MONTGOMERY, AL (WSFA) - It's been eight months since Montgomery-based Colonial Bank's implosion made history as one of the nation's largest bank failures, but the ripple effect continues.
Tuesday, BB&T, which took over Colonial's assets, announced it will cut jobs in central Alabama. The reductions stem from the fact that BB&T's corporate headquarters are located in North Carolina and much of Colonial's headquarters in Alabama are redundant.
Colonial had 790 employees in the capital city before it's demise. Just over 500 of those positions will be eliminated in waves over the summer months. Eighty-five of those positions are scheduled to disappear in May. Resignations from 151 other employees have already been tendered.
When the cuts end in late summer just 135 people will remain employed by BB&T in Montgomery.
Those folks losing their jobs are getting 60 days notice, according to BB&T, and will receive severance packages. The company is also promising employment assistance and top consideration at open positions within its banks.
BB&T says it will also close Colonial's sprawling new corporate headquarters complex located in East Montgomery. That closure will take place in the 3rd quarter of the year. BB&T is currently leasing the building from the FDIC.
The bank says it will, however, open a new South Alabama regional headquarters on Interstate Park Drive in Montgomery. That facility is set to open in June.