South Financial Group
Encyclopedia
The South Financial Group, originally known as Carolina First Corporation, was a bank holding company headquartered in Greenville
, South Carolina
. The South Financial Group began posting heavy losses in early 2008 and lost more than $1.7 billion before its sale in 2010 to TD Bank Financial Group of Toronto, Ontario, Canada. It lost more than $735 million alone during 2009, and another $400 million through the first six months of 2010.
In May 2010, pending shareholder and regulatory approvals, it was announced that TD Bank, N.A., which is co-headquartered in Cherry Hill, New Jersey
, and Portland, Maine
, planned to acquire the troubled company. TD Bank is a subsidiary of Toronto-Dominion Bank
based in Toronto
, Ontario
, Canada
. A lawsuit was filed by a group of company shareholders against The South Financial Group, its Board of Directors and TD Bank in conjunction with the proposed sale. The suit was ultimately settled clearing the way for the sale.
Between 2007 and 2010, South Financial's stock fell from more than $17 a share to less than $1 during this tumultuous period. Over its last five-plus years, South Financial saw its stock lose 99 percent of its value.
In December 2008, South Financial received $347 million from the federal government as part of Troubled Asset Relief Program. At the end of April 2010, Carolina First entered into a consent order with the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve Bank of Richmond that sets time frames during which the bank must improve its capital position or risk being taken over by federal regulators. As part of the deal for South Financial the U.S. Treasury received $131 million.
On Sept, 28, 2010, The South Financial Group shareholders approved the merger of the company with TD Bank Financial Group. As of October 1, 2010 Carolina First and Mercantile Bank now operate as trade names of TD Bank, N.A. Both Mercantile Bank and Carolina First will be renamed TD Bank in mid-2011 after planned system integrations. Until such time both banks names will remain unchanged and be advertised in all markets as being "trade names of TD Bank, N.A."
The South Financial Group was the parent company of Carolina First, with branch locations in South and North Carolina and Carolina First operates branches as Mercantile Bank in Florida. Prior to recent layoffs, the company had nearly 2,500 employees as of 2008.
, Carolina First in North Carolina
and South Carolina
, and Bank CaroLine, an Internet bank
. All three brands functioned as
subsidiaries of Carolina First, which had approximately $12 billion in assets.
Greenville, South Carolina
-Law and government:The city of Greenville adopted the Council-Manager form of municipal government in 1976.-History:The area was part of the Cherokee Nation's protected grounds after the Treaty of 1763, which ended the French and Indian War. No White man was allowed to enter, though some families...
, South Carolina
South Carolina
South Carolina is a state in the Deep South of the United States that borders Georgia to the south, North Carolina to the north, and the Atlantic Ocean to the east. Originally part of the Province of Carolina, the Province of South Carolina was one of the 13 colonies that declared independence...
. The South Financial Group began posting heavy losses in early 2008 and lost more than $1.7 billion before its sale in 2010 to TD Bank Financial Group of Toronto, Ontario, Canada. It lost more than $735 million alone during 2009, and another $400 million through the first six months of 2010.
In May 2010, pending shareholder and regulatory approvals, it was announced that TD Bank, N.A., which is co-headquartered in Cherry Hill, New Jersey
Cherry Hill, New Jersey
Cherry Hill is a township in Camden County, New Jersey, in the United States. As of the 2010 United States Census, the township had a population of 71,045, representing an increase of 1,080 from the 69,965 residents enumerated during the 2000 Census...
, and Portland, Maine
Portland, Maine
Portland is the largest city in Maine and is the county seat of Cumberland County. The 2010 city population was 66,194, growing 3 percent since the census of 2000...
, planned to acquire the troubled company. TD Bank is a subsidiary of Toronto-Dominion Bank
Toronto-Dominion Bank
The Toronto-Dominion Bank , is the second-largest bank in Canada by market capitalization and based on assets. It is also the sixth largest bank in North America. Commonly known as TD and operating as TD Bank Group, the bank was created in 1955 through the merger of the Bank of Toronto and the...
based in Toronto
Toronto
Toronto is the provincial capital of Ontario and the largest city in Canada. It is located in Southern Ontario on the northwestern shore of Lake Ontario. A relatively modern city, Toronto's history dates back to the late-18th century, when its land was first purchased by the British monarchy from...
, Ontario
Ontario
Ontario is a province of Canada, located in east-central Canada. It is Canada's most populous province and second largest in total area. It is home to the nation's most populous city, Toronto, and the nation's capital, Ottawa....
, Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
. A lawsuit was filed by a group of company shareholders against The South Financial Group, its Board of Directors and TD Bank in conjunction with the proposed sale. The suit was ultimately settled clearing the way for the sale.
Between 2007 and 2010, South Financial's stock fell from more than $17 a share to less than $1 during this tumultuous period. Over its last five-plus years, South Financial saw its stock lose 99 percent of its value.
In December 2008, South Financial received $347 million from the federal government as part of Troubled Asset Relief Program. At the end of April 2010, Carolina First entered into a consent order with the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve Bank of Richmond that sets time frames during which the bank must improve its capital position or risk being taken over by federal regulators. As part of the deal for South Financial the U.S. Treasury received $131 million.
On Sept, 28, 2010, The South Financial Group shareholders approved the merger of the company with TD Bank Financial Group. As of October 1, 2010 Carolina First and Mercantile Bank now operate as trade names of TD Bank, N.A. Both Mercantile Bank and Carolina First will be renamed TD Bank in mid-2011 after planned system integrations. Until such time both banks names will remain unchanged and be advertised in all markets as being "trade names of TD Bank, N.A."
The South Financial Group was the parent company of Carolina First, with branch locations in South and North Carolina and Carolina First operates branches as Mercantile Bank in Florida. Prior to recent layoffs, the company had nearly 2,500 employees as of 2008.
History
- 1986 – began as the Carolina First Bank
- 1994 – acquired Citadel Federal Savings Bank of Charleston, South CarolinaCharleston, South CarolinaCharleston is the second largest city in the U.S. state of South Carolina. It was made the county seat of Charleston County in 1901 when Charleston County was founded. The city's original name was Charles Towne in 1670, and it moved to its present location from a location on the west bank of the...
- 1995 – acquired Carolina First Savings Bank F.S.B.Federal Savings BankA federal savings bank is a savings and loan association federally chartered in the United States. They are chartered and regulated by the Treasury Department's Office of Thrift Supervision....
of Georgetown, South CarolinaGeorgetown, South CarolinaGeorgetown is the third oldest city in the U.S. state of South Carolina and the county seat of Georgetown County, in the Low Country. Located on Winyah Bay at the confluence of the Great Pee Dee River, Waccamaw River, and Sampit River, Georgetown is the second largest seaport in South Carolina,...
, Aiken County National Bank of Aiken, South CarolinaAiken, South CarolinaAiken is a city in and the county seat of Aiken County, South Carolina, United States. With Augusta, Georgia, it is one of the two largest cities of the Central Savannah River Area. It is part of the Augusta-Richmond County Metropolitan Statistical Area. Aiken is home to the University of South...
, and Midlands National Bank of Prosperity, South CarolinaProsperity, South CarolinaProsperity is a town in Newberry County, South Carolina, United States. The population was 1,047 at the 2000 census.-Geography:Prosperity is located at .... - 1999 – acquired Citizens Bank, NA of Shawano, WisconsinShawano, WisconsinShawano is a city in Shawano County, Wisconsin, United States. The population was 9,305 at the 2010 census. It is the county seat of Shawano County...
- 1997 – acquired Lowcountry Savings Bank of Mount Pleasant, South CarolinaMount Pleasant, South CarolinaMount Pleasant is a large affluent suburban town in Charleston County, South Carolina, United States. It is a member of the Charleston–North Charleston–Summerville Metropolitan Statistical Area, for statistical purpose only, as designated by the U.S. Office of Management and Budget....
and First Federal Savings and Loan of Anderson, South CarolinaAnderson, South CarolinaAnderson is a city in and the county seat of Anderson County, South Carolina, United States. The population was estimated at 26,242 in 2006, and the city was the center of an urbanized area of 70,530... - 1998 – acquired First National Bank of Pickens County of Easley, South CarolinaEasley, South CarolinaEasley is a city in Pickens County in the U.S. state of South Carolina. It is a principal city of the Greenville–Mauldin–Easley Metropolitan Statistical Area. Most of the city lies in Pickens County, with only a very small portion of the city in Anderson County...
and Colonial Bank of South Carolina of Camden, South CarolinaCamden, South CarolinaCamden is the fourth oldest city in the U.S. state of South Carolina and is also the county seat of Kershaw County, South Carolina, United States. The population was an estimated 7,103 in 2009... - 2000 – acquired The Anchor Bank of Myrtle Beach, South CarolinaMyrtle Beach, South CarolinaMyrtle Beach is a coastal city on the east coast of the United States in Horry County, South Carolina. It is situated on the center of a large and continuous stretch of beach known as the Grand Strand in northeastern South Carolina. It is considered to be a major tourist destination in the...
and Carolina First Bank of Travelers Rest, South CarolinaTravelers Rest, South CarolinaTravelers Rest is a city in Greenville County, South Carolina, United States. The population was 4,099 at the 2000 census. It is part of the Greenville–Mauldin–Easley Metropolitan Statistical Area. "TR", as the city is known around the area, is just north of Greenville... - 2002 – acquired Rock Hill Bank & Trust of Rock Hill, South CarolinaRock Hill, South CarolinaRock Hill is the largest city in York County, South Carolina and the fourth-largest city in the state. It is also the third-largest city of the Charlotte metropolitan area, behind Charlotte and Concord, North Carolina. The population was 71,459 as of . Rock Hill has undergone rapid growth between...
- 2003 – acquired MountainBank of Hendersonville, North CarolinaHendersonville, North CarolinaHendersonville is a city in Henderson County, North Carolina, USA, southeast of Asheville. In 1900, 1,917 persons lived in Hendersonville; in 1910, 2,818; and in 1940, 5,381 people lived here. As of the 2010 census, the city population was 12,223, up fivefold in one century. It is the county...
- 2008 – acquired 5 branches of BankAtlantic of Orlando, FloridaOrlando, FloridaOrlando is a city in the central region of the U.S. state of Florida. It is the county seat of Orange County, and the center of the Greater Orlando metropolitan area. According to the 2010 US Census, the city had a population of 238,300, making Orlando the 79th largest city in the United States...
- 2010 – The South Financial Group acquired by TD Bank Financial Group
- 2011 - TD Bank Financial Group plans to integrate all systems and change bank names of Carolina First & Mercantile Bank to TD Bank on June 13, 2011.
Subsidiaries
The South Financial Group operated three wholly owned subsidiaries: Mercantile Bank of FloridaFlorida
Florida is a state in the southeastern United States, located on the nation's Atlantic and Gulf coasts. It is bordered to the west by the Gulf of Mexico, to the north by Alabama and Georgia and to the east by the Atlantic Ocean. With a population of 18,801,310 as measured by the 2010 census, it...
, Carolina First in North Carolina
North Carolina
North Carolina is a state located in the southeastern United States. The state borders South Carolina and Georgia to the south, Tennessee to the west and Virginia to the north. North Carolina contains 100 counties. Its capital is Raleigh, and its largest city is Charlotte...
and South Carolina
South Carolina
South Carolina is a state in the Deep South of the United States that borders Georgia to the south, North Carolina to the north, and the Atlantic Ocean to the east. Originally part of the Province of Carolina, the Province of South Carolina was one of the 13 colonies that declared independence...
, and Bank CaroLine, an Internet bank
Online banking
Online banking allows customers to conduct financial transactions on a secure website operated by their retail or virtual bank, credit union or building society.-Features:...
. All three brands functioned as
subsidiaries of Carolina First, which had approximately $12 billion in assets.