July 22, 2005

For Immediate Release:

FREDERICK WILLETTS, III REAPPOINTED TO THE NORTH CAROLINA STATE BANKING COMMISSION.

Wilmington, NC- July 22 , 2005. Frederick Willetts, III, President and CEO of Cooperative Bank has been reappointed to the North Carolina State Banking Commission by Governor Michael F. Easley. The appointment is for five years.

Cooperative Bank, chartered in 1898, provides a full range of financial services through 20 offices in Eastern North Carolina. Cooperative Bank’s subsidiary, Lumina Mortgage, Inc., is a mortgage banking firm, originating and selling residential mortgage loans through 3 offices in North Carolina, and offices in North Myrtle Beach, South Carolina, and Virginia Beach, Virginia.

For additional information

Linda B. Garland, Vice President

910-343-0181