Colonial BancGroup declares dividend payment and common stock split.

MONTGOMERY, Ala.--(BUSINESS WIRE)--Jan. 15, 1997--Colonial BancGroup (NYSE:CNB) Chairman, CEO and President Robert E. Lowder announced today an increase in the company's dividend rate to be followed by a stock split.

Lowder said that the company's Board of Directors has declared a regular quarterly dividend, and for the seventh consecutive year had increased the dividend over the previous year. The new quarterly dividend will be $.30 per share of Colonial BancGroup common stock, an 11% increase over the previous rate. At the quarterly meeting today, the Board of Directors approved payment of the dividend on Feb. 11, 1997 to shareholders of record as of Feb. 4, 1997.

Lowder also announced that the Board has declared a two for one split of the company's common stock, in the form of a 100 percent stock dividend. As a result of the stock split, shareholders will receive one additional share of Colonial common stock for every one share they hold as of the Feb. 4, 1997 record date. The additional shares will be issued on Feb. 11, 1997, following payment of the cash dividend.

Colonial BancGroup currently operates 153 full service offices in Alabama, Florida, Georgia and Tennessee and is traded on the New York Stock Exchange under the symbol CNB. In most newspapers the stock is listed as ColBgp.

CONTACT: Colonial BancGroup, Montgomery

W. Flake Oakley, 334/240-6035

Cindy Clark, 334/240-5584