Colonial BancGroup Inc. said Wednesday that it will delay filing its second-quarter financial results with the Securities and Exchange Commission because of a criminal probe into "accounting irregularities" in its warehouse lending division.
Separately, a meeting between Colonial and the Alabama State Banking Board planned for Wednesday was cancelled. The regulator was expected at the meeting to ask the Montgomery, Ala., company to consent to receivership by the Federal Deposit Insurance Corp., if deemed necessary.
Trabo Reed, Alabama's deputy banking superintendent, said the banking board held an emergency meeting Monday and opted against having two meetings in one week. Reed would not say what was discussed in the Monday meeting, invoking confidentiality. When asked if regulators had held discussions with Colonial this week, he said, "We communicate with them every day."
A source familiar with the state's regulatory process said the board invokes confidentiality when individual banks are discussed.
Colonial last month reported a quarterly loss of $606 million, while warning that it was in jeopardy. It also announced in July that its proposed sale to the Ocala, Fla., mortgage lender Taylor, Bean & Whitaker Mortgage Corp. fell through.
Last week authorities raided Taylor, Bean's corporate offices and Colonial's warehouse lending office as part of an investigation.
A Colonial spokeswoman did not respond to several e-mails seeking comment.
