Colonial BancGroup
June 13, 2025 - 7:14 pm
Business Profile
The Colonial BancGroup, Inc. is a financial holding company incorporated in 1974 under the laws of Delaware. The Company has approximately 321 banking branches in Alabama (90 branches), Florida (182 branches), Georgia (19 branches), Texas (15 branches) and Nevada (15 branches). The Company’s common stock is listed on the New York Stock Exchange (NYSE) under the ticker CNB. The Company is headquartered in Montgomery, Alabama.
The Company was originally formed as Southland Bancorporation and subsequently changed its name to The Colonial BancGroup, Inc. in 1981. The Company consolidated its various subsidiaries into Colonial Bank in 1997. The Company operates through its principal subsidiary, Colonial Bank. The primary activity of Colonial BancGroup is to coordinate and supervise the operations of its subsidiaries and equip them with required services and capital. The Company derives most of its income in the form of dividends from the Colonial Bank. As of December 31, 2006, the Company and its subsidiaries employed more than 4,700 people.
Over the year, the Company has grown internally as well as through acquisitions. In January, 2007, the Company announced acquisition of Miami based Commercial Bankshares, Inc. and its subsidiary Commercial Bank of Florida. The Company has recently acquired Citrus & Chemical Bancorporation, Inc in a transaction valued at $219 million through 50% cash and 50% stock issuance. Citrus & Chemical Bancorporation is based in Lakeland and has $876 million in assets, $727 million in deposits and $514 million in net loans. It operates through 10 branches in Tampa and Orlando. The Company acquired two banks in 2005 - Union Bank of Florida, and FFLC Bancorp, Inc. and its subsidiary, First Federal Savings Bank of Lake County. The Company has also sold its stake in Goldleaf Technologies in January 2007.
In the last decade, the bank has expanded from its operational base in Alabama by increasing its operations in US states with strong growth patterns to include Georgia, Florida, Texas and Nevada. In August 2003, Colonial Bank got converted into a national association.
Colonial Bank offers a wide range commercial and retail banking services and products including savings and checking accounts, commercial and personal loans, and wealth management services such as brokerage, insurance and private banking. The bank also offers additional products and services including credit card, online banking, treasury management and merchant services. The bank’s wealth management operations are carried through Colonial Investment Services of Georgia, Florida, Tennessee and Nevada.
Colonial Bank’s assets have grown at a CAGR of 21.8% to $23 billion in 2006 from $166 million in 1981. Its total assets increased 6.3% from $21.3 billion in 2005. Colonial Bank’s total net loans increased 4.0% to $15.5 billion in 2006 from $14.9 billion in 2005. The bank’s average deposits grew 13% to $15.8 billion in 2006 from $14.0 billion in 2005. As of December 31, 2006, Colonial Bank accounted for 99.7% of Colonial BancGroup’s total consolidated assets.
Colonial’s net income increased 16% to $266 million in 2006 over 2005. The bank’s net interest income grew 6% primarily owing to 12% growth in average loans. However, the bank’s net interest margin declined to 3.71% in 2006 from 3.75% in 2005 primarily owing to increased funding costs and customer shift towards lower costs products. The bank’s non interest income increased *% in 2006 over 2005 driven by increased retail banking and martgage warehouse fees.
Colonial BancGroup also offers investment advice, and discount and full service brokerage services through its subsidiary, Colonial Brokerage, which is a member of the National Association of Securities Dealers.
Colonial BancGroup organizes itself into six business segments comprising five regional bank businesses located in Alabama, Florida, Nevada, Texas and Georgia, and the mortgage warehouse business headquartered in Florida.
Each regional bank business segment provides full service branch offices and offers retail and commercial lending in the respective geographies. The bank branches offer a comprehensive range of traditional banking services including mortgage banking and financial planning.
The mortgage warehouse business segment offers lines of credit against residential mortgage loans and other services as collateral to mortgage origination companies. The segment has its headquarters in Orlando, Florida and provides funding to the mortgage originating companies.
The bank focuses on building local relationships with support from centralized operations. The Colonial BancGroup concentrates on building high growth markets in Nevada, Florida, Georgia and Texas
