Proven Strategy

Our successful retail expansion strategy has seen Colonial increase its presence in several of the nation’s fastest growing states, including Florida, Georgia, Nevada and Texas. As we move into 2008 and beyond, we will continue mining the opportunities for our company in these areas.

Our trademark is high-touch service delivered through our team of talented, dedicated bankers who know their customers by name and provide the best personal service in the industry. Their goal is to develop long-lasting relationships based on fulfilling all of our customers’ personal and business financial needs. And their success is the catalyst of our consistent increases in deposits and fee income.

A key to identifying emerging issues in our markets is our local board structure — yet another facet of our strategic strength. Our 200 local advisers and directors across the company provide invaluable early recognition of local issues, insight into the timing of market changes, and numerous other benefits. Most banks that grow to our size disband local boards. We continue to recognize the value they bring to our company.

Another key strategy driving our success through the years is our conservative approach to lending, which has been a core value of this company since our founding. We maintain strict underwriting standards even in the best of markets. We react proactively, and ahead of the curve, when signs point to a downturn. Boom and bust markets come and go. Our conservative lending practices are here to stay.

As is our commitment to credit quality. From the beginning, our practice has been to make loans to people we know for needs and business models we understand. We have not strayed from our core business to chase investment or lending fads. Quite the opposite — it is our mission never to sacrifice credit quality in the quest for loan growth. This bedrock commitment will continue to guide us, as it continues to separate us from other banks.