Colonial BancGroup said Friday that it has reached a definitive agreement to acquire Prime Bank of Central Florida, Titusville, for $18 million.

Colonial will exchange sufficient stock to equal $41.44 per share for Prime Bank's outstanding shares and options. The transaction will be accounted for as a pooling of interests.

Prime Bank has $70.5 million of assets and five offices in Melbourne, Palm Bay, and Titusville, an area known as Florida's Space Coast. Colonial BancGroup, with assets over $8 billion, is based in Montgomery and has 228 offices in Alabama, Florida, Georgia, and Tennessee.

Completion of the transaction is subject to approval by various regulatory agencies and Prime Bank's shareholders.

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