The key is balance, Marshall said, noting that segment is one the bank sees as a growth opportunity. Given that the bank's backyard is home base for much of the state's venture funds and tech startups, Marshall said the bank has “developed an expertise” serving that industry, via its Technology Industry Group. ![]() Indeed, diversification has been critical to the success of Bank of Ann Arbor, said Tim Marshall, CEO of the Ann Arbor-based lender, which has about $3 billion in assets and stands as the fifth largest bank headquartered in Michigan. “Most community banks don't have those (industry) concentrations,” he said. Silicon Valley Bank’s almost exclusive focus on serving the banking needs of tech startups and venture firms wound up being a part of its downfall, Tierney noted. “Michigan banks are in a really strong position,” said Michael Tierney, president and CEO of the East Lansing-based Community Bankers of Michigan trade group. Still, industry executives say Michigan banks, in particular, are in a position to weather the storm, and that the industry-specific concentration that doomed SVB will not befall banks locally. At the end of last year, SVB had more than $175 billion in deposits - the vast majority of which were uninsured. Silicon Valley Bank collapsed into FDIC receivership Friday, after its long-established customer base of tech startups grew concerned and yanked deposits. Rapundalo was could not say what companies in Michigan have exposure to the bank’s collapse. Since Friday, MichBio has been monitoring the situation and is in contact with state and federal policymakers,” Rapundalo wrote. ![]() history, we know a number of MichBio’s member companies are directly affected by this concerning situation. “As the second largest bank failure in U.S. ![]() Large regional banks with a heavy presence in Michigan including Comerica, Huntington and Fifth Third all saw their stock prices decline by double digit percentages in mid-day Monday trading.īeyond the banking industry, SVB’s collapse “has been a major shock to life sciences companies and the whole ecosystem in Michigan and across the United States,” Stephen Rapundalo, the president and CEO of the statewide life sciences trade group MichBio wrote Monday in a bulletin to members. ![]() The KBW Bank Index of 24 stocks plunged the most since March 2020. “Our cautious view on the (banking) sector is informed by our view that higher for longer (interest) rates are bad news for banks,” reads a Bank of America research note released Monday morning. Analysts were less than hopeful that the industry would recover in the short term given the upward trajectory of interest rates. But a series of macroeconomic factors and poor risk management practices led to the collapse of Silicon Valley late last week following an old-fashioned bank run.įederal regulators on Sunday announced they would insure all the deposits of the bank’s customers.īut while bankers and venture investors are expressing confidence that the issues at Silicon Valley Bank - as well as New York-based Signature Bank, another lender shut down by the government over the weekend - are isolated incidents, bank stocks were down significantly Monday, triggering trading halts for a handful of banks including Comerica Bank. Once the 16th-largest bank in the United States with about $209 billion in assets - just larger than Fifth Third Bank - the California-based lender grew by focusing almost exclusively on the startup technology sector in the Bay Area and beyond. Even as financial stocks tumbled, Michigan bankers and venture capitalists said they’re operating “business as usual” on Monday, the first business day since the collapse of Silicon Valley Bank.
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