The Federal Deposit Insurance Corp said in a statement on Friday that regulators have closed Colonial Bank and Southeast regional bank BB&T will buy about $22 billion in assets of Colonial.

* FDIC will retain remaining assets for later disposition

* says BB&T assumes all of the deposits of Colonial Bank of Montgomery, Alabama

* US FDIC and BB&T entered into a loss-share transaction on approximately $15 billion of Colonial Bank's assets

* says Colonial's failure expected to cost insurance fund $2.8 billion

* says Colonial Bank is 74th U.S. bank to fail this year

* FDIC Chairman Sheila Bair says losses from today's failures are lower than had been projected