Goldman bought securities in sale that preceded SVB failure
Goldman Sachs in New York bought the portfolio of underwater securities that accelerated the demise of Silicon Valley Bank in Santa Clara, Calif. SVB Financial disclosed in a regulatory filing that it sold Goldman the securities – which had a $24 billion book value – for net proceeds of $21.5 billion. SVB’s disclosure of the […]
BayVanguard converting to fully stock-owned company
BayVanguard Bank in Baltimore plans to raise up to $141 million as part of its plans to convert from a mutual to a fully-stock owned company. The $845 million-asset bank disclosed in a regulatory filing that BV Financial, a newly formed holding company, plans to sell 10.6 million to 14.4 million shares of stock. The […]
Fed vice chair to review SVB supervision
A high-ranking Federal Reserve official will oversee the post-mortem for Silicon Valley Bank. The Fed said in a press release that Michael Barr, its vice chair for supervision, is leading a review of the supervision and regulation of Silicon Valley Bank. The review will be released by May 1. “The events surrounding Silicon Valley Bank […]
‘Business as usual’ at SVB bridge bank, new CEO says
Silicon Valley Bank, the bridge bank formed after Friday’s high-profile failure, is “conducting business as usual,” according to its new CEO. “I look forward to getting to know the clients of Silicon Valley Bank,” Tim Mayopoulos wrote in an email to the bank’s clients. “I come to this role with humility. I also come to […]
Somerset Savings in N.J. lining up conversion
Somerset Savings Bank in Bound Brook, N.J., plans to raise up to $111 million as part of its plans to convert from a mutual to a fully-stock owned company. The $649.5 million-asset bank disclosed in a regulatory filing that SR Bancorp, a newly formed holding company, plans to sell 8.5 million to 11.5 million shares […]
Former Fannie Mae, BofA exec to run SVB bridge bank
Tim Mayopoulos, former president and CEO of Fannie Mae, was named CEO of the bridge bank tied to Friday’s failure of Silicon Valley Bank. The Federal Deposit Insurance Corp. said in a press release that Mayopoulos, who once was general counsel at Bank of America, will oversee the newly formed Silicon Valley Bridge Bank NA. […]
Western Alliance, PacWest among banks touting health
Several banks have issued statements showing their overall financial health and sources of liquidity in the wake of two high-profile bank failures in recent days. Western Alliance Bancorp. in Phoenix, which had recently touted its financial stability, announced additional steps it had taken to improve its position. The company said in a statement that it […]
SVB reviewing options for remaining businesses
SVB Financial in Santa Clara, Calif., is exploring strategic options for its businesses that were not seized by regulators on Friday. SVB said in a press release that its board had formed a restructuring committee consisting of five independent directors to review options for the holding company and units SVB Capital and SVB Securities. SVB […]
Thoughts on confidence and concentrations
What a topsy-turvy week. In a matter of days, Silvergate shut down its crypto exchange network, then announced it would liquidate its bank. Regulators closed Silicon Valley Bank less than two days after the bank sold a large chunk of securities at a substantial loss to offset a steep drop in deposits. Next came Signature Bank and regulators’ assurances […]
HSBC buys Silicon Valley Bank UK
HSBC Holdings has bought Silicon Valley Bank UK for just over a dollar. HSBC said in a press release that SVB UK had about $6.7 billion of loans and $8.1 billion of deposits on March 10. The company said that the final calculation of the gain arising from the acquisition “will be provided in due […]
First Republic announces aid from Fed, JPMorgan Chase
First Republic Bank in San Francisco said it has improved it financial position with help from the Federal Reserve and JPMorgan Chase. The bank said in a press release that it had received additional borrowing capacity from the Fed and added financing from JPMorgan Chase. In addition to continued access to funding through the Federal […]
Regulators close Signature Bank in New York
Regulators shut down Signature Bank in New York while vowing to make all depositors of the New York bank and Silicon Valley Bank in California whole. The $110 billion-asset Signature, which had close ties to the crypto industry, was closed due to “systemic risk,” the Federal Reserve, Federal Deposit Insurance Corp., and Treasury Department said […]
LendingClub, tech firms disclose SVB exposures
LendingClub in San Francisco is among the companies that have disclosed having deposit accounts at Silicon Valley Bank at the time it was taken over by regulators. The $8 billion-asset LendingClub disclosed in a regulatory filing that its relationship with SVB on Friday was limited to $21 million of funds on deposit. LendingClub said the […]
SVB in Calif. closed by regulators
Regulators have taken over Silicon Valley Bank in Santa Clara, Calif., marking the second-largest bank failure behind Washington Mutual in 2008. The $209 billion-asset bank was closed by the California Department of Financial Protection and Innovation, which appointed the Federal Deposit Insurance Corp. as receiver. SVB, the bank’s parent company, had attempted to raise capital […]
Republic First in Pa. raising $125M via private placement
Republic First Bancorp in Philadelphia plans to raise $125 million in capital. The $5.6 billion-asset company said in a press release that Castle Creek Capital committed about $60.7 million, while an affiliate of Cohen Private Ventures pledged $30 million. The investors are buying common stock, non-voting common stock, warrants and convertible preferred stock. Castle Creek, […]
East Texas Bankshares to merge its two banks
East Texas Bankshares of Livingston plans to merge its two banks. The company said it will merge the $311 million-asset First National Bank of Jasper into the $438 million-asset First State Bank in Livingston. “We feel strongly that our customers and communities we service are really going to benefit from this merger,” Stephen Ernest, president […]
A conversation with new ICBA chairman Derek Williams
Derek Williams did not plan on a banking career. After graduating from college in 1984, he considered corporate finance. A recession, and a disappointing interaction with a stockbroker, led him to enter a training program at a community bank. “Banking wasn’t something I really started out to do,” he told The Bank Slate in a […]
SVB in Calif. sells chunk of bonds at a large loss
SVB Financial in Santa Clara, Calif., saw its shares tumble after disclosing plans to raise capital after selling a large amount of its bond portfolio at a loss. The $212 billion-asset company said in a press release that it sold about $21 billion of securities at a roughly $1.8 billion loss, or “substantially” all of […]
Former OCC official joins Anchorage Digital Bank board
Julie L. Williams, who twice served as Acting Comptroller of the Currency, has joined the board of Anchorage Digital Bank in San Francisco. Williams oversaw the OCC from April 1998 to December 1998 and from October 2004 to August 2005. Her addition “brings us additional banking industry and regulatory perspectives and experience, enhancing the value […]
Silvergate in California to voluntarily liquidate its bank
Silvergate Capital in La Jolla, Calif., plans to wind down operations and voluntarily liquidate its bank. The $11.4 billion-asset company said in a press release that the effort “is the best path forward” and would include a full repayment of all deposits. Silvergate also said it is considering how best to resolve claims and preserve […]
Newtek files $500 million shelf registration
Newtek Business Services in Boca Raton, Fla., which recently bought a bank, has filed to raise up to $500 million by selling securities and issuing debt. The company’s shelf registration includes common and preferred stock, depositary shares, subscription rights, warrants and debt securities. No timetable was set for any sales. Newtek said would use the […]
Saint Louis Bancshares raises $27M of capital
Saint Louis Bancshares in St. Louis, Mo., has raised $27 million in capital. The parent of the $824 million-asset St. Louis Bank plans to use the funds for growth initiatives. The capital included $10 million of Series A non-cumulative perpetual preferred stock, $4 million of common stock and $13 million of debt. “We believe Saint […]
Fifth Third to buy healthcare payments company
Fifth Third Bancorp in Cincinnati has agreed to buy Big Data Healthcare, a healthcare payments company. The $207 billion-asset Fifth Third did not disclose the price it will pay for the company, which adds more digital capabilities to the bank’s healthcare platform. “The healthcare industry is one of the largest and fastest growing segments of […]
Lake Shore CEO to retire in wake of reg order
The CEO of Lake Shore Bancorp will retire just weeks after the Dunkirk, N.Y., company’s bank was classified as being in a “troubled condition” by the Office of the Comptroller of the Currency. The $700 million-asset company disclosed in a regulatory filing that Daniel Reininga will also retire as president on March 10. Lake Shore […]
Fifth Third executive chairman to retire
Fifth Third Bancorp in Cincinnati will shrink the size of its board after the retirement of its executive chairman. The $207 billion-asset company disclosed in a regulatory filing that Greg Carmichael will retire at its April 18 annual meeting. Carmichael, a former Fifth Third CEO, had been chairman since February 2018. The board voted to […]