102 South Main Street
Greenville, SC 29601
864.255.4919
Date: June 6, 2000
Release Time: Immediate
THE SOUTH FINANCIAL GROUP COMPLETES MERGER
WITH ANCHOR FINANCIAL
GREENVILLE, SC - The South Financial Group, Inc. (Nasdaq/NM: TSFG) announced the
completion of its merger with Anchor Financial Corporation, effective Tuesday,
June 6, 2000. The South Financial Group acquired all the outstanding common
shares of Anchor Financial Corporation in exchange for approximately 17,655,000
shares of The South Financial Group common stock, valued at approximately $223
million. Each share of Anchor Financial stock will be exchanged for 2.175 shares
of The South Financial Group common stock. This transaction is being accounted
for using the pooling-of-interests method of accounting.
Anchor Financial Corporation, the parent of The Anchor Bank, has total assets of
approximately $1.2 billion, loans of approximately $873 million, and deposits of
approximately $1.0 billion with 33 branch locations in South Carolina and North
Carolina. With the completion of the merger, The South Financial Group has total
assets of $4.9 billion, loans of approximately $3.4 billion, and deposits of
$3.6 billion with 108 branch locations in South Carolina, Florida and North
Carolina.
The South Financial Group expects to merge The Anchor Bank into Carolina First
Bank in July 2000. Anchor's Chairman, President, and Chief Executive Officer,
Stephen L. Chryst, will serve as Chairman and Chief Operating Officer of
Carolina First Bank, the banking subsidiary for the Carolinas. The South
Financial Group is on schedule to realize targeted annual cost savings of $14.8
million (pre-tax) or approximately 35% of Anchor Financial's expense base. With
the completion of the merger, The South Financial Group becomes the second
largest independent bank in the history of South Carolina. Carolina First Bank,
when combined with The Anchor Bank, will have the fourth largest deposit market
share in South Carolina. It also will have a top 3 market share in South
Carolina's fastest- growing counties and a top 5 market share in South
Carolina's four leading metropolitan areas.
The South Financial Group, headquartered in Greenville, South Carolina, is a
financial services company with $4.9 billion in total assets and 108 branch
offices in South Carolina, Florida, and North Carolina. It operates four
subsidiary banks:
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Carolina First Bank (SC), The Anchor Bank (SC and NC), Citrus Bank (FL), and
Carolina First Bank, F.S.B., which offers Bank CaroLine (an Internet bank).
Carolina First Bank is the largest South Carolina-based commercial bank. Other
subsidiaries include Carolina First Mortgage Company (the second largest
mortgage loan servicer in South Carolina), a full service brokerage company, an
automobile finance company and a small business investment company that invests
principally in bank technology companies. The South Financial Group's common
stock trades on the Nasdaq National Market under the symbol TSFG. The South
Financial Group's press releases are available by telefax at no charge by
calling PR Newswire's Company News On-Call at 800-758-5804, extension 144553.
Press releases along with additional information may also be found at The South
Financial Group's web site: http://www.thesouthgroup.com.
Certain matters set forth in this news release may contain forward-looking
statements that are provided to assist in the understanding of anticipated
future financial performance. However, such performance involves risks and
uncertainties (including uncertainties relating to the realization of cost
savings) that may cause actual results to differ materially from those in such
statements. For a discussion of certain factors that may cause such
forward-looking statements to differ materially from the Company's actual
results, see the Company's Quarterly Report on Form 10-Q for the quarter ended
March 31, 2000.
CONTACTS:
William S. Hummers III, Executive Vice President, (864) 255-7913
Mary M. Gentry, Treasurer, (864) 255-4919
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