Alabama credit unions Tuesday were already seeing a flow of new deposit and loan business as they capitalize on last Friday's collapse of the $25 billion Colonial Bank of Montgomery, the biggest failure in a year.

While major CUs in the state were being careful about conducting outright promotions undermining or demeaning a financial competitor, managers were relishing banking's in-state troubles, also highlighted by a series of large Wachovia Bank-type mergers, which CU officials claim are driving business to CUs.

"Look, people want stability, safety and soundness in handling their finances and if we can't demonstrate that now, we'll never do it," said Joseph Newberry, president/CEO of the $2.5 billion Redstone FCU of Huntsville.