State takes possession of Colonial Bank -, GA News Weather & Sports

State takes possession of Colonial Bank

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MONTGOMERY, AL (WTVM/CNN) - News Leader 9 has confirmed the Alabama State Banking Department took possession of Colonial Bank at 5:00 p.m. central time on Friday.

Through an agreement with the FDIC, Colonial Bank will be acquired by BB&T Bank. Previously, a federal judge said Colonial Bank was on the brink of collapse. 

Trouble has been brewing recently for Colonial. Its mortgage lending division has been the focus of a federal investigation and last month, it released a statement suggesting the bank wouldn't be able to last much longer.

Colonial Bank has 355 branches in five states-- Alabama, Florida, Georgia,  Nevada and Texas.

If Colonial had failed, the FDIC would have insured up to $250,000 per person, per account-- and would have been reimbursed within a few business days.

At least 150 banks have failed in the United States. Colonial is listed among failed banks on the FDIC's website.

Customers with questions regarding their accounts can call the FDIC at 1-800-405-8739.  The FDIC has included on its website helpful links for consumers.  Click here, for more information.

Read more>>

Colonial Bank Press Release
Alabama Dept. of Banking Notice to All Banks


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