One of Alabama’s largest banks recently had to scramble to raise $300 million from private investors to trigger a crucial influx of federal money. A client of Locke Lord Bissell & Liddell partner Philip Cooper is the lead investor on the deal.

Locke Lord’s client, Taylor, Bean & Whitaker Mortgage Corp., led the investor group that agreed to acquire $300 million in convertible preferred stock from Colonial BancGroup Inc. of Montgomery, Ala. Colonial Bank’s parent company needed the money in order to qualify to receive about $540 million from the U.S. Treasury’s Troubled Asset Relief Program. The agreement is pending regulatory approvals and other conditions.

Colonial Bank was hit hard by the economic downturn, and specifically the collapse of the homebuilding industry. The bank lost $880.5 million in 2008 through its exposure to Florida's real estate collapse, according to the Wall Street Journal.

Colonial Bank will convert to a federal savings and loan association if the $300 million investment is approved by federal banking regulators, according to a regulatory filing. Taylor, Bean & Whitaker already has a federal thrift license.

Taylor, Bean & Whitaker is putting up about half of the total $300 million, according to the Mobile Press-Register. About 20 other mortgage companies are contributing a total of $50 million total, and two private equity groups will invest $100 million.

The new investors would own about 75 percent of Colonial BancGroup, although Colonial would remain a standalone company. Colonial Bank is Alabama’s second-largest bank. Its chairman and chief executive is Bobby Lowder, an Auburn University trustee and influential backer of the school’s football team [photo, right].

Taylor, Bean & Whitaker, of Ocala, Fla., is regulated by the federal Office of Thrift Supervision. Taylor, Bean & Whitaker is one of the largest U.S. wholesale mortgage brokers.

Cooper is co-lead counsel on the deal, supervising a team of more than 25 Locke Lord lawyers. Partners Douglas Faucette and John Bruno in Washington are also co-leaders of the transaction with Cooper. Balch & Bingham is advising Colonial, including lawyers from its Birmingham and Mobile, Ala. offices.