Forward-Looking Statements
and Non-GAAP Financial Information

The forward-looking statements, as defined in the applicable federal securities laws, being made today are subject to risks
and uncertainties. TSFG’s actual results may differ materially from those set forth in such forward-looking statements.
These statements include, but are not limited to, factors that may affect TSFG’s return goals, loan growth, loan sales,
customer funding growth, expense control, income tax rate, expected financial results for acquisitions, noninterest income,
adequacy of capital and future capital levels, factors that will affect credit quality and the net interest margin, effectiveness
of hedging strategies, risks and effects of changes in interest rates, effects of general economic and financial market
conditions, and market performance. Reference is made to TSFG’s reports filed with the Securities and Exchange
Commission for a discussion of factors that may cause such differences to occur. TSFG undertakes no obligation to release
revisions to these forward-looking statements or reflect events or circumstances after today’s presentation.

This presentation contains certain non-GAAP measures that exclude the impact of certain nonoperating items. TSFG
management uses these non-GAAP, or operating measures, in its analysis of TSFG’s performance. TSFG believes
presentations of financial measures excluding the impact of certain items provide useful supplemental information and
better reflect its core operating activities. Management uses operating measures, in particular, to analyze on a consistent
basis and over a longer period of time, the performance of which it considers to be its core operations.

Operating measures adjust GAAP information to exclude the effects of nonoperating items, such as gains or losses on
certain asset sales, early extinguishment of debt, employment contract buyouts, impairment charges, and other
nonoperating expenses. The limitations associated with utilizing operating measures are the risk that persons might
disagree as to the appropriateness of items comprising these measures and different companies might calculate these
measures differently. Management compensates for these limitations by providing detailed reconciliations between GAAP
and operating measures. These disclosures should not be considered an alternative to GAAP results. A reconciliation of
GAAP results and non-GAAP measures is provided in the Quarterly Financial Data Supplement on our web site,
www.thesouthgroup.com, in the Investor Relations section under Quarterly Earnings.

Total assets $13.6

Loans held for investment $10.2

Customer funding* $8.0

Tangible shareholders’ equity $1.4

Tangible equity to tangible

assets

Branch offices:

NC 27

SC 82

FL 71

TSFG AT A GLANCE

$ in billions, as of 12/31/08

Company Overview

* Customer funding includes total deposits less brokered deposits plus customer sweeps.

** Mercantile Bank is a division of Carolina First Bank.

10.29%

PROJECTED HOUSEHOLD GROWTH (2008-2013)

Growth estimates deposit weighted by county as of 6/30/08

SOURCE: SNL Financial

Footprint: Long-term Growth Potential

6.3

Trustmark

6.4

Regions

6.5

Operating Peer Median

6.5

U.S. Median

7.0

Whitney

6.7

BOK Financial

10.5

Colonial BancGroup

10.5

SunTrust Banks

11.1

Zions Bancorporation

11.8

Cullen/Frost

8.3

BB&T

10.2

The South Financial Group

14.2

United Community Banks

5.5

8.8

Household Growth
(%)

Synovus

Company Name

First Horizon

New Leadership - Initial Actions

Organizational leadership changes

New Florida leadership

Executive Mgmt structure modified to clarify responsibilities/ownership

Director of Commercial Banking Strategy created to drive support and
strategy for largest business line

All line bankers now reporting to the State Bank Presidents instead of
operating in “silo” lines of business

Intense focus on communication to clarify ONE Bank strategy

Clarify target customers and methods of delivering value

Changed incentive plans to support relationship bank strategy

Created internal segmentation of “core/non-core” product segments to
measure success of each piece of the business

Quick moves to begin streamlining cost structure

December 2008 staff reductions

No 2008 bonus or 2009 merit increases for Executive Mgmt Team

Corporate campus evaluation

Initiated Phase 1 of Project NOW

8 workstreams, each with a full-time employee “owner” supported by
outside project management experts

Anticipated annual pre-tax operating benefits of $18-$20 million

Citizens/Southern Bank

1988

President, North and South Carolina

Scott M. Frierson

Colonial/Chase Manhattan
Mortgage/HomeSide Lending

2006

EVP, Chief Operations and
Technology Officer

Tanya A. Butts

AmSouth/Wells Fargo

2005

EVP, Director Commercial Strategy

Christopher S. Gompper

BB&T/Regions

2007

EVP, Chief Credit Officer

Robert A. Edwards

PwC/Union Planters/National
Commerce

2007

Sr. EVP, Chief Financial Officer

James R. Gordon

National Commerce/Trustmark

2006

Sr. EVP, Director Retail Strategy

Christopher T. Holmes

Wyche, Burgess, Freeman &
Parham

2002

EVP, Chief Legal and Risk Officer

William P. Crawford, Jr.

Barnett Bank/NationsBank

2002

EVP, Chief Human Resources Officer

Mary A. Jeffrey

Regions/Terrabank/Southeast
Bank

2007

President, Florida

J. Ernesto “Ernie” Diaz

BB&T/Union Planters/Regions

2007

President and CEO

H. Lynn Harton

First Horizon

2005

EVP, General Auditor

Keith D. Williamson

Prior Experience

Year

Joined

TSFG

Age

Position

Name

Executive Management Team

NOTE: Shading indicates new role or added responsibilities effective in 4Q08.

Control operating noninterest expenses, excluding
environmental costs

Launched Phase 1 of efficiency project with focus on
both expense management and revenue
opportunities

Expense Control

Increase through growth in deposits and wealth
management revenues

Noninterest Income

Continue to manage tangible equity ratio

Maintain strong regulatory capital ratios

Capital Management

Aggressively identify and resolve stressed portfolios

Improve longer-term performance relative to peers

Credit Quality

Focus on liquidity in near-term with longer-term
view of improving NIM

Lower funding costs longer-term by improving
volume, mix, and cost of deposits

Funding

Focus on relationship-based lending to small and
family-owned businesses in market

Deemphasize noncore portfolios: indirect, lot loans,
residential construction, shared national credits

Loan Growth

OBJECTIVES

EXECUTION POINTS

Strategic Objectives

Diversified Loan Portfolio

Loan Mix

As of December 31, 2008

($ in millions)

Total Loans Held for
Investment $10,192

C&I

Commercial

Development

Mortgage*

Diversified portfolio

By product and customer

By geography

In-footprint focus

Customers we know; markets
we understand

No broker mortgage/HE loans

Minimal subprime exposure

Suspended Florida indirect

Disciplined approval and portfolio
management processes

Local credit officers

Executive credit committee
approval for largest
relationships

Special assets department for
high risk loans

Centralized consumer
approval and collections

Specialized credit support for our
largest businesses

CRE; Corporate Banking/SNC

Owner-
Occupied

Indirect -

Sales Finance

Income

Property

Residential

Construction

Home Equity

* Mortgage includes Consumer Lot Loans and Other (Direct Retail and Unsecured Lines).

Credit Quality Results

Residential construction and housing-related loans continue to be primary
stress across entire footprint

Reduced residential construction portfolio by $365 million, or 22%, since
3/31/08

Recession showing signs of impacting C&I and consumer loan categories

NCOs $76.1 million, or 2.93% of average loans annualized (YTD 2.16%)

Provision of $122.9 million, a $38.3 million increase from 3Q08

Exceeds NCOs by $46.9 million; reserve build of $121.2 million in 2008

Built reserve to 2.45% (from 1.97% at 9/30/08 and 1.26% at
12/31/07)

NPAs increased to 4.10% of loans and foreclosed property

NPLs held for investment increased to $355.6 million, up from $240.1
million at 9/30/08

Commercial NALs carried at 67% after deducting specific reserves

Inflows reflect migration of existing watch loans (NAL inflows: $195
million for 4Q08, $104 million for 3Q08, $74 million for 2Q08, and $175
million for 1Q08)

Gaining control of assets through foreclosure process

Limited loan sale activity in 4Q08 due to less liquidity for buyers and
continuing uncertainty regarding market outlook

Loan and Credit Quality Composition

1.16%

$75.4

2.30%

$238

$10,300

9/30/08

0.84%

$47.0

2.09%

$219

$10,476

6/30/08

2.22%

$223.4

$76.1

3.42%

$349

100%

$10,192

Total Loans HFI

9.46%

24.1

12.1

10.17%

580

Mortgage**

2.21%

14.1

5.0

0.11%

636

Indirect – sales
finance

1.42%

6.1

2.4

1.01%

813

Home equity

2.16%

0.26%

11.24%

4.85%

2.67%

1.17%

1.32%

NAL % of
O/S
Balance

1.0

102.6

15.1

15.2

3.5

$42.1

YTD Net
Charge-
offs

$25.0

0.0

24.5

2.6

10.3

1.8

$17.6

QTD Net
Charge-
offs

1.14%

3.04%

4.93%

1.45%

1.32%

1.19%

1.01%

30-day
past due
%

22%

2,203

Completed
income property

608

Commercial
development

$10,276

1,263

1,271

$ 2,723

Outstanding
Balance

12%

27%

% of
O/S
Balance

Other**

Owner-occupied
CRE

$36

C&I

142

Residential
construction

$222

Nonaccrual
Loans
HFI*

3/31/08

As of December 31, 2008, $ in millions

HFI = Held for Investment; 30-day past due % of outstanding balance excludes nonaccrual loans. See page 9 of the Quarterly Financial Data Supplement
for Commercial Real Estate loans by product type and by geography. Commercial Development includes Commercial A&D and Commercial Construction.
Residential Construction includes Residential A&D, Residential Construction, Residential Condo, and Undeveloped Land.

* Nonaccrual loans exclude nonaccrual loans held for sale of $16.5 million.

** Mortgage includes Consumer Lot Loans. Other includes Direct Retail and Unsecured Lines.

Credit Quality Trends - Commercial

1.76%

$44.6

9.03%

$127

$1,410

3Q08

1.33%

$22.3

8.47%

$131

$1,550

2Q08

0.27%

$2.5

1.87%

$11

$601

3Q08

0.86%

$8.7

0.57%

$575

2Q08

1.15%

$1.9

1.05%

$22

$2,084

3Q08

0.21%

$2.6

0.84%

$17

$2,037

2Q08

0.79%

$0.8

0.58%

$1,207

3Q08

0.43%

$0.4

0.43%

$1,184

2Q08

0.44%

$12.7

0.97%

$28

$2,824

3Q08

0.50%

$4.4

0.98%

$28

$2,891

2Q08

4Q08

11.24%

4.85%

2.67%

1.17%

1.32%

NAL % of
O/S Balance

$24.5

$2.6

$10.3

$1.8

$17.6

QTD Net
Charge-offs

4.93%

1.45%

1.32%

1.19%

1.01%

30-day past
due %

$59

$2,203

Completed income

$29

$608

Commercial
development

$1,263

$1,271

$ 2,723

Outstanding
Balance

$15

Owner-occupied CRE

$36

C&I

$142

Residential
construction

Nonaccrual
Loans HFI

$ in millions

HFI = Held for Investment; 30-day past due % of outstanding balance excludes nonaccrual loans.

Credit Quality Trends - Consumer

3.04%

$0.0

0.26%

$ --

$95

4Q08

Other**

1.84%

$0.0

0.94%

$100

3Q08

4.64%

$6.9

5.92%

$36

$610

3Q08

3.21%

$3.8

4.51%

$28

$629

2Q08

0.71%

$2.6

0.68%

$784

3Q08

0.74%

$0.8

0.60%

$781

2Q08

1.69%

$3.4

0.10%

$680

3Q08

1.46%

$3.3

0.07%

$729

2Q08

4Q08

9.46%

$12.1

10.17%

$59

$580

Mortgage**

2.21%

$5.0

0.11%

$636

Indirect–sales finance

1.42%

$2.4

1.01%

$813

Home equity

0.20%

NAL % of
O/S Balance

$1.0

QTD Net
Charge-offs

1.95%

30-day past
due %

$100

Outstanding
Balance

$ --

Nonaccrual
Loans HFI

$ in millions

HFI = Held for Investment; 30-day past due % of outstanding balance excludes nonaccrual loans.

** Mortgage includes Consumer Lot Loans. Other includes Direct Retail and Unsecured Lines.

Residential Construction by Geography

1.76%

$44.6

9.03%

$127

$1,410

9/30/08

1.33%

$22.3

8.47%

$131

$1,550

6/30/08

5.35%

$5.5

$2.0

4.85%

$22

35%

$439

Total SC, 12/31/08

0.45%

$2.5

2.14%

$10

34%

$485

9/30/08

3.63%

$2.7

6.93%

$21

22%

$306

9/30/08

6.13%

$88.8

$18.6

16.94%

$90

42%

$534

Total FL, 12/31/08

1.87%

$39.4

15.47%

$96

44%

$619

9/30/08

4.93%

$102.6

$24.5

11.24%

$142

100%

$1,263

Overall Total,
12/31/08

1.58%

$11.2

8.23%

$134

$1,628

3/31/08

2.10%

$8.3

$3.9

10.45%

$30

23%

$290

Total NC,12/31/08

17.61%

16.16%

11.21%

20.20%

NAL %
of O/S
Balance

28.0

5.5

35.6

$19.7

YTD Net
Charge-
offs

6.2

2.1

7.9

$2.4

QTD Net
Charge-
offs

0.00%

1.46%

1.29%

11.88%

30-day

past due
%

11%

145

FL residential A&D

FL residential
construction

$252

Outstanding
Balance

20%

% of
Resid.
Constr.

FL residential
condo

$51

FL undeveloped
land

Residential Construction:

Nonaccrual
Loans HFI

As of December 31, 2008, $ in millions

30-day past due % of outstanding balance excludes nonaccrual loans.

See page 9 of the Quarterly Financial Data Supplement for detail for NC and SC.

Commercial Nonaccruals – Net Balance

$281

142

$36

12/31/08
Nonaccrual
Loan
Balance

$237

122

$28

Net
Balance
Less
Specific
Reserve

67%

$44

$71

$352

Total
Commercial

69%

57%

76%

65%

57%

Net
Balance
as % of
Unpaid
Principal

Completed
income property

Commercial
development

177

$49

Unpaid
Principal
⁽¹⁾

$13

Cumulative
Net Charge-
offs ⁽²⁾

Residential
construction

Owner-occupied
CRE

C&I

12/31/08
Specific
Reserve⁽³⁾

$ in millions

(1) Outstanding balance at default

(2) Typically charge-down at nonaccrual to approximately 80% of most recent appraised value

(3) Additional specific reserves are established as necessary based on estimated disposal costs, estimated holding period and current market
and economic conditions; recognized as charge-offs when realized. However, these amounts do not include the qualitative components within
the overall allowance for credit loans.

Consistent

with

9/30/08

Indirect – Sales Finance

As of December 31, 2008, $ in millions

In 5/08, ceased production in
Florida

Effective 1/09, offered only
through full relationship
dealerships in NC and SC

Toyota

29%

Summary Statistics

66%

70%

61%

New %

34%

30%

39%

Used %

$699

$464

$235

12/07 Balance

59%

41%

695

722

$636

Total

66%

48%

Foreign %

34%

52%

Domestic %

686

710

Jan 09 FICO

716

729

Orig FICO

$381

$255

12/08 Balance

NC/SC

30-day Past Dues, By Auto Make (Top 10)

Total, $636 million or 6% of loans

By Auto Make

2.35%

Chrysler

2.55%

Hyundai

2.16%

$530

Top 10

0.98%

Jeep

2.20%

Nissan

2.78%

Dodge

2.10%

Ford

1.77%

Kia

2.94%

Chevrolet

2.09%

Honda

1.99%

$183

Toyota

30-day %

O/S$

Honda

10%

Ford

Other

29%

Chevrolet

Dodge

Kia

Home Equity Lines/Loans

SC, $354

43%

FL, $283

35%

NC, $135

17%

As of December 31, 2008, $ in millions

Originated by TSFG sales force
in-market; no broker loans

Strong FICO scores

Conservative LTV position and
usage amounts

Not pushed as a growth product

Home Equity Portfolio = HE Line and HE Loan portfolios

Geography based on customer address

Other, $41

Summary Statistics

70%

WAvg Util %

69%

56%

44%

718

727

$812

Total

66%

70%

Orig WAvg
LTV %

19%

67%

2^ndLien %

81%

33%

1^stLien %

701

724

Jan 09 FICO

711

730

Orig FICO

$185

$627

Balance $

Loans

Lines

2008, $112

14%

2007, $155

19%

2006, $131

16%

2004 or before

$294, 36%

2005, $121

15%

By Vintage

Total, $813 million or 8% of loans

By Geography

Mortgage Banking Portfolio

Remains a small portion of
entire portfolio

$580 million

6% of total loans HFI

NAL increase of $23 million
from Q3 to Q4

Increases from higher risk
portions of the portfolio
(Lot Loans and
Construction Perm)

Reduced balances in Lot
Loans and Construction
Perm products by $136
million in 2008

Consumer restructured
loans of $3.6 million
(included in NPLs) from
working with borrowers to
do loan modifications

As of December 31, 2008, $ in millions

$12.6

15.98%

0.00%

1.70%

$78.8

$15.2

6.12%

2.34%

3.84%

$249.1

$8.3

2.94%

2.21%

1.89%

$282.3

3Q08

$4.7

4.11%

0.00%

2.91%

$113.3

$8.4

2.89%

1.03%

5.34%

$291.4

$3.9

1.56%

1.87%

6.22%

$251.8

1Q08

Construction Perm:

$95.7

$64.0

Balance

5.86%

5.22%

30-89 DPD

0.00%

90+ DPD

9.85%

20.02%

NAL %

$9.4

$12.8

NAL $

Lot Loans:

$266.2

$225.5

Balance

2.09%

6.34%

30-89 DPD

2.00%

1.84%

90+ DPD

4.07%

13.20%

NAL %

$10.8

$29.9

NAL $

SIVA* Alt-A:

$8.1

$16.3

NAL $

3.04%

5.59%

NAL %

0.69%

3.41%

90+ DPD

0.90%

7.90%

30-89 DPD

$267.9

$290.7

Balance

2Q08

4Q08

Mortgage Portfolio = Mortgage, Consumer Lot Loans, and Construction Perm products (excludes HE Loan)

* SIVA = Stated Income Verified Assets

Net Interest Margin

Net Interest Margin (FTE)

Decrease 4Q08 vs. 3Q08

Increase in nonaccrual
interest reversals:
-4 bp

Maturing prime-based
swaps: -4 bp

Balance sheet mix:
-3 bp

1Q09 Headwind

Limitations for passing-
through the recent
sharp Federal funds
rate cuts given the low
absolute level of
interest rates on non-
maturity deposits and
impact from credit
issues

-5

-10

-3

Peer

-11

-16

+17

-2

-3

TSFG

Basis Point Change:

Customer Funding

1.3%

1,840

1,864

Time deposits < $100,000

(1.6)%

1,806

1,834

Money market

0.8%

7,435

7,497

Customer deposits

(10.7)%

(59)

552

493

Customer sweep accounts

Customer deposits:

-- %

(2.4)%

26.7%

(1.1)%

1.8%

LQ %
Change

(12)

1,091

1,079

Interest-bearing

150

190

Savings accounts

(36)

1,525

1,489

Time deposits $100,000 or
more

$7,987

$7,990

Total customer funding

$18

$ Change

$1,023

9/30/08

Balance

$1,041

12/31/08

Balance

Noninterest-bearing

$ in millions

Customer funding reflects total deposits excluding brokered deposits plus customer
sweeps. Customer deposits reflect seasonal increase in public funds.

Wholesale Borrowings

By Maturity

$4,385

$3,750

$1,396

$2,354

Total wholesale
borrowings

1,909

719

1,190

Brokered CDs

Commercial paper

864

233

203

FHLB advances

274

200

$ --

> 1
year

274

200

1,054

$67

Total

851

2,670

$ --

Unused

Secured
capacity

Repurchase
agreements

1,054

$ 67

1 year
or less

Other*

Fed Reserve and
T,T&L

Fed funds
purchased

As of December 31, 2008, $ in millions

* No bank ($68 million) exposure to capital markets rollover risk for debt obligations
until 2012

$4.7 billion

at 9/30/08

Strong parent company
liquidity position

Parent company cash of
$210 million at
12/31/08

No debt maturities until
2033

Expected annual
dividends of $43 million
(preferred and common)

Cash sufficient to satisfy
all fixed obligations over
the next 4 years

Parent Company Liquidity

Capital Position

Capital Purchase Program (U.S. Treasury Investment)

Received $347 million on December 5, 2008

Issued warrant to purchase 10.1 million shares at $5.15 per share
($19.6 million allocated value)

Effective dividend yield of 6.3%

Utilized $260 million for capital injection into Carolina First Bank

Kept $87 at parent company for liquidity

Temporary use of proceeds to enhance liquidity (increase cash reserves
and pay-down wholesale borrowings) pending opportunity to lend

Tangible common equity to tangible assets of 6.05%

Down 56 bp from 12/31/07 while absorbing $344.6 million of credit
losses in 2008

Does not include Mandatorily Convertible Preferred Stock (MCPS) of
$238.7 million, or 179 basis points reflecting conversion

Believe MCPS should be viewed as key component of common equity
since automatically converts on May 1, 2011; conversion is assumed
when looking at common tangible book value per share

Approximately $60 million has already converted to date, including
$48.7 million subsequent to year-end (which includes conversion
involving issuance of 2.5 million common shares as inducement to
convert)

Capital Position

7.84%

7.94%

Tangible common equity to tangible
assets

$9.40

$9.42

Common tangible book value per
share

Assuming conversion of Mandatorily Convertible Preferred:***

8.54%

11.55%

9.82%

9.70%

12.68%

11.18%

6.06%

9/30/08
Actual

$604

$304

$573

$839

$512

$808

Capital in Excess of
Well Capitalized
Minimum

After-tax $

10%

Well
Capitalized
Minimum

9.49%

12.59%

10.88%

11.22%

14.35%

12.86%

6.05%

12/31/08
Actual*

Total risk-based

Leverage

CAROLINA FIRST BANK

Tier 1 risk-based

Total risk-based

Leverage

Tier 1 risk-based

Tangible common equity to
tangible assets

THE SOUTH FINANCIAL GROUP

$ in millions

* Estimated

** For illustrative purposes only

*** Assumes full conversion of $239 million of Mandatorily Convertible Preferred at $6.50 per common share fixed conversion ratio (automatically
converts into common stock on May 1, 2011) and excludes CPP Preferred

Noninterest Expenses

3.1

0.1

1.5

4.5

4.6

Loan and foreclosed asset*

1.9

0.4

1.5

3.0

3.4

FDIC insurance*

1.6

0.3

(3.6)

(2.3)

(2.0)

FAS 91 Salary Deferral (included in Salaries)*

237.6

Goodwill impairment

1.0

0.2

3.8

4.6

4.8

Professional fees

2.0

0.6

15.4

16.8

17.4

Occupancy and FF&E

$ Change

$341.8

2.8

9.6

91.8

15.7

$45.9

4Q08

1.5

2.9

1.3

(0.1)

Other

$261.1

$247.6

$80.7

$94.2

Total noninterest expenses

9.6

12.4

0.9

$3.5

4Q08 vs.
4Q07

1.8

14.8

13.9

Other

2.1

79.4

89.7

Operating noninterest expenses

5.0

4.6

Employment contracts

$(1.0)

4Q08 vs.
3Q08

$42.4

4Q07

$46.9

3Q08

Salaries and employee benefits

$ in millions

Note: Other includes (gain) loss on early extinguishment of debt ($1.7 million for 4Q08, $(125,000) for 3Q08, and $499,000 for 4Q07), loss on
derivative collateral ($1.1 million for 4Q08), and Visa-related litigation ($881,000 for 4Q07).

*Approximately half of the $12.4 million year-over-year increase relates to the current
environment – higher loan and foreclosed asset and FDIC insurance expense and lower
loan origination salary deferrals. For 2009, expect higher FDIC insurance, loan and
foreclosed asset expense, and non-operating charges related to the corporate campus
under construction (evaluation of alternatives underway).

Noninterest Income

(0.2)

0.2

1.3

0.9

1.1

Mortgage banking income

$ Change

$1.0

2.3

(1.3)

0.3

(0.1)

1.0

(0.2)

(0.9)

$(1.6)

4Q08 vs.
3Q08

(0.1)

0.8

0.9

0.7

Merchant processing income, net

$29.7

1.6

28.1

3.2

(0.3)

3.9

6.3

$13.2

4Q08

Non-operating items:

(0.3)

(0.2)

Gain/(loss) on certain derivative
activities

0.8

3.1

2.9

Bank-owned life insurance**

2.9

(1.3)

(0.7)

Gain/(loss) on securities

$0.7

$29.0

$28.7

Total noninterest income

(1.2)

7.5

7.2

Wealth management income*

0.4

2.8

2.9

Other

(2.2)

30.3

29.4

Operating noninterest income

$(1.6)

4Q08 vs.
4Q07

$14.8

4Q07

$14.8

3Q08

Customer fee income*

$ in millions

*Together, approximately 70% of operating noninterest income. Reflect impacts from
economic downturn, such as fewer customer transactions and lower asset valuations.

**4Q08 includes $1.3 million for death proceeds partially offset by $645,000 in related
compensation expense (included in operating noninterest expenses).

Expectations for 2009

Operating environment and results will remain challenging for all of 2009

Credit losses for first half of 2009 similar to last half of 2008; provisioning
depends on continuing economic developments

Continued headwinds from loan collection costs and FDIC insurance

Potential one-time charges arising from ultimate corporate campus decision
and continuing evaluation of small level of other investments for
impairment

Continue to evaluate the realizability of the net deferred tax asset
throughout 2009 for both book and regulatory purposes

Near-term pressure on margin in first half of year, followed by expansion of
margin as pricing initiatives on both the loan and deposit side begin to show
results

Positive impact from Project NOW and other expense initiatives

Potential for FDIC deposit transactions if market overlap promotes
efficiency and product set improves customer funding measures

Focus on cross sell; customer satisfaction; other measures that support our
strategic positioning