Roku has $487 million of cash and cash equivalents in uninsured deposits at failed Silicon Valley Bank, the streaming media company said in a filing on Friday with the Securities and Exchange Commission.
About 26% of Roku’s $1.9 billion in cash was deposited with SVB, which was placed into receivership by the Federal Deposit Insurance Corp. midday Friday.
“At this time, the Company does not know to what extent the Company will be able to recover its cash on deposit at SVB,” Roku said in a press release.
Probably see a few more. On the other hand, I suspect the losses on uninsured deposits won’t be too big.
The FDIC says SVB bank has $209 billion in assets and $175 billion in total deposits. What they don’t talk about is the other liabilities of the bank. Looking at their last financial statement as of the end of December 2022, they had about $22 billion in liabilities other than deposits.
On the other side of the ledger, at the end of last year, they had $91 billion in assets they claimed to be holding to maturity, but the then-current FMV was $76 billion. So that’s a $15 billion difference. I suspect this is what caught the FDIC’s eye.
Taking the FDIC’s asset number of $209 billion and subtracting off this FMV adjustment leaves $194 billion in assets. Deposits and liabilities total $197 billion. If everyone shared the shortfall equally - creditors and depositors - they’d get 98 cents on the dollar.
While unpleasant for all involved, that shouldn’t threaten the survival of any depositor.