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Executives

Lisa Free – SVP and Director of IR

Bobby Lowder – Chairman, CEO and President

Sarah Moore – Senior EVP and CFO

Kamal Hosein – Treasurer

Analysts

Steve Alexopoulos – JP Morgan

Andrea Jao – Barclays Capital

Christopher Marinac – FIG Partners

Dave Bishop – Stifel Nicolaus

Kevin Fitzsimmons – Sandler O’Neill

Bob Patton – Morgan Keegan

Peyton Green – FTN Midwest Securities

Colonial BancGroup, Inc. (CNB) Q3 2008 Earnings Call October 22, 2008 5:00 PM ET

Operator

Welcome and thank you for standing by. At this time, all participants are in a listen-only mode. After the presentation, we will conduct a question-and-answer session.

(Operator instructions) Today’s conference call is being recorded. If you have any objections, you may disconnect at this time. Now, we’ll turn the meeting over to Lisa Free. Thank you, ma’am, you may begin.

Lisa Free

Thank you. We appreciate you joining us this afternoon for Colonial BancGroup third quarter 2008 results conference call. A report was released this afternoon. You can access the report as well as the slide presentation for this call under the Investor Relations section of our web site, colonialbank.com.

With me today are Colonial BancGroup's CEO, Bobby Lowder; Chief Financial Officer, Sarah Moore; Chief Operating Officer, Patti Hill; and Kamal Hosein, our Treasurer. First the advisory; I will remind you that any forward-looking statements made during this presentation are subject to risk and uncertainty. Further, we have no obligation to update any forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made. If you are interested in factors that do cause our results to differ materially from any forward-looking statements, they are detailed on our web site, in our SEC filings and summarized in our press release from this afternoon. With that, I will turn it over to Mr. Lowder.

Bobby Lowder

Good afternoon. We appreciate you being with us to go over our results.

First of all, we are reporting a net loss of $0.35 a share for the quarter. We have strengthened our loan reserves to 1.88% of net loans. That’s a $38 million increase or a coverage of 131% of our charge-offs compared to 1.60% at 6/30. Our core franchise remains very profitable. Our pretax pre-provision core income was $51 million. Our net interest margin was 2.85% compared with 2.88% in the second quarter.

Our deposit balance has increased 3% annualized over 6/30 and 9% over 9/30/07. We have a very strong liquidity position over $5 billion of excess borrowing capacity. Our capital ratios remain significantly above regulatory “well capitalized” limits at 9/30/08, tier-one risk based capital of 10%, total risk based capital of 14.17%. Our tier-one leverage ratio of 7.29%. Our tangible capital ratio remains strong at 6.43%.

We have suspended our quarterly dividend. This is something the Board of Directors had a long discussion about, but quite frankly when our purpose is to conserve capital and when we’re not earning money we have to cut the dividend or suspend the dividend. We will resume it when we return to profitability. We believe in dividends for our shareholders but now is the time to be conserving our capital and that’s why the Board has made the decision last week to suspend the dividend.

Let’s now jump in to our credit quality. I know everybody wants to talk about that. Before we get in to this, let’s kind of look back at our earnings call on July 16. We talked about our non-performing assets, we were a little over $400 million at that time. Our past year percentages look very good when we took the non-performing out. We said we were establishing the war room in Tampa that was going to have some 41 credits in it with about $340 million in total assets there.

Our objective as we have stated from the first of the year was to be very aggressive in moving problems out of the bank and our objective was to get to the end of this year and say that we have addressed that problems, and that was our objective in the third quarter. As we moved and reestablish this war room and had it up and running by the last week in July, we were very pleased with the people that were in there looking with lot of interest, a lot of people that were talking about putting contracts on properties, a lot of letters of intent and letters of interest signed and confidentiality agreements signed.

We got to September, actually we were in New York on September 8 at the Lehman Brothers Conference and I guess everybody knows what happened in the month of September from that point. I guess the world turned upside down as far as a world financial crisis. When this happened, most of our investors pulled back due to the overall market volatility and the uncertainty about what was going to happen as far as property values, what was going to be government intervention, and so we’re not able to achieve our goal of selling a large number of assets during the quarter.

So, let’s look at what we did do and how that figures in about where we are. We did charge off $121 million in the third quarter. If you take $121 million as a total charge off, $20 million of that was in sales out of the war room. We actually sold some $47 million in assets, took a $20 million charge, so we’ve recovered some $0.57 on the dollar mode [ph]. Those occurred before the slowdown.

Another $63 million of the charge offs were in loans that were in the war room that were being positioned to sell, and we were in anticipation that those third loans would sell. But they did not when people backed out and decided they were going to wait and see what happened. So that left $38 million in charge offs. We did have one $12 million charge off in C&I which was an unusual event that was secured by stock, and so that accounts for that. That shows that our plans really put off for the quarter. We really lost the quarter as far as selling our non-performing assets, so we ended up selling only $47 million. We took charge down of $63 million on loans and that would have been $125 million at $0.50 on the $1 we could have moved out.

And I fully anticipated, we could have sold another $150 million in assets but we were not able to do that because nobody was buying in the month of September, nobody was closing. So our non-performing assets increased by $265 million in the quarter. If we had been able to have moved up to $275 million, we would have met our goal of our non-performing assets having been stable in the third quarter and that was our goal, but we were just not able to do that.

So let’s look at the nonperforming asset increase of $269 million, 59% or $158 million of that was in residential construction, $58 million or 22% was in commercial construction, $42 million or 15% was in our seasoned commercial real estate and $11 million was in other loan types. So you can see that our non-performing asset increase continues to be heavily geared toward residential construction.

We talked about our provisions for net charge offs exceeded what our charge offs were. Our problem credits remain primarily in residential-related construction sector of the portfolio.

If you turn to the next slide and let’s look at our entire loan portfolio in page five now. What we have done here again is what we did last quarter. We had taken out our non-performing assets and we have looked at the rest of the portfolio to see how that’s performing. You see the residential construction is 15.7% of the portfolio at $2.3 billion, that’s a change of $379 million for the quarter. Our past dues at 3.72% is up slightly from last quarter but still in pretty good shape there for that portfolio. Our commercial construction and we have divided up the commercial construction in this quarter, separated it from our season commercial real state. Our commercial construction portfolio at $2.6 billion has got a past due percentage of 2.26%. We’ll talk about all these in detail in just a minute.

Our seasoned commercial real estate portfolio at $4.9 billion, 32.5% of the portfolio is at a respectable 0.90% past dues. Our 1-4 family permanent real estate which is about $1.9 billion of 1-4 mortgages and $600 million of home equity at 2.95% is still performing very well. Our C&I portfolio at $1 billion has got, actually past dues are down in that to 0.81%. We have no past dues in mortgage warehouse lending and our consumer & others at 0.64%. So our total past dues at 1.84% is only up 18 basis points when you take out the non-performings, which is a very good number. And then you can see we have placed our non-performing assets beside those numbers to show that our residential construction is still the area where the large majority of our problems are, 61%.

So let’s look at residential construction. If you look at the next two slides together, you will see first of all that our average loan size in our residential construction portfolio is $556,000. Our weighted average loan-to-value of that portfolio is 75.7%. That’s a repriced [ph] weighted average loan-to-value, so those loan-to-values are still very respectable. We have identified and isolated our problem credits there. We have personal guarantees on approximately 95% of the portfolio.

Texas comprises 20% of the portfolio and continues to perform better than other markets. We only have $560 million of the residential construction portfolio was unfunded. That’s 19% of total commitments, so that’s a low amount. And only 12% of our residential construction and condo loans have interest reserves, and of those loans 25% located in Texas.

And as I’ve said before, our residential construction portfolio declined some $379 million in the third quarter. So our residential construction is still where we are placing most of our emphasis. Our war room now contains some 71 non-performing relationships, totaling $510 million. The good thing about our non-performance, that makes up 75% of our non-performing asset; it’s still contained in a small group of credits. 71 relationships totaling $510 million, 65% of that is in residential construction. So you can see that our problems are still very well contained in small numbers as we’re addressing those and we’re going to be very aggressive this quarter and in the first quarter next year moving these credits out. We feel very good about that. We’ve already regrouped. We’ve already talked to buyers that backed off. Within the month of September, they’re back to the table. We’ve got new people interested, and I feel very confident that moving forward, we will be able to move a large amount of these credits out in the next two quarters.

Let’s look at our commercial construction portfolio that we have separated out from the seasoned commercial real estate portfolio. That portfolio is about 17% of the total portfolio, $2.6 billion. Our average loan-to-value ratio of 66.8% is a very good ratio and the average loan size is $2.1 million. 42% of the portfolio is in Florida and 16% in Texas. You can see these property types there. They’re divided up, our biggest expo is in commercial land, which is where the biggest problems are. Our retail exposure there at $374 million is in very good shape. That retail exposure is mainly in retail outlets like Home Depots, Lowe’s department stores, Publix grocery stores, things of that nature. So that portfolio, we think, will continue to perform better than many people would expect.

The next slide is seasoned commercial real estate portfolio which is 32.6% of our total portfolio or $4.9 billion, right at $5 billion. This portfolio as you see from past dues continues to perform very well at 0.90% past due, 34% of this portfolio is owner occupied. The average loan size is very low at $735,000 and our loan-to-value ratio is a very good 64.4%. So you can see this portfolio is doing very well. One question that was asked last quarter about the portfolio, what is the other? At $749 million, 24% of other is churches and schools which is performing very, very well.

So our seasoned commercial portfolio continues to do very well. So in summary about credit, we are disappointed that we didn’t reach our goal of being aggressive in moving credits out this quarter out of the war room. The event that we could not control caused most of that to happen, but we are encouraged that things have settled down; there is more liquidity in the market. Buyers now realized that they maybe smart to go ahead and make deals on properties now rather than to wait until later. And so, we’re going to be very aggressive in moving them out this quarter and next quarter, and we think about doing that, we can reduce our non-performing assets considerably this year, this quarter, and next quarter.

So with that, I’ll turn the next over to Sarah Moore, our Chief Financial Officer.

Sarah Moore

Thank you, Mr. Lowder.

As Mr. Lowder covered earlier, Colonial’s capital ratios remain solid and are significantly above the well-capitalized minimum, with a tier-one risk based capital ratio of 10% and a total risk based capital ratio of over 14%, which compares very favorably to many of our peers.

On page ten of the slide presentation, compares Colonial capital to the well-capitalized minimum. The analysis shows that the company has significant capital in excess of those minimum. Additionally, at the bottom of the page, there's a summary which compares Colonial’s excess capital plus loan loss reserve to its non-performing assets to its NPAs of still accruing, that were past due 90 days or greater in residential construction loans. You can see that the coverage represented by our excess capital and reserves are very healthy.

Even though Colonial has cushion in its capital ratios, we are interested in the opportunity to obtain capital through the Treasury TARP capital program. The capital available to Colonial is estimated to be a minimum of $190 million and a maximum of $570 million. We are also following the developments relating to the other programs from the Treasury for asset purchases, insurance, and liquidity. We have not yet received enough standup data on any of the programs to make an definitive decision.

As we said in the second quarter earnings call, we have been reducing the risk on our balance sheet of filling loans [ph], charging down loans, and limiting new loan production. We’ve also reduced mortgage warehouse line. Mortgage warehouse assets decrease 6% or $287 million, while loans excluding warehouse were down $373 million or 3% in the quarter.

Overall, the company’s risk-weighted assets decreased just under $600 million. Total assets were up at the end of the quarter as Colonial had cash and dues from [ph] exceeding $1.3 billion at quarter end. That represented an increase of $877 million over the June 30 balances. The many programs designed to add liquidity in the financial systems that the Treasury and the FDIC have announced, coupled with increased FDIC insurance for deposit customers, are all good steps for preserving and enhancing liquidity in the system, but it’s too early to tell what impact all the actions will have. Colonial’s liquidity continues to be strong and is well-managed. Kamal Hosein, our Treasurer, will cover liquidity for us.

Kamal Hosein

As you can see on pages 12 to 13, as Sarah and Mr. Lowder had mentioned, our liquidity position remains very, very strong at September 30. We’re pleased with the growth in deposits over the quarter despite I think as everyone knows, what was tremendous competition especially from larger institutions during the third quarter. As we’ve discussed before, our loan to deposit ratio looks very favorably versus the peer banks. And we don’t have the rollover risk to market debt that many other institutions do as we were never really involved in that kind of funding.

So overall, we’re pleased with our funding position as we move into the fourth quarter.

Sarah Moore

Thanks, Kamal. Next on slide 14 is the roll forward of our net interest income and our net interest margin. We had guided to a margin of 2.90% for the second half of the year, but quite frankly, we had larger reversals of interests on non-accrual loans than we expected, and we also had to write off the interest receivable related to a Lehman flop that we had on our sub-debt. And so, that was the reason we did miss our margin guidance of 2.90%. The significant items impacting net interest income and margin are detailed for you on slide 14, so I won’t go into that in any detail.

And with that, I’ll turn it back over to Mr. Lowder for concluding comments.

Bobby Lowder

All right. Again, we appreciate you all being with us. I would now open it up for questions.

Lisa Free

In order that we may respond to as many individuals as possible, we ask that you limit your questions to a single question with one follow-up. Operator, we are ready for the question-and-answer session to begin.

Question-and-Answer Session

Operator

Thank you, Ma’am. (Operator instructions) And we’ll take our first question from Steve Alexopoulos from JP Morgan.

Steve Alexopoulos – JP Morgan

Hi, everyone.

Bobby Lowder

Hey, Steve.

Steve Alexopoulos – JP Morgan

First, I know at the end of the second quarter, you had $492 million of potential problem loans, I am wondering where that stood at the end of the third quarter here.

Bobby Lowder

We don’t have that final number but that number should be up a little bit.

Steve Alexopoulos – JP Morgan

As a follow-up, (inaudible) the refreshed loan-to-values compared to the marks that you are taking on the war room assets, it seems to be higher than the loan-to-values would imply, and your work pretty aggressively over the next two quarters to move these out of the war room, should we expect pretty sizeable charge-offs tied to that?

Bobby Lowder

Well, we are going to work on a base on $0.50 on $1 being the bottom, Steve. And anything we can get above that is we’re going to consider good. So that is going to be the base.

Operator

And we will take our next question from Andrea Jao with Barclays Capital.

Andrea Jao – Barclays Capital

Good afternoon everyone.

Bobby Lowder

Good afternoon.

Andrea Jao – Barclays Capital

If you will avail of the capital purchase program from the government, do you think there are opportunities right now in this environment that actually lever up the way the government want banks to lend? And if so or if not, do you think a capital infusion would be dilutive?

Sarah Moore

Andrea, the way we are looking at that is that we do think they will opportunities to grow again, particularly in the second half of 2009, but certainly not a lot of opportunities in the near term to lever capital infusions. But I think it is a long-term program, and certainly at the second half of 2009 and into 2010, we do expect there to be significant opportunities to grow the balance sheet once again.

Andrea Jao – Barclays Capital

And my follow-up question is that it seems that balance sheet contraction this quarter was just as tad more than expected. How much more of contraction should we be looking for in the core portfolio, the non-liquidating portfolio, for the remainder of the year?

Sarah Moore

I think that you can use this quarter’s guide, as a guide I think the loans were down $373 million and I think this was $47 million in sales. So if you take that out that, that is probably a decent run rate for loans. Warehouse assets, we were able to achieve a reduction sooner than we thought. We actually almost achieved on – we had talked about being down about $400 million in six months and we are actually down $300 million in three. So I don’t think there is a lot more room there, Andrea. So I think we’re about three quarters of the way down on warehouse between now and the end of the year.

Operator

And we will take our next question from Christopher Marinac with FIG Partners.

Christopher Marinac – FIG Partners

Thanks, good afternoon. Bobby, I just want you go through more color on terms of what happened in September that led to sales not happening, was there anything issuing with buyers not closing because of performance issues with you or was it simply just the market that caused things to fall out?

Bobby Lowder

It was just – if you just go back and review the month of September, I think everybody would agree it was just an unbelievable month and there was just chaos out there and everybody pretty well said – that had not committed totally to close the sale, everybody say, “At this point in time, we’re just not going to commit more capital right now on anything,” and it just stopped. It just stopped dead on its track.

Christopher Marinac – FIG Partners

Has there been any developments the last week or two that gives you confidence that things are back on track?

Bobby Lowder

Yes. They’re back. They’re coming back. In fact, we’ve had two groups in here in the last two weeks, new groups that seemed very enthusiastic about looking at what we have. And so, they’ve come back. It’s just – September was just a month of a lot of questions. I mean, what’s going to happen? Who’s going to be surviving? What is the government going to do? What is this government program going to do? I mean, there were just too many questions out there and people were just not going to close on the loans.

Christopher Marinac – FIG Partners

It is your goal for NPAs at the year end, should we use the same goal that you had last quarter – can I keep things flat with June, is that a realistic goal for now?

Bobby Lowder

Well, we’re going to be as aggressive as we can possibly be this quarter getting things moved out. It will probably spill over into the next quarter. I know sometimes builders and developers and people are reluctant to close things the closer it gets to the end of the year. So we’re going to be as aggressive as we can and we think that we can move out a large number this quarter and next quarter.

Operator

And moving on to Dave Bishop with Stifel Nicolaus.

Dave Bishop – Stifel Nicolaus

Hey Bobby, real quick, would you mind just reviewing what’s in the war room currently in terms of composition and make up?

Bobby Lowder

Sure. It’s 71 non-performing relationships totaling $510 million and that compiles 75% of the total non-performing assets, 65% is in residential construction, 28% is in commercial construction. That’s 93% and the rest of it is just spotted boast up [ph]. So it’s primarily – by far the biggest majority is residential construction and then some commercial construction.

Dave Bishop – Stifel Nicolaus

In terms of the new inflow, could you review that again in terms of the new inflow and 10-Ks?

Bobby Lowder

Sure. $158 million of the $269 million was in residential construction, that was 59%. $58 million or 22% was in commercial construction. 65% of that $58 million was in two commercial deals. $42 million or 15% was in our seasoned commercial real estate. 79% of that was full credits. And $11 million or 4% was in other loan types. So that's made up the $269 million that went out to NPAs.

Operator

(Operator instructions) And we’ll take our last question from Kevin Fitzsimmons with Sandler O’Neill.

Kevin Fitzsimmons – Sandler O’Neill

Bobby, you guys mentioned TARP program and you mentioned that you’ve had interest in it. Can you give us some sense of what you’re hearing based on conversations with the regulators or other parties about how that process is going to work, specifically the approval on – banks know if they are eligible, it's in their interest the look and apply. But is there any kind – are you getting any sense from conversations on where that line in the sand is going to be drawn and who automatically gets what they ask for and who’s going to be under further scrutiny. Thanks.

Sarah Moore

Thank you Kevin. It is really too early to tell on those programs and we have expressed interest and we’re learning information. There is a great deal of additional information that Treasury said they would post out on their Web site on Monday when Paulson was speaking. That information has not been posted yet. That goes into more detail about the program. And until we are able to get those documents and really go through all that information, it’s too early to tell.

Kevin Fitzsimmons – Sandler O’Neill

Okay. Thanks Sarah. And Bobby, can you just mention how you feel now versus maybe a quarter or two about the seasoned commercial real estate portfolio, that's something people are talking more about? Are you seeing anything systemic there that makes you worry more about it today versus a quarter or so ago?

Bobby Lowder

Kevin, we’re watching that very closely of course but quite frankly, past dues at 0.90%, less than 1%, that is a mighty good percentage and NPAs are very low and that’s confined to, as I said, two credits really. And so, we’re just not seeing – that is a low loan dollar amount per loan of some $700,000, so that’s very low, and a high percentage of owner occupied which means you've got the people got skin in the game. They’re right there occupying what their property is and it’s very diverse. I would encourage you to look. We’ve got some new charts that I think you might like. At the back of our presentation in the supplementary, you’ve got two charts. One shows the – on page 32, one shows the diversified seasoned commercial real estate portfolio in dollar amounts across the top is broken down by all the markets that we’re in. And then down the side, it shows all the different types and I think that’s a very informative sheet. It shows that we’re very diverse by location and by property type.

And then the next page is again diversified commercial real estate and construction loan portfolio and it’s by dollar amounts, and I think that would be very helpful showing you how diverse we really are as far as property type and location. But in summary, we feel very good about the seasoned commercial real estate.

Kevin Fitzsimmons – Sandler O’Neill

Okay great. And lastly Bobby, with the acquisition of Wachovia about to go through, Colonial has been a beneficiary of a lot of end-market acquisitions. This one obviously is huge scale. Is this something that is potentially a big opportunity for you all in terms of deposits and employees or is it something that just will play out much longer term?

Bobby Lowder

Well, it is an opportunity in all those ways. We have got a new CEO for lending on the West Coast that was one of Wachovia’s presidents. He has already joined us and is on board. And we decided to have him join us, he is an outstanding banker. Other employees have joined us. We have some real opportunities for relationships to pick up there. So yes, that will be opportunities we’d certainly be taking advantage of.

Kevin Fitzsimmons – Sandler O’Neill

Okay great, thank you very much.

Operator

And we will take our next question from Bob Patton with Morgan Keegan.

Bob Patton – Morgan Keegan

Hi Bobby. Hi Sarah.

Bobby Lowder

Hi.

Sarah Moore

Hi.

Bob Patton – Morgan Keegan

I guess just looking at core operations, we’re shrinking the balance sheet. Can you give us a feel for how you guys are handling renewals and how you guys, I mean, generally the banks are hoarding capital and trying to shrink the balance sheet, you guys are trying to conserve capital too, how are you handling the renewal process? What kind of spread are you getting? And then comment on just general cooperation. Fees look kind of flattish, expense is up a little, for all the reasons that we know, but how should we think about going forward in the next couple of quarters?

Sarah Moore

Bob, let me have the other items of the income statement that we didn’t talk about. Core net interest income was flat. It was down a little bit. That was primarily because of lack of sales from our wealth management unit. We just really didn’t have any security sales for the month of September. We also had some general account boley [ph] and we had a decrease in the crediting rate, but only because the investments of the insurance companies aren't less than in the prior quarter. We also had loss of securities and derivatives that was primarily a $4.9 million loss in Wachovia stock that we had acquired in the acquisition. We sold that stock and we also wrote off the balance of our derivatives at Lehman of $658,000 and $200,000 on Fannie and Freddie securities that we wrote off.

Expenses were up a little bit. We provided, we added some reserves, we have, as you may recall, some real estate joint venture investments at our holding company. Those balances are down to about $25 million in equity investments, but we did feel like we need to put the reserve up on a couple of properties that were in some hard hit areas of the West Coast of Florida, so we recorded additional reserve of about $3 million in the quarter. There was also one additional working day for salaries and benefits in the quarter and that accounted for the increase. Without – on a normalized, without those two items, this actually would have been down a little bit in the quarter.

Bob Patton – Morgan Keegan

Okay.

Bobby Lowder

As for as loan renewals, we are not trying to run anybody off. We are just trying to keep our good customers. And so, my instructions to our lenders out there is build a fence around your customer and don't let anybody take them away from you. We do get a lot of loan request from other places, people trying to leave banks and come to us but we’ve been very careful of course in this environment of who we’re lending to. We are finding spreads are better because a lot of banks just not loaning anybody – any money to anybody for anything. But we are still making loans, it is just not enough to make up for the run off and what’s paying down.

Bob Patton – Morgan Keegan

Okay, thanks Bobby.

Operator

And moving on to Peyton Green with FTN Midwest Securities.

Peyton Green – FTN Midwest Securities

Hi, good afternoon. I was just wondering if you could comment a little bit on what your economic outlook is in the markets that you are in and how much, I guess, the change in the last three months seems to be quite a good bit worse than what happened in the three months before. And thinking back to the last cycle back in the late 80s, early 90s, if you could comment on how Colonial is better positioned to make it through. Thank you.

Bobby Lowder

Sure. Texas continues to perform very well. We've got very few problems there. Loan growth is still pretty good there. So Texas is performing very well. Alabama is okay. The employment rate in the state and in most of the growth areas is still well below national averages. We are seeing some cutback as far as real estate and construction in the state of Alabama. But generally the economy in Alabama is still okay. Parts of Florida are beginning, I think, to see bottoms. I think in many areas, real estate prices as far as residential real estate has bottomed.

Really the best thing that is going to happen to Colonial is some sort of measure to come out of Congress to get the economy going as far as housing. There’s got to be some sort of means to encourage people to buy the inventory of housing that is out there and to get the inventory down. Once you get the inventory of housing down there and people are encourage to buy houses again, then new construction will start again. And I’m not talking about crazy mortgages, I’m just talking about making credit available to good people who for whatever reason are afraid to buy a house now. They may think prices are still coming down or they may think mortgage rates are coming down, or they just can’t simply get a mortgage. So the best thing that can happen to Colonial is for the new Congress and the new President, whoever that is, to come in and come forth with some sort of housing incentives to get people to buying homes again.

Peyton Green – FTN Midwest Securities

Okay, thank you.

Operator

And there are no further questions at this time.

Bobby Lowder

Well again, we thank you for your participation. Thanks for being with us. Have a good afternoon.

Operator

And again, ladies and gentleman, that does conclude today’s conference. Thank you for your participation and have a wonderful day.

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Source: Colonial BancGroup, Inc. Q3 2008 Earnings Call Transcript
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