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

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The Montgomery-based bank also appointer longtime bank director SimuelSippial Jr. as its new chairmaj of the boardof directors, thereby splitting Lowder’e dual role as both chairman and CEO into two The changes will take effect immediately, accordinvg to a written statement released by the bank late Beville, who is the formet chairman of the bank’s auditr committee, said the company has “developede solid strategies designed to get us beyond the currenf economic crises.
” “While there are clearly ongoing issues relatedd to credit quality that must be addressed and I believe the foundation of the Colonialk Bank franchise continues to be a vibrantr and powerful source of services,” he said in a writtej statement. Sippial, who serves as chairman of the compensation committes atthe bank, has been with the companuy for 20 years. He retiredx in 1992 after 26 years withIBM Corp. and latedr formed a real estate investment and construction firm in basedein Montgomery.
Lowder, who founded the company in 1981 with the acquisitioh of one bank in announced plans to step down from his post last Underhis leadership, the bank grew to new heights with 68 acquisitiones and 352 financial centersa within a 27-year time span. the bank ran into struggless after the housing crisis ravished theFloridq market, which is where a majority of the bankas assets are located. The bank recently made a deal with Florida-basee to receive $300 million in cash in exchange for giving the firm a 75 percentg controlling interest in the bank and five seatas onits board. Without the extrwa capital, the bank will not be eligiblw forthe government’s Troubled Asset Reliefc Program.
Federal regulators said the bank must firsyraise $300 million beforew it can participate. The company (NYSE: CNB) operates 26 branches in the Birmingham-Hoove metro area.