The foundation for our plan is the Super Community Bank model that has allowed The South Financial Group to become a unique banking presence in many of the Southeast’s most attractive banking markets.

     The management team spearheaded the shift in priorities from growth to profitability, heading up improvements in vital areas such as noninterest income, efficiency, balance sheet management, and credit quality. In addition, the team created 3-year financial goals – important benchmarks to measure how we have progressed and will continue to progress in the years to come.

     With these financial goals in mind, in 2002 we expanded the mortgage and brokerage sales force, managed the sales force to “best practice” goals, raised referrals/sales at the branch

level, enhanced customer service/sales via the Sales and Service Center, and increased the number of households accessing our services. Also this year, The South Financial Group hired several outstanding banking professionals – experienced bankers with the skills necessary to bring big bank services to our hometown communities. We also enhanced our already-attractive geographic footprint through our 2002 mergers in Tampa Bay and Rock Hill.

     With a strategic plan serving as the roadmap to the future, The South Financial Group is poised to meet its
3-year financial goals and move forward to high performing bank levels. The key, as always, will be the focus of our people and our ability to execute the strategies we create. If 2002 is any indication, we are already focused… and well on our way.