January 28, 2004

 

COOPERATIVE BANKSHARES REPORTS ANNUAL EARNINGS INCREASE

Wilmington, NC-Cooperative Bankshares, Inc. (NASDAQ: "COOP" ) reported net income for the twelve months ended December 31, 2003, of $5,404,226 or $1.86 per diluted share, a 9.3% increase in net income over the same period last year. Net income for the twelve months ended December 31, 2002 was $4,944,497 or $1.73 per diluted share.

Net income for the quarter ended December 31, 2003, was $1,162,930 or $0.40 per diluted share, a decrease of $142,024 or 10.9% over the same quarter last year. Net income for the quarter ended December 31, 2002 was $1,304,954 or $0.46 per diluted share.

Net income for the quarter ended December 31, 2003, was adversely impacted by a slowdown in mortgage originations and expenses associated with multiple branch openings.

Total assets at December 31, 2003, were $502.3 million; stockholders’ equity was $43.1 million and represented 8.59% of assets.

Cooperative Bankshares, Inc. is the parent company of Cooperative Bank. Chartered in 1898, Cooperative Bank provides a full range of financial services through 21 financial centers 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.