South Financial (TSFG) 8-K Regulation FD Disclosure

Exhibit 99.1

Quarterly Financial Data Supplement 
(Unaudited)
Third Quarter 2009

	Page
Financial Summary	1
Consolidated Statements of Operations	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
THIRD QUARTER 2009 FINANCIAL SUMMARY

Changes vs. prior quarter, unless indicated otherwise:

Quarterly EPS

•	Net loss available to common shareholders of $340.8 million
•	Net loss per diluted share of $1.95
•	Recorded a deferred tax asset (DTA) valuation allowance totaling $200.1 million; leaving net DTA balance of $3.6 million at September 30, 2009
•	Preferred stock dividends totaled $17.3 million, down from $21.8 million for previous quarter
	— Includes $11.9 million for the value of common shares recorded as an inducement for conversion of preferred stock, compared to $14.0 million for previous quarter
•	Average diluted shares of 174.4 million, up 91.7% versus prior quarter; up 139.7% versus prior year
•	Period-end common shares outstanding increased to 215.4 million from 160.2 million at June 30, 2009

Revenue

•	Total revenue, defined as net interest income plus noninterest income, of $113.5 million
•	Operating revenues of $107.6 million, down $7.1 million
	— Non-operating items: $286,000 net loss on securities and $7.2 million gain on sale of ancillary businesses
	— Sale of ancillary businesses also reduced goodwill and intangibles by $9.1 million (total tangible capital impact of $16.3 million)
•	Tax-equivalent net interest income of $81.1 million, down $5.9 million
	— Net interest margin of 2.93%, down 3 basis points from 2.96%
	— Average earning assets of $11.0 billion, down from $11.8 billion
•	Operating noninterest income of $26.5 million, down $1.2 million from prior quarter

Balance Sheet

• Period-end loans held for investment decreased $431.8 million or 4.6% compared to prior quarter

• Period-end securities, up $267.7 million since prior quarter

• Period-end core deposits, defined as noninterest-bearing, interest checking, money market, and savings, up $178.9 million, or 4.1% linked quarter

• Period-end customer funding, defined as total deposits less brokered deposits plus customer sweep accounts, up $7.3 million or 0.1% linked-quarter

• Period-end wholesale borrowings, including brokered deposits and excluding customer sweep accounts, up $38.4 million or 1.2% linked-quarter

Noninterest Expenses and Operating Efficiency

•	Noninterest expenses of $89.5 million
	— Non-operating items: $746,000 impairment of long lived assets
•	Operating noninterest expenses of $88.8 million, down $24.0 million from prior quarter
	— Gain/loss on nonmortgage loans held for sale was a $9.5 million positive swing
	— Loss on other real estate owned down $8.5 million
•	Operating noninterest expenses, excluding credit-related expenses and FDIC insurance premiums, down $5.3 million from prior quarter and $12.7 million from fourth quarter 2008
	— Project NOW and other expense initiatives showing progress
	— Full-time equivalent employees totaled 2,196, down 6.4% from prior quarter; down 12.3% from year-end 2008

Credit Quality

• Nonperforming assets of $544.6 million or 6.05% of loans and foreclosed property

• Nonperforming loans held for investment decreased to $431.8 million from $464.6 million at June 30, 2009

• Net loan charge-offs of $168.6 million, or 7.31% annualized as a % of average loans held for investment

• Provision for credit losses exceeded net loan charge-offs by $55.6 million and increased allowance

• Allowance for credit losses of $345.3 million or 3.89% of loans held for investment, up from 3.11% prior quarter

• Allowance coverage of nonperforming loans held for investment of 0.79 times, an increase from 0.61 times at June 30, 2009

Capital

• Tangible common equity to tangible asset ratio of 5.25%

• Common tangible book value per share of $2.94, compared to $4.67 at June 30, 2009

• After-tax unrealized gain on available for sale securities increased $12.8 million from prior quarter

• Tier 1 capital ratio of 11.19%, down from 12.36% at June 30, 2009; capital ratios exceed all “well-capitalized” regulatory requirements

1

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

	Three Months Ended
	9/30/09			6/30/09			3/31/09			12/31/08			9/30/08
Interest Income
Interest and fees on loans	$	112,673		$	121,823		$	124,119		$	145,289		$	155,433
Interest and dividends on securities:
Taxable		16,742			18,140			20,548			20,575			20,186
Exempt from federal income taxes		2,006			2,072			2,234			2,351			2,422
Total interest and dividends on securities		18,748			20,212			22,782			22,926			22,608
Interest on short-term investments		—			—			1			10			197
Total interest income		131,421			142,035			146,902			168,225			178,238
Interest Expense
Interest on deposits		45,156			49,541			54,843			65,646			69,071
Interest on borrowed funds		6,227			6,564			7,041			10,946			13,548
Total interest expense		51,383			56,105			61,884			76,592			82,619
Net Interest Income		80,038			85,930			85,018			91,633			95,619
Provision for Credit Losses		224,179			131,337			142,627			122,926			84,608
Net interest income after provision for credit losses		(144,141	)		(45,407	)		(57,609	)		(31,293	)		11,011
Noninterest Income		33,470			32,272			23,741			30,012			28,665
Noninterest Expenses		89,529			136,188			90,241			342,093			94,157
Income (loss) before income taxes		(200,200	)		(149,323	)		(124,109	)		(343,374	)		(54,481	)
Income tax expense (benefit)		123,304			(59,647	)		(49,706	)		(33,435	)		(29,526	)
Net Income (Loss)		(323,504	)		(89,676	)		(74,403	)		(309,939	)		(24,955	)
Preferred stock dividends and other (1)		(17,251	)		(21,809	)		(16,408	)		(9,424	)		(6,257	)
Net Income (Loss) Available to Common Shareholders	$	(340,755	)	$	(111,485	)	$	(90,811	)	$	(319,363	)	$	(31,212	)
Average common shares outstanding, basic		174,426,381			90,986,862			82,223,190			74,505,656			72,755,480
Average common shares outstanding, diluted (2)		174,426,381			90,986,862			82,223,190			74,505,656			72,755,480
Earnings (loss) per common share, basic	$	(1.95	)	$	(1.23	)	$	(1.10	)	$	(4.29	)	$	(0.43	)
Earnings (loss) per common share, diluted		(1.95	)		(1.23	)		(1.10	)		(4.29	)		(0.43	)
Cash dividends declared per common share		—			0.01			0.01			0.01			0.01

(1)	For the quarters ended September 30, 2009, June 30, 2009 and March 31, 2009, includes $11.9 million, $14.0 million, and $6.5 million, respectively, for the value of common shares recorded as an inducement for early conversion of mandatorily convertible 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
	9/30/09			6/30/09			3/31/09			12/31/08			9/30/08
Noninterest Income
Service charges on deposit accounts	$	10,754		$	9,535		$	9,268		$	10,149		$	11,376
Debit card income, net		2,139			2,168			1,925			1,867			2,006
Customer service fee income		1,251			1,264			1,209			1,221			1,425
Total customer fee income		14,144			12,967			12,402			13,237			14,807
Retail investment services, net		2,157			1,646			2,010			1,751			2,294
Insurance income		1,911			1,765			2,457			2,266			2,368
Trust and investment management income		1,251			1,495			1,465			1,437			1,728
Benefits administration fees		—			571			642			833			813
Total wealth management income		5,319			5,477			6,574			6,287			7,203
Mortgage banking income		1,137			2,050			1,205			1,038			879
Bank-owned life insurance		2,797			2,560			2,502			3,939			2,881
Merchant processing income, net		591			817			610			697			916
Gain (loss) on certain derivative activities		1,597			1,085			1,135			(256	)		(199	)
Other		937			2,736			2,267			3,509			2,903
Operating noninterest income (noninterest income, excluding non-operating items)		26,522			27,692			26,695			28,451			29,390
Gain on sale of ancillary businesses		7,234			—			—			—			—
Gain (loss) on securities		(286	)		4,580			(2,954	)		1,561			(725	)
Non-operating noninterest income (loss)		6,948			4,580			(2,954	)		1,561			(725	)
Total noninterest income	$	33,470		$	32,272		$	23,741		$	30,012		$	28,665
Noninterest Expenses
Salaries and wages	$	32,559		$	34,739		$	35,191		$	35,348		$	37,700
Employee benefits		7,724			8,925			8,923			10,537			9,252
Occupancy		9,658			9,506			9,436			9,946			9,770
Furniture and equipment		6,950			6,801			6,945			7,454			6,991
Professional services		4,034			4,351			4,507			4,533			4,573
Project NOW expense		114			281			1,298			271			—
Advertising and business development		1,264			2,109			1,281			2,611			2,114
Telecommunications		1,572			1,551			1,526			1,613			1,628
Amortization of intangibles		1,238			1,286			1,291			1,417			1,474
Regulatory assessments		6,181			6,479			4,655			3,452			3,020
Loan collection and foreclosed asset expense		6,835			7,247			4,891			4,558			4,491
(Gain) loss on nonmortgage loans held for sale		(41	)		9,461			1,838			283			—
(Gain) loss on OREO		4,406			12,873			124			(316	)		765
Other		6,289			7,154			7,711			10,361			7,883
Operating noninterest expenses (noninterest expenses, excluding non-operating items)		88,783			112,763			89,617			92,068			89,661
Goodwill impairment		—			2,511			—			237,618			—
Employment contracts and severance		—			829			—			9,599			4,621
Impairment of long lived assets		746			17,376			—			—			—
FDIC special assessment		—			5,700			—			—			—
(Gain) loss on early extinguishment of debt		—			(2,991	)		(52	)		1,747			(125	)
Loss on derivative collateral		—			—			—			1,061			—
Loss on repurchase of auction rate securities		—			—			676			—			—
Non-operating noninterest expenses		746			23,425			624			250,025			4,496
Total noninterest expenses	$	89,529		$	136,188		$	90,241		$	342,093		$	94,157

3

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

	9/30/09			6/30/09			3/31/09			12/31/08			9/30/08
Assets
Cash and due from banks	$	418,585		$	303,456		$	152,725		$	292,219		$	176,293
Interest-bearing bank balances		124			3			1			166			35
Securities
Available for sale		2,079,394			1,803,458			2,106,281			2,107,194			1,995,681
Held to maturity		138,277			146,469			18,039			22,709			24,518
Total securities		2,217,671			1,949,927			2,124,320			2,129,903			2,020,199
Loans held for sale		8,071			40,290			29,726			30,963			37,575
Loans held for investment		8,874,234			9,306,009			9,986,681			10,192,072			10,299,640
Less: Allowance for loan losses		(339,536	)		(285,290	)		(280,156	)		(247,086	)		(200,748	)
Net loans held for investment		8,534,698			9,020,719			9,706,525			9,944,986			10,098,892
Premises and equipment, net		272,732			273,365			285,580			282,472			274,258
Accrued interest receivable		37,549			40,517			42,927			50,388			51,207
Goodwill		213,797			221,650			224,161			224,161			461,458
Other intangible assets, net		16,809			19,282			20,568			21,859			23,112
Deferred tax asset, net		3,568			131,670			65,314			51,093			71,131
Other assets		577,188			587,352			633,400			574,116			481,018
	$	12,300,792		$	12,588,231		$	13,285,247		$	13,602,326		$	13,695,178
Liabilities and Shareholders’ Equity
Liabilities
Deposits
Noninterest-bearing	$	1,091,439		$	1,099,743		$	1,067,953		$	1,041,140		$	1,022,632
Interest-bearing customer deposits		6,298,309			6,233,137			6,316,548			6,455,810			6,412,343
Interest-bearing brokered deposits		2,099,040			2,055,772			1,842,577			1,908,767			2,573,833
Total deposits		9,488,788			9,388,652			9,227,078			9,405,717			10,008,808
Short-term borrowings		288,751			343,154			1,342,088			1,626,374			1,188,929
Long-term debt		1,126,393			1,126,435			931,977			707,769			773,109
Accrued interest payable		45,803			72,699			74,032			71,465			61,463
Other liabilities		152,356			148,038			157,889			170,470			129,255
Total liabilities		11,102,091			11,078,978			11,733,064			11,981,795			12,161,564
Shareholders’ equity
Mandatorily convertible preferred stock		4,650			190,026			190,026			238,700			249,000
Perpetual preferred stock		330,250			329,380			328,523			327,679			—
Common stock		215,372			160,248			84,781			74,644			73,006
Surplus		1,343,987			1,191,170			1,182,423			1,135,920			1,104,697
Retained earnings (deficit)		(745,043	)		(403,296	)		(291,199	)		(199,540	)		120,578
Accumulated other comprehensive income (loss), net of income tax		48,875			41,115			57,018			42,558			(13,667	)
Other, net		610			610			611			570			—
Total shareholders’ equity		1,198,701			1,509,253			1,552,183			1,620,531			1,533,614
	$	12,300,792		$	12,588,231		$	13,285,247		$	13,602,326		$	13,695,178

4

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

	9/30/09			6/30/09			3/31/09			12/31/08			9/30/08
Investment Securities Portfolio
Available for sale (at fair value):
U.S. Treasury	$	2,058		$	4,051		$	2,042		$	2,069		$	28,084
U.S. Government agencies		95,224			44,220			313,159			313,729			327,933
Agency mortgage-backed securities		1,688,201			1,449,961			1,489,583			1,468,639			1,312,116
Private label mortgage-backed securities		9,112			11,600			12,462			12,771			15,152
State and municipal		223,948			232,916			241,478			262,248			260,532
Other investments (1)		60,851			60,710			47,557			47,738			51,864
Total available for sale securities		2,079,394			1,803,458			2,106,281			2,107,194			1,995,681
Held to maturity (at amortized cost)		138,277			146,469			18,039			22,709			24,518
Total securities	$	2,217,671		$	1,949,927		$	2,124,320		$	2,129,903		$	2,020,199
Total securities as a percentage of total assets		18.0	%		15.5	%		16.0	%		15.7	%		14.8	%
				September 30, 2009
				Amortized Cost			Percentage of Total			Duration			Book Yield
Debt Securities
U.S. Treasury				$	2,075			0.1	%		3.4			1.40	%
U.S. Government agencies					93,750			4.8			2.6			2.22
Mortgage-backed securities:
Collateralized mortgage obligations					956,021			48.6			1.7			3.87
Agency mortgage-backed securities					691,982			35.1			3.1			4.51
Private label mortgage-backed securities					9,287			0.5			1.9			5.30
State and municipal					214,756			10.9			2.4			3.38
Total available for sale debt securities				$	1,967,871			100.0	%		2.3	(2)		3.97	%
Fixed interest rate:
Mortgage-backed securities				$	1,460,272			74.2	%		2.3			4.13	%
Other					310,581			15.8			2.4			3.03
Variable interest rate:
Mortgage-backed securities					197,018			10.0			2.1			4.25
Total available for sale debt securities				$	1,967,871			100.0	%		2.3	(2)		3.97	%

(1)	Other investments in available for sale securities include FHLB stock, community bank stocks, and other equity securities. Also, excludes certain other investments recorded in other assets totaling $20.6 million.
(2)	Compared to 3.4 years duration at June 30, 2009 due to overall lower interest rates.

5

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

	September 30, 2009					December 31, 2008
	Balance		% of Total			Balance		% of Total
Government and agency
U.S. Treasury	$	2,058		0.1	%	$	2,069		0.1	%
U.S. Government agencies (1)		95,224		4.3			313,729		14.7
Agency mortgage-backed securities (MBS) (1)(2)		1,810,157		81.6			1,468,639		68.9
Federal Home Loan Bank Stock		58,825		2.7			35,536		1.7
Total government and agency		1,966,264		88.7			1,819,973		85.4
State and municipal (3)(4)(5)
Pre-funded with collateral or AAA-rated backed by Texas Permanent School Fund		162,936		7.3			188,598		8.9
Underlying issuer or collateral rated A or better (including South Carolina State Aid)		66,693		3.0			81,238		3.8
Underlying issuer or collateral rated BBB		3,883		0.2			7,344		0.3
Non-rated		6,657		0.3			7,677		0.4
Total state and municipal		240,169		10.8			284,857		13.4
Corporate bonds AA or A-rated		—		—			9,963		0.5
Private label mortgage-backed securities AAA-rated (2)		9,112		0.4			12,771		0.6
Community bank stocks and other		2,126		0.1			2,339		0.1
Total securities	$	2,217,671		100.0	%	$	2,129,903		100.0	%
Percent of total securities:
Rated A or higher				99.4	%				99.2	%
Investment grade				99.6	%				99.5	%

(1)	At September 30, 2009, these numbers include, in the aggregate, $29.7 million and $1.6 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 September 30, 2009, agency mortgage-backed securities include $122.0 million of securities held to maturity at amortized cost. At September 30, 2009 and December 31, 2008, state and municipal securities include $16.2 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 September 30, 2009, $31.6 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 September 30, 2009, the breakdown by current bond rating is as follows: $162.9 million pre-funded with collateral or AAA-rated backed Texas Permanent School Fund, $4.6 million AAA-rated, $67.3 million AA or A-rated, $2.5 million BBB-rated, and $2.9 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)

	9/30/09			6/30/09			3/31/09			12/31/08			9/30/08
Commercial Loans
Commercial and industrial	$	2,249,929		$	2,428,511		$	2,645,871		$	2,722,611		$	2,824,117
Owner - occupied real estate		1,270,015			1,315,442			1,285,530			1,270,746			1,206,597
Commercial real estate		3,741,662			3,873,199			4,042,871			4,074,331			4,094,164
		7,261,606			7,617,152			7,974,272			8,067,688			8,124,878
Consumer Loans
Indirect - sales finance		259,296			285,658			573,653			635,637			680,413
Consumer lot loans		161,206			178,212			198,032			225,486			249,062
Direct retail		86,474			87,326			90,999			95,397			100,257
Home equity		803,295			811,057			813,015			813,201			784,357
		1,310,271			1,362,253			1,675,699			1,769,721			1,814,089
Mortgage Loans		302,357			326,604			336,710			354,663			360,673
Total loans held for investment	$	8,874,234		$	9,306,009		$	9,986,681		$	10,192,072		$	10,299,640
Percentage of Loans Held for Investment
Commercial and industrial		25.3	%		26.1	%		26.4	%		26.7	%		27.4	%
Owner - occupied real estate		14.3			14.2			12.9			12.5			11.7
Commercial real estate		42.2			41.6			40.5			40.0			39.8
Consumer		14.8			14.6			16.8			17.3			17.6
Mortgage		3.4			3.5			3.4			3.5			3.5
Total		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
	For The Period Ended
	9/30/09			6/30/09			3/31/09			12/31/08			9/30/08
Growth in Loans Held for Investment (1)
Growth vs. prior quarter, annualized		(18.4	)%		(27.3	)%		(8.2	)%		(4.2	)%		(6.7	)%
Growth year-to-date, annualized		(17.3	)		(17.5	)		(8.2	)		(0.2	)		1.1
LOAN PORTFOLIO COMPOSITION -- CORE AND NON-CORE LOANS (BASED ON ABILITY TO BUILD/EXPAND BANKING RELATIONSHIP)
	9/30/09			6/30/09			3/31/09			12/31/08
Core Relationship Loans
Commercial	$	6,088,129		$	6,210,451		$	6,353,401		$	6,305,111
Consumer and mortgage		1,161,711			1,175,883			1,178,809			1,202,258
Total Core		7,249,840			7,386,334			7,532,210			7,507,369
Non-Core Loans
Commercial		1,173,477			1,406,701			1,620,871			1,762,577
Indirect - sales finance		240,638			276,179			569,124			635,637
Consumer lot loans		153,255			171,725			192,903			222,416
Other consumer and mortgage		57,024			65,070			71,573			64,073
Total Non-Core		1,624,394			1,919,675			2,454,471			2,684,703
Total loans held for investment	$	8,874,234		$	9,306,009		$	9,986,681		$	10,192,072

⁽¹⁾ At June 30, 2008 and December 31, 2007, loans held for investment totaled $10,475,731 and $10,213,420, respectively.

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
	9/30/09			6/30/09			3/31/09			12/31/08			9/30/08
Credit Quality
Loans held for investment	$	8,874,234		$	9,306,009		$	9,986,681		$	10,192,072		$	10,299,640
Allowance for loan losses		339,536			285,290			280,156			247,086			200,748
Allowance for credit losses		345,256			289,680			283,425			249,874			203,000
Nonperforming loans held for investment		431,791			464,565			422,950			349,382			237,812
Nonperforming loans held for sale		—			376			12,766			16,282			22,576
Foreclosed property (other real estate owned and personal property repossessions)		112,771			95,752			77,210			48,993			30,503
Nonperforming assets	$	544,562		$	560,693		$	512,926		$	414,657		$	290,891
Restructured loans not included in nonperforming assets	$	17,236		$	17,291		$	11,073		$	6,249		$	2,279
Nonperforming loans as a % of loans held for investment		4.87	%		4.99	%		4.24	%		3.43	%		2.31	%
Nonperforming assets as a % of loans and foreclosed property		6.05			5.94			5.08			4.04			2.81
Allowance for loan losses as a % of loans held for investment		3.83			3.07			2.81			2.42			1.95
Allowance for credit losses as a % of loans held for investment		3.89			3.11			2.84			2.45			1.97
Allowance for loan losses to nonperforming loans held for investment		0.79	x		0.61	x		0.66	x		0.71	x		0.84	x
Impaired loans	$	403,478		$	432,366		$	369,339		$	287,497		$	198,018
Specific allowance for impaired loans		48,929			70,006			66,988			44,418			29,911
Loans past due 90 days or more (interest accruing)		7,467			11,107			6,444			47,481			12,899
Net loan charge-offs		168,603			120,611			109,076			76,052			75,433
Average loans held for investment		9,146,694			9,847,366			10,154,853			10,308,823			10,441,580
Net loan charge-offs as a % of average loans held for investment (annualized)		7.31	%		4.91	%		4.36	%		2.93	%		2.87	%
Allowance for Loan Losses
Balance at beginning of period	$	285,290		$	280,156		$	247,086		$	200,748		$	191,727
Allowance adjustment for loans sold		—			(4,471	)		—			—			—
Provision for loan losses		222,849			130,216			142,146			122,390			84,454
Loans charged-off		(172,110	)		(124,122	)		(110,443	)		(78,297	)		(76,558	)
Recoveries of loans previously charged-off		3,507			3,511			1,367			2,245			1,125
Balance at end of period	$	339,536		$	285,290		$	280,156		$	247,086		$	200,748
Reserve for Unfunded Lending Commitments
Balance at beginning of period	$	4,390		$	3,269		$	2,788		$	2,252		$	2,098
Provision for unfunded lending commitments		1,330			1,121			481			536			154
Balance at end of period	$	5,720		$	4,390		$	3,269		$	2,788		$	2,252
Allowance for Credit Losses
Balance at beginning of period	$	289,680		$	283,425		$	249,874		$	203,000		$	193,825
Allowance adjustment for loans sold		—			(4,471	)		—			—			—
Provision for credit losses		224,179			131,337			142,627			122,926			84,608
Loans charged-off		(172,110	)		(124,122	)		(110,443	)		(78,297	)		(76,558	)
Recoveries of loans previously charged-off		3,507			3,511			1,367			2,245			1,125
Balance at end of period	$	345,256		$	289,680		$	283,425		$	249,874		$	203,000

8

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

	9/30/09 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	$	529		$	364		$	389		$	205		$	359		$	141		$	136		$	2,123			24	%
Residential A&D		80			56			140			18			47			13			37			391			4
Commercial A&D		34			22			35			30			8			15			30			174			2
Commercial construction		210			47			28			41			17			38			28			409			5
Residential construction		42			36			18			10			22			10			5			143			1
Residential condo		19			55			11			7			30			24			14			160			2
Undeveloped land		48			61			52			64			53			10			54			342			4
Total CRE Loans	$	962		$	641		$	673		$	375		$	536		$	251		$	304		$	3,742			42	%
% of Total Loans HFI		11	%		7	%		8	%		4	%		6	%		3	%		3	%		42	%

	9/30/09 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	$	6.9		$	14.6		$	21.8		$	6.1		$	4.5		$	10.2		$	17.8		$	81.9			19	%
Residential A&D		8.7			6.2			13.1			2.6			3.2			1.8			4.8			40.4			9
Commercial A&D		1.8			2.8			1.3			—			—			—			26.8			32.7			8
Commercial construction		14.7			—			4.2			—			—			—			5.6			24.5			6
Residential construction		2.1			1.0			1.3			8.8			0.1			7.2			2.2			22.7			5
Residential condo		7.4			18.3			0.1			0.7			—			8.7			3.3			38.5			9
Undeveloped land		0.5			0.1			1.5			13.8			1.3			5.1			24.5			46.8			11
Total CRE Nonaccrual Loans	$	42.1		$	43.0		$	43.3		$	32.0		$	9.1		$	33.0		$	85.0		$	287.5			67	%
CRE Nonaccrual Loans as % of Total Nonaccrual Loans (1)		10	%		10	%		10	%		7	%		2	%		8	%		20	%		67	%

	Three Months Ended 9/30/09 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	$	3.1		$	3.8		$	3.3		$	0.7		$	(0.1	)	$	2.2		$	2.9		$	15.9			9	%
Residential A&D		12.6			0.2			(0.5	)		0.3			12.3			0.3			1.1			26.3			16
Commercial A&D		0.8			0.6			(0.1	)		—			—			(0.1	)		0.1			1.3			1
Commercial construction		—			—			—			—			—			—			8.3			8.3			5
Residential construction		2.8			9.5			(1.4	)		1.0			—			—			1.8			13.7			8
Residential condo		1.1			(1.0	)		—			0.2			—			—			—			0.3			—
Undeveloped land		4.5			0.1			0.3			5.0			4.3			3.2			(0.3	)		17.1			10
Total CRE Net Charge-offs	$	24.9		$	13.2		$	1.6		$	7.2		$	16.5		$	5.6		$	13.9		$	82.9			49	%
CRE Net Charge-offs as % of Total Net Charge-offs		15	%		8	%		1	%		4	%		10	%		3	%		8	%		49	%

⁽¹⁾ Calculated as a percent of nonaccrual loans held for investment, which totaled $431.8 million at September 30, 2009.

9

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

	9/30/09			6/30/09			3/31/09			12/31/08			9/30/08
Noninterest-bearing	$	1,091,439		$	1,099,743		$	1,067,953		$	1,041,140		$	1,022,632
Interest-bearing checking		1,011,370			1,061,400			1,098,585			1,078,921			1,090,874
Money market accounts		2,174,627			1,978,114			1,889,041			1,834,115			1,806,143
Savings accounts		262,764			222,044			203,106			190,519			150,150
Core deposits		4,540,200			4,361,301			4,258,685			4,144,695			4,069,799
Time deposits under $100,000		1,651,560			1,710,870			1,742,177			1,863,520			1,840,363
Time deposits of $100,000 or more		1,197,988			1,260,709			1,383,639			1,488,735			1,524,813
Customer deposits (1)		7,389,748			7,332,880			7,384,501			7,496,950			7,434,975
Brokered deposits		2,099,040			2,055,772			1,842,577			1,908,767			2,573,833
Total deposits		9,488,788			9,388,652			9,227,078			9,405,717			10,008,808
Less: Brokered deposits		(2,099,040	)		(2,055,772	)		(1,842,577	)		(1,908,767	)		(2,573,833	)
Add: Customer sweep accounts		281,235			330,765			387,106			493,012			551,559
Customer funding (2)	$	7,670,983		$	7,663,645		$	7,771,607		$	7,989,962		$	7,986,534
Percentage of Deposits
Noninterest-bearing		11.5	%		11.7	%		11.6	%		11.1	%		10.2	%
Interest-bearing checking		10.7			11.3			11.9			11.5			10.9
Money market accounts		22.9			21.1			20.4			19.5			18.1
Savings accounts		2.8			2.4			2.2			2.0			1.5
Core deposits		47.9			46.5			46.1			44.1			40.7
Time deposits under $100,000		17.4			18.2			18.9			19.8			18.4
Time deposits of $100,000 or more		12.6			13.4			15.0			15.8			15.2
Customer deposits (1)		77.9			78.1			80.0			79.7			74.3
Brokered deposits		22.1			21.9			20.0			20.3			25.7
Total deposits		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

	For The Period Ended
	9/30/09			6/30/09			3/31/09			12/31/08			9/30/08
Growth vs. Prior Quarter, Annualized (3)
Noninterest-bearing		(3.0	)%		11.9	%		10.4	%		7.2	%		(30.4	)%
Total deposits		4.2			7.0			(7.7	)		(24.0	)		4.9
Customer funding (2)		0.4			(5.6	)		(11.1	)		0.2			(2.3	)
Growth Year-To-Date, Annualized (4)
Noninterest-bearing		6.5	%		11.4	%		10.4	%		(7.7	)%		(12.4	)%
Total deposits		1.2			(0.4	)		(7.7	)		(3.9	)		3.0
Customer funding (2)		(5.3	)		(8.2	)		(11.1	)		(2.3	)		(3.1	)

(1)	Total deposits less brokered deposits.
(2)	Total deposits less brokered deposits plus customer sweep accounts.
(3)	At June 30, 2008, noninterest-bearing totaled $1,107,115, total deposits totaled $9,886,369, and customer funding totaled $8,032,661.
(4)	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)

	9/30/09			6/30/09			3/31/09			12/31/08			9/30/08
Types of wholesale borrowings
Short-term borrowings
Federal funds purchased and repurchase agreements	$	25		$	25		$	197,309		$	67,309		$	137,927
Customer sweep accounts		281,235			330,765			387,106			493,012			551,559
Federal Reserve borrowings		—			—			750,000			1,050,000			30,000
Commercial paper		—			—			—			12,537			19,068
Treasury, tax and loan note		7,491			12,364			7,673			3,516			450,375
Total short-term borrowings		288,751			343,154			1,342,088			1,626,374			1,188,929
Long-term borrowings
Repurchase agreements		125,000			125,000			200,000			200,000			200,000
FHLB advances		762,158			762,188			467,717			233,497			298,119
Subordinated notes		206,704			206,704			206,704			216,704			216,704
Mandatorily redeemable preferred stock of subsidiary		31,800			31,800			56,800			56,800			56,800
Note payable		731			743			756			768			779
Purchase accounting premiums, net of amortization		—			—			—			—			707
Total long-term borrowings		1,126,393			1,126,435			931,977			707,769			773,109
Total borrowings		1,415,144			1,469,589			2,274,065			2,334,143			1,962,038
Less: Customer sweep accounts		(281,235	)		(330,765	)		(387,106	)		(493,012	)		(551,559	)
Add: Brokered deposits		2,099,040			2,055,772			1,842,577			1,908,767			2,573,833
Total wholesale borrowings	$	3,232,949		$	3,194,596		$	3,729,536		$	3,749,898		$	3,984,312
Wholesale borrowings as a percentage of total assets		26.3	%		25.4	%		28.1	%		27.6	%		29.1	%

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)

	9/30/09			6/30/09			3/31/09			12/31/08			9/30/08
Regulatory Capital
Tier 1 capital	$	1,122,738		$	1,308,678		$	1,395,469		$	1,513,452		$	1,295,008
Tier 2 capital		130,294			136,453			164,973			174,625			173,820
Total risk-based capital		1,253,032			1,445,131			1,560,442			1,688,077			1,468,828
Total risk-weighted assets		10,030,335			10,584,755			11,532,895			11,764,518			11,584,136
Tangible Equity
Mandatorily convertible preferred stock	$	4,650		$	190,026		$	190,026		$	238,700		$	249,000
Perpetual preferred stock		330,250			329,380			328,523			327,679			—
Common equity		863,801			989,847			1,033,634			1,054,152			1,284,614
Shareholders’ equity		1,198,701			1,509,253			1,552,183			1,620,531			1,533,614
Intangible assets		(230,606	)		(240,932	)		(244,729	)		(246,020	)		(484,570	)
Tangible equity		968,095			1,268,321			1,307,454			1,374,511			1,049,044
Capital Ratios
Tier 1 risk-based capital (preliminary)		11.19	%		12.36	%		12.10	%		12.86	%		11.18	%
Total risk-based capital (preliminary)		12.49			13.65			13.53			14.35			12.68
Leverage ratio (preliminary)		9.22			10.30			10.55			11.22			9.70
Tangible equity to tangible assets ratio		8.02			10.27			10.03			10.29			7.94
Impact of unrealized (gain) loss on securities		(0.23	)		(0.14	)		(0.19	)		(0.05	)		0.21
Tangible equity to tangible assets ratio, excluding unrealized gain or loss		7.79			10.13			9.84			10.24			8.15
Tangible common equity to tangible assets ratio		5.25			6.07			6.05			6.05			6.06
Unrealized Gains (Losses) on AFS Securities
Gross (included in AFS securities)	$	50,524		$	30,189		$	43,255		$	10,949		$	(48,147	)
Net of income tax (included in equity)		31,827			19,013			27,233			6,890			(30,334	)
Per Share Data
Mandatorily convertible preferred shares outstanding:
- Series 2008		4,650			95,526			190,026			238,700			249,000
- Series 2009		—			94,500			—			—			—
Total		4,650			190,026			190,026			238,700			249,000
Common shares outstanding		215,371,687			160,248,170			84,781,160			74,643,649			73,005,766
Common book value per common share	$	4.01		$	6.18		$	12.19		$	14.12		$	17.60
Common tangible book value per common share		2.94			4.67			9.31			10.83			10.96
Market Rates for U.S. Treasury Notes
Three year		1.45	%		1.64	%		1.15	%		1.00	%		2.28	%
Five year		2.31			2.54			1.67			1.55			2.98

12

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

	Three Months Ended
	9/30/09						6/30/09						3/31/09
	Average Balance		Income/ Expense		Yield/ Rate		Average Balance		Income/ Expense		Yield/ Rate		Average Balance		Income/ Expense		Yield/ Rate
Assets
Earning assets
Commercial loans	$	7,504,007	$	81,465	4.31	%	$	7,900,570	$	83,970	4.26	%	$	8,086,559	$	83,794	4.20	%
Consumer loans		1,387,242		16,103	4.61			1,443,823		17,282	4.80			1,494,261		17,566	4.77
Indirect loans		272,155		5,180	7.55			530,875		9,544	7.21			607,548		10,845	7.24
Risk management derivatives tied to loans		—		9,925				—		11,027				—		11,914
Total loans (1)		9,163,404		112,673	4.88			9,875,268		121,823	4.95			10,188,368		124,119	4.94
Investment securities (taxable) (2)		1,610,244		16,742	4.16			1,680,893		18,140	4.32			1,854,149		20,548	4.43
Investment securities (nontaxable) (3)		237,040		3,086	5.21			246,001		3,188	5.18			266,600		3,437	5.16
Total investment securities		1,847,284		19,828	4.29			1,926,894		21,328	4.43			2,120,749		23,985	4.52
Federal funds sold, interest-bearing bank balances, and other temp investments		175		—	—			255		—	—			198		1	2.05
Total earning assets		11,010,863		132,501	4.78			11,802,417		143,151	4.86			12,309,315		148,105	4.87
Non-earning assets		1,417,844						1,283,139						1,246,813
Total assets	$	12,428,707					$	13,085,556					$	13,556,128
Liabilities and Shareholders’ Equity
Liabilities
Interest-bearing liabilities
Interest-bearing deposits
Interest checking	$	1,011,374	$	699	0.27		$	1,036,339	$	724	0.28		$	1,131,456	$	865	0.31
Savings		243,787		599	0.97			208,856		472	0.91			196,974		529	1.09
Money market		2,092,634		7,030	1.33			1,924,037		6,726	1.40			1,913,927		7,779	1.65
Time deposits, excluding brokered deposits		2,909,664		22,241	3.03			3,067,471		26,581	3.48			3,199,427		28,867	3.66
Brokered deposits		1,911,837		14,587	3.03			1,954,201		15,038	3.09			1,905,805		16,803	3.58
Total interest-bearing deposits		8,169,296		45,156	2.19			8,190,904		49,541	2.43			8,347,589		54,843	2.66
Customer sweep accounts		309,577		230	0.29			362,342		245	0.27			455,781		298	0.27
Other borrowings (4)		1,134,993		5,997	2.10			1,682,118		6,319	1.51			1,899,771		6,743	1.44
Total interest-bearing liabilities		9,613,866		51,383	2.12			10,235,364		56,105	2.20			10,703,141		61,884	2.34
Noninterest-bearing liabilities
Noninterest-bearing deposits		1,109,176						1,074,739						1,021,400
Other noninterest liabilities		203,380						235,432						230,741
Total liabilities		10,926,422						11,545,535						11,955,282
Shareholders’ equity		1,502,285						1,540,021						1,600,846
Total liabilities and shareholders’ equity	$	12,428,707					$	13,085,556					$	13,556,128
Net interest margin (tax-equivalent)			$	81,118	2.93	%			$	87,046	2.96	%			$	86,221	2.83	%
Less: tax-equivalent adjustment (3)				1,080						1,116						1,203
Net interest income			$	80,038					$	85,930					$	85,018
Supplemental data:
Customer funding (5)	$	7,676,212	$	30,799	1.59	%	$	7,673,784	$	34,748	1.82	%	$	7,918,965	$	38,338	1.96	%
Wholesale borrowings (6)		3,046,830		20,584	2.68			3,636,319		21,357	2.36			3,805,576		23,546	2.51
Total funding (7)	$	10,723,042	$	51,383	1.90	%	$	11,310,103	$	56,105	1.99	%	$	11,724,541	$	61,884	2.14	%

(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, 2009 and March 31, 2009, TSFG capitalized $288,000 and $450,000, 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
	12/31/08							9/30/08
	Average Balance		Income/ Expense		Yield/ Rate			Average Balance		Income/ Expense		Yield/ Rate
Assets
Earning assets
Commercial loans	$	8,172,311	$	106,243		5.17	%	$	8,233,343	$	113,281		5.47	%
Consumer loans		1,514,602		19,941		5.24			1,518,642		22,577		5.91
Indirect loans		657,329		11,862		7.18			706,780		12,621		7.10
Risk management derivatives tied to loans		—		7,243					—		6,954
Total loans (1)		10,344,242		145,289		5.59			10,458,765		155,433		5.91
Investment securities (taxable) (2)		1,835,248		20,575		4.48			1,768,461		20,186		4.57
Investment securities (nontaxable) (3)		281,839		3,616		5.13			290,431		3,726		5.13
Total investment securities		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		1,128		10		3.53			37,149		197		2.11
Total earning assets		12,462,457		169,490		5.41			12,554,806		179,542		5.69
Non-earning assets		1,322,477							1,281,130
Total assets	$	13,784,934						$	13,835,936
Liabilities and Shareholders’ Equity
Liabilities
Interest-bearing liabilities
Interest-bearing deposits
Interest checking	$	1,010,878	$	1,310		0.52		$	1,130,079	$	2,481		0.87
Savings		173,927		518		1.18			143,014		255		0.71
Money market		1,814,901		9,808		2.15			1,949,001		11,293		2.31
Time deposits, excluding brokered deposits		3,401,800		32,130		3.76			3,259,783		30,522		3.72
Brokered deposits		2,227,055		21,880		3.91			2,574,430		24,520		3.79
Total interest-bearing deposits		8,628,561		65,646		3.03			9,056,307		69,071		3.03
Customer sweep accounts		529,344		1,174		0.88			536,526		2,251		1.67
Other borrowings (4)		1,805,655		9,772		2.15			1,453,196		11,297		3.09
Total interest-bearing liabilities		10,963,560		76,592		2.78			11,046,029		82,619		2.98
Noninterest-bearing liabilities
Noninterest-bearing deposits		1,001,516							1,059,565
Other noninterest liabilities		201,107							177,735
Total liabilities		12,166,183							12,283,329
Shareholders’ equity		1,618,751							1,552,607
Total liabilities and shareholders’ equity	$	13,784,934						$	13,835,936
Net interest margin (tax-equivalent)			$	92,898		2.97	%			$	96,923		3.08	%
Less: tax-equivalent adjustment (3)				1,265							1,304
Net interest income			$	91,633						$	95,619
Supplemental data:
Customer funding (5)	$	7,932,366	$	44,940		2.25	%	$	8,077,968	$	46,802		2.30	%
Wholesale borrowings (6)		4,032,710		31,652		3.12			4,027,626		35,817		3.54
Total funding (7)	$	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 December 31, 2008 and September 30, 2008, TSFG capitalized $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.

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
	9/30/09						6/30/09						3/31/09
				Diluted EPS						Diluted EPS						Diluted EPS
Net Loss, as Reported (GAAP)	$	(323,504	)				$	(89,676	)				$	(74,403	)
Preferred stock dividends and other (1)		(17,251	)					(21,809	)					(16,408	)
Net Loss Available to Common Shareholders	$	(340,755	)	$	(1.95	)	$	(111,485	)	$	(1.23	)	$	(90,811	)	$	(1.10	)
Net Loss, as Reported (GAAP)		(323,504	)					(89,676	)					(74,403	)
Add: Income tax expense (benefit)		123,304						(59,647	)					(49,706	)
Loss Before Income Taxes		(200,200	)					(149,323	)					(124,109	)
Non-Operating Items
(Gain) loss on securities		286						(4,580	)					2,954
Gain on sale of ancillary businesses		(7,234	)					—						—
Goodwill impairment		—						2,511						—
Employment contracts and severance		—						829						—
Impairment of long lived assets		746						17,376						—
FDIC special assessment		—						5,700						—
Gain on early extinguishment of debt		—						(2,991	)					(52	)
Loss on repurchase of auction rate securities		—						—						676
Pre-tax Operating Loss (loss before taxes, excluding non-operating items)		(206,402	)					(130,478	)					(120,531	)
Add: Provision for credit losses		224,179						131,337						142,627
Pre-tax, Pre-Provision Operating Earnings		17,777						859						22,096
Add: (Gain) loss on nonmortgage loans held for sale		(41	)					9,461						1,838
Add: Loss on OREO		4,406						12,873						124
Pre-tax, Pre-Credit Operating Earnings	$	22,142					$	23,193					$	24,058
Average Common Shares Outstanding, Diluted		174,426,381						90,986,862						82,223,190
Select Balance Sheet (Averages)
Total assets	$	12,428,707					$	13,085,556					$	13,556,128
Intangible assets		(235,986	)					(244,040	)					(245,341	)
Tangible assets		12,192,721						12,841,516						13,310,787
Preferred stock		491,365						518,968						532,430
Common equity		1,010,920						1,021,053						1,068,416
Shareholders’ equity		1,502,285						1,540,021						1,600,846
Intangible assets		(235,986	)					(244,040	)					(245,341	)
Tangible equity		1,266,299						1,295,981						1,355,505
Return on Average Assets (2)
GAAP loss		(10.33	)%					(2.75	)%					(2.23	)%
Return on Average Equity (2)
GAAP loss		(85.43	)					(23.36	)					(18.85	)
Return on Average Common Equity (3)
GAAP loss available to common shareholders		(133.73	)					(43.79	)					(34.47	)

(1)	For the quarters ended September 30, 2009, June 30, 2009 and March 31, 2009, includes $11.9 million, $14.0 million and $6.5 million, respectively, for the value of common shares recorded as an inducement for early conversion of mandatorily convertible preferred stock.
(2)	Return on average assets and return on average equity are calculated as net income divided by average assets or average total equity.
(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		28,016						35,348						45,846						41,258
Add: Loss on nonmortgage loans HFS		283						—						—						—
Add: (Gain) loss on OREO		(316	)					765						(3	)					187
Pre-tax, Pre-Credit Operating Earnings	$	27,983					$	36,113					$	45,843					$	41,445
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 contracts 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		150,468						185,083
Add: Loss on nonmortgage loans HFS		283						—
Add: Loss on OREO		633						401
Pre-tax, Pre-Credit Operating Earnings	$	151,384					$	185,484
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
	9/30/09			6/30/09			3/31/09
Select Financial Data Used in Ratios Calculated Below
Net interest income	$	80,038		$	85,930		$	85,018
Tax-equivalent adjustment		1,080			1,116			1,203
Net interest income (tax-equivalent)	$	81,118		$	87,046		$	86,221
Total noninterest income, as reported (GAAP)	$	33,470		$	32,272		$	23,741
Adjustments for non-operating items:
(Gain) loss on securities		286			(4,580	)		2,954
Gain on sale of ancillary businesses		(7,234	)		—			—
Operating noninterest income (noninterest income, excluding non-operating items)	$	26,522		$	27,692		$	26,695
Total noninterest expenses, as reported (GAAP)	$	89,529		$	136,188		$	90,241
Adjustments for non-operating items:
Goodwill impairment		—			(2,511	)		—
Employment contracts and severance		—			(829	)		—
Impairment of long lived assets		(746	)		(17,376	)		—
FDIC special assessment		—			(5,700	)		—
Gain on early extinguishment of debt		—			2,991			52
Loss on repurchase of auction rate securities		—			—			(676	)
Operating noninterest expenses (noninterest expenses, excluding non-operating items)		88,783			112,763			89,617
Less: loss on OREO		(4,406	)		(12,873	)		(124	)
Less: gain (loss) on nonmortgage loans held for sale		41			(9,461	)		(1,838	)
Less: amortization of intangibles		(1,238	)		(1,286	)		(1,291	)
Cash operating noninterest expenses (noninterest expenses, excluding non-operating items, loss on OREO, gain/loss on nonmortgage loans held for sale, and amortization of intangibles)	$	83,180		$	89,143		$	86,364
Total Revenue (1)
GAAP	$	113,508		$	118,202		$	108,759
Operating (2)		107,640			114,738			112,916
Noninterest Income as a % Total Revenue (3)
GAAP		29.49			27.30			21.83	%
Operating (2)		24.64			24.13			23.64
Cash Operating Efficiency Ratio (4)		77.28			77.69			76.49

(1)	The sum of net interest income and noninterest income.
(2)	Total revenue and noninterest income as a % of total revenue, on an operating basis, are calculated using tax-equivalent net interest income and exclude non-operating items.
(3)	Calculated as noninterest income, divided by the sum of net interest income and noninterest income.
(4)	Calculated as operating noninterest expenses before loss on OREO, gain/loss on nonmortgage loans held for sale, and amortization of intangibles, divided by the sum of tax-equivalent net interest income and operating 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: gain (loss) on OREO		316			(765	)		3			(187	)
Less: loss on nonmortgage loans held for sale		(283	)		—			—			—
Less: amortization of intangibles		(1,417	)		(1,474	)		(1,589	)		(1,658	)
Cash operating noninterest expenses (noninterest expenses, excluding non-operating items, gain/loss on OREO, loss on nonmortgage loans held for sale, and amortization of intangibles)	$	90,684		$	87,422		$	83,084		$	78,406
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
Cash Operating Efficiency Ratio(4)		74.73			69.21			63.01			63.77

(1)	The sum of net interest income and noninterest income.
(2)	Total revenue and noninterest income as a % of total revenue, on an operating basis, are calculated using tax-equivalent net interest income and exclude non-operating items.
(3)	Calculated as noninterest income, divided by the sum of net interest income and noninterest income.
(4)	Calculated as operating noninterest expenses before gain/loss on OREO, loss on nonmortgage loans held for sale, and amortization of intangibles, divided by the sum of tax-equivalent net interest income and operating 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 contracts 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: gain (loss) on OREO		(633	)		(401	)
Less: loss on nonmortgage loans held for sale		(283	)		—
Less: amortization of intangibles		(6,138	)		(7,897	)
Cash operating noninterest expenses (noninterest expenses, excluding non-operating items, gain/loss on OREO, loss on nonmortgage loans held for sale, and amortization of intangibles)	$	339,596		$	307,735
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
Cash Operating Efficiency Ratio (4)		67.59			60.65

(1)	The sum of net interest income and noninterest income.
(2)	Total revenue and noninterest income as a % of total revenue, on an operating basis, are calculated using tax-equivalent net interest income and exclude non-operating items.
(3)	Calculated as noninterest income, divided by the sum of net interest income and noninterest income.
(4)	Calculated as operating noninterest expenses before gain/loss on OREO, loss on nonmortgage loans held for sale, and amortization of intangibles, divided by the sum of tax-equivalent net interest income and operating noninterest income.

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