COLONIAL BANCGROUP <CLBGA> BUYS FARMERS Colonial BancGroup said it acquired Farmers and Merchants Bank, a Baldwin County bank with assets of 103 mln dlrs, through an exchange of stock valued at about 12 mln dlrs. Colonial said it also signed letters of intent to acquire First Federal Bank in Opelika, Athens-Limestone Bank in Athens, Jackson County Bank in Scottsboro and Commercial National Bank in Demopolis, with aggregate assets totaling 130 mln dlrs.