|Former type||Subsidiary of Colonial BancGroup|
|Industry||Financial Banking 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.|
|Defunct||August 14, 2009|
|Headquarters||Montgomery, Alabama, United States|
|Area served||Alabama, Georgia, Florida, Tennessee, Louisiana, Missouri, Nevada, Texas|
|Key people||Executive Board|
|Total assets||$26 Billion|
Colonial's assets had grown from $166 million in 1981 to $26 billion. 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.
The bank ran into problems after it was revealed that it had bought $1 billion in mortgages from Taylor, Bean & Whitaker that Taylor Bean did not own in one of the biggest fraud cases in history. The CEO of Taylor, Bean & Whitaker, Lee Farkas, was put on trial and found guilty of fraud. Bobby Lowder, the CEO of Colonial Bank, was investigated and was not involved with the fraud.
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, Florida, 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.
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.
Key People - Major Markets
- John McMullan : President and Chief Executive Officer - Alabama, Tennessee, Georgia, Florida and Huntsville, AL; President of Northern Region Lending
- Paula Renfroe : Senior Executive Vice President - Huntsville, AL; President and Chief Executive Officer of Private Banking - Huntsville, AL
Not enough data for allocation.
- Robert E. Lowder : Chairman, President & Chief Executive Officer of Colonial Bank, Colonial BancGroup & the Executive Board of Directors
- Sarah H. Moore : Chief Financial Officer
- Edward O'Gwynn : President and Chief Executive Officer - Alabama Corporate Lending
- Leah Junkins : Regional Retail Banking Manager
- Press, CNN (2009-08-15). "BB&T buys Colonial bank; 4 other banks fail - CNN Money". Retrieved 2009-08-15.
- Press, South Florida Business Journal (2009-06-10). "Colonial hit with cease and desist order". Retrieved 2009-08-15.
- Press, Associated (2009-08-14). "Colonial BancGroup shut by regulators: Associated Press Business News - MSN Money". Retrieved 2009-08-15.
- "BB&T, Winston-Salem, North Carolina, Assumes All of the Deposits of Colonial Bank, Montgomery, Alabama - FDIC Failed bank list" (Press release). FDIC. 2009-08-14. Retrieved 2009-08-15.
- Colonial Bank official website