SOUTH FINANCIAL GROUP INC 8-K (Events or Changes Between Quarterly Reports) 2009-02-23

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT

TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): February 23, 2009
The South Financial Group, Inc.

(Exact name of registrant as specified in its charter)
South Carolina 0-15083 57-0824914

(State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification Number)
102 South Main Street, Greenville, South Carolina 29601

(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (864) 255-7900
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Securities Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
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Item 7.01 Regulation FD Disclosure
Information presented by The South Financial Group, Inc. to investors is included herewith.
Item 9.01 Exhibits
99.1 Investor Presentation, First Quarter 2009
Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned hereunto duly authorized.
THE SOUTH FINANCIAL GROUP, INC.
February 23, 2009 By: /s/ William P. Crawford, Jr.

William P. Crawford, Jr.
Executive Vice President and General Counsel
-2-
Investor Presentation
First Quarter 2009
Forward-Looking Statements
and Non-GAAP Financial Information
The forward-looking statements, as defined in the applicable federal securities laws, being made today are subject to risks
Forward-Looking Statements
and Non-GAAP Financial Information
The forward-looking statements, as defined in the applicable federal securities laws, being made today are subject to risks
and uncertainties. TSFG’s actual results may differ materially from those set forth in such forward-looking statements.
These statements include, but are not limited to, factors that may affect TSFG’s return goals, loan growth, loan sales,
customer funding growth, expense control, income tax rate, expected financial results for acquisitions, noninterest income,
adequacy of capital and future capital levels, factors that will affect credit quality and the net interest margin, effectiveness
of hedging strategies, risks and effects of changes in interest rates, effects of general economic and financial market
conditions, and market performance. Reference is made to TSFG’s reports filed with the Securities and Exchange
Commission for a discussion of factors that may cause such differences to occur. TSFG undertakes no obligation to release
revisions to these forward-looking statements or reflect events or circumstances after today’s presentation.
This presentation contains certain non-GAAP measures that exclude the impact of certain nonoperating items. TSFG
management uses these non-GAAP, or operating measures, in its analysis of TSFG’s performance. TSFG believes
presentations of financial measures excluding the impact of certain items provide useful supplemental information and
better reflect its core operating activities. Management uses operating measures, in particular, to analyze on a consistent
basis and over a longer period of time, the performance of which it considers to be its core operations.
Operating measures adjust GAAP information to exclude the effects of nonoperating items, such as gains or losses on
certain asset sales, early extinguishment of debt, employment contract buyouts, impairment charges, and other
nonoperating expenses. The limitations associated with utilizing operating measures are the risk that persons might
disagree as to the appropriateness of items comprising these measures and different companies might calculate these
measures differently. Management compensates for these limitations by providing detailed reconciliations between GAAP
and operating measures. These disclosures should not be considered an alternative to GAAP results. A reconciliation of
GAAP results and non-GAAP measures is provided in the Quarterly Financial Data Supplement on our web site,
www.thesouthgroup.com, in the Investor Relations section under Quarterly Earnings.
Company Overview
TSFG AT A GLANCE
$ in billions, as of 12/31/08
Total assets $13.6
Loans held for investment $10.2
Customer funding* $8.0
Tangible shareholders’ equity $1.4
Tangible equity to tangible

assets 10.29%
Branch offices:
NC 27
SC 82
FL 71
* Customer funding includes total deposits less brokered deposits plus customer sweeps.
** Mercantile Bank is a division of Carolina First Bank.
Company Overview
TSFG AT A GLANCE
$ in billions, as of 12/31/08
Total assets $13.6
Loans held for investment $10.2
Customer funding* $8.0
Tangible shareholders’ equity $1.4
Tangible equity to tangible

assets 10.29%
Branch offices:
NC 27
SC 82
FL 71
* Customer funding includes total deposits less brokered deposits plus customer sweeps.
** Mercantile Bank is a division of Carolina First Bank.
Goal: Relationship Bank of Choice
Building core banking relationships

Focused on customer relationships with local decision-making
Accessible and responsive
Involved in our communities
Target small businesses, middle market, and retail customers

Built through multi-product relationships
Located in attractive Southeastern markets with long-term growth

potential
Led by local Market Presidents in 12 markets

Average of 24 years banking experience
Local market and customer knowledge
Local authority to make customer decisions
Goal: Relationship Bank of Choice
Building core banking relationships

Focused on customer relationships with local decision-making
Accessible and responsive
Involved in our communities
Target small businesses, middle market, and retail customers

Built through multi-product relationships
Located in attractive Southeastern markets with long-term growth

potential
Led by local Market Presidents in 12 markets

Average of 24 years banking experience
Local market and customer knowledge
Local authority to make customer decisions
Footprint: Long-term Growth Potential

PROJECTED HOUSEHOLD GROWTH (2008-2013)
Household Growth
Company Name (%)
United Community Banks 14.2%
Cullen/Frost 11.8
Zions Bancorporation 11.1
SunTrust Banks 10.5
Colonial BancGroup 10.5
The South Financial Group 10.2
Synovus 8.8
BB&T 8.3
Whitney 7.0
BOK Financial 6.7
U.S. Median 6.5
Operating Peer Median 6.5
Regions 6.4
Trustmark 6.3
First Horizon 5.5
Growth estimates deposit weighted by county as of 6/30/08
SOURCE: SNL Financial

Footprint: Long-term Growth Potential

Household Growth
Company Name (%)
United Community Banks 14.2%
Cullen/Frost 11.8
Zions Bancorporation 11.1
SunTrust Banks 10.5
Colonial BancGroup 10.5
The South Financial Group 10.2
Synovus 8.8
BB&T 8.3
Whitney 7.0
BOK Financial 6.7
U.S. Median 6.5
Operating Peer Median 6.5
Regions 6.4
Trustmark 6.3
First Horizon 5.5
Growth estimates deposit weighted by county as of 6/30/08
Footprint: Geographic Diversification

DEPOSITS BY STATE*
As of December 31, 2008
*Percent of total deposits by state as of December 31; reflects customer deposits after 12/31/04
Footprint: Geographic Diversification

DEPOSITS BY STATE*
As of December 31, 2008
*Percent of total deposits by state as of December 31; reflects customer deposits after 12/31/04
Proactive and Realistic Approach to Cycle

$250 million Capital Raise in May 2008
Attracted sophisticated large investors
Reduced quarterly common cash dividend to $0.01 per share;
preserves $52 million annually in retained capital
Strengthened overall Liquidity Position

$4.4 billion unused secured capacity at 12/31/08
In May 2008, suspended indirect automobile lending in Florida
Parent company has $210 million in cash at 12/31/08 to cover
expected cash flow needs, debt service and existing dividends
through 2012 with no support from banking subsidiary
New Risk Management team

Lynn Harton (former Chief Credit Officer of Regions/Union
Planters) hired in June 2007; now President & CEO
Significant number of senior leadership level hires from same
team
Large bank experience in turnaround situations
Proactive and Realistic Approach to Cycle

$250 million Capital Raise in May 2008
Attracted sophisticated large investors
Reduced quarterly common cash dividend to $0.01 per share;
preserves $52 million annually in retained capital
Strengthened overall Liquidity Position

$4.4 billion unused secured capacity at 12/31/08
In May 2008, suspended indirect automobile lending in Florida
Parent company has $210 million in cash at 12/31/08 to cover
expected cash flow needs, debt service and existing dividends
through 2012 with no support from banking subsidiary
New Risk Management team

Lynn Harton (former Chief Credit Officer of Regions/Union
Planters) hired in June 2007; now President & CEO
Significant number of senior leadership level hires from same
team
Large bank experience in turnaround situations
Proactive and Realistic Approach (continued)

Resulted in Early Identification of real estate credit issues
New management processes reflected in risk grades identified
growing level of problems
Disclosed rising levels of nonaccruals in 1Q08, ahead of
Southeastern Peers
Increased loan loss reserve in 1Q08 to one of the highest levels in
the Southeast; built to 2.45% at 12/31/08
Began loan sales (2Q08) earlier than peers
Recognized by analysts as having a realistic and aggressive
posture in managing credit risk
$347 million of U.S. Treasury CPP Capital in December 2008
Lynn Harton named President & CEO in February 2009

Served as Interim since 11/13/08
Proactive and Realistic Approach (continued)

Resulted in Early Identification of real estate credit issues
New management processes reflected in risk grades identified
growing level of problems
Disclosed rising levels of nonaccruals in 1Q08, ahead of
Southeastern Peers
Increased loan loss reserve in 1Q08 to one of the highest levels in
the Southeast; built to 2.45% at 12/31/08
Began loan sales (2Q08) earlier than peers
Recognized by analysts as having a realistic and aggressive
posture in managing credit risk
$347 million of U.S. Treasury CPP Capital in December 2008
Lynn Harton named President & CEO in February 2009

Served as Interim since 11/13/08
New Leadership - Initial Actions

Organizational leadership changes
New Florida leadership
Executive Mgmt structure modified to clarify responsibilities/ownership
Director of Commercial Banking Strategy created to drive support and
strategy for largest business line
All line bankers now reporting to the State Bank Presidents instead of
operating in “silo” lines of business
Intense focus on communication to clarify ONE Bank strategy

Clarify target customers and methods of delivering value
Changed incentive plans to support relationship bank strategy
Created internal segmentation of “core/non-core” product segments to
measure success of each piece of the business
Quick moves to begin streamlining cost structure

December 2008 staff reductions
No 2008 bonus or 2009 merit increases for Executive Mgmt Team
Corporate campus evaluation
Initiated Phase 1 of Project NOW

8 workstreams, each with a full-time employee “owner” supported by
outside project management experts
Anticipated annual pre-tax operating benefits of $18-$20 million
New Leadership - Initial Actions

Organizational leadership changes
New Florida leadership
Executive Mgmt structure modified to clarify responsibilities/ownership
Director of Commercial Banking Strategy created to drive support and
strategy for largest business line
All line bankers now reporting to the State Bank Presidents instead of
operating in “silo” lines of business
Intense focus on communication to clarify ONE Bank strategy

Clarify target customers and methods of delivering value
Changed incentive plans to support relationship bank strategy
Created internal segmentation of “core/non-core” product segments to
measure success of each piece of the business
Quick moves to begin streamlining cost structure

December 2008 staff reductions
No 2008 bonus or 2009 merit increases for Executive Mgmt Team
Corporate campus evaluation
Initiated Phase 1 of Project NOW

8 workstreams, each with a full-time employee “owner” supported by
outside project management experts
Anticipated annual pre-tax operating benefits of $18-$20 million
Executive Management Team

Year
Joined
Name Position Age TSFG Prior Experience
H. Lynn Harton President and CEO 47 2007 BB&T/Union Planters/Regions
EVP, Chief Operations and Colonial/Chase Manhattan

Tanya A. Butts 50 2006
Technology Officer Mortgage/HomeSide Lending
Wyche, Burgess, Freeman &

William P. Crawford, Jr. EVP, Chief Legal and Risk Officer 46 2002
Parham
Regions/Terrabank/Southeast
J. Ernesto “Ernie” Diaz President, Florida 43 2007
Bank
Robert A. Edwards EVP, Chief Credit Officer 44 2007 BB&T/Regions
Scott M. Frierson President, North and South Carolina 45 1988 Citizens/Southern Bank
Christopher S. Gompper EVP, Director Commercial Strategy 49 2005 AmSouth/Wells Fargo
PwC/Union Planters/National
James R. Gordon Sr. EVP, Chief Financial Officer 43 2007
Commerce
Christopher T. Holmes Sr. EVP, Director Retail Strategy 45 2006 National Commerce/Trustmark
Mary A. Jeffrey EVP, Chief Human Resources Officer 58 2002 Barnett Bank/NationsBank
Keith D. Williamson EVP, General Auditor 54 2005 First Horizon
NOTE: Shading indicates new role or added responsibilities effective in 4Q08.

Executive Management Team

Year
Joined
Name Position Age TSFG Prior Experience
H. Lynn Harton President and CEO 47 2007 BB&T/Union Planters/Regions
EVP, Chief Operations and Colonial/Chase Manhattan

Tanya A. Butts 50 2006
Technology Officer Mortgage/HomeSide Lending
Wyche, Burgess, Freeman &

William P. Crawford, Jr. EVP, Chief Legal and Risk Officer 46 2002
Parham
Regions/Terrabank/Southeast
J. Ernesto “Ernie” Diaz President, Florida 43 2007
Bank
Robert A. Edwards EVP, Chief Credit Officer 44 2007 BB&T/Regions
Scott M. Frierson President, North and South Carolina 45 1988 Citizens/Southern Bank
Christopher S. Gompper EVP, Director Commercial Strategy 49 2005 AmSouth/Wells Fargo
PwC/Union Planters/National
James R. Gordon Sr. EVP, Chief Financial Officer 43 2007
Commerce
Christopher T. Holmes Sr. EVP, Director Retail Strategy 45 2006 National Commerce/Trustmark
Mary A. Jeffrey EVP, Chief Human Resources Officer 58 2002 Barnett Bank/NationsBank
Keith D. Williamson EVP, General Auditor 54 2005 First Horizon
NOTE: Shading indicates new role or added responsibilities effective in 4Q08.
Strategic Objectives
EXECUTION POINTS OBJECTIVES
Aggressively identify and resolve stressed portfolios

Credit Quality Improve longer-term performance relative to peers
Focus on liquidity in near-term with longer-term

view of improving NIM
Funding Lower funding costs longer-term by improving
volume, mix, and cost of deposits
Continue to manage tangible equity ratio

Capital Management Maintain strong regulatory capital ratios
Control operating noninterest expenses, excluding

environmental costs
Expense Control Launched Phase 1 of efficiency project with focus on
both expense management and revenue
opportunities
Increase through growth in deposits and wealth

Noninterest Income
management revenues
Focus on relationship-based lending to small and

family-owned businesses in market
Loan Growth
Deemphasize noncore portfolios: indirect, lot loans,
residential construction, shared national credits
Strategic Objectives
EXECUTION POINTS OBJECTIVES
Aggressively identify and resolve stressed portfolios

Credit Quality Improve longer-term performance relative to peers
Focus on liquidity in near-term with longer-term

view of improving NIM
Funding Lower funding costs longer-term by improving
volume, mix, and cost of deposits
Continue to manage tangible equity ratio

Capital Management Maintain strong regulatory capital ratios
Control operating noninterest expenses, excluding

environmental costs
Expense Control Launched Phase 1 of efficiency project with focus on
both expense management and revenue
opportunities
Increase through growth in deposits and wealth

Noninterest Income
management revenues
Focus on relationship-based lending to small and

family-owned businesses in market
Loan Growth
Deemphasize noncore portfolios: indirect, lot loans,
residential construction, shared national credits
Diversified Loan Portfolio
Loan Mix Diversified portfolio

As of December 31, 2008 By product and customer
By geography
In-footprint focus
Mortgage* Customers we know; markets
Home Equity we understand
Indirect - C&I No broker mortgage/HE loans
Sales Finance Minimal subprime exposure
Suspended Florida indirect
Residential
Construction Disciplined approval and portfolio
Owner-
Occupied management processes
Commercial
Local credit officers
Dev elopment Executive credit committee
Income
Property approval for largest
relationships
Special assets department for
high risk loans
Centralized consumer
($ in millions) approval and collections
Total Loans Held for
Inv estment $10,192
Specialized credit support for our
largest businesses
* Mortgage includes Consumer Lot Loans and Other (Direct Retail and Unsecured Lines). CRE; Corporate Banking/SNC
Diversified Loan Portfolio
Loan Mix Diversified portfolio

As of December 31, 2008 By product and customer
By geography
In-footprint focus
Mortgage* Customers we know; markets
Home Equity we understand
Indirect - C&I No broker mortgage/HE loans
Sales Finance Minimal subprime exposure
Suspended Florida indirect
Residential
Construction Disciplined approval and portfolio
Owner-
Occupied management processes
Commercial
Local credit officers
Dev elopment Executive credit committee
Income
Property approval for largest
relationships
Special assets department for
high risk loans
Centralized consumer
($ in millions) approval and collections
Total Loans Held for
Inv estment $10,192
Specialized credit support for our
largest businesses
* Mortgage includes Consumer Lot Loans and Other (Direct Retail and Unsecured Lines). CRE; Corporate Banking/SNC
Credit Quality Results

Residential construction and housing-related loans continue to be primary
stress across entire footprint
Reduced residential construction portfolio by $365 million, or 22%, since
3/31/08
Recession showing signs of impacting C&I and consumer loan categories
NCOs $76.1 million, or 2.93% of average loans annualized (YTD 2.16%)
Provision of $122.9 million, a $38.3 million increase from 3Q08
Exceeds NCOs by $46.9 million; reserve build of $121.2 million in 2008
Built reserve to 2.45% (from 1.97% at 9/30/08 and 1.26% at
12/31/07)
NPAs increased to 4.10% of loans and foreclosed property
NPLs held for investment increased to $355.6 million, up from $240.1
million at 9/30/08
Commercial NALs carried at 67% after deducting specific reserves
Inflows reflect migration of existing watch loans (NAL inflows: $195
million for 4Q08, $104 million for 3Q08, $74 million for 2Q08, and $175
million for 1Q08)
Gaining control of assets through foreclosure process
Limited loan sale activity in 4Q08 due to less liquidity for buyers and
continuing uncertainty regarding market outlook
Credit Quality Results

Residential construction and housing-related loans continue to be primary
stress across entire footprint
Reduced residential construction portfolio by $365 million, or 22%, since
3/31/08
Recession showing signs of impacting C&I and consumer loan categories
NCOs $76.1 million, or 2.93% of average loans annualized (YTD 2.16%)
Provision of $122.9 million, a $38.3 million increase from 3Q08
Exceeds NCOs by $46.9 million; reserve build of $121.2 million in 2008
Built reserve to 2.45% (from 1.97% at 9/30/08 and 1.26% at
12/31/07)
NPAs increased to 4.10% of loans and foreclosed property
NPLs held for investment increased to $355.6 million, up from $240.1
million at 9/30/08
Commercial NALs carried at 67% after deducting specific reserves
Inflows reflect migration of existing watch loans (NAL inflows: $195
million for 4Q08, $104 million for 3Q08, $74 million for 2Q08, and $175
million for 1Q08)
Gaining control of assets through foreclosure process
Limited loan sale activity in 4Q08 due to less liquidity for buyers and
continuing uncertainty regarding market outlook
Loan and Credit Quality Composition

As of December 31, 2008, $ in millions NAL % of
% of Nonaccrual O/S QTD Net YTD Net 30-day
Outstanding O/S Loans Balance Charge- Charge- past due
Balance Balance HFI* offs offs %
C&I $ 2,723 27% $36 1.32% $17.6 $42.1 1.01%
Owner-occupied
1,271 12% 15 1.17% 1.8 3.5 1.19%
CRE
Completed
2,203 22% 59 2.67% 10.3 15.2 1.32%
income property
Commercial
608 6% 29 4.85% 2.6 15.1 1.45%
development
Residential
1,263 12% 142 11.24% 24.5 102.6 4.93%
construction
Indirect – sales
636 6% 1 0.11% 5.0 14.1 2.21%
finance
Home equity 813 8% 8 1.01% 2.4 6.1 1.42%
Mortgage** 580 6% 59 10.17% 12.1 24.1 9.46%
Other** 95 1% -- 0.26% 0.0 1.0 3.04%
Total Loans HFI $10,192 100% $349 3.42% $76.1 $223.4 2.22%
9/30/08 $10,300 $238 2.30% $75.4 1.16%
6/30/08 $10,476 $219 2.09% $47.0 0.84%
3/31/08 $10,276 $222 2.16% $25.0 1.14%
HFI = Held for Investment; 30-day past due % of outstanding balance excludes nonaccrual loans. See page 9 of the Quarterly Financial Data Supplement
for Commercial Real Estate loans by product type and by geography. Commercial Development includes Commercial A&D and Commercial Construction.
Residential Construction includes Residential A&D, Residential Construction, Residential Condo, and Undeveloped Land.
* Nonaccrual loans exclude nonaccrual loans held for sale of $16.5 million.
** Mortgage includes Consumer Lot Loans. Other includes Direct Retail and Unsecured Lines.
Loan and Credit Quality Composition

As of December 31, 2008, $ in millions NAL % of
% of Nonaccrual O/S QTD Net YTD Net 30-day
Outstanding O/S Loans Balance Charge- Charge- past due
Balance Balance HFI* offs offs %
C&I $ 2,723 27% $36 1.32% $17.6 $42.1 1.01%
Owner-occupied
1,271 12% 15 1.17% 1.8 3.5 1.19%
CRE
Completed
2,203 22% 59 2.67% 10.3 15.2 1.32%
income property
Commercial
608 6% 29 4.85% 2.6 15.1 1.45%
development
Residential
1,263 12% 142 11.24% 24.5 102.6 4.93%
construction
Indirect – sales
636 6% 1 0.11% 5.0 14.1 2.21%
finance
Home equity 813 8% 8 1.01% 2.4 6.1 1.42%
Mortgage** 580 6% 59 10.17% 12.1 24.1 9.46%
Other** 95 1% -- 0.26% 0.0 1.0 3.04%
Total Loans HFI $10,192 100% $349 3.42% $76.1 $223.4 2.22%
9/30/08 $10,300 $238 2.30% $75.4 1.16%
6/30/08 $10,476 $219 2.09% $47.0 0.84%
3/31/08 $10,276 $222 2.16% $25.0 1.14%
HFI = Held for Investment; 30-day past due % of outstanding balance excludes nonaccrual loans. See page 9 of the Quarterly Financial Data Supplement
for Commercial Real Estate loans by product type and by geography. Commercial Development includes Commercial A&D and Commercial Construction.
Residential Construction includes Residential A&D, Residential Construction, Residential Condo, and Undeveloped Land.
* Nonaccrual loans exclude nonaccrual loans held for sale of $16.5 million.
Credit Quality Trends - Commercial

$ in millions
Outstanding Nonaccrual NAL % of QTD Net 30-day past
Balance Loans HFI O/S Balance Charge-offs due %
C&I 4Q08 $ 2,723 $36 1.32% $17.6 1.01%
3Q08 $2,824 $28 0.97% $12.7 0.44%
2Q08 $2,891 $28 0.98% $4.4 0.50%
Owner-occupied CRE 4Q08 $1,271 $15 1.17% $1.8 1.19%

3Q08 $1,207 $7 0.58% $0.8 0.79%
2Q08 $1,184 $5 0.43% $0.4 0.43%
Completed income 4Q08 $2,203 $59 2.67% $10.3 1.32%

3Q08 $2,084 $22 1.05% $1.9 1.15%
2Q08 $2,037 $17 0.84% $2.6 0.21%
Commercial 4Q08 $608 $29 4.85% $2.6 1.45%

development 3Q08 $601 $11 1.87% $2.5 0.27%
2Q08 $575 $3 0.57% $8.7 0.86%
Residential 4Q08 $1,263 $142 11.24% $24.5 4.93%

construction 3Q08 $1,410 $127 9.03% $44.6 1.76%
2Q08 $1,550 $131 8.47% $22.3 1.33%
HFI = Held for Investment; 30-day past due % of outstanding balance excludes nonaccrual loans.
Credit Quality Trends - Commercial

$ in millions
C&I 4Q08 $ 2,723 $36 1.32% $17.6 1.01%
3Q08 $2,824 $28 0.97% $12.7 0.44%
2Q08 $2,891 $28 0.98% $4.4 0.50%
Owner-occupied CRE 4Q08 $1,271 $15 1.17% $1.8 1.19%

3Q08 $1,207 $7 0.58% $0.8 0.79%
2Q08 $1,184 $5 0.43% $0.4 0.43%
Completed income 4Q08 $2,203 $59 2.67% $10.3 1.32%

3Q08 $2,084 $22 1.05% $1.9 1.15%
2Q08 $2,037 $17 0.84% $2.6 0.21%
Commercial 4Q08 $608 $29 4.85% $2.6 1.45%

development 3Q08 $601 $11 1.87% $2.5 0.27%
2Q08 $575 $3 0.57% $8.7 0.86%
Residential 4Q08 $1,263 $142 11.24% $24.5 4.93%

construction 3Q08 $1,410 $127 9.03% $44.6 1.76%
2Q08 $1,550 $131 8.47% $22.3 1.33%
Credit Quality Trends - Consumer

$ in millions
Indirect–sales finance 4Q08 $636 $1 0.11% $5.0 2.21%
3Q08 $680 $1 0.10% $3.4 1.69%
2Q08 $729 $1 0.07% $3.3 1.46%
Home equity 4Q08 $813 $8 1.01% $2.4 1.42%

3Q08 $784 $5 0.68% $2.6 0.71%
2Q08 $781 $5 0.60% $0.8 0.74%
Mortgage** 4Q08 $580 $59 10.17% $12.1 9.46%

3Q08 $610 $36 5.92% $6.9 4.64%
2Q08 $629 $28 4.51% $3.8 3.21%
Other** 4Q08 $95 $ -- 0.26% $0.0 3.04%

3Q08 $100 $1 0.94% $0.0 1.84%
2Q08 $100 $ -- 0.20% $1.0 1.95%
Credit Quality Trends - Consumer

$ in millions
Indirect–sales finance 4Q08 $636 $1 0.11% $5.0 2.21%
3Q08 $680 $1 0.10% $3.4 1.69%
2Q08 $729 $1 0.07% $3.3 1.46%
Home equity 4Q08 $813 $8 1.01% $2.4 1.42%

3Q08 $784 $5 0.68% $2.6 0.71%
2Q08 $781 $5 0.60% $0.8 0.74%
Mortgage** 4Q08 $580 $59 10.17% $12.1 9.46%

3Q08 $610 $36 5.92% $6.9 4.64%
2Q08 $629 $28 4.51% $3.8 3.21%
Other** 4Q08 $95 $ -- 0.26% $0.0 3.04%

3Q08 $100 $1 0.94% $0.0 1.84%
2Q08 $100 $ -- 0.20% $1.0 1.95%
Residential Construction by Geography

As of December 31, 2008, $ in millions
% of NAL % QTD Net YTD Net 30-day
Outstanding Nonaccrual
Resid. of O/S Charge- Charge- past due
Balance Loans HFI
Constr. Balance offs offs %
Residential Construction:
FL undeveloped
$252 20% $51 20.20% $2.4 $19.7 11.88%
land
FL residential A&D 145 11% 16 11.21% 7.9 35.6 1.29%
FL residential
59 5% 9 16.16% 2.1 5.5 1.46%
construction
FL residential
78 6% 14 17.61% 6.2 28.0 0.00%
condo
Total FL, 12/31/08 $534 42% $90 16.94% $18.6 $88.8 6.13%
9/30/08 $619 44% $96 15.47% $39.4 1.87%
Total NC,12/31/08 $290 23% $30 10.45% $3.9 $8.3 2.10%

9/30/08 $306 22% $21 6.93% $2.7 3.63%
Total SC, 12/31/08 $439 35% $22 4.85% $2.0 $5.5 5.35%
9/30/08 $485 34% $10 2.14% $2.5 0.45%
Overall Total,
$1,263 100% $142 11.24% $24.5 $102.6 4.93%
12/31/08
9/30/08 $1,410 $127 9.03% $44.6 1.76%
6/30/08 $1,550 $131 8.47% $22.3 1.33%

3/31/08 $1,628 $134 8.23% $11.2 1.58%
30-day past due % of outstanding balance excludes nonaccrual loans.

See page 9 of the Quarterly Financial Data Supplement for detail for NC and SC.
Residential Construction by Geography

% of NAL % QTD Net YTD Net 30-day
Outstanding Nonaccrual
Resid. of O/S Charge- Charge- past due
Balance Loans HFI
Constr. Balance offs offs %
Residential Construction:
FL undeveloped
$252 20% $51 20.20% $2.4 $19.7 11.88%
land
FL residential A&D 145 11% 16 11.21% 7.9 35.6 1.29%
FL residential
59 5% 9 16.16% 2.1 5.5 1.46%
construction
FL residential
78 6% 14 17.61% 6.2 28.0 0.00%
condo
Total FL, 12/31/08 $534 42% $90 16.94% $18.6 $88.8 6.13%
9/30/08 $619 44% $96 15.47% $39.4 1.87%
Total NC,12/31/08 $290 23% $30 10.45% $3.9 $8.3 2.10%

9/30/08 $306 22% $21 6.93% $2.7 3.63%
Total SC, 12/31/08 $439 35% $22 4.85% $2.0 $5.5 5.35%
9/30/08 $485 34% $10 2.14% $2.5 0.45%
Overall Total,
$1,263 100% $142 11.24% $24.5 $102.6 4.93%
12/31/08
9/30/08 $1,410 $127 9.03% $44.6 1.76%
6/30/08 $1,550 $131 8.47% $22.3 1.33%

3/31/08 $1,628 $134 8.23% $11.2 1.58%
30-day past due % of outstanding balance excludes nonaccrual loans.

See page 9 of the Quarterly Financial Data Supplement for detail for NC and SC.
Commercial Nonaccruals – Net Balance

$ in millions
Net Net
12/31/08
Unpaid Cumulativ e 12/31/08 Balance Balance
Nonaccrual
Principal
(1)
- Net Charge- = Loan - Specific = Less as % of
(2) Reserv e(3) Specific Unpaid
offs Balance
Reserv e Principal
C&I $49 $13 $36 $8 $28 57%
Owner-occupied
17 2 15 4 11 65%
CRE
Completed
71 12 59 5 54 76%
income property
Commercial
38 9 29 8 22 57%
development
Residential
177 35 142 19 122 69%
construction
Consistent
Total
$352 $71 $281 $44 $237 67% with
Commercial 9/30/08
(1) Outstanding balance at default

(2) Typically charge-down at nonaccrual to approximately 80% of most recent appraised value
(3) Additional specific reserves are established as necessary based on estimated disposal costs, estimated holding period and current market
and economic conditions; recognized as charge-offs when realized. However, these amounts do not include the qualitative components within
the overall allowance for credit loans.
Commercial Nonaccruals – Net Balance

$ in millions
Net Net
12/31/08
Unpaid Cumulativ e 12/31/08 Balance Balance
Nonaccrual
Principal
(1)
- Net Charge- = Loan - Specific = Less as % of
(2) Reserv e(3) Specific Unpaid
offs Balance
Reserv e Principal
C&I $49 $13 $36 $8 $28 57%
Owner-occupied
17 2 15 4 11 65%
CRE
Completed
71 12 59 5 54 76%
income property
Commercial
38 9 29 8 22 57%
development
Residential
177 35 142 19 122 69%
construction
Consistent
Total
$352 $71 $281 $44 $237 67% with
Commercial 9/30/08
(1) Outstanding balance at default

(2) Typically charge-down at nonaccrual to approximately 80% of most recent appraised value
(3) Additional specific reserves are established as necessary based on estimated disposal costs, estimated holding period and current market
and economic conditions; recognized as charge-offs when realized. However, these amounts do not include the qualitative components within
the overall allowance for credit loans.
Indirect – Sales Finance

Total, $636 million or 6% of loans In 5/08, ceased production in

By Auto Make Florida
Other Toyota
Effective 1/09, offered only
29% 29% through full relationship
dealerships in NC and SC
Dodge
Honda
7%
10%
Ford Summary Statistics
7% Chevrolet
Kia 9%
9% NC/SC FL Total
12/08 Balance $255 $381 $636
30-day Past Dues, By Auto Make (Top 10) 12/07 Balance $235 $464 $699
O/S$ 30-day %
Toyota $183 1.99%
Orig FICO 729 716 722
Honda 62 2.09%
Jan 09 FICO 710 686 695
Chevrolet 60 2.94%
Kia 56 1.77%
New % 61% 70% 66%
Ford 47 2.10%
Used % 39% 30% 34%
Dodge 42 2.78%
Nissan 25 2.20%
Jeep 19 0.98%
Domestic % 52% 34% 41%
Chrysler 18 2.35% Foreign % 48% 66% 59%

Hyundai 18 2.55%
Top 10 $530 2.16%
Indirect – Sales Finance

Total, $636 million or 6% of loans In 5/08, ceased production in

By Auto Make Florida
Other Toyota
Effective 1/09, offered only
29% 29% through full relationship
dealerships in NC and SC
Dodge
Honda
7%
10%
Ford Summary Statistics
7% Chevrolet
Kia 9%
9% NC/SC FL Total
12/08 Balance $255 $381 $636
30-day Past Dues, By Auto Make (Top 10) 12/07 Balance $235 $464 $699
O/S$ 30-day %
Toyota $183 1.99%
Orig FICO 729 716 722
Honda 62 2.09%
Jan 09 FICO 710 686 695
Chevrolet 60 2.94%
Kia 56 1.77%
New % 61% 70% 66%
Ford 47 2.10%
Used % 39% 30% 34%
Dodge 42 2.78%
Nissan 25 2.20%
Jeep 19 0.98%
Domestic % 52% 34% 41%
Chrysler 18 2.35% Foreign % 48% 66% 59%

Hyundai 18 2.55%
Top 10 $530 2.16%
Home Equity Lines/Loans

Total, $813 million or 8% of loans Originated by TSFG sales force

By Geography in-market; no broker loans
Other, $41
Strong FICO scores
5%
Conservative LTV position and
NC, $135
17% usage amounts
SC, $354
43% Not pushed as a growth product
FL, $283
35%
Summary Statistics
Lines Loans Total

By Vintage Balance $ $627 $185 $812
2008, $112
14% Orig FICO 730 711 727
2004 or before Jan 09 FICO 724 701 718
2007, $155 $294, 36%
19%
1stLien % 33% 81% 44%
2ndLien % 67% 19% 56%
2006, $131 Orig WAvg

16% 2005, $121 70% 66% 69%
LTV %
15%
WAvg Util % 70% NA NA
Home Equity Portfolio = HE Line and HE Loan portfolios
Geography based on customer address
Home Equity Lines/Loans

Total, $813 million or 8% of loans Originated by TSFG sales force

By Geography in-market; no broker loans
Other, $41
Strong FICO scores
5%
Conservative LTV position and
NC, $135
17% usage amounts
SC, $354
43% Not pushed as a growth product
FL, $283
35%
Summary Statistics
Lines Loans Total

By Vintage Balance $ $627 $185 $812
2008, $112
14% Orig FICO 730 711 727
2004 or before Jan 09 FICO 724 701 718
2007, $155 $294, 36%
19%
1stLien % 33% 81% 44%
2ndLien % 67% 19% 56%
2006, $131 Orig WAvg

16% 2005, $121 70% 66% 69%
LTV %
15%
WAvg Util % 70% NA NA
Home Equity Portfolio = HE Line and HE Loan portfolios
Geography based on customer address
Mortgage Banking Portfolio

4Q08 3Q08 2Q08 1Q08 Remains a small portion of

SIVA* Alt-A: entire portfolio
$580 million
Balance $290.7 $282.3 $267.9 $251.8
6% of total loans HFI
30-89 DPD 7.90% 1.89% 0.90% 6.22%
90+ DPD 3.41% 2.21% 0.69% 1.87% NAL increase of $23 million
NAL % 5.59% 2.94% 3.04% 1.56% from Q3 to Q4
NAL $ $16.3 $8.3 $8.1 $3.9
Increases from higher risk
Lot Loans:
portions of the portfolio
Balance $225.5 $249.1 $266.2 $291.4
(Lot Loans and
30-89 DPD 6.34% 3.84% 2.09% 5.34%
Construction Perm)
90+ DPD 1.84% 2.34% 2.00% 1.03%
NAL % 13.20% 6.12% 4.07% 2.89% Reduced balances in Lot

NAL $ $29.9 $15.2 $10.8 $8.4 Loans and Construction
Construction Perm: Perm products by $136
Balance $64.0 $78.8 $95.7 $113.3 million in 2008
30-89 DPD 5.22% 1.70% 5.86% 2.91% Consumer restructured
90+ DPD 0.00% 0.00% 0.00% 0.00% loans of $3.6 million
NAL % 20.02% 15.98% 9.85% 4.11% (included in NPLs) from
NAL $ $12.8 $12.6 $9.4 $4.7 working with borrowers to
do loan modifications
Mortgage Portfolio = Mortgage, Consumer Lot Loans, and Construction Perm products (excludes HE Loan)
* SIVA = Stated Income Verified Assets
Mortgage Banking Portfolio

4Q08 3Q08 2Q08 1Q08 Remains a small portion of

SIVA* Alt-A: entire portfolio
$580 million
Balance $290.7 $282.3 $267.9 $251.8
6% of total loans HFI
30-89 DPD 7.90% 1.89% 0.90% 6.22%
90+ DPD 3.41% 2.21% 0.69% 1.87% NAL increase of $23 million
NAL % 5.59% 2.94% 3.04% 1.56% from Q3 to Q4
NAL $ $16.3 $8.3 $8.1 $3.9
Increases from higher risk
Lot Loans:
portions of the portfolio
Balance $225.5 $249.1 $266.2 $291.4
(Lot Loans and
30-89 DPD 6.34% 3.84% 2.09% 5.34%
Construction Perm)
90+ DPD 1.84% 2.34% 2.00% 1.03%
NAL % 13.20% 6.12% 4.07% 2.89% Reduced balances in Lot

NAL $ $29.9 $15.2 $10.8 $8.4 Loans and Construction
Construction Perm: Perm products by $136
Balance $64.0 $78.8 $95.7 $113.3 million in 2008
30-89 DPD 5.22% 1.70% 5.86% 2.91% Consumer restructured
90+ DPD 0.00% 0.00% 0.00% 0.00% loans of $3.6 million
NAL % 20.02% 15.98% 9.85% 4.11% (included in NPLs) from
NAL $ $12.8 $12.6 $9.4 $4.7 working with borrowers to
do loan modifications
Mortgage Portfolio = Mortgage, Consumer Lot Loans, and Construction Perm products (excludes HE Loan)
* SIVA = Stated Income Verified Assets
Net Interest Margin
Net Interest Margin (FTE)

Decrease 4Q08 vs. 3Q08
Increase in nonaccrual
interest reversals:
-4 bp
Maturing prime-based
swaps: -4 bp
Balance sheet mix:
-3 bp
1Q09 Headwind
Limitations for passing-
through the recent
sharp Federal funds
rate cuts given the low
absolute level of
interest rates on non-
maturity deposits and
impact from credit
Basis Point Change: issues
TSFG -3 -2 +17 -16 -11
Peer -3 -10 +3 -5 +5
Net Interest Margin
Net Interest Margin (FTE)

Decrease 4Q08 vs. 3Q08
Increase in nonaccrual
interest reversals:
-4 bp
Maturing prime-based
swaps: -4 bp
Balance sheet mix:
-3 bp
1Q09 Headwind
Limitations for passing-
through the recent
sharp Federal funds
rate cuts given the low
absolute level of
interest rates on non-
maturity deposits and
impact from credit
Basis Point Change: issues
TSFG -3 -2 +17 -16 -11
Peer -3 -10 +3 -5 +5
Customer Funding
$ in millions
12/31/08 9/30/08 LQ %
$ Change
Balance Balance Change
Customer deposits:
Noninterest-bearing $1,041 $1,023 $18 1.8%
Interest-bearing 1,079 1,091 (12) (1.1)%
Money market 1,834 1,806 28 (1.6)%
Savings accounts 190 150 40 26.7%
Time deposits < $100,000 1,864 1,840 24 1.3%
Time deposits $100,000 or

1,489 1,525 (36) (2.4)%
more
Customer deposits 7,497 7,435 62 0.8%
Customer sweep accounts 493 552 (59) (10.7)%
Total customer funding $7,990 $7,987 $3 -- %
Customer funding reflects total deposits excluding brokered deposits plus customer
sweeps. Customer deposits reflect seasonal increase in public funds.
Customer Funding
$ in millions
12/31/08 9/30/08 LQ %
$ Change
Balance Balance Change
Customer deposits:
Noninterest-bearing $1,041 $1,023 $18 1.8%
Interest-bearing 1,079 1,091 (12) (1.1)%
Money market 1,834 1,806 28 (1.6)%
Savings accounts 190 150 40 26.7%
Time deposits < $100,000 1,864 1,840 24 1.3%
Time deposits $100,000 or

1,489 1,525 (36) (2.4)%
more
Customer deposits 7,497 7,435 62 0.8%
Customer sweep accounts 493 552 (59) (10.7)%
Total customer funding $7,990 $7,987 $3 -- %
Customer funding reflects total deposits excluding brokered deposits plus customer
sweeps. Customer deposits reflect seasonal increase in public funds.
Wholesale Borrowings
By Maturity
Unused Parent Company Liquidity
1 year >1 Secured
Total Strong parent company
or less year capacity
liquidity position
Fed funds
$ 67 $ -- $67 $ -- Parent company cash of
purchased
$210 million at
Fed Reserve and 12/31/08
1,054 -- 1,054 2,670
T,T&L
No debt maturities until
Repurchase 2033
-- 200 200 851
agreements
Expected annual
Commercial paper 13 -- 13 -- dividends of $43 million
(preferred and common)
FHLB advances 30 203 233 864
Cash sufficient to satisfy
all fixed obligations over
Brokered CDs 1,190 719 1,909 -- the next 4 years
Other* -- 274 274 --
Total wholesale $4.7 billion

$2,354 $1,396 $3,750 $4,385
borrowings at 9/30/08
* No bank ($68 million) exposure to capital markets rollover risk for debt obligations
until 2012
Wholesale Borrowings
By Maturity
Unused Parent Company Liquidity
1 year >1 Secured
Total Strong parent company
or less year capacity
liquidity position
Fed funds
$ 67 $ -- $67 $ -- Parent company cash of
purchased
$210 million at
Fed Reserve and 12/31/08
1,054 -- 1,054 2,670
T,T&L
No debt maturities until
Repurchase 2033
-- 200 200 851
agreements
Expected annual
Commercial paper 13 -- 13 -- dividends of $43 million
(preferred and common)
FHLB advances 30 203 233 864
Cash sufficient to satisfy
all fixed obligations over
Brokered CDs 1,190 719 1,909 -- the next 4 years
Other* -- 274 274 --
Total wholesale $4.7 billion

$2,354 $1,396 $3,750 $4,385
borrowings at 9/30/08
* No bank ($68 million) exposure to capital markets rollover risk for debt obligations
until 2012
Capital Position
Capital Purchase Program (U.S. Treasury Investment)
Received $347 million on December 5, 2008
Issued warrant to purchase 10.1 million shares at $5.15 per share
($19.6 million allocated value)
Effective dividend yield of 6.3%
Utilized $260 million for capital injection into Carolina First Bank
Kept $87 at parent company for liquidity
Temporary use of proceeds to enhance liquidity (increase cash reserves
and pay-down wholesale borrowings) pending opportunity to lend
Tangible common equity to tangible assets of 6.05%

Down 56 bp from 12/31/07 while absorbing $344.6 million of credit
losses in 2008
Does not include Mandatorily Convertible Preferred Stock (MCPS) of
$238.7 million, or 179 basis points reflecting conversion
Believe MCPS should be viewed as key component of common equity
since automatically converts on May 1, 2011; conversion is assumed
when looking at common tangible book value per share
Approximately $60 million has already converted to date, including
$48.7 million subsequent to year-end (which includes conversion
involving issuance of 2.5 million common shares as inducement to
convert)
Capital Position
Capital Purchase Program (U.S. Treasury Investment)
Received $347 million on December 5, 2008
Issued warrant to purchase 10.1 million shares at $5.15 per share
($19.6 million allocated value)
Effective dividend yield of 6.3%
Utilized $260 million for capital injection into Carolina First Bank
Kept $87 at parent company for liquidity
Temporary use of proceeds to enhance liquidity (increase cash reserves
and pay-down wholesale borrowings) pending opportunity to lend
Tangible common equity to tangible assets of 6.05%

Down 56 bp from 12/31/07 while absorbing $344.6 million of credit
losses in 2008
Does not include Mandatorily Convertible Preferred Stock (MCPS) of
$238.7 million, or 179 basis points reflecting conversion
Believe MCPS should be viewed as key component of common equity
since automatically converts on May 1, 2011; conversion is assumed
when looking at common tangible book value per share
Approximately $60 million has already converted to date, including
$48.7 million subsequent to year-end (which includes conversion
involving issuance of 2.5 million common shares as inducement to
convert)
Capital Position
$ in millions
Capital in Excess of
Well Well Capitalized
9/30/08 12/31/08 Capitalized Minimum
Actual Actual* Minimum After-tax $
THE SOUTH FINANCIAL GROUP
Tangible common equity to

6.06% 6.05%
tangible assets
Tier 1 risk-based 11.18% 12.86% 6% $808
Total risk-based 12.68% 14.35% 10% $512
Leverage 9.70% 11.22% 5% $839
Assuming conversion of Mandatorily Convertible Preferred:***
Tangible common equity to tangible
assets 7.94% 7.84%
Common tangible book value per

share $9.42 $9.40
CAROLINA FIRST BANK

Tier 1 risk-based 9.82% 10.88% 6% $573
Total risk-based 11.55% 12.59% 10% $304
Leverage 8.54% 9.49% 5% $604
* Estimated
** For illustrative purposes only
*** Assumes full conversion of $239 million of Mandatorily Convertible Preferred at $6.50 per common share fixed conversion ratio (automatically
converts into common stock on May 1, 2011) and excludes CPP Preferred
Capital Position
$ in millions
Capital in Excess of
Well Well Capitalized
9/30/08 12/31/08 Capitalized Minimum
Actual Actual* Minimum After-tax $
THE SOUTH FINANCIAL GROUP
Tangible common equity to

6.06% 6.05%
tangible assets
Tier 1 risk-based 11.18% 12.86% 6% $808
Total risk-based 12.68% 14.35% 10% $512
Leverage 9.70% 11.22% 5% $839
Assuming conversion of Mandatorily Convertible Preferred:***
Tangible common equity to tangible
assets 7.94% 7.84%
Common tangible book value per

share $9.42 $9.40
CAROLINA FIRST BANK

Tier 1 risk-based 9.82% 10.88% 6% $573
Total risk-based 11.55% 12.59% 10% $304
Leverage 8.54% 9.49% 5% $604
* Estimated
** For illustrative purposes only
*** Assumes full conversion of $239 million of Mandatorily Convertible Preferred at $6.50 per common share fixed conversion ratio (automatically
converts into common stock on May 1, 2011) and excludes CPP Preferred
Noninterest Expenses
$ in millions
$ Change
4Q08 vs. 4Q08 vs.
4Q08 3Q08 4Q07
3Q08 4Q07
Salaries and employee benefits $45.9 $46.9 $42.4 $(1.0) $3.5
FAS 91 Salary Deferral (included in Salaries)* (2.0) (2.3) (3.6) 0.3 1.6
Loan and foreclosed asset* 4.6 4.5 1.5 0.1 3.1

FDIC insurance* 3.4 3.0 1.5 0.4 1.9
Occupancy and FF&E 17.4 16.8 15.4 0.6 2.0
Professional fees 4.8 4.6 3.8 0.2 1.0
Other 15.7 13.9 14.8 1.8 0.9
Operating noninterest expenses 91.8 89.7 79.4 2.1 12.4
Goodwill impairment 237.6 -- -- 237.6 237.6
Employment contracts 9.6 4.6 -- 5.0 9.6
Other 2.8 (0.1) 1.3 2.9 1.5
Total noninterest expenses $341.8 $94.2 $80.7 $247.6 $261.1
*Approximately half of the $12.4 million year-over-year increase relates to the current
environment – higher loan and foreclosed asset and FDIC insurance expense and lower
loan origination salary deferrals. For 2009, expect higher FDIC insurance, loan and
foreclosed asset expense, and non-operating charges related to the corporate campus
under construction (evaluation of alternatives underway).
Note: Other includes (gain) loss on early extinguishment of debt ($1.7 million for 4Q08, $(125,000) for 3Q08, and $499,000 for 4Q07), loss on
derivative collateral ($1.1 million for 4Q08), and Visa-related litigation ($881,000 for 4Q07).
Noninterest Expenses
$ in millions
$ Change
4Q08 vs. 4Q08 vs.
4Q08 3Q08 4Q07
3Q08 4Q07
Salaries and employee benefits $45.9 $46.9 $42.4 $(1.0) $3.5
FAS 91 Salary Deferral (included in Salaries)* (2.0) (2.3) (3.6) 0.3 1.6
Loan and foreclosed asset* 4.6 4.5 1.5 0.1 3.1

FDIC insurance* 3.4 3.0 1.5 0.4 1.9
Occupancy and FF&E 17.4 16.8 15.4 0.6 2.0
Professional fees 4.8 4.6 3.8 0.2 1.0
Other 15.7 13.9 14.8 1.8 0.9
Operating noninterest expenses 91.8 89.7 79.4 2.1 12.4
Goodwill impairment 237.6 -- -- 237.6 237.6
Employment contracts 9.6 4.6 -- 5.0 9.6
Other 2.8 (0.1) 1.3 2.9 1.5
Total noninterest expenses $341.8 $94.2 $80.7 $247.6 $261.1
*Approximately half of the $12.4 million year-over-year increase relates to the current
environment – higher loan and foreclosed asset and FDIC insurance expense and lower
loan origination salary deferrals. For 2009, expect higher FDIC insurance, loan and
foreclosed asset expense, and non-operating charges related to the corporate campus
under construction (evaluation of alternatives underway).
Note: Other includes (gain) loss on early extinguishment of debt ($1.7 million for 4Q08, $(125,000) for 3Q08, and $499,000 for 4Q07), loss on
derivative collateral ($1.1 million for 4Q08), and Visa-related litigation ($881,000 for 4Q07).
Noninterest Income
$ in millions
$ Change
4Q08 vs. 4Q08 vs.
4Q08 3Q08 4Q07
3Q08 4Q07
Customer fee income* $13.2 $14.8 $14.8 $(1.6) $(1.6)
Wealth management income* 6.3 7.2 7.5 (0.9) (1.2)

Mortgage banking income 1.1 0.9 1.3 0.2 (0.2)
Merchant processing income, net 0.7 0.9 0.8 (0.2) (0.1)
Bank-owned life insurance** 3.9 2.9 3.1 1.0 0.8

Gain/(loss) on certain derivative
(0.3) (0.2) -- (0.1) (0.3)
activities
Other 3.2 2.9 2.8 0.3 0.4
Operating noninterest income 28.1 29.4 30.3 (1.3) (2.2)
Non-operating items:
Gain/(loss) on securities 1.6 (0.7) (1.3) 2.3 2.9
Total noninterest income $29.7 $28.7 $29.0 $1.0 $0.7
*Together, approximately 70% of operating noninterest income. Reflect impacts from

economic downturn, such as fewer customer transactions and lower asset valuations.
**4Q08 includes $1.3 million for death proceeds partially offset by $645,000 in related
compensation expense (included in operating noninterest expenses).
Noninterest Income
$ in millions
$ Change
4Q08 vs. 4Q08 vs.
4Q08 3Q08 4Q07
3Q08 4Q07
Customer fee income* $13.2 $14.8 $14.8 $(1.6) $(1.6)
Wealth management income* 6.3 7.2 7.5 (0.9) (1.2)

Mortgage banking income 1.1 0.9 1.3 0.2 (0.2)
Merchant processing income, net 0.7 0.9 0.8 (0.2) (0.1)
Bank-owned life insurance** 3.9 2.9 3.1 1.0 0.8

Gain/(loss) on certain derivative
(0.3) (0.2) -- (0.1) (0.3)
activities
Other 3.2 2.9 2.8 0.3 0.4
Operating noninterest income 28.1 29.4 30.3 (1.3) (2.2)
Non-operating items:
Gain/(loss) on securities 1.6 (0.7) (1.3) 2.3 2.9
Total noninterest income $29.7 $28.7 $29.0 $1.0 $0.7
*Together, approximately 70% of operating noninterest income. Reflect impacts from

economic downturn, such as fewer customer transactions and lower asset valuations.
**4Q08 includes $1.3 million for death proceeds partially offset by $645,000 in related
compensation expense (included in operating noninterest expenses).
Expectations for 2009

Operating environment and results will remain challenging for all of 2009
Credit losses for first half of 2009 similar to last half of 2008; provisioning
depends on continuing economic developments
Continued headwinds from loan collection costs and FDIC insurance
Potential one-time charges arising from ultimate corporate campus decision

and continuing evaluation of small level of other investments for
impairment
Continue to evaluate the realizability of the net deferred tax asset
throughout 2009 for both book and regulatory purposes
Near-term pressure on margin in first half of year, followed by expansion of

margin as pricing initiatives on both the loan and deposit side begin to show
results
Positive impact from Project NOW and other expense initiatives
Potential for FDIC deposit transactions if market overlap promotes

efficiency and product set improves customer funding measures
Focus on cross sell; customer satisfaction; other measures that support our
strategic positioning
Expectations for 2009

Operating environment and results will remain challenging for all of 2009
Credit losses for first half of 2009 similar to last half of 2008; provisioning
depends on continuing economic developments
Continued headwinds from loan collection costs and FDIC insurance
Potential one-time charges arising from ultimate corporate campus decision

and continuing evaluation of small level of other investments for
impairment
Continue to evaluate the realizability of the net deferred tax asset
throughout 2009 for both book and regulatory purposes
Near-term pressure on margin in first half of year, followed by expansion of

margin as pricing initiatives on both the loan and deposit side begin to show
results
Positive impact from Project NOW and other expense initiatives
Potential for FDIC deposit transactions if market overlap promotes

efficiency and product set improves customer funding measures
Focus on cross sell; customer satisfaction; other measures that support our
strategic positioning
Positioned to Emerge Stronger

Mission to be best relationship bank in each of our markets
Leverage strategic footprint and its long-term growth

potential
Deep and experienced management team
Risk management talent and processes
Maintain strong balance sheet throughout credit environment

Capital position
Liquidity management
Higher loan loss reserves
Relationship lending with focus on deposit balances
Positioned to Emerge Stronger

Mission to be best relationship bank in each of our markets
Leverage strategic footprint and its long-term growth

potential
Deep and experienced management team
Risk management talent and processes
Maintain strong balance sheet throughout credit environment

Capital position
Liquidity management
Higher loan loss reserves
Relationship lending with focus on deposit balances
Appendix – List of Operating Peers
Associated (ASBC)
BOK Financial (BOKF)
Colonial (CNB)
Commerce (CBSH)
Cullen/Frost (CFR)
Fulton (FULT)
Synovus (SNV)
Trustmark (TRMK)
United Community (UCBI)
Valley National (VLY)
Appendix – List of Operating Peers
Associated (ASBC)
BOK Financial (BOKF)
Colonial (CNB)
Commerce (CBSH)
Cullen/Frost (CFR)
Fulton (FULT)
Synovus (SNV)
Trustmark (TRMK)
United Community (UCBI)
Valley National (VLY)
TSFG’s Footprint: Household Growth
TSFG Weighted Average* 10.2%
U.S. Median 6.5%
*Deposit weighted by county based on

TSFG deposits in each market
NOTE: The regions highlighted are complete MSAs except for Greater South Charlotte, which is York County, SC (Rock Hill), Hendersonville, NC, which is
Henderson County, and West Palm Beach, which is Palm Beach County.
TSFG’s Footprint: Household Growth
TSFG Weighted Average* 10.2%
U.S. Median 6.5%
*Deposit weighted by county based on

TSFG deposits in each market
NOTE: The regions highlighted are complete MSAs except for Greater South Charlotte, which is York County, SC (Rock Hill), Hendersonville, NC, which is
Henderson County, and West Palm Beach, which is Palm Beach County.
Current as of 2/19/09
Current as of 2/19/09

SOUTH FINANCIAL GROUP INC 8-K (Events or Changes Between Quarterly Reports) 2009-02-23

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SOUTH FINANCIAL GROUP INC 8-K (Events or Changes Between Quarterly Reports) 2009-02-23

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CURRENT REPORT PURSUANT

Date of Report (Date of earliest event reported): February 23, 2009

The South Financial Group, Inc.

South Carolina 0-15083 57-0824914

102 South Main Street, Greenville, South Carolina 29601

Registrant’s telephone number, including area code: (864) 255-7900

Item 7.01 Regulation FD Disclosure

Item 9.01 Exhibits

99.1 Investor Presentation, First Quarter 2009

THE SOUTH FINANCIAL GROUP, INC.

February 23, 2009 By: /s/ William P. Crawford, Jr.

Total assets $13.6

Loans held for investment $10.2

Customer funding* $8.0

Tangible shareholders’ equity $1.4

Tangible equity to tangible

Total assets $13.6

Loans held for investment $10.2

Customer funding* $8.0

Tangible shareholders’ equity $1.4

Tangible equity to tangible

Goal: Relationship Bank of Choice

Building core banking relationships

Target small businesses, middle market, and retail customers

Located in attractive Southeastern markets with long-term growth

Led by local Market Presidents in 12 markets

Goal: Relationship Bank of Choice

Building core banking relationships

Target small businesses, middle market, and retail customers

Located in attractive Southeastern markets with long-term growth

Led by local Market Presidents in 12 markets

Footprint: Long-term Growth Potential

Growth estimates deposit weighted by county as of 6/30/08

SOURCE: SNL Financial

Footprint: Long-term Growth Potential

Growth estimates deposit weighted by county as of 6/30/08

SOURCE: SNL Financial

Footprint: Geographic Diversification

As of December 31, 2008

Footprint: Geographic Diversification

As of December 31, 2008

Proactive and Realistic Approach to Cycle

Strengthened overall Liquidity Position

New Risk Management team

Proactive and Realistic Approach to Cycle

Strengthened overall Liquidity Position

New Risk Management team

Proactive and Realistic Approach (continued)

$347 million of U.S. Treasury CPP Capital in December 2008

Lynn Harton named President & CEO in February 2009

Proactive and Realistic Approach (continued)

$347 million of U.S. Treasury CPP Capital in December 2008

Lynn Harton named President & CEO in February 2009

New Leadership - Initial Actions

Intense focus on communication to clarify ONE Bank strategy

Quick moves to begin streamlining cost structure

Initiated Phase 1 of Project NOW

New Leadership - Initial Actions

Intense focus on communication to clarify ONE Bank strategy

Quick moves to begin streamlining cost structure

Initiated Phase 1 of Project NOW

Executive Management Team

H. Lynn Harton President and CEO 47 2007 BB&T/Union Planters/Regions