GSA Daily Staff Report
Published Sept. 14, 2009

Scott Frierson has resigned as president of The South Financial Group’s banking markets in North Carolina and South Carolina, operating as Carolina First bank.

Frierson has been with the company since 1988. He has been president of Carolina First since June 2008. His resignation is effective Tuesday, according to a regulatory filing with the Securities and Exchange Commission on Friday.

In a statement issued Monday afternoon, South Financial Group President and CEO Lynn Harton said Frierson stepped down for personal reasons and that the company is in no rush to replace him.

“Scott is a talented individual and in the right position would have continued to add tremendous value to the company, and he will be missed.  Scott decided for personal reasons that he’s ready to move on to a new phase in his life.  I respect his decision, and wish him well," Harton said. "In terms of every day execution at the bank, we have a very strong group of market presidents.  They are locally based and can execute -- and have been executing -- on our plans. Therefore, there’s no urgency in filling this position prematurely, although it certainly is an important position.  We are committed to finding the right person, a person with a strong commercial banking background, who understands our markets and has strong connections with them, and who believes in community involvement and engagement.” 

The company announced Frierson’s departure after a special meeting of shareholders on Friday. At the meeting, shareholders gave approval for the company to increase its authorized common shares to 325 million as South Financial had exhausted nearly all of its previous 200 million shares.

The move gives South Financial an additional 125 million shares and will allow the company to meet the $315 million capital plan it announced in June. That plan included a $75 million stock offering conducted in June and the exchange of preferred stock to common, among other measures.

South Financial has reported six consecutive quarterly losses, including $111.5 million in the second quarter this year.