CapitalSouth Bank based out of Birmingham was placed under the state's control at 5:00pm.
The FDIC was immediately made Receiver of the bank, and plans were made to sell the institution's assets to IberiaBank Corporation out of Lafayette, Louisiana.
CapitalSouth has a total of ten branches, two in the Montgomery area. One is located on Carmichael Road, the other on Malcom Road just off Taylor Road.
The Alabama Banking Department seized the assets of Colonial Bank just a week ago in what was the largest bank failure in Alabama history and the sixth largest in U.S history.
While CapitalSouth wasn't nearly as large as Colonial it's customers can expect the same treatment from regulators. Customers should see no immediate changes with their accounts and access to funds will remain available.
IberiaBank is more than 122 years old, has more than $5.7 billion in assets and employees more than 750 people at its 50 branches. IberiaBank is also Louisiana's second largest bank.
Customers of CapitalSouth can find more information on this developing situation in several places. A toll-free phone number is available at 1-877-894-4710. You can also find more at WWW.FDIC.GOV.
CapitalSouth was one of at least four banks listed on the FDIC's list of failed banks this week as of 6pm Friday. More than 80 banks have failed since the beginning of 2009.