Amid financial crisis, Synovus says the Columbus-based bank is stable
In light of the collapse of three banks in the last week, the Columbus-based Synovus bank reassured customers that the financial institution is stable, according to a statement to the Ledger-Enquirer.
Silicon Valley Bank collapsed historically on March 10 after a bank run spurred on by a downturn in the tech industry. The collapse of Silicon Valley Bank, Silvergate and Signature Bank occurred because the banks had concentrated exposure to industries such as tech, crypto and venture capital, according to the statement by Synovus.
The Columbus-based bank has little to no exposure in crypto assets or the venture capital industry, the statement said.
“We have a strong balance sheet with good liquidity and capital strength,” reads the statement. “And our deposit base is growing and diverse.”
After the banks collapsed this past week, there was growing concern that the banking industry was seeing a crisis similar to what happened in 2008 in the lead up to the Great Recession.
The current crisis is different from what occurred in 2008 because it began with three banks, according to Synovus. The 2008 financial crisis was attributed to over exposure in subprime mortgages across the financial industry.
Federal agencies announced Monday that all customers of Silicon Valley Bank and Signature Bank will be made whole and that there would be “no losses borne by the taxpayer.”
The Federal Reserve also announced that it will be making additional funding available to eligible financial institutions to help assure that banks can meet depositors’ needs.
After Synovus’ stock dropped to $28.26 per share on Monday morning from $34.70 on Friday, the company’s stock rallied throughout the day on Monday. It is currently up 3.95% Tuesday morning, following the trend of other U.S. stocks.
Synovus is continuing to execute its growth plan that was designed to withstand economic ebbs and flows, according to the statement.
“Our Synovus team is committed to operating our bank with exceptional service during all economic environments,” reads the statement.
