MONTGOMERY (AP) — Colonial Bank founder Bobby Lowder lost almost $164 million in stock value when the bank collapsed over the past two years and the share price ended at zero with Colonial’s seizure by regulators, the Montgomery Advertiser reported.
The newspaper said regulatory filings also showed that dog track magnate Milton McGregor invested more than $19 million in the bank in recent years to become its second-biggest stock holder behind Lowder.
Other prominent figures who were large shareholders at Colonial were former Auburn coach Pat Dye, former Frazier Memorial United Methodist Church pastor John Ed Mathison and Sam Sippial, who replaced Lowder as chairman in June.
The Advertiser’s report Saturday said Lowder, who founded the bank in 1981, held more than 7.6 million shares of stock when regulators seized Colonial on Aug. 14. According to regulatory filings, Lowder held more than six million shares on June 2, 2006, when the price peaked at $26.97 per share, putting his holdings at about $164 million.
Share trades of major holders, officers and insiders are made public by the Securities and Exchange Commission.
The Advertiser said the filings show Lowder never sold large amounts of stock as the price plummeted after its peak.
The last major move he made was on April 21, 2008, when he purchased 1 million shares at $8 per share as part of a new stock offering by the company.
McGregor, a Colonial bank director, became Colonial’s second-largest shareholder with more than 1.7 million shares, most purchased in the past two years. His last major purchase was on May 23, 2008, when he bought 500,000 shares at $6.37 per share.
Mathison, a member of the bank’s board, held more than 66,000 shares of the stock when the bank failed. The Advertiser said some of those shares were acquired recently, but he held 47,637 shares of the stock on June 2, 2006, when they were worth a combined $1,284,769.89.
Sippial, a longtime director at Colonial, held more than 87,000 shares when the bank collapsed. He, too, continued to acquire shares recently.
When the stock traded at its highest, his Colonial holdings were worth $1,073,136.30.
Lewis Beville, a longtime director who took over as CEO and president when Lowder stepped down in June, had almost 114,000 shares of stock when the bank failed. He acquired most of that in recent years. When the stock was at its peak, he held almost 19,000 shares with a value of more than $500,000.
Dye, the former Auburn football coach, also was a board member and held 44,560 shares.
At their peak in June 2006, the shares were worth about $880,000.
The Advertiser said none of the men could be reached for comment on their losses in Colonial.
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