 Analyst Presentation August 2006 Building relationships for over 100 100 years Exhibit 99.1 |
 2 THIS PRESENTATION, INCLUDING ALL DOCUMENTS INCORPORATED HEREIN BY REFERENCE, CONTAINS FORWARD-LOOKING STATEMENTS. ADDITIONAL WRITTEN OR ORAL FORWARD- LOOKING STATEMENTS MAY BE MADE BY THE COMPANY FROM TIME TO TIME IN FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION OR OTHERWISE. THE WORDS "BELIEVE", "EXPECT", "SEEK", AND "INTEND" AND SIMILAR EXPRESSIONS IDENTIFY FORWARD-LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE THE STATEMENT IS MADE. SUCH FORWARD-LOOKING STATEMENTS ARE WITHIN THE MEANING OF THAT TERM IN SECTION 27A OF THE SECURITIES ACT OF 1933, AS AMENDED, AND SECTION 21E OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. SUCH STATEMENTS MAY INCLUDE, BUT ARE NOT LIMITED TO, PROJECTIONS OF INCOME OR LOSS, EXPENDITURES, ACQUISITIONS, PLANS FOR FUTURE OPERATIONS, FINANCING NEEDS OR PLANS RELATING TO SERVICES OF THE COMPANY, AS WELL AS ASSUMPTIONS RELATING TO THE FOREGOING. FORWARD-LOOKING STATEMENTS ARE INHERENTLY SUBJECT TO RISKS AND UNCERTAINTIES, SOME OF WHICH CANNOT BE PREDICTED OR QUANTIFIED. FUTURE EVENTS AND ACTUAL RESULTS COULD DIFFER MATERIALLY FROM THOSE SET FORTH IN, CONTEMPLATED BY OR UNDERLYING THE FORWARD-LOOKING STATEMENTS. A DISCUSSION OF FACTORS THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED IN THE FORWARD-LOOKING STATEMENTS IS INCLUDED IN FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION. Safe Harbor Statement |
 3 $827.7 million bank holding company headquartered in Wilmington, NC Subsidiaries: Cooperative Bank, Lumina Mortgage Company 108-year operating history in Eastern NC Traded on NASDAQ National Market under the symbol “COOP” 20 financial centers and 5 loan offices from Myrtle Beach, SC to the North Carolina Outer Banks (including Lumina) Who We Are Today |
 4 Cooperative Bank formed in 1898 as a mutual thrift Converted to stock savings bank in 1991 Formed holding company in 1994 Acquired Lumina Mortgage in 2002 Adopted a North Carolina commercial bank charter in 2002 Opened four new financial centers in 2003 (two in December) Issued $15 million of trust preferred securities in 2005 History |
 5 Wilmington, NC Southeastern coastal metropolitan area Significant economic benefit of the 1990 expansion of Interstate I-40 to Wilmington Growth in tourism, retirees and housing Attraction of major employers such as PPD, GE, Dupont, Verizon and Corning Largest employer – New Hanover Regional Medical Center (4,600 employees) Nicknamed “Hollywood of the East” the film and TV industry is a major factor in Wilmington’s economic growth Education – UNC-Wilmington is a public university with over 12,000 students Market Analysis Sources: Wilmington Regional Film Commission, Inc. and Wilmingtontoday.com |
 6 Wilmington, NC 2005 MSA population of 310,400 Ranked among top 5% of MSAs for population growth by percentage (37.2%) from 1990 to 2000 Population growth expected to nearly double the national average over the next five years Household income up 68% since 1989 Total deposits have increased 72% since 2003 Market Analysis MSA region includes New Hanover, Brunswick and Pender counties. Source: U.S. Census data, 2005 and SNL Financial. |
 7 Financial Snapshot In thousands except per share data, as of June 30, 2006 Total Assets $827,664 Total Deposits $633,430 Total Equity $53,453 LTM Net Income $6,235 LTM EPS $0.94** Tangible BV/Share $7.99 LTM ROA 0.84% LTM ROE 12.19% Shares Outstanding (000) 6,504 Shareholders 512 Insider Control as of 6/30/2006* * Includes 273,675 stock options that are immediately exercisable. ** Per share 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 May 31, 2006 and paid on June 30, 2006. 27.223% |
 8 $415 $458 $504 $502 $550 $746 $828 $300 $400 $500 $600 $700 $800 $900 2000 2001 2002 2003 2004 2005 6/30/06 13.4% compound annual growth Assets ($Millions) |
 9 $347 $373 $417 $408 $457 $642 $727 $300 $350 $400 $450 $500 $550 $600 $650 $700 $750 2000 2001 2002 2003 2004 2005 6/30/06 14.4% compound annual growth Total Loans ($Millions) |
 10 $327 $340 $357 $367 $415 $565 $633 $300 $350 $400 $450 $500 $550 $600 $650 2000 2001 2002 2003 2004 2005 6/30/06 12.8% compound annual growth Deposits ($Millions) |
 11 Transaction Accounts ($000s) 22.2% compound annual growth (thru 2005) $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 2000 2001 2002 2003 2004 2005 Interest Bearing Non-Interest Bearing $84,846 $31,124 $36,239 $40,430 $52,629 $60,916 |
 12 $1,932 $2,889 $4,944 $5,404 $4,681 $5,502 $3,272 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 2000 2001 2002 2003 2004 2005 6/30/06 Net Income ($000s) |
 13 Asset Quality 1. Gross Loans do not include Loans Held For Sale. * Gross Loans have not been disclosed. 319.4% 21,256.0% 2,103.0% 1,290.7% 502.9% 82.2% 312.6% Loan Loss Reserves / Non-Performing Loans 1.00% 1.04% 0.96% 0.85% 0.75% 0.67% 0.62% Loan Loss Reserves / Total Loans 0.11% 0.01% 0.01% 0.06% 0.08% 0.03% 0.03% Net Charge Offs / Average Loans * 0.00% 0.05% 0.07% 0.15% 0.82% 0.20% Non-Performing Loans / Gross Loans¹ 0.35% 0.01% 0.04% 0.05% 0.24% 0.84% 0.22% Non-Performing Assets / Total Assets Jun 30 2006 2005 2004 2003 2002 2001 2000 |
 14 Experienced management team with knowledge of local markets Largest community bank based in Wilmington, NC MSA Improved financial performance Outstanding asset quality Reasons to Invest |