COOPERATIVE BANKSHARES REPORTS 17% INCREASE IN THIRD QUARTER EARNINGS
For Immediate Release:
WILMINGTON, NC--October 20, 2005. Cooperative Bankshares, Inc. (NASDAQ:
"COOP") reported net income for the quarter ended September 30, 2005, of
$1,505,870 or $0.34 per diluted share, an increase of 17.1% over the same
quarter last year. Net income for the quarter ended September 30, 2004 was
$1,286,429, or $0.30 per diluted share. Net income for the nine months ended
September 30, 2005, was $4,044,419 or $0.92 per diluted share, an increase of
21.5% over the same period last year. Net income for the nine months ended
September 30, 2004 was $3,328,482 or $0.76 per diluted share. The increase in
net income was mainly due to a rise in net interest income caused primarily by
an increase in loans. Loans increased 35.7% from December 31, 2004 to September
30, 2005. The majority of the loan growth occurred in construction and land
development loans which grew $86.6 million and commercial real estate loans
which grew $39.9 million during this period. Per share data for 2004 has been
adjusted to reflect a 3-for-2 stock split in the form of a 50% stock dividend.
The stock dividend was paid February 24, 2005 to stockholders of record as of
February 8, 2005.
Total assets increased 30.1% since December 31, 2004 and at September
30, 2005, were $715.6 million; stockholders' equity was $49.9 million or $11.60
per share and represented 6.98% of assets.
Cooperative Bankshares, Inc. is the parent company of Cooperative Bank.
Chartered in 1898, Cooperative offers services through 20 offices in Eastern
North Carolina. The Bank's subsidiary, Lumina Mortgage, Inc., is a mortgage
banking firm, originating and selling residential mortgage loans through four
offices in North Carolina; and offices in North Myrtle Beach, South Carolina,
and Virginia Beach, Virginia.
Statements in this news release that are not historical facts are
forward-looking statements as defined in the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements, which contain the words
"expects", "intends" and words of similar import, are subject to numerous risks
and uncertainties disclosed from time to time in documents the company files
with the Securities and Exchange Commission, which could cause actual results to
differ materially from the results currently anticipated. Undue reliance should
not be placed on such forward-looking statements.
For Additional Information:
A Form 8-K has been filed with the SEC which contains additional financial
- --------------------------------------------------------------------------
information.
- -----------
Contacts:
Frederick Willetts, III, President
Todd L. Sammons, CPA, Senior Vice President/ CFO
Linda B. Garland, Vice President/ Secretary
910-343-0181
2
COOPERATIVE BANKSHARES, INC.
201 MARKET ST. UNAUDITED SELECTED FINANCIAL DATA
WILMINGTON, NC 28401 NASDAQ SYMBOL: COOP
- ------------------------------------------------------------------------------------------------------------------------------------
BALANCES AS OF: 09/30/05 06/30/05 03/31/05 12/31/04 09/30/04
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS $ 715,581,019 $ 667,080,438 $ 596,336,244 $ 550,107,444 $ 544,695,572
STOCKHOLDERS' EQUITY 49,929,424 48,965,978 47,479,803 46,909,701 45,802,131
DEPOSITS 542,009,276 512,096,853 441,985,339 414,757,904 399,462,616
BOOK VALUE (4,302,816 SHARES AS OF 9/30/05) 11.60 11.39 11.06 10.93 10.67
NON-PERFORMING ASSETS:
ACCRUING LOANS 90 DAYS PAST DUE 315,865 566,318 321,203 111,792 490,364
NON-ACCRUAL LOANS 3,060 2,900 2,581 95,209 -
FORECLOSED REO 26,291 16,003 16,003 - -
------------------------------------------------------------------------------
TOTAL NON-PERFORMING ASSETS $ 345,216 $ 585,221 $ 339,787 $ 207,001 $ 490,364
==============================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
FOR THE QUARTER ENDED: 09/30/05 06/30/05 03/31/05 12/31/04 09/30/04
- ------------------------------------------------------------------------------------------------------------------------------------
NET INTEREST MARGIN 3.69% 3.69% 3.76% 3.76% 3.70%
(NET INTEREST INCOME/AVERAGE INTEREST-EARNING ASSETS)
EARNING ASSETS/LIABILITIES 111.8% 111.7% 112.2% 112.0% 111.7%
STOCKHOLDERS' EQUITY/ASSETS 6.98% 7.34% 7.96% 8.53% 8.41%
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCOME $ 1,505,870 $ 1,390,913 $ 1,147,636 $ 1,352,693 $ 1,286,429
==============================================================================
NET INCOME PER DILUTED SHARE $ 0.34 $ 0.32 $ 0.26 $ 0.31 $ 0.30
==============================================================================
DILUTED WEIGHTED AVERAGE
NUMBER OF SHARES 4,379,214 4,373,929 4,372,202 4,369,425 4,360,517
==============================================================================
ALLOWANCE FOR LOAN LOSSES
PROVISION $ 575,000 $ 650,000 $ 325,000 $ 225,000 $ 225,000
CHARGE OFFS 18,327 22,029 25,032 27,843 12,388
RECOVERIES 95 1,544 4,627 103 24,720
------------------------------------------------------------------------------
BALANCE $ 5,844,105 $ 5,287,337 $ 4,657,822 $ 4,353,227 $ 4,155,967
==============================================================================
Note: 2004 per share information is computed based on the weighted average
number of dilutive shares outstanding, after giving the retroactive
effect for the 3-for-2 stock split in the form of a 50% stock dividend
declared on January 19, 2005 and paid on February 24, 2005.