Coddle Creek Financial Corp.
Proposed Ticker: - 347 North Main Street / Post Office Box 117
Exchange:NASDAQ-National Market Mooresville, NC 28115
Industry:Financial (SIC Code 6035) (704) 664-4888

Filing Information
Type of Shares:Common Shares Filing Date:9/12/97
U.S. Shares Filed:608,350 Filing Price:$50.00
Non-U.S. Shares Filed:0 Offering Amount: $30,417,500
Primary Shares:608,350 Expenses:$387,000
Secondary Shares:0 Shares Out After:

Primary Underwriting Group
ManagerTierPhone
Trident Securities, Inc.Lead Manager (919) 781-8900

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Brooks, Pierce, McLendon, Humphrey & Leonard, LLP
Bank's Law Firm: Housley Goldberg & Kantarian
Auditor: McGladrey & Pullen

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
6 Month Ending Financials
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/96 6/30/97 6/30/96 6/30/97
Revenue:$8.88$4.52$4.36Assets:$114.16
Net Income:$0.72$0.29$0.43Curr Assets:
EPS:Liabilities:$99.47
Prior EPS:$0.50$0.55Curr Liabilities:
Cash Flow/Oper:$0.72Equity:$14.69
Cash Flow/Fin:-$1.79-$2.31Cash:$2.35
Cash Flow/Inv:-$4.74-$1.79

Business Description
The company is the holding company for Mooresville Savings Bank, SSB. The bank is primarily engaged in the business of attracting deposits from the general public and using such deposits to make mortgage loans secured by residential properties.

Competition
The Bank's market area is a highly competitive market, and the Bank faces significant competition both in attracting deposits and in originating loans. The Bank faces direct competition from a number of financial institutions, many with a state-wide or regional presence, and, in some cases, a national presence. Competition arises from other savings institutions, commercial banks, credit unions and other providers of financial services, many of which are significantly larger than the Bank and, therefore, have greater financial and marketing resources than the Bank. Management estimates that, based upon 1996 comparative data, the Bank had 22% of the deposits in Mooresville and 7.2% of the deposits in Iredell County.

Business Plan
The primary goals of management are to increase the Bank's profitability, monitor its capital position and enhance its banking franchise. The Bank's results of operations are dependent primarily on net interest income, which is the difference between the income earned on its interest-earning assets, such as loans and investments, and the cost of its interest-bearing liabilities, consisting of deposits. The Bank's operations are affected to a much lesser degree by non-interest income, such as transaction and other service fee income, and other sources of income. The Bank's net income is also affected by, among other things, provisions for loan losses and operating expenses. The Bank's principal operating expenses, aside from interest expense, consists of compensation and employee benefits, office occupancy costs, data processing expenses and federal deposit insurance premiums. The Bank's results of operations are also significantly affected by general economic and competitive conditions, particularly changes in market interest rates, government legislation and policies concerning monetary and fiscal affairs, housing and financial institutions and the attendant actions of regulatory authorities.

Use of Proceeds
The proceeds from the proposed offering will be used for general corporate purposes.

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