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): October 17, 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 2.02 Results of Operations and Financial Condition.

Item 7.01 Regulation FD Disclosure.

Information regarding the registrant’s earnings results for the quarter ended September 30, 2007 is furnished herein pursuant to Item 2.02 of this Current Report on Form 8-K and as Regulation FD Disclosure.

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	Press Release Announcing Third Quarter Earnings.
99.2	Presentation materials to be used in connection with Colonial BancGroup’s conference call to be held on October 17, 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,” “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 report 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 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 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 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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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/    SARAH H. MOORE
	Sarah H. Moore
	Senior Executive Vice President and Chief Financial Officer

Date: October 17, 2007

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EX-99.1

Exhibit 99.1

PRESS RELEASE

For more information contact:	October 17, 2007
Lisa Free
(334) 676-5105

COLONIAL BANCGROUP ANNOUNCES

RECORD EARNINGS OF $0.45 PER DILUTED SHARE

FOR THE THIRD QUARTER OF 2007

THIRD QUARTER 2007 HIGHLIGHTS:

• Record EPS of $0.45

• Net interest income grew 3% over the second quarter of 2007; net interest margin was 3.65%

• Core noninterest income increased 16% over the same quarter of the prior year

• Core noninterest expense decreased 3% from the second quarter of 2007

• Improved efficiency ratio of 53.29% compared to 56.20% for the second quarter of 2007

• Annualized net charge-off ratio was 0.18% for the first nine months of 2007 and 0.27% for the third quarter of 2007 compared to 0.20% for the second quarter of 2007

• Nonperforming assets ratio at September 30, 2007 was 0.46% compared to 0.29% at June 30, 2007

MONTGOMERY, AL. - The Colonial BancGroup, Inc. Chairman, CEO and President, Robert E. Lowder, announced today that the Company’s earnings for the quarter ended September 30, 2007 were a record $0.45 per diluted share. Net income for the quarter was a record $69 million compared to $66 million for the second quarter of 2007.

Colonial’s net interest income for the quarter increased 3% over the second quarter of 2007. The increase in net interest income was attributable to a 12% annualized increase in the

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Company’s average earning assets and improved funding costs as a result of net interest income management strategies undertaken throughout the first nine months of 2007. The net interest margin was 3.65% for the quarter compared to 3.66% for the second quarter of 2007. “While there have been significant liquidity issues in the industry, fortunately Colonial’s liquidity position remains strong. Due to our high quality assets, solid core deposit base and diverse wholesale funding sources, we have not experienced funding challenges,” said Mr. Lowder.

Total deposits at September 30, 2007 were $16.9 billion, down slightly from $17.1 billion at June 30, 2007; however, period-end non-time deposits grew $104 million, or 4% annualized, from June 30, 2007.

“During the third quarter, Colonial experienced declining loan volumes which we expect will continue into the fourth quarter and beyond. However, even in times of slow to no loan growth, we remain committed to our core strategy of not sacrificing credit quality for the sake of growth,” said Mr. Lowder. At September 30, 2007, total loans were $15.2 billion, a 2% decline from June 30, 2007. Annualized net charge-offs were 0.18% of average loans for the first nine months of 2007 and were 0.27% for the third quarter of 2007 compared to 0.20% for the second quarter of 2007. Colonial’s nonperforming assets ratio at September 30, 2007 increased to 0.46% from 0.29% at June 30, 2007. The increase in nonperforming assets primarily resulted from the addition of four loan relationships totaling approximately $21 million in Florida and Georgia. The allowance for loan losses was 1.14% of total loans and represented 246% of nonperforming assets at September 30, 2007.

“Our relationship building and income diversification efforts are reflected in the 15% year-over-year increase in core noninterest income. We are extremely pleased to have marked improvement in retail banking fees and financial planning revenue,” said Mr. Lowder.

Core noninterest expense was $133.7 million in the current quarter which was a $4 million decrease from the second quarter. Strong expense management coupled with increased revenues resulted in an improved efficiency ratio of 53.29% in the current quarter compared to 56.20% for the second quarter of 2007.

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The previously announced acquisition of Citrus & Chemical Bancorporation, Inc. (C&C) is progressing as anticipated and is expected to close in early December of 2007. C&C is located in deposit-rich Polk County, Florida and is expected to add strength to Colonial’s balance sheet. As of September 30, 2007, C&C had assets of $868 million, deposits of $689 million and loans of $527 million.

Mr. Lowder concluded, “Volatility in the financial services industry has been prevalent this year. While we cannot predict when or how current market conditions will change in the future, we do know that Colonial Bank has successfully experienced a variety of economic cycles during our 26 year history. What has been true for us over the years is equally true today and that is, we have a strong management team, we exhibit excellent expense controls and, most important in today’s environment, we have strict underwriting standards that serve us well as evidenced by our sound credit quality. As I said at the end of the second quarter, Colonial is not immune to current events, but our consistent record performance over time speaks for itself. Colonial is well positioned and we are approaching the future with confidence.”

Colonial BancGroup operates 323 branches in Florida, Alabama, Georgia, Nevada and Texas with more than $24.5 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 will host a conference call on October 17, 2007 at 3:00 PM/ET to discuss the earnings results for the third quarter. Individuals are encouraged to listen to the live webcast of the presentation as well as view a slide presentation by visiting 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 or (913) 981-5581 Toll International, (Leader: Lisa Free).

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A replay of the conference call will be available beginning at 6:00 PM/ET on October 17, 2007 and ending at midnight on October 22, 2007 by dialing (888) 203-1112 (Domestic Toll-Free) or (719) 457-0820 (Toll International). The passcode for both numbers is 1064579.

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;

• 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)	Sept 30, 2007		Dec 31, 2006		% Change Dec ‘06 to Sep ‘07
Total assets	$	24,544	$	22,784	8	%
Loans, net of unearned income		15,206		15,479	-2	%
Total securities		3,575		3,085	16	%
Non-time deposits		9,777		9,093	8	%
Total deposits		16,935		16,091	5	%
Shareholders’ equity		2,169		2,057	5	%

	Three Months Ended								Nine Months Ended
Earnings Summary (In thousands, except per share amounts)	Sept 30, 2007			June 30, 2007			% Change June ‘07 to Sep ‘07		Sept 30, 2007			Sept 30, 2006			% Change Sept 30, ‘06 to ‘07
Net Income:
Net interest income	$	196,011		$	190,217		3	%	$	566,173		$	570,799		-1	%
Provision for loan losses		4,800			6,105		-21	%		13,155			18,742		-30	%
Core noninterest income		52,958			52,765		0	%		152,117			132,180		15	%
Securities and derivatives gains, net		—			1,116		NM			2,097			4,384		NM
Securities restructuring charges		—			—		NM			(36,006	)		—		NM
Gain on sale of mortgage loans		—			—		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		52,958			58,781		-10	%		126,958			139,393		-9	%
Core noninterest expense		133,698			137,336		-3	%		401,325			389,072		3	%
Severance expense		500			520		-4	%		4,045			—		NM
Merger related expenses		753			1,116		-33	%		2,298			—		NM
Net losses related to the early extinguishment of debt		—			2,512		NM			6,908			—		NM
Total noninterest expense		134,951			141,484		-5	%		414,576			389,072		7	%
Minority interest expense/REIT preferred dividends		5,336			2,312		131	%		7,648			—		NM
Income before tax		103,882			99,097		5	%		257,752			302,378		-15	%
Income tax		34,527			32,978		5	%		85,799			102,808		-17	%
Net Income	$	69,355		$	66,119		5	%	$	171,953		$	199,570		-14	%
DILUTED EARNINGS PER SHARE:
EPS - GAAP	$	0.45		$	0.43		5	%	$	1.11		$	1.29		-14	%
Restructuring charges, net of tax (1)		—			0.01					0.18			—
EPS - Excluding restructuring charges	$	0.45		$	0.44		2	%	$	1.29		$	1.29		0	%
Average diluted shares outstanding		154,320			155,176					154,310			155,217
KEY RATIOS:
Net interest margin		3.65	%		3.66	%	0	%		3.59	%		3.77	%	-5	%
Book value per share	$	14.16		$	14.04		1	%	$	14.16		$	13.21		7	%
Dividends paid per share	$	0.1875		$	0.1875		0	%	$	0.5625		$	0.5100		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)

																Nine Months Ended
Earnings Summary (Dollars in thousands, except per share amounts)	3rd Qtr. 2007			2nd Qtr. 2007			1st Qtr. 2007			4th Qtr. 2006			3rd Qtr. 2006			Sept 30, 2007			Sept 30, 2006
Net interest income	$	196,011		$	190,217		$	179,945		$	184,468		$	190,552		$	566,173		$	570,799
Provision for loan loss		4,800			6,105			2,250			3,400			1,450			13,155			18,742
Noninterest income:
Service charges on deposit accounts		19,376			18,694			17,679			18,884			16,642			55,749			46,187
Electronic banking		4,923			4,648			4,401			4,356			4,470			13,972			12,856
Other retail banking fees		2,794			3,255			3,612			3,543			3,618			9,661			10,893
Retail banking fees		27,093			26,597			25,692			26,783			24,730			79,382			69,936
Financial planning services		4,506			4,283			3,822			3,316			3,944			12,611			10,738
Mortgage banking origination and sales		3,236			3,660			3,187			3,706			3,154			10,083			9,834
Mortgage warehouse fees		5,936			6,332			6,955			6,935			6,105			19,223			18,388
Bank-owned life insurance		5,070			5,002			4,955			3,797			4,242			15,027			12,157
Other income		7,117			6,891			1,783			4,904			3,631			15,791			11,127
Core noninterest income		52,958			52,765			46,394			49,441			45,806			152,117			132,180
Securities and derivatives gains, net		—			1,116			981			388			156			2,097			4,384
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		52,958			58,781			15,219			49,829			45,962			126,958			139,393
Noninterest expense:
Salaries and employee benefits		68,345			70,256			69,554			67,432			72,472			208,155			212,180
Occupancy expense of bank premises, net		19,634			18,722			18,505			18,210			17,188			56,861			49,128
Furniture and equipment expense		13,226			13,350			13,122			12,953			12,333			39,698			35,632
Professional services		4,967			4,628			4,100			4,773			4,340			13,695			13,692
Electronic banking and other retail banking expenses		5,766			5,507			4,212			4,418			3,061			15,485			9,102
Amortization of intangible assets		3,500			3,201			3,051			3,050			3,051			9,752			9,159
Communications		2,677			2,900			2,991			2,919			2,838			8,568			7,926
Postage and courier		2,589			2,692			2,639			2,407			2,798			7,920			8,069
Advertising		1,570			3,683			2,215			2,514			2,278			7,468			8,268
Travel		1,586			1,950			1,739			2,127			2,129			5,275			6,073
Other expense		9,838			10,447			8,163			9,313			9,497			28,448			29,843
Core noninterest expense		133,698			137,336			130,291			130,116			131,985			401,325			389,072
Severance expense		500			520			3,025			413			—			4,045			—
Merger related expenses		753			1,116			429			—			—			2,298			—
Net losses related to the early extinguishment of debt		—			2,512			4,396			—			—			6,908			—
Total noninterest expense		134,951			141,484			138,141			130,529			131,985			414,576			389,072
Minority interest expense/REIT preferred dividends		5,336			2,312			—			—			—			7,648			—
Income before tax		103,882			99,097			54,773			100,368			103,079			257,752			302,378
Income tax		34,527			32,978			18,294			34,125			35,047			85,799			102,808
Net Income	$	69,355		$	66,119		$	36,479		$	66,243		$	68,032		$	171,953		$	199,570
Earnings per share - Diluted	$	0.45		$	0.43		$	0.24		$	0.43		$	0.44		$	1.11		$	1.29
Selected ratios
Return on average assets*		1.15	%		1.15	%		0.64	%		1.16	%		1.19	%		0.98	%		1.21	%
Return on average equity*		12.65	%		12.24	%		7.15	%		12.85	%		13.51	%		10.76	%		13.51	%
Efficiency ratio(1)		53.29	%		56.20	%		57.38	%		55.55	%		55.77	%		55.56	%		55.27	%
Noninterest income(1)/ avg assets*		0.88	%		0.92	%		0.82	%		0.86	%		0.80	%		0.87	%		0.80	%
Noninterest expense(1)/ avg assets*		2.24	%		2.38	%		2.26	%		2.29	%		2.33	%		2.29	%		2.35	%
Net interest margin		3.65	%		3.66	%		3.46	%		3.53	%		3.64	%		3.59	%		3.77	%
Equity to assets		8.84	%		9.28	%		9.09	%		9.03	%		9.03	%
Tier one leverage		7.34	%		7.92	%		7.41	%		7.81	%		7.65	%
Tangible capital ratio		5.32	%		5.65	%		6.36	%		6.26	%		6.20	%

(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)	Sept 30, 2007			June 30, 2007			Mar 31, 2007			Dec 31, 2006			Sept 30, 2006
Assets:
Cash and due from banks	$	403,302		$	373,978		$	359,233		$	425,148		$	371,898
Interest bearing deposits in banks, federal funds sold		11,269			11,716			238,105			17,534			84,484
Securities purchased under agreements to resell		2,084,565			1,195,827			1,327,610			605,937			593,572
Total securities (AFS and HTM)		3,574,510			2,720,205			3,386,146			3,085,488			2,960,443
Loans held for sale		1,243,265			2,040,352			1,113,998			1,474,000			1,322,318
Loans, net of unearned income		15,206,452			15,457,047			14,921,476			15,478,889			15,515,695
Less: Allowance for loan losses		(172,678	)		(178,274	)		(172,602	)		(174,850	)		(176,117	)
Net loans		15,033,774			15,278,773			14,748,874			15,304,039			15,339,578
Premises and equipment, net		466,933			464,911			426,893			407,696			372,980
Intangible assets, net		912,131			915,379			671,282			674,333			677,383
Bank-owned life insurance		472,324			467,240			462,238			457,812			354,004
Accrued interest and other assets		341,993			354,581			337,523			332,262			335,903
Total Assets	$	24,544,066		$	23,822,962		$	23,071,902		$	22,784,249		$	22,412,563
Liabilities and Shareholders’ Equity:
Noninterest bearing transaction accounts	$	3,445,459		$	3,166,851		$	2,964,585		$	2,869,845		$	2,849,718
Interest bearing transaction accounts		6,331,223			6,505,883			6,444,194			6,222,818			6,188,859
Total non-time deposits		9,776,682			9,672,734			9,408,779			9,092,663			9,038,577
Time deposits		6,834,610			7,052,084			6,532,932			6,596,827			6,473,436
Brokered time deposits		323,349			359,245			441,012			401,564			283,199
Total deposits		16,934,641			17,084,063			16,382,723			16,091,054			15,795,212
Repurchase agreements		571,331			613,289			768,705			832,672			882,561
Federal funds purchased and other short-term borrowings		751,000			535,320			511,076			1,133,000			1,285,000
Long-term debt		3,604,927			2,919,387			3,051,628			2,522,273			2,278,391
Other liabilities		220,015			167,937			261,442			147,915			147,298
Total liabilities		22,081,914			21,319,996			20,975,574			20,726,914			20,388,462
Minority interest/REIT preferred securities		293,206			293,278			—			—			—
Total shareholders’ equity		2,168,946			2,209,688			2,096,328			2,057,335			2,024,101
Total Liabilities and Shareholders’ Equity	$	24,544,066		$	23,822,962		$	23,071,902		$	22,784,249		$	22,412,563
Common Shares Issued		163,172,315			163,102,683			156,662,992			156,258,708			156,196,005
Common Shares Outstanding		153,205,588			157,378,056			152,954,065			152,852,381			153,265,378

THE COLONIAL BANCGROUP, INC. AND SUBSIDIARIES

	Three Months Ended
AVERAGE VOLUME AND RATES (unaudited) (Dollars in thousands)	September 30, 2007							June 30, 2007							September 30, 2006
	Average Volume		Interest			Rate		Average Volume		Interest			Rate		Average Volume		Interest			Rate
Assets:
Loans, net of unearned income (2)	$	15,312,020	$	296,369		7.69	%	$	15,112,712	$	293,233		7.78	%	$	15,505,474	$	302,440		7.75	%
Loans held for sale (2)		1,637,193		29,572		7.17	%		1,881,595		32,180		6.86	%		1,679,498		28,847		6.81	%
Securities (2)		3,087,712		44,944		5.82	%		2,595,580		36,438		5.62	%		3,034,885		38,928		5.13	%
Securities purchased under agreements to resell		1,467,957		25,616		6.93	%		1,310,840		22,493		6.88	%		584,823		10,346		7.02	%
Other interest earning assets		78,987		977		4.91	%		68,127		938		5.52	%		80,852		1,041		5.11	%
Total interest earning assets (1)		21,583,869	$	397,478		7.32	%		20,968,854	$	385,282		7.37	%		20,885,532	$	381,602		7.26	%
Nonearning assets (2)		2,288,847							2,128,630							1,805,836
Total assets	$	23,872,716						$	23,097,484						$	22,691,368
Liabilities and Shareholders’ Equity:
Interest bearing non-time deposits	$	6,412,818	$	50,106		3.10	%	$	6,374,663	$	49,664		3.12	%	$	6,135,539	$	46,922		3.03	%
Time deposits (2)		7,320,067		92,111		4.99	%		7,153,509		89,405		5.01	%		6,837,604		78,424		4.55	%
Total interest bearing deposits		13,732,885		142,217		4.11	%		13,528,172		139,069		4.12	%		12,973,143		125,346		3.83	%
Repurchase agreements		562,344		5,826		4.11	%		511,175		5,327		4.18	%		849,080		9,816		4.59	%
Federal funds purchased and other short-term borrowings		655,125		8,474		5.13	%		635,665		8,404		5.30	%		1,509,855		20,338		5.34	%
Long-term debt (2)		3,290,566		43,005		5.19	%		3,033,776		40,858		5.40	%		2,294,281		35,255		6.11	%
Total interest bearing liabilities		18,240,920	$	199,522		4.34	%		17,708,788	$	193,658		4.39	%		17,626,359	$	190,755		4.30	%
Noninterest bearing demand deposits		2,949,526							2,935,570							2,926,347
Other liabilities (2)		213,124							161,766							140,766
Total liabilities		21,403,570							20,806,124							20,693,472
Minority interest/REIT preferred securities		293,244							125,416							—
Shareholders’ equity		2,175,902							2,165,944							1,997,896
Total liabilities and shareholders’ equity	$	23,872,716						$	23,097,484						$	22,691,368
Rate differential						2.98	%						2.98	%						2.96	%
Net yield on interest-earning assets on a tax equivalent basis			$	197,956		3.65	%			$	191,624		3.66	%			$	190,847		3.64	%
Taxable equivalent adjustments (1):
Loans				(247	)						(232	)						(75	)
Securities				(1,698	)						(1,175	)						(220	)
Total taxable equivalent adjustments				(1,945	)						(1,407	)						(295	)
Net interest income			$	196,011						$	190,217						$	190,552
TOTAL AVERAGE DEPOSITS
Total interest bearing deposits	$	13,732,885	$	142,217		4.11	%	$	13,528,172	$	139,069		4.12	%	$	12,973,143	$	125,346		3.83	%
Noninterest bearing demand deposits		2,949,526		—		—			2,935,570		—		—			2,926,347		—		—
Total average deposits	$	16,682,411	$	142,217		3.38	%	$	16,463,742	$	139,069		3.39	%	$	15,899,490	$	125,346		3.13	%

(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

	Nine Months Ended September 30,
AVERAGE VOLUME AND RATES	2007							2006
(unaudited) (Dollars in thousands)	Average Volume		Interest			Rate		Average Volume		Interest			Rate
Assets:
Loans net of unearned income (2)	$	15,257,881	$	883,076		7.74	%	$	15,298,116	$	864,116		7.55	%
Loans held for sale (2)		1,603,221		83,733		6.98	%		1,345,000		67,531		6.71	%
Securities (2)		2,982,418		124,387		5.56	%		2,962,274		112,280		5.05	%
Securities purchased under agreements to resell		1,280,597		66,073		6.90	%		592,453		29,688		6.70	%
Other interest earning assets		81,307		3,086		5.07	%		76,278		2,739		4.80	%
Total interest earning assets (1)		21,205,424	$	1,160,355		7.31	%		20,274,121	$	1,076,354		7.09	%
Nonearning assets (2)		2,138,957							1,796,488
Total assets	$	23,344,381						$	22,070,609
Liabilities and Shareholders’ Equity:
Interest bearing non-time deposits	$	6,367,451	$	148,251		3.11	%	$	6,093,033	$	122,501		2.69	%
Time deposits (2)		7,117,085		266,119		5.00	%		6,647,138		213,691		4.30	%
Total interest bearing deposits		13,484,536		414,370		4.11	%		12,740,171		336,192		3.53	%
Repurchase agreements		611,590		19,708		4.31	%		872,460		27,501		4.21	%
Federal funds purchased and other short-term borrowings		816,462		32,155		5.27	%		1,092,568		41,433		5.07	%
Long-term debt (2)		3,084,463		123,881		5.37	%		2,256,429		99,507		5.89	%
Total interest bearing liabilities		17,997,051	$	590,114		4.38	%		16,961,628	$	504,633		3.98	%
Noninterest bearing demand deposits		2,889,110							2,997,209
Other liabilities (2)		180,669							136,661
Total liabilities		21,066,830							20,095,498
Minority interest/REIT preferred securities		140,627							—
Shareholders’ equity		2,136,924							1,975,111
Total liabilities and shareholders’ equity	$	23,344,381						$	22,070,609
Rate differential						2.93	%						3.11	%
Net yield on interest-earning assets on a tax equivalent basis			$	570,241		3.59	%			$	571,721		3.77	%
Taxable equivalent adjustments (1):
Loans				(626	)						(232	)
Securities				(3,442	)						(690	)
Total taxable equivalent adjustments				(4,068	)						(922	)
Net interest income			$	566,173						$	570,799
TOTAL AVERAGE DEPOSITS
Total interest bearing deposits	$	13,484,536	$	414,370		4.11	%	$	12,740,171	$	336,192		3.53	%
Noninterest bearing demand deposits		2,889,110		—		—			2,997,209		—		—
Total average deposits	$	16,373,646	$	414,370		3.38	%	$	15,737,380	$	336,192		2.86	%

(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	Sept 30, 2007			June 30, 2007			March 31, 2007			Dec 31, 2006			Sept 30, 2006
Period end:
Allowance as a percent of net loans		1.14	%		1.15	%		1.16	%		1.13	%		1.14	%
Total nonperforming assets as a percent of net loans, other real estate and repossessions		0.46	%		0.29	%		0.22	%		0.16	%		0.10	%
Allowance as a percent of nonperforming assets		246	%		391	%		525	%		695	%		1120	%
Allowance as a percent of nonperforming loans		280	%		460	%		601	%		1247	%		1366	%
Net charge-offs as a percent of average net loans:
Quarter to date (annualized)		0.27	%		0.20	%		0.06	%		0.12	%		0.06	%
Year to date (annualized)		0.18	%		0.13	%		0.06	%		0.12	%		0.12	%
NONPERFORMING ASSETS (Dollars in thousands)	Sept 30, 2007			June 30, 2007			March 31, 2007			Dec 31, 2006			Sept 30, 2006
Nonaccrual loans	$	61,599		$	38,719		$	28,721		$	14,025		$	12,765
Restructured loans		—			—			—			—			128
Total nonperforming loans		61,599			38,719			28,721			14,025			12,893
Other real estate owned		8,554			6,833			4,134			1,869			2,826
Loans held for sale		—			—			—			9,255			—
Total nonperforming assets	$	70,153		$	45,552		$	32,855		$	25,149		$	15,719
Total charge-offs	$	13,744		$	9,234		$	3,542		$	6,301		$	6,809
Total recoveries		(3,348	)		(1,654	)		(1,347	)		(1,634	)		(4,337	)
Net charge-offs:
Quarter to date	$	10,396		$	7,580		$	2,195		$	4,667		$	2,472
Year to date	$	20,171		$	9,775		$	2,195		$	18,343		$	13,676

THE COLONIAL BANCGROUP, INC. AND SUBSIDIARIES

RECONCILIATION OF CERTAIN FINANCIAL MEASURES (unaudited)

RECONCILIATION OF CERTAIN FINANCIAL MEASURES (Dollars in thousands)	3rd Qtr. 2007		2nd Qtr. 2007		% Change
Average deposit growth:
Average total deposits	$	16,682,411	$	16,463,742		1	%
Excluding:
Impact of Commercial Bankshares, Inc. acquisition		—		552,619
Average total deposits, as adjusted	$	16,682,411	$	17,016,361		-2	%
	Sep 30 2007		Jun 30 2007		$ Change			% Change
Period end mortgage warehouse assets under management:
Securities purchased under agreements to resell - MWL	$	1,584,565	$	695,827	$	888,738		128	%
Loans held for sale		1,218,936		1,999,844		(780,908	)	-39	%
Mortgage warehouse loans		176,511		189,354		(12,843	)	-7	%
Total mortgage warehouse assets on balance sheet		2,980,012		2,885,025		94,987		3	%
Securitization of mortgage warehouse assets		1,500,000		1,500,000		—		0	%
Total mortgage warehouse assets under management	$	4,480,012	$	4,385,025	$	94,987		2	%

EX-99.2

Third Quarter 2007

Earnings Overview

Exhibit 99.2

2

Forward Looking Statements

This

presentation

includes

“forward-looking

statements”

within

the

meaning

of

the

federal

securities

laws.

Words

such

as

“believes,”

“estimates,”

“plans,”

“expects,”

“should,”

“may,”

“might,”

“outlook,”

“potential”

and

“anticipates,”

the

negative

of

these

terms

and

similar

expressions, as they relate to The Colonial BancGroup, Inc. (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);

•

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

3Q07 Highlights

Record EPS of $0.45

Net interest income grew 3% over the 2Q07; net interest margin was

3.65%

Core noninterest

income increased 16% over the same quarter of the

prior year

Core noninterest

expenses decreased 3% from the 2Q07

Improved efficiency ratio of 53.29% compared to 56.20% for the 2Q07

Annualized net charge-off ratio was 0.18% for the first nine months of

2007 and 0.27% for 3Q07 compared to 0.20% for the 2Q07

Nonperforming assets ratio at Sept 30, 2007 was 0.46% compared to

0.29% at June 30, 2007

4

Sound Credit Quality

Credit quality remains sound

No sub-prime products

Diversified loan portfolio by MSA, borrower and product type

Year to date annualized net charge-off ratio was 0.18% of average

loans and 0.27% annualized for the quarter

The nonperforming asset ratio increased to 0.46% primarily from four

loan relationships totaling approximately $21 million in Florida

and

Georgia.  Subsequent to September 30, 2007 one of the four has been

resolved. 

The allowance for loan losses was 1.14% of total loans, compared

to

1.13% at 12/31/06

The allowance covered 246% of nonperforming assets

5

Summary of Loan Loss Experience

2003 –

3Q07

1

Annualized

2

Reserve/YTD Net Charge-offs Annualized

3Q07

2006

2005

2004

2003

Reserve Ratio to Net Loans

1.14%

1.13%

1.15%

1.16%

1.20%

Reserve ($ in 000's)

$172,678

$174,850

$171,051

$148,802

$138,549

Coverage of Nonperforming Assets

246%

695%

536%

402%

184%

YTD Net Charge-off Ratio to Average Loans

0.18%

1

0.12%

0.14%

0.19%

0.31%

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

$20,171

$18,343

$19,211

$23,598

$35,471

Years of Net Charge-offs in Reserve

6.42

2

9.53

8.90

6.31

3.91

Nonperforming Assets ($ in 000's)

$70,153

$25,149

$31,931

$37,039

$75,440

Ratio of Nonperforming Assets to Net Loans

0.46%

0.16%

0.21%

0.29%

0.65%

6

We do not

sacrifice credit quality for loan growth

Our real estate portfolios are diverse –

by collateral type, location, and

borrower

The dynamics of our markets continue to be positive (population and job

growth)

Commercial real estate within our markets remains very strong

We have focused on financing loans that have good market and industry

support, experienced principals and management, and supportive

financial ratios

We have always required personal guarantees from parties with financial

strength

We have stayed away from riskier products such as subprime, option

ARM’s, stated income, mezzanine financing, credit cards, and we do very

little unsecured lending

What Gives Us Comfort in Today’s Market

7

$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

2Q07

3Q07

$0.43

$0.44

1

$0.45

2%

8

$422

$455

$495

$567

$709

$755

$190

$196

2001

2002

2003

2004

2005

2006

2Q07

3Q07

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%   

3.66%    3.65%

Net Interest

Margin

3%

9

Net Interest Income and Margin

($ in millions)

Tax

Equivalent

NII

NIM

2Q07

191.6

$           

3.66%

Commercial Bank of Florida

4.5

-0.01%

Decrease in Loan Volumes

(3.3)

0.00%

Increase in Securities

1.1

-0.05%

Redemptions

2.9

0.05%

New FHLB Advances

0.8

0.02%

Deposit Mix Change offset partially

by lower deposit rates

(1.0)

-0.02%

Day Count

1.4

3Q07

198.0

$           

3.65%

New REIT Issuance and Trust Preferred     

10

$8,433

$8,734

$9,419

$10,862

$13,988

$15,788

$16,464

$16,682

2001

2002

2003

2004

2005

2006

2Q07

3Q07

Average Deposits

4%

8%

15%

1

Excluding the acquisition

($ in millions)

29%

3 Year CAGR = 19%

2003 -

2006

87%

13%

1%

-2%

1

11

2.30%

2.37%

2.42%

2.42%

2.34%

2.35%

2.29%

2.38%

2.24%

2002

2003

2004

2005

2006

Sep

YTD

06

Sep

YTD

07

2Q07

3Q07

$107

$141

$146

$176

$182

$132

$152

$53

$53

2002

2003

2004

2005

2006

Sep

YTD

06

Sep

YTD

07

2Q07

3Q07

Strong Growth in Noninterest

Income

and Controlled Expenses

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,

changes

in

fair

value

of

swap

derivatives

and

gain

on

sale

of

Goldleaf,

merchant

services,

branches

and

mortgage

loans

2

Excluded

from

noninterest

expense

are

net

losses

related

to

the

early

extinguishment

of

debt,

severance

expense

and

merger

related

expenses

-3%

15%

($ in millions)

-6%

12

Sep

Sep

YTD

YTD

% Change

2007

2006

3Q07

2Q07

YTD

QTD

Service charges on deposit accounts

55.7

$   

46.2

$   

19.4

$  

18.7

$  

21%

4%

Electronic banking

14.0

12.8

4.9

4.6

9%

7%

Other retail banking fees

9.7

10.9

2.8

3.3

-11%

-15%

Retail Banking Fees

79.4

69.9

27.1

26.6

14%

2%

Financial planning services

12.6

10.7

4.5

4.3

18%

5%

Mortgage banking origination and sales

10.1

9.8

3.2

3.7

3%

-14%

Mortgage warehouse fees

19.2

18.4

5.9

6.3

4%

-6%

Bank-owned life insurance

15.0

12.2

5.1

5.0

23%

2%

Other income

15.8

11.2

7.2

6.9

41%

4%

Core Noninterest Income

152.1

132.2

53.0

52.8

15%

0%

Securities and derivatives gains, net

2.1

4.4

-

1.1

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

-

-

4.9

NM

NM

Gain on sale of Goldleaf

-

2.8

-

-

NM

NM

Total Noninterest Income

127.0

$ 

139.4

$ 

53.0

$  

58.8

$  

-9%

-10%

  Annualized Noninterest Income to Average Assets¹

0.87%

0.80%

0.88%

0.92%

  Noninterest Income to Total Revenue¹

21.2%

18.8%

21.3%

21.7%

Noninterest Income

($ in millions)

1

Core noninterest income was used in the calculation

13

Noninterest Expense

($ in millions)

1

Core

noninterest

income

and

core

noninterest

expense

are

used

in

the

calculation

Sep

Sep

YTD

YTD

% Change

2007

2006

3Q07

2Q07

YTD

QTD

Salaries and employee benefits

208.2

$

212.2

$ 

68.3

$  

70.3

$  

-2%

-3%

Occupancy expense of bank premises, net

56.9

49.1

19.6

18.7

16%

5%

Furniture and equipment expense

39.7

35.6

13.2

13.4

12%

-1%

Professional services

13.7

13.7

5.0

4.6

0%

9%

Electronic banking and other retail banking expenses

15.5

9.1

5.8

5.5

70%

5%

Amortization of intangible assets

9.7

9.2

3.5

3.2

5%

9%

Communications

8.6

7.9

2.7

2.9

9%

-7%

Postage and courier

7.9

8.1

2.6

2.7

-2%

-4%

Advertising

7.4

8.3

1.6

3.7

-11%

-57%

Travel

5.3

6.1

1.6

2.0

-13%

-20%

Other expense

28.4

29.8

9.8

10.4

-5%

-6%

Core Noninterest

Expense

401.3

389.1

133.7

137.4

3%

-3%

Severance expense

4.1

-

0.5

0.5

NM

NM

Merger related expenses

2.3

-

0.8

1.1

NM

NM

Net losses related to the early extinguishment of debt

6.9

-

-

2.5

NM

NM

Total Noninterest

Expense

414.6

$

389.1

$ 

135.0

$

141.5

$

7%

-5%

Efficiency Ratio

1

55.56%

55.27%

53.29%

56.20%

Annualized Noninterest

Expense to Average Assets

1

2.29%

2.35%

2.24%

2.38%

14

Record Earnings Per Share of $0.45

Net Interest Margin of 3.65%

Sound Credit Quality

Strong fee income growth and effective expense management –

Improved efficiency ratio of 53.29%

Summary

15

$.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%

16

Supplemental Information

17

EPS Reconciliation

2007

1Q07

2Q07

3Q07

YTD

Diluted earnings per share -

GAAP

0.24

$

0.43

$

0.45

$

1.11

$

Impact

of

restructuring

charges:

Loss on securities portfolio

0.23

-

-

0.23

Loss on extinguishment of debt

0.03

0.02

-

0.05

0.26

0.02

-

0.28

Income tax benefit

(0.09)

(0.01)

-

(0.10)

After tax restructuring charge

0.17

0.01

-

0.18

Diluted earnings per share, excluding

restructuring charges

0.41

$

0.44

$

0.45

$

1.29

$

18

Selected Average Balances

($ in millions)

% Change

3Q07

2Q07

3Q06

2Q07

3Q06

Earning Assets

21,584

$    

20,969

$    

20,886

$    

3%

3%

Loans, Net of Unearned Income

15,312

15,113

15,505

1%

-1%

Loans Held for Sale

1,637

1,881

1,680

-13%

-3%

Securities 

3,088

2,596

3,035

19%

2%

Resell Agreements and Other Interest Earning Assets

1,547

1,379

666

12%

132%

Total Assets

23,873

23,097

22,691

3%

5%

Total Deposits

16,682

16,464

15,899

1%

5%

Noninterest Bearing Deposits

2,950

2,936

2,926

0%

1%

Interest Bearing Transaction Accounts

6,412

6,375

6,135

1%

5%

Time Deposits

7,320

7,153

6,838

2%

7%

Repurchase Agreements

562

511

849

10%

-34%

S/T Borrowings and Fed Funds

655

636

1,510

3%

-57%

L/T Debt

3,291

3,034

2,294

8%

43%

Shareholders' Equity

2,176

2,166

1,998

0%

9%

19

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 9/30/07 are as follows:

In the Right Places

$24.5 Billion in Assets

$16.9 Billion in Deposits

323 Branches

1

At 9/30/07

*Projected Population change from 2006-2011

Source: US Census Bureau

AL 16%

GA 6%

FL 59%

Corp 8%

TX 7%

NV 4%

FL 61%

AL 24%

TX 4%

GA 4%

NV 4%

Corp 3%

NV 15

TX 16

FL 183

GA 19

AL  90

20

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

21

0.21%

0.29%

0.65%

0.78%

0.64%

0.54%

0.55%

0.60%

0.71%

0.84%

0.78%

0.85%

1.25%

0.46%

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

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

9/30/07

Colonial BancGroup

FDIC - Commercial Banks with Assets > $10 Billion

(as originally reported)

NPAs Consistently Below Industry

1

At 6/30/07

22

Net Charge-Offs/Average Loans

(as originally reported)

1

YTD

6/30/07

Annualized

2

Annualized

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%

0.18%

2

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

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

Sep

YTD

2007

Colonial BancGroup

FDIC -

Commercial Banks with Assets > $10 Billion