COOPERATIVE BANKSHARES REPORTS 30% SECOND QUARTER EARNINGS INCREASE
For Immediate Release: July 25, 2006
Wilmington, NC--Cooperative Bankshares, Inc. (NASDAQ: "COOP") (the
"Company") reported net income for the quarter ended June 30, 2006 of $1.8
million or $0.27 per diluted share, an increase of 30.0% over the same quarter
last year. Net income for the quarter ended June 30, 2005 was $1.4 million or
$0.21 per diluted share. Net income for the six months ended June 30, 2006 was
$3.3 million or $0.50 per diluted share, an increase of 28.9% over the same
period last year. Net income for the six months ended June 30, 2005 was $2.5
million or $0.39 per diluted share. The increase in net income was mainly due to
a rise in net interest income caused primarily by growth in loans. Loans
increased 35.7% from June 30, 2005 to June 30, 2006. The majority of this loan
growth occurred in construction and land development loans which grew $79.6
million (84.4%), one-to-four family loans which grew $72.6 million (29.9%) and
commercial real estate loans which grew $29.6 million (21.7%). Loan growth was
primarily attributable to continued strength in the economy of the markets in
which the Company conducts its business and a continued emphasis on increased
loan production. Per share data has been adjusted to reflect a 3-for-2 stock
split in the form of a 50% stock dividend. The stock dividend was paid June 30,
2006 to stockholders of record as of June 12, 2006.
Total assets increased to $827.7 million at June 30, 2006, an increase
of 24.1% compared to $667.1 million at June 30, 2005 and an 11.0% increase
compared to $746.3 million at December 31, 2005. Asset growth was primarily the
result of continued loan growth, which was primarily funded by deposit growth.
Deposits at June 30, 2006 increased to $633.4 million from $565.0 million at
December 31, 2005, and from $512.1 million at June 30, 2005. At June 30, 2006,
stockholders' equity was $53.5 million, or $8.22 per share, and represented
6.46% of assets, compared to $51.1 million, or $7.91 per share, representing
6.85 % of assets at December 31, 2005.
Total nonperforming assets were $2.9 million at June 30, 2006. Included
in the June 30, 2006 balance were two residential properties totaling $2.6
million. On July 17, 2006 a loan was paid off on one of these properties,
reducing the nonperforming asset balance by $2.0 million.
Cooperative Bankshares, Inc. is the parent company of Cooperative Bank.
Chartered in 1898, Cooperative Bank provides a full range of financial services
through 21 offices in Eastern North Carolina. The Bank's subsidiary, Lumina
Mortgage, Inc., is a mortgage banking firm, originating and selling residential
mortgage loans through three offices in North Carolina and an office in North
Myrtle Beach, South Carolina.
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 words such as
"expects," "intends," "believes" or 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 (the "SEC"), which
could cause actual results to differ materially from the results currently
anticipated. Undue reliance should not be placed on such forward-looking
statements.
The Company has filed a Form 8-K with the SEC containing additional
financial information.
For Additional Information
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Frederick Willetts, III, President, Todd L. Sammons, CPA, Senior Vice
President/CFO, Linda B. Garland, Vice President/Secretary, 910-343-0181
COOPERATIVE BANKSHARES, INC.
201 MARKET ST. UNAUDITED SELECTED FINANCIAL DATA
WILMINGTON, NC 28401 NASDAQ SYMBOL: COOP
(In thousands, except per share data)
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BALANCES AS OF: 06/30/06 03/31/06 12/31/05 09/30/05 06/30/05
====================================================================================================================================
ASSETS $ 827,664 $ 782,627 $ 746,266 $ 715,581 $ 667,080
STOCKHOLDERS' EQUITY 53,453 52,252 51,096 49,929 48,966
DEPOSITS 633,430 591,871 564,990 542,009 512,097
BOOK VALUE (6,504 SHARES AS OF 06/31/06) 8.22 8.08 7.91 7.74 7.59
NON-PERFORMING ASSETS:
ACCRUING LOANS 90 DAYS PAST DUE 2,278 2,006 9 316 566
NON-ACCRUAL LOANS 18 1,341 23 3 3
FORECLOSED REO 574 10 26 26 16
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TOTAL NON-PERFORMING ASSETS $ 2,870 $ 3,357 $ 58 $ 345 $ 585
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FOR THE QUARTER ENDED: 06/30/06 03/31/06 12/31/05 09/30/05 06/30/05
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NET INTEREST MARGIN 3.72% 3.60% 3.69% 3.69% 3.69%
(NET INTEREST INCOME/AVERAGE INTEREST-EARNING ASSETS)
EARNING ASSETS/LIABILITIES 111.2% 110.7% 111.5% 111.8% 111.7%
STOCKHOLDERS' EQUITY/ASSETS 6.46% 6.68% 6.85% 6.98% 7.34%
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NET INCOME $ 1,808 $ 1,464 $ 1,457 $ 1,506 $ 1,391
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NET INCOME PER DILUTED SHARE $ 0.27 $ 0.22 $ 0.22 $ 0.23 $ 0.21
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DILUTED WEIGHTED AVERAGE
NUMBER OF SHARES 6,619 6,593 6,580 6,569 6,561
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ALLOWANCE FOR LOAN LOSSES
PROVISION $ 775 $ 585 $ 935 $ 575 $ 650
CHARGE OFFS 789 7 19 18 22
RECOVERIES 1 5 3 - 1
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BALANCE $ 7,333 $ 7,346 $ 6,763 $ 5,844 $ 5,287
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Note: 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
May 31, 2006 and paid on June 30, 2006.