Exhibit 99.1

PRESS RELEASE

For more information contact:	January 23, 2008
Lisa Free
(334) 676-5105

COLONIAL BANCGROUP REPORTS 4^TH QUARTER

EARNINGS; INCREASES DIVIDEND

SUMMARY OF 2007 RESULTS:

• Earnings per share of $0.06 for the 4^th quarter, including $0.26 of provision in excess of net charge-offs and $0.02 of merger and severance costs

• Significant increase in loan loss reserve to 1.50% of loans at 12/31/07 compared to 1.14% at 9/30/07 and 1.13% at 12/31/06

• Net charge-off ratio was 0.35% for 2007 and 0.88% annualized for the 4^th quarter; $34 million in net charge-offs in the 4^th quarter; $93 million in loan loss provision or 2.7 times 4^th quarter net charge-offs

• Nonperforming assets ratio was 0.86% at 12/31/07 compared to 0.46% at 9/30/07

• Net interest income increased 1% over 2006; Net interest margin of 3.55% for 2007 and 3.43% for the 4^th quarter

• Strong core noninterest income growth of 15% over 2006

• Average deposit growth of 5% over 2006

• Closed and integrated the acquisition of Citrus and Chemical in December and Commercial Bank of Florida in June

• Total assets of $26 billion at 12/31/07

• Increase in annual dividend rate to $0.76

MONTGOMERY, Ala. - (NYSE: CNB) The Colonial BancGroup, Inc. Chairman, CEO and President, Robert E. Lowder, announced today that the Company had operating earnings per diluted share for the year ended December 31, 2007 of $1.37, compared to $1.71 in 2006. Net income per diluted share for the year ended December 31, 2007 was $1.17 compared to $1.72 in 2006.

Net income per diluted share in the fourth quarter of 2007 was $0.06 compared to $0.43 per share in the fourth quarter of 2006. The Company recognized $0.02 of merger and severance expenses in the fourth quarter, bringing operating earnings per diluted share to $0.08.

“In light of current economic conditions and after undertaking a comprehensive review of our asset portfolio in every market, Colonial has conservatively provided $93 million in the quarter to build our loan loss reserves to 1.50% of loans. We believe that by increasing our loan loss reserves to that level, and providing 2.7 times more than our net charge-offs in the quarter, Colonial is well positioned to handle the continued weakness in the housing sector,” said Mr. Lowder. The allowance for loan losses was $239 million, or 1.50% of loans, at December 31, 2007, up from $175 million, or 1.13% of loans, at December 31, 2006. The allowance represented 174% of nonperforming assets at December 31, 2007.

Colonial’s net charge-offs were 0.35% of average loans for 2007, an increase from 0.12% for 2006. Colonial recorded net charge-offs in the fourth quarter of $34 million, or 0.88% annualized of average loans in the quarter compared to annualized net charge-offs of 0.18% of average loans for the first nine months of the year. The nonperforming assets ratio at December 31, 2007 was 0.86% of period end loans and nonperforming assets compared to 0.46% at September 30, 2007 and 0.16% at December 31, 2006. Total nonperforming assets at December 31, 2007 were $138 million. As expected, nonperforming assets primarily consisted of residential real estate loans in Florida.

Total loans were $15.9 billion at December 31, 2007 compared to $15.5 billion at December 31, 2006, a 3% increase. Excluding the two acquisitions completed in 2007 and the sale of residential real estate loans early in 2007, loans at December 31, 2007 declined

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by 1% from December 31, 2006. “We began to see signs of overbuilding and excess inventories in 2006, mainly in markets and in property types with large speculative components. As a result, we tightened our underwriting standards considerably and therefore generated little new loan volume outside of the State of Texas, which so far remains a bright spot in the country,” said Mr. Lowder.

Colonial’s net interest income increased 1% over 2006. The net interest margin for 2007 was 3.55% compared to 3.71% for 2006. Net interest margin contracted 22 basis points to 3.43% in the fourth quarter from 3.65% in the third quarter primarily because intense deposit competition in our markets from money center banks, brokerage firms and other commercial banks prevented the Company from passing through the Federal Reserve rate cuts to depositors.

The Company completed the acquisition and integration of Citrus and Chemical Bancorporation, Inc. (C&C), headquartered in Lakeland, Florida in December. On the date of acquisition, C&C had $533 million in loans, $673 million in deposits and ten branches. “We are pleased to have the additional locations acquired in the fast growing area of Polk County, Florida. We have completed the conversion of C&C to Colonial’s systems in order to offer our full range of banking products to our new Colonial customers,” said Mr. Lowder.

Core noninterest income for 2007 grew a significant 15% over 2006 with increases in retail and mortgage banking fees, both of which increased 10%, and fees from financial planning services, which increased 19%. Other income includes income from real estate joint ventures and gains on sales of properties which also increased in 2007.

Noninterest expenses were well controlled. Colonial’s efficiency ratio was 55.49% in 2007 compared to 55.34% in 2006. After rigorous analysis of staffing needs, salaries and benefits declined in 2007 from 2006.

“The daily reports of worsening economic conditions in the U.S., especially in the financial services sector, warrant comment. Fortunately, Colonial has no subprime exposure and

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stopped lending in the riskiest condo-building areas well before these sweeping developments. Nonetheless, the illiquidity in the financial markets affects some of Colonial’s borrowers markedly. Our special assets teams – which have seen and coped with these market cycles before – are working effectively to minimize the bank’s exposure. I expect 2008 to bring further challenges to the industry, but with our solid capital and market places which are inherently attractive, Colonial is confident, that in the words of the old saying ‘this too will pass’. Acting upon this belief, the Company approved a modest increase in the dividend at our most recent board meeting,” said Mr. Lowder.

Colonial BancGroup operates 338 branches in Florida, Alabama, Georgia, Nevada and Texas with approximately $26 billion in assets. The Company’s common stock is traded on the New York Stock Exchange under the symbol CNB and is located online at www.colonialbank.com. In some newspapers, the stock is listed as ColBgp.

Colonial’s management will host a conference call on January 23, 2008 at 9:00 AM/ET to discuss the earnings results for 2007. Individuals are encouraged to listen to the live webcast of the presentation as well as view a slide presentation by visiting Colonial’s website at www.colonialbank.com. The webcast will be hosted under “Events and Presentations” located under the “Investor Relations” section of the website. To participate in the Q&A session of the conference call, dial (888) 244-2459 or (913) 312-0728 Toll International, (Leader: Lisa Free).

A replay of the conference call will be available beginning at 6:00 PM/ET on January 23, 2008 and ending at midnight on January 28, 2008 by dialing (888) 203-1112 (Domestic Toll-Free) or (719) 457-0820 (Toll International). The passcode for both numbers is 4512592.

This release 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 release 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 release 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:

• 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;

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• changes in the interest rate environment which expand or reduce margins or adversely affect critical estimates as applied and projected returns on investments;

• 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 2008 and beyond;

• 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 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.

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THE COLONIAL BANCGROUP, INC. AND SUBSIDIARIES

FINANCIAL HIGHLIGHTS (Unaudited)

Statement of Condition Summary

(Dollars in millions)	Dec 31, 2007		Dec 31, 2006		% Change Dec ‘06 to Dec ‘07
Total assets	$	25,976	$	22,784	14	%
Loans, net of unearned income		15,923		15,479	3	%
Total securities		3,683		3,085	19	%
Non-time deposits		9,772		9,093	7	%
Total deposits		18,544		16,091	15	%
Shareholders’ equity		2,274		2,057	11	%

Earnings Summary

	Three Months Ended								Twelve Months Ended
(In thousands, except per share amounts)	Dec 31, 2007			Sept 30, 2007			% Change Sept ‘07 to Dec ‘07		Dec 31, 2007			Dec 31, 2006			% Change Dec 31, ‘06 to ‘07
Net Income:
Net interest income	$	195,201		$	196,011		0	%	$	761,374		$	755,267		1	%
Provision for loan losses		93,295			4,800		1844	%		106,450			22,142		381	%
Core noninterest income		57,316			52,958		8	%		209,433			181,621		15	%
Securities and derivatives gains, net		1,950			—		NM			4,047			4,772		-15	%
Securities restructuring charges		—			—		NM			(36,006	)		—		NM
Gain on sale of mortgage loans		—			—		NM			3,850			—		NM
Gain on sale of merchant services		—			—		NM			4,900			—		NM
Gain on sale of Goldleaf		—			—		NM			—			2,829		NM
Total noninterest income		59,266			52,958		12	%		186,224			189,222		-2	%
Core noninterest expense		140,814			133,698		5	%		542,139			519,188		4	%
Severance expense		2,571			500		414	%		6,616			413		1502	%
Merger related expenses		1,717			753		128	%		4,015			—		NM
Net losses related to the early extinguishment of debt		—			—		NM			6,908			—		NM
Total noninterest expense		145,102			134,951		8	%		559,678			519,601		8	%
Minority interest expense/REIT preferred dividends		5,336			5,336		0	%		12,984			—		NM
Income before tax		10,734			103,882		-90	%		268,486			402,746		-33	%
Income tax		1,762			34,527		-95	%		87,561			136,933		-36	%
Net Income	$	8,972		$	69,355		-87	%	$	180,925		$	265,813		-32	%
DILUTED EARNINGS PER SHARE:
EPS - GAAP	$	0.06		$	0.45		-87	%	$	1.17		$	1.72		-32	%
One-time gains, net of tax (1)		—			—					(0.03	)		(0.01	)
Restructuring and other charges, net of tax (2)		0.02			—					0.23			—
EPS - Operating	$	0.08		$	0.45		-82	%	$	1.37		$	1.71		-20	%
Average diluted shares outstanding		154,532			154,320					154,391			154,810
KEY RATIOS:
Net interest margin		3.43	%		3.65	%	-6	%		3.55	%		3.71	%	-4	%
Book value per share	$	14.44		$	14.16		2	%	$	14.44		$	13.46		7	%
Dividends paid per share	$	0.1875		$	0.1875		0	%	$	0.7500		$	0.6800		10	%

(1) Includes gain on sale of mortgage loans, merchant services and Goldleaf.

(2) Includes securities restructuring charges, severance expense, merger related expenses and net losses related to the early extinguishment of debt.

THE COLONIAL BANCGROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

Earnings Summary

																Twelve Months Ended
(Dollars in thousands, except per share amounts)	4th Qtr. 2007			3rd Qtr. 2007			2nd Qtr. 2007			1st Qtr. 2007			4th Qtr. 2006			Dec 31, 2007			Dec 31, 2006
Net interest income	$	195,201		$	196,011		$	190,217		$	179,945		$	184,468		$	761,374		$	755,267
Provision for loan loss		93,295			4,800			6,105			2,250			3,400			106,450			22,142
Noninterest income:
Service charges on deposit accounts		19,717			19,376			18,694			17,679			18,884			75,466			65,071
Electronic banking		4,843			4,923			4,648			4,401			4,356			18,815			17,212
Other retail banking fees		2,614			2,794			3,255			3,612			3,543			12,275			14,436
Retail banking fees		27,174			27,093			26,597			25,692			26,783			106,556			96,719
Financial planning services		4,123			4,506			4,283			3,822			3,316			16,734			14,054
Mortgage banking origination and sales		4,840			3,236			3,660			3,187			3,706			14,923			13,540
Mortgage warehouse fees		3,017			5,936			6,332			6,955			6,935			22,240			25,323
Bank-owned life insurance		5,203			5,070			5,002			4,955			3,797			20,230			15,954
Other income		12,959			7,117			6,891			1,783			4,904			28,750			16,031
Core noninterest income		57,316			52,958			52,765			46,394			49,441			209,433			181,621
Securities and derivatives gains, net		1,950			—			1,116			981			388			4,047			4,772
Securities restructuring charges		—			—			—			(36,006	)		—			(36,006	)		—
Gain on sale of mortgage loans		—			—			—			3,850			—			3,850			—
Gain on sale of merchant services		—			—			4,900			—			—			4,900			—
Gain on sale of Goldleaf		—			—			—			—			—			—			2,829
Total noninterest income		59,266			52,958			58,781			15,219			49,829			186,224			189,222
Noninterest expense:
Salaries and employee benefits		70,900			68,345			70,256			69,554			67,432			279,055			279,612
Occupancy expense of bank premises, net		21,848			19,634			18,722			18,505			18,210			78,709			67,338
Furniture and equipment expense		13,564			13,226			13,350			13,122			12,953			53,262			48,585
Professional services		5,092			4,967			4,628			4,100			4,773			18,787			18,465
Electronic banking and other retail banking expenses		4,175			5,766			5,507			4,212			4,418			19,660			13,521
Amortization of intangible assets		3,606			3,500			3,201			3,051			3,050			13,358			12,209
Communications		2,531			2,677			2,900			2,991			2,919			11,099			10,845
Postage and courier		2,736			2,589			2,692			2,639			2,407			10,656			10,476
Advertising		2,597			1,570			3,683			2,215			2,514			10,065			10,782
Travel		1,670			1,586			1,950			1,739			2,127			6,945			8,200
Other expense		12,095			9,838			10,447			8,163			9,313			40,543			39,155
Core noninterest expense		140,814			133,698			137,336			130,291			130,116			542,139			519,188
Severance expense		2,571			500			520			3,025			413			6,616			413
Merger related expenses		1,717			753			1,116			429			—			4,015			—
Net losses related to the early extinguishment of debt		—			—			2,512			4,396			—			6,908			—
Total noninterest expense		145,102			134,951			141,484			138,141			130,529			559,678			519,601
Minority interest expense/REIT preferred dividends		5,336			5,336			2,312			—			—			12,984			—
Income before tax		10,734			103,882			99,097			54,773			100,368			268,486			402,746
Income tax		1,762			34,527			32,978			18,294			34,125			87,561			136,933
Net Income	$	8,972		$	69,355		$	66,119		$	36,479		$	66,243		$	180,925		$	265,813
Earnings per share - Diluted	$	0.06		$	0.45		$	0.43		$	0.24		$	0.43		$	1.17		$	1.72
Selected ratios
Return on average assets*		0.14	%		1.15	%		1.15	%		0.64	%		1.16	%		0.76	%		1.20	%
Return on average equity*		1.58	%		12.65	%		12.24	%		7.15	%		12.85	%		8.35	%		13.34	%
Efficiency ratio(1)		55.29	%		53.29	%		56.20	%		57.38	%		55.55	%		55.49	%		55.34	%
Noninterest income(1)/ avg assets*		0.90	%		0.88	%		0.92	%		0.82	%		0.86	%		0.88	%		0.82	%
Noninterest expense(1)/ avg assets*		2.22	%		2.24	%		2.38	%		2.26	%		2.29	%		2.27	%		2.33	%
Net interest margin		3.43	%		3.65	%		3.66	%		3.46	%		3.53	%		3.55	%		3.71	%
Equity to assets		8.75	%		8.84	%		9.28	%		9.09	%		9.03	%
Tier one leverage		6.67	%		7.34	%		7.92	%		7.41	%		7.81	%
Tangible common equity ratio		4.83	%		5.32	%		5.65	%		6.36	%		6.26	%
Tangible capital ratio		6.00	%		6.56	%		6.93	%		6.36	%		6.26	%

(1) These ratios utilize core noninterest income and core noninterest expense.

* Annualized

THE COLONIAL BANCGROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CONDITION (Unaudited)

STATEMENTS OF CONDITION

(Dollars in thousands)	Dec 31, 2007			Sept 30, 2007			June 30, 2007			Mar 31, 2007			Dec 31, 2006
Assets:
Cash and due from banks	$	474,948		$	403,302		$	373,978		$	359,233		$	425,148
Interest bearing deposits in banks, federal funds sold		100,160			11,269			11,716			238,105			17,534
Securities purchased under agreements to resell		2,049,664			2,084,565			1,195,827			1,327,610			605,937
Total securities (AFS and HTM)		3,682,510			3,574,510			2,720,205			3,386,146			3,085,488
Loans held for sale		1,544,222			1,243,265			2,040,352			1,113,998			1,474,000
Loans, net of unearned income		15,923,178			15,206,452			15,457,047			14,921,476			15,478,889
Less: Allowance for loan losses		(238,845	)		(172,678	)		(178,274	)		(172,602	)		(174,850	)
Net loans		15,684,333			15,033,774			15,278,773			14,748,874			15,304,039
Premises and equipment, net		500,558			466,933			464,911			426,893			407,696
Intangible assets, net		1,071,605			912,131			915,379			671,282			674,333
Bank-owned life insurance		475,593			472,324			467,240			462,238			457,812
Accrued interest and other assets		392,396			341,993			354,581			337,523			332,262
Total Assets	$	25,975,989		$	24,544,066		$	23,822,962		$	23,071,902		$	22,784,249
Liabilities and Shareholders’ Equity:
Noninterest bearing transaction accounts	$	2,988,457		$	3,445,459		$	3,166,851		$	2,964,585		$	2,869,845
Interest bearing transaction accounts		6,783,116			6,331,223			6,505,883			6,444,194			6,222,818
Total non-time deposits		9,771,573			9,776,682			9,672,734			9,408,779			9,092,663
Time deposits		7,317,108			6,834,610			7,052,084			6,532,932			6,596,827
Brokered time deposits		1,455,586			323,349			359,245			441,012			401,564
Total deposits		18,544,267			16,934,641			17,084,063			16,382,723			16,091,054
Repurchase agreements		568,721			571,331			613,289			768,705			832,672
Federal funds purchased and other short-term borrowings		—			751,000			535,320			511,076			1,133,000
Long-term debt		4,023,836			3,604,927			2,919,387			3,051,628			2,522,273
Other liabilities		272,536			220,015			167,937			261,442			147,915
Total liabilities		23,409,360			22,081,914			21,319,996			20,975,574			20,726,914
Minority interest/REIT preferred securities		293,058			293,206			293,278			—			—
Total shareholders’ equity		2,273,571			2,168,946			2,209,688			2,096,328			2,057,335
Total Liabilities and Shareholders’ Equity	$	25,975,989		$	24,544,066		$	23,822,962		$	23,071,902		$	22,784,249
Common Shares Issued		167,407,169			163,172,315			163,102,683			156,662,992			156,258,708
Common Shares Outstanding		157,440,442			153,205,588			157,378,056			152,954,065			152,852,381

THE COLONIAL BANCGROUP, INC. AND SUBSIDIARIES

AVERAGE VOLUME AND RATES

(unaudited)

	Three Months Ended
	December 31, 2007							September 30, 2007							December 31, 2006
(Dollars in thousands)	Average Volume		Interest			Rate		Average Volume		Interest			Rate		Average Volume		Interest			Rate
Assets:
Loans, net of unearned income (2)	$	15,388,350	$	285,155		7.36	%	$	15,312,020	$	296,369		7.69	%	$	15,463,091	$	301,801		7.75	%
Loans held for sale (2)		1,642,694		27,125		6.55	%		1,637,193		29,572		7.17	%		1,460,508		25,390		6.90	%
Securities (2)		3,729,893		55,023		5.90	%		3,087,712		44,944		5.82	%		3,169,289		41,103		5.19	%
Securities purchased under agreements to resell		2,021,052		33,529		6.59	%		1,467,957		25,616		6.93	%		593,989		10,488		7.01	%
Other interest earning assets		135,136		1,512		4.45	%		78,987		977		4.91	%		125,954		1,695		5.34	%
Total interest earning assets (1)		22,917,125	$	402,344		6.98	%		21,583,869	$	397,478		7.32	%		20,812,831	$	380,477		7.27	%
Nonearning assets (2)		2,414,450							2,288,847							1,920,659
Total assets	$	25,331,575						$	23,872,716						$	22,733,490
Liabilities and Shareholders’ Equity:
Interest bearing non-time deposits	$	6,363,370	$	43,564		2.72	%	$	6,412,818	$	50,106		3.10	%	$	6,163,786	$	49,059		3.16	%
Time deposits (2)		7,791,880		96,899		4.93	%		7,320,067		92,111		4.99	%		6,889,267		84,038		4.84	%
Total interest bearing deposits		14,155,250		140,463		3.94	%		13,732,885		142,217		4.11	%		13,053,053		133,097		4.05	%
Repurchase agreements		566,305		5,065		3.55	%		562,344		5,826		4.11	%		852,918		9,827		4.57	%
Federal funds purchased and other short-term borrowings		937,034		10,985		4.65	%		655,125		8,474		5.13	%		1,198,104		16,030		5.31	%
Long-term debt (2)		3,907,985		48,484		4.93	%		3,290,566		43,005		5.19	%		2,526,515		36,730		5.78	%
Total interest bearing liabilities		19,566,574	$	204,997		4.16	%		18,240,920	$	199,522		4.34	%		17,630,590	$	195,684		4.41	%
Noninterest bearing demand deposits		2,982,015							2,949,526							2,886,424
Other liabilities (2)		236,435							213,124							171,297
Total liabilities		22,785,024							21,403,570							20,688,311
Minority interest/REIT preferred securities		293,098							293,244							—
Shareholders’ equity		2,253,453							2,175,902							2,045,179
Total liabilities and shareholders’ equity	$	25,331,575						$	23,872,716						$	22,733,490
Rate differential						2.82	%						2.98	%						2.86	%
Net yield on interest-earning assets on a tax equivalent basis			$	197,347		3.43	%			$	197,956		3.65	%			$	184,793		3.53	%
Taxable equivalent adjustments (1):
Loans				(204	)						(247	)						(94	)
Securities				(1,942	)						(1,698	)						(231	)
Total taxable equivalent adjustments				(2,146	)						(1,945	)						(325	)
Net interest income			$	195,201						$	196,011						$	184,468
TOTAL AVERAGE DEPOSITS
Total interest bearing deposits	$	14,155,250	$	140,463		3.94	%	$	13,732,885	$	142,217		4.11	%	$	13,053,053	$	133,097		4.05	%
Noninterest bearing demand deposits		2,982,015		—		—			2,949,526		—		—			2,886,424		—		—
Total average deposits	$	17,137,265	$	140,463		3.25	%	$	16,682,411	$	142,217		3.38	%	$	15,939,477	$	133,097		3.31	%

(1) Interest earned and average rates on securities and loans exempt from income taxes are reflected on a fully tax equivalent basis using a federal income tax rate of 35%, net of nondeductible interest expense.

(2) Unrealized gains (losses) on available for sale securities and the adjustments for mark to market valuations on hedged assets and liabilities have been classified in either nonearning assets or other liabilities.

THE COLONIAL BANCGROUP, INC. AND SUBSIDIARIES

AVERAGE VOLUME AND RATES

(unaudited)

	Twelve Months Ended December 31,
(Dollars in thousands)	2007							2006
	Average Volume		Interest			Rate		Average Volume		Interest			Rate
Assets:
Loans, net of unearned income (2)	$	15,290,766	$	1,168,231		7.64	%	$	15,339,699	$	1,165,917		7.60	%
Loans held for sale (2)		1,613,170		110,858		6.87	%		1,374,115		92,921		6.76	%
Securities (2)		3,170,823		179,410		5.66	%		3,014,453		153,383		5.09	%
Securities purchased under agreements to resell		1,467,233		99,602		6.79	%		592,840		40,176		6.78	%
Other interest earning assets		94,875		4,598		4.85	%		88,799		4,434		4.99	%
Total interest earning assets (1)		21,636,867	$	1,562,699		7.22	%		20,409,906	$	1,456,831		7.14	%
Nonearning assets (2)		2,208,397							1,827,784
Total assets	$	23,845,264						$	22,237,690
Liabilities and Shareholders’ Equity:
Interest bearing non-time deposits	$	6,366,423	$	191,815		3.01	%	$	6,110,866	$	171,560		2.81	%
Time deposits (2)		7,287,170		363,018		4.98	%		6,708,168		297,729		4.44	%
Total interest bearing deposits		13,653,593		554,833		4.06	%		12,819,034		469,289		3.66	%
Repurchase agreements		600,176		24,773		4.13	%		867,534		37,327		4.30	%
Federal funds purchased and other short-term borrowings		846,853		43,140		5.09	%		1,119,169		57,464		5.13	%
Long-term debt (2)		3,292,036		172,365		5.24	%		2,324,505		136,237		5.86	%
Total interest bearing liabilities		18,392,658	$	795,111		4.32	%		17,130,242	$	700,317		4.09	%
Noninterest bearing demand deposits		2,912,527							2,969,285
Other liabilities (2)		194,725							145,391
Total liabilities		21,499,910							20,244,918
Minority interest/REIT preferred securities		179,058							—
Shareholders’ equity		2,166,296							1,992,772
Total liabilities and shareholders’ equity	$	23,845,264						$	22,237,690
Rate differential						2.90	%						3.05	%
Net yield on interest-earning assets on a tax equivalent basis			$	767,588		3.55	%			$	756,514		3.71	%
Taxable equivalent adjustments (1):
Loans				(830	)						(325	)
Securities				(5,384	)						(922	)
Total taxable equivalent adjustments				(6,214	)						(1,247	)
Net interest income			$	761,374						$	755,267
TOTAL AVERAGE DEPOSITS
Total interest bearing deposits	$	13,653,593	$	554,833		4.06	%	$	12,819,034	$	469,289		3.66	%
Noninterest bearing demand deposits		2,912,527		—		—			2,969,285		—		—
Total average deposits	$	16,566,120	$	554,833		3.35	%	$	15,788,319	$	469,289		2.97	%

(1) Interest earned and average rates on securities and loans exempt from income taxes are reflected on a fully tax equivalent basis using a federal income tax rate of 35%, net of nondeductible interest expense.

(2) Unrealized gains (losses) on available for sale securities and the adjustments for mark to market valuations on hedged assets and liabilities have been classified in either nonearning assets or other liabilities.

THE COLONIAL BANCGROUP, INC. AND SUBSIDIARIES

ASSET QUALITY (unaudited)

RATIOS

	Dec 31, 2007			Sept 30, 2007			June 30, 2007			March 31, 2007			Dec 31, 2006
Period end:
Allowance as a percent of net loans		1.50	%		1.14	%		1.15	%		1.16	%		1.13	%
Total nonperforming assets as a percent of net loans, other real estate and repossessions		0.86	%		0.46	%		0.29	%		0.22	%		0.16	%
Allowance as a percent of nonperforming assets		174	%		246	%		391	%		525	%		695	%
Allowance as a percent of nonperforming loans		196	%		280	%		460	%		601	%		1247	%
Net charge-offs as a percent of average net loans:
Quarter to date (annualized)		0.88	%		0.27	%		0.20	%		0.06	%		0.12	%
Year to date (annualized)		0.35	%		0.18	%		0.13	%		0.06	%		0.12	%
NONPERFORMING ASSETS
(Dollars in thousands)	Dec 31, 2007			Sept 30, 2007			June 30, 2007			March 31, 2007			Dec 31, 2006
Nonaccrual loans	$	121,886		$	61,599		$	38,719		$	28,721		$	14,025
Restructured loans		—			—			—			—			—
Total nonperforming loans		121,886			61,599			38,719			28,721			14,025
Other real estate owned		15,760			8,554			6,833			4,134			1,869
Loans held for sale		—			—			—			—			9,255
Total nonperforming assets	$	137,646		$	70,153		$	45,552		$	32,855		$	25,149
Aggregate loans contractually past due 90 days for which interest is being accrued	$	23,837		$	20,617		$	19,468		$	6,247		$	8,138
Total charge-offs	$	34,818		$	13,744		$	9,234		$	3,542		$	6,301
Total recoveries		(923	)		(3,348	)		(1,654	)		(1,347	)		(1,634	)
Net charge-offs:
Quarter to date	$	33,895		$	10,396		$	7,580		$	2,195		$	4,667
Year to date	$	54,066		$	20,171		$	9,775		$	2,195		$	18,343

THE COLONIAL BANCGROUP, INC. AND SUBSIDIARIES

RECONCILIATION OF CERTAIN FINANCIAL MEASURES (unaudited)

RECONCILIATION OF CERTAIN FINANCIAL MEASURES

(Dollars in thousands)	Dec 31, 2007		Dec 31, 2006			% Change
Loan growth:
Total Loans	$	15,923,178	$	15,478,889		3	%
Excluding:
Impact of residential real estate loans sold in 1st quarter		—		(489,625	)
Impact of Commercial Bankshares acquisition		—		585,340
Impact of Citrus & Chemical Bancorporation acquisition		—		533,245
Total loans, as adjusted	$	15,923,178	$	16,107,849		-1	%
	2007		2006			% Change
Average deposit growth:
Average total deposits	$	16,566,120	$	15,788,319		5	%
Excluding:
Impact of Commercial Bankshares acquisition		—		483,346
Impact of Citrus & Chemical Bancorporation acquisition		—		51,607
Average total deposits, as adjusted	$	16,566,120	$	16,323,272		1	%
	4th Qtr. 2007		3rd Qtr. 2007			% Change
Average deposit growth:
Average total deposits	$	17,137,265	$	16,682,411		3	%
Excluding:
Impact of Citrus & Chemical Bancorporation acquisition		—		204,747
Average total deposits, as adjusted	$	17,137,265	$	16,887,158		1	%

	Dec 31, 2007		Sept 30, 2007		$ Change			% Change
Period end mortgage warehouse assets under management:
Securities purchased under agreements to resell - MWL	$	1,549,664	$	1,584,565	$	(34,901	)	-2	%
Loans held for sale		1,484,502		1,218,936		265,566		22	%
Mortgage warehouse loans		290,603		176,511		114,092		65	%
Total mortgage warehouse assets on balance sheet		3,324,769		2,980,012		344,757		12	%
Securitization of mortgage warehouse assets		1,000,000		1,500,000		(500,000	)	-33	%
Total mortgage warehouse assets under management	$	4,324,769	$	4,480,012	$	(155,243	)	-3	%