Exhibit 99.2
COOPERATIVE BANKSHARES, INC. 201 MARKET ST. WILMINGTON, NC 28401 |
| UNAUDITED SELECTED FINANCIAL DATA NASDAQ SYMBOL: COOP |
| |||||||||||||||||
| (In thousands, except per share data) | ||||||||||||||||||||
BALANCES AS OF: | 09/30/08 | 06/30/08 | 03/31/08 | 12/31/07 | 09/30/07 | |||||||||||||||
ASSETS | $ | 982,379 | $ | 973,681 | $ | 958,195 | $ | 926,823 | $ | 921,965 | ||||||||||
STOCKHOLDERS’ EQUITY | 55,174 | 63,607 | 64,842 | 65,177 | 63,484 | |||||||||||||||
DEPOSITS | 709,469 | 731,583 | 728,639 | 714,892 | 707,897 | |||||||||||||||
BOOK VALUE (6,589 SHARES as of 9/30/08) | 8.37 | 9.66 | 9.85 | 9.94 | 9.69 | |||||||||||||||
NON-PERFORMING ASSETS: | ||||||||||||||||||||
ACCRUING LOANS 90 DAYS PAST DUE | 1,481 | 4,025 | 5,316 | 3,560 | 5,114 | |||||||||||||||
NON-ACCRUAL LOANS | 21,130 | 9,708 | 3,462 | 2,083 | 3,224 | |||||||||||||||
OTHER TROUBLED DEBT RESTRUCTURINGS | 812 | — | — | — | — | |||||||||||||||
NON-PERFORMING INVESTMENTS | 783 | — | — | — | — | |||||||||||||||
FORECLOSED REO | 6,672 | 4,357 | 4,549 | 5,924 | 1,043 | |||||||||||||||
TOTAL NON-PERFORMING ASSETS | $ | 30,878 | $ | 18,090 | $ | 13,327 | $ | 11,567 | $ | 9,381 | ||||||||||
FOR THE QUARTER ENDED: | 09/30/08 | 06/30/08 | 03/31/08 | 12/31/07 | 09/30/07 | |||||||||||||||
NET INTEREST MARGIN (net interest income / average interest-earning assets) | 2.74 | % | 2.71 | % | 2.83 | % | 3.25 | % | 3.44 | % | ||||||||||
EARNING ASSETS / LIABILITIES | 108.3 | % | 108.3 | % | 108.6 | % | 109.7 | % | 110.6 | % | ||||||||||
STOCKHOLDERS’ EQUITY/ASSETS | 5.62 | % | 6.53 | % | 6.77 | % | 7.03 | % | 6.89 | % | ||||||||||
NET INCOME (LOSS) | $ | (8,940 | ) | $ | (350 | ) | $ | 752 | $ | 1,805 | $ | 2,107 | ||||||||
NET INCOME (LOSS) PER DILUTED SHARE | $ | (1.36 | ) | $ | (0.05 | ) | $ | 0.11 | $ | 0.27 | $ | 0.32 | ||||||||
DILUTED WEIGHTED AVERAGE | ||||||||||||||||||||
NUMBER OF SHARES | 6,589 | 6,585 | 6,610 | 6,632 | 6,646 | |||||||||||||||
ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||||||
PROVISION | $ | 4,150 | $ | 2,470 | $ | 855 | $ | 450 | $ | 532 | ||||||||||
CHARGE OFFS | 609 | 434 | 226 | 416 | 162 | |||||||||||||||
RECOVERIES | 11 | 3 | 8 | 9 | 8 | |||||||||||||||
BALANCE | $ | 15,016 | $ | 11,464 | $ | 9,425 | $ | 8,788 | $ | 8,745 | ||||||||||
Note: The provision for allowance for loan losses for the quarter ended September 30, 2007 includes $182 representing the balance of the allowance for loan losses acquired in the purchase of the Bank of Jefferson.
COOPERATIVE BANKSHARES, INC. AND SUBSIDIARY
Consolidated Statements of Financial Condition
| (In thousands, except per share data) | September 30, 2008 | December 31, 2007* | ||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
Cash and due from banks, noninterest-bearing | $ | 9,665 | $ | 9,883 | ||||
Interest-bearing deposits in other banks | 2,362 | 3,910 | ||||||
Total cash and cash equivalents | 12,027 | 13,793 | ||||||
Securities: | ||||||||
Available for sale (amortized cost of $36,155 at September 30, 2008 and $40,868 at December 31, 2007) | 36,064 | 40,810 | ||||||
Held to maturity (estimated market value of $3,329 at September 30, 2008 and $4,532 at December 31, 2007) | 3,326 | 4,512 | ||||||
FHLB stock | 8,735 | 7,085 | ||||||
Loans held for sale | 1,672 | 3,680 | ||||||
Loans | 882,802 | 820,104 | ||||||
Less allowance for loan losses | 15,016 | 8,788 | ||||||
Net loans | 867,786 | 811,316 | ||||||
Other real estate owned | 6,672 | 5,924 | ||||||
Accrued interest receivable | 4,156 | 5,003 | ||||||
Premises and equipment, net | 14,632 | 12,609 | ||||||
Intangible assets | 5,768 | 5,792 | ||||||
Other assets | 21,541 | 16,299 | ||||||
Total assets | $ | 982,379 | $ | 926,823 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
Deposits | $ | 709,469 | $ | 714,892 | ||||
Short-term borrowings | 97,687 | 18,371 | ||||||
Escrow deposits | 1,222 | 522 | ||||||
Accrued interest payable | 593 | 588 | ||||||
Accrued expenses and other liabilities | 4,709 | 3,743 | ||||||
Long-term obligations | 113,525 | 123,530 | ||||||
Total liabilities | 927,205 | 861,646 | ||||||
Stockholders’ equity: | ||||||||
Preferred stock, $1 par value: 3,000 shares authorized, no shares issued and outstanding at September 30, 2008 or December 31, 2007 | — | — | ||||||
Common stock, $1 par value: 14,000 shares authorized, 6,589 and 6,554 shares issued and outstanding at September 30, 2008 and December 31, 2007, respectively | 6,589 | 6,554 | ||||||
Additional paid-in capital | 3,466 | 3,240 | ||||||
Accumulated other comprehensive loss | (56 | ) | (36 | ) | ||||
Common stock held in grantor trust - 23 shares in 2008, no shares in 2007 | (191 | ) | — | |||||
Deferred compensation payable in common stock | 191 | — | ||||||
Retained earnings | 45,175 | 55,419 | ||||||
Total stockholders’ equity | 55,174 | 65,177 | ||||||
Total liabilities and stockholders’ equity | $ | 982,379 | $ | 926,823 | ||||
Book value per common share | $ | 8.37 | $ | 9.94 | ||||
* Derived from audited consolidated financial statements.
COOPERATIVE BANKSHARES, INC. AND SUBSIDIARY
Consolidated Statements of Operations (Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| (In thousands, except per share data) | 2008 | 2007 | 2008 | 2007 | ||||||||||
Interest and dividend income: | ||||||||||||||
Loans | $ | 13,588 | $ | 15,959 | $ | 41,830 | $ | 46,035 | ||||||
Securities | 557 | 555 | 1,788 | 1,570 | ||||||||||
Other | 7 | 79 | 57 | 201 | ||||||||||
Dividends on FHLB stock | 62 | 106 | 291 | 299 | ||||||||||
Total interest and dividend income | 14,214 | 16,699 | 43,966 | 48,105 | ||||||||||
Interest expense: | ||||||||||||||
Deposits | 5,971 | 7,508 | 19,759 | 21,343 | ||||||||||
Short-term borrowings | 513 | 341 | 1,005 | 949 | ||||||||||
Long-term obligations | 1,313 | 1,379 | 4,236 | 3,902 | ||||||||||
Total interest expense | 7,797 | 9,228 | 25,000 | 26,194 | ||||||||||
Net interest income | 6,417 | 7,471 | 18,966 | 21,911 | ||||||||||
Provision for loan losses | 4,150 | 350 | 7,475 | 1,000 | ||||||||||
Net interest income after provision for loan losses | 2,267 | 7,121 | 11,491 | 20,911 | ||||||||||
Noninterest income: | ||||||||||||||
Gain on sale of loans | 217 | 345 | 935 | 1,113 | ||||||||||
Service charges and fees on loans | 79 | 133 | 330 | 325 | ||||||||||
Deposit-related fees | 569 | 572 | 1,672 | 1,596 | ||||||||||
Gain (loss) on disposal of premises and equipment | (1 | ) | — | 1 | 271 | |||||||||
Earnings on bank-owned life insurance | 90 | 89 | 268 | 274 | ||||||||||
Loss on investments | (9,087 | ) | — | (9,087 | ) | — | ||||||||
Other income, net | 66 | 59 | 192 | 170 | ||||||||||
Total noninterest income | (8,067 | ) | 1,198 | (5,689 | ) | 3,749 | ||||||||
Noninterest expense: | ||||||||||||||
Compensation and fringe benefits | 3,315 | 3,103 | 9,781 | 9,173 | ||||||||||
Occupancy and equipment | 1,145 | 1,054 | 3,270 | 2,979 | ||||||||||
Professional and consulting fees | 262 | 123 | 754 | 547 | ||||||||||
Advertising | 151 | 135 | 411 | 414 | ||||||||||
Loss on other real estate owned | 450 | 27 | 757 | 18 | ||||||||||
Other | 825 | 603 | 2,374 | 1,687 | ||||||||||
Total noninterest expense | 6,148 | 5,045 | 17,347 | 14,818 | ||||||||||
Income (loss) before income taxes | (11,948 | ) | 3,274 | (11,545 | ) | 9,842 | ||||||||
Income tax expense (benefit) | (3,008 | ) | 1,167 | (3,007 | ) | 3,566 | ||||||||
Net income | $ | (8,940 | ) | $ | 2,107 | $ | (8,538 | ) | $ | 6,276 | ||||
Net income (loss) per common share: | ||||||||||||||
Basic | $ | (1.36 | ) | $ | 0.32 | $ | (1.30 | ) | $ | 0.96 | ||||
Diluted | $ | (1.36 | ) | $ | 0.32 | $ | (1.30 | ) | $ | 0.95 | ||||
Weighted average common shares outstanding: | ||||||||||||||
Basic | 6,589 | 6,549 | 6,580 | 6,530 | ||||||||||
Diluted | 6,589 | 6,646 | 6,580 | 6,640 | ||||||||||
Average Yield / Cost Analysis
| For the Three Months Ended | ||||||||||||||||||
| (Dollars in thousands) | September 30, 2008 | September 30, 2007 | ||||||||||||||||
| Average Balance | Interest | Average Yield/ Cost | Average Balance | Interest | Average Yield/ Cost | |||||||||||||
ASSETS | ||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||
Interest-bearing deposits in other banks | $ | 2,025 | $ | 7 | 1.38 | % | $ | 6,572 | $ | 79 | 4.81 | % | ||||||
Securities: | ||||||||||||||||||
Available for sale | 45,212 | 511 | 4.52 | % | 42,693 | 484 | 4.53 | % | ||||||||||
Held to maturity | 3,621 | 46 | 5.08 | % | 5,580 | 71 | 5.09 | % | ||||||||||
FHLB stock | 8,558 | 62 | 2.90 | % | 6,990 | 106 | 6.07 | % | ||||||||||
All loans | 878,258 | 13,588 | 6.19 | % | 807,116 | 15,959 | 7.91 | % | ||||||||||
Total interest-earning assets | 937,674 | 14,214 | 6.06 | % | 868,951 | 16,699 | 7.69 | % | ||||||||||
Noninterest-earning assets | 42,231 | 34,085 | ||||||||||||||||
Total assets | $ | 979,905 | $ | 903,036 | ||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||
Deposits | $ | 683,405 | 5,971 | 3.49 | % | $ | 646,021 | 7,508 | 4.65 | % | ||||||||
Borrowed funds | 182,715 | 1,826 | 4.00 | % | 139,781 | 1,720 | 4.92 | % | ||||||||||
Total interest-bearing liabilities | 866,120 | 7,797 | 3.60 | % | 785,802 | 9,228 | 4.70 | % | ||||||||||
Noninterest-bearing liabilities | 49,063 | 57,326 | ||||||||||||||||
Total liabilities | 915,183 | 843,128 | ||||||||||||||||
Stockholders’ equity | 64,722 | 59,908 | ||||||||||||||||
Total liabilities and stockholders’ equity | $ | 979,905 | $ | 903,036 | ||||||||||||||
Net interest income | $ | 6,417 | $ | 7,471 | ||||||||||||||
Interest rate spread | 2.46 | % | 2.99 | % | ||||||||||||||
Net yield on interest-earning assets | 2.74 | % | 3.44 | % | ||||||||||||||
Percentage of average interest-earning assets to average interest-bearing liabilities | 108.3 | % | 110.6 | % | ||||||||||||||
Cooperative Bank and Cooperative Bankshares Capital Ratios
| September 30, 2008 | December 31, 2007 | Minimum Ratio to Maintain Well-Capitalized Status | Minimum Ratio to Maintain Adequately Capitalized Status | |||||||||
Cooperative Bank capital ratios: | ||||||||||||
Total risk-based capital ratio | 8.99 | % | 10.78 | % | 10.00 | % | 8.00 | % | ||||
Tier I risk-based capital ratio | 7.73 | % | 9.65 | % | 6.00 | % | 4.00 | % | ||||
Tier 1 leverage ratio | 6.52 | % | 8.16 | % | 5.00 | % | 4.00 | % | ||||
Cooperative Bankshares capital ratios: | ||||||||||||
Total risk-based capital ratio | 8.94 | % | 10.74 | % | — | — | ||||||
Tier I risk-based capital ratio | 7.69 | % | 9.61 | % | — | — | ||||||
Tier 1 leverage ratio | 6.48 | % | 8.12 | % | — | — |
