EX-99.1 2 a4681503ex991.txt PRESS RELEASE AND SUPPLEMENTAL INFORMATION EXHIBIT 99.1 Colonial BancGroup Announces a 15% Increase in Net Income over the Second Quarter of 2003 MONTGOMERY, Ala.--(BUSINESS WIRE)--July 19, 2004-- Record Earnings Per Share of $0.33 and Lowest Nonperforming Assets Ratio in the Company's History The Colonial BancGroup, Inc. (NYSE:CNB) Chairman and CEO, Robert E. Lowder, announced today record earnings for the quarter ended June 30, 2004 of $0.33 per diluted share and record net income of $43.3 million. Colonial's record earnings per diluted share for the quarter of $0.33 represents a 10% increase over the $0.30 reported for the quarter ended June 30, 2003. Net income for the quarter ended June 30, 2004 increased 15% over the $37.7 million recorded for the same period of the previous year. "Colonial had an outstanding quarter, producing record earnings while improving upon already excellent asset quality. Our nonperforming assets ratio of 0.38% is the lowest in the Company's history. The quarter also marked another significant event in the Company's history when we closed on our largest acquisition, P.C.B. Bancorp, on May 18th" said Mr. Lowder. At the closing of the merger, PCB had assets of approximately $688 million, loans of $494 million and deposits of $547 million. PCB's Association Services Unit represents a significant portion of PCB's deposits and brings a substantial base of relationship opportunities to Colonial. The Association Services Unit provides outsourced payment processing services to property management companies and condominium associations. "PCB's 16 full-service locations fit exceptionally well into Colonial's existing Florida market areas. Colonial now has 48% of its assets, 55% of its non-time deposits, 49% of total deposits and 42% of its branches in Florida. Florida represents our largest market and we continue to be enthusiastic about our opportunities there." said Lowder. For the first six months of 2004, Colonial reported $0.64 in net income per diluted share, an 8.5% increase over the same period in 2003. Net income for the first six months was $82.4 million which represents a 12% increase over the $73.4 million reported for the same period in 2003. Net interest income grew 15% from the second quarter of 2003 to the second quarter of 2004. Colonial's net interest margin expanded for the third consecutive quarter to 3.61%, a 19 basis point increase over the second quarter of 2003 and a 4 basis point increase over the first quarter of 2004. Average earning assets grew 9% over the second quarter of 2003 and 7% excluding the impact of the PCB acquisition. Average earning assets grew 20% annualized from the first quarter of 2004 to the second quarter of 2004, excluding the impact of the PCB acquisition. The Company's ongoing emphasis on its sales force and growth markets continues to produce strong results. During the second quarter of 2004, average non-time deposits, excluding the impact of acquisitions, grew 22% from the second quarter of 2003 and 31% annualized from the first quarter of 2004. Total deposits, excluding acquisitions, increased 12% from June 30, 2003 and increased 12% annualized from December 31, 2003. Loan balances, excluding mortgage warehouse loans and acquisitions, increased 5% from June 30, 2003 to June 30, 2004 and grew 3% annualized from December 31, 2003 to June 30, 2004. Mortgage warehouse loans decreased 2.7% from March 31, 2004 to $1.04 billion. As expected, noninterest income, excluding securities gains and losses, for the second quarter of 2004 was even with the second quarter of 2003. The Company posted a 12% increase in deposit service charges, a 14% increase in financial planning services and a 17% increase in electronic banking revenues which were offset by a 61% decline in mortgage origination revenues. Noninterest expense increased 13% over the second quarter of the prior year. As part of its continued expansion, Colonial added 30 new locations over the course of the past twelve months - 13 new branches and 17 branches through acquisitions. These new locations and related acquisition expense increased noninterest expense by 6% over the second quarter of 2003. Other increases in noninterest expense relate primarily to salaries and benefits, technology enhancements, advertising and legal. Net charge-offs were 0.23%, annualized, of average net loans for the quarter ended June 30, 2004. The nonperforming assets ratio reached its lowest level in the Company's 23 year history at 0.38% of net loans and other real estate at June 30, 2004. Colonial's loan loss reserve was 1.19% of loans, or 417% of nonperforming loans, at June 30, 2004. Colonial BancGroup currently has $17.6 billion in assets and operates 297 branches in five states - Florida - 124, Alabama - 126, Georgia - 22, Nevada - 13, and Texas - 12. The Company's common stock is traded on the New York Stock Exchange under the symbol CNB. In most newspapers the stock is listed as ColBgp. More detailed information on Colonial BancGroup's quarterly earnings was filed today on Form 8-K with the Securities and Exchange Commission and may be obtained from Colonial BancGroup's corporate website at www.colonialbank.com by clicking on the link entitled Colonial BancGroup Announces Record Earnings or under the Investor Relations area of the website in the section labeled Press Releases. This release and the above referenced Current Report on Form 8-K of which this release forms a part contain "forward-looking statements" within the meaning of the federal securities laws. The forward-looking statements in this release are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among other things, the following possibilities: (i) an inability of the company to realize elements of its strategic plans for 2004 and beyond; (ii) increases in competitive pressure in the banking industry; (iii) general economic conditions, either internationally, nationally or regionally, that are less favorable than expected; (iv) expected cost savings from recent and future acquisitions are not fully realized; (v) changes in the interest rate environment which may reduce margins; (vi) management's assumptions regarding allowance for loan losses may not be borne by subsequent events; (vii) changes which may occur in the regulatory environment and (viii) other factors more fully discussed in our periodic reports filed with the Securities and Exchange Commission. When used in this Report, the words "believes," "estimates," "plans," "expects," "should," "may," "might," "outlook," "anticipates" and similar expressions as they relate to BancGroup (including its subsidiaries) or its management are intended to identify forward-looking statements. Forward-looking statements speak only as to the date they are made. BancGroup does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made. THE COLONIAL BANCGROUP, INC. AND SUBSIDIARIES FINANCIAL HIGHLIGHTS (Unaudited) % Change Statement of Condition Summary June 30, Dec. 31, June 30, June 30, (Dollars in millions) 2004 2003 2003 '03 to '04 ------------------------------ -------- -------- -------- ------------ Total assets $17,593 $16,273 $16,208 9% Total loans, net: Mortgage warehouse loans 1,041 982 1,621 -36% All other loans 11,265 10,606 10,148 11% Total earning assets 16,246 15,094 15,032 8% Core (non-time) deposits 6,924 5,868 5,244 32% Total deposits 10,886 9,769 9,141 19% Shareholders' equity 1,283 1,178 1,122 14% ------------------------------ -------- -------- -------- ------------ Six Months Ended % Three Months Ended % ------------------- Change ------------------- Change Earnings June 30, June 30, June 30, June 30, June 30, June 30, Summary 2004 2003 '03 to '04 2004 2003 '03 to '04 ------------- -------- --------- --------- -------- -------- --------- (In thousands, except per share amounts) Net Income: Net interest income (taxable equivalent) $277,729 $247,463 12% $144,115 $125,741 15% Provision for loan losses 14,453 18,870 -23% 6,519 10,810 -40% Noninterest income excluding security gains (losses)(1) 63,897 62,610 2% 33,636 33,496 0% Security gains (losses), net 7,050 3,717 - (392) 1,947 - Noninterest expense excluding loss on ext. of debt(1) 202,131 182,530 11% 104,702 92,589 13% Loss on early extinguishment of debt 6,183 - - - - - Net Income $82,448 $73,377 12% $43,334 $37,747 15% ------------- -------- --------- --------- -------- -------- --------- EARNINGS PER SHARE: ------------------- Net Income Basic $0.64 $0.59 8% $0.33 $0.30 10% Diluted $0.64 $0.59 8% $0.33 $0.30 10% Average shares outstanding 128,598 123,896 130,130 124,055 Average diluted shares outstanding 129,726 124,540 131,228 124,721 ------------- -------- --------- --------- -------- -------- --------- KEY RATIOS: ----------- Net interest margin 3.59% 3.42% 5% 3.61% 3.42% 6% Book value per share $9.62 $9.03 7% $9.62 $9.03 7% Dividends paid per share $0.290 $0.280 4% $0.145 $0.140 4% ------------- -------- --------- --------- -------- -------- --------- June 30, Dec. 31, June 30, Nonperforming Assets 2004 2003 2003 ------------------------------------------- -------- -------- -------- Total non-performing assets ratio 0.38% 0.65% 0.71% Allowance as a percent of nonperforming loans 417% 240% 210% Net charge-offs ratio (annualized): Quarter to date 0.23% 0.30% 0.37% Year to date 0.22% 0.31% 0.29% ------------------------------------------- -------- -------- -------- (1) Certain reclassifications have been made to the 2003 financial statements to conform to the 2004 presentations. CONTACT: Colonial BancGroup Inc., Montgomery Glenda Allred or Sarah Moore, 334-240-5064 8-K Supplemental (unaudited) Net Interest Income ------------------- Net interest income in the second quarter of 2004 grew $10.5 million from the first quarter of 2004 due to a four basis point improvement in the margin to 3.61% and a $1 billion increase in average earning assets, $266 million of which came from the mid quarter acquisition of P.C.B. Bancorp, Inc. (PCB). Loan yields, excluding mortgage warehouse lending and mortgage loans held for sale, fell by 5 basis points during the quarter due to continued repricing of older fixed rate loans. Overall average loan volume increased $587 million during the quarter with $237 million of the increase coming from mortgage warehouse loans and approximately $224 million from the PCB acquisition. Overall funding costs improved 12 basis points from the first quarter of 2004 to the second quarter of 2004. There was an improvement of 45 basis points in the cost of long-term borrowings predominantly due to the early extinguishment of $212 million in FHLB borrowings in late March 2004. Also, during the second quarter 2004, $300 million in long-term FHLB borrowings were converted from a fixed rate of 5.07% to a current floating rate of 2.33% via interest rate swaps. Funding costs also improved due to the increase in average non-time deposits of $651 million which now comprise 62% of total average deposits. Colonial remained in a neutral interest rate risk position at June 30, 2004. The following table reflects an analysis of the increases (decreases) in interest income and expense and the amounts attributable to volume and rate for the second quarter of 2004 compared to the first quarter of 2004: Analysis of Interest Income and Expense Changes (fully taxable equivalent basis) (dollars in thousands) Increases (Decreases) from First Quarter 2004 Attributed to (1) ----------------- Interest Income: Total Volume Rate ------------ ------------ ------------ Loans, net $3,324 $4,744 ($1,420) Mortgage warehouse lending 2,620 2,381 239 Loans held for sale 1,944 2,367 (423) Securities and other interest-earning assets 2,537 2,646 (109) ------------ ------------ ------------ Total Interest Income 10,425 12,138 (1,713) ------------ ------------ ------------ Interest Expense: Interest-bearing deposits 1,305 877 428 Time deposits (304) 207 (511) Short-term borrowings 1,166 947 219 Long-term debt (2,244) 321 (2,565) ------------ ------------ ------------ Total interest expense (77) 2,352 (2,429) ------------ ------------ ------------ Net Interest Income $10,502 $9,786 $716 ============ ============ ============ (1) Increases (decreases) are attributed to volume changes and rate changes on the following basis: Volume change equals change in volume multiplied by old rate. Rate change equals change in rate multiplied by old volume. The rate/volume change equals change in volume multiplied by change in rate, and it is allocated between volume change and rate change at the ratio that the absolute value of each of those components bear to the absolute value of their total. Loans ----- Period-end loans increased $477 million from March 31, 2004 to June 30, 2004. Changes in period-end loan balances for the second quarter consisted of the following: Period-end Period-end Balance PCB Internal Balance (in millions) 3/31/2004 Acquisition Change 6/30/2004 ------------ ------------- ------------ ------------ Commercial real estate and construction $7,588 $265 -- $7,853 Single-family real estate 1,588 52 7 1,647 Other loans 1,177 151 (25) 1,303 Mortgage warehouse loans 1,070 (29) 1,041 Home equity lines 406 26 30 462 ------------ ------------- ------------ ------------ Total $11,829 $494 ($17) $12,306 ============ ============= ============ ============ Loans held for sale $365 $181 $546 ==== ==== ==== Mortgage warehouse loans decreased to $1,041 million during the second quarter as a result of increases in mortgage rates during the second quarter 2004. Continued emphasis on home equity lines resulted in an increase in equity line balances of approximately 30% annualized (excluding the PCB acquisition) for the second quarter of 2004. Contribution of loan growth by state or division is as follows: % of total loan growth ---------------------- Florida 97% (includes PCB) Texas 3% Alabama 8% Nevada 0% Georgia (14%) Mortgage warehouse lending unit (6%) 1-4 family real estate portfolio loans 12% (includes PCB) ------ 100% ------ Net charge offs for the second quarter of 2004 were $7 million or 0.23%, annualized, of average loans compared to $6 million or 0.21%, annualized, of average loans in the first quarter of 2004. Nonperforming assets declined by $29 million or 38% compared to March 31, 2004 and the ratio of nonperforming assets to net loans and other real estate declined to 0.38% compared to 0.64% at March 31, 2004. The decline is due to resolution of problem assets during the quarter either through loan payoffs, the sale of underlying loans, or the sale of the property (in the case of ORE). The allowance for loan losses remained at 1.19% of net loans at June 30, 2004. Excluding mortgage warehouse loans and 1-4 family real estate, the loan loss reserve was 1.46% of net loans at June 30, 2004, consistent with March 31, 2004. We expect our credit quality indicators to continue to be among the best for banks over $10 billion in assets. Deposits -------- Colonial continued to have strong deposit growth during the quarter with average non-time deposits growing $651 million or 45%, annualized, (31% excluding PCB) from the first quarter of 2004. Total average deposits grew $685 million or 28%, annualized, (18% excluding PCB) during the quarter. Period end deposit balances increased $836 million (including $547 million from PCB) from March 31, 2004 to June 30, 2004. Non-time deposits at June 30, 2004 increased $798 million (including $408 million from PCB) from March 31, 2004 in the following geographic areas or divisions: % of core deposit growth ---------------------- Florida 81% (including PCB) Alabama 5% Nevada 6% Georgia 2% Texas 4% Other 2% ------ 100% ------ Noninterest Expense ------------------- Noninterest expense was $104.7 million for the second quarter of 2004 compared to $97.4 million (excluding $6.2 million for the extinguishment of debt) for the first quarter of 2004. The PCB merger added $3.3 million in noninterest expense, including core deposit amortization and acquisition expenses, during the quarter. Excluding new branches and PCB, salaries and benefits increased $2.6 million primarily due to increased incentive compensation and commissions relating to increased revenues. Three of PCB's four banks were converted to Colonial's information technology systems on June 24, 2004. The fourth PCB bank is expected to be integrated into Colonial's operating systems in August. Full cost savings from integration should be realized during the fourth quarter of 2004. Outlook ------- An improved employment picture is leading the market to believe that the Fed may continue to increase short-term rates at a moderate pace during the second half of the year. Mortgage warehouse loans for the remainder of 2004, are expected, to stabilize just below $1 billion. We expect mid to high single-digit growth in loans excluding mortgage warehouse loans. Non-time deposit growth is expected to grow at a 15-20% annualized pace, and time deposit balances are expected to remain stable. Given current market conditions and the factors mentioned previously, we expect the net interest margin to range from 3.55% to 3.65%. Noninterest income (excluding securities gains) is expected to continue to remain relatively even with 2003. Mortgage banking revenues are expected to decrease approximately 50-65% in comparing 2004 to 2003. This decline is expected to be offset with increases in other noninterest income revenue sources such as service charges on deposit accounts, electronic banking services and financial planning services. It is anticipated that noninterest expense (excluding the early extinguishment of debt and merger related expenses) will increase in the range of 9% to 12% in comparing 2003 to 2004 due to investments in several strategic initiatives related to revenue enhancement, including Colonial's business banking initiative, a new information technology center, new branches, completed acquisitions, new technology equipment and normal operating increases. Franchise --------- On May 18, 2004, Colonial closed on the acquisition of PCB in Florida. PCB had 16 full service branches in several counties in Florida. As of the closing date, PCB had total assets of $688 million, loans of $494 million and deposits of $547 million. Total consideration for the transaction was approximately $143 million and consisted of approximately 75% stock and 25% cash. PCB did not have a significant impact on earnings per share in the second quarter of 2004. Management anticipates that the acquisition will be accretive to earnings per share in 2005. The Company incurred approximately $785,000 (after tax) in one time merger related expenses in the second quarter and anticipates approximately $495,000 (after tax) in additional one time expenses to be recorded in the third quarter of 2004. In addition to the branches gained through the PCB acquisition, Colonial continued its planned branch expansion by filling in locations in higher-growth areas. Colonial opened three new locations during the second quarter in Palm Coast, Florida, Estero, Florida and Stone Mountain, Georgia. An additional seven de novo branches are planned to open through the remainder of the year with six in Florida and one in Alabama. The following is a summary of assets, deposits and branches at June 30, 2004: % of total % of core % of total Number of Assets Deposits Deposits Branches ---------- --------- ---------- --------- Florida 48% 55% 49% 124 Alabama 27% 28% 34% 126 Georgia 9% 5% 7% 22 Texas 6% 6% 4% 12 Nevada 5% 5% 4% 13 Corporate/Other 5% 1% 2% ----- 297 We continue to evaluate potential acquisitions to strengthen our market share in the higher growth markets where we already have a presence. There are a number of uncertainties that would impact the expectations noted above including the overall strength of the economy and changes in market rates.
THE COLONIAL BANCGROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) ------------------------------------------------------------------------------------------------------------------------------ Six Months Ended -------------------- Earnings Summary 2nd Qtr. 1st Qtr. 4th Qtr. 3rd Qtr. 2nd Qtr. June 30, June 30, (Dollars in thousands, except per share amounts) 2004 2004 2003 2003 2003 2004 2003 ------------------------------------------------------------------------------------------------------------------------------ Net interest income $143,635 $133,107 $130,816 $129,576 $125,149 $276,742 $246,251 Provision for loan loss 6,519 7,934 9,202 9,306 10,810 14,453 18,870 Noninterest income:(1) Service charges on deposit accounts 15,029 14,185 14,237 14,304 13,360 29,214 25,073 Financial planning services 3,983 3,124 3,587 3,764 3,493 7,107 7,761 Electronic banking 3,180 2,812 2,554 2,489 2,710 5,992 5,143 Mortgage origination 2,373 1,990 2,243 4,274 6,126 4,363 10,716 Securities gains(losses), net (392) 7,442 954 142 1,947 7,050 3,717 Other income 9,071 8,150 9,352 8,796 7,807 17,221 13,917 ---------------------------------------------------------------------- Total noninterest income 33,244 37,703 32,927 33,769 35,443 70,947 66,327 Noninterest expense:(1) Salaries and employee benefits 54,283 50,700 50,524 50,295 48,172 104,983 95,330 Occupancy and equipment expenses 21,874 21,197 21,703 20,592 20,461 43,071 39,968 Amortization of intangibles 1,390 1,123 1,128 1,085 1,086 2,513 2,172 Merger related expenses 1,190 82 86 - 62 1,272 185 Loss on early extinguishment of debt - 6,183 - - - 6,183 - Other expense 25,965 24,327 23,921 23,261 22,808 50,292 44,875 ---------------------------------------------------------------------- Total noninterest expense 104,702 103,612 97,362 95,233 92,589 208,314 182,530 Income before tax 65,658 59,264 57,179 58,806 57,193 124,922 111,178 Income tax 22,324 20,150 19,441 19,994 19,446 42,474 37,801 ---------------------------------------------------------------------- Net Income $43,334 $39,114 $37,738 $38,812 $37,747 $82,448 $73,377 ---------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------------ Earnings per share - Diluted ----------------------------------------------------------------- Net Income $0.33 $0.31 $0.30 $0.31 $0.30 $0.64 $0.59 ------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------ Selected ratios ----------------------------------------------------------------- Return on average assets* 1.01% 0.98% 0.94% 0.95% 0.96% 0.99% 0.95% Return on average equity* 14.04% 13.10% 12.92% 13.92% 13.73% 13.58% 13.53% Efficiency ratio(2) 58.90% 59.45% 59.62% 58.16% 58.15% 59.17% 58.87% Noninterest income(2)/ avg assets* 0.78% 0.75% 0.80% 0.82% 0.85% 0.77% 0.81% Noninterest expense(2)/ avg assets* 2.43% 2.42% 2.45% 2.34% 2.34% 2.42% 2.34% Net interest margin 3.61% 3.57% 3.53% 3.42% 3.42% 3.59% 3.42% Equity to assets 7.30% 7.46% 7.24% 7.02% 6.92% Tier one leverage 7.30% 7.56% 7.50% 7.13% 6.50% Tangible capital ratio 5.16% 5.85% 5.60% 5.50% 5.43% ------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------ (1) Certain reclassifications have been made to the 2003 financial statements to conform to the 2004 presentations. Certain reclassifications have been made to 1st quarter 2004 financials to conform to 2nd quarter 2004 presentations. (2) Noninterest income excludes gain on sale of securities and noninterest expense excludes loss on early extinguishment of debt. * Annualized
THE COLONIAL BANCGROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CONDITION (Unaudited) ------------------------------------------------------------------------------------------------------------------------------ STATEMENTS OF CONDITION June 30, March 31, December 31, September 30, June 30, (Dollars in thousands) 2004 2004 2003 2003 2003 ------------------------------------------------------------------------------------------------------------------------------ Assets:(3) Cash and due from banks $357,862 $311,460 $329,152 $321,362 $306,661 Interest-bearing deposits in banks 10,912 11,534 16,565 15,757 15,039 Federal funds sold and securities purchased under agreements to resell 37,144 9,000 - 30,000 5,500 Securities available for sale 3,338,855 3,008,651 3,100,321 2,852,344 2,712,339 Investment securities 7,377 8,745 10,387 10,952 13,071 Loans held for sale 545,905 365,245 378,324 366,080 517,323 Total loans, net: Mortgage warehouse loans 1,041,070 1,070,040 982,488 1,144,519 1,621,008 All other loans 11,264,957 10,758,947 10,606,407 10,264,929 10,147,839 Less: Allowance for loan losses (147,000) (140,476) (138,549) (136,625) (137,618) ------------------------------------------------------------------ Loans, net 12,159,027 11,688,511 11,450,346 11,272,823 11,631,229 Premises and equipment, net 270,282 253,859 246,170 236,229 234,708 Intangible assets, net 395,381 281,139 282,190 254,148 255,234 Other real estate owned 11,084 15,432 17,821 16,809 18,607 Accrued interest and other assets 459,190 545,422 442,026 458,015 497,794 ------------------------------------------------------------------------------------------------------------------------------ Total Assets $17,593,019 $16,498,998 $16,273,302 $15,834,519 $16,207,505 ------------------------------------------------------------------------------------------------------------------------------ Liabilities and Shareholders' Equity: Non-interest bearing deposits $2,336,072 $2,068,798 $2,021,901 $1,884,568 $1,930,859 Interest-bearing deposits 4,036,973 3,519,129 3,314,328 3,002,640 2,766,449 Savings deposits 550,909 538,005 531,419 558,071 546,866 ------------------------------------------------------------------ Total core deposits 6,923,954 6,125,932 5,867,648 5,445,279 5,244,174 Time deposits 3,962,168 3,923,840 3,900,944 3,859,949 3,896,978 ------------------------------------------------------------------ Total deposits 10,886,122 10,049,772 9,768,592 9,305,228 9,141,152 Short-term borrowings 3,042,573 2,960,575 3,311,640 3,352,913 4,018,276 Subordinated debt 270,536 286,723 278,428 284,926 285,543 Trust preferred securities (2) - - - - 201,490 Junior subordinated debt (2) 309,324 306,824 299,917 305,425 - FHLB and other long-term debt 1,727,326 1,501,926 1,364,969 1,407,973 1,287,008 Other liabilities 73,643 162,781 71,451 66,260 151,986 ------------------------------------------------------------------ Total liabilities 16,309,524 15,268,601 15,094,997 14,722,725 15,085,455 Common stock, par value $2.50 share (1) 333,601 318,000 317,437 311,057 310,640 Additional paid in capital 332,629 238,856 237,134 205,232 203,840 Retained earnings 670,908 646,022 625,326 605,351 583,944 Unearned compensation (1,087) (1,157) (1,134) (1,930) (2,134) Accumulated other comprehensive (loss) income, net of taxes (52,556) 28,676 (458) (7,916) 25,760 ------------------------------------------------------------------ Total shareholders' equity 1,283,495 1,230,397 1,178,305 1,111,794 1,122,050 ------------------------------------------------------------------------------------------------------------------------------ Total Liabilities and Shareholders' Equity $17,593,019 $16,498,998 $16,273,302 $15,834,519 $16,207,505 ------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------ (1) Common Shares Authorized 200,000,000 200,000,000 200,000,000 200,000,000 200,000,000 Common Shares Issued 133,440,337 127,199,880 126,974,668 124,422,742 124,255,988 Common Shares Outstanding 133,440,337 127,199,880 126,974,668 124,422,742 124,255,988 ------------------------------------------------------------------------------------------------------------------------------ (2) Trust preferred securities were deconsolidated and reclassified as junior subordinated debt in the third quarter of 2003. (3) Certain reclassifications have been made to the 2003 financial statements to conform to the 2004 presentations. Certain reclassifications have been made to 1st quarter 2004 financials to conform to 2nd quarter 2004 presentations.
THE COLONIAL BANCGROUP, INC. AND SUBSIDIARIES -------------------------------------------------------------------------------------------------------------------------------- Three Months Ended ---------------------------------------------------------------------------------------- AVERAGE VOLUME AND RATES (unaudited) June 30, March 31, June 30, (Dollars in thousands) 2004 2004 2003 ---------------------------------------------------------------------------------------- Average Average Average Volume Interest Rate Volume Interest Rate Volume Interest Rate -------------------------------------------------------------------------------------------------------------------------------- Assets: Loans, net of unearned income(2) $10,940,598 $148,514 5.46% $10,590,888 $145,190 5.51% $10,008,446 $150,977 6.12% Mortgage warehouse lending 1,120,277 11,251 4.04% 883,301 8,631 3.93% 1,592,472 14,492 3.60% Loans held for sale 526,491 6,456 4.90% 335,875 4,512 5.37% 364,505 4,982 5.47% Investment securities and securities available for sale and other interest-earning assets 3,434,358 38,464 4.48% 3,197,979 35,927 4.49% 2,745,904 26,173 3.81% ---------------------- ---------------------- ---------------------- Total interest-earning assets(1) 16,021,724 $204,685 5.13% 15,008,043 $194,260 5.20% 14,711,327 $196,624 5.35% Nonearning assets 1,238,559 1,123,167 1,114,053 ------------ ------------ ------------ Total assets $17,260,283 $16,131,210 $15,825,380 -------------------------------------------------------------------- ----------------------------- ----------------------------- Liabilities and Shareholders' Equity: Interest-bearing non-time deposits $4,320,746 $9,255 0.86% $3,904,626 $7,950 0.82% $3,306,725 $7,004 0.85% Time deposits 3,954,689 24,146 2.46% 3,921,241 24,450 2.51% 3,999,866 28,964 2.90% Short-term borrowings 3,205,953 8,213 1.03% 2,834,371 7,047 1.00% 3,373,589 10,857 1.29% Long-term debt 2,296,243 18,956 3.32% 2,261,691 21,200 3.77% 2,108,847 24,058 4.56% ---------------------- ---------------------- ---------------------- Total interest-bearing liabilities 13,777,631 $60,570 1.77% 12,921,929 $60,647 1.89% 12,789,027 $70,883 2.22% Noninterest-bearing demand deposits 2,166,471 1,931,116 1,846,827 Other liabilities 75,206 77,505 86,737 ------------ ------------ ------------ Total liabilities 16,019,308 14,930,550 14,722,591 Shareholders' equity 1,240,975 1,200,660 1,102,789 ------------ ------------ ------------ Total liabilities and shareholders' equity $17,260,283 $16,131,210 $15,825,380 -------------------------------------------------------------------------------------------------------------------------------- Rate differential 3.36% 3.31% 3.13% Net yield on interest-earning assets $144,115 3.61% $133,613 3.57% $125,741 3.42% -------------------------------------------------------------------------------------------------------------------------------- (1) Interest earned and average rates on obligations of states and political subdivisions are reflected on a tax equivalent basis. Tax equivalent interest earned is: actual interest earned times 145%. The taxable equivalent adjustment has given effect to the disallowance of interest expense deductions, for federal income tax purposes, related to certain tax-free assets. (2) Loans, net of unearned income for the purpose of this presentation excludes mortgage warehouse lending.
THE COLONIAL BANCGROUP, INC. AND SUBSIDIARIES ------------------------------------------------------------------------------------------------------------------------ Six Months Ended June 30, ----------------------------------------------------------------- AVERAGE VOLUME AND RATES (unaudited) 2004 2003 ----------------------------------------------------------------- (Dollars in thousands) Average Average Volume Interest Rate Volume Interest Rate ------------------------------------------------------------------------------------------------------------------------ Assets Loans, net of unearned income(2) $10,765,744 $293,706 5.48% $9,953,583 $302,317 6.04% Mortgage warehouse lending 1,001,789 19,882 3.99% 1,535,438 27,867 3.61% Loans held for sale 431,183 10,968 5.09% 291,226 7,597 5.22% Investment securities and securities available for sale and other interest-earning assets 3,316,166 74,390 4.49% 2,742,185 54,082 3.98% ------------------------ ------------------------ Total interest-earning assets(1) 15,514,882 $398,946 5.16% 14,522,432 $391,863 5.43% Nonearning assets 1,180,865 1,069,484 -------------- -------------- Total assets $16,695,747 $15,591,916 ------------------------------------------------------------------------------------------------------------------------ Liabilities and Shareholders' Equity: Interest bearing non-time deposits $4,112,686 $17,203 0.84% $3,262,264 $13,937 0.86% Time deposits 3,937,965 48,598 2.48% 4,132,626 61,424 3.00% Short-term borrowings 3,020,162 15,259 1.02% 3,113,713 20,641 1.34% Long-term debt 2,278,967 40,157 3.54% 2,120,105 48,398 4.60% ------------------------ ------------------------ Total interest-bearing liabilities 13,349,780 $121,217 1.83% 12,628,708 $144,400 2.30% Noninterest-bearing demand deposits 2,048,794 1,786,958 Other liabilities 76,356 82,322 -------------- -------------- Total liabilities 15,474,930 14,497,988 Shareholders' equity 1,220,817 1,093,928 -------------- -------------- Total liabilities and shareholders' equity $16,695,747 $15,591,916 ------------------------------------------------------------------------------------------------------------------------ Rate differential 3.33% 3.13% Net yield on interest-earning assets $277,729 3.59% $247,463 3.42% ------------------------------------------------------------------------------------------------------------------------ (1) Interest earned and average rates on obligations of states and political subdivisions are reflected on a tax equivalent basis. Tax equivalent interest earned is: actual interest earned times 145%. The taxable equivalent adjustment has given effect to the disallowance of interest expense deductions, for federal income tax purposes, related to certain tax-free assets. (2) Loans, net of unearned income for the purpose of this presentation excludes mortgage warehouse lending.
THE COLONIAL BANCGROUP, INC. AND SUBSIDIARIES NONPERFORMING ASSETS AND LOAN LOSS RESERVE ANALYSIS (unaudited) ------------------------------------------------------------------------------------------------------------------------ NONPERFORMING ASSETS June 30, March 31, December 31, September 30, June 30, (Dollars in thousands) 2004 2004 2003 2003 2003 ------------------------------------------------------------------------------------------------------------------------ Nonaccrual loans $34,994 $59,618 $57,342 $65,205 $65,136 Restructured loans 248 263 277 369 384 ----------------------------------------------------------------- Total nonperforming loans 35,242 59,881 57,619 65,574 65,520 Other real estate owned 11,084 15,432 17,821 16,809 18,607 ----------------------------------------------------------------- Total nonperforming assets $46,326 $75,313 $75,440 $82,383 $84,127 ----------------------------------------------------------------- Aggregate loans contractually past due 90 days for which interest is being accrued $11,537 $10,683 $10,802 $7,675 $10,784 Total charge-offs $15,997 $7,297 $41,427 $31,278 $19,717 Total recoveries ($3,138) ($1,290) ($5,956) ($4,462) ($3,200) ----------------------------------------------------------------- Net charge-offs: Year to date $12,859 $6,007 $35,471 $26,816 $16,517 Quarter to date $6,852 $6,007 $8,655 $10,299 $10,873 ------------------------------------------------------- RATIOS ------------------------------------------------------- Period end: Total nonperforming assets as a percent of net loans and other real estate 0.38% 0.64% 0.65% 0.72% 0.71% Allowance as a percent of nonperforming assets 317% 187% 184% 166% 164% Allowance as a percent of nonperforming loans 417% 235% 240% 208% 210% Net charge-offs as a percent of average net loans (annualized): Quarter to date 0.23% 0.21% 0.30% 0.35% 0.37% Year to date 0.22% 0.21% 0.31% 0.31% 0.29% ------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------ June 30, 2004 March 31, 2004 June 30, 2003 ------------------------------------------------------------------------ ALLOWANCE FOR LOAN LOSSES % BY CATEGORY Percent Percent Percent (Dollars in thousands) Loans reserve Loans reserve Loans reserve ------------------------------------------------------------------------------------------------------------------------ Single Family Real Estate: Mortgage warehouse loans $1,041,070 0.25% $1,070,040 0.25% $1,621,008 0.25% 1-4 Family real estate portfolio - held to maturity 2,108,335 0.50% 1,987,834 0.50% 1,926,053 0.50% Other 9,156,622 1.46% 8,771,113 1.46% 8,221,786 1.51% --------------- --------------- --------------- Total loans $12,306,027 1.19% $11,828,987 1.19% $11,768,847 1.17% ------------------------------------------------------------------------------------------------------------------------ Note: The allowance allocation reflected above for mortgage warehouse loans and 1-4 family real estate portfolio loans reflects an internally developed allocation used for illustrative purposes only.