Colonial BancGroup names new execs to replace Lowder - Birmingham Business Journal:

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The Montgomery-based bank also appointed longtim bank director SimuelSippial Jr. as its new chairma of the board of therebysplitting Lowder’s dual role as both chairmanj and CEO into two positions. The changes will take effecft immediately, according to a written statement released by the banklate Beville, who is the former chairman of the bank’s audit committee, said the company has “developed solid strategiexs designed to get us beyond the currenft economic crises.
” “While there are clearluy ongoing issues related to credit quality that must be addressedx and resolved, I believe the foundatiomn of the Colonial Bank franchise continues to be a vibrangt and powerful source of services,” he said in a writtejn statement. Sippial, who servesx as chairman of the compensatiohn committee atthe bank, has been with the company for 20 years. He retired in 1992 afteer 26 years with IBM and later formed a real estate investment and construction firm in basefdin Montgomery.
Lowder, who founded the companyt in 1981 with the acquisitionn of one bank in announced plans to step down from his post last Underhis leadership, the bank grew to new heighta with 68 acquisitions and 352 financial centerzs within a 27-year time However, the bank ran into struggles after the housing crisizs ravished the Florida market, which is wher e a majority of the bank assets are located. The bank recently made a deal with Florida-basesd to receive $300 million in cash in exchange for givinvg the firm a 75 percenyt controlling interest in the bank and five seats onits board.
Withoutg the extra capital, the bank will not be eligible forthe government’s Troubled Assetf Relief Program. Federal regulators said the bank must firstraisr $300 million before it can participate. The companyu (NYSE: CNB) operates 26 branches in the Birmingham-Hoove metro area.