New York-based Signature Bank has added $2.5 billion in non-interest bearing deposits in the fourth quarter 2020, falling just half a billion dollars shy of Silvergate’s $2.9 billion in new deposits from digital currency customers in Q4.
Cryptocurrency firms are often a rich source of low-cost deposits for the few banks that openly serve the sector. As such, analysts have paid close attention to non-interest bearing deposit growth at Signature. These deposits represent nearly 30% of total deposits at the bank.
Total deposits increased at the bank quarter over quarter by $8.98 billion, with money market deposits representing the lion’s share.
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Signature’s average cost of deposits and average cost of funds for the fourth quarter of 2020 decreased by 66 and 69 basis points to 0.42% and 0.57%, respectively.