EX-99 5 supplemental.htm SUPPLEMENTAL SCHEDULES

Quarterly Financial Data Supplement (Unaudited)
Fourth Quarter 2007

	Page


Financial Summary		1

Consolidated Statements of Income		2

Details for Noninterest Income and Noninterest Expenses		3

Consolidated Balance Sheets		4

Investment Securities Portfolio Analysis		5

Loan Portfolio Composition Based on Loan Purpose and Loan Growth		6

Summary of Credit Quality and Allowance for Credit Losses		7

Commercial Real Estate Loans		8

Summary of Loans in Penland Development		9

Types of Customer Funding and Customer Funding Growth		10

Summary of Wholesale Borrowings, Capital and Capital Ratios		11

Comparative Average Balance Sheets - Yields and Costs		12-13

GAAP to Non-GAAP Reconciliation: Earnings, ROA and ROE		14-16

GAAP to Non-GAAP Reconciliation: Noninterest income as a % of total revenue and efficiency ratios		17-19

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
FOURTH QUARTER 2007 FINANCIAL SUMMARY

Changes vs. prior quarter, unless indicated otherwise:

Quarterly EPS

•	Net income of $9.0 million, or $0.12 per diluted share

•	Operating earnings of $10.9 million, or $0.15 per diluted share

•	Fourth quarter 2007 provision for credit losses increased to $31.9 million (up from $10.5 million for the prior quarter), primarily due to weakening credit expectations and a $7.9 million additional provision for the previously-disclosed Penland Development loans

•	Average diluted shares of 72.9 million, down 1.0% versus prior quarter; down 3.7% versus prior year

Revenue

•	Total revenue, defined as net interest income plus noninterest income, of $123.7 million

	— Non-operating items: $1.3 million net loss on securities for other than temporary impairment

•	Operating revenues of $126.5 million, down $1.5 million

•	Tax-equivalent net interest income of $96.5 million, down $1.9 million

	— Net interest margin of 3.09%, down 3 basis points from 3.12% for the prior quarter

	— Average earning assets of $12.4 billion, down 3.9% linked-quarter annualized

•	Operating noninterest income of $30.0 million, up $399,000

	— Increase of $557,000 or 1.9% from prior year

Average Balance Sheet Growth

•	Average loans, up 4.8% linked-quarter annualized

•	Average securities, down $242.0 million since prior quarter; down $673.5 million since 4Q06

•	Average customer funding, defined as total deposits less brokered deposits plus customer sweeps, down 6.0% linked-quarter annualized

•	Average wholesale borrowings, including brokered deposits and excluding customer sweeps, up 0.4% linked-quarter annualized

Noninterest Expenses and Operating Efficiency

•	Noninterest expenses of $80.5 million

	— Non-operating items: $881,000 reserve for Visa-related litigation losses and $499,000 loss on early extinguishment of debt

•	Operating noninterest expenses of $79.1 million, up $1.7 million

	— Decrease of $5.1 million or 6.0% from prior year

•	Cash operating efficiency of 61.1%, an increase from 59.0% for the prior quarter

Credit Quality

•	Provision for credit losses of $31.9 million, up $21.4 million from prior quarter; $23.1 million from prior year

•	Net loan charge-offs of $23.7 million, or 0.92% annualized as a % of average loans held for investment

	— Includes $9.2 million related to the Penland Development loans

	— Excluding the Penland Development loans, net loan charge-offs of 0.57%

•	Nonperforming assets of $89.9 million or 0.88% of loans held for investment and foreclosed property

	— Includes $2.0 million related to the Penland Development loans

•	Allowance for credit losses of $128.7 million or 1.26% of loans held for investment

Capital

•	Tangible equity to tangible asset ratio of 6.61%, up from 6.47% at September 30, 2007

•	Tangible equity per share of $12.04, up from $11.90 at September 30, 2007

•	Repurchased 600,000 shares 4Q07 and 3.6 million shares for full-year 2007

•	Called approximately $25 million of trust preferred securities; approximately $125 million for full-year 2007

•	After-tax unrealized loss on available for sale securities decreased $8.0 million from prior quarter

•	Tier 1 capital ratio of 9.52%, down from 9.89% at September 30, 2007

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

	Three Months Ended

	12/31/07		9/30/07		6/30/07		3/31/07		12/31/06

Interest Income
Interest and fees on loans	$	190,846	$	195,393	$	191,961	$	186,628	$	187,385
Interest and dividends on securities:
Taxable		22,431		25,390		26,879		28,825		29,876
Exempt from federal income taxes		2,809		2,856		2,888		3,048		3,125

Total interest and dividends on securities		25,240		28,246		29,767		31,873		33,001
Interest on short-term investments		64		100		97		141		144

Total interest income		216,150		223,739		221,825		218,642		220,530

Interest Expense
Interest on deposits		93,253		94,497		92,066		88,479		82,716
Interest on borrowed funds		27,949		32,468		33,238		35,625		41,160

Total interest expense		121,202		126,965		125,304		124,104		123,876

Net Interest Income		94,948		96,774		96,521		94,538		96,654
Provision for Credit Losses		31,926		10,504		17,125		9,013		8,838

Net interest income after provision for credit losses		63,022		86,270		79,396		85,525		87,816
Noninterest Income		28,741		29,917		27,683		26,970		29,233
Noninterest Expenses		80,481		78,739		80,151		81,477		89,998

Income before income taxes		11,282		37,448		26,928		31,018		27,051
Income tax expense		2,293		11,609		8,998		10,500		3,500

Net Income	$	8,989	$	25,839	$	17,930	$	20,518	$	23,551


Average common shares outstanding, basic		72,571,612		73,146,211		74,050,115		74,736,832		75,161,032
Average common shares outstanding, diluted		72,875,062		73,605,752		74,397,091		75,244,968		75,701,120
Net income per common share, basic	$	0.12	$	0.35	$	0.24	$	0.27	$	0.31
Net income per common share, diluted		0.12		0.35		0.24		0.27		0.31
Cash dividends declared per common share		0.19		0.18		0.18		0.18		0.18

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

	Three Months Ended

	12/31/07			9/30/07		6/30/07			3/31/07			12/31/06

Noninterest Income
Service charges on deposit accounts	$	11,470		$	11,213	$	11,223		$	10,613		$	10,704
Debit card income, net ⁽¹⁾		1,938			1,838		1,839			1,567			1,451
Customer service fee income		1,422			1,533		1,402			1,291			1,267

Total customer fee income		14,830			14,584		14,464			13,471			13,422

Retail investment services, net ⁽²⁾		2,103			2,064		2,021			1,714			1,394
Insurance income		2,906			2,839		2,987			3,297			3,411
Trust and investment management income		1,625			1,642		1,734			1,594			1,506
Benefits administration fees		881			889		749			742			722

Total wealth management income		7,515			7,434		7,491			7,347			7,033

Mortgage banking income		1,273			834		1,877			2,069			2,224
Bank-owned life insurance		3,065			2,974		4,454			2,851			2,932
Merchant processing income, net		829			928		771			735			527
Gain (loss) on certain derivative activities		5			198		(1,497	)		97			596
Other		2,512			2,678		2,360			1,785			2,738

Operating noninterest income (noninterest income, excluding non-operating items)		30,029			29,630		29,920			28,355			29,472

Gain (loss) on securities		(1,288	)		287		(2,237	)		(1,385	)		(239	)

Non-operating noninterest income (loss)		(1,288	)		287		(2,237	)		(1,385	)		(239	)

Total noninterest income	$	28,741		$	29,917	$	27,683		$	26,970		$	29,233

Noninterest Expenses
Salaries and wages	$	33,220		$	34,535	$	34,258		$	35,072		$	35,188
Employee benefits		9,232			8,862		9,245			9,759			8,927
Occupancy		8,783			8,723		8,545			8,608			8,856
Furniture and equipment		6,590			6,543		6,486			6,462			6,579
Professional services		3,767			4,278		4,914			4,103			5,637
Advertising and business development		2,054			1,443		1,973			1,931			2,937
Telecommunications		1,453			1,404		1,418			1,393			1,384
Amortization of intangibles		1,853			1,907		2,136			2,001			2,156
Other		12,149			9,745		10,399			10,388			12,523

Operating noninterest expenses (noninterest expenses, excluding non-operating items)		79,101			77,440		79,374			79,717			84,187

Employment contract buyouts and severance		—			—		546			1,760			4,990
Loss on early extinguishment of debt		499			1,299		231			—			821
Visa-related litigation		881			—		—			—			—

Non-operating noninterest expenses		1,380			1,299		777			1,760			5,811

Total noninterest expenses	$	80,481		$	78,739	$	80,151		$	81,477		$	89,998


⁽¹⁾	In fourth quarter 2007, TSFG began presenting its debit card income net of related expenses. Debit card expense totaled (in thousands) $582 for fourth quarter 2007, $607 for third quarter 2007, $564 for second quarter 2007, $610 for first quarter 2007, and $747 for fourth quarter 2006. Amounts presented for prior periods have been reclassified to conform to current presentation.

⁽²⁾	In fourth quarter 2007, TSFG began presenting its retail investment services income net of certain revenue sharing arrangements with a third party. Such amounts for these arrangements totaled (in thousands) $242 for fourth quarter 2007, $249 for third quarter 2007, $261 for second quarter 2007, $244 for first quarter 2007, and $277 for fourth quarter 2006. Amounts presented for prior periods have been reclassified to conform to current presentation.

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

	12/31/07			9/30/07			6/30/07			3/31/07			12/31/06

Assets
Cash and due from banks	$	290,974		$	221,529		$	267,005		$	257,884		$	326,567
Interest-bearing bank balances		5,551			520			263			7,012			31,264
Federal funds sold and securities purchased to resell		—			—			—			50,000			—
Securities
Available for sale		1,986,212			2,323,241			2,433,341			2,546,047			2,743,456
Held to maturity		39,691			41,174			41,892			46,217			52,308

Total securities		2,025,903			2,364,415			2,475,233			2,592,264			2,795,764

Loans held for sale		17,867			19,572			35,718			33,519			28,556
Loans held for investment		10,213,420			10,173,237			10,029,228			9,898,134			9,701,867
Less: Allowance for loan losses		(126,427	)		(118,861	)		(125,545	)		(113,736	)		(111,663	)

Net loans held for investment		10,086,993			10,054,376			9,903,683			9,784,398			9,590,204

Premises and equipment, net		233,852			226,784			224,951			223,738			219,163
Accrued interest receivable		70,464			73,383			75,851			72,801			77,523
Goodwill		651,003			650,637			650,544			650,536			650,492
Other intangible assets, net		27,179			29,032			30,939			33,075			35,076
Other assets		467,798			459,973			475,488			452,920			455,907

	$	13,877,584		$	14,100,221		$	14,139,675		$	14,158,147		$	14,210,516


Liabilities and Shareholders’ Equity
Liabilities
Deposits
Noninterest-bearing	$	1,127,657		$	1,164,312		$	1,244,834		$	1,286,800		$	1,280,908
Interest-bearing		8,660,911			8,337,357			8,840,972			8,664,408			8,235,832

Total deposits		9,788,568			9,501,669			10,085,806			9,951,208			9,516,740
Short-term borrowings		1,637,550			2,070,581			1,432,650			1,607,533			1,768,719
Long-term debt		698,340			732,203			857,248			809,290			1,130,475
Accrued interest payable		69,288			73,418			77,751			77,380			68,940
Other liabilities		133,530			174,098			168,033			151,126			163,610

Total liabilities		12,327,276			12,551,969			12,621,488			12,596,537			12,648,484

Shareholders’ equity
Preferred stock		—			—			—			—			—
Common stock		72,455			72,971			73,699			74,673			75,341
Surplus		1,107,601			1,116,361			1,129,499			1,150,288			1,167,685
Retained earnings		386,061			391,019			378,399			373,788			367,261
Guarantee of employee stock ownership plan debt		—			—			(39	)		(95	)		(151	)
Accumulated other comprehensive loss, net of income tax		(15,809	)		(32,099	)		(63,371	)		(37,044	)		(48,104	)

Total shareholders’ equity		1,550,308			1,548,252			1,518,187			1,561,610			1,562,032

	$	13,877,584		$	14,100,221		$	14,139,675		$	14,158,147		$	14,210,516

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

	12/31/07			9/30/07			6/30/07			3/31/07			12/31/06

Investment Securities Portfolio
Available for sale (at fair value):
U.S. Treasury	$	27,592		$	168,614		$	167,195		$	167,295		$	166,719
U.S. Government agencies		503,571			659,681			650,581			657,708			653,034
Agency mortgage-backed securities		1,088,427			1,119,547			1,158,498			1,246,384			1,400,288
State and municipal		302,586			303,388			308,070			315,372			341,488
Other investments ⁽¹⁾		64,036			72,011			148,997			159,288			181,927

Total available for sale securities		1,986,212			2,323,241			2,433,341			2,546,047			2,743,456

Held to maturity (at amortized cost)		39,691			41,174			41,892			46,217			52,308

Total securities	$	2,025,903		$	2,364,415		$	2,475,233		$	2,592,264		$	2,795,764

Total securities as a percentage of total assets		14.6	%		16.8	%		17.5	%		18.3	%		19.7	%

	December 31, 2007

	Amortized Cost		Percentage of Total			Duration		Book Yield

Debt Securities
U.S. Treasury	$	27,082		1.4	%		4.3		3.96	%
U.S. Government agencies		502,659		25.3			0.6		5.22
Agency mortgage-backed securities:
Collateralized mortgage obligations		834,467		41.9			5.3		4.56
Adjustable rate mortgages		195,994		9.8			2.1		4.99
Pass-through		107,889		5.4			3.1		4.79
State and municipal		302,775		15.2			2.9		4.86
Corporate bonds		20,775		1.0			3.9		5.74

Total available for sale debt securities	$	1,991,641		100.0	%		3.3		4.83	%


Fixed interest rate:
Agency mortgage-backed securities	$	940,828		47.2	%		5.1		4.58	%
Other		828,343		41.6			1.7		5.01
Variable interest rate:
Agency mortgage-backed securities		197,523		9.9			2.0		4.99
Other		24,947		1.3			0.2		6.76

Total available for sale debt securities	$	1,991,641		100.0	%		3.3		4.83	%

Projected Cash Flows for Debt Securities

	Roll-Off Yield		Projected Annual Cash Flows by Interest Rate Scenario

Year			Current		Up 1.00%		Down 1.00%

2008	4.49	%	$	381,016	$	157,403	$	1,101,968
2009	4.71			287,087		146,595		290,084

Projected Interest Rate Shock for Debt Securities

Interest Rate Scenario

Up 2.00%	(8.2	)%	5.1
Up 1.00%	(3.8	)	4.5
Flat	—		3.3
Down 1.00%	2.8		2.3
Down 2.00%	4.4		1.0


The estimated decrease in fair value for a five year U.S. Treasury Note when interest rates increase 100 basis points is 4.44%.

⁽¹⁾	Other investments in available for sale securities includes corporate bonds, FHLB stock, community bank stocks, and other equity securities. Also, excludes certain other investments recorded in other assets totaling $16.4 million.

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

	12/31/07			9/30/07			6/30/07			3/31/07			12/31/06

Commercial Loans
Commercial and industrial	$	2,759,492		$	2,693,973		$	2,569,628		$	2,596,705		$	2,491,210
Owner - occupied real estate		1,070,376			1,042,131			961,806			883,738			830,179
Commercial real estate		4,158,384			4,178,653			4,258,837			4,209,149			4,171,631

		7,988,252			7,914,757			7,790,271			7,689,592			7,493,020


Consumer Loans
Indirect - sales finance		699,014			707,819			684,053			666,801			660,401
Consumer lot loans		311,386			334,971			350,539			353,694			357,325
Direct retail		94,228			97,289			96,768			97,786			98,181
Home equity		548,928			532,640			530,620			514,963			512,881

		1,653,556			1,672,719			1,661,980			1,633,244			1,628,788


Mortgage Loans		571,612			585,761			576,977			575,298			580,059


Total loans held for investment	$	10,213,420		$	10,173,237		$	10,029,228		$	9,898,134		$	9,701,867


Percentage of Loans Held for Investment
Commercial and industrial		27.0	%		26.5	%		25.6	%		26.2	%		25.7	%
Owner - occupied real estate		10.5			10.2			9.6			8.9			8.6
Commercial real estate		40.7			41.1			42.5			42.5			43.0
Consumer		16.2			16.4			16.6			16.5			16.7
Mortgage		5.6			5.8			5.7			5.9			6.0

Total		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%



	For The Period Ended
	12/31/07			9/30/07			6/30/07			3/31/07			12/31/06

Growth in Loans Held for Investment ⁽¹⁾
Growth vs. prior quarter, annualized		1.6	%		5.7	%		5.3	%		8.2	%		7.8	%
Growth year-to-date, annualized		5.3			6.5			6.8			8.2			2.8

Growth in Loans Held for Investment, Excluding Changes from Acquisitions and Dispositions ⁽¹⁾
Organic growth vs. prior quarter, annualized		1.6	%		5.7	%		5.3	%		8.2	%		7.8	%
Organic growth year-to-date, annualized		5.3			6.5			6.8			8.2			6.6


⁽¹⁾	At September 30, 2006 and December 31, 2005, loans held for investment totaled $9,513,833 and $9,439,935, respectively. Non organic change of $410,628 in the first nine months of 2006 related to the sale of indirect auto loans and the origination and transfer of indirect auto loans originally held for sale to held to investment.

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

	12/31/07			9/30/07			6/30/07			3/31/07			12/31/06

Credit Quality
Loans held for investment	$	10,213,420		$	10,173,237		$	10,029,228		$	9,898,134		$	9,701,867
Allowance for loan losses		126,427			118,861			125,545			113,736			111,663
Allowance for credit losses		128,695			120,424			126,721			114,822			112,688
Nonperforming loans ⁽¹⁾		81,631			53,257			41,527			43,222			37,168
Foreclosed property (other real estate owned and personal property repossessions)		8,276			5,658			4,028			3,572			4,341

Nonperforming assets	$	89,907		$	58,915		$	45,555		$	46,794		$	41,509

Nonperforming loans as a % of loans held for investment		0.80	%		0.52	%		0.41	%		0.44	%		0.38	%
Nonperforming assets as a % of loans held for investment and foreclosed property		0.88			0.58			0.45			0.47			0.43
Allowance for loan losses as a % of loans held for investment		1.24			1.17			1.25			1.15			1.15
Allowance for credit losses as a % of loans held for investment		1.26			1.18			1.26			1.16			1.16
Allowance for loan losses to nonperforming loans		1.55	x		2.23	x		3.02	x		2.63	x		3.00	x
Impaired loans ⁽¹⁾	$	68,102		$	38,060		$	33,596		$	36,403		$	28,733
Specific allowance for impaired loans		11,340			11,010			9,414			7,716			6,686
Loans past due 90 days or more (mortgage and consumer with interest accruing)		5,349			2,629			2,503			193			3,129
Net loan charge-offs		23,655			16,801			5,226			6,879			6,499
Average loans held for investment		10,164,807			10,042,419			9,947,636			9,783,328			9,589,732
Net loan charge-offs as a % of average loans held for investment (annualized)		0.92	%		0.66	%		0.21	%		0.29	%		0.27	%

Allowance for Loan Losses
Balance at beginning of period	$	118,861		$	125,545		$	113,736		$	111,663		$	109,401
Provision for loan losses		31,221			10,117			17,035			8,952			8,761
Loans charged-off		(25,249	)		(17,926	)		(7,622	)		(8,611	)		(9,197	)
Recoveries of loans previously charged-off		1,594			1,125			2,396			1,732			2,698

Balance at end of period	$	126,427		$	118,861		$	125,545		$	113,736		$	111,663


Reserve for Unfunded Lending Commitments
Balance at beginning of period	$	1,563		$	1,176		$	1,086		$	1,025		$	948
Provision for unfunded lending commitments		705			387			90			61			77

Balance at end of period	$	2,268		$	1,563		$	1,176		$	1,086		$	1,025


Allowance for Credit Losses
Balance at beginning of period	$	120,424		$	126,721		$	114,822		$	112,688		$	110,349
Provision for credit losses		31,926			10,504			17,125			9,013			8,838
Loans charged-off		(25,249	)		(17,926	)		(7,622	)		(8,611	)		(9,197	)
Recoveries of loans previously charged-off		1,594			1,125			2,396			1,732			2,698

Balance at end of period	$	128,695		$	120,424		$	126,721		$	114,822		$	112,688

⁽¹⁾ At December 31, 2007, September 30, 2007, June 30, 2007, March 31, 2007, and December 31, 2006, these credit quality indicators (nonperforming loans and impaired loans) included $1.7 million, $1.9 million, $1.9 million, $1.9 million, and $500,000, respectively, in restructured loans.

THE SOUTH FINANCIAL GROUP, INC. AND SUBSIDIARIES

COMMERCIAL REAL ESTATE LOANS

(unaudited)

	12/31/07 CRE Loans by Geography (dollars in millions)

	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	$	437		$	232		$	460		$	177		$	320		$	168		$	206		$	2,000			20	%
Residential A&D		106			83			169			80			134			5			90			667			6
Commercial A&D		81			44			66			67			74			76			118			526			5
Commercial construction		145			88			35			60			30			21			93			472			5
Residential construction		36			44			78			26			37			13			28			262			3
Undeveloped land		30			38			61			36			34			1			31			231			2

Total CRE Loans	$	835		$	529		$	869		$	446		$	629		$	284		$	566		$	4,158			41	%


% of Total Loans HFI		8	%		5	%		9	%		4	%		6	%		3	%		6	%		41	%

	12/31/07 CRE Nonaccrual Loans by Geography (dollars in millions)

	SC, Excl Coastal			Coastal SC			Western NC			Central FL			North FL			South FL			Tampa Bay			Total CRE NAL			% of NAL⁽¹⁾

CRE Nonaccrual Loans by Product Type:
Completed income property	$	2.6		$	1.1		$	3.0		$	2.0		$	—		$	—		$	0.1		$	8.8			11	%
Residential A&D		1.0			3.3			3.2			—			0.1			0.5			8.7			16.8			21
Commercial A&D		—			—			1.2			—			—			—			3.0			4.2			5
Commercial construction		—			—			—			—			—			—			—			—			—
Residential construction		0.4			—			1.0			—			—			—			—			1.4			2
Undeveloped land		—			—			0.6			—			—			0.1			4.7			5.4			7

Total CRE Nonaccrual Loans	$	4.0		$	4.4		$	9.0		$	2.0		$	0.1		$	0.6		$	16.5		$	36.6			46	%


CRE Nonaccrual Loans as % of Total Nonaccrual Loans ⁽¹⁾		5	%		5	%		11	%		3	%		0	%		1	%		21	%		46	%

⁽¹⁾ Calculated as a percent of nonaccrual loans, which totaled $80.2 million at Decenber 31, 2007.

THE SOUTH FINANCIAL GROUP, INC. AND SUBSIDIARIES

SUMMARY OF LOANS IN PENLAND DEVELOPMENT

(dollars in thousands) (unaudited)

	At and for the Year Ended December 31, 2007

	# of Loans		Outstanding Balance		Charge-offs		Net Balance		Nonaccrual		Allocated Allowance


Lot loans		93	$	17,422	$	15,702	$	1,720	$	1,720	$	—
Development loans		2		3,007		2,707		300		300		—

Total		95	$	20,429	$	18,409	$	2,020	$	2,020	$	—

CREDIT QUALITY - Excluding the Penland Development Loans

	At and for the Year Ended December 31, 2007

	As reported (GAAP)			Adjustment for Penland Dev. Loans			Excluding Penland loans (Non-GAAP)

Loans held for investment	$	10,213,420		$	(2,020	)	$	10,211,400
Allowance for loan losses		(126,427	)		—			(126,427	)
Allowance for credit losses		(128,695	)		—			(128,695	)

Nonperforming loans	$	81,631		$	(2,020	)		79,611
Foreclosed property (other real estate owned and personal property repossessions)		8,276			—			8,276

Nonperforming assets	$	89,907		$	(2,020	)	$	87,887

Nonperforming loans as a % of loans held for investment		0.80	%					0.78	%
Nonperforming assets as a % of loans held for investment and foreclosed property		0.88						0.86
Allowance for loan losses as a % of loans HFI		1.24						1.24
Allowance for credit losses as a % of loans HFI		1.26						1.26
Allowance for loan losses to nonperforming loans		1.55	x					1.59	x
Loans past due 90 days or more (mortgage and consumer with interest accruing)	$	5,349		$	—		$	5,349
Net loan charge-offs:
Three months ended		23,655			(9,178	)		14,477
Year to date		52,561			(18,409	)		34,152
Net loan charge-offs as a % of average loans held for investment (annualized):
Three months ended		0.92	%					0.57	%
Year to date		0.53						0.34

THE SOUTH FINANCIAL GROUP, INC. AND SUBSIDIARIES

TYPES OF CUSTOMER FUNDING AND CUSTOMER FUNDING GROWTH

(dollars in thousands) (unaudited)

	12/31/07			9/30/07			6/30/07			3/31/07			12/31/06

Noninterest-bearing	$	1,127,657		$	1,164,312		$	1,244,834		$	1,286,800		$	1,280,908
Interest-bearing checking		1,117,850			1,100,428			1,177,609			1,198,714			1,208,125
Money market accounts		2,188,261			2,184,822			2,245,466			2,374,242			2,435,413
Savings accounts		158,092			169,091			177,289			184,283			181,192
Time deposits under $100,000		1,442,030			1,384,094			1,363,462			1,320,108			1,272,056
Time deposits of $100,000 or more		1,496,270			1,515,417			1,583,653			1,609,572			1,514,615

Customer deposits ⁽¹⁾		7,530,160			7,518,164			7,792,313			7,973,719			7,892,309
Brokered deposits		2,258,408			1,983,505			2,293,493			1,977,489			1,624,431

Total deposits		9,788,568			9,501,669			10,085,806			9,951,208			9,516,740
Less: Brokered deposits		(2,258,408	)		(1,983,505	)		(2,293,493	)		(1,977,489	)		(1,624,431	)
Add: Customer sweeps		648,311			599,021			556,622			479,698			500,288

Customer funding ⁽²⁾	$	8,178,471		$	8,117,185		$	8,348,935		$	8,453,417		$	8,392,597


Percentage of Deposits
Noninterest-bearing		11.5	%		12.2	%		12.3	%		12.9	%		13.4	%
Interest-bearing checking		11.4			11.6			11.7			12.0			12.7
Money market accounts		22.4			23.0			22.3			23.9			25.6
Savings accounts		1.6			1.8			1.8			1.8			1.9
Time deposits under $100,000		14.7			14.6			13.5			13.3			13.4
Time deposits of $100,000 or more		15.3			15.9			15.7			16.2			15.9

Customer deposits ⁽¹⁾		76.9			79.1			77.3			80.1			82.9
Brokered deposits		23.1			20.9			22.7			19.9			17.1

Total deposits		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

	For The Period Ended

	12/31/07			9/30/07			6/30/07			3/31/07			12/31/06

Growth vs. Prior Quarter, Annualized ⁽³⁾
Noninterest-bearing		(12.5	)%		(25.7	)%		(13.1	)%		1.9	%		6.1	%
Total deposits		12.0			(23.0	)		5.4			18.5			14.5
Customer funding ⁽²⁾		3.0			(11.0	)		(5.0	)		2.9			10.0

Growth Year-To-Date, Annualized ⁽⁴⁾
Noninterest-bearing		(12.0	)%		(12.2	)%		(5.7	)%		1.9	%		(12.2	)%
Total deposits		2.9			(0.2	)		12.1			18.5			3.1
Customer funding ⁽²⁾		(2.6	)		(4.4	)		(1.0	)		2.9			2.3


⁽¹⁾	Total deposits less brokered deposits.

⁽²⁾	Total deposits less brokered deposits plus customer sweeps.

⁽³⁾	At September 30, 2006, noninterest-bearing totaled $1,261,421, total deposits totaled $9,181,952, and customer funding totaled $8,186,564.

⁽⁴⁾	At December 31, 2005, noninterest-bearing totaled $1,458,914, total deposits totaled $9,234,437, and customer funding totaled $8,201,571.

THE SOUTH FINANCIAL GROUP, INC. AND SUBSIDIARIES

SUMMARY OF WHOLESALE BORROWINGS, CAPITAL, CAPITAL RATIOS, UNREALIZED

LOSSES ON AVAILABLE FOR SALE SECURITIES, AND MARKET RATES FOR

U.S. TREASURY NOTES

(dollars in thousands) (unaudited)

	12/31/07			9/30/07			6/30/07			3/31/07			12/31/06

Types of wholesale borrowings
Short-term borrowings
Federal funds purchased and repurchase agreements	$	206,216		$	595,272		$	654,299		$	1,016,470		$	920,811
Customer sweeps		648,311			599,021			556,622			479,698			500,288
FHLB advances		—			175,000			75,000			75,000			175,000
Commercial paper		30,828			32,601			32,687			35,584			32,631
Treasury, tax and loan note		752,195			668,687			114,042			781			139,989

Total short-term borrowings		1,637,550			2,070,581			1,432,650			1,607,533			1,768,719
Long-term borrowings
Repurchase agreements		200,000			200,000			200,000			200,000			521,000
FHLB advances		223,087			223,093			328,100			328,107			328,113
Subordinated notes		216,704			242,478			262,067			188,871			188,871
Manditorily redeemable preferred stock of subsidiary		56,800			64,800			64,800			89,800			89,800
Note payable		786			797			808			818			828
Employee stock ownership plan note payable		—			—			50			125			200
Purchase accounting premiums, net of amortization		963			1,035			1,423			1,569			1,663

Total long-term borrowings		698,340			732,203			857,248			809,290			1,130,475

Total borrowings		2,335,890			2,802,784			2,289,898			2,416,823			2,899,194
Less: Customer sweeps		(648,311	)		(599,021	)		(556,622	)		(479,698	)		(500,288	)
Add: Brokered deposits		2,258,408			1,983,505			2,293,493			1,977,489			1,624,431

Total wholesale borrowings	$	3,945,987		$	4,187,268		$	4,026,769		$	3,914,614		$	4,023,337


Wholesale borrowings as a percentage of total assets		28.4	%		29.7	%		28.5	%		27.6	%		28.3	%

Regulatory Capital
Tier 1 capital	$	1,117,915		$	1,152,663		$	1,171,055		$	1,115,023		$	1,123,448
Tier 2 capital		163,095			161,224			167,521			177,236			179,021

Total risk-based capital		1,281,010			1,313,887			1,338,576			1,292,259			1,302,469

Total risk-weighted assets		11,742,286			11,650,676			11,575,533			11,424,481			11,502,152

Tangible Equity
Shareholders’ equity	$	1,550,308		$	1,548,252		$	1,518,187		$	1,561,610		$	1,562,032
Intangible assets		(678,182	)		(679,669	)		(681,483	)		(683,611	)		(685,568	)

Tangible equity		872,126			868,583			836,704			877,999			876,464


Capital Ratios
Total risk-based capital		10.91	%		11.28	%		11.56	%		11.31	%		11.32	%
Tier 1 risk-based capital		9.52			9.89			10.12			9.76			9.77
Leverage ratio		8.44			8.64			8.73			8.28			8.34
Tangible equity to tangible assets ratio		6.61			6.47			6.22			6.52			6.48
Impact of unrealized (gain) loss		0.21			0.27			0.41			0.26			0.33

Tangible equity to tangible assets ratio, excluding unrealized gain or loss		6.82			6.74			6.63			6.78			6.81


Unrealized Losses on AFS Securities
Gross (included in AFS securities)	$	(48,841	)	$	(61,462	)	$	(94,586	)	$	(59,764	)	$	(75,302	)
Net of income tax (included in equity)		(30,765	)		(38,717	)		(59,565	)		(37,601	)		(47,378	)

Market Rates for U.S. Treasury Notes
Three year		3.07	%		4.03	%		4.89	%		4.54	%		4.74	%
Five year		3.45			4.23			4.92			4.54			4.70

THE SOUTH FINANCIAL GROUP, INC. AND SUBSIDIARIES

COMPARATIVE AVERAGE BALANCES - YIELDS AND COSTS

(dollars in thousands) (unaudited)

	Three Months Ended

	12/31/07						9/30/07							6/30/07

	Average Balance		Income/ Expense		Yield/ Rate		Average Balance		Income/ Expense			Yield/ Rate		Average Balance		Income/ Expense			Yield/ Rate

Assets
Earning assets
Commercial loans	$	7,919,926	$	149,001	7.46	%	$	7,799,177	$	154,655		7.87	%	$	7,724,530	$	152,338		7.91	%
Consumer loans		1,563,625		28,657	7.27			1,570,591		29,432		7.43			1,584,646		29,382		7.44
Indirect loans		702,721		12,565	7.09			695,686		12,188		6.95			674,961		11,271		6.70
Risk management derivatives tied to loans		—		623				—		(882	)				—		(1,030	)

Total loans ⁽¹⁾		10,186,272		190,846	7.43			10,065,454		195,393		7.70			9,984,137		191,961		7.71
Investment securities (taxable) ⁽²⁾		1,885,631		22,431	4.76			2,121,044		25,390		4.79			2,247,092		26,879		4.79
Investment securities (nontaxable) ⁽³⁾		344,996		4,321	5.01			351,584		4,394		5.00			359,043		4,443		4.95

Total investment securities		2,230,627		26,752	4.80			2,472,628		29,784		4.82			2,606,135		31,322		4.81
Federal funds sold, interest- bearing bank balances, and other temp investments		4,833		64	5.25			6,574		100		6.03			6,376		97		6.10

Total earning assets		12,421,732		217,662	6.96			12,544,656		225,277		7.13			12,596,648		223,380		7.11

Non-earning assets		1,495,654						1,477,862							1,496,431

Total assets	$	13,917,386					$	14,022,518						$	14,093,079


Liabilities and Shareholders’ Equity
Liabilities
Interest-bearing liabilities
Interest-bearing deposits
Interest checking	$	1,078,194	$	4,606	1.69		$	1,122,793	$	5,571		1.97		$	1,176,182	$	6,029		2.06
Savings		164,365		617	1.49			172,110		697		1.61			181,166		736		1.63
Money market		2,195,506		20,883	3.77			2,236,493		22,390		3.97			2,294,181		22,528		3.94
Time deposits, excluding brokered deposits		2,891,656		35,717	4.90			2,905,426		36,594		5.00			2,910,284		36,407		5.02
Brokered deposits		2,426,483		31,430	5.14			2,208,381		29,245		5.25			2,042,664		26,366		5.18

Total interest-bearing deposits		8,756,204		93,253	4.23			8,645,203		94,497		4.34			8,604,477		92,066		4.29
Customer sweeps		590,682		5,977	4.01			559,906		6,237		4.42			496,030		5,528		4.47
Other borrowings ⁽⁴⁾		1,645,122		21,972	5.30			1,858,800		26,231		5.60			1,989,109		27,710		5.59

Total interest-bearing liabilities		10,992,008		121,202	4.37			11,063,909		126,965		4.55			11,089,616		125,304		4.53

Noninterest-bearing liabilities
Noninterest-bearing deposits		1,149,816						1,198,350							1,225,075
Other noninterest liabilities		218,796						240,771							231,996

Total liabilities		12,360,620						12,503,030							12,546,687
Shareholders’ equity		1,556,766						1,519,488							1,546,392

Total liabilities and shareholders’ equity	$	13,917,386					$	14,022,518						$	14,093,079

Net interest margin (tax-equivalent)			$	96,460	3.09	%			$	98,312		3.12	%			$	98,076		3.12	%
Less: tax-equivalent adjustment ⁽³⁾				1,512						1,538							1,555

Net interest income			$	94,948					$	96,774						$	96,521


Supplemental data:
Customerr fundingt ⁽⁵⁾	$	8,070,219	$	67,800	3.33	%	$	8,195,078	$	71,489		3.46	%	$	8,282,918	$	71,228		3.45	%
Wholesale borrowings ⁽⁶⁾		4,071,605		53,402	5.20			4,067,181		55,476		5.41			4,031,773		54,076		5.38

Total funding ⁽⁷⁾	$	12,141,824	$	121,202	3.96		$	12,262,259	$	126,965		4.11		$	12,314,691	$	125,304		4.08


⁽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, 2007 and September 30, 2007, TSFG capitalized $317,000 and $188,000, respectively, of interest in conjunction with the construction of its expanded corporate facilities.

⁽⁵⁾	Customer funding includes total deposits less brokered deposits plus customer sweeps.

⁽⁶⁾	TSFG defines wholesale borrowings as borrowings less customer sweeps plus brokered deposits. For purposes of this table, wholesale borrowings equal the sum of other borrowings and brokered deposits, as customer sweeps are presented separately.

⁽⁷⁾	Total funding includes customer funding and wholesale borrowings.

Note: Average balances are derived from daily balances.

THE SOUTH FINANCIAL GROUP, INC. AND SUBSIDIARIES

COMPARATIVE AVERAGE BALANCES - YIELDS AND COSTS - CONTINUED

(dollars in thousands) (unaudited)

	Three Months Ended

	3/31/07								12/31/06

	Average Balance		Income/ Expense			Yield/ Rate			Average Balance		Income/ Expense			Yield/ Rate

Assets
Earning assets
Commercial loans	$	7,579,574	$	148,078			7.92	%	$	7,371,401	$	148,325			7.98	%
Consumer loans		1,570,745		28,957			7.48			1,594,047		29,482			7.34
Indirect loans		662,691		10,646			6.52			657,602		10,612			6.40
Risk management derivatives tied to loans		—		(1,053	)					—		(1,034	)

Total loans ⁽¹⁾	$	9,813,010	$	186,628			7.71		$	9,623,050	$	187,385			7.73
Investment securities (taxable) ⁽²⁾		2,414,896		28,825			4.78			2,503,989		29,876			4.77
Investment securities (nontaxable) ⁽³⁾		383,804		4,689			4.89			400,117		4,808			4.81

Total investment securities		2,798,700		33,514			4.79			2,904,106		34,684			4.78
Federal funds sold, interest-bearing bank balances, and other temp investments		8,331		141			6.86			11,521		144			4.96

Total earning assets		12,620,041		220,283			7.06			12,538,677		222,213			7.04

Non-earning assets		1,528,013								1,592,004

Total assets	$	14,148,054							$	14,130,681


Liabilities and Shareholders’ Equity
Liabilities
Interest-bearing liabilities
Interest-bearing deposits
Interest checking	$	1,187,239	$	5,935			2.03		$	1,106,819	$	5,770			2.07
Savings		178,940		706			1.60			184,733		687			1.48
Money market		2,377,771		23,537			4.01			2,445,437		24,109			3.91
Time deposits, excluding brokered deposits		2,893,638		35,581			4.99			2,687,712		32,635			4.82
Brokered deposits		1,771,081		22,720			5.20			1,478,336		19,515			5.24

Total interest-bearing deposits		8,408,669		88,479			4.27			7,903,037		82,716			4.15
Customer sweeps		453,928		4,981			4.45			414,742		4,695			4.49
Other borrowings		2,270,120		30,644			5.47			2,645,462		36,465			5.47

Total interest-bearing liabilities		11,132,717		124,104			4.52			10,963,241		123,876			4.48

Noninterest-bearing liabilities
Noninterest-bearing deposits		1,230,320								1,302,329
Other noninterest liabilities		233,248								306,023

Total liabilities		12,596,285								12,571,593
Shareholders’ equity		1,551,769								1,559,088

Total liabilities and shareholders’ equity	$	14,148,054							$	14,130,681

Net interest margin (tax-equivalent)			$	96,179			3.08	%			$	98,337			3.12	%
Less: tax-equivalent adjustment ⁽³⁾				1,641								1,683

Net interest income			$	94,538							$	96,654


Supplemental data:
Customer funding ⁽⁴⁾	$	8,321,836	$	70,740			3.45	%	$	8,141,772	$	67,896			3.31	%
Wholesale borrowings ⁽⁵⁾		4,041,201		53,364			5.36			4,123,798		55,980			5.39

Total funding ⁽⁶⁾	$	12,363,037	$	124,104			4.07		$	12,265,570	$	123,876			4.01


⁽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⁾	Customer funding includes total deposits less brokered deposits plus customer sweeps.

⁽⁵⁾	TSFG defines wholesale borrowings as borrowings less customer sweeps plus brokered deposits. For purposes of this table, wholesale borrowings equal the sum of other borrowings and brokered deposits, as customer sweeps are presented separately.

⁽⁶⁾	Total funding includes customer funding and wholesale borrowings

Note: Average balances are derived from daily balances.

THE SOUTH FINANCIAL GROUP, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP MEASURES

(dollars in thousands, except share data) (unaudited)

	Three Months Ended

	12/31/07					9/30/07					6/30/07					3/31/07

				Diluted EPS					Diluted EPS					Diluted EPS					Diluted EPS

Net Income, as Reported (GAAP)	$	8,989		$	0.12	$	25,839		$	0.35	$	17,930		$	0.24	$	20,518		$	0.27
Non-Operating Items
(Gain) loss on securities		1,288					(287	)				2,237					1,385
Employment contract buyouts and severance		—					—					546					1,760
Loss on early extinguishment of debt		499					1,299					231					—
Visa-related litigation		881					—					—					—
Related income taxes		(800	)				(314	)				(1,008	)				(1,065	)

Operating Earnings (Net Income, Excluding Non-Operating Items)		10,857			0.15		26,537			0.36		19,936			0.27		22,598			0.30
Amortization of intangibles		1,853					1,907					2,136					2,001
Related income taxes		(377	)				(591	)				(714	)				(677	)

Cash Operating Earnings (Net Income, Excluding Non-Operating Items and Amortization of Intangibles)	$	12,333		$	0.17	$	27,853		$	0.38	$	21,358		$	0.29	$	23,922		$	0.32


Average Common Shares Outstanding, Diluted		72,875,062					73,605,752					74,397,091					75,244,968

Select Balance Sheet (Averages)
Total assets	$	13,917,386				$	14,022,518				$	14,093,079				$	14,148,054
Intangible assets		(678,851	)				(680,526	)				(682,584	)				(684,626	)

Tangible assets		13,238,535					13,341,992					13,410,495					13,463,428


Shareholders’ equity		1,556,766					1,519,488					1,546,392					1,551,769
Intangible assets		(678,851	)				(680,526	)				(682,584	)				(684,626	)

Tangible equity		877,915					838,962					863,808					867,143


Return on Average Assets
GAAP earnings		0.26	%				0.73	%				0.51	%				0.59	%
Operating earnings		0.31					0.75					0.57					0.65
Cash operating earnings on average tangible assets		0.37					0.83					0.64					0.72

Return on Average Equity
GAAP earnings		2.29					6.75					4.65					5.36
Operating earnings		2.77					6.93					5.17					5.91
Cash operating earnings on average tangible equity		5.57					13.17					9.92					11.19

THE SOUTH FINANCIAL GROUP, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP MEASURES

(dollars in thousands, except share data) (unaudited)

	Three Months Ended

	12/31/06					9/30/06					6/30/06					3/31/06

				Diluted EPS					Diluted EPS					Diluted EPS					Diluted EPS

Net Income, as Reported (GAAP) ⁽¹⁾	$	23,551		$	0.31	$	32,165		$	0.43	$	29,343		$	0.39	$	27,807		$	0.37
Non-Operating Items
Loss (gain) on securities		239					—					(3,601	)				(675	)
Gain on disposition of assets and liabilities		—					(2,498	)				—					—
Loss on sale of indirect auto loans previously HFI		—					—					3,477					—
Employment contract buyouts and severance		4,990					—					—					598
Loss on early extinguishment of debt		821					—					—					—
Related income taxes		(1,952	)				767					42					27

Operating Earnings (Net Income, Excluding Non-Operating Items) ⁽¹⁾		27,649			0.37		30,434			0.40		29,261			0.39		27,757			0.37
Amortization of intangibles		2,156					2,204					2,208					2,207
Related income taxes		(279	)				(677	)				(755	)				(763	)

Cash Operating Earnings (Net Income, Excluding Non-Operating Items and Amortization of Intangibles)	$	29,526		$	0.39	$	31,961		$	0.42	$	30,714		$	0.41	$	29,201		$	0.39


Average Common Shares Outstanding, Diluted		75,701,120					75,590,748					75,504,683					75,339,283

Select Balance Sheet (Averages)
Total assets	$	14,130,681				$	13,973,708				$	14,344,435				$	14,367,256
Intangible assets		(686,393	)				(688,493	)				(690,375	)				(691,262	)

Tangible assets		13,444,288					13,285,215					13,654,060					13,675,994


Shareholders’ equity		1,559,088					1,501,105					1,476,234					1,487,996
Intangible assets		(686,393	)				(688,493	)				(690,375	)				(691,262	)

Tangible equity		872,695					812,612					785,859					796,734


Return on Average Assets
GAAP earnings		0.66	%				0.91	%				0.82	%				0.78	%
Operating earnings		0.78					0.86					0.82					0.78
Cash operating earnings on average tangible assets		0.87					0.95					0.90					0.87

Return on Average Equity
GAAP earnings		5.99					8.50					7.97					7.58
Operating earnings		7.04					8.04					7.95					7.57
Cash operating earnings on average tangible equity		13.42					15.60					15.68					14.86


⁽¹⁾	Net income and operating earnings for fourth quarter 2006 included a $5.2 million income tax benefit, or $0.07 per diluted share, related to favorable income tax settlements.

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,

	2007					2006					2005

				Diluted EPS					Diluted EPS					Diluted EPS

Net Income, as Reported (GAAP)	$	73,276		$	0.99	$	112,866		$	1.49	$	69,821		$	0.94
Non-Operating Items
Change in fair value of interest rate swaps		—					—					13,278
(Gain) loss on securities		4,623					(4,037	)				52,139
Gain on disposition of assets and liabilities		—					(2,498	)				—
Loss on sale of indirect auto loans previously HFI		—					3,477					—
Employment contract buyouts and severance		2,306					5,588					10,327
Impairment loss from write-down of assets		—					—					917
Merger-related costs		—					—					4,009
Loss on early extinguishment of debt		2,029					821					7,101
Visa-related litigation		881					—					—
Charitable contribution to foundation		—					—					683
Related income taxes		(3,187	)				(1,116	)				(32,541	)
Discontinued operations, net of income tax		—					—					396

Operating Earnings (Net Income, Excluding Non-Operating Items)		79,928			1.08		115,101			1.52		126,130			1.69
Amortization of intangibles		7,897					8,775					8,637
Related income taxes		(2,359	)				(2,474	)				(2,698	)

Cash Operating Earnings (Net Income, Excluding Non-Operating Items and Amortization of Intangibles)	$	85,466		$	1.15	$	121,402		$	1.61	$	132,069		$	1.77


Average Common Shares Outstanding, Diluted		74,085,440					75,542,848					74,594,626

Select Balance Sheet (Averages)
Total assets	$	14,044,565				$	14,202,649				$	14,752,973
Intangible assets		(681,628	)				(689,116	)				(663,274	)

Tangible assets		13,362,937					13,513,533					14,089,699


Shareholders’ equity		1,543,552					1,506,195					1,463,125
Intangible assets		(681,628	)				(689,116	)				(663,274	)

Tangible equity		861,924					817,079					799,851


Return on Average Assets
GAAP earnings		0.52	%				0.79	%				0.47	%
Operating earnings		0.57					0.81					0.85
Cash operating earnings on average tangible assets		0.64					0.90					0.94

Return on Average Equity
GAAP earnings		4.75					7.49					4.77
Operating earnings		5.18					7.64					8.62
Cash operating earnings on average tangible equity		9.92					14.86					16.51

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

	Three Months Ended

	12/31/07			9/30/07			6/30/07			3/31/07

Select Financial Data Used in Ratios Calculated Below
Net interest income	$	94,948		$	96,774		$	96,521		$	94,538
Tax-equivalent adjustment		1,512			1,538			1,555			1,641

Net interest income (tax-equivalent)	$	96,460		$	98,312		$	98,076		$	96,179


Total noninterest income, as reported (GAAP)	$	28,741		$	29,917		$	27,683		$	26,970
Adjustments for non-operating items:
(Gain) loss on securities		1,288			(287	)		2,237			1,385

Operating noninterest income (noninterest income, excluding non-operating items)	$	30,029		$	29,630		$	29,920		$	28,355


Total noninterest expenses, as reported (GAAP)	$	80,481		$	78,739		$	80,151		$	81,477
Adjustments for non-operating items:
Employment contract buyouts and severance		—			—			(546	)		(1,760	)
Loss on early extinguishment of debt		(499	)		(1,299	)		(231	)		—
Visa-related litigation		(881	)		—			—			—

Operating noninterest expenses (noninterest expenses, excluding non-operating items)		79,101			77,440			79,374			79,717
Less: amortization of intangibles		(1,853	)		(1,907	)		(2,136	)		(2,001	)

Cash operating noninterest expenses (noninterest expenses, excluding non-operating items and amortization of intangibles)	$	77,248		$	75,533		$	77,238		$	77,716


Total Revenue ⁽¹⁾
GAAP	$	123,689		$	126,691		$	124,204		$	121,508
Operating ⁽²⁾		126,489			127,942			127,996			124,534

Noninterest Income as a % of Total Revenue ⁽³⁾
GAAP		23.24	%		23.61	%		22.29	%		22.20	%
Operating ⁽²⁾		23.74			23.16			23.38			22.77

Efficiency Ratios ⁽⁴⁾
GAAP		65.07			62.15			64.53			67.05
Operating ⁽²⁾		62.54			60.53			62.01			64.01
Cash operating ⁽²⁾		61.07			59.04			60.34			62.41


⁽¹⁾	The sum of net interest income and noninterest income.

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

⁽³⁾	Calculated as noninterest income, divided by the sum of net interest income and noninterest income.

⁽⁴⁾	Calculated as noninterest expenses, divided by the sum of net interest income and noninterest income.

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

	Three Months Ended

	12/31/06			9/30/06			6/30/06			3/31/06

Select Financial Data Used in Ratios Calculated Below
Net interest income	$	96,654		$	98,683		$	103,122		$	102,912
Tax-equivalent adjustment		1,683			1,691			1,728			1,801

Net interest income (tax-equivalent)	$	98,337		$	100,374		$	104,850		$	104,713


Total noninterest income, as reported (GAAP)	$	29,233		$	34,119		$	28,315		$	26,238
Adjustments for non-operating items:
Loss (gain) on securities		239			—			(3,601	)		(675	)

Gain on disposition of assets and liabilities		—			(2,498	)		—			—

Loss on sale of indirect auto loans previously HFI		—			—			3,477			—

Operating noninterest income (noninterest income, excluding non-operating items)	$	29,472		$	31,621		$	28,191		$	25,563


Total noninterest expenses, as reported (GAAP)	$	89,998		$	79,835		$	79,354		$	76,752
Adjustments for non-operating items:
Employment contract buyouts and severance		(4,990	)		—			—			(598	)

Loss on early extinguishment of debt		(821	)		—			—			—

Operating noninterest expenses (noninterest expenses, excluding non-operating items)		84,187			79,835			79,354			76,154
Less: amortization of intangibles		(2,156	)		(2,204	)		(2,208	)		(2,207	)

Cash operating noninterest expenses (noninterest expenses, excluding non-operating items and amortization of intangibles)	$	82,031		$	77,631		$	77,146		$	73,947


Total Revenue ⁽¹⁾
GAAP	$	125,887		$	132,802		$	131,437		$	129,150
Operating ⁽²⁾		127,809			131,995			133,041			130,276

Noninterest Income as a % of Total Revenue ⁽³⁾
GAAP		23.22	%		25.69	%		21.54	%		20.32	%
Operating ⁽²⁾		23.06			23.96			21.19			19.62

Efficiency Ratios ⁽⁴⁾
GAAP		71.49			60.12			60.37			59.43
Operating ⁽²⁾		65.87			60.48			59.65			58.46
Cash operating ⁽²⁾		64.18			58.81			57.99			56.76


⁽¹⁾	The sum of net interest income and noninterest income.

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

⁽³⁾	Calculated as noninterest income, divided by the sum of net interest income and noninterest income.

⁽⁴⁾	Calculated as noninterest expenses, divided by the sum of net interest income and noninterest income.

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

	Years Ended December 31,

	2007			2006			2005			2004			2003

Select Financial Data Used in Ratios Calculated Below
Net interest income	$	382,781		$	401,371		$	409,056		$	335,841		$	250,890
Tax-equivalent adjustment		6,246			6,903			6,054			4,356			2,681

Net interest income (tax-equivalent)		389,027			408,274			415,110			340,197			253,571
Net cash settlement of certain interest rate swaps included in noninterest income		—			—			10,360			27,560			19,486

Net interest income (tax-equivalent), including net cash settlement of certain interest rate swaps	$	389,027		$	408,274		$	425,470		$	367,757		$	273,057


Net interest margin (tax-equivalent)		3.10	%		3.22	%		3.12	%		3.06	%		3.01	%
Net interest margin (tax-equivalent), including net cash settlement of certain interest rate swaps		3.10			3.22			3.20			3.31			3.24

Total noninterest income, as reported (GAAP)	$	113,311		$	117,905		$	43,850		$	115,243		$	92,841
Adjustments for non-operating items:
Change in fair value of interest rate swaps		—			—			13,278			(2,550	)		14,237
(Gain) loss on securities		4,623			(4,037	)		52,139			(11,721	)		(16,456	)
Impairment of perpetual preferred stock		—			—			—			10,367			—
Gain on disposition of assets and liabilities		—			(2,498	)		—			(2,350	)		(601	)
Loss on sale of indirect auto loans previously HFI		—			3,477			—			—			—

Operating noninterest income (noninterest income, excluding non-operating items)		117,934			114,847			109,267			108,989			90,021
Net cash settlement of certain interest rate swaps included in noninterest income		—			—			10,360			27,560			19,486

Operating noninterest income, excluding net cash settlement of certain interest rate swaps	$	117,934		$	114,847		$	98,907		$	81,429		$	70,535


Total noninterest expenses, as reported (GAAP)	$	320,848		$	325,939		$	316,693		$	240,610		$	199,272
Adjustments for non-operating items:
Employment contract buyouts and severance		(2,306	)		(5,588	)		(10,327	)		(1,080	)		(512	)
Merger-related costs		—			—			(4,009	)		(7,866	)		(5,127	)
Impairment recovery (loss) from write-down of assets		—			—			(917	)		277			(268	)
Conservation grant of land		—			—			—			(3,350	)		—
Loss on early extinguishment of debt		(2,029	)		(821	)		(7,101	)		(1,429	)		(2,699	)
Visa-related litigation		(881	)		—			—			—			—
Charitable contribution to foundation		—			—			(683	)		—			—

Operating noninterest expenses (noninterest expenses, excluding non-operating items)		315,632			319,530			293,656			227,162			190,666
Less: amortization of intangibles		(7,897	)		(8,775	)		(8,637	)		(6,043	)		(3,433	)

Cash operating noninterest expenses (noninterest expenses, excluding non-operating items and amortization of intangibles)	$	307,735		$	310,755		$	285,019		$	221,119		$	187,233


Total Revenue ⁽¹⁾
GAAP	$	496,092		$	519,276		$	452,906		$	451,084		$	343,731
Operating ⁽²⁾		506,961			523,121			524,377			449,186			343,592

Noninterest Income as a % of Total Revenue ⁽³⁾
GAAP		22.84	%		22.71	%		9.68	%		25.55	%		27.01	%
Operating ⁽²⁾		23.26			21.95			20.84			24.26			26.20
Operating, excluding net cash settlement of certain interest rate swaps ⁽⁴⁾		23.26			21.95			18.86			18.13			20.53

Efficiency Ratios ⁽⁵⁾
GAAP		64.68			62.77			69.92			53.34			57.97
Operating ⁽²⁾		62.26			61.08			56.00			50.57			55.49
Cash operating ⁽²⁾		60.70			59.40			54.35			49.23			54.49


⁽¹⁾	The sum of net interest income and noninterest income.

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

⁽³⁾	Calculated as noninterest income, divided by the sum of net interest income and noninterest income.

⁽⁴⁾	Calculated excluding the net cash settlement of certain interest rate swaps.

⁽⁵⁾	Calculated as noninterest expenses, divided by the sum of net interest income and noninterest income.