----

----

| x | Annual report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended December 31, 2009 or |
|---|-------------------------------------------------------------------------------------------------------------------------------------|

|  ̈ | Transition report pursuant to section 12 or 15(d) of the Securities Exchange Act of 1934 for transition period from _______ to |
|--------|--------------------------------------------------------------------------------------------------------------------------------|

| South Carolina                                                 | 57-0824914                           |
|----------------------------------------------------------------|--------------------------------------|
| (State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
|                                                           |                                 |
| 102 South Main Street, Greenville, South Carolina              | 29601                                |
| (Address of principal executive offices)                       | (Zip Code)                           |

| None                  | None                                        |
|-----------------------|---------------------------------------------|
| (Title of Each Class) | (Name of each exchange on which registered) |

| Large accelerated filer  ̈                                                        | Accelerated filer x              |
|---------------------------------------------------------------------------------------|----------------------------------|
| Non-accelerated filer  ̈  (Do not check if a smaller reporting company) | Smaller reporting company  ̈ |

----

----

----

INDEX

|     |          |                                                                                                              | Page   |
|----------|---------------|-------------------------------------------------------------------------------------------------------------------|--------|
| PART I   |          |                                                                                                              |   |
|     |          |                                                                                                              |   |
|     | Item 1.  | Business                                                                                                          | 1      |
|     | Item 1A.      | Risk Factors                                                                                                      | 10     |
|     | Item 1B.      | Unresolved Staff Comments                                                                                         | 19     |
|     | Item 2.  | Properties                                                                                                        | 19     |
|     | Item 3.  | Legal Proceedings                                                                                                 | 19     |
|     | Item 4.       | (Reserved)                                                                                                        |   |
|     |          |                                                                                                              |   |
| PART II  |          |                                                                                                              |   |
|     |          |                                                                                                              |   |
|     | Item 5.  | Market for the Registrant's Common Equity, Related Shareholder Matters, and Issuer Purchases of Equity Securities | 20     |
|     | Item 6.  | Selected Financial Data                                                                                           | 22     |
|     | Item 7.  | Management's Discussion and Analysis of Financial Condition and Results of Operations                             | 23     |
|     | Item 7A. | Quantitative and Qualitative Disclosures about Market Risk                                                        | 73     |
|     | Item 8.  | Financial Statements and Supplementary Data                                                                       | 74     |
|     | Item 9.  | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                              | 138    |
|     | Item 9A. | Controls and Procedures                                                                                           | 138    |
|     | Item 9B. | Other Information                                                                                                 | 139    |
|     |          |                                                                                                              |   |
| PART III |          |                                                                                                              |   |
|     |          |                                                                                                              |   |
|     | Item 10. | Directors, Executive Officers, and Corporate Governance                                                           | 140    |
|     | Item 11. | Executive Compensation                                                                                            | 140    |
|     | Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters                    | 140    |
|     | Item 13. | Certain Relationships and Related Transactions, and Director Independence                                         | 140    |
|     | Item 14. | Principal Accountant Fees and Services                                                                            | 140    |
|     |          |                                                                                                              |   |
| PART IV  |          |                                                                                                              |   |
|     |          |                                                                                                              |   |
|     | Item 15. | Exhibits and Financial Statement Schedules                                                                        | 141    |

----

Index 

PART 

| Item 1.  | Business |
|---------------|----------|

|   | · | the Greenville, Spartanburg, and Anderson metropolitan area (located in the Upstate region of South Carolina); |
|--------|--------|----------------------------------------------------------------------------------------------------------------|

|   | · | the Hendersonville and Asheville metropolitan area (located in the Western region of North Carolina); |
|--------|--------|-------------------------------------------------------------------------------------------------------|

|   | · | the Rock Hill, or greater South Charlotte, metropolitan area (located in the Piedmont region of South Carolina); |
|--------|--------|------------------------------------------------------------------------------------------------------------------|

|   | · | the Columbia metropolitan area (located in the Midlands region of South Carolina); |
|--------|--------|------------------------------------------------------------------------------------|

----

Index 

|   | · | the Myrtle Beach, Georgetown, and Wilmington metropolitan areas (located in the North Coast of South Carolina and Wilmington, North Carolina ); and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the Charleston and Hilton Head metropolitan areas (located in the South Coast of South Carolina). |
|--------|--------|---------------------------------------------------------------------------------------------------|

|   | · | the Jacksonville metropolitan area (located in the North East Florida region); |
|--------|--------|--------------------------------------------------------------------------------|

|   | · | the Gainesville metropolitan area (located in the North Central region); |
|--------|--------|--------------------------------------------------------------------------|

|   | · | the Orlando metropolitan area and the Marion County area (located in the Central Florida region); |
|--------|--------|---------------------------------------------------------------------------------------------------|

|   | · | the Tampa Bay metropolitan area (located in the Tampa Bay region); and |
|--------|--------|------------------------------------------------------------------------|

|   | · | the Palm Beach County, Miami-Dade County, and Broward County area (located in the South Florida region). |
|--------|--------|----------------------------------------------------------------------------------------------------------|

----

Index 

| Name                     |   | Age |   | TSFG Offices Currently Held                                                 |   | TSFG Officer Since |
|--------------------------|--------|-----|--------|-----------------------------------------------------------------------------|--------|--------------------|
| H. Lynn Harton           |   | 48  |   | President and Chief Executive Officer                                       |   | 2007               |
| Tanya A. Butts           |   | 51  |   | Executive Vice President – Chief Operations and Technology Officer    |   | 2009               |
| William P. Crawford, Jr. |   | 47  |   | Executive Vice President – Chief Legal and Risk Officer and Secretary |   | 2002               |
| J. Ernesto Diaz          |   | 44  |   | President – Mercantile                                                |   | 2008               |
| Robert A. Edwards        |   | 45  |   | Executive Vice President – Chief Credit Officer                       |   | 2008               |
| Christopher S. Gompper   |   | 50  |   | Interim President – Carolina First                                    |   | 2008               |
| James R. Gordon          |   | 44  |   | Senior Executive Vice President – Chief Financial Officer             |   | 2007               |
| Christopher G. Speaks    |   | 44  |   | Executive Vice President – Chief Accounting Officer                   |   | 2008               |

----

Index 

----

Index 

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Index 

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Index 

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Index 

----

Index 

|   | • | prohibiting the payment of principal and interest on subordinated debt; |
|--------|---------|-------------------------------------------------------------------------|

|   | • | prohibiting the holding company from making distributions without prior regulatory approval; |
|--------|---------|----------------------------------------------------------------------------------------------|

|   | • | placing limits on asset growth and restrictions on activities; |
|--------|---------|----------------------------------------------------------------|

|   | • | placing additional restrictions on transactions with affiliates; |
|--------|---------|------------------------------------------------------------------|

|   | • | limiting the maximum interest rate the institution may pay on deposits; |
|--------|---------|-------------------------------------------------------------------------|

|   | • | prohibiting the institution from accepting deposits from correspondent banks; and |
|--------|---------|-----------------------------------------------------------------------------------|

|   | • | in the most severe cases, appointing a conservator or receiver for the institution. |
|--------|---------|-------------------------------------------------------------------------------------|

----

Index 

| Item 1A. | Risk Factors |
|----------|--------------|

----

Index 

----

Index 

----

Index 

----

Index 

----

Index 

----

Index 

----

Index 

----

Index 

----

Index 

| Item 1B. | Unresolved Staff Comments |
|----------|---------------------------|

| Item 2. | Properties |
|---------|------------|

| Item 3. | Legal Proceedings |
|---------|-------------------|

----

Index 

PART 

| Item 5. | Market for the Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities |
|---------|-------------------------------------------------------------------------------------------------------------------|

|                          |   | Three Months Ended |        |
|-------------------------------|--------|--------------------|-------------|
|                          |   | December 31        |        |   | September 30 |   |   | June 30 |   |   | March 31 |   |
| 2009                          |   |               |        |   |   |   |   |   |   |   |   |   |
| Common stock price:           |   |               |        |   |   |   |   |   |   |   |   |   |
| High                          |   | $                  | 1.60        |   |   | $ | 2.20 |   |   | $ | 3.40 |   |   | $ | 4.51 |   |
| Low                           |   |               | 0.53        |   |   |   | 0.98 |   |   |   | 1.05 |   |   |   | 0.66 |   |
| Close                         |   |               | 0.64        |   |   |   | 1.47 |   |   |   | 1.19 |   |   |   | 1.10 |   |
| Cash common dividend declared |   |               | -           |   |   |   | - |   |   |   | 0.01 |   |   |   | 0.01 |   |
| Volume traded                 |   |               | 328,692,978 |   |   |   | 280,363,211 |   |   |   | 139,651,924 |   |   |   | 70,663,648 |   |

|                          |   | Three Months Ended |       |
|-------------------------------|--------|--------------------|------------|
|                          |   | December 31        |       |   | September 30 |   |   | June 30 |   |   | March 31 |   |
| 2008                          |   |               |       |   |   |   |   |   |   |   |   |   |
| Common stock price:           |   |               |       |   |   |   |   |   |   |   |   |   |
| High                          |   | $                  | 9.53       |   |   | $ | 13.50 |   |   | $ | 15.52 |   |   | $ | 18.02 |   |
| Low                           |   |               | 2.48       |   |   |   | 2.52 |   |   |   | 3.66 |   |   |   | 12.25 |   |
| Close                         |   |               | 4.32       |   |   |   | 7.33 |   |   |   | 3.92 |   |   |   | 14.86 |   |
| Cash common dividend declared |   |               | 0.01       |   |   |   | 0.01 |   |   |   | 0.01 |   |   |   | 0.19 |   |
| Volume traded                 |   |               | 68,949,220 |   |   |   | 106,046,605 |   |   |   | 172,874,695 |   |   |   | 73,719,377 |   |

----

Index 

| ISSUER PURCHASES OF EQUITY SECURITIES |   |
|---------------------------------------|--------|
| Period                                |   | Total Number of Shares Purchased |   |   | Average Price Paid per Share |   |   | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs |   |   | Approximate Dollar Value of Shares that May Yet Be Purchased Under Plans or Programs (in thousands) |   |
| October 1, 2009 to October 31, 2009   |   |   | - |   |   | $ | - |   |   |   | - |   |   | $ | - |   |
| November 1, 2009 to November 30, 2009 |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| December 1, 2009 to December 31, 2009 |   |   | 1,409 | (1) |   |   | 0.56 |   |   |   | - |   |   |   | - |   |
| Total                                 |   |   | 1,409 |   |   | $ | 0.56 |   |   |   | - |   |   | $ | - |   |

| (1) | These shares were canceled in connection with vesting of restricted stock. Pursuant to TSFG’s restricted stock plans, participants may tender shares of vested restricted stock as payment for taxes due at the time of vesting. Shares surrendered by participants of these plans are repurchased at current market value pursuant to the terms of the applicable restricted stock plan and not pursuant to publicly announced share repurchase programs. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                      |   | 12/31/04 |   |   | 12/31/05 |   |   | 12/31/06 |   |   | 12/31/07 |   |   | 12/31/08 |   |   | 12/31/09 |   |
|---------------------------|--------|----------|--------|--------|----------|--------|--------|----------|--------|--------|----------|--------|--------|----------|--------|--------|----------|--------|
|                      |   |     |   |   |     |   |   |     |   |   |     |   |   |     |   |   |     |   |
| The South Financial Group |   | $        | 100    |   |     | $      | 87     |     |   | $      | 86       |   |   | $        | 52     |   |     | $      | 15 |   |   | $ | 2 |   |
| NASDAQ Bank Index         |   |     | 100    |   |     |   | 98     |     |   |   | 110      |   |   |     | 87     |   |     |   | 63 |   |   |   | 53 |   |
| S&P 500               |   |     | 100    |   |     |   | 105    |     |   |   | 121      |   |   |     | 128    |   |     |   | 81 |   |   |   | 102 |   |

----

Index 

| Item 6. | Selected Financial Data |
|---------|-------------------------|

|                                                                            |   | Years Ended December 31, |       |
|---------------------------------------------------------------------------------|--------|--------------------------|------------|
|                                                                            |   | 2009                     |       |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |   | 2004 |   |
| Earnings Summary                                                                |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income                                                             |   | $                        | 331,532    |   |   | $ | 380,163 |   |   | $ | 382,781 |   |   | $ | 401,371 |   |   | $ | 409,056 |   |   | $ | 335,841 |   |
| Noninterest income                                                              |   |                     | 118,033    |   |   |   | 121,967 |   |   |   | 113,712 |   |   |   | 118,210 |   |   |   | 43,893 |   |   |   | 115,728 |   |
| Total revenue                                                                   |   |                     | 449,565    |   |   |   | 502,130 |   |   |   | 496,493 |   |   |   | 519,581 |   |   |   | 452,949 |   |   |   | 451,569 |   |
| Provision for credit losses                                                     |   |                     | 668,904    |   |   |   | 344,589 |   |   |   | 68,568 |   |   |   | 32,789 |   |   |   | 40,592 |   |   |   | 34,987 |   |
| Noninterest expenses                                                            |   |                     | 419,121    |   |   |   | 792,233 |   |   |   | 321,249 |   |   |   | 326,244 |   |   |   | 316,736 |   |   |   | 241,095 |   |
| (Loss) income from continuing ops                                               |   |                     | (676,254   | ) |   |   | (547,118 | ) |   |   | 73,276 |   |   |   | 112,866 |   |   |   | 70,217 |   |   |   | 119,998 |   |
| Net (loss) income                                                               |   |                     | (676,254   | ) |   |   | (547,118 | ) |   |   | 73,276 |   |   |   | 112,866 |   |   |   | 69,821 |   |   |   | 119,508 |   |
| Net (loss) income available to common shareholders                              |   |                     | (736,943   | ) |   |   | (568,776 | ) |   |   | 72,611 |   |   |   | 112,348 |   |   |   | 69,653 |   |   |   | 119,188 |   |
|                                                                            |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Per Common Share                                                                |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic:                                                                          |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (Loss) income from continuing ops                                               |   | $                        | (5.22      | ) |   | $ | (7.78 | ) |   | $ | 0.99 |   |   | $ | 1.50 |   |   | $ | 0.96 |   |   | $ | 1.85 |   |
| Net (loss) income                                                               |   |                     | (5.22      | ) |   |   | (7.78 | ) |   |   | 0.99 |   |   |   | 1.50 |   |   |   | 0.95 |   |   |   | 1.85 |   |
| Diluted:                                                                        |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (Loss) income from continuing ops                                               |   |                     | (5.22      | ) |   |   | (7.78 | ) |   |   | 0.98 |   |   |   | 1.49 |   |   |   | 0.94 |   |   |   | 1.81 |   |
| Net (loss) income                                                               |   |                     | (5.22      | ) |   |   | (7.78 | ) |   |   | 0.98 |   |   |   | 1.49 |   |   |   | 0.93 |   |   |   | 1.80 |   |
| Average common shares outstanding:                                              |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                           |   |                     | 141,208    |   |   |   | 73,137 |   |   |   | 73,618 |   |   |   | 74,940 |   |   |   | 73,307 |   |   |   | 64,592 |   |
| Diluted                                                                         |   |                     | 141,208    |   |   |   | 73,137 |   |   |   | 74,085 |   |   |   | 75,543 |   |   |   | 74,595 |   |   |   | 66,235 |   |
| Cash dividends declared                                                         |   | $                        | 0.02       |   |   | $ | 0.22 |   |   | $ | 0.73 |   |   | $ | 0.69 |   |   | $ | 0.65 |   |   | $ | 0.61 |   |
| Common book value (December 31)                                            |   |                     | 3.05       |   |   |   | 14.12 |   |   |   | 21.40 |   |   |   | 20.73 |   |   |   | 19.90 |   |   |   | 19.56 |   |
| Market price (December 31)                                                 |   |                     | 0.64       |   |   |   | 4.32 |   |   |   | 15.63 |   |   |   | 26.59 |   |   |   | 27.54 |   |   |   | 32.53 |   |
|                                                                            |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance Sheet Data (Year End)                                                   |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans held for investment                                                       |   | $                        | 8,386,127  |   |   | $ | 10,192,072 |   |   | $ | 10,213,420 |   |   | $ | 9,701,867 |   |   | $ | 9,439,395 |   |   | $ | 8,107,757 |   |
| Allowance for credit losses                                                     |   |                     | 373,126    |   |   |   | 249,874 |   |   |   | 128,695 |   |   |   | 112,688 |   |   |   | 109,350 |   |   |   | 96,918 |   |
| Securities                                                                      |   |                     | 2,222,917  |   |   |   | 2,094,367 |   |   |   | 1,990,570 |   |   |   | 2,743,518 |   |   |   | 3,092,064 |   |   |   | 4,237,355 |   |
| Intangible assets                                                               |   |                     | 229,825    |   |   |   | 246,020 |   |   |   | 678,182 |   |   |   | 685,568 |   |   |   | 691,758 |   |   |   | 611,450 |   |
| Total assets                                                                    |   |                     | 11,894,982 |   |   |   | 13,602,326 |   |   |   | 13,877,584 |   |   |   | 14,210,516 |   |   |   | 14,319,285 |   |   |   | 13,798,689 |   |
| Customer funding (1)                                                            |   |                     | 7,666,801  |   |   |   | 7,989,962 |   |   |   | 8,178,471 |   |   |   | 8,392,597 |   |   |   | 8,201,571 |   |   |   | 6,827,268 |   |
| Deposits                                                                        |   |                     | 9,296,212  |   |   |   | 9,405,717 |   |   |   | 9,788,568 |   |   |   | 9,516,740 |   |   |   | 9,234,437 |   |   |   | 7,670,944 |   |
| Long-term debt                                                                  |   |                     | 1,116,869  |   |   |   | 707,769 |   |   |   | 698,340 |   |   |   | 1,130,475 |   |   |   | 1,922,151 |   |   |   | 2,972,270 |   |
| Shareholders' equity                                                            |   |                     | 993,174    |   |   |   | 1,620,531 |   |   |   | 1,550,308 |   |   |   | 1,562,032 |   |   |   | 1,486,907 |   |   |   | 1,393,460 |   |
| Balance Sheet Data (Averages)                                                   |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                                                           |   | $                        | 9,478,536  |   |   | $ | 10,374,423 |   |   | $ | 10,013,387 |   |   | $ | 9,621,846 |   |   | $ | 8,883,837 |   |   | $ | 6,927,336 |   |
| Securities (excludes unrealized gains, losses on available for sale securities) |   |                     | 2,018,845  |   |   |   | 2,087,745 |   |   |   | 2,525,317 |   |   |   | 3,043,385 |   |   |   | 4,388,351 |   |   |   | 4,158,202 |   |
| Total earning assets                                                            |   |                     | 11,497,608 |   |   |   | 12,478,993 |   |   |   | 12,545,223 |   |   |   | 12,692,872 |   |   |   | 13,307,956 |   |   |   | 11,101,951 |   |
| Total assets                                                                    |   |                     | 12,819,697 |   |   |   | 13,833,355 |   |   |   | 14,044,565 |   |   |   | 14,202,649 |   |   |   | 14,752,973 |   |   |   | 12,208,069 |   |
| Customer funding (1)                                                            |   |                     | 7,723,889  |   |   |   | 8,065,982 |   |   |   | 8,216,762 |   |   |   | 8,077,605 |   |   |   | 7,606,071 |   |   |   | 6,167,731 |   |
| Shareholders' equity                                                            |   |                     | 1,450,273  |   |   |   | 1,558,081 |   |   |   | 1,543,552 |   |   |   | 1,506,195 |   |   |   | 1,463,125 |   |   |   | 1,164,004 |   |
|                                                                            |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Performance Ratios                                                              |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Return on average assets                                                        |   |                     | (5.28      | )% |   |   | (3.96 | )% |   |   | 0.52 | % |   |   | 0.79 | % |   |   | 0.47 | % |   |   | 0.98 | % |
| Return on average equity                                                        |   |                     | (46.63     | ) |   |   | (35.11 | ) |   |   | 4.75 |   |   |   | 7.49 |   |   |   | 4.77 |   |   |   | 10.27 |   |
| Net interest margin (tax-equivalent)                                            |   |                     | 2.92       |   |   |   | 3.09 |   |   |   | 3.10 |   |   |   | 3.22 |   |   |   | 3.12 |   |   |   | 3.06 |   |
| Tangible equity to tangible assets                                              |   |                     | 6.54       |   |   |   | 10.29 |   |   |   | 6.61 |   |   |   | 6.48 |   |   |   | 5.83 |   |   |   | 5.93 |   |
| Dividend payout ratio                                                           |   |                     | n/m        |   |   |   | n/m |   |   |   | 73.74 |   |   |   | 46.31 |   |   |   | 69.15 |   |   |   | 33.89 |   |
|                                                                            |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Credit Quality                                                                  |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nonperforming loans                                                             |   | $                        | 399,046    |   |   | $ | 365,664 |   |   | $ | 80,191 |   |   | $ | 37,168 |   |   | $ | 33,255 |   |   | $ | 45,082 |   |
| Nonperforming assets                                                            |   |                     | 522,360    |   |   |   | 414,657 |   |   |   | 88,467 |   |   |   | 41,509 |   |   |   | 43,977 |   |   |   | 55,976 |   |
| Nonperforming assets as a % of                                                  |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| loans and foreclosed property                                                   |   |                     | 6.13       | % |   |   | 4.04 | % |   |   | 0.86 | % |   |   | 0.43 | % |   |   | 0.46 | % |   |   | 0.69 | % |
| Nonperforming assets as a % of total assets                                     |   |                     | 4.39       |   |   |   | 3.05 |   |   |   | 0.64 |   |   |   | 0.29 |   |   |   | 0.31 |   |   |   | 0.41 |   |
| Net charge-offs to average loans hfi                                            |   |                     | 5.72       |   |   |   | 2.16 |   |   |   | 0.53 |   |   |   | 0.28 |   |   |   | 0.36 |   |   |   | 0.46 |   |
| Allowance for credit losses as a % of loans hfi                                 |   |                     | 4.45       |   |   |   | 2.45 |   |   |   | 1.26 |   |   |   | 1.16 |   |   |   | 1.16 |   |   |   | 1.20 |   |
|                                                                            |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operations Data                                                                 |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Branch offices                                                                  |   |                     | 177        |   |   |   | 180 |   |   |   | 172 |   |   |   | 167 |   |   |   | 172 |   |   |   | 154 |   |
| Employees (full-time equivalent)                                                |   |                     | 2,214      |   |   |   | 2,505 |   |   |   | 2,474 |   |   |   | 2,618 |   |   |   | 2,607 |   |   |   | 2,308 |   |

----

Index 

| Item 7. | Management's Discussion and Analysis of Financial Condition and Results of Operations |
|---------|---------------------------------------------------------------------------------------|

|                                              | Page   |
|---------------------------------------------------|--------|
|                                              |   |
| Forward-Looking Statements                        | 23     |
| Non-GAAP Financial Information                    | 24     |
| Overview                                          | 25     |
| Critical Accounting Policies and Estimates        | 26     |
| Balance Sheet Review                              | 30     |
| Capital and Liquidity                             | 56     |
| Results of Operations                             | 60     |
| Enterprise Risk Management                        | 68     |
| Off-Balance Sheet Arrangements                    | 72     |
| Recently Adopted/Issued Accounting Pronouncements | 73     |

|   | · | significant changes in, or additions to, banking laws or regulations, including, without limitation, as a result of the Emergency Economic Stabilization Act of 2008 (“EESA”), the Troubled Asset Relief Program (“TARP”), including the Capital Purchase Program (the “Capital Purchase Program”) of the U.S. Department of Treasury (the “U.S. Treasury”), and related executive compensation requirements; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | additional losses in our loan portfolio and ability to mitigate credit issues in our loan portfolio; |
|--------|--------|------------------------------------------------------------------------------------------------------|

|   | · | continuation or worsening of current recessionary conditions, as well as continued turmoil in the financial markets; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------|

|   | · | continued volatility and deterioration of the capital and credit markets; |
|--------|--------|---------------------------------------------------------------------------|

|   | · | ability to maintain required capital levels and adequate sources of funding and liquidity; |
|--------|--------|--------------------------------------------------------------------------------------------|

|   | · | deposit growth, change in the mix or type of deposit products, and cost of deposits; |
|--------|--------|--------------------------------------------------------------------------------------|

|   | · | loss of deposits due to perceived financial weakness or otherwise, including as a result of the decision of the Federal Deposit Insurance Corporation (“FDIC”) whether or not the Transaction Account Guarantee Program is extended after its scheduled termination on June 30, 2010; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | rating agency action such as a ratings downgrade; |
|--------|--------|---------------------------------------------------|

|   | · | continued weakness in the real estate market, including the markets for commercial and residential real estate, which may affect, among other things, the level of nonperforming assets, charge-offs, and provision expense; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | ability to raise capital or otherwise comply with Federal and state capital requirements imposed on TSFG and Carolina First; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------|

|   | · | adverse customer reaction associated with any public regulatory actions; |
|--------|--------|--------------------------------------------------------------------------|

----

Index 

|   | · | continued weakness or further deterioration in the residential real estate markets in South Carolina, western North Carolina, and larger markets in Florida, in which our loans are concentrated; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | risks inherent in making loans including repayment risks and changes in the value of collateral, and our ability to manage such risks; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------|

|   | · | loan growth, loan sales, the adequacy of the allowance for credit losses, provision for credit losses, and the assessment of problem loans (including loans acquired via acquisition); |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | risks incurred as a result of trading, clearing, counterparty, or other relationships; |
|--------|--------|----------------------------------------------------------------------------------------|

|   | · | changes in interest rates, shape of the yield curve, deposit rates, the net interest margin, and funding sources; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------|

|   | · | market risk (including net interest income at risk analysis and economic value of equity risk analysis) and inflation; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------|

|   | · | changes in accounting policies and practices; |
|--------|--------|-----------------------------------------------|

|   | · | the ability of our internal controls and procedures to prevent acts intended to defraud, misappropriate assets, or circumvent applicable law or our system of controls; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | risks associated with potential interruptions or breaches with respect to our information systems; |
|--------|--------|----------------------------------------------------------------------------------------------------|

|   | · | the exposure of our business to hurricanes and other natural disasters; |
|--------|--------|-------------------------------------------------------------------------|

|   | · | ability to redeem the Series 2008-T Preferred Stock and the warrant sold to the U.S. Treasury; |
|--------|--------|------------------------------------------------------------------------------------------------|

|   | · | competition in the banking industry and demand for our products and services; |
|--------|--------|-------------------------------------------------------------------------------|

|   | · | changes in the financial performance and/or condition of the borrowers of the subsidiary bank, Carolina First Bank; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------|

|   | · | increases in FDIC premiums due to market developments and regulatory changes; |
|--------|--------|-------------------------------------------------------------------------------|

|   | · | level, composition, and repricing characteristics of the securities portfolio; |
|--------|--------|--------------------------------------------------------------------------------|

|   | · | fluctuations in consumer spending; |
|--------|--------|------------------------------------|

|   | · | increased competition in our markets; |
|--------|--------|---------------------------------------|

|   | · | income and expense projections, ability to control expenses, and expense reduction initiatives; |
|--------|--------|-------------------------------------------------------------------------------------------------|

|   | · | changes in the compensation, benefit, and incentive plans, including compensation accruals; |
|--------|--------|---------------------------------------------------------------------------------------------|

|   | · | risks associated with income taxes, including the potential for adverse adjustments and the inability to reverse valuation allowances on deferred tax assets; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | acquisitions, greater than expected deposit attrition or customer loss, inaccuracy of related cost savings estimates, inaccuracy of estimates of financial results, and unanticipated integration issues; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | valuation of goodwill and intangibles and any potential future impairment; |
|--------|--------|----------------------------------------------------------------------------|

|   | · | significant delay or inability to execute strategic initiatives designed to grow revenues; |
|--------|--------|--------------------------------------------------------------------------------------------|

|   | · | changes in management’s assessment of and strategies for lines of business, asset, and deposit categories; |
|--------|--------|------------------------------------------------------------------------------------------------------------------|

|   | · | changes in the evaluation of the effectiveness of our hedging strategies or access to derivative instruments; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------|

|   | · | changes, costs, and effects of litigation and environmental remediation. |
|--------|--------|--------------------------------------------------------------------------|

----

Index 

|                                      |   | Year Ended December 31, |     |   | Increase |   |
|-------------------------------------------|--------|-------------------------|----------|--------|----------|--------|
|                                      |   | 2009                    |     |   | 2008     |   |   | (Decrease) |   |
| Net interest income                       |   | $                       | 331,532  |   |     | $      | 380,163 |   |   | $ | (48,631 | ) |
| Provision for credit losses               |   |                    | 668,904  |   |     |   | 344,589 |   |   |   | 324,315 |   |
| Noninterest income                        |   |                    | 118,033  |   |     |   | 121,967 |   |   |   | (3,934 | ) |
| Noninterest expenses                      |   |                    | 419,121  |   |     |   | 792,233 |   |   |   | (373,112 | ) |
| Income tax expense (benefit)              |   |                    | 37,794   |   |     |   | (87,574 | ) |   |   | 125,368 |   |
| Net loss                                  |   |                    | (676,254 | )      |     |   | (547,118 | ) |   |   | (129,136 | ) |
| Preferred stock dividends and other       |   |                    | (60,689  | )      |     |   | (21,658 | ) |   |   | (39,031 | ) |
| Net loss available to common shareholders |   | $                       | (736,943 | )      |     | $      | (568,776 | ) |   | $ | (168,167 | ) |
|                                      |   |                    |     |   |     |   |   |   |   |   |   |   |
| Loss per common share, diluted            |   | $                       | (5.22    | )      |     | $      | (7.78 | ) |   | $ | 2.56 |   |

----

Index 

----

Index 

----

Index 

----

Index 

----

Index 

----

Index 

----

Index 

| Table 1                                           |   |
|---------------------------------------------------|--------|
| Loan Portfolio Composition Based on Loan Purpose  |   |
| (dollars in thousands)                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                              |   | December 31, |   |
|                                              |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |
| Commercial Loans                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial and industrial                         |   | $ | 2,080,329 |   |   | $ | 2,722,611 |   |   | $ | 2,742,863 |   |   | $ | 2,491,210 |   |   | $ | 2,258,789 |   |
| Commercial owner - occupied real estate           |   |   | 1,271,525 |   |   |   | 1,270,746 |   |   |   | 1,070,376 |   |   |   | 830,179 |   |   |   | 801,953 |   |
| Commercial real estate (1)                        |   |   | 3,501,809 |   |   |   | 4,074,331 |   |   |   | 4,158,384 |   |   |   | 4,171,631 |   |   |   | 3,933,927 |   |
|                                              |   |   | 6,853,663 |   |   |   | 8,067,688 |   |   |   | 7,971,623 |   |   |   | 7,493,020 |   |   |   | 6,994,669 |   |
| Consumer Loans                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Indirect - sales finance                          |   |   | 230,426 |   |   |   | 635,637 |   |   |   | 699,014 |   |   |   | 660,401 |   |   |   | 916,318 |   |
| Consumer lot loans                                |   |   | 144,315 |   |   |   | 225,486 |   |   |   | 311,386 |   |   |   | 357,325 |   |   |   | 310,532 |   |
| Direct retail                                     |   |   | 83,460 |   |   |   | 95,397 |   |   |   | 107,827 |   |   |   | 98,181 |   |   |   | 107,295 |   |
| Home equity                                       |   |   | 787,645 |   |   |   | 813,201 |   |   |   | 754,158 |   |   |   | 512,881 |   |   |   | 553,194 |   |
|                                              |   |   | 1,245,846 |   |   |   | 1,769,721 |   |   |   | 1,872,385 |   |   |   | 1,628,788 |   |   |   | 1,887,339 |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage Loans                                    |   |   | 286,618 |   |   |   | 354,663 |   |   |   | 369,412 |   |   |   | 580,059 |   |   |   | 557,387 |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Total loans held for investment |   | $ | 8,386,127 |   |   | $ | 10,192,072 |   |   | $ | 10,213,420 |   |   | $ | 9,701,867 |   |   | $ | 9,439,395 |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Percentage of Loans Held for Investment           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial and industrial                         |   |   | 24.8 | % |   |   | 26.7 | % |   |   | 26.9 | % |   |   | 25.7 | % |   |   | 23.9 | % |
| Commercial owner - occupied real estate           |   |   | 15.2 |   |   |   | 12.5 |   |   |   | 10.5 |   |   |   | 8.6 |   |   |   | 8.5 |   |
| Commercial real estate                            |   |   | 41.8 |   |   |   | 40.0 |   |   |   | 40.7 |   |   |   | 43.0 |   |   |   | 41.7 |   |
| Consumer                                          |   |   | 14.8 |   |   |   | 17.3 |   |   |   | 18.3 |   |   |   | 16.7 |   |   |   | 20.0 |   |
| Mortgage                                          |   |   | 3.4 |   |   |   | 3.5 |   |   |   | 3.6 |   |   |   | 6.0 |   |   |   | 5.9 |   |
| Total                                             |   |   | 100.0 | % |   |   | 100.0 | % |   |   | 100.0 | % |   |   | 100.0 | % |   |   | 100.0 | % |

|  (1) | See “Commercial Real Estate Concentration,” “Credit Quality,” and “Allowance for Loan Losses and Reserve for Unfunded Lending Commitments” for more detail on commercial real estate loans. |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index 

----

Index 

| Table 2                                         |   |
|-------------------------------------------------|--------|
| Selected Loan Maturity and Interest Sensitivity |   |
| (dollars in thousands)                          |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            |   |   |   |   | Over One But |   |   | Over |   |   |   |   |   |
|                                            |   | One Year |   |   | Less Than |   |   | Five |   |   |   |   |   |
|                                            |   | or Less |   |   | Five Years |   |   | Years |   |   | Total |   |
| Commercial and industrial                       |   | $ | 892,601 |   |   | $ | 930,709 |   |   | $ | 257,019 |   |   | $ | 2,080,329 |   |
| Commercial owner - occupied real estate         |   |   | 128,988 |   |   |   | 688,561 |   |   |   | 453,976 |   |   |   | 1,271,525 |   |
| Commercial real estate                          |   |   | 1,221,652 |   |   |   | 1,780,862 |   |   |   | 499,295 |   |   |   | 3,501,809 |   |
| Total of loans with:                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Floating interest rates (1)                     |   |   | 1,702,461 |   |   |   | 1,799,753 |   |   |   | 598,516 |   |   |   | 4,100,730 |   |
| Predetermined interest rates                    |   |   | 540,780 |   |   |   | 1,600,379 |   |   |   | 611,774 |   |   |   | 2,752,933 |   |

| (1) | TSFG has entered into swaps to hedge the forecasted interest income from certain prime-based and LIBOR-based loans. The notional amount of the swaps totaled $780.0 million at December 31, 2009. Swaps totaling $265.0 million were terminated or dedesignated in first quarter 2010. Additionally, loans with floating rates, primarily limited to prime or LIBOR, included loans with floors totaling $1.3 billion with an average floor of 5.10%. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Table 3                                     |   |
|---------------------------------------------|--------|
| Loan Relationships Greater than $20 Million |   |
|                                        |   |   |   |   |   |   |   |   |   |
|                                        |   |   |   |   |   | Outstanding Principal Balance |   |
|                                        |   | Numberof Borrowers |   | TotalCommitment |   | Amount |   | Percentage ofLoans Heldfor Investment |   |
| December 31, 2009                           |   |   | 40 |   | $1.1 billion |   | $0.8 billion |   |   | 9.9 | % |
| December 31, 2008                           |   |   | 53 |   | 1.6 billion |   | 1.1 billion |   |   | 10.3 |   |

| Commercial Real Estate Product |   | Description                                                                                                                                         |
|--------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|
| Completed income property      |   | Loans to finance a variety of income producing properties, including apartments, retail centers, hotels, office buildings and industrial facilities |
| Residential A&D            |   | Loans to develop land into residential lots                                                                                                         |
| Commercial A&D             |   | Loans to finance the development of raw land into sellable commercial lots                                                                          |
| Commercial construction        |   | Loans to finance the construction of various types of income property                                                                               |
| Residential construction       |   | Loans to construct single family housing; primarily to residential builders                                                                         |
| Residential condo              |   | Loans to construct or convert residential condominiums                                                                                              |
| Undeveloped land               |   | Loans to acquire land for resale or future development                                                                                              |

----

Index 

| Table 4                                                  |   |
|----------------------------------------------------------|--------|
| Selected Characteristics of Commercial Real Estate Loans |   |
| (dollars in thousands)                                   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   | December 31, 2009 |   |
|                                                     |   |   |   |   | Weighted Average |   | Weighted |   | Largest |   |
|                                                     |   |   |   |   | Time to Maturity |   | Average |   | Ten |   |
| Commercial Real Estate Product Type                      |   | Policy LTV |   | (in months) |   | Loan Size |   | Total O/S |   |
| Completed income property (1)                            |   |   | 80 | % |   |   | 35.8 |   |   | $ | 533 |   |   | $ | 147,678 |   |
| Residential A&D                                      |   |   | 75 |   |   |   | 8.3 |   |   |   | 515 |   |   |   | 85,937 |   |
| Commercial A&D                                       |   |   | 75 |   |   |   | 7.1 |   |   |   | 964 |   |   |   | 58,745 |   |
| Commercial construction                                  |   |   | 80 |   |   |   | 37.7 |   |   |   | 2,642 |   |   |   | 89,632 |   |
| Residential construction                                 |   |   | 80 |   |   |   | 10.4 |   |   |   | 239 |   |   |   | 40,825 |   |
| Residential condo                                        |   |   | 80 |   |   |   | 8.0 |   |   |   | 1,031 |   |   |   | 90,090 |   |
| Undeveloped land                                         |   |   | 65 |   |   |   | 9.5 |   |   |   | 645 |   |   |   | 55,330 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Overall                                                  |   |   |   |   |   |   | 28.1 |   |   | $ | 585 |   |   | $ | 568,237 |   |

| (1) | The policy LTV on completed income property was changed to 80% from 85% in December 2009. |
|-----|-------------------------------------------------------------------------------------------|

----

Index 

|   | · | Funds are being advanced to increase the loan above the originally committed loan amount and the appraisal is more than 18 months old; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Loan is downgraded to substandard or worse, and the appraisal is more than three years old or significant adverse changes have occurred in the market where the property is located; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Loan is downgraded to watch, and the appraisal is more than five years old or significant adverse changes have occurred in the market where the property is located; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Loan is restructured to advance additional funds or extend the original amortization term, and the appraisal is over three years old or significant adverse changes have occurred in the market where the property is located; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Property is being cross-pledged to another loan (other than an abundance of caution), and the appraisal is over three years old or significant adverse changes have occurred in the market where the property is located. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index 

| Table 5                                                        |   |
|----------------------------------------------------------------|--------|
| Commercial Real Estate Loans by Geographic Diversification (1) |   |
| (dollars in thousands)                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                           |   | December 31, 2009 |   |   | December 31, 2008 |   |
|                                                           |   |   |   |   | % of |   |   |   |   |   | % of |   |
|                                                           |   | Balance |   |   | Total |   |   | Balance |   |   | Total |   |
| South Carolina, excluding Coastal:                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Upstate South Carolina (Greenville)                            |   | $ | 569,018 |   |   |   | 16.2 | % |   | $ | 539,920 |   |   |   | 13.3 | % |
| Midlands South Carolina (Columbia)                             |   |   | 232,088 |   |   |   | 6.6 |   |   |   | 238,285 |   |   |   | 5.9 |   |
| Greater South Charlotte South Carolina (Rock Hill)             |   |   | 142,114 |   |   |   | 4.1 |   |   |   | 164,709 |   |   |   | 4.0 |   |
| Coastal South Carolina:                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| North Coastal South Carolina (Myrtle Beach)                    |   |   | 331,819 |   |   |   | 9.5 |   |   |   | 401,325 |   |   |   | 9.9 |   |
| South Coastal South Carolina (Charleston)                      |   |   | 292,207 |   |   |   | 8.3 |   |   |   | 268,951 |   |   |   | 6.6 |   |
| Western North Carolina (Hendersonville/Asheville)              |   |   | 639,264 |   |   |   | 18.3 |   |   |   | 762,559 |   |   |   | 18.7 |   |
| Central Florida (Orlando/Ocala)                                |   |   | 356,239 |   |   |   | 10.2 |   |   |   | 431,260 |   |   |   | 10.6 |   |
| North Florida:                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Northeast Florida (Jacksonville)                               |   |   | 219,202 |   |   |   | 6.3 |   |   |   | 276,942 |   |   |   | 6.8 |   |
| North Central Florida                                          |   |   | 271,085 |   |   |   | 7.7 |   |   |   | 311,426 |   |   |   | 7.6 |   |
| South Florida (Ft. Lauderdale)                                 |   |   | 198,874 |   |   |   | 5.7 |   |   |   | 232,437 |   |   |   | 5.7 |   |
| Tampa Bay Florida                                              |   |   | 249,899 |   |   |   | 7.1 |   |   |   | 446,517 |   |   |   | 11.0 |   |
| Total commercial real estate loans                             |   | $ | 3,501,809 |   |   |   | 100.0 | % |   | $ | 4,074,331 |   |   |   | 100.1 | % |

| (1) | Geography is primarily determined by the originating operating geographic market and not necessarily the ultimate location of the underlying collateral. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| Table 6                                                    |   |
|------------------------------------------------------------|--------|
| Commercial Real Estate Loans by Geography and Product Type |   |
| (dollars in thousands)                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                       |   | December 31, 2009 Commercial Real Estate Loans by Geography |   |
|                                                       |   | SC, Excl |   |   | Coastal |   |   | Western |   |   | Central |   |   | North |   |   | South |   |   | Tampa |   |   | Total |   |   | % of |   |
|                                                       |   | Coastal |   |   | SC |   |   | NC |   |   | FL |   |   | FL |   |   | FL |   |   | Bay |   |   | CRE |   |   | LHFI |   |
| Commercial Real Estate                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans by Product Type                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Completed income property                                  |   | $ | 566,178 |   |   | $ | 428,243 |   |   | $ | 380,430 |   |   | $ | 204,184 |   |   | $ | 346,489 |   |   | $ | 131,096 |   |   | $ | 113,709 |   |   | $ | 2,170,329 |   |   |   | 25.9 | % |
| Residential A&D                                        |   |   | 64,999 |   |   |   | 51,002 |   |   |   | 129,540 |   |   |   | 19,292 |   |   |   | 43,308 |   |   |   | 11,798 |   |   |   | 33,204 |   |   |   | 353,143 |   |   |   | 4.2 |   |
| Commercial A&D                                         |   |   | 31,742 |   |   |   | 27,243 |   |   |   | 33,199 |   |   |   | 24,034 |   |   |   | 5,480 |   |   |   | 15,355 |   |   |   | 21,070 |   |   |   | 158,123 |   |   |   | 1.9 |   |
| Commercial construction                                    |   |   | 188,376 |   |   |   | 14,193 |   |   |   | 23,231 |   |   |   | 37,441 |   |   |   | 15,284 |   |   |   | 9,375 |   |   |   | 29,081 |   |   |   | 316,981 |   |   |   | 3.8 |   |
| Residential construction                                   |   |   | 39,786 |   |   |   | 6,541 |   |   |   | 14,802 |   |   |   | 8,815 |   |   |   | 10,629 |   |   |   | 5,037 |   |   |   | 3,313 |   |   |   | 88,923 |   |   |   | 1.1 |   |
| Residential condo                                          |   |   | 12,430 |   |   |   | 36,941 |   |   |   | 7,597 |   |   |   | 11,884 |   |   |   | 29,927 |   |   |   | 16,033 |   |   |   | 13,021 |   |   |   | 127,833 |   |   |   | 1.5 |   |
| Undeveloped land                                           |   |   | 39,709 |   |   |   | 59,863 |   |   |   | 50,465 |   |   |   | 50,589 |   |   |   | 39,170 |   |   |   | 10,180 |   |   |   | 36,501 |   |   |   | 286,477 |   |   |   | 3.4 |   |
| Total CRE Loans                                            |   | $ | 943,220 |   |   | $ | 624,026 |   |   | $ | 639,264 |   |   | $ | 356,239 |   |   | $ | 490,287 |   |   | $ | 198,874 |   |   | $ | 249,899 |   |   | $ | 3,501,809 |   |   |   | 41.8 | % |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CRE Loans as % of Total Loans HFI                          |   |   | 11.3 | % |   |   | 7.4 | % |   |   | 7.6 | % |   |   | 4.3 | % |   |   | 5.8 | % |   |   | 2.4 | % |   |   | 3.0 | % |   |   | 41.8 | % |   |   |   |   |

----

Index 

| Table 7                                                                           |
|-----------------------------------------------------------------------------------|
| Credit Quality Indicators                                                         |
| (dollars in thousands)                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                              |   | December 31, |
|                                                                              |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |
| Loans held for sale                                                               |   | $ | 15,758 |   |   | $ | 30,963 |   |   | $ | 17,867 |   |   | $ | 28,556 |   |   | $ | 37,171 |   |
| Loans held for investment                                                         |   |   | 8,386,127 |   |   |   | 10,192,072 |   |   |   | 10,213,420 |   |   |   | 9,701,867 |   |   |   | 9,439,395 |   |
| Allowance for loan losses                                                         |   |   | 365,642 |   |   |   | 247,086 |   |   |   | 126,427 |   |   |   | 111,663 |   |   |   | 107,767 |   |
| Allowance for credit losses (1)                                                   |   |   | 373,126 |   |   |   | 249,874 |   |   |   | 128,695 |   |   |   | 112,688 |   |   |   | 109,350 |   |
|                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nonaccrual loans - commercial and industrial                                      |   | $ | 77,527 |   |   | $ | 35,998 |   |   | $ | 22,963 |   |   | $ | 7,052 |   |   | $ | 25,145 |   |
| Nonaccrual loans - commercial owner - occupied real estate                        |   |   | 43,701 |   |   |   | 14,876 |   |   |   | 4,085 |   |   |   | 4,512 |   |   | included above |
| Nonaccrual loans - commercial real estate                                         |   |   | 240,377 |   |   |   | 230,373 |   |   |   | 36,634 |   |   |   | 16,913 |   |   | included above |
| Nonaccrual loans - consumer                                                       |   |   | 16,314 |   |   |   | 39,009 |   |   |   | 11,606 |   |   |   | 5,250 |   |   |   | 3,417 |   |
| Nonaccrual loans - mortgage                                                       |   |   | 21,127 |   |   |   | 29,126 |   |   |   | 4,903 |   |   |   | 3,441 |   |   |   | 4,693 |   |
| Total nonperforming loans held for investment (2)                                 |   |   | 399,046 |   |   |   | 349,382 |   |   |   | 80,191 |   |   |   | 37,168 |   |   |   | 33,255 |   |
| Nonperforming loans held for sale - CRE                                           |   |   | - |   |   |   | 16,282 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Foreclosed property (other real estate owned and personal property repossessions) |   |   | 123,314 |   |   |   | 48,993 |   |   |   | 8,276 |   |   |   | 4,341 |   |   |   | 10,722 |   |
| Total nonperforming assets                                                        |   | $ | 522,360 |   |   | $ | 414,657 |   |   | $ | 88,467 |   |   | $ | 41,509 |   |   | $ | 43,977 |   |
|                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Restructured loans accruing interest (2)                                          |   | $ | 26,128 |   |   | $ | 6,249 |   |   | $ | 1,440 |   |   | $ | - |   |   | $ | - |   |
| Loans past due 90 days or more (interest accruing)                                |   | $ | 10,465 |   |   | $ | 47,481 |   |   | $ | 5,349 |   |   | $ | 3,129 |   |   | $ | 4,548 |   |
|                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total nonperforming assets as a percentage of loans and foreclosed property       |   |   | 6.13 | % |   |   | 4.04 | % |   |   | 0.86 | % |   |   | 0.43 | % |   |   | 0.46 | % |
| Total nonperforming assets as a percentage of total assets                        |   |   | 4.39 |   |   |   | 3.05 |   |   |   | 0.64 |   |   |   | 0.29 |   |   |   | 0.31 |   |
| Allowance for loan losses as a percentage of loans held for investment            |   |   | 4.36 |   |   |   | 2.42 |   |   |   | 1.24 |   |   |   | 1.15 |   |   |   | 1.14 |   |
| Allowance for credit losses as a percentage of loans held for investment          |   |   | 4.45 |   |   |   | 2.45 |   |   |   | 1.26 |   |   |   | 1.16 |   |   |   | 1.16 |   |
| Allowance for loan losses to nonperforming loans held for investment              |   |   | 0.92 | x |   |   | 0.71 | x |   |   | 1.58 | x |   |   | 3.00 | x |   |   | 3.24 | x |

| (1) | The allowance for credit losses is the sum of the allowance for loan losses and the reserve for unfunded lending commitments. |
|-----|-------------------------------------------------------------------------------------------------------------------------------|

| (2) | During 2009, TSFG began excluding restructured loans accruing interest from its nonperforming loans. Amounts for prior periods have been reclassified to conform to the current presentation. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index 

| Table 8                                                |   |
|--------------------------------------------------------|--------|
| Commercial Real Estate Nonaccrual Loans                |   |
| (dollars in thousands)                                 |   |
|                                                   |   | December 31, 2009 CRE Nonaccrual Loans HFI ("NAL") by Geography |   |
|                                                   |   | SC, Excl |   |   | Coastal |   |   | Western |   |   | Central |   |   | North |   |   | South |   |   | Tampa |   |   | Total |   |   | % of |   |
|                                                   |   | Coastal |   |   | SC |   |   | NC |   |   | FL |   |   | FL |   |   | FL |   |   | Bay |   |   | CRE NAL |   |   | NAL |   |
| CRE Nonaccrual Loans by                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Product Type                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Completed income property                              |   | $ | 10,757 |   |   | $ | 9,307 |   |   | $ | 21,270 |   |   | $ | 4,333 |   |   | $ | 5,562 |   |   | $ | 3,613 |   |   | $ | 12,986 |   |   | $ | 67,828 |   |   |   | 17.0 | % |
| Residential A&D                                    |   |   | 9,947 |   |   |   | 6,235 |   |   |   | 22,821 |   |   |   | 4,576 |   |   |   | 5,790 |   |   |   | 1,092 |   |   |   | 5,302 |   |   |   | 55,763 |   |   |   | 14.0 |   |
| Commercial A&D                                     |   |   | 1,788 |   |   |   | 670 |   |   |   | 2,074 |   |   |   | 960 |   |   |   | - |   |   |   | 608 |   |   |   | 17,677 |   |   |   | 23,777 |   |   |   | 5.9 |   |
| Commercial construction                                |   |   | 15,029 |   |   |   | - |   |   |   | 4,161 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,184 |   |   |   | 24,374 |   |   |   | 6.1 |   |
| Residential construction                               |   |   | 730 |   |   |   | 464 |   |   |   | 2,409 |   |   |   | 6,637 |   |   |   | 2,689 |   |   |   | - |   |   |   | 892 |   |   |   | 13,821 |   |   |   | 3.5 |   |
| Residential condo                                      |   |   | 2,496 |   |   |   | 13,850 |   |   |   | 654 |   |   |   | 720 |   |   |   | 8 |   |   |   | 75 |   |   |   | 2,850 |   |   |   | 20,653 |   |   |   | 5.2 |   |
| Undeveloped land                                       |   |   | 4,582 |   |   |   | 2,295 |   |   |   | 1,418 |   |   |   | 2,276 |   |   |   | 10,768 |   |   |   | 5,050 |   |   |   | 7,772 |   |   |   | 34,161 |   |   |   | 8.5 |   |
|  Total CRE Nonaccrual Loans                       |   | $ | 45,329 |   |   | $ | 32,821 |   |   | $ | 54,807 |   |   | $ | 19,502 |   |   | $ | 24,817 |   |   | $ | 10,438 |   |   | $ | 52,663 |   |   | $ | 240,377 |   |   |   | 60.2 | % |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CRE Nonaccrual Loans as %of Total Nonaccrual Loans HFI |   |   | 11.4 | % |   |   | 8.2 | % |   |   | 13.7 | % |   |   | 4.9 | % |   |   | 6.2 | % |   |   | 2.6 | % |   |   | 13.2 | % |   |   | 60.2 | % |   |   |   |   |

| Table 9                                                                       |   |
|-------------------------------------------------------------------------------|--------|
| Commercial Real Estate Loans Past Due 30 Days or More (excluding nonaccruals) |   |
| (dollars in thousands)                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                          |   | December 31, 2009 |   |   | December 31, 2008 |   |
|                                                                          |   | Balance |   |   | % of CRE |   |   | Balance |   |   | % of CRE |   |
| North Carolina                                                                |   | $ | 17,747 |   |   |   | 0.51 | % |   | $ | 21,364 |   |   |   | 0.53 | % |
| South Carolina                                                                |   |   | 23,714 |   |   |   | 0.68 |   |   |   | 34,268 |   |   |   | 0.84 |   |
| Florida                                                                       |   |   | 71,877 |   |   |   | 2.05 |   |   |   | 44,471 |   |   |   | 1.09 |   |
| Total CRE loans past due 30 days or more                                      |   | $ | 113,338 |   |   |   | 3.24 | % |   | $ | 100,103 |   |   |   | 2.46 | % |

----

Index 

| Table 10                                             |
|------------------------------------------------------|
| Potential Problem Loans                              |
| (dollars in thousands)                               |
|                                                 |   | December 31, 2009 |   | December 31, 2008 |
|                                                 |   | Outstanding Principal Balance |   | Outstanding Principal Balance |
|                                                 |   |   |   |   |   |   |   | % of Loans |   |   |   |   |   |   |   |   | % of Loans |   |
|                                                 |   | Number |   |   |   |   |   | Held for |   |   | Number |   |   |   |   |   | Held for |   |
|                                                 |   | of Loans |   |   | Amount |   |   | Investment |   |   | of Loans |   |   | Amount |   |   | Investment |   |
| Large potential problem loans ($5 million or more)   |   |   | 40 |   |   | $ | 377,230 |   |   |   | 4.50 | % |   |   | 23 |   |   | $ | 217,688 |   |   |   | 2.13 | % |
| Small potential problem loans (less than $5 million) |   |   | 1,112 |   |   |   | 558,700 |   |   |   | 6.66 |   |   |   | 732 |   |   |   | 282,189 |   |   |   | 2.77 |   |
| Total potential problem loans (1)                    |   |   | 1,152 |   |   | $ | 935,930 |   |   |   | 11.16 | % |   |   | 755 |   |   | $ | 499,877 |   |   |   | 4.90 | % |

| (1) | Includes commercial and industrial, commercial real estate, and owner-occupied real estate. |
|-----|---------------------------------------------------------------------------------------------|

| Level I     |   | General allowance calculated based upon historical losses             |
|-------------|--------|-----------------------------------------------------------------------|
| Level II    |   | Specific reserves for individually impaired loans                     |
| Level III   |   | Subjective/judgmental adjustments for economic and other risk factors |
| Unfunded    |   | Reserves for off-balance sheet (unadvanced) exposure                  |
| Unallocated |   | Represents the imprecision inherent in the previous calculations      |
| Total       |   | Represents summation of all reserves                                  |

----

Index 

----

Index 

----

Index 

| Table 11                                                             |   |
|----------------------------------------------------------------------|--------|
| Summary of Loan Loss Experience                                      |   |
| (dollars in thousands)                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                 |   | December 31, |   |
|                                                                 |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |
| Allowance for loan losses, beginning of year                         |   | $ | 247,086 |   |   | $ | 126,427 |   |   | $ | 111,663 |   |   | $ | 107,767 |   |   | $ | 96,434 |   |
| Purchase accounting adjustments                                      |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3,741 |   |
| Allowance adjustment for loans sold                                  |   |   | (4,471 | ) |   |   | - |   |   |   | - |   |   |   | (3,089 | ) |   |   | - |   |
| Charge-offs:                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial and industrial                                            |   |   | 137,909 |   |   |   | 44,647 |   |   |   | 18,651 |   |   |   | 16,440 |   |   |   | 22,989 |   |
| Commercial owner-occupied real estate                                |   |   | 18,197 |   |   |   | 3,671 |   |   |   | 2,576 |   |   |   | 1,693 |   |   |   | 652 |   |
| Commercial real estate                                               |   |   | 301,607 |   |   |   | 135,414 |   |   |   | 12,714 |   |   |   | 10,638 |   |   |   | 7,436 |   |
| Indirect - sales finance                                             |   |   | 14,272 |   |   |   | 14,927 |   |   |   | 6,582 |   |   |   | 4,205 |   |   |   | 4,658 |   |
| Consumer lot loans                                                   |   |   | 37,544 |   |   |   | 14,349 |   |   |   | 15,225 |   |   |   | 83 |   |   |   | 7 |   |
| Direct retail                                                        |   |   | 4,346 |   |   |   | 731 |   |   |   | 1,117 |   |   |   | 1,468 |   |   |   | 1,221 |   |
| Home equity                                                          |   |   | 18,818 |   |   |   | 6,239 |   |   |   | 1,284 |   |   |   | 1,452 |   |   |   | 1,428 |   |
| Mortgage loans                                                       |   |   | 23,892 |   |   |   | 10,983 |   |   |   | 1,259 |   |   |   | 644 |   |   |   | 823 |   |
| Total loans charged-off                                              |   |   | 556,585 |   |   |   | 230,961 |   |   |   | 59,408 |   |   |   | 36,623 |   |   |   | 39,214 |   |
| Recoveries:                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial and industrial                                            |   |   | 4,736 |   |   |   | 2,577 |   |   |   | 3,898 |   |   |   | 6,522 |   |   |   | 4,652 |   |
| Commercial owner-occupied real estate                                |   |   | 342 |   |   |   | 179 |   |   |   | 270 |   |   |   | 739 |   |   |   | 73 |   |
| Commercial real estate                                               |   |   | 4,927 |   |   |   | 2,544 |   |   |   | 1,440 |   |   |   | 1,699 |   |   |   | 1,269 |   |
| Indirect - sales finance                                             |   |   | 1,220 |   |   |   | 794 |   |   |   | 538 |   |   |   | 746 |   |   |   | 522 |   |
| Consumer lot loans                                                   |   |   | 3,181 |   |   |   | 680 |   |   |   | 9 |   |   |   | 3 |   |   |   | 4 |   |
| Direct retail                                                        |   |   | 272 |   |   |   | - |   |   |   | 339 |   |   |   | 311 |   |   |   | 325 |   |
| Home equity                                                          |   |   | 430 |   |   |   | 180 |   |   |   | 285 |   |   |   | 241 |   |   |   | 379 |   |
| Mortgage loans                                                       |   |   | 296 |   |   |   | 597 |   |   |   | 68 |   |   |   | - |   |   |   | 89 |   |
| Total loans recovered                                                |   |   | 15,404 |   |   |   | 7,551 |   |   |   | 6,847 |   |   |   | 10,261 |   |   |   | 7,313 |   |
| Net charge-offs                                                      |   |   | 541,181 |   |   |   | 223,410 |   |   |   | 52,561 |   |   |   | 26,362 |   |   |   | 31,901 |   |
| Additions through provision expense                                  |   |   | 664,208 |   |   |   | 344,069 |   |   |   | 67,325 |   |   |   | 33,347 |   |   |   | 39,493 |   |
| Allowance for loan losses, end of year                               |   | $ | 365,642 |   |   | $ | 247,086 |   |   | $ | 126,427 |   |   | $ | 111,663 |   |   | $ | 107,767 |   |
|                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average loans held for investment                                    |   | $ | 9,456,636 |   |   | $ | 10,351,897 |   |   | $ | 9,985,751 |   |   | $ | 9,581,602 |   |   | $ | 8,848,279 |   |
| Loans held for investment (period end)                               |   |   | 8,386,127 |   |   |   | 10,192,072 |   |   |   | 10,213,420 |   |   |   | 9,701,867 |   |   |   | 9,439,395 |   |
| Net charge-offs as a percentage of average loans held for investment |   |   | 5.72 | % |   |   | 2.16 | % |   |   | 0.53 | % |   |   | 0.28 | % |   |   | 0.36 | % |

| Table 12                                 |   |
|------------------------------------------|--------|
| Composition of Allowance for Loan Losses |   |
| (dollars in thousands)                   |   |   |
|                                     |   | December 31, |   |
|                                     |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |
| Commercial and industrial                |   | $ | 88,577 |   |   | $ | 58,712 |   |   | $ | 35,834 |   |   | $ | 32,004 |   |   | $ | 27,130 |   |
| Commercial owner-occupied real estate    |   |   | 53,282 |   |   |   | 27,533 |   |   |   | 14,875 |   |   |   | 10,321 |   |   |   | 10,599 |   |
| Commercial real estate                   |   |   | 156,897 |   |   |   | 108,125 |   |   |   | 56,519 |   |   |   | 52,080 |   |   |   | 45,957 |   |
| Indirect - sales finance                 |   |   | 7,093 |   |   |   | 9,750 |   |   |   | 6,499 |   |   |   | 4,623 |   |   |   | 8,825 |   |
| Consumer lot loans                       |   |   | 11,776 |   |   |   | 7,470 |   |   |   | 879 |   |   |   | 1,201 |   |   |   | 1,777 |   |
| Direct retail                            |   |   | 2,927 |   |   |   | 3,160 |   |   |   | 304 |   |   |   | 330 |   |   |   | 614 |   |
| Home equity                              |   |   | 12,681 |   |   |   | 12,154 |   |   |   | 2,369 |   |   |   | 2,256 |   |   |   | 3,309 |   |
| Mortgage loans                           |   |   | 11,069 |   |   |   | 6,245 |   |   |   | 3,132 |   |   |   | 2,487 |   |   |   | 3,965 |   |
| Unallocated                              |   |   | 21,340 |   |   |   | 13,937 |   |   |   | 6,016 |   |   |   | 6,361 |   |   |   | 5,591 |   |
| Total                                    |   | $ | 365,642 |   |   | $ | 247,086 |   |   | $ | 126,427 |   |   | $ | 111,663 |   |   | $ | 107,767 |   |

----

Index 

| Table 13                              |   |
|---------------------------------------|--------|
| CRE Net Charge-Offs by Product Type   |   |
| (dollars in thousands)                |   |
|                                  |   | Year Ended December 31, 2009 CRE Net Charge-Offs ("NCO") by Geography |   |
|                                  |   | SC, Excl |   |   | Coastal |   |   | Western |   |   | Central |   |   | North |   |   | South |   |   | Tampa |   |   | Total |   |   | % of |   |
|                                  |   | Coastal |   |   | SC |   |   | NC |   |   | FL |   |   | FL |   |   | FL |   |   | Bay |   |   | CRE NCO |   |   | NCO |   |
| CRE Net Charge-Offs by                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Product Type                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Completed income property             |   | $ | 6,368 |   |   | $ | 14,536 |   |   | $ | 11,995 |   |   | $ | 5,687 |   |   | $ | 679 |   |   | $ | 11,286 |   |   | $ | 17,630 |   |   | $ | 68,181 |   |   |   | 12.6 | % |
| Residential A&D                   |   |   | 24,006 |   |   |   | 5,638 |   |   |   | 9,507 |   |   |   | 3,893 |   |   |   | 15,964 |   |   |   | 1,837 |   |   |   | 13,194 |   |   |   | 74,039 |   |   |   | 13.7 |   |
| Commercial A&D                    |   |   | 1,364 |   |   |   | 1,899 |   |   |   | 1,058 |   |   |   | 4,474 |   |   |   | 398 |   |   |   | - |   |   |   | 20,131 |   |   |   | 29,324 |   |   |   | 5.4 |   |
| Commercial construction               |   |   | - |   |   |   | 150 |   |   |   | 53 |   |   |   | - |   |   |   | - |   |   |   | 123 |   |   |   | 8,337 |   |   |   | 8,663 |   |   |   | 1.6 |   |
| Residential construction              |   |   | 5,089 |   |   |   | 10,321 |   |   |   | 2,627 |   |   |   | 7,453 |   |   |   | 1,667 |   |   |   | 11 |   |   |   | 2,834 |   |   |   | 30,002 |   |   |   | 5.5 |   |
| Residential condo                     |   |   | 5,461 |   |   |   | 5,070 |   |   |   | 52 |   |   |   | 210 |   |   |   | - |   |   |   | 2,750 |   |   |   | 4,102 |   |   |   | 17,645 |   |   |   | 3.3 |   |
| Undeveloped land                      |   |   | 6,882 |   |   |   | 83 |   |   |   | 1,030 |   |   |   | 14,330 |   |   |   | 11,274 |   |   |   | 9,235 |   |   |   | 25,992 |   |   |   | 68,826 |   |   |   | 12.7 |   |
|   Total CRE Net Charge-Offs |   | $ | 49,170 |   |   | $ | 37,697 |   |   | $ | 26,322 |   |   | $ | 36,047 |   |   | $ | 29,982 |   |   | $ | 25,242 |   |   | $ | 92,220 |   |   | $ | 296,680 |   |   |   | 54.8 | % |
|                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CRE Net Charge-Offs as %              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| of Total Net Charge-Offs              |   |   | 9.1 | % |   |   | 7.0 | % |   |   | 4.9 | % |   |   | 6.6 | % |   |   | 5.5 | % |   |   | 4.7 | % |   |   | 17.0 | % |   |   | 54.8 | % |   |   |   |   |

----

Index 

| Table 14                                             |   |
|------------------------------------------------------|--------|
| Investment Securities Portfolio Composition          |   |
| (dollars in thousands)                               |   |
|                                                 |   | December 31, |   |
|                                                 |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |
| Trading Account (at fair value)                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Treasury                                        |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 22 |   |
| U.S. Government agencies                             |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 137 |   |
| State and municipal                                  |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,243 |   |
|                                                 |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,402 |   |
| Securities Available for Sale (at fair value)        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Treasury                                        |   |   | 2,045 |   |   |   | 2,069 |   |   |   | 27,592 |   |   |   | 166,719 |   |   |   | 182,468 |   |
| U.S. Government agencies                             |   |   | 79,707 |   |   |   | 313,729 |   |   |   | 503,571 |   |   |   | 653,034 |   |   |   | 656,442 |   |
| Agency residential mortgage-backed securities        |   |   | 1,980,305 |   |   |   | 1,468,639 |   |   |   | 1,088,427 |   |   |   | 1,400,288 |   |   |   | 1,688,862 |   |
| Private label residential mortgage-backed securities |   |   | 8,504 |   |   |   | 12,771 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| State and municipal                                  |   |   | 23,158 |   |   |   | 262,248 |   |   |   | 302,586 |   |   |   | 341,488 |   |   |   | 373,892 |   |
| Other investments: (1)                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Corporate bonds                                      |   |   | - |   |   |   | 9,963 |   |   |   | 20,380 |   |   |   | 113,365 |   |   |   | 112,246 |   |
| Community bank stocks                                |   |   | 399 |   |   |   | 672 |   |   |   | 4,988 |   |   |   | 12,406 |   |   |   | 10,067 |   |
| Other equity investments                             |   |   | 1,283 |   |   |   | 1,567 |   |   |   | 3,335 |   |   |   | 3,910 |   |   |   | 4,037 |   |
|                                                 |   |   | 2,095,401 |   |   |   | 2,071,658 |   |   |   | 1,950,879 |   |   |   | 2,691,210 |   |   |   | 3,028,014 |   |
| Securities Held to Maturity (at amortized cost)      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| State and municipal                                  |   |   | 16,217 |   |   |   | 22,609 |   |   |   | 39,451 |   |   |   | 52,208 |   |   |   | 62,548 |   |
| Agency residential mortgage-backed securities        |   |   | 111,199 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Other investments                                    |   |   | 100 |   |   |   | 100 |   |   |   | 240 |   |   |   | 100 |   |   |   | 100 |   |
|                                                 |   |   | 127,516 |   |   |   | 22,709 |   |   |   | 39,691 |   |   |   | 52,308 |   |   |   | 62,648 |   |
|    Total                              |   | $ | 2,222,917 |   |   | $ | 2,094,367 |   |   | $ | 1,990,570 |   |   | $ | 2,743,518 |   |   | $ | 3,092,064 |   |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total securities as a percentage of total assets     |   |   | 18.7 | % |   |   | 15.4 | % |   |   | 14.3 | % |   |   | 19.3 | % |   |   | 21.6 | % |

| (1) | During 2009, TSFG reclassified FHLB stock from securities available for sale to other assets. Amounts for prior periods have been reclassified to conform to the current presentation. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index 

----

Index 

| Table 15                                                                               |   |
|----------------------------------------------------------------------------------------|--------|
| Investment Securities Portfolio Credit Risk Profile                                    |   |
| (dollars in thousands)                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                   |   | December 31, 2009 |   |   | December 31, 2008 |   |
|                                                                                   |   | Balance |   |   | % of Total |   |   | Balance |   |   | % of Total |   |
| Government and agency                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Treasury                                                                          |   | $ | 2,045 |   |   |   | 0.1 | % |   | $ | 2,069 |   |   |   | 0.1 | % |
| U.S. Government agencies (1)                                                           |   |   | 79,707 |   |   |   | 3.6 |   |   |   | 313,729 |   |   |   | 15.0 |   |
| Agency residential mortgage-backed securities (MBS) (1)(2)                             |   |   | 2,091,504 |   |   |   | 94.0 |   |   |   | 1,468,639 |   |   |   | 70.1 |   |
| Total government and agency                                                            |   |   | 2,173,256 |   |   |   | 97.7 |   |   |   | 1,784,437 |   |   |   | 85.2 |   |
| State and municipal (3)(4)(5)                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Pre-funded with collateral or AAA-rated backed by Texas Permanent School Fund          |   |   | 19,392 |   |   |   | 0.9 |   |   |   | 188,598 |   |   |   | 9.0 |   |
| Underlying issuer or collateral rated A or better (including South Carolina State Aid) |   |   | 15,127 |   |   |   | 0.7 |   |   |   | 81,238 |   |   |   | 3.9 |   |
| Underlying issuer or collateral rated BBB                                              |   |   | 2,337 |   |   |   | 0.1 |   |   |   | 7,344 |   |   |   | 0.3 |   |
| Non-rated                                                                              |   |   | 2,519 |   |   |   | 0.1 |   |   |   | 7,677 |   |   |   | 0.4 |   |
| Total state and municipal                                                              |   |   | 39,375 |   |   |   | 1.8 |   |   |   | 284,857 |   |   |   | 13.6 |   |
| Corporate bonds AA or A-rated                                                          |   |   | - |   |   |   | - |   |   |   | 9,963 |   |   |   | 0.5 |   |
| Private label residential mortgage-backed securities AAA-rated (2)                     |   |   | 8,504 |   |   |   | 0.4 |   |   |   | 12,771 |   |   |   | 0.6 |   |
| Community bank stocks and other                                                        |   |   | 1,782 |   |   |   | 0.1 |   |   |   | 2,339 |   |   |   | 0.1 |   |
| Total securities                                                                       |   | $ | 2,222,917 |   |   |   | 100.0 | % |   | $ | 2,094,367 |   |   |   | 100.0 | % |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Percent of total securities: (4)                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Rated A or higher                                                                      |   |   |   |   |   |   | 99.7 | % |   |   |   |   |   |   | 99.2 | % |
| Investment grade                                                                       |   |   |   |   |   |   | 99.8 |   |   |   |   |   |   |   | 99.5 |   |

| (1) | At December 31, 2009, these amounts include, in the aggregate, $29.4 million and $1.8 billion related to senior debt and MBS, respectively, issued by FNMA and FHLMC. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Current policies restrict MBS/CMO purchases to agency-backed and a small percent of private-label securities and prohibit securities collateralized by sub-prime assets. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | At December 31, 2009, agency mortgage-backed securities include $111.2 million of securities held to maturity at amortized cost. At December 31, 2009 and 2008, state and municipal securities include $16.2 million and $22.6 million, respectively, of securities held to maturity at amortized cost. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Ratings shown above do not reflect the benefit of guarantees by bond insurers. At December 31, 2009 and 2008, $4.9 million and $39.1 million, respectively, of municipal bonds are guaranteed by bond insurers. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | At December 31, 2009, the breakdown by current bond rating is as follows: $19.4 million pre-funded with collateral or AAA-rated backed by Texas Permanent School Fund, $17.5 million AA or A-rated, and $2.5 million non-rated. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note: | Within each category, securities are ordered based on risk assessment from lowest to highest. TSFG holds no collateralized debt obligations, or subordinated debt or equity investments in FNMA or FHLMC. |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index 

| Table 16                                |   |
|-----------------------------------------|--------|
| Investment Securities Maturity Schedule |   |
| (dollars in thousands)                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Available for Sale -- Fair Value        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                    |   |   |   |   | After One |   |   | After Five |   |   |   |   |   | No |   |   |   |   |
|                                    |   | Within |   |   | But Within |   |   | But Within |   |   | After |   |   | Contractual |   |   |   |   |
|                                    |   | One Year |   |   | Five Years |   |   | Ten Years |   |   | Ten Years |   |   | Maturity (1) |   |   | Total |   |
|                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Treasury                           |   | $ | - |   |   | $ | 2,045 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 2,045 |   |
| U.S. Government agencies                |   |   | - |   |   |   | 79,707 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 79,707 |   |
| Agency residential MBS                  |   |   | 42,025 |   |   |   | 1,179,446 |   |   |   | 175,203 |   |   |   | 583,631 |   |   |   | - |   |   |   | 1,980,305 |   |
| Private label residential MBS           |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 8,504 |   |   |   | - |   |   |   | 8,504 |   |
| State and municipal                     |   |   | 22,908 |   |   |   | 200 |   |   |   | 50 |   |   |   | - |   |   |   | - |   |   |   | 23,158 |   |
| Other investments                       |   |   | - |   |   |   | 2 |   |   |   | - |   |   |   | - |   |   |   | 1,680 |   |   |   | 1,682 |   |
|                                    |   | $ | 64,933 |   |   | $ | 1,261,400 |   |   | $ | 175,253 |   |   | $ | 592,135 |   |   | $ | 1,680 |   |   | $ | 2,095,401 |   |
|                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted Average Tax-Equivalent Yield   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Treasury                           |   |   | - | % |   |   | 1.40 | % |   |   | - | % |   |   | - | % |   |   | - | % |   |   | 1.40 | % |
| U.S. Government agencies                |   |   | - |   |   |   | 2.33 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2.33 |   |
| Agency residential MBS                  |   |   | 3.35 |   |   |   | 3.33 |   |   |   | 4.31 |   |   |   | 4.58 |   |   |   | - |   |   |   | 3.78 |   |
| Private label residential MBS           |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 4.73 |   |   |   | - |   |   |   | 4.73 |   |
| State and municipal                     |   |   | 4.58 |   |   |   | 5.34 |   |   |   | 5.34 |   |   |   | - |   |   |   | - |   |   |   | 4.58 |   |
| Other investments                       |   |   | - |   |   |   | 4.00 |   |   |   | - |   |   |   | - |   |   |   | n/a |   |   |   | 4.00 |   |
|                                    |   |   | 3.79 | % |   |   | 3.26 | % |   |   | 4.31 | % |   |   | 4.58 | % |   |   | - | % |   |   | 3.74 | % |
|                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Held to Maturity -- Amortized Cost      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| State and municipal                     |   | $ | 4,786 |   |   | $ | 10,697 |   |   | $ | 734 |   |   | $ | - |   |   | $ | - |   |   | $ | 16,217 |   |
| Agency residential MBS                  |   |   | - |   |   |   | 111,199 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 111,199 |   |
| Other investments                       |   |   | 50 |   |   |   | 50 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 100 |   |
|                                    |   | $ | 4,836 |   |   | $ | 121,946 |   |   | $ | 734 |   |   | $ | - |   |   | $ | - |   |   | $ | 127,516 |   |
|                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted Average Tax-Equivalent Yield   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| State and municipal                     |   |   | 5.44 | % |   |   | 5.32 | % |   |   | 5.20 | % |   |   | - | % |   |   | - | % |   |   | 5.35 | % |
| Agency residential MBS                  |   |   | - |   |   |   | 4.02 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 4.02 |   |
| Other investments                       |   |   | 4.50 |   |   |   | 6.45 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5.48 |   |
|                                    |   |   | 5.43 | % |   |   | 4.14 | % |   |   | 5.20 | % |   |   | - | % |   |   | - | % |   |   | 4.19 | % |

| (1) | These securities have no contractual maturity or yield and accordingly are excluded from the "Other Investments" yield calculation, as well as the overall "Available for Sale" yield calculation. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index 

----

Index 

----

Index 

| Table 17                     |   |
|------------------------------|--------|
| OREO Rollforward             |   |
| (dollars in thousands)       |   |   |   |   |   |   |
|                         |   | Years Ended December 31, |   |
|                         |   | 2009 |   |   | 2008 |   |
| Balance at beginning of year |   | $ | 44,668 |   |   | $ | 6,467 |   |
| Loans transferred in         |   |   | 165,061 |   |   |   | 51,158 |   |
| Sales                        |   |   | (65,696 | ) |   |   | (11,907 | ) |
| Write-downs                  |   |   | (21,947 | ) |   |   | (1,050 | ) |
| Balance at end of year       |   | $ | 122,086 |   |   | $ | 44,668 |   |

| Table 18                                         |   |
|--------------------------------------------------|--------|
| Number of Months in OREO at December 31, 2009    |   |
| (dollars in thousands)                           |   |   |   |
|                                             |   |   |   |
| Less than three months                           |   | $ | 36,390 |   |
| Three months or more, but less than six months   |   |   | 27,137 |   |
| Six months or more, but less than nine months    |   |   | 24,684 |   |
| Nine months or more, but less than twelve months |   |   | 16,062 |   |
| Twelve months or more                            |   |   | 17,813 |   |
| Total OREO                                       |   | $ | 122,086 |   |

----

Index 

----

Index 

| Table 19                            |   |
|-------------------------------------|--------|
| Types of Deposits                   |   |
| (dollars in thousands)              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                |   | December 31, |   |
|                                |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |
| Noninterest-bearing demand deposits |   | $ | 1,124,404 |   |   | $ | 1,041,140 |   |   | $ | 1,127,657 |   |   | $ | 1,280,908 |   |   | $ | 1,458,914 |   |
| Interest-bearing checking           |   |   | 1,060,470 |   |   |   | 1,078,921 |   |   |   | 1,117,850 |   |   |   | 1,208,125 |   |   |   | 1,162,891 |   |
| Money market accounts               |   |   | 2,072,664 |   |   |   | 1,834,115 |   |   |   | 2,188,261 |   |   |   | 2,435,413 |   |   |   | 2,290,134 |   |
| Savings accounts                    |   |   | 322,924 |   |   |   | 190,519 |   |   |   | 158,092 |   |   |   | 181,192 |   |   |   | 187,101 |   |
| Core deposits                       |   |   | 4,580,462 |   |   |   | 4,144,695 |   |   |   | 4,591,860 |   |   |   | 5,105,638 |   |   |   | 5,099,040 |   |
| Time deposits under $100,000        |   |   | 1,632,582 |   |   |   | 1,863,520 |   |   |   | 1,442,030 |   |   |   | 1,272,056 |   |   |   | 1,246,791 |   |
| Time deposits of $100,000 or more   |   |   | 1,137,067 |   |   |   | 1,488,735 |   |   |   | 1,496,270 |   |   |   | 1,514,615 |   |   |   | 1,549,925 |   |
| Customer deposits (1)               |   |   | 7,350,111 |   |   |   | 7,496,950 |   |   |   | 7,530,160 |   |   |   | 7,892,309 |   |   |   | 7,895,756 |   |
| Brokered deposits                   |   |   | 1,946,101 |   |   |   | 1,908,767 |   |   |   | 2,258,408 |   |   |   | 1,624,431 |   |   |   | 1,338,681 |   |
| Total deposits                      |   | $ | 9,296,212 |   |   | $ | 9,405,717 |   |   | $ | 9,788,568 |   |   | $ | 9,516,740 |   |   | $ | 9,234,437 |   |
|                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Percentage of Deposits              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest-bearing demand deposits |   |   | 12.1 | % |   |   | 11.1 | % |   |   | 11.5 | % |   |   | 13.4 | % |   |   | 15.8 | % |
| Interest-bearing checking           |   |   | 11.4 |   |   |   | 11.5 |   |   |   | 11.4 |   |   |   | 12.7 |   |   |   | 12.6 |   |
| Money market accounts               |   |   | 22.3 |   |   |   | 19.5 |   |   |   | 22.4 |   |   |   | 25.6 |   |   |   | 24.8 |   |
| Savings accounts                    |   |   | 3.5 |   |   |   | 2.0 |   |   |   | 1.6 |   |   |   | 1.9 |   |   |   | 2.0 |   |
| Core deposits                       |   |   | 49.3 |   |   |   | 44.1 |   |   |   | 46.9 |   |   |   | 53.6 |   |   |   | 55.2 |   |
| Time deposits under $100,000        |   |   | 17.6 |   |   |   | 19.8 |   |   |   | 14.7 |   |   |   | 13.4 |   |   |   | 13.5 |   |
| Time deposits of $100,000 or more   |   |   | 12.2 |   |   |   | 15.8 |   |   |   | 15.3 |   |   |   | 15.9 |   |   |   | 16.8 |   |
| Customer deposits (1)               |   |   | 79.1 |   |   |   | 79.7 |   |   |   | 76.9 |   |   |   | 82.9 |   |   |   | 85.5 |   |
| Brokered deposits                   |   |   | 20.9 |   |   |   | 20.3 |   |   |   | 23.1 |   |   |   | 17.1 |   |   |   | 14.5 |   |
| Total deposits                      |   |   | 100.0 | % |   |   | 100.0 | % |   |   | 100.0 | % |   |   | 100.0 | % |   |   | 100.0 | % |

|   |   |
|--------|--------|

| (1) | TSFG defines customer deposits as total deposits less brokered deposits. |
|-----|--------------------------------------------------------------------------|

| Table 20                    |   |
|-----------------------------|--------|
| Types of Customer Funding   |   |
| (dollars in thousands)      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                        |   | December 31, |   |
|                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                        |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |
| Customer deposits (1)       |   | $ | 7,350,111 |   |   | $ | 7,496,950 |   |   | $ | 7,530,160 |   |   | $ | 7,892,309 |   |   | $ | 7,895,756 |   |
| Customer sweep accounts (2) |   |   | 316,690 |   |   |   | 493,012 |   |   |   | 648,311 |   |   |   | 500,288 |   |   |   | 305,815 |   |
| Customer funding            |   | $ | 7,666,801 |   |   | $ | 7,989,962 |   |   | $ | 8,178,471 |   |   | $ | 8,392,597 |   |   | $ | 8,201,571 |   |

| (1) | TSFG defines customer deposits as total deposits less brokered deposits. |
|-----|--------------------------------------------------------------------------|

| (2) | TSFG includes customer sweep accounts in short-term borrowings on its consolidated balance sheet. |
|-----|---------------------------------------------------------------------------------------------------|

----

Index 

| Table 21                                            |   |
|-----------------------------------------------------|--------|
| Maturity Distribution of and Rates on Time Deposits |   |
| (dollars in thousands)                              |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                |   | Customer Time Deposits |   |   | Brokered Deposits |   |   | Total |   |
|                                                |   |   |   |   | Average |   |   |   |   |   | Average |   |   |   |   |
|                                                |   | Balance |   |   | Rate |   |   | Balance |   |   | Rate |   |   | Balance |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Three months or less                                |   | $ | 338,224 |   |   |   | 1.87 | % |   | $ | 176,094 |   |   |   | 3.70 | % |   | $ | 514,318 |   |
| Over three through six months                       |   |   | 305,272 |   |   |   | 1.97 |   |   |   | 209,695 |   |   |   | 2.15 |   |   |   | 514,967 |   |
| Over six through twelve months                      |   |   | 1,322,629 |   |   |   | 2.86 |   |   |   | 419,989 |   |   |   | 2.81 |   |   |   | 1,742,618 |   |
| Over twelve months                                  |   |   | 803,524 |   |   |   | 2.66 |   |   |   | 1,140,323 |   |   |   | 2.83 |   |   |   | 1,943,847 |   |
| Total outstanding                                   |   | $ | 2,769,649 |   |   |   | 2.58 | % |   | $ | 1,946,101 |   |   |   | 2.83 | % |   | $ | 4,715,750 |   |

| Table 22                                                   |   |
|------------------------------------------------------------|--------|
| Maturity Distribution of Time Deposits of $100,000 or More |   |
| (dollars in thousands)                                     |   |   |   |
|                                                       |   |   |   |
| Three months or less                                       |   | $ | 151,492 |   |
| Over three through six months                              |   |   | 117,986 |   |
| Over six through twelve months                             |   |   | 573,518 |   |
| Over twelve months                                         |   |   | 294,071 |   |
| Total outstanding                                          |   | $ | 1,137,067 |   |

----

Index 

| Table 23                                                   |   |
|------------------------------------------------------------|--------|
| Types of Borrowed Funds                                    |   |
| (dollars in thousands)                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                       |   | December 31, |   |
|                                                       |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |
| Short-Term Borrowings                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Customer sweep accounts                                    |   | $ | 316,690 |   |   | $ | 493,012 |   |   | $ | 648,311 |   |   | $ | 500,288 |   |   | $ | 305,815 |   |
| Treasury, tax and loan note                                |   |   | 5,987 |   |   |   | 3,516 |   |   |   | 752,195 |   |   |   | 139,989 |   |   |   | 20,131 |   |
| Federal funds purchased and repurchase agreements          |   |   | 25 |   |   |   | 67,309 |   |   |   | 206,216 |   |   |   | 920,811 |   |   |   | 1,115,486 |   |
| Federal Reserve borrowings                                 |   |   | - |   |   |   | 1,050,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Commercial paper                                           |   |   | - |   |   |   | 12,537 |   |   |   | 30,828 |   |   |   | 32,631 |   |   |   | 32,933 |   |
| FHLB advances                                              |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 175,000 |   |   |   | - |   |
|                                                       |   |   | 322,702 |   |   |   | 1,626,374 |   |   |   | 1,637,550 |   |   |   | 1,768,719 |   |   |   | 1,474,365 |   |
| Long-Term Borrowings                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| FHLB advances, net of discount                             |   |   | 752,646 |   |   |   | 233,497 |   |   |   | 223,087 |   |   |   | 328,113 |   |   |   | 852,140 |   |
| Repurchase agreements                                      |   |   | 125,000 |   |   |   | 200,000 |   |   |   | 200,000 |   |   |   | 521,000 |   |   |   | 821,000 |   |
| Subordinated notes                                         |   |   | 206,704 |   |   |   | 216,704 |   |   |   | 216,704 |   |   |   | 188,871 |   |   |   | 155,695 |   |
| Mandatorily redeemable preferred stock of REIT subsidiary  |   |   | 31,800 |   |   |   | 56,800 |   |   |   | 56,800 |   |   |   | 89,800 |   |   |   | 89,800 |   |
| Note payable                                               |   |   | 719 |   |   |   | 768 |   |   |   | 786 |   |   |   | 828 |   |   |   | 865 |   |
| Employee stock ownership plan note payable                 |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 200 |   |   |   | 500 |   |
| Purchase accounting premiums, net of amortization          |   |   | - |   |   |   | - |   |   |   | 963 |   |   |   | 1,663 |   |   |   | 2,151 |   |
| Total long-term borrowings                                 |   |   | 1,116,869 |   |   |   | 707,769 |   |   |   | 698,340 |   |   |   | 1,130,475 |   |   |   | 1,922,151 |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total borrowings                                           |   |   | 1,439,571 |   |   |   | 2,334,143 |   |   |   | 2,335,890 |   |   |   | 2,899,194 |   |   |   | 3,396,516 |   |
| Less: customer sweep accounts                              |   |   | (316,690 | ) |   |   | (493,012 | ) |   |   | (648,311 | ) |   |   | (500,288 | ) |   |   | (305,815 | ) |
| Add: brokered deposits(1)                                  |   |   | 1,946,101 |   |   |   | 1,908,767 |   |   |   | 2,258,408 |   |   |   | 1,624,431 |   |   |   | 1,338,681 |   |
| Total wholesale borrowings                                 |   | $ | 3,068,982 |   |   | $ | 3,749,898 |   |   | $ | 3,945,987 |   |   | $ | 4,023,337 |   |   | $ | 4,429,382 |   |
| Total wholesale borrowings as a percentage of total assets |   |   | 25.8 | % |   |   | 27.6 | % |   |   | 28.4 | % |   |   | 28.3 | % |   |   | 30.9 | % |

| (1) | TSFG includes brokered deposits in total deposits on its consolidated balance sheet. |
|-----|--------------------------------------------------------------------------------------|

----

Index 

| Table 24                                          |   |
|---------------------------------------------------|--------|
| Selected Short-Term Borrowings Data               |   |
| (dollars in thousands)                            |   |
|                                              |   | Maximum |   |   |   |   |   |   |   |   |   |   |   | Interest |   |
|                                              |   | Outstanding |   |   |   |   |   |   |   |   |   |   |   | Rate at |   |
|                                              |   | at any |   |   | Average |   |   | Average |   |   | Ending |   |   | Year |   |
| Year Ended December 31,                           |   | Month End |   |   | Balance |   |   | Interest Rate |   |   | Balance |   |   | End |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2009                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Customer sweep accounts                           |   | $ | 466,967 |   |   | $ | 353,830 |   |   |   | 0.29 | % |   | $ | 316,690 |   |   |   | 0.33 | % |
| Federal funds purchased and repurchase agreements |   |   | 197,309 |   |   |   | 47,000 |   |   |   | 0.25 |   |   |   | 25 |   |   |   | 0.63 |   |
| Federal Reserve borrowings                        |   |   | 1,200,000 |   |   |   | 387,619 |   |   |   | 0.26 |   |   |   | - |   |   |   | - |   |
| Commercial paper                                  |   |   | 2,476 |   |   |   | 1,044 |   |   |   | 2.63 |   |   |   | - |   |   |   | - |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2008                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Customer sweep accounts                           |   | $ | 741,206 |   |   | $ | 580,882 |   |   |   | 1.98 | % |   | $ | 493,012 |   |   |   | 0.58 | % |
| Federal funds purchased and repurchase agreements |   |   | 589,229 |   |   |   | 329,503 |   |   |   | 2.52 |   |   |   | 67,309 |   |   |   | 0.05 |   |
| Federal Reserve borrowings                        |   |   | 1,150,000 |   |   |   | 478,954 |   |   |   | 1.82 |   |   |   | 1,050,000 |   |   |   | 0.28 |   |
| Commercial paper                                  |   |   | 31,053 |   |   |   | 22,507 |   |   |   | 4.24 |   |   |   | 12,537 |   |   |   | 3.30 |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2007                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Customer sweep accounts                           |   | $ | 648,311 |   |   | $ | 525,606 |   |   |   | 4.32 | % |   | $ | 648,311 |   |   |   | 3.79 | % |
| Federal funds purchased and repurchase agreements |   |   | 1,048,334 |   |   |   | 767,413 |   |   |   | 5.17 |   |   |   | 206,216 |   |   |   | 3.70 |   |
| Commercial paper                                  |   |   | 35,704 |   |   |   | 33,454 |   |   |   | 5.35 |   |   |   | 30,828 |   |   |   | 5.04 |   |

----

Index 

----

Index 

| Table 25                  |   |
|---------------------------|--------|
| Capital Ratios            |   |
|                      |   |   |   |   |   |   |
|                      |   |  December 31, |   |   | Well Capitalized |   |
|                      |   | 2009 |   |   | Requirement |   |
| TSFG                      |   |   |   |   |   |   |
| Total risk-based capital  |   |   | 11.24 | % |   |   | n/a |   |
| Tier 1 risk-based capital |   |   | 9.93 |   |   |   | n/a |   |
| Leverage ratio            |   |   | 7.91 |   |   |   | n/a |   |
|                      |   |   |   |   |   |   |   |   |
| Carolina First Bank       |   |   |   |   |   |   |   |   |
| Total risk-based capital  |   |   | 10.55 | % |   |   | 10.00 | % |
| Tier 1 risk-based capital |   |   | 8.96 |   |   |   | 6.00 |   |
| Leverage ratio            |   |   | 7.13 |   |   |   | 5.00 |   |

----

Index 

----

Index 

| Table 26                             |   |
|--------------------------------------|--------|
| Contractual Obligations              |   |
| (dollars in thousands)               |   |
|                                 |   | Payments Due by Period |   |
|                                 |   |   |   |   | Less |   |   |   |   |   |   |   |   |   |   |
|                                 |   |   |   |   | than 1 |   |   | 1-3 |   |   | 4-5 |   |   | After 5 |   |
|                                 |   | Total |   |   | Year |   |   | Years |   |   | Years |   |   | Years |   |
| Customer time deposits               |   | $ | 2,769,649 |   |   | $ | 1,966,125 |   |   | $ | 780,762 |   |   | $ | 18,726 |   |   | $ | 4,036 |   |
| Brokered deposits                    |   |   | 1,946,101 |   |   |   | 805,778 |   |   |   | 1,039,542 |   |   |   | 66,994 |   |   |   | 33,787 |   |
| Total time deposits                  |   |   | 4,715,750 |   |   |   | 2,771,903 |   |   |   | 1,820,304 |   |   |   | 85,720 |   |   |   | 37,823 |   |
| Short-term borrowings                |   |   | 322,702 |   |   |   | 322,702 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Long-term debt - parent company      |   |   | 206,704 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 206,704 |   |
| Long-term debt - Carolina First Bank |   |   | 910,896 |   |   |   | 179 |   |   |   | 681,416 |   |   |   | 200,267 |   |   |   | 29,034 |   |
| Total long-term debt                 |   |   | 1,117,600 |   |   |   | 179 |   |   |   | 681,416 |   |   |   | 200,267 |   |   |   | 235,738 |   |
| Operating leases                     |   |   | 176,044 |   |   |   | 17,490 |   |   |   | 34,141 |   |   |   | 29,879 |   |   |   | 94,534 |   |
| Total contractual cash obligations   |   | $ | 6,332,096 |   |   | $ | 3,112,274 |   |   | $ | 2,535,861 |   |   | $ | 315,866 |   |   | $ | 368,095 |   |

----

Index 

| Table 27                                              |   |
|-------------------------------------------------------|--------|
| Comparative Average Balances - Yields and Costs       |   |
| (dollars in thousands)                                |   |
|                                                  |   | Years Ended December 31, |   |
|                                                  |   | 2009 |   |   | 2008 |   |   | 2007 |   |
|                                                  |   | Average |   |   | Income/ |   |   | Yield/ |   |   | Average |   |   | Income/ |   |   | Yield/ |   |   | Average |   |   | Income/ |   |   | Yield/ |   |
|                                                  |   | Balance |   |   | Expense |   |   | Rate |   |   | Balance |   |   | Expense |   |   | Rate |   |   | Balance |   |   | Expense |   |   | Rate |   |
| Assets                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earning assets                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans (1)                                             |   | $ | 9,478,536 |   |   | $ | 466,493 |   |   |   | 4.92 | % |   | $ | 10,374,423 |   |   | $ | 629,966 |   |   |   | 6.07 | % |   | $ | 10,013,387 |   |   | $ | 764,828 |   |   |   | 7.64 | % |
| Investment securities, taxable (2)                    |   |   | 1,786,429 |   |   |   | 73,527 |   |   |   | 4.12 |   |   |   | 1,788,333 |   |   |   | 81,744 |   |   |   | 4.57 |   |   |   | 2,165,589 |   |   |   | 103,525 |   |   |   | 4.78 |   |
| Investment securities, nontaxable (2) (3)             |   |   | 232,416 |   |   |   | 12,131 |   |   |   | 5.22 |   |   |   | 299,412 |   |   |   | 15,299 |   |   |   | 5.11 |   |   |   | 359,728 |   |   |   | 17,847 |   |   |   | 4.96 |   |
| Total investment securities                           |   |   | 2,018,845 |   |   |   | 85,658 |   |   |   | 4.24 |   |   |   | 2,087,745 |   |   |   | 97,043 |   |   |   | 4.65 |   |   |   | 2,525,317 |   |   |   | 121,372 |   |   |   | 4.81 |   |
| Federal funds sold and interest-bearing bank balances |   |   | 227 |   |   |   | 1 |   |   |   | 0.44 |   |   |   | 16,825 |   |   |   | 385 |   |   |   | 2.29 |   |   |   | 6,519 |   |   |   | 402 |   |   |   | 6.17 |   |
| Total earning assets                                  |   |   | 11,497,608 |   |   | $ | 552,152 |   |   |   | 4.80 |   |   |   | 12,478,993 |   |   | $ | 727,394 |   |   |   | 5.83 |   |   |   | 12,545,223 |   |   | $ | 886,602 |   |   |   | 7.07 |   |
| Non-earning assets                                    |   |   | 1,322,089 |   |   |   |   |   |   |   |   |   |   |   | 1,354,362 |   |   |   |   |   |   |   |   |   |   |   | 1,499,342 |   |   |   |   |   |   |   |   |   |
| Total assets                                          |   | $ | 12,819,697 |   |   |   |   |   |   |   |   |   |   | $ | 13,833,355 |   |   |   |   |   |   |   |   |   |   | $ | 14,044,565 |   |   |   |   |   |   |   |   |   |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities and Shareholders' Equity                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing deposits                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing checking                             |   | $ | 1,054,372 |   |   | $ | 3,012 |   |   |   | 0.29 |   |   | $ | 1,104,088 |   |   | $ | 11,127 |   |   |   | 1.01 |   |   | $ | 1,140,753 |   |   | $ | 22,141 |   |   |   | 1.94 |   |
| Savings                                               |   |   | 236,369 |   |   |   | 2,363 |   |   |   | 1.00 |   |   |   | 156,464 |   |   |   | 1,504 |   |   |   | 0.96 |   |   |   | 174,100 |   |   |   | 2,756 |   |   |   | 1.58 |   |
| Money market                                          |   |   | 2,013,132 |   |   |   | 28,033 |   |   |   | 1.39 |   |   |   | 2,014,702 |   |   |   | 49,557 |   |   |   | 2.46 |   |   |   | 2,275,380 |   |   |   | 89,338 |   |   |   | 3.93 |   |
| Time deposits, excluding brokered deposits            |   |   | 2,985,683 |   |   |   | 96,160 |   |   |   | 3.22 |   |   |   | 3,153,991 |   |   |   | 125,475 |   |   |   | 3.98 |   |   |   | 2,900,260 |   |   |   | 144,299 |   |   |   | 4.98 |   |
| Brokered deposits                                     |   |   | 1,972,847 |   |   |   | 61,018 |   |   |   | 3.09 |   |   |   | 2,205,481 |   |   |   | 87,340 |   |   |   | 3.96 |   |   |   | 2,114,211 |   |   |   | 109,761 |   |   |   | 5.19 |   |
| Total interest-bearing deposits                       |   |   | 8,262,403 |   |   |   | 190,586 |   |   |   | 2.31 |   |   |   | 8,634,726 |   |   |   | 275,003 |   |   |   | 3.18 |   |   |   | 8,604,704 |   |   |   | 368,295 |   |   |   | 4.28 |   |
| Customer sweep accounts                               |   |   | 353,830 |   |   |   | 1,011 |   |   |   | 0.29 |   |   |   | 580,882 |   |   |   | 11,519 |   |   |   | 1.98 |   |   |   | 525,606 |   |   |   | 22,723 |   |   |   | 4.32 |   |
| Other borrowings (4)                                  |   |   | 1,459,355 |   |   |   | 24,777 |   |   |   | 1.70 |   |   |   | 1,814,120 |   |   |   | 55,355 |   |   |   | 3.05 |   |   |   | 1,938,851 |   |   |   | 106,557 |   |   |   | 5.50 |   |
| Total interest-bearing liabilities                    |   |   | 10,075,588 |   |   | $ | 216,374 |   |   |   | 2.15 |   |   |   | 11,029,728 |   |   | $ | 341,877 |   |   |   | 3.10 |   |   |   | 11,069,161 |   |   | $ | 497,575 |   |   |   | 4.50 |   |
| Noninterest-bearing liabilities                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest-bearing deposits                          |   |   | 1,080,503 |   |   |   |   |   |   |   |   |   |   |   | 1,055,855 |   |   |   |   |   |   |   |   |   |   |   | 1,200,663 |   |   |   |   |   |   |   |   |   |
| Other noninterest-bearing liabilities                 |   |   | 213,333 |   |   |   |   |   |   |   |   |   |   |   | 189,691 |   |   |   |   |   |   |   |   |   |   |   | 231,189 |   |   |   |   |   |   |   |   |   |
| Total liabilities                                     |   |   | 11,369,424 |   |   |   |   |   |   |   |   |   |   |   | 12,275,274 |   |   |   |   |   |   |   |   |   |   |   | 12,501,013 |   |   |   |   |   |   |   |   |   |
| Shareholders' equity                                  |   |   | 1,450,273 |   |   |   |   |   |   |   |   |   |   |   | 1,558,081 |   |   |   |   |   |   |   |   |   |   |   | 1,543,552 |   |   |   |   |   |   |   |   |   |
| Total liabilities and shareholders'  equity |   | $ | 12,819,697 |   |   |   |   |   |   |   |   |   |   | $ | 13,833,355 |   |   |   |   |   |   |   |   |   |   | $ | 14,044,565 |   |   |   |   |   |   |   |   |   |
| Net interest income (tax-equivalent)                  |   |   |   |   |   | $ | 335,778 |   |   |   | 2.92 | % |   |   |   |   |   | $ | 385,517 |   |   |   | 3.09 | % |   |   |   |   |   | $ | 389,027 |   |   |   | 3.10 | % |
| Less: tax-equivalent adjustment (3)                   |   |   |   |   |   |   | 4,246 |   |   |   |   |   |   |   |   |   |   |   | 5,354 |   |   |   |   |   |   |   |   |   |   |   | 6,246 |   |   |   |   |   |
| Net interest income                                   |   |   |   |   |   | $ | 331,532 |   |   |   |   |   |   |   |   |   |   | $ | 380,163 |   |   |   |   |   |   |   |   |   |   | $ | 382,781 |   |   |   |   |   |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Supplemental data:                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Customer funding(5)                                   |   | $ | 7,723,889 |   |   | $ | 130,579 |   |   |   | 1.69 | % |   | $ | 8,065,982 |   |   | $ | 199,182 |   |   |   | 2.47 | % |   | $ | 8,216,762 |   |   | $ | 281,257 |   |   |   | 3.42 | % |
| Wholesale borrowings (6)                              |   |   | 3,432,202 |   |   |   | 85,795 |   |   |   | 2.50 |   |   |   | 4,019,601 |   |   |   | 142,695 |   |   |   | 3.55 |   |   |   | 4,053,062 |   |   |   | 216,318 |   |   |   | 5.34 |   |
| Total funding (7)                                     |   | $ | 11,156,091 |   |   | $ | 216,374 |   |   |   | 1.94 | % |   | $ | 12,085,583 |   |   | $ | 341,877 |   |   |   | 2.83 | % |   | $ | 12,269,824 |   |   | $ | 497,575 |   |   |   | 4.06 | % |

| (1) | Nonaccrual loans are included in average balances for yield computations. |
|-----|---------------------------------------------------------------------------|

| (2) | The average balances for investment securities exclude the unrealized 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 years ended December 31, 2009, 2008, and 2007 TSFG capitalized $738,000, $1.6 million, and $505,000, respectively, of interest in conjunction with its planned corporate campus. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Customer funding includes total deposits (total interest-bearing plus noninterest-bearing deposits) less brokered deposits plus customer sweep accounts. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Wholesale borrowings include borrowings less customer sweep accounts plus brokered deposits.  For purposes of this table, wholesale borrowings equal the sum of other borrowings and brokered deposits, as customer sweep accounts are presented separately. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

Index 

| Table 28                                              |   |
|-------------------------------------------------------|--------|
| Rate/Volume Variance Analysis                         |   |
| (dollars in thousands)                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                  |   | 2009 Compared to 2008 |   |   | 2008 Compared to 2007 |   |
|                                                  |   | Total |   |   | Change in |   |   | Change in |   |   | Total |   |   | Change in |   |   | Change in |   |
|                                                  |   | Change |   |   | Volume |   |   | Rate |   |   | Change |   |   | Volume |   |   | Rate |   |
| Earning assets                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                                 |   | $ | (163,473 | ) |   | $ | (51,174 | ) |   | $ | (112,299 | ) |   | $ | (134,862 | ) |   | $ | 26,731 |   |   | $ | (161,593 | ) |
| Investment securites, taxable                         |   |   | (8,217 | ) |   |   | (87 | ) |   |   | (8,130 | ) |   |   | (21,781 | ) |   |   | (17,403 | ) |   |   | (4,378 | ) |
| Investment securites, nontaxable                      |   |   | (3,168 | ) |   |   | (3,490 | ) |   |   | 322 |   |   |   | (2,548 | ) |   |   | (3,068 | ) |   |   | 520 |   |
| Federal funds sold and interest-bearing bank balances |   |   | (384 | ) |   |   | (211 | ) |   |   | (173 | ) |   |   | (17 | ) |   |   | 350 |   |   |   | (367 | ) |
| Total interest income                                 |   |   | (175,242 | ) |   |   | (54,962 | ) |   |   | (120,280 | ) |   |   | (159,208 | ) |   |   | 6,610 |   |   |   | (165,818 | ) |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing deposits                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing checking                             |   |   | (8,115 | ) |   |   | (480 | ) |   |   | (7,635 | ) |   |   | (11,014 | ) |   |   | (690 | ) |   |   | (10,324 | ) |
| Savings                                               |   |   | 859 |   |   |   | 797 |   |   |   | 62 |   |   |   | (1,252 | ) |   |   | (257 | ) |   |   | (995 | ) |
| Money market                                          |   |   | (21,524 | ) |   |   | (39 | ) |   |   | (21,485 | ) |   |   | (39,781 | ) |   |   | (9,338 | ) |   |   | (30,443 | ) |
| Time deposits                                         |   |   | (29,315 | ) |   |   | (6,417 | ) |   |   | (22,898 | ) |   |   | (18,824 | ) |   |   | 11,855 |   |   |   | (30,679 | ) |
| Brokered deposits                                     |   |   | (26,322 | ) |   |   | (8,557 | ) |   |   | (17,765 | ) |   |   | (22,421 | ) |   |   | 4,565 |   |   |   | (26,986 | ) |
| Total interest-bearing deposits                       |   |   | (84,417 | ) |   |   | (14,696 | ) |   |   | (69,721 | ) |   |   | (93,292 | ) |   |   | 6,135 |   |   |   | (99,427 | ) |
| Customer sweep accounts                               |   |   | (10,508 | ) |   |   | (3,817 | ) |   |   | (6,691 | ) |   |   | (11,204 | ) |   |   | 2,315 |   |   |   | (13,519 | ) |
| Other borrowings                                      |   |   | (30,578 | ) |   |   | (9,356 | ) |   |   | (21,222 | ) |   |   | (51,202 | ) |   |   | (6,470 | ) |   |   | (44,732 | ) |
| Total interest expense                                |   |   | (125,503 | ) |   |   | (27,869 | ) |   |   | (97,634 | ) |   |   | (155,698 | ) |   |   | 1,980 |   |   |   | (157,678 | ) |
| Net interest income                                   |   | $ | (49,739 | ) |   | $ | (27,093 | ) |   | $ | (22,646 | ) |   | $ | (3,510 | ) |   | $ | 4,630 |   |   | $ | (8,140 | ) |

----

Index 

| Table 29                                                 |   |
|----------------------------------------------------------|--------|
| Components of Noninterest Income                         |   |
| (dollars in thousands)                                   |   |
|                                                     |   | Years Ended December 31, |   |
|                                                     |   | 2009 |   |   |   | 2008 |   |   |   | 2007 |   |
| Service charges on deposit accounts                      |   | $ | 39,659 |   |   | $ | 42,940 |   |   | $ | 44,519 |   |
| Debit card income, net                                   |   |   | 8,305 |   |   |   | 7,805 |   |   |   | 7,182 |   |
| Customer service fee income                              |   |   | 4,839 |   |   |   | 5,335 |   |   |   | 5,648 |   |
| Total customer fee income                                |   |   | 52,803 |   |   |   | 56,080 |   |   |   | 57,349 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Insurance income                                         |   |   | 7,800 |   |   |   | 10,082 |   |   |   | 12,029 |   |
| Retail investment services, net                          |   |   | 7,703 |   |   |   | 7,711 |   |   |   | 7,902 |   |
| Trust and investment management income                   |   |   | 5,135 |   |   |   | 6,688 |   |   |   | 6,595 |   |
| Benefits administration fees                             |   |   | 1,213 |   |   |   | 3,136 |   |   |   | 3,261 |   |
| Total wealth management income                           |   |   | 21,851 |   |   |   | 27,617 |   |   |   | 29,787 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank-owned life insurance income                         |   |   | 9,515 |   |   |   | 12,877 |   |   |   | 13,344 |   |
| Gain (loss) on securities                                |   |   | 8,034 |   |   |   | 3,108 |   |   |   | (4,623 | ) |
| Gain on sale of ancillary businesses                     |   |   | 7,234 |   |   |   | - |   |   |   | - |   |
| Mortgage banking income                                  |   |   | 5,694 |   |   |   | 5,260 |   |   |   | 6,053 |   |
| Gain (loss) on trading and certain derivative activities |   |   | 3,849 |   |   |   | (207 | ) |   |   | (1,197 | ) |
| Merchant processing income, net                          |   |   | 2,018 |   |   |   | 3,279 |   |   |   | 3,263 |   |
| Gain on Visa IPO share redemption                        |   |   | - |   |   |   | 1,904 |   |   |   | - |   |
| Other                                                    |   |   | 7,035 |   |   |   | 12,049 |   |   |   | 9,736 |   |
| Total noninterest income                                 |   | $ | 118,033 |   |   | $ | 121,967 |   |   | $ | 113,712 |   |

----

Index 

----

Index 

| Table 30                                                         |   |
|------------------------------------------------------------------|--------|
| Components of Noninterest Expense                                |   |
| (dollars in thousands)                                           |   |
|                                                             |   | Years Ended December 31, |   |
|                                                             |   | 2009 |   |   | 2008 |   |   | 2007 |   |
| Salaries and wages, excluding employment contracts and severance |   | $ | 133,548 |   |   | $ | 144,037 |   |   | $ | 137,085 |   |
| Employment contracts and severance                               |   |   | 829 |   |   |   | 16,519 |   |   |   | 2,306 |   |
| Total salaries and wages                                         |   |   | 134,377 |   |   |   | 160,556 |   |   |   | 139,391 |   |
|                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Occupancy                                                        |   |   | 38,200 |   |   |   | 37,311 |   |   |   | 34,659 |   |
| Employee benefits                                                |   |   | 32,893 |   |   |   | 38,200 |   |   |   | 37,098 |   |
| Loss on other real estate owned                                  |   |   | 32,435 |   |   |   | 633 |   |   |   | - |   |
| Regulatory assessments                                           |   |   | 29,293 |   |   |   | 10,923 |   |   |   | 2,628 |   |
| Furniture and equipment                                          |   |   | 27,758 |   |   |   | 27,561 |   |   |   | 26,081 |   |
| Loan collection and foreclosed asset expense                     |   |   | 27,090 |   |   |   | 12,431 |   |   |   | 3,665 |   |
| Impairment of long-lived assets                                  |   |   | 21,600 |   |   |   | - |   |   |   | - |   |
| Professional services                                            |   |   | 16,768 |   |   |   | 16,212 |   |   |   | 17,062 |   |
| Project NOW expense                                              |   |   | 1,693 |   |   |   | 271 |   |   |   | - |   |
| Loss on non-mortgage loans held for sale                         |   |   | 11,776 |   |   |   | 283 |   |   |   | - |   |
| Telecommunications                                               |   |   | 6,197 |   |   |   | 6,140 |   |   |   | 5,668 |   |
| Advertising and business development                             |   |   | 5,947 |   |   |   | 9,927 |   |   |   | 7,401 |   |
| Amortization of intangibles                                      |   |   | 4,917 |   |   |   | 6,138 |   |   |   | 7,897 |   |
| (Gain) loss on early extinguishment of debt                      |   |   | (3,043 | ) |   |   | 2,086 |   |   |   | 2,029 |   |
| Goodwill impairment                                              |   |   | 2,511 |   |   |   | 426,049 |   |   |   | - |   |
| Loss on repurchase of auction rate securities                    |   |   | 676 |   |   |   | - |   |   |   | - |   |
| Loss on derivative collateral                                    |   |   | - |   |   |   | 1,061 |   |   |   | - |   |
| Branch acquisition and conversion costs                          |   |   | - |   |   |   | 731 |   |   |   | - |   |
| Visa-related litigation                                          |   |   | - |   |   |   | (863 | ) |   |   | 881 |   |
| Other                                                            |   |   | 28,033 |   |   |   | 36,583 |   |   |   | 36,789 |   |
| Total noninterest expenses                                       |   | $ | 419,121 |   |   | $ | 792,233 |   |   | $ | 321,249 |   |

----

Index 

----

Index 

|                                      |   | Three Months Ended |     |
|-------------------------------------------|--------|--------------------|----------|
|                                      |   | December 31,       |     |   | September 30, |   |   | December 31, |   |
|                                      |   | 2009               |     |   | 2009 |   |   | 2008 |   |
| Net interest income                       |   | $                  | 80,546   |   |   | $ | 80,038 |   |   | $ | 91,633 |   |
| Provision for credit losses               |   |               | 170,761  |   |   |   | 224,179 |   |   |   | 122,926 |   |
| Noninterest income                        |   |               | 28,550   |   |   |   | 33,470 |   |   |   | 30,012 |   |
| Noninterest expenses                      |   |               | 103,163  |   |   |   | 89,529 |   |   |   | 342,093 |   |
| Income tax expense (benefit)              |   |               | 23,843   |   |   |   | 123,304 |   |   |   | (33,435 | ) |
| Net loss                                  |   |               | (188,671 | ) |   |   | (323,504 | ) |   |   | (309,939 | ) |
| Preferred stock dividends and other       |   |               | (5,221   | ) |   |   | (17,251 | ) |   |   | (9,424 | ) |
| Net loss available to common shareholders |   | $                  | (193,892 | ) |   | $ | (340,755 | ) |   | $ | (319,363 | ) |
|                                      |   |               |     |   |   |   |   |   |   |   |   |   |
| Loss per common share, diluted            |   | $                  | (0.90    | ) |   | $ | (1.95 | ) |   | $ | (4.29 | ) |

----

Index 

|   | · | Board oversight—The Board approves risk strategies, policies and associated limits; and the Board directly, or through its Risk Committee, receives regular updates on the key risks to TSFG. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Accountability—Business units are responsible for identifying and managing risks within their areas, as outlined in their policies and procedures. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Monitoring—The risk management functions within the Company seek to provide objective oversight of business unit activities and work with business units to ensure key risks are properly identified and controlled. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Independent review—The internal audit group reports directly to the Audit Committee of the Board of Directors and provides an independent assessment of our system of internal controls. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | assets and liabilities (including derivative positions) may mature or reprice at different times; |
|--------|--------|---------------------------------------------------------------------------------------------------|

|   | · | assets and liabilities may reprice at the same time but by different amounts; |
|--------|--------|-------------------------------------------------------------------------------|

|   | · | short-term and long-term interest rates may change by different amounts; |
|--------|--------|--------------------------------------------------------------------------|

|   | · | remaining maturities of assets or liabilities may shorten or lengthen as interest rates change; |
|--------|--------|-------------------------------------------------------------------------------------------------|

|   | · | the fair value of assets and liabilities may adjust by varying amounts; and |
|--------|--------|-----------------------------------------------------------------------------|

|   | · | changes in interest rates may have an indirect impact on loan and deposit demand, credit quality, and other sources of earnings. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------|

----

Index 

|   | · | the timing, magnitude and frequency of interest rate changes; |
|--------|--------|---------------------------------------------------------------|

|   | · | changes in market conditions; |
|--------|--------|-------------------------------|

|   | · | differences in the yields on earning assets and costs of interest-bearing liabilities; and |
|--------|--------|--------------------------------------------------------------------------------------------|

|   | · | actions taken by TSFG to counter such changing market conditions. |
|--------|--------|-------------------------------------------------------------------|

|   | · | a static balance sheet for net interest income analysis; |
|--------|--------|----------------------------------------------------------|

|   | · | as assets and liabilities mature or reprice they are reinvested at current rates and keep the same characteristics (i.e., remain as either variable or fixed rate) for net interest income analysis; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | mortgage backed securities prepayments are based on historical industry data (given the current economic and regulatory environment, uncertainty regarding future prepayments is heightened); |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | loan prepayments are based upon historical bank-specific analysis and historical industry data; |
|--------|--------|-------------------------------------------------------------------------------------------------|

|   | · | deposit retention and average lives are based on historical bank-specific analysis; |
|--------|--------|-------------------------------------------------------------------------------------|

|   | · | whether callable/puttable assets and liabilities are called/put is based on the implied forward yield curve for each interest rate scenario; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | management takes no action to counter any change. |
|--------|--------|---------------------------------------------------|

| Table 31                             |
|--------------------------------------|
| Net Interest Income at Risk Analysis |
|                                 |   |   | Annualized Hypothetical Percentage Change in |
|                                 |   |   | Net Interest Income |
| Interest Rate Scenario (1)           |   |   | December 31, |
|                                 |   |   | 2009 |   |   | 2008 |   |
|                                 | 2.00 | % |   |   | 1.8 | % |   |   | (0.2 | ) % |
|                                 | 1.00 |   |   |   | 1.0 |   |   |   | - |   |
| Flat                                 |   |   |   | - |   |   |   | - |   |
|                                 | (1.00 | )(2) |   |   | n/a |   |   |   | n/a |   |
|                                 | (2.00 | )(2) |   |   | n/a |   |   |   | n/a |   |

| (1) | Net interest income sensitivity is shown for gradual rate shifts over a 12 month period. |
|-----|------------------------------------------------------------------------------------------|

| (2) | Due to the current rate environment, downward rate shifts were not run. |
|-----|-------------------------------------------------------------------------|

----

Index 

| Table 32                               |                                     |
|----------------------------------------|------------------------------------------|
| Economic Value of Equity Risk Analysis |                                     |
| (dollars in thousands)                 | Annualized Hypothetical Dollar Change in |   |
|                                   |                                     |   | Economic Value of Equity |   |
| Interest Rate Scenario (1)             |                                     |   | December 31, |   |
|                                   |                                     |   | 2009 |   |   | 2008 |   |
|                                   | 2.00                                     | % |   | $ | (63,227 | ) |   | $ | (82,307 | ) |
|                                   | 1.00                                     |   |   |   | (35,430 | ) |   |   | (12,270 | ) |
| Flat                                   |                                     |   |   | - |   |   |   | - |   |
|                                   | (1.00                                    | )(2) |   |   | n/a |   |   |   | n/a |   |
|                                   | (2.00                                    | )(2) |   |   | n/a |   |   |   | n/a |   |

| (1) | The rising 100 and 200 basis points and falling 100 and 200 basis point interest rate scenarios assume an immediate and parallel change in interest rates along the entire yield curve. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Due to the current rate environment, downward rate shifts were not run. |
|-----|-------------------------------------------------------------------------|

|   | · | the flat scenarios are base case and are not indicative of historical results; |
|--------|--------|--------------------------------------------------------------------------------|

|   | · | they do not project an increase or decrease in net interest income or the fair value of net assets, but rather the risk to net interest income and the fair value of net assets because of changes in interest rates; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | they present the balance sheet in a static position; however, when assets and liabilities mature or reprice, they do not necessarily keep the same characteristics (i.e., variable or fixed interest rate); |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the computation of prospective effects of hypothetical interest rate changes are based on numerous assumptions and should not be relied upon as indicative of actual results; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the computations do not contemplate any additional actions TSFG could undertake in response to changes in interest rates. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------|

----

Index 

----

Index 

----

Index 

| Item 7A. | Quantitative and Qualitative Disclosures about Market Risk |
|----------|------------------------------------------------------------|

----

Index 

| Item 8. | Financial Statements and Supplementary Data |
|---------|---------------------------------------------|

| /s/ H. Lynn Harton      | /s/ James R. Gordon             |
|-------------------------|---------------------------------|
| H. Lynn Harton          | James R. Gordon                 |
| President and           | Senior Executive Vice President |
| Chief Executive Officer | and Chief Financial Officer     |
| March 16, 2010          | March 16, 2010                  |

----

Index 

----

Index 

|                                                                                                                                                |   | December 31, |       |
|-----------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|------------|
|                                                                                                                                                |   | 2009         |       |   | 2008 |   |
| Assets                                                                                                                                              |   |         |       |   |   |   |
| Cash and due from banks                                                                                                                             |   | $            | 383,184    |   |   | $ | 292,219 |   |
| Interest-bearing bank balances                                                                                                                      |   |         | 124        |   |   |   | 166 |   |
| Securities                                                                                                                                          |   |         |       |   |   |   |   |   |
| Available for sale, at fair value                                                                                                                   |   |         | 2,095,401  |   |   |   | 2,071,658 |   |
| Held to maturity (fair value $129,496 in 2009 and $23,048 in 2008)                                                                                  |   |         | 127,516    |   |   |   | 22,709 |   |
| Total securities                                                                                                                                    |   |         | 2,222,917  |   |   |   | 2,094,367 |   |
| Loans held for sale (includes $0 in 2009 and $14,681 in 2008 measured at fair value)                                                                |   |         | 15,758     |   |   |   | 30,963 |   |
| Loans held for investment                                                                                                                           |   |         | 8,386,127  |   |   |   | 10,192,072 |   |
| Less:  Allowance for loan losses                                                                                                          |   |         | (365,642   | ) |   |   | (247,086 | ) |
| Net loans held for investment                                                                                                                       |   |         | 8,020,485  |   |   |   | 9,944,986 |   |
| Bank-owned life insurance                                                                                                                           |   |         | 302,830    |   |   |   | 294,843 |   |
| Premises and equipment, net                                                                                                                         |   |         | 261,523    |   |   |   | 282,472 |   |
| Accrued interest receivable                                                                                                                         |   |         | 37,304     |   |   |   | 50,388 |   |
| Goodwill                                                                                                                                            |   |         | 214,118    |   |   |   | 224,161 |   |
| Other intangible assets, net                                                                                                                        |   |         | 15,707     |   |   |   | 21,859 |   |
| Other assets                                                                                                                                        |   |         | 421,032    |   |   |   | 365,902 |   |
| Total assets                                                                                                                                        |   | $            | 11,894,982 |   |   | $ | 13,602,326 |   |
|                                                                                                                                                |   |         |       |   |   |   |   |   |
| Liabilities and Shareholders' Equity                                                                                                                |   |         |       |   |   |   |   |   |
| Liabilities                                                                                                                                         |   |         |       |   |   |   |   |   |
| Deposits                                                                                                                                            |   |         |       |   |   |   |   |   |
| Noninterest-bearing retail and commercial deposits                                                                                                  |   | $            | 1,124,404  |   |   | $ | 1,041,140 |   |
| Interest-bearing retail and commercial deposits                                                                                                     |   |         | 6,225,707  |   |   |   | 6,455,810 |   |
| Total retail and commercial deposits                                                                                                                |   |         | 7,350,111  |   |   |   | 7,496,950 |   |
| Brokered deposits                                                                                                                                   |   |         | 1,946,101  |   |   |   | 1,908,767 |   |
| Total deposits                                                                                                                                      |   |         | 9,296,212  |   |   |   | 9,405,717 |   |
| Short-term borrowings                                                                                                                               |   |         | 322,702    |   |   |   | 1,626,374 |   |
| Long-term debt                                                                                                                                      |   |         | 1,116,869  |   |   |   | 707,769 |   |
| Accrued interest payable                                                                                                                            |   |         | 36,658     |   |   |   | 71,465 |   |
| Other liabilities                                                                                                                                   |   |         | 129,367    |   |   |   | 170,470 |   |
| Total liabilities                                                                                                                                   |   |         | 10,901,808 |   |   |   | 11,981,795 |   |
|                                                                                                                                                |   |         |       |   |   |   |   |   |
| Commitments and contingencies (Note 21)                                                                                                             |   |         |       |   |   |   |   |   |
|                                                                                                                                                |   |         |       |   |   |   |   |   |
| Shareholders' equity                                                                                                                                |   |         |       |   |   |   |   |   |
| Preferred stock-no par value; authorized 10,000,000 shares; issued and outstanding 351,650 shares in 2009 and 585,700 shares in 2008                |   |         | 335,783    |   |   |   | 566,379 |   |
| Common stock-par value $1 per share; authorized 325,000,000 shares; issued and outstanding 215,455,541 shares in 2009 and 74,643,649 shares in 2008 |   |         | 215,456    |   |   |   | 74,644 |   |
| Surplus                                                                                                                                             |   |         | 1,344,984  |   |   |   | 1,135,920 |   |
| Retained deficit                                                                                                                                    |   |         | (934,598   | ) |   |   | (199,540 | ) |
| Accumulated other comprehensive income, net of tax                                                                                                  |   |         | 30,938     |   |   |   | 42,558 |   |
| Other, net                                                                                                                                          |   |         | 611        |   |   |   | 570 |   |
| Total shareholders' equity                                                                                                                          |   |         | 993,174    |   |   |   | 1,620,531 |   |
| Total liabilities and shareholders' equity                                                                                                          |   | $            | 11,894,982 |   |   | $ | 13,602,326 |   |

----

Index 

|                                                  |   | Year Ended December 31, |     |
|-------------------------------------------------------|--------|-------------------------|----------|
|                                                  |   | 2009                    |     |   | 2008 |   |   | 2007 |   |
|                                                  |   |                    |     |   |   |   |   |   |   |
| Interest Income                                       |   |                    |     |   |   |   |   |   |   |
| Interest and fees on loans                            |   | $                       | 466,493  |   |   | $ | 629,966 |   |   | $ | 764,828 |   |
| Interest and dividends on securities:                 |   |                    |     |   |   |   |   |   |   |   |   |   |
| Taxable                                               |   |                    | 73,527   |   |   |   | 81,744 |   |   |   | 103,525 |   |
| Exempt from federal income taxes                      |   |                    | 7,885    |   |   |   | 9,945 |   |   |   | 11,601 |   |
| Total interest and dividends on securities            |   |                    | 81,412   |   |   |   | 91,689 |   |   |   | 115,126 |   |
| Interest on short-term investments                    |   |                    | 1        |   |   |   | 385 |   |   |   | 402 |   |
| Total interest income                                 |   |                    | 547,906  |   |   |   | 722,040 |   |   |   | 880,356 |   |
| Interest Expense                                      |   |                    |     |   |   |   |   |   |   |   |   |   |
| Interest on deposits                                  |   |                    | 190,586  |   |   |   | 275,003 |   |   |   | 368,295 |   |
| Interest on short-term borrowings                     |   |                    | 2,259    |   |   |   | 34,775 |   |   |   | 79,853 |   |
| Interest on long-term debt                            |   |                    | 23,529   |   |   |   | 32,099 |   |   |   | 49,427 |   |
| Total interest expense                                |   |                    | 216,374  |   |   |   | 341,877 |   |   |   | 497,575 |   |
| Net Interest Income                                   |   |                    | 331,532  |   |   |   | 380,163 |   |   |   | 382,781 |   |
| Provision for Credit Losses                           |   |                    | 668,904  |   |   |   | 344,589 |   |   |   | 68,568 |   |
| Net interest income after provision for credit losses |   |                    | (337,372 | ) |   |   | 35,574 |   |   |   | 314,213 |   |
| Noninterest Income                                    |   |                    | 118,033  |   |   |   | 121,967 |   |   |   | 113,712 |   |
| Noninterest Expenses                                  |   |                    | 419,121  |   |   |   | 792,233 |   |   |   | 321,249 |   |
| (Loss) income before income taxes                     |   |                    | (638,460 | ) |   |   | (634,692 | ) |   |   | 106,676 |   |
| Income tax expense (benefit)                          |   |                    | 37,794   |   |   |   | (87,574 | ) |   |   | 33,400 |   |
| Net (Loss) Income                                     |   |                    | (676,254 | ) |   |   | (547,118 | ) |   |   | 73,276 |   |
| Preferred stock dividends                             |   |                    | (24,606  | ) |   |   | (21,261 | ) |   |   | - |   |
| Deemed dividend resulting from induced conversion     |   |                    | (32,388  | ) |   |   | - |   |   |   | - |   |
| Deemed dividend resulting from accretion of discount  |   |                    | (3,454   | ) |   |   | (243 | ) |   |   | - |   |
| Amounts allocated to participating security holders   |   |                    | (241     | ) |   |   | (154 | ) |   |   | (665 | ) |
| Net (Loss) Income Available to Common Shareholders    |   | $                       | (736,943 | ) |   | $ | (568,776 | ) |   | $ | 72,611 |   |
|                                                  |   |                    |     |   |   |   |   |   |   |   |   |   |
| Average Common Shares Outstanding, Basic              |   |                    | 141,208  |   |   |   | 73,137 |   |   |   | 73,618 |   |
| Average Common Shares Outstanding, Diluted            |   |                    | 141,208  |   |   |   | 73,137 |   |   |   | 74,085 |   |
| (Loss) Earnings Per Common Share, Basic               |   | $                       | (5.22    | ) |   | $ | (7.78 | ) |   | $ | 0.99 |   |
| (Loss) Earnings Per Common Share, Diluted             |   |                    | (5.22    | ) |   |   | (7.78 | ) |   |   | 0.98 |   |

----

Index 

|                                                                                    |   |      |        |   |   |   |    |      |   |   |     |   |   | Retained  |      |   |          |   |     |   |   |
|-----------------------------------------------------------------------------------------|--------|-----------|-------------|--------|--------|--------|---------|-----------|--------|--------|----------|--------|--------|-----------|-----------|--------|---------------|--------|----------|--------|--------|
|                                                                                    |   |      |        |   |   |   |    |      |   |   |     |   |   | Earnings  |      |   | Accumulated   |   |     |   |   |
|                                                                                    |   | Shares of |        |   |   |   |    |      |   |   |     |   |   | (Deficit) |      |   | Other         |   |     |   |   |
|                                                                                    |   | Common    |        |   | Common |   |    | Preferred |   |   |     |   |   | and       |      |   | Comprehensive |   |     |   |   |
|                                                                                    |   | Stock     |        |   | Stock  |   |    | Stock     |   |   | Surplus  |   |   | Other     |      |   | Income (Loss) |   |     | Total  |   |
| Balance, December 31, 2006                                                              |   |      | 75,341,276  |   |   | $      | 75,341  |      |   | $      | -        |   |   | $         | 1,167,685 |   |          | $      | 367,110  |   |   | $ | (48,104 | ) |   | $ | 1,562,032 |   |
| Net income                                                                              |   |      | -           |   |   |   | -       |      |   |   | -        |   |   |      | -         |   |          |   | 73,276   |   |   |   | - |   |   |   | 73,276 |   |
| Other comprehensive income, net of tax of $18,292                                       |   |      | -           |   |   |   | -       |      |   |   | -        |   |   |      | -         |   |          |   | -        |   |   |   | 32,295 |   |   |   | 32,295 |   |
| Comprehensive income                                                                    |   |      | -           |   |   |   | -       |      |   |   | -        |   |   |      | -         |   |          |   | -        |   |   |   | - |   |   |   | 105,571 |   |
| Common dividends declared ($0.73 per share)                                             |   |      | -           |   |   |   | -       |      |   |   | -        |   |   |      | -         |   |          |   | (53,695  | )      |   |   | - |   |   |   | (53,695 | ) |
| Common stock activity:                                                                  |   |      |        |   |   |   |    |      |   |   |     |   |   |      |      |   |          |   |     |   |   |   |   |   |   |   |   |   |
| Stock repurchase                                                                        |   |      | (3,600,000  | )      |   |   | (3,600  | )         |   |   | -        |   |   |      | (79,691   | )      |          |   | -        |   |   |   | - |   |   |   | (83,291 | ) |
| Acquisitions                                                                            |   |      | 7,918       |   |   |   | 8       |      |   |   | -        |   |   |      | 183       |   |          |   | -        |   |   |   | - |   |   |   | 191 |   |
| Exercise of options, including tax benefit of $1,067                                    |   |      | 476,386     |   |   |   | 476     |      |   |   | -        |   |   |      | 8,675     |   |          |   | -        |   |   |   | - |   |   |   | 9,151 |   |
| Dividend reinvestment plan                                                              |   |      | 149,021     |   |   |   | 149     |      |   |   | -        |   |   |      | 3,057     |   |          |   | -        |   |   |   | - |   |   |   | 3,206 |   |
| Restricted stock plan                                                                   |   |      | 39,617      |   |   |   | 40      |      |   |   | -        |   |   |      | 3,078     |   |          |   | (293     | )      |   |   | - |   |   |   | 2,825 |   |
| Employee stock purchase plan                                                            |   |      | 19,378      |   |   |   | 19      |      |   |   | -        |   |   |      | 402       |   |          |   | -        |   |   |   | - |   |   |   | 421 |   |
| Director compensation                                                                   |   |      | 22,098      |   |   |   | 22      |      |   |   | -        |   |   |      | 512       |   |          |   | -        |   |   |   | - |   |   |   | 534 |   |
| Cumulative effect of initial application of guidance related to uncertain tax positions |   |      | -           |   |   |   | -       |      |   |   | -        |   |   |      | -         |   |          |   | (488     | )      |   |   | - |   |   |   | (488 | ) |
| Stock option expense                                                                    |   |      | -           |   |   |   | -       |      |   |   | -        |   |   |      | 3,657     |   |          |   | -        |   |   |   | - |   |   |   | 3,657 |   |
| Other, net                                                                              |   |      | (489        | )      |   |   | -       |      |   |   | -        |   |   |      | 43        |   |          |   | 151      |   |   |   | - |   |   |   | 194 |   |
| Balance, December 31, 2007                                                              |   |      | 72,455,205  |   |   |   | 72,455  |      |   |   | -        |   |   |      | 1,107,601 |   |          |   | 386,061  |   |   |   | (15,809 | ) |   |   | 1,550,308 |   |
| Net loss                                                                                |   |      | -           |   |   |   | -       |      |   |   | -        |   |   |      | -         |   |          |   | (547,118 | )      |   |   | - |   |   |   | (547,118 | ) |
| Other comprehensive income, net of tax of $33,288                                       |   |      | -           |   |   |   | -       |      |   |   | -        |   |   |      | -         |   |          |   | -        |   |   |   | 58,367 |   |   |   | 58,367 |   |
| Comprehensive loss                                                                      |   |      | -           |   |   |   | -       |      |   |   | -        |   |   |      | -         |   |          |   | -        |   |   |   | - |   |   |   | (488,751 | ) |
| Issuance of preferred stock                                                             |   |      | -           |   |   |   | -       |      |   |   | 577,436  |   |   |      | (12,030   | )      |          |   | -        |   |   |   | - |   |   |   | 565,406 |   |
| Issuance of warrant to U. S. Treasury Department                                        |   |      | -           |   |   |   | -       |      |   |   | -        |   |   |      | 19,564    |   |          |   | -        |   |   |   | - |   |   |   | 19,564 |   |
| Common dividends declared ($0.22 per share)                                             |   |      | -           |   |   |   | -       |      |   |   | -        |   |   |      | -         |   |          |   | (16,089  | )      |   |   | - |   |   |   | (16,089 | ) |
| Preferred dividends declared                                                            |   |      | -           |   |   |   | -       |      |   |   | -        |   |   |      | -         |   |          |   | (21,261  | )      |   |   | - |   |   |   | (21,261 | ) |
| Accretion of discount on preferred stock                                                |   |      | -           |   |   |   | -       |      |   |   | 243      |   |   |      | -         |   |          |   | (243     | )      |   |   | - |   |   |   | - |   |
| Common stock activity:                                                                  |   |      |        |   |   |   |    |      |   |   |     |   |   |      |      |   |          |   |     |   |   |   |   |   |   |   |   |   |
| Conversion of preferred stock                                                           |   |      | 1,738,454   |   |   |   | 1,739   |      |   |   | (11,300  | )      |   |      | 9,561     |   |          |   | -        |   |   |   | - |   |   |   | - |   |
| Dividend reinvestment plan                                                              |   |      | 225,805     |   |   |   | 226     |      |   |   | -        |   |   |      | 1,707     |   |          |   | -        |   |   |   | - |   |   |   | 1,933 |   |
| Restricted stock plan                                                                   |   |      | 96,635      |   |   |   | 97      |      |   |   | -        |   |   |      | 5,604     |   |          |   | (163     | )      |   |   | - |   |   |   | 5,538 |   |
| Director compensation                                                                   |   |      | 70,422      |   |   |   | 70      |      |   |   | -        |   |   |      | 460       |   |          |   | -        |   |   |   | - |   |   |   | 530 |   |
| Employee stock purchase plan                                                            |   |      | 49,123      |   |   |   | 49      |      |   |   | -        |   |   |      | 276       |   |          |   | -        |   |   |   | - |   |   |   | 325 |   |
| Acquisitions                                                                            |   |      | 4,403       |   |   |   | 4       |      |   |   | -        |   |   |      | 20        |   |          |   | -        |   |   |   | - |   |   |   | 24 |   |
| Exercise of options, including tax benefit of $6                                        |   |      | 3,602       |   |   |   | 4       |      |   |   | -        |   |   |      | 37        |   |          |   | -        |   |   |   | - |   |   |   | 41 |   |
| Cumulative effect of initial application of guidance related to:                        |   |      |        |   |   |   |    |      |   |   |     |   |   |      |      |   |          |   |     |   |   |   |   |   |   |   |   |   |
| Fair value option, net of tax of $32                                                    |   |      | -           |   |   |   | -       |      |   |   | -        |   |   |      | -         |   |          |   | 60       |   |   |   | - |   |   |   | 60 |   |
| Endorsement split-dollar life insurance                                                 |   |      | -           |   |   |   | -       |      |   |   | -        |   |   |      | -         |   |          |   | (737     | )      |   |   | - |   |   |   | (737 | ) |
| Stock option expense                                                                    |   |      | -           |   |   |   | -       |      |   |   | -        |   |   |      | 3,179     |   |          |   | -        |   |   |   | - |   |   |   | 3,179 |   |
| Other, net                                                                              |   |      | -           |   |   |   | -       |      |   |   | -        |   |   |      | (59       | )      |          |   | 520      |   |   |   | - |   |   |   | 461 |   |
| Balance, December 31, 2008                                                              |   |      | 74,643,649  |   |   |   | 74,644  |      |   |   | 566,379  |   |   |      | 1,135,920 |   |          |   | (198,970 | )      |   |   | 42,558 |   |   |   | 1,620,531 |   |
| Net loss                                                                                |   |      | -           |   |   |   | -       |      |   |   | -        |   |   |      | -         |   |          |   | (676,254 | )      |   |   | - |   |   |   | (676,254 | ) |
| Other comprehensive loss, net of tax of $6,606                                          |   |      | -           |   |   |   | -       |      |   |   | -        |   |   |      | -         |   |          |   | -        |   |   |   | (11,620 | ) |   |   | (11,620 | ) |
| Comprehensive loss                                                                      |   |      | -           |   |   |   | -       |      |   |   | -        |   |   |      | -         |   |          |   | -        |   |   |   | - |   |   |   | (687,874 | ) |
| Common dividends declared ($0.02 per share)                                             |   |      | -           |   |   |   | -       |      |   |   | -        |   |   |      | -         |   |          |   | (2,694   | )      |   |   | - |   |   |   | (2,694 | ) |
| Preferred dividends                                                                     |   |      | -           |   |   |   | -       |      |   |   | -        |   |   |      | -         |   |          |   | (20,268  | )      |   |   | - |   |   |   | (20,268 | ) |
| Accretion of discount on preferred stock                                                |   |      | -           |   |   |   | -       |      |   |   | 3,454    |   |   |      | -         |   |          |   | (3,454   | )      |   |   | - |   |   |   | - |   |
| Common stock activity:                                                                  |   |      |        |   |   |   |    |      |   |   |     |   |   |      |      |   |          |   |     |   |   |   |   |   |   |   |   |   |
| Issuance of common stock                                                                |   |      | 85,000,000  |   |   |   | 85,000  |      |   |   | -        |   |   |      | (5,275    | )      |          |   | -        |   |   |   | - |   |   |   | 79,725 |   |
| Conversion of preferred stock                                                           |   |      | 54,892,158  |   |   |   | 54,892  |      |   |   | (234,050 | )      |   |      | 210,180   |   |          |   | (32,388  | )      |   |   | - |   |   |   | (1,366 | ) |
| Restricted stock plan                                                                   |   |      | 348,561     |   |   |   | 349     |      |   |   | -        |   |   |      | 1,233     |   |          |   | -        |   |   |   | - |   |   |   | 1,582 |   |
| Director compensation                                                                   |   |      | 144,763     |   |   |   | 145     |      |   |   | -        |   |   |      | 102       |   |          |   | -        |   |   |   | - |   |   |   | 247 |   |
| Dividend reinvestment plan                                                              |   |      | 150,627     |   |   |   | 151     |      |   |   | -        |   |   |      | 78        |   |          |   | -        |   |   |   | - |   |   |   | 229 |   |
| Employee stock purchase plan                                                            |   |      | 185,400     |   |   |   | 185     |      |   |   | -        |   |   |      | 68        |   |          |   | -        |   |   |   | - |   |   |   | 253 |   |
| Settlement of shareholder lawsuit                                                       |   |      | 91,033      |   |   |   | 91      |      |   |   | -        |   |   |      | 15        |   |          |   | -        |   |   |   | - |   |   |   | 106 |   |
| Stock option expense                                                                    |   |      | -           |   |   |   | -       |      |   |   | -        |   |   |      | 2,653     |   |          |   | -        |   |   |   | - |   |   |   | 2,653 |   |
| Other, net                                                                              |   |      | (650        | )      |   |   | (1      | )         |   |   | -        |   |   |      | 10        |   |          |   | 41       |   |   |   | - |   |   |   | 50 |   |
| Balance, December 31, 2009                                                              |   |      | 215,455,541 |   |   | $      | 215,456 |      |   | $      | 335,783  |   |   | $         | 1,344,984 |   |          | $      | (933,987 | )      |   | $ | 30,938 |   |   | $ | 993,174 |   |

----

Index 

|                                                                                    |   | Year Ended December 31, |       |
|-----------------------------------------------------------------------------------------|--------|-------------------------|------------|
|                                                                                    |   | 2009                    |       |   | 2008 |   |   | 2007 |   |
|                                                                                    |   |                    |       |   |   |   |   |   |   |
| Cash Flows from Operating Activities                                                    |   |                    |       |   |   |   |   |   |   |
| Net (loss) income                                                                       |   | $                       | (676,254   | ) |   | $ | (547,118 | ) |   | $ | 73,276 |   |
| Adjustments to reconcile net (loss) income to net cash provided by operating activities |   |                    |       |   |   |   |   |   |   |   |   |   |
| Provision for credit losses                                                             |   |                    | 668,904    |   |   |   | 344,589 |   |   |   | 68,568 |   |
| Deferred income tax expense (benefit)                                                   |   |                    | 57,699     |   |   |   | (47,206 | ) |   |   | 7,426 |   |
| Depreciation, amortization, and accretion, net                                          |   |                    | 39,258     |   |   |   | 38,691 |   |   |   | 33,963 |   |
| Loss on other real estate owned                                                         |   |                    | 32,435     |   |   |   | 633 |   |   |   | 401 |   |
| Impairment of long-lived assets                                                         |   |                    | 21,600     |   |   |   | - |   |   |   | - |   |
| Loss on non-mortgage loans held for sale                                                |   |                    | 11,776     |   |   |   | 283 |   |   |   | - |   |
| (Gain) loss on securities                                                               |   |                    | (8,034     | ) |   |   | (3,108 | ) |   |   | 4,623 |   |
| Gain on sale of ancillary businesses                                                    |   |                    | (7,234     | ) |   |   | - |   |   |   | - |   |
| Share-based compensation expense                                                        |   |                    | 4,890      |   |   |   | 9,936 |   |   |   | 7,469 |   |
| (Gain) loss on certain derivative activities                                            |   |                    | (3,849     | ) |   |   | 207 |   |   |   | 1,197 |   |
| (Gain) loss on early extinguishment of debt                                             |   |                    | (3,043     | ) |   |   | 2,086 |   |   |   | 2,029 |   |
| Gain on sale of mortgage loans                                                          |   |                    | (2,737     | ) |   |   | (3,314 | ) |   |   | (5,179 | ) |
| Goodwill impairment                                                                     |   |                    | 2,511      |   |   |   | 426,049 |   |   |   | - |   |
| Loss on disposition of premises and equipment                                           |   |                    | 279        |   |   |   | 342 |   |   |   | 70 |   |
| Gain on Visa IPO share redemption                                                       |   |                    | -          |   |   |   | (1,904 | ) |   |   | - |   |
| Excess tax benefits from share-based compensation                                       |   |                    | -          |   |   |   | (6 | ) |   |   | (1,067 | ) |
| Loss on derivative collateral                                                           |   |                    | -          |   |   |   | 1,061 |   |   |   | - |   |
| Origination of loans held for sale                                                      |   |                    | (320,535   | ) |   |   | (251,144 | ) |   |   | (411,539 | ) |
| Sale of loans held for sale and principal repayments                                    |   |                    | 346,035    |   |   |   | 278,840 |   |   |   | 454,948 |   |
| Increase in other assets                                                                |   |                    | (88,599    | ) |   |   | (17,732 | ) |   |   | (6,364 | ) |
| (Decrease) increase in other liabilities                                                |   |                    | (39,052    | ) |   |   | 12,861 |   |   |   | (12,894 | ) |
| Net cash provided by operating activities                                               |   |                    | 36,050     |   |   |   | 244,046 |   |   |   | 216,927 |   |
|                                                                                    |   |                    |       |   |   |   |   |   |   |   |   |   |
| Cash Flows from Investing Activities                                                    |   |                    |       |   |   |   |   |   |   |   |   |   |
| Sale of securities available for sale                                                   |   |                    | 464,368    |   |   |   | 257,483 |   |   |   | 309,110 |   |
| Maturity, redemption, call, or principal repayments of securities available for sale    |   |                    | 635,835    |   |   |   | 490,181 |   |   |   | 483,630 |   |
| Maturity, redemption, call, or principal repayments of securities held to maturity      |   |                    | 25,190     |   |   |   | 16,983 |   |   |   | 12,655 |   |
| Purchase of securities available for sale                                               |   |                    | (1,101,469 | ) |   |   | (813,272 | ) |   |   | (12,616 | ) |
| Purchase of securities held to maturity                                                 |   |                    | (131,435   | ) |   |   | - |   |   |   | (140 | ) |
| Net repayments (originations) of loans held for investment                              |   |                    | 618,048    |   |   |   | (328,088 | ) |   |   | (601,055 | ) |
| Sale of loans held for investment                                                       |   |                    | 461,422    |   |   |   | 41,163 |   |   |   | - |   |
| Sale of other real estate owned                                                         |   |                    | 55,208     |   |   |   | 12,324 |   |   |   | 4,746 |   |
| Sale of premises and equipment                                                          |   |                    | 123        |   |   |   | 9 |   |   |   | 445 |   |
| Purchase of premises and equipment                                                      |   |                    | (37,332    | ) |   |   | (57,917 | ) |   |   | (35,658 | ) |
| Sale of long lived assets held for sale                                                 |   |                    | 6,745      |   |   |   | - |   |   |   | - |   |
| Proceeds from sale of ancillary businesses                                              |   |                    | 16,584     |   |   |   | - |   |   |   | - |   |
| Cash equivalents acquired, net of payment for purchase acquisitions                     |   |                    | (321       | ) |   |   | 3,332 |   |   |   | (363 | ) |
| Net cash provided by (used for) investing activities                                    |   |                    | 1,012,966  |   |   |   | (377,802 | ) |   |   | 160,754 |   |

----

Index 

|                                                                          |   | Year Ended December 31, |       |
|-------------------------------------------------------------------------------|--------|-------------------------|------------|
|                                                                          |   | 2009                    |       |   | 2008 |   |   | 2007 |   |
|                                                                          |   |                    |       |   |   |   |   |   |   |
| Cash Flows from Financing Activities                                          |   |                    |       |   |   |   |   |   |   |
| (Decrease) increase in deposits                                               |   | $                       | (112,370   | ) |   | $ | (407,440 | ) |   | $ | 249,876 |   |
| Decrease in short-term borrowings                                             |   |                    | (1,303,699 | ) |   |   | (12,140 | ) |   |   | (132,959 | ) |
| Issuance of long-term debt                                                    |   |                    | 550,000    |   |   |   | 203,320 |   |   |   | 126,290 |   |
| Payment of long-term debt                                                     |   |                    | (137,866   | ) |   |   | (200,169 | ) |   |   | (557,726 | ) |
| Cash dividends paid on common stock                                           |   |                    | (3,440     | ) |   |   | (29,106 | ) |   |   | (53,493 | ) |
| Cash dividends paid on preferred stock                                        |   |                    | (29,609    | ) |   |   | (11,920 | ) |   |   | - |   |
| Issuance of common stock, net                                                 |   |                    | 79,725     |   |   |   | - |   |   |   | - |   |
| Repurchase of common stock                                                    |   |                    | -          |   |   |   | - |   |   |   | (83,291 | ) |
| Conversion of preferred stock                                                 |   |                    | (1,366     | ) |   |   | - |   |   |   | - |   |
| Issuance of preferred stock and warrant, net                                  |   |                    | -          |   |   |   | 584,970 |   |   |   | - |   |
| Excess tax benefits from share-based compensation                             |   |                    | -          |   |   |   | 6 |   |   |   | 1,067 |   |
| Other common stock activity                                                   |   |                    | 532        |   |   |   | 2,095 |   |   |   | 11,249 |   |
|     Net cash (used for) provided by financing activities  |   |                    | (958,093   | ) |   |   | 129,616 |   |   |   | (438,987 | ) |
| Net change in cash and cash equivalents                                       |   |                    | 90,923     |   |   |   | (4,140 | ) |   |   | (61,306 | ) |
| Cash and cash equivalents at beginning of year                                |   |                    | 292,385    |   |   |   | 296,525 |   |   |   | 357,831 |   |
| Cash and cash equivalents at end of year                                      |   | $                       | 383,308    |   |   | $ | 292,385 |   |   | $ | 296,525 |   |
|                                                                          |   |                    |       |   |   |   |   |   |   |   |   |   |
| Supplemental Cash Flow Data                                                   |   |                    |       |   |   |   |   |   |   |   |   |   |
| Interest paid, net of amounts capitalized                                     |   | $                       | 244,169    |   |   | $ | 355,460 |   |   | $ | 492,913 |   |
| Income tax (refunds) payments, net                                            |   |                    | (47,023    | ) |   |   | (5,927 | ) |   |   | 30,313 |   |
| Significant non-cash investing and financing transactions:                    |   |                    |       |   |   |   |   |   |   |   |   |   |
|    Unrealized gain on available for sale securities            |   |                    | 17,493     |   |   |   | 59,790 |   |   |   | 26,461 |   |
|    Conversion of preferred stock into common stock             |   |                    | 234,050    |   |   |   | 11,300 |   |   |   | - |   |
|    Loans transferred from held for investment to held for sale |   |                    | 557,019    |   |   |   | 63,929 |   |   |   | - |   |
|    Loans transferred from held for sale to held for investment |   |                    | -          |   |   |   | 3,060 |   |   |   | 59 |   |
|    Loans transferred to other real estate owned                |   |                    | 165,061    |   |   |   | 51,158 |   |   |   | 8,173 |   |
|                                                                          |   |                    |       |   |   |   |   |   |   |   |   |   |
|                                                                          |   |                    |       |   |   |

----

Index 

| Note 1. | Summary of Significant Accounting Policies |
|---------|--------------------------------------------|

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Index 

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Index 

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Index 

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Index 

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----

Index 

|   | · | Level 1 – Valuations are based on quoted prices in active markets for identical assets and liabilities. Level 1 assets include debt and equity securities that are traded in an active exchange market, as well as certain U.S. Treasury securities that are highly liquid and are actively traded in over-the-counter markets. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Level 2 – Valuations are based on observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments and derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. This category generally includes U.S. government agencies, agency mortgage-backed debt securities, private-label mortgage-backed debt securities, state and municipal bonds, and certain derivative contracts. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Level 3 – Valuations include unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets. For example, this category includes certain derivative contracts for which independent pricing information is not available for a significant portion of the underlying assets. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Index 

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Index 

|                                                                                          |   | 2009   |     |   | 2008   |   |     | 2007   |   |
|-----------------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|----------|--------|--------|
| Net Unrealized Gains (Losses) on Securities Available for Sale                                |   |   |     |   |   |   |     |   |   |
| Balance at beginning of year                                                                  |   | $      | 6,890    |   |   | $      | (30,765  | )      |   | $ | (47,378 | ) |
| Other comprehensive income:                                                                   |   |   |     |   |   |   |     |   |   |   |   |   |
| Unrealized holding gains arising during the period                                            |   |   | 28,765   |   |   |   | 59,236   |   |   |   | 23,129 |   |
| Income tax expense                                                                            |   |   | (9,841   | )      |   |   | (21,941  | )      |   |   | (8,682 | ) |
| Less: Reclassification adjustment for (gains) losses included in net (loss) income            |   |   | (11,272  | )      |   |   | 554      |   |   |   | 3,332 |   |
|       Income tax expense (benefit)                                   |   |   | 3,945    |   |   |   | (194     | )      |   |   | (1,166 | ) |
|                                                                                          |   |   | 11,597   |   |   |   | 37,655   |   |   |   | 16,613 |   |
| Balance at end of year                                                                        |   |   | 18,487   |   |   |   | 6,890    |   |   |   | (30,765 | ) |
|                                                                                          |   |   |     |   |   |   |     |   |   |   |   |   |
| Net Unrealized Gains (Losses) on Cash Flow Hedges                                             |   |   |     |   |   |   |     |   |   |   |   |   |
| Balance at beginning of year                                                                  |   |   | 35,668   |   |   |   | 14,956   |   |   |   | (726 | ) |
| Other comprehensive income (loss):                                                            |   |   |     |   |   |   |     |   |   |   |   |   |
| Unrealized gain on change in fair values                                                      |   |   | 8,529    |   |   |   | 57,412   |   |   |   | 22,337 |   |
| Income tax expense                                                                            |   |   | (2,985   | )      |   |   | (20,094  | )      |   |   | (7,818 | ) |
| Less:  Reclassification adjustment for (gains) losses included in net (loss) income |   |   | (44,248  | )      |   |   | (25,547  | )      |   |   | 1,789 |   |
|        Income tax expense (benefit)                             |   |   | 15,487   |   |   |   | 8,941    |   |   |   | (626 | ) |
|                                                                                          |   |   | (23,217  | )      |   |   | 20,712   |   |   |   | 15,682 |   |
| Balance at end of year                                                                        |   |   | 12,451   |   |   |   | 35,668   |   |   |   | 14,956 |   |
|                                                                                          |   | $      | 30,938   |   |   | $      | 42,558   |   |   | $ | (15,809 | ) |
|                                                                                          |   |   |     |   |   |   |     |   |   |   |   |   |
| Total other comprehensive (loss) income                                                       |   | $      | (11,620  | )      |   | $      | 58,367   |   |   | $ | 32,295 |   |
| Net (loss) income                                                                             |   |   | (676,254 | )      |   |   | (547,118 | )      |   |   | 73,276 |   |
| Comprehensive (loss) income                                                                   |   | $      | (687,874 | )      |   | $      | (488,751 | )      |   | $ | 105,571 |   |

----

Index 

|                                                             |   | 2009   |    |   | 2008   |   |    | 2007   |   |
|------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| Noninterest Income                                               |   |   |    |   |   |   |    |   |   |
| Service charges on deposit accounts                              |   | $      | 39,659  |   |   | $      | 42,940  |   |   | $ | 44,519 |   |
| Debit card income, net                                           |   |   | 8,305   |   |   |   | 7,805   |   |   |   | 7,182 |   |
| Customer service fee income                                      |   |   | 4,839   |   |   |   | 5,335   |   |   |   | 5,648 |   |
| Total customer fee income                                        |   |   | 52,803  |   |   |   | 56,080  |   |   |   | 57,349 |   |
|                                                             |   |   |    |   |   |   |    |   |   |   |   |   |
| Insurance income                                                 |   |   | 7,800   |   |   |   | 10,082  |   |   |   | 12,029 |   |
| Retail investment services, net                                  |   |   | 7,703   |   |   |   | 7,711   |   |   |   | 7,902 |   |
| Trust and investment management income                           |   |   | 5,135   |   |   |   | 6,688   |   |   |   | 6,595 |   |
| Benefits administration fees                                     |   |   | 1,213   |   |   |   | 3,136   |   |   |   | 3,261 |   |
| Total wealth management income                                   |   |   | 21,851  |   |   |   | 27,617  |   |   |   | 29,787 |   |
|                                                             |   |   |    |   |   |   |    |   |   |   |   |   |
| Bank-owned life insurance income                                 |   |   | 9,515   |   |   |   | 12,877  |   |   |   | 13,344 |   |
| Gain (loss) on securities                                        |   |   | 8,034   |   |   |   | 3,108   |   |   |   | (4,623 | ) |
| Gain on sale of ancillary businesses                             |   |   | 7,234   |   |   |   | -       |   |   |   | - |   |
| Mortgage banking income                                          |   |   | 5,694   |   |   |   | 5,260   |   |   |   | 6,053 |   |
| Gain (loss) on trading and certain derivative activities         |   |   | 3,849   |   |   |   | (207    | )      |   |   | (1,197 | ) |
| Merchant processing income, net                                  |   |   | 2,018   |   |   |   | 3,279   |   |   |   | 3,263 |   |
| Gain on Visa IPO share redemption                                |   |   | -       |   |   |   | 1,904   |   |   |   | - |   |
| Other                                                            |   |   | 7,035   |   |   |   | 12,049  |   |   |   | 9,736 |   |
| Total noninterest income                                         |   | $      | 118,033 |   |   | $      | 121,967 |   |   | $ | 113,712 |   |
|                                                             |   |   |    |   |   |   |    |   |   |   |   |   |
| Noninterest Expenses                                             |   |   |    |   |   |   |    |   |   |   |   |   |
| Salaries and wages, excluding employment contracts and severance |   | $      | 133,548 |   |   | $      | 144,037 |   |   | $ | 137,085 |   |
| Employment contracts and severance                               |   |   | 829     |   |   |   | 16,519  |   |   |   | 2,306 |   |
| Total salaries and wages                                         |   |   | 134,377 |   |   |   | 160,556 |   |   |   | 139,391 |   |
|                                                             |   |   |    |   |   |   |    |   |   |   |   |   |
| Occupancy                                                        |   |   | 38,200  |   |   |   | 37,311  |   |   |   | 34,659 |   |
| Employee benefits                                                |   |   | 32,893  |   |   |   | 38,200  |   |   |   | 37,098 |   |
| Loss on other real estate owned                                  |   |   | 32,435  |   |   |   | 633     |   |   |   | - |   |
| Regulatory assessments                                           |   |   | 29,293  |   |   |   | 10,923  |   |   |   | 2,628 |   |
| Furniture and equipment                                          |   |   | 27,758  |   |   |   | 27,561  |   |   |   | 26,081 |   |
| Loan collection and foreclosed asset expense                     |   |   | 27,090  |   |   |   | 12,431  |   |   |   | 3,665 |   |
| Impairment of long-lived assets                                  |   |   | 21,600  |   |   |   | -       |   |   |   | - |   |
| Professional services                                            |   |   | 16,768  |   |   |   | 16,212  |   |   |   | 17,062 |   |
| Project NOW expense                                              |   |   | 1,693   |   |   |   | 271     |   |   |   | - |   |
| Loss on non-mortgage loans held for sale(1)                      |   |   | 11,776  |   |   |   | 283     |   |   |   | - |   |
| Telecommunications                                               |   |   | 6,197   |   |   |   | 6,140   |   |   |   | 5,668 |   |
| Advertising and business development                             |   |   | 5,947   |   |   |   | 9,927   |   |   |   | 7,401 |   |
| Amortization of intangibles                                      |   |   | 4,917   |   |   |   | 6,138   |   |   |   | 7,897 |   |
| (Gain) loss on early extinguishment of debt                      |   |   | (3,043  | )      |   |   | 2,086   |   |   |   | 2,029 |   |
| Goodwill impairment                                              |   |   | 2,511   |   |   |   | 426,049 |   |   |   | - |   |
| Loss of repurchase of auction rate securities                    |   |   | 676     |   |   |   | -       |   |   |   | - |   |
| Loss on derivative collateral                                    |   |   | -       |   |   |   | 1,061   |   |   |   | - |   |
| Branch acquisition and conversion costs                          |   |   | -       |   |   |   | 731     |   |   |   | - |   |
| Visa-related litigation                                          |   |   | -       |   |   |   | (863    | )      |   |   | 881 |   |
| Other                                                            |   |   | 28,033  |   |   |   | 36,583  |   |   |   | 36,789 |   |
| Total noninterest expenses                                       |   | $      | 419,121 |   |   | $      | 792,233 |   |   | $ | 321,249 |   |

|   | (1) | In 2009, TSFG reclassified loss on non-mortgage loans held for sale from noninterest income to noninterest expense. Amounts for prior periods have been reclassified to conform to the current presentation. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index 

|                                                 |   | 2009      |      |
|------------------------------------------------------|--------|-----------|-----------|
|                                                 |   |      |      |   | Gross |   |   | Gross |   |   |   |   |
|                                                 |   | Amortized |      |   | Unrealized |   |   | Unrealized |   |   | Estimated |   |
|                                                 |   | Cost      |      |   | Gains |   |   | Losses |   |   | Fair Value |   |
| Securities Available for Sale                        |   |      |      |   |   |   |   |   |   |   |   |   |
| U.S. Treasury                                        |   | $         | 2,069     |   |   | $ | - |   |   | $ | 24 |   |   | $ | 2,045 |   |
| U.S. Government agencies                             |   |      | 78,696    |   |   |   | 1,011 |   |   |   | - |   |   |   | 79,707 |   |
| Agency residential mortgage-backed securities        |   |      | 1,952,386 |   |   |   | 34,984 |   |   |   | 7,065 |   |   |   | 1,980,305 |   |
| Private label residential mortgage-backed securities |   |      | 8,757     |   |   |   | 12 |   |   |   | 265 |   |   |   | 8,504 |   |
| State and municipals                                 |   |      | 23,086    |   |   |   | 76 |   |   |   | 4 |   |   |   | 23,158 |   |
| Other investments                                    |   |      | 1,964     |   |   |   | 24 |   |   |   | 306 |   |   |   | 1,682 |   |
|                                                 |   | $         | 2,066,958 |   |   | $ | 36,107 |   |   | $ | 7,664 |   |   | $ | 2,095,401 |   |
|                                                 |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Securities Held to Maturity                          |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| State and municipals                                 |   | $         | 16,217    |   |   | $ | 411 |   |   | $ | 9 |   |   | $ | 16,619 |   |
| Agency residential mortgage-backed securities        |   |      | 111,199   |   |   |   | 1,578 |   |   |   | - |   |   |   | 112,777 |   |
| Other investments                                    |   |      | 100       |   |   |   | - |   |   |   | - |   |   |   | 100 |   |
|                                                 |   | $         | 127,516   |   |   | $ | 1,989 |   |   | $ | 9 |   |   | $ | 129,496 |   |

----

Index 

|                                                 |   | 2008      |      |
|------------------------------------------------------|--------|-----------|-----------|
|                                                 |   |      |      |   | Gross |   |   | Gross |   |   |   |   |
|                                                 |   | Amortized |      |   | Unrealized |   |   | Unrealized |   |   | Estimated |   |
|                                                 |   | Cost      |      |   | Gains |   |   | Losses |   |   | Fair Value |   |
| Securities Available for Sale                        |   |      |      |   |   |   |   |   |   |   |   |   |
| U.S. Treasury                                        |   | $         | 2,001     |   |   | $ | 68 |   |   | $ | - |   |   | $ | 2,069 |   |
| U.S. Government agencies                             |   |      | 307,025   |   |   |   | 6,704 |   |   |   | - |   |   |   | 313,729 |   |
| Agency residential mortgage-backed securities        |   |      | 1,467,516 |   |   |   | 14,632 |   |   |   | 13,509 |   |   |   | 1,468,639 |   |
| Private label residential mortgage-backed securities |   |      | 14,850    |   |   |   | - |   |   |   | 2,079 |   |   |   | 12,771 |   |
| State and municipals                                 |   |      | 256,755   |   |   |   | 5,673 |   |   |   | 180 |   |   |   | 262,248 |   |
| Other investments (1)                                |   |      | 12,562    |   |   |   | 87 |   |   |   | 447 |   |   |   | 12,202 |   |
|                                                 |   | $         | 2,060,709 |   |   | $ | 27,164 |   |   | $ | 16,215 |   |   | $ | 2,071,658 |   |
|                                                 |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Securities Held to Maturity                          |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| State and municipals                                 |   | $         | 22,609    |   |   | $ | 343 |   |   | $ | 4 |   |   | $ | 22,948 |   |
| Other investments                                    |   |      | 100       |   |   |   | - |   |   |   | - |   |   |   | 100 |   |
|                                                 |   | $         | 22,709    |   |   | $ | 343 |   |   | $ | 4 |   |   | $ | 23,048 |   |

|   |   |
|--------|--------|

|   | (1) | During 2009, TSFG reclassified FHLB stock from securities available for sale to other assets. Amounts for prior periods have been reclassified to conform to the current presentation. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                   |   | December 31, 2009 |      |
|----------------------------------------|--------|-------------------|-----------|
|                                   |   | Amortized         |      |   | Estimated |   |
|                                   |   | Cost              |      |   | Fair Value |   |
| Securities Available for Sale          |   |              |      |   |   |   |
| Due in one year or less                |   | $                 | 63,721    |   |   | $ | 64,933 |   |
| Due after one year through five years  |   |              | 1,255,518 |   |   |   | 1,261,400 |   |
| Due after five years through ten years |   |              | 169,980   |   |   |   | 175,253 |   |
| Due after ten years                    |   |              | 575,777   |   |   |   | 592,135 |   |
| No contractual maturity                |   |              | 1,962     |   |   |   | 1,680 |   |
|                                   |   | $                 | 2,066,958 |   |   | $ | 2,095,401 |   |
|                                   |   |              |      |   |   |   |   |   |
| Securities Held to Maturity            |   |              |      |   |   |   |   |   |
| Due in one year or less                |   | $                 | 4,836     |   |   | $ | 4,859 |   |
| Due after one year through five years  |   |              | 121,946   |   |   |   | 123,908 |   |
| Due after five years through ten years |   |              | 734       |   |   |   | 729 |   |
| Due after ten years                    |   |              | -         |   |   |   | - |   |
| No contractual maturity                |   |              | -         |   |   |   | - |   |
|                                   |   | $                 | 127,516   |   |   | $ | 129,496 |   |

----

Index 

|                                                 |   | 2009   |    |   | 2008   |   |    | 2007   |   |
|------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| Proceeds from sales of securities available for sale |   | $      | 464,368 |   |   | $      | 257,483 |   |   | $ | 309,110 |   |
|                                                 |   |   |    |   |   |   |    |   |   |   |   |   |
| Sales transactions of securities available for sale: |   |   |    |   |   |   |    |   |   |   |   |   |
| Gross realized gains                                 |   | $      | 13,520  |   |   | $      | 2,544   |   |   | $ | 2,795 |   |
| Gross realized losses (1)                            |   |   | (1,813  | )      |   |   | (986    | )      |   |   | (5,427 | ) |
| Other securities transactions:                       |   |   |    |   |   |   |    |   |   |   |   |   |
| Gross realized gains                                 |   |   | 641     |   |   |   | 4,262   |   |   |   | - |   |
| Gross realized losses                                |   |   | -       |   |   |   | (6      | )      |   |   | - |   |
| Other-than-temporary impairment                      |   |   | (4,314  | )      |   |   | (2,706  | )      |   |   | (1,991 | ) |
| Net gain (loss) on securities                        |   | $      | 8,034   |   |   | $      | 3,108   |   |   | $ | (4,623 | ) |

|   | (1) | Includes impairment losses on securities subsequently sold. |
|--------|-----|-------------------------------------------------------------|

|                                                 |   | 2009                |    |
|------------------------------------------------------|--------|---------------------|---------|
|                                                 |   | Less than 12 Months |    |   | 12 Months or Longer |   |   | Total |   |
|                                                 |   | Fair                |    |   | Unrealized |   |   | Fair |   |   | Unrealized |   |   | Fair |   |   | Unrealized |   |
|                                                 |   | Value               |    |   | Losses |   |   | Value |   |   | Losses |   |   | Value |   |   | Losses |   |
| Securities Available for Sale                        |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| US Treasury                                          |   | $                   | 2,045   |   |   | $ | 24 |   |   | $ | - |   |   | $ | - |   |   | $ | 2,045 |   |   | $ | 24 |   |
| Agency residential mortgage-backed securities        |   |                | 758,427 |   |   |   | 7,053 |   |   |   | 2,572 |   |   |   | 12 |   |   |   | 760,999 |   |   |   | 7,065 |   |
|                                                 |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Private label residential mortgage-backed securities |   |                | -       |   |   |   | - |   |   |   | 2,392 |   |   |   | 265 |   |   |   | 2,392 |   |   |   | 265 |   |
| State and municipals                                 |   |                | -       |   |   |   | - |   |   |   | 648 |   |   |   | 4 |   |   |   | 648 |   |   |   | 4 |   |
| Other investments                                    |   |                | 399     |   |   |   | 116 |   |   |   | 830 |   |   |   | 190 |   |   |   | 1,229 |   |   |   | 306 |   |
|                                                 |   | $                   | 760,871 |   |   | $ | 7,193 |   |   | $ | 6,442 |   |   | $ | 471 |   |   | $ | 767,313 |   |   | $ | 7,664 |   |
|                                                 |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Securities Held to Maturity                          |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| State and municipals                                 |   | $                   | 1,237   |   |   | $ | 9 |   |   | $ | - |   |   | $ | - |   |   | $ | 1,237 |   |   | $ | 9 |   |

|                                                 |   | 2008                |    |
|------------------------------------------------------|--------|---------------------|---------|
|                                                 |   | Less than 12 Months |    |   | 12 Months or Longer |   |   | Total |   |
|                                                 |   | Fair                |    |   | Unrealized |   |   | Fair |   |   | Unrealized |   |   | Fair |   |   | Unrealized |   |
|                                                 |   | Value               |    |   | Losses |   |   | Value |   |   | Losses |   |   | Value |   |   | Losses |   |
| Securities Available for Sale                        |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Agency residential mortgage-backed securities        |   | $                   | 342,792 |   |   | $ | 3,062 |   |   | $ | 399,557 |   |   | $ | 10,447 |   |   | $ | 742,349 |   |   | $ | 13,509 |   |
| Private label residential mortgage-backed securities |   |                | 12,771  |   |   |   | 2,079 |   |   |   | - |   |   |   | - |   |   |   | 12,771 |   |   |   | 2,079 |   |
| State and municipals                                 |   |                | 4,230   |   |   |   | 148 |   |   |   | 1,854 |   |   |   | 32 |   |   |   | 6,084 |   |   |   | 180 |   |
| Other investments                                    |   |                | 369     |   |   |   | 128 |   |   |   | 700 |   |   |   | 319 |   |   |   | 1,069 |   |   |   | 447 |   |
|                                                 |   | $                   | 360,162 |   |   | $ | 5,417 |   |   | $ | 402,111 |   |   | $ | 10,798 |   |   | $ | 762,273 |   |   | $ | 16,215 |   |
|                                                 |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Securities Held to Maturity                          |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| State and municipals                                 |   | $                   | -       |   |   | $ | - |   |   | $ | 1,036 |   |   | $ | 4 |   |   | $ | 1,036 |   |   | $ | 4 |   |

----

Index 

----

Index 

|                                           |   | 2009   |      |   | 2008   |   |
|------------------------------------------------|--------|--------|-----------|--------|--------|--------|
| Commercial Loans                               |   |   |      |   |   |   |
| Commercial and industrial                      |   | $      | 2,080,329 |   |   | $      | 2,722,611 |   |
| Commercial owner - occupied real estate        |   |   | 1,271,525 |   |   |   | 1,270,746 |   |
| Commercial real estate                         |   |   | 3,501,809 |   |   |   | 4,074,331 |   |
|                                           |   |   | 6,853,663 |   |   |   | 8,067,688 |   |
| Consumer Loans                                 |   |   |      |   |   |   |   |   |
| Indirect - sales finance                       |   |   | 230,426   |   |   |   | 635,637 |   |
| Consumer lot loans                             |   |   | 144,315   |   |   |   | 225,486 |   |
| Direct retail                                  |   |   | 83,460    |   |   |   | 95,397 |   |
| Home equity                                    |   |   | 787,645   |   |   |   | 813,201 |   |
|                                           |   |   | 1,245,846 |   |   |   | 1,769,721 |   |
|                                           |   |   |      |   |   |   |   |   |
| Mortgage Loans                                 |   |   | 286,618   |   |   |   | 354,663 |   |
| Loans held for investment                      |   |   | 8,386,127 |   |   |   | 10,192,072 |   |
| Loans held for sale                            |   |   | 15,758    |   |   |   | 30,963 |   |
| Total loans                                    |   | $      | 8,401,885 |   |   | $      | 10,223,035 |   |
|                                           |   |   |      |   |   |   |   |   |
| Included in the above:                         |   |   |      |   |   |   |   |   |
| Nonaccrual loans held for investment           |   | $      | 399,046   |   |   | $      | 349,382 |   |
| Nonaccrual loans held for sale                 |   |   | -         |   |   |   | 16,282 |   |
| Loans past due 90 days still accruing interest |   |   | 10,465    |   |   |   | 47,481 |   |

|                                      |   | 2009   |    |   | 2008   |   |    | 2007   |   |
|-------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| Impaired loans with specific allowance    |   | $      | 197,576 |   |   | $      | 193,280 |   |   | $ | 35,856 |   |
| Impaired loans with no specific allowance |   |   | 194,763 |   |   |   | 94,217  |   |   |   | 32,246 |   |
| Total impaired loans (year end)           |   | $      | 392,339 |   |   | $      | 287,497 |   |   | $ | 68,102 |   |
|                                      |   |   |    |   |   |   |    |   |   |   |   |   |
| Related allowance (year end)              |   | $      | 37,656  |   |   | $      | 44,418  |   |   | $ | 11,340 |   |
| Interest income recognized                |   |   | 1,484   |   |   |   | 112     |   |   |   | 59 |   |
| Foregone interest                         |   |   | 15,527  |   |   |   | 14,439  |   |   |   | 3,437 |   |

----

Index 

|                                       |   | 2009   |     |   | 2008   |   |     | 2007   |   |
|--------------------------------------------|--------|--------|----------|--------|--------|--------|----------|--------|--------|
| Allowance for loan losses                  |   |   |     |   |   |   |     |   |   |
| Balance at beginning of year               |   | $      | 247,086  |   |   | $      | 126,427  |   |   | $ | 111,663 |   |
| Allowance adjustment for loans sold        |   |   | (4,471   | )      |   |   | -        |   |   |   | - |   |
| Provision for loan losses                  |   |   | 664,208  |   |   |   | 344,069  |   |   |   | 67,325 |   |
| Loans charged-off                          |   |   | (556,585 | )      |   |   | (230,961 | )      |   |   | (59,408 | ) |
| Recoveries of loans previously charged-off |   |   | 15,404   |   |   |   | 7,551    |   |   |   | 6,847 |   |
| Balance at end of year                     |   | $      | 365,642  |   |   | $      | 247,086  |   |   | $ | 126,427 |   |
|                                       |   |   |     |   |   |   |     |   |   |   |   |   |
| Reserve for unfunded lending commitments   |   |   |     |   |   |   |     |   |   |   |   |   |
| Balance at beginning of year               |   | $      | 2,788    |   |   | $      | 2,268    |   |   | $ | 1,025 |   |
| Provision for unfunded lending commitments |   |   | 4,696    |   |   |   | 520      |   |   |   | 1,243 |   |
| Balance at end of year                     |   | $      | 7,484    |   |   | $      | 2,788    |   |   | $ | 2,268 |   |
|                                       |   |   |     |   |   |   |     |   |   |   |   |   |
| Allowance for credit losses                |   |   |     |   |   |   |     |   |   |   |   |   |
| Balance at beginning of year               |   | $      | 249,874  |   |   | $      | 128,695  |   |   | $ | 112,688 |   |
| Allowance adjustment for loans sold        |   |   | (4,471   | )      |   |   | -        |   |   |   | - |   |
| Provision for credit losses                |   |   | 668,904  |   |   |   | 344,589  |   |   |   | 68,568 |   |
| Loans charged-off                          |   |   | (556,585 | )      |   |   | (230,961 | )      |   |   | (59,408 | ) |
| Recoveries of loans previously charged-off |   |   | 15,404   |   |   |   | 7,551    |   |   |   | 6,847 |   |
| Balance at end of year                     |   | $      | 373,126  |   |   | $      | 249,874  |   |   | $ | 128,695 |   |

----

Index 

|                                           |   | 2009   |    |   | 2008   |   |
|------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Land and land improvements                     |   | $      | 78,121  |   |   | $      | 56,989 |   |
| Buildings                                      |   |   | 115,629 |   |   |   | 89,715 |   |
| Furniture, fixtures and equipment              |   |   | 126,547 |   |   |   | 133,743 |   |
| Capitalized software                           |   |   | 39,874  |   |   |   | 35,518 |   |
| Leasehold improvements                         |   |   | 63,212  |   |   |   | 62,017 |   |
| Construction in progress                       |   |   | 4,438   |   |   |   | 54,024 |   |
|                                           |   |   | 427,821 |   |   |   | 432,006 |   |
| Less accumulated depreciation and amortization |   |   | 166,298 |   |   |   | 149,534 |   |
|                                           |   | $      | 261,523 |   |   | $      | 282,472 |   |

----

Index 

|                                                |   | Carolina First |    |   | Mercantile |   |     | Other  |   |   | Total  |   |
|-----------------------------------------------------|--------|----------------|---------|--------|------------|--------|----------|--------|--------|--------|--------|--------|
| Balance, December 31, 2007                          |   |           |    |   |       |   |     |   |   |   |   |   |
| Goodwill                                            |   | $              | 203,800 |   |       | $      | 427,887  |   |   | $      | 19,316 |   |   | $ | 651,003 |   |
| Accumulated impairment losses                       |   |           | -       |   |       |   | -        |   |   |   | -      |   |   |   | - |   |
|                                                |   |           | 203,800 |   |       |   | 427,887  |   |   |   | 19,316 |   |   |   | 651,003 |   |
| Goodwill impairment charge                          |   |           | -       |   |       |   | (426,049 | )      |   |   | -      |   |   |   | (426,049 | ) |
| Purchase accounting adjustments                     |   |           | -       |   |       |   | (1,838   | )      |   |   | 1,045  |   |   |   | (793 | ) |
|                                                |   |           |    |   |       |   |     |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2008                          |   |           |    |   |       |   |     |   |   |   |   |   |   |   |   |   |
| Goodwill                                            |   |           | 203,800 |   |       |   | 426,049  |   |   |   | 20,361 |   |   |   | 650,210 |   |
| Accumulated impairment losses                       |   |           | -       |   |       |   | (426,049 | )      |   |   | -      |   |   |   | (426,049 | ) |
|                                                |   |           | 203,800 |   |       |   | -        |   |   |   | 20,361 |   |   |   | 224,161 |   |
| Goodwill impairment charge (1)                      |   |           | -       |   |       |   | -        |   |   |   | (2,511 | )      |   |   | (2,511 | ) |
| Purchase accounting adjustments                     |   |           | -       |   |       |   | -        |   |   |   | 321    |   |   |   | 321 |   |
| Goodwill allocated to sales of ancillary businesses |   |           | (2,172  | )      |       |   | -        |   |   |   | (5,681 | )      |   |   | (7,853 | ) |
|                                                |   |           |    |   |       |   |     |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2009                          |   |           |    |   |       |   |     |   |   |   |   |   |   |   |   |   |
| Goodwill                                            |   |           | 201,628 |   |       |   | 426,049  |   |   |   | 12,490 |   |   |   | 640,167 |   |
| Accumulated impairment losses                       |   |           | -       |   |       |   | (426,049 | )      |   |   | -      |   |   |   | (426,049 | ) |
|                                                |   | $              | 201,628 |   |       | $      | -        |   |   | $      | 12,490 |   |   | $ | 214,118 |   |

|   | (1) | Goodwill impairment charge in 2009 was related to ancillary businesses that were subsequently sold. |
|--------|-----|-----------------------------------------------------------------------------------------------------|

----

Index 

----

Index 

|                              |   | 2009   |    |   | 2008   |   |
|-----------------------------------|--------|--------|---------|--------|--------|--------|
| Core deposit intangible (1)       |   | $      | 45,009  |   |   | $      | 59,550 |   |
| Less accumulated amortization (1) |   |   | (31,461 | )      |   |   | (41,979 | ) |
|                              |   |   | 13,548  |   |   |   | 17,571 |   |
| Non-compete agreement intangible  |   |   | 5,672   |   |   |   | 5,672 |   |
| Less accumulated amortization     |   |   | (5,669  | )      |   |   | (5,460 | ) |
|                              |   |   | 3       |   |   |   | 212 |   |
| Customer list intangible          |   |   | 6,725   |   |   |   | 7,960 |   |
| Less accumulated amortization     |   |   | (4,569  | )      |   |   | (3,884 | ) |
|                              |   |   | 2,156   |   |   |   | 4,076 |   |
|                              |   | $      | 15,707  |   |   | $      | 21,859 |   |

|   | (1) | During 2009, TSFG removed $14.5 million of fully amortized core deposit intangible from both the gross carrying amount and accumulated amortization. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                            |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|-------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Core deposit intangible                         |   | $      | 4,023  |   |   | $      | 4,811  |   |   | $ | 5,663 |   |
| Non-compete agreement intangible                |   |   | 209    |   |   |   | 471    |   |   |   | 1,254 |   |
| Customer list intangible                        |   |   | 685    |   |   |   | 856    |   |   |   | 980 |   |
| Total amortization expense of intangible assets |   | $      | 4,917  |   |   | $      | 6,138  |   |   | $ | 7,897 |   |

|                                     |   |       |   |   | Non-       |   |   |       |   |   |   |   |
|------------------------------------------|--------|------------|--------|--------|------------|--------|--------|------------|--------|--------|--------|--------|
|                                     |   | Core       |   |   | Compete    |   |   | Customer   |   |   |   |   |
|                                     |   | Deposit    |   |   | Agreement  |   |   | List       |   |   |   |   |
|                                     |   | Intangible |   |   | Intangible |   |   | Intangible |   |   | Total  |   |
| 2010                                     |   | $          | 3,543  |   |       | $      | 3      |       |   | $      | 442    |   |   | $ | 3,988 |   |
| 2011                                     |   |       | 3,113  |   |       |   | -      |       |   |   | 384    |   |   |   | 3,497 |   |
| 2012                                     |   |       | 2,317  |   |       |   | -      |       |   |   | 313    |   |   |   | 2,630 |   |
| 2013                                     |   |       | 977    |   |       |   | -      |       |   |   | 209    |   |   |   | 1,186 |   |
| 2014                                     |   |       | 519    |   |       |   | -      |       |   |   | 172    |   |   |   | 691 |   |
| Aggregate total for all years thereafter |   |       | 3,079  |   |       |   | -      |       |   |   | 636    |   |   |   | 3,715 |   |
|                                     |   | $          | 13,548 |   |       | $      | 3      |       |   | $      | 2,156  |   |   | $ | 15,707 |   |

|                         |   | 2009   |    |   | 2008   |   |
|------------------------------|--------|--------|---------|--------|--------|--------|
| Balance at beginning of year |   | $      | 44,668  |   |   | $      | 6,467 |   |
| Loans transferred in         |   |   | 165,061 |   |   |   | 51,158 |   |
| Sales                        |   |   | (65,696 | )      |   |   | (11,907 | ) |
| Write-downs                  |   |   | (21,947 | )      |   |   | (1,050 | ) |
| Balance at end of year       |   | $      | 122,086 |   |   | $      | 44,668 |   |

----

Index 

|                                                               |   | 2009       |   |   | 2008      |   |
|--------------------------------------------------------------------|--------|------------|--------|--------|-----------|--------|
|                                                               |   | Fair Value |   |   | Notional  |   |   | Fair Value |   |   | Notional |   |
|                                                               |   | Asset      |   |   | Liability |   |   | Amount |   |   | Asset |   |   | Liability |   |   | Amount |   |
| Derivatives designated as hedging                                  |   |       |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| instruments under GAAP:                                            |   |       |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash flow hedges                                                   |   |       |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate swaps associated with lending activities             |   | $          | 14,339 |   |      | $      | - |   |   | $ | 780,000 |   |   | $ | 48,766 |   |   | $ | - |   |   | $ | 1,670,000 |   |
| Interest rate floor associated with lending activities             |   |       | -      |   |      |   | - |   |   |   | - |   |   |   | 6,873 |   |   |   | - |   |   |   | 200,000 |   |
|                                                               |   |       |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fair value hedges                                                  |   |       |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate swaps associated with brokered CDs                   |   |       | 1,895  |   |      |   | 48 |   |   |   | 54,185 |   |   |   | 2,491 |   |   |   | 1,376 |   |   |   | 220,352 |   |
| Total derivatives designated as hedging instruments under GAAP     |   | $          | 16,234 |   |      | $      | 48 |   |   | $ | 834,185 |   |   | $ | 58,130 |   |   | $ | 1,376 |   |   | $ | 2,090,352 |   |
|                                                               |   |       |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Derivatives not designated as hedging instruments under GAAP:      |   |       |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate swaps                                                |   | $          | 279    |   |      | $      | 480 |   |   | $ | 119,755 |   |   | $ | - |   |   | $ | 1,232 |   |   | $ | 10,000 |   |
| Forward foreign currency contracts                                 |   |       | 12     |   |      |   | 12 |   |   |   | 13,331 |   |   |   | 1,660 |   |   |   | 1,660 |   |   |   | 11,063 |   |
| Customer swap contracts                                            |   |       | 25,658 |   |      |   | 22,067 |   |   |   | 850,680 |   |   |   | 44,067 |   |   |   | 44,882 |   |   |   | 984,897 |   |
| Options, mortgage contracts, and other                             |   |       | 416    |   |      |   | 433 |   |   |   | 111,328 |   |   |   | 3,481 |   |   |   | 3,420 |   |   |   | 152,243 |   |
| Total derivatives not designated as hedging instruments under GAAP |   | $          | 26,365 |   |      | $      | 22,992 |   |   | $ | 1,095,094 |   |   | $ | 49,208 |   |   | $ | 51,194 |   |   | $ | 1,158,203 |   |
|                                                               |   |       |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total derivatives                                                  |   | $          | 42,599 |   |      | $      | 23,040 |   |   | $ | 1,929,279 |   |   | $ | 107,338 |   |   | $ | 52,570 |   |   | $ | 3,248,555 |   |

----

Index 

----

Index 

|                                                                                                                                         |   | 2009   |   |   | 2008   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Derivatives in Cash Flow Hedging Relationships                                                                                               |   |   |   |   |   |   |
| Interest rate swaps associated with lending activities:                                                                                      |   |   |   |   |   |   |
| Amount of gain recognized in OCI                                                                                                             |   | $      | 7,813  |   |   | $      | 48,794 |   |
| Amount of gain reclassified from accumulated OCI to interest income (effective portion)                                                      |   |   | 34,961 |   |   |   | 20,143 |   |
| Amount of gain reclassified from accumulated OCI to gain/loss  on certain derivative activities (effective portion)                |   |   | 2,618  |   |   |   | - |   |
| Amount of loss recognized in gain/loss on certain derivative activities (ineffective portion and amount excluded from effectiveness testing) |   |   | (156   | )      |   |   | - |   |
| Interest rate floor associated with lending activities:                                                                                      |   |   |   |   |   |   |   |   |
| Amount of gain recognized in OCI                                                                                                             |   |   | 716    |   |   |   | 8,618 |   |
| Amount of gain reclassified from accumulated OCI to interest income (effective portion)                                                      |   |   | 6,532  |   |   |   | 5,404 |   |
| Amount of gain recognized in gain/loss on certain derivative activities (ineffective portion and amount excluded from effectiveness testing) |   |   | 293    |   |   |   | - |   |

|                                                                                   |   | 2009   |   |   | 2008   |   |
|----------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Derivatives in Fair Value Hedging Relationships                                        |   |   |   |   |   |   |
| Interest rate swaps associated with brokered CDs:                                      |   |   |   |   |   |   |
| Amount of gain recognized in gain/loss on certain derivative activities on derivative  |   | $      | 2,177  |   |   | $      | 8,801 |   |
| Amount of loss recognized in gain/loss on certain derivative activities on hedged item |   |   | (1,983 | )      |   |   | (7,945 | ) |

|                |   |                                         |   | Amount of Gain (Loss)   |   |
|---------------------|--------|----------------------------------------------|--------|-------------------------|--------|
| Derivatives Not     |   | Location of Gain (Loss)                      |   | Recognized in Income on |   |
| Designated as       |   | Recognized in Income on                      |   | Derivative              |   |
| Hedging Instruments |   | Derivative                                   |   | 2009                    |   |   | 2008 |   |
| Interest rate swaps |   | Gain (loss) on certain derivative activities |   | $                       | 954    |   |   | $ | (1,069 | ) |
| Interest rate swaps |   | Other noninterest income                     |   |                    | (498   | ) |   |   | - |   |
| Customer swaps      |   | Other noninterest income                     |   |                    | (509   | ) |   |   | 4,372 |   |
| Mortgage contracts  |   | Mortgage banking income                      |   |                    | (24    | ) |   |   | 204 |   |
| Other contracts     |   | Gain (loss) on certain derivative activities |   |                    | (54    | ) |   |   | 6 |   |
|                |   |                                         |   | $                       | (131   | ) |   | $ | 3,513 |   |

----

Index 

|                                |   | 2009   |      |   | 2008   |   |
|-------------------------------------|--------|--------|-----------|--------|--------|--------|
| Noninterest-bearing demand deposits |   | $      | 1,124,404 |   |   | $      | 1,041,140 |   |
| Interest-bearing checking           |   |   | 1,060,470 |   |   |   | 1,078,921 |   |
| Money market accounts               |   |   | 2,072,664 |   |   |   | 1,834,115 |   |
| Savings accounts                    |   |   | 322,924   |   |   |   | 190,519 |   |
| Time deposits under $100,000        |   |   | 1,632,582 |   |   |   | 1,863,520 |   |
| Time deposits of $100,000 or more   |   |   | 1,137,067 |   |   |   | 1,488,735 |   |
| Customer deposits                   |   |   | 7,350,111 |   |   |   | 7,496,950 |   |
| Brokered deposits                   |   |   | 1,946,101 |   |   |   | 1,908,767 |   |
| Total deposits                      |   | $      | 9,296,212 |   |   | $      | 9,405,717 |   |

| 2010       |   | $      | 2,771,903 |   |
|------------|--------|--------|-----------|--------|
| 2011       |   |   | 1,458,405 |   |
| 2012       |   |   | 361,899   |   |
| 2013       |   |   | 57,515    |   |
| 2014       |   |   | 28,205    |   |
| Thereafter |   |   | 37,823    |   |
|       |   | $      | 4,715,750 |   |

|                                                                                    |   | 2009   |   |   | 2008   |   |     | 2007   |   |
|-----------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|----------|--------|--------|
| Income/loss before income taxes                                                         |   | $      | 37,794 |   |   | $      | (87,574  | )      |   | $ | 33,400 |   |
| Changes recorded in shareholders' equity                                                |   |   |   |   |   |   |     |   |   |   |   |   |
| Cumulative effect of initial application of guidance related to uncertain tax positions |   |   | -      |   |   |   | -        |   |   |   | (488 | ) |
| Cumulative effect of initial application of fair value option                           |   |   | -      |   |   |   | (32      | )      |   |   | - |   |
| Change in unrealized gains/losses on fair value of cash flow hedges                     |   |   | 12,502 |   |   |   | (11,153  | )      |   |   | (8,444 | ) |
| Change in unrealized gains/losses on available for sale securities                      |   |   | (5,896 | )      |   |   | (22,135  | )      |   |   | (9,848 | ) |
|                                                                                    |   | $      | 44,400 |   |   | $      | (120,894 | )      |   | $ | 14,620 |   |

----

Index 

|                               |   | 2009   |    |   | 2008   |   |    | 2007   |   |
|------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| Current                            |   |   |    |   |   |   |    |   |   |
| U.S. Federal                       |   | $      | (20,093 | )      |   | $      | (41,284 | )      |   | $ | 22,937 |   |
| State and local                    |   |   | 188     |   |   |   | 916     |   |   |   | 3,037 |   |
|                               |   |   | (19,905 | )      |   |   | (40,368 | )      |   |   | 25,974 |   |
| Deferred                           |   |   |    |   |   |   |    |   |   |   |   |   |
| U.S. Federal                       |   |   | 48,249  |   |   |   | (39,232 | )      |   |   | 6,879 |   |
| State and local                    |   |   | 9,450   |   |   |   | (7,974  | )      |   |   | 547 |   |
|                               |   |   | 57,699  |   |   |   | (47,206 | )      |   |   | 7,426 |   |
| Total income tax expense (benefit) |   | $      | 37,794  |   |   | $      | (87,574 | )      |   | $ | 33,400 |   |

|                                                                           |   | 2009   |     |   | 2008   |   |     | 2007   |   |
|--------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|----------|--------|--------|
| Income tax (benefit) expense at federal statutory rate                         |   | $      | (223,461 | )      |   | $      | (222,142 | )      |   | $ | 37,337 |   |
| State income tax, net of federal benefit                                       |   |   | (13,543  | )      |   |   | (4,588   | )      |   |   | 2,329 |   |
| Increase (decrease) resulting from:                                            |   |   |     |   |   |   |     |   |   |   |   |   |
| Subsidiary stock, recognition of basis difference                              |   |   | (481     | )      |   |   | 2        |   |   |   | 50 |   |
| Bank-owned life insurance                                                      |   |   | (3,183   | )      |   |   | (4,507   | )      |   |   | (4,670 | ) |
| Book compensation cost for ISO stock options                                   |   |   | 613      |   |   |   | 946      |   |   |   | 1,179 |   |
| Nontaxable municipal interest                                                  |   |   | (2,856   | )      |   |   | (3,275   | )      |   |   | (3,817 | ) |
| Income tax credits                                                             |   |   | (4,753   | )      |   |   | (3,364   | )      |   |   | (841 | ) |
| Dividends received deduction                                                   |   |   | (36      | )      |   |   | (24      | )      |   |   | (24 | ) |
| Goodwill impairment                                                            |   |   | 1,495    |   |   |   | 149,117  |   |   |   | - |   |
| Purchase of REIT preferred shares at a discount                                |   |   | (2,912   | )      |   |   | -        |   |   |   | - |   |
| Change in federal and state valuation allowance for deferred income tax assets |   |   | 286,498  |   |   |   | 83       |   |   |   | (573 | ) |
| Other, net                                                                     |   |   | 413      |   |   |   | 178      |   |   |   | 2,430 |   |
|                                                                           |   | $      | 37,794   |   |   | $      | (87,574  | )      |   | $ | 33,400 |   |

----

Index 

|                                                                                                            |   | 2009   |    |   | 2008   |   |
|-----------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Deferred Income Tax Assets                                                                                      |   |   |    |   |   |   |
| Loan loss allowance deferred for income tax purposes                                                            |   | $      | 134,309 |   |   | $      | 90,906 |   |
| Compensation expense deferred for income tax reporting purposes                                                 |   |   | 18,322  |   |   |   | 21,293 |   |
| Federal capital loss carryforward                                                                               |   |   | 2,738   |   |   |   | 1,484 |   |
| State net operating loss carryforwards                                                                          |   |   | 17,656  |   |   |   | 6,802 |   |
| Excess basis of securities for income tax purposes over financial reporting purposes                            |   |   | 615     |   |   |   | 335 |   |
| Federal net operating loss carryforward                                                                         |   |   | 171,865 |   |   |   | 958 |   |
| Miscellaneous accruals and reserves                                                                             |   |   | 5,855   |   |   |   | 5,855 |   |
| Other                                                                                                           |   |   | 13,439  |   |   |   | 4,550 |   |
|                                                                                                            |   |   | 364,799 |   |   |   | 132,183 |   |
| Less valuation allowance                                                                                        |   |   | 290,263 |   |   |   | 3,765 |   |
|                                                                                                            |   |   | 74,536  |   |   |   | 128,418 |   |
| Deferred Income Tax Liabilities                                                                                 |   |   |    |   |   |   |   |   |
| Excess basis of intangible assets for financial reporting purposes over income tax basis                        |   |   | 13,851  |   |   |   | 15,822 |   |
| Unrealized gains on securities available for sale                                                               |   |   | 9,955   |   |   |   | 4,059 |   |
| Income tax depreciation in excess of book depreciation                                                          |   |   | 19,634  |   |   |   | 18,523 |   |
| Excess basis of prepaid and deferred expenses for financial reporting purposes over income tax basis            |   |   | 20,439  |   |   |   | 18,227 |   |
| Unrealized gains on cash flow hedges deferred for income tax reporting purposes                                 |   |   | 6,704   |   |   |   | 19,206 |   |
| Excess carrying value of assets acquired for financial reporting purposes over income tax basis                 |   |   | 499     |   |   |   | 369 |   |
| Unrealized gains and other adjustments on fair value hedges and derivatives not qualifying for hedge accounting |   |   | 3,450   |   |   |   | 1,115 |   |
| Income tax bad debt reserve recapture adjustment                                                                |   |   | 4       |   |   |   | 4 |   |
|                                                                                                            |   |   | 74,536  |   |   |   | 77,325 |   |
| Net deferred income tax assets                                                                                  |   | $      | -       |   |   | $      | 51,093 |   |

|                                                                                      |   | 2009   |    |   | 2008   |   |
|-------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Balance at beginning of year                                                              |   | $      | 51,093  |   |   | $      | 37,175 |   |
| Income tax effect from change in unrealized gains/losses on available for sale securities |   |   | (5,896  | )      |   |   | (22,135 | ) |
| Income tax effect from change in fair values on cash flow hedges                          |   |   | 12,502  |   |   |   | (11,153 | ) |
| Deferred income tax (expense) benefit on continuing operations                            |   |   | (57,699 | )      |   |   | 47,206 |   |
| Balance at end of year                                                                    |   | $      | -       |   |   | $      | 51,093 |   |

----

Index 

|                                                            |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|-----------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Balance at beginning of year                                    |   | $      | 4,382  |   |   | $      | 10,818 |   |   | $ | 13,218 |   |
| Increases related to current year tax positions                 |   |   | -      |   |   |   | 154    |   |   |   | 2,836 |   |
| Decreases related to prior year tax positions                   |   |   | (14    | )      |   |   | (70    | )      |   |   | (32 | ) |
| Decreases related to expiration of statute of limitations       |   |   | (1,630 | )      |   |   | (2,985 | )      |   |   | (21 | ) |
| Decreases related to audits/settlements with taxing authorities |   |   | -      |   |   |   | (3,535 | )      |   |   | (5,183 | ) |
| Balance at end of year                                          |   | $      | 2,738  |   |   | $      | 4,382  |   |   | $ | 10,818 |   |

----

Index 

|                                              |   | 2009   |    |   | 2008   |   |
|---------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Customer sweep accounts                           |   | $      | 316,690 |   |   | $      | 493,012 |   |
| Treasury, tax and loan note                       |   |   | 5,987   |   |   |   | 3,516 |   |
| Federal funds purchased and repurchase agreements |   |   | 25      |   |   |   | 67,309 |   |
| Federal reserve borrowings                        |   |   | -       |   |   |   | 1,050,000 |   |
| Commercial paper                                  |   |   | -       |   |   |   | 12,537 |   |
|                                              |   | $      | 322,702 |   |   | $      | 1,626,374 |   |

|                                                 |   | 2009   |      |   | 2008   |   |
|------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
| Maximum outstanding at any month-end during the year |   | $      | 1,750,400 |   |   | $      | 2,324,472 |   |
| Balance outstanding at end of year                   |   |   | 322,702   |   |   |   | 1,626,374 |   |
| Average outstanding during the year                  |   |   | 810,919   |   |   |   | 1,626,453 |   |
| Average interest rate during the year                |   |   | 0.28      | %      |   |   | 2.14 | % |
| Average interest rate at end of  year      |   |   | 0.33      |   |   |   | 0.38 |   |

|                                              |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|---------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Customer sweep accounts                           |   | $      | 1,011  |   |   | $      | 11,519 |   |   | $ | 22,724 |   |
| Treasury, tax and loan note                       |   |   | 3      |   |   |   | 4,382  |   |   |   | 11,208 |   |
| Federal funds purchased and repurchase agreements |   |   | 120    |   |   |   | 8,311  |   |   |   | 39,650 |   |
| Federal reserve borrowings                        |   |   | 1,012  |   |   |   | 8,734  |   |   |   | - |   |
| Commercial paper                                  |   |   | 27     |   |   |   | 954    |   |   |   | 1,790 |   |
| FHLB advances                                     |   |   | 86     |   |   |   | 870    |   |   |   | 4,476 |   |
| Line of credit to unaffiliated bank and other     |   |   | -      |   |   |   | 5      |   |   |   | 5 |   |
|                                              |   | $      | 2,259  |   |   | $      | 34,775 |   |   | $ | 79,853 |   |

----

Index 

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | 2009   |      |   | 2008   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
| FHLB advances, net of discount of $731,000 at December 31, 2009; fixed or variable rates ranging from 0.41% to 4.27% due from 2011 to 2018, notwithstanding certain earlier call dates; collateralized by a blanket lien on  qualifying loans, including first mortgages on one-to-four family residences valued at $323.9 million, home equity lines of credit and second mortgage loans valued at $607.2 million, and commercial loans valued at $987.6 million; initial maturity of one year or greater; interest payable quarterly |   | $      | 752,646   |   |   | $      | 233,497 |   |
| Repurchase agreements; fixed or variable rates ranging from 0.05% to 4.30% due in 2012; collateralized by securities of the U.S. government or its agencies, which are held by third-party safekeepers, valued at $132.7 million; interest payable quarterly                                                                                                                                                                                                                                                                                     |   |   | 125,000   |   |   |   | 200,000 |   |
| Subordinated Notes; due September 1, 2037; unsecured; interest payable quarterly and at maturity at a rate per annum equal to three-month LIBOR plus 1.42%; balance can be prepaid in whole or in part after September 1, 2012 at accrued and unpaid interest plus outstanding principal (1)                                                                                                                                                                                                                                                     |   |   | 77,320    |   |   |   | 77,320 |   |
| Subordinated Notes; due June 15, 2036; unsecured; interest payable quarterly and at maturity at a rate per annum equal to three-month LIBOR plus 1.59%; balance can be prepaid in whole or in part after June 15, 2011 at accrued and unpaid interest plus outstanding principal (1)                                                                                                                                                                                                                                                        |   |   | 41,238    |   |   |   | 41,238 |   |
| Subordinated Notes; due July 7, 2036; unsecured; interest payable quarterly and at maturity at a rate per annum equal to three-month LIBOR plus 1.56%; balance can be prepaid in whole or in part after July 7, 2011 at accrued and unpaid interest plus outstanding principal (1)                                                                                                                                                                                                                                                          |   |   | 36,083    |   |   |   | 36,083 |   |
| Subordinated Notes; due September 15, 2037; unsecured; interest payable quarterly and at maturity at a rate per annum equal to three-month LIBOR plus 1.32%; balance can be prepaid in whole or in part after December 15, 2012 at accrued and unpaid interest plus outstanding principal (1)                                                                                                                                                                                                                                                    |   |   | 30,928    |   |   |   | 30,928 |   |
| Mandatorily redeemable preferred stock of subsidiary; redeemable January 31, 2031; unsecured; dividends payable quarterly and at maturity at a rate per annum equal to 11.125% (2)                                                                                                                                                                                                                                                                                                                                                          |   |   | 26,300    |   |   |   | 26,300 |   |
| Subordinated Notes; due October 30, 2037; unsecured; interest payable quarterly and at maturity at a rate per annum equal to three-month LIBOR plus 1.33%; balance can be prepaid in whole or in part after October 30, 2012 at accrued and unpaid interest plus outstanding principal (1)                                                                                                                                                                                                                                                       |   |   | 18,042    |   |   |   | 18,042 |   |
| Mandatorily redeemable preferred stock of subsidiary; redeemable May 31, 2012; unsecured; dividends payable quarterly and at maturity at a rate per annum equal to three-month LIBOR plus 3.50% (2)                                                                                                                                                                                                                                                                                                                                         |   |   | 5,500     |   |   |   | 30,500 |   |
| Subordinated Notes; due June 26, 2033; unsecured; interest payable quarterly and at maturity at a rate per annum equal to three-month LIBOR plus 3.10% (not to exceed 11.75% through June 26, 2008); balance can be prepaid in whole or in part after June 26, 2008 at accrued and unpaid interest plus outstanding principal (1)                                                                                                                                                                                                           |   |   | 3,093     |   |   |   | 3,093 |   |
| Subordinated Notes; due December 17, 2013; unsecured; interest payable quarterly and at maturity at a rate per annum equal to three-month LIBOR plus 2.83%; balance can be prepaid after December 17, 2008 at par plus accrued and unpaid interest                                                                                                                                                                                                                                                                                          |   |   | --        |   |   |   | 10,000 |   |
| Other                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | 719       |   |   |   | 768 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | $      | 1,116,869 |   |   | $      | 707,769 |   |

|   | (1) | The balance can also be prepaid in whole (but not in part) at any time within a specified number of days (as defined in the indenture) following the occurrence of a tax event, an investment company event, or a capital treatment event at a special redemption price (as defined in the indenture). |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | The balance can be redeemed in whole or in part following the occurrence of a tax or capital event (as defined in the terms of the preferred stock). |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index 

|       |   | FHLB     |    |   | Repurchase |   |    |   |   |   |    |   |
|------------|--------|----------|---------|--------|------------|--------|---------|--------|--------|--------|---------|--------|
|       |   | Advances |    |   | Agreements |   |    | Other  |   |   | Total   |   |
| 2010       |   | $        | 123     |   |       | $      | -       |   |   | $      | 56      |   |   | $ | 179 |   |
| 2011       |   |     | 450,125 |   |       |   | -       |   |   |   | 64      |   |   |   | 450,189 |   |
| 2012       |   |     | 100,128 |   |       |   | 125,000 |   |   |   | 6,099   |   |   |   | 231,227 |   |
| 2013       |   |     | 200,132 |   |       |   | -       |   |   |   | -       |   |   |   | 200,132 |   |
| 2014       |   |     | 135     |   |       |   | -       |   |   |   | -       |   |   |   | 135 |   |
| Thereafter |   |     | 2,734   |   |       |   | -       |   |   |   | 233,004 |   |   |   | 235,738 |   |
|       |   | $        | 753,377 |   |       | $      | 125,000 |   |   | $      | 239,223 |   |   | $ | 1,117,600 |   |

----

Index 

| 2010       |   | $      | 17,490  |   |
|------------|--------|--------|---------|--------|
| 2011       |   |   | 17,361  |   |
| 2012       |   |   | 16,780  |   |
| 2013       |   |   | 15,751  |   |
| 2014       |   |   | 14,128  |   |
| Thereafter |   |   | 94,534  |   |
|       |   | $      | 176,044 |   |

----

Index 

| Loan commitments:                                    |   | 2009   |      |   | 2008   |   |
|------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
| Commercial, industrial, and other                    |   | $      | 1,085,129 |   |   | $      | 1,296,635 |   |
| Commercial owner-occupied and commercial real estate |   |   | 119,928   |   |   |   | 324,360 |   |
| Home equity loans                                    |   |   | 423,151   |   |   |   | 477,777 |   |
| Total loan commitments                               |   |   | 1,628,208 |   |   |   | 2,098,772 |   |
| Standby letters of credit                            |   |   | 199,237   |   |   |   | 213,960 |   |
| Documentary letters of credit                        |   |   | 2,066     |   |   |   | 941 |   |
| Unused business credit card lines                    |   |   | 31,746    |   |   |   | 33,836 |   |
| Total                                                |   | $      | 1,861,257 |   |   | $      | 2,347,509 |   |

----

Index 

|                                                                                                     |   | 2009       |    |
|----------------------------------------------------------------------------------------------------------|--------|------------|---------|
|                                                                                                     |   | Shares     |    |   | Carrying |   |
|                                                                                                     |   |       |    |   |   |   |   | Converted |   |   |   |   |   | Value |   |
|                                                                                                     |   | Balance,   |    |   |   |   |   | to Common |   |   | Balance, |   |   | December 31, |   |
|                                                                                                     |   | January 1, |    |   | Exchanged |   |   | Shares |   |   | December 31, |   |   | ($000s) |   |
| Series 2008ND-V                                                                                          |   |       | 51,341  |   |   |   | (21,852 | ) |   |   | (29,489 | ) |   |   | - |   |   | $ | - |   |
| Series 2008ND-NV                                                                                         |   |       | 177,639 |   |   |   | (72,648 | ) |   |   | (104,991 | ) |   |   | - |   |   |   | - |   |
| Series 2008D-V                                                                                           |   |       | 2,248   |   |   |   | - |   |   |   | (1,200 | ) |   |   | 1,048 |   |   |   | 1,048 |   |
| Series 2008D-NV                                                                                          |   |       | 7,472   |   |   |   | - |   |   |   | (3,870 | ) |   |   | 3,602 |   |   |   | 3,602 |   |
| Series 2009-A                                                                                            |   |       | -       |   |   |   | 94,500 |   |   |   | (94,500 | ) |   |   | - |   |   |   | - |   |
| Mandatorily convertible preferred stock                                                                  |   |       | 238,700 |   |   |   | - |   |   |   | (234,050 | ) |   |   | 4,650 |   |   |   | 4,650 |   |
| Series 2008-T                                                                                            |   |       | 347,000 |   |   |   | - |   |   |   | - |   |   |   | 347,000 |   |   |   | 347,000 |   |
| Less discount originally attributable to the Warrant issued to the Treasury Department, net of accretion |   |       | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (15,867 | ) |
| Series 2008-T, net                                                                                       |   |       | 347,000 |   |   |   | - |   |   |   | - |   |   |   | 347,000 |   |   |   | 331,133 |   |
| Total preferred stock                                                                                    |   |       | 585,700 |   |   |   | - |   |   |   | (234,050 | ) |   |   | 351,650 |   |   | $ | 335,783 |   |

|                                                                                                     |   | 2008       |   |
|----------------------------------------------------------------------------------------------------------|--------|------------|--------|
|                                                                                                     |   | Shares     |   |   | Carrying |   |
|                                                                                                     |   |       |   |   |   |   |   | Converted |   |   |   |   |   | Value |   |
|                                                                                                     |   | Balance,   |   |   |   |   |   | to Common |   |   | Balance, |   |   | December 31, |   |
|                                                                                                     |   | January 1, |   |   | Issued |   |   | Shares |   |   | December 31, |   |   | ($000s) |   |
| Series 2008ND-V                                                                                          |   |       | -      |   |   |   | 55,562 |   |   |   | (4,221 | ) |   |   | 51,341 |   |   | $ | 51,341 |   |
| Series 2008ND-NV                                                                                         |   |       | -      |   |   |   | 184,718 |   |   |   | (7,079 | ) |   |   | 177,639 |   |   |   | 177,639 |   |
| Series 2008D-V                                                                                           |   |       | -      |   |   |   | 2,248 |   |   |   | - |   |   |   | 2,248 |   |   |   | 2,248 |   |
| Series 2008D-NV                                                                                          |   |       | -      |   |   |   | 7,472 |   |   |   | - |   |   |   | 7,472 |   |   |   | 7,472 |   |
| Mandatorily convertible preferred stock                                                                  |   |       | -      |   |   |   | 250,000 |   |   |   | (11,300 | ) |   |   | 238,700 |   |   |   | 238,700 |   |
| Series 2008-T                                                                                            |   |       | -      |   |   |   | 347,000 |   |   |   | - |   |   |   | 347,000 |   |   |   | 347,000 |   |
| Less discount originally attributable to the Warrant issued to the Treasury Department, net of accretion |   |       | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (19,321 | ) |
| Series 2008-T, net                                                                                       |   |       | -      |   |   |   | 347,000 |   |   |   | - |   |   |   | 347,000 |   |   |   | 327,679 |   |
| Total preferred stock                                                                                    |   |       | -      |   |   |   | 597,000 |   |   |   | (11,300 | ) |   |   | 585,700 |   |   | $ | 566,379 |   |

----

Index 

----

Index 

----

Index 

|                           |   |   |      |   |     |   |      | Minimum Requirements |   |
|--------------------------------|--------|--------|-----------|--------|----------|--------|-----------|----------------------|--------|
|                           |   |   |      |   |     |   |      |                 |   |   |   |   |   | To Be Well Capitalized |   |
|                           |   |   |      |   |     |   |      |                 |   |   |   |   |   | Under Prompt |   |
|                           |   |   |      |   |     |   |      | For Capital Adequacy |   |   | Corrective Action |   |
|                           |   | Actual |      |   | Purposes |   |      | Provisions           |   |
|                           |   | 2009   |      |   | 2008     |   |      | 2009                 |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |
| TSFG                           |   |   |      |   |     |   |      |                 |   |   |   |   |   |   |   |   |   |   |
| Tier 1 capital                 |   | $      | 948,762   |   |     | $      | 1,513,452 |                 |   | $ | 382,008 |   |   | $ | 470,581 |   |   |   | n/a |   |   |   | n/a |   |
| Total risk-based capital       |   |   | 1,073,472 |   |     |   | 1,688,077 |                 |   |   | 764,015 |   |   |   | 941,161 |   |   |   | n/a |   |   |   | n/a |   |
| Tier 1 capital ratio           |   |   | 9.93      | %      |     |   | 12.86     | %                    |   |   | 4.00 | % |   |   | 4.00 | % |   |   | n/a |   |   |   | n/a |   |
| Total risk-based capital ratio |   |   | 11.24     |   |     |   | 14.35     |                 |   |   | 8.00 |   |   |   | 8.00 |   |   |   | n/a |   |   |   | n/a |   |
| Leverage ratio                 |   |   | 7.91      |   |     |   | 11.22     |                 |   |   | 4.00 |   |   |   | 4.00 |   |   |   | n/a |   |   |   | n/a |   |
|                           |   |   |      |   |     |   |      |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Carolina First Bank            |   |   |      |   |     |   |      |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 capital                 |   | $      | 854,808   |   |     | $      | 1,277,340 |                 |   | $ | 381,423 |   |   | $ | 469,428 |   |   | $ | 572,134 |   |   | $ | 704,142 |   |
| Total risk-based capital       |   |   | 1,005,638 |   |     |   | 1,477,910 |                 |   |   | 762,846 |   |   |   | 938,856 |   |   |   | 953,557 |   |   |   | 1,173,570 |   |
| Tier 1 capital ratio           |   |   | 8.96      | %      |     |   | 10.88     | %                    |   |   | 4.00 | % |   |   | 4.00 | % |   |   | 6.00 | % |   |   | 6.00 | % |
| Total risk-based capital ratio |   |   | 10.55     |   |     |   | 12.59     |                 |   |   | 8.00 |   |   |   | 8.00 |   |   |   | 10.00 |   |   |   | 10.00 |   |
| Leverage ratio                 |   |   | 7.13      |   |     |   | 9.49      |                 |   |   | 4.00 |   |   |   | 4.00 |   |   |   | 5.00 |   |   |   | 5.00 |   |

----

Index 

|                                               |   | 2009   |        |   | 2008   |   |       | 2007   |   |
|----------------------------------------------------|--------|--------|-------------|--------|--------|--------|------------|--------|--------|
| Net (loss) income available to common shareholders |   | $      | (736,943    | )      |   | $      | (568,776   | )      |   | $ | 72,611 |   |
|                                               |   |   |        |   |   |   |       |   |   |   |   |   |
| Basic                                              |   |   |        |   |   |   |       |   |   |   |   |   |
| Average common shares outstanding (denominator)    |   |   | 141,207,510 |   |   |   | 73,136,936 |   |   |   | 73,618,338 |   |
| (Loss) earnings per share                          |   | $      | (5.22       | )      |   | $      | (7.78      | )      |   | $ | 0.99 |   |
|                                               |   |   |        |   |   |   |       |   |   |   |   |   |
| Diluted                                            |   |   |        |   |   |   |       |   |   |   |   |   |
| Average common shares outstanding                  |   |   | 141,207,510 |   |   |   | 73,136,936 |   |   |   | 73,618,338 |   |
| Dilutive potential common shares                   |   |   | -           |   |   |   | -          |   |   |   | 467,102 |   |
| Average diluted shares outstanding (denominator)   |   |   | 141,207,510 |   |   |   | 73,136,936 |   |   |   | 74,085,440 |   |
| (Loss) earnings per share                          |   | $      | (5.22       | )      |   | $      | (7.78      | )      |   | $ | 0.98 |   |

|                                                        |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|-------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Compensation cost charged against income                    |   | $      | 4,890  |   |   | $      | 9,936  |   |   | $ | 7,469 |   |
| Total income tax benefit recognized in income statement (1) |   |   | -      |   |   |   | 2,534  |   |   |   | 1,432 |   |

|   | (1) | At December 31, 2009, TSFG had a full valuation allowance against its deferred tax asset. As a result, no income tax benefit was recognized during 2009 for compensation cost charged against income. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index 

|                           |   |   |     |   | Weighted   |   |   |       |   |   | Weighted   |   |
|--------------------------------|--------|--------|----------|--------|------------|--------|--------|------------|--------|--------|------------|--------|
|                           |   |   |     |   | Average    |   |   |       |   |   | Average    |   |
|                           |   |   |     |   | Grant-Date |   |   | Restricted |   |   | Grant-Date |   |
|                           |   | RSUs   |     |   | Fair Value |   |   | Shares     |   |   | Fair Value |   |
| Nonvested at January 1, 2009   |   |   | 563,310  | (1)    |       | $      | 18.35  |       |   |   | 92,570     |   |   | $ | 18.15 |   |
| Granted                        |   |   | 5,103    |   |       |   | 1.70   |       |   |   | 20,000     |   |   |   | 1.78 |   |
| Vested                         |   |   | (73,492  | )      |       |   | 18.93  |       |   |   | (51,022    | )      |   |   | 19.58 |   |
| Cancelled                      |   |   | (289,177 | )      |       |   | 21.93  |       |   |   | (5,119     | )      |   |   | 23.35 |   |
| Nonvested at December 31, 2009 |   |   | 205,744  |   |       | $      | 11.94  |       |   |   | 56,429     |   |   | $ | 10.59 |   |

|   | (1) | Assumes maximum performance targets are met for performance-based awards. |
|--------|-----|---------------------------------------------------------------------------|

|                           |   | Shares |    |   | WeightedAverageExercisePrice |   |   | WeightedAverageRemainingContractualTerm (Years) |   |   | AggregateIntrinsicValue($000) |   |
|--------------------------------|--------|--------|---------|--------|------------------------------|--------|--------|-------------------------------------------------|--------|--------|-------------------------------|--------|
| Outstanding, January 1, 2009   |   |   | 153,325 |   |                         | $      | 29.40  |                                            |   |   |                          |   |   |   |
| Cancelled                      |   |   | (23,975 | )      |                         |   | 29.40  |                                            |   |   |                          |   |   |   |
| Outstanding, December 31, 2009 |   |   | 129,350 |   |                         | $      | 29.40  |                                            |   |   | 5.9                           |   |   | $ | - |   |
|                           |   |   |    |   |                         |   |   |                                            |   |   |                          |   |   |   |   |   |
| Exercisable, December 31, 2009 |   |   | 103,780 |   |                         | $      | 29.40  |                                            |   |   | 5.9                           |   |   | $ | - |   |

----

Index 

|                                                             |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Expected life (in years)                                         |   |   | 6.01   |   |   |   | 6.01   |   |   |   | 6.01 |   |
| Expected volatility                                              |   |   | 77.73  | %      |   |   | 40.96  | %      |   |   | 23.45 |   |
| Risk-free interest rate                                          |   |   | 3.21   |   |   |   | 3.08   |   |   |   | 3.93 |   |
| Expected dividend yield                                          |   |   | 3.00   |   |   |   | 2.88   |   |   |   | 4.32 |   |
| Weighted-average fair value of options granted during the period |   | $      | 0.90   |   |   | $      | 3.20   |   |   | $ | 2.95 |   |

|                           |   |   |       |   |     |   |   | Weighted     |   |   |      |   |
|--------------------------------|--------|--------|------------|--------|----------|--------|--------|--------------|--------|--------|-----------|--------|
|                           |   |   |       |   | Weighted |   |   | Average      |   |   | Aggregate |   |
|                           |   |   |       |   | Average  |   |   | Remaining    |   |   | Intrinsic |   |
|                           |   |   |       |   | Exercise |   |   | Contractual  |   |   | Value     |   |
|                           |   | Shares |       |   | Price    |   |   | Term (Years) |   |   | ($000)    |   |
| Outstanding, January 1, 2009   |   |   | 4,688,093  |   |     | $      | 18.63  |         |   |   |      |   |   |   |   |
| Granted                        |   |   | 36,250     |   |     |   | 1.63   |         |   |   |      |   |   |   |   |
| Cancelled                      |   |   | (1,014,042 | )      |     |   | 17.99  |         |   |   |      |   |   |   |   |
|                           |   |   |       |   |     |   |   |         |   |   |      |   |   |   |   |
| Outstanding, December 31, 2009 |   |   | 3,710,301  |   |     | $      | 18.63  |         |   |   | 5.9       |   |   | $ | - |   |
|                           |   |   |       |   |     |   |   |         |   |   |      |   |   |   |   |   |
| Exercisable, December 31, 2009 |   |   | 2,145,442  |   |     | $      | 22.44  |         |   |   | 4.2       |   |   | $ | - |   |

----

Index 

----

Index 

|   | · | Level 1 – Valuations are based on quoted prices in active markets for identical assets and liabilities. Level 1 assets include debt and equity securities that are traded in an active exchange market, as well as certain U.S. Treasury securities that are highly liquid and are actively traded in over-the-counter markets. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Level 2 – Valuations are based on observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments and derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. This category generally includes U.S. government agencies, agency mortgage-backed debt securities, private-label mortgage-backed debt securities, state and municipal bonds and certain derivative contracts. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Level 3 – Valuations include unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets. For example, this category includes certain derivative contracts for which independent pricing information is not available for a significant portion of the underlying assets. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index 

|                                                 |   | 2009   |      |
|------------------------------------------------------|--------|--------|-----------|
|                                                 |   | Total  |      |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |
| Securities available for sale:                       |   |   |      |   |   |   |   |   |   |   |   |   |
| U.S. Treasury                                        |   | $      | 2,045     |   |   | $ | 2,045 |   |   | $ | - |   |   | $ | - |   |
| U.S. Government agencies                             |   |   | 79,707    |   |   |   | 76,696 |   |   |   | 3,011 |   |   |   | - |   |
| Agency residential mortgage-backed securities        |   |   | 1,980,305 |   |   |   | - |   |   |   | 1,980,305 |   |   |   | - |   |
| Private label residential mortgage-backed securities |   |   | 8,504     |   |   |   | - |   |   |   | 8,504 |   |   |   | - |   |
| State and municipals                                 |   |   | 23,158    |   |   |   | - |   |   |   | 22,858 |   |   |   | 300 |   |
| Other investments                                    |   |   | 1,682     |   |   |   | 1,229 |   |   |   | 452 |   |   |   | 1 |   |
| Total securities available for sale                  |   |   | 2,095,401 |   |   |   | 79,970 |   |   |   | 2,015,130 |   |   |   | 301 |   |
| Derivative assets                                    |   |   | 42,599    |   |   |   | - |   |   |   | 38,906 |   |   |   | 3,693 |   |
| Total                                                |   | $      | 2,138,000 |   |   | $ | 79,970 |   |   | $ | 2,054,036 |   |   | $ | 3,994 |   |
|                                                 |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                 |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Derivative liabilities                               |   | $      | 23,040    |   |   | $ | - |   |   | $ | 22,675 |   |   | $ | 365 |   |

|                          |   | 2008   |      |
|-------------------------------|--------|--------|-----------|
|                          |   | Total  |      |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |
|                          |   |   |      |   |   |   |   |   |   |   |   |   |
| Securities available for sale |   | $      | 2,071,658 |   |   | $ | 155,938 |   |   | $ | 1,915,154 |   |   | $ | 566 |   |
| Mortgage loans held for sale  |   |   | 14,681    |   |   |   | - |   |   |   | 14,681 |   |   |   | - |   |
| Derivative assets             |   |   | 107,338   |   |   |   | - |   |   |   | 103,998 |   |   |   | 3,340 |   |
| Total                         |   | $      | 2,193,677 |   |   | $ | 155,938 |   |   | $ | 2,033,833 |   |   | $ | 3,906 |   |
|                          |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                          |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Derivative liabilities        |   | $      | 52,570    |   |   | $ | - |   |   | $ | 48,820 |   |   | $ | 3,750 |   |

----

Index 

|                                                                           |   | 2009       |   |   | 2008        |   |
|--------------------------------------------------------------------------------|--------|------------|--------|--------|-------------|--------|
|                                                                           |   |       |   |   | Net         |   |   |   |   |   | Net |   |
|                                                                           |   | Securities |   |   | Derivative  |   |   | Securities |   |   | Derivative |   |
|                                                                           |   | Available  |   |   | Asset       |   |   | Available |   |   | Asset |   |
|                                                                           |   | For Sale   |   |   | (Liability) |   |   | For Sale |   |   | (Liability) |   |
|                                                                           |   |       |   |   |        |   |   |   |   |   |   |   |
| Balance at beginning of period                                                 |   | $          | 566    |   |        | $      | (410 | ) |   | $ | 2,402 |   |   | $ | 370 |   |
| Total net gains (losses) included in net loss                                  |   |       | -      |   |        |   | 865 |   |   |   | - |   |   |   | (829 | ) |
| Purchases, sales, issuances and settlements, net                               |   |       | (265   | )      |        |   | - |   |   |   | (1,836 | ) |   |   | 10 |   |
| Transfers into Level 3, net                                                    |   |       | -      |   |        |   | 2,873 |   |   |   | - |   |   |   | 39 |   |
| Balance at end of period                                                       |   | $          | 301    |   |        | $      | 3,328 |   |   | $ | 566 |   |   | $ | (410 | ) |
|                                                                           |   |       |   |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Net gains (losses) included in net loss relating to assets held at December 31 |   | $          | -      |   |        | $      | 1,308 |   |   | $ | - |   |   | $ | (829 | ) |

|                              |   | Carrying value at year end |    |   | Total gains (losses) |   |
|-----------------------------------|--------|----------------------------|---------|--------|----------------------|--------|
|                              |   | Total                      |    |   | Level 1              |   |   | Level 2 |   |   | Level 3 |   |   | for the year ended |   |
| December 31, 2009                 |   |                       |    |   |                 |   |   |   |   |   |   |   |   |   |   |
| Loans held for investment         |   | $                          | 242,405 |   |                 | $      | - |   |   | $ | - |   |   | $ | 242,405 |   |   | $ | (118,094 | ) |
| Long-lived assets                 |   |                       | 56,125  |   |                 |   | - |   |   |   | 56,125 |   |   |   | - |   |   |   | (19,378 | ) |
| Other real estate owned           |   |                       | 91,059  |   |                 |   | - |   |   |   | - |   |   |   | 91,059 |   |   |   | (78,563 | ) |
| Private equity investments        |   |                       | 4,605   |   |                 |   | - |   |   |   | - |   |   |   | 4,605 |   |   |   | (3,710 | ) |
| Auction rate preferred securities |   |                       | 5,174   |   |                 |   | - |   |   |   | - |   |   |   | 5,174 |   |   |   | (676 | ) |
|                              |   |                       |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |   | $ | (220,421 | ) |
|                              |   |                       |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2008                 |   |                       |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans held for investment         |   | $                          | 243,079 |   |                 | $      | - |   |   | $ | - |   |   | $ | 243,079 |   |   | $ | (106,183 | ) |
| Loans held for sale               |   |                       | 16,282  |   |                 |   | - |   |   |   | - |   |   |   | 16,282 |   |   |   | (20,056 | ) |
|                              |   |                       |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |   | $ | (126,239 | ) |

----

Index 

----

Index 

|                           |   | 2009     |      |   | 2008   |   |
|--------------------------------|--------|----------|-----------|--------|--------|--------|
|                           |   | Carrying |      |   | Fair   |   |   | Carrying |   |   | Fair |   |
|                           |   | Amount   |      |   | Value  |   |   | Amount |   |   | Value |   |
| Financial Assets               |   |     |      |   |   |   |   |   |   |   |   |   |
| Cash and due from banks        |   | $        | 383,184   |   |   | $      | 383,184 |   |   | $ | 292,219 |   |   | $ | 292,219 |   |
| Interest-bearing bank balances |   |     | 124       |   |   |   | 124 |   |   |   | 166 |   |   |   | 166 |   |
| Securities available for sale  |   |     | 2,095,401 |   |   |   | 2,095,401 |   |   |   | 2,071,658 |   |   |   | 2,071,658 |   |
| Securities held to maturity    |   |     | 127,516   |   |   |   | 129,496 |   |   |   | 22,709 |   |   |   | 23,048 |   |
| Net loans                      |   |     | 8,036,243 |   |   |   | 7,213,252 |   |   |   | 9,975,949 |   |   |   | 9,494,197 |   |
| Derivative assets              |   |     | 42,599    |   |   |   | 42,599 |   |   |   | 107,338 |   |   |   | 107,338 |   |
|                           |   |     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Financial Liabilities          |   |     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                       |   |     | 9,296,212 |   |   |   | 9,344,083 |   |   |   | 9,405,717 |   |   |   | 9,487,817 |   |
| Short-term borrowings          |   |     | 322,702   |   |   |   | 322,545 |   |   |   | 1,626,374 |   |   |   | 1,626,025 |   |
| Long-term debt                 |   |     | 1,116,869 |   |   |   | 1,007,901 |   |   |   | 707,769 |   |   |   | 705,504 |   |
| Derivative liabilities         |   |     | 23,040    |   |   |   | 23,040 |   |   |   | 52,570 |   |   |   | 52,570 |   |

----

Index 

----

Index 

|                                                      |   | Carolina |      |   |       |   |      |   |   |   |      |   |
|-----------------------------------------------------------|--------|----------|-----------|--------|------------|--------|-----------|--------|--------|--------|-----------|--------|
|                                                      |   | First    |      |   | Mercantile |   |      | Other  |   |   | Total     |   |
| Year Ended December 31, 2009                              |   |     |      |   |       |   |      |   |   |   |      |   |
| Net interest income before inter-segment income (expense) |   | $        | 175,448   |   |       | $      | 86,184    |   |   | $      | 69,900    |   |   | $ | 331,532 |   |
| Inter-segment interest income (expense)                   |   |     | 13,194    |   |       |   | 35,107    |   |   |   | (48,301   | )      |   |   | - |   |
| Net interest income                                       |   |     | 188,642   |   |       |   | 121,291   |   |   |   | 21,599    |   |   |   | 331,532 |   |
| Provision for credit losses (1)                           |   |     | 259,619   |   |       |   | 313,131   |   |   |   | 96,154    |   |   |   | 668,904 |   |
| Noninterest income                                        |   |     | 53,214    |   |       |   | 22,432    |   |   |   | 42,387    |   |   |   | 118,033 |   |
| Goodwill impairment                                       |   |     | -         |   |       |   | -         |   |   |   | 2,511     |   |   |   | 2,511 |   |
| Other noninterest expenses - direct (2)                   |   |     | 127,850   |   |       |   | 105,955   |   |   |   | 182,805   |   |   |   | 416,610 |   |
| Contribution before allocation                            |   |     | (145,613  | )      |       |   | (275,363  | )      |   |   | (217,484  | )      |   |   | (638,460 | ) |
| Noninterest expenses - allocated (3)                      |   |     | 89,333    |   |       |   | 50,245    |   |   |   | (139,578  | )      |   |   | - |   |
| Contribution before income taxes                          |   | $        | (234,946  | )      |       | $      | (325,608  | )      |   | $      | (77,906   | )      |   |   | (638,460 | ) |
| Income tax expense                                        |   |     |      |   |       |   |      |   |   |   |      |   |   |   | 37,794 |   |
| Net loss                                                  |   |     |      |   |       |   |      |   |   |   |      |   |   | $ | (676,254 | ) |
|                                                      |   |     |      |   |       |   |      |   |   |   |      |   |   |   |   |   |
| December 31, 2009                                         |   |     |      |   |       |   |      |   |   |   |      |   |   |   |   |   |
| Total assets                                              |   | $        | 5,360,888 |   |       | $      | 2,939,438 |   |   | $      | 3,594,656 |   |   | $ | 11,894,982 |   |
| Total loans held for investment                           |   |     | 5,078,731 |   |       |   | 2,910,947 |   |   |   | 396,449   |   |   |   | 8,386,127 |   |
| Total deposits                                            |   |     | 4,164,396 |   |       |   | 3,133,156 |   |   |   | 1,998,660 |   |   |   | 9,296,212 |   |
|                                                      |   |     |      |   |       |   |      |   |   |   |      |   |   |   |   |   |
| Year Ended December 31, 2008                              |   |     |      |   |       |   |      |   |   |   |      |   |   |   |   |   |
| Net interest income before inter-segment income (expense) |   | $        | 218,893   |   |       | $      | 133,080   |   |   | $      | 28,190    |   |   | $ | 380,163 |   |
| Inter-segment interest income (expense)                   |   |     | (3,630    | )      |       |   | (2,293    | )      |   |   | 5,923     |   |   |   | - |   |
| Net interest income                                       |   |     | 215,263   |   |       |   | 130,787   |   |   |   | 34,113    |   |   |   | 380,163 |   |
| Provision for credit losses                               |   |     | 129,710   |   |       |   | 192,371   |   |   |   | 22,508    |   |   |   | 344,589 |   |
| Noninterest income                                        |   |     | 58,666    |   |       |   | 28,447    |   |   |   | 34,854    |   |   |   | 121,967 |   |
| Goodwill impairment                                       |   |     | -         |   |       |   | 426,049   |   |   |   | -         |   |   |   | 426,049 |   |
| Other noninterest expenses - direct (2)                   |   |     | 96,443    |   |       |   | 72,686    |   |   |   | 197,055   |   |   |   | 366,184 |   |
| Contribution before allocation                            |   |     | 47,776    |   |       |   | (531,872  | )      |   |   | (150,596  | )      |   |   | (634,692 | ) |
| Noninterest expenses - allocated (3)                      |   |     | 90,212    |   |       |   | 60,437    |   |   |   | (150,649  | )      |   |   | - |   |
| Contribution before income taxes                          |   | $        | (42,436   | )      |       | $      | (592,309  | )      |   | $      | 53        |   |   |   | (634,692 | ) |
| Income tax benefit                                        |   |     |      |   |       |   |      |   |   |   |      |   |   |   | (87,574 | ) |
| Net loss                                                  |   |     |      |   |       |   |      |   |   |   |      |   |   | $ | (547,118 | ) |
|                                                      |   |     |      |   |       |   |      |   |   |   |      |   |   |   |   |   |
| December 31, 2008                                         |   |     |      |   |       |   |      |   |   |   |      |   |   |   |   |   |
| Total assets                                              |   | $        | 6,117,729 |   |       | $      | 3,629,680 |   |   | $      | 3,854,917 |   |   | $ | 13,602,326 |   |
| Total loans held for investment                           |   |     | 5,856,742 |   |       |   | 3,548,031 |   |   |   | 787,299   |   |   |   | 10,192,072 |   |
| Total deposits                                            |   |     | 4,383,851 |   |       |   | 3,060,230 |   |   |   | 1,961,636 |   |   |   | 9,405,717 |   |

| Year Ended December 31, 2007                              |   |   |    |   |   |   |    |   |   |   |     |   |
|-----------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|----------|--------|
| Net interest income before inter-segment income (expense) |   | $      | 262,667 |   |   | $      | 174,309 |   |   | $      | (54,195  | )      |   | $ | 382,781 |   |
| Inter-segment interest income (expense)                   |   |   | (29,904 | )      |   |   | (18,921 | )      |   |   | 48,825   |   |   |   | - |   |
| Net interest income                                       |   |   | 232,763 |   |   |   | 155,388 |   |   |   | (5,370   | )      |   |   | 382,781 |   |
| Provision for credit losses (1)                           |   |   | 37,457  |   |   |   | 25,262  |   |   |   | 5,849    |   |   |   | 68,568 |   |
| Noninterest income                                        |   |   | 54,462  |   |   |   | 27,855  |   |   |   | 31,395   |   |   |   | 113,712 |   |
| Noninterest expenses - direct (2)                         |   |   | 84,958  |   |   |   | 60,742  |   |   |   | 175,549  |   |   |   | 321,249 |   |
| Contribution before allocation                            |   |   | 164,810 |   |   |   | 97,239  |   |   |   | (155,373 | )      |   |   | 106,676 |   |
| Noninterest expenses - allocated (3)                      |   |   | 71,694  |   |   |   | 45,309  |   |   |   | (117,003 | )      |   |   | - |   |
| Contribution before income taxes                          |   | $      | 93,116  |   |   | $      | 51,930  |   |   | $      | (38,370  | )      |   |   | 106,676 |   |
| Income tax expense                                        |   |   |    |   |   |   |    |   |   |   |     |   |   |   | 33,400 |   |
| Net income                                                |   |   |    |   |   |   |    |   |   |   |     |   |   | $ | 73,276 |   |

|   | (1) | In 2009, TSFG began allocating provision expense to the segments using an expected loss methodology. Prior periods reflect a more general allocation. Provision expense included in “Other” includes the provision related to indirect auto, certain New Market Tax Credit loans, and the amount needed to account for differences in the consolidated allowance model and segment results that use an expected loss methodology. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Noninterest expenses – direct include the direct costs of the segment’s operations such as facilities, personnel, and other operating expenses. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Noninterest expenses – allocated include expenses not directly attributable to the segments, such as information services, operations, human resources, accounting, finance, treasury, and corporate incentive plans. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index 

| Condensed Balance Sheets               |   |
|----------------------------------------|--------|
|                                   |   | December 31, |   |
|                                   |   | 2009 |   |   | 2008 |   |
| Assets                                 |   |   |   |   |   |   |
| Cash and due from banks                |   | $ | 3,488 |   |   | $ | 27,787 |   |
| Interest-bearing bank balances         |   |   | 52,682 |   |   |   | 182,000 |   |
| Investment in subsidiaries:            |   |   |   |   |   |   |   |   |
| Bank subsidiaries                      |   |   | 1,125,649 |   |   |   | 1,607,229 |   |
| Nonbank subsidiaries                   |   |   | - |   |   |   | 3,798 |   |
| Total investment in subsidiaries       |   |   | 1,125,649 |   |   |   | 1,611,027 |   |
| Receivable from subsidiaries           |   |   | 154 |   |   |   | 2,630 |   |
| Other investments                      |   |   | 1,680 |   |   |   | 2,023 |   |
| Other assets                           |   |   | 17,499 |   |   |   | 31,630 |   |
|                                   |   | $ | 1,201,152 |   |   | $ | 1,857,097 |   |
|                                   |   |   |   |   |   |   |   |   |
| Liabilities and Shareholders' Equity   |   |   |   |   |   |   |   |   |
| Accrued expenses and other liabilities |   | $ | 872 |   |   | $ | 11,311 |   |
| Payables to subsidiaries               |   |   | 402 |   |   |   | 6,014 |   |
| Borrowed funds                         |   |   | - |   |   |   | 12,537 |   |
| Subordinated debt                      |   |   | 206,704 |   |   |   | 206,704 |   |
| Shareholders' equity                   |   |   | 993,174 |   |   |   | 1,620,531 |   |
|                                   |   | $ | 1,201,152 |   |   | $ | 1,857,097 |   |

| Condensed Statements of Income                            |   |
|-----------------------------------------------------------|--------|
|                                                      |   | Years Ended December 31, |   |
|                                                      |   | 2009 |   |   | 2008 |   |   | 2007 |   |
| Income                                                    |   |   |   |   |   |   |   |   |   |
| Equity in undistributed net (loss) income of subsidiaries |   | $ | (655,123 | ) |   | $ | (568,826 | ) |   | $ | 203 |   |
| Dividend income from subsidiaries                         |   |   | - |   |   |   | 27,405 |   |   |   | 75,886 |   |
| (Loss) gain on equity investments                         |   |   | (3,655 | ) |   |   | 1,450 |   |   |   | (68 | ) |
| Interest income from subsidiaries                         |   |   | 1,574 |   |   |   | 193 |   |   |   | 356 |   |
| Other                                                     |   |   | 3,008 |   |   |   | 4,338 |   |   |   | 6,261 |   |
|                                                      |   |   | (654,196 | ) |   |   | (535,440 | ) |   |   | 82,638 |   |
| Expenses                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest on borrowed funds                                |   |   | 4,920 |   |   |   | 10,700 |   |   |   | 17,074 |   |
| Loss on early extinguishment of debt                      |   |   | - |   |   |   | - |   |   |   | 1,772 |   |
| Other                                                     |   |   | 3,656 |   |   |   | 4,596 |   |   |   | (8,205 | ) |
|                                                      |   |   | 8,576 |   |   |   | 15,296 |   |   |   | 10,641 |   |
| (Loss) income before taxes                                |   |   | (662,772 | ) |   |   | (550,736 | ) |   |   | 71,997 |   |
| Income tax expense (benefit)                              |   |   | 13,482 |   |   |   | (3,618 | ) |   |   | (1,279 | ) |
| Net (loss) income                                         |   | $ | (676,254 | ) |   | $ | (547,118 | ) |   | $ | 73,276 |   |

----

Index 

| Condensed Statements of Cash Flows                                                       |   |
|------------------------------------------------------------------------------------------|--------|
|                                                                                     |   | Years Ended December 31, |   |
|                                                                                     |   | 2009 |   |   | 2008 |   |   | 2007 |   |
| Operating Activities                                                                     |   |   |   |   |   |   |   |   |   |
| Net (loss) income                                                                        |   | $ | (676,254 | ) |   | $ | (547,118 | ) |   | $ | 73,276 |   |
| Adjustments to reconcile net (loss) income to net cash (used for) provided by operations |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity in undistributed net loss (income) of subsidiaries                                |   |   | 655,123 |   |   |   | 568,826 |   |   |   | (203 | ) |
| Loss (gain) on equity investments                                                        |   |   | 3,655 |   |   |   | (1,450 | ) |   |   | 68 |   |
| Loss on early extinguishment of debt                                                     |   |   | - |   |   |   | - |   |   |   | 1,772 |   |
| Decrease in other assets                                                                 |   |   | 12,126 |   |   |   | 15,284 |   |   |   | 17,917 |   |
| Decrease in other liabilities                                                            |   |   | (246 | ) |   |   | (357 | ) |   |   | (16,279 | ) |
| Net cash (used for) provided by operating activities                                     |   |   | (5,596 | ) |   |   | 35,185 |   |   |   | 76,551 |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Investing Activities                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| (Investment in) distribution from subsidiaries                                           |   |   | (181,326 | ) |   |   | (385,113 | ) |   |   | 12 |   |
| Proceeds from disposition of equity investments                                          |   |   | - |   |   |   | 1,993 |   |   |   | 8,235 |   |
| Purchase of equity investments                                                           |   |   | - |   |   |   | - |   |   |   | (1,178 | ) |
| Net cash (used for) provided by investing activities                                     |   |   | (181,326 | ) |   |   | (383,120 | ) |   |   | 7,069 |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Financing Activities                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Decrease in borrowings                                                                   |   |   | (12,537 | ) |   |   | (18,291 | ) |   |   | (2,003 | ) |
| Issuance of subordinated debt                                                            |   |   | - |   |   |   | - |   |   |   | 126,290 |   |
| Payment of subordinated debt                                                             |   |   | - |   |   |   | - |   |   |   | (98,457 | ) |
| Issuance of preferred stock and warrant, net                                             |   |   | - |   |   |   | 584,970 |   |   |   | - |   |
| Cash dividends paid on common stock                                                      |   |   | (3,440 | ) |   |   | (29,106 | ) |   |   | (53,493 | ) |
| Cash dividends paid on preferred stock                                                   |   |   | (29,609 | ) |   |   | (11,920 | ) |   |   | - |   |
| Issuance of common stock, net                                                            |   |   | 79,725 |   |   |   | - |   |   |   | - |   |
| Repurchase of common stock                                                               |   |   | - |   |   |   | - |   |   |   | (83,291 | ) |
| Other, net                                                                               |   |   | (834 | ) |   |   | 2,101 |   |   |   | 12,316 |   |
| Net cash provided by (used for) financing activities                                     |   |   | 33,305 |   |   |   | 527,754 |   |   |   | (98,638 | ) |
| Net change in cash and cash equivalents                                                  |   |   | (153,617 | ) |   |   | 179,819 |   |   |   | (15,018 | ) |
| Cash and cash equivalents at beginning of year                                           |   |   | 209,787 |   |   |   | 29,968 |   |   |   | 44,986 |   |
| Cash and cash equivalents at end of year                                                 |   | $ | 56,170 |   |   | $ | 209,787 |   |   | $ | 29,968 |   |

----

Index 

| 2009 Quarterly Financial Data             |   |
|-------------------------------------------|--------|
|                                      |   |   |   |   |   |   |   |   |   |   |   |   |
|                                      |   | Three Months Ended |   |
|                                      |   | December 31 |   |   | September 30 |   |   | June 30 |   |   | March 31 |   |
|                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                           |   | $ | 127,548 |   |   | $ | 131,421 |   |   | $ | 142,035 |   |   | $ | 146,902 |   |
| Interest expense                          |   |   | 47,002 |   |   |   | 51,383 |   |   |   | 56,105 |   |   |   | 61,884 |   |
| Net interest income                       |   |   | 80,546 |   |   |   | 80,038 |   |   |   | 85,930 |   |   |   | 85,018 |   |
| Provision for credit losses               |   |   | 170,761 |   |   |   | 224,179 |   |   |   | 131,337 |   |   |   | 142,627 |   |
| Noninterest income                        |   |   | 28,550 |   |   |   | 33,470 |   |   |   | 32,272 |   |   |   | 23,741 |   |
| Noninterest expenses                      |   |   | 103,163 |   |   |   | 89,529 |   |   |   | 136,188 |   |   |   | 90,241 |   |
| Loss before income taxes                  |   |   | (164,828 | ) |   |   | (200,200 | ) |   |   | (149,323 | ) |   |   | (124,109 | ) |
| Income tax expense (benefit) (1)          |   |   | 23,843 |   |   |   | 123,304 |   |   |   | (59,647 | ) |   |   | (49,706 | ) |
| Net loss                                  |   |   | (188,671 | ) |   |   | (323,504 | ) |   |   | (89,676 | ) |   |   | (74,403 | ) |
| Preferred stock dividends and other       |   |   | (5,221 | ) |   |   | (17,251 | ) |   |   | (21,809 | ) |   |   | (16,408 | ) |
| Net loss available to common shareholders |   | $ | (193,892 | ) |   | $ | (340,755 | ) |   | $ | (111,485 | ) |   | $ | (90,811 | ) |
|                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss per common share, basic              |   | $ | (0.90 | ) |   | $ | (1.95 | ) |   | $ | (1.23 | ) |   | $ | (1.10 | ) |
| Loss per common share, diluted            |   | $ | (0.90 | ) |   | $ | (1.95 | ) |   | $ | (1.23 | ) |   | $ | (1.10 | ) |

| 2008 Quarterly Financial Data             |   |
|-------------------------------------------|--------|
|                                      |   |   |   |   |   |   |   |   |   |   |   |   |
|                                      |   | Three Months Ended |   |
|                                      |   | December 31 |   |   | September 30 |   |   | June 30 |   |   | March 31 |   |
|                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                           |   | $ | 168,225 |   |   | $ | 178,238 |   |   | $ | 181,192 |   |   | $ | 194,385 |   |
| Interest expense                          |   |   | 76,592 |   |   |   | 82,619 |   |   |   | 80,987 |   |   |   | 101,679 |   |
| Net interest income                       |   |   | 91,633 |   |   |   | 95,619 |   |   |   | 100,205 |   |   |   | 92,706 |   |
| Provision for credit losses               |   |   | 122,926 |   |   |   | 84,608 |   |   |   | 63,763 |   |   |   | 73,292 |   |
| Noninterest income                        |   |   | 30,012 |   |   |   | 28,665 |   |   |   | 32,187 |   |   |   | 31,103 |   |
| Noninterest expenses (2)                  |   |   | 342,093 |   |   |   | 94,157 |   |   |   | 87,617 |   |   |   | 268,366 |   |
| Loss before income taxes                  |   |   | (343,374 | ) |   |   | (54,481 | ) |   |   | (18,988 | ) |   |   | (217,849 | ) |
| Income tax benefit                        |   |   | (33,435 | ) |   |   | (29,526 | ) |   |   | (8,056 | ) |   |   | (16,557 | ) |
| Net loss                                  |   |   | (309,939 | ) |   |   | (24,955 | ) |   |   | (10,932 | ) |   |   | (201,292 | ) |
| Preferred stock dividends and other       |   |   | (9,424 | ) |   |   | (6,257 | ) |   |   | (5,840 | ) |   |   | (137 | ) |
| Net loss available to common shareholders |   | $ | (319,363 | ) |   | $ | (31,212 | ) |   | $ | (16,772 | ) |   | $ | (201,429 | ) |
|                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss per common share, basic              |   | $ | (4.29 | ) |   | $ | (0.43 | ) |   | $ | (0.23 | ) |   | $ | (2.78 | ) |
| Loss per common share, diluted            |   | $ | (4.29 | ) |   | $ | (0.43 | ) |   | $ | (0.23 | ) |   | $ | (2.78 | ) |

|   | (1) | Includes an increase to the deferred tax asset valuation allowance of $86.4 million and $200.1 million, respectively, during the quarters ended December 31, 2009 and September 30, 2009. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Includes goodwill impairment of $237.6 million and $188.4 million, respectively, during the quarters ended December 31, 2008 and March 31, 2008. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index 

| Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure |
|---------|--------------------------------------------------------------------------------------|

| Item 9A. | Controls and Procedures |
|----------|-------------------------|

|   | (a) | At December 31, 2009, TSFG’s management, under the supervision and with the participation of TSFG’s Chief Executive Officer and Chief Financial Officer, evaluated its disclosure controls and procedures as currently in effect. Based on this evaluation, TSFG’s management concluded that as of December 31, 2009, TSFG’s disclosure controls and procedures were effective (1) to provide reasonable assurance that information required to be disclosed by TSFG in the reports filed or submitted by it under the Exchange Act was recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and (2) to provide reasonable assurance that information required to be disclosed by TSFG in such reports was accumulated and communicated to TSFG’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Attestation report of PricewaterhouseCoopers LLP, an independent registered public accounting firm, on the effectiveness of TSFG’s internal control over financial reporting: |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Changes in internal control over financial reporting: |
|--------|-----|-------------------------------------------------------|

----

Index 

| Item 9B. | Other Information |
|----------|-------------------|

----

Index 

PART 

| Item 10. | Directors, Executive Officers and Corporate Governance |
|----------|--------------------------------------------------------|

| Item 11. | Executive Compensation |
|----------|------------------------|

| Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
|----------|------------------------------------------------------------------------------------------------|

| Item 13. | Certain Relationships and Related Transactions, and Director Independence |
|----------|---------------------------------------------------------------------------|

| Item 14. | Principal Accountant Fees and Services |
|----------|----------------------------------------|

----

Index 

PART 

| Item 15. | Exhibits and Financial Statement Schedules |
|----------|--------------------------------------------|

|   | Management’s Report on Internal Control over Financial Reporting |
|--------|------------------------------------------------------------------------|

|   | Report of PricewaterhouseCoopers LLP, an Independent Registered Public Accounting Firm |
|--------|----------------------------------------------------------------------------------------|

|   | Consolidated Balance Sheets—December 31, 2009 and 2008 |
|--------|--------------------------------------------------------------|

|   | Consolidated Statements of Operations—Years ended December 31, 2009, 2008 and 2007 |
|--------|------------------------------------------------------------------------------------------|

|   | Consolidated Statements of Changes in Shareholders’ Equity and Comprehensive (Loss) Income—Years ended December 31, 2009, 2008 and 2007 |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Consolidated Statements of Cash Flows—Years ended December 31, 2009, 2008 and 2007 |
|--------|------------------------------------------------------------------------------------------|

|   | Notes to Consolidated Financial Statements |
|--------|--------------------------------------------|

| Exhibit No. |   | Description of Exhibit                                              |   | Location                                                                                                                                                                                                    |
|-------------|--------|---------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1         |   | Articles of Incorporation                                           |   | Incorporated by reference to Exhibit 3.1 of TSFG’s Quarterly Report on Form 10-Q for the three months ended September 30, 2009                                                                        |
| 3.2         |   | Bylaws of TSFG                                                      |   | Incorporated by reference to Exhibit 3.2 of TSFG's Quarterly Report on Form 10-Q for the three months ended June 30, 2009                                                                         |
| 4.1         |   | Specimen TSFG Common Stock certificate                              |   | Incorporated by Reference to Exhibit 4.1 of TSFG's Registration Statement on Form S-1                                                                                                             |
| 4.2         |   | Specimen certificate for shares of Preferred Stock, Series 2008D-V  |   | Incorporated by Reference to Exhibit 4.3 of TSFG's Registration Statement on Form S-3 dated June 6, 2008                                                                                          |
| 4.3         |   | Specimen certificate for shares of Preferred Stock, Series 2008D-NV |   | Incorporated by Reference to Exhibit 4.4 of TSFG's Registration Statement on Form S-3 dated June 6, 2008                                                                                          |
| 4.4         |   | Specimen Certificate for the Series 2008-T Preferred Stock          |   | Incorporated by reference to Exhibit 4.1 of TSFG's Current Report on Form 8-K dated December 5, 2008                                                                                              |
| 4.5         |   | Warrant for Purchase of Shares of Common Stock                      |   | Incorporated by reference to Exhibit 4.2 of TSFG’s Current Report on Form 8-K dated December 5, 2008                                                                                                  |
| 4.6         |   | Amended and Restated Common Stock Dividend Reinvestment Plan        |   | Incorporated by reference to the Prospectus in TSFG’s Registration Statement on Form S-3, Commission File No. 333-149820                                                                    |
| 10.1 *      |   | TSFG Amended and Restated Restricted Stock Agreement Plan           |   | Incorporated by reference to Exhibit 10.1 of TSFG’s Annual Report on Form 10-K for the year ended December 31, 2006 and Exhibit 10.4 to TSFG’s Current Report on Form 8-K dated August 14, 2007 |
| 10.2 *      |   | TSFG Amended and Restated Stock Option Plan                         |   | Incorporated by reference to Exhibit 99.1 of TSFG’s Registration Statement on Form S-8, Commission File No. 333-158835                                                                                |

----

Index 

| Exhibit No. |   | Description of Exhibit                                                                                                |   | Location                                                                                                                                  |
|-------------|--------|-----------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|
| 10.3 *      |   | TSFG Salary Reduction Plan                                                                                            |   | Incorporated by reference to Exhibit 28.1 of TSFG’s Registration Statement on Form S-8, Commission File No. 33-25424 |
| 10.4-a *    |   | Noncompetition, Severance and Employment Agreement dated February 25, 2008 between TSFG and H. Lynn Harton            |   | Incorporated by reference to Exhibit 10.20 of TSFG’s Annual Report on Form 10-K for the year ended December 31, 2007                |
| 10.4-b *    |   | Retention Bonus Award Agreement dated September 18, 2008 between TSFG and H. Lynn Harton                              |   | Incorporated by reference to Exhibit 10.1 of TSFG’s Current Report on Form 8-K dated September 18, 2008                   |
| 10.4-c *    |   | Supplemental Executive Retirement Agreement between TSFG and H. Lynn Harton                                           |   | Incorporated by reference to Exhibit 10.24 of TSFG’s Annual Report on Form 10-K for the year ended December 31, 2007 |
| 10.5-a *    |   | Noncompetition, Severance and Employment Agreement dated February 25, 2008 between TSFG and James R. Gordon           |   | Incorporated by reference to Exhibit 10.6 of TSFG’s Annual Report on Form 10-K for the year ended December 31, 2007                 |
| 10.5-b *    |   | Retention Bonus Award Agreement dated September 18, 2008 between TSFG and James R. Gordon                             |   | Incorporated by reference to Exhibit 10.1 of TSFG’s Current Report on Form 8-K dated September 18, 2008                   |
| 10.5-c *    |   | Supplemental Executive Retirement Agreement between TSFG and James R. Gordon                                          |   | Incorporated by reference to Exhibit 99.2 of TSFG’s Current Report on Form 8-K dated March 20, 2007                  |
| 10.6-a *    |   | Noncompetition, Severance and Employment Agreement dated September 3, 2007 between TSFG and J. Ernesto Diaz |   | Filed herewith                                                                                                                            |
| 10.6-b *    |   | Supplemental Executive Retirement Agreement between TSFG and J. Ernesto Diaz                                          |   | Filed herewith                                                                                                                            |
| 10.7-a *    |   | Noncompetition, Severance and Employment Agreement dated February 25, 2008 between TSFG and Christopher T. Holmes     |   | Incorporated by reference to Exhibit 10.8-a of TSFG’s Annual Report on Form 10-K for the year ended December 31, 2008               |
| 10.7-b *    |   | Retention Bonus Award Agreement dated September 18, 2008 between TSFG and Christopher T. Holmes                       |   | Incorporated by reference to Exhibit 10.1 of TSFG’s Current Report on Form 8-K dated September 18, 2008                   |
| 10.7-c *    |   | Supplemental Executive Retirement Agreement between TSFG and Christopher T. Holmes                                    |   | Incorporated by reference to Exhibit 10.8-c of TSFG’s Annual Report on Form 10-K for the year ended December 31, 2008               |
| 10.8-a *    |   | Noncompetition, Severance and Employment Agreement dated February 25, 2008 between TSFG and William P. Crawford, Jr.  |   | Incorporated by reference to Exhibit 10.10-a of TSFG’s Annual Report on Form 10-K for the year ended December 31, 2008              |
| 10.8-b *    |   | Supplemental Executive Retirement Agreement between TSFG and William P. Crawford, Jr.                                 |   | Incorporated by reference to Exhibit 10.10-b of TSFG’s Annual Report on Form 10-K for the year ended December 31, 2008              |
| 10.9-a *    |   | Noncompetition, Severance and Employment Agreement dated May 14, 2003 between TSFG and J.W. Davis           |   | Filed herewith                                                                                                                            |
| 10.9-b*     |   | Consulting Agreement dated March 1, 2010 between Carolina First Bank and J.W. Davis                                   |   | Filed herewith                                                                                                                            |
| 10.10 *     |   | TSFG Management Performance Incentive Plan (MPIP) (the short term bonus plan)                                         |   | Incorporated by reference to Exhibit 10.2 of TSFG’s Current Report on Form 8-K dated August 14, 2007                 |
| 10.11 *     |   | Amended TSFG Long Term Incentive Plan                                                                                 |   | Incorporated by reference to Exhibit 99.1 of TSFG’s Registration Statement on Form S-8, Commission File No. 161130                  |
| 10.12 *     |   | Amended and Restated TSFG Employee Stock Purchase Plan                                                                |   | Incorporated by reference to Exhibit 99.1 of TSFG’s Registration Statement on Form S-8, Commission File No. 333-160959              |

----

Index 

| Exhibit No. |   | Description of Exhibit                                                                                                                                                                                 |   | Location                                                                                                                                          |
|-------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.13 *     |   | TSFG Directors Stock Option Plan                                                                                                                                                                       |   | Incorporated by reference to Exhibit 99.1 from TSFG’s Registration Statement on Form S-8, Commission File No. 33-82668/82670 |
| 10.14 *     |   | TSFG Amended and Restated Fortune 50 Plan                                                                                                                                                              |   | Incorporated by reference to the Prospectus in TSFG’s Registration Statement on Form S-8, Commission File No. 333-31948           |
| 10.15 *     |   | TSFG Executive Deferred Compensation Plan                                                                                                                                                              |   | Incorporated by reference to Exhibit 10.3 of TSFG’s Current Report on Form 8-K dated December 10, 2008                            |
| 10.16 *     |   | Form of Grant for TSFG 2007-2009 Long-Term Incentive Plan – Restricted Stock Unit Award Agreement                                                                                                |   | Incorporated by reference to Exhibit 10.1 of TSFG’s Current Report on Form 8-K dated August 14, 2007                                        |
| 10.17 *     |   | Form of Grant for TSFG 2008-2010 Long-Term Incentive Plan – Restricted Stock Unit Award Agreement                                                                                                |   | Incorporated by reference to Exhibit 10.21 of TSFG’s Annual Report on Form 10-K for the year ending December 31, 2008                       |
| 10.18       |   | Letter Agreement dated December 5, 2008 between TSFG and U.S. Department of Treasury                                                                                                                   |   | Incorporated by reference to Exhibit 10.1 of TSFG’s Current Report on Form 8-K dated December 5, 2008                                       |
| 10.19*      |   | Form of Waiver, executed by each of Messrs. Harton, Gordon, Crawford, Davis, Diaz and Holmes                                                                                                           |   | Filed herewith                                                                                                                                    |
| 10.20       |   | Stipulation of Compromise and Settlement dated March 31, 2009                                                                                                                                          |   | Incorporated by reference to Exhibit 99.1 of TSFG's Current Report on Form 8-K dated April 2, 2009                                                |
| 11.1        |   | Statement of Computation of Earnings Per Share                                                                                                                                                         |   | Filed herewith as Note 26 of the Notes to Consolidated Financial Statements                                                                       |
| 21.1        |   | Subsidiaries of TSFG                                                                                                                                                                                   |   | Filed herewith                                                                                                                                    |
| 22.1        |   | Proxy Statement for the 2010 Annual Meeting of Shareholders                                                                                                                                            |   | Future filing incorporated by reference pursuant to General Instruction G(3)                                                                      |
| 23.1        |   | Consent of PricewaterhouseCoopers LLP                                                                                                                                                                  |   | Filed herewith                                                                                                                                    |
| 23.2        |   | Opinion of PricewaterhouseCoopers LLP, an Independent Registered Public Accounting Firm                                                                                                                |   | Included herewith                                                                                                                                 |
| 31.1        |   | Certification of Principal Executive Officer pursuant to Rule 13a-14a/15(d)-14(a) of Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes Oxley Act of 2002 |   | Filed herewith                                                                                                                                    |
| 31.2        |   | Certification of Principal Financial Officer pursuant to Rule 13a-14a/15(d)-14(a) of Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes Oxley Act of 2002 |   | Filed herewith                                                                                                                                    |
| 32.1        |   | Certification of Principal Executive Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to section 906 of the Sarbanes Oxley Act of 2002                                                          |   | Filed herewith                                                                                                                                    |
| 32.2        |   | Certification of Principal Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to section 906 of the Sarbanes Oxley Act of 2002                                                          |   | Filed herewith                                                                                                                                    |
| 99.1        |   | Certification of Principal Executive Officer pursuant to the Emergency Economic Stability Act of 2008                                                                                                  |   | Filed herewith                                                                                                                                    |
| 99.2        |   | Certification of Principal Financial Officer pursuant to the Emergency Economic Stability Act of 2008                                                                                                  |   | Filed herewith                                                                                                                                    |

|   | * | This is a management contract or compensatory plan. |
|--------|---|-----------------------------------------------------|

| Type | Date Filed | Reporting Purpose |
|------|------------|-------------------|

|   | (c) | See Item 15(a)(3). |
|--------|-----|--------------------|

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Index 

| Name                                                                                                                                                                                                          |   | Title                                                                                          |   | Date                 |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------|--------|----------------------|
|                                                                                                                                                                                                          |   |                                                                                           |   |                 |
| /s/H. Lynn Harton.H. Lynn Harton                                                                                                                                                                              |   | President and Chief Executive Officer(Principal Executive Officer)                             |   | March 16, 2010       |
|  /s/ James R. GordonJames R. Gordon                                                                                                                                                                      |   |  Senior Executive Vice President and Chief Financial Officer(Principal Financial Officer) |   |  March 16, 2010 |
|  /s/ Christopher G. SpeaksChristopher G. Speaks                                                                                                                                                          |   |  Executive Vice President and Chief Accounting Officer(Principal Accounting Officer)      |   |  March 16, 2010 |
|                                                                                                                                                                                                          |   |                                                                                           |   |                 |
| Pursuant to the requirement of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities on the date indicated:  |
| Name                                                                                                                                                                                                          |   | Title                                                                                          |   | Date                 |
|  /s/John C. B. Smith, Jr.John C. B. Smith, Jr.                                                                                                                                                           |   |  Chairman and Director                                                                    |   |  March 16, 2010 |
|  /s/ William R. Timmons IIIWilliam R. Timmons III                                                                                                                                                        |   |  Vice-Chairman and Director                                                          |   |  March 16, 2010 |
|  /s/ J. W. DavisJ. W. Davis                                                                                                                                                                              |   |  Director                                                                                 |   |  March 16, 2010 |
|  /s/ M. Dexter HagyM. Dexter Hagy                                                                                                                                                                        |   |  Director                                                                                 |   |  March 16, 2010 |
|  /s/H. Lynn Harton.H. Lynn Harton                                                                                                                                                                        |   | Director                                                                                       |   |  March 16, 2010 |
|  /s/ William S. Hummers IIIWilliam S. Hummers III                                                                                                                                                        |   |  Director                                                                                 |   |  March 16, 2010 |
|  /s/ Challis M. LoweChallis M. Lowe                                                                                                                                                                      |   |  Director                                                                                 |   |  March 16, 2010 |
|  /s/ Jon W. PritchettJon W. Pritchett                                                                                                                                                                    |   |  Director                                                                                 |   |  March 16, 2010 |

|  /s/ H. Earle Russell, Jr.H. Earle Russell, Jr.   |   |  Director |   |  March 16, 2010 |
|--------------------------------------------------------|--------|----------------|--------|----------------------|
|  /s/ Edward J. SebastianEdward J. Sebastian       |   |  Director |   |  March 16, 2010 |
|  /s/ David C. Wakefield IIIDavid C. Wakefield III |   |  Director |   |  March 16, 2010 |

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