Exhibit 99.1

PRESS RELEASE

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

COLONIAL BANCGROUP ANNOUNCES

EARNINGS OF $0.43 PER DILUTED SHARE

FOR THE SECOND QUARTER OF 2007

SECOND QUARTER 2007 HIGHLIGHTS:

• EPS of $0.43

• Net interest margin expanded 20 basis points to 3.66% from the first quarter of 2007

• Core noninterest income increased 18% over the same quarter of the prior year

• Continued excellent credit quality - Nonperforming assets ratio of 0.29%; Annualized net charge-off ratio of 0.20% for the quarter and 0.13% for the first six months

• Improved efficiency ratio of 56.20%

• Successful acquisition and integration of Commercial Bankshares, Inc.; Florida deposits now exceed $10 billion

MONTGOMERY, AL. - The Colonial BancGroup, Inc. Chairman, CEO and President, Robert E. Lowder, announced today that the Company’s earnings for the quarter ended June 30, 2007 were $0.43 per diluted share. Net income for the quarter was $66 million.

Colonial’s net interest income for the quarter increased 6% over the first quarter of 2007. The strong increase in net interest income was attributable to a 20 basis point increase in the Company’s net interest margin primarily as a result of the sale of low yielding investments and

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the corresponding reduction in wholesale borrowings at the beginning of the quarter. The net interest margin increased to 3.66% for the quarter, up from 3.46% for the first quarter of 2007.

In June 2007, the Company completed the acquisition and integration of Commercial Bankshares, Inc. of Florida (CLBK), headquartered in Miami, Florida. CLBK had $1.1 billion in assets and $824 million in deposits on the date of acquisition. “Our recent acquisition of Commercial reflects our strategy to selectively acquire high quality banks which will expand and enhance Colonial’s revenue generating capability in some of the fastest growing markets in the country,” said Mr. Lowder.

Average deposits, excluding the impact of the acquisition of Commercial Bankshares, Inc., grew $225 million or 6% annualized from the first quarter of 2007. Significantly, average noninterest bearing transaction accounts grew 15% annualized over the first quarter of 2007, excluding the acquisition. “The excellent deposit growth reflects our effort to take advantage of the competitive opportunities in our markets caused by the mergers of other financial institutions. We are pleased with the growth in the Alabama franchise which grew average deposits by 10% annualized during the quarter,” said Mr. Lowder.

Average loans, excluding mortgage warehouse lending, first quarter loan sales and the acquisition, grew by $83 million or 2% annualized over the first quarter of 2007. Credit quality remained strong during the quarter. Colonial’s nonperforming assets ratio at June 30, 2007 was 0.29%. Annualized net charge-offs were 0.20% of average loans for the second quarter of 2007 and were 0.13% for the first six months of 2007. The allowance for loan losses was 1.15% of total loans and represented 391% of nonperforming assets at June 30, 2007.

“The news from the financial sector for the past three months has been largely focused on the sub-prime situation and has been decidedly gloomy. Some years ago at Colonial, we made the conscious decision not to enter the sub-prime business, and, fortunately, sub-prime issues don’t affect the Company. However, Colonial is not immune from current market conditions. The seven basis point increase in nonperforming assets and in net charge-offs over

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the first quarter speaks for itself, but we are pleased with that relatively small accretion. Naturally we have engaged in an extensive analysis of our entire asset portfolio, and because of our stringent underwriting standards, we do not currently see any systemic risk unique to Colonial. We continue to be committed to prudent management of credit risks,” said Mr. Lowder.

Average mortgage warehouse lending assets grew by $727 million or 35% over the first quarter of 2007. The mortgage warehouse division ended the quarter with record assets under management of $4.4 billion.

Core noninterest income, which excludes securities gains and losses, and gains on the sales of merchant services and mortgage loans, increased 14% over the first quarter of 2007 and 18% over the same quarter of the prior year. The increase over the first quarter was primarily from retail banking fees, financial planning services and income from joint venture activities. Total noninterest income included a $4.9 million gain on the sale of the Company’s merchant services business in the quarter. Colonial will continue to provide merchant services to its customers as an agent bank of Colonial’s third party service provider.

Core noninterest expense was $137.3 million in the current quarter which was a $7 million increase over the first quarter. The second quarter reflected one month of expenses from the Commercial Bankshares acquisition, $1.5 million of additional advertising costs and increases in other expenses. The Company’s efficiency ratio for core earnings improved from 57.38% in the first quarter of 2007 to 56.20% in the current quarter.

In late May, Colonial issued $300 million of REIT preferred securities with a 7.114% dividend rate. Colonial used a portion of the proceeds from the REIT preferred issuance to prepay $100 million of trust preferred securities which bore interest at 8.32%, resulting in the recognition of $2.5 million of net losses on the early extinguishment of debt.

Colonial also announced today, in a separate release, that it has entered into a definitive agreement to acquire Citrus & Chemical Bancorporation, Inc. (C&C). C&C is based in

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Lakeland, Florida, has total assets of $876 million, total deposits of $727 million and net loans of $514 million. C&C currently operates 10 full service offices in Polk county, located in the high growth I-4 corridor between Tampa and Orlando. Once completed, contingent on the usual approvals, this transaction will strengthen Colonial’s position as the fifth largest commercial bank in Florida with 192 branches, approximately $11 billion in deposits and $15.8 billion in assets in that state.

Colonial BancGroup operates 321 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 July 18, 2007 at 3 p.m. ET to discuss the earnings results for the second 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 (877) 502-9272 (Domestic Toll-Free) or (913) 981-5581 (Toll International), (Leader: Lisa Free). A replay of the conference call will be available beginning at 6 p.m. ET on July 18, 2007 and ending at midnight on July 23, 2007 by dialing (888) 203-1112 (Domestic Toll-Free) or (719) 457-0820 (Toll International). The passcode for both numbers is 3486760.

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 such 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;

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• 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.

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THE COLONIAL BANCGROUP, INC. AND SUBSIDIARIES

FINANCIAL HIGHLIGHTS (Unaudited)

Statement of Condition Summary (Dollars in millions)	June 30, 2007		Dec 31, 2006		% Change Dec ’06 to June ’07
Total assets	$	23,823	$	22,784	5	%
Loans, excluding mortgage warehouse loans		15,268		15,197	0	%
Mortgage warehouse assets		2,885		2,311	25	%
Mortgage warehouse assets under management		4,385		4,311	2	%
Total securities		2,720		3,085	-12	%
Non-time deposits		9,673		9,093	6	%
Total deposits		17,084		16,091	6	%
Shareholders’ equity		2,210		2,057	7	%

	Three Months Ended						% Change Mar ‘07 to June ‘07		Six Months Ended						% Change June 30, ’06 to ’07
Earnings Summary (In thousands, except per share amounts)	June 30, 2007			Mar 31, 2007					June 30, 2007			June 30, 2006
Net Income:
Net interest income	$	190,217		$	179,945		6	%	$	370,162		$	380,247		-3	%
Provision for loan losses		6,105			2,250		171	%		8,355			17,292		-52	%
Core noninterest income		52,765			46,394		14	%		99,159			86,374		15	%
Securities and derivatives gains, net		1,116			981		14	%		2,097			4,228		-50	%
Securities restructuring charges		—			(36,006	)	NM			(36,006	)		—		NM
Gain on sale of mortgage loans		—			3,850		NM			3,850			—		NM
Gain on sale of merchant services		4,900			—		NM			4,900			—		NM
Gain on sale of Goldleaf		—			—		NM			—			2,829		NM
Total noninterest income		58,781			15,219		286	%		74,000			93,431		-21	%
Core noninterest expense		137,336			130,291		5	%		267,627			257,087		4	%
Severance expense		520			3,025		-83	%		3,545			—		NM
Merger related expenses		1,116			429		160	%		1,545			—		NM
Net losses related to the early extinguishment of debt		2,512			4,396		-43	%		6,908			—		NM
Total noninterest expense		141,484			138,141		2	%		279,625			257,087		9	%
Minority interest expense/REIT preferred dividends		2,312			—		NM			2,312			—		NM
Income before tax		99,097			54,773		81	%		153,870			199,299		-23	%
Income tax		32,978			18,294		80	%		51,272			67,761		-24	%
Net Income	$	66,119		$	36,479		81	%	$	102,598		$	131,538		-22	%
DILUTED EARNINGS PER SHARE:
EPS - GAAP	$	0.43		$	0.24		79	%	$	0.66		$	0.85		-22	%
Restructuring charges, net of tax (1)		0.01			0.17					0.19			—
EPS - Excluding restructuring charges	$	0.44		$	0.41		7	%	$	0.85		$	0.85		0	%
Average diluted shares outstanding		155,176			153,450					154,336			155,304
KEY RATIOS:
Net interest margin		3.66	%		3.46	%	6	%		3.56	%		3.84	%	-7	%
Book value per share	$	14.04		$	13.71		2	%	$	14.04		$	12.69		11	%
Dividends paid per share	$	0.1875		$	0.1875		0	%	$	0.3750		$	0.3400		10	%

(1) Includes securities restructuring charges and net losses related to the early extinguishment of debt.

THE COLONIAL BANCGROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

	2nd Qtr. 2007			1st Qtr. 2007			4th Qtr. 2006			3rd Qtr. 2006			2nd Qtr. 2006			Six Months Ended
Earnings Summary (Dollars in thousands, except per share amounts)																June 30, 2007			June 30, 2006
Net interest income	$	190,217		$	179,945		$	184,468		$	190,552		$	192,087		$	370,162		$	380,247
Provision for loan loss		6,105			2,250			3,400			1,450			4,950			8,355			17,292
Noninterest income:
Service charges on deposit accounts		18,694			17,679			18,884			16,642			15,332			36,373			29,545
Electronic banking		4,648			4,401			4,356			4,470			4,279			9,049			8,386
Other retail banking fees		3,255			3,612			3,543			3,618			3,754			6,867			7,275
Retail banking fees		26,597			25,692			26,783			24,730			23,365			52,289			45,206
Financial planning services		4,283			3,822			3,316			3,944			3,665			8,105			6,794
Mortgage banking origination and sales		3,660			3,187			3,706			3,154			3,783			6,847			6,680
Mortgage warehouse fees		6,332			6,955			6,935			6,105			6,021			13,287			12,283
Bank-owned life insurance		5,002			4,955			3,797			4,242			3,976			9,957			7,915
Other income		6,891			1,783			4,904			3,631			4,063			8,674			7,496
Core noninterest income		52,765			46,394			49,441			45,806			44,873			99,159			86,374
Securities and derivatives gains, net		1,116			981			388			156			—			2,097			4,228
Securities restructuring charges		—			(36,006	)		—			—			—			(36,006	)		—
Gain on sale of mortgage loans		—			3,850			—			—			—			3,850			—
Gain on sale of merchant services		4,900			—			—			—			—			4,900			—
Gain on sale of Goldleaf		—			—			—			—			—			—			2,829
Total noninterest income		58,781			15,219			49,829			45,962			44,873			74,000			93,431
Noninterest expense:
Salaries and employee benefits		70,256			69,554			67,432			72,472			70,915			139,810			139,708
Occupancy expense of bank premises, net		18,722			18,505			18,210			17,188			16,406			37,227			31,940
Furniture and equipment expense		13,350			13,122			12,953			12,333			11,907			26,472			23,299
Professional services		4,628			4,100			4,773			4,340			4,917			8,728			9,352
Electronic banking and other retail banking expenses		5,507			4,212			4,418			3,061			3,103			9,719			6,041
Advertising		3,683			2,215			2,514			2,278			3,103			5,898			5,990
Amortization of intangible assets		3,201			3,051			3,050			3,051			3,051			6,252			6,108
Communications		2,900			2,991			2,919			2,838			2,501			5,891			5,088
Postage and courier		2,692			2,639			2,407			2,798			2,678			5,331			5,271
Travel		1,950			1,739			2,127			2,129			2,144			3,689			3,945
Other expense		10,447			8,163			9,313			9,497			10,501			18,610			20,345
Core noninterest expense		137,336			130,291			130,116			131,985			131,226			267,627			257,087
Severance expense		520			3,025			413			—			—			3,545			—
Merger related expenses		1,116			429			—			—			—			1,545			—
Net losses related to the early extinguishment of debt		2,512			4,396			—			—			—			6,908			—
Total noninterest expense		141,484			138,141			130,529			131,985			131,226			279,625			257,087
Minority interest expense/REIT preferred dividends		2,312			—			—			—			—			2,312			—
Income before tax		99,097			54,773			100,368			103,079			100,784			153,870			199,299
Income tax		32,978			18,294			34,125			35,047			34,266			51,272			67,761
Net Income	$	66,119		$	36,479		$	66,243		$	68,032		$	66,518		$	102,598		$	131,538
Earnings per share - Diluted	$	0.43		$	0.24		$	0.43		$	0.44		$	0.43		$	0.66		$	0.85
Selected ratios
Return on average assets*		1.15	%		0.64	%		1.16	%		1.19	%		1.21	%		0.90	%		1.22	%
Return on average equity*		12.24	%		7.15	%		12.85	%		13.51	%		13.58	%		9.77	%		13.51	%
Efficiency ratio(1)		56.20	%		57.38	%		55.55	%		55.77	%		55.31	%		56.77	%		55.02	%
Noninterest income(1)/ avg assets*		0.92	%		0.82	%		0.86	%		0.80	%		0.82	%		0.87	%		0.80	%
Noninterest expense(1)/ avg assets*		2.38	%		2.26	%		2.29	%		2.33	%		2.39	%		2.32	%		2.36	%
Net interest margin		3.66	%		3.46	%		3.53	%		3.64	%		3.81	%		3.56	%		3.84	%
Equity to assets		9.28	%		9.09	%		9.03	%		9.03	%		8.53	%
Tier one leverage		7.95	%		7.41	%		7.81	%		7.65	%		7.90	%
Tangible capital ratio		5.65	%		6.36	%		6.26	%		6.20	%		5.74	%

(1) These ratios utilize core noninterest income and core noninterest expense.

* Annualized

THE COLONIAL BANCGROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CONDITION (Unaudited)

STATEMENTS OF CONDITION (Dollars in thousands)	June 30, 2007			Mar 31, 2007			Dec 31, 2006			Sept 30, 2006			June 30, 2006
Assets:
Cash and due from banks	$	373,978		$	359,233		$	425,148		$	371,898		$	393,945
Interest bearing deposits in banks, federal funds sold		11,716			238,105			17,534			84,484			168,696
Securities purchased under agreements to resell - MWL		695,827			827,610			605,937			593,572			609,262
Securities purchased under agreements to resell - Other		500,000			500,000			—			—			—
Total securities (AFS and HTM)		2,720,205			3,386,146			3,085,488			2,960,443			2,866,380
Loans held for sale		2,040,352			1,113,998			1,474,000			1,322,318			1,873,025
Total loans, net:
Mortgage warehouse loans		189,354			166,552			281,693			282,985			371,787
Loans, excluding mortgage warehouse loans		15,267,693			14,754,924			15,197,196			15,232,710			15,174,136
Less: Allowance for loan losses		(178,274	)		(172,602	)		(174,850	)		(176,117	)		(177,139	)
Loans, net		15,278,773			14,748,874			15,304,039			15,339,578			15,368,784
Premises and equipment, net		464,911			426,893			407,696			372,980			356,619
Intangible assets, net		915,379			671,282			674,333			677,383			680,477
Bank-owned life insurance		467,240			462,238			457,812			354,004			350,998
Accrued interest and other assets		354,581			337,523			332,262			335,903			342,647
Total Assets	$	23,822,962		$	23,071,902		$	22,784,249		$	22,412,563		$	23,010,833
Liabilities and Shareholders’ Equity:
Noninterest bearing transaction accounts	$	3,166,851		$	2,964,585		$	2,869,845		$	2,849,718		$	3,639,310
Interest bearing transaction accounts		6,505,883			6,444,194			6,222,818			6,188,859			6,137,708
Total non-time deposits		9,672,734			9,408,779			9,092,663			9,038,577			9,777,018
Time deposits		7,052,084			6,532,932			6,596,827			6,473,436			6,263,428
Brokered time deposits		359,245			441,012			401,564			283,199			488,713
Total deposits		17,084,063			16,382,723			16,091,054			15,795,212			16,529,159
Repurchase agreements		613,289			768,705			832,672			882,561			948,327
Federal funds purchased and other short-term borrowings		535,320			511,076			1,133,000			1,285,000			1,136,893
Long-term debt		2,919,387			3,051,628			2,522,273			2,278,391			2,296,326
Other liabilities		167,937			261,442			147,915			147,298			138,113
Total liabilities		21,319,996			20,975,574			20,726,914			20,388,462			21,048,818
Minority interest/REIT preferred securities		293,278			—			—			—			—
Total shareholders’ equity		2,209,688			2,096,328			2,057,335			2,024,101			1,962,015
Total Liabilities and Shareholders’ Equity	$	23,822,962		$	23,071,902		$	22,784,249		$	22,412,563		$	23,010,833
Common Shares Issued		163,102,683			156,662,992			156,258,708			156,196,005			156,013,266
Common Shares Outstanding		157,378,056			152,954,065			152,852,381			153,265,378			154,653,339

THE COLONIAL BANCGROUP, INC. AND SUBSIDIARIES

	Three Months Ended
AVERAGE VOLUME AND RATES (unaudited) (Dollars in thousands)	June 30, 2007							March 31, 2007							June 30, 2006
	Average Volume		Interest			Rate		Average Volume		Interest			Rate		Average Volume		Interest			Rate
Assets:
Loans, excluding mortgage warehouse loans, net of unearned income (2)	$	14,945,845	$	289,696		7.77	%	$	15,153,371	$	289,572		7.74	%	$	15,004,219	$	284,251		7.60	%
Mortgage warehouse loans		166,867		3,537		8.50	%		195,951		3,902		8.08	%		384,701		6,961		7.26	%
Loans held for sale (2)		1,881,595		32,180		6.86	%		1,287,027		21,981		6.93	%		1,224,542		20,678		6.77	%
Securities (2)		2,595,580		36,438		5.62	%		3,265,920		43,005		5.27	%		2,948,540		37,147		5.04	%
Securities purchased under agreements to resell - MWL		810,840		14,129		6.99	%		639,052		11,023		7.00	%		586,707		9,865		6.74	%
Securities purchased under agreements to resell - Other		500,000		8,364		6.70	%		419,444		6,941		6.68	%		—		—		0.00	%
Other interest earning assets		68,127		938		5.52	%		97,005		1,171		4.90	%		71,067		858		4.84	%
Total interest earning assets (1)		20,968,854	$	385,282		7.37	%		21,057,770	$	377,595		7.25	%		20,219,776	$	359,760		7.13	%
Nonearning assets (2)		2,128,630							1,996,179							1,770,629
Total assets	$	23,097,484						$	23,053,949						$	21,990,405
Liabilities and Shareholders’ Equity:
Interest bearing non-time deposits	$	6,374,663	$	49,664		3.12	%	$	6,313,784	$	48,481		3.11	%	$	6,106,236	$	40,558		2.66	%
Time deposits (2)		7,153,509		89,405		5.01	%		6,872,764		84,603		4.99	%		6,574,853		70,320		4.29	%
Total interest bearing deposits		13,528,172		139,069		4.12	%		13,186,548		133,084		4.09	%		12,681,089		110,878		3.51	%
Repurchase agreements		511,175		5,327		4.18	%		763,461		8,555		4.54	%		893,915		9,568		4.29	%
Federal funds purchased and other short-term borrowings		635,665		8,404		5.30	%		1,164,191		15,277		5.32	%		1,108,012		13,825		5.00	%
Long-term debt (2)		3,033,776		40,858		5.40	%		2,925,030		40,018		5.53	%		2,180,688		33,092		6.08	%
Total interest bearing liabilities		17,708,788	$	193,658		4.39	%		18,039,230	$	196,934		4.42	%		16,863,704	$	167,363		3.98	%
Noninterest bearing demand deposits		2,935,570							2,780,374							3,032,861
Other liabilities (2)		287,182							166,607							128,912
Total liabilities		20,931,540							20,986,211							20,025,477
Shareholders’ equity		2,165,944							2,067,738							1,964,928
Total liabilities and shareholders’ equity	$	23,097,484						$	23,053,949						$	21,990,405
Rate differential						2.98	%						2.83	%						3.15	%
Net yield on interest-earning assets on a tax equivalent basis			$	191,624		3.66	%			$	180,661		3.46	%			$	192,397		3.81	%
Taxable equivalent adjustments (1):
Loans				(232	)						(146	)						(75	)
Securities				(1,175	)						(570	)						(235	)
Total taxable equivalent adjustments				(1,407	)						(716	)						(310	)
Net interest income			$	190,217						$	179,945						$	192,087
TOTAL AVERAGE DEPOSITS
Total interest bearing deposits	$	13,528,172	$	139,069		4.12	%	$	13,186,548	$	133,084		4.09	%	$	12,681,089	$	110,878		3.51	%
Noninterest bearing demand deposits		2,935,570		—		—			2,780,374		—		—			3,032,861		—		—
Total average deposits	$	16,463,742	$	139,069		3.39	%	$	15,966,922	$	133,084		3.38	%	$	15,713,950	$	110,878		2.83	%

(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 and the adjustments for mark to market valuations on hedged assets and liabilities have been classified in either nonearning assets or other liabilities.

THE COLONIAL BANCGROUP, INC. AND SUBSIDIARIES

	Six Months Ended June 30,
AVERAGE VOLUME AND RATES (unaudited) (Dollars in thousands)	2007							2006
	Average Volume		Interest			Rate		Average Volume		Interest			Rate
Assets:
Loans, excluding mortgage warehouse loans, net of unearned income (2)	$	15,049,035	$	579,268		7.75	%	$	14,791,503	$	548,904		7.47	%
Mortgage warehouse loans		181,328		7,439		8.27	%		401,215		12,772		6.42	%
Loans held for sale (2)		1,585,954		54,161		6.89	%		1,174,980		38,684		6.64	%
Securities (2)		2,928,898		79,443		5.42	%		2,925,367		73,352		5.02	%
Securities purchased under agreements to resell - MWL		725,420		25,152		6.99	%		596,331		19,342		6.54	%
Securities purchased under agreements to resell - Other		459,945		15,305		6.69	%		—		—		0.00	%
Other interest earning assets		82,486		2,109		5.15	%		73,953		1,698		4.63	%
Total interest earning assets (1)		21,013,066	$	762,877		7.31	%		19,963,349	$	694,752		7.01	%
Nonearning assets (2)		2,062,770							1,791,735
Total assets	$	23,075,836						$	21,755,084
Liabilities and Shareholders’ Equity:
Interest bearing non-time deposits	$	6,344,391	$	98,145		3.12	%	$	6,071,428	$	75,579		2.51	%
Time deposits (2)		7,013,912		174,008		5.00	%		6,550,327		135,267		4.16	%
Total interest bearing deposits		13,358,303		272,153		4.11	%		12,621,755		210,846		3.37	%
Repurchase agreements		636,621		13,882		4.40	%		884,343		17,685		4.03	%
Federal funds purchased and other short-term borrowings		898,468		23,681		5.32	%		880,467		21,095		4.83	%
Long-term debt (2)		2,979,704		80,876		5.46	%		2,237,189		64,252		5.78	%
Total interest bearing liabilities		17,873,096	$	390,592		4.40	%		16,623,754	$	313,878		3.81	%
Noninterest bearing demand deposits		2,858,401							3,033,227
Other liabilities (2)		227,227							134,573
Total liabilities		20,958,724							19,791,554
Shareholders’ equity		2,117,112							1,963,530
Total liabilities and shareholders’ equity	$	23,075,836						$	21,755,084
Rate differential						2.91	%						3.20	%
Net yield on interest-earning assets on a tax equivalent basis			$	372,285		3.56	%			$	380,874		3.84	%
Taxable equivalent adjustments (1):
Loans				(379	)						(158	)
Securities				(1,744	)						(469	)
Total taxable equivalent adjustments				(2,123	)						(627	)
Net interest income			$	370,162						$	380,247
TOTAL AVERAGE DEPOSITS
Total interest bearing deposits	$	13,358,303	$	272,153		4.11	%	$	12,621,755	$	210,846		3.37	%
Noninterest bearing demand deposits		2,858,401		—		—			3,033,227		—		—
Total average deposits	$	16,216,704	$	272,153		3.38	%	$	15,654,982	$	210,846		2.72	%

(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 and the adjustments for mark to market valuations on hedged assets and liabilities have been classified in either nonearning assets or other liabilities.

THE COLONIAL BANCGROUP, INC. AND SUBSIDIARIES

ASSET QUALITY (unaudited)

RATIOS	June 30, 2007			March 31, 2007			Dec 31, 2006			Sept 30, 2006			June 30, 2006
Period end:
Allowance as a percent of net loans		1.15	%		1.16	%		1.13	%		1.14	%		1.14	%
Total nonperforming assets as a percent of net loans and nonperforming assets		0.29	%		0.22	%		0.16	%		0.10	%		0.18	%
Allowance as a percent of nonperforming assets		391	%		525	%		695	%		1120	%		649	%
Allowance as a percent of nonperforming loans		460	%		601	%		1247	%		1366	%		802	%
Net charge-offs as a percent of average net loans:
Quarter to date (annualized)		0.20	%		0.06	%		0.12	%		0.06	%		0.04	%
Year to date (annualized)		0.13	%		0.06	%		0.12	%		0.12	%		0.15	%
NONPERFORMING ASSETS (Dollars in thousands)	June 30, 2007			March 31, 2007			Dec 31, 2006			Sept 30, 2006			June 30, 2006
Nonaccrual loans	$	38,719		$	28,721		$	14,025		$	12,765		$	21,957
Restructured loans		—			—			—			128			137
Total nonperforming loans		38,719			28,721			14,025			12,893			22,094
Other real estate owned		6,833			4,134			1,869			2,826			5,208
Loans held for sale		—			—			9,255			—			—
Total nonperforming assets	$	45,552		$	32,855		$	25,149		$	15,719		$	27,302
Total charge-offs	$	9,234		$	3,542		$	6,301		$	6,809		$	4,533
Total recoveries		(1,654	)		(1,347	)		(1,634	)		(4,337	)		(3,090	)
Net charge-offs:
Quarter to date	$	7,580		$	2,195		$	4,667		$	2,472		$	1,443
Year to date	$	9,775		$	2,195		$	18,343		$	13,676		$	11,204

THE COLONIAL BANCGROUP, INC. AND SUBSIDIARIES

RECONCILIATION OF CERTAIN FINANCIAL MEASURES (unaudited)

RECONCILIATION OF CERTAIN FINANCIAL MEASURES (Dollars in thousands)	2nd Qtr. 2007		1st Qtr. 2007			Annualized % Change
Average deposit growth:
Average total deposits	$	16,463,742	$	15,966,922
Excluding:
Impact of Commercial Bankshares, Inc. acquisition		—		271,780
Average total deposits, as adjusted	$	16,463,742	$	16,238,702			6	%
Average noninterest bearing transaction accounts	$	2,935,570	$	2,780,374
Excluding:
Impact of Commercial Bankshares, Inc. acquisition		—		49,242
Average noninterest bearing transaction accounts, as adjusted	$	2,935,570	$	2,829,616			15	%
Average loan growth:
Average loans, excluding mortgage warehouse lending	$	14,945,845	$	15,153,371
Excluding:
Impact of Commercial Bankshares, Inc. acquisition		—		193,481
Impact of residential real estate loans sold in 1st Qtr. 2007		—		(484,184	)
Average loans, excluding mortgage warehouse lending, as adjusted	$	14,945,845	$	14,862,668			2	%
	2nd Qtr. 2007		1st Qtr. 2007			$ Change			% Change
Average mortgage warehouse assets on balance sheet:
Average securities purchased under agreements to resell – MWL	$	810,840	$	639,052		$	171,788		27	%
Average loans held for sale		1,834,099		1,249,410			584,689		47	%
Average mortgage warehouse loans		166,867		195,951			(29,084	)	-15	%
Average mortgage warehouse assets on balance sheet	$	2,811,806	$	2,084,413		$	727,393		35	%
	Jun 30, 2007		Mar 31, 2007			$ Change			% Change
Period end mortgage warehouse assets under management:
Securities purchased under agreements to resell – MWL	$	695,827	$	827,610		$	(131,783	)	-16	%
Loans held for sale		1,999,844		1,062,388			937,456		88	%
Mortgage warehouse loans		189,354		166,552			22,802		14	%
Total mortgage warehouse assets on balance sheet		2,885,025		2,056,550			828,475		40	%
Securitization of mortgage warehouse assets		1,500,000		2,000,000			(500,000	)	-25	%
Total mortgage warehouse assets under management	$	4,385,025	$	4,056,550		$	328,475		8	%