South Financial Group
| Company type | Public |
|---|---|
| Industry | Banking |
| Founded | 1986 |
| Defunct | 2010 |
| Fate | Acquired by TD Bank, N.A. |
| Headquarters | Greenville, South Carolina , United States |
Area served | Southeastern United States (North Carolina, South Carolina, Florida) |
| Products | Banking services |
| Parent | Toronto-Dominion Bank (after 2010) |
The South Financial Group, which was previously known as Carolina First Corporation, functioned as a publicly held bank holding company based in Greenville, South Carolina. Its operations were conducted via subsidiaries including Carolina First, serving North and South Carolina, and Mercantile Bank located in Florida.
Confronted with substantial financial difficulties, The South Financial Group disclosed losses surpassing $1.7 billion from 2008 up to its 2010 acquisition by TD Bank, N.A., a subsidiary of Toronto-Dominion Bank headquartered in Toronto, Canada. The firm recorded losses exceeding $735 million in 2009 alone and an additional $400 million during the first half of 2010. In May 2010, TD Bank revealed intentions to acquire The South Financial Group, subject to regulatory clearance. A shareholder lawsuit involving both companies was resolved, clearing the way for the acquisition.
Between 2007 and 2010, the value of South Financial’s stock collapsed from above $25 per share to below $1, representing a decline of approximately 99%. In December 2008, the company obtained $347 million through the federal Troubled Asset Relief Program (TARP). By April 2010, Carolina First entered into a consent order with the FDIC and the Federal Reserve Bank of Richmond, requiring capital improvements or facing regulatory intervention. As part of the acquisition agreement, the U.S. Treasury recouped $131 million.
On September 28, 2010, shareholders gave approval for the merger with TD Bank Financial Group. Effective October 1, 2010, Carolina First and Mercantile Bank operated as trade names under TD Bank, N.A., with plans to fully rebrand both entities as TD Bank by mid-2011 following system integration.
History
- 1986 – Established as Carolina First Bank.
- 1994–2002 – Grew through multiple acquisitions including Citadel Federal Savings Bank (Charleston, SC), Carolina First Savings Bank (Georgetown, SC), Aiken County National Bank, Midlands National Bank, Lowcountry Savings Bank (Mount Pleasant, SC), First Federal Savings and Loan (Anderson, SC), First National Bank of Pickens County (Easley, SC), Colonial Bank of South Carolina (Camden, SC), The Anchor Bank (Myrtle Beach, SC), Carolina First Bank (Travelers Rest, SC), Rock Hill Bank & Trust, MountainBank (Hendersonville, NC), and Gulf West Banks, Inc. for $115 million.
- 2008 – Added five branches acquired from BankAtlantic in Orlando, Florida.
- 2010 – The South Financial Group was purchased by TD Bank Financial Group for roughly $191 million, marking a key milestone in business expansion.
- 2011 – TD Bank Financial Group finalized system integration and rebranded all Carolina First and Mercantile Bank branches as TD Bank on June 13.
This acquisition strengthened TD Bank's presence and market share in the Southeastern United States, consistent with its strategic focus on regional expansion through selective acquisitions.
Subsidiaries
The South Financial Group managed three fully owned subsidiaries: Mercantile Bank of Florida, Carolina First operating in North Carolina and South Carolina, and Bank CaroLine, which functioned as an online bank. These entities were all subsidiaries of Carolina First, which controlled assets totaling around $12 billion.
See also
External links
- Toronto-Dominion Bank
- Companies based in Greenville, South Carolina
- Banks based in South Carolina
- Economy of the Southeastern United States
- American companies established in 1986
- Banks established in 1986
- 1986 establishments in South Carolina
- Defunct banks of the United States
- Companies of the United States by year of establishment