EX-99.1 2 dex991.htm PRESENTATION Presentation
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
the
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
$23.1 Billion in Assets with 308 Branches at 3/31/2007
Top 30
*
U.S. Commercial Bank
Proven Community Banking Philosophy with Regional Bank
Management and Local Boards of Directors
Top 5* Market Share in 83% 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
72%
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 3/31/07 are as follows:
In the Right Places
$23.1 Billion in Assets
$16.4 Billion in Deposits
308 Branches
1
At 3/31/07
*Projected Population change from 2006-2011
Source: US Census Bureau
NV
15
TX
14
FL
170
GA
18
AL
91
FL
58%
AL
25%
TX
4%
GA
5%
NV
5%
Corp
3%
FL
56%
GA
6%
AL
19%
Corp
9%
TX
6%
NV
4%

5
Superior Projected Population Growth
2006 - 2011 Population Growth
Colonial BancGroup, Inc.
11.92
%
SunTrust Banks, Inc.
10.50
South Financial Group, Inc.
9.90
Compass Bancshares, Inc.
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, Inc.
4.80
First Horizon National Corporation
4.42
Fifth Third Bancorp
4.30
Median
7.66
%
Low
4.30
High
11.92
Source: SNL Financial.
Deposit data as of 6/30/06.
Population growth deposit weighted by county.

6
Florida, the 4
th
most populous state in the U.S. with 18 million people,
is projected to pass New York in total population by 2011*
5
th*
largest commercial bank in Florida
Florida at 3/31/07 and Pro Forma with Commercial
1
:
Aggressive De Novo Branching Strategy
•
Plan to open 15-25 branches over the next two years
Florida Franchise
*Source: SNL Financial
1
On January 23, 2007, Colonial signed a definitive agreement to acquire Commercial Bankshares, Inc.
Branches
Assets
Deposits
Colonial
170
55%
$13 B
56%
$9 B
58%
Colonial/Commercial
182
57%
$14 B
58%
$10 B
60%

7
Deposit Market Share -
Florida
(June 2006 FDIC balances)
10.74%
-2.50%
-2.70%
-7.75%
-3.35%
% Change from
6/30/05
35
5
5
4
3
2
1
Rank #
0.24%
Commercial
2.68%
Colonial
2.92%
Colonial/Commercial
1
5.07%
Regions
9.73%
SunTrust
19.08%
B of A
19.92%
Wachovia
Market
Share
1
On January 23, 2007, Colonial signed a definitive agreement to acquire Commercial Bankshares, Inc.

Florida Franchise and Current Population
Current Branches
Current Population
2,500,000
500,000
100,000
Current Population
2,500,000
500,000
100,000
PANHANDLE
Assets = $431 Million
Deposits = $49 Million
3 Branches
CENTRAL FLORIDA
Assets = $3.4 Billion
Deposits = $3.0 Billion
59 Branches
SOUTH FLORIDA
Assets = $3.3 Billion
Deposits = $2.9 Billion
49 Branches
FLORIDA WEST COAST
Assets = $3.6 Billion
Deposits = $2.8 Billion
58
Branches
Planned Branches
Commercial Bank Branches
8
MORTGAGE WHSE.
Assets = $2.2 Billion
Deposits = $603 Million

9
Retail Banking

10
2006 Key Initiatives:
•
Non-time Deposit Growth
Promote consumer checking and  business
banking products
•
Noninterest
Income Growth
Target deposit service charges and lines of
business revenues
•
Enhanced Consumer Services
Image functionality added to online banking
services, Free Bill Pay
•
Business Banking
Increase in business banking checking
openings and loan production
•
Strategic Marketing Plan
Improve mix and frequency of marketing
channels
Results*:
•
22%
increase
in
noninterest
bearing
checking                           
accounts opened
•
10% growth in retail service charges
•
11% growth in mortgage fee income
•
6%   growth in financial planning revenue
•
99.5% of customers converted to truncated statements
•
Check images and customer statements available online
•
“Paperless”
option launch to online banking customer
•
Online
banking
penetration
increased
from
38%
of
total
DDAs
to
45%
•
136% increase in business banking loan production
•
41% increase in business checking account production
•
12% lift in Free Checking accounts due to direct mail campaigns
•
Targeted segmentation for Free Checking direct mail response
rates increased over 300% with a 75% savings in average
account acquisition cost**
Retail Banking
*YTD 12/06 Compared to YTD 12/05
**Q306 Compared to Q106

11
2007 Retail Non-time Deposit Growth Initiatives
Non-time Deposit Growth
Key Initiatives:
•
New Products
•
Remote Deposit Capture
•
Title Company Checking
•
Enhance Free Checking offering with bundled product approach and innovative rewards program
•
Advanced Sales Culture
•
Quarterly campaigns focus on low-cost deposit growth
•
Additional emphasis of commercial and business banking compensation on low-cost deposits
•
Launching new corporate sales training program
Non-interest Income Growth
Key Initiatives:
•
Retail Service Charges
•
Focus on household checking account growth
•
Increase debit card penetration in consumer and business banking households
•
Financial Planning
•
Aligned reporting structure with Treasury Management, Business
Banking and Mortgage
•
Unified sales approach with Retail sales teams
•
Additional resources and lines of business restructure
•
Mortgage Banking
•
Continue production shift to secondary markets (42% in 2005, 52% in 2006, 58% in 2007)
•
Expand production in growth markets
10%
increase
in
noninterest
bearing
checking
accounts
25% of revenue from fee-based services
Retail Banking

12
Adding Value to the Franchise
Retail Banking
Aligned our products/services, sales tracking and compensation plans with
measurable results that deliver growth in low-cost deposits
Continue
positive
momentum
toward
achieving
25%
of
total
revenue
in         
fee-based services through
•
Double-digit growth in consumer and business banking households
•
Shared synergies in sales approach between regional executives and line of    
business executives
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

13
Average Deposits/
Branch
Retail Banking
$29.9
$31.6
$35.8
$41.8
$49.4
$47.9
$50.2
2002
2003
2004
2005
2006
1Q06
1Q07
11.9%
23.0%
32.1%
38.8%
45.0%
41.5%
46.2%
2002
2003
2004
2005
2006
1Q06
1Q07
Online Banking
Penetration
($ in millions)
6%
13%
17%
18%
5%
93%
40%
21%
16%
11%

14
Financial Highlights

15
1Q07 Highlights
Quarterly Earnings Per Share of $0.41, excluding $0.17 restructuring
charge
Given the current yield curve environment, Colonial is implementing a
deleveraging
strategy to improve net interest income and earnings
Core Noninterest
Income increased 12% over 1Q06
Excellent Credit Quality –
provision of $2.3 million exceeded net
charge-offs of $2.2 million
Period End Deposits grew 7%, annualized over December 31, 2006 –
Noninterest
Bearing Deposits grew 13%, annualized
Strong Expense Controls –
core noninterest
expenses were even with
4Q06

16
Summary Income Statement
($ in millions)
1
Excluding severance, merger expenses and restructuring charges
2
Excluding restructuring charges on securities and debt
1Q07
4Q06
1Q06
4Q06
1Q06
Net interest income
179.9
$   
184.5
$   
188.2
$   
-2%
-4%
Core noninterest
income
46.4
49.4
41.5
-6%
12%
Total Revenue
226.3
233.9
229.7
-3%
-1%
Provision for loan losses
2.3
3.4
12.3
-33%
-81%
Gain on sale of residential real estate loans
3.9
-
-
100%
100%
Securities and derivatives gains (losses), net
1.0
0.4
4.2
150%
-77%
Gain on sale of Goldleaf
-
-
2.8
-
-100%
Noninterest
expense1
130.3
130.1
125.9
-
3%
Merger related expenses
0.4
-
-
100%
100%
Severance expense
3.0
0.4
-
650%
100%
Pretax Income
2
95.2
100.4
98.5
-5%
-3%
Income tax expense
2
31.8
34.1
33.5
-7%
-5%
Operating income
2
63.4
$    
66.3
$    
65.0
$    
-4%
-2%
Earnings Per Share -
Diluted
2
0.41
$    
0.43
$    
0.42
$    
Impact of restructuring charges:
Loss on securities portfolio
(36.0)
$   
Loss on extinguishment of debt
(4.4)
(40.4)
$   
Income tax benefit
13.5
After tax restructuring charge
26.9
$    
After tax EPS impact
(0.17)
$   
Earnings Per Share -
Diluted
0.24
$    
Weighted Average Shares Outstanding -
Diluted
153,450
153,580
155,183
% Change

17
Interest rate risk position has been managed to a neutral position
Implementing a deleveraging
strategy to sell low yielding assets and to
pay off high rate debt which is both income and margin accretive
Net Interest Margin for 2007 is expected to approximate 3.60%
Continue to focus on increasing consumer and business checking
accounts
Net Interest Income Management

18
Credit

19
Excellent Credit Quality
Credit Quality remains excellent
No subprime
products
Annualized Net Charge-Off Ratio was 0.06%
of average loans
for the
quarter compared to 0.26% for 1Q06 and 0.12% for 4Q06
Increased the allowance for loan losses to 1.16% of total loans,
compared to 1.13% at 12/31/06
The allowance was 525% of nonperforming assets

20
Summary of Loan Loss Experience
2003 –
1Q07
1
Annualized
1Q07
2006
2005
2004
2003
Reserve Ratio to Net Loans
1.16%
1.13%
1.15%
1.16%
1.20%
Reserve
$172,602
$174,850
$171,051
$148,802
$138,549
Coverage of Nonperforming Assets
525%
695%
536%
402%
184%
Net Charge-off Ratio to Average Loans
0.06%
1
0.12%
0.14%
0.19%
0.31%
Net Charge-offs
$2,195
$18,343
$19,211
$23,598
$35,471
Years of Net Charge-offs in Reserve
19.66
1
9.53
8.90
6.31
3.91
Nonperforming Assets
$32,855
$25,149
$31,931
$37,039
$75,440
Ratio of Nonperforming Assets to Net Loans
0.22%
0.16%
0.21%
0.29%
0.65%

21
0.65%
0.78%
0.64%
0.54%
0.55%
0.60%
0.71%
0.84%
0.85%
0.22%
0.29%
0.21%
0.78%
1.17%
1.25%
0.16%
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
'06
3/31/07
All FDIC Insured Commercial Banks
Colonial BancGroup
(as originally reported)
NPAs Consistently Below Industry

22
0.47%
0.49%
0.09%
0.19%
0.12%
0.14%
0.33%
0.13%
0.18%
0.06%
0.23%
0.26%
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
'06
3/31/07
All FDIC Insured Commercial Banks
Southern Regionals*
Colonial BancGroup
Net Charge-Offs/Average Loans
*Source: KBW
(as originally reported)
Low Loss Ratio
1
Annualized
1

23
Why Invest in Colonial BancGroup?
In the Right Locations for Continued Success
Conservative Lending Philosophy
•
Excellent 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
17 Years of Increased Dividends: $0.75* for 2007, a 10% increase
over
2006
*Estimated
Total
Annualized
1 Year
11%
11%
2 Year
28%
13%
3 Year
62%
17%
5 Year
115%
17%

24
17 YEARS OF INCREASED DIVIDENDS 
Solid Dividend Growth
*Estimated
$.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
10%

25
Supplemental Information

26
Reconciliation of 1Q07 Net Income and
Diluted EPS
($ in thousands, except per share amounts)
Net
Diluted
Income
EPS
Previously Reported Net Income
65,247
$ 
0.43
$     
Rescission of the adoption of SFAS 159:
     Premium and debt issue cost amortization
(829)
       
     Removal of fair value gains, net
(1,965)
    
     Income tax benefit
934
        
(1,860)
    
(0.02)
      
Operating Income
63,387
   
0.41
       
Restructuring charges:
     Loss on securities
(36,006)
  
     Loss on extinguishment of debt
(4,396)
    
     Income tax benefit
13,494
   
(26,908)
  
(0.17)
      
Net Income
36,479
$ 
0.24
$     

27
Average Balance Sheet
($ in millions)
1
Includes loans, loans held for sale and securities purchased under agreements to resell
2
Includes MWL assets and assets securitized
1Q07
4Q06
1Q06
4Q06
1Q06
Earning Assets
21,058
$ 
20,813
$ 
19,704
$ 
1%
7%
Loans, excluding MWL
15,153
15,211
14,576
-
4%
MWL Assets
1
2,084
2,269
2,117
-8%
-2%
MWL Managed Assets
2
4,079
4,269
3,617
-4%
13%
Securities
3,266
3,169
2,902
3%
13%
Total Assets
23,054
22,733
21,517
1%
7%
Assets Under Management
25,049
24,733
23,017
1%
9%
Total Deposits
15,967
15,939
15,595
-
2%
Noninterest
Bearing Deposits
2,780
2,886
3,034
-4%
-8%
Interest Bearing Transaction Accounts
6,314
6,164
6,036
2%
5%
Time Deposits
6,873
6,889
6,525
-
5%
Shareholders' Equity
2,068
2,045
1,962
1%
5%
% Change

28
Noninterest Income
($ in millions)
1
Core noninterest income was used in the calculation
1Q07
4Q06
1Q06
4Q06
1Q06
Service charges on deposit accounts
17.7
$
18.9
$   
14.2
$   
-6%
25%
Electronic banking
4.4
4.4
4.1
-
7%
Other retail banking fees
3.6
3.5
3.5
3%
3%
Retail Banking Fees
25.7
26.8
21.8
-4%
18%
Financial planning services
3.8
3.3
3.1
15%
22%
Mortgage banking
3.2
3.7
2.9
-14%
10%
Mortgage warehouse fees
6.9
6.9
6.3
-
10%
Bank-owned life insurance
4.9
3.8
3.9
29%
26%
Goldleaf
income
-
-
1.2
-
-100%
Other income
1.8
4.9
2.3
-63%
-22%
Core Noninterest
Income
46.3
49.4
41.5
-6%
12%
Loss on securities porfolio
(36.0)
-
-
100%
100%
Gain on sale of residential real estate loans
3.9
-
-
100%
100%
Securities and derivatives gains (losses), net
1.0
0.4
4.2
150%
-77%
Gain on sale of Goldleaf
-
-
2.8
-
-100%
Total Noninterest
Income
15.2
$
49.8
$   
48.5
$   
-69%
-69%
Annualized Noninterest
Income to Average Assets
1
0.82%
0.86%
0.78%
Noninterest
Income to Total Revenue
1
20.5%
21.1%
18.1%
% Change

29
Noninterest Expense
($ in millions)
1
Core
noninterest
(see
components
of
core
noninterest
income
on
noninterest
income
slide) and core noninterest
expense are used in the calculation
1Q07
4Q06
1Q06
4Q06
1Q06
Salaries and employee benefits
69.6
$  
67.4
$  
68.8
$  
3%
1%
Occupancy expense of bank premises, net
18.5
18.2
15.5
2%
19%
Furniture and equipment expense
13.1
13.0
11.4
1%
15%
Professional services
4.8
5.4
4.4
-11%
9%
Amortization of intangible assets
3.1
3.1
3.1
-
-
Advertising
2.2
2.5
2.9
-12%
-24%
Communications
3.0
2.9
2.6
3%
15%
Electronic banking expense
1.7
1.7
1.3
-
31%
Operating supplies
1.0
1.2
1.4
-17%
-29%
Other expense
13.3
14.7
14.5
-10%
-8%
Core noninterest
expense
130.3
130.1
125.9
-
3%
Net losses related to early extinguishment of debt
4.4
-
-
100%
100%
Severance expense
3.0
0.4
-
650%
100%
Merger related expense
0.4
-
-
100%
100%
Total Noninterest
Expense
138.1
$
130.5
$
125.9
$
6%
10%
Efficiency Ratio
1
57.38%
55.55%
54.73%
Annualized Noninterest
Expense to Average Assets
1
2.26%
2.29%
2.34%
% Change

30
Loan Portfolio Distribution
CRE
29%
RE
Construction
42%
Residential RE
17%
MWL
1%
Commercial
8%
Consumer and
Other
3%
(as of March 31, 2007)

31
Office
22%
Multi-Family
8%
Other
8%
Warehouse
14%
Retail
25%
Healthcare
6%
Farm
2%
Industrial
2%
Church/School
5%
Lodging
7%
Recreation
1%
CRE Loan Portfolio Distribution
29% Owner Occupied
Average loan size = $655 thousand
Characteristics of 75 largest loans:
•
Total $723 million and represent
16.6% of CRE portfolio
•
Average loan to value ratio is 67.7%
•
Average debt coverage ratio = 1.44x
(as of March 31, 2007)

32
Construction Loan Portfolio Distribution
(as of March 31, 2007)
Average loan size = $869 thousand
Characteristics of 75 largest loans:
•
Total $1.3 billion and represent
21.2% of construction portfolio
•
Average loan to value ratio is 66.0%
Land Only
24%
Residential Home
Construction
16%
Condominium
7%
Commercial
Development
7%
Residential
Development and
Lots
28%
Multi-Family
3%
Warehouse
2%
Retail
5%
Office
4%
Other
4%

33
Our portfolio is diversified by property type, location and borrower.
We loan to builders and developers who have a substantial level of
expertise within their markets, and they personally support the deal
through their guarantees and financial strength.
Our average builder/developer has been a long time customer with
expertise in the industry. They have successfully been through real
estate cycles in the past. It is evident that they are taking appropriate
actions during this market cycle:
•
working through inventory
•
slowing new starts
•
requiring more presales
•
diversifying into other areas of real estate
Construction Lending Strengths

34
In order to mitigate the risk of higher inventory levels, Colonial has
focused on:
•
high presale levels
•
equity
•
strong guarantor support
•
lower price points
•
market support (i.e., in Florida we target having a minimum of 75% pre-sales)
We closely monitor all inventory levels and project status
Commercial real estate within our markets remains very strong and is 
projected to remain strong with solid occupancy and rental rates
Thus far, any problems we have experienced have been isolated
Construction Lending Strengths (continued)

35
We do not offer subprime
lending products
We do not offer low document, stated income, “Option ARMs”
or “Pick
a Payment”
products
All ARM loans are underwritten with rate increases already factored in
Our past dues and charge-offs within this portfolio remain very low
and compare favorably to the industry
1-4 Family Residential Real Estate Portfolio

36
Mortgage Warehouse Lending
$4.1 billion in assets under management at 3/31/07; $2 billion sold to
third-party commercial paper conduits
Mortgage Warehouse Lending customers are mortgage companies
which originate primarily “A”
paper
Colonial is not the primary funding source of subprime
originations
Colonial manages the collateral files on substantially all outstandings
Average FICO score on Colonial’s collateral is approximately 700
Investor requests to our customers to repurchase loans have not
trended up
Closely monitor aging on collateral