First Quarter 2007

Earnings Overview

Exhibit 99.2

2

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,”

“potential”

and “anticipates,”

the negative of these terms 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

this

presentation

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 presentation 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 or 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.

3

1Q07 Highlights

Quarterly Earnings Per Share of $0.43, up 2% over 1Q06

Core Noninterest

Income increased 11% over 1Q06

Loans grew 3%

1

over 1Q06

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

Allowance for loan losses increased to 1.16% of loans –

525% of

nonperforming assets

1

Excluding Mortgage Warehouse Lending and sale of residential

real estate loans

4

Excellent Credit Quality

Credit Quality remains excellent

No subprime

products

Annualized Net Charge-Off Ratio was 0.06%

of average loans

for the

quarter compared to 0.26% for 1Q06 and 0.12% for 4Q06

Increased the allowance for loan losses to 1.16% of total loans,

compared to 1.13% at 12/31/06

The allowance was 525% of nonperforming assets

5

Summary of Loan Loss Experience

2003 –

1Q07

1

Annualized

1Q07

2006

2005

2004

2003

Reserve Ratio to Net Loans

1.16%

1.13%

1.15%

1.16%

1.20%

Reserve

$172,602

$174,850

$171,051

$148,802

$138,549

Coverage of Nonperforming Assets

525%

695%

536%

402%

184%

Net Charge-off Ratio to Average Loans

0.06%

1

0.12%

0.14%

0.19%

0.31%

Net Charge-offs

$2,195

$18,343

$19,211

$23,598

$35,471

Years of Net Charge-offs in Reserve

19.66

1

9.53

8.90

6.31

3.91

Nonperforming Assets

$32,855

$25,149

$31,931

$37,039

$75,440

Ratio of Nonperforming Assets to Net Loans

0.22%

0.16%

0.21%

0.29%

0.65%

6

Our portfolio is diversified by property type, location and borrower.

We loan to builders and developers who have a substantial level of

expertise within their markets, and they personally support the deal

through their guarantees and financial strength.

Our average builder/developer has been a long time customer with

expertise in the industry. They have successfully been through real

estate cycles in the past. It is evident that they are taking appropriate

actions during this market cycle:

working through inventory

slowing new starts

requiring more presales

diversifying into other areas of real estate

Construction Lending Strengths

7

In order to mitigate the risk of higher inventory levels, Colonial has

focused on:

high presale levels

equity

strong guarantor support

lower price points

market support (i.e., in Florida we target having a minimum of 75% pre-sales)

We closely monitor all inventory levels and project status

Commercial real estate within our markets remains very strong and is 

projected to remain strong with solid occupancy and rental rates

Thus far, any problems we have experienced have been isolated

Construction Lending Strengths (continued)

8

We do not offer subprime

lending products

We do not offer low document, stated income, “Option ARMs”

or “Pick

a Payment”

products

All ARM loans are underwritten with rate increases already factored in

Our past dues and charge-offs within this portfolio remain very low

and compare favorably to the industry

1-4 Family Residential Real Estate Portfolio

9

Outstanding loans, excluding mortgage loans sold and mortgage

warehouse, remained stable during the quarter

The slow down in loan growth was due to:

•

Loan

demand

within

the

residential

sector

has

slowed

as

builders

and

developers

have

pulled back and adjusted to the market conditions.

•

In

mid-2006,

Colonial

recognized

a

possible

slowdown

in

the

residential

market.

As

a

result, we have been very selective on all new loan requests.

•

Furthermore, our strategy is to exit problem relationships or potential problem

relationships very quickly.

•

Liquidity in the market continues to be strong.  We are experiencing large payoffs of

loans as projects are sold or moved to the secondary market.

We expect slow loan growth throughout the remainder of 2007

Colonial is focusing its efforts on growing the commercial real estate

portfolio, C&I and commercial construction. We continue to finance

strong residential development projects which have guarantor and

market support.

Loan Growth

10

Mortgage Warehouse Lending

$4.1 billion in assets under management at 3/31/07; $2 billion sold to

third-party commercial paper conduits

Mortgage Warehouse Lending customers are mortgage companies

which originate primarily “A”

paper

Colonial is not the primary funding source of subprime

originations

Colonial manages the collateral files on substantially all outstandings

Average FICO score on Colonial’s collateral is approximately 700

Investor requests to our customers to repurchase loans have not

trended up

Closely monitor aging on collateral

11

$1.06

$1.26

$1.16

$1.31

$1.52

$1.72

2001

2002

2003

2004

2005

2006

$0.42

$0.43

1Q06

1Q07

(diluted)

Consistent Earnings Per Share Growth

5 Year CAGR = 10%

2001 -

2006

19%

(8)%

13%

16%

13%

2%

12

$422

$455

$495

$567

$709

$755

$188

$181

2001

2002

2003

2004

2005

2006

1Q06

1Q07

Net Interest Income

($ in millions)

8%

9%

15%

25%

3 Year CAGR = 15%

2003 -

2006

79%

6%

3.57%     3.55%     3.38%     3.52%     3.75%     3.71%   

3.86%

3.48%

Net Interest

Margin

13

Net Interest Income and Margin

($ in millions)

Tax

Equivalent

NII

NIM

4Q06

184.8

$      

3.53%

Deposit Mix Change

(2.6)

-0.05%

Impact of Trust Preferred Redemption

0.4

0.01%

Spread Compression on Earning Assets

1.0

-0.01%

Day Count

(2.1)

-

1Q07

181.5

$      

3.48%

14

Interest rate risk position has been managed to a neutral position

Sold $490 million of adjustable rate residential real estate loans (ARMs)

on March 30 which yielded 6.04%

Marked the following financial instruments to fair value on January 1,

2007 as a result of adopting SFAS 159:

$1.2

billion

of

available

for

sale

securities

which

yielded

4.78%

-

resulted

in

a

reclassification

of a $26 million after tax loss from accumulated other comprehensive income to retained

earnings.  The securities were sold in April at no additional gain or loss. 

$383 million of debt which resulted in a cumulative effect adjustment (loss) of approximately

$15

million,

net

of

tax,

which

reduced

shareholders’

equity

-

Redeemed $70 million on February 2, 2007, interest rate of 8.92%

Changes in fair value during the first quarter resulted in a gain of $2 million

The adoption of SFAS 159 increases the Company’s flexibility to manage its interest rate risk

position and is expected to increase the Company’s net interest income, net interest margin

and earnings in 2007 and in future periods. 

Continue to focus on increasing consumer and business checking

accounts

Net Interest Income Management

15

$15,967

$15,595

$15,788

$8,433

$8,734

$9,419

$10,862

$13,988

2001

2002

2003

2004

2005

2006

1Q06

1Q07

Average Deposits

4%

8%

15%

1

Excluding acquisitions, sale of branches, and brokered deposits

($ in millions)

13%

1

29%

3 Year CAGR = 19%

2003 -

2006

87%

13%

2%

5%

1

16

Noninterest Income

1Q07

4Q06

1Q06

4Q06

1Q06

Service charges on deposit accounts

17.7

$

18.9

$    

14.2

$    

-6%

25%

Electronic banking

4.4

4.4

4.1

-

7%

Other retail banking fees

3.6

3.5

3.5

3%

3%

        Retail Banking Fees

25.7

26.8

21.8

-4%

18%

Financial planning services

3.8

3.3

3.1

15%

22%

Mortgage banking

3.2

3.7

2.9

-14%

10%

Mortgage warehouse fees

6.9

6.9

6.3

-

10%

Bank-owned life insurance

4.9

3.8

3.9

29%

26%

Goldleaf income

-

-

1.2

-

-100%

Other income

1.7

4.9

2.3

-65%

-26%

        Core Noninterest Income

46.2

49.4

41.5

-6%

11%

Gain on sale of residential real estate loans

3.9

-

-

100%

100%

Securities, derivatives and debt gains, net

3.0

0.4

4.2

650%

-28%

Gain on sale of Goldleaf

-

-

2.8

-

-100%

        Total Noninterest Income

53.1

$

49.8

$    

48.5

$    

7%

9%

Annualized Noninterest Income to Average Assets

0.81%

0.86%

0.78%

Noninterest Income to Total Revenue

20.4%

21.1%

18.1%

% Change

($ in millions)

1

Core noninterest income was used in the calculation

1

1

17

$62.9

$74.6

$82.4

$87.6

$96.7

$21.8

$25.7

2002

2003

2004

2005

2006

1Q06

1Q07

Retail Banking Fees

($ in millions)

18%

19%

10%

6%

10%

18

Noninterest Expense

($ in millions)

1

Core

noninterest

(see

components

of

core

noninterest

income

on

noninterest

income

slide)

and

total

noninterest

expense

excluding

severance

are

used

in

the

calculation

1Q07

4Q06

1Q06

4Q06

1Q06

Salaries and employee benefits

69.6

$  

67.4

$ 

68.8

$ 

3%

1%

Severance expense

3.0

0.4

-

650%

100%

Occupancy expense of bank premises, net

18.5

18.2

15.5

2%

19%

Furniture and equipment expense

13.1

13.0

11.4

1%

15%

Professional services

4.8

5.4

4.4

-11%

9%

Amortization of intangibles

3.1

3.1

3.1

-

-

Advertising

2.2

2.5

2.9

-12%

-24%

Communications

3.0

2.9

2.6

3%

15%

Electronic banking expense

1.7

1.7

1.3

-

31%

Merger related expense

0.4

-

-

100%

100%

Operating supplies

1.0

1.2

1.4

-17%

-29%

Other expense

13.3

14.7

14.5

-10%

-8%

Total Noninterest

Expense

133.7

$

$130.5

$125.9

2%

6%

Efficiency Ratio

1

57.39%

55.55%

54.73%

Annualized Noninterest

Expense to Average Assets

1

2.27%

2.29%

2.34%

% Change

19

Solid Earnings Per Share of $0.43, up 2% over 1Q06

Excellent Credit Quality

Strong Fee Income growth and effective expense management

Increased dividend to $0.1875 per quarter -

$0.75 estimate for 2007

Forbes

Platinum 400 List of Best Large Companies in America

Summary

20

$.15

$.16

$.17

$.18

$.20

$.22

$.27

$.30

$.34

$.38

$.44

$.48

$.52

$.56

$.58

$.61

$.68

$.75*

$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

'07

17 YEARS OF INCREASED DIVIDENDS 

Solid Dividend Growth

*Estimated

10%

21

Supplemental Information

22

Summary Income Statement

1Q07

4Q06

1Q06

4Q06

1Q06

Net interest income

180.8

$    

184.5

$    

188.2

$    

-2%

-4%

Core noninterest income

46.2

49.4

41.5

-6%

11%

   Total Revenue

227.0

233.9

229.7

-3%

-1%

Provision for loan losses

2.2

3.4

12.3

-35%

-82%

Gain on sale of residential real estate loans

3.9

-

-

100%

100%

Securities, derivatives and debt gains, net

3.0

0.4

4.2

650%

-28%

Gain on sale of Goldleaf

-

-

2.8

-

-100%

Noninterest expense, excluding severance

130.7

130.1

125.9

-

4%

Severance expense

3.0

0.4

-

650%

100%

   Pretax Income

98.0

100.4

98.5

-2%

-1%

Income tax expense

32.7

34.1

33.5

-4%

-2%

   Net Income

65.3

$     

66.3

$     

65.0

$     

-2%

-

Earnings Per Share - Diluted

0.43

$     

0.43

$     

0.42

$     

Weighted Average Shares Outstanding - Diluted

153,450

153,580

155,183

% Change

($ in millions)

23

Average Balance Sheet

($ in millions)

1

Includes loans, loans held for sale and securities purchased under agreements to resell

2

Includes MWL assets and assets securitized

1Q07

4Q06

1Q06

4Q06

1Q06

Earning Assets

21,017

$  

20,813

$  

19,704

$  

1%

7%

Loans, excluding MWL

15,153

15,211

14,576

-

4%

MWL Assets

1

2,084

2,269

2,117

-8%

-2%

MWL Managed Assets

2

4,079

4,269

3,617

-4%

13%

Securities

3,225

3,169

2,902

2%

11%

Total Assets

23,049

22,733

21,517

1%

7%

Assets Under Management

25,044

24,733

23,017

1%

9%

Total Deposits

15,967

15,939

15,595

-

2%

Noninterest Bearing Deposits

2,780

2,886

3,034

-4%

-8%

Interest Bearing Transaction Accounts

6,314

6,164

6,036

2%

5%

Time Deposits

6,873

6,889

6,525

-

5%

Shareholders' Equity

2,049

2,045

1,962

-

4%

% Change

24

72%

1

of Colonial’s Deposits are in four states where the population is

expected to grow twice as fast as the rest of the U.S.* -

Florida,

Georgia, Nevada  and Texas

Branches, Assets and Deposits by State at 3/31/07 are as follows:

In the Right Places

$23.1 Billion in Assets

$16.4 Billion in Deposits

308 Branches

1

At 3/31/07

*Projected Population change from 2006-2011

Source: US Census Bureau

NV

15

TX

14

FL

170

GA

18

AL

91

FL

58%

AL

25%

TX

4%

GA

5%

NV

5%

Corp

3%

FL

56%

GA

6%

AL

19%

Corp

9%

TX

6%

NV

4%

25

Superior Projected Population Growth

2006 - 2011 Population Growth

Colonial BancGroup, Inc.

11.92

%

SunTrust Banks, Inc.

10.50

South Financial Group, Inc.

9.90

Compass Bancshares, Inc.

9.88

Synovus Financial Corp.

8.99

Wachovia Corporation

8.61

BB&T Corporation

7.94

Whitney Holding Corporation

7.38

Bank of America Corporation

6.79

Regions Financial Corporation

6.69

Trustmark Corporation

5.21

BancorpSouth, Inc.

4.80

First Horizon National Corporation

4.42

Fifth Third Bancorp

4.30

Median

7.66

%

Low

4.30

High

11.92

Source: SNL Financial.

Deposit data as of 6/30/06.

Population growth deposit weighted by county.

26

0.65%

0.78%

0.64%

0.54%

0.55%

0.60%

0.71%

0.84%

0.85%

0.22%

0.29%

0.21%

0.78%

1.17%

1.25%

0.16%

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

'06

3/31/07

All FDIC Insured Commercial Banks

Colonial BancGroup

(as originally reported)

NPAs Consistently Below Industry

27

0.47%

0.49%

0.09%

0.19%

0.12%

0.14%

0.33%

0.13%

0.18%

0.06%

0.23%

0.26%

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

'06

3/31/07

All FDIC Insured Commercial Banks

Southern Regionals*

Colonial BancGroup

Net Charge-Offs/Average Loans

*Source: KBW

(as originally reported)

Low Loss Ratio

1

Annualized

1