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Bank Failures

Bid Summary

Colonial Bank, Montgomery, AL
Closing Date: August 14, 2009

Winning Bidder:

Branch Banking and Trust Company (BB&T), Winston-Salem, NC

Winning Bid:

All deposits, whole bank with loss share – Asset Discount of $1.462 billion for loss share assets, a price of 86.1% for consumer loans not covered under loss share, and a Deposit Premium of 2.77%.

Cover (second place) Bidder:

TD Bank, N.A., Portland, ME

Cover Bid:

All deposits, whole bank with loss share – Asset Discount of $1.7521 billion, Deposit Premium 2.50%.

Other Bidder Name & Location:

Branch Banking and Trust Company (BB&T)

Other Bids:

All deposit, modified whole bank with loss share – Pool bids plus Deposit Premium of 0%.

Notes:

  • The winning bidder’s acquisition of all the deposits was the least costly resolution compared to a liquidation alternative and the other bids. The liquidation alternative was valued using valuation models to estimate the market value of the assets. The bids for loss share were valued using a discounted cash flow analysis for the loss share portfolio over the life of the loss share agreement.
  • For more information on the bid disclosure policy, see https://www.fdic.gov/resources/resolutions/bank-failures/failed-bank-list/biddocs.html

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Last Updated: November 16, 2020