Colonial Bank: Difference between revisions

From Bhamwiki
Jump to navigation Jump to search
No edit summary
 
(7 intermediate revisions by 2 users not shown)
Line 2: Line 2:
'''Colonial Bank''', incorporated as '''Colonial BancGroup''' (NYSE: CNB) was a Montgomery-based regional bank with 300 branches in Alabama, Georgia, Florida, Nevada and Texas.
'''Colonial Bank''', incorporated as '''Colonial BancGroup''' (NYSE: CNB) was a Montgomery-based regional bank with 300 branches in Alabama, Georgia, Florida, Nevada and Texas.


The bank was founded in [[1981]] by [[Bobby Lowder]]. It acquired a banking presence in [[Birmingham]] with the purchase of the [[Exchange National Bank of Birmingham]] in [[1982]]. The bank failed in [[2009]], going into the receivership of the Federal Deposit Insurance Corporation on [[August 14]]. The bank was the largest to fail in [[2009]], during the "great recession". Winston-Salem, North Carolina-based [[BB&T]] acquired $22 billion of Colonial's $25 billion in assets, including all of its branches, with the remainder liquidated by the FDIC.
The bank was founded as the [[City National Bank of Birmingham]] in [[1965]] and was taken over in [[1981]] by [[Bobby Lowder]], who renamed it. It acquired the [[Exchange National Bank of Birmingham]] in [[1982]]. In its prime, Colonial was one of the nation's largest backers of mortgage originators. It constructed a new Birmingham headquarters, the [[20th Place South building|Colonial Bank Building]], on the site of the former [[Shades Valley High School]], in [[2001]].


In its prime, Colonial was one of the nation's largest backers of mortgage originators. Its exposure to more than $1.9 million in delinquent loans, primarily in the Florida market, triggered its failure. A planned injection of capital from Taylor Bean & Whitaker, which would have given the Florida-based lender 75% ownership of Colonial, fell through following a federal investigation. Taylor Bean was blocked from making FHA-backed loans, resulting in a shutdown of the company. Later that week a federal judge ordered the freezing of $1 billion of Colonial's assets pending the outcome of a lawsuit brought by Bank of America.
The bank failed in [[2009]], going into the receivership of the Federal Deposit Insurance Corporation on [[August 14]]. The bank was the largest to fail in [[2009]], during the [[Great Recession]]. Winston-Salem, North Carolina-based [[BB&T]] acquired $22 billion of Colonial's $25 billion in assets, including all of its branches, with the remainder liquidated by the FDIC.


Chairman & CEO Lowder retired in May 2009, immediately prior to the planned deal. Lewis Beville took over as CEO and Simuel Sippial, Jr became chairman of the board.
Its exposure to more than $1.9 million in delinquent loans, primarily in the Florida market, triggered its failure. A planned injection of capital from its primary lendee, Taylor Bean & Whitaker, which would have given the Florida-based lender 75% ownership of Colonial, fell through following a federal fraud investigation. Taylor Bean was blocked from making FHA-backed loans, resulting in a shutdown of the company. Later that week a federal judge ordered the freezing of $1 billion of Colonial's assets pending the outcome of a lawsuit brought by Bank of America.
 
Chairman & CEO Lowder retired in May 2009, immediately prior to the planned deal. Lewis Beville took over as CEO and Simuel Sippial Jr became chairman of the board.


==Birmingham locations==
==Birmingham locations==
Colonial had 26 offices in the metropolitan Birmingham area:
Colonial had 26 offices in the metropolitan Birmingham area:


* [[Empire Building]], 1928 [[1st Avenue North]], [[Downtown Birmingham]]
* [[Empire Building]] (formerly called the City National Bank Building), 1928 [[1st Avenue North]], [[Downtown Birmingham]]
* 820 [[19th Street South]], [[Medical Center]]
* 820 [[19th Street South]], [[Medical Center]]
* 1900 [[29th Avenue South Homewood|29th Avenue South]], [[Homewood]]
* 1900 [[29th Avenue South Homewood|29th Avenue South]], [[Homewood]]
* 1596 [[Montgomery Highway]], [[Hoover]]
* 1596 [[Montgomery Highway (Hoover)|Montgomery Highway]], [[Hoover]]
* 1034 [[Montgomery Highway]], [[Vestavia Hills]]
* 1034 [[Montgomery Highway (Vestavia Hills)|Montgomery Highway]], [[Shoppes at City Hall|Vestavia Plaza Shopping Center]]
* 1500 [[Montclair Road]], [[Eastwood]]
* 1500 [[Montclair Road]], [[Eastwood]]
* 1602 [[Forestdale Plaza]], [[Forestdale]]
* 1602 [[Forestdale Plaza]], [[Forestdale]]
Line 36: Line 38:


==References==
==References==
* Jarvis, Crystal (June 3, 2009) "Colonial BancGroup names new execs to replace Lowder." ''Birmingham Business Journal''
* [http://en.wikipedia.org/wiki/Colonial_Bank Colonial Bank] (October 5, 2006) Wikipedia - accessed October 6, 2006
* Jarvis, Crystal (August 14, 2009) "It's official: Colonial BancGroup fails." ''Birmingham Business Journal''
* Jarvis, Crystal (June 3, 2009) "Colonial BancGroup names new execs to replace Lowder." {{BBJ}}
 
* Jarvis, Crystal (August 14, 2009) "It's official: Colonial BancGroup fails." {{BBJ}}
== External Links ==
* Thornton, William (January 2, 2018) "Federal judge finds negligence in 2009 Colonial Bank collapse." {{BN}}
* [http://en.wikipedia.org/wiki/Colonial_Bank Colonial Bank] at Wikipedia, The Free Encyclopedia.
* [http://www.colonialbank.com Colonial Bank] official website


[[Category:Defunct banks]]
[[Category:Defunct banks]]
[[Category:1965 establishments]]
[[Category:2009 disestablishments]]

Latest revision as of 13:57, 30 January 2021

Colonial Bank logo.png

Colonial Bank, incorporated as Colonial BancGroup (NYSE: CNB) was a Montgomery-based regional bank with 300 branches in Alabama, Georgia, Florida, Nevada and Texas.

The bank was founded as the City National Bank of Birmingham in 1965 and was taken over in 1981 by Bobby Lowder, who renamed it. It acquired the Exchange National Bank of Birmingham in 1982. In its prime, Colonial was one of the nation's largest backers of mortgage originators. It constructed a new Birmingham headquarters, the Colonial Bank Building, on the site of the former Shades Valley High School, in 2001.

The bank failed in 2009, going into the receivership of the Federal Deposit Insurance Corporation on August 14. The bank was the largest to fail in 2009, during the Great Recession. Winston-Salem, North Carolina-based BB&T acquired $22 billion of Colonial's $25 billion in assets, including all of its branches, with the remainder liquidated by the FDIC.

Its exposure to more than $1.9 million in delinquent loans, primarily in the Florida market, triggered its failure. A planned injection of capital from its primary lendee, Taylor Bean & Whitaker, which would have given the Florida-based lender 75% ownership of Colonial, fell through following a federal fraud investigation. Taylor Bean was blocked from making FHA-backed loans, resulting in a shutdown of the company. Later that week a federal judge ordered the freezing of $1 billion of Colonial's assets pending the outcome of a lawsuit brought by Bank of America.

Chairman & CEO Lowder retired in May 2009, immediately prior to the planned deal. Lewis Beville took over as CEO and Simuel Sippial Jr became chairman of the board.

Birmingham locations

Colonial had 26 offices in the metropolitan Birmingham area:

References

Retrieved from "http://bhamwiki.com/w/index.php?title=Colonial_Bank&oldid=175891"