Presentation materials

Third Quarter 2007

Earnings Overview

Exhibit 99.2

Forward Looking Statements

This

presentation

includes

“forward-looking

statements”

within

the

meaning

the

federal

securities

laws.

Words

such

“believes,”

“estimates,”

“plans,”

“expects,”

“should,”

“may,”

“might,”

“outlook,”

“potential”

and

“anticipates,”

the

negative

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

this

presentation

are

subject

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

this

presentation

previously

disclosed

BancGroup’s

SEC

reports

(accessible

the

SEC’s

website

www.sec.gov

BancGroup’s

website

www.colonialbank.com),

the

following

factors,

among

others,

could

cause

actual

results

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

behalf

BancGroup.

Any

such

statement

speaks

only

the

date

the

statement

was

made

such

date

that

may

referenced

within

the

statement.

BancGroup

does

not

undertake

any

obligation

update

revise

any

forward-looking

statements.

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

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

1.13% at 12/31/06

The allowance covered 246% of nonperforming assets

Summary of Loan Loss Experience

2003 –

3Q07

Annualized

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%

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

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%

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

$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%

Excluding restructuring charges

2Q07

3Q07

$0.43

$0.44

$0.45

$422

$455

$495

$567

$709

$755

$190

$196

2001

2002

2003

2004

2005

2006

2Q07

3Q07

Net Interest Income

($ in millions)

15%

25%

3 Year CAGR = 15%

2003 -

2006

79%

3.57% 3.55% 3.38% 3.52% 3.75% 3.71%

3.66% 3.65%

Net Interest

Margin

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

$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

15%

Excluding the acquisition

($ in millions)

29%

3 Year CAGR = 19%

2003 -

2006

87%

13%

-2%

2.30%

2.37%

2.42%

2.34%

2.35%

2.29%

2.38%

2.24%

2002

2003

2004

2005

2006

Sep

YTD

Sep

YTD

2Q07

3Q07

$107

$141

$146

$176

$182

$132

$152

$53

2002

2003

2004

2005

2006

Sep

YTD

Sep

YTD

2Q07

3Q07

Strong Growth in Noninterest

Income

and Controlled Expenses

Core Noninterest

Income

Growth

Core Noninterest

Expense

to Average Assets

Excluded

from

noninterest

income

are

securities

and

derivatives

gains

(losses),

securities

restructuring

charges,

changes

fair

value

swap

derivatives

and

gain

sale

Goldleaf,

merchant

services,

branches

and

mortgage

loans

Excluded

from

noninterest

expense

are

net

losses

the

early

extinguishment

debt,

severance

expense

and

merger

expenses

-3%

15%

($ in millions)

-6%

Sep

YTD

% Change

2007

2006

3Q07

2Q07

YTD

QTD

Service charges on deposit accounts

55.7

46.2

19.4

18.7

21%

Electronic banking

14.0

12.8

4.9

4.6

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%

Financial planning services

12.6

10.7

4.5

4.3

18%

Mortgage banking origination and sales

10.1

9.8

3.2

3.7

-14%

Mortgage warehouse fees

19.2

18.4

5.9

6.3

-6%

Bank-owned life insurance

15.0

12.2

5.1

5.0

23%

Other income

15.8

11.2

7.2

6.9

41%

Core Noninterest Income

152.1

132.2

53.0

52.8

15%

Securities and derivatives gains, net

2.1

4.4

1.1

Securities restructuring charges

(36.0)

Gain on sale of mortgage loans

3.9

Gain on sale of merchant services

4.9

Gain on sale of Goldleaf

2.8

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)

Core noninterest income was used in the calculation

Noninterest Expense

($ in millions)

Core

noninterest

income

and

core

noninterest

expense

are

used

the

calculation

Sep

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%

Furniture and equipment expense

39.7

35.6

13.2

13.4

12%

-1%

Professional services

13.7

5.0

4.6

Electronic banking and other retail banking expenses

15.5

9.1

5.8

5.5

70%

Amortization of intangible assets

9.7

9.2

3.5

3.2

Communications

8.6

7.9

2.7

2.9

-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%

Severance expense

4.1

0.5

Merger related expenses

2.3

0.8

1.1

Net losses related to the early extinguishment of debt

6.9

2.5

Total Noninterest

Expense

414.6

389.1

135.0

141.5

-5%

Efficiency Ratio

55.56%

55.27%

53.29%

56.20%

Annualized Noninterest

Expense to Average Assets

2.29%

2.35%

2.24%

2.38%

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

$.16

$.17

$.18

$.20

$.22

$.27

$.30

$.34

$.38

$.44

$.48

$.52

$.56

$.58

$.61

$.68

$.75*

'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%

Supplemental Information

EPS Reconciliation

2007

1Q07

2Q07

3Q07

YTD

Diluted earnings per share -

GAAP

0.24

0.43

0.45

1.11

Impact

restructuring

charges:

Loss on securities portfolio

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

Selected Average Balances

($ in millions)

% Change

3Q07

2Q07

3Q06

2Q07

3Q06

Earning Assets

21,584

20,969

20,886

Loans, Net of Unearned Income

15,312

15,113

15,505

-1%

Loans Held for Sale

1,637

1,881

1,680

-13%

-3%

Securities

3,088

2,596

3,035

19%

Resell Agreements and Other Interest Earning Assets

1,547

1,379

666

12%

132%

Total Assets

23,873

23,097

22,691

Total Deposits

16,682

16,464

15,899

Noninterest Bearing Deposits

2,950

2,936

2,926

Interest Bearing Transaction Accounts

6,412

6,375

6,135

Time Deposits

7,320

7,153

6,838

Repurchase Agreements

562

511

849

10%

-34%

S/T Borrowings and Fed Funds

655

636

1,510

-57%

L/T Debt

3,291

3,034

2,294

43%

Shareholders' Equity

2,176

2,166

1,998

73%

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

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

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

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%

1.03%

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

9/30/07

Colonial BancGroup

FDIC - Commercial Banks with Assets > $10 Billion

(as originally reported)

NPAs Consistently Below Industry

At 6/30/07

Net Charge-Offs/Average Loans

(as originally reported)

YTD

6/30/07

Annualized

0.33%

0.09%

0.13%

0.18%

0.23%

0.26%

0.21%

0.28%

0.29%

0.31%

0.19%

0.14%

0.12%

0.18%

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

Sep

YTD

2007

Colonial BancGroup

FDIC -

Commercial Banks with Assets > $10 Billion