EXHIBIT 99.2
COOPERATIVE BANKSHARES, INC. AND SUBSIDIARY
Consolidated Statements of Financial Condition
(In thousands, except per share data) September 30, 2007 December 31, 2006*
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(Unaudited)
Assets
Cash and due from banks, noninterest-bearing $ 13,297 $ 12,825
Interest-bearing deposits in other banks 5,683 4,190
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Total cash and cash equivalents 18,980 17,015
Securities:
Available for sale (amortized cost of $42,601 at
September 30, 2007 and $44,079 at December 31, 2006) 42,265 43,351
Held to maturity (estimated market value of $4,544 at
September 30, 2007 and $1,681 at December 31, 2006) 4,564 1,738
FHLB stock 7,311 6,715
Loans held for sale 2,206 4,442
Loans 814,340 761,398
Less allowance for loan losses 8,745 7,786
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Net loans 805,595 753,612
Other real estate owned 1,043 653
Accrued interest receivable 5,364 4,467
Premises and equipment, net 12,297 10,437
Intangible assets 5,736 1,462
Other assets 16,604 16,198
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Total assets $ 921,965 $ 860,090
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Liabilities and Stockholders' Equity
Deposits $ 707,897 $ 661,892
Short-term borrowings 26,960 27,485
Escrow deposits 865 415
Accrued interest payable 639 480
Accrued expenses and other liabilities 3,589 3,659
Long-term obligations 118,531 108,536
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Total liabilities 858,481 802,467
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Stockholders' equity:
Preferred stock, $1 par value: 3,000 shares authorized,
no shares issued and outstanding - -
Common stock, $1 par value: 14,000 shares authorized,
6,549 and 6,514 issued and outstanding 6,549 6,514
Additional paid-in capital 3,199 2,909
Accumulated other comprehensive loss (206) (447)
Retained earnings 53,942 48,647
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Total stockholders' equity 63,484 57,623
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Total liabilities and stockholders' equity $ 921,965 $ 860,090
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Book value per common share $ 9.69 $ 8.85
* Derived from audited consolidated financial statements.
COOPERATIVE BANKSHARES, INC. AND SUBSIDIARY
Consolidated Statements of Operations
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
(In thousands, except per share data) 2007 2006 2007 2006
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Interest and dividend income:
Loans $ 15,959 $ 14,235 $ 46,035 $ 39,130
Securities 555 503 1,570 1,522
Other 79 72 201 217
Dividends on FHLB stock 106 93 299 266
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Total interest and dividend income 16,699 14,903 48,105 41,135
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Interest expense:
Deposits 7,508 6,045 21,343 15,638
Short-term borrowings 341 295 949 961
Long-term obligations 1,379 1,241 3,902 3,486
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Total interest expense 9,228 7,581 26,194 20,085
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Net interest income 7,471 7,322 21,911 21,050
Provision for loan losses 350 525 1,000 1,885
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Net interest income after
provision for loan losses 7,121 6,797 20,911 19,165
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Noninterest income:
Gain on sale of loans 345 453 1,113 1,331
Service charges and fees on loans 133 136 325 415
Deposit-related fees 572 537 1,596 1,521
Gain (loss) on disposal of premises and equipment - - 271 (1)
Earnings on bank-owned life insurance 89 91 274 283
Other income, net 59 54 170 178
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Total noninterest income 1,198 1,271 3,749 3,727
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Noninterest expense:
Compensation and fringe benefits 3,103 2,914 9,173 8,785
Occupancy and equipment 1,054 983 2,979 2,868
Professional and examination fees 123 163 547 593
Advertising 135 149 414 407
Other 630 408 1,705 1,602
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Total noninterest expenses 5,045 4,617 14,818 14,255
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Income before income taxes 3,274 3,451 9,842 8,637
Income tax expense 1,167 1,172 3,566 3,106
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Net income $ 2,107 $ 2,279 $ 6,276 $ 5,531
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Net income per common share:
Basic $ 0.32 $ 0.35 $ 0.96 $ 0.85
Diluted $ 0.32 $ 0.34 $ 0.95 $ 0.84
Weighted average common shares outstanding:
Basic 6,549 6,506 6,530 6,484
Diluted 6,646 6,638 6,640 6,619
COOPERATIVE BANKSHARES, INC. AND SUBSIDIARY
Average Yield/Cost Analysis
For the Three Months Ended
(Dollars in thousands) September 30, 2007 September 30, 2006
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Average Average
Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
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ASSETS
Interest-earning assets:
Interest-bearing deposits in other banks $ 6,572 $ 79 4.81% $ 4,843 $ 72 5.95%
Securities:
Available for sale 42,693 484 4.53% 42,162 482 4.57%
Held to maturity 5,580 71 5.09% 1,850 21 4.54%
FHLB stock 6,990 106 6.07% 6,260 93 5.94%
All loans 807,116 15,959 7.91% 735,475 14,235 7.74%
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Total interest-earning assets 868,951 16,699 7.69% 790,590 14,903 7.54%
Noninterest-earning assets 34,085 38,765
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Total assets $ 903,036 $ 829,355
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LIABILITIES AND
STOCKHOLDERS' EQUITY
Interest-bearing liabilities:
Deposits $ 646,021 7,508 4.65% $ 585,239 6,045 4.13%
Borrowed funds 139,781 1,720 4.92% 127,745 1,536 4.81%
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Total interest-bearing liabilities 785,802 9,228 4.70% 712,984 7,581 4.25%
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Noninterest-bearing liabilities 57,326 62,199
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Total liabilities 843,128 775,183
Stockholders' equity 59,908 54,172
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Total liabilities and stockholders' equity $ 903,036 $ 829,355
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Net interest income $ 7,471 $ 7,322
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Interest rate spread 2.99% 3.29%
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Net yield on interest-earning assets 3.44% 3.70%
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Percentage of average interest-earning
assets to average interest-bearing
liabilities 110.6% 110.9%
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