South Street Financial Corp. - Rule 144 Information

Background
South Street Financial Corporation (the “Company”) was founded in 1996 as a bank holding company registered with the Board of Governors of the Federal Reserve System under the Bank Holding Company Act of 1956, as amended, and the savings bank holding company laws of North Carolina. The Company, a North Carolina corporation, has its principal office at 103 North Second Street, Albemarle, North Carolina. The Company’s primary activity is owning Home Savings Bank of Albemarle, Inc. (the “Bank”), a North Carolina-chartered stock savings bank.

Home Savings Bank
The Bank is engaged primarily in the business of attracting retail deposits from the general public and using such deposits to make mortgage loans secured by real estate. The Bank makes mortgage loans secured by residential real property, including one-to-four family residential real estate loans, home equity line of credit loans and other subordinate lien loans, loans secured by improved nonresidential real property, loans secured by undeveloped real property, and construction loans. It also makes a limited number of loans that are not secured by real property, such as loans secured by savings accounts. The Bank’s primary source of revenue is interest income from its lending activities. Its other major sources of revenue are interest and dividend income from investments and mortgage-backed securities, interest income from its interest-bearing deposit balances in other depository institutions and fee income from its lending and deposit activities. The major expenses of the Bank are interest on deposits and non-interest expenses such as compensation and fringe benefits, federal deposit insurance premiums, data processing expenses and branch occupancy and related expenses.

Property
The Bank’s Main Office and Corporate Headquarters is at 103 North Second Street in Albemarle, North Carolina. The Bank has one full-service branch at 155 West South Street in Albemarle, one full-service branch at 102 South Street in Locust, North Carolina and one full-service branch at 117 North Main Street in Oakboro, North Carolina.

Company Securities
The Company has two classes of stock: (i) common and (ii) Series A Preferred. Neither class of stock has any par value. As of September 30, 2008, there were 2,700,800 shares of common stock outstanding and 59,186 shares of Series A Preferred stock outstanding. The Company’s transfer agent is Registrar and Transfer Company, 10 Commerce Drive, Cranford, New Jersey 07016, telephone: (908) 497-2300.