FORM 4 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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(Print or Type Responses)

1. Name and Address of Reporting Person * WRIGHT O RICHARD JR   2. Issuer Name and Ticker or Trading Symbol COOPERATIVE BANKSHARES INC [COOP] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) __X__ Director _____ 10% Owner _____ Officer (give title below) _____ Other (specify below) (Last) (First) (Middle) 201 MARKET STREET 3. Date of Earliest Transaction (Month/Day/Year) 08/31/2006 (Street) WILMINGTON, NC 28401 4. If Amendment, Date Original Filed(Month/Day/Year) 6. Individual or Joint/Group Filing(Check Applicable Line) _X_ Form filed by One Reporting Person ___ Form filed by More than One Reporting Person (City) (State) (Zip) Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned

1.Title of Security (Instr. 3) 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price Common Stock 08/31/2006   M   2,000 A $ 4.92 39,462 (1) (2) (3) D   Common Stock               50,502 (3) (4) I By IRA

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)

1. Title of Derivative Security (Instr. 3)

2. Conversion or Exercise Price of Derivative Security

3. Transaction Date (Month/Day/Year)

3A. Deemed Execution Date, if any (Month/Day/Year)

4. Transaction Code (Instr. 8)

5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5)

6. Date Exercisable and Expiration Date (Month/Day/Year)

7. Title and Amount of Underlying Securities (Instr. 3 and 4)

8. Price of Derivative Security (Instr. 5)

9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)

10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4)

11. Nature of Indirect Beneficial Ownership (Instr. 4)

Code

V

(A)

(D)

Date Exercisable

Expiration Date

Title

Amount or Number of Shares

Stock Option (Right to Buy)

$ 4.92 (5)

08/31/2006

M

2,000

07/15/1999(6)

07/15/2009

Common Stock

2,000 (5)

$ 0

16,000 (5)

D

Stock Option (Right to Buy)

$ 12 (7)

12/29/2004(6)

12/29/2014

Common Stock

4,500 (7)

4,500 (7)

D

Stock Option (Right to Buy)

$ 13.77 (8)

12/14/2005(6)

12/14/2015

Common Stock

3,000 (8)

3,000 (8)

D

Reporting Owners

Reporting Owner Name / Address	Relationships
	Director	10% Owner	Officer	Other
WRIGHT O RICHARD JR 201 MARKET STREET WILMINGTON, NC 28401	X

Signatures

/s/ Wright, Jr., O. Richard		08/31/2006
**Signature of Reporting Person		Date

Explanation of Responses:

*	If the form is filed by more than one reporting person, see Instruction 4(b)(v).
**	Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1)	On June 30, 2006, the common stock of Cooperative Bankshares, Inc. split 3-for-2, resulting in the reporting person's acquisition of 12,452 additional shares of common stock.
(2)	The reporting person no longer has a reportable beneficial interest in 138 shares of Cooperative Bankshares, Inc. common stock owned by his first daughter and 138 shares of Cooperative Bankshares, Inc. common stock owned by his second daughter, which were included in the reporting person's prior ownership reports.
(3)	Reflects stock acquired through Cooperative Bankshares Dividend Reinvestment Plan exempt from reporting under Rule 16a-11.
(4)	On June 30, 2006, the common stock of Cooperative Bankshares, Inc. split 3-for-2, resulting in the reporting person's acquisition of 16,785 additional shares of common stock.
(5)	This option was previously reported as covering 12,000 shares at an exercise price of $7.37 per share, but was adjusted to reflect the 3-for-2 stock split on June 30, 2006.
(6)	Stock Options fully vested on date of grant.
(7)	This option was previously reported as covering 3,000 shares at an exercise price of $18.00 per share, but was adjusted to reflect the 3-for-2 stock split on June 30, 2006.
(8)	This option was previously reported as covering 2,000 shares at an exercise price of $20.66 per share, but was adjusted to reflect the 3-for-2 stock split on June 30, 2006.

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