Second Quarter 2007

Earnings Overview

Exhibit 99.2

2

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,”

“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);

•

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

2Q07 Highlights

EPS of $0.43

Net interest margin expanded 20 basis points to 3.66% from the first

quarter of 2007

Core noninterest

income increased 18% over the same quarter of the

prior year

Continued excellent credit quality -

Nonperforming assets ratio of

0.29%; Annualized net charge-off ratio of 0.20% for the quarter and

0.13% for the first six months

Improved efficiency ratio of 56.20%

Successful acquisition and integration of Commercial Bankshares,

Inc.; Florida deposits now exceed $10 billion

4

Excellent Credit Quality

Credit quality remains excellent

No sub-prime products

Year to date annualized

net charge-off ratio was 0.13%

of average

loans

The allowance for loan losses was 1.15% of total loans, compared

to

1.13% at 12/31/06

The allowance was 391% of nonperforming assets

5

Summary of Loan Loss Experience

2003 –

2Q07

1

Annualized

2

Reserve/YTD Net Charge-offs Annualized

2Q07

2006

2005

2004

2003

Reserve Ratio to Net Loans

1.15%

1.13%

1.15%

1.16%

1.20%

Reserve ($ in 000's)

$178,274

$174,850

$171,051

$148,802

$138,549

Coverage of Nonperforming Assets

391%

695%

536%

402%

184%

YTD Net Charge-off Ratio to Average Loans

0.13%

1

0.12%

0.14%

0.19%

0.31%

YTD Net Charge-offs ($ in 000's)

$9,775

$18,343

$19,211

$23,598

$35,471

Years of Net Charge-offs in Reserve

9.12

2

9.53

8.90

6.31

3.91

Nonperforming Assets

$45,552

$25,149

$31,931

$37,039

$75,440

Ratio of Nonperforming Assets to Net Loans

0.29%

0.16%

0.21%

0.29%

0.65%

6

1Q07

2Q07

$1.06

$1.26

$1.16

$1.31

$1.52

$1.72

2001

2002

2003

2004

2005

2006

(diluted)

Earnings Per Share Growth

5 Year CAGR = 10%

2001 -

2006

19%

(8)%

13%

16%

13%

1

Excluding restructuring charges

$0.24

$0.41

1

$0.43

$0.44

1

7

$422

$455

$495

$567

$709

$755

$180

$190

2001

2002

2003

2004

2005

2006

1Q07

2Q07

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%   

3.46%    3.66%

Net Interest

Margin

6%

8

Sold approximately 1/3 of investment securities at the beginning

of the

quarter and reduced borrowings

The tax equivalent yield improved 35 basis points to 5.62%

Average investment securities represented approximately 11% of average assets and 12% of

average earning assets in the second quarter

Sold 1-4 family residential real estate loans at the end of 1Q07

Prepaid $70 million of trust preferreds

in the first quarter –

8.92%, and

$100 million of trust preferreds

in the second –

8.32%

Average deposits grew 6%

1

annualized over the first quarter yet the

cost of deposits increased only 1 basis point

Reduced rates on promotional deposit products

Strong growth in mortgage warehouse assets

Interest rate risk position has been managed to a neutral position

Net Interest Margin for 2007 is expected to approximate 3.60%

Net Interest Income Management

1

Excluding the acquisition

9

Net Interest Income and Margin

($ in millions)

Tax

Equivalent

NII

NIM

1Q07

180.7

$           

3.46%

Sale of Investment Securities and

1-4 Real Estate Loans

0.6

0.30%

Growth in Earning Assets, excluding MWL

4.3

-

Growth in Mortgage Warehouse Assets

2.8

-0.08%

Commercial Bank of Florida

2.8

-0.01%

Deposit Mix Change

(0.7)

-0.01%

Day Count

1.1

-

2Q07

191.6

$           

3.66%

10

$8,433

$8,734

$9,419

$10,862

$13,988

$15,788

$15,967

$16,464

2001

2002

2003

2004

2005

2006

1Q07

2Q07

Average Deposits

4%

8%

15%

*Annualized

1

Excluding the acquisition

($ in millions)

29%

3 Year CAGR = 19%

2003 -

2006

87%

13%

12%*

6%*1

11

Noninterest Income

($ in millions)

1

Core noninterest income was used in the calculation

% Change

2Q07

1Q07

2Q06

1Q07

2Q06

Service charges on deposit accounts

18.7

$                 

17.7

$            

15.3

$           

6%

22%

Electronic banking

4.6

4.4

4.3

5%

7%

Other retail banking fees

3.3

3.6

3.8

-8%

-13%

Retail Banking Fees

26.6

25.7

23.4

4%

14%

Financial planning services

4.3

3.8

3.7

13%

16%

Mortgage banking origination and sales

3.7

3.2

3.8

16%

-3%

Mortgage warehouse fees

6.3

6.9

6.0

-9%

5%

Bank-owned life insurance

5.0

4.9

4.0

2%

25%

Other income

6.9

1.8

4.0

283%

73%

Core Noninterest

Income

52.8

46.3

44.9

14%

18%

Securities and derivatives gains, net

1.1

1.0

-

NM

NM

Securities restructuring charges

-

(36.0)

-

NM

NM

Gain on sale of mortgage loans

-

3.9

-

NM

NM

Gain on sale of merchant services

4.9

-

-

NM

NM

Total Noninterest

Income

58.8

$                 

15.2

$            

44.9

$           

286%

31%

Annualized Noninterest

Income to Average Assets

1

0.92%

0.82%

0.82%

Noninterest

Income to Total Revenue

1

21.7%

20.5%

18.9%

12

Noninterest Expense

($ in millions)

1

Core

noninterest

income

and

core

noninterest

expense

are

used

in

the

calculation

% Change

2Q07

1Q07

2Q06

1Q07

2Q06

Salaries and employee benefits

70.3

$           

69.6

$           

70.9

$           

1%

-1%

Occupancy expense of bank premises, net

18.7

18.5

16.4

1%

14%

Furniture and equipment expense

13.4

13.1

11.9

2%

13%

Professional services

4.6

4.1

4.9

12%

-6%

Electronic banking and other retail banking expenses

5.5

4.2

3.1

31%

77%

Advertising

3.7

2.2

3.1

68%

19%

Amortization of intangible assets

3.2

3.1

3.1

3%

3%

Communications

2.9

3.0

2.5

-3%

16%

Postage and courier

2.7

2.6

2.7

4%

-

Travel

2.0

1.7

2.1

18%

-5%

Other expense

10.4

8.2

10.5

27%

-1%

Core Noninterest

Expense

137.4

130.3

131.2

5%

5%

Severance expense

0.5

3.0

-

NM

NM

Merger related expenses

1.1

0.4

-

NM

NM

Net losses related to the early extinguishment of debt

2.5

4.4

-

NM

NM

Total Noninterest

Expense

141.5

$         

138.1

$         

131.2

$         

2%

8%

Efficiency Ratio

1

56.20%

57.38%

55.31%

Annualized Noninterest

Expense to Average Assets

1

2.38%

2.26%

2.39%

13

Solid Earnings Per Share of $0.43

Net Interest Margin expanded 20 basis points to 3.66%

Excellent Credit Quality

Strong Fee Income growth and effective expense management

Successful acquisition and integration of Commercial Bankshares,

Inc.

Continuing

to

enhance

and

expand

our

Florida

franchise

through

acquisitions

of

high

quality

institutions

and

selective

new

branch

placement

in

the

best

growth

markets

in

the

state

2007 full year EPS, excluding restructuring charges, is expected

to

range from $1.78 to $1.82

Summary

14

$.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

*Estimated

10%

15

Supplemental Information

16

EPS Reconciliation

% Change

2Q07

1Q07

2Q06

1Q07

2Q06

Diluted earnings per share -

GAAP

0.43

$

0.24

$

0.43

$

79%

0%

Impact

of

restructuring

charges:

Loss on securities portfolio

-

0.23

-

Loss on extinguishment of debt

0.02

0.03

-

0.02

0.26

-

Income tax benefit

(0.01)

(0.09)

-

After tax restructuring charge

0.01

0.17

-

Diluted earnings per share, excluding

restructuring charges

0.44

$

0.41

$

0.43

$

7%

2%

17

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

% Change

2Q07

1Q07

2Q06

1Q07

2Q06

Earning Assets

20,969

$       

21,058

$       

20,220

$       

-

4%

Loans, excluding MWL

14,946

15,153

15,004

-1%

-

MWL Assets

1

2,812

2,084

2,150

35%

31%

MWL Managed Assets

2

4,416

4,079

3,650

8%

21%

Securities 

2,596

3,266

2,949

-21%

-12%

Total Assets

23,097

23,054

21,990

-

5%

Assets Under Management  

24,701

25,049

23,490

-1%

5%

Total Deposits

16,464

15,967

15,714

3%

5%

Noninterest

Bearing Deposits

2,936

2,780

3,033

6%

-3%

Interest Bearing Transaction Accounts

6,375

6,314

6,106

1%

4%

Time Deposits

7,153

6,873

6,575

4%

9%

Shareholders' Equity

2,166

2,068

1,965

5%

10%

18

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 6/30/07 are as follows:

In the Right Places

$23.8 Billion in Assets

$17.1 Billion in Deposits

321 Branches

1

At 6/30/07

*Projected Population change from 2006-2011

Source: US Census Bureau

FL 60%

AL 24%

TX 4%

GA 5%

NV 4%

Corp 3%

NV 4%

TX 7%

Corp 4%

FL 62%

GA 6%

AL 17%

NV 15

TX 15

FL 182

GA 19

AL  90

19

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

20

0.65%

0.78%

0.64%

0.54%

0.55%

0.60%

0.71%

0.84%

0.85%

0.29%

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

6/30/07

All FDIC Insured Commercial Banks

Colonial BancGroup

(as originally reported)

NPAs Consistently Below Industry

21

0.47%

0.49%

0.09%

0.19%

0.12%

0.14%

0.33%

0.13%

0.18%

0.13%

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

June

YTD

2007

All FDIC Insured Commercial Banks

Southern Regionals*

Colonial BancGroup

Net Charge-Offs/Average Loans

*Source: KBW

(as originally reported)

1

Annualized

1