Use of Proceeds
Colonial Capital Trust IV will use the proceeds of the issuance and sale of the
trust securities to acquire junior subordinated debentures from Colonial
BancGroup. Colonial BancGroup intends to use the net proceeds from the sale of
the junior subordinated debentures, which are estimated to be $96,532,110,
after payment by Colonial BancGroup of the underwriting commissions and
expenses relating to the offering, for general corporate purposes, including
the possible financing of one or more future business acquisitions.