COOPERATIVE BANKSHARES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
		Three Months Ended
		March 31,
		2005			2004
Interest income:
Loans	$	7,253,678		$	5,944,835
Securities		536,222			562,083
Other		20,490			9,880
Dividends on FHLB stock		48,993			35,736
Total interest income		7,859,383			6,552,534
Interest expense:
Deposits		2,082,491			1,506,825
Borrowed funds		717,894			672,009
Total interest expense		2,800,385			2,178,834
Net interest income		5,058,998			4,373,700
Provision for loan losses		325,000			220,000
Net interest income after provision for loan losses		4,733,998			4,153,700
Noninterest income:
Gain on sale of loans		607,951			580,169
Net gain on sale of securities		-			-
Service charges and fees on loans		152,989			69,713
Deposit-related fees		383,015			364,091
Bank-owned life insurance earnings		79,035			86,608
Other income, net		33,389			44,910
Total noninterest income		1,256,379			1,145,491
Noninterest expense:
Compensation and fringe benefits		2,522,758			2,296,407
Occupancy and equipment		857,244			824,305
Professional and examination fees		124,128			131,221
Advertising		116,274			124,981
Real estate owned		-			0
Other		531,281			523,531
Total noninterest expenses		4,151,685			3,900,445
Income before income taxes		1,838,692			1,398,746
Income tax expense		691,056			480,276
Net income	$	1,147,636		$	918,470
Net income per share:
Basic*	$	0.27		$	0.21
Diluted*	$	0.26		$	0.21
Weighted average common shares outstanding:
Basic*		4,291,115			4,283,309
Diluted*		4,372,202			4,369,776
*The 2004 information is computed after giving the retroactive effect of a 3-for-2 stock split in
the form of a 50% stock dividend declared on January 19, 2005 and paid on February 24, 2005.