Great results don’t just come out of the blue or just happen; great results are the culmination of the hard work of many people. Colonial delivered record earnings in 2005. Our earnings were characterized by strong revenue growth and improved operating leverage anchored by excellent credit quality.

Colonial increased its revenues by 23% in 2005 and has increased revenues each year since 1989. Colonial has not taken big risks with its balance sheet to increase revenues, but instead has methodically grown its balance sheet with primarily floating or adjustable rate loans, maintained a small securities portfolio of only 15% of earning assets at year end, and worked diligently to grow deposits to reduce the Company’s reliance on wholesale borrowings. Our strategies are working. Colonial increased its largest component of revenues, net interest income, by 25% over 2004 and has increased its net interest margin for nine consecutive quarters.

Colonial has also made improvements in fee income generation capabilities. The Company leveraged its mortgage warehouse lending division’s operations by securitizing $1.5 billion of loans which allowed the Company to earn fee income from originating and servicing the loans sold without using the Company’s balance sheet capacity to grow the division. For the year, the mortgage warehouse division generated fees of $16.1 million compared to $1.2 million in 2004.