Colonial Bank acquires three institutions.

MONTGOMERY, Ala.--(BUSINESS WIRE)--July 9, 1996--Colonial BancGroup (NYSE:CNB) Chairman, CEO and President Robert E. Lowder announced today that Colonial has completed its mergers with three institutions that increases its total assets to over $4.5 billion.

Southern Bank of Central Florida, Commercial Bank of Georgia, Dothan Federal Savings Bank and Colonial BancGroup have combined their community banking strengths and markets in Orlando, Fla., Atlanta, and Dothan, Ala.

Southern Bank, with $232 million in assets, the largest independent bank in the rapidly-growing three-county Central Florida market, serves communities in the Orlando, Altamonte Springs, Casselberry, Kissimmee, Lake Mary, Longwood and Winter Park areas. From this Orlando foundation, Colonial is working to enter additional Florida markets.

Commercial Bank of Georgia, with $232 million in assets, adds seven locations to Colonial's existing three locations in the Greater Northern Atlanta area. The combination of Commercial and Colonial gives Colonial a strong base in Atlanta with $464 million is assets.

The merger of Dothan Federal brings Colonial into the hub of Alabama's Wiregrass area and consolidates Colonial's recent additions in this Alabama market.

"We have worked hard to complete the mergers of these institutions in order to expand our community banking management approach to the higher growth markets in the southeast. Together these acquisitions add $510 million in assets to Colonial BancGroup and establish a solid base to build on in these markets," said Lowder.

Colonial BancGroup is a multi-bank, holding company headquartered in Montgomery, Ala. with 126 full service offices in Alabama, Florida, Georgia and Tennessee. It 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

Flake Oakley, 334/240-6035

Walter Hargrove, 334/240-5590