EX-99.1 2 dex991.htm PRESS RELEASE Press Release
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%