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May 17, 2022, 10:02 a.m. EDT

Signature Bank stock rallies a day after deposit balance update

Signature Bank (NAS:SBNY) jumped 4.7% on Tuesday, a day after the bank provided a mid-quarter update including a 1% drop in deposits, a 3% rise in loans and reiterated its second-quarter asset growth target of $4 billion to $7 billion. Jefferies analyst Casey Haire said in a research note that Signature Bank's deposit balance updated "is likely strong enough to allay the worse case fears about the bank's $29 billion crypto franchise." However, Haire also noted that deposit growth will have to start moving into positive territory again for the bank to "sustain its investment thesis as a growth story with asset sensitivity kicker." Signature Bank stock is down 39% in 2022, compared to a drop of 13% by the Financial Select Sector SPDR Fund (PSE:XLF) .

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