Aug. 1--The chance to gain a foothold in the lucrative Interstate 77 banking corridor led First Community Bancshares Inc. to buy Coddle Creek Financial Corp. of Mooresville for $33.1 million, the bank said yesterday.

Coddle Creek is the holding company for Mooresville Savings Bank, which has a branch in Mooresville in Iredell County, and Cornelius and Huntersville in Mecklenburg County. It has $158.6 million in total assets, with the bulk at the Mooresville branch.

Under the proposed deal, announced after the stock market closed yesterday, Coddle Creek shareholders would get $19.60 in cash and 0.9 shares of First Community common stock for each common share of Coddle Creek. The deal requires shareholder and regulatory approval, but it is expected to close in the fourth quarter, the banks said.

First Community, based in Bluefield, Va., has $2.05 billion in total assets. It has been among the most aggressive community banks in the Southeast in making deals. Coddle Creek represents its ninth bank purchase, including its second in North Carolina after buying Blue Ridge Bank in April 1997.

However, it is First Community's first bank deal since March 2004.

"We are very happy to be joining forces with Mooresville Savings Bank as we prepare to expand our banking network into the very attractive Lake Norman region of North Carolina," John Mendez, the president and chief executive of First Community, said in a statement.

"This represents significant progress toward our strategic plan for expanding in the greater Charlotte area, where we currently have a loan-production office," Mendez said.

Iredell has one of the most competitive banking markets in the state because of the Lake Norman residential market.

There are 18 banks in the county, including 11 community-bank competitors, such as Yadkin Valley Financial Corp. and Southern Community Financial Corp.

First Community would gain the No. 6 market share in Iredell, at 5.3 percent, with the purchase.

Since First Community entered the Triad in April 2003, it has opened five branches in Forsyth County and established a North Carolina regional headquarters in Winston-Salem.

First Community said it is considering adding more branches in the three communities served by Mooresville Savings Bank.

Richard Craver can be reached at 727-7376 or at rcraver@wsjournal.com.

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Story Source: Winston-Salem Journal