2008 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:

•

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

•

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

•

failure to receive final approval for the U.S. Treasury Department’s Capital Purchase Program;

•

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 than 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; 

•

continued or sustained deterioration of market and economic conditions or business performance could increase the likelihood that we would have an

additional goodwill impairment charge;

•

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 2009 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;

3

Forward Looking Statements

•

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);

•

unanticipated litigation or claims;

•

changes in the securities markets;

•

acts of terrorism or war; and

•

details

of

the

recently

enacted

Emergency

Economic

Stabilization

Act

of

2008,

and

various

programs

implemented

by

the

U.S.

Treasury

Department

and

bank

regulators

to

address

capital

and

liquidity

concerns

in

the

banking

system,

are

still

being

finalized

and

may

have

a

significant

effect

on

the

financial services industry and BancGroup.

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.

4

2008 Summary of Results

*Estimated

Net loss of $4.11 per share in the quarter and $4.71 for the full year of 2008

Goodwill impairment charge of $575 million and a tax benefit of $40.6 million

associated with the impairment charge netted to a loss of $2.66 per share in the

quarter; excluding net goodwill impairment charge, operating loss was $1.45 per share

Aggressive loan workout efforts intensified in the quarter; Colonial sold $317 million of

problem assets during the quarter and transferred another $49 million to held for sale

Strengthened loan loss reserve to 2.24% of net loans at 12/31/08

compared to 1.50% at

12/31/07

Strong liquidity position: Increased cash and interest bearing deposits in banks to over

$2 billion at 12/31/08

Retail deposits increased 11% annualized over 9/30/08

At 12/31/08, capital ratios* remain above “well capitalized”

minimums for regulatory

purposes:

Tier I Risk-Based Capital of 8.88%, Total Risk-Based Capital of 13.16% and

Tier I Leverage Ratio of 6.13%

Net interest margin of 2.37% for the fourth quarter compared to 2.85% in the third

quarter of 2008, primarily resulting from the significant liquidity position

5

2008 Financial Stability Achievements

Raised $350 million of common stock

Issued $250 million of subordinated debt

Sold $427 million of troubled assets

Provided $729 million for loan losses

Reduced risk weighted assets by $1.7 billion

Improved all key measures of liquidity

12/31/08

12/31/07

Tier 1

8.88%

8.22%

Total RBC

13.16%

11.01%

Capital Ratios

Leverage

6.13%

6.67%

6

Credit Highlights

Aggressive management of problem loans

•

Sales of $317 million of problem assets in the fourth quarter

•

Moved $49 million of nonaccrual loans to held for sale in the fourth quarter

•

Charged off $643 million (net) in 2008, 4.16% of average net loans

•

Nonperforming assets excluding loans moved to held for sale declined by $17 million from

September 30, 2008 bringing nonperforming assets to 4.51% of loans and other real estate and

repossessions

Provisions exceeded net charge-offs by $40 million in the quarter

•

Further strengthened loan loss reserve to 2.24% of net loans at 12/31/08 versus 1.88% at 9/30/08

and 1.50% at 12/31/07

•

Excess capital

(1)

plus LLR

cushion equaled 110% of NPAs at 12/31/08

79% of nonperforming assets are in the construction related sector of the

loan portfolio

Highly qualified and experienced commercial workout group

(1)

Excess capital is defined as pretax capital in excess of well capitalized minimums

7

Review of Loan Portfolio at 12/31/08

Data as of December 31, 2008

1

Past due and still accruing

($ in millions)

Dollars

Outstanding

% of Total

Portfolio

Change Since

9/30/08

Past Dues

12/31/08

1

NPA's

% of

NPA's

Residential Construction

$1,979.9

13.6

%

($407.2)

4.09%

$418.4

58.9%

Commercial Construction

2,547.9

17.5

(77.0)

3.71%

140.6

19.8%

Seasoned Commercial Real Estate

4,887.2

33.6

(57.1)

2.49%

52.9

7.5%

1-4 Family Permanent Real Estate

2,497.9

17.2

(47.6)

3.60%

82.0

11.5%

Commercial & Industrial

957.3

6.6

(42.7)

2.00%

9.6

1.4%

Mortgage Warehouse Lending

725.8

5.0

72.4

0.00%

5.4

0.8%

Consumer & Other

401.2

2.8

(69.2)

5.53%

1.0

0.1%

Total Performing Loans

$13,997.2

96.3

($628.4)

2.95%

$709.9

100.0%

Nonaccrual Loans

532.8

3.7

(10.0)

Total

$14,530.0

100.0

%

($638.4)

Nonaccrual Loans Held for Sale

$49.2

ORE

$127.9

Total Loans, Nonaccrual LHFS & ORE

$14,707.1

8

Residential Construction Portfolio Update

Scaled back lending / tightened underwriting standards in Florida beginning in May 2006 and 

substantially curtailed new approvals beginning in Q2 2007

Identified and isolated  problem credits via a thorough  portfolio review

Texas  comprises  24% of portfolio and continues to perform  better than other markets

Only 11% of residential construction and condo loans have interest reserves, and of those loans

33% are located in Texas, which has seen limited credit deterioration

Residential construction portfolio, excluding NPAs, declined $407 million in Q4 2008 to $2.0 

billion, or approximately 14% of the loan portfolio, down 17% from 9/30/08

  Construction loans decreased $1.4 billion, or 22%, in 2008, reducing overall construction      

exposure

9

Mortgage Warehouse Lending

*Source:  http://warehouselendingproject.com/home

Warehouse lending is a critical link in the housing finance chain, providing short-term funding

for loans that are eventually sold into the secondary market to Fannie Mae, Freddie Mac and

Ginnie

Mae

Lenders that utilize warehouse lines of credit account for approximately 41%* of all residential

mortgage loans in the U.S., and nearly 55%* of FHA loans

Estimates

are

that

since

2006

warehouse

lending

available

to

the

industry

has

declined

by

nearly

90% to approximately $25 billion* today

As

a

Top

10

warehouse

lender,

Colonial

Bank

provides

$4

billion,

or

16%,

of

the

available

financing to the industry

Colonial Bank is the largest mortgage warehouse lender in the southeast

In 2008, Colonial Bank provided approximately $70 billion of interim funding to the industry

representing nearly 400,000 residential mortgage loans

Colonial Bank is the primary lender for two Top 20 mortgage originators in the nation; one of

which

is

a

Top

10

producer

of

Ginnie

Mae

loans

Colonial

Bank

is

continuing

to

support

the

mortgage

industry

–

many

competitors

have

withdrawn from this space: Citibank, Morgan Stanley, Merrill Lynch, Bear Stearns, CSFB,

Washington Mutual, and Regions

10

Summary of 4

th

Quarter 2008 Results

Colonial reported a net loss of $825 million or $4.11 per share in the quarter; $1.45 loss per

share excluding Goodwill impairment and the related income tax benefit

Credit costs were $484.5 million, pretax or $1.57 per share in the quarter

•

$415 million of net charge-offs

•

$40 million of loan loss reserve build

•

$20 million of losses and expenses on ORE

•

$9.5 million of interest reversed on loans placed on nonaccrual

Net interest

income and margin decreased $26 million and 48 basis points, respectively, from

the third quarter

Core

noninterest

income

decreased

$6.9

million,

or

13%,

from

the

third

quarter

Noninterest expenses, excluding goodwill impairment, increased $17 million

•

Losses and expenses on ORE were $20 million, an increase of $16.6 million

•

Write-downs on real estate joint ventures and other losses on equity investments totaled $7.5

million, an increase of $2.5 million

•

Other expenses were down $2 million

•

Launched Colonial 1st project in early December

•

Hired Harvest Earnings Group to lead the project

•

Expected to result in savings ranging from 5% to 8% of expenses

11

Net Interest Income and Margin

($ in millions)

Tax Equivalent

NII

NIM

3Q08

$168.9

2.85%

Decrease in Earning Assets (Loans & MWL)

(11.2)

-0.11%

Increase in MWL Pricing

6.7

0.11%

Impact of Loans Placed on Nonaccrual

(7.1)

-0.12%

Cost of Liquidity

(6.2)

-0.22%

Deposit Mix Change and Pricing Competition on CD's

(7.2)

-0.12%

FHLB Stock - No Dividend

(1.1)

-0.02%

4Q08

$142.8

2.37%

12

$18.0*

$18.5

$19.1

$20.2

$19.7

$13.8

$14.5

$14.9

$15.5

$15.6

Loans,

Excl. Warehouse

Total Risk

Weighted Assets

Active Balance Sheet Management

($ in billions)

*Estimated

-12%

-9%

13

CD's > $100k

16%

Core Deposits

55%

Brokered Deposits

5%

Reciprocal CDARS

1%

Long-Term Borrowings

17%

Short-Term Borrowings

6%

Retail franchise provides the most important source of funding

•

Deposits comprise 77% of total funding and fund 72% of total assets

4Q08 Cost of Deposits: 2.61%

Loan to Deposit Ratio of 78%

Only $43 million of corporate debt maturities in 2009

Deposit Composition / Liquidity

Time

Deposits

49%

Interest

Bearing

Transaction

Accounts

28%

Brokered

Time

Deposits

7%

Noninterest

Bearing

Transaction

Accounts

15%

Reciprocal

CDARS

1%

Total Deposits: $18.7 billion

at 12/31/08

Total Funding Position: $24.2 billion

at 12/31/08

As of December 31, 2008

14

$8,323

$9,411

$9,918

$11,864

$15,483

$18,673

$16,091

$18,544

2001

2002

2003

2004

2005

2006

2007

2008

Period End Deposits

13%

5%

20%

($ in millions)

31%

5 Year CAGR = 13%

2003 -

2008

124%

4%

15%

1%

15

Capital

ratios

were

above

regulatory

"well

capitalized"

minimums

at 12/31/08

Preliminary approval of TARP is conditioned upon Colonial’s obtaining $300

million of additional capital

Colonial has

entered

into

a

letter

of

intent

with

SunTx

Capital

Partners

of

Dallas,

Texas for a potential investment of up to 24.9% of the proforma

capitalization of

the Company. We are also working with several other investors. We expect to

complete the capital raising process in the first quarter of 2009

Even without new capital or the TARP,  we have approximately $780 million of

excess capital (pretax) and reserves available to absorb charge-offs and as such

we expect to remain well capitalized throughout the year

Capital

16

Supplemental Information

17

Excess Capital Position and Reserves

Provide Significant Loss Cushion

($ in thousands)

*Estimated

1

Includes

REIT

preferred

stock

Well

Actual*

Capitalized

12/31/08

After tax

Pretax

Ratios

Tier I Risk-Based Capital

8.88%

$518,000

$797,000

6.00%

Total Risk-Based Capital

13.16%

$569,000

$875,000

10.00%

Tier I Leverage

6.13%

$295,000

$454,000

5.00%

Tangible Common Equity Ratio

4.24%

N/A

Tangible Capital Ratio

5.38%

(1)

N/A

Balances

Loan Categories

12/31/08

(Excess Capital + Reserve)

NPAs

$709,872

NPAs

+ Still Accruing Past Due 90

$751,451

Capital in Excess of Well

Capitalized Minimums

Loss Absorption %'s

110%

104%

18

Impact of Securities Fair Value Adjustment

($ in millions)

4Q08

3Q08

2Q08

1Q08

4Q07

Securities Available for Sale

     Cost Basis

3,779.9

$     

3,783.2

$     

3,702.4

$     

3,665.9

$     

3,692.9

$  

     Fair Value Adjustment

(139.6)

(163.7)

(249.7)

(172.4)

(11.6)

     At Fair Value

3,640.3

$     

3,619.5

$     

3,452.7

$     

3,493.5

$     

3,681.3

$  

Fair Value Adjustment Percentage

-3.7%

-4.3%

-6.7%

-4.7%

-0.3%

Change in Fair Value Adjustment

24.1

$          

86.0

$          

(77.3)

$         

(160.8)

$       

25.3

$       

Impact of Fair Value Adjustment on Shareholders' Equity

At Period End

(90.7)

$         

(106.4)

$       

(162.3)

$       

(103.3)

$       

(3.7)

$       

Change During the Period

15.7

$          

55.9

$          

(59.0)

$         

(99.6)

$         

17.7

$       

19

Selected Average Balances

($ in millions)

4Q08

3Q08

4Q07

3Q08

4Q07

Earning Assets

23,995

$    

23,607

$    

22,917

$    

2%

5%

Loans, Net of Unearned Income

14,808

15,226

15,388

-3%

-4%

Loans Held for Sale

2,056

2,235

1,643

-8%

25%

Securities 

4,006

3,896

3,730

3%

7%

Resell Agreements and

Federal Funds Sold

1,835

2,238

2,132

-18%

-14%

Interest Bearing Deposits in Banks

1,290

12

24

10650%

5275%

Total Assets

26,317

26,080

25,332

1%

4%

Total Deposits

18,565

18,449

17,137

1%

8%

Noninterest Bearing Deposits

2,846

2,872

2,982

-1%

-5%

Interest Bearing Transaction Accounts

5,053

5,515

6,363

-8%

-21%

Time Deposits

10,666

10,062

7,792

6%

37%

Repurchase Agreements

485

510

566

-5%

-14%

S/T Borrowings and Fed Funds Purchased

680

132

937

415%

-27%

L/T Debt

4,038

4,041

3,908

0%

3%

% Change

20

% Change

2008

2007

4Q08

3Q08

YTD

QTR

Service Charges on Deposit Accounts

76.0

$    

75.5

$    

17.9

$    

19.6

$    

1%

-9%

Electronic Banking

20.4

18.8

5.0

5.2

9%

-4%

Other Retail Banking Fees

9.4

12.3

2.1

2.2

-24%

-5%

Retail Banking Fees

105.8

106.6

25.0

27.0

-1%

-7%

Mortgage Banking Origination and Sales

30.0

14.9

7.1

8.1

101%

-12%

Wealth Management Services

17.9

16.7

3.7

4.4

7%

-16%

Mortgage Warehouse Fees

5.2

22.2

1.5

1.5

-77%

0%

Bank-Owned Life Insurance

19.4

20.2

4.4

4.7

-4%

-6%

Other Income

22.6

28.8

3.1

6.0

-22%

-48%

Core Noninterest Income

200.9

209.4

44.8

51.7

-4%

-13%

Securities and Derivatives Gains (Losses), Net

3.0

4.0

-

(6.1)

-25%

100%

Securities Restructuring Charges

-

(36.0)

-

-

100%

-

Other Non-recurring gains

-

8.8

-

-

-100%

-

Total Noninterest Income

203.9

Noninterest Income

($ in millions)

1

Core noninterest income was used in the calculation

$  

186.2

$  

44.8

$    

45.6

$    

9%

-2%

Annualized

Noninterest

Income

to

Average

Assets

1

0.75%

0.88%

0.68%

0.79%

Noninterest

Income

to

Total

Revenue

1

23.2%

21.6%

24.1%

23.7%

21

Noninterest Expense

($ in millions)

1

Core

noninterest

income

and

core

noninterest

expense

were

used

in

the

calculation

% Change

2008

2007

4Q08

3Q08

YTD

QTR

Salaries and Employee Benefits

295.9

$   

279.1

$  

72.3

$  

75.1

$   

6%

-4%

Occupancy Expense of Bank Premises, Net

95.5

78.7

24.2

24.2

21%

0%

Furniture and Equipment Expenses

59.9

53.3

14.8

15.2

12%

-3%

Professional Services

29.1

18.8

8.4

7.2

55%

17%

FDIC Insurance and Other Regulatory Fees

18.1

6.3

4.9

4.2

187%

17%

Amortization of Intangible Assets

16.6

13.4

4.2

4.2

24%

0%

Electronic Banking and Other Retail Banking Expenses

16.0

19.7

4.3

3.5

-19%

23%

Losses and Expenses on Other Real Estate

28.4

1.2

19.8

3.3

2267%

500%

Loan Closing Costs

6.6

5.5

1.5

1.9

20%

-21%

Communications

11.4

11.1

2.9

2.8

3%

4%

Advertising

12.1

10.1

3.7

3.4

20%

9%

Postage and Courier

9.9

10.6

2.6

2.4

-7%

8%

Loss on Equity Investments

16.9

3.0

7.5

5.0

463%

50%

Travel

6.5

6.9

2.0

1.6

-6%

25%

Other Expenses

36.3

24.5

6.6

8.1

48%

-19%

Core Noninterest Expense

659.2

542.2

179.7

162.1

22%

11%

Goodwill Impairment

575.0

-

575.0

-

100.0%

100%

Severance Expense

0.8

6.6

-

-

-88%

-

Merger Related Expenses

-

4.0

-

-

-100%

-

Net Losses Related to the Early Extinguishment of Debt

10.3

6.9

-

0.3

49%

-100%

Total Noninterest Expense

1,245.3

$

559.7

$  

754.7

$

162.4

$

122%

365%

Efficiency Ratio

1

75.52%

55.49%

95.79%

73.52%

Annualized

Noninterest

Expense

to

Average

Assets

2.46%

2.27%

2.73%

2.49%

1

22

Condo

Construction

$227

Res.

Development

$876

Res. Land

$284

Res. Spec

$282

Res. Presold

$110

Consumer

Lots

$96

Builder Lots

$105

Residential Construction

(Excluding Nonaccruals)

By Location and Property Type at 12/31/08

13.6%

of

total

loan

portfolio

-

$1.980

billion

($ in millions)

Total

Outstanding

Res.

Development

Builder

Lots

Consumer

Lots

Res.

Presold

Res. Spec

Res. Land

Condo

Construction

Florida

885

$                 

309

$                

45

$              

65

$          

47

$          

109

$        

137

$        

173

$             

Texas

483

303

23

5

12

42

84

14

Georgia

267

153

13

1

9

57

12

22

Alabama

227

71

22

24

17

62

25

6

Nevada

85

33

1

-

22

10

19

-

Other

33

7

1

1

3

2

7

12

Total

1,980

$             

876

$               

105

$            

96

$          

110

$        

282

$        

284

$        

227

$             

23

Commercial Construction

(Excluding Residential, Condominium Construction and Nonaccruals)

By Location and Property Type at 12/31/08 

17.5% of total loan portfolio - $2.548 billion

($ in millions)

Location

Alabama

$204.8

8.0%

Texas

$463.7

18.2%

Other

$355.8

14.0%

Georgia

$203.8

8.0%

Nevada

$313.3

12.3%

Florida

$1,006.5

39.5%

Property Type

Commercial

Development

$354.8

13.9%

Commercial Lot

Inventory

$160.9

6.3%

Industrial

$28.9

1.1%

Warehouse

$112.9

4.5%

Retail

$394.8

15.5%

Other

$80.5

3.2%

Healthcare

$58.1

2.3%

Multi-family

$191.8

7.5%

Office

$205.1

8.0%

Lodging

$146.4

5.7%

Commercial Land

$813.7

32.0%

24

Seasoned Commercial Real Estate

(Excluding Nonaccruals)

By Location and Property Type at 12/31/08

33.6%

of

total

loan

portfolio

-

$4.887

billion

($ in millions)

Location

Alabama

$538.3

11.0%

Texas

$440.0

9.0%

Other

$386.5

7.9%

Georgia

$348.1

7.1%

Nevada

$199.7

4.1%

Florida

$2,974.6

60.9%

Property Type

Healthcare

$451.0

9.2%

Lodging

$302.9

6.2%

Office

$1,048.3

21.4%

Multi-family

$458.8

9.4%

Retail

$1,078.2

22.1%

Warehouse

$674.0

13.8%

Other

$751.5

15.4%

Industrial

$122.5

2.5%

25

Other Loan Types

(Excluding Nonaccruals)

At

12/31/08

–

31.6%

of

total

portfolio

-

$4.582

billion

($ in millions)

Mortgage

Warehouse

Lending

$725.8

5.0%

1-4 Family

Permanent

Real Estate

$2,497.9

17.2%

Consumer &

Other

$401.2

2.8%

Commercial

& Industrial

$957.3

6.6%

(note: percentages in above chart represent proportion to total portfolio)

26

Nonperforming Assets by Property Type

and Location

At 12/31/08 –

Total $709.9 million

($ in millions)

Location

Florida

$447.6

63.1%

Georgia

$78.2

11.0%

Nevada

$42.2

5.9%

Texas

$21.5

3.0%

Other

$16.9

2.4%

Alabama

$103.5

14.6%

Property Type

C & I

$9.6

1.4%

Mortgage

Warehouse Lending

$5.4

0.8%

Residential

Construction

$418.4

58.9%

Seasoned

Commercial

Real Estate

$52.9

7.5%

1-4 Family

Permanent

Real Estate

$82.0

11.5%

Commercial

Construction

$140.6

19.8%

Consumer &

Other

$1.0

0.1%

27

Location

Florida

$214.8

30.3%

Georgia

$70.5

9.9%

Nevada

$41.7

5.9%

Texas

$18.0

2.5%

Other

$13.5

1.9%

Alabama

$59.9

8.4%

Residential Construction NPAs

At 12/31/08 –

Total $418.4 million (or 58.9% of total nonperforming assets)

($ in millions)

(note: percentages in above charts represent proportion to total

NPAs)

Property Type

Builder Lots

$37.7

5.3%

Residential

Land

$70.9

10.0%

Residential

Spec and

Presold

$116.4

16.4%

Residential

Development

$128.3

18.1%

Consumer

Lots

$18.7

2.6%

Condo

Construction

$46.4

6.5%

28

Location

Florida

$108.0

15.2%

Texas

$0.1

0.0%

Georgia

$2.1

0.3%

Alabama

$30.4

4.3%

Property Type

Commercial

Land

$93.2

13.1%

Other

$3.7

0.5%

Retail

$6.3

0.9%

Lodging

$4.7

0.7%

Office

$3.4

0.5%

Commercial

Lots

$7.9

1.1%

Commercial

Development

$21.4

3.0%

Commercial Construction NPAs

(Excluding Residential and Condominium Construction)

At 12/31/08 –

Total $140.6 million (or 19.8% of total nonperforming assets)

($ in millions)

(note: percentages in above charts represent proportion to total

NPAs)

29

Property Type

Industrial

$1.6

0.2%

Other

$12.4

1.7%

Warehouse

$5.0

0.7%

Retail

$10.3

1.5%

Multi-family

$6.0

0.9%

Office

$15.9

2.2%

Lodging

$1.3

0.2%

Healthcare

$0.4

0.1%

Location

Alabama

$6.2

0.9%

Georgia

$1.9

0.3%

Texas

$1.0

0.1%

Florida

$43.8

6.2%

Seasoned Commercial Real Estate NPAs

At 12/31/08 –

Total $52.9 million (or 7.5% of total nonperforming assets)

($ in millions)

(note: percentages in above charts represent proportion to total

NPAs)

30

Net Charge-Offs by Property Type and

Location

Twelve

Months

Ended

December

31,

2008

–

Total

$642.8

million

($ in millions)

Location

Florida

$445.6

69.3%

Georgia

$44.9

7.0%

Nevada

$67.4

10.5%

Texas

$3.5

0.7%

Other

$34.3

5.2%

Alabama

$47.1

7.3%

Property Type

Residential

Construction

$429.9

66.9%

Seasoned

Commercial

Real Estate

$47.6

7.4%

1-4 Family

Permanent

Real Estate

$25.4

4.0%

Commercial

Construction

$96.6

15.0%

Consumer &

Other

$10.1

1.5%

C & I

$33.2

5.2%

31

Location

Florida

$262.7

40.9%

Georgia

$42.6

6.6%

Nevada

$62.8

9.8%

Texas

$2.5

0.4%

Other

$22.4

3.5%

Alabama

$36.9

5.7%

Residential Construction Net Charge-Offs

Twelve Months Ended December 31, 2008

Total $429.9 million (or 66.9% of total net charge-offs)

($ in millions)

(note: percentages in above charts represent proportion to total

net charge-offs)

Property Type

Builder Lots

$19.2

3.0%

Residential

Land

$69.3

10.8%

Residential

Spec and

Presold

$87.9

13.7%

Residential

Development

$204.1

31.8%

Consumer

Lots

$3.2

0.4%

Condo

Construction

$46.2

7.2%

32

Location

Florida

$88.2

13.7%

Other

$5.8

0.9%

Alabama

$2.6

0.4%

Property Type

Commercial

Land

$44.9

7.0%

Office

$0.6

0.1%

Retail

$0.7

0.1%

Other

$1.3

0.2%

Lodging

$20.5

3.2%

Multi-family

$3.2

0.5%

Commercial

Lots

$8.4

1.3%

Commercial

Development

$17.0

2.6%

Commercial Construction

Net Charge-Offs

(Excluding Residential and Condominium Construction)

Twelve Months Ended December 31, 2008

Total $96.6 million (or 15.0% of total net charge-offs)

($ in millions)

(note: percentages in above charts represent proportion to total

net charge-offs)

33

Location

Alabama

$3.8

0.6%

Other

$0.3

0.0%

Georgia

$0.6

0.1%

Nevada

$2.0

0.3%

Florida

$40.9

6.4%

Property Type

Industrial

$0.3

0.0%

Office

$4.3

0.7%

Retail

$8.5

1.3%

Other

$15.2

2.4%

Warehouse

$7.9

1.2%

Multi-family

$11.4

1.8%

Seasoned Commercial Real Estate

Net Charge-Offs

Twelve Months Ended December 31, 2008

Total $47.6 million (or 7.4% of total net charge-offs)

($ in millions)

(note: percentages in above charts represent proportion to total

net charge-offs)

34

Diversified Seasoned Commercial Real

Estate Portfolio

As of 12/31/08

($ in thousands)

Property Type

Total Exposure

Central FL

West Coast  FL

South FL

Panhandle FL

Northern FL

Alabama

Georgia

Texas

Nevada

Other

Retail

1,102,570

143,775

260,795

264,466

41,097

7,370

103,570

65,223

80,095

45,004

91,175

Retail -

other than gas stations

856,514

121,486

167,839

230,597

18,104

6,629

59,153

50,846

78,293

34,482

89,085

Gas Station/Convenience Store

246,056

22,289

92,956

33,869

22,993

741

44,417

14,377

1,802

10,522

2,090

Multi-family

473,682

36,875

179,681

97,911

8,101

10,149

51,168

11,063

24,300

12,226

42,208

Office

1,074,221

182,113

293,987

248,613

9,142

11,869

92,454

56,161

58,008

47,088

74,786

Office -

non-medical

901,511

159,601

241,124

232,122

9,142

7,427

76,275

43,746

54,140

25,542

52,392

Office -

Medical

172,710

22,512

52,863

16,491

0

4,442

16,179

12,415

3,868

21,546

22,394

Warehouse

697,541

133,690

164,247

176,304

3,094

107

68,163

35,830

19,948

63,986

32,172

Warehouse with Office

471,188

93,895

130,340

93,770

3,094

107

51,354

29,760

11,887

40,291

16,690

Warehouse

146,605

25,371

23,947

73,194

0

0

4,992

2,307

3,740

1,643

11,411

Mini-Warehouse

79,748

14,424

9,960

9,340

0

0

11,817

3,763

4,321

22,052

4,071

Healthcare -

Living Facility

313,595

16,022

27,260

2,393

5,993

5,974

77,241

47,561

126,154

143

4,854

Skilled Nursing Facility

123,418

0

19,041

0

5,993

5,974

29,500

15,130

47,780

0

0

Assisted Living Facility

121,093

292

8,219

2,393

0

0

30,660

2,431

72,101

143

4,854

Congregate Care Facility

69,084

15,730

0

0

0

0

17,081

30,000

6,273

0

0

Healthcare

172,662

8,444

11,519

585

641

288

12,858

23,200

0

1,129

113,998

Lodging

305,003

51,801

72,635

56,536

0

0

35,540

27,343

39,825

12,516

8,807

Recreation

34,914

4,737

11,586

2,584

0

668

12,422

972

0

1,184

761

Industrial

138,303

23,903

29,181

11,199

0

0

17,629

7,070

21,162

9,789

18,370

Church or School

186,353

35,211

7,733

19,092

0

931

50,370

49,108

3,862

5,128

14,918

Farm

117,327

29,048

13,099

35,222

389

1,964

21,954

5,240

7,138

291

2,982

All Other Types

434,957

94,326

107,117

68,587

12,440

16,604

38,327

26,230

22,493

6,436

42,397

Nonaccrual

49,258

12,028

18,593

7,746

2,244

998

4,949

1,839

861

0

0

Total

5,100,386

771,973

1,197,433

991,238

83,141

56,922

586,645

356,840

403,846

204,920

447,428

Notes:

1) Includes outstanding exposures (balances plus commitments)

Includes All Seasoned Commercial Real Estate Exposures

(Principal Balances and Amounts Available To Be Drawn)

Commercial Real Estate Portfolio Commitments as of 12-31-08

Seasoned Commercial Real Estate Exposures by Geographic Location

35

Diversified CRE/Construction Loan Portfolio

As of 12/31/08

($ in thousands)

Property Type

Total Exposure

Central FL

West Coast  FL

South FL

Panhandle FL

Northern FL

Alabama

Georgia

Texas

Nevada

Other

Retail

1,640,337

191,789

269,371

308,616

42,393

7,370

181,163

106,399

235,195

83,295

214,746

Retail - other than gas stations

1,388,724

169,500

174,540

274,747

19,400

6,629

136,718

92,022

233,105

72,773

209,290

Gas Station/Convenience Store

251,613

22,289

94,831

33,869

22,993

741

44,445

14,377

2,090

10,522

5,456

Residential Development

1,003,268

127,790

123,648

49,604

36,290

16,910

78,352

171,971

356,687

33,561

8,455

Builder Lot Inventory

113,300

8,869

15,312

7,266

14,875

883

23,926

16,908

23,308

996

957

Consumer Lot Inventory

96,118

18,268

18,949

8,277

17,665

1,620

23,683

1,182

5,072

202

1,200

Commercial Development

421,151

104,476

27,364

50,823

7,762

2,020

5,038

2,786

32,100

158,409

30,373

Commercial Lot Inventory

165,730

10,623

15,033

29,210

5,348

141

6,827

50,923

26,333

273

21,019

Residential Homes (under construction)

551,016

85,991

92,939

34,967

12,066

3,116

94,625

104,001

63,485

50,449

9,377

Multi-family

754,195

39,725

179,681

101,849

8,101

11,004

81,788

64,830

170,206

28,126

68,885

Land Only

1,171,366

237,374

161,637

75,213

125,126

5,885

100,413

42,792

192,977

123,110

106,839

Commercial Land

867,726

174,185

130,013

48,908

100,592

5,263

69,075

31,100

105,421

103,491

99,678

Residential Land

303,640

63,189

31,624

26,305

24,534

622

31,338

11,692

87,556

19,619

7,161

Office

1,410,699

249,783

373,189

293,214

12,542

12,984

92,539

82,887

150,077

62,959

80,525

Office - non-medical

1,167,236

191,043

311,570

276,723

12,542

8,542

76,360

65,187

118,143

41,413

65,713

Office - Medical

243,463

58,740

61,619

16,491

0

4,442

16,179

17,700

31,934

21,546

14,812

Condominium Bldgs - Construction

265,973

107,715

67,788

23,119

4,983

0

6,591

27,415

15,195

0

13,167

Warehouse

841,526

145,253

186,800

207,982

3,094

107

79,418

44,800

32,538

102,760

38,774

Warehouse with Office

522,265

96,133

148,315

102,935

3,094

107

52,321

32,453

17,056

57,964

11,887

Warehouse

170,350

31,401

24,734

77,977

0

0

4,992

2,307

11,411

1,643

15,885

Mini-Warehouse

148,911

17,719

13,751

27,070

0

0

22,105

10,040

4,071

43,153

11,002

Healthcare - Living Facility

394,872

16,022

27,261

2,393

13,768

5,974

78,441

50,359

33,187

143

167,324

Skilled Nursing Facility

149,567

0

19,042

0

13,768

5,974

30,699

15,130

0

0

64,954

Assisted Living Facility

173,422

292

8,219

2,393

0

0

30,660

2,431

33,187

143

96,097

Congregate Care Facility

71,883

15,730

0

0

0

0

17,082

32,798

0

0

6,273

Healthcare

219,849

11,684

14,856

585

641

288

12,858

23,200

154,608

1,129

0

Lodging

575,555

107,540

72,635

70,936

0

700

47,916

131,003

67,556

12,516

64,753

Recreation

35,638

4,737

11,586

3,309

0

668

12,422

972

760

1,184

0

Industrial

186,385

23,950

37,605

11,199

0

0

23,212

7,070

49,167

9,789

24,393

Church or School

217,554

40,195

12,374

35,873

0

1,498

51,563

50,099

16,963

5,128

3,861

Farm

143,841

29,048

13,099

35,222

389

1,964

21,954

5,377

10,860

291

25,637

All Other Types

497,897

100,606

108,677

69,635

12,440

16,604

45,202

26,872

88,932

6,436

22,493

Nonaccrual

497,214

147,551

118,922

22,784

37,414

8,658

61,727

42,950

1,953

41,712

13,543

Total

11,203,484

1,808,989

1,948,726

1,442,076

354,897

98,394

1,129,658

1,054,796

1,727,159

722,468

916,321

Notes:

1) Includes outstanding exposures (balances plus commitments)

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 12-31-08

Commercial Real Estate Exposures by Geographic Location