The FDIC created a bridge bank to take over the operations of Silverton Bank, National Association in Atlanta, Georgia, after it was closed on Friday by the Office of the Comptroller of the Currency (OCC). The newly created bank is Silverton Bridge Bank, National Association.
Silverton Bank did not take deposits directly from the general public nor did it make loans to consumers. It was a commercial bank that provided correspondent banking services to its 1,400 client banks in 44 states. Through its regional offices – in Alabama, Florida, North Carolina, Tennessee, Illinois, Maryland, Ohio, and Washington – Silverton Bank provided a variety of services for other institutions, including purchasing loans, selling loan participations, investments, credit card operations, clearing accounts, and consulting.

In a statement issued by the OCC, the agency said it shuttered Silverton Bank after finding that the institution had experienced “substantial dissipation of assets and earnings due to unsafe and unsound practices.” The OCC also found that the bank has incurred substantial losses that have depleted most of its capital, leaving “no reasonable prospect” that the bank will become adequately capitalized without federal assistance.
Since the FDIC created a new bank to take over the operations of Silverton Bank, there is not expected to be any meaningful impact on the bank’s clients. According to the FDIC, the creation of the bridge bank allows the client banks to maintain their correspondent banking relationship with the least amount of disruption. The FDIC said it will operate Silverton Bridge Bank, N.A., to allow preexisting marketing efforts for the bank to continue. TIB-The Independent BankersBank, headquartered in Irving, Texas, was contracted by the FDIC to provide operational management of Silverton Bridge Bank, N.A.
At the time of its closing, Silverton Bank had approximately $4.1 billion in assets and $3.3 billion in deposits, all of which are expected to be within the FDIC’s insurance limits. The FDIC estimates the failure will cost the agency $1.3 billion. Silverton Bank is the 30th bank to fail in the nation this year and the sixth in Georgia. The last FDIC-insured institution to go under in the state was American Southern Bank, in Kennesaw, on April 24.