Colonial Bank to be sold?

NEW YORK, NY (CNN) - The financial wire service, Dow Jones, is reporting that BB&T may buy Montgomery-based Colonial BancGroup which has fallen into dire straights.

The offer comes after a federal judge announced Colonial Bank is on the brink of collapsing.

Trouble has been brewing recently for Colonial , which is owned by BancGroup.

Its mortgage lending division has been the focus of a federal investigation, and last month, it released a statement suggesting the bank wouldn't be able to last much longer.

BB&T is reportedly offering to buy Colonial's deposits and 355 branches, but not the loans and other financial assets it holds.

The Federal Deposit Insurance Company, which provides insurance on bank accounts, updated its bank failure list at 4:00 Friday. Colonial's name was not immediately put on the list.

However, at 5pm the list was updated to show the failed bank.