Colonial Bank now a part of BB&T Family

It’s the first time that a bank in Alabama got under crisis and crunch since the early 1990s.The workers at the Colonial Bank, which is now a part of BB&T family, say it’s business as usual at the branch off Carter Hill Road. BB&T still looks like Colonial Bank; BB&T is slowly putting its name on the building. Colonial has been badly battered by the credit crisis, as higher charge-offs and rising foreclosures in the bank’s Florida construction-loan portfolio continue to strain its balance sheet. Colonial Bank is facing this decade’s worst problem for their bank. The Bank of America has also sue colonial bank for 1 $billion dollar in cash loans and cash. Still they are struggling to gain their momentum.

Signs adorn doors and windows welcoming Colonial Bank clients to the new BB&T family. Many customers say news of Colonial’s downfall didn’t worry them. “It’s like another bank that’s purchasing a bank…just right now it’s at a discount,” says Montgomery resident, Johnnie Kimbrough. But Kimbrough says that. “You always know something like this is possible. It’s very surprising when it does happen though.”

But as leaders work out the nuts and bolts of the take over at Colonial’s corporate headquarters in Montgomery, Andrew Gray with the FDIC says customers should keep banking as normal. “Over the weekend they can use their debit cards, their ATM cards, they can write checks.” While the FDIC typically insures individual accounts which are up to $250, 000. So, “Both the insured and the uninsured are protected. No depositor lost a penny in this case.”

So, the rapid change in economical situation was just because of the sinking of the banking sector. The instability and the failure if the banking sector has become the one of the main reason of the current economical disaster!

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