Signature Bank (SBNY) Issues Updated Financial Figures as of March 8, 2023; Reiterates Strong Financial Position and Limited Digital-Asset Related Deposit Balances
Signature Bank (Nasdaq: SBNY), a New York-based, full-service commercial bank, announced today updated financial figures as of March 8, 2023 and reiterated its strong, well-diversified financial position and limited digital-asset related deposit balances in the wake of industry developments.
To this end, Signature Bank has:
- A proven, stable commercial banking business model with in excess of $100 billion in well-diversified assets across nine national business lines and nearly 130 commercial banking teams spanning its metropolitan New York area and West Coast footprint;
- A diversified deposit mix, with more than 80 percent of deposits coming from middle market businesses, such as law firms, accounting practices, healthcare companies, manufacturing companies and real estate management firms;
- A high level of capital as evidenced by a common equity tier 1 risk-based capital ratio of 10.42 percent, which is well in excess of regulatory requirements, as of year-end 2022;
- Investment-grade long- and short-term credit ratings, which were recently affirmed by Fitch Ratings, Kroll Bond Rating Agency (KBRA) and Moody’s Investors Services; and,
- A strong liquidity position, with the following financial balances (unaudited) as of March 8, 2023:
- Cash held on balance sheet of approximately $4.54 billion
- Borrowing balances (excluding subordinated debt) of $6.58 billion, with additional capacity of approximately $29.01 billion
- Marketable liquid securities of approximately $26.41 billion
- Deposit balances of $89.17 billion, which are up $576 million since year-end 2022. This includes the deliberate reduction in digital asset-related client deposits of $1.27 billion, resulting in a balance of $16.52 billion in digital asset-related client deposits
- Loan balances of $71.81 billion, which are lower by $1.99 billion since year-end 2022, as the Bank executes on its previously announced strategy to reduce loan balances in its larger business lines; and,
- Over the course of this week and thus far for the quarter, we have repurchased $55.0 million of common stock within our previously disclosed share repurchase authorization.
Furthermore, in January 2023, the Bank announced a 25 percent increase in its common stock dividend to $2.80 per share annually, the first increase since the dividend was established in 2018. For more information on Signature Bank’s financial position, review its Form 10-K for the period ended December 31, 2022, which can be found here.
“We want to make it clear again that Signature Bank is a well-diversified, full-service commercial bank with more than two decades of history and solid performance serving middle market businesses. We have built a strong reputation serving commercial clients through nine business lines and reached in excess of $100 billion in assets by continually executing our single-point-of-contact, relationship-based model where banking teams are capable of meeting all client needs,” said Joseph J. DePaolo, Signature Bank Co-founder and Chief Executive Officer.
“As a reminder, Signature Bank does not invest in, does not trade, does not hold, does not custody and does not lend against or make loans collateralized by digital assets,” DePaolo concluded.
“We have repeatedly communicated that our relationships in the digital asset space are limited to U.S. dollar deposits only, and we remain fully committed to executing on our plan to deliberately reduce these deposits further. Since we opened our doors, we have been a ‘deposit-first’ institution and have always been committed to our depositors’ safety, first and foremost. As shown by our current metrics, we intentionally maintain a high level of capital, strong liquidity profile and solid earnings, which continues to differentiate us from competitors, especially during challenging times,” added Eric R. Howell, President and Chief Operating Officer.