March 26, 2009

Silverton Bank is now under close scrutiny by federal regulators and has entered into a sweeping business restructuring agreement that will take effect in the coming months.The Office of the Comptroller of the Currency, or OCC, publicly announced a consent order on March 23 for Atlanta-based Silverton Bank, which works as a bank for other banks.Such orders are the strongest regulatory censure by banking industry regulators, except for seizing a bank directly.

At $3 billion in total assets, it is one of the largest banks in Georgia to receive a consent order.Silverton’s consent order was issued on Feb. 26, and could have far reaching implications for Silverton’s nearly 1,500 customers nationwide.Unlike other banks, Silverton serves only as a bank for banks, providing lines of credit for banks’ holding companies and directors, buying portions of loans made by smaller banks and acting as the credit card program manager for bank customers. Its shareholders are also exclusively its customers.