COOPERATIVE BANKSHARES, INC. AND SUBSIDIARY
Consolidated Statements of Financial Condition
(In thousands, except per share data) March 31, 2009 December 31, 2008*
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(Unaudited)
Assets
Cash and due from banks, noninterest-bearing $ 10,031 $ 7,475
Interest-bearing deposits in other banks 53,691 426
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Total cash and cash equivalents 63,722 7,901
Securities:
Available for sale (amortized cost of $29,683 at
March 31, 2009 and $29,746 at December 31, 2008) 30,198 30,326
Held to maturity (estimated market value of $1,265 at
March 31, 2009 and $3,336 at December 31, 2008) 1,219 3,275
FHLB stock 9,317 8,330
Loans held for sale 5,575 17,015
Loans 842,922 871,196
Less allowance for loan losses 29,525 36,262
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Net loans 813,397 834,934
Other real estate owned 15,199 11,104
Accrued interest receivable 3,924 3,756
Premises and equipment, net 14,378 14,686
Intangible assets 264 272
Bank-owned life insurance 1,609 11,618
Other assets 8,455 7,737
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Total assets $ 967,257 $ 950,954
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Liabilities and Stockholders' Equity
Deposits $ 767,818 $ 695,562
Short-term borrowings 45,000 106,124
Escrow deposits 631 702
Accrued interest payable 803 563
Accrued expenses and other liabilities 3,997 4,905
Long-term obligations 128,522 123,524
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Total liabilities 946,771 931,380
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Stockholders' equity:
Preferred stock, $1 par value: 3,000 shares authorized,
no shares issued and outstanding at March 31, 2009
or December 31, 2008 -- --
Common stock, $1 par value: 14,000 shares authorized,
6,589 shares issued and outstanding at
March 31, 2009 and December 31, 2008 6,589 6,589
Additional paid-in capital 3,472 3,469
Accumulated other comprehensive income 316 356
Common stock held in grantor trust - 23 shares in 2009 and 2008 (191) (191)
Deferred compensation payable in common stock 191 191
Retained earnings 10,109 9,160
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Total stockholders' equity 20,486 19,574
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Total liabilities and stockholders' equity $ 967,257 $ 950,954
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Book value per common share $ 3.11 $ 2.97
* Derived from audited consolidated financial statements.
COOPERATIVE BANKSHARES, INC. AND SUBSIDIARY
Consolidated Statements of Operations (Unaudited)
Three Months Ended
March 31,
(In thousands, except per share data) 2009 2008
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Interest and dividend income:
Loans $ 11,809 $ 14,547
Securities 357 609
Other 13 34
Dividends on FHLB stock -- 106
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Total interest and dividend income 12,179 15,296
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Interest expense:
Deposits 5,632 7,355
Short-term borrowings 432 174
Long-term obligations 1,294 1,476
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Total interest expense 7,358 9,005
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Net interest income 4,821 6,291
Provision for loan losses 1,991 855
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Net interest income after
provision for loan losses 2,830 5,436
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Noninterest income:
Gain on sale of loans 932 476
Service charges and fees on loans 65 125
Deposit-related fees 531 549
Earnings on bank-owned life insurance 63 89
Other income, net 53 65
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Total noninterest income 1,644 1,304
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Noninterest expense:
Compensation and fringe benefits 1,677 3,259
Occupancy and equipment 1,046 1,028
Professional and consulting fees 1,013 238
FDIC premium 816 140
Advertising 69 142
(Gain) loss on other real estate owned (52) 215
Other 547 607
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Total noninterest expense 5,116 5,629
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Income (loss) before income taxes (642) 1,111
Income tax expense (benefit) (1,591) 359
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Net income $ 949 $ 752
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Net income per common share:
Basic $ 0.14 $ 0.11
Diluted $ 0.14 $ 0.11
Weighted average common shares outstanding:
Basic 6,589 6,567
Diluted 6,589 6,610
Average Yield/Cost Analysis
For the Quarter Ended
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(Dollars in thousands) March 31, 2009 March 31, 2008
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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 $ 31,053 $ 13 0.17% $ 3,826 $ 34 3.55%
Securities:
Available for sale 29,723 317 4.27% 43,014 552 5.13%
Held to maturity 3,143 40 5.09% 4,490 57 5.08%
FHLB stock 9,010 -- 0.00% 7,114 106 5.96%
All loans 877,687 11,809 5.38% 831,988 14,547 6.99%
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Total interest-earning assets 950,616 12,179 5.12% 890,432 15,296 6.87%
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Noninterest-earning assets 17,864 44,525
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Total assets $ 968,480 $ 934,957
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LIABILITIES AND
STOCKHOLDERS' EQUITY
Interest-bearing liabilities:
Deposits $ 709,133 5,632 3.18% $ 678,823 7,355 4.33%
Borrowed funds 193,726 1,726 3.56% 141,236 1,650 4.67%
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Total interest-bearing liabilities 902,859 7,358 3.26% 820,059 9,005 4.39%
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Noninterest-bearing liabilities 44,535 49,308
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Total liabilities 947,394 869,367
Stockholders' equity 21,086 65,590
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Total liabilities and stockholders' equity $ 968,480 $ 934,957
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Net interest income $ 4,821 $ 6,291
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Interest rate spread 1.86% 2.48%
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Net yield on interest-earning assets 2.03% 2.83%
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Percentage of average interest-earning
assets to average interest-bearing
liabilities 105.3% 108.6%
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