Friday, August 14, 2009

Bank Failure #74: Down Goes Colonial

by Calculated Risk on 8/14/2009 06:08:00 PM

Busy drones humming
Colonial colonized
Queen bee Bair in charge.

by Soylent Green is People

From the FDIC: BB&T, Winston-Salem, North Carolina, Assumes All of the Deposits of Colonial Bank, Montgomery, Alabama
Colonial Bank, Montgomery, Alabama, was closed today by the Alabama State Banking Department, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. ...

Colonial Bank's 346 branches in Alabama, Florida, Georgia, Nevada and Texas will reopen under normal business hours beginning tomorrow and operate as branches of BB&T. ...

"The past 18 months have been a very trying period in the financial services arena, but the FDIC and its staff have performed as Congress envisioned when it created the corporation more than 75 years ago," said FDIC Chairman Sheila C. Bair. "Today, after protecting almost $300 billion in deposits since the current financial crisis began, the FDIC's guarantee is as certain as ever. Our industry funded reserves have covered all losses to date. In fact, losses from today's failures are lower than had been projected. I commend our staff for their excellent work in assuring once again a smooth transition for bank customers with these resolutions. The FDIC continues to stand by the nation's insured deposits with the full faith and credit of the U.S. government. No depositor has ever lost a penny of their insured deposits."
...
As of June 30, 2009, Colonial Bank had total assets of $25 billion and total deposits of approximately $20 billion. ... The FDIC and BB&T entered into a loss-share transaction on approximately $15 billion of Colonial Bank's assets.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $2.8 billion. ... Colonial Bank is the 74th FDIC-insured institution to fail in the nation this year, and the first in Alabama. The last FDIC-insured institution to be closed in the state was Birmingham FSB, Birmingham, on August 21, 1992.