8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): August 8, 2007

THE COLONIAL BANCGROUP, INC.

(Exact name of registrant as specified in its charter)

DELAWARE	1-13508	63-0661573
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(I.R.S. Employer Identification No.)

100 Colonial Bank Blvd.

Montgomery, Alabama 36117

(Address of principal executive offices)

(334) 676-5000

(Registrant’s telephone number)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 7.01 Regulation FD Disclosure.

The Colonial BancGroup, Inc. (BancGroup) is furnishing this Current Report on Form 8-K in connection with management’s presentation to various analysts at meetings August 8-9, 2007.

Item 9.01 Financial Statements and Exhibits.

The following exhibits are furnished as Regulation FD Disclosure to this Current Report on Form 8-K:

Exhibit No.	Exhibit
99.1	Presentation materials to be used by BancGroup’s management at meetings with various analysts August 8-9, 2007.

This report 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 this report 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 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 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);

• unanticipated litigation or claims;

• 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

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

THE COLONIAL BANCGROUP, INC
By	/S/    T. BRENT HICKS
	T. Brent Hicks
	Chief Accounting Officer

Date: August 8, 2007

4

EX-99.1

Exhibit 99.1

2

Forward Looking Statements

The following should be read in conjunction with the financial statements, notes and other information contained in Colonial’s 2006 Annual Report on

Form 10-K, and Current Reports on Form 8-K.  All 2007 interim amounts have not been audited, and the results of operations for the interim period herein

are not necessarily indicative of the results of operations to be expected for the full year. 

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

such

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);

•

unanticipated litigation or claims;

•

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

$23.8 Billion in assets with 321 Branches at 6/30/2007

Top 30

*

U.S. Commercial Bank

Proven Community Banking Philosophy with Regional Bank

Management and Local Boards of Directors

Top 5* Market Share in 84% of Deposit Franchise

Consistent Earnings Per Share Growth –

5 year CAGR 10%

Forbes

Platinum 400 List of Best Large Companies in America

Overview

*Source:  SNL Financial

4

73%

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 6/30/07 are as follows:

In the Right Places

$23.8 Billion in Assets

$17.1 Billion in Deposits

321 Branches

1

At 6/30/07

*Projected Population change from 2006-2011

Source: US Census Bureau

FL 60%

AL 24%

TX 4%

GA 5%

NV 4%

Corp 3%

NV 4%

TX 7%

Corp 4%

FL 62%

GA 6%

AL 17%

NV 15

TX 15

FL 182

GA 19

AL  90

5

Superior Projected Population Growth

Source: SNL Financial

Deposit data as of 6/30/06

Population growth deposit weighted by county

2006 - 2011 Population Growth

Colonial BancGroup

11.92

%

SunTrust Banks

10.50

South Financial Group

9.90

Compass Bancshares

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

4.80

First Horizon National Corporation

4.42

Fifth Third Bancorp

4.30

Median

7.66

%

Low

4.30

High

11.92

Total U.S.

6.66

6

Florida, the 4

th

most populous state in the U.S. with 18 million people,

is projected to pass New York in total population by 2011*

5

th*

largest commercial bank in Florida

•

Integrated Commercial

Bank

acquisition

in

June,

marking

the

Company’s

22

nd

acquisition in Florida

•

Agreed

to

acquire

Citrus

&

Chemical

Bancorporation

1

Florida at 6/30/07 and Pro Forma with Citrus & Chemical

1

:

Aggressive De Novo Branching Strategy

•

Plan to open 15-25 branches over the next two years

Florida Franchise

*Source: SNL Financial

1

On July 18, 2007, Colonial signed a definitive agreement to acquire Citrus & Chemical Bancorporation, Inc. 

Branches

Assets

Deposits

Colonial

182

57%

$15 B

62%

$10 B

60%

Colonial/Citrus & Chemical

192

58%

$16 B

64%

$11 B

62%

7

Deposit Market Share -

Florida

(June 2006 FDIC balances)

10.74%

-2.50%

-2.70%

-7.75%

-3.35%

% Change from

6/30/05

39

5

5

4

3

2

1

Rank #

0.20%

C&C

2.92%

Colonial

3.12%

Colonial/C&C

5.07%

Regions

9.74%

SunTrust

19.09%

B of A

19.93%

Wachovia

Market Share

1

On July 18, 2007, Colonial signed a definitive agreement to acquire Citrus & Chemical Bancorporation, Inc.

1

Pro Forma Florida Franchise  -

192 Branches

8

Colonial Bank

Citrus & Chemical Bank

PANHANDLE

Assets = $455 Million

Deposits = $41 Million

3 Branches

CENTRAL FLORIDA

Assets = $3.3 Billion

Deposits = $2.9 Billion

59 Branches

SOUTH FLORIDA

Assets = $4.3 Billion

Deposits = $3.8 Billion

61

Branches

FLORIDA WEST COAST

Assets = $3.7 Billion

Deposits = $2.8 Billion

59 Branches

C&C

Assets = $1.1 Billion

Deposits = $727 Million

10 Branches

MORTGAGE WHSE.

Assets = $3.0 Billion

Deposits = $750 Million

9

Retail Banking

10

2007 Retail Growth Initiatives

Non-time Deposit Growth

Key Initiatives:

•

New Products

•

Remote Deposit Capture

•

Title Company Checking

•

Enhance Free Checking offering with bundled product approach and innovative rewards program

•

Advanced Sales Culture

•

Quarterly campaigns focus on low-cost deposit growth and lines of business referrals

•

Additional emphasis of commercial and business banking compensation on low-cost deposits

•

Launching new corporate sales training program

Non-interest Income Growth

Key Initiatives:

•

Retail Service Charges

•

Focus on household checking account growth

•

Increase debit card penetration in consumer and business banking households

•

Financial Planning

•

Aligned reporting structure with Treasury Management, Business

Banking and Mortgage

•

Unified sales approach with Retail sales teams

•

Additional resources for sales management/leadership

•

Mortgage Banking

•

Continue production shift to secondary markets (42% in 2005, 52% in 2006, 65% in 2007)

•

Mortgage staffing rationalization

10% increase in noninterest

bearing checking accounts

25% of revenue from fee-based services

Retail Banking

11

Adding Value to the Franchise

Retail Banking

Aligned our products/services, sales tracking and compensation plans with

measurable results that deliver growth in low-cost deposits

Continue positive

momentum

toward

achieving

25%

of

total

revenue

in

fee-based services through

•

Growth in consumer and business banking households

•

Shared synergies in sales approach between regional executives and line of    

business executives

Unite the

Colonial

franchise

in

all

markets

under

one

consistent

brand

message, encompassing all lines of business, and maximizing the marketing

and advertising investment across the diverse markets

Continue to maximize strategic multi-channel marketing initiatives to expand

cross-sell opportunities and increase products and services per household

12

Average Deposits/

Branch

Retail Banking

$29.9

$31.6

$35.8

$41.8

$49.4

$48.9

$48.9

2002

2003

2004

2005

2006

2Q06

2Q07

11.9%

23.0%

32.1%

38.8%

45.0%

42.8%

47.6%

2002

2003

2004

2005

2006

2Q06

2Q07

Online Banking

Penetration

($ in millions)

6%

13%

17%

18%

93%

40%

21%

16%

11%

13

Financial Highlights

14

1Q07

2Q07

$1.06

$1.26

$1.16

$1.31

$1.52

$1.72

2001

2002

2003

2004

2005

2006

(diluted)

Consistent Earnings Per Share Growth

5 Year CAGR = 10%

2001 -

2006

19%

(8)%

13%

16%

13%

1

Excluding restructuring charges

$0.24

$0.41

1

$0.43

$0.44

1

15

2Q07 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

Improved efficiency ratio of 56.20%

Successful acquisition and integration of Commercial Bankshares,

Inc.; Florida deposits now exceed $10 billion

16

$422

$455

$495

$567

$709

$755

$180

$190

2001

2002

2003

2004

2005

2006

1Q07

2Q07

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%   

3.46%    3.66%

Net Interest

Margin

6%

17

Sold approximately 1/3 of investment securities at the beginning

of the

quarter and reduced borrowings

The tax equivalent yield improved 35 basis points to 5.62%

Average investment securities represented approximately 11% of average assets and 12% of

average earning assets in the second quarter

Sold 1-4 family residential real estate loans at the end of 1Q07

Prepaid $70 million of trust preferreds

in the first quarter –

8.92%, and

$100 million of trust preferreds

in the second –

8.32%

Average deposits grew 6%

1

annualized over the first quarter yet the

cost of deposits increased only 1 basis point

Reduced rates on promotional deposit products

Strong growth in mortgage warehouse assets

Interest rate risk position has been managed to a neutral position

Net Interest Margin for 2007 is expected to approximate 3.60%

Net Interest Income Management

1

Excluding the acquisition

18

Net Interest Income and Margin

($ in millions)

Tax

Equivalent

NII

NIM

1Q07

180.7

$           

3.46%

Sale of Investment Securities and

1-4 Real Estate Loans

0.6

0.30%

Growth in Earning Assets, excluding MWL

4.3

-

Growth in Mortgage Warehouse Assets

2.8

-0.08%

Commercial Bank of Florida

2.8

-0.01%

Deposit Mix Change

(0.7)

-0.01%

Day Count

1.1

-

2Q07

191.6

$           

3.66%

19

2.30%

2.37%

2.42%

2.42%

2.34%

2.36%

2.32%

2002

2003

2004

2005

2006

YTD 06

YTD 07

Strong Growth in Noninterest

Income

and Controlled Expenses

$107

$141

$146

$176

$182

$86

$99

2002

2003

2004

2005

2006

YTD 06

YTD 07

Core Noninterest

Income

Growth

Core Noninterest

Expense   to

Average Assets

1

Excluded

from

noninterest

income

are

securities

and

derivatives

gains

(losses),

securities

restructuring

charges,

gain

on

sale

of

Goldleaf,

merchant services, branches and mortgage loans and changes in fair value of swap derivatives

2

Excluded

from

noninterest

expense

are

net

losses

related

to

the

early

extinguishment

of

debt,

severance

expense

and

merger

related

expenses

-2%

15%

1

2

20

Credit

21

Excellent Credit Quality

Credit quality remains excellent

No sub-prime products

Year to date annualized net charge-off ratio was 0.13% of average

loans

The allowance for loan losses was 1.15% of total loans, compared

to

1.13% at 12/31/06

The allowance was 391% of nonperforming assets

22

Summary of Loan Loss Experience

2003 –

2Q07

2Q07

2006

2005

2004

2003

Reserve Ratio to Net Loans

1.15%

1.13%

1.15%

1.16%

1.20%

Reserve ($ in 000's)

$178,274

$174,850

$171,051

$148,802

$138,549

Coverage of Nonperforming Assets

391%

695%

536%

402%

184%

YTD Net Charge-off Ratio to Average Loans

0.13%

0.12%

0.14%

0.19%

0.31%

YTD Net Charge-offs ($ in 000's)

$9,775

$18,343

$19,211

$23,598

$35,471

Years of Net Charge-offs in Reserve

9.12

9.53

8.90

6.31

3.91

Nonperforming Assets

$45,552

$25,149

$31,931

$37,039

$75,440

Ratio of Nonperforming Assets to Net Loans

0.29%

0.16%

0.21%

0.29%

0.65%

1

Annualized

2

Reserve/YTD Net Charge-offs Annualized

1

2

23

0.65%

0.78%

0.64%

0.54%

0.55%

0.60%

0.71%

0.84%

0.85%

0.29%

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

6/30/07

All FDIC Insured Commercial Banks

Colonial BancGroup

(as originally reported)

NPAs Consistently Below Industry

24

0.47%

0.49%

0.09%

0.19%

0.12%

0.14%

0.33%

0.13%

0.18%

0.13%

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

June

YTD

2007

All FDIC Insured Commercial Banks

Southern Regionals*

Colonial BancGroup

Net Charge-Offs/Average Loans

*Source: KBW

(as originally reported)

1

Annualized

1

25

Why Invest in Colonial BancGroup?

In the Right Locations for Continued Success

Conservative Lending Philosophy

•

Excellent credit quality

Opportunity to Improve

•

Our goal is to have 25% of our revenue from fee based services

Experienced and Strong Management Team

•

Delivered strong shareholder returns

17 Years of Increased Dividends: $0.75* for 2007, a 10% increase

over

2006

*Estimated

Total

Annualized

1 Year

11%

11%

2 Year

28%

13%

3 Year

62%

17%

5 Year

115%

17%

26

$.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%

27

Supplemental Information

28

Mortgage Warehouse Lending

$4.4 billion in assets under management at 6/30/07; $1.5 billion

sold to

third-party commercial paper conduits

Provides funding to mortgage companies which is secured by

mortgages made to individuals with FICO scores averaging over 700

Investors

such

as

Fannie

Mae,

Freddie

Mac,

Ginnie

Mae

and

money

center

financial

institutions

have

committed

to

purchase

the

mortgages

collateralizing

the MW assets

•

The

mortgages

are

delivered

to

investors

in

less

than

30

days

on

average

Colonial controls the collateral files which include the underlying

mortgage legal documents for over 98% of the outstanding mortgage

warehouse assets

Investor requests to our customers to repurchase loans have not

trended up

Colonial closely monitors the aging of the fundings

No credit or other loss from this line of business since the initiation of

the unit in 1998

29

EPS Reconciliation

% Change

2Q07

1Q07

2Q06

1Q07

2Q06

Diluted earnings per share - GAAP

0.43

$ 

0.24

$ 

0.43

$ 

79%

0%

Impact of restructuring charges:

Loss on securities portfolio

-

0.23

-

Loss on extinguishment of debt

0.02

0.03

-

0.02

0.26

-

Income tax benefit

(0.01)

(0.09)

-

After tax restructuring charge

0.01

0.17

-

Diluted earnings per share, excluding

restructuring charges

0.44

$ 

0.41

$ 

0.43

$ 

7%

2%

30

% Change

2Q07

1Q07

2Q06

1Q07

2Q06

Earning Assets

20,969

$       

21,058

$       

20,220

$       

-

4%

Loans, excluding MWL

14,946

15,153

15,004

-1%

-

MWL Assets

2,812

2,084

2,150

35%

31%

MWL Managed Assets

4,416

4,079

3,650

8%

21%

Securities 

2,596

3,266

2,949

-21%

-12%

Total Assets

23,097

23,054

21,990

-

5%

Assets Under Management  

24,701

25,049

23,490

-1%

5%

Total Deposits

16,464

15,967

15,714

3%

5%

Noninterest

Bearing Deposits

2,936

2,780

3,033

6%

-3%

Interest Bearing Transaction Accounts

6,375

6,314

6,106

1%

4%

Time Deposits

7,153

6,873

6,575

4%

9%

Shareholders' Equity

2,166

2,068

1,965

5%

10%

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

1

2

31

Noninterest Income

($ in millions)

1

Core noninterest income was used in the calculation

% Change

2Q07

1Q07

2Q06

1Q07

2Q06

Service charges on deposit accounts

18.7

$                 

17.7

$             

15.3

$            

6%

22%

Electronic banking

4.6

4.4

4.3

5%

7%

Other retail banking fees

3.3

3.6

3.8

-8%

-13%

Retail Banking Fees

26.6

25.7

23.4

4%

14%

Financial planning services

4.3

3.8

3.7

13%

16%

Mortgage banking origination and sales

3.7

3.2

3.8

16%

-3%

Mortgage warehouse fees

6.3

6.9

6.0

-9%

5%

Bank-owned life insurance

5.0

4.9

4.0

2%

25%

Other income

6.9

1.8

4.0

283%

73%

Core Noninterest Income

52.8

46.3

44.9

14%

18%

Securities and derivatives gains, net

1.1

1.0

-

          NM

          NM

Securities restructuring charges

-

(36.0)

-

          NM

          NM

Gain on sale of mortgage loans

-

3.9

-

          NM

          NM

Gain on sale of merchant services

4.9

-

-

          NM

          NM

Total Noninterest Income

58.8

$                 

15.2

$             

44.9

$            

286%

31%

  Annualized Noninterest Income to Average Assets

0.92%

0.82%

0.82%

  Noninterest Income to Total Revenue

21.7%

20.5%

18.9%

1

1

32

Noninterest Expense

($ in millions)

1

Core noninterest

income and core noninterest

expense are used in the calculation

% Change

2Q07

1Q07

2Q06

1Q07

2Q06

Salaries and employee benefits

70.3

$            

69.6

$            

70.9

$            

1%

-1%

Occupancy expense of bank premises, net

18.7

18.5

16.4

1%

14%

Furniture and equipment expense

13.4

13.1

11.9

2%

13%

Professional services

4.6

4.1

4.9

12%

-6%

Electronic banking and other retail banking expenses

5.5

4.2

3.1

31%

77%

Advertising

3.7

2.2

3.1

68%

19%

Amortization of intangible assets

3.2

3.1

3.1

3%

3%

Communications

2.9

3.0

2.5

-3%

16%

Postage and courier

2.7

2.6

2.7

4%

-

Travel

2.0

1.7

2.1

18%

-5%

Other expense

10.4

8.2

10.5

27%

-1%

Core Noninterest Expense

137.4

130.3

131.2

5%

5%

Severance expense

0.5

3.0

-

          NM

          NM

Merger related expenses

1.1

0.4

-

          NM

          NM

Net losses related to the early extinguishment of debt

2.5

4.4

-

          NM

          NM

Total Noninterest Expense

141.5

$          

138.1

$          

131.2

$          

2%

8%

Minority Interest/REIT Preferred Dividends

2,312

$          

-

$                    

-

$                    

NM

NM

  Efficiency Ratio

56.20%

57.38%

55.31%

  Annualized Noninterest Expense to Average Assets

2.38%

2.26%

2.39%

1

1

33

Loan Portfolio Distribution

Commercial

Real Estate

30%

Real Estate

Construction

42%

Residential

Real Estate

16%

Commercial

8%

Mortgage

Warehouse

Lending

1%

Consumer and

Other

3%

(as of June 30, 2007)

34

Office

22%

Multi-Family

9%

Other

9%

Warehouse

14%

Retail

25%

Healthcare

6%

Farm

2%

Industrial

2%

Church/School

4%

Lodging

6%

Recreation

1%

Commercial Real Estate

Loan Portfolio Distribution

33% Owner Occupied

Average loan size = $673 thousand

Characteristics of 75 largest loans:

•

Total $699 million and represent

15.1% of CRE portfolio

•

Average loan to value ratio is 67.8%

•

Average debt coverage ratio = 1.43x

(as of June 30, 2007)

35

Construction Loan Portfolio Distribution

(as of June 30, 2007)

Average loan size = $909 thousand

Characteristics of 75 largest loans:

•

Total $1.4 billion and represent

21.7% of construction portfolio

•

Average loan to value ratio is 63.8%

Land Only

24%

Residential Home

Construction

14%

Condominium

7%

Commercial

Development

7%

Residential

Development and

Lots

28%

Multi-Family

4%

Warehouse

2%

Retail

5%

Office

4%

Other

5%