Failed Bank Information
Information for Colonial Bank, Montgomery AL
- Press Release
- Acquiring Financial Institution
- Question and Answer Guide
- Banking Services
- Loan Customers
- Possible Claims Against the Failed Institution
- Priority of Claims
- Dividend Information
- Brokered Deposits
- Purchase and Assumption Agreement (679 kb PDF File - PDF Help)
- Bid Summary
- Balance Sheet Summary
Please be advised you will not receive any email notification to claim/unlock/unsuspend your account or to provide any private information. Please be aware of any Phishing Scams to obtain information from you.
On Friday, August 14, 2009, Colonial Bank, Montgomery, AL was closed by the Alabama State Banking Department, and the Federal Deposit Insurance Corporation (FDIC) was named Receiver. No advance notice is given to the public when a financial institution is closed.
The FDIC has assembled useful information regarding your relationship with this institution. Besides a checking account, you may have Certificates of Deposit, a car loan, a business checking account, a commercial loan, a Social Security direct deposit, and other relationships with the institution. The FDIC has compiled the following information, which should answer many of your questions.
II. Press Release
The FDIC has issued a press release (PR-143-2009) about the institution's closure. If you represent a media outlet and would like information about the closure, please contact Andrew Gray at 202-494-1049.
III. Acquiring Financial Institution
All deposit accounts have been transferred to Branch Banking and Trust Company, (BB&T), Winston-Salem, NC ("assuming institution") and will be available immediately. The former Colonial Bank locations will reopen as branches of BB&T. Each location will operate by the same schedule it did prior to this transaction.
Your transferred deposits will be separately insured from any accounts you may already have at BB&T for six months after the failure of Colonial Bank. Checks that were drawn on Colonial Bank that did not clear before the institution closed will be honored as long as there are sufficient funds in the account. If you have questions about your account(s) transferred to the assuming bank, you may speak to an FDIC representative regarding deposit insurance by calling (888) 206-4662.
For general questions about FDIC deposit insurance coverage, please call 1-877-275-3342 or visit EDIE, the FDIC's Electronic Deposit Insurance Estimator.
EDIE - FDIC's Electronic Deposit Insurance Estimator
You may withdraw your funds from any transferred account without an early withdrawal penalty until you enter into a new deposit agreement with BB&T as long as the deposits are not pledged as collateral for loans. You may view more information about BB&T by visiting their web site.
Branch Banking and Trust Company (BB&T) (www.bbt.com)
V. Banking Services
The Automated Teller Machines (ATM) and online service will remain available.
During regular business hours, you may continue to use the services to which you previously had access, such as safe deposit boxes, night deposit boxes, wire services, etc.
Your checks will be processed as usual. All outstanding checks will be paid against your available balance(s) as if no change had occurred. Your new bank will contact you soon regarding any changes in the terms of your account. If you have a problem with a merchant refusing to accept your check, please contact your branch office. An account representative will clear up any confusion about the validity of your checks.
All interest accrued through Friday, August 14, 2009, will be paid at your same rate. BB&T will be reviewing rates. You will be notified of any changes.
Your automatic direct deposit(s) and/or automatic withdrawal(s) will be transferred automatically to your new bank. If you have any questions or special requests, you may contact a representative of your assuming institution at your branch office.
VI. Loan Customers
The FDIC, as Receiver for Colonial Bank, has transferred servicing of Colonial's mortgage loans from Taylor Bean & Whittaker to RoundPoint Mortgage Servicing Corporation. If you have any questions or wish to discuss your loan, please contact RoundPoint at 1-866-559-8717 or go to their website at www.roundpointmortgage.com/. You can email RoundPoint Mortgage Servicing at: email@example.com. You can also reach the FDIC toll-free at (888) 206-4662.
For all questions regarding new loans and the lending policies of BB&T, please contact your branch office.
Please see A Borrower's Guide to an FDIC Insured Bank Failure for additional information.
VII. Possible Claims Against the Failed Institution
If you or your company provided a service or product, leased space, furniture, or equipment to Colonial Bank after Friday, August 14, 2009 and have not been paid you do not have a claim against Colonial Bank. Please follow your normal billing procedures by providing an invoice as instructed.
Claims against failed financial institutions occur when bills sent to the institution remain unpaid at the time of failure. If you or your company provided a service or product, leased space, furniture, or equipment to Colonial Bank prior to Friday, August 14, 2009 and have not been paid you may be entitled to a claim against the bank. If you provided a product to or a service for Colonial Bank prior to the bank's failure for which you have not been paid and you have not received communication, please contact:
FDIC as Receiver for Colonial Bank
1601 N. Bryan Street
Dallas, TX 75201-3430
Attention: Claims Agent
Please note: There are time limits for filing a claim, your claim must be filed on or before 11/19/2009.
All shares of Colonial Bank were owned by its holding company, The Colonial BancGroup, Inc., Montgomery, AL. The holding company was not included in the closing of the bank or the resulting receivership. If you are a shareholder of Colonial Bank, please do not contact or file a claim with the Receiver. You may contact Colonial BancGroup, Inc., directly for information at:
Colonial BancGroup, Inc.,
P.O. Box 1108
Withdrawn: Determination of Insufficient Assets to Satisfy Claims Against Financial Institution in Receivership
On April 15, 2013, the FDIC determined that the assets of Colonial Bank were insufficient to pay claims below the depositor class and, therefore, all non-deposit claims had no value (the "Determination"). The FDIC has since withdrawn the Determination because potential recoveries from the receivership's pending litigation have been revised upward as a result of changed circumstances, thereby creating the possibility that all higher-priority deposit claims could be paid in full. Consequently, under the most favorable circumstances, it is theoretically possible for recoveries to result in payment on non-deposit claims. Please be aware that the FDIC's withdrawal of the Determination does not mean that there will be assets available to the Receiver in the future to make payment on your claim, but only that the possibility theoretically exists.
If you feel that you have been disadvantaged in any way by the FDIC's now-withdrawn Determination, please contact an FDIC claims agent at the address provided above.
VIII. Priority of Claims
In accordance with Federal law, allowed claims will be paid, after administrative expenses, in the following order of priority:
- General Unsecured Creditors
- Subordinated Debt
IX. Dividend Information
X. Brokered Deposits
The FDIC offers a reference guide to deposit brokers acting as agents for their investor clientele. This site outlines the FDIC's policies and procedures that must be followed by deposit brokers when filing for pass-through insurance coverage on custodial accounts deposited in a failed FDIC Insured Institution.
Deposit Broker's Processing Guide