Colonial Bank, a subsidiary of Colonial BancGroup, has entered into a Stipulation and Consent agreeing to the issuance of an Order to Cease and Desist (Order) with the Federal Deposit Insurance Corporation (FDIC) and the Alabama State Banking Department.
The Order generally provides for the on-going management and oversight of the bank, an increase in its capital levels, a reduction in the level of criticized assets, and a reduction in concentrations of credit and improvement in its earnings.
Lewis Beville, President and CEO, said: “We are committed to working with the FDIC and State of Alabama to implement the actions required by the Order. This Order does not affect customer deposit accounts or loans. Deposits in Colonial will continue to be covered by FDIC insurance up to $250,000 and on non-interest bearing transaction accounts and interest bearing transaction accounts earning a rate of 0.5% or less, insurance is unlimited.”
Colonial BancGroup operates 353 branches in Florida, Alabama, Georgia, Nevada and Texas with over $26 billion in assets.
