1
COOPERATIVE BANKSHARES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
March 31, 2005 December 31, 2004*
-------------------- ---------------------
(unaudited)
ASSETS
Cash and due from banks, noninterest-bearing $ 13,131,925 $ 12,031,627
Interest-bearing deposits in other banks 2,109,843 4,360,960
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Total cash and cash equivalents 15,241,768 16,392,587
Securities:
Available for sale (amortized cost of $44,038,554 in March 2005
and $44,432,476 in December 2004) 43,592,424 44,535,010
Held to maturity (estimated market value of $2,512,111 in March
2005 and $2,678,860 in December 2004) 2,541,116 2,659,595
FHLB stock 5,289,000 4,518,500
Loans held for sale 10,302,054 7,239,131
Loans 498,316,111 453,769,733
Less allowance for loan losses 4,657,822 4,353,227
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Net loans 493,658,289 449,416,506
Accrued interest receivable 2,374,385 2,085,164
Premises and equipment, net 8,649,464 8,597,015
Goodwill 1,461,543 1,461,543
Other assets 13,226,201 13,202,393
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Total assets $ 596,336,244 $ 550,107,444
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LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits $ 441,985,339 $ 414,757,904
Short-term borrowings 40,283,750 32,342,878
Escrow deposits 371,514 194,408
Accrued interest payable 224,452 190,689
Accrued expenses and other liabilities 2,910,028 2,629,188
Long-term obligations 63,081,358 53,082,676
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Total liabilities 548,856,441 503,197,743
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Stockholders' equity:
Preferred stock, $1 par value, 3,000,000 shares authorized,
no shares issued and outstanding -- --
Common stock, $1 par value, 7,000,000 shares authorized,
4,291,115 and 2,860,764 shares issued and outstanding 4,291,115 2,860,764
Additional paid-in capital 2,673,233 2,673,233
Accumulated other comprehensive income (294,445) 67,672
Retained earnings 40,809,900 41,308,032
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Total stockholders' equity 47,479,803 46,909,701
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Total liabilities and stockholders' equity $ 596,336,244 $ 550,107,444
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Book value per common share $ 11.06 $ 10.93
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*Derived from audited consolidated financial statements.
2
COOPERATIVE BANKSHARES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
THREE MONTHS ENDED
MARCH 31,
2005 2004
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INTEREST INCOME:
Loans $ 7,253,678 $ 5,944,835
Securities 536,222 562,083
Other 20,490 9,880
Dividends on FHLB stock 48,993 35,736
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Total interest income 7,859,383 6,552,534
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INTEREST EXPENSE:
Deposits 2,082,491 1,506,825
Borrowed funds 717,894 672,009
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Total interest expense 2,800,385 2,178,834
------------ -------------
NET INTEREST INCOME 5,058,998 4,373,700
Provision for loan losses 325,000 220,000
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Net interest income after provision for loan losses 4,733,998 4,153,700
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NONINTEREST INCOME:
Gain on sale of loans 607,951 580,169
Service charges and fees on loans 152,989 69,713
Deposit-related fees 383,015 364,091
Bank-owned life insurance earnings 79,035 86,608
Other income, net 33,389 44,910
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Total noninterest income 1,256,379 1,145,491
------------ -------------
NONINTEREST EXPENSE:
Compensation and fringe benefits 2,522,758 2,296,407
Occupancy and equipment 857,244 824,305
Professional and examination fees 124,128 131,221
Advertising 116,274 124,981
Other 531,281 523,531
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Total noninterest expenses 4,151,685 3,900,445
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Income before income taxes 1,838,692 1,398,746
Income tax expense 691,056 480,276
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NET INCOME $ 1,147,636 $ 918,470
============ =============
NET INCOME PER SHARE:
Basic* $ 0.27 $ 0.21
============ =============
Diluted* $ 0.26 $ 0.21
============ =============
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic* 4,291,115 4,283,309
============ =============
Diluted* 4,372,202 4,369,776
============ =============
*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.
3
AVERAGE BALANCES
COOPERATIVE BANKSHARES, INC.
For the quarter ended
March 31, 2005 March 31, 2004
----------------------------------------------------------------------------------
(Dollars in thousands) Average Average
Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
------------ ----------- ---------- ----------- ----------- ----------
Interest-earning assets:
Interest-bearing deposits in other banks $ 3,607 $ 20 2.22% $ 4,432 $ 10 0.90%
Securities:
Available for sale 44,283 505 4.56% 46,512 512 4.40%
Held to maturity 2,623 31 4.73% 3,749 50 5.33%
FHLB stock 4,671 49 4.20% 4,133 36 3.48%
Loan portfolio 482,835 7,254 6.01% 416,469 5,945 5.71%
----------- ---------- ---------- ----------
Total interest-earning assets 538,019 7,859 5.84% 475,295 6,553 5.51%
Non-interest earning assets 25,273 25,629
----------- ----------
Total assets $563,292 $ 500,924
=========== ==========
Interest-bearing liabilities:
Deposits 392,237 2,082 2.12% 344,086 1,507 1.75%
Borrowed funds 87,093 718 3.30% 86,052 672 3.12%
----------- ---------- ---------- ----------
Total interest-bearing liabilities 479,330 $ 2,800 2.34% 430,138 $ 2,179 2.03%
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Non-interest bearing liabilities 38,259 29,868
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Total liabilities 517,589 460,006
Stockholders' equity 45,703 40,918
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Total liabilities and stockholders' equity $563,292 $ 500,924
=========== ==========
Net interest income $ 5,059 $ 4,374
========== ==========
Interest rate spread 3.51% 3.49%
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Net yield on interest-earning assets 3.76% 3.68%
Percentage of average interest-earning
assets to average interest-bearing
liabilities 112.2% 110.5%
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