Colonial Bank (CNB) Signs Order with FDIC and State of Alabama
The Colonial BancGroup, Inc. (NYSE: CNB) announced its subsidiary Colonial Bank 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. Pursuant to the Order, Colonial agreed to take certain actions intended to address various issues that have impacted the Bank's financial condition and performance. Among other things, the Order generally provides for the on-going management and oversight of the Bank, an increase in the Bank's capital levels, a reduction in the Bank's level of criticized assets, a reduction in concentrations of credit and improvement in the Bank's earnings.
"We are committed to working with the FDIC and State of Alabama to implement the actions required by the Order. We will do so while continuing to meet the needs of our customers in the communities we serve. Rest assured that we are committed to providing the products, services and responsiveness our customers expect and deserve. 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 noninterest bearing transaction accounts and interest bearing transaction accounts earning a rate of .50 percent or less, insurance is unlimited. While we are dedicated to working to resolve these serious issues, we want our customers to be confident in knowing that Colonial is committed to customer value and delivering the kind of service that's hard to find these days," said Lewis Beville, Colonial's President and CEO.
Colonial BancGroup operates 353 branches in Florida, Alabama, Georgia, Nevada and Texas with over $26 billion in assets. [SM]
"We are committed to working with the FDIC and State of Alabama to implement the actions required by the Order. We will do so while continuing to meet the needs of our customers in the communities we serve. Rest assured that we are committed to providing the products, services and responsiveness our customers expect and deserve. 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 noninterest bearing transaction accounts and interest bearing transaction accounts earning a rate of .50 percent or less, insurance is unlimited. While we are dedicated to working to resolve these serious issues, we want our customers to be confident in knowing that Colonial is committed to customer value and delivering the kind of service that's hard to find these days," said Lewis Beville, Colonial's President and CEO.
Colonial BancGroup operates 353 branches in Florida, Alabama, Georgia, Nevada and Texas with over $26 billion in assets. [SM]
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