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.
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.
