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Silverton failed due to significant loan losses which eroded its capital position and reduced its ability to maintain adequate liquidity. Problem assets centered in Acquisition, Development, and Construction loans and non-owner occupied Consumer Real Estate loans. Silverton’s efforts to raise capital were unsuccessful.
A bridge bank is a new national bank chartered by the Office of the Comptroller of the Currency (OCC) and controlled by the FDIC in accordance with section 11(n) of the Federal Deposit Insurance Act.
Creating a bridge bank permits parallel functions to continue. First, the bridge bank allows client banks to maintain their correspondent banking relationship with the least amount of disruption. The Silverton Bridge Bank, N.A. will be the name of the bridge bank. Secondly, operating a bridge bank allows FDIC's preexisting efforts to market the bank to continue. Thirdly, operating the bridge bank allows time for the failed bank to be liquidated in an orderly fashion if marketing efforts are unsuccessful.
Silverton Bridge Bank, N.A. will be operational for a period of time sufficient to allow client banks to transition correspondent services. When the bridge bank is ultimately terminated, no additional services will be offered by Silverton Bridge Bank, N.A. Current asset portfolios will be serviced, managed, and marketed through the receivership.
Silverton Bridge Bank, N.A. will continue to operate correspondent services in a business as usual manner. However, loans and other assets will be handled by the Receiver as per FDIC policies.
The FDIC’s plan to communicate with Silverton’s client banks is as follows:
Since the FDIC created the bridge bank to take over Silverton Bank operations,
there is not expected to be any meaningful impact on Silverton’s
clients or the other banker’s banks. While FDIC continues to
market Silverton, operating the bridge bank allows correspondent services
provided to client banks to continue without disruption.
Holders of subordinated debt of Silverton Bank, N.A., will need to file a claim with the FDIC as Receiver for Silverton Bank, N.A.
All the stock of Silverton Bank, N.A., was owned by the bank holding company, Silverton Financial Services, Inc. Shareholders of equity stock, trust preferred securities, and subordinated debt of Silverton Financial Services, Inc. should direct inquiries to:
John Patton
770-805-2345 – Office
770-805-4641 – Fax
Bank stock loans will be independently reviewed and each borrower will
be contacted to determine the various options available to them and the
FDIC. The Receiver does not intend to package these loans to sell; however,
it will continue to manage them until they are resolved.
The receiver’s role is to maintain integrity and loan values in order
to return the loans to the private sector as quickly as possible
(with the exception of the bank stock loans). The process includes
packaging the loans and offering them for sale. Typically the marketing
process is completed several months after a bank’s failure.
Silverton Bridge Bank, N.A. will continue to provide correspondent services in a business as usual manner. Please continue to use your customary account manager for guidance on how to address your specific needs.
Yes. The bridge bank will continue to employ key personnel during its tenure.
See the answer to question 5 above.
You can continue to use anything that bears the Silverton name. Silverton Bridge Bank, N.A. will maintain Silverton Bank ’s routing number.
Guidance on obtaining correspondent services is provided on the Federal Reserve Board’s website (www.federalreserve.gov). The FDIC does not comment on open, insured financial institutions.
Silverton Bridge Bank, N.A. is a newly chartered institution. The FDIC is the sole shareholder, and insured deposits continue to be fully insured.
TBB Connect will remain active and processing cash items and return items will remain unchanged.
TBB Connect will remain active and can be used to initiate ACH transactions. All warehoused and in-process ACH transactions will settle as scheduled.
Silverton Bridge Bank, N.A. will use the same ABA routing number as Silverton Bank. Silverton Bridge Bank, N.A.
During its tenure, Silverton Bridge Bank, N.A. will continue to initiate and process wires.
During its tenure, the bridge bank will continue to provide this service. At the same time, FDIC is continuing with efforts to market the Silverton Bank N. A. franchise over the next few weeks. If the marketing efforts are unsuccessful, the bridge bank will continue to operate to allow sufficient time for client banks to transition services to another institution in an orderly manner. Currently, client banks can begin evaluating potential providers for correspondent services.
During the tenure of the bridge bank there will be no change
to ACH processing.
Account Information reporting will continue to be accessible via TBB Connect. Daily, weekly and monthly Account Summary statements will be available. Customized Cash Letter Availability Reports will continue to be available to all clearing customers via TBB Connect. Silverton Bridge Bank, N.A. will provide balance confirmations as needed for your financial institution’s internal and external audit needs.
There should be no change since Silverton Bridge Bank, N.A. will continue to operate all systems of Silverton Bank.
Yes. The bridge bank enables the FDIC to continue providing this service to client banks.
Yes. Silverton Bridge Bank, N.A., operations will continue to operate these services business as usual.
Depository Trust & Clearing Company (DTCC) brokered deposits will be paid out directly by the FDIC. Brokers will not need to provide documentation to the FDIC. If you are a DTCC participant broker, you must contact DTCC with any questions. If you are a customer who has a Silverton Bank, N.A. deposit through a broker, you must contact your broker with any questions.
Silverton Bank terminated purchasing unsecured Federal Funds for internal use effective April 28, 2009. Any Federal Funds purchased remaining on Silverton Bank’s books was deposited into the client bank’s DDA on April 29, 2009. Silverton Bridge Bank, N.A. will not re-offer this product.
Silverton Bridge Bank, N.A. will continue accepting Federal
Funds from client banks and selling those funds to your approved
upstream purchasing banks.
No. All monies, including interest have been deposited by Silverton Bank, N.A. into your account on April 29, 2009.
Silverton Bridge Bank, N.A. will not purchase Federal Funds from client banks. However, we will continue to sell funds to clients who have established lines of credit from the former Silverton Bank, N.A. We discontinued the agent agreement effective April 28, 2009.
If securities trades have not yet settled, we expect to complete the settlement of those trades. Also, at present we do not anticipate any changes in the way trades are settled. If a customer needs to put on new trades, we expect to do so as needed, during tenure of the bridge bank.
All accounting and correspondent services will be business as usual during the tenure of the bridge bank.
Silverton Bridge Bank, N.A. will continue to service participated loans and provide the downstream payments to the participants using the client banks’ clearing account. Investors will receive their share of the payments without interruption.
All requests for the advance of funds will be reviewed individually to determine the current status of each loan, the reason for the advance, determine if all inspections have been completed to verify work performed as billed, and all necessary documentation is current.
Yes, the Receiver will only address any unfunded portion that was a commitment on the part of Silverton.
Any current or pending litigation actions initiated by Silverton Bank, N.A., may be stayed for up to 90 days. This will allow time to review each situation on a case-by-case basis.
The Receiver will independently review any request for an extension at maturity.
The Receiver and Silverton Bridge Bank, N.A. will maintain the same process established by the bank with respect to adjustments to rates if the terms of the note allow for the adjustments and all other terms of the note have been maintained in a current status.
The Receiver does not report to credit bureaus. However, Silverton Bridge Bank, N.A, will continue to report to credit bureaus.
Each transaction will require independent review; however, it is likely that if a loan has not been booked on the records of Silverton Bank, N.A., prior to closing the Receiver will not advance funds for any new loans.
Requests for additional funding will be addressed immediately. FDIC will conduct a thorough analysis and may require additional information to perform its analysis and make a fact-based decision. Such information can include current financial statements and recent tax returns from borrowers and guarantors, and third party reports such as feasibility studies, market analyses, and appraisals. All requests will be reviewed individually to determine the loan status, the reason for the advance, and whether the funding is in the best interest of the receivership. FDIC will discuss funding decisions with participants.
There will be no changes to customer service support. Employees will continue to field customer service calls 8am – 6pm, and service partners will continue to provide customer service during non-banking hours.
Yes. There will be no changes to incentives.
There will be no immediate changes to card program features. Program features will be reviewed by the FDIC as Receiver. There may be changes once the card program is sold to another card issuer.
Continue to use the contact information previously provided.
Yes, you may continue to market cards to your customers.
There is no need to re-issue cards at this time. The FDIC plans to sell the portfolio and the next issuer will then issue new cards.
Yes. The FDIC has made arrangements with MasterCard and Visa to ensure that the cards will continue to function.
Prepaid cards will continue to have value.
Continue to secure the card stock using previously established guidelines. Once a final determination is made on the prepaid program additional information will be provided.
Yes, you may continue to sell cards and forward the funds as previously established.
Yes. The credit card program will continue to operate business as usual.
The process is just beginning, so we have no information at this time.
No. Expired cards will be replaced through the normal process.
Last Updated 05/07/2009 | Customer Service |
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