Roku says deposits at Silicon Valley Bank ‘largely uninsured’

In a regulatory filing, Roku (ROKU) said it is aware that Silicon Valley Bank (SIVB) was closed by the California Department of Financial Protection and Innovation, which appointed the FDIC as receiver. According to the FDIC, all insured depositors of SVB will have full access to their insured deposits no later than Monday morning, March 13. The FDIC will pay uninsured depositors an advance dividend within the next week. Uninsured depositors will receive a receivership certificate for the remaining amount of their uninsured funds. As the FDIC sells the assets of SVB, future dividend payments may be made to uninsured depositors. The company has total cash and cash equivalents of approximately $1.9B as of March 10. Approximately $487M is held at SVB, which represents approximately 26% of the company’s cash and cash equivalents balance as of March 10. Approximately $1.4B of the company’s cash and cash equivalents is distributed across multiple large financial institutions. The company’s deposits with SVB are largely uninsured. At this time, the company does not know to what extent the company will be able to recover its cash on deposit at SVB. Notwithstanding the closure of SVB, the Company continues to believe that its existing cash and cash equivalents balance and cash flow from operations will be sufficient to meet its working capital, capital expenditures, and material cash requirements from known contractual obligations for the next twelve months and beyond.