July 21, 2004
 

COOPERATIVE BANKSHARES REPORTS SECOND QUARTER EARNINGS

Wilmington, NC—Cooperative Bankshares, Inc. (NASDAQ: “COOP”) reported net income for the quarter ended June 30, 2004, of $1,123,582 or $0.39 per diluted share.  Net income for the quarter ended June 30, 2003, was $1,423,239 or $0.49 per diluted share.  The reduction in net income was mainly due to the expenses associated with four additional branches and lower income from reduced mortgage banking activities.  There was also an additional $120,000 added to the provision for loan losses due to the exceptional growth in the loan portfolio. 

Net income for the six months ended June 30, 2004, was $2,042,053 or $0.70 per diluted share.  Net income for the six months ended June 30, 2003 was $2,810,889 or $0.97 per diluted share. 

Total assets at June 30, 2004, were $527.9 million and stockholders’ equity was $44.4 million or $15.52 per share and represented 8.41% of assets.