A method for image processing acquires a digital image as a collection of image pixel data and identifies the acquired digital image as a faded image. One or more statistical values is calculated to characterize the distribution of digital image values over a range for a first color channel. The range of values for each of the color channels is expanded. At least first and second non-overlapping sub-ranges of the expanded range of values are identified for each of the color channels, wherein a boundary between the sub-ranges is defined according to the calculated statistical value for the first color channel. The first sub-range is expanded and the second sub-range for each of the color channels compressed to form a color balanced image that is displayed.