EX-99.2 3 dex992.htm PRESENTATION MATERIALS Presentation Materials
1
The Best Things Come OUT OF THE BLUE
Second Quarter 2006
Earnings Overview
Exhibit 99.2

2
The Best Things Come OUT OF THE BLUE
Forward Looking Statements
This
presentation
includes
“forward-looking
statements”
within
the
meaning
of
the
federal
securities
laws.
Words
such
as
“believes,”
“estimates,”
“plans,”
“expects,”
“should,”
“may,”
“might,”
“outlook,”
and “anticipates,”
and similar expressions, as they relate to BancGroup
(including its subsidiaries or its management), are intended to identify forward-looking statements. The forward-looking statements in
these reports are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in or implied
by
the
statements.
In
addition
to
factors
mentioned
elsewhere
in
this
report
or
previously
disclosed
in
BancGroup’s
SEC
reports
(accessible
on
the
SEC’s
website
at
www.sec.gov
or
on
BancGroup’s
website
at
www.colonialbank.com),
the
following
factors,
among
others, could cause actual results to differ materially from forward-looking statements and future results could differ materially from
historical performance. These factors are not exclusive:
•
deposit attrition, customer loss, or revenue loss in the ordinary course of business;
•
increases in competitive pressure in the banking industry;
•
costs or difficulties related to the integration of the businesses of BancGroup and institutions it acquires are greater than
expected;
•
the inability of BancGroup to realize elements of its strategic plans for 2006 and beyond;
•
changes in the interest rate environment which expand or reduce margins or adversely affect critical estimates as applied and
projected returns on investments;
•
economic
conditions
affecting
real
estate
values
and
transactions
in
BancGroup’s
market
and/or
general
economic
conditions,
either nationally or regionally, that are less favorable then expected;
•
natural disasters in BancGroup’s
primary market areas which result in prolonged business disruption or materially impair the
value of collateral securing loans;
•
management’s assumptions and estimates underlying critical accounting policies prove to be inadequate or materially
incorrect or are not borne out by subsequent events;
•
strategies to manage interest rate risk may yield results other than those anticipated;
•
changes which may occur in the regulatory environment;
•
a significant rate of inflation (deflation);
•
acts of terrorism or war; and
•
changes in the securities markets.
Many
of
these
factors
are
beyond
BancGroup’s
control.
The
reader
is
cautioned
not
to
place
undue
reliance
on
any
forward
looking
statements
made
by
or
on
behalf
of
BancGroup.
Any
such
statement
speaks
only
as
of
the
date
the
statement
was
made
or
as
of
such
date
that
may
be
referenced
within
the
statement.
BancGroup
does
not
undertake
any
obligation
to
update
or
revise
any
forward-looking
statements.

3
The Best Things Come OUT OF THE BLUE
Record Earnings in 2Q06
•
EPS of $0.43, up 5% over $0.41 reported in 2Q05
•
EPS was in line with consensus
•
Net Income of $67 million, up 7% over 2Q05
Strong increase in Net Interest Income of 10%
Strong Linked Quarter Increase in Core Noninterest
Income of 8%
Strong Period End Loan Growth
1
of 10.5% annualized from the end of 2005
Excellent Credit Quality
•
Nonperforming Assets Ratio hit a new record low of 0.18%
•
Excellent annualized net charge off ratio of 0.04% for 2Q06 and 0.15% YTD
Outstanding Average Deposit Growth
2
of 14% over 2Q05 and 13% annualized
over 4Q05
Overview
1
Excluding Mortgage Warehouse Lending
2
Excluding acquisitions, sale of branches and brokered deposits

4
The Best Things Come OUT OF THE BLUE
FL
58%
Corp
9%
GA
6%
AL
17%
TX
6%
NV
4%
NV
14
TX
13
FL
162
GA
18
AL
92
FL
60%
AL
23%
TX
4%
GA
5%
NV
5%
Corp
3%
70%
1
of Colonial’s Deposits are in three of the four fastest growing states in the
U.S* -
Florida, Georgia and Nevada 
Branches, Assets and Deposits by State at 6/30/06 are as follows:
In the Right Places
299 Branches
$23 Billion in Assets
$17 Billion in Deposits
1
At 6/30/06
*Population change from 2000-2005
Source: US Census Bureau

5
The Best Things Come OUT OF THE BLUE
Superior Projected Population Growth
2005 - 2010 Population Growth
Colonial BancGroup, Inc.
10.95
%
Compass Bancshares, Inc.
9.97
Wachovia Corporation
8.85
SunTrust Banks, Inc.
8.72
South Financial Group, Inc.
8.68
Synovus Financial Corp.
7.17
Bank of America Corporation
6.95
BB&T Corporation
6.80
AmSouth Bancorporation
6.46
Regions Financial Corporation
5.86
First Horizon National Corporation
5.27
Fifth Third Bancorp
4.51
Trustmark Corporation
4.15
Whitney Holding Corporation
3.80
BancorpSouth, Inc.
3.46
Median
6.80
%
Low
3.46
High
10.95
National Average
6.26
Source: SNL Financial.
Deposit data as of 6/30/05.
Population growth deposit weighted by county.

6
The Best Things Come OUT OF THE BLUE
Florida, now the 4
th
most populous state in the U.S. with 17 million, is projected
to pass New York in total population by 2011*
6
th
largest commercial bank in Florida –
5
th
largest after AmSouth/Regions
merger
Florida at 6/30/06:
•
60% of Deposits in Florida –
Total Deposits of $9.9 Billion
•
58% of Assets in Florida –
Total Assets of $13.3 Billion
•
54% of Branches in Florida –
Total Branches –
162
Strong loan and deposit growth
•
Loans
1
grew 15% over June 30, 2005 and 13% annualized from 12/31/05
•
Average
deposit
growth,
excluding
acquisitions,
was
15%
for
2Q06
v.
2Q05
and
11% annualized over 4Q05
Aggressive De Novo Branching Strategy
•
Plan to open 7 branches in 2006 and 20 in 2007
•
7-10 additional branch locations secured for 2008
Florida Franchise
1
Excluding Mortgage Warehouse Lending
*Source: SNL Financial

Florida Franchise and Current Population
7 Planned Branches through 12/31/06
Current Branches
Current Population
2,500,000
500,000
100,000
Current Population
2,500,000
500,000
100,000
PANHANDLE
Assets = $400 Million
Deposits = $56 Million
2 Branches
CENTRAL FLORIDA
Assets = $3.5 Billion
Deposits = $3.1 Billion
60 Branches
MORTGAGE WHSE.
Assets = $2.9 Billion
Deposits = $1.0 Billion
SOUTH FLORIDA
Assets = $3.5 Billion
Deposits = $3.0 Billion
46 Branches
FLORIDA WEST COAST
Assets = $3.0 Billion
Deposits = $2.8 Billion
54 Branches
Planned Branches beyond 12/31/06
7

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$0.85
$1.06
$1.26
$1.16
$1.31
$1.52
$0.75
$0.41
$0.43
2001
2002
2003
2004
2005
YTD
6/30/05
YTD
6/30/06
2Q05
2Q06
$0.75
$1.55
$1.33
$1.20
$1.16
$1.06
$0.85
$0.38
$0.43
2001
2002
2003
2004
2005
YTD
6/30/05
YTD
6/30/06
2Q05
2Q06
(diluted)
Originally Reported*
As Restated
* As if restatement had not occurred
Earnings Per Share
11%
3% 
9%
17%
19%
(8)%
13%
16%
5%
13%
13%
13%
3 Year CAGR = 9%
2003 -
2005

9
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$422
$455
$495
$567
$174
$192
2001
2002
2003
2004
2005
2Q05
2Q06
$709
Net Interest Income
($ in millions)
8%
9%
15%
10%
25%
3 Year CAGR = 13%
2003 -
2005
68%

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$13,988
$10,862
$9,419
$8,734
$8,433
$13,489
$15,714
2001
2002
2003
2004
2005
2Q05
2Q06
Average Deposits
4%
8%
15%
1
Excluding acquisitions, sale of branches, and brokered deposits
14%¹
($ in millions)
16.5%
16%¹
29%
3 Year CAGR = 14%
2003 -
2005
86%

11
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3.36%
3.41%
3.45%
3.49%
3.53%
3.58%
3.64%
3.72%
3.78%
3.85%
3.86%
3.81%
3.10%
3.20%
3.30%
3.40%
3.50%
3.60%
3.70%
3.80%
3.90%
3Q03
4Q03
1Q04
2Q04
3Q04
4Q04
1Q05
2Q05
3Q05
4Q05
1Q06
2Q06
Net Interest Margin

12
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Net Interest Income and Margin
($ in millions)
Tax
Equivalent
NII
NIM
1Q06
188.5
$       
3.86%
Increase Due to Asset Sensitivity
2.1
            
0.04%
Earning Asset Growth Spread
4.1
            
-0.01%
Deposit Pricing Competition & Mix Change
(3.1)
           
-0.06%
Treasury Transactions:
Security Transactions - 1Q06
0.7
            
0.01%
$200mm FHLB Advance at 1.84% Matured
(1.3)
           
-0.03%
Increase in Days
1.4
            
-
         
2Q06
192.4
$       
3.81%
Annualized Increase
8%

13
The Best Things Come OUT OF THE BLUE
Noninterest Income
($ in millions)
2Q06
1Q06
$ Change
% Change
Service charges
15.3
$     
14.2
$     
1.1
$       
8%
Financial planning services
3.7
         
3.1
         
0.6
         
19%
Electronic banking
4.3
         
4.1
         
0.2
         
5%
Mortgage banking
3.8
         
2.9
         
0.9
         
31%
Mortgage warehouse fees
6.0
         
6.3
         
(0.3)
        
-5%
Bank-owned life insurance
4.0
         
4.0
         
-
           
-
            
Other Retail Banking Fees
3.7
         
3.6
         
0.1
         
3%
Other income
4.1
         
2.2
         
1.9
         
86%
        Subtotal
44.9
       
40.4
       
4.5
         
11%
Goldleaf income (sold 1Q06)
-
           
1.2
         
(1.2)
        
-100%
        Core Noninterest Income
44.9
       
41.6
       
3.3
         
8%
Securities and derivatives gains (losses), net
-
           
4.2
         
(4.2)
        
-100%
Gain on sale of Goldleaf
-
           
2.8
         
(2.8)
        
-100%
        Total Noninterest Income
44.9
$     
48.6
$     
(3.7)
$      
-8%
Annualized Noninterest Income to Average Assets (1)
0.82%
0.78%
Noninterest Income to Total Revenue (1)
18.9%
18.1%
(1)   Core noninterest income was used in the calculation

14
The Best Things Come OUT OF THE BLUE
Noninterest Expense
($ in millions)
2Q06
1Q06
$ Change
% Change
Salaries and employee benefits
70.9
$      
68.8
$     
2.1
$       
3%
Occupancy expense of bank premises, net
16.4
        
15.5
       
0.9
         
6%
Furniture and equipment expense
11.9
        
11.4
       
0.5
         
4%
Professional services
4.9
          
4.4
         
0.5
         
11%
Amortization of intangibles
3.1
          
3.1
         
-
           
-
           
Advertising
3.1
          
2.9
         
0.2
         
7%
Communications
2.5
          
2.6
         
(0.1)
        
-4%
Electronic Banking Expense
1.4
          
1.3
         
0.1
         
8%
Operating Supplies
1.3
          
1.4
         
(0.1)
        
-7%
Other expense
15.7
        
14.5
       
1.2
         
8%
        Total Noninterest Expense
131.2
$    
125.9
$   
5.3
$       
4%
Efficiency Ratio (1)
55.31%
54.73%
Annualized Noninterest Expense to Average Assets
2.39%
2.34%
(1)   Core noninterest income was used in calculation, see components on Noninterest Income slide

15
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Excellent Credit Quality
Nonperforming Assets ratio hit a new record low of 0.18% at 6/30/06
Annualized Net Charge-Off Ratio was 0.04%
for the quarter and was
0.15% YTD
Provision exceeded net charge-offs in 2Q06 by $3.5 million
Past dues > 30 days were 0.41% of net loans, down from 0.53% at
3/31/06
Allowance for loan losses was 1.14%, or 649% of nonperforming
assets

16
The Best Things Come OUT OF THE BLUE
0.65%
0.78%
0.64%
0.54%
0.55%
0.60%
0.71%
0.84%
0.85%
0.29%
0.21%
0.78%
1.17%
1.25%
0.18%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
4.50%
'92
'93
'94
'95
'96
'97
'98
'99
'00
'01
'02
'03
'04
'05
6/30/06
All FDIC Insured Commercial Banks
Colonial BancGroup
(as originally reported)
NPAs
Consistently Below Industry

17
The Best Things Come OUT OF THE BLUE
0.47%
0.51%
0.09%
0.19%
0.15%
0.14%
0.33%
0.13%
0.18%
0.04%
0.23%
0.23%
0.21%
0.21%
0.28%
0.29%
0.31%
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
1.20%
1.40%
1.60%
'91
'92
'93
'94
'95
'96
'97
'98
'99
'00
'01
'02
'03
'04
'05
YTD
6/30/06
2Q06
All FDIC Insured Commercial Banks
Southern Regionals*
Colonial BancGroup
Net Charge-Offs/Average Loans
*Source: Sandler O’Neill & Partners
1
Annualized
1
1

18
The Best Things Come OUT OF THE BLUE
Second Quarter Summary
Record EPS of $0.43
No Unusual Transactions
Net interest income increased 10% over prior year 2Q
Fee based services increased 8% linked quarter
Excellent credit quality
Strong loan growth and good deposit growth

19
The Best Things Come OUT OF THE BLUE
Outlook for 2006
High single digit to low double digit loan growth and low double
digit
deposit growth are expected for the full year 2006
Expect full year net interest margin to be in line with or slightly above
full year 2005 margin of 3.75%
Excellent credit quality is expected to continue
Diluted earnings per share are expected to be in line with street mean
estimate of $1.72
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. 

20
The Best Things Come OUT OF THE BLUE
$.68
$.61
$.58
$.56
$.52
$.48
$.44
$.38
$.34
$.30
$.27
$.22
$.15
$.16
$.17
$.18
$.20
$0
$0
$0
$0
$0
$1
$1
$1
'90
'91
'92
'93
'94
'95
'96
'97
'98
'99
'00
'01
'02
'03
'04
'05
'06
16 YEARS OF INCREASED DIVIDENDS 
Solid Dividend Growth
*Estimated
*
11%