Filed by: The Colonial BancGroup, Inc.
                                                            Pursuant to Rule 425
                                                under the Securities Act of 1933

     On November 30, 2001, The Colonial BancGroup, Inc. issued the following
press release:

For more information contact:
Colonial BancGroup
Flake Oakley (334) 240-5061

                          COLONIAL BANCGROUP ANNOUNCES
                             ACQUISITION IN DALLAS

     MONTGOMERY, AL - Colonial BancGroup Chairman and CEO Robert E. Lowder
     announced today that it has entered into a definitive agreement to merge
     First Mercantile Bank, N.A., headquartered in Dallas, into Colonial Bank.
     First Mercantile will become a part of Colonial's Texas Region also
     headquartered in Dallas. The transaction will be a stock for stock exchange
     at a fixed exchange ratio of 3.49 shares of Colonial stock for each share
     of First Mercantile stock, subject to certain market pricing of Colonial's
     stock, resulting in a total value of approximately $67 million and will be
     accounted for as a "purchase" transaction. As of October 31, 2001, First
     Mercantile had $349.5 million in assets and operated four offices in Dallas
     and one in Austin.

          Colonial is pleased to be expanding its presence in the high growth
     area of Dallas. The Dallas/Forth-Worth area had the third largest
     population increase nationally during the 1990-2000 decade, adding more
     than 849,000 residents and is expected to lead the nation in both
     employment and population growth through at least 2005. This merger will
     also initiate Colonial's entry into the Texas capital of Austin bringing
     Colonial's franchise in the state to over $600 million in assets with eight
     banking offices.

          "We are excited about this new opportunity," said Mr. Lowder. "We are
     pleased that First Mercantile Chief Executive Officer, Roy Salley, will
     join our management team and serve as CEO of Colonial's Texas Region. The
     First Mercantile board of directors will also be combined with our existing
     Dallas Region Board. The First Mercantile is a bank with a strong
     management team with many years of experience in the Dallas and Austin
     markets."

          "This transaction presents a great opportunity for First Mercantile's
     employees, customers and shareholders to align ourselves with a bank that
     believes in the same service principles that we have had since our
     inception," said Mr. Salley. "With the financial strength of Colonial Bank
     we can be a real force in the Dallas and Texas banking community."

          Completion of the transaction with First Mercantile is subject to
     approval by various regulatory agencies and First Mercantile shareholders.
     SAMCO Capital markets based in Dallas served as Financial advisor to First
     Mercantile.

          Colonial BancGroup is a multi-state bank holding company headquartered
     in Montgomery, Alabama with assets of $13 billion operating 259 offices in
     Alabama, Florida, Georgia, Tennessee and Texas. It is traded on the New
     York Stock Exchange under the symbol CNB. In most newspapers the stock is
     listed as ColBgp.

In connection with the proposed merger of Mercantile Bancorp, Inc. into The
Colonial BancGroup, Inc., Colonial will file a registration statement on Form
S-4 with the Securities and Exchange Commission. Colonial urges all shareholders
of Mercantile Bancorp to read the registration statement, including the final
proxy statement-prospectus that will be a part of the registration statement,
because it will contain important information about the proposed merger. After
the registration statement is filed with the SEC, it will be available for free,
both at the SEC's web site at www.sec.gov and from Mercantile Bancorp's and
Colonial's respective corporate secretaries.