COOPERATIVE BANKSHARES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)		Three Months Ended
		March 31,
		2006			2005
Interest income:
Loans	$	11,649		$	7,254
Securities		513			536
Other		100			20
Dividends on FHLB stock		79			49
Total interest income		12,341			7,859
Interest expense:
Deposits		4,431			2,082
Short-term borrowings		237			139
Long-term obligations		1,128			579
Total interest expense		5,796			2,800
Net interest income		6,545			5,059
Provision for loan losses		585			325
Net interest income after provision for loan losses		5,960			4,734
Noninterest income:
Gain on sale of loans		340			608
Service charges and fees on loans		140			153
Deposit-related fees		474			383
Bank-owned life insurance earnings		96			79
Other income, net		57			33
Total noninterest income		1,107			1,256
Noninterest expense:
Compensation and fringe benefits		2,995			2,523
Occupancy and equipment		923			857
Professional and examination fees		168			124
Advertising		133			116
Real estate owned		0			0
Other		610			531
Total noninterest expenses		4,829			4,151
Income before income taxes		2,338			1,839
Income tax expense		774			691
Net income	$	1,464		$	1,148
Net income per share:
Basic	$	0.34		$	0.27
Diluted	$	0.33		$	0.26
Weighted average common shares outstanding:
Basic		4,310			4,291
Diluted		4,395			4,372
*The 2004 information is computed after giving the retroactive effect of a 3-for-2 stock split in the form of a 50% stock dividend declared on
January 19, 2005 and paid on February 24, 2005.