The Alabama State Banking Department took possession of Colonial Bank at 5 p.m. Friday, according to a prepared release, appointing the FDIC as receiver of the bank pursuant to Alabama regulations.

“The Department took possession of Colonial Bank pursuant to the provisions of Section 5-8A-20 of the Code of Alabama which allows the Superintendent to take possession of a bank, if so directed by the Banking Board, in such cases where the bank’s capital is impaired or if any examination of the bank indicates that the bank is operating in an unsafe or unsound condition…,” stated a the release.

Colonial Bank will be acquired by BB&T Corporation, which is headquartered in Winston-Salem, NC. It is listed as having financial assets of $150 billion.

Colonial Bank depositors will be able access their accounts immediately, said the state, and all accounts have been transferred to BB&T. Depositors may still access accounts at Colonial Bank locations.

“Customers of the former Colonial Bank should continue to use their existing branches until BB&T can fully integrate the deposit records of Colonial Bank. Additionally, former depositors of Colonial Bank can continue to access their accounts through automated teller machine transactions, checks and debit transactions,” said the state.

Alabama banks are insured by the FDIC up to $250,000. The FDIC has established a website and toll-free number to answer questions regarding Colonial Bank. The website is www.fdic.gov. The number is 1-800-405-8739.