Relief Program Capital Purchase Program in a transaction exempt from the registration
requirements of the Securities Act of 1933, as amended, or the Securities Act. On November 15, 2011, in connection with a reincorporation
of Crescent Financial Corporation, we assumed the obligations and responsibilities of our predecessor with respect to Treasury
and issued to Treasury 24,900 shares of our Fixed Rate Cumulative Perpetual Preferred Stock, Series A, or Series A Preferred Stock,
in exchange for the previously issued 24,900 shares of CFC Preferred Stock, also in a transaction exempt from the registration
requirements of the Securities Act.
Dividends on the shares of Series A Preferred
Stock are payable quarterly in arrears on
each February 15, May 15, August
15 and November 15. The initial dividend rate is 5% per annum for the first five years, and will increase to 9% per annum on and
after February 15, 2014 if not otherwise redeemed earlier for cash by us. We deferred dividends on the
Series A
Preferred
Stock in the first, second, third and fourth quarters of 2011 and in the first quarter of 2012. On April 12, 2012, we received
approval from the Federal Reserve Bank of Richmond to (i) pay in full all amounts in arrears due to dividends on the Series A
Preferred Stock deferred during 2011 and the first quarter of 2012, and (ii) the dividend payment on Series A Preferred Stock
due during the second quarter of 2012. We may redeem the
Series A
Preferred Stock, at any time, in whole or in part, at our option, subject to prior approval by the appropriate federal banking
agency, for cash, for a redemption price equal to
the per share liquidation amount of $1,000,
plus
any accrued and unpaid dividends to but excluding the date fixed for redemption.
The initial selling securityholder and its
successors, including transferees, to which we collectively refer as the selling securityholders, may offer the Series A Preferred
Stock from time to time directly or through underwriters, broker-dealers or agents and in one or more public or private transactions
and at fixed prices, prevailing market prices, at prices related to prevailing market prices or at negotiated prices. If these
securities are sold through underwriters, broker-dealers or agents, the selling securityholders will be responsible for underwriting
discounts or commissions or agents' commissions. We will not receive any proceeds from the sale of securities by the selling
securityholders.
The Series A Preferred Stock is not listed
on any exchange, and, unless requested by the initial selling securityholder, we do not intend to list the Series A Preferred Stock
on any exchange. Our common stock is traded on the Nasdaq Global Market under the symbol "CRFN."
You should read this prospectus and any
supplements carefully before you invest. Investing in our Series A Preferred Stock involves a high degree of risk. You should carefully
consider the risk factors set forth in the section entitled "Risk Factors," beginning on page 3 of this prospectus,
and elsewhere in the documents we file with the Securities and Exchange Commission, or SEC, that are incorporated in this prospectus
by reference, including our Annual Report on Form 10-K for the year ended December 31, 2011.
Neither the SEC nor any state securities
commission has approved or disapproved our securities or determined that this prospectus is truthful or complete. Any representation
to the contrary is a criminal offense.
These securities will not be savings
accounts, deposits or other obligations of any bank and are not insured or guaranteed by the Federal Deposit Insurance Corporation,
the Deposit Insurance Fund or any other governmental agency or instrumentality.
The date of this prospectus
is ________________, 2012
TABLE OF CONTENTS
Page
About This Prospectus
ii
Where You Can Find More Information
iii
Incorporation of Certain Information by Reference
iii
Note Regarding Forward Looking Statements
iv
Prospectus Summary
1
Risk Factors
3
Use of Proceeds
7
Description of Series A Preferred Stock
8
Description of Depositary Shares
11
Plan of Distribution
12
Selling Securityholders
13
Legal Matters
14
Experts
14
i
ABOUT THIS PROSPECTUS
Unless the
context requires otherwise, in this prospectus, we use the terms "we," "us," "our," "Crescent"
and the "Company" to refer to Crescent Financial Bancshares, Inc. The term "Bank" refers to our wholly-owned
subsidiary, Crescent State Bank
(unless the context indicates another meaning).
This prospectus is part of a registration
statement we filed with the SEC, under which the selling securityholders may, from time to time, offer and sell, in one or more
offerings, the securities described in this prospectus.
We may provide a prospectus supplement containing
specific information about the terms of a particular offering by the selling securityholders. The prospectus supplement may add
to, update or change information in this prospectus. If the information in this prospectus is inconsistent with a prospectus supplement,
you should rely on the information in that prospectus supplement. You should read both this prospectus and any applicable prospectus
supplements together with the additional information described under the heading "Where You Can Find More Information."
Our SEC registration statement containing
this prospectus, including exhibits, provides additional information about us and the securities offered under this prospectus.
The registration statement can be read at the SEC's website or at the SEC's offices. The SEC's website and street
addresses are provided under the heading "Where You Can Find More Information."
You should rely only on the information
contained in or incorporated by reference in this prospectus or a supplement to this prospectus. We have not, and the selling securityholders
have not, authorized anyone to provide you with different information. This document may be used only in jurisdictions where offers
and sales of these securities are permitted. You should not assume that information contained in this prospectus, in any supplement
to this prospectus, or in any document incorporated by reference is accurate as of any date other than the date on the front page
of the document that contains the information, regardless of when this prospectus is delivered or when any sale of our Series A
Preferred Stock occurs.
ii
Where
You Can Find More Information
This prospectus is a part of a registration
statement on Form S-1 that we filed with the SEC under the Securities Act. This prospectus does not contain all the information
set forth in the registration statement, certain parts of which are omitted in accordance with the rules and regulations of the
SEC. For further information with respect to us and the securities offered by this prospectus, reference is made to the registration
statement, including the exhibits to the registration statement and the documents incorporated by reference.
We file annual, quarterly and current reports,
proxy statements and other information with the SEC. Our filings are available to the public over the Internet at the SEC's
website at http://www.sec.gov. You may also read and copy any document we file with the SEC at its Public Reference Room at 100
F Street, N.E., Washington, D.C. 20549. You can also obtain copies of the documents at prescribed rates by writing to the Public
Reference Room of the SEC at 100 F Street, N.E., Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 for further information
on the operation of the Public Reference Room. Our SEC filings are also available on our website at http://www.crescentstatebank.com
(the other information contained in, or that can be accessed through, our website is not a part of this prospectus or any prospectus
supplement).
Incorporation
of Certain Information by Reference
We "incorporate by reference"
into this prospectus the information we file with the SEC, which means that we can disclose important information to you by referring
you to those documents. The information incorporated by reference is an important part of this prospectus.
We incorporate by reference the documents
listed below (except Items 2.02 and 7.01 of any Current Report on Form 8-K listed below, unless otherwise indicated in the Form
8-K):
•
our Annual Report on Form 10-K for the fiscal year ended December 31, 2011, filed on March 30, 2012;
•
our Current Reports on Form 8-K filed with the SEC since December 31, 2011; and
•
our Definitive Proxy on Schedule 14A filed on April 5, 2012.
Any statement contained in a document incorporated
by reference in this prospectus shall be deemed to be modified or superseded for purposes of this prospectus to the extent that
a statement contained in this prospectus modifies or supersedes the statement. Any statement so modified or superseded shall not
be deemed to constitute a part of this prospectus except as so modified or superseded. The information contained in this prospectus
should be read together with the information in the documents incorporated in this prospectus by reference.
We will provide to each person, including
any beneficial owner, to whom this prospectus is delivered these incorporated documents without charge, excluding any exhibits
to these documents unless the exhibit is specifically incorporated by reference in such document, upon request received in writing
or by telephone at the following address:
Jonathan Hornaday
Corporate Secretary
Crescent Financial Bancshares, Inc.
3600 Glenwood Avenue, Suite 300
Raleigh, North Carolina 27612
(919) 659-9000
These incorporated documents
may also be available on our website at www.crescentstatebank.com. Except for incorporated documents, information contained on
our website is not a prospectus and does not constitute part of this prospectus.
iii
NOTE REGARDING FORWARD-LOOKING STATEMENTS
We make certain forward-looking statements
in this prospectus, any prospectus supplement, and in the documents incorporated by reference into this prospectus that are based
upon our current expectations and projections about current events. You should not rely on forward-looking statements in this prospectus,
any prospectus supplement, or the documents incorporated by reference. We intend these forward-looking statements to be covered
by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995,
and we are including this statement for purposes of these safe harbor provisions. You can identify these statements from our use
of the words "may," "will," "should," "could," "would," "plan,"
"potential," "estimate," "project," "believe," "intend," "anticipate,"
"expect," "target" and similar expressions. Examples of forward-looking statements include, but are not
limited to, estimates with respect to the financial condition, expected or anticipated revenue, results of operations and business
of the Company that are subject to various factors which could cause actual results to differ materially from these estimates.
These factors include, but are not limited to, general economic conditions, changes in interest rates, deposit flows, loan demand,
real estate values, and competition; changes in accounting principles, policies, or guidelines; changes in legislation or regulations;
and other economic, competitive, governmental, regulatory, and technological factors affecting the Company's operations,
pricing, products and services.
You should also consider carefully the statements
under "Risk Factors" and other sections of this prospectus, any prospectus supplement, and the documents we incorporate
by reference, including our Annual Report on Form 10-K for the year ended December 31, 2011, which address additional facts that
could cause our actual results to differ from those set forth in the forward-looking statements. We caution investors not to place
significant reliance on the forward-looking statements contained in this prospectus, any prospectus supplement, and the documents
we incorporate by reference.
Because of these and other uncertainties,
our actual future results, performance or achievements, or industry results, may be materially different from the results contemplated
by these forward-looking statements. In addition, our past results of operations do not necessarily indicate our future results.
You should not place undue reliance on any forward-looking statement, which speak only as of the date they were made. We do not
intend to update these forward-looking statements, even though our situation may change in the future, unless we are obligated
to do so under the federal securities laws. We qualify all of our forward-looking statements by these cautionary statements.
iv
PROSPECTUS SUMMARY
This summary highlights selected information
about Crescent and a general description of the securities that may be offered for resale by the selling securityholders. This
summary is not complete and does not contain all of the information that may be important to you. For a more complete understanding
of us and the terms of the securities offered by the selling securityholders, you should carefully read this entire prospectus,
including the "Risk Factors" section, any applicable prospectus supplement for these securities and the other documents
we refer to and incorporate by reference. In particular, we incorporate important business and financial information into this
prospectus by reference.
Crescent
Financial Bancshares, Inc.
We are a holding company incorporated under
the laws of Delaware on March 28, 2011 and a successor company to Crescent Financial Corporation ("CFC") through a
reincorporation of CFC which occurred on November 15, 2011 (the "Reincorporation"). In the Reincorporation, all shares
of CFC's outstanding common stock, $1.00 par value, were converted to shares of our common stock, $0.001 par value. CFC was
a bank holding company incorporated under the laws of North Carolina on June 29, 2001. We operate for the primary purpose of serving
as the holding company for the Bank.
The Bank was incorporated on December 22,
1998 as a North Carolina-chartered commercial bank and opened for business on December 31, 1998. The Bank operates fifteen (15)
full service branch offices in the communities of Cary (2), Apex, Clayton, Holly Springs, Pinehurst, Raleigh (3), Southern Pines,
Sanford, Garner, Wilmington (2) and Knightdale, North Carolina.
The Bank is a community bank focused on being
the bank of choice for businesses, business owners, and professionals in the markets we serve. We are accomplishing this by creating
mutually beneficial and robust relationships with our customers and positively impacting our communities. In addition to offering
standard banking products and services, we build relationships with our customers by understanding their personal and business
challenges and goals, and providing tangible solutions.
We offer a broad range of banking services,
including checking and savings accounts, money market accounts, individual retirement accounts, certificates of deposit, commercial,
consumer and personal loans, mortgage banking services and other associated financial services. These banking services are offered
through our branch network and certain services are offered through our online banking platform. We believe that we operate in
attractive banking markets with long-term growth potential.
For a complete description of our business,
financial condition, results of operations and other important information, we refer you to our filings with the SEC that are incorporated
by reference in this prospectus, including our Annual Report on Form 10-K for the year ended December 31, 2011. For instructions
on how to find copies of these documents, see "Where You Can Find More Information".
Our principal office is located at 3600 Glenwood
Avenue, Suite 300, Raleigh, North Carolina 27612 and our telephone number is (919) 659-9000. Our website address is at www.crescentstatebank.com.
Information on our website, or that can be accessed through our website, is not incorporated by reference into this prospectus
and does not constitute part of this prospectus.
Securities Being Offered
On January 9, 2009, our predecessor, CFC,
issued 24,900 shares of its CFC Preferred Stock pursuant to a Letter Agreement dated January 9, 2009, and the related Securities
Purchase Agreement – Standard Terms, between CFC and Treasury (the "Securities Purchase Agreement"), as part
of Treasury's Troubled Asset Relief Program Capital Purchase Program. The issuance of the CFC Preferred Stock was completed
in a private placement to Treasury exempt from the registration requirements of the Securities Act.
1
On November 15, 2011, in connection with
the Reincorporation, we, CFC and Treasury entered into a letter agreement (the "TARP Letter Agreement") pursuant to
which we assumed CFC's covenants, agreements, and conditions under the Securities Purchase Agreement. Additionally, we issued
to Treasury 24,900 shares of our Series A Preferred Stock in exchange for the previously issued 24,900 shares of CFC Preferred
Stock. The terms of the Series A Preferred Stock are substantially identical to the previously outstanding CFC Preferred Stock,
and the issuance of the Series A Preferred Stock was also exempt from the registration requirements of the Securities Act.
We are required under the terms of the Securities
Purchase Agreement to register for resale the shares of the Series A Preferred Stock. This registration includes depositary shares,
representing fractional interests in the Series A Preferred Stock, which may be resold pursuant to this prospectus in lieu of whole
shares of Series A Preferred Stock in the event Treasury requests that we deposit the Series A Preferred Stock held by Treasury
with a depositary under a depositary arrangement entered into in accordance with the Securities Purchase Agreement. See "Description
of Depositary Shares." The terms of the Series A Preferred Stock are described under "Description of Series A Preferred
Stock." The Securities Purchase Agreement and the TARP Letter Agreement are attached as Exhibit 10.1 to our Current Report
on Form 8-K filed on January 14, 2009 and Exhibit 10.1 to our Current Report on Form 8-K filed on November 17, 2011, respectively,
and incorporated into this prospectus by reference. See "Where You Can Find More Information."
2
RISK FACTORS
Ownership of the Series A Preferred Stock
involves certain risks. You should consider carefully the risks and uncertainties described in, or incorporated by reference in,
this prospectus, including the risks described below and under the caption "Risk Factors" in our Annual Report on Form
10-K for the year ended December 31, 2011, and in any other reports that we file with the SEC, along with the other information
included or incorporated by reference in this prospectus, in evaluating an investment in the Series A Preferred Stock. The information
included or incorporated by reference in this prospectus may be amended, supplemented or superseded from time to time by other
reports we file with the SEC in the future. For a description of these reports and documents, and information about where you can
find them, see the sections entitled "Where You Can Find More Information" and "Incorporation of Certain Information
by Reference" in this prospectus.
The risks and uncertainties described
in this prospectus and the documents incorporated by reference in this prospectus are not the only ones facing us. Additional risks
and uncertainties that we do not presently know about or that we currently believe are not material may also adversely affect our
business. If any of the risks and uncertainties described in this prospectus or the documents incorporated by reference herein
actually occur, our business, financial condition and results of operations could be adversely affected in a material way. This
could cause the value of the Series A Preferred Stock to decline, and you may lose part or all of your investment.
Risks Related to
the Series A Preferred Stock
The Series A Preferred Stock is equity
and is subordinated to all of our existing and future indebtedness; and the Series A Preferred Stock places no limitations on the
amount of indebtedness we and our subsidiaries may incur in the future.
Shares of the Series A Preferred Stock are
equity interests in the Company and do not constitute indebtedness. As such, the Series A Preferred Stock, like our common stock,
ranks junior to all existing and future indebtedness and other non-equity claims on the Company with respect to assets available
to satisfy claims on the Company, including in a liquidation of the Company. Additionally, unlike indebtedness, where principal
and interest would customarily be payable on specified due dates, in the case of perpetual preferred stock like the Series A Preferred
Stock, there is no stated maturity date (although the Series A Preferred Stock is subject to redemption at our option) and dividends
are payable only if, when and as authorized and declared by our board of directors and depend on, among other matters, our historical
and projected results of operations, liquidity, cash flows, capital levels, financial condition, debt service requirements and
other cash needs, financing covenants, applicable state law, federal and state regulatory prohibitions and other restrictions and
any other factors our board of directors deems relevant at the time.
The shares of Series A Preferred Stock are
not savings accounts, deposits or other obligations of any depository institution and are not insured or guaranteed by the Federal
Deposit Insurance Corporation ("FDIC") or any other governmental agency or instrumentality. Furthermore, the Company
is a legal entity that is separate and distinct from its subsidiaries, and its subsidiaries have no obligation, contingent or otherwise,
to make any payments in respect of the Series A Preferred Stock or to make funds available therefor. Because the Company is a holding
company that maintains only limited cash at that level, its ability to pay dividends on, and redeem at its option, the Series A
Preferred Stock will be highly dependent upon the receipt of dividends, fees and other amounts from the Bank and its other subsidiaries,
which, in turn, will be highly dependent upon the historical and projected results of operations, liquidity, cash flows and financial
condition of its subsidiaries. In addition, the right of the Company to participate in any distribution of assets of any of its
subsidiaries upon their respective liquidation or reorganization will be subject to the prior claims of the creditors (including
any depositors) and preferred equity holders of the applicable subsidiary, except to the extent that the Company is a creditor,
and is recognized as a creditor, of such subsidiary. Accordingly, the holders of the Series A Preferred Stock will be structurally
subordinated to all existing and future obligations and preferred equity of the Company's subsidiaries.
In addition, the terms of the Series A Preferred
Stock do not limit the amount of debt or other obligations we or our subsidiaries may incur in the future. Accordingly, we and
our subsidiaries may incur substantial amounts of additional debt and other obligations that will rank senior to the Series A Preferred
Stock or to which the Series A Preferred Stock will be structurally subordinated.
3
We are highly dependent on dividends
and other amounts from our subsidiaries in order to pay dividends on, and redeem at our option, the Series A Preferred Stock, which
is subject to various prohibitions and other restrictions.
There are various legal and
regulatory prohibitions and other restrictions on the ability of the Bank and any other depository institution subsidiary of
the Company to pay dividends, extend credit or otherwise transfer funds to the Company or affiliates. Such dividend payments
are subject to regulatory tests, generally based on current and retained earnings of such subsidiaries and other factors,
and, will require regulatory approval in the future. Dividend payments to the Company from the Bank may also be prohibited if
such payments would impair the capital of the Bank and in certain other cases. In addition, regulatory rules limit the
aggregate amount of a depository institution's loans to, and investments in, any single affiliate in varying thresholds
and may prevent the Company from borrowing from the Bank and require any permitted borrowings to be collateralized.
The Company also is subject to various legal
and regulatory policies and requirements impacting the Company's ability to pay dividends on, or redeem, the Series A Preferred
Stock. Dividends on the shares of Series A Preferred Stock are payable quarterly in arrears on
each
February 15, May 15, August 15 and November 15. The initial dividend rate is 5% per annum for the first five years, and will increase
to 9% per annum on and after February 15, 2014 if not otherwise redeemed earlier by the Company. The Company deferred dividends
on the
Series A
Preferred Stock in the first, second, third and
fourth quarters of 2011 and in the first quarter of 2012. On April 12, 2012, the Company received approval from the Federal Reserve
Bank of Richmond to (i) pay in full all amounts in arrears due to dividends on the Series A Preferred Stock deferred during 2011
and the first quarter of 2012, and (ii) the dividend payment on Series A Preferred Stock due during the second quarter of 2012.
All future dividend payments will require prior approval from the Board of Governors of the Federal Reserve System (the "Federal
Reserve"). As a matter of policy, the Federal Reserve may restrict or prohibit the payment of dividends on Series A Preferred
Stock if (i) the Company's net income available to stockholders for the past four quarters, net of dividends previously paid
during that period, is not sufficient to fully fund the dividends; (ii) the Company's prospective rate of earnings retention
is not consistent with its capital needs and overall current and prospective financial condition; (iii) the Company will not meet,
or is in danger of not meeting, its minimum regulatory capital ratios; or (iv) the Federal Reserve otherwise determines that the
payment of dividends would constitute an unsafe or unsound practice. In addition, the Federal Reserve also will require the Company
to consult with it prior to increasing dividends. Recent and future regulatory developments may result in additional restrictions
on the Company's ability to pay dividends. Furthermore, under the Federal Reserve's capital regulations, in order to
ensure Tier 1 capital treatment for the Series A Preferred Stock, the Company's redemption of any of the Series A Preferred
Stock must be subject to prior regulatory approval.
An active trading market for the Series
A Preferred Stock may not develop
or be maintained.
The Series A Preferred Stock is not currently
listed on any securities exchange or available for quotation on any national quotation system, and we do not anticipate listing
the Series A Preferred Stock. There can be no assurance that an active trading market for the Series A Preferred Stock will develop
or, if developed, will be maintained. If an active market is not developed or sustained, the market value and liquidity of the
Series A Preferred Stock may be materially and adversely affected.
The Series A Preferred Stock may be junior
in rights and preferences to our future preferred stock.
Subject to approval by the holders of at
least 66 2/3% of the shares of Series A Preferred Stock then outstanding, voting as a separate class, we may issue preferred stock
in the future the terms of which are expressly senior to the Series A Preferred Stock. The terms of any such future preferred stock
expressly senior to the Series A Preferred Stock may prohibit or otherwise restrict dividend payments on the Series A Preferred
Stock. For example, the terms of any such senior preferred stock may provide that, unless full dividends for all of our outstanding
preferred stock senior to the Series A Preferred Stock have been paid for the relevant periods, no dividends will be paid on the
Series A Preferred Stock, and no shares of the Series A Preferred Stock may be repurchased, redeemed, or otherwise acquired by
us. In addition, in the event of our liquidation, dissolution or winding-up, the terms of any such senior preferred stock would
likely prohibit us from making any payments on the Series A Preferred Stock until all amounts due to holders of such senior preferred
stock are paid in full.
4
Holders of the Series A Preferred Stock
have limited voting rights.
Unless and until we are in arrears on our
dividend payments on the Series A Preferred Stock for six quarterly periods, whether or not consecutive, the holders of the Series
A Preferred Stock will have no voting rights except with respect to certain fundamental changes in the terms of the Series A Preferred
Stock and certain other matters and except as may be required by applicable law. If dividends on the Series A Preferred Stock are
not paid in full for six quarterly periods, whether or not consecutive, the total number of positions on our board of directors
will automatically increase by two and the holders of the Series A Preferred Stock, acting as a class with any other parity securities
having similar voting rights, will have the right to elect two individuals to serve in the new director positions. This right and
the terms of such directors will end when we have paid in full all accrued and unpaid dividends for all past dividend periods.
See "Description of Series A Preferred Stock—Voting." Based on the current number of members of our board of
directors (12), directors elected by the holders of the common stock would have a controlling majority of the board and would be
able to take any action approved by them notwithstanding any objection by the directors elected by the holders of the Series A
Preferred Stock.
We are subject to extensive regulation,
and ownership of the Series A Preferred Stock may have regulatory implications for holders thereof.
We are subject to extensive federal and
state banking laws, including the Bank Holding Company Act of 1956, as amended (the "BHCA"), and federal and state
banking regulations, that impact the rights and obligations of owners of the Series A Preferred Stock, including, for example,
our ability to declare and pay dividends on, and to redeem, the Series A Preferred Stock. Although the Company does not believe
the Series A Preferred Stock is considered "voting securities" currently, if they were to become voting securities
for the purposes of the BHCA, whether because the Company has missed six dividend payments and holders of the Series A Preferred
Stock have the right to elect directors as a result, or for other reasons, a holder of 25% or more of the Series A Preferred Stock,
or a holder of a lesser percentage of our Series A Preferred Stock that is presumed by the Federal Reserve to exercise a "controlling
influence" over us, may become subject to regulation under the BHCA. In addition, if the Series A Preferred Stock become
"voting securities", then (a) any bank holding company or foreign bank that is subject to the BHCA may need Federal
Reserve approval to acquire or retain more than 5% of the then outstanding Series A Preferred Stock, and (b) any holder (or group
of holders acting in concert, as determined under the BHCA and its accompanying regulations) will need regulatory approval to acquire
or retain 10% or more of the Series A Preferred Stock. A holder or group of holders may also be deemed to control us if they own
one-third or more of our total equity, both voting and non-voting, aggregating all shares held by the investor across all classes
of stock. Holders of the Series A Preferred Stock should consult their own counsel with regard to regulatory implications.
If we redeem the Series A Preferred Stock,
you may be unable to reinvest the redemption proceeds in a comparable investment at the same or greater rate of return.
We have the right to redeem the Series A
Preferred Stock, in whole or in part, at our option at any time, subject to prior regulatory approval. If we choose to redeem the
Series A Preferred Stock in part, we have been informed by the Depository Trust Company that it is their current practice to determine
by lot the amount of the interest of each direct participant (through which beneficial owners hold their interest) to be redeemed.
If we choose to redeem the Series A Preferred Stock, we are likely to do so if we are able to obtain a lower cost of capital. If
prevailing interest rates are relatively low if or when we choose to redeem the Series A Preferred Stock, you generally may not
be able to reinvest the redemption proceeds in a comparable investment at the same or greater rate of return. Furthermore, if we
redeem the Series A Preferred Stock in part, the liquidity of the Series A Preferred Stock that remains outstanding may be limited.
If we do not redeem the Series A Preferred
Stock prior to February 15, 2014, the cost of this capital to us will increase substantially and could have a material adverse
effect on our financial condition.
We have the right to redeem the Series A
Preferred Stock, in whole or in part, at our option at any time. If we do not redeem the Series A Preferred Stock prior to February
15, 2014, the cost of this capital to us will increase substantially on and after that date, with the dividend rate increasing
from 5.0% per annum (approximately $1.2 million annually) to 9.0% per annum (approximately $2.2 million annually). See "Description
of Series A Preferred Stock—Redemption." Depending on our financial condition at the time, this increase in the annual
dividend rate on the Series A Preferred Stock could have a material adverse effect on our financial condition.
5
Treasury is a federal agency and your
ability to bring a claim against Treasury under the federal securities laws in connection with a purchase of the Series A Preferred
Stock may be limited.
The doctrine of sovereign immunity, as limited
by the Federal Tort Claims Act (the "FTCA"), provides that claims may not be brought against the United States of America
or any agency or instrumentality thereof unless specifically permitted by act of Congress. The FTCA bars claims for fraud or misrepresentation.
At least one federal court, in a case involving a federal agency, has held that the United States may assert its sovereign immunity
to claims brought under the federal securities laws. In addition, Treasury and its officers, agents, and employees are exempt from
liability for any violation or alleged violation of the anti-fraud provisions of Section 10(b) of the Securities Exchange Act of
1934, as amended (the "Exchange Act") by virtue of Section 3(c) thereof. Accordingly, any attempt to assert such a
claim against the officers, agents or employees of Treasury for a violation of the Securities Act or the Exchange Act resulting
from an alleged material misstatement in or material omission from this prospectus, any supplement to this prospectus, the registration
statement of which this prospectus or the documents incorporated by reference in this prospectus are a part or resulting from any
other act or omission in connection with the offering of the Series A Preferred Stock by Treasury would likely be barred.
6
USE OF PROCEEDS
All securities sold pursuant to this prospectus
will be sold by the selling securityholders and we will not receive the proceeds from such sales.
7
DESCRIPTION OF SERIES A
Preferred
Stock
As of the date of this prospectus, our capital
structure consists of 75,000,000 authorized shares of common stock, $0.001 par value per share, and 5,000,000 authorized shares
of preferred stock, no par value. We have designated 24,900 shares of our authorized preferred stock as "Fixed Rate Cumulative
Perpetual Preferred Stock, Series A," which we refer to in this prospectus as the Series A Preferred Stock. We issued these
shares to Treasury on November 15, 2011 to replace, as a result of the Reincorporation, the previously outstanding 24,900 shares
of CFC Preferred Stock, which our predecessor issued on January 9, 2009, pursuant to Treasury's Troubled Asset Relief Program
Capital Purchase Program. The following is a summary of the material provisions of the Series A Preferred Stock, which are substantially
identical to the terms of the CFC Preferred Stock. The full terms of the Series A Preferred Stock are set forth in Exhibit 3(i)
to the registration statement of which this prospectus is a part and incorporated by reference herein.
Ranking
With respect to the payment of dividends
and the amounts to be paid upon liquidation, the Series A Preferred Stock will rank senior to our common stock.
Dividend
Cumulative dividends on shares of the Series
A Preferred Stock accrue on the liquidation value of $1,000 per share at a rate of 5% per annum for the first five years following
the date of issue from January 9, 2009 to, but excluding, February 15, 2014. From and after February 15, 2014, such rate will increase
to 9% per annum, if, as and when declared by our board of directors out of funds legally available therefor. Dividends will be
payable in arrears on the 15th day of February, May, August and November of each year. Dividends will be payable to holders of
record as they appear in the stock register of the Company at the close of business on the applicable record date, which shall
be the 15th calendar day immediately preceding such dividend payment date or such other record date fixed by the board of directors
or any duly authorized committee of the board of directors that is not more than 60 nor less than 10 days prior to such dividend
payment date.
Dividends on the Series A Preferred Stock
will accumulate whether or not we have earnings, whether or not there are funds legally available for the payment of such dividends
and whether or not such dividends are authorized. Accumulated but unpaid dividends on the Series A Preferred Stock shall bear interest
at the applicable dividend rate, unless and otherwise prohibited or limited by applicable law, and shall be compounded (i.e., dividends
are paid on the amount of unpaid dividends). The Series A Preferred Stock has no maturity date.
So long as any shares of Series A Preferred
Stock remain outstanding, unless all accrued and unpaid dividends for all prior dividend periods have been paid or are contemporaneously
declared and paid in full, no dividend whatsoever shall be paid or declared on our common stock or any other junior stock, other
than a dividend payable solely in common stock. We also may not purchase, redeem or otherwise acquire for consideration any shares
of our common stock or other junior stock unless we have paid in full all accrued dividends on the Series A Preferred Stock for
all prior dividend periods, other than:
·
purchases, redemptions or other acquisitions of our common stock or any other junior stock in connection with the administration
of our employee benefit plans in the ordinary course of business and consistent with past practice;
·
purchases or other acquisitions by an affiliated broker-dealer solely for the purpose of market-making, stabilization or customer
facilitation transactions in common stock or any other junior stock or parity stock in the ordinary course of its business;
·
purchases by an affiliated broker-dealer for resale pursuant to our offering of capital stock that is underwritten by an affiliated
broker-dealer;
8
·
any dividends or distributions of rights or junior stock in connection with any stockholders' rights plan or repurchases
of rights pursuant to any stockholders' rights plan;
·
acquisition of record ownership of common stock or any other junior stock or parity stock for the beneficial ownership of any
person other than the Company or any of its subsidiaries, including as trustee or custodian; and
·
the exchange or conversion of common stock or any other junior stock for or into other junior stock or of parity stock for
or into other parity stock or junior stock but only to the extent that such acquisition is required pursuant to binding contractual
agreements entered into before January 9, 2009 or any subsequent agreement for the accelerated exercise, settlement or exchange
thereof for common stock.
On any dividend payment date for which full
dividends are not paid, or declared and funds set aside therefor, on the Series A Preferred Stock and any other parity stock, all
dividends paid or declared for payment on that dividend payment date (or, with respect to parity stock with a different dividend
payment date, on the applicable dividend date therefor falling within the dividend period related to such dividend payment date
for the Series A Preferred Stock) with respect to the Series A Preferred Stock and any other parity stock shall be declared pro
rata so that the respective amounts of such dividends declared shall bear the same ratio to each other as all accrued and unpaid
dividends per share on the shares of Series A Preferred Stock and any other parity stock payable on such dividend payment date
bear to each other.
Subject to the foregoing, such dividends
(payable in cash, stock or otherwise) as may be determined by our board of directors, or a duly authorized committee of the board,
may be declared and paid on our common stock and any other stock ranking equally with or junior to the Series A Preferred Stock
from time to time out of any funds legally available for such payment, and the Series A Preferred Stock shall not be entitled to
participate in any such dividend.
Rights Upon Liquidation
In the event that we voluntarily or involuntarily
liquidate, dissolve or wind up our affairs, holders of Series A Preferred Stock will be entitled to receive an amount per share,
referred to as the total liquidation amount, equal to the fixed liquidation amount of $1,000 per share, plus any accrued and unpaid
dividends, whether or not declared, to the date of payment. Holders of the Series A Preferred Stock will be entitled to receive
the total liquidation amount out of our assets that are available for distribution to stockholders, after payment or provision
for payment of our debts and other liabilities but before any distribution of assets is made to holders of our common stock or
any other shares ranking, as to that distribution, junior to the Series A Preferred Stock.
If our assets are not sufficient to pay
the total liquidation amount in full to all holders of Series A Preferred Stock and all holders of any shares of outstanding parity
stock, the amounts paid to the holders of Series A Preferred Stock and other shares of parity stock will be paid pro rata in accordance
with the respective total liquidation amount for those holders. If the total liquidation amount per share of Series A Preferred
Stock has been paid in full to all holders of Series A Preferred Stock and other shares of parity stock, the holders of our common
stock or any other shares ranking, as to such distribution, junior to the Series A Preferred Stock will be entitled to receive
all of our remaining assets according to their respective rights and preferences.
For purposes of the liquidation rights,
neither the sale, conveyance, exchange or transfer of all or substantially all of our property and assets, nor the consolidation
or merger by us with or into any other corporation or by another corporation with or into us, will constitute a liquidation, dissolution
or winding-up of our affairs.
Redemption
We, at our option, upon not less than 30
nor more than 60 days' written notice, may redeem the Series A Preferred Stock, in whole or in part, at any time or from
time to time,
subject to prior approval by the appropriate federal banking
agency
.
9
In any redemption, the redemption price
is an amount equal to the per share liquidation amount of $1,000, plus accrued and unpaid dividends, if any, thereon to but excluding,
the date fixed for redemption.
Holders of Series A Preferred Stock to be
redeemed shall surrender such Series A Preferred Stock at the place designated in the notice of redemption and shall be entitled
to the redemption price upon such surrender. If notice of redemption of any Series A Preferred Stock has been given and if the
funds necessary for such redemption have been set apart, then from and after the redemption date dividends will cease to accumulate
on such Series A Preferred Stock, such stock shall no longer be deemed outstanding and all rights of the holders of such Series
A Preferred Stock will terminate, except the right to receive the redemption price.
Notice of redemption will be given to the
respective holders of record of the Series A Preferred Stock to be redeemed at their respective addresses as they appear on the
books of the Company. Any notice properly sent shall be presumed to have been duly given, whether or not the holder receives such
notice, but failure duly to give such notice by mail, or any defect in such notice or in the mailing thereof, to any holder shall
not affect the validity of the proceedings for the redemption of any other shares of Series A Preferred Stock.
The Series A Preferred Stock does not have
a stated maturity and is not subject to any sinking fund or mandatory redemption provisions.
If fewer than all of the outstanding shares
of Series A Preferred Stock are to be redeemed, the shares to be redeemed will be selected either pro rata from the holders of
record of shares of Series A Preferred Stock in proportion to the number of shares held by those holders or in such other manner
as our board of directors or a duly authorized committee thereof may determine to be fair and equitable.
Shares of Series A Preferred Stock that
are redeemed, repurchased or otherwise acquired by us will revert to authorized but unissued shares of our preferred stock.
Conversion
Shares of Series A Preferred Stock are not
convertible.
Voting
The holders of Series A Preferred Stock
will have no voting rights, except as otherwise from time to time required by applicable law and voting group rights on matters
as set forth below:
• any authorization or issuance of
shares ranking senior to the Series A Preferred Stock;
• any amendment to the rights of the
Series A Preferred Stock; or
• any merger, exchange or similar transaction
which would adversely affect the rights of the Series A Preferred Stock.
Any class vote held on the above matters
entitles each share of Series A Preferred Stock to one vote and requires approval of at least 66 2/3% of the shares of Series A
Preferred Stock outstanding at such time.
If dividends on the Series A Preferred Stock
are not paid in full for six dividend periods, whether or not consecutive, the authorized number of directors of the Company shall
automatically be increased by two and the holders of the Series A Preferred Stock shall have the right, with holders of shares
of any stock ranking on parity with the Series A Preferred Stock, voting together as a group, to elect two directors to fill such
newly created directorships at the Company's next annual meeting of stockholders (or at a special meeting called for that
purpose prior to such next annual meeting) and at each subsequent annual meeting of stockholders until all accrued and unpaid dividends
for all past dividend periods have been declared and paid in full at which time such right shall terminate.
10
Securities Are Not Insured by the FDIC.
Investments in the Series A Preferred Stock
or any of our equity or debt securities will not qualify as deposits or savings accounts and will not be insured or guaranteed
by the FDIC or any other governmental agency and are subject to investment risk, including the possible loss of principal.
DESCRIPTION OF DEPOSITARY SHARES
Pursuant to the Securities
Purchase Agreement and the TARP Letter Agreement, we have agreed, if requested by Treasury, to enter into a depositary arrangement
pursuant to which the shares of Series A Preferred Stock may be deposited and depositary shares, each representing a fraction of
a share of Series A Preferred Stock as specified by Treasury, may be issued. The shares of Series A Preferred Stock would be held
by a depositary (expected to be a bank or trust company) reasonably acceptable to Treasury. If we enter into such a depositary
arrangement, the selling securityholders would be offering depositary shares, each representing a fraction of a share of Series
A Preferred Stock, instead of actual whole shares of Series A Preferred Stock. The actual terms of any such depositary arrangement
would be set forth in a deposit agreement to which we would be a party.
11
PLAN OF DISTRIBUTION
The selling securityholders and their successors,
including their transferees, may sell all or a portion of the Series A Preferred Stock owned by them and offered by this prospectus
from time to time directly to purchasers or through one or more underwriters, broker-dealers or agents, who may receive compensation
in the form of discounts, concessions or commissions from the selling securityholders or the purchasers of the securities. These
discounts, concessions or commissions as to any particular underwriter, broker-dealer or agent may be in excess of those customary
in the types of transactions involved.
The Series A Preferred Stock may be sold
in one or more transactions at fixed prices, at prevailing market prices at the time of sale, at varying prices determined at the
time of sale or at negotiated prices. These sales may be effected in transactions, which may involve crosses or block transactions.
The selling securityholders may use any one or more of the following methods when selling shares:
·
on any national securities exchange or quotation service on which our Series A Preferred Stock may be listed or quoted at the
time of sale;
·
in the over-the-counter market;
·
in transactions otherwise than on these exchanges or services or in the over-the-counter market;
·
through the writing of options, whether the options are listed on an options exchange or otherwise;
·
a combination of any such methods of sale; or
·
any other method permitted pursuant to applicable law.
In addition, any securities that qualify
for sale pursuant to Rule 144 under the Securities Act may be sold under Rule 144 rather than pursuant to this prospectus.
In connection with the sale of the Series
A Preferred Stock
or otherwise, the selling securityholders may loan or pledge the Series A Preferred Stock to broker-dealers
that in turn may sell these securities.
The aggregate proceeds to the selling securityholders
from the sale of the Series A Preferred Stock will be the purchase price of the securities less discounts and commissions, if any.
In effecting sales, broker-dealers or agents
engaged by the selling securityholders may arrange for other broker-dealers to participate. Broker-dealers or agents may receive
commissions, discounts or concessions from the selling securityholders in amounts to be negotiated immediately prior to the sale.
In offering the securities covered by this
prospectus, the selling securityholders and any broker-dealers who execute sales for the selling securityholders may be deemed
to be "underwriters" within the meaning of Section 2(a)(11) of the Securities Act in connection with such sales. Any
profits realized by the selling securityholders and the compensation of any broker-dealer may be deemed to be underwriting discounts
and commissions. Selling securityholders who are "underwriters" within the meaning of Section 2(a)(11) of the Securities
Act will be subject to the prospectus delivery requirements of the Securities Act and may be subject to certain statutory and regulatory
liabilities, including liabilities imposed pursuant to Sections 11, 12 and 17 of the Securities Act and Rule 10b-5 under the Exchange
Act. We will make copies of this prospectus available to the selling securityholders for the purpose of satisfying the prospectus
delivery requirements of the Securities Act.
In order to comply with the securities laws
of certain states, if applicable, the Series A Preferred Stock must be sold in such jurisdictions only through registered or licensed
brokers or dealers. In addition, in certain states the securities may not be sold unless they have been registered or qualified
for sale in the applicable state or an exemption from the registration or qualification requirement is available and is complied
with.
12
At the time a particular offer of securities
is made, if required, a prospectus supplement will set forth the number of shares of Series A Preferred Stock being offered and
the terms of the offering, including the name of any underwriter, dealer or agent, the purchase price paid by any underwriter,
any discount, commission and other item constituting compensation, any discount, commission or concession allowed or reallowed
or paid to any dealer, and the proposed selling price to the public.
We do not intend to apply for listing of
the Series A Preferred Stock on any securities exchange or for inclusion of the Series A Preferred Stock in any automated quotation
system unless we are requested to do so by Treasury. No assurance can be given as to the liquidity of the trading market, if any,
for the Series A Preferred Stock.
We have agreed to indemnify the selling
securityholders against certain liabilities, including certain liabilities under the Securities Act. We have also agreed, among
other things, to bear substantially all expenses (other than underwriting discounts and selling commissions) in connection with
the registration and sale of the securities covered by this prospectus.
SELLING SECURITYHOLDERS
As described above, on January 9, 2009,
our predecessor, CFC, issued 24,900 shares of CFC Preferred Stock to Treasury, which is the initial selling securityholder under
this prospectus, in a transaction exempt from the registration requirements of the Securities Act. On November 15, 2011, in connection
with the Reincorporation, we issued to Treasury 24,900 shares of our Series A Preferred Stock in exchange for the previously issued
24,900 shares of CFC Preferred Stock, also in a transaction exempt from the registration requirements of the Securities Act.
The initial selling securityholder, or its
successors, including transferees, may from time to time offer and sell, pursuant to this prospectus or a supplement to this prospectus,
any or all of 24,900 shares of our Series A Preferred Stock.
For purposes of this prospectus, we have
assumed that, after completion of the offering, no shares of our Series A Preferred Stock will be held by the selling securityholders.
Beneficial ownership is determined in accordance
with the rules of the SEC and includes voting or investment power with respect to the securities. To our knowledge, the initial
selling securityholder has sole voting and investment power with respect to our Series A Preferred Stock.
We do not know when or in what amounts the
selling securityholders may offer shares of the Series A Preferred Stock for sale. The selling securityholders might not sell any
or all of the securities offered by this prospectus. Because the selling securityholders may offer all or some of the securities
pursuant to this offering, and because currently no sale of our Series A Preferred Stock is subject to any agreements, arrangements
or understandings, we cannot estimate the number of shares of our Series A Preferred Stock that will be held by the selling securityholders
after completion of the offering.
Other than with respect to the acquisition
of the securities, the initial selling securityholder has not had a material relationship with us.
Information about the selling securityholders
may change over time and changed information will be set forth in supplements to this prospectus if and when necessary.
13
LEGAL MATTERS
The validity of the securities being offered
by this prospectus has been passed upon for us by Bryan Cave LLP, New York, New York.
EXPERTS
Our consolidated financial statements as
of December 31, 2011 (Successor) and 2010 (Predecessor), and for the period from November 19, 2011 through December 31, 2011 (Successor),
the period from January 1, 2011 through November 18, 2011 (Predecessor) and the years ended December 31, 2010 and 2009 (Predecessor)
incorporated in this prospectus by reference from the Company's 2011 Annual Report on Form 10-K have been audited by Dixon
Hughes Goodman LLP, an independent registered public accounting firm, as stated in their report, which is incorporated by reference
herein, and has been so incorporated in reliance upon the report of such firm given upon the authority of said firm as experts
in accounting and auditing.
14
CRESCENT FINANCIAL BANCSHARES, INC.
24,900 Shares of Fixed Rate Cumulative
Perpetual Preferred Stock, Series A,
Liquidation Preference Amount $1,000
Per Share
(or Depositary Shares Evidencing Fractional
Interests in Such Shares)
PROSPECTUS
_______________, 2012
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
Item 13.
Other Expenses of Issuance and Distribution.
The following table sets forth the fees
and expenses payable by us in connection with the issuance and distribution of the securities being registered. None of the following
expenses are payable by the selling securityholder. All of the amounts shown are estimates, except for the SEC registration fee.
SEC Registration Fee
$
2,853.54
Accounting Fees and Expenses
4,500.00
Legal Fees and Expenses
20,000.00
Printing Expenses
1,800.00
Miscellaneous Fees and Expenses
2,500.00
Total
$
31,653.54
Item 14.
Indemnification of Directors and Officers.
Section 145 of the Delaware General Corporation
Law provides that a corporation may indemnify directors and officers, as well as other employees and individuals, against expenses
(including attorneys' fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by such person
in connection with any threatened, pending or completed actions, suits or proceedings in which such person is made a party by reason
of such person being or having been a director, officer, employee or agent to the registrant. The Delaware General Corporation
Law provides that Section 145 is not exclusive of other rights to which those seeking indemnification may be entitled under any
certificate of incorporation, bylaws, agreement, vote of stockholders or disinterested directors or otherwise.
The registrant's amended and restated
certificate of incorporation provides for indemnification by the registrant of its directors to the fullest extent permitted by
the Delaware General Corporation Law. The Registrant's amended and restated bylaws provide for indemnification by the registrant
of its officers, directors and certain third parties acting on the registrant's behalf to the fullest extent permitted by
the Delaware General Corporation Law.
At present, there is no pending litigation
or proceeding involving a director or officer of the registrant as to which indemnification is being sought from the registrant,
nor is the registrant aware of any threatened litigation that may result in claims for indemnification from the registrant by any
officer or director.
Further, the registrant may purchase and
maintain insurance on behalf of any person who is or was a director, officer, employee, or agent of the registrant or is or was
serving at the request of the registrant as a director, officer, employee or agent of another corporation, partnership, joint venture,
trust or other enterprise against any liability asserted against him and incurred by him in any such capacity or arising out of
his status as such, whether or not the registrant would have the power to indemnify him against such liability under Section 145
of the Delaware General Corporation Law. The registrant has purchased director and officer liability insurance that, subject to
certain limitations, insures its directors and officers against liabilities in connection with the performance of their duties.
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Item 16.
Exhibits.
The following exhibits are filed with or incorporated by reference
into this registration statement:
Exhibit No.
Description
3(i)
Amended and Restated Certificate of Incorporation of Crescent Financial Bancshares, Inc. (8)
3(ii)
Amended and Restated Bylaws of Crescent Financial Bancshares, Inc. (8)
4(i)
Letter Agreement, dated as of January 9, 2009, between Crescent Financial Corporation and the U.S. Department of the Treasury (17)
4(ii)
TARP Letter Agreement, dated November 15, 2011, by and among Crescent Financial Bancshares, Inc., Crescent Financial Corporation, and the U.S. Department of the Treasury (9)
5
Opinion of Bryan Cave LLP*
10(i)+
1999 Incentive Stock Option Plan (1)
10(ii)+
1999 Non-statutory Stock Option Plan for Directors, as amended (1)
10(iii)
Amended and Restated Declaration of Trust of Crescent Financial Capital Trust I, dated as of August 27, 2003 (2)
10(iv)
Indenture, dated as of August 27, 2003, between Crescent Financial Corporation and Wells Fargo Bank, N.A. (2)
10(v)
Form of Junior Subordinated Debenture (2)
10(vi)
Guarantee Agreement, dated as of August 27, 2003, between Crescent Financial Corporation and Wells Fargo Bank, N.A. (2)
10(vii)+
Second Amended Salary Continuation Agreement, dated September 10, 2008, by and between Crescent State Bank and Michael G. Carlton (7)
10(viii)+
Amended Salary Continuation Agreement, dated October 24, 2007, by and between Crescent State Bank and Bruce W. Elder (4)
10(ix)+
Amended Salary Continuation Agreement, dated October 24, 2007, by and between Crescent State Bank and Thomas E. Holder, Jr. (4)
10(x)+
Endorsement Split Dollar Agreement by and between Crescent State Bank and Michael G. Carlton, dated October 1, 2003 (2)
10(xi)+
Endorsement Split Dollar Agreement by and between Crescent State Bank and Bruce W. Elder, dated October 1, 2003 (2)
10(xii)+
Endorsement Split Dollar Agreement by and between Crescent State Bank and Thomas E. Holder, Jr., dated October 1, 2003 (2)
10(xiii)+
Crescent State Bank Directors' Compensation Plan, dated as of February 22, 2005 (3)
10(xiv)+
Amended Salary Continuation Agreement, dated September 10, 2008, by and between Crescent State Bank and Ray D. Vaughn (7)
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10(xv)+
Amended Salary Continuation Agreement, dated December 29, 2008, by and between Crescent State Bank and W. Keith Betts (5)
10(xvi)+
Endorsement Split Dollar Agreement by and between Crescent State Bank and Ray D. Vaughn, dated October 24, 2007(4)
10(xvii)+
Endorsement Split Dollar Agreement by and between Crescent State Bank and W. Keith Betts, dated October 24, 2007(4)
10(xviii)+
2006 Omnibus Stock Ownership and Long Term Incentive Plan (6)
10(xix)+
Executive Employment Agreement, dated February 23, 2011, by and among Bruce W. Elder, Crescent Financial Corporation, and Crescent State Bank (10)
10(xx)+
Executive Employment Agreement, dated February 23, 2011, by and between Thomas E. Holder, Jr. and Crescent State Bank (10)
10(xxi)+
Amendment to Amended Salary Continuation Agreement, dated February 23, 2011, by and between Michael G. Carlton and Crescent State Bank (10)
10(xxii)+
Amendment to Amended Salary Continuation Agreement, dated February 23, 2011, by and between Bruce W. Elder and Crescent State Bank (10)
10(xxiii)+
Amendment to Amended Salary Continuation Agreement, dated February 23, 2011, by and between Thomas E. Holder, Jr. and Crescent State Bank (10)
10(xxiv)+
Amendment to Amended Salary Continuation Agreement, dated February 23, 2011, by and between Ray D. Vaughn and Crescent State Bank (10)
10(xxv)+
Amendment to Amended Salary Continuation Agreement, dated February 23, 2011, by and between W. Keith Betts and Crescent State Bank (10)
10(xxvi)+
Executive Employment Agreement, dated February 23, 2011, by and among Michael G. Carlton, Crescent Financial Corporation, and Crescent State Bank (12)
10(xxvii)+
Executive Employment Agreement, dated February 23, 2011, by and between W. Keith Betts and Crescent State Bank (12)
10(xxviii)+
Executive Employment Agreement, dated February 23, 2011, by and among Ray D. Vaughn and Crescent State Bank (12)
10(xxix)
Investment Agreement, dated February 23, 2011 by and among Crescent Financial Corporation, Crescent State Bank and Piedmont Community Bank Holdings, Inc. (12)
10(xxx)
Amendment to Investment Agreement, dated as of March 24, 2011 (13)
10(xxxi)
Amendment No. 2 to Investment Agreement, dated as of November 2, 2011 (13)
10(xxxii)+
Indemnification Agreement, dated February 23, 2011 by and among Michael G. Carlton, Crescent Financial Corporation and Crescent State Bank (12)
10(xxxiii)+
Letter Amendment to Employment Agreement for Michael G. Carlton dated November 2, 2011 (11)
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10(xxxiv)+
Amendment to Endorsement Split Dollar Agreement by and between Crescent State Bank and Michael G. Carlton dated November 2, 2011 (11)
10(xxxv)+
Amendment to Endorsement Split Dollar Agreement by and between Crescent State Bank and Bruce W. Elder dated November 2, 2011 (11)
10(xxxvi)+
Amendment to Endorsement Split Dollar Agreement by and between Crescent State Bank and Thomas E. Holder, Jr. dated November 2, 2011 (11)
10(xxxvii)+
Amendment No. 1 to Amended and Restated Directors' Compensation Plan, dated as of November 14, 2011 (14)
10(xxxviii)
ARRA Letter Agreement, dated November 15, 2011, by and between Crescent Financial Bancshares, Inc. and the U.S. Department of the Treasury (9)
10(xxxix)
Registration Rights Agreement, dated November 18, 2011, by and between Crescent Financial Bancshares, Inc. and Piedmont Community Bank Holdings, Inc. (15)
10(xl)
Tax Sharing Agreement, effective as of December 22, 2011, between Piedmont Community Bank Holdings, Inc. and Crescent Financial Bancshares, Inc. (16)
10(xli)+
Separation and Release Agreement, dated as of January 30, 2012, by and among Crescent Financial Bancshares, Inc., Crescent State Bank and Michael G. Carlton (18)
10(xlii)+
Separation and Release Agreement, dated as of January 27, 2012, by and between Crescent State Bank and Thomas E. Holder, Jr. (18)
10(xliii)+
Separation and Release Agreement, dated as of February 13, 2012, by and between Crescent State Bank and Ray D. Vaughn (18)
10(xliv)+
Separation and Release Agreement, dated as of March 15, 2012, by and among Crescent Financial Bancshares, Inc., Crescent State Bank and Bruce W. Elder (18)
10(xlv)
Affiliate Services Agreement, entered into March 28, 2012, by and among Crescent Financial Bancshares, Inc., Crescent State Bank,  Piedmont Community Bank Holdings, Inc. and VantageSouth Bank (18)
21
Subsidiaries (18)
23(i)
Consent of Dixon Hughes Goodman LLP*
23(ii)
Consent of Bryan Cave LLP (included as part of Exhibit 5)
24
Power of Attorney (included as part of the signature page of the registration statement on Form S-1)
* Filed herewith.
+ Management contracts and compensatory plans or arrangement.
1. Incorporated by reference from Registration Statement on
Form S-8 filed with the Securities and Exchange Commission on September 5, 2001.
2. Incorporated by reference from Annual Report on Form 10-KSB
filed with the Securities and Exchange Commission on March 30, 2004.
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4
3. Incorporated by reference from Annual Report on Form 10-K
filed with the Securities and Exchange Commission on March 28, 2006.
4. Incorporated by reference from Annual Report on Form 10-K
filed with the Securities and Exchange Commission on March 11, 2008.
5. Incorporated by reference from Current Report on Form 8-K
filed with the Securities and Exchange Commission on December 31, 2008.
6. Incorporated by reference from Exhibit 99.1 to the Registration
Statement on Form S-8, filed with the Securities and Exchange Commission on August 11, 2006.
7. Incorporated by reference from Annual Report on Form 10-K
filed with the Securities and Exchange Commission on March 27, 2009.
8. Incorporated by reference from Current Report on Form 8-K12G3
filed with the Securities and Exchange Commission on November 16, 2011.
9. Incorporated by reference from Current Report on Form 8-K
filed with the Securities and Exchange Commission on November 17, 2011.
10. Incorporated by reference from Solicitation/Recommendation
Statement on Schedule 14D-9 filed with the Securities and Exchange Commission on November 8, 2011.
11. Incorporated by reference from Current Report on Form 8-K
filed with the Securities and Exchange Commission on November 7, 2011.
12. Incorporated by reference from Annual Report on Form 10-K
filed with the Securities and Exchange Commission on March 29, 2011.
13. Incorporated by reference from Tender Offer Statement on
Schedule TO filed by Piedmont Community Bank Holdings, Inc. with the Securities and Exchange Commission on November 8, 2011.
14. Incorporated by reference from Solicitation/Recommendation
Statement on Schedule 14D-9/A filed with the Securities and Exchange Commission on November 17, 2011.
15. Incorporated by reference from Amendment No. 2 to Tender
Offer Statement on Schedule TO filed by Piedmont Community Bank Holdings, Inc. with the Securities and Exchange Commission on November
18, 2011.
16. Incorporated by reference from Current Report on Form 8-K
filed with the Securities and Exchange Commission on January 24, 2012.
17. Incorporated by reference from Current Report on Form 8-K
filed with the Securities and Exchange Commission on January 14, 2009.
18. Incorporated by reference from Annual Report on Form 10-K
filed with the Securities and Exchange Commission on March 30, 2012.
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Item 17.
Undertakings.
The undersigned registrant hereby undertakes:
(1)          To
file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:
(i) To include any prospectus required by
Section 10(a)(3) of the Securities Act;
(ii) To reflect in the prospectus any facts
or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof)
which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement.
Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities
offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering
range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes
in volume and price represent no more than 20% change in the maximum aggregate offering price set forth in the "Calculation
of Registration Fee" table in the effective registration statement;
(iii) To include any material information
with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such
information in the registration statement.
(2)        That,
for the purpose of determining any liability under the Securities Act, each such post-effective amendment shall be deemed to be
a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall
be deemed to be the initial bona fide offering thereof.
(3)        To
remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the
termination of the offering.
(4)        That,
for the purpose of determining liability under the Securities Act to any purchaser, each prospectus filed pursuant to Rule 424(b)
as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than
prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the
date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus
that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration
statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior
to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of
the registration statement or made in any such document immediately prior to such date of first use.
(5)        Insofar
as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons
of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable.
In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred
or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding)
is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant
will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed
by the final adjudication of such issue.
II-
6
SIGNATURES
Pursuant to the requirements of the Securities
Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto
duly authorized in the City of Raleigh, State of North Carolina, on May 4, 2012.
CRESCENT FINANCIAL BANCSHARES, INC.
By:
/s/ Scott M. Custer
Name: Scott M. Custer
Title:   President and Chief Executive Officer
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned officers
and directors of Crescent Financial Bancshares, Inc., a Delaware corporation that is filing a registration statement on Form S-1
with the Securities and Exchange Commission under the provisions of the Securities Act of 1933, as amended, hereby constitute and
appoint Scott M. Custer and Terry S. Earley, and each of them, their true and lawful attorneys-in-fact and agents, with full power
of substitution and re-substitution, for him and in his name, place and stead, in any and all capacities, to sign any or all amendments
to the registration statement, including a prospectus or an amended prospectus therein, and all other documents in connection therewith
to be filed with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full
power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises,
as fully to all interests and purposes as they might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact
and agents or either of them, or their substitute or substitutes, may lawfully do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities
Act of 1933, this registration statement has been signed by the following persons in the capacities and on the dates indicated.
Signature
Title
Date
/s/ Scott M. Custer
Chief Executive Officer, President and Director
(Principal Executive Officer)
May 4, 2012
Scott M. Custer
/s/ Terry S. Earley
Chief Financial Officer and Executive Vice President
(Principal Financial Officer)
May 4, 2012
Terry S. Earley
/s/ David B. Therit
Principal Accounting Officer and Senior Vice President
May 4, 2012
David B. Therit
/s/ J. Adam Abram
Chairman of the Board of Directors
May 4, 2012
J. Adam Abram
/s/ Brent D. Barringer
Director
May 4, 2012
Brent D. Barringer
/s/ David S. Brody
Director
May 4, 2012
David S. Brody
/s/ Alan N. Colner
Director
May 4, 2012
Alan N. Colner
/s/ Thierry Ho
Director
May 4, 2012
Thierry Ho
II-
7
Signature
Title
Date
/s/ Steven J. Lerner
Director
May 4, 2012
Steven J. Lerner
/s/ James A. Lucas, Jr.
Director
May 4, 2012
James A. Lucas, Jr.
/s/ Charles A. Paul, III
Director
May 4, 2012
Charles A. Paul, III
/s/ Jon S. Rufty
Director
May 4, 2012
Jon S. Rufty
/s/ A. Wellford Tabor
Director
May 4, 2012
A. Wellford Tabor
/s/ Nicolas D. Zerbib
Director
May 4, 2012
Nicolas D. Zerbib
II-
8
EXHIBIT INDEX
Exhibit No.
Description
3(i)
Amended and Restated Certificate of Incorporation of Crescent Financial Bancshares, Inc. (8)
3(ii)
Amended and Restated Bylaws of Crescent Financial Bancshares, Inc. (8)
4(i)
Letter Agreement, dated as of January 9, 2009, between Crescent Financial Corporation and the U.S. Department of the Treasury (17)
4(ii)
TARP Letter Agreement, dated November 15, 2011, by and among Crescent Financial Bancshares, Inc., Crescent Financial Corporation, and the U.S. Department of the Treasury (9)
5
Opinion of Bryan Cave LLP*
10(i)+
1999 Incentive Stock Option Plan (1)
10(ii)+
1999 Non-statutory Stock Option Plan for Directors, as amended (1)
10(iii)
Amended and Restated Declaration of Trust of Crescent Financial Capital Trust I, dated as of August 27, 2003 (2)
10(iv)
Indenture, dated as of August 27, 2003, between Crescent Financial Corporation and Wells Fargo Bank, N.A. (2)
10(v)
Form of Junior Subordinated Debenture (2)
10(vi)
Guarantee Agreement, dated as of August 27, 2003, between Crescent Financial Corporation and Wells Fargo Bank, N.A. (2)
10(vii)+
Second Amended Salary Continuation Agreement, dated September 10, 2008, by and between Crescent State Bank and Michael G. Carlton (7)
10(viii)+
Amended Salary Continuation Agreement, dated October 24, 2007, by and between Crescent State Bank and Bruce W. Elder (4)
10(ix)+
Amended Salary Continuation Agreement, dated October 24, 2007, by and between Crescent State Bank and Thomas E. Holder, Jr. (4)
10(x)+
Endorsement Split Dollar Agreement by and between Crescent State Bank and Michael G. Carlton, dated October 1, 2003 (2)
10(xi)+
Endorsement Split Dollar Agreement by and between Crescent State Bank and Bruce W. Elder, dated October 1, 2003 (2)
10(xii)+
Endorsement Split Dollar Agreement by and between Crescent State Bank and Thomas E. Holder, Jr., dated October 1, 2003 (2)
10(xiii)+
Crescent State Bank Directors' Compensation Plan, dated as of February 22, 2005 (3)
10(xiv)+
Amended Salary Continuation Agreement, dated September 10, 2008, by and between Crescent State Bank and Ray D. Vaughn (7)
10(xv)+
Amended Salary Continuation Agreement, dated December 29, 2008, by and between Crescent State Bank and W. Keith Betts (5)
10(xvi)+
Endorsement Split Dollar Agreement by and between Crescent State Bank and Ray D. Vaughn, dated October 24, 2007(4)
10(xvii)+
Endorsement Split Dollar Agreement by and between Crescent State Bank and W. Keith Betts, dated October 24, 2007(4)
10(xviii)+
2006 Omnibus Stock Ownership and Long Term Incentive Plan (6)
10(xix)+
Executive Employment Agreement, dated February 23, 2011, by and among Bruce W. Elder, Crescent Financial Corporation, and Crescent State Bank (10)
10(xx)+
Executive Employment Agreement, dated February 23, 2011, by and between Thomas E. Holder, Jr. and Crescent State Bank (10)
10(xxi)+
Amendment to Amended Salary Continuation Agreement, dated February 23, 2011, by and between Michael G. Carlton and Crescent State Bank (10)
10(xxii)+
Amendment to Amended Salary Continuation Agreement, dated February 23, 2011, by and between Bruce W. Elder and Crescent State Bank (10)
10(xxiii)+
Amendment to Amended Salary Continuation Agreement, dated February 23, 2011, by and between Thomas E. Holder, Jr. and Crescent State Bank (10)
10(xxiv)+
Amendment to Amended Salary Continuation Agreement, dated February 23, 2011, by and between Ray D. Vaughn and Crescent State Bank (10)
10(xxv)+
Amendment to Amended Salary Continuation Agreement, dated February 23, 2011, by and between W. Keith Betts and Crescent State Bank (10)
10(xxvi)+
Executive Employment Agreement, dated February 23, 2011, by and among Michael G. Carlton, Crescent Financial Corporation, and Crescent State Bank (12)
10(xxvii)+
Executive Employment Agreement, dated February 23, 2011, by and between W. Keith Betts and Crescent State Bank (12)
10(xxviii)+
Executive Employment Agreement, dated February 23, 2011, by and among Ray D. Vaughn and Crescent State Bank (12)
10(xxix)
Investment Agreement, dated February 23, 2011 by and among Crescent Financial Corporation,
    Crescent State Bank and Piedmont Community Bank Holdings, Inc. (12)
10(xxx)
Amendment to Investment Agreement, dated as of March 24, 2011 (13)
10(xxxi)
Amendment No. 2 to Investment Agreement, dated as of November 2, 2011 (13)
10(xxxii)+
Indemnification Agreement, dated February 23, 2011 by and among Michael G. Carlton, Crescent Financial Corporation and Crescent State Bank (12)
10(xxxiii)+
Letter Amendment to Employment Agreement for Michael G. Carlton dated November 2, 2011 (11)
10(xxxiv)+
Amendment to Endorsement Split Dollar Agreement by and between Crescent State Bank and Michael G. Carlton dated November 2, 2011 (11)
10(xxxv)+
Amendment to Endorsement Split Dollar Agreement by and between Crescent State Bank and Bruce W. Elder dated November 2, 2011 (11)
10(xxxvi)+
Amendment to Endorsement Split Dollar Agreement by and between Crescent State Bank and Thomas E. Holder, Jr. dated November 2, 2011 (11)
10(xxxvii)+
Amendment No. 1 to Amended and Restated Directors' Compensation Plan, dated as of November 14, 2011 (14)
10(xxxviii)
ARRA Letter Agreement, dated November 15, 2011, by and between Crescent Financial Bancshares, Inc. and the U.S. Department of the Treasury (9)
10(xxxix)
Registration Rights Agreement, dated November 18, 2011, by and between Crescent Financial Bancshares, Inc. and Piedmont Community Bank Holdings, Inc. (15)
10(xl)
Tax Sharing Agreement, effective as of December 22, 2011, between Piedmont Community Bank Holdings, Inc. and Crescent Financial Bancshares, Inc. (16)
10(xli)+
Separation and Release Agreement, dated as of January 30, 2012, by and among Crescent Financial Bancshares, Inc., Crescent State Bank and Michael G. Carlton (18)
10(xlii)+
Separation and Release Agreement, dated as of January 27, 2012, by and between Crescent State Bank and Thomas E. Holder, Jr. (18)
10(xliii)+
Separation and Release Agreement, dated as of February 13, 2012, by and between Crescent State Bank and Ray D. Vaughn (18)
10(xliv)+
Separation and Release Agreement, dated as of March 15, 2012, by and among Crescent Financial Bancshares, Inc., Crescent State Bank and Bruce W. Elder (18)
10(xlv)
Affiliate Services Agreement, entered into March 28, 2012, by and among Crescent Financial Bancshares, Inc., Crescent State Bank,  Piedmont Community Bank Holdings, Inc. and VantageSouth Bank (18)
21
Subsidiaries (18)
23(i)
Consent of Dixon Hughes Goodman LLP*
23(ii)
Consent of Bryan Cave LLP (included as part of Exhibit 5)
24
Power of Attorney (included as part of the signature page of the registration statement on Form S-1)
* Filed herewith.
+ Management contracts and compensatory plans or arrangement.
1. Incorporated by reference from Registration Statement on
Form S-8 filed with the Securities and Exchange Commission on September 5, 2001.
2. Incorporated by reference from Annual Report on Form 10-KSB
filed with the Securities and Exchange Commission on March 30, 2004.
3. Incorporated by reference from Annual Report on Form 10-K
filed with the Securities and Exchange Commission on March 28, 2006.
4. Incorporated by reference from Annual Report on Form 10-K
filed with the Securities and Exchange Commission on March 11, 2008.
5. Incorporated by reference from Current Report on Form 8-K
filed with the Securities and Exchange Commission on December 31, 2008.
6. Incorporated by reference from Exhibit 99.1 to the Registration
Statement on Form S-8, filed with the Securities and Exchange Commission on August 11, 2006.
7. Incorporated by reference from Annual Report on Form 10-K
filed with the Securities and Exchange Commission on March 27, 2009.
8. Incorporated by reference from Current Report on Form 8-K12G3
filed with the Securities and Exchange Commission on November 16, 2011.
9. Incorporated by reference from Current Report on Form 8-K
filed with the Securities and Exchange Commission on November 17, 2011.
10. Incorporated by reference from Solicitation/Recommendation
Statement on Schedule 14D-9 filed with the Securities and Exchange Commission on November 8, 2011.
11. Incorporated by reference from Current Report on Form 8-K
filed with the Securities and Exchange Commission on November 7, 2011.
12. Incorporated by reference from Annual Report on Form 10-K
filed with the Securities and Exchange Commission on March 29, 2011.
13. Incorporated by reference from Tender Offer Statement on
Schedule TO filed by Piedmont Community Bank Holdings, Inc. with the Securities and Exchange Commission on November 8, 2011.
14. Incorporated by reference from Solicitation/Recommendation
Statement on Schedule 14D-9/A filed with the Securities and Exchange Commission on November 17, 2011.
15. Incorporated by reference from Amendment No. 2 to Tender
Offer Statement on Schedule TO filed by Piedmont Community Bank Holdings, Inc. with the Securities and Exchange Commission on November
18, 2011.
16. Incorporated by reference from Current Report on Form 8-K
filed with the Securities and Exchange Commission on January 24, 2012.
17. Incorporated by reference from Current Report on Form 8-K
filed with the Securities and Exchange Commission on January 14, 2009.
18. Incorporated by reference from Annual Report on Form 10-K
filed with the Securities and Exchange Commission on March 30, 2012.