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): September 6, 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 presentations at the Morgan Keegan Equity Conference in Memphis, TN on September 6, 2007 and the Lehman Brothers Financial Services conference in New York on September 11, 2007. Management will also be participating in meetings with various analysts and investors September 10-12, 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.

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: September 6, 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

Operate from a regional bank concept:

•

Alabama/Northwest Florida

•

Georgia (Atlanta/Columbus/Macon/Warner Robins)

•

Central Florida (Greater Orlando)

•

Palm Beach/Broward Counties, Florida

•

Dade County, Florida (Miami)

•

West Coast Florida (Tampa/Naples)

•

Texas (Dallas/Austin)

•

Nevada (Las Vegas/Reno)

2 CEO’s in most regions –

one lending CEO and one retail CEO

All regional CEO’s report to BancGroup CEO

Heightens emphasis for both retail and loan growth

Allows CEO’s to maximize their particular expertise in lending or retail

Each region has a local board of directors

Unique Organizational Structure

7

Credit

8

No Change –

Same Proven Credit Process

Strong Credit culture with proven Policies and Underwriting

We predominantly lend within our core competency

We have the real estate expertise and market knowledge

We focus on lending to individuals and companies we know

We avoid “speculative”

projects

We ensure strong guarantor support on our loans

We have a rigorous appraisal review process

Active involvement by CEO and CCO in all loan committees

Low individual lending authorities with multi-tiered committees

Experienced regional managers and director involvement on committees

Superior Portfolio Risk Management process

Experienced team

Limits by product and MSA

Aggressive workout strategies

Long term history of superior credit quality through many cycles

9

Credit Quality –

YTD 2007 Update

Credit quality is strong and within expectations

Quality Residential RE portfolio –

no sub prime; no stated income; no

exotic products

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

Allowance for loan losses was 1.15% of total loans, compared to 1.13%

at 12/31/06

Allowance was 391% of nonperforming assets at 6/30/07

Allowance would be sufficient to cover charge-offs for 9.12 years at YTD

annualized levels

10

1.25%

0.85%

0.78%

0.84%

0.71%

0.60%

0.55%

0.54%

0.64%

0.78%

0.65%

0.29%

0.21%

0.29%

0.16%

4.09%

1.13%

0.94%

0.90%

0.86%

1.06%

1.41%

1.41%

1.03%

0.63%

0.47%

0.49%

0.57%

1.48%

2.23%

0.00%

0.25%

0.50%

0.75%

1.00%

1.25%

1.50%

1.75%

2.00%

2.25%

2.50%

2.75%

3.00%

3.25%

3.50%

3.75%

4.00%

4.25%

'93

'94

'95

'96

'97

'98

'99

'00

'01

'02

'03

'04

'05

'06

6/30/07

CBG

FDIC - Commercial Banks with Assets > $10 Billion

(as originally reported)

NPAs Consistently Below Industry

11

Net Charge-Offs/Average Loans

(as originally reported)

1

Annualized

YTD

2007

0.33%

0.09%

0.13%

0.18%

0.23%

0.26%

0.21%

0.21%

0.28%

0.29%

0.31%

0.19%

0.14%

0.12%

0.13%

1

1.02%

0.57%

0.46%

0.52%

0.58%

0.65%

0.66%

0.75%

1.06%

1.04%

0.73%

0.68%

0.47%

0.58%

1.32%

0.00%

0.10%

0.20%

0.30%

0.40%

0.50%

0.60%

0.70%

0.80%

0.90%

1.00%

1.10%

1.20%

1.30%

1.40%

1.50%

'93

'94

'95

'96

'97

'98

'99

'00

'01

'02

'03

'04

'05

'06

June

Colonial BancGroup

FDIC -

Commercial Banks with Assets > $10 Billion

12

We do not

sacrifice credit quality for loan growth

May have missed income opportunities but have avoided significant problems

We have limited our risk

Moratorium on high rise condos in Miami and the Panhandle of Florida initiated several

years ago

Slowed growth in other residential construction loans last year

No sub-prime lending, no stated income or exotic mortgage products

Loan to value ratios of 64.6% on average for Construction and CRE

Diversified Construction and CRE portfolio by type and geographic location

We have long term relationships with experienced customers

Loan

customers

have

strong

balance

sheets

allowing

them

to

enter

this

slower

environment with financial strength

Personal guarantees are required so borrowers have more on the line

We are in strong growth markets

While there is a residential slowdown which may continue for a while, population and job

growth will allow for faster recovery in our markets versus other parts of the US

CRE and other business lines are performing well and there are still areas of strength in

residential lending

We strengthened reserve and capital to absorb potential future losses

We pro-actively seek early exit plans when problems are identified

What Gives Us Comfort in Today’s Market

13

Mortgage Warehouse Lending

Provides short term bridge 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

•

Colonial closely monitors the aging of the fundings

•

Colonial is repaid directly by the 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

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

the unit in 1998

14

Financial Highlights

15

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

16

2Q07 Highlights

EPS of $0.43, $0.44 excluding restructuring charges

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.

Announced the acquisition of Citrus & Chemical Bancorporation;

expected to close in December 2007

17

$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%

18

Net interest margin is expected to approximate 3.60% for 2007; 3.66%

2Q07; 3.46% 1Q07

Interest rate risk position has been managed to a relatively neutral

position

Opportunistically acquired high quality securities during 3Q07

Actively managing the cost of funding

•

Prepaid $170 million of trust preferred debt

•

Average deposits grew 6% annualized, excluding the acquisition, over the 1Q07,

yet the cost of deposits increased by only 1 basis point

Sold low yielding loans and securities in the 1Q07 and 2Q07

Effective Net Interest Income Management

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

1

Growth

Core Noninterest Expense

2

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%

20

Retail Banking

21

Noninterest Income Growth Goal

Retail Banking Fees up 14%*

•

Focus on household checking account growth

•

Increase

debit

card

penetration

in

consumer

and

business

banking

households

Financial Planning Services Revenue up 16%*

•

Increased number of Financial Consultants and Licensed Bankers

•

Diversification of revenue

•

Enhanced sales management through additional resources

Treasury Management Services Revenue up 28%*

•

Express Deposit (Remote Deposit Capture Product)

•

New Title Company Checking Account

•

Focus on Public Funds acquisition

25% of revenue from fee-based services

Retail Banking

*2Q07 compared to 2Q06

22

Lines of Business Highlight

Association Services

Providing depository services to more than 6,000 community associations through

lockbox service and deposit and loan products

$228

$323

$410

$471

2004

2005

2006

June 2007

Deposits

($ in millions)

434,267

591,046

706,071

754,452

2004

2005

2006

June 2007

Units Served

30%*

14%*

*Annualized

23

Leveraging Lines of Business

Retail Banking

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

measurable results that deliver growth in fee income

Continue

positive

momentum

toward

achieving

25%

of

total

revenue

in         

fee-based services

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

24

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: 2001-2006

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%

25

$.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%

26

Supplemental Information

27

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%

28

Loan Portfolio and Earning Assets

Distribution

(as of June 30, 2007)

Real Estate

Construction

42%

Commercial

Real Estate

20%

Residential Real

Estate

16%

Owner

Occupied

10%

Commercial

9%

Consumer and

Other

3%

Loans

Loans

72%

Securities

12%

Loans Held for

Sale

9%

Short Term

Investments

7%

Average Earning Assets

1

1

Securities purchased under agreement to resell and interest bearing deposits

(for 2Q07)

29

Office

22%

Multi-Family

9%

Other

9%

Storage Buildings

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

•

Low loan to value ratio is 67.8%

•

Average debt coverage ratio = 1.43x

(as of June 30, 2007)

30

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%

Residential Land

4%

Commercial Land

20%

Condominium

7%

Residential Home

Construction

14%

Storage

Buildings

2%

Residential

Development

28%

Office

4%

Multi-Family

4%

Commercial

Development

7%

Other

5%

Retail

5%

31

Diversified CRE/Construction Loan Portfolio

(as of June 30, 2007)

Property Type

Total Exposure

Central FL

West Coast  FL

South FL

Panhandle FL

Northern FL

Alabama

Georgia

Texas

Nevada

Other

Retail

13.42%

1.29%

2.45%

2.86%

0.15%

0.31%

1.28%

0.86%

1.42%

1.03%

1.77%

Retail - other than gas stations

10.82%

1.14%

1.53%

2.35%

0.15%

0.11%

0.80%

0.65%

1.41%

0.94%

1.74%

Gas Station /Convenience Store

2.60%

0.15%

0.92%

0.51%

0.00%

0.20%

0.48%

0.21%

0.01%

0.09%

0.03%

Residential Development

15.14%

3.36%

1.67%

0.52%

0.84%

0.14%

1.57%

2.06%

3.93%

0.76%

0.29%

Builder Lot Inventory

1.96%

0.12%

0.26%

0.27%

0.18%

0.00%

0.21%

0.33%

0.56%

0.01%

0.02%

Commercial Development

4.48%

0.91%

0.99%

0.69%

0.00%

0.10%

0.09%

0.07%

0.47%

0.91%

0.25%

Commercial Lot Inventory

0.90%

0.14%

0.22%

0.24%

0.00%

0.00%

0.08%

0.11%

0.09%

0.00%

0.02%

Residential Homes (under construction)

11.75%

2.43%

1.28%

0.81%

0.27%

0.03%

2.13%

2.60%

1.15%

0.82%

0.23%

Multi-family

7.01%

0.59%

1.74%

1.35%

0.11%

0.03%

0.88%

0.25%

1.00%

0.13%

0.93%

Land Only

14.82%

2.89%

2.91%

1.36%

1.58%

0.07%

1.14%

0.63%

1.55%

1.32%

1.37%

Office

7.98%

1.03%

1.93%

2.08%

0.05%

0.06%

0.60%

0.52%

0.93%

0.37%

0.41%

Office - non-medical

6.86%

0.80%

1.77%

2.03%

0.05%

0.06%

0.54%

0.47%

0.50%

0.34%

0.30%

Office - Medical

1.12%

0.23%

0.16%

0.05%

0.00%

0.00%

0.06%

0.05%

0.43%

0.03%

0.11%

Condominium Bldgs - Construction

5.53%

1.57%

1.49%

0.60%

0.58%

0.03%

0.15%

0.27%

0.20%

0.31%

0.33%

Storage Buildings

4.99%

0.79%

1.00%

1.64%

0.02%

0.04%

0.54%

0.19%

0.09%

0.61%

0.07%

Storage with Office

2.85%

0.52%

0.68%

0.92%

0.02%

0.03%

0.23%

0.15%

0.06%

0.24%

0.00%

Storage - General

1.38%

0.18%

0.19%

0.69%

0.00%

0.00%

0.22%

0.01%

0.02%

0.04%

0.03%

Mini-Storage

0.76%

0.09%

0.13%

0.03%

0.00%

0.01%

0.09%

0.03%

0.01%

0.33%

0.04%

Healthcare - Living Facility

2.87%

0.12%

0.20%

0.02%

0.05%

0.04%

0.84%

0.26%

0.50%

0.00%

0.84%

Skilled Nursing Facility

1.75%

0.12%

0.13%

0.00%

0.05%

0.00%

0.80%

0.14%

0.17%

0.00%

0.34%

Assisted Living Facility

1.12%

0.00%

0.07%

0.02%

0.00%

0.04%

0.04%

0.12%

0.33%

0.00%

0.50%

Other Healthcare (hospitals, clinics, etc.)

1.19%

0.11%

0.09%

0.01%

0.00%

0.01%

0.04%

0.00%

0.86%

0.01%

0.06%

Lodging

3.87%

0.31%

0.71%

0.20%

0.00%

0.05%

0.45%

0.64%

0.62%

0.10%

0.79%

Recreation

0.15%

0.04%

0.07%

0.00%

0.00%

0.00%

0.04%

0.00%

0.00%

0.00%

0.00%

Industrial

0.78%

0.06%

0.18%

0.08%

0.00%

0.00%

0.05%

0.04%

0.02%

0.07%

0.28%

Farm

0.55%

0.07%

0.05%

0.22%

0.00%

0.02%

0.08%

0.00%

0.05%

0.00%

0.06%

All Other Types

2.61%

0.27%

0.45%

0.84%

0.09%

0.12%

0.22%

0.44%

0.15%

0.01%

0.02%

Total

100.00%

16.10%

17.69%

13.79%

3.92%

1.05%

10.39%

9.27%

13.59%

6.46%

7.74%

The overall LTV for this group of properties is 64.6%.

Commercial Real Estate Exposures by Geographic Location

Expressed as a Percentage of Commercial Real Estate Portfolio

Includes Commercial Real Estate and Construction Loan Exposures

(Principal Balances and Amounts Available To Be Drawn)

32

Credit Process

No individual has more than a $100,000 unsecured lending limit.

Weekly

$100,000 -

$500,000

Officers Loan Committee

Bi-weekly

$500,000 -

$2 million

Directors Loan Committee

Bi-weekly

$2 –

20 million

State Loan Committee

Bi-weekly

Over $20 million

Senior Loan Committee

Meeting

Lending Authority

Committee

33

Summary of Loan Loss Experience

2003 –

2Q07

1

Annualized

2

Reserve/YTD Net Charge-offs Annualized

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%

1

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

2

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%

34

Past Due Loans

1.35%

1.39%

1.16%

0.90%

0.48%

0.48%

0.45%

0.67%

0.99%

1.55%

1.75%

1.58%

1.46%

1.22%

1.29%

1.41%

1.33%

1.35%

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

1.60%

1.80%

2.00%

Dec-00

Dec-01

Dec-02

Dec-03

Dec-04

Dec-05

Dec-06

Mar-07

Jun-07

Colonial

FDIC - Commercial Banks with Assets > $10 billion