Alabama National BanCorporation Announces the Public Offering of 850,000 Shares of Common Stock.

BIRMINGHAM, Ala. -- Alabama National BanCorporation (NASDAQ:ALAB) ("ANB") today announced that it has commenced an underwritten pubic offering of 850,000 shares of its common stock at $54.20 per share, and delivery of the shares is expected to take place on July 27, 2004, subject to customary closing conditions. ANB has also granted the underwriters a 30-day option to purchase up to 127,500 additional shares to cover over-allotments, if any.

Keefe, Bruyette & Woods is acting as the sole book-running manager for the offering, and Raymond James & Associates, Inc. is acting as co-manager. The offering is being made pursuant to an effective shelf registration statement filed with the SEC, which was declared effective by the SEC on June 10, 2004.

The common stock offering may be made only by means of a prospectus and related prospectus supplement. Copies of the prospectus supplement and the accompanying prospectus relating to the offering may be obtained from Keefe, Bruyette & Woods at 787 Seventh Avenue 4th Floor, New York, New York 10019 or from Raymond James & Associates, Inc. at 880 Carillon Parkway, St. Petersburg, Florida 33716.

This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or other jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Alabama National BanCorporation common stock is traded on the NASDAQ National Market System under the symbol "ALAB."

ANB is a bank holding company operating 83 banking locations through fourteen bank subsidiaries in Alabama, Florida and Georgia. Alabama subsidiaries include: Birmingham-based National Bank of Commerce (NBC), First American Bank in Decatur/Huntsville, Athens and Auburn/Opelika; First Citizens Bank in Talladega; Bank of Dadeville; Alabama Exchange Bank in Tuskegee and First Gulf Bank in Baldwin County. Florida subsidiaries are: Citizens & Peoples Bank, N.A. in Pensacola; Community Bank of Naples, N.A.; Millennium Bank in Gainesville; Public Bank in metropolitan Orlando; Cypress Bank in Palm Coast; Coquina Bank in Ormond Beach; and Indian River National Bank in Vero Beach. ANB has one subsidiary in Georgia, Georgia State Bank in metropolitan Atlanta. ANB provides full banking services to individuals and businesses. Brokerage services are provided to customers through NBC's wholly owned subsidiary, NBC Securities, Inc. Investments are not bank guaranteed, not FDIC insured and may lose value. Insurance services are provided through ANB Insurance Services, Inc., a wholly owned subsidiary of First American Bank.

This press release contains forward-looking statements as defined by federal securities laws. Statements contained in this press release which are not historical facts are forward-looking statements. Such statements include expectations as to the completion, size and timing of the offering. A number of risks and uncertainties could cause actual events to differ from ANB's expectations indicated by these forward-looking statements. These risks include successful completion of the offering and other risks addressed in ANB's filings with the Securities and Exchange Commission. ANB undertakes no obligation to update these statements following the date of this press release. In addition, ANB, through its senior management, may from time to time make forward-looking public statements concerning the matters described herein. Such forward-looking statements are necessarily estimates reflecting the best judgment of ANB's senior management based upon current information and involve a number of risks and uncertainties. Certain factors which could affect the accuracy of such forward-looking statements are identified in the public filings made by ANB with the Securities and Exchange Commission, and forward-looking statements contained in this press release or in other public statements of ANB or its senior management should be considered in light of those factors. There can be no assurance that such factors or other factors will not affect the accuracy of such forward-looking statements.