COOPERATIVE BANKSHARES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
		Three Months Ended						Twelve Months Ended
		December 31,						December 31,
		2003			2002			2003			2002
Interest income:
Loans	$	6,073,894		$	6,680,379		$	25,512,026		$	26,611,364
Securities		536,802			633,045			2,120,292			2,613,110
Other		8,618			9,242			47,017			51,633
Dividends on FHLB stock		34,205			51,457			147,184			219,730
Total interest income		6,653,519			7,374,123			27,826,519			29,495,837
Interest expense:
Deposits		1,591,989			2,230,605			7,290,985			10,148,866
Borrowed funds		729,995			1,003,838			3,394,792			3,726,021
Total interest expense		2,321,984			3,234,443			10,685,777			13,874,887
Net interest income		4,331,535			4,139,680			17,140,742			15,620,950
Provision for loan losses		180,000			220,000			740,000			740,000
Net interest income after provision for loan losses		4,151,535			3,919,680			16,400,742			14,880,950
Noninterest income:
Gain on sale of loans		759,551			1,087,003			4,248,884			1,852,388
Net gain on sale of securities		50,663			-			50,663			135,182
Service charges and fees on loans		68,574			171,038			437,589			649,074
Deposit-related fees		342,810			259,916			1,330,370			1,030,429
Gain on sale of real estate		-			-			-			464,977
Bank-owned life insurance earnings		91,506			113,196			369,996			398,528
Other income, net		49,997			35,369			196,942			223,008
Total noninterest income		1,363,101			1,666,522			6,634,444			4,753,586
Noninterest expense:
Compensation and fringe benefits		2,183,317			1,962,212			9,284,874			7,016,029
Occupancy and equipment		736,281			630,181			2,733,861			2,317,141
Professional and examination fees		112,755			277,167			364,522			570,229
Advertising		143,627			117,912			579,314			357,775
Real estate owned		50,532			5,041			110,209			14,300
Other		560,666			457,325			1,968,061			1,612,495
Total noninterest expenses		3,787,178			3,449,838			15,040,841			11,887,969
Income before income taxes		1,727,458			2,136,364			7,994,345			7,746,567
Income tax expense		564,528			831,410			2,590,119			2,802,070
Net income	$	1,162,930		$	1,304,954		$	5,404,226		$	4,944,497
Net income per share:
Basic	$	0.41		$	0.46		$	1.90		$	1.74
Diluted	$	0.40		$	0.46		$	1.86		$	1.73
Weighted average common shares outstanding:
Basic		2,849,447			2,835,947			2,847,567			2,835,712
Diluted		2,908,354			2,866,802			2,898,907			2,859,014