Colonial Bank
Encyclopedia
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.
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.
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.
Huntsville
Colonial Bancgroup Inc.
Colonial BancGroup Inc. was a $26 billion bank holding company headquartered in Montgomery, Alabama, USA. Colonial BancGroup, Inc. was a financial services company that, through its subsidiaries, provided diversified services, including retail and commercial banking, wealth management services,...
, was headquartered in Montgomery, Alabama
Montgomery, Alabama
Montgomery is the capital of the U.S. state of Alabama, and is the county seat of Montgomery County. It is located on the Alabama River southeast of the center of the state, in the Gulf Coastal Plain. As of the 2010 census, Montgomery had a population of 205,764 making it the second-largest city...
. Colonial Bank had 346 branches in the states of Alabama
Alabama
Alabama is a state located in the southeastern region of the United States. It is bordered by Tennessee to the north, Georgia to the east, Florida and the Gulf of Mexico to the south, and Mississippi to the west. Alabama ranks 30th in total land area and ranks second in the size of its inland...
, Georgia
Georgia (U.S. state)
Georgia is a state located in the southeastern United States. It was established in 1732, the last of the original Thirteen Colonies. The state is named after King George II of Great Britain. Georgia was the fourth state to ratify the United States Constitution, on January 2, 1788...
, Florida
Florida
Florida is a state in the southeastern United States, located on the nation's Atlantic and Gulf coasts. It is bordered to the west by the Gulf of Mexico, to the north by Alabama and Georgia and to the east by the Atlantic Ocean. With a population of 18,801,310 as measured by the 2010 census, it...
, Nevada
Nevada
Nevada is a state in the western, mountain west, and southwestern regions of the United States. With an area of and a population of about 2.7 million, it is the 7th-largest and 35th-most populous state. Over two-thirds of Nevada's people live in the Las Vegas metropolitan area, which contains its...
and Texas
Texas
Texas is the second largest U.S. state by both area and population, and the largest state by area in the contiguous United States.The name, based on the Caddo word "Tejas" meaning "friends" or "allies", was applied by the Spanish to the Caddo themselves and to the region of their settlement in...
. 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.
The bank ran into problems after it was revealed that it had bought $1 billion in mortgages from Taylor, Bean & Whitaker
Taylor, Bean & Whitaker
Taylor, Bean & Whitaker was a top 10 wholesale mortgage lending firm. Taylor, Bean & Whitaker closed $35 billion in residential mortgage loans in 2007. It employed about 2,000 workers and was the fifth largest issuer of GNMA securities...
that Taylor Bean did not own in one of the biggest fraud cases in history.
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
BB&T
BB&T Corporation is an American bank with assets of $157 billion , offering full-service commercial and retail banking services along with other financial services like insurance, investments, retail brokerage, mortgage, corporate finance, consumer finance, payment services, international...
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
Alabama
Huntsville
John T. 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
Birmingham
Not enough data for allocation.
Montgomery
Robert E. Lowder : Chairman, President & Chief Executive Officer of Colonial Bank, Colonial BancGroup & the Executive Board of Directors
Sarah H. Moore : Chief Financial Officer
Mobile
Edward O'Gwynn : President and Chief Executive Officer - Alabama Corporate Lending
Leah Junkins : Regional Retail Banking Manager
Not enough data for allocation.
Montgomery
Robert E. Lowder : Chairman, President & Chief Executive Officer of Colonial Bank, Colonial BancGroup & the Executive Board of Directors
Sarah H. Moore : Chief Financial Officer
Mobile
Edward O'Gwynn : President and Chief Executive Officer - Alabama Corporate Lending
Leah Junkins : Regional Retail Banking Manager
Edward O'Gwynn : President and Chief Executive Officer - Alabama Corporate Lending
Leah Junkins : Regional Retail Banking Manager