Full Description

The Colonial BancGroup, Inc. (BancGroup) is a financial services company that provides diversified services, including retail and commercial banking, wealth management services, mortgage banking and insurance products. The principal activity of the BancGroup is to supervise and coordinate the business of its subsidiaries. The BancGroup derives substantially all of its income from Colonial Bank, N.A (Colonial Bank) its banking subsidiary. The BancGroup’s subsidiary Colonial Brokerage, Inc. provides full service, and discount brokerage services and investment advice.

As of December 31, 2008, Colonial Bank had a total of 347 branches, with 197 branches in Florida, 90 branches in Alabama, 19 branches in Georgia, 21 branches in Texas and 20 branches in Nevada. Colonial Bank conducts commercial banking business in its service areas and offers a variety of demand, savings and time deposit products, as well as extensions of credit through personal, commercial and mortgage loans within each of its market areas. Colonial Bank also provides additional services to its markets through treasury management services, electronic banking services and credit card services. Through its wealth management area, Colonial Bank’s wholly owned subsidiaries, Colonial Investment Services, Inc., Colonial Investment Services of Florida, Georgia, Nevada and Tennessee offer various insurance products and annuities for sale to the public.

BancGroup’s lending is concentrated in Alabama, Florida, Georgia, Nevada and Texas. Commercial real estate loans are loans, which are collateralized by real estate held for investment and business purposes. For BancGroup, commercial real estate property types primarily consist of retail properties, office buildings, apartments, warehouses, churches, schools, lodging, recreational and health service facilities. Real estate construction loans include loans to finance single family and multi-family residential, as well as non-residential real estate. Residential real estate loans consist of loans made to finance one- to four-family residences and home equity loans on residences.

BancGroup determines the funds available for investment based upon anticipated loan and deposit growth, liquidity needs and pledging requirements, as well as other factors. All securities are either classified as held to maturity or available for sale. Securities classified as held to maturity consisted primarily of United States Treasury securities and obligations of United States sponsored entities, obligations of state and political subdivisions and agency mortgage-backed securities. As of December 31, 2008, securities available for sale totaled 94.3% of the total securities portfolio.