Colonial BancGroup and Interwest Bancorp have agreed to merge, the companies announced Wednesday.
The deal, a pooling of interests, calls for Colonial to exchange 0.2357 shares of its stock for each outstanding share of Interwest stock. Interwest Bank is expected to be merged into Colonial Bank and would increase Colonial's assets in Nevada to $247.5 million. Interwest Mortgage would become a subsidiary of Colonial Mortgage Co., a wholly owned subsidiary of Colonial BancGroup.
Interwest, Reno, Nev., has assets of $116.2 million. Interwest Mortgage originated $67.2 million in loans in the first quarter and services about $82 million in loans.
Colonial, with assets of about $8.5 billion, operates 227 offices in Alabama, Florida, Georgia, Tennessee, and Nevada.