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Colonial Bank
Former type Subsidiary of Colonial Bancgroup
Genre Financial Services
Fate The Alabama State Banking Department declared Colonial Bank insolvent, seized it, and appointed the FDIC to become the failed bank's receiver. The FDIC sold Colonial Bank to BB&T.
Founded 1981
Founder(s) Bobby Lowder
Defunct August 14, 2009 (2009-08-14)
Headquarters Montgomery, Alabama, United States
Parent Colonial Bancgroup
Website www.ColonialBank.com

Colonial Bank, formerly a subsidiary of Colonial Bancgroup Inc., was headquartered in Montgomery, Alabama. Colonial Bank had 346 branches in the states of Alabama, Georgia, Florida, Nevada and Texas. Colonial's assets had grown from $166 million in 1981 to $26 billion. This growth can be attributed to Colonial's focus on establishing a strong presence in diverse and growing markets. Colonial expanded from its base of Alabama to fast growing regional markets such as Florida, Georgia, Texas, and Nevada. Colonial Bank was the fifth largest commercial bank in Florida and 27th largest commercial bank in the USA. Colonial Bank was frequently the target of rumors that it would be acquired by a larger bank.

Colonial disclosed its legal problems on Aug. 4, 2009 stating that federal agents had executed a search warrant at its mortgage warehouse lending offices in Orlando, Fla. and that it had been forced to sign a cease and desist order with the Federal Reserve and regulators at the end of last month in relation to its accounting practices and its recognition of losses.[1][2]

On August 14, 2009, the bank failed and its 346 branches were seized by regulators. $22 billion of the bank's deposits were subsequently sold by the FDIC to BB&T Corp. The bank's failure was the largest bank failure in 2009 and the 6th largest bank ever to fail in the United States, costing the FDIC's Deposit Insurance Fund an estimated $2.8 billion. It was also the 74th bank failure of 2009.[3][4]

References

  1. ^ Press, CNN (2009-08-15). "BB&T buys Colonial bank; 4 other banks fail - CNN Money". http://money.cnn.com/2009/08/14/news/companies/colonial_bancgroup/?postversion=2009081500. Retrieved 2009-08-15.  
  2. ^ Press, South Florida Business Journal (2009-06-10). "Colonial hit with cease and desist order". http://southflorida.bizjournals.com/southflorida/stories/2009/06/08/daily24.html. Retrieved 2009-08-15.  
  3. ^ Press, Associated (2009-08-14). "Colonial BancGroup shut by regulators: Associated Press Business News - MSN Money". http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=AP&date=20090814&id=10276467. Retrieved 2009-08-15.  
  4. ^ FDIC (2009-08-14). "BB&T, Winston-Salem, North Carolina, Assumes All of the Deposits of Colonial Bank, Montgomery, Alabama - FDIC Failed bank list". Press release. http://www.fdic.gov/news/news/press/2009/pr09143.html. Retrieved 2009-08-15.  

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