Nov. 3, 2009 (Business Wire) -- Carolina First Bank, the banking subsidiary for The South Financial Group, Inc. (NASDAQ: TSFG), announced that it received a $60 million tax credit allocation as part of the 2009 round of the New Markets Tax Credit (NMTC) Program. The Bank’s subsidiary, Carolina First Community Development Corporation (CFCDC), was one of 99 recipients selected from across the nation to receive an aggregate total of $5 billion in new allocations and the only recipient headquartered in South Carolina. With this award, Carolina First has now received allocations for three years in a row, following its awards in 2008 and 2007 of $100 million each year.
Established by Congress in 2000, NMTC is a federal tax program designed to stimulate community economic development and job creation in markets facing economic challenges. Urban and rural low-income areas in Florida, North Carolina, and South Carolina are the principal service areas for Carolina First’s NMTC award.
“We view this new award as an endorsement of our continued leadership in supporting economic development in challenged areas throughout our markets,” said Charles D. Chamberlain, Managing Director of CFCDC. “With these funds, we can continue to deliver resources that would favorably impact the per capita income of our local communities during a time when the need to reach out is crucial. Continued success in this program moves forward our efforts to make a difference in the communities we serve.”
The NMTC program provides a tax credit to investors for making “qualified equity investments” in investment vehicles, known as Community Development Entities, in low-income communities. The investors receive a tax credit, totaling 39 percent of the qualified investment, over a seven-year period. Through CFCDC, Carolina First has closed on over 11 projects, which deployed $62.5 million in tax credit allocation and generated $138 million in total investments.
General Information
The South Financial Group is a bank holding company focused on serving small businesses, middle market companies, and retail customers in the Carolinas and Florida. At September 30, 2009, it had approximately $12.3 billion in total assets and 177 branch offices. TSFG operates Carolina First Bank, which conducts banking operations in North Carolina and South Carolina (as Carolina First Bank), in Florida (as Mercantile Bank), and on the Internet (as Bank CaroLine). At September 30, 2009, approximately 45% of TSFG’s total customer deposits were in South Carolina, 43% were in Florida, and 12% were in North Carolina. Investor information is available at www.thesouthgroup.com.
