Signature Bank Responds to Inaccuracies in Wall Street Journal Article

Signature Bank (Nasdaq: SBNY), a New York-based, full-service commercial bank, addressed an article today that appeared in the Monday, January 23, 2023 edition of the Wall Street Journal titled “U.S. Home-Loan Banks Help Crypto Lenders Stem Outflows.” The article includes inaccurate statements that the Bank would like to clarify.

The headline falsely refers to Signature Bank as a “crypto lender.” Signature Bank does not lend in the crypto space, nor does it have loans that are backed by crypto assets. Additionally, the Bank does not invest, does not hold, and does not custody crypto assets. Signature Bank’s relationships with clients in the crypto space are limited to U.S. dollar-denominated deposits only.

The article also incorrectly states that Signature Bank is “rushing to stem a flood of customer withdrawals.” In the fourth quarter of 2022, the Bank announced a plan to purposely decrease deposits in the digital asset banking space by reducing the size of relationships; thus, these deposits are declining as the Bank is intentionally managing them to a lower level. Signature Bank is replacing these deposits primarily with advances from the Federal Home Loan Bank of New York (FHLBNY) in the short-term.

The Bank’s relationship with the FHLBNY spans more than two decades. Signature Bank, a well-diversified institution spanning many business lines, naturally aligns with the FHLB, particularly with its multifamily lending, and is deeply committed to providing funds to support housing within the local communities it serves. As evidence of this commitment, Signature Bank has been a top three multi-family lender in the New York metro area since 2009; in some years, the Bank was the leading multi-family lender. Signature Bank is also one of the largest financers of low-to-moderate income multifamily housing in New York. Again, this commitment to housing is completely aligned with the FHLBNY’s mission to meet the housing finance and community development needs of its members’ communities. Signature Bank’s total portfolio for multifamily lending was $19.5 billion as of December 31, 2022, and the Bank originated $5.4 billion over the course of the last year.