EXHIBIT 2
                                 PRESS RELEASE

Colonial Bank member FDIC
PRESS RELEASE

Colonial BancGroup
P.O. Box 1108
Montgomery, AL 36101
FAX (205) 240-5345

For more information contact:
Colonial BancGroup (Montgomery)
Flake Oakley (334) 240-6035
Walter Hargrove (334) 240-5590

Colonial Bank (Orlando)
Charlie Brinkley (407) 481-8833

First Family (Eustis)
David M. Shepherd (352) 357-4171

For immediate release
July 25, 1996

Colonial Bank to Acquire First Family Bank

     MONTGOMERY,  AL -- Colonial BancGroup Chairman, CEO and President Robert E.
Lowder,  along  with  First  Family  Financial  Corporation  Chairman,  CEO  and
President  David M. Shepherd  jointly  announced  today that the companies  have
entered into a definitive agreement to merge First Family Financial  Corporation
into Colonial BancGroup.  First Family Financial Corporation's  subsidiary First
Family Bank, FSB, based in Eustis, Florida will become a wholly-owned subsidiary
of Colonial BancGroup. Colonial will pay $23.50 per share, half in cash and half
in stock, for First Family's outstanding shares, a total value of $12.8 million.
At June 30, 1996, First Family had $155.8 million in assets and had produced net
income of $1.4 million for the year ended June 30, 1996.

     First Family is located in Lake County, Florida, and is part of the Orlando
Metropolitan area, which is considered to be one of the fastest-growing  markets
in the Southeast.  First Family's five offices are located in Eustis,  Leesburg,
Mount Dora, Tavares and Umatilla.  A sixth office is scheduled to open on August
8, 1996 in Lady Lake.

     "This acquisition  represents another step in Colonial's long-term strategy
to realize the benefits inherent in Florida's  high-growth markets. We completed
the  acquisition of the largest  independent  bank in Orlando several weeks ago,
and announced  another  acquisition  in nearby Volusia  County  yesterday.  This
latest move to the  adjacent  markets in Lake  County  will  benefit our Florida
customers  through  expanded  banking  offices  and  our  shareholders   through
in-market  cost  savings.  Colonial  intends to continue to pursue our community
banking approach in other attractive Florida markets," said Mr. Lowder.

     "I am  enthusiastic  about the prospects for our merged  companies.  We are
proud of the services  First Family has provided to our community over the years
and are excited about joining Colonial  BancGroup which has a strong  reputation
for  community  banking.  This  association  with  Colonial will be good for our
shareholders, customers and employees," said Mr. Shepherd.

     Charlie  Brinkley,  Jr.,  President  and CEO of  Colonial  Bank in Florida,
stated,  "We are excited about our pending  acquisition  of First Family.  First
Family has been a good corporate  citizen in the Central  Florida  community for
more than 60 years.  We're looking  forward to becoming  involved in the dynamic
market which First Family operates.  We believe that this  affiliation  combined
with Colonial's  Orlando operations will provide an excellent base from which to
expand our operations in Florida."

     Completion of the transaction is subject to approval by various  regulatory
bodies and First Family's shareholders.

     Colonial  BancGroup  is  a  multi-bank  holding  company  headquartered  in
Montgomery,  Alabama with assets of $4.5 billion and 127 full service offices in
Alabama,  Florida,  Georgia  and  Tennessee.  Colonial is traded on the New York
Stock Exchange  under the symbol CNB. In most  newspapers the stock is listed as
ColBgp.