Colonial BancGroup signs $300M deal with investors

MONTGOMERY, Ala. (AP) - Colonial BancGroup Inc. said investors led by Taylor, Bean and Whitaker Mortgage Co. have agreed to make a $300 million equity investment in the bank, just in time for Colonial to meet a deadline to qualify for $550 million in federal bailout funds.

In December 2008, the regional bank said it received preliminary approval to receive funds under the Treasury's Troubled Asset Relief Program, or TARP.

In after-hours trading Tuesday, shares of Montgomery based Colonial BancGroup jumped 15 cents, or 16.7 percent, to $1.05.

The stock was not trading in the premarket Wednesday morning.

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