A federal “cease and desist” order issued against Colonial Bank last week should not affect the bank’s customers in Middle Georgia.
“Everything should pretty much be the same for them,” said Merrie Tolbert, corporate communications manager for the Montgomery, Ala.-based bank.
The order, filed by the Federal Deposit Insurance Corp. and the Alabama State Banking Department, imposes more federal regulations on the bank, such as ongoing oversight and management. It requires the bank “to improve and/or suspend certain activities,” raise more capital and decrease its classified assets, such as “problem” loans, Tolbert said.
“The C&D (order) does not affect our existing customer accounts or loans. Our customers’ deposits will continue to be insured by the FDIC,” she said.
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Colonial BancGroup operates 353 branches in Florida, Alabama, Georgia, Nevada and Texas, with more than $26 billion in assets, according to a company news release. The bank has three branches in Bibb County and one in Warner Robins.