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SCHEDULE 14A
(RULE 14a-101)
INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A INFORMATION
PROXY STATEMENT PURSUANT TO SECTION 14(a) OF THE SECURITIES
EXCHANGE ACT OF 1934 (AMENDMENT NO. ___)
Filed by the Registrant [x]
Filed by a Party other than the Registrant [ ]
Check the appropriate box:
[ ] Preliminary Proxy Statement [ ] Confidential, for
[ ] Definitive Proxy Statement Use of the
[X] Definitive Additional Materials Commission Only
[ ] Soliciting Material Pursuant to (as permitted by
Rule 14a-11(c) or Rule 14a-12 Rule 4a-6(e)(2))
COOPERATIVE BANKSHARES, INC.
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(Name of Registrant as Specified in its Charter)
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(Name of Person(s) Filing Proxy Statement, if other than the
Registrant)
Payment of Filing Fee (Check the appropriate box):
[x] No Fee Required.
[ ] Fee computed on table below per Exchange Act Rules
14a-6(i)(1) and 0-11.
1. Title of each class of securities to which transaction
applies:
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2. Aggregate number of securities to which transaction
applies:
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3. Per unit price or other underlying value of trans-
action computed pursuant to Exchange Act Rule 0-11
(Set forth the amount on which the filing fee is
calculated and state how it was determined):
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4. Proposed maximum aggregate value of transaction:
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5. Total Fee Paid:
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[ ] Fee paid previously with preliminary materials:
[ ] Check box if any part of the fee is offset as provided by
Exchange Act Rule 0-11(a)(2) and identify the filing for
which the offsetting fee was paid previously. Identify the
previous filing by registration statement number, or the
Form or Schedule and the date of its filing.
1. Amount Previously Paid:
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2. Form, Schedule or Registration Statement No.:
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3 Filing Party:
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4. Date Filed:
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COOPERATIVE
BANKSHARES, INC. NEWS
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P.O. Box 600 www.coop-bank.com
201 Market Street Fax 910-251-1652
Wilmington, NC 28402-0600 800-672-0443 910-343-0181
PRESS RELEASE
COOPERATIVE BANKSHARES REPORTS QUARTERLY EARNINGS
For Immediate Release: April 14, 2000
Wilmington, NC Cooperative Bankshares, Inc. (NASDAQ:
"COOP") reported net income for the quarter ended March 31,
2000, of $274,020 or $0.10 per share, including a gain of
$582,000 on the sale of a branch, a $287,000 loss on the sale of
low yielding securities and a loan loss provision of $700,000.
The decision to increase the loan loss reserve was
considered appropriate in light of the successful expansion in
the commercial loan portfolio in recent months and was not in
response to any significant increase in non-performing assets.
Non-performing assets actually declined during the quarter from
.35% of assets at December 31, 1999 to .19% of assets at March
31, 2000. The expansion of the commercial loan portfolio has
had a positive effect on the Bank's net interest margin with net
interest income increasing 8.2% over the same period a year ago.
Total assets at March 31, 2000 were $410.5 million;
stockholder's equity was $29.4 million or $10.86 per share and
represented 7.17% of assets.
Cooperative Bankshares, Inc. is the parent company of
Cooperative Bank. Originally chartered in 1898, cooperative
provides a full range of financial services through 16 offices
in eastern North Carolina.
For Additional Information
--------------------------
Frederick Willetts, III, Chairman
Daniel W. Eller, Senior Vice President
Linda B. Garland, Vice President
Full-Service Community Banking Since 1898
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<TABLE>
<CAPTION>
COOPERATIVE BANKSHARES, INC. UNAUDITED SELECTED FINANCIAL DATA
201 MARKET ST. NASDAQ SYMBOL: COOP
WILMINGTON, NC 28401
________________________________________________________________________________________________________________
BALANCES AS OF: 3/31/00 12/31/99 9/30/99 6/30/99 3/31/99
________________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C>
ASSETS $410,465,246 $410,145,845 $389,485,916 $383,842,885 $383,160,399
STOCKHOLDERS' EQUITY 29,418,290 29,343,300 29,615,044 29,024,412 30,147,510
DEPOSITS 316,411,852 304,834,455 308,076,936 303,248,120 298,986,021
BOOK VALUE (2,709,078 SHARES) 10.86 10.92 10.73 10.52 10.43
NON-PERFORMING ASSETS:
ACCRUING LOANS =>90 DAYS 644,409 933,679 1,334,691 1,111,347 791,928
NON-ACCRUAL LOANS - 266,692 74,521 - -
FORECLOSED REO 126,343 244,626 208,604 140,664 25,352
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TOTAL NON-PERFORMING $ 770,752 $ 1,444,997 $ 1,617,816 $ 1,252,011 $ 817,280
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________________________________________________________________________________________________________________
FOR THE QUARTER ENDED: 3/31/00 12/31/99 9/30/99 6/30/99 3/31/99
________________________________________________________________________________________________________________
NET INTEREST MARGIN 3.23% 3.19% 3.23% 3.24% 3.16%
(net interest income/average interest-
bearing assets)
EARNING ASSETS/LIABILITIES 107.60% 107.60% 107.50% 107.50% 107.40%
CAPITAL/ASSET RATIOS: 7.17% 7.15% 7.60% 7.56% 7.87%
________________________________________________________________________________________________________________
FOR THE QUARTER ENDED: 3/31/00 12/31/99 9/30/99 6/30/99 3/31/99
________________________________________________________________________________________________________________
NET INCOME $ 247,020 $ 686,758 $ 679,325 $ 679,396 $ 640,951
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NET INCOME PER SHARE $ 0.10 $ 0.24 $ 0.23 $ 0.23 $ 0.20
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DILUTED WEIGHTED AVERAGE # OF
SHARES & COMMON STOCK EQUIVALENT 2,826,566 2,889,818 2,912,665 2,953,366 3,140,032
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ALLOWANCE FOR LOAN LOSSES
PROVISION $ 700,000 $ 45,000 $ 45,000 $ 45,000 $ 75,000
CHARGE OFFS 61,597 38,979 17,844 11,089 26,122
RECOVERIES 23,023 524 292 5,179 6,178
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BALANCE $ 1,967,807 $ 1,306,381 $ 1,299,836 $ 1,272,388 $ 1,233,298
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<FN>
* Earnings per share are computed based on the weighted average number of common and dilutive common
equivalent shares (stock options) outstanding, after giving retroactive effect to any stock dividends
and splits.
</FN>
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