Colonial Bank posts new loss

Montgomery, AL (WSFA) - Montgomery-based Colonial Bancgroup reports losing more than $600 million during the second quarter alone.

WSFA 12 News has also learned that Colonial was not able to finalize a stock deal with a group of Florida investors to raise $300-million in new capital.  That deal would have allowed the bank to qualify for a half-billion dollars in federal T.A.R.P. Funds.

The future of the bank may be in jeopardy. Colonial's latest regulatory filing included a reference to the company's "possible inability to continue as a going concern." That assessment indicates it would be difficult for Colonial to continue business as an independent entity. Colonial Bank tells WSFA 12 News, the capital action plan includes strategies to increase capital to address uncertainties which would lift the assessment. Colonial is actively seeking a buyer or merger opportunity for it's 355 branches in five states.