MONTGOMERY, Ala. -- Colonial Bancgroup said it agreed to acquire Brundidge Banking Co. and merge it into Colonial Bank.

Brundidge, based in Pike County, Ala., has $56 million of assets and two full-service locations operating as Brundidge Banking Co. and Community Bank of Troy.

Colonial, a $2.5 billion-asset company with units in Alabama and Tennessee, signed two letters of intent: one with Community Investment Inc., which along with its shareholders owns 53% of Brundidge's outstanding shares; and one to acquire the other 47% of the stock.

The indicated exchange value is $6.3 million in Colonial class A common shares.

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