EX-99.1 2 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

LOGO

PRESS RELEASE

 

For more information contact:    April 18, 2007
Lisa Free   
(334) 676-5105   

COLONIAL BANCGROUP ANNOUNCES

FIRST QUARTER EARNINGS PER SHARE OF $0.43

FIRST QUARTER 2007 HIGHLIGHTS:

 

   

Quarterly EPS of $0.43, up 2% over 1Q06

 

   

Core noninterest income increased 11% over 1Q06

 

   

Loans grew 3% over 1Q06, excluding the sale of $490 million of residential real estate loans in 1Q07

 

   

Period end deposits grew 7% annualized over December 31, 2006 – noninterest bearing deposits grew 13% annualized

 

   

Excellent credit quality—annualized net charge-offs were 0.06% of average loans

 

   

The allowance for loan losses increased to 1.16% of loans – 525% of nonperforming assets

MONTGOMERY, AL. - The Colonial BancGroup, Inc. Chairman, CEO and President, Robert E. Lowder, announced today that the Company earned $0.43 per diluted share for the quarter ended March 31, 2007, a 2% increase over the $0.42 earned for the same quarter of the previous year. Net income for the quarter was $65 million. “Taken as a whole, the Financial Services industry went on a roller coaster ride in the first quarter of 2007. I am pleased to report that Colonial’s performance did not join that ride, and continues to reflect the results of our long time commitment to conservative lending to borrowers we know,” said Mr. Lowder.

 

1


Specifically, net charge-offs were an annualized 0.06% of average loans in the first quarter, down from 0.12% for the fourth quarter of 2006 and 0.26% for the first quarter of 2006. Nonperforming assets were 0.22% of net loans at March 31, 2007 down two basis points from 0.24% at March 31, 2006 and up six basis points from 0.16% at December 31, 2006. “Colonial’s credit quality has historically been measurably ahead of its southeastern peer average and the average of all FDIC insured commercial banks. The results at the end of the first quarter continue to reflect that trend,” said Mr. Lowder. Consistent with its conservative approach, Colonial increased its allowance for loan losses as a percentage of total loans to 1.16%, up from 1.13% at December 31, 2006. The allowance represented 525% of nonperforming assets at March 31, 2007.

Mortgage warehouse assets ended the quarter at $4.1 billion in assets under management with $2 billion in interests sold to third-party commercial paper conduits. Total mortgage warehouse assets retained by Colonial decreased 11% from December 31, 2006 to $2.1 billion. “Colonial’s mortgage warehouse lending customers include mortgage companies which originate primarily “A” paper. Credit quality remains excellent in Colonial’s warehouse division. Our borrowers are experiencing no difficulty in selling their production in a timely fashion,” said Mr. Lowder.

Net interest income was $181 million in the first quarter of 2007, a 2% decrease from the fourth quarter of 2006. Net interest margin contracted five basis points from the fourth quarter of 2006. “Net interest income continues to be impacted by our policy of accepting slower asset growth in return for dealing only with borrowers who meet our credit standards and the migration of customer deposits from low or no rate products to higher rate products. Having said that, it has always been Colonial’s belief that flexibility is one of the keys to sound management, and utilizing that approach the Company has taken a number of steps to deal with the impact of margin compression on earnings. Examples of these steps are selling low yielding assets, redeeming high rate debt, introducing new deposit products such as remote deposit capture, focusing on fee income opportunities and continuing to emphasize strong expense controls,” said Mr. Lowder.

 

2


At the end of the quarter, Colonial sold approximately $490 million of residential mortgage loans which had an average yield of 6.04%. Colonial recognized a pretax gain of $3.9 million on the sale of those mortgages. In February, Colonial redeemed $70 million of trust preferred securities with an interest rate of 8.92%. The debt was replaced with short term borrowings at lower rates. As previously announced, Colonial reduced its workforce by approximately 170 positions in January and incurred severance charges of $3 million. The benefit of the reduction in staffing is expected to be realized beginning in the second quarter of 2007.

Core noninterest income increased 11% over the first quarter of 2006. Retail banking fees, which consist primarily of deposit service charges, overdraft fees and electronic banking fees, increased 18% over the first quarter of 2006, while mortgage banking revenues from the origination and sale of fixed rate mortgages increased 10% over the first quarter of 2006. The financial planning services unit had a strong quarter, increasing revenues by 22% over the first quarter of 2006.

Noninterest expenses were well controlled in the quarter. Excluding the $3 million in severance and $429,000 of merger expenses related to the pending acquisition of Commercial Bankshares, Inc., noninterest expenses were approximately even with the fourth quarter of 2006.

Loans, excluding mortgage warehouse loans and the sale of $490 million of residential mortgage loans, grew 3% from March 31, 2006 and were even with December 31, 2006.

Period end deposits grew by $292 million, or 7% annualized, over December 31, 2006. Noninterest bearing checking accounts grew by 13% annualized over December 31, 2006. Average deposits, excluding brokered deposits, increased 5% over the first quarter of 2006 and 2% annualized over the fourth quarter of 2006.

 

3


In January, Colonial announced plans to acquire Commercial Bankshares, Inc. (Commercial) and its bank subsidiary Commercial Bank of Florida, headquartered in Miami, Florida. At March 31, 2007, Commercial had $1 billion in assets, $838 million in deposits and 14 locations in south Florida. “The acquisition of Commercial is reflective of our strategy to acquire high quality, well-run institutions which add convenience and enhance our revenue generating capability in our existing markets. Pending shareholder and regulatory approvals, we expect the merger to be completed by June 30, 2007,” said Mr. Lowder.

Effective January 1, 2007, Colonial elected early adoption of Statements of Financial Accounting Standards (SFAS) Nos. 157 and 159, which permit the measurement of selected eligible financial instruments at fair value at specified election dates. The adoption of SFAS No. 159 is expected to provide Colonial with greater flexibility to extinguish high rate debt and to sell lower yielding assets which the Company anticipates will improve the Company’s profitability for 2007 and in future periods.

Colonial BancGroup operates over 300 branches in Florida, Alabama, Georgia, Nevada and Texas with more than $23 billion in assets. The Company’s common stock is traded on the New York Stock Exchange under the symbol CNB and is located online at www.colonialbank.com. In most newspapers, the stock is listed as ColBgp.

Colonial’s management has scheduled a conference call on April 18, 2007 at 3 p.m. ET to discuss the earnings results for the first quarter. Individuals are encouraged to listen to the live webcast and view a slide presentation that will be available on Colonial’s web site at www.colonialbank.com. The webcast will be hosted under “Events and Presentations” located under the “Investor Relations” section of the website. To participate in the Q&A session of the conference call, dial (800) 819-9193 (Domestic Toll-Free) or (913) 981-4911 (Toll International), (Leader: Lisa Free). A replay of the conference call will be available beginning at 6 p.m. ET on April 18, 2007 and ending at midnight on April 25, 2007 by dialing (888) 203-1112 (Domestic Toll-Free) or (719) 457-0820 (Toll International). The passcode for both numbers is 4679607.

 

4


This release includes “forward-looking statements” within the meaning of the federal securities laws. Words such as “believes,” “estimates,” “plans,” “expects,” “should,” “may,” “might,” “outlook,” “potential” and “anticipates,” the negative of these terms and similar expressions, as they relate to The Colonial BancGroup, Inc. (BancGroup) (including its subsidiaries or its management), are intended to identify forward-looking statements. The forward-looking statements in this release 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 release 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 and from non-banks;

 

   

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 2007 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;

 

   

the impact of recent and future federal and state regulatory changes;

 

   

current and future litigation, regulatory investigations, proceedings or inquiries;

 

   

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.

 

5


THE COLONIAL BANCGROUP, INC. AND SUBSIDIARIES

FINANCIAL HIGHLIGHTS (Unaudited)

 

Statement of Condition Summary

(Dollars in millions)

   Mar 31,
2007
   Mar 31,
2006
   % Change
Mar 31,
‘06 to ‘07
 

Total assets

   $ 23,073    $ 21,969    5 %

Total loans, net:

        

Mortgage warehouse loans

     167      436    -62 %

Loans, excluding mortgage warehouse loans

     14,755      14,846    -1 %

Total securities

     3,394      2,869    18 %

Non-time deposits

     9,409      9,295    1 %

Total deposits

     16,383      15,855    3 %

Shareholders’ equity

     2,084      1,947    7 %

 

     Three Months Ended        

Earnings Summary

(In thousands, except per share amounts)

   Mar 31,
2007
    Mar 31,
2006
    % Change
Mar 31,
‘06 to ‘07
 

Net Income:

      

Net interest income

   $ 180,830     $ 188,160     -4 %

Provision for loan losses

     2,250       12,342     -82 %

Core noninterest income

     46,240       41,501     11 %

Securities, derivatives and debt gains(losses), net

     3,044       4,228     -28 %

Gain on sale of mortgage loans

     3,850       —       NM  

Gain on sale of Goldleaf

     —         2,829     NM  
                  

Total noninterest income

     53,134       48,558     9 %

Noninterest expense excluding the following items:

     130,291       125,861     4 %

Merger related expenses

     429       —       NM  

Severance expense

     3,025       —       NM  
                  

Total noninterest expense

     133,745       125,861     6 %

Income before tax

     97,969       98,515     -1 %

Income tax

     32,722       33,495     -2 %
                  

Net Income

   $ 65,247     $ 65,020     0 %

EARNINGS PER SHARE:

      

Net Income

      

Basic

   $ 0.43     $ 0.42     2 %

Diluted

   $ 0.43     $ 0.42     2 %

Average shares outstanding

     152,309       153,968    

Average diluted shares outstanding

     153,450       155,183    

KEY RATIOS:

      

Net interest margin

     3.48 %     3.86 %   -10 %

Book value per share

   $ 13.63     $ 12.61     8 %

Dividends paid per share

   $ 0.1875     $ 0.1700     10 %


THE COLONIAL BANCGROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

 

Earnings Summary

(Dollars in thousands, except per share amounts)

   1st Qtr.
2007
    4th Qtr.
2006
    3rd Qtr.
2006
    2nd Qtr.
2006
    1st Qtr.
2006
 

Net interest income

   $ 180,830     $ 184,468     $ 190,552     $ 192,087     $ 188,160  

Provision for loan loss

     2,250       3,400       1,450       4,950       12,342  

Noninterest income:

          

Service charges on deposit accounts

     17,679       18,884       16,642       15,332       14,213  

Electronic banking

     4,401       4,356       4,470       4,279       4,107  

Other retail banking fees

     3,612       3,543       3,618       3,754       3,521  
                                        

Retail banking fees

     25,692       26,783       24,730       23,365       21,841  

Financial planning services

     3,822       3,316       3,944       3,665       3,129  

Mortgage banking

     3,187       3,706       3,154       3,783       2,897  

Mortgage warehouse fees

     6,955       6,935       6,105       6,021       6,262  

Bank-owned life insurance

     4,955       3,797       4,242       3,976       3,939  

Goldleaf income

     —         —         —         —         1,171  

Other income

     1,629       4,904       3,631       4,063       2,262  
                                        

Core noninterest income

     46,240       49,441       45,806       44,873       41,501  

Securities, derivatives and debt gains(losses), net

     3,044       388       156       —         4,228  

Gain on sale of mortgage loans

     3,850       —         —         —         —    

Gain on sale of Goldleaf

     —         —         —         —         2,829  
                                        

Total noninterest income

     53,134       49,829       45,962       44,873       48,558  

Noninterest expense:

          

Salaries and employee benefits

     69,554       67,432       72,472       70,915       68,793  

Severance expense

     3,025       413       —         —         —    

Occupancy expense of bank premises, net

     18,505       18,210       17,188       16,406       15,534  

Furniture and equipment expense

     13,122       12,953       12,333       11,907       11,392  

Professional services

     4,767       5,398       4,340       4,917       4,435  

Amortization of intangibles

     3,051       3,050       3,051       3,051       3,057  

Advertising

     2,215       2,514       2,278       3,103       2,887  

Merger related expenses

     429       —         —         —         —    

Other expense

     19,077       20,559       20,323       20,927       19,763  
                                        

Total noninterest expense

     133,745       130,529       131,985       131,226       125,861  

Income before tax

     97,969       100,368       103,079       100,784       98,515  

Income tax

     32,722       34,125       35,047       34,266       33,495  
                                        

Net Income

   $ 65,247     $ 66,243     $ 68,032     $ 66,518     $ 65,020  
                                        

Earnings per share - Diluted

   $ 0.43     $ 0.43     $ 0.44     $ 0.43     $ 0.42  
                                        

Selected ratios

          

Return on average assets*

     1.15 %     1.16 %     1.19 %     1.21 %     1.23 %

Return on average equity*

     12.91 %     12.85 %     13.51 %     13.58 %     13.44 %

Efficiency ratio(1)

     57.39 %     55.55 %     55.79 %     55.31 %     54.73 %

Noninterest income(1)/ avg assets*

     0.81 %     0.86 %     0.80 %     0.82 %     0.78 %

Noninterest expense(1)/ avg assets*

     2.27 %     2.29 %     2.33 %     2.39 %     2.34 %

Net interest margin

     3.48 %     3.53 %     3.64 %     3.81 %     3.86 %

Equity to assets

     9.03 %     9.03 %     9.03 %     8.53 %     8.86 %

Tier one leverage

     7.40 %     7.81 %     7.65 %     7.90 %     7.88 %

Tangible capital ratio

     6.31 %     6.26 %     6.20 %     5.74 %     5.94 %

(1) These ratios utilize core noninterest income and noninterest expense excluding severance expense.
* Annualized


THE COLONIAL BANCGROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CONDITION (Unaudited)

 

STATEMENTS OF CONDITION

(Dollars in thousands)

  

Mar 31,

2007

   

Dec 31,

2006

   

Sept 30,

2006

   

June 30,

2006

   

Mar 31,

2006

 

Assets:

          

Cash and due from banks

   $ 359,233     $ 425,148     $ 371,898     $ 393,945     $ 449,556  

Interest bearing deposits in banks, federal funds sold

     238,105       17,534       84,484       168,696       32,092  

Securities purchased under agreements to resell - MWL

     827,610       605,937       593,572       609,262       578,743  

Securities purchased under agreements to resell - Other

     500,000       —         —         —         —    

Held to maturity securities

     1,570       1,874       1,971       2,547       2,656  

Securities available for sale

     2,194,175       3,083,614       2,958,472       2,863,833       2,866,513  

Trading securities

     1,198,606       —         —         —         —    

Loans held for sale

     1,113,998       1,474,000       1,322,318       1,873,025       1,227,520  

Total loans, net:

          

Mortgage warehouse loans

     166,552       281,693       282,985       371,787       436,248  

Loans, excluding mortgage warehouse loans

     14,754,924       15,197,196       15,232,710       15,174,136       14,845,657  

Less: Allowance for loan losses

     (172,602 )     (174,850 )     (176,117 )     (177,139 )     (173,632 )
                                        

Loans, net

     14,748,874       15,304,039       15,339,578       15,368,784       15,108,273  

Premises and equipment, net

     426,893       407,696       372,980       356,619       348,023  

Intangible assets, net

     671,282       674,333       677,383       680,477       683,234  

Bank-owned life insurance

     462,238       457,812       354,004       350,998       348,325  

Accrued interest and other assets

     330,263       332,262       335,903       342,647       323,603  
                                        

Total Assets

   $ 23,072,847     $ 22,784,249     $ 22,412,563     $ 23,010,833     $ 21,968,538  
                                        

Liabilities and Shareholders’ Equity:

          

Noninterest bearing transaction accounts

   $ 2,964,585     $ 2,869,845     $ 2,849,718     $ 3,639,310     $ 3,107,338  

Interest bearing transaction accounts

     6,444,194       6,222,818       6,188,859       6,137,708       6,187,503  
                                        

Total non-time deposits

     9,408,779       9,092,663       9,038,577       9,777,018       9,294,841  

Time deposits

     6,532,932       6,596,827       6,473,436       6,263,428       5,871,746  

Brokered time deposits

     441,012       401,564       283,199       488,713       688,741  
                                        

Total deposits

     16,382,723       16,091,054       15,795,212       16,529,159       15,855,328  

Repurchase agreements

     768,705       832,672       882,561       948,327       938,170  

Federal funds purchased and other short-term borrowings

     511,076       1,133,000       1,285,000       1,136,893       956,725  

Long-term debt

     3,071,260       2,522,273       2,278,391       2,296,326       2,106,998  

Other liabilities

     254,645       147,915       147,298       138,113       164,381  
                                        

Total liabilities

     20,988,409       20,726,914       20,388,462       21,048,818       20,021,602  

Total shareholders’ equity

     2,084,438       2,057,335       2,024,101       1,962,015       1,946,936  
                                        

Total Liabilities and Shareholders’ Equity

   $ 23,072,847     $ 22,784,249     $ 22,412,563     $ 23,010,833     $ 21,968,538  
                                        

Common Shares Issued

     156,662,992       156,258,708       156,196,005       156,013,266       155,788,685  

Common Shares Outstanding

     152,954,065       152,852,381       153,265,378       154,653,339       154,428,758  

 


THE COLONIAL BANCGROUP, INC. AND SUBSIDIARIES

 

     Three Months Ended  
AVERAGE VOLUME AND RATES
(unaudited)
  

March 31,

2007

   

December 31,

2006

   

March 31,

2006

 

(Dollars in thousands)

   Average
Volume
   Interest     Rate     Average
Volume
   Interest     Rate     Average
Volume
   Interest     Rate  

Assets:

                     

Loans, excluding mortgage warehouse loans, net of unearned income (2)

   $ 15,153,371    $ 289,572     7.74 %   $ 15,210,508    $ 296,732     7.75 %   $ 14,576,424    $ 264,653     7.35 %

Mortgage warehouse loans

     195,951      3,902     8.08 %     252,583      5,069     7.96 %     417,913      5,811     5.64 %

Loans held for sale (2)

     1,287,027      21,981     6.93 %     1,460,508      25,390     6.90 %     1,124,866      18,006     6.49 %

Securities (2)

     3,225,107      43,587     5.41 %     3,169,289      41,103     5.19 %     2,901,936      36,205     4.99 %

Securities purchased under agreements to resell - MWL

     639,052      11,023     7.00 %     593,989      10,488     7.01 %     606,062      9,477     6.34 %

Securities purchased under agreements to resell - Other

     419,444      6,941     6.68 %     —        —       0.00 %     —        —       0.00 %

Other interest earning assets

     97,005      1,171     4.90 %     125,954      1,695     5.34 %     76,871      840     4.43 %
                                                   

Total interest earning assets (1)

     21,016,957    $ 378,177     7.28 %     20,812,831    $ 380,477     7.27 %     19,704,072    $ 334,992     6.87 %
                                       

Nonearning assets (2)

     2,032,481          1,920,659          1,813,076     
                                 

Total assets

   $ 23,049,438        $ 22,733,490        $ 21,517,148     
                                 

Liabilities and Shareholders’ Equity:

                     

Interest bearing non-time deposits

   $ 6,313,784    $ 48,481     3.11 %   $ 6,163,786    $ 49,059     3.16 %   $ 6,036,232    $ 35,021     2.35 %

Time deposits (2)

     6,872,764      84,603     4.99 %     6,889,267      84,038     4.84 %     6,525,529      64,947     4.04 %
                                                           

Total interest bearing deposits

     13,186,548      133,084     4.09 %     13,053,053      133,097     4.05 %     12,561,761      99,968     3.23 %

Repurchase agreements

     763,461      8,555     4.54 %     852,918      9,827     4.57 %     874,665      8,117     3.76 %

Federal funds purchased and other short-term borrowings

     1,164,191      15,277     5.32 %     1,198,104      16,030     5.31 %     650,394      7,270     4.53 %

Long-term debt (2)

     2,941,646      39,715     5.46 %     2,526,515      36,730     5.78 %     2,294,318      31,160     5.49 %
                                                           

Total interest bearing liabilities

     18,055,846    $ 196,631     4.41 %     17,630,590    $ 195,684     4.41 %     16,381,138    $ 146,515     3.62 %
                                           

Noninterest bearing demand deposits

     2,780,374          2,886,424          3,033,596     

Other liabilities (2)

     164,056          171,297          140,298     
                                 

Total liabilities

     21,000,276          20,688,311          19,555,032     

Shareholders’ equity

     2,049,162          2,045,179          1,962,116     
                                 

Total liabilities and shareholders’ equity

   $ 23,049,438        $ 22,733,490        $ 21,517,148     
                                 

Rate differential

        2.87 %        2.86 %        3.25 %

Net yield on interest-earning assets on a tax equivalent basis

      $ 181,546     3.48 %      $ 184,793     3.53 %      $ 188,477     3.86 %

Taxable equivalent adjustments:

                     

Loans

        (146 )          (94 )          (83 )  

Securities

        (570 )          (231 )          (234 )  
                                       

Total taxable equivalent adjustments

      $ (716 )        $ (325 )        $ (317 )  
                                       

Net interest income

      $ 180,830          $ 184,468          $ 188,160    
                                       

TOTAL AVERAGE DEPOSITS

                     

Total interest bearing deposits

   $ 13,186,548    $ 133,084     4.09 %   $ 13,053,053    $ 133,097     4.05 %   $ 12,561,761    $ 99,968     3.23 %

Noninterest bearing demand deposits

     2,780,374      —       —         2,886,424      —       —         3,033,596      —       —    
                                                   

Total average deposits

   $ 15,966,922    $ 133,084     3.38 %   $ 15,939,477    $ 133,097     3.31 %   $ 15,595,357    $ 99,968     2.60 %
                                                   

(1) Interest earned and average rates on securities and loans exempt from income taxes are reflected on a fully tax equivalent basis using a federal income tax rate of 35%, net of nondeductible interest expense.
(2) Unrealized gains(losses) on available for sale securities, the adjustments for mark to market valuations on hedged assets and liabilities and accrued interest on instruments carried at fair value have been classified in either nonearning assets or other liabilities.


THE COLONIAL BANCGROUP, INC. AND SUBSIDIARIES

ASSET QUALITY (unaudited)

 

RATIOS

   March 31,
2007
    Dec 31,
2006
    Sept 30,
2006
    June 30,
2006
    March 31,
2006
 

Period end:

          

Allowance as a percent of net loans

     1.16 %     1.13 %     1.14 %     1.14 %     1.14 %

Total nonperforming assets as a percent of net loans and nonperforming assets

     0.22 %     0.16 %     0.10 %     0.18 %     0.24 %

Allowance as a percent of nonperforming assets

     525 %     695 %     1120 %     649 %     468 %

Allowance as a percent of nonperforming loans

     601 %     1247 %     1366 %     802 %     519 %

Net charge-offs as a percent of average net loans:

          

Quarter to date (annualized)

     0.06 %     0.12 %     0.06 %     0.04 %     0.26 %

Year to date (annualized)

     0.06 %     0.12 %     0.12 %     0.15 %     0.26 %

NONPERFORMING ASSETS

(Dollars in thousands)

   March 31,
2007
    Dec 31,
2006
    Sept 30,
2006
    June 30,
2006
    March 31,
2006
 

Nonaccrual loans

   $ 28,721     $ 14,025     $ 12,765     $ 21,957     $ 33,287  

Restructured loans

     —         —         128       137       145  
                                        

Total nonperforming loans

     28,721       14,025       12,893       22,094       33,432  

Other real estate owned

     4,134       1,869       2,826       5,208       3,633  

Loans held for sale

     —         9,255       —         —         —    
                                        

Total nonperforming assets

   $ 32,855     $ 25,149     $ 15,719     $ 27,302     $ 37,065  
                                        

Aggregate loans contractually past due 90 days for which interest is being accrued

   $ 6,247     $ 8,138     $ 6,875     $ 8,608     $ 8,384  

Total charge-offs

   $ 3,542     $ 6,301     $ 6,809     $ 4,533     $ 13,136  

Total recoveries

     (1,347 )     (1,634 )     (4,337 )     (3,090 )     (3,375 )
                                        

Net charge-offs:

          

Quarter to date

   $ 2,195     $ 4,667     $ 2,472     $ 1,443     $ 9,761  

Year to date

   $ 2,195     $ 18,343     $ 13,676     $ 11,204     $ 9,761  

 


THE COLONIAL BANCGROUP, INC. AND SUBSIDIARIES

RECONCILIATION OF CERTAIN FINANCIAL MEASURES (unaudited)

 

RECONCILIATION OF CERTAIN FINANCIAL MEASURES

(Dollars in thousands)

                              

Period end loan growth:

          

Loans, excluding mortgage warehouse loans at March 31, 2006

   $ 14,845,657          

Excluding:

          

Residential real estate loans sold in 1st Qtr. 2007

     (489,625 )        
                

Loans, excluding mortgage warehouse loans at March 31, 2006 as adjusted

   $ 14,356,032          

Organic loan growth

     398,892          
                

Loans, excluding mortgage warehouse loans at March 31, 2007

   $ 14,754,924          

Organic loan growth % change

     3 %        

Average deposit growth:

  

1st Qtr.

2007

   

1st Qtr.

2006

    % Change    

4th Qtr.

2006

    Annualized
% Change
 

Average total deposits

   $ 15,966,922     $ 15,595,357       $ 15,939,477    

Excluding:

          

Brokered deposits

     (401,432 )     (799,393 )       (437,414 )  
                            

Average total deposits as adjusted

   $ 15,565,490     $ 14,795,964     5 %   $ 15,502,063     2 %

Period end mortgage warehouse assets under management:

  

Mar 31,

2007

   

Mar 31,

2006

    % Change    

Dec 31,

2006

    % Change  

Securities purchased under agreements to resell - MWL

   $ 827,610     $ 578,743     43 %   $ 605,937     37 %

Loans held for sale

     1,062,388       1,186,556     -10 %     1,422,980     -25 %

Mortgage warehouse loans

     166,552       436,248     -62 %     281,693     -41 %
                                    

Total mortgage warehouse assets on balance sheet

     2,056,550       2,201,547     -7 %     2,310,610     -11 %

Securitization of mortgage warehouse assets

     2,000,000       1,500,000     33 %     2,000,000     —    
                                    

Total mortgage warehouse assets under management

   $ 4,056,550     $ 3,701,547     10 %   $ 4,310,610     -6 %