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): November 26, 2007

THE COLONIAL BANCGROUP, INC.

(Exact name of registrant as specified in its charter)

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

100 Colonial Bank Blvd.

Montgomery, Alabama 36117

(Address of principal executive offices)

(334) 676-5000

(Registrant’s telephone number)

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

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

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

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

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

Item 7.01 Regulation FD Disclosure.

The Colonial BancGroup, Inc. (BancGroup) is furnishing this Current Report on Form 8-K in connection with management’s presentation at the Fox-Pitt Kelton Financial Services Conference in Naples, Florida on November 29, 2007. Management will also be participating in meetings with various analysts and investors beginning November 26, 2007 and continuing through the completion of the conference on November 29, 2007.

Item 9.01 Financial Statements and Exhibits.

The following exhibit is being 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,” “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.

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: November 26, 2007

4

EX-99.1

Fox-Pitt Kelton

Financial Services Conference

November 29, 2007

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

$24.5 Billion in assets with 323 Branches at 9/30/2007

Top 25

*

U.S. Commercial Bank (non-foreign owned)

Proven Community Banking Philosophy with Regional Bank

Management and Local Boards of Directors

Top 5* Market Share in 85% 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 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 2007-2012

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

5

Superior Projected Population Growth

Source: SNL Financial.

Deposit data as of 6/30/07.

Population growth deposit weighted by county.

2007 - 2012 Population Growth

Colonial BancGroup, Inc.

11.17

%

South Financial Group, Inc.

9.78

SunTrust Banks, Inc.

9.50

Wachovia Corporation

8.41

Synovus Financial Corp.

7.97

BB&T Corporation

7.74

Regions Financial Corporation

6.06

Bank of America Corporation

5.84

Whitney Holding Corporation

5.28

Trustmark Corporation

5.03

Fifth Third Bancorp

4.39

BancorpSouth, Inc.

4.23

First Horizon National Corporation

3.81

Median

6.06

%

Low

3.81

High

11.17

Total U.S.

6.26

6

Credit

7

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

8

Credit Quality –

YTD 2007 Update

Credit quality is sound and within expectations

Quality Residential RE portfolio –

no subprime; no stated income; no

exotic products

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

and 0.27% annualized for the third quarter

Allowance for loan losses was 1.14% of total loans, compared to 1.13%

at 12/31/06

Allowance was 246% of nonperforming assets at 9/30/07

Allowance would be sufficient to cover charge-offs for 6.42 years at YTD

annualized levels

9

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

10

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%

1.32%

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

1

11

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 strong

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

support, experienced principals and management, and supportive

financial ratios

We require 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

12

Financial Highlights

13

3Q07 Financial Highlights

Record EPS of $0.45

Good growth in net interest income

•

Up 3% over both 2Q07 and 3Q06

•

Net interest margin of 3.65%

Strong core noninterest

income growth of 16% over 3Q06

Effective expense controls

•

Core noninterest

expense decreased 3% from 2Q07; up only 1% over 3Q06

Improved

efficiency

ratio

1

of

53.29%

compared

to

56.20%

for

2Q07

and

55.77% for 3Q06

1

Calculated using core noninterest

income and expense

14

$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

3Q06

2Q07

3Q07

$0.43

$0.44

1

$0.45

2%

$0.44

15

$422

$455

$495

$567

$709

$755

$191

$190

$196

2001

2002

2003

2004

2005

2006

3Q06

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%   

3.64%

3.66%    3.65%

Net Interest

Margin

3%

16

Interest rate risk position has been managed to a relatively neutral

position over one year horizon

During the first half of 2007, Colonial sold approximately $1.2 billion of

securities or 1/3 of the investment portfolio and approximately $490

million of ARM loans

Opportunistically acquired high quality securities during 3Q07

•

Increased the yield on investment securities by 20 basis points from 2Q07 to 3Q07

•

Securities were 14.6% of ending assets at 9/30/07

Actively managing the cost of funding

•

Prepaid $185 million of trust preferred debt YTD

•

Funded asset growth with $800 million of FHLB borrowings at an average rate of

4% in the 3Q07

Deposit costs remain high

Net Interest Income

17

$8,433

$8,734

$9,419

$10,862

$13,988

$15,788

$15,899

$16,464

$16,682

2001

2002

2003

2004

2005

2006

3Q06

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

Cost of Average Deposits

3.13%         3.39%          3.38%

18

2.30%

2.37%

2.42%

2.42%

2.34%

2.35%

2.29%

2.33%

2.38%

2.24%

2002

2003

2004

2005

2006

Sep

YTD

06

Sep

YTD

07

3Q06

2Q07

3Q07

$107

$141

$146

$176

$182

$132

$152

$46

$53

$53

2002

2003

2004

2005

2006

Sep

YTD

06

Sep

YTD

07

3Q06

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%

19

Strong capital position

•

Issued $300 million of REIT preferred securities with a 7.11% dividend in May

which increased tangible capital and regulatory capital ratios

•

Key ratios at 9/30/07:

Actual

Target

-

Tangible common ratio

5.32%

5-6%

-

Tangible capital ratio

6.56%

5-6%

-

Tier I leverage

7.34%          6-7%

-

Total capital ratio

11.50%      10-12%

Strong liquidity 

•

Ample sources of liquidity which allows Colonial to use the lowest cost funding

available

Strong, high quality investment portfolio

•

99.8% of the portfolio is AAA rated or government backed

•

No subprime

exposure

We have increased our dividend for 17 consecutive years and we plan

to make it 18

Capital and Liquidity

20

$.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

10%

21

Retail Banking

22

Noninterest

Income Growth Goal

Retail Banking Fees up 14%* YTD

•

Focus on household checking account growth

•

Increase

debit

card

penetration

in

consumer

and

business

banking

households

Financial Planning Services Revenue up 17%* YTD

•

Increased number of Financial Consultants

•

Diversification of revenue

•

Enhanced sales management through additional resources

Treasury Management Services Revenue up 25%* YTD

•

Express Deposit (Remote Deposit Capture Product)

•

Cross-sale of services to new and existing commercial checking customers

25% of revenue from fee-based services

(currently 21% QTD)

Retail Banking

*Year over year

23

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

$509

2004

2005

2006

Sept 2007

Deposits

($ in millions)

434,267

591,046

706,071

780,773

2004

2005

2006

Sept 2007

Units Served

32%*

14%*

*Annualized

24

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

25

Why Invest in Colonial BancGroup?

In the Right Locations for Continued Success

Conservative Lending Philosophy

•

Sound 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

Total

Annualized

1 Year

11%

11%

2 Year

28%

13%

3 Year

62%

17%

5 Year

115%

17%

26

Supplemental Information

27

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

$

28

Loan Portfolio and Earning Assets

Distribution

(as of Sept. 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

71%

Securities

14%

Loans Held for

Sale

8%

Short Term

Investments

7%

Average Earning Assets

(for 3Q07)

29

Office

22%

Multi-Family

9%

Other

8%

Storage Buildings

15%

Retail

25%

Healthcare

6%

Farm

3%

Industrial

2%

Church/School

4%

Lodging

5%

Recreation

1%

Commercial Real Estate

Loan Portfolio Distribution

34% Owner Occupied

Average loan size = $680 thousand

Characteristics of 75 largest loans:

•

Total $745 million and represent

16.2% of CRE portfolio

•

Loan to value ratio is low at 68.6%

•

Average debt coverage ratio = 1.48x

(as of Sept. 30, 2007)

30

Construction Loan Portfolio Distribution

(as of Sept. 30, 2007)

Average loan size = $950 thousand

Characteristics of 75 largest loans:

•

Total $1.4 billion and represent

21.8% of construction portfolio

•

Average loan to value ratio is 69.4%

Residential Land

7%

Commercial Land

17%

Condominium

6%

Residential Home

Construction

14%

Storage

Buildings

2%

Residential

Development

26%

Office

3%

Multi-Family

4%

Commercial

Development

9%

Other

6%

Retail

6%

31

Diversified CRE/Construction Loan Portfolio

(as of Sept. 30, 2007)

Property Type

Total Exposure

Central FL

West Coast  FL

South FL

Panhandle FL

Northern FL

Alabama

Georgia

Texas

Nevada

Other

Retail

13.79%

1.32%

2.51%

2.88%

0.14%

0.31%

1.22%

0.86%

1.76%

1.06%

1.73%

Retail - other than gas stations

11.23%

1.12%

1.63%

2.34%

0.14%

0.11%

0.81%

0.65%

1.74%

0.99%

1.70%

Gas Station/Convenience Store

2.56%

0.20%

0.88%

0.54%

0.00%

0.20%

0.41%

0.21%

0.02%

0.07%

0.03%

Residential Development

14.53%

3.09%

1.71%

0.47%

0.85%

0.13%

1.50%

1.87%

3.72%

0.74%

0.45%

Builder Lot Inventory

1.85%

0.06%

0.25%

0.22%

0.19%

0.00%

0.20%

0.37%

0.53%

0.01%

0.02%

Commercial Development

5.16%

1.06%

0.90%

0.65%

0.00%

0.11%

0.18%

0.15%

0.62%

1.24%

0.25%

Commercial Lot Inventory

1.21%

0.13%

0.20%

0.31%

0.01%

0.00%

0.06%

0.32%

0.16%

0.00%

0.02%

Residential Homes (under construction)

11.12%

2.17%

1.24%

0.79%

0.25%

0.03%

2.05%

2.48%

1.06%

0.85%

0.20%

Multi-family

7.15%

0.62%

1.81%

1.29%

0.11%

0.09%

0.83%

0.13%

1.11%

0.21%

0.95%

Land Only

14.39%

2.56%

2.87%

1.43%

1.39%

0.14%

1.10%

0.45%

1.67%

1.41%

1.37%

Commercial Land

9.80%

1.80%

2.14%

1.13%

0.86%

0.13%

0.93%

0.23%

0.99%

0.69%

0.90%

Residential Land

4.59%

0.76%

0.73%

0.30%

0.53%

0.01%

0.17%

0.22%

0.68%

0.72%

0.47%

Office

8.12%

1.11%

2.01%

2.22%

0.09%

0.06%

0.61%

0.48%

0.82%

0.37%

0.35%

Office - non-medical

7.19%

0.87%

1.85%

2.16%

0.09%

0.06%

0.55%

0.43%

0.61%

0.32%

0.25%

Office - Medical

0.93%

0.24%

0.16%

0.06%

0.00%

0.00%

0.06%

0.05%

0.21%

0.05%

0.10%

Condominium Bldgs - Construction

4.88%

1.38%

1.43%

0.48%

0.34%

0.04%

0.18%

0.27%

0.18%

0.25%

0.33%

Warehouse

5.34%

0.82%

1.11%

1.68%

0.02%

0.04%

0.55%

0.24%

0.11%

0.70%

0.07%

Warehouse with Office

3.03%

0.55%

0.82%

0.92%

0.02%

0.03%

0.21%

0.15%

0.06%

0.27%

0.00%

Warehouse

1.46%

0.18%

0.16%

0.73%

0.00%

0.00%

0.22%

0.06%

0.04%

0.04%

0.03%

Mini-Warehouse

0.85%

0.09%

0.13%

0.03%

0.00%

0.01%

0.12%

0.03%

0.01%

0.39%

0.04%

Healthcare - Living Facility

2.68%

0.00%

0.21%

0.02%

0.05%

0.05%

0.55%

0.63%

0.34%

0.00%

0.83%

Skilled Nursing Facility

1.24%

0.00%

0.14%

0.00%

0.05%

0.05%

0.51%

0.14%

0.00%

0.00%

0.35%

Assisted Living Facility

1.44%

0.00%

0.07%

0.02%

0.00%

0.00%

0.04%

0.49%

0.34%

0.00%

0.48%

Healthcare

1.70%

0.06%

0.09%

0.01%

0.00%

0.01%

0.04%

0.00%

1.41%

0.01%

0.07%

Lodging

3.99%

0.31%

0.67%

0.24%

0.00%

0.05%

0.43%

0.68%

0.58%

0.12%

0.91%

Recreation

0.15%

0.04%

0.06%

0.00%

0.00%

0.01%

0.04%

0.00%

0.00%

0.00%

0.00%

Industrial

0.80%

0.07%

0.18%

0.05%

0.00%

0.00%

0.06%

0.04%

0.15%

0.07%

0.18%

Farm

0.81%

0.14%

0.10%

0.27%

0.05%

0.02%

0.09%

0.01%

0.07%

0.00%

0.06%

All Other Types

2.33%

0.34%

0.53%

0.63%

0.13%

0.13%

0.23%

0.20%

0.11%

0.02%

0.01%

Total

100.00%

15.28%

17.88%

13.64%

3.62%

1.22%

9.92%

9.18%

14.40%

7.06%

7.80%

Includes Commercial Real Estate and Construction Loan Exposures

(Principal Balances and Amounts Available To Be Drawn)

Expressed as a Percentage of Commercial Real Estate Portfolio

Commercial Real Estate Exposures by Geographic Location

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 –

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%

34

Past Due Loans

1.35%

1.39%

1.16%

0.90%

0.48%

0.48%

0.45%

0.67%

0.99%

1.12%

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

Sep-07

Colonial

FDIC - Commercial Banks with Assets > $10 billion