Signature Bank in New York plans to dial down its lending in coming months.
The $116 billion-asset bank expects quarterly loan growth of $1 billion to $3 billion over the rest of this year. It previously projected increasing the size of its loan portfolio by $4 billion to $7 billion.
Commercial real estate and fund banking are the areas where Signature plans to tap the brakes, CEO Joe DePaolo said during a Tuesday conference call to discuss second-quarter results.
The move comes at a time when deposits shrank by about 5% in the second quarter from a quarter earlier, to $104 billion.
Signature lost about $2.4 billion in digital currency assets during the second quarter as crypto customers withdrew funds.
“Unprecedented” interest rate hikes by the Federal Reserve “could make it tough on the deposits side,” DePaolo added. “We’re just being cautious.”