Over the last 10 years Colonial has deliberately increased its presence in states with growth patterns that are more robust than our home state of Alabama. We have executed this strategy with considerable success in Nevada, Texas, Georgia, and particularly, Florida.

In 2005 we continued to advance our strategy of optimizing our branch network and redeploying our corporate resources to maximize our growth opportunities and shareholder value. Colonial added 42 locations to its high growth franchise in 2005. We completed the two largest acquisitions in our Company’s history. In the first half of the year, we completed the acquisitions of First Federal Bank of Lake County and Union Bank of Florida. The FFLC acquisition secured our fourth place market share position in the Orlando MSA. The locations gained through the Union Bank acquisition, which were mostly in Broward County, were a tremendous addition to our footprint in that county as it is the second-most populated county in Florida. The Company opened a total of nine new branches – five in Florida, two in Texas and one each in Georgia and Nevada. We completed the divestiture of 20 locations in slow growth markets of Northwest Alabama and southern Tennessee. Colonial ended the year with 301 branches and with 160 locations in Florida. Not only are our Florida branches the greater part of our franchise now, but they are located in Florida’s wealthiest areas. Our Florida branches are located in areas that have 83% of that state’s total deposits.