COOPERATIVE BANKSHARES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
		December 31, 2003			December 31, 2002*
		(unaudited)
Assets
Cash and due from banks, noninterest-bearing	$	14,400,034		$	11,858,603
Interest-bearing deposits in other banks		3,993,331			-
Total cash and cash equivalents		18,393,365			11,858,603
Securities:
Available for sale (amortized cost of $43,180,913 in December 2003
and $41,033,409 in December 2002)		43,613,112			42,075,212
Held to maturity (estimated market value of $3,889,736 in December
2003 and $8,009,087 in December 2002)		3,806,376			7,859,955
FHLB stock		4,154,400			4,054,700
Loans held for sale		6,375,275			25,659,935
Loans		404,689,442			393,812,940
Less allowance for loan losses		3,447,002			2,936,795
Net loans		401,242,440			390,876,145
Other real estate owned		-			619,163
Accrued interest receivable		1,852,366			2,239,826
Premises and equipment, net		8,665,698			7,019,219
Goodwill		1,461,543			661,543
Other assets		12,741,394			11,285,276
Total assets	$	502,305,969		$	504,209,577
Liabilities and Stockholders' Equity
Deposits	$	367,071,513		$	357,254,096
Short-term borrowings		41,416,785			61,585,827
Escrow deposits		199,433			223,604
Accrued interest payable		180,067			284,568
Accrued expenses and other liabilities		2,207,003			3,320,629
Long-term obligations		48,087,770			43,092,592
Total liabilities		459,162,571			465,761,316
Stockholders' equity:
Preferred stock, $1 par value, 3,000,000 shares authorized,
no shares issued and outstanding		-			-
Common stock, $1 par value, 7,000,000 shares authorized,
2,849,447 and 2,835,947 shares issued and outstanding		2,849,447			2,835,947
Additional paid-in capital		2,638,044			2,440,645
Accumulated other comprehensive income		285,251			635,500
Retained earnings		37,370,656			32,536,169
Total stockholders' equity		43,143,398			38,448,261
Total liabilities and stockholders' equity	$	502,305,969		$	504,209,577
Book value per common share	$	15.14		$	13.56
*Derived from audited consolidated financial statements.