BB&T Acquired Colonial BancGroup

BB&T took control of Colonial BancGroup Inc., Alabama’s third-largest state-chartered bank, after it was seized by regulators.

Colonial’s demise was the largest bank failure in Alabama history. It is the sixth-largest bank to fail in the United States and the largest of 74 U.S. banks to fail this year.

At 5 p.m. on August 14th, the State of Alabama Banking Department officially appointed the Federal Deposit Insurance Corp. as receiver of the bank, which signed a loss-sharing agreement with BB&T.

Colonial’s $20 billion in deposits have been transferred to Winston-Salem, N.C.-based BB&T.

BB&T Corp. has launched a $750 million public offering of its common stock.

The bank will use the proceeds for general corporate purposes.

The underwriters will have a 30-day option to purchase up to an additional 15 percent in shares to cover overallotments.

Source: Jacksonville Business Journal