Ala.'s Colonial Paying $28.5M for CNB

Montgomery, Ala.-based Colonial BancGroup said Friday it had agreed to buy CNB Holding Co., Daytona Beach, Fla., for $28.5 million in stock.

CNB has $83.3 million of assets and four branches in Greater Daytona Beach that operate as Commercial National Bank.

Robert E. Lowder, Colonial's chairman and chief executive officer, said the branches were "a natural fit" for Colonial's operations in Central Florida, where Colonial has 33 branches.

Commercial National Bank "presents an opportunity to expand services and lending potential to more customers in Volusia County," Mr. Lowder said.

Colonial agreed to pay the equivalent of $191.40 for each CNB outstanding share.

The transaction would be accounted for as a pooling of interests and is expected to close in July.

Colonial has another pending acquisition, of Las Vegas-based Commercial Bank of Nevada, with $120 million of assets. That deal is expected to close in the second or third quarter.

With assets of $7.6 billion, Colonial has 228 branches in Alabama, Florida, Georgia, and Tennessee.