Colonial profit drops on aggressive loan workouts - Tampa Bay Business Journal:

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million, or 35 cents a share, for the third quartee of 2008, compared to net income of $69.34 million, or 45 cents a share, for the thirdc quarter of 2007. For the nine months ended Sept. 30, Coloniap has a net loss of $55.4 or 30 cents a share, compare d to net income of $172 or $1.11 a in the year-ago period. The company has been aggressivw throughout 2008 in identifyingproblenm loans, taking losses where necessary and placintg loans on nonaccrual status, Robert Lowder, chief executive and president, said in a release. At the same Colonial has increased its capitalp and loanloss reserve, he said.
To preserve Colonial is suspending itsdividend temporarily, a move that will save abou t $77 million a year in commohn equity, Lowder said. He also said Colonial is activelg examining opportunities to participate in new financia l institution programs offered bythe U.S. Treasury. Colonial charged-oft $121 million in the third The company’s provision for loan lossea was $159 million in the quarter. The problem assets were primarily isolated to the residential constructio portfolio and concentrated inFlorida markets, he said. Colonial BancGroup (NYSE: CNG), based in Montgomery, has $26 billion in assets. In the Tampa Bay area, had 50 $2.8 billion in deposits and a 3.
59 percent depositf market share onJune 30, according to the most recent information available from the