WASHINGTON – About 400 banks will lose some $1.4 billion of capital in Silverton Bank, an Atlanta-based correspondent bank that was seized by the FDIC on Friday.
Silverton, which had $4.1 billion in assets, is a so-called bankers’ bank and does not take deposits directly from the public or make loans to consumers, but provides services to around 1,400 banks, such as credit-card operations, investments and loan purchases.
The losses are similar to the ones being accrued by credit union owners of WesCorp FCU, which was seized by NCUA on March 20.
Silverton was one of three banks seized by regulators Friday, making a total of 32 bank failures for the year, exceeding last year’s total of 25. The other two banks seized, making a total of 32 failures for the year, were $45 million Citizens Community Bank in Ridgewood, N.J., and $300 million America West Bank in Layton, Utah.
