Latch, Inc. Responds to Silicon Valley Bank Crisis

Strategic Insights -

Latch, Inc. has informed investors and the public that it has approximately $3.1 million in deposits at Silicon Valley Bank (SVB), a fraction of its total cash and cash equivalents. The Company intends to transfer such deposits to an internationally recognized and reputable money center bank upon receipt. This response comes as the Federal Deposit Insurance Corporation (FDIC) has been appointed receiver of SVB due to concerns regarding the bank's liquidity and the closure of SVB by the California Department of Financial Protection and Innovation.

Key Takeaways:

  • Latch, Inc. has approximately $3.1 million in deposits at Silicon Valley Bank (SVB), which is less than 2% of its total cash and cash equivalents.
  • The Company intends to transfer such deposits to an internationally recognized and reputable money center bank upon receipt.
  • The Federal Deposit Insurance Corporation (FDIC) has been appointed receiver of SVB due to concerns regarding the bank's liquidity and the closure of SVB by the California Department of Financial Protection and Innovation.
  • The Company has approximately $215.4 million in cash and cash equivalents, with a portion of this amount ($61.4 million) held in a custodial account by U.S. Bank National Association.
  • The Company has initiated the process to appoint a different third-party advisor to manage the investment services for the custodial account held by U.S. Bank.
  • Latch does not expect a material loss related to the assets held by U.S. Bank in relation to the arrangement with SVB Asset Management.
  • The Company may experience delays in the transition of investment management services from SVB Asset Management to a different third-party advisor.

Statistics:

  • Latch, Inc. has approximately $3.1 million in deposits at Silicon Valley Bank (SVB).
  • This represents less than 2% of the Company's total cash and cash equivalents.
  • The Company has approximately $215.4 million in cash and cash equivalents.
  • A portion of this amount ($61.4 million) is held in a custodial account by U.S. Bank National Association.

Sources:

  • Latch, Inc. - Form 8-K filed with the Securities and Exchange Commission (SEC) on March 13, 2023.
  • Cybernet Data Systems, Inc. - COMTEX_426490762/2254/2023-03-13T09:10:02.

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