Colonial Bank to acquire Tomoka State Bank of Ormond Beach, Fla.MONTGOMERY, Ala.--(BUSINESS WIRE)--July 23, 1996--Colonial BancGroup Chairman, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. and President Robert E. Lowder, along with Tomoka Bancorp, Inc. President and CEO Thomas H. Dargan, Jr., jointly announced today that the companies have entered into a definitive agreement to merge Tomoka Bancorp into Colonial. Tomoka Bancorp's subsidiary Tomoka State Bank, based in Ormond Beach Ormond Beach, resort and residential city (1990 pop. 29,721), Volusia co., NE Fla., on Halifax River (a lagoon) and the Atlantic Ocean; inc. 1880. It was founded (1873) as a health resort and was the winter home of several famous people, including John D. , Fla., will be merged into BancGroup's Florida subsidiary, 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. , headquartered in Orlando. Colonial will exchange sufficient stock to equal $32.00 per share for Tomoka's outstanding shares, a total value of $13.1 million. In addition, Colonial will assume Tomoka options based on a price of $32.00 per share. The transaction will be accounted for as a pooling of interests Pooling of Interests An accounting method, used in mergers and acquisitions, where the balance sheet items of the two companies are simply added together. Notes: The opposite of pooling of interests is the purchase acquisition method. . At June 30, 1996 Tomoka had $72.9 million in assets, $5.9 million in capital, and reported net income of $485,000 for the six months ended June 30, 1996. Tomoka currently has four offices located in Ormond Beach, New Smyrna Beach New Smyrna Beach (smûr`nə), city (1990 pop. 16,543), Volusia co., NE Fla., on Indian River (a lagoon; part of the Intracoastal Waterway) and on Ponce de Leon Inlet of the Atlantic Ocean; inc. 1903. , Pierson and Port Orange, Fla. "I am very pleased to have an agreement with such a fine institution. This combination furthers Colonial's long-term strategy to create a significant banking institution in attractive Florida markets. We view Central Florida
Central Florida is the central region of the United States state of Florida, on the East Coast. as a key component in this strategy, and are especially impressed with Volusia County's growth opportunities," said Lowder. "We are excited by this opportunity to help Colonial BancGroup achieve its growth and service development plans in Florida. We believe Colonial's community banking approach closely mirrors the philosophy that has guided Tomoka's growth over its six year history, and it is the approach that best serves our customers, stockholders and employees," said Tom Dargan, President and CEO of Tomoka. Charlie Brinkley, President and CEO of Colonial Bank in Fla. said, "We have been very impressed with Tomoka State Bank and the accomplishments of its management and staff over the last few years. Together we can maintain their fast-paced trend and help them to become a more competitive force with the strength of our combined institutions." Completion of the transaction is subject to approval by various regulatory bodies and Tomoka's shareholders. Colonial BancGroup is a multi-bank holding company headquartered in Montgomery, Ala. with assets of $4.5 billion and 127 full service offices in Ala., Fla., Ga. and Tenn. It is traded 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. under the symbol 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) . In most newspapers the stock is listed as ColBgp. CONTACT: Colonial BancGroup, Montgomery Flake Oakley, 334/240-6035 Walter Hargrove, 334/240-5590 or Colonial Bank, Orlando Charlie Brinkley, 407/481-8833 or Tomoka, Ormond Beach Thomas H. Dargan, Jr., 904/672-5100 |
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