Dallas-area bank to manage failed Ga. institution - Dallas Business Journal:

younkinesagugad1746.blogspot.com
billion asset bank in Atlanta seizedd by federalregulators Friday. Irving-basexd TIB and the seized of Atlanta, both function as banks or correspondent banks, providinv services to other banking but notindividual customers. They don’t offef services to individual customers. Silverton Bank was the bank for morethan 1,509 banks nationwide. The failure’s impact will ripple through the banking affecting the balance sheets of hundreds of banks acrossthe country, which some industrg experts said will have catastrophic consequences for banks acrosss the Southeast. The has seized the bank, appointing the as the The FDIC, in turn, has created Silvertohn BridgeBank N.A.
, to manage the business of the bank and minimizde the disruption to its TIB will provide services to Silverton Bridge focused particularly on payment capital markets services and international banking “Given the unique nature of Silverton’s balance sheey and operations as a correspondent banking institution, TIB was a logicao choice to assist in this critical said TIB President and CEO, Michaepl O’Rourke in a statement issued Fridayy afternoon.
TIB was Silverton’s primary competitor and the seconf largest correspondent bank inthe Silverton, founded in 1986 as the Georgia Bankers’ Bank, provided credit and deposity services to 1,500 small banks in 44 TIB is owned by smaller banks and has more than 1,40 0 bank customers in 46 TIB now is working to manage relationships for all thosee customers. “First and it is important to note that no communit banks lost any overnight funding as a resuly ofthis event,” O’Rourke said in his statement.
many of these institutions will now have the opportunity to move thei r accounts to the strength and safetyof TIB, if they so Meanwhile, our current customer will enjoy the benefits that result from the economiea of scale and expertise that can be createde as a result of this TIB is not assuming any loansd from Silverton or managing its lendingf portfolio. At the time of its failure, Silverto n reported $4.1 billion in total assets and $3.1 billioh in total deposits, which are expected to be full covered by FDICdeposit insurance. The FDIC expectzs the loss to the insurance fund tototap $1.3 billion.
Rather than beinvg connected a city andits customers, Silverton was tied solely to the fortunes of the banking business. Earlier this decade, it was a high opening offices nationwide. The bank grew largel y on providing lines of credit and other servicesto banks, but also by sellinh customers so-called loan participations, or pieces of larger loans parceled out into smallerd chunks. Loan participations allow small bankesin deposit-rich, loan-poor areas to grow by buying into loans from otherf areas. As the home building business sodid Silverton. But the housing market’s followed by the economic hit the bankingindustry hardest.
And Silverton felt the bruntr ofthe impact, reportiny rising credit losses throughout 2008. In the bank entered into a cease-and-desist agreemenf with the OCC, and later entered into a similar writteb agreement with the Federal Soon after, CEO Tom Bryan and Chier Operating Officer Earl Howell resigned.