October 23, 2003

COOPERATIVE BANKSHARES REPORTS THIRD QUARTER EARNINGS INCREASE OF 17 PERCENT

Cooperative Bankshares, Inc. (NASDAQ: “COOP”) reported net income for the quarter ended September 30, 2003, of $1,430,407 or $0.49 per diluted share, a 17.3% increase over the same quarter last year.  Net income for the quarter ended September 30, 2002, was $1,219,879 or $0.43 per diluted share.

Net income for the nine months ended September 30, 2003, was $4,241,296 or $1.47 per diluted share, a 16.5% increase over the same period last year.  Income for the nine months ended September 30, 2002 was $3,639,543 or $1.27 per diluted share.

Total assets at September 30, 2003, were $496.4 million; stockholders’ equity was $42.2 million and represented 8.51% of assets. 

Cooperative Bankshares, Inc. is the parent company of Cooperative Bank.  Chartered in 1898, Cooperative provides a full range of financial services through 19 offices in eastern North Carolina.  The Bank’s subsidiary, Lumina Mortgage, Inc., is a mortgage banking firm, originating and selling residential mortgage loans through offices in Wilmington, North Carolina; North Myrtle Beach, South Carolina; and Virginia Beach, Virginia.