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 The Colonial BancGroup, Inc. (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:

•

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;

•

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;

•

changes in the interest rate environment which expand or reduce margins or adversely affect critical estimates as applied and

projected returns on investments;

•

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

2007 Summary of 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 

*

*

Estimated

4

Summary of Loan Loss Experience

2003

–

2007

2007

2006

2005

2004

2003

Reserve Ratio to Net Loans

1.50%

1.13%

1.15%

1.16%

1.20%

Reserve ($ in 000's)

$238,845

$174,850

$171,051

$148,802

$138,549

Coverage of Nonperforming Assets

174%

695%

536%

402%

184%

Net Charge-off Ratio to Average Loans

0.35%

0.12%

0.14%

0.19%

0.31%

Net Charge-offs ($ in 000's)

$54,066

$18,343

$19,211

$23,598

$35,471

Years of Net Charge-offs in Reserve

4.42

9.53

8.90

6.31

3.91

Nonperforming Assets ($ in 000's)

$137,646

$25,149

$31,931

$37,039

$75,440

Ratio of Nonperforming Assets to Net Loans

0.86%

0.16%

0.21%

0.29%

0.65%

5

Nonperforming

Assets

&

Net

Charge-offs

At 12/31/2007

Nonperforming Assets by

Property Type -

$138 million

4

th

Quarter

Net Charge-offs -

$34 million

Residential

Construction

50%

Condo

Construction

20%

Commercial

Construction

10%

CRE

5%

Residential

Real Estate -

Consumer

13%

Non-RE

2%

Consumer

and Other

3%

Real Estate 1-4

Family

4%

Commercial

3%

Commercial

Construction

4%

Real Estate

Commercial

2%

Residential

Construction

84%

6

A&D, $1,233

Residential Presold,

$263

Residential Spec,

$588

Land, $431

National Builders,

$59

Builder Lot Inventory,

$200

Consumer-Owned

Lots, $140

Residential Construction Outstandings

At 12/31/2007:

($ in millions)

Total $2,914

18% of the total

loan portfolio

7

$1.37

1

$1.72

$1.52

$1.31

$1.16

$1.26

$1.06

2001

2002

2003

2004

2005

2006

2007

(diluted)

Earnings Per Share

19%

(8)%

13%

16%

13%

$1.17

1

Excluding one-time gains, restructuring and other charges

8

$422

$455

$495

$567

$709

$755

$761

$190

$196

$195

2001

2002

2003

2004

2005

2006

2007

2Q07

3Q07

4Q07

Net Interest Income

($ in millions)

8%

9%

15%

25%

80%

6%

3.57%    3.55%    3.38%    3.52%    3.75%    3.71%    3.55%

3.66%    3.65%    3.43%

Net Interest

Margin

1%

5 Year CAGR = 11%

2002 -

2007

9

Net Interest Income and Margin

($ in millions)

Tax

Equivalent

NII

NIM

3Q07

$198.0

3.65%

Citrus and Chemical Bank

1.8

0.00%

Deposit mix change and inelastic deposit

     pricing

(5.2)

-0.09%

Increase in Mortgage Warehouse assets

2.1

-0.05%

Asset sensitivity

(2.2)

-0.04%

Growth in securities and other low yielding

     assets

2.8

-0.04%

4Q07

$197.3

3.43%

10

$8,433

$8,734

$9,419

$10,862

$13,988

$15,788

$16,566

$16,682

$17,137

2001

2002

2003

2004

2005

2006

2007

3Q07

4Q07

Average Deposits

4%

8%

15%

1

Excluding acquisitions

($ in millions)

29%

5 Year CAGR = 14%

2002 -

2007

96%

13%

5%

3%

1%¹

1%¹

11

2.30%

2.37%

2.42%

2.42%

2.33%

2.27%

2.24%

2.22%

2002

2003

2004

2005

2006

2007

3Q07

4Q07

$107

$141

$146

$176

$182

$209

$53

$57

2002

2003

2004

2005

2006

2007

3Q07

4Q07

Strong Growth in Noninterest

Income

and Controlled Expenses

Core Noninterest

Income

1

Growth

Core Noninterest

Expense

2

to Average Assets

1

Excluded

from

noninterest

income

are

securities

and

derivatives

gains

(losses),

securities

restructuring

charges,

changes

in

fair

value

of

swap

derivatives and gain on sale of Goldleaf, merchant services, branches and mortgage loans

2

Excluded from noninterest

expense are net losses related to the early extinguishment of debt, severance expense and merger related expenses

8%

($ in millions)

15%

12

Solid capital position

•

Key ratios at 12/31/07:

-

Tangible common equity ratio

4.83%

-

Tangible capital ratio

6.00%

-

Tier I leverage ratio

6.67%*         

-

Tier I capital ratio

8.22%*

-

Total risk based capital ratio  

11.02%*     

Strong liquidity 

•

Ample sources of liquidity which allows Colonial to use the lowest cost funding

available

Strong, high quality investment portfolio

•

99.6% of the portfolio is AAA rated or government backed

•

No subprime

exposure

Dividend of $0.76* for 2008, 18

th

year of increased dividends

Capital and Liquidity

*Estimated

13

We see 2008 being a challenging operating environment for all banks

including Colonial

We believe that we have a realistic view of the operating environment

Liquidity is strong

Solid capital

We have significant financial flexibility to weather the tough times

ahead

Increased dividend to $.76* per share; current dividend yield of

over

6%

2008 Summary

*Estimated

14

18 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

$.76*

$.75

'90

'91

'92

'93

'94

'95

'96

'97

'98

'99

'00

'01

'02

'03

'04

'05

'06

'07

'08

15

Supplemental Information

16

EPS Reconciliation

Sep YTD

2007

4Q07

Full Year

2007

$1.11

$0.06

$1.17

Impact of one-time gains:

Gain on sale of mortgage loans

(0.02)

            -

(0.02)

Gain on sale of merchant services

(0.03)

            -

(0.03)

Impact of restructuring and other charges:

Securities restructuring charges

0.23

            -

0.23

Severance expense

0.03

0.02

0.05

Merger related expenses

0.01

0.01

0.02

Loss on extinguishment of debt

0.05

            -

0.05

0.27

0.03

0.30

Income tax benefit

(0.09)

(0.01)

(0.10)

After tax impact

0.18

0.02

0.20

$1.29

$0.08

$1.37

Diluted EPS - GAAP

Diluted EPS - Operating

17

Selected Average Balances

($ in millions)

2007

2006

4Q07

3Q07

4Q06

2006

3Q07

4Q06

Earning Assets

21,637

$    

20,410

$    

22,917

$    

21,584

$    

20,813

$    

6%

6%

10%

Loans, Net of Unearned Income

15,291

15,340

15,388

15,312

15,463

-

-

-

Loans Held for Sale

1,613

1,374

1,643

1,637

1,461

17%

-

12%

Securities 

3,171

3,014

3,730

3,088

3,169

5%

21%

18%

Resell Agreements and

Other Interest Earning Assets

1,562

682

2,156

1,547

720

129%

39%

199%

Total Assets

23,845

22,238

25,332

23,873

22,733

7%

6%

11%

Total Deposits

16,566

15,788

17,137

16,682

15,939

5%

3%

8%

Noninterest Bearing Deposits

2,913

2,969

2,982

2,950

2,886

-2%

1%

3%

Interest Bearing Transaction Accounts

6,366

6,111

6,363

6,412

6,164

4%

-1%

3%

Time Deposits

7,287

6,708

7,792

7,320

6,889

9%

6%

13%

Repurchase Agreements

600

868

566

562

853

-31%

1%

-34%

S/T Borrowings and Fed Funds

847

1,119

937

655

1,198

-24%

43%

-22%

L/T Debt

3,292

2,325

3,908

3,291

2,527

42%

19%

55%

Shareholders' Equity

2,166

1,993

2,253

2,176

2,045

9%

4%

10%

% Change From

18

% Change

2007

2006

4Q07

3Q07

YTD

QTR

Service charges on deposit accounts

75.5

$   

65.1

$   

19.7

$  

19.4

$  

16%

2%

Electronic banking

18.8

17.2

4.9

4.9

9%

-

Other retail banking fees

12.3

14.4

2.6

2.8

-15%

-7%

Retail banking fees

106.6

96.7

27.2

27.1

10%

-

Financial planning services

16.7

14.1

4.1

4.5

19%

-9%

Mortgage banking origination and sales

14.9

13.5

4.8

3.2

10%

50%

Mortgage warehouse fees

22.2

25.3

3.0

5.9

-12%

-49%

Bank-owned life insurance

20.2

16.0

5.2

5.1

26%

2%

Other income

28.8

16.0

13.0

7.2

80%

81%

Core noninterest income

209.4

181.6

57.3

53.0

15%

8%

Securities and derivatives gains, net

4.0

4.8

2.0

-

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

Gain on sale of Goldleaf

-

2.8

-

-

NM

NM

Total noninterest income

186.2

$ 

189.2

$ 

59.3

$  

53.0

$  

-2%

12%

  Annualized Noninterest Income to Average Assets¹

0.88%

0.82%

0.90%

0.88%

  Noninterest Income to Total Revenue¹

21.6%

19.4%

22.7%

21.3%

Noninterest Income

($ in millions)

1

Core noninterest income was used in the calculation

19

Noninterest Expense

($ in millions)

1

Core

noninterest

income

and

core

noninterest

expense

are

used

in

the

calculation

% Change

2007

2006

4Q07

3Q07

YTD

QTR

Salaries and employee benefits

279.1

$ 

279.6

$  

70.9

$    

68.3

$    

-

4%

Occupancy expense of bank premises, net

78.7

67.3

21.8

19.6

17%

11%

Furniture and equipment expense

53.3

48.6

13.6

13.2

10%

3%

Professional services

18.8

18.5

5.1

5.0

2%

2%

Electronic banking and other retail banking expenses

19.7

13.5

4.2

5.8

46%

-28%

Amortization of intangible assets

13.3

12.2

3.6

3.5

9%

3%

Communications

11.1

10.8

2.5

2.7

3%

-7%

Postage and courier

10.6

10.5

2.7

2.6

1%

4%

Advertising

10.1

10.8

2.6

1.6

-6%

63%

Travel

6.9

8.2

1.7

1.6

-16%

6%

Other expense

40.5

39.2

12.1

9.8

3%

23%

Core noninterest expense

542.1

519.2

140.8

133.7

4%

5%

Severance expense

6.6

0.4

2.6

0.5

NM

NM

Merger related expenses

4.1

-

1.7

0.8

NM

NM

Net losses related to the early extinguishment of debt

6.9

-

-

-

NM

NM

Total noninterest expense

559.7

$ 

519.6

$  

145.1

$ 

135.0

$ 

8%

8%

  Efficiency Ratio¹

55.49%

55.34%

55.29%

53.29%

  Annualized Noninterest Expense to Average Assets¹

2.27%

2.33%

2.22%

2.24%

20

At 12/31/2007:

($ in millions)

Commercial

Real

Estate

&

Construction

Portfolios

Total $11,309

71% of the total

loan portfolio

Residential Home

Construction

8%

$853

Office

12%

$1,332

Healthcare

4%

$489

Retail

14%

$1,541

Lodging

3%

$367

Other

8%

$897

Industrial

9%

$1,007

Commercial Dev. and Lots

5%

$579

Commercial Land

9%

$1,073

Multifamily

6%

$702

Residential Land

4%

$450

Condo

4%

$406

Residential Dev. and Lots

14%

$1,612

21

0.21%

0.29%

0.65%

0.78%

0.64%

0.54%

0.55%

0.60%

0.71%

0.84%

0.78%

0.85%

1.25%

0.86%

0.16%

4.09%

1.13%

0.94%

0.90%

0.86%

1.06%

1.41%

1.41%

1.03%

0.63%

0.47%

0.49%

1.48%

2.23%

0.00%

0.25%

0.50%

0.75%

1.00%

1.25%

1.50%

1.75%

2.00%

2.25%

2.50%

2.75%

3.00%

3.25%

3.50%

3.75%

4.00%

4.25%

'93

'94

'95

'96

'97

'98

'99

'00

'01

'02

'03

'04

'05

'06

'07

Colonial BancGroup

FDIC - Commercial Banks with Assets > $10 Billion

(as originally reported)

NPAs Consistently Below Industry

22

0.33%

0.09%

0.13%

0.18%

0.23%

0.26%

0.21%

0.21%

0.28%

0.29%

0.31%

0.19%

0.14%

0.12%

0.35%

1.02%

0.57%

0.46%

0.52%

0.58%

0.65%

0.66%

0.75%

1.06%

1.04%

0.73%

0.68%

0.47%

1.32%

0.00%

0.10%

0.20%

0.30%

0.40%

0.50%

0.60%

0.70%

0.80%

0.90%

1.00%

1.10%

1.20%

1.30%

1.40%

1.50%

'93

'94

'95

'96

'97

'98

'99

'00

'01

'02

'03

'04

'05

'06

'07

Colonial BancGroup

FDIC - Commercial Banks with Assets > $10 Billion

Net Charge-Offs/Average Loans

(as originally reported)

‘