| COOPERATIVE BANKSHARES, INC. AND
SUBSIDIARY |
| CONSOLIDATED STATEMENTS OF
OPERATIONS |
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
|
Nine Months
Ended |
|
|
September 30, |
|
|
September 30, |
|
|
2005 |
|
|
2004 |
|
|
2005 |
|
|
2004 |
| Interest income: |
|
|
|
|
|
|
|
|
|
|
|
| Loans |
$ |
9,907,182 |
|
$ |
6,409,154 |
|
$ |
25,826,634 |
|
$ |
18,445,865 |
| Securities |
|
524,467 |
|
|
557,179 |
|
|
1,592,552 |
|
|
1,675,783 |
| Other |
|
27,333 |
|
|
12,356 |
|
|
75,842 |
|
|
30,123 |
| Dividends on FHLB stock |
|
46,241 |
|
|
37,653 |
|
|
154,716 |
|
|
110,760 |
| Total interest income |
|
10,505,223 |
|
|
7,016,342 |
|
|
27,649,744 |
|
|
20,262,531 |
|
|
|
|
|
|
|
|
|
|
|
|
| Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
| Deposits |
|
3,306,204 |
|
|
1,635,174 |
|
|
8,150,419 |
|
|
4,613,972 |
| Borrowed funds |
|
1,158,380 |
|
|
713,094 |
|
|
2,794,725 |
|
|
2,077,488 |
| Total interest expense |
|
4,464,584 |
|
|
2,348,268 |
|
|
10,945,144 |
|
|
6,691,460 |
|
|
|
|
|
|
|
|
|
|
|
|
| Net interest income |
|
6,040,639 |
|
|
4,668,074 |
|
|
16,704,600 |
|
|
13,571,071 |
| Provision for loan losses |
|
575,000 |
|
|
225,000 |
|
|
1,550,000 |
|
|
745,000 |
| Net interest income after provision
for loan losses |
|
5,465,639 |
|
|
4,443,074 |
|
|
15,154,600 |
|
|
12,826,071 |
|
|
|
|
|
|
|
|
|
|
|
|
| Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
| Gain on sale of loans |
|
570,694 |
|
|
682,115 |
|
|
1,895,323 |
|
|
1,959,574 |
| Service charges and fees on loans |
|
248,513 |
|
|
159,359 |
|
|
651,924 |
|
|
351,457 |
| Deposit-related fees |
|
494,672 |
|
|
418,910 |
|
|
1,304,519 |
|
|
1,177,449 |
| Bank-owned life insurance earnings |
|
95,283 |
|
|
73,182 |
|
|
253,198 |
|
|
244,195 |
| Other income, net |
|
48,813 |
|
|
61,750 |
|
|
137,064 |
|
|
165,500 |
| Total noninterest income |
|
1,457,975
|
|
|
1,395,316
|
|
|
4,242,028
|
|
|
3,898,175
|
|
|
|
|
|
|
|
|
|
|
|
|
| Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
| Compensation and fringe benefits |
|
2,656,391 |
|
|
2,349,614 |
|
|
7,761,650 |
|
|
7,055,462 |
| Occupancy and equipment |
|
911,423 |
|
|
834,037 |
|
|
2,625,907 |
|
|
2,468,454 |
| Professional and examination fees |
|
118,623 |
|
|
87,276 |
|
|
370,852 |
|
|
311,552 |
| Advertising |
|
160,242 |
|
|
140,476 |
|
|
404,192 |
|
|
383,447 |
| Real estate owned |
|
0 |
|
|
0 |
|
|
0 |
|
|
0 |
| Other |
|
516,777 |
|
|
503,713 |
|
|
1,576,322 |
|
|
1,520,666 |
| Total noninterest expenses |
|
4,363,456 |
|
|
3,915,116 |
|
|
12,738,923 |
|
|
11,739,581 |
|
|
|
|
|
|
|
|
|
|
|
|
| Income before income taxes |
|
2,560,158 |
|
|
1,923,274 |
|
|
6,657,705 |
|
|
4,984,665 |
| Income tax expense |
|
1,054,288 |
|
|
636,845 |
|
|
2,613,286 |
|
|
1,656,183 |
|
|
|
|
|
|
|
|
|
|
|
|
| Net
income |
$ |
1,505,870 |
|
$ |
1,286,429 |
|
$ |
4,044,419 |
|
$ |
3,328,482 |
|
|
|
|
|
|
|
|
|
|
|
|
| Net income per share: |
|
|
|
|
|
|
|
|
|
|
|
| Basic* |
$ |
0.35 |
|
$ |
0.30 |
|
$ |
0.94 |
|
$ |
0.78 |
| Diluted* |
$ |
0.34 |
|
$ |
0.30 |
|
$ |
0.92 |
|
$ |
0.76 |
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average common
shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
| Basic* |
|
4,301,553 |
|
|
4,291,146 |
|
|
4,296,677 |
|
|
4,288,533 |
| Diluted* |
|
4,379,214 |
|
|
4,360,517 |
|
|
4,375,156 |
|
|
4,364,873 |
|
|
|
|
|
|
|
|
|
|
|
|
| *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. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|