Colonial Bank Completes Acquisition in Dallas.

Business Editors

MONTGOMERY, Ala.--(BUSINESS WIRE)--April 1, 2002

Colonial BancGroup (NYSE:CNB) Chairman and CEO Robert E. Lowder along with First Mercantile Bank CEO Roy J. Salley jointly announced that the companies have completed the merger of First Mercantile Bank, N.A., headquartered in Dallas, into Colonial Bank. Roy Salley will be the CEO of the combined banks with eight banking offices and $682 million in assets forming Colonial Bank's Texas Region.

"We are pleased to have First Mercantile join Colonial Bank," said Mr. Lowder. "Roy and his management team, including the First Mercantile directors, make an excellent addition to our existing franchise. Our combined management group gives Colonial the basis for accelerating growth in our Texas Region."

"We could not be more pleased with our new association with Colonial Bank," said Mr. Salley. "We are impressed by their management, their products, and their overall banking philosophy. This looks like a perfect fit for First Mercantile Bank and its customers."

Colonial BancGroup is a multi-state bank holding company headquartered in Montgomery, Alabama with assets of $13 billion operating 263 offices in Alabama, Florida, Georgia, Nevada, Tennessee and Texas. It is traded on the New York Stock Exchange under the symbol CNB. In most newspapers its stock is listed as ColBgp.