Colonial BancGroup has record earnings

The Colonial BancGroup, Inc., with 12 offices in greater Fort Myers, announced that the Company's earnings for the quarter ended September 30 were a record $0.45 per diluted share. Net income for the quarter was a record $69 million compared to $66 million for the second quarter of 2007.

Colonial's net interest income for the quarter increased 3 percent over the second quarter of 2007. The increase in net interest income was attributable to a 12 percent annualized increase in the Company's average earning assets and improved funding costs as a result of net interest income management Strategies undertaken throughout the first nine months of 2007. The net interest margin was 3.65 percent for the quarter compared to 3.66 percent for the second quarter of 2007.

"While there have been significant liquidity issues in the industry, fortunately Colonial's liquidity position remains strong. Due to our high quality assets, solid core deposit base and diverse wholesale funding sources, we have not experienced funding challenges," said CEO and President, Robert E. Lowder.

Total deposits at September 30 were $16.9 billion, down slightly from $17.1 billion at June 30; however, period-end nontime deposits grew $104 million, or 4 percent annualized, from June 30.