FOURTH QUARTER & ANNUAL EARNINGS

Cooperative Bankshares, Inc. (NASDAQ: “COOP”) reported net income for the quarter ended December 31, 2004, of $1,352,693 or $0.31 per diluted share, an increase of $189,763 or 16.3% over the same quarter last year.  Net income for the quarter ended December 31, 2003 was $1,162,930 or $0.27 per diluted share.   

Net Income for the twelve months ended December 31, 2004, was $4,681,175 or $1.07 per diluted share, a 13.4% decrease in net income compared to the same period last year.  Net income for the twelve months ended December 31, 2003 was $5,404,226 or $1.24 per diluted share.  Net income for the year ended December 31, 2004, was adversely impacted by a slowdown in mortgage originations and expenses associated with multiple branch openings. 

On January 19, 2005, the Company’s Board of Directors declared a 3-for-2 stock split in the form of a 50% stock dividend, which will be distributed February 24, 2005 to shareholders of record on February 8, 2005.  All references to per share results and weighted average common shares outstanding have been adjusted to reflect the effects of this stock split.   

Total assets at December 31, 2004, were $550.1 million; stockholders’ equity was $46.9 million and represented 8.53% of assets.