T. Rowe Price marked down the valuation of portfolio fintech startup Cross River Bank by 26% in late February.
The
digital bank struggled last year, reporting a net income of $100.8M,
down 73% YoY. Cross River Bank attributed the decrease to the shutdown
of Paycheck Protection Program loans.
- T. Rowe Price invested in Cross River Bank at a valuation of $3B last year.
- The Fort Lee, New Jersey-based firm last raised $620M through a Series D round led by Andreessen Horowitz in March 2022, bringing its total capital raised to date to $908M.
- Cross
River dismissed concerns over the bank's stability, adding that the
"true value of uninsured deposits is approximately 25%."
- Since
the markdown occurred before Silvergate Bank, Silicon Valley Bank, and
Signature Bank collapsed in March, it is possible that the valuation of
Cross River Bank has decreased much further.
