South Financial (TSFG) 8-K The South Financial Group Reports First Quarter Results

Exhibit 99.2

Quarterly Financial Data Supplement (Unaudited)
First Quarter 2009

	Page
Financial Summary	1
Consolidated Statements of Income (Loss)	2
Details for Noninterest Income and Noninterest Expenses	3
Consolidated Balance Sheets	4
Investment Securities Portfolio Analysis	5
Investment Securities Portfolio Credit Risk Profile	6
Loan Portfolio Composition Based on Loan Purpose and Loan Growth, Core vs. Non-Core	7
Summary of Credit Quality and Allowance for Credit Losses	8
Commercial Real Estate Loans	9
Types of Customer Funding and Customer Funding Growth	10
Wholesale Borrowings	11
Summary of Capital, Capital Ratios, Unrealized Gains (Losses) on Available for Sale Securities and Market Rates on Treasury Notes	12
Comparative Average Balance Sheets - Yields and Costs	13-14
GAAP to Non-GAAP Reconciliation: Earnings, ROA and ROE	15-17
GAAP to Non-GAAP Reconciliation: Noninterest income as a % of total revenue and efficiency ratios	18-20

See disclosure of explanation of TSFG’s use of certain Non-GAAP financial measures in the earnings release.

THE SOUTH FINANCIAL GROUP, INC. AND SUBSIDIARIES
FIRST QUARTER 2009 FINANCIAL SUMMARY

Changes vs. prior quarter, unless indicated otherwise:
Quarterly EPS
•	Net loss available to common shareholders of $90.8 million; operating loss of $88.6 million
•	Net loss per diluted share of $1.10; operating loss per diluted share of $1.08
•	Preferred stock dividends totaled $16.4 million, up from $9.4 million for previous quarter due to deemed dividend on induced conversion of mandatorily convertible preferred stock
•	Average diluted shares of 82.2 million, up 10.4% versus prior quarter; up 13.5% versus prior year
Revenue
•	Total revenue, defined as net interest income plus noninterest income, of $108.8 million
•	Operating revenues of $112.9 million, down $8.4 million
	— Non-operating items: $3.0 million net loss on securities
•	Tax-equivalent net interest income of $86.2 million, down $6.7 million
	— Net interest margin of 2.83%, down 14 basis points from 2.97%
	— Average earning assets of $12.3 billion, down $153.1 million
•	Operating noninterest income of $26.7 million, down $1.8 million from prior quarter; $2.1 million from prior year
Average Balance Sheet Growth
•	Average loans decreased $155.9 million or 1.5% compared to prior quarter
•	Average securities, up $3.7 million since prior quarter; $45.0 million since 1Q08
•	Average customer funding, defined as total deposits less brokered deposits plus customer sweep accounts, down $13.4 million or 0.2% linked-quarter
•	Average wholesale borrowings, including brokered deposits and excluding customer sweep accounts, down $227.1 million or 5.6% linked-quarter
Noninterest Expenses and Operating Efficiency
•	Noninterest expenses of $90.2 million
	— Non-operating items: $52,000 gain on early extinguishment of debt, and a loss of $676,000 on repurchase of auction rate securities
•	Operating noninterest expenses of $89.6 million, down $2.5 million from prior quarter
	— Project NOW and other expense initiatives showing progress
	— FDIC insurance premiums (included in regulatory assessments) up $1.2 million from prior quarter; $2.6 million from prior year
	— Excluding credit-related expenses and FDIC insurance premiums, down $6.0 million from prior quarter
Credit Quality
•	Nonperforming assets of $512.9 million or 5.08% of loans and foreclosed property
•	Nonperforming loans held for investment increased to $422.9 million from $349.4 million at December 31, 2008; nonperforming loans held for sale totaled $12.8 million
•	Net loan charge-offs of $109.1 million, or 4.36% annualized as a % of average loans held for investment
•	Provision for credit losses exceeded net loan charge-offs by $33.6 million and increased allowance
•	Allowance for credit losses of $283.4 million or 2.84% of loans held for investment, up from 2.45% prior quarter
•	Allowance coverage of nonperforming loans held for investment of 0.66 times, a decrease from 0.71 times at December 31, 2008
Capital
•	Tangible common equity to tangible asset ratio of 6.05%, or 7.51% assuming conversion of the mandatorily convertible preferred stock
•	Common tangible book value per share assuming conversion of the mandatorily convertible preferred stock of $8.59, compared to $9.40 at December 31, 2008
•	After-tax unrealized gain on available for sale securities increased $20.3 million from prior quarter
•	Tier 1 capital ratio of 12.10%, down from 12.86% at December 31, 2008; capital ratios exceed all “well capitalized” regulatory requirements

1

THE SOUTH FINANCIAL GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(dollars in thousands, except share data) (unaudited)

	Three Months Ended
	3/31/09			12/31/08			9/30/08			6/30/08			3/31/08
Interest Income
Interest and fees on loans	$	124,119		$	145,289		$	155,433		$	158,016		$	171,228
Interest and dividends on securities:
Taxable		20,548			20,575			20,186			20,591			20,392
Exempt from federal income taxes		2,234			2,351			2,422			2,479			2,693
Total interest and dividends on securities		22,782			22,926			22,608			23,070			23,085
Interest on short-term investments		1			10			197			106			72
Total interest income		146,902			168,225			178,238			181,192			194,385
Interest Expense
Interest on deposits		54,843			65,646			69,071			63,180			77,106
Interest on borrowed funds		7,041			10,946			13,548			17,807			24,573
Total interest expense		61,884			76,592			82,619			80,987			101,679
Net Interest Income		85,018			91,633			95,619			100,205			92,706
Provision for Credit Losses		142,627			122,926			84,608			63,763			73,292
Net interest income after provision for credit losses		(57,609	)		(31,293	)		11,011			36,442			19,414
Noninterest Income		23,741			30,012			28,665			32,187			31,103
Noninterest Expenses		90,241			342,093			94,157			87,617			268,366
Income (loss) before income taxes		(124,109	)		(343,374	)		(54,481	)		(18,988	)		(217,849	)
Income tax expense (benefit)		(49,706	)		(33,435	)		(29,526	)		(8,056	)		(16,557	)
Net Income (Loss)		(74,403	)		(309,939	)		(24,955	)		(10,932	)		(201,292	)
Preferred stock dividends and other (1)		(16,408	)		(9,424	)		(6,257	)		(5,840	)		(137	)
Net Income (Loss) Available to Common Shareholders	$	(90,811	)	$	(319,363	)	$	(31,212	)	$	(16,772	)	$	(201,429	)
Average common shares outstanding, basic		82,223,190			74,505,656			72,755,480			72,611,024			72,449,437
Average common shares outstanding, diluted (2)		82,223,190			74,505,656			72,755,480			72,611,024			72,449,437
Earnings (loss) per common share, basic	$	(1.10	)	$	(4.29	)	$	(0.43	)	$	(0.23	)	$	(2.78	)
Earnings (loss) per common share, diluted		(1.10	)		(4.29	)		(0.43	)		(0.23	)		(2.78	)
Cash dividends declared per common share		0.01			0.01			0.01			0.01			0.19

(1)	In first quarter 2009, includes $6.5 million for the value of common shares issued as an inducement for early conversion of 45,474 shares of preferred stock.
(2)	Average diluted shares exclude convertible preferred stock, warrants, and outstanding equity awards since either their effect would be antidilutive or the exercise price was greater than the average market price of the common shares.

2

THE SOUTH FINANCIAL GROUP, INC. AND SUBSIDIARIES
DETAILS FOR NONINTEREST INCOME AND NONINTEREST EXPENSES
(dollars in thousands) (unaudited)

	Three Months Ended
	3/31/09			12/31/08			9/30/08			6/30/08			3/31/08
Noninterest Income
Service charges on deposit accounts	$	9,268		$	10,149		$	11,376		$	10,986		$	10,429
Debit card income, net		1,925			1,867			2,006			2,056			1,876
Customer service fee income		1,209			1,221			1,425			1,358			1,331
Total customer fee income		12,402			13,237			14,807			14,400			13,636
Retail investment services, net		2,010			1,751			2,294			2,120			1,546
Insurance income		2,457			2,266			2,368			2,388			3,060
Trust and investment management income		1,465			1,437			1,728			1,857			1,666
Benefits administration fees		642			833			813			734			756
Total wealth management income		6,574			6,287			7,203			7,099			7,028
Mortgage banking income		1,205			1,038			879			1,858			1,485
Bank-owned life insurance		2,502			3,939			2,881			2,910			3,147
Merchant processing income, net		610			697			916			809			857
Gain (loss) on certain derivative activities		1,135			(256	)		(199	)		236			12
Other (1)		2,267			3,509			2,903			2,999			2,638
Operating noninterest income (noninterest income, excluding non-operating items)		26,695			28,451			29,390			30,311			28,803
Gain (loss) on securities		(2,954	)		1,561			(725	)		1,876			396
Gain on Visa IPO share redemption		—			—			—			—			1,904
Non-operating noninterest (loss) income		(2,954	)		1,561			(725	)		1,876			2,300
Total noninterest income	$	23,741		$	30,012		$	28,665		$	32,187		$	31,103
Noninterest Expenses
Salaries and wages	$	35,191		$	35,348		$	37,700		$	36,136		$	34,853
Employee benefits		8,923			10,537			9,252			9,113			9,298
Occupancy		9,436			9,946			9,770			8,972			8,623
Furniture and equipment		6,945			7,454			6,991			6,733			6,383
Professional services		4,507			4,533			4,573			3,579			3,527
Project NOW expense		1,298			271			—			—			—
Advertising and business development		1,281			2,611			2,114			2,731			2,471
Telecommunications		1,526			1,613			1,628			1,476			1,423
Amortization of intangibles		1,291			1,417			1,474			1,589			1,658
Regulatory assessments		4,655			3,452			3,020			2,374			2,077
Loan collection and foreclosed asset expense		4,891			4,558			4,491			2,303			1,079
Loss on nonperforming loans held for sale (1)		1,838			283			—			—			—
(Gain) loss on OREO		124			(316	)		765			(3	)		187
Other		7,711			10,361			7,883			9,667			8,672
Operating noninterest expenses (noninterest expenses, excluding non-operating items)		89,617			92,068			89,661			84,670			80,251
Goodwill impairment		—			237,618			—			—			188,431
Employment contracts and severance		—			9,599			4,621			2,299			—
Branch acquisition and conversion costs		—			—			—			731			—
(Gain) loss on early extinguishment of debt		(52	)		1,747			(125	)		(83	)		547
Visa-related litigation		—			—			—			—			(863	)
Loss on derivative collateral		—			1,061			—			—			—
Loss on repurchase of auction rate securities		676			—			—			—			—
Non-operating noninterest expenses		624			250,025			4,496			2,947			188,115
Total noninterest expenses	$	90,241		$	342,093		$	94,157		$	87,617		$	268,366

⁽¹⁾ In first quarter 2009, TSFG reclassified loss on non-performing loans held for sale from noninterest income to noninterest expense.

3

THE SOUTH FINANCIAL GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(dollars in thousands) (unaudited)

	3/31/09			12/31/08			9/30/08			6/30/08			3/31/08
Assets
Cash and due from banks	$	152,725		$	292,219		$	176,293		$	224,991		$	223,185
Interest-bearing bank balances		1			166			35			55,713			10,035
Federal funds sold and securities purchased to resell		—			—			—			50,000			—
Securities
Available for sale		2,106,281			2,107,194			1,995,681			1,987,232			2,069,898
Held to maturity		18,039			22,709			24,518			26,677			31,468
Total securities		2,124,320			2,129,903			2,020,199			2,013,909			2,101,366
Loans held for sale		29,726			30,963			37,575			21,871			16,119
Loans held for investment		9,986,681			10,192,072			10,299,640			10,475,731			10,275,653
Less: Allowance for loan losses		(280,156	)		(247,086	)		(200,748	)		(191,727	)		(174,420	)
Net loans held for investment		9,706,525			9,944,986			10,098,892			10,284,004			10,101,233
Premises and equipment, net		285,580			282,472			274,258			265,853			243,628
Accrued interest receivable		42,927			50,388			51,207			56,118			56,764
Goodwill		224,161			224,161			461,458			463,300			462,572
Other intangible assets, net		20,568			21,859			23,112			24,586			25,521
Other assets		698,714			625,209			552,149			516,525			491,297
	$	13,285,247		$	13,602,326		$	13,695,178		$	13,976,870		$	13,731,720
Liabilities and Shareholders’ Equity
Liabilities
Deposits
Noninterest-bearing	$	1,067,953		$	1,041,140		$	1,022,632		$	1,107,115		$	1,108,623
Interest-bearing customer deposits		6,316,548			6,455,810			6,412,343			6,388,904			6,466,940
Interest-bearing brokered deposits		1,842,577			1,908,767			2,573,833			2,390,350			1,875,969
Total deposits		9,227,078			9,405,717			10,008,808			9,886,369			9,451,532
Short-term borrowings		1,342,088			1,626,374			1,188,929			1,581,601			1,917,450
Long-term debt		931,977			707,769			773,109			772,957			799,217
Accrued interest payable		74,032			71,465			61,463			55,880			58,705
Other liabilities		157,889			170,470			129,255			120,861			126,495
Total liabilities		11,733,064			11,981,795			12,161,564			12,417,668			12,353,399
Shareholders’ equity
Mandatorily convertible preferred stock		190,026			238,700			249,000			250,000			—
Perpetual preferred stock		328,523			327,679			—			—			—
Common stock		84,781			74,644			73,006			72,796			72,630
Surplus		1,182,423			1,135,920			1,104,697			1,101,524			1,110,356
Retained earnings (deficit)		(291,199	)		(199,540	)		120,578			152,567			170,186
Accumulated other comprehensive income (loss), net of income tax		57,018			42,558			(13,667	)		(17,685	)		25,149
Other, net		611			570			—			—			—
Total shareholders’ equity		1,552,183			1,620,531			1,533,614			1,559,202			1,378,321
	$	13,285,247		$	13,602,326		$	13,695,178		$	13,976,870		$	13,731,720

4

THE SOUTH FINANCIAL GROUP, INC. AND SUBSIDIARIES
INVESTMENT SECURITIES PORTFOLIO ANALYSIS
(dollars in thousands) (unaudited)

	3/31/09			12/31/08			9/30/08			6/30/08			3/31/08
Investment Securities Portfolio
Available for sale (at fair value):
U.S. Treasury	$	2,042		$	2,069		$	28,084		$	27,703		$	28,798
U.S. Government agencies		313,159			313,729			327,933			335,593			337,775
Agency mortgage-backed securities		1,489,583			1,468,639			1,312,116			1,276,145			1,343,108
Private label mortgage-backed securities		12,462			12,771			15,152			15,544			16,209
State and municipal		241,478			262,248			260,532			270,521			279,788
Other investments (1)		47,557			47,738			51,864			61,726			64,220
Total available for sale securities		2,106,281			2,107,194			1,995,681			1,987,232			2,069,898
Held to maturity (at amortized cost)		18,039			22,709			24,518			26,677			31,468
Total securities	$	2,124,320		$	2,129,903		$	2,020,199		$	2,013,909		$	2,101,366
Total securities as a percentage of total assets		16.0	%		15.7	%		14.8	%		14.4	%		15.3	%

	March 31, 2009
	Amortized Cost		Percentage of Total			Duration			Book Yield
Debt Securities
U.S. Treasury	$	2,001		0.1	%		0.4			5.92	%
U.S. Government agencies		306,792		15.2			2.1			4.42
Mortgage-backed securities:
Collateralized mortgage obligations		818,520		40.6			0.9			4.55
Adjustable rate mortgages		234,794		11.7			2.3			4.49
Pass-through		417,923		20.8			2.9			4.89
State and municipal		234,549		11.6			2.6			5.08
Total available for sale debt securities	$	2,014,579		100.0	%		1.9	(2)		4.66	%
Fixed interest rate:
Mortgage-backed securities	$	1,230,466		61.1	%		1.6			4.67	%
Other		543,342		27.0			2.3			4.71
Variable interest rate:
Mortgage-backed securities		240,771		11.9			2.4			4.49
Total available for sale debt securities	$	2,014,579		100.0	%		1.9	(2)		4.66	%

Projected Interest Rate Shock for Debt Securities

Interest Rate Scenario	Estimated Impact on Fair Value			Duration
Up 2.00%		(6.3	) %		4.5
Up 1.00%		(2.4	)		3.5
Flat		—			1.9

The estimated decrease in fair value for a five year U.S. Treasury Note when interest rates increase 100 basis points is 4.64%.

(1)	Other investments in available for sale securities include corporate bonds, FHLB stock, community bank stocks, and other equity securities. Also, excludes certain other investments recorded in other assets totaling $21.2 million.
(2)	Compared to 2.9 years duration at December 31, 2008 due to overall lower interest rates and anticipated prepayments.

5

THE SOUTH FINANCIAL GROUP, INC. AND SUBSIDIARIES
INVESTMENT SECURITIES PORTFOLIO CREDIT RISK PROFILE
(dollars in thousands) (unaudited)

	March 31, 2009					December 31, 2008
	Balance		% of Total			Balance		% of Total
Government and agency
U.S. Treasury	$	2,042		0.1	%	$	2,069		0.1	%
U.S. Government agencies (1)		313,159		14.7			313,729		14.7
Agency mortgage-backed securities (MBS) (1)(2)		1,489,583		70.1			1,468,639		68.9
Federal Home Loan Bank Stock		45,833		2.2			35,536		1.7
Total government and agency		1,850,617		87.1			1,819,973		85.4
State and municipal (3)(4)(5)
Pre-funded with collateral or AAA-rated backed by Texas Permanent School Fund		177,545		8.3			188,598		8.9
Underlying issuer or collateral rated A or better (including South Carolina State Aid)		71,465		3.4			81,238		3.8
Underlying issuer or collateral rated BBB		8,322		0.4			7,344		0.3
Non-rated		2,085		0.1			7,677		0.4
Total state and municipal		259,417		12.2			284,857		13.4
Corporate bonds AA or A-rated		—		—			9,963		0.5
Private label mortgage-backed securities AAA-rated (2)		12,462		0.6			12,771		0.6
Community bank stocks and other		1,824		0.1			2,339		0.1
Total securities	$	2,124,320		100.0	%	$	2,129,903		100.0	%
Percent of total securities:
Rated A or higher				99.4	%				99.2	%
Investment grade				99.8	%				99.5	%

(1)	At March 31, 2009, these numbers include, in the aggregate, $172.6 million and $1.5 billion related to senior debt and MBS, respectively, issued by FNMA and FHLMC.
(2)	Current policies restrict MBS/CMO purchases to agency-backed and a small percent of private-label securities and prohibit securities collateralized by sub-prime assets.
(3)	At March 31, 2009 and December 31, 2008, state and municipal securities include $17.9 million and $22.6 million, respectively, of securities held to maturity at amortized cost.
(4)	Ratings shown above do not reflect the benefit of guarantees by bond insurers. At March 31, 2009, $38.3 million of municipal bonds are guaranteed by bond insurers. At December 31, 2008, $39.1 million of municipal bonds are guaranteed by bond insurers.
(5)	At March 31, 2009, the breakdown by current bond rating is as follows: $177.5 million pre-funded with collateral or AAA-rated backed Texas Permanent School Fund, $7.5 million AAA-rated, $69.6 million AA or A-rated, $2.7 million BBB-rated, and $2.1 million non-rated.

Note: Within each category, securities are ordered based on risk assessment from lowest to highest. TSFG holds no collateralized debt obligations.

6

THE SOUTH FINANCIAL GROUP, INC. AND SUBSIDIARIES
LOAN PORTFOLIO COMPOSITION BASED ON LOAN PURPOSE AND LOAN GROWTH, CORE VS. NON-CORE
(dollars in thousands) (unaudited)

	3/31/09			12/31/08			9/30/08			6/30/08			3/31/08
Commercial Loans
Commercial and industrial	$	2,645,871		$	2,722,611		$	2,824,117		$	2,891,007		$	2,788,980
Owner - occupied real estate		1,285,530			1,270,746			1,206,597			1,183,618			1,107,069
Commercial real estate		4,042,871			4,074,331			4,094,164			4,162,248			4,156,522
		7,974,272			8,067,688			8,124,878			8,236,873			8,052,571
Consumer Loans
Indirect - sales finance		573,653			635,637			680,413			728,433			710,806
Consumer lot loans		198,032			225,486			249,062			266,242			291,378
Direct retail		90,999			95,397			100,257			99,951			101,278
Home equity		813,015			813,201			784,357			781,120			754,344
		1,675,699			1,769,721			1,814,089			1,875,746			1,857,806
Mortgage Loans		336,710			354,663			360,673			363,112			365,276
Total loans held for investment	$	9,986,681		$	10,192,072		$	10,299,640		$	10,475,731		$	10,275,653
Percentage of Loans Held for Investment
Commercial and industrial		26.4	%		26.7	%		27.4	%		27.6	%		27.1	%
Owner - occupied real estate		12.9			12.5			11.7			11.3			10.8
Commercial real estate		40.5			40.0			39.8			39.7			40.5
Consumer		16.8			17.3			17.6			17.9			18.1
Mortgage		3.4			3.5			3.5			3.5			3.5
Total		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
	For The Period Ended
	3/31/09			12/31/08			9/30/08			6/30/08			3/31/08
Growth in Loans Held for Investment (1)
Growth vs. prior quarter, annualized		(8.2	)%		(4.2	)%		(6.7	)%		7.8	%		2.5	%
Growth year-to-date, annualized		(8.2	)		(0.2	)		1.1			5.2			2.5
LOAN PORTFOLIO COMPOSITION — CORE AND NON-CORE LOANS (BASED ON ABILITY TO BUILD/EXPAND BANKING RELATIONSHIP)
	3/31/09			12/31/08
Core Relationship Loans
Commercial	$	6,353,401		$	6,305,111
Consumer and mortgage		1,178,809			1,202,258
Total Core		7,532,210			7,507,369
Non-Core Loans
Commercial		1,620,871			1,762,577
Indirect - sales finance		569,124			635,637
Consumer lot loans		192,903			222,416
Other consumer and mortgage		71,573			64,073
Total Non-Core		2,454,471			2,684,703
Total loans held for investment	$	9,986,681		$	10,192,072

⁽¹⁾ At December 31, 2007, loans held for investment totaled $10,213,420.

7

THE SOUTH FINANCIAL GROUP, INC. AND SUBSIDIARIES
SUMMARY OF CREDIT QUALITY AND ALLOWANCE FOR CREDIT LOSSES
(dollars in thousands) (unaudited)

	At and for the Three Months Ended
	3/31/09			12/31/08			9/30/08			6/30/08			3/31/08
Credit Quality
Loans held for investment	$	9,986,681		$	10,192,072		$	10,299,640		$	10,475,731		$	10,275,653
Allowance for loan losses		280,156			247,086			200,748			191,727			174,420
Allowance for credit losses		283,425			249,874			203,000			193,825			177,016
Nonperforming loans held for investment (1)		422,950			349,382			237,812			218,726			222,357
Nonperforming loans held for sale		12,766			16,282			22,576			—			—
Foreclosed property (other real estate owned and personal property repossessions)		77,210			48,993			30,503			21,780			8,227
Nonperforming assets	$	512,926		$	414,657		$	290,891		$	240,506		$	230,584
Restructured loans not included in nonperforming assets (1)	$	11,073		$	6,249		$	2,279		$	1,425		$	1,433
Nonperforming loans as a % of loans held for investment		4.24	%		3.43	%		2.31	%		2.09	%		2.16	%
Nonperforming assets as a % of loans and foreclosed property (2)		5.08			4.04			2.81			2.29			2.24
Allowance for loan losses as a % of loans held for investment		2.81			2.42			1.95			1.83			1.70
Allowance for credit losses as a % of loans held for investment		2.84			2.45			1.97			1.85			1.72
Allowance for loan losses to nonperforming loans held for investment		0.66	x		0.71	x		0.84	x		0.88	x		0.78	x
Impaired loans	$	369,339		$	287,497		$	198,018		$	195,774		$	206,621
Specific allowance for impaired loans		66,988			44,418			29,911			39,238			32,070
Loans past due 90 days or more (interest accruing)		6,444			47,481			12,899			8,779			9,588
Net loan charge-offs		109,076			76,052			75,433			46,954			24,971
Average loans held for investment		10,154,853			10,308,823			10,441,580			10,435,248			10,221,424
Net loan charge-offs as a % of average loans held for investment (annualized)		4.36	%		2.93	%		2.87	%		1.81	%		0.98	%
Allowance for Loan Losses
Balance at beginning of period	$	247,086		$	200,748		$	191,727		$	174,420		$	126,427
Provision for loan losses		142,146			122,390			84,454			64,261			72,964
Loans charged-off		(110,443	)		(78,297	)		(76,558	)		(48,523	)		(27,583	)
Recoveries of loans previously charged-off		1,367			2,245			1,125			1,569			2,612
Balance at end of period	$	280,156		$	247,086		$	200,748		$	191,727		$	174,420
Reserve for Unfunded Lending Commitments
Balance at beginning of period	$	2,788		$	2,252		$	2,098		$	2,596		$	2,268
Provision for unfunded lending commitments		481			536			154			(498	)		328
Balance at end of period	$	3,269		$	2,788		$	2,252		$	2,098		$	2,596
Allowance for Credit Losses
Balance at beginning of period	$	249,874		$	203,000	��	$	193,825		$	177,016		$	128,695
Provision for credit losses		142,627			122,926			84,608			63,763			73,292
Loans charged-off		(110,443	)		(78,297	)		(76,558	)		(48,523	)		(27,583	)
Recoveries of loans previously charged-off		1,367			2,245			1,125			1,569			2,612
Balance at end of period	$	283,425		$	249,874		$	203,000		$	193,825		$	177,016

(1)	During first quarter 2009, TSFG began excluding restructured loans accruing interest from its nonperforming loans. Prior periods have been reclassified to conform to the current presentation.
(2)	Excluding nonperforming loans held for sale, nonperforming assets as a % of loans held for investment and foreclosed property totaled 4.97% at March 31, 2009, 3.89% at December 31, 2008, and 2.60% at September 30, 2008.

8

THE SOUTH FINANCIAL GROUP, INC. AND SUBSIDIARIES
COMMERCIAL REAL ESTATE LOANS
(dollars in millions) (unaudited)

	3/31/09 Commercial Real Estate (“CRE”) Loans by Geography (1)
	SC, Excl Coastal			Coastal SC			Western NC			Central FL			North FL			South FL			Tampa Bay			Total CRE Loans			% of Loans HFI
CRE Loans by Product Type:
Completed income property	$	533		$	357		$	402		$	212		$	360		$	147		$	191		$	2,202			22	%
Residential A&D		98			64			158			35			72			17			27			471			5
Commercial A&D		43			26			38			35			10			14			69			235			2
Commercial construction		192			43			25			44			18			26			23			371			4
Residential construction		32			44			35			21			29			—			6			167			1
Residential condo		21			73			11			1			30			22			25			183			2
Undeveloped land		55			63			60			72			65			25			74			414			4
Total CRE Loans	$	974		$	670		$	729		$	420		$	584		$	251		$	415		$	4,043			40	%
% of Total Loans HFI		10	%		7	%		7	%		4	%		6	%		2	%		4	%		40	%
	3/31/09 CRE Nonaccrual Loans HFI (“NAL”) by Geography
	SC, Excl Coastal			Coastal SC			Western NC			Central FL			North FL			South FL			Tampa Bay			Total CRE NAL			% of NAL (1)
CRE Nonaccrual Loans by Product Type:
Completed income property		2.7			12.2			13.9			8.8			4.3			10.9			18.7		$	71.5			17	%
Residential A&D		11.2			0.7			14.2			2.2			7.1			3.9			12.9			52.2			12
Commercial A&D		0.1			3.1			1.0			0.1			0.1			—			30.3			34.7			8
Commercial construction		0.8			0.4			0.6			—			—			1.6			11.3			14.7			3
Residential construction		1.8			2.3			6.8			17.8			2.6			—			1.2			32.5			8
Residential condo		8.0			1.9			0.3			—			—			8.2			5.1			23.5			6
Undeveloped land		1.6			0.3			0.3			18.7			4.7			16.4			30.8			72.8			17
Total CRE Nonaccrual Loans	$	26.2		$	20.9		$	37.1		$	47.6		$	18.8		$	41.0		$	110.3		$	301.9			71	%
CRE Nonaccrual Loans as % of Total Nonaccrual Loans (1)		6	%		5	%		9	%		11	%		4	%		10	%		26	%		71	%
	Three Months Ended 3/31/09 CRE Net Charge-offs (“NCO”) by Geography
	SC, Excl Coastal			Coastal SC			Western NC			Central FL			North FL			South FL			Tampa Bay			Total CRE NCO			% of NCO
CRE Net Charge-offs by Product Type:
Completed income property	$	0.8		$	2.4		$	2.7		$	1.7		$	0.4		$	1.1		$	4.3		$	13.4			12	%
Residential A&D		0.8			0.9			4.0			2.5			1.8			—			3.7			13.7			13
Commercial A&D		0.2			0.7			0.2			—			—			0.1			0.6			1.8			2
Commercial construction		—			—			—			—			—			0.1			—			0.1			—
Residential construction		—			0.2			2.6			1.4			1.1			—			0.7			6.0			6
Residential condo		0.5			1.0			—			—			—			—			—			1.5			1
Undeveloped land		—			—			0.1			1.8			0.8			1.4			7.3			11.4			10
Total CRE Net Charge-offs	$	2.3		$	5.2		$	9.6		$	7.4		$	4.1		$	2.7		$	16.6		$	47.9			44	%
CRE Net Charge-offs as % of Total Net Charge-offs		2	%		5	%		9	%		7	%		4	%		2	%		15	%		44	%

⁽¹⁾ Calculated as a percent of nonaccrual loans held for investment, which totaled $422.9 million at March 31, 2009. Excludes nonaccrual loans held for sale, which totaled $12.8 million at March 31, 2009.

9

THE SOUTH FINANCIAL GROUP, INC. AND SUBSIDIARIES
TYPES OF CUSTOMER FUNDING AND CUSTOMER FUNDING GROWTH
(dollars in thousands) (unaudited)

	3/31/09			12/31/08			9/30/08			6/30/08			3/31/08
Noninterest-bearing	$	1,067,953		$	1,041,140		$	1,022,632		$	1,107,115		$	1,108,623
Interest-bearing checking		1,098,585			1,078,921			1,090,874			1,127,497			1,162,374
Money market accounts		1,889,041			1,834,115			1,806,143			2,162,599			2,182,709
Savings accounts		203,106			190,519			150,150			150,696			155,337
Time deposits under $100,000		1,742,177			1,863,520			1,840,363			1,468,372			1,408,593
Time deposits of $100,000 or more		1,383,639			1,488,735			1,524,813			1,479,740			1,557,927
Customer deposits (1)		7,384,501			7,496,950			7,434,975			7,496,019			7,575,563
Brokered deposits		1,842,577			1,908,767			2,573,833			2,390,350			1,875,969
Total deposits		9,227,078			9,405,717			10,008,808			9,886,369			9,451,532
Less: Brokered deposits		(1,842,577	)		(1,908,767	)		(2,573,833	)		(2,390,350	)		(1,875,969	)
Add: Customer sweep accounts		387,106			493,012			551,559			536,642			631,214
Customer funding (2)	$	7,771,607		$	7,989,962		$	7,986,534		$	8,032,661		$	8,206,777
Percentage of Deposits
Noninterest-bearing		11.6	%		11.1	%		10.2	%		11.2	%		11.7	%
Interest-bearing checking		11.9			11.5			10.9			11.4			12.3
Money market accounts		20.4			19.5			18.1			21.9			23.1
Savings accounts		2.2			2.0			1.5			1.5			1.6
Time deposits under $100,000		18.9			19.8			18.4			14.8			14.9
Time deposits of $100,000 or more		15.0			15.8			15.2			15.0			16.5
Customer deposits (1)		80.0			79.7			74.3			75.8			80.1
Brokered deposits		20.0			20.3			25.7			24.2			19.9
Total deposits		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
	For The Period Ended
	3/31/09			12/31/08			9/30/08			6/30/08			3/31/08
Growth vs. Prior Quarter, Annualized (3)
Noninterest-bearing		10.4	%		7.2	%		(30.4	)%		(0.5	)%		(6.8	)%
Total deposits		(7.7	)		(24.0	)		4.9			18.5			(13.8	)
Customer funding (2)		(11.1	)		0.2			(2.3	)		(8.5	)		1.4
Growth Year-To-Date, Annualized (3)
Noninterest-bearing		10.4	%		(7.7	)%		(12.4	)%		(3.7	)%		(6.8	)%
Total deposits		(7.7	)		(3.9	)		3.0			2.0			(13.8	)
Customer funding (2)		(11.1	)		(2.3	)		(3.1	)		(3.6	)		1.4

(1)	Total deposits less brokered deposits.
(2)	Total deposits less brokered deposits plus customer sweep accounts.
(3)	At December 31, 2007, noninterest-bearing totaled $1,127,657, total deposits totaled $9,788,568, and customer funding totaled $8,178,471.

10

THE SOUTH FINANCIAL GROUP, INC. AND SUBSIDIARIES
WHOLESALE BORROWINGS
(dollars in thousands) (unaudited)

	3/31/09			12/31/08			9/30/08			6/30/08			3/31/08
Types of wholesale borrowings
Short-term borrowings
Federal funds purchased and repurchase agreements	$	197,309		$	67,309		$	137,927		$	169,074		$	541,022
Customer sweep accounts		387,106			493,012			551,559			536,642			631,214
Federal Reserve borrowings		750,000			1,050,000			30,000			500,000			200,000
Commercial paper		—			12,537			19,068			25,155			29,582
Treasury, tax and loan note		7,673			3,516			450,375			350,730			515,632
Total short-term borrowings		1,342,088			1,626,374			1,188,929			1,581,601			1,917,450
Long-term borrowings
Repurchase agreements		200,000			200,000			200,000			200,000			200,000
FHLB advances		467,717			233,497			298,119			297,873			324,080
Subordinated notes		206,704			216,704			216,704			216,704			216,704
Mandatorily redeemable preferred stock of subsidiary		56,800			56,800			56,800			56,800			56,800
Note payable		756			768			779			791			775
Purchase accounting premiums, net of amortization		—			—			707			789			858
Total long-term borrowings		931,977			707,769			773,109			772,957			799,217
Total borrowings		2,274,065			2,334,143			1,962,038			2,354,558			2,716,667
Less: Customer sweep accounts		(387,106	)		(493,012	)		(551,559	)		(536,642	)		(631,214	)
Add: Brokered deposits		1,842,577			1,908,767			2,573,833			2,390,350			1,875,969
Total wholesale borrowings	$	3,729,536		$	3,749,898		$	3,984,312		$	4,208,266		$	3,961,422
Wholesale borrowings as a percentage of total assets		28.1	%		27.6	%		29.1	%		30.1	%		28.8	%

11

THE SOUTH FINANCIAL GROUP, INC. AND SUBSIDIARIES
SUMMARY OF CAPITAL, CAPITAL RATIOS, UNREALIZED GAINS (LOSSES) ON
AVAILABLE FOR SALE SECURITIES, AND MARKET RATES FOR U.S. TREASURY NOTES
(dollars in thousands, except per share data) (unaudited)

	3/31/09			12/31/08			9/30/08			6/30/08			3/31/08
Regulatory Capital
Tier 1 capital	$	1,395,469		$	1,513,452		$	1,295,008		$	1,311,908		$	1,089,115
Tier 2 capital		164,973			174,625			173,820			177,271			180,711
Total risk-based capital		1,560,442			1,688,077			1,468,828			1,489,179			1,269,826
Total risk-weighted assets		11,532,895			11,764,518			11,584,136			11,872,790			11,674,210
Tangible Equity
Mandatorily convertible preferred stock	$	190,026		$	238,700		$	249,000		$	250,000		$	—
Perpetual preferred stock		328,523			327,679			—			—			—
Common equity		1,033,634			1,054,152			1,284,614			1,309,202			1,378,321
Shareholders’ equity		1,552,183			1,620,531			1,533,614			1,559,202			1,378,321
Intangible assets		(244,729	)		(246,020	)		(484,570	)		(487,886	)		(488,093	)
Tangible equity		1,307,454			1,374,511			1,049,044			1,071,316			890,228
Capital Ratios
Tier 1 risk-based capital		12.10	%		12.86	%		11.18	%		11.05	%		9.33	%
Total risk-based capital		13.53			14.35			12.68			12.54			10.88
Leverage ratio		10.55			11.22			9.70			9.81			8.16
Tangible equity to tangible assets ratio		10.03			10.29			7.94			7.94			6.72
Impact of unrealized (gain) loss on securities		(0.19	)		(0.05	)		0.21			0.24			0.02
Tangible equity to tangible assets ratio, excluding unrealized gain or loss		9.84			10.24			8.15			8.18			6.74
Tangible common equity to tangible assets ratio		6.05			6.05			6.06			6.09			6.72
-Assuming conversion of mandatorily convertible preferred (1)		7.51			7.84			7.94			7.94			6.72
Unrealized Gains (Losses) on AFS Securities
Gross (included in AFS securities)	$	43,255		$	10,949		$	(48,147	)	$	(54,391	)	$	(3,042	)
Net of income tax (included in equity)		27,233			6,890			(30,334	)		(34,287	)		(1,912	)
Per Share Data
Mandatorily convertible preferred shares outstanding		190,026			238,700			249,000			250,000			—
Common shares outstanding		84,781,160			74,643,649			73,005,766			72,795,797			72,629,724
Conversion of preferred stock into common (1)		29,234,769			36,723,077			38,307,692			38,461,538			—
Common shares outstanding, assuming conversion		114,015,929			111,366,726			111,313,458			111,257,335			72,629,724
Common book value per common share	$	12.19		$	14.12		$	17.60		$	17.98		$	18.98
Common tangible book value per common share		9.31			10.83			10.96			11.28			12.26
Book value per common share, assuming conversion (1)		13.61			14.55			13.78			14.01			18.98
Common tangible book value per common share, assuming conversion (1)		8.59			9.40			9.42			9.63			12.26
Market Rates for U.S. Treasury Notes
Three year		1.15	%		1.00	%		2.28	%		2.91	%		1.79	%
Five year		1.67			1.55			2.98			3.34			2.46

⁽¹⁾ Using a $6.50 conversion price.

12

THE SOUTH FINANCIAL GROUP, INC. AND SUBSIDIARIES
COMPARATIVE AVERAGE BALANCES - YIELDS AND COSTS
(dollars in thousands) (unaudited)

	Three Months Ended
	3/31/09							12/31/08							9/30/08
	Average Balance		Income/ Expense		Yield/ Rate			Average Balance		Income/ Expense		Yield/ Rate			Average Balance		Income/ Expense		Yield/ Rate
Assets
Earning assets
Commercial loans	$	8,086,559	$	83,794		4.20	%	$	8,172,311	$	106,243		5.17	%	$	8,233,343	$	113,281		5.47	%
Consumer loans		1,494,261		17,566		4.77			1,514,602		19,941		5.24			1,518,642		22,577		5.91
Indirect loans		607,548		10,845		7.24			657,329		11,862		7.18			706,780		12,621		7.10
Risk management derivatives tied to loans		—		11,914					—		7,243					—		6,954
Total loans (1)		10,188,368		124,119		4.94			10,344,242		145,289		5.59			10,458,765		155,433		5.91
Investment securities (taxable) (2)		1,854,149		20,548		4.43			1,835,248		20,575		4.48			1,768,461		20,186		4.57
Investment securities (nontaxable) (3)		266,600		3,437		5.16			281,839		3,616		5.13			290,431		3,726		5.13
Total investment securities		2,120,749		23,985		4.52			2,117,087		24,191		4.57			2,058,892		23,912		4.65
Federal funds sold, interest-bearing bank balances, and other temp investments		198		1		2.05			1,128		10		3.53			37,149		197		2.11
Total earning assets		12,309,315		148,105		4.87			12,462,457		169,490		5.41			12,554,806		179,542		5.69
Non-earning assets		1,246,813							1,322,477							1,281,130
Total assets	$	13,556,128						$	13,784,934						$	13,835,936
Liabilities and Shareholders’ Equity
Liabilities
Interest-bearing liabilities
Interest-bearing deposits
Interest checking	$	1,131,456	$	865		0.31		$	1,010,878	$	1,310		0.52		$	1,130,079	$	2,481		0.87
Savings		196,974		529		1.09			173,927		518		1.18			143,014		255		0.71
Money market		1,913,927		7,779		1.65			1,814,901		9,808		2.15			1,949,001		11,293		2.31
Time deposits, excluding brokered deposits		3,199,427		28,867		3.66			3,401,800		32,130		3.76			3,259,783		30,522		3.72
Brokered deposits		1,905,805		16,803		3.58			2,227,055		21,880		3.91			2,574,430		24,520		3.79
Total interest-bearing deposits		8,347,589		54,843		2.66			8,628,561		65,646		3.03			9,056,307		69,071		3.03
Customer sweep accounts		455,781		298		0.27			529,344		1,174		0.88			536,526		2,251		1.67
Other borrowings (4)		1,899,771		6,743		1.44			1,805,655		9,772		2.15			1,453,196		11,297		3.09
Total interest-bearing liabilities		10,703,141		61,884		2.34			10,963,560		76,592		2.78			11,046,029		82,619		2.98
Noninterest-bearing liabilities
Noninterest-bearing deposits		1,021,400							1,001,516							1,059,565
Other noninterest liabilities		230,741							201,107							177,735
Total liabilities		11,955,282							12,166,183							12,283,329
Shareholders’ equity		1,600,846							1,618,751							1,552,607
Total liabilities and shareholders’ equity	$	13,556,128						$	13,784,934						$	13,835,936
Net interest margin (tax-equivalent)			$	86,221		2.83	%			$	92,898		2.97	%			$	96,923		3.08	%
Less: tax-equivalent adjustment (3)				1,203							1,265							1,304
Net interest income			$	85,018						$	91,633						$	95,619
Supplemental data:
Customer funding (5)	$	7,918,965	$	38,338		1.96	%	$	7,932,366	$	44,940		2.25	%	$	8,077,968	$	46,802		2.30	%
Wholesale borrowings (6)		3,805,576		23,546		2.51			4,032,710		31,652		3.12			4,027,626		35,817		3.54
Total funding (7)	$	11,724,541	$	61,884		2.14	%	$	11,965,076	$	76,592		2.55	%	$	12,105,594	$	82,619		2.72	%

(1)	Nonaccrual loans are included in average balances for yield computations.
(2)	The average balances for investment securities exclude the unrealized gain or loss recorded for available for sale securities.
(3)	The tax-equivalent adjustment to net interest income adjusts the yield for assets earning tax-exempt income to a comparable yield on a taxable basis.
(4)	During the three months ended March 31, 2009, December 31, 2008, and September 30, 2008, TSFG capitalized $450,000, $478,000, and $424,000, respectively, of interest in conjunction with the construction of its expanded corporate facilities
(5)	Customer funding includes total deposits less brokered deposits plus customer sweep accounts.
(6)	TSFG defines wholesale borrowings as borrowings less customer sweep accounts plus brokered deposits. For purposes of this table, wholesale borrowings equal the sum of other borrowings and brokered deposits, as customer sweep accounts are presented separately.
(7)	Total funding includes customer funding and wholesale borrowings.
Note: Average balances are derived from daily balances.

13

THE SOUTH FINANCIAL GROUP, INC. AND SUBSIDIARIES
COMPARATIVE AVERAGE BALANCES - YIELDS AND COSTS - CONTINUED
(dollars in thousands) (unaudited)

	Three Months Ended
	6/30/08							3/31/08
	Average Balance		Income/ Expense		Yield/ Rate			Average Balance		Income/ Expense		Yield/ Rate
Assets
Earning assets
Commercial loans	$	8,193,599	$	114,935		5.64	%	$	7,983,464	$	128,741		6.49	%
Consumer loans		1,530,817		23,272		6.11			1,548,384		25,985		6.75
Indirect loans		734,155		13,152		7.21			703,670		12,680		7.25
Risk management derivatives tied to loans		—		6,657					—		3,822
Total loans (1)		10,458,571		158,016		6.08			10,235,518		171,228		6.73
Investment securities (taxable) (2)		1,799,907		20,591		4.58			1,749,423		20,392		4.66
Investment securities (nontaxable) (3)		299,350		3,814		5.10			326,318		4,143		5.08
Total investment securities		2,099,257		24,405		4.65			2,075,741		24,535		4.73
Federal funds sold, interest-bearing bank balances, and other temp investments		20,256		106		2.10			8,716		72		3.32
Total earning assets		12,578,084		182,527		5.83			12,319,975		195,835		6.39
Non-earning assets		1,290,065							1,524,930
Total assets	$	13,868,149						$	13,844,905
Liabilities and Shareholders’ Equity
Liabilities
Interest-bearing liabilities
Interest-bearing deposits
Interest checking	$	1,120,716	$	2,683		0.96		$	1,155,418	$	4,653		1.62
Savings		152,023		304		0.80			156,848		427		1.09
Money market		2,104,322		11,822		2.26			2,193,504		16,633		3.05
Time deposits, excluding brokered deposits		2,997,131		29,172		3.91			2,953,364		33,651		4.58
Brokered deposits		2,081,224		19,199		3.71			1,934,922		21,742		4.52
Total interest-bearing deposits		8,455,416		63,180		3.01			8,394,056		77,106		3.69
Customer sweep accounts		573,957		2,621		1.84			684,752		5,472		3.21
Other borrowings (4)		2,078,730		15,186		2.94			1,922,959		19,101		4.00
Total interest-bearing liabilities		11,108,103		80,987		2.93			11,001,767		101,679		3.72
Noninterest-bearing liabilities
Noninterest-bearing deposits		1,079,390							1,083,505
Other noninterest liabilities		185,275							194,655
Total liabilities		12,372,768							12,279,927
Shareholders’ equity		1,495,381							1,564,978
Total liabilities and shareholders’ equity	$	13,868,149						$	13,844,905
Net interest margin (tax-equivalent)			$	101,540		3.24	%			$	94,156		3.07	%
Less: tax-equivalent adjustment (3)				1,335							1,450
Net interest income			$	100,205						$	92,706
Supplemental data:
Customer funding (5)	$	8,027,539	$	46,602		2.33	%	$	8,227,391	$	60,836		2.97	%
Wholesale borrowings (6)		4,159,954		34,385		3.32			3,857,881		40,843		4.26
Total funding (7)	$	12,187,493	$	80,987		2.67	%	$	12,085,272	$	101,679		3.38	%

(1)	Nonaccrual loans are included in average balances for yield computations.
(2)	The average balances for investment securities exclude the unrealized gain or loss recorded for available for sale securities.
(3)	The tax-equivalent adjustment to net interest income adjusts the yield for assets earning tax-exempt income to a comparable yield on a taxable basis.
(4)	During the three months ended June 30, 2008 and March 31, 2008, TSFG capitalized $332,000 and $329,000, respectively, of interest in conjunction with the construction of its expanded corporate facilities.
(5)	Customer funding includes total deposits less brokered deposits plus customer sweep accounts.
(6)	TSFG defines wholesale borrowings as borrowings less customer sweep accounts plus brokered deposits. For purposes of this table, wholesale borrowings equal the sum of other borrowings and brokered deposits, as customer sweep accounts are presented separately.
(7)	Total funding includes customer funding and wholesale borrowings
Note: Average balances are derived from daily balances.

14

THE SOUTH FINANCIAL GROUP, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(dollars in thousands, except share data) (unaudited)

	Three Months Ended
	3/31/09
				Diluted EPS
Net Loss, as Reported (GAAP)	$	(74,403	)
Preferred stock dividends and other (1)		(16,408	)
Net Loss Available to Common Shareholders	$	(90,811	)	$	(1.10	)
Net Loss, as Reported (GAAP)		(74,403	)
Add: Income tax expense (benefit)		(49,706	)
Loss Before Income Taxes		(124,109	)
Non-Operating Items
(Gain) loss on securities		2,954
(Gain) loss on early extinguishment of debt		(52	)
Loss on repurchase of auction rate securities		676
Pre-tax Operating Loss (loss before taxes, excluding non-operating items)		(120,531	)
Add: Provision for credit losses		142,627
Pre-Tax, Pre-Provision Operating Earnings (income before taxes and provision, excluding non-operating items)		22,096
Less: Provision for credit losses		(142,627	)
Related income taxes		(48,364	)
Operating Loss (net loss, excluding non-operating items)		(72,167	)
Preferred stock dividends and other (1)		(16,408	)
Operating Loss Available to Common Shareholders (net loss available to common shareholders, excluding non-operating items)		(88,575	)		(1.08	)
Amortization of intangibles		1,291
Related income taxes		(484	)
Cash Operating Loss Available to Common Shareholders (net loss available to common shareholders, excluding non-operating items and amortization of intangibles)	$	(87,768	)		(1.07	)
Average Common Shares Outstanding, Diluted		82,223,190
Select Balance Sheet (Averages)
Total assets	$	13,556,128
Intangible assets		(245,341	)
Tangible assets		13,310,787
Preferred stock		532,430
Common equity		1,068,416
Shareholders’ equity		1,600,846
Intangible assets		(245,341	)
Tangible equity		1,355,505
Return on Average Assets (2)
GAAP loss		(2.23	)%
Return on Average Equity (2)
GAAP loss		(18.85	)
Return on Average Common Equity (3)
GAAP loss available to common shareholders		(34.47	)

(1)	Includes $6.5 million for the value of common shares issued as an inducement for early conversion of 45,474 shares of preferred stock.
(2)	Return on average assets and return on average equity are calculated as net income divided by average assets
(3)	Return on average common equity is calculated as net income available to common shareholders divided by average common equity.

15

THE SOUTH FINANCIAL GROUP, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(dollars in thousands, except share data) (unaudited)

	Three Months Ended
	12/31/08						9/30/08						6/30/08						3/31/08
				Diluted EPS						Diluted EPS						Diluted EPS						Diluted EPS
Net Loss, as Reported (GAAP)	$	(309,939	)				$	(24,955	)				$	(10,932	)				$	(201,292	)
Preferred stock dividends and other		(9,424	)					(6,257	)					(5,840	)					(137	)
Net Loss Available to Common Shareholders	$	(319,363	)	$	(4.29	)	$	(31,212	)	$	(0.43	)	$	(16,772	)	$	(0.23	)	$	(201,429	)	$	(2.78	)
Net Loss, as Reported (GAAP)	$	(309,939	)				$	(24,955	)				$	(10,932	)				$	(201,292	)
Add: Income tax expense (benefit)		(33,435	)					(29,526	)					(8,056	)					(16,557	)
Loss Before Income Taxes		(343,374	)					(54,481	)					(18,988	)					(217,849	)
Non-Operating Items
(Gain) loss on securities		(1,561	)					725						(1,876	)					(396	)
Gain on Visa IPO share redemption		—						—						—						(1,904	)
Goodwill impairment		237,618						—						—						188,431
Employment contracts and severance		9,599						4,621						2,299						—
Branch acquisition and conversion costs		—						—						731						—
(Gain) loss on early extinguishment of debt		1,747						(125	)					(83	)					547
Visa-related litigation		—						—						—						(863	)
Loss on derivative collateral		1,061						—						—						—
Pre-tax Operating Loss (loss before taxes, excluding non-operating items)		(94,910	)					(49,260	)					(17,917	)					(32,034	)
Add: Provision for credit losses		122,926						84,608						63,763						73,292
Pre-Tax, Pre-Provision Operating Earnings (income before taxes and provision, excluding non-operating items)		28,016						35,348						45,846						41,258
Less: Provision for credit losses		(122,926	)					(84,608	)					(63,763	)					(73,292	)
Related income taxes		(29,368	)					(26,696	)					(7,655	)					(17,538	)
Operating Loss (net loss, excluding non-operating items)		(65,542	)					(22,564	)					(10,262	)					(14,496	)
Preferred stock dividends and other		(9,424	)					(6,257	)					(5,840	)					(137	)
Operating Loss Available to Common Shareholders (net loss available to common shareholders, excluding non-operating items)		(74,966	)		(1.01	)		(28,821	)		(0.40	)		(16,102	)		(0.22	)		(14,633	)		(0.20	)
Amortization of intangibles		1,417						1,474						1,589						1,658
Related income taxes		(532	)					(552	)					(596	)					(622	)
Cash Operating Loss Available to Common Shareholders (net loss available to common shareholders, excluding non-operating items and amortization of intangibles)	$	(74,081	)	$	(0.99	)	$	(27,899	)	$	(0.38	)	$	(15,109	)	$	(0.21	)	$	(13,597	)	$	(0.19	)
Average Common Shares Outstanding, Diluted		74,505,656						72,755,480						72,611,024						72,449,437
Select Balance Sheet (Averages)
Total assets	$	13,784,934					$	13,835,936					$	13,868,149					$	13,844,905
Intangible assets		(481,380	)					(487,061	)					(487,440	)					(675,250	)
Tangible assets		13,303,554						13,348,875						13,380,709						13,169,655
Preferred stock		337,439						249,717						137,783						—
Common equity		1,281,312						1,302,890						1,357,598						1,564,978
Shareholders’ equity		1,618,751						1,552,607						1,495,381						1,564,978
Intangible assets		(481,380	)					(487,061	)					(487,440	)					(675,250	)
Tangible equity		1,137,371						1,065,546						1,007,941						889,728
Return on Average Assets (1)
GAAP loss		(8.94	)%					(0.72	)%					(0.32	)%					(5.85	)%
Return on Average Equity (1)
GAAP loss		(76.17	)					(6.39	)					(2.94	)					(51.73	)
Return on Average Common Equity (2)
GAAP loss available to common shareholders		(99.16	)					(9.53	)					(4.97	)					(51.73	)

(1)	Return on average assets and return on average equity are calculated as net income divided by average assets or average total equity.
(2)	Return on average common equity is calculated as net income available to common shareholders divided by average common equity.

16

THE SOUTH FINANCIAL GROUP, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(dollars in thousands, except share data) (unaudited)

	Years Ended December 31,
	2008						2007
				Diluted EPS						Diluted EPS
Net Income (Loss), as Reported (GAAP)	$	(547,118	)				$	73,276
Preferred stock dividends and other		(21,658	)					(665	)
Net Income (Loss) Available to Common Shareholders	$	(568,776	)	$	(7.78	)	$	72,611		$	0.98
Net Income (Loss), as Reported (GAAP)	$	(547,118	)				$	73,276
Add: Income tax expense (benefit)		(87,574	)					33,400
Income (Loss) Before Income Taxes		(634,692	)					106,676
Non-Operating Items
(Gain) loss on securities		(3,108	)					4,623
Gain on Visa IPO share redemption		(1,904	)					—
Goodwill impairment		426,049						—
Employment contract buyouts and severance		16,519						2,306
Branch acquisition and conversion costs		731						—
Loss on early extinguishment of debt		2,086						2,029
Visa-related litigation		(863	)					881
Loss on derivative collateral		1,061						—
Pre-tax Operating Income (Loss) (income (loss) before taxes, excluding non-operating items)		(194,121	)					116,515
Add: Provision for credit losses		344,589						68,568
Pre-Tax, Pre-Provision Operating Earnings (income before taxes and provision, excluding non-operating items)		150,468						185,083
Less: Provision for credit losses		(344,589	)					(68,568	)
Related income taxes		(81,257	)					36,587
Operating Income (Loss) (net income (loss), excluding non-operating items)		(112,864	)					79,928
Preferred stock dividends and other		(21,658	)					(665	)
Operating Income (Loss) Available to Common Shareholders (net income (loss) available to common shareholders, excluding non-operating items)		(134,522	)		(1.84	)		79,263			1.07
Amortization of intangibles		6,138						7,897
Related income taxes		(2,302	)					(2,359	)
Cash Operating Income (Loss) Available to Common Shareholders (net income (loss) available to common shareholders, excluding non-operating items and amortization of intangibles)	$	(130,686	)	$	(1.79	)	$	84,801		$	1.15
Average Common Shares Outstanding, Diluted		73,136,936						74,006,978
Select Balance Sheet (Averages)
Total assets	$	13,833,355					$	14,044,565
Intangible assets		(532,517	)					(681,628	)
Tangible assets		13,300,838						13,362,937
Preferred stock		181,849						—
Common equity		1,376,232						1,543,552
Shareholders’ equity		1,558,081						1,543,552
Intangible assets		(532,517	)					(681,628	)
Tangible equity		1,025,564						861,924
Return on Average Assets (1)
GAAP earnings (loss)		(3.96	) %					0.52	%
Return on Average Equity (1)
GAAP earnings (loss)		(35.11	)					4.75
Return on Average Common Equity (2)
GAAP earnings (loss) available to common shareholders		(41.33	)					4.70

(1)	Return on average assets and return on average equity are calculated as net income divided by average assets or average total equity.
(2)	Return on average common equity is calculated as net income available to common shareholders divided by average common equity.

17

THE SOUTH FINANCIAL GROUP, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(dollars in thousands) (unaudited)

	Three Months Ended
	3/31/09
Select Financial Data Used in Ratios Calculated Below
Net interest income		$	85,018
Tax-equivalent adjustment			1,203
Net interest income (tax-equivalent)		$	86,221
Total noninterest income, as reported (GAAP)		$	23,741
Adjustments for non-operating items:
(Gain) loss on securities			2,954
Operating noninterest income (noninterest income, excluding non-operating items)		$	26,695
Total noninterest expenses, as reported (GAAP)		$	90,241
Adjustments for non-operating items:
Gain (loss) on early extinguishment of debt			52
Loss on repurchase of auction rate securities			(676	)
Operating noninterest expenses (noninterest expenses, excluding non-operating items)			89,617
Less: amortization of intangibles			(1,291	)
Cash operating noninterest expenses (noninterest expenses, excluding non-operating items and amortization of intangibles)		$	88,326
Total Revenue (1)
GAAP		$	108,759
Operating (2)			112,916
Noninterest Income as a % Total Revenue (3)
GAAP			21.83	%
Operating (2)			23.64
Efficiency Ratios (4)
GAAP			82.97
Operating (2)			79.37
Cash operating (2)			78.22
Noninterest Expense as a % of Average Assets (Annualized)
GAAP			2.70	%
Operating (2)			2.68
Cash operating (2)			2.64

(1)	The sum of net interest income and noninterest income.
(2)	Total revenue, noninterest income as a % of total revenue, the efficiency ratio, and noninterest expense as a % of average assets, on an operating basis, are calculated using tax-equivalent net interest income and exclude non-operating items. The cash operating ratios also exclude amortization of intangibles.
(3)	Calculated as noninterest income, divided by the sum of net interest income and noninterest income.
(4)	Calculated as noninterest expenses, divided by the sum of net interest income and noninterest income.

18

THE SOUTH FINANCIAL GROUP, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(dollars in thousands) (unaudited)

	Three Months Ended
	12/31/08			9/30/08			6/30/08			3/31/08
Select Financial Data Used in Ratios Calculated Below
Net interest income	$	91,633		$	95,619		$	100,205		$	92,706
Tax-equivalent adjustment		1,265			1,304			1,335			1,450
Net interest income (tax-equivalent)	$	92,898		$	96,923		$	101,540		$	94,156
Total noninterest income, as reported (GAAP)	$	30,012		$	28,665		$	32,187		$	31,103
Adjustments for non-operating items:
(Gain) loss on securities		(1,561	)		725			(1,876	)		(396	)
Gain on Visa IPO share redemption		—			—			—			(1,904	)
Operating noninterest income (noninterest income, excluding non-operating items)	$	28,451		$	29,390		$	30,311		$	28,803
Total noninterest expenses, as reported (GAAP)	$	342,093		$	94,157		$	87,617		$	268,366
Adjustments for non-operating items:
Goodwill impairment		(237,618	)		—			—			(188,431	)
Employment contracts and severance		(9,599	)		(4,621	)		(2,299	)		—
Branch acquisition and conversion costs		—			—			(731	)		—
Gain (loss) on early extinguishment of debt		(1,747	)		125			83			(547	)
Visa-related litigation		—			—			—			863
Loss on derivative collateral		(1,061	)		—			—			—
Operating noninterest expenses (noninterest expenses, excluding non-operating items)		92,068			89,661			84,670			80,251
Less: amortization of intangibles		(1,417	)		(1,474	)		(1,589	)		(1,658	)
Cash operating noninterest expenses (noninterest expenses, excluding non-operating items and amortization of intangibles)	$	90,651		$	88,187		$	83,081		$	78,593
Total Revenue (1)
GAAP	$	121,645		$	124,284		$	132,392		$	123,809
Operating (2)		121,349			126,313			131,851			122,959
Noninterest Income as a % Total Revenue (3)
GAAP		24.67	%		23.06	%		24.31	%		25.12	%
Operating (2)		23.45			23.27			22.99			23.42
Efficiency Ratios (4)
GAAP		281.22			75.76			66.18			216.76
Operating (2)		75.87			70.98			64.22			65.27
Cash operating (2)		74.70			69.82			63.01			63.92
Noninterest Expense as a % of Average Assets (Annualized)
GAAP		9.87			2.71			2.54			7.80
Operating (2)		2.66			2.58			2.46			2.33
Cash operating (2)		2.62			2.54			2.41			2.28

(1)	The sum of net interest income and noninterest income.
(2)	Total revenue, noninterest income as a % of total revenue, the efficiency ratio, and noninterest expense as a % of average assets, on an operating basis, are calculated using tax-equivalent net interest income and exclude non-operating items. The cash operating ratios also exclude amortization of intangibles.
(3)	Calculated as noninterest income, divided by the sum of net interest income and noninterest income.
(4)	Calculated as noninterest expenses, divided by the sum of net interest income and noninterest income.

19

THE SOUTH FINANCIAL GROUP, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(dollars in thousands) (unaudited)

	Years Ended December 31,
	2008			2007
Select Financial Data Used in Ratios Calculated Below
Net interest income	$	380,163		$	382,781
Tax-equivalent adjustment		5,354			6,246
Net interest income (tax-equivalent)	$	385,517		$	389,027
Net interest margin (tax-equivalent)		3.09	%		3.10	%
Total noninterest income, as reported (GAAP)	$	121,967		$	113,712
Adjustments for non-operating items:
(Gain) loss on securities		(3,108	)		4,623
Gain on Visa IPO share redemption		(1,904	)		—
Operating noninterest income (noninterest income, excluding non-operating items)	$	116,955		$	118,335
Total noninterest expenses, as reported (GAAP)	$	792,233		$	321,249
Adjustments for non-operating items:
Goodwill impairment		(426,049	)		—
Employment contract buyouts and severance		(16,519	)		(2,306	)
Branch acquisition and conversion costs		(731	)		—
Loss on early extinguishment of debt		(2,086	)		(2,029	)
Visa-related litigation		863			(881	)
Loss on derivative collateral		(1,061	)		—
Operating noninterest expenses (noninterest expenses, excluding non-operating items)		346,650			316,033
Less: amortization of intangibles		(6,138	)		(7,897	)
Cash operating noninterest expenses (noninterest expenses, excluding non-operating items and amortization of intangibles)	$	340,512		$	308,136
Total Revenue (1)
GAAP	$	502,130		$	496,493
Operating (2)		502,472			507,362
Noninterest Income as a % of Total Revenue (3)
GAAP		24.29	%		22.90	%
Operating (2)		23.28			23.32
Efficiency Ratios (4)
GAAP		157.77			64.70
Operating (2)		68.99			62.29
Cash operating (2)		67.77			60.73
Noninterest Expense as a % of Average Assets
GAAP		5.73			2.29
Operating (2)		2.51			2.25
Cash operating (2)		2.46			2.19

(1)	The sum of net interest income and noninterest income.
(2)	Total revenue, noninterest income as a % of total revenue, and the efficiency ratio, on an operating basis, are calculated using tax-equivalent net interest income and exclude non-operating items. The cash operating efficiency ratio also excludes amortization of intangibles.
(3)	Calculated as noninterest income, divided by the sum of net interest income and noninterest income.
(4)	Calculated as noninterest expenses, divided by the sum of net interest income and noninterest income.

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