COOPERATIVE BANK

CONSUMER PRIVACY POLICY
COOPERATIVE BANKSHARES, INC.
AS APPROVED BY THE BOARD OF DIRECTORS
AUGUST 15, 2007

WE RESPECT YOUR RIGHT TO FINANCIAL PRIVACY

We are committed to protecting your financial privacy. Whether you are an existing customer of the Bank and/or its affiliated companies, or you are considering a relationship with us, you have an interest in knowing how we collect, retain and use information gathered about you and your relationship with us.

Information is gathered for the purposes of serving your financial needs, administering account relationships and providing information about financial products, services and other opportunities that may interest you. Such information may be obtained from applications or other forms completed by you, consumer reporting agencies, our affiliates, etc. This information is referred to as nonpublic personal information.

To assure the continued privacy and confidentiality of your nonpublic personal information, Cooperative Bank observes the following procedures regarding information sharing:

SHARING INFORMATION WITH OUR AFFILIATES

Federal law allows disclosure of nonpublic personal information to our affiliates (listed below). Here are the kinds of information that may be shared: name, address, account balances, account activity, types of accounts, deposit history and telephone number.

No nonpublic personal information will be shared with any party except as permitted by law.

AFFILIATES OF THE COOPERATIVE FAMILY INCLUDE:

Cooperative Bankshares, Inc.

Cooperative Bank

Lumina Mortgage

Cooperative Bankshares Capital Trust I

JOINT MARKETING – AUTHORIZED SHARING

In order to provide you with information about additional products and services, we may share nonpublic personal information with other institutions we have joint marketing agreements with. This information may include name, address and transaction information, (such as types of accounts and account balances). Examples of these institutions would include: securities broker-dealers, insurance agents, credit card companies, etc.

Information will only be shared as permitted by law.

SHARING INFORMATION WITH NON-AFFILIATED THIRD PARTIES

Federal law also allows us to share nonpublic personal information with non-affiliated third parties such as securities broker-dealers, insurance agents and/or credit card companies. Your name, address, account activity, types of accounts, deposit history and payment history may be shared.

You may request that this information not be shared with non-affiliated third parties. Please refer to our Opt-Out Procedures and Request form at the end of this policy.

FORMER CUSTOMERS

We do not share nonpublic personal information of former customers.

OUR COMMITMENT – SECURITY STANDARDS

We have security standards and procedures in place to help us protect you from unauthorized access and/or disclosure of your confidential information. Our employees are trained regarding issues of privacy, information security and their obligation to protect your privacy. We pledge that we will protect the information you have entrusted to us.

We will provide you with a notice of our Consumer Privacy Policy on an annual basis for as long as you maintain your account relationship with us. This policy may change from time to time, but you can always review our current policy by writing to us or visiting our web site at www.coop-bank.com.

SAFEGUARD YOUR INFORMATION

We encourage you to protect your social security and/or tax identification numbers, account numbers, statements, PIN and Access24 numbers. Never disclose confidential information, unless required to do so in the normal process of business and only to those who have a valid need for the information.

OPT-OUT PROCEDURES

Responsible use of information benefits our customers, both by protecting you and by enabling us to provide customized financial products and services to meet your needs. You may ask us not to share information about you with non-affiliated third party business parties for marketing purposes. By selecting to Opt-Out, you make the decision that you do not want to receive periodic mailings and/or telephone calls from selected, reputable third-party companies with whom Cooperative Bank does business.

If you prefer that we not share your information with third parties, please complete, detach and return the Opt-Out Request form so that we may process your request. Please allow 30 days from receipt of this Opt-Out Request for it to become effective.

Note: If you have previously submitted an Opt-Out Request, you DO NOT need to complete another one.