Colonial BancGroup announces the purchase of Colonial Mortgage Company and the reclassification into one class of common stock.MONTGOMERY, Ala ALA aminolevulinic acid. Ala alanine. ala (a´lah) pl. a´lae [L.] a winglike process. .--(BUSINESS WIRE)--Feb. 21, 1995--Robert E. Lowder, Chairman of the Board and Chief Executive Officer of The Colonial BancGroup, Inc., announced today the completion of the purchase of Colonial Mortgage Company and the reclassification Reclassification The process of changing the class of mutual funds once certain requirements have been met. These requirements are generally placed on load mutual funds. Reclassification is not considered to be a taxable event. of BancGroup's Class A and Class B Common Stock into one class of common stock. The Colonial Mortgage Company acquisition was completed under the terms previously announced and the company is now operating as a subsidiary of Colonial Bank Colonial Bank, a subsidiary of Colonial Bancgroup Inc. NYSE: CNB, is headquartered in Montgomery, Alabama. Colonial Bank has 300 branches in the states of Alabama, Georgia, Florida, Nevada and Texas. Its common stock is traded on the NYSE under the symbol CNB. . Colonial Mortgage originates loans in 22 states and is currently servicing $6.4 billion of residential loans and expects to be servicing $7.2 billion by the end of April. Lowder commented "We expect Colonial Mortgage to more than double our noninterest revenue. In fact, this acquisition will result in approximately 30% of our annual revenues coming from noninterest sources." Lowder continued, "The resources of Colonial Mortgage significantly enhance the banking products we can offer our customers. Colonial Mortgage operates as one of the most efficient mortgage banks in the country, and these efficiencies will benefit our customers in all of our market areas. Similarly, the resources and products of Colonial Bank will be available to the 83,000 customers of Colonial Mortgage. All in all, this acquisition represents the fulfillment of several long term goals, and greatly strengthens Colonial's ability to compete in the new banking environment. This additional strength benefits our customers and shareholders alike." The reclassification of BancGroup's Class A and Class B Common Stock into one class of common stock was also completed effective today. Under the new classification, each shareholder is vested with the authority of one vote per share on all shareholder matters including the election of all directors of BancGroup. Lowder stated "This reclassification clears the way for BancGroup's stock to be listed on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. . We expect this listing to occur on Friday, February 24th with a new stock symbol of CNB CNB Czech National Bank CNB Centro Nacional de Biotecnologia CNB City National Bank CNB Citizens National Bank CNB Croatian National Bank CNB Chloronitrobenzene CNB Corresponsales No Bancarios (Spanish, Colombia) . Having one class of stock that is traded on the NYSE NYSE See: New York Stock Exchange should prove to be a meaningful benefit for our current and future shareholders." Colonial BancGroup now employs 1,720, and is currently traded on the NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on exchange under the symbol CLBGA. Colonial Bank operates 95 full service banking offices in Alabama and southern Tennessee, and Colonial Mortgage operates 21 wholesale and retail offices in 11 states. CONTACT: Colonial BancGroup, Inc., Montgomery Alan T. Romanchuck, 334/240-5019 W. Flake flake an epidermal scale. flake Cocaine, see there Oakley, 334/240-6035 |
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