Signature Bank released a new comment Thursday on its financial strength after its share price was caught up in heavy losses by two other financial firms.
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It fell 8.4% as investors reacted to declining exposure to digital currencies.
The New York-based signatory bank said it maintains “a strong and well-diversified financial position and limited digital asset-related deposit balances in light of industry developments.”
Developments in these industries include moves by Silvergate Capital.
To Downsize Crypto Banking Division As We Work To Keep The Business AliveSilvergate’s stock fell nearly 23%.
Meanwhile, SVB financial stocks
46% reduction Heading for biggest one-day loss since dotcom bankruptcyafter the parent company of Santa Clara, Calif.-based Silicon Valley Bank revealed a $1.8 billion loss and plans to sell $2.25 billion worth of stock to bolster its financial position.
As a traditional commercial bank serving business customers. Signature Bank can provide deposit services for customers’ digital assets, but it is not a crypto bank.
The company said it does not invest in, trade in, hold its own balance sheet, or hold custody of digital assets and does not make loans or loans secured by such assets.
Signature Bank CEO Joseph J. DePaolo said:
The company disclosed deposit balances of $89.2 billion, up $576 million from Dec. 31. This includes a $1.3 billion “intentional” reduction in digital asset-related securities.
The company currently holds $16.5 billion in digital asset-related deposits and $4.54 billion in cash.
More than 80% of deposits come from medium-sized companies. Banks also bought back $55 million from him so far in the first quarter.
Jefferies analyst Casey Hare reiterated his hold rating for Signature Bank, saying it “shows a stable trend despite the volatile crypto environment.”
So far this quarter, Signature Bank has added $600 million to its deposits.
This statement will be issued just one week after Signature Bank. Provide mid-quarter updates of its “orderly cipher unwinding”.
Also read: Odeon cuts Bank of America rating on weak consumer spending outlook
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