Another Alabama bank fails, taken over

MONTGOMERY, Ala. (AP) - Regulators shut down First Lowndes Bank of Fort Deposit on Friday and announced that First Citizens Bank of Luverne is acquiring the bank.

The state Banking Department announced the takeover in conjunction with the Federal Deposit Insurance Corp.

State law allows the action when a bank's capital is impaired or if an examination of the bank indicates it is operating in an unsound condition.

Besides its main office, First Lowndes Bank operated branches in Hayneville, Highland Home and Greenville.

The Banking Department said all deposit accounts of First Lowndes Bank have been transferred to First Citizens Bank and are available immediately.

First Lowndes Bank is one of 37 bank failures in the United States this year.

Recently failed Alabama banking institutions include the 2009 failure of Montgomery-based Colonial Bank, one of the largest bank failures in U.S. history. That bank had nearly $25 billion in assets when it was told to BB&T in August.

(Copyright 2010 by The Associated Press. All Rights Reserved.)