<PAGE> 1
EXHIBIT 99.1
THE COLONIAL BANCGROUP, INC.
COLONIAL BANCGROUP
SANDLER O'NEILL & PARTNERS, L.P.
THIRD ANNUAL FINANCIAL SERVICES CONFERENCE
DECEMBER 7-8, 2000
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WHY US?
COLONIAL BANCGROUP
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FORWARD-LOOKING STATEMENTS
COLONIAL BANCGROUP
This Presentation contains "forward-looking statements" within the meaning of
the federal securities laws. The forward-looking statements in the presentation
are subject to risks and uncertainties that could cause actual results to differ
materially from those expressed in or implied by the statements. Factors that
may cause actual results to differ materially from those contemplated by such
forward-looking statements include, among other things, the following
possibilities; (i) an inability of the company to realize elements of its
strategic plans for 2000 and 2001, including, but not limited to, an inability
to maintain asset quality, meet targeted non-performing asset levels, and meet
targeted returns on assets. (ii) increases in competitive pressure in the
banking industry; (iii) general economic conditions, either nationally or
regionally, that are less favorable than expected; (iv) and changes which may
occur in the regulatory environment, and (v) changes in interest Rates by the
Board of Governors of the Federal Reserve Bank or Rate changes driven by market
conditions in the financial services industry. When used in this presentation,
the words "believes," "estimates," "plans," "expects," "should," "may," "might,"
"outlook," and "anticipates," and similar expressions as they relate to
BancGroup (including its subsidiaries) or its management are intended to
identify forward-looking statements.
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WHO WE ARE:
COLONIAL BANCGROUP
- One Bank holding company with $11.5 billion in assets.
- Located in 6 states with concentration in Alabama, Georgia, & Florida
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Assets by State - September 2000
<TABLE>
<S> <C>
Alabama $4,171
Florida $3,397
Georgia $1,081
Nevada $ 280
Texas $ 249
Tennessee $ 122
Corporate Assets $2,175
</TABLE>
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COLONIAL BANCGROUP
ASSET GROWTH BY STATE
<TABLE>
<CAPTION>
1995 1996 1997 1998 1999 2000
----- ----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C>
Alabama 2,680 3,068 3,396 3,734 4,031 4,171
Florida -- 291 1,619 2,602 2,920 3,397
Georgia 220 398 484 726 894 1,081
Tennessee 91 98 100 101 105 122
Nevada -- -- -- 278 284 280
Texas -- -- -- 287 206 249
Wholesale 750 1,015 1,253 2,727 2,413 2,175
</TABLE>
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CONSOLIDATED 3Q00 SUMMARY
COLONIAL BANCGROUP
<TABLE>
<CAPTION>
September 30, December 31, September 30, % Change from
(Dollars in thousands) 2000 1999 1999 Dec-99(*) Sep-99
----------------------- ------------- ------------ ------------- -----------------
<S> <C> <C> <C> <C> <C>
STATEMENT OF CONDITION:
Total assets $11,475,528 $10,854,099 $10,620,924 8% 8%
Less mortgage banking assets 102,635 338,413 485,070 -92% -78%
----------- ----------- -----------
Total assets, excluding mortgage
banking assets $11,372,893 $10,515,686 $10,135,854 11% 12%
Loans, net of unearned income 9,107,393 8,228,149 7,856,226 14% 16%
Mortgage servicing rights -- 238,405 270,428 -100% -100%
Deposits 8,043,850 7,967,978 7,601,210 1% 6%
</TABLE>
(*) Annualized
- Asset growth related to banking business has increased 12% since the
third quarter of 1999.
- We have completed our plans to exit the mortgage servicing and
wholesale origination business.
- The effects of this decision are:
- Elimination of risk associated with mortgage servicing rights.
- Reduction in earnings volatility from significant variances
production volumes.
- Reallocation of approximately $40 million of capital for more
profitable purposes. This capital has been used to fund strong loan
growth and a stock repurchase.
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CONTINUING OPERATIONS 3Q00 SUMMARY (CONT.)
COLONIAL BANCGROUP
<TABLE>
<CAPTION>
Three months ended September 30,
--------------------------------------
(Dollars in thousands, except % Change
per share amounts) 2000 1999 1999 to 2000
------- ------- ------------
<S> <C> <C> <C>
EARNINGS SUMMARY:
Continuing Operations:
Net interest income (taxable equiv.) $97,034 $95,699 1%
Noninterest income(1) 20,649 16,548 25%
Noninterest expense 62,976 60,755 4%
Operating Income 28,561 27,576 4%
Earnings per share -Diluted $ 0.26 $ 0.24 8%
</TABLE>
(1) Continuing operations exclude the results of the mortgage banking
business which had an after tax loss of $2,927,000 in 1999 compared to zero in
2000.
(2) Excludes gains on sale of certain branches and other one time
miscellaneous income items in 1999.
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CONTINUING OPERATIONS 3Q00 SUMMARY (CONT.)
COLONIAL BANCGROUP
<TABLE>
<CAPTION>
Three Months ended September 30,
--------------------------------
2000 1999
------ ------
<S> <C> <C>
Selected Ratios:
Operating income to:
Average assets 0.99% 1.03%
Average shareholders' equity 15.92% 16.11%
Net interest margin 3.65% 3.98%
Noninterest income to average assets* 0.72% 0.62%
Noninterest expense to average assets 2.20% 2.28%
</TABLE>
* Excludes gain on sale of certain branches and other one time miscellaneous
income items in 1999.
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COLONIAL BANCGROUP
EFFICIENCY RATIO - CONTINUING OPERATIONS
----------------------------------------
<TABLE>
<S> <C>
1997 58.90
1998 66.65
1999(1) 53.52
3rd Quarter - 2000 53.51
2000 YTD 53.14
</TABLE>
Note: Excludes acquisition and restructuring cost, Y2K expenses and ORE gains.
(1) Excludes gain on sale of certain branches and other one time
miscellaneous income items in 1999.
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WHY US?
COLONIAL BANCGROUP
- We have one of the strongest loan portfolios in the business.
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COLONIAL BANCGROUP
<TABLE>
<CAPTION>
LOAN PORTFOLIO %
-------------- --
<S> <C>
Commercial 13
Consumer 3
Real Estate
Commercial 33
Construction 19
Residential 28
Other 4
</TABLE>
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COLONIAL BANCGROUP
Portfolio Breakdown as of 10/15/00
<TABLE>
Commercial Real Estate
and Commercial Construction %
--------------------------- -----
<S> <C>
Retail 14
Office 12
Multi-family 9
Development 9
Lodging 9
Health Care 6
Other 41
</TABLE>
Note: Approximately 25% of Commercial Real Estate Portfolio is owner occupied.
Note: No other property type represents more than 6% of the total Portfolio.
Our lending policies and underwriting, approval and monitoring processes are
conservative and comprehensive.
- Discourage higher risk types of lending (syndicated lending, indirect,
credit cards & unsecured).
- Stringent underwriting guidelines (up-front equity, low loan-to-values
and personal guarantees).
- Loan committee approval process, no large individual lending
authorities. No officer at the bank has more than $100,000 unsecured personal
lending authority.
- Independent loan review process.
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COLONIAL BANCGROUP
<TABLE>
<CAPTION>
RESERVE POSITION -
SEPTEMBER 30, 2000 %
------------------ ----
<S> <C>
Reserves 1.14
Nonperforming .56
Provision .39
Net Charge-offs YTD .21
</TABLE>
- Colonial's loan loss reserve exceeds the net charge-off ratio by 5.6 times,
while other Southeastern Peers(1) reserve exceeds their charge-off ratio by 4.9
times.
- With 28% of loans collateralized by residential real estate and historical
charge-offs at very low levels, the reserve position is strong.
- $104 million reserve is 1.42 times the cumulative net charge-offs since 1995.
- Loan provision has exceeded net charge-offs every year.
(1) SOUTHTRUST, COMPASS, REGIONS, BB&T, UNION PLANTERS, FIRST TENNESSEE,
SUNTRUST, AMSOUTH, AND CENTURA.
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COLONIAL BANCGROUP
Nonperforming Assets/Loans and OREO
<TABLE>
<CAPTION>
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 3RD QTR 2000
---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Nonperforming Assets 1.49 1.07 1.34 1.31 .90 .78 .84 .71 .60 .55 .56
OREO .30 .46 .68 .84 .39 .31 .24 .24 .12 .11 .07
</TABLE>
NOTE: AS ORIGINALLY REPORTED PRIOR TO RESTATEMENTS FOR MERGERS ACCOUNTED FOR AS
POOLINGS OF INTERESTS.
- Management targets a 0.50% nonperforming asset ratio.
- Loan review process involves local directors in loan decisions.
- Independent loan review staff rates loans and assists banks in providing
early identification of problem credits.
- Economic conditions and real estate market activities in key geographic
markets are very strong.
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NET CHARGE-OFFS/AVERAGE LOANS
COLONIAL BANCGROUP
<TABLE>
<CAPTION>
1991 1992 1993 1994 1995 1996 1997 1998 1999 YTD2000
---- ---- ---- ---- ---- ---- ---- ---- ---- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Colonial BancGroup .51 .47 .33 .09 .13 .18 .23 .26 .21 .21
All FDIC insured commercial banks(1) 1.59 1.27 .85 .50 .49 .58 .63 .66 .58 .58
Southern Regionals(1) .96 .78 .33 .17 .22 .29 .30 .30 .29 .30
</TABLE>
NOTE: AS ORIGINALLY REPORTED PRIOR TO RESTATEMENTS FOR MERGERS ACCOUNTED FOR AS
POOLINGS OF INTERESTS.
(1) Provided by Keefe, Bruyette, & Woods.
- Management targets a net charge-off ratio below 0.20%.
- Local lending authority and approval process along with high percentage of
real estate loans have resulted in very low net charge-offs.
- Recoveries averaged 30% of gross charge-offs from 1992 to 3Q00.
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WHY US?
COLONIAL BANCGROUP
- We have one of the strongest loan portfolios in the business.
- WE ARE IN SOME OF THE HIGHEST GROWTH MARKETS IN THE UNITED STATES.
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[COLONIAL BANK LOGO]
[MAP]
- We are in some of the highest growth markets in the United States.
- Disciplined and opportunities acquisitions:
- High growth areas of FL, GA, NV, & TX
- Created geographic diversification
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LOAN GROWTH BY REGION
COLONIAL BANCGROUP
<TABLE>
<CAPTION>
ANNUALIZED
REGION GROWTH RATE
-----------------------------------------------------
<S> <C>
SOUTHWEST FL (Naples/Ft. Myers) 42%
TEXAS (Dallas) 38%
GEORGIA (Atlanta/Macon/Columbus) 31%
SOUTH FL (Miami/Palm Beach) 25%
CENTRAL FL (Greater Orlando) 20%
GULF COAST (Mobile) 13%
NEVADA (Las Vegas/Reno) 12%
BAY AREA (Tampa/St. Petersburg) 5%
NORTHERN REGION (Huntsville) 5%
CENTRAL AL (Birmingham) 5%
MONTGOMERY 4%
SEATTLE LPO* -79%
</TABLE>
NOTE: ANNUALIZED LOAN GROWTH FROM DECEMBER 31, 1999 TO SEPTEMBER 30, 2000,
EXCLUDES APPROXIMATELY $61.7 MILLION IN MORTGAGE LOANS SOLD FROM BANK REGIONS.
* SEATTLE LOAN PRODUCTION OFFICE WAS CLOSED 09/30/00
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LOAN GROWTH BY STATE
COLONIAL BANCGROUP
<TABLE>
<CAPTION>
LOAN PORTFOLIO BY STATE % CONTRIBUTION OF LOAN GROWTH %
------------------------- -----------------------------
<S> <C> <C>
Alabama 46 20
Georgia 12 22
Florida 36 53
Other 6 5
</TABLE>
NOTE: LOAN BALANCE AT SEPTEMBER 30, 2000. LOAN GROWTH FROM DECEMBER 31, 1999 TO
SEPTEMBER 30, 2000, EXCLUDES APPROXIMATELY $61.7 MILLION IN MORTGAGE LOANS SOLD
FROM BANK REGIONS.
- Consolidated annualized loan growth since December 31, 1999 through September
30, 2000 was 16%, excluding approximately $110 million mortgage loans sold.
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RETAIL DEPOSIT CONCENTRATION
COLONIAL BANCGROUP
<TABLE>
<CAPTION>
SEPTEMBER 30, 2000 DECEMBER 31, 1996
------------------ -----------------
<S> <C> <C>
Alabama 43 80
Georgia 9 9
Florida 40 8
Other 8 3
</TABLE>
NOTE: AS ORIGINALLY REPORTED PRIOR TO RESTATEMENTS FOR MERGERS ACCOUNTED FOR AS
POOLINGS OF INTERESTS.
- The regional banks have additional growth opportunities through the
development of customer relationships by cross-selling a variety of bank
products and services. Strong regional bank management supported by
BancGroup's asset/liability and products and services management teams
provide the Company with resources to remain competitive in its deposit
markets.
- The acquisition strategy has enhanced the funding structure and provides
diversification. At September 30, 2000 our cost of deposits by State are as
follows:
<TABLE>
<CAPTION>
STATE RATE
-------------------------
<S> <C>
Florida 5.40%
Alabama 5.48%
Georgia 6.0%
Other 5.61%
</TABLE>
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RETAIL DEPOSIT GROWTH
COLONIAL BANCGROUP
RETAIL DEPOSIT GROWTH
<TABLE>
<CAPTION>
CONTRIBUTION OF DEPOSIT GROWTH
------------------------------
<S> <C>
Alabama 33
Georgia 4
Florida 67
Other -4
</TABLE>
NOTE: DEPOSIT BALANCE AT SEPTEMBER 30, 2000. DEPOSIT GROWTH FROM DECEMBER 31,
1999 TO SEPTEMBER 30, 2000.
- Annualized retail deposit growth since December 31, 1999 until September 30,
2000 was 10%.
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AVERAGE DEPOSIT GROWTH BY REGION
COLONIAL BANCGROUP
<TABLE>
<CAPTION>
ANNUALIZED
REGION GROWTH RATE
-----------------------------------------------------------
<S> <C>
SOUTH FL (Miami/Palm Beach) 35%
SOUTHWEST FL (Naples/Ft. Myers) 13%
BAY AREA (Tampa/St. Petersburg) 13%
GULF COAST (Mobile) 9%
CENTRAL FL (Greater Orlando) 8%
CENTRAL AL (Birmingham) 8%
ALL OTHER REGIONS 4%
TOTAL BANK REGIONS 10%
</TABLE>
NOTE: ANNUALIZED DEPOSIT GROWTH FROM DECEMBER 31, 1999 TO SEPTEMBER 30, 2000.
NOTE: ALL OTHER AREAS GREW LESS THAN 8%.
- Deposit growth remains a primary strategic initiative of BancGroup.
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WHY US?
COLONIAL BANCGROUP
- We have one of the strongest loan portfolios in the business.
- We are in some of the highest growth markets in the United States.
- WE ARE PROVIDING MORE SERVICES TO CUSTOMERS WITH GREAT RESULTS.
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NONINTEREST INCOME - CONTINUING OPERATIONS
COLONIAL BANCGROUP
<TABLE>
<CAPTION>
Noninterest Income - Continuing Operations (in Millions)
--------------------------------------------------------
<S> <C>
1998 $60.055
1999(1) $64.703
2000 YTD Annualized $74.400
</TABLE>
(1) Excludes gain on sale of certain branches and other one time miscellaneous
income items in 1999.
- Colonial is enhancing broad based revenue generating capabilities in Wealth
Management, International Banking, Electronic Banking and Cash Management.
Expansion of these services to the customer base of acquired community banks
offers the opportunity for greater revenue growth.
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NONINTEREST INCOME - CONTINUING OPERATIONS
COLONIAL BANCGROUP
<TABLE>
<CAPTION>
Projected Projected
(Dollars in thousands) 1998 1999 2000 %Growth
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Wealth Management $ 3,539 $ 5,498 $ 9,000 64%
International Banking $ 391 $ 1,353 $ 2,000 48%
Electronic Banking $ 3,873 $ 4,582 $ 6,000 31%
Cash Management $ 908 $ 1,501 $ 2,400 60%
Credit/Merchant Card Service $ 2,045 $ 2,729 $ 3,000 10%
Other Bank Service Chrgs & Fees $37,302 $36,621 $36,000 -2%
Other Misc Income(*) $11,997 $12,419 $16,000 29%
--------------------------------------------------------------------------------------
TOTAL $60,055 $64,703 $74,400 15%
======================================================================================
</TABLE>
(*) Excludes gain on sale of certain branches and other one time miscellaneous
income items in 1999.
Note: 3rd Quarter annualized would be $76,771, 19% growth over 1999.
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NONINTEREST INCOME - WEALTH MANAGEMENT
COLONIAL BANCGROUP
<TABLE>
<CAPTION>
Noninterest Income - Wealth Management (in Millions)
----------------------------------------------------
<S> <C>
1998 $3.5
1999 $5.5
3rd Qtr Annualized $9.0
</TABLE>
- Since 1997 wealth management's revenues have grown on an average of 52% per
year. Revenues for 3Q00, annualized, reflect an increase of approximately 64%.
- Licensing our own broker/dealer in 1Q 2001.
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NONINTEREST INCOME - INTERNATIONAL BANKING
COLONIAL BANCGROUP
<TABLE>
<CAPTION>
Noninterest Income - International Banking (in Millions)
--------------------------------------------------------
<S> <C>
1998 $ .4
1999 $1.4
2000 YTD Annualized $2.0
</TABLE>
- Revenue represents letter of credit fees, trade finance fees, bankers
acceptance fees. All fees are related to trade finance.
- These international relationships are also sources of deposits and private
banking services.
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NONINTEREST INCOME - ELECTRONIC BANKING
COLONIAL BANCGROUP
<TABLE>
<CAPTION>
Noninterest Income - Electronic Banking (in Millions)
-----------------------------------------------------
<S> <C>
1998 $3.9
1999 $4.6
2000 YTD Annualized $6.0
</TABLE>
- Revenue sources include checkcard fees, ATM surcharges and internet banking
fees.
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NONINTEREST INCOME - CASH MANAGEMENT
COLONIAL BANCGROUP
<TABLE>
<CAPTION>
Noninterest Income - Cash Management (in Millions)
--------------------------------------------------
<S> <C>
1998 $ .9
1999 $1.5
2000 YTD Annualized $2.4
</TABLE>
- Fees from cash management services include: wholesale and retail lockbox,
sweep accounts, Business Banker Plus (online bank account reporting service)
ACH (automated clearing house services), and controlled disbursement.
- Top of the line products
- Department staffed with experts
- Just beginning to offer products throughout all regions
- Staffing up and hiring a sales force in the bank regions
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COLONIAL BANCGROUP
<TABLE>
<CAPTION>
Noninterest Income - Credit/Merchant Card Services (in Millions)
---------------------------------------------------------------
<S> <C>
1998 $2.0
1999 $2.7
2000 YTD Annualized $3.0
</TABLE>
- Fees derived from agent relationships, Bancgroup does not hold balances.
- Jump started merchant sales.
- Sales rep in every region.
- Customized processing to meet customer needs.
- Merchant card services is also a source of retail deposits.
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WHY US?
- We have one of the strongest loan portfolios in the business.
- We are in some of the highest growth markets in the United States.
- We are providing more services to customers with great results.
- WE HAVE THE BEST PEOPLE.
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WE HAVE THE BEST PEOPLE
COLONIAL BANCGROUP
- Experienced management teams in all geographic markets. We give them the
tools to compete.
- 8% insider ownership closely aligns the interests of the shareholders and
management.
- Have consolidated operations to allow for sales efforts to be focused on
the customer.
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STRATEGIES FOR THE FUTURE
COLONIAL BANCGROUP
- Corporate objectives
- Maintain double digit earnings growth with above average asset
quality
- ROE of 17.5%
- Increase ROA to 1.45%
- Consistently increase dividends
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STRATEGIES FOR THE FUTURE
COLONIAL BANCGROUP
- Acquisitions
- Met goal of establishing a strong banking presence
- Currently very selective to fill in markets at economically
attractive prices
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PLANS FOR NONINTEREST INCOME GROWTH
COLONIAL BANCGROUP
- Continue to increase the penetration of our customer base and our markets with
fee income products:
- Wealth Management Services
- International banking
- Electronic banking
- Cash Management
- Credit/Merchant Card Services
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