The South Financial Group Agrees To Merger With TD Bank Financial Group

The South Financial Group, Inc. (NASDAQ: TSFG) today announced that it has entered into a definitive agreement with TD Bank Financial Group (TSX and NYSE: TD) providing for the merger of TSFG and a wholly-owned subsidiary of TD.

Under the agreement, TD will acquire all outstanding shares of common stock of TSFG. Upon completion of the transaction, TD will acquire all of TSFG and all of its businesses and obligations, including all deposits of Carolina First Bank (which also operates as Mercantile Bank in Florida).

In light of the pending transaction with TD, TSFG is postponing its annual meeting of shareholders that was scheduled to be held on Tuesday, May 18, 2010.

“Our board and management have conducted a broad and extensive process over the last six months to seek the best outcome for our shareholders, as well as for our customers, employees and the communities which we serve,” said H. Lynn Harton, President and CEO of The South Financial Group. “TD is a strongly-capitalized financial institution with a prudent approach to risk management. It is committed to maintaining TSFG’s tradition of customer service and community involvement. TD’s Aaa-rated financial strength will help the combined company position itself for future success and long-term growth.”

Harton continued, “With this merger, we will also become part of an organization with a passion for delivering legendary customer experiences and a commitment to building strong relationships with their customers. Our Carolina First and Mercantile operations will become an integral part of TD’s expansion in building out the ‘Maine to Florida’ franchise in the United States. This is a strong combination and will bring stability to our customers and employees.”

The addition of TSFG marks TD Bank’s entry into the Carolinas and bolsters its Florida franchise. The franchises fit together very well, further filling out TD’s U.S. footprint.