EXHIBIT 99.2
COOPERATIVE BANKSHARES, INC. AND SUBSIDIARY
Consolidated Statements of Financial Condition
(In thousands, except per share data) June 30, 2008 December 31, 2007*
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(Unaudited)
Assets
Cash and due from banks, noninterest-bearing $ 9,214 $ 9,883
Interest-bearing deposits in other banks 3,095 3,910
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Total cash and cash equivalents 12,309 13,793
Securities:
Available for sale (amortized cost of $45,394 at
June 30, 2008 and $40,868 at December 31, 2007) 44,508 40,810
Held to maturity (estimated market value of $4,392 at
June 30, 2008 and $4,532 at December 31, 2007) 4,381 4,512
FHLB stock 8,600 7,085
Loans held for sale 2,725 3,680
Loans 865,521 820,104
Less allowance for loan losses 11,464 8,788
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Net loans 854,057 811,316
Other real estate owned 4,357 5,924
Accrued interest receivable 4,365 5,003
Premises and equipment, net 14,576 12,609
Intangible assets 5,776 5,792
Other assets 18,027 16,299
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Total assets $ 973,681 $ 926,823
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Liabilities and Stockholders' Equity
Deposits $ 731,583 $ 714,892
Short-term borrowings 48,097 18,371
Escrow deposits 1,202 522
Accrued interest payable 607 588
Accrued expenses and other liabilities 5,059 3,743
Long-term obligations 123,526 123,530
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Total liabilities 910,074 861,646
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Stockholders' equity:
Preferred stock, $1 par value: 3,000 shares authorized,
no shares issued and outstanding at June 30, 2008 or
December 31, 2007 -- --
Common stock, $1 par value: 14,000 shares authorized,
6,586 and 6,554 shares issued and outstanding at
June 30, 2008 and December 31, 2007, respectively 6,586 6,554
Additional paid-in capital 3,449 3,240
Accumulated other comprehensive loss (543) (36)
Retained earnings 54,115 55,419
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Total stockholders' equity 63,607 65,177
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Total liabilities and stockholders' equity $ 973,681 $ 926,823
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Book value per common share $ 9.66 $ 9.94
* Derived from audited consolidated financial statements.
COOPERATIVE BANKSHARES, INC. AND SUBSIDIARY
Consolidated Statements of Operations (Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
(In thousands, except per share data) 2008 2007 2008 2007
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Interest and dividend income:
Loans $ 13,696 $ 15,279 $ 28,243 $ 30,077
Securities 622 505 1,231 1,015
Other 16 57 50 122
Dividends on FHLB stock 122 100 228 193
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Total interest and dividend income 14,456 15,941 29,752 31,407
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Interest expense:
Deposits 6,433 7,069 13,788 13,835
Short-term borrowings 319 365 492 608
Long-term obligations 1,446 1,252 2,923 2,523
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Total interest expense 8,198 8,686 17,203 16,966
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Net interest income 6,258 7,255 12,549 14,441
Provision for loan losses 2,470 350 3,325 650
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Net interest income after
provision for loan losses 3,788 6,905 9,224 13,791
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Noninterest income:
Gain on sale of loans 241 475 718 768
Service charges and fees on loans 127 84 251 192
Deposit-related fees 554 526 1,103 1,024
Gain (loss) on disposal of premises and equipment (1) (4) 2 271
Earnings on bank-owned life insurance 89 92 178 185
Other income, net 63 52 126 111
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Total noninterest income 1,073 1,225 2,378 2,551
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Noninterest expense:
Compensation and fringe benefits 3,206 2,965 6,466 6,070
Occupancy and equipment 1,096 967 2,125 1,926
Professional and consulting fees 254 246 492 423
Advertising 118 136 260 279
Other 895 548 1,856 1,076
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Total noninterest expense 5,569 4,862 11,199 9,774
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Income (loss) before income taxes (708) 3,268 403 6,568
Income tax expense (benefit) (358) 1,202 1 2,399
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Net income (loss) $ (350) $ 2,066 $ 402 $ 4,169
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Net income (loss) per common share:
Basic $ (0.05) $ 0.32 $ 0.06 $ 0.64
Diluted $ (0.05) $ 0.31 $ 0.06 $ 0.63
Weighted average common shares outstanding:
Basic 6,585 6,527 6,576 6,521
Diluted 6,585 6,634 6,615 6,636
Average Yield/Cost Analysis
For the Three Months Ended
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(Dollars in thousands) June 30, 2008 June 30, 2007
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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 $ 2,305 $ 16 2.78% $ 4,173 $ 57 5.46%
Securities:
Available for sale 45,499 566 4.98% 42,905 487 4.54%
Held to maturity 4,423 56 5.06% 1,643 18 4.38%
FHLB stock 8,537 122 5.72% 6,651 100 6.01%
All loans 861,423 13,696 6.36% 778,003 15,279 7.86%
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Total interest-earning assets 922,187 14,456 6.27% 833,375 15,941 7.65%
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Noninterest-earning assets 44,399 33,067
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Total assets $966,586 $866,442
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LIABILITIES AND
STOCKHOLDERS' EQUITY
Interest-bearing liabilities:
Deposits $681,707 6,433 3.77% $620,335 7,069 4.56%
Borrowed funds 170,142 1,765 4.15% 133,995 1,617 4.83%
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Total interest-bearing liabilities 851,849 8,198 3.85% 754,330 8,686 4.61%
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Noninterest-bearing liabilities 48,915 50,974
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Total liabilities 900,764 805,304
Stockholders' equity 65,822 61,138
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Total liabilities and stockholders' equity $966,586 $866,442
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Net interest income $ 6,258 $ 7,255
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Interest rate spread 2.42% 3.04%
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Net yield on interest-earning assets 2.71% 3.48%
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Percentage of average interest-earning
assets to average interest-bearing
liabilities 108.3% 110.5%
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