EX-99.2 9 dex992.htm PRESENTATION MATERIALS Presentation materials
The Best Things Come OUT OF THE BLUE
Fourth Quarter 2005
Earnings Overview
Exhibit 99.2

2
The Best Things Come OUT OF THE BLUE
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,”
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
these
reports
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
2006
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);
•
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
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Record Earnings in 4Q 2005
•
Net Income of $61.5 million; up 33% over 4Q 2004
•
EPS of $0.40; up 18% over 4Q 2004
Strong increase in revenues
up 20% over 4Q 2004
•
9
consecutive quarter of expanded Net Interest Margin
•
Net Interest Income increased 21% over 4Q 2004
•
Noninterest Income
1
increased 15% over 4Q 2004
Solid Internal Loan Growth
of 10% over prior year, 8% annualized from
the end of 3Q
Overview
1
Excluding gains/losses on securities, branch sales and derivatives
2
Excluding Mortgage Warehouse Lending, acquisitions and sale of branches
1
2
th

4
The Best Things Come OUT OF THE BLUE
Overview
(cont’d)
Outstanding
Deposit
Growth
•
Average Deposits grew internally 16% from the 4Q04; 11% annualized
over 3Q 2005
•
Florida Franchise had 23% internal growth in period-end deposits from
12/31/04
Excellent Credit Quality
•
Nonperforming Assets Ratio at a very low level of 0.21%
•
Excellent net charge off history; 0.09%* for the quarter and 0.14% for
2005
*
Annualized
1
Excluding acquisitions, sale of branches and brokered deposits
1

5
The Best Things Come OUT OF THE BLUE
FL
58%
AL
22%
TX
4%
GA
5%
NV
5%
Corp
6%
FL
56%
GA
6%
AL
16%
Corp
12%
TX
6%
NV
4%
NV
14
TX
13
FL
160
GA
21
AL
93
Colonial is in four of the fastest growing states in the country
72%* of Total Deposits are in Florida, Georgia, Texas and Nevada
Projected population growth from 2005-2010 is expected to be 10.95% in our
markets versus the national average of 6.26%
Branches, Assets and Deposits at 12/31/05 are as follows:
In the Right Places
* At 12/31/05
301 Branches
$21 Billion in Assets
$15.5 Billion in Deposits

6
The Best Things Come OUT OF THE BLUE
Superior Projected Population Growth
2005 - 2010 Population Growth
Colonial BancGroup, Inc.
10.95
%
Compass Bancshares, Inc.
9.97
Wachovia Corporation
8.85
SunTrust Banks, Inc.
8.72
South Financial Group, Inc.
8.68
Synovus Financial Corp.
7.17
Bank of America Corporation
6.95
BB&T Corporation
6.80
AmSouth Bancorporation
6.46
Regions Financial Corporation
5.86
First Horizon National Corporation
5.27
Fifth Third Bancorp
4.51
Trustmark Corporation
4.15
Whitney Holding Corporation
3.80
BancorpSouth, Inc.
3.46
Median
6.80
%
Low
3.46
High
10.95
National Average
6.26
Source: SNL Financial.
Deposit data as of 6/30/05.
Population growth deposit weighted by county.

7
The Best Things Come OUT OF THE BLUE
Entered Florida in July of 1996
•
Began Florida franchise with $232 million in assets, 8 branches in Orlando
Florida at 12/31/05:
•
58% of Deposits in Florida –
Total Deposits of $9 Billion
•
56% of Assets in Florida –
Total Assets of $12 Billion
•
53% of Branches in Florida –
Total Branches –
160
Strong loan and deposit growth
•
Loan growth, excluding acquisitions and mortgage warehouse lending, was 15%
for 2005
•
Deposit growth, excluding acquisitions, was 23% for 2005
Florida Franchise

8
16 Planned Branches through 12/31/06
Current Branches at 12/31/05
CENTRAL
FLORIDA
Assets = $3.2 Billion
Deposits = $2.9 Billion
60 Branches
MORTGAGE
WHSE.
Assets = $2.2 Billion
Deposits = $524 Million
FLORIDA WEST COAST
Assets = $3.0 Billion
Deposits = $2.7 Billion
53 Branches
Current Population
2,500,000
500,000
100,000
PANHANDLE
Assets = $411 Million
Deposits = $52 Million
1 Branch
Florida Franchise and Current Population
SOUTH
FLORIDA
Assets = $3.2 Billion
Deposits = $2.8 Billion
46 Branches

9
The Best Things Come OUT OF THE BLUE
$1.55
$1.33
$1.20
$1.16
$1.06
$1.00
2000
2001
2002
2003
2004
2005
$0.40
$0.34
$1.52
$1.31
$1.16
$1.26
$1.06
$1.00
2000
2001
2002
2003
2004
2005
4Q04
4Q05
(diluted)
Originally Reported
As Restated
* As if restatement had not occurred
Earnings Per Share
*
11%
3%
9%
6%
17%
6%
19%
(8)%
13%
16%
18%

10
The Best Things Come OUT OF THE BLUE
$175
$150
$140
$122
$115
$233
2000
2001
2002
2003
2004
2005
$62
$46
$229
$173
$146
$151
$122
$115
2000
2001
2002
2003
2004
2005
4Q04
4Q05
($ in millions)
Net Income
Originally Reported
As Restated
* As if restatement had not occurred
15%
7%
6%
17%
33%
*
33%
6%
18%
32%
24%
(3)%

11
The Best Things Come OUT OF THE BLUE
$187
$709
$400
$422
$455
$495
$567
2000
2001
2002
2003
2004
2005
4Q04
4Q05
$154
Net Interest Income as restated
($ in millions)
6%
8%
9%
15%
21%
25%

12
The Best Things Come OUT OF THE BLUE
Net Interest Income
Net Interest Income increased 21% over 4Q04 and 3% annualized over 3Q05
•
Average
earning
assets
decreased
$261
million
from
the
3Q05
as
the
Company
replaced
investment
securities
and
mortgage
warehouse
assets
with
higher
yielding
loan
growth
•
Net interest margin expanded 7 bps from 3Q05
Yield on average earning assets up 35 bps over 3Q05
•
Loans comprised 76% of Average Earning Assets in 4Q05
76% of loans are adjustable or variable rate
•
Securities comprised 15% of average earning assets in the quarter

13
The Best Things Come OUT OF THE BLUE
Net
Interest
Income
(cont’d)
Strong Average Deposit Growth replaced Costly Wholesale Borrowings
•
Average
Deposits
increased
$458
million
or
3%
linked
quarter;
internal
growth
in
average
deposits
1
was
$390
million
or
11%
annualized
for
the
quarter
•
Deposits
comprised
72%
of
average
total
assets
in
4Q05
compared
to
69%
in
3Q05 and 63% in 4Q04
•
Cost
of
interest
bearing
deposits
was
160
bps
less
than
the
rate
on
average
wholesale
borrowings
in
4Q05
Subordinated Debt Exchange
•
Exchanged $137 million in subordinated debt and issued $144 million in new debt;
lowered interest cost by 49 basis points and increased Tier II Capital
1
Excluding acquisitions, sale of branches and brokered deposits

14
The Best Things Come OUT OF THE BLUE
$10,862
$9,419
$8,734
$8,435
$8,252
$14,786
2000
2001
2002
2003
2004
2005
3Q05
4Q05
Average Deposits
2%
4%
8%
15%
1
Excluding acquisitions, sale of branches, and brokered deposits
*Annualized
11%
1*
($ in millions)
12%*
$13,988
$15,244
16% 1
29%

15
The Best Things Come OUT OF THE BLUE
Net Interest Margin Improvement
3.85%
3.83%
3.78%
3.72%
3.68%
3.64%
3.60%
3.58%
3.53%
3.43%
3.78%
3.72%
3.64%
3.58%
3.53%
3.49%
3.45%
3.41%
3.36%
3.10%
3.20%
3.30%
3.40%
3.50%
3.60%
3.70%
3.80%
3.90%
3Q03
4Q03
1Q04
2Q04
3Q04
4Q04
1Q05
2Q05
3Q05
4Q05
Originally Reported
As Restated

16
The Best Things Come OUT OF THE BLUE
Net Interest Margin
NIM up 7 bps to 3.85% in 4Q05 from 3.78% in 3Q05
9
Consecutive Quarter of NIM Expansion
NIM expansion was primarily driven by the additional mortgage warehouse
asset securitization of $500 million at the end of the 3Q which contributed 5 bps
to margin
th

17
The Best Things Come OUT OF THE BLUE
Credit Quality
Nonperforming Assets ratio was 0.21% at 12/31/05
Net Charge-Off Ratio was 0.09%* for the quarter and 0.14% for 2005
Provision exceeded net charge-offs in 4Q05 and for 2005
Past dues > 30 days were 0.48% of net loans, down from 0.58% at 9/30/05
Allowance for loan losses was 1.15%, or 536% of nonperforming assets
*
Annualized

18
The Best Things Come OUT OF THE BLUE
Noninterest Income
($ in millions)
4Q05
3Q05
$ Change
% Change
Service charges on deposit accounts
14.5
$     
15.3
$     
(0.8)
$      
-5%
Financial planning services
2.6
         
3.6
         
(1.0)
        
-28%
Electronic banking
4.0
         
3.9
         
0.1
         
3%
Mortgage banking
2.8
         
4.5
         
(1.7)
        
-38%
Mortgage warehouse fees
6.8
         
4.5
         
2.3
         
51%
Bank-owned life insurance
3.5
         
3.6
         
(0.1)
        
-3%
Net cash settlement of swaps
1.5
         
2.5
         
(1.0)
        
-40%
Other income (2)
7.9
         
8.5
         
(0.6)
        
-7%
43.6
       
46.4
       
(2.8)
        
-6%
Securities (losses) gains, net
(20.0)
      
0.0
(20.0)
      
0%
Gain on sale of branches
27.4
       
0.0
27.4
       
0%
Change in fair value of swaps
(6.7)
        
(7.1)
       
0.4
         
-6%
        Total Noninterest Income
44.3
$     
39.3
$     
5.0
$       
13%
Noninterest Income to Average Assets (1)
0.82%
0.86%
Noninterest Income to Total Revenue (1)
18.9%
20.0%
(1)   Excluding gains (losses) on securities, deriviatives and branches
(2)   Includes nonrecurring gains of $84,000 in 3Q05

19
The Best Things Come OUT OF THE BLUE
Significant Transactions
•
Completed the sale of 13 branches in northwest Alabama; sold $375 million of
deposits; $65 million of loans and recognized a gain of $27 million
•
In
December,
the
Company
sold
approximately
$332
million
in
securities
yielding
4.35%
at
a
loss
of
$9.4
million.
These
securities
were
replaced
with
securities
yielding
5.43%
with
a
similar
duration
of
3.4
years.
The
Company
also
declared
its
intent
to
sell
approximately
$481
million
in
securities
yielding
4.86%
with
an
average
life
of
4.1
years
and
recognized
a
loss
of
$10.6
million.
The
Company
expects
to
sell
and
replace
these
with
higher
yielding
securities
with
a
longer
duration.
•
The
Company
recognized
a
$6.7
million
loss
on
the
change
in
fair
value
in
interest
rate
swaps
on
its
trust
preferreds
and
brokered
certificates
of
deposit.
Noninterest Income –
Significant Transactions

20
The Best Things Come OUT OF THE BLUE
Noninterest Expense
($ in millions)
4Q05
3Q05
$ Change
% Change
Salaries and employee benefits
66.6
$     
70.2
$     
(3.6)
$      
-5%
Occupancy expense of bank premises, net
17.4
       
16.0
       
1.4
         
9%
Furniture and equipment expense
11.7
       
11.4
       
0.3
         
3%
Professional services
6.9
         
5.5
         
1.4
         
25%
Amortization of intangibles
3.1
         
3.0
         
0.1
         
3%
Advertising
3.7
         
3.6
         
0.1
         
3%
Other expense
22.7
       
22.0
       
0.7
         
3%
132.1
     
131.7
     
0.4
         
0%
Merger related expenses
0.4
         
0.6
         
(0.2)
        
-33%
Net losses related to the early extinguishment of debt
0.0
1.7
(1.7)
        
-100%
        Total Noninterest Expense
132.5
$   
134.0
$   
(1.5)
$      
-1%
Efficiency Ratio (1)
57.48%
57.02%
Noninterest Expense to Average Assets (2)
2.51%
2.47%
(1)   Noninterest income excludes gains (losses) on securities, derivatives and branches.
        Noninterest expense excludes net losses related to the early extinguishment of debt.
(2)   Excludes net losses related to the early extinguishment of debt

21
The Best Things Come OUT OF THE BLUE
Outlook for 2006
Low double digit deposit growth and high single digit loan growth are
expected
Diluted earnings per share are expected to be in line with street mean
estimates ranging from $1.67 -
$1.75
There are a number of uncertainties that would impact the expectations noted above,
including the overall strength of the economy and changes in market rates. 

22
The Best Things Come OUT OF THE BLUE
$0.68
$.61
$.58
$.56
$.52
$.48
$.44
$.38
$.34
$.30
$.27
$.22
$.15
$.16
$.17
$.18
$.20
'90
'91
'92
'93
'94
'95
'96
'97
'98
'99
'00
'01
'02
'03
'04
'05
'06
15 YEARS OF INCREASED DIVIDENDS 
Solid Dividend Growth
*Expected
*
11%

23
The Best Things Come OUT OF THE BLUE
Supplemental

24
The Best Things Come OUT OF THE BLUE
Loan Portfolio Distribution
($ in millions)
Period-end
balance    
9/30/05
Sale of
Branches
Mortgage
Warehouse
Securitization
Internal
Growth
Period-end
balance   
12/31/05
Commercial real estate and construction
9,694
$          
(25)
$          
-
$                     
239
$          
9,908
$         
Single-family real estate
2,412
            
(6)
               
-
33
               
2,439
           
Other loans
1,470
            
(14)
            
-
4
                 
1,460
           
Home equity lines
621
                
(20)
            
-
8
                 
609
               
Total
14,197
$        
(65)
$          
-
$                     
284
$          
14,416
$       
Mortgage warehouse lending
527
$             
-
$          
92
$                 
(135)
$         
484
$            
Loans held for sale
800
$             
-
$          
(92)
$                
390
$          
1,098
$         

25
The Best Things Come OUT OF THE BLUE
(as originally reported)
NPAs
Consistently Below Industry
0.65%
0.78%
0.64%
0.54%
0.55%
0.60%
0.71%
0.84%
0.85%
0.29%
0.21%
0.78%
1.17%
1.25%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
4.50%
'92
'93
'94
'95
'96
'97
'98
'99
'00
'01
'02
'03
'04
'05
All FDIC insured commercial banks (as of 9/30/05)
Colonial BancGroup

26
The Best Things Come OUT OF THE BLUE
0.47%
0.51%
0.09%
0.19%
0.14%
0.33%
0.13%
0.18%
0.23%
0.23%
0.21%
0.21%
0.28%
0.29%
0.31%
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
1.20%
1.40%
1.60%
'91
'92
'93
'94
'95
'96
'97
'98
'99
'00
'01
'02
'03
'04
'05
All FDIC Insured Commercial Banks (as of 9/30/05)
Southern Regionals* (as of 6/30/05)
Colonial BancGroup
Net Charge-Offs/Average Loans
*Source: Sandler O’Neill & Partners

27
The Best Things Come OUT OF THE BLUE
Balance Sheet Growth & Mix Contribute Favorably to
Interest Rate Risk
76%
of
loan
portfolio
is
variable
or
adjustable
rate
Loans,
excluding
mortgage
warehouse,
grew
10%
1
from
12/31/04
Loan
yields,
excluding
mortgage
warehouse,
up
34
bps
over
3Q
Securities
represented
15%
of
earning
assets
at
12/31/05
Average
deposits
grew
11%
2
annualized
from
3Q05;
16%
2
year-over-
year
Total
Deposit
Mix:
58%
-
Non-time;
20%
-
Noninterest
Bearing
DDA
Average
deposits
comprised
72%
of
total
average
assets
in
4Q05
compared
to
69%
in
3Q05
and
63%
in
4Q04
1
Excluding acquisitions and branch sales
2
Excluding acquisitions, branch sales and brokered deposits
(as of 12/31/05)