Presentation Materials

Quarter

2008

Earnings Overview

Exhibit 99.2

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:

losses to our loan portfolio are greater than estimated or expected;

an inability to raise additional capital on terms and conditions that are satisfactory;

the impact of current economic conditions on our ability to borrow additional funds to meet our liquidity needs;

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, projected

returns on investments, and fair values of assets;

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 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);

unanticipated litigation or claims;

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.

Significantly increased capital in the second quarter to very strong

levels: Tier 1 Capital of 10.10%, Total Risk Based Capital of 14.13% and

Leverage Ratio of 7.38%

Net loss of $0.05 per share in the quarter

Reduced assets by $1.3 billion: $670 million in mortgage warehouse

assets and $608 million in regional bank loans in the 2Q08

Strong liquidity position: over $5 billion of excess borrowing capacity

Average deposit growth was 15% over the 2Q07 and 5% annualized

over the 1Q08

Quarter 2008 Summary of Results

Credit Quality –

Quarter 2008 Highlights

Aggressive management of problem loans: charged off $73 million in the second quarter

and increased foreclosed assets by $94 million bringing nonperforming assets to 2.62% of

loans and other real estate

Substantial slowdown in migration of loans from performing to delinquent status as 90 days

past due and still accruing loans fell 56% from 1Q08 and 30-89 days past due loans fell 40%

from 1Q08

Significant excess capital and loan loss reserve cushion totaling 289% of nonperforming

assets at 6/30/08

Provision exceeded net charge-offs: strengthened loan loss reserve to 1.60% of net loans at

6/30/08 compared to 1.50% at 3/31/08

Isolated problem credits to residential related construction sector of loan portfolio

Residential construction portfolio has decreased by $328.9 million since 3/31/08

Only

15.4%

our

residential

construction

and

condo

loans

have

interest

reserves,

and

those

loans,

almost

35%

are

located

Texas,

which

has

not

seen

credit

deterioration

Workout and collection staff increased by 51%

Highly qualified commercial workout group with 88% of the staff having over 15 years of

workout and banking experience

Loan Portfolio

At 6/30/08

($ in millions)

Business Line

Dollars

Outstanding

% of Total Change Since

Portfolio

3/31/08

Past Dues

6/30/08

Past Dues

3/31/08

Residential Construction

$2,766.1

17.9%

($328.9)

3.59%

6.07%

Commercial Real Estate & Construction

7,750.1

50.1%

(163.1)

1.01%

1.89%

1-4 Family Permanent Real Estate

2,574.0

16.6%

(61.5)

2.20%

2.65%

Commercial & Industrial

1,060.6

6.9%

(131.6)

1.41%

1.36%

Mortgage Warehouse Lending

580.3

3.7%

(17.7)

Consumer & Other

442.9

2.9%

28.9

0.51%

1.34%

Nonaccrual Loans

294.8

1.9%

48.3

Total

$15,468.8

100%

($625.6)

1.66%

2.70%

Residential Construction

By Location and Property Type at 6/30/08 –

Excluding Nonaccruals

17.9% of total loan portfolio -

$2.766 billion

($ in millions)

Total

Outstanding

Res.

Development

Builder

Lots

Consumer

Lots

Res.

Presold

Res. Spec

Res.

Land

Condo

Construction

National

Builders

Florida

1,368

529

204

199

215

Texas

495

262

Georgia

354

171

Alabama

318

Nevada

154

Other

Total

2,766

1,130

161

118

187

470

397

274

Res. Development

$1,130

Builder Lots $161

Consumer Lots $118

Res. Presold $187

Res. Spec $470

Res. Land $397

Condo Construction

$274

National Builders $29

Commercial Real Estate and Construction

(Excluding Residential, Condominium Construction and Nonaccruals)

By Location and Property Type at 6/30/08

50.1% of total loan portfolio

$7.750 billion

($ in millions)

Florida

$4,364.3

56.3%

Georgia

$537.5

6.9%

Texas

$816.9

10.5%

Nevada

$507.3

6.6%

Alabama

$821.8

10.6%

Other

$702.3

9.1%

Property Type

Location

Commercial

Lots

$168.6

2.2%

Commercial

Development

$395.8

5.1%

Commercial

Land

$941.4

12.2%

Industrial

$170.8

2.2%

Lodging

$398.6

5.1%

Multifamily

$641.3

8.3%

Office

$1,328.6

17.1%

Other

$860.2

11.1%

Retail

$1,488.0

19.2%

Warehouse

$836.8

10.8%

Healthcare

$520.0

6.7%

Other Loan Types

Excluding Nonaccruals

At 6/30/08 –

30.1% of total portfolio -

$4.658 billion

($ in millions)

1-4 Family

Permanent

Real Estate

$2,574.0

55.3%

Commercial &

Industrial

$1,060.6

22.8%

Consumer &

Other

$442.9

9.5%

Mortgage

Warehouse

Lending

$580.3

12.4%

Weighted Average LTV

By Property Type –

As of 6/30/08

Property Type

Weighted

Average LTV

Property Type

Weighted

Average LTV

Total Construction

71.2%

Total Commercial Real Estate

63.9%

Residential Construction

73.6%

Church or School

53.2%

Farm

59.7%

Builder Lots

80.0%

Healthcare

68.9%

Condo Construction

66.5%

Industrial

66.4%

Consumer Lots

74.7%

Lodging

59.5%

Residential Development

69.8%

Multifamily

68.5%

Residential Land

71.2%

Office

66.3%

Residential Spec and Presold

82.1%

Retail

61.0%

Warehouse

65.2%

Other

61.3%

Commercial Construction

68.6%

Commercial Development

67.9%

1-4 Family Permanent Real Estate

71.4%

Commercial Land

58.1%

Commercial Lots

68.3%

Healthcare

71.2%

Industrial

80.6%

Lodging

71.4%

Multifamily

81.9%

Office

73.2%

Retail

75.6%

Warehouse

72.3%

Other

60.7%

Property Type

Location

Nonperforming Assets by Property Type

and Location

At 6/30/08 –

Total $408.4 million

($ in millions)

Commercial

Real Estate &

Construction

$110.1

27.0%

1-4 Family

Permanent

Real Estate

$38.6

9.4%

Other Loan

Types

$3.5

0.9%

Residential

Construction

$256.2

62.7%

Florida

$234.0

57.3%

Georgia

$48.6

11.9%

Alabama

$57.9

14.2%

Nevada

$42.8

10.5%

Texas

$7.1

1.7%

Other

$18.0

4.4%

Florida

$122.7

30.0%

Georgia

$47.1

11.6%

Texas

$6.9

1.7%

Other

$15.4

3.7%

Nevada

$42.5

10.4%

Alabama

$21.6

5.3%

Residential

Development

$86.8

21.2%

Consumer

Lots

$11.3

2.8%

Condo

Construction

$52.1

12.8%

Residential

Land

$31.0

7.6%

Residential

Spec and

Presold

$54.0

13.2%

Builder

Lots

$21.0

5.1%

Residential Construction NPAs

At 6/30/08 –

Total $256.2 million (or 62.7% of total nonperforming assets)

($ in millions)

Property Type

Location

(note: percentages in above charts represent proportion to total

NPAs)

Commercial Lots

$5.4

1.3%

Lodging

$0.7

0.2%

Healthcare

$0.5

0.1%

Commercial

Land

$58.3

14.3%

Office

$5.5

1.4%

Other

$3.1

0.8%

Retail

$0.9

0.2%

Warehouse

$2.1

0.5%

Commercial

Development

$29.4

7.2%

Multifamily

$2.8

0.7%

Industrial

$1.4

0.3%

Florida

$75.9

18.6%

Georgia

$0.5

0.1%

Other

$1.9

0.5%

Alabama

$31.8

7.8%

Commercial Real Estate and Construction

NPAs

(Excluding Residential and Condominium Construction)

At 6/30/08–

Total $110.1 million (or 27.0% of total nonperforming assets)

($ in millions)

Location

Property Type

(note: percentages in above charts represent proportion to total

NPAs)

Top Nonperforming Assets

Broken Down By Asset Size

($ in millions)

Asset Size

Number

Dollars

% of NPAs

NPLs > $10 Million

$72.8

17.8%

NPLs $5 - $10 Million

47.8

11.7%

NPLs $2 - $5 Million

54.5

13.4%

ORE > $1.5 Million

90.8

22.2%

Total

$265.9

65.1%

Property Type

Location

Net Charge-offs by Property Type and

Location

Six Months Ended June 30, 2008 –

Total $106.4 million

($ in millions)

Commercial

Real Estate &

Construction

$24.4

22.9%

1-4 Family

Permanent

Real Estate

$5.8

5.5%

C & I

$3.9

3.7%

Consumer &

Other

$2.4

2.2%

Residential

Construction

$69.9

65.7%

Nevada

$6.7

6.3%

Florida

$80.7

75.8%

Georgia

$8.7

8.2%

Other

$4.1

3.9%

Texas

$0.8

0.8%

Alabama

$5.4

5.0%

Residential Construction Net Charge-Offs

(YTD)

At 6/30/08 –

Total $69.9 million (or 65.7% of total net charge-offs)

($ in millions)

Property Type

Location

Condo

$20.1

18.9%

Residential

Land

$5.0

4.7%

Residential

Spec and

Presold

$14.6

13.7%

Residential

Development

$25.3

23.8%

Consumer

Lots

$1.2

1.1%

Builder Lot

Inventory

$3.7

3.5%

Nevada

$6.2

5.8%

Other

$3.1

2.9%

Texas

$0.6

0.6%

Georgia

$7.9

7.4%

Florida

$50.2

47.2%

Alabama

$1.9

1.8%

(note: percentages in above charts represent proportion to total

net charge-offs)

Commercial Real Estate and

Construction

Net Charge-Offs (YTD)

(Excluding Residential and Condominium Construction)

At 6/30/08–

Total $24.4 million (or 22.9% of total net charge-offs)

($ in millions)

Industrial

$0.2

0.2%

Office

$1.6

1.5%

Warehouse

$2.9

2.7%

Commercial

Lots

$0.1

0.1%

Other

$2.3

2.2%

Commercial

Land

$11.5

10.8%

Multifamily

$3.6

3.3%

Retail

$2.2

2.1%

Nevada

$0.3

0.3%

Other

$1.0

0.9%

Florida

$19.7

18.5%

Alabama

$2.8

2.6%

Georgia

$0.6

0.6%

Location

Property Type

(note: percentages in above charts represent proportion to total

net charge-offs)

Excess Capital Position and Reserves

Provide Significant Loss Cushion

($ in millions)

*Estimated

Well

Actual*

Capitalized

6/30/08

After tax

Pretax

Ratios

Tier 1 Capital

10.10%

$783

$1,177

6.00%

Total Risk Based Capital

14.13%

789

1,186

10.00%

Tier 1 Leverage

7.38%

621

934

5.00%

Tangible Common Equity Ratio

5.43%

N/A

Tangible Capital Ratio

6.60%

N/A

Balances

Loan Categories

6/30/08

(Excess Capital + Reserve)

NPAs

$408

NPAs

+ Past Due Loans

$654

Residential Construction Loans

$2,766

43%

Commercial RE & Construction Loans

7,750

15%

Residential Construction + Commercial RE & Construction Loans

$10,516

11%

181%

Capital in Excess of Well

Capitalized Minimums

Loss

Absorption

289%

$3,325

$5,090

$4,420

$15,633

$15,496

$14,888

$25,976

$27,353

$26,031

12/31/07

3/31/08

6/30/08

12/31/07

3/31/08

6/30/08

12/31/07

3/31/08

6/30/08

Mortgage Warehouse Assets

Loans,

Excl. Warehouse

Total Assets

Active Balance Sheet Management

($ in millions)

53%

-13%

-1%

-4%

-5%

Short Term

Borrowings

CD's > $100k

16%

Long Term

Borrowings

17%

Brokered Deposits

Core Deposits

57%

Strong Liquidity Position

6/30/08 Funding Position

Total $23.3 Billion

Loan to Deposit Ratio of 84%

Retail franchise provides the most

important source of funding

•

Deposits comprise 79% of total

funding and fund 70% of total

assets

Available sources of funding are

more than $5 billion in excess of

current useage

Sources include: Fed funds, FHLB

availability, brokered deposits and available

collateral

No corporate debt maturities in

2008 –

no rollover risk to

institutional market

$8,433

$8,734

$9,419

$10,862

$13,988

$15,788

$16,464

$18,973

$16,566

$18,758

2001

2002

2003

2004

2005

2006

2007

2Q07

1Q08

2Q08

Average Deposits

15%

Excluding acquisitions

($ in millions)

29%

5 Year CAGR = 14%

2002 -

2007

96%

13%

1%¹

NOTE:

Growth

percent

2Q07

2Q08

15%

7%¹

Net Interest Income and Margin

($ in millions)

Tax Equivalent

NII

NIM

1Q08

$183.8

2.94%

Deposit Pricing and Mix Change

(5.0)

-0.07%

Impact of Increase in Nonperforming Assets

(1.8)

-0.04%

New Sub Debt Issuance - 1Q08

(1.9)

-0.03%

Asset Sensitivity

1.5

0.03%

Common Stock Issuance - 2Q08

1.3

0.02%

Prepaid FHLB Advances

1.1

0.02%

Decrease in Earning Assets

(2.5)

0.01%

2Q08

$176.5

2.88%

We expect the remainder of 2008 to be a challenging operating

environment for all banks including Colonial

Powerful franchise in growth markets

Liquidity is strong

Strong capital position which gives us financial flexibility to weather

the tough times ahead

We have isolated the problem credits to the residential related

construction sector of the loan portfolio

Risk management activities: increasing capital, reducing loan

balances, maintaining strong loan loss reserves

No off-balance sheet items

Insider stock ownership of over 6%

2008 Outlook

Supplemental Information

Selected Average Balances

($ in millions)

2Q08

1Q08

2Q07

1Q08

2Q07

Earning Assets

24,576

25,067

20,969

-2%

17%

Loans, Net of Unearned Income

15,798

15,994

15,113

-1%

Loans Held for Sale

2,953

3,161

1,882

-7%

57%

Securities

3,663

3,677

2,596

41%

Resell Agreements and

Other Interest Earning Assets

2,162

2,235

1,378

-3%

57%

Total Assets

27,016

27,650

23,097

-2%

17%

Total Deposits

18,973

18,758

16,464

15%

Noninterest Bearing Deposits

3,067

2,936

Interest Bearing Transaction Accounts

6,309

6,610

6,375

-5%

-1%

Time Deposits

9,597

9,081

7,153

34%

Repurchase Agreements

522

544

511

-4%

S/T Borrowings and Fed Funds

476

1,380

636

-66%

-25%

L/T Debt

4,076

4,084

3,034

34%

Shareholders' Equity

2,411

2,281

2,166

11%

% Change

% Change

2Q08

1Q08

2Q07

1Q08

2Q07

Service Charges on Deposit Accounts

19.3

19.2

18.7

Electronic Banking

5.3

5.0

4.6

15%

Other Retail Banking Fees

2.5

2.6

3.3

-4%

-24%

Retail Banking Fees

27.1

26.8

26.6

Mortgage Banking Origination and Sales

8.0

6.8

3.7

18%

116%

Financial Planning Services

5.0

4.8

4.3

16%

Mortgage Warehouse Fees

1.2

1.0

6.3

20%

-81%

Bank-Owned Life Insurance

5.2

5.1

5.0

Other Income

6.2

7.1

6.9

-13%

-10%

Core Noninterest Income

52.7

51.6

52.8

Securities and Derivatives Gains, Net

3.0

6.1

1.1

-50%

173%

Gain on Sale of Merchant Services

4.9

-100%

Total Noninterest Income

55.7

57.7

58.8

-4%

-5%

0.78%

0.75%

0.92%

23.2%

22.1%

21.7%

Noninterest Income

($ in millions)

Core noninterest income was used in the calculation

Annualized

Noninterest

Income

Average

Assets

Noninterest

Income

Total

Revenue

Noninterest Expense

($ in millions)

Core

noninterest

income

and

core

noninterest

expense

are

used

the

calculation

% Change

2Q08

1Q08

2Q07

1Q08

2Q07

Salaries and Employee Benefits

74.8

73.7

70.3

Occupancy Expense of Bank Premises, Net

24.1

23.1

18.7

29%

Furniture and Equipment Expense

15.1

14.7

13.4

13%

Professional Services

7.8

5.6

4.6

39%

70%

FDIC Insurance and Other Regulatory Fees

4.4

4.6

1.2

-4%

267%

Amortization of Intangible Assets

4.1

4.2

3.2

-2%

28%

Electronic Banking and Other Retail Banking Expenses

4.1

4.2

5.5

-2%

-25%

Loan and Other Real Estate Related Costs

4.5

2.7

0.9

67%

400%

Communications

2.9

2.8

2.9

Advertising

2.4

2.6

3.7

-8%

-35%

Postage and Courier

2.3

2.6

2.7

-12%

-15%

Loss on Equity Investments

1.7

2.7

0.7

-37%

143%

Travel

1.5

1.4

2.0

-25%

Other Expense

9.8

13.0

7.6

-25%

29%

Core Noninterest Expense

159.5

157.9

137.4

16%

Severance Expense

0.6

0.2

0.5

133%

20%

Merger Related Expenses

1.1

-100%

Net Losses Related to the Early Extinguishment of Debt

4.1

5.9

2.5

-31%

64%

Total Noninterest Expense

164.2

164.0

141.5

16%

69.59%

67.02%

56.20%

2.36%

2.28%

2.38%

Efficiency

Ratio

Annualized

Noninterest

Expense

Average

Assets

Diversified CRE/Construction Loan Portfolio

As of 6/30/08

Property Type

Total Exposure

Central FL

West Coast FL

South FL

Panhandle FL

Northern FL

Alabama

Georgia

Texas

Nevada

Other

Retail

14.04%

1.54%

2.11%

2.93%

0.17%

0.29%

1.52%

0.76%

2.22%

0.80%

1.70%

Retail - other than gas stations

12.53%

1.37%

1.70%

2.61%

0.17%

0.06%

1.26%

0.66%

2.21%

0.80%

1.69%

Gas Station/Convenience Store

1.51%

0.17%

0.40%

0.32%

0.00%

0.23%

0.26%

0.10%

0.01%

0.02%

Residential Development

13.49%

2.94%

1.70%

0.31%

0.69%

0.26%

1.18%

1.93%

3.71%

0.60%

0.17%

Builder Lot Inventory

1.66%

0.12%

0.18%

0.09%

0.23%

0.01%

0.37%

0.22%

0.42%

0.01%

Commercial Development

4.84%

1.11%

0.49%

0.60%

0.00%

0.02%

0.08%

0.02%

0.64%

1.48%

0.40%

Commercial Lot Inventory

1.62%

0.09%

0.31%

0.36%

0.01%

0.00%

0.05%

0.47%

0.18%

0.01%

0.14%

Residential Homes (under construction)

8.25%

1.67%

1.21%

0.71%

0.09%

0.05%

1.32%

1.59%

0.67%

0.81%

0.13%

Multi-family

7.14%

0.40%

1.90%

1.25%

0.08%

0.10%

0.87%

0.35%

1.25%

0.27%

0.67%

Land Only

13.98%

3.16%

2.08%

1.01%

1.34%

0.08%

1.15%

0.59%

1.82%

1.36%

1.39%

Commercial Land

9.72%

1.95%

1.72%

0.78%

0.90%

0.07%

0.95%

0.34%

1.03%

0.98%

1.00%

Residential Land

4.27%

1.21%

0.36%

0.23%

0.44%

0.01%

0.21%

0.25%

0.78%

0.38%

0.39%

Office

9.11%

1.43%

1.90%

2.53%

0.11%

0.14%

0.51%

0.48%

1.09%

0.25%

0.66%

Office - non-medical

8.10%

1.04%

1.74%

2.48%

0.11%

0.14%

0.45%

0.41%

0.90%

0.22%

0.61%

Office - Medical

1.01%

0.39%

0.16%

0.05%

0.00%

0.06%

0.07%

0.20%

0.03%

0.05%

Condominium Bldgs - Construction

3.58%

1.40%

1.15%

0.29%

0.05%

0.00%

0.09%

0.28%

0.18%

0.00%

0.15%

Warehouse

5.83%

0.96%

1.23%

1.63%

0.00%

0.45%

0.33%

0.15%

0.81%

0.26%

Warehouse with Office

3.25%

0.56%

0.93%

0.87%

0.00%

0.20%

0.23%

0.06%

0.39%

0.00%

Warehouse

1.32%

0.24%

0.16%

0.64%

0.00%

0.02%

0.07%

0.05%

0.00%

0.15%

Mini-Warehouse

1.26%

0.16%

0.15%

0.12%

0.00%

0.23%

0.04%

0.41%

0.11%

Healthcare - Living Facility

1.44%

0.00%

0.07%

0.02%

0.07%

0.00%

0.18%

0.32%

0.24%

0.00%

0.53%

Skilled Nursing Facility

0.32%

0.00%

0.07%

0.00%

0.18%

0.00%

0.07%

Assisted Living Facility

0.80%

0.00%

0.07%

0.02%

0.00%

0.24%

0.00%

0.46%

Congregate Care Facility

0.32%

0.00%

0.32%

0.00%

Healthcare

1.83%

0.02%

0.09%

0.01%

0.00%

0.01%

0.00%

1.60%

0.01%

0.08%

Lodging

5.61%

1.08%

0.90%

0.37%

0.00%

0.07%

0.57%

1.14%

0.68%

0.12%

0.70%

Recreation

0.17%

0.04%

0.07%

0.01%

0.00%

0.01%

0.04%

0.00%

Industrial

0.91%

0.08%

0.19%

0.04%

0.00%

0.04%

0.03%

0.44%

0.05%

0.03%

Farm

0.96%

0.28%

0.12%

0.31%

0.00%

0.02%

0.10%

0.00%

0.06%

0.00%

0.07%

All Other Types

3.35%

0.80%

0.74%

0.62%

0.07%

0.19%

0.20%

0.11%

0.20%

0.01%

0.42%

Nonaccrual

2.18%

0.28%

Total

100.00%

17.42%

16.72%

13.37%

3.20%

1.51%

9.02%

8.91%

15.85%

6.87%

7.81%

Notes:

1) Includes outstanding exposures (balances plus commitments).

2) Does not include owner occuppied properties (except for owner occupied Healthcare - Living Facilities and Gas Stations).

Includes Commercial Real Estate and Construction Loan Exposures

(Principal Balances and Amounts Available To Be Drawn)

Expressed as a Percentage of Commercial Real Estate Portfolio Commitments as of 6-30-08

Commercial Real Estate Exposures by Geographic Location