EX-99.2 3 dex992.htm PRESENTATION MATERIALS Presentation Materials
1
The Best Things Come OUT OF THE BLUE
First Quarter 2006
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
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;
•
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
The Best Things Come OUT OF THE BLUE
Record Earnings in 1Q06
•
Net Income of $65 million; up 35% over 1Q05
•
EPS of $0.42; up 24% over 1Q05
•
EPS beat consensus by $0.02
Strong increase in revenue
1
•
Revenue
1
up 14% over 1Q05
•
Net Interest Income increased 15% over 1Q05
•
Noninterest
Income
1
increased 6% over 1Q05
•
Efficiency ratio
1
improved 275 bps from 4Q05 to 54.73%
Strong Period End Loan Growth
2
of 16% over prior year, 12% annualized
from the end of 2005
Overview
1
Excluding gains/losses on securities and derivatives,
branch sales and sale of Goldleaf
2
Excluding Mortgage Warehouse Lending

4
The Best Things Come OUT OF THE BLUE
Overview (cont’d)
Excellent Credit Quality
•
Nonperforming Assets Ratio at a very low level of 0.24%
•
Excellent net charge off history
•
Provision expense exceeded net charge-offs by $2.6 million or 26%
•
Allowance for loan losses covered nonperforming assets by 468% at
3/31/06
Outstanding Deposit Growth
•
Average Deposits increased 26% from the 1Q05, 16%
1
organically, and 
18%
1
annualized over 4Q05
•
Florida Franchise had 17% annualized growth in average deposits over
4Q05
•
Texas and Nevada branches each grew average deposits in excess of
25% annualized over the 4Q05
1
Excluding acquisitions, sale of branches and brokered deposits

5
The Best Things Come OUT OF THE BLUE
FL
58%
AL
23%
TX
4%
GA
5%
NV
5%
Corp
5%
FL
57%
Corp
10%
GA
6%
AL
17%
TX
6%
NV
4%
Colonial is in three of the four 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 3/31/06 are as follows:
In the Right Places
* At 3/31/06
301 Branches
$22 Billion in Assets
$15.9 Billion in Deposits
NV
14
TX
13
FL
162
GA
20
AL
92

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
Florida at 3/31/06:
•
58% of Deposits in Florida –
Total Deposits of $9.3 Billion
•
57% of Assets in Florida –
Total Assets of $12.6 Billion
•
54% of Branches in Florida –
Total Branches –
162
Strong loan and deposit growth
•
Loan growth, excluding acquisitions and mortgage warehouse lending, was 14%
over 1Q05; 20% annualized over 4Q05
•
Average deposit growth, excluding acquisitions, was 18% over 1Q05; 17%
annualized over 4Q05
Florida Franchise

8
Florida Franchise and Current Population
9 Planned Branches through 12/31/06
Current Branches
Current Population
2,500,000
500,000
100,000
Current Population
2,500,000
500,000
100,000
PANHANDLE
Assets = $421 Million
Deposits = $49 Million
2 Branches
CENTRAL FLORIDA
Assets = $3.4 Billion
Deposits = $3.0 Billion
60 Branches
MORTGAGE WHSE.
Assets = $2.4 Billion
Deposits = $444 Million
SOUTH FLORIDA
Assets = $3.4 Billion
Deposits = $2.9 Billion
46 Branches
FLORIDA WEST COAST
Assets = $3.1 Billion
Deposits = $2.8 Billion
54 Branches

9
The Best Things Come OUT OF THE BLUE
($ in millions)
Net Income
Originally Reported
As Restated
* As if restatement had not occurred
$233*
$175
$150
$140
$122
2001
2002
2003
2004
2005
15%
7%
17%
33%
$48
$65
$229
$173
$146
$151
$122
2001
2002
2003
2004
2005
1Q05
1Q06
18%
32%
24%
(3)%
35%

10
The Best Things Come OUT OF THE BLUE
$1.06
$1.16
$1.20
$1.33
$1.55
2001
2002
2003
2004
2005
(diluted)
Originally Reported
As Restated
* As if restatement had not occurred
Earnings Per Share
*
11%
3%
9%
17%
$0.34
$1.06
$1.26
$1.16
$1.31
$1.52
$0.42
2001
2002
2003
2004
2005
1Q05
1Q06
19%
(8)%
13%
16%
24%

11
The Best Things Come OUT OF THE BLUE
$422
$455
$495
$567
$163
$188
2001
2002
2003
2004
2005
1Q05
1Q06
$709
Net Interest Income
($ in millions)
8%
9%
15%
15%
25%

12
The Best Things Come OUT OF THE BLUE
Net Interest Income 
Net Interest Income increased 15% over 1Q05
•
Average earning assets increased $1.6 billion from the 1Q05 primarily from
increases in loans and mortgage warehouse assets, offset by lower securities
volume
•
Net interest margin expanded 22 bps from 1Q05 to 3.86%
•
10
th
Consecutive Quarter of NIM expansion
Yield on average earning assets up 119 bps over 1Q05
•
Loans comprised 76% of Average Earning Assets in 1Q06
75% of loans are adjustable or variable rate
•
Securities comprised 14.7% of average earning assets in the quarter
Strong Average Deposit Growth
•
Average Deposits increased $3.2 billion or 26% over the 1Q05
•
Average Deposits funded earning asset growth and enabled the Company to reduce
average wholesale borrowings by $1.8 billion.
•
Cost of interest bearing deposits was 171 bps less than the rate
on average
wholesale borrowings in 1Q06

13
The Best Things Come OUT OF THE BLUE
$13,988
$10,862
$9,419
$8,734
$8,433
$12,392
$15,244
$15,595
2001
2002
2003
2004
2005
1Q05
4Q05
1Q06
Average Deposits
4%
8%
15%
1
Excluding acquisitions, sale of branches, and brokered deposits
*Annualized
18%
1*
($ in millions)
9%*
16%1
29%

14
The Best Things Come OUT OF THE BLUE
Net Interest Margin
3.86%
3.85%
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
1Q06

15
The Best Things Come OUT OF THE BLUE
Net Interest Income and Margin
NII
NIM
4
th
Qtr 2005
$ 186.9
3.85%
Spread on Earning Asset Growth
4.1
0.01%
Treasury Transactions
3.4
0.07%
Increase due to Asset Sensitivity
1.0
0.02%
Decrease in Days
(2.8)
Deposit Pricing Competition & Mix Change
(2.3)         
(0.05%)
Loan Fees and MWL Asset Spread
(1.8)        
(0.04%)
1
st
Qtr 2006
$ 188.5
3.86%
($ in millions)
Tax
Equivalent

16
The Best Things Come OUT OF THE BLUE
Excellent Credit Quality
Nonperforming Assets ratio was 0.24% at 3/31/06
Net Charge-Off Ratio, annualized, was 0.26% for the quarter; 0.21% in
1Q05; 0.09% in 4Q05
Provision exceeded net charge-offs in 1Q06
Past dues > 30 days were 0.53% of net loans, up slightly from 0.48% at
12/31/05
Allowance for loan losses was 1.14%, or 468% of nonperforming assets

17
The Best Things Come OUT OF THE BLUE
Unusual Items in the Quarter
($ in millions)
$      0
Charged-off a portion of one C&I loan in Alabama
(7.0)
$  
Recognized a $1.7 million gain on the sale of $481 million of
securities and a $2.5 million gain on the termination of
interest rate swaps with a notional principal amount of $155
million
4.2
     
Recognized a gain on sale of an investment in Goldleaf
Technologies
2.8
     
Impact on the Quarter

18
The Best Things Come OUT OF THE BLUE
Noninterest Income
($ in millions)
1Q06
4Q05
$ Change
% Change
Service charges on deposit accounts
14.2
$     
14.5
$     
(0.3)
$      
-2%
Financial planning services
3.1
         
2.6
         
0.5
         
19%
Electronic banking
4.1
         
4.0
         
0.1
         
2%
Mortgage banking
2.9
         
2.8
         
0.1
         
4%
Mortgage warehouse fees
6.3
         
6.8
         
(0.5)
        
-7%
Bank-owned life insurance
4.0
         
3.5
         
0.5
         
14%
Goldleaf income
1.2
         
2.7
         
(1.5)
        
-56%
Net cash settlement of swaps
-
           
1.5
         
(1.5)
        
-100%
Other income
5.8
         
5.2
         
0.6
         
12%
        Core noninterest income
41.6
       
43.6
       
(2.0)
        
-5%
Securities and derivatives gains (losses), net
4.2
         
(20.0)
     
24.2
       
121%
Change in fair value of swaps
-
           
(6.7)
       
6.7
         
100%
Gain on sale of branches
-
           
27.4
       
(27.4)
      
-100%
Gain on sale of Goldleaf
2.8
         
-
          
2.8
         
100%
        Total Noninterest Income
48.6
$     
44.3
$     
4.3
$       
10%
Noninterest Income to Average Assets (1)
0.78%
0.82%
Noninterest Income to Total Revenue (1)
18.1%
18.9%
(1)   Core noninterest income was used in the calculation

19
The Best Things Come OUT OF THE BLUE
Noninterest Expense
($ in millions)
1Q06
4Q05
$ Change
% Change
Salaries and employee benefits
68.8
$      
66.6
$     
2.2
$       
3%
Occupancy expense of bank premises, net
15.5
        
17.4
       
(1.9)
        
-11%
Furniture and equipment expense
11.4
        
11.8
       
(0.4)
        
-3%
Professional services
4.4
          
6.9
         
(2.5)
        
-36%
Amortization of intangibles
3.1
          
3.1
         
-
           
0%
Advertising
2.9
          
3.7
         
(0.8)
        
-22%
Merger related expenses
-
            
0.4
         
(0.4)
        
-100%
Goldleaf
1.0
          
2.4
         
(1.4)
        
-58%
Other expense
18.8
        
20.2
       
(1.4)
        
-7%
        Total Noninterest Expense
125.9
$    
132.5
$   
(6.6)
$      
-5%
Efficiency Ratio (1)
54.73%
57.48%
Noninterest Expense to Average Assets
2.34%
2.51%
(1)   Core noninterest income was used in calculation, see components on page 18 of slides

20
The Best Things Come OUT OF THE BLUE
Outlook for 2006
Low double digit loan and deposit growth are expected for the full year
2006
Diluted earnings per share are expected to be in line with street mean
estimates ranging from $1.68 -
$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. 

21
The Best Things Come OUT OF THE BLUE
$.68
$.61
$.58
$.56
$.52
$.48
$.44
$.38
$.34
$.30
$.27
$.22
$.15
$.16
$.17
$.18
$.20
$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
16 YEARS OF INCREASED DIVIDENDS 
Solid Dividend Growth
*Estimated
*
11%

22
The Best Things Come OUT OF THE BLUE
Supplemental

23
The Best Things Come OUT OF THE BLUE
Loan Portfolio Distribution
($ in millions)
Period-end
balance    
12/31/05
Mortgage
Warehouse
Securitization
Internal
Growth
Period-end
balance   
3/31/06
Commercial real estate and construction
9,908
$          
-
$                     
359
$          
10,267
$       
Single-family real estate
2,439
            
-
22
              
2,461
           
Other loans
1,460
            
-
22
              
1,482
           
Home equity lines
609
                
-
27
              
636
              
Total
14,416
$        
-
$                     
430
$          
14,846
$       
Mortgage warehouse lending
484
$             
231
$               
(279)
$         
436
$            
Loans held for sale
1,098
$          
(231)
$              
361
$          
1,228
$         

24
The Best Things Come OUT OF THE BLUE
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%
0.24%
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
1Q06
All FDIC Insured Commercial Banks
Colonial BancGroup
(as originally reported)
NPAs
Consistently Below Industry

25
The Best Things Come OUT OF THE BLUE
0.47%
0.51%
0.09%
0.19%
0.26%
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
1Q06
All FDIC Insured Commercial Banks
Southern Regionals*
Colonial BancGroup
Net Charge-Offs/Average Loans
*Source: Sandler O’Neill & Partners
1
Annualized
1

26
The Best Things Come OUT OF THE BLUE
75% of loan portfolio is variable or adjustable rate at 3/31/06
Loans, excluding mortgage warehouse, grew 12%
1
annualized from 12/31/05
Loan yields, excluding mortgage warehouse, up 21 bps over 4Q
Average securities represented 14.7% of average earning assets at 3/31/06
Average deposits grew 18%
2
annualized from 4Q05; 16%
2
year-over-year
Total Deposit Mix: 59% -
Non-time;
20% -
Noninterest Bearing DDA at 3/31/06
Average deposits funded 79% of average interest earning assets in 1Q06
compared to 69% in 1Q05
Balance Sheet Growth & Mix Contribute Favorably to
Interest Rate Risk
1
Excluding branch sale
2
Excluding acquisitions, branch sales and brokered deposits
?