Silvergate Capital Corporation (“Silvergate” or “Company”)
(NYSE:SI) and its wholly-owned subsidiary, Silvergate Bank
(“Bank”), today announced financial results for the three months
ended March 31, 2022.
First Quarter 2022 Highlights
- Net income for the quarter was $27.4 million, compared to $21.4
million for the fourth quarter of 2021, and $12.7 million for the
first quarter of 2021
- Net income available to common shareholders for the quarter was
$24.7 million, or $0.79 per diluted common share, compared to net
income of $18.4 million, or $0.66 per diluted share, for the fourth
quarter of 2021, and net income of $12.7 million, or $0.55 per
diluted share, for the first quarter of 2021
- Digital currency customers grew to 1,503 at March 31, 2022,
compared to 1,381 at December 31, 2021, and 1,104 at March 31,
2021
- The Silvergate Exchange Network (“SEN”) handled $142.3 billion
of U.S. dollar transfers in the first quarter of 2022, a decrease
of 35% compared to $219.2 billion in the fourth quarter of 2021,
and a decrease of 15% compared to $166.5 billion in the first
quarter of 2021; Cumulative U.S. dollar transfers on the SEN
crossed $1 trillion dollars
- Total SEN Leverage commitments were $1,070.1 million at March
31, 2022, compared to $570.5 million at December 31, 2021, and
$196.5 million at March 31, 2021
- Digital currency customer related fee income for the quarter
was $8.9 million, compared to $9.3 million for the fourth quarter
of 2021, and $7.1 million for the first quarter of 2021
- Average digital currency customer deposits grew to $14.7
billion during the first quarter of 2022, compared to $13.3 billion
during the fourth quarter of 2021
- Closed acquisition of select blockchain-based payment
technology assets from the Diem Group, further enhancing
Silvergate’s existing stablecoin infrastructure
Alan Lane, president and chief executive officer of Silvergate,
commented, “We started off 2022 on a strong note, driven by the
power of our platform and continued progress on our strategic
initiatives. I’m particularly pleased with our first quarter
results when you consider that this was one of the most challenging
periods for the broader crypto ecosystem since the beginning of the
pandemic. While volume on the Silvergate Exchange Network was
impacted by broader industry trends, I remain encouraged by the
continued growth we saw in customers, SEN Leverage commitments, and
average deposits, which reached a record $14.7 billion. To advance
our customer-first approach, we continued to invest in our
strategic initiatives, including stablecoin infrastructure through
the acquisition of select blockchain-based payment technology
assets from the Diem Group, and the launch of the Euro SEN. I look
forward to the rest of 2022 and I am excited for what lies ahead
for Silvergate.”
As of or for the Three Months
Ended
March 31, 2022
December 31,
2021
March 31, 2021
Financial Highlights
(Dollars in thousands, except per
share data)
Net income
$
27,386
$
21,391
$
12,710
Net income available to common
shareholders
$
24,698
$
18,375
$
12,710
Diluted earnings per common share
$
0.79
$
0.66
$
0.55
Return on average assets (ROAA)(1)
0.60
%
0.50
%
0.71
%
Return on average common equity
(ROACE)(1)
6.87
%
7.25
%
9.76
%
Net interest margin(1)(2)
1.36
%
1.11
%
1.33
%
Cost of deposits(1)
0.00
%
0.00
%
0.00
%
Cost of funds(1)
0.01
%
0.01
%
0.02
%
Efficiency ratio(3)
46.74
%
52.08
%
63.03
%
Total assets
$
15,798,013
$
16,005,495
$
7,757,152
Total deposits
$
13,396,162
$
14,290,628
$
7,002,371
Book value per common share
$
42.77
$
46.55
$
28.75
Tier 1 leverage ratio
9.68
%
11.07
%
9.68
%
Total risk-based capital ratio
45.01
%
57.08
%
54.79
%
________________________ (1)
Data has been annualized.
(2)
Net interest margin is a ratio calculated
as net interest income, on a fully taxable equivalent basis for
interest income on tax-exempt securities using the federal
statutory tax rate of 21.0%, divided by average interest earning
assets for the same period.
(3)
Efficiency ratio is calculated by dividing
noninterest expenses by net interest income plus noninterest
income.
Digital Currency Initiative
At March 31, 2022, the Company’s digital currency customers
increased to 1,503 from 1,381 at December 31, 2021, and from 1,104
at March 31, 2021. At March 31, 2022, prospective digital currency
customer leads in various stages of the customer onboarding process
and pipeline was above 300. For the first quarter of 2022, $142.3
billion of U.S. dollar transfers occurred on the SEN, a 35%
decrease from $219.2 billion transfers in the fourth quarter of
2021, and a decrease of 15% compared to $166.5 billion in the first
quarter of 2021. Based on digital currency industry transaction
data provided by Coin Metrics, bitcoin and ether dollar trading
volumes decreased by 33% during the first quarter of 2022 compared
to the fourth quarter of 2021.
Results of Operations, Quarter Ended March 31, 2022
Net Interest Income and Net Interest Margin Analysis (Taxable
Equivalent Basis)
The Company’s securities portfolio includes tax-exempt municipal
bonds with tax-exempt income from these securities calculated and
presented below on a taxable equivalent basis. Net interest income,
net interest spread and net interest margin are presented on a
taxable equivalent basis to consistently reflect income from
taxable securities and tax-exempt securities based on the federal
statutory tax rate of 21.0%.
Net interest income on a taxable equivalent basis totaled $54.0
million for the first quarter of 2022, compared to $40.2 million
for the fourth quarter of 2021, and $23.5 million for the first
quarter of 2021.
Compared to the fourth quarter of 2021, net interest income
increased $13.8 million, due to increased interest income, while
interest expense remained flat. Average total interest earning
assets increased by $1.7 billion for the first quarter of 2022
compared to the fourth quarter of 2021, primarily due to increased
securities offset by decreased interest earning deposits in other
banks. The average yield on interest earning assets increased from
1.11% for the fourth quarter of 2021 to 1.37% for the first quarter
of 2022, primarily due to a higher proportion of securities and a
lower proportion of interest earning deposits in other banks as a
percentage of interest earning assets, as well as higher yields on
recently purchased securities. Average interest bearing liabilities
increased $70.2 million for the first quarter of 2022 compared to
the fourth quarter of 2021, due to increased FHLB advances. The
average rate on total interest bearing liabilities decreased from
1.17% for the fourth quarter of 2021 to 0.85% for the first quarter
of 2022, primarily due to a higher proportion of lower cost FHLB
borrowings as a percentage of interest bearing liabilities.
Compared to the first quarter of 2021, net interest income
increased $30.5 million due to increased interest income, with the
largest driver being higher balances of securities, while interest
expense remained relatively flat. Average total interest earning
assets increased by $9.0 billion for the first quarter of 2022
compared to the first quarter of 2021, primarily due to increased
securities balances funded by the growth in digital currency
related deposits. The average yield on total interest earning
assets increased from 1.35% for the first quarter of 2021 to 1.37%
for the first quarter of 2022, primarily due to a higher proportion
of securities and a lower proportion of interest earning deposits
in other banks as a percentage of interest earning assets,
partially offset by lower yields on the securities portfolio due to
the majority of the securities in the portfolio being acquired in
the last 12 months within a lower rate environment. Average
interest bearing liabilities increased $30.6 million for the first
quarter of 2022 compared to the first quarter of 2021, due to
increased FHLB advances offset by lower balances of interest
bearing deposits. The average rate on total interest bearing
liabilities decreased from 0.89% for the first quarter of 2021 to
0.85% for the first quarter of 2022, primarily due to a higher
proportion of lower cost FHLB borrowings as a percentage of
interest bearing liabilities.
Net interest margin for the first quarter of 2022 was 1.36%,
compared to 1.11% for the fourth quarter of 2021, and 1.33% for the
first quarter of 2021. The increase in the net interest margin
compared to the fourth quarter of 2021 was primarily due to a
higher proportion of securities and a lower proportion of interest
earning deposits in other banks as a percentage of interest earning
assets, as well as higher yields on recently purchased securities.
The increase in the net interest margin compared to the first
quarter of 2021 was primarily due to a higher proportion of
securities and a lower proportion of interest earning deposits in
other banks as a percentage of interest earning assets, partially
offset by lower yields on the securities portfolio.
Three Months Ended
March 31, 2022
December 31, 2021
March 31, 2021
Average Outstanding
Balance
Interest Income/
Expense
Average Yield/ Rate
Average Outstanding
Balance
Interest Income/
Expense
Average Yield/ Rate
Average Outstanding
Balance
Interest Income/
Expense
Average Yield/ Rate
(Dollars in thousands)
Assets
Interest earning assets:
Interest earning deposits in other
banks
$
3,067,054
$
1,385
0.18
%
$
5,282,661
$
2,166
0.16
%
$
4,450,110
$
1,279
0.12
%
Taxable securities
8,492,768
17,779
0.85
%
5,735,932
10,178
0.70
%
850,558
3,592
1.71
%
Tax-exempt securities(1)
2,887,072
16,689
2.34
%
1,728,862
9,454
2.17
%
270,711
2,146
3.21
%
Loans(2)(3)
1,644,604
18,287
4.51
%
1,641,345
17,892
4.32
%
1,559,989
16,597
4.31
%
Other
41,751
203
1.97
%
34,490
777
8.94
%
15,331
143
3.78
%
Total interest earning assets
16,133,249
54,343
1.37
%
14,423,290
40,467
1.11
%
7,146,699
23,757
1.35
%
Noninterest earning assets
500,299
295,841
72,155
Total assets
$
16,633,548
$
14,719,131
$
7,218,854
Liabilities and Shareholders’
Equity
Interest bearing liabilities:
Interest bearing deposits
$
76,663
$
21
0.11
%
$
77,564
$
27
0.14
%
$
117,228
$
46
0.16
%
FHLB advances and other borrowings
71,111
70
0.40
%
12
—
0.00
%
—
—
—
Subordinated debentures
15,846
252
6.45
%
15,843
249
6.24
%
15,832
245
6.28
%
Total interest bearing liabilities
163,620
343
0.85
%
93,419
276
1.17
%
133,060
291
0.89
%
Noninterest bearing liabilities:
Noninterest bearing deposits
14,781,601
13,377,552
6,526,555
Other liabilities
36,770
49,023
30,911
Shareholders’ equity
1,651,557
1,199,137
528,328
Total liabilities and shareholders’
equity
$
16,633,548
$
14,719,131
$
7,218,854
Net interest spread(4)
0.52
%
(0.06
) %
0.46
%
Net interest income, taxable equivalent
basis
$
54,000
$
40,191
$
23,466
Net interest margin(5)
1.36
%
1.11
%
1.33
%
Reconciliation to
reported net interest income:
Adjustments for taxable equivalent
basis
(3,505
)
(1,985
)
(451
)
Net interest income, as reported
$
50,495
$
38,206
$
23,015
________________________
(1)
Interest income on tax-exempt securities
is presented on a taxable equivalent basis using the federal
statutory tax rate of 21.0% for all periods presented.
(2)
Loans include nonaccrual loans and loans
held-for-sale, net of deferred fees and before allowance for loan
losses.
(3)
Interest income includes amortization of
deferred loan fees, net of deferred loan costs.
(4)
Net interest spread is the difference
between interest rates earned on interest earning assets and
interest rates paid on interest bearing liabilities.
(5)
Net interest margin is a ratio calculated
as annualized net interest income, on a taxable equivalent basis,
divided by average interest earning assets for the same period.
Provision for Loan Losses
The Company recorded a reversal of provision for loan losses of
$2.5 million for the first quarter of 2022, compared to no
provision for the fourth quarter of 2021, or for the first quarter
of 2021. The reversal in the first quarter of 2022 was due to the
changes in loan product and segment mix in the portfolio, including
the net impact of the sale of approximately $150.8 million of real
estate loans, partially offset by an increase in SEN Leverage
loans.
Noninterest Income
Noninterest income for the first quarter of 2022 was $9.5
million, a decrease of $1.6 million, or 14.5%, from the fourth
quarter of 2021. The primary reasons for this decrease were a $0.6
million increase in loss on sale of securities and a $0.4 million,
or 4.4%, decrease in deposit related fees as a result of lower
foreign exchange fees attributed in part to the geopolitical
environment, which negatively impacted trading volume.
Additionally, there was a $0.5 million decrease in other income due
to a gain on sale of other assets of $0.4 million for the first
quarter of 2022 compared to a gain on sale of other assets of $0.9
million recognized in the fourth quarter of 2021.
Noninterest income for the first quarter of 2022 increased by
$1.4 million, or 16.8%, compared to the first quarter of 2021. This
increase was primarily due to a $1.8 million, or 25.9%, increase in
deposit related fees and a $0.4 million increase in other income
due to a gain on sale of other assets, offset by a $0.3 million, or
31.8%, decrease in mortgage warehouse fee income and a $0.6 million
loss on sale of securities recognized in the first quarter of
2022.
Three Months Ended
March 31, 2022
December 31,
2021
March 31, 2021
(Dollars in thousands)
Noninterest income:
Deposit related fees
$
8,968
$
9,378
$
7,124
Mortgage warehouse fee income
651
684
954
(Loss) gain on sale of securities, net
(605
)
56
—
Other income
436
937
12
Total noninterest income
$
9,450
$
11,055
$
8,090
Noninterest Expense
Noninterest expense totaled $28.0 million for the first quarter
of 2022, an increase of $2.4 million, or 9.2%, compared to the
fourth quarter of 2021, and an increase of $8.4 million, or 42.9%,
compared to the first quarter of 2021. The increase in noninterest
expense compared to prior quarter was primarily due to an increase
in salaries and benefits expense attributable to increased
headcount as part of organic growth as well as increases in
communications and data processing costs all of which support the
Company’s strategic initiatives. Other general and administrative
expenses increased primarily due to an increase in the provision
for off-balance sheet commitments related to SEN Leverage loans.
This was partially offset by a decrease in federal deposit
insurance expense due to a slower growth rate in deposit levels.
The increase in noninterest expense from the first quarter of 2021
was primarily driven by an increase in salaries and employee
benefits attributable to increased headcount as well as increases
in communications and data processing, professional services, and
other general and administrative of costs all of which support
organic growth and the Company’s strategic initiatives.
Three Months Ended
March 31, 2022
December 31,
2021
March 31, 2021
(Dollars in thousands)
Noninterest expense:
Salaries and employee benefits
$
15,544
$
13,815
$
10,990
Occupancy and equipment
586
728
614
Communications and data processing
2,762
1,862
1,621
Professional services
2,954
2,994
1,717
Federal deposit insurance
1,762
3,100
2,296
Correspondent bank charges
828
634
497
Other loan expense
384
364
174
Other general and administrative
3,198
2,159
1,697
Total noninterest expense
$
28,018
$
25,656
$
19,606
Income Tax Expense (Benefit)
Income tax expense was $7.0 million for the first quarter of
2022, compared to $2.2 million for the fourth quarter of 2021, and
a benefit of $1.2 million for the first quarter of 2021. Our
effective tax rate for the first quarter of 2022 was 20.4%,
compared to 9.4% for the fourth quarter of 2021, and (10.5)% for
the first quarter of 2021. The tax expense and effective tax rate
for the first quarter of 2022 was impacted by significant increases
in tax-exempt income earned on certain municipal bonds compared to
the fourth quarter of 2021 and the first quarter of 2021. In
addition, the lower effective tax rates for the fourth quarter of
2022 and the first quarter of 2021, were due to higher excess tax
benefits recognized on the exercise of stock options.
Balance Sheet
Deposits
At March 31, 2022, deposits totaled $13.4 billion, a decrease of
$0.9 billion, or 6.3%, from December 31, 2021, and an increase of
$6.4 billion, or 91.3%, from March 31, 2021. Noninterest bearing
deposits totaled $13.3 billion, representing approximately 99.5% of
total deposits at March 31, 2022, a decrease of $0.9 billion from
the prior quarter end, and a $6.4 billion increase compared to
March 31, 2021.
Our continued growth has been accompanied by significant
fluctuations in the levels of our deposits, in particular our
deposits from customers operating in the digital currency industry.
The Bank’s average total digital currency customer deposits during
the first quarter of 2022 amounted to $14.7 billion, with the high
and low daily total digital currency deposit levels during such
time being $16.2 billion and $13.2 billion, respectively, compared
to an average of $13.3 billion during the fourth quarter of 2021,
and high and low daily deposit levels of $16.0 billion and $10.2
billion, respectively.
Demand for new deposit accounts is generated by the Company’s
banking platform for innovators that includes the SEN, which is
enabled through Silvergate’s proprietary API, and other cash
management solutions. These tools enable Silvergate’s customers to
grow their businesses and scale operations. The following table
sets forth a breakdown of the Company’s digital currency customer
base and the deposits held by such customers at the dates noted
below:
March 31, 2022
December 31, 2021
March 31, 2021
Number of Customers
Total Deposits(1)
Number of Customers
Total Deposits(1)
Number of Customers
Total Deposits(1)
(Dollars in millions)
Digital currency exchanges
96
$ 7,960
94
$ 8,288
85
$ 2,993
Institutional investors
966
3,109
894
4,220
695
2,166
Other customers
441
2,126
393
1,603
324
1,634
Total
1,503
$ 13,195
1,381
$ 14,111
1,104
$ 6,793
________________________
(1) Total deposits may not foot due to rounding.
The weighted average cost of deposits for the first quarter of
2022, the fourth quarter of 2021 and the first quarter of 2021 was
0.00%.
Three Months Ended
March 31, 2022
December 31, 2021
March 31, 2021
Average Balance
Average Rate
Average Balance
Average Rate
Average Balance
Average Rate
(Dollars in thousands)
Noninterest bearing demand accounts
$
14,781,601
—
$
13,377,552
—
$
6,526,555
—
Interest bearing accounts:
Interest bearing demand accounts
5,531
0.07
%
7,660
0.05
%
42,197
0.13
%
Money market and savings accounts
70,632
0.11
%
69,364
0.14
%
74,318
0.16
%
Certificates of deposit
500
0.81
%
540
0.73
%
713
0.57
%
Total interest bearing deposits
76,663
0.11
%
77,564
0.14
%
117,228
0.16
%
Total deposits
$
14,858,264
0.00
%
$
13,455,116
0.00
%
$
6,643,783
0.00
%
Loan Portfolio
Total loans, including net loans held-for-investment and loans
held-for-sale, were $1.7 billion at March 31, 2022, a decrease of
$104.3 million, or 5.9%, from December 31, 2021, and an increase of
$50.5 million, or 3.1%, from March 31, 2021. In March 2022, the
Company sold commercial real estate, multi-family real estate and
construction loans, which decreased overall loans by approximately
$150.8 million, net after participating a portion of the loans,
compared to the fourth quarter of 2021.
March 31, 2022
December 31,
2021
March 31, 2021
(Dollars in thousands)
Real estate loans:
One-to-four family
$
94,161
$
105,098
$
171,045
Multi-family
9,368
56,751
74,003
Commercial
80,279
210,136
287,411
Construction
—
7,573
5,172
Commercial and industrial(1)
434,960
335,862
118,598
Reverse mortgage and other
1,137
1,410
1,346
Mortgage warehouse
125,435
177,115
76,014
Total gross loans held-for-investment
745,340
893,945
733,589
Deferred fees, net
(1,884
)
275
1,717
Total loans held-for-investment
743,456
894,220
735,306
Allowance for loan losses
(4,442
)
(6,916
)
(6,916
)
Loans held-for-investment, net
739,014
887,304
728,390
Loans held-for-sale(2)
937,140
893,194
897,227
Total loans
$
1,676,154
$
1,780,498
$
1,625,617
________________________
(1)
Commercial and industrial loans includes $435.0 million, $335.9
million and $117.3 million of SEN Leverage loans as of March 31,
2022, December 31, 2021 and March 31, 2021, respectively.
(2)
Loans held-for-sale includes $914.2 million, $893.2 million and
$897.2 million of mortgage warehouse loans as of March 31, 2022,
December 31, 2021 and March 31, 2021, respectively.
Asset Quality and Allowance for Loan Losses
The allowance for loan losses was $4.4 million at March 31,
2022, compared to $6.9 million at December 31, 2021 and March 31,
2021. The ratio of the allowance for loan losses to total loans
held-for-investment at March 31, 2022 was 0.60%, compared to 0.77%
and 0.94% at December 31, 2021 and March 31, 2021, respectively.
The decrease in this ratio at March 31, 2022 was primarily due to
the lower risk profile of the loan portfolio as a result of the
loan sale discussed above.
Nonperforming assets totaled $3.6 million, or 0.02% of total
assets, at March 31, 2022, a decrease of $0.4 million from $4.0
million, or 0.03% of total assets at December 31, 2021.
Nonperforming assets decreased $1.6 million, from $5.3 million, or
0.07%, of total assets at March 31, 2021.
March 31, 2022
December 31,
2021
March 31, 2021
Asset Quality
(Dollars in thousands)
Nonperforming Assets:
Nonaccrual loans
$
3,632
$
4,003
$
5,269
Troubled debt restructurings
$
1,703
$
1,713
$
1,484
Other real estate owned, net
—
—
—
Nonperforming assets
$
3,632
$
4,003
$
5,269
Asset Quality Ratios:
Nonperforming assets to total assets
0.02
%
0.03
%
0.07
%
Nonaccrual loans to total loans(1)
0.49
%
0.45
%
0.72
%
Net charge-offs (recoveries) to average
total loans(1)
0.00
%
0.00
%
0.00
%
Allowance for loan losses to total
loans(1)
0.60
%
0.77
%
0.94
%
Allowance for loan losses to nonaccrual
loans
122.30
%
172.77
%
131.26
%
________________________
(1) Loans exclude loans held-for-sale at each of the dates
presented.
Securities
The total securities portfolio increased $3.6 billion, or 41.6%,
from $8.6 billion at December 31, 2021, and increased $10.5
billion, or 610.4%, from $1.7 billion at March 31, 2021, to $12.2
billion at March 31, 2022. During the first quarter of 2022, the
Company purchased $4.6 billion of securities, including $1.3
billion of U.S. Treasuries, $1.1 billion of tax-exempt municipal
bonds, $1.1 billion of agency residential mortgage-backed
securities, $432.6 million of U.S. agency securities excluding
mortgage-backed securities, $348.3 million of private label
commercial mortgage-backed securities and $256.4 million of agency
commercial mortgage-backed securities. During the first quarter of
2022, the Company sold $432.1 million of longer duration securities
and recognized a net loss of $0.6 million. The securities sold were
part of a restructuring that is projected to have a positive impact
on future earnings when compared to securities purchased in the
first quarter of 2022. In addition, the Company sold the related
interest rate cap contracts that hedged a portion of the securities
that were sold and a realized gain on sale of $0.4 million was
recognized in other noninterest income. As of March 31, 2021, there
were $2.8 billion of securities classified as held-to-maturity.
Capital Ratios
At March 31, 2022, the Company’s ratio of common equity to total
assets was 8.56%, compared with 8.84% at December 31, 2021, and
9.20% at March 31, 2021. At March 31, 2022, the Company’s book
value per common share was $42.77, compared to $46.55 at December
31, 2021, and $28.75 at March 31, 2021.
At March 31, 2022, the Company had a tier 1 leverage ratio of
9.68%, common equity tier 1 capital ratio of 38.97%, tier 1
risk-based capital ratio of 44.84% and total risk-based capital
ratio of 45.01%.
At March 31, 2022, the Bank had a tier 1 leverage ratio of
9.51%, common equity tier 1 capital ratio of 44.28%, tier 1
risk-based capital ratio of 44.28% and total risk-based capital
ratio of 44.45%. These capital ratios each exceeded the “well
capitalized” standards defined by federal banking regulations of
5.00% for tier 1 leverage ratio, 6.5% for common equity tier 1
capital ratio, 8.00% for tier 1 risk-based capital ratio and 10.00%
for total risk-based capital ratio.
Capital Ratios(1)
March 31, 2022
December 31,
2021
March 31, 2021
The Company
Tier 1 leverage ratio
9.68 %
11.07 %
9.68 %
Common equity tier 1 capital ratio
38.97 %
49.53 %
53.03 %
Tier 1 risk-based capital ratio
44.84 %
56.82 %
54.23 %
Total risk-based capital ratio
45.01 %
57.08 %
54.79 %
Common equity to total assets
8.56 %
8.84 %
9.20 %
The Bank
Tier 1 leverage ratio
9.51 %
10.49 %
9.50 %
Common equity tier 1 capital ratio
44.28 %
53.89 %
53.24 %
Tier 1 risk-based capital ratio
44.28 %
53.89 %
53.24 %
Total risk-based capital ratio
44.45 %
54.15 %
53.80 %
________________________
(1) March 31, 2022 capital ratios are preliminary.
Asset Purchase and Issuance of Common Stock
On January 31, 2022, the Company entered into an Asset Purchase
Agreement (the “Purchase Agreement”) under which it acquired from
the Libra Association, Diem Networks US HoldCo, Inc., Diem Networks
US, Inc., Diem Networks II LLC, Diem LLC, and Diem Networks LLC,
(collectively, the “Sellers”) certain intellectual property and
other technology assets designed for running a blockchain-based
payment network.
Under the terms of the Purchase Agreement, the aggregate
purchase price for the acquired assets consisted of (i) $50.0
million in cash consideration and (ii) 1,221,217 shares of the
Company’s Class A common stock. The value of the total transaction
consideration was $181.6 million. The Company accounted for the
purchase as an asset acquisition and capitalized direct transaction
costs related to the purchase of approximately $8.4 million.
Further development costs incurred will be capitalized in
accordance with accounting guidance for internal use software and
the asset will be amortized over its expected useful life once it
is ready for its intended use.
Subsequent Event
On April 11, 2022, the Company’s Board of Directors declared a
quarterly dividend payment of $13.44 per share, equivalent to
$0.336 per depositary share, on its Fixed Rate Non-Cumulative
Perpetual Preferred Stock, Series A (the “Series A Preferred
Stock”), for the period covering February 15, 2022 through May 14,
2022, for a total dividend of $2.7 million. The depositary shares
representing the Series A Preferred Stock are traded on the New
York Stock Exchange under the symbol “SI PRA.” The dividend will be
payable on May 16, 2022 to shareholders of record of the Series A
Preferred Stock as of April 29, 2022.
Conference Call and Webcast
The Company will host a conference call on Tuesday, April 19,
2022 at 11:00 a.m. (Eastern Time) to present and discuss first
quarter 2022 financial results. The conference call can be accessed
live by dialing 1-844-200-6205 or for international callers,
1-929-526-1599, entering the access code 487806. A replay will be
available starting at 1:00 p.m. (Eastern Time) on April 19, 2022
and can be accessed by dialing 1-866-813-9403, or for international
callers +44-204-525-0658. The passcode for the replay is 046195.
The replay will be available until 11:59 p.m. (Eastern Time) on May
3, 2022.
Interested investors and other parties may also listen to a
simultaneous webcast of the conference call by logging onto the
investor relations section of the Company's website at
https://ir.silvergate.com. The online replay will remain available
for a limited time beginning immediately following the call.
About Silvergate
Silvergate Capital Corporation (NYSE: SI) is the leading
provider of innovative financial infrastructure solutions and
services for the growing digital currency industry. The Company’s
real-time payments platform, known as the Silvergate Exchange
Network, is at the heart of its customer-centric suite of payments,
lending and funding solutions serving an expanding class of digital
currency companies and investors around the world. Silvergate is
enabling the rapid growth of digital currency markets and reshaping
global commerce for a digital currency future.
Forward Looking Statements
Statements in this earnings release may constitute
forward-looking statements within the meaning of the Securities
Exchange Act of 1934, as amended. These forward-looking statements
reflect our current views with respect to, among other things,
future events and our financial performance. These statements are
often, but not always, made through the use of words or phrases
such as “may,” “should,” “could,” “predict,” “potential,”
“believe,” “will likely result,” “expect,” “continue,” “will,”
“anticipate,” “seek,” “estimate,” “intend,” “plan,” “project,”
“projection,” “forecast,” “goal,” “target,” “would,” “aim” and
“outlook,” or the negative version of those words or other
comparable words or phrases of a future or forward-looking nature.
These forward-looking statements are not historical facts, and are
based on current expectations, estimates and projections about our
industry and management’s beliefs and certain assumptions made by
management, many of which, by their nature, are inherently
uncertain and beyond our control. The inclusion of these
forward-looking statements should not be regarded as a
representation by us or any other person that such expectations,
estimates and projections will be achieved. Although we believe
that the expectations reflected in these forward-looking statements
are reasonable as of the date made, such forward-looking statements
are not guarantees of future performance and are subject to risks,
assumptions and uncertainties that are difficult to predict. For
information about other important factors that could cause actual
results to differ materially from those discussed in the
forward-looking statements contained in this release, please refer
to the Company's public reports filed with the U.S. Securities and
Exchange Commission.
While there is no assurance that any list of risks and
uncertainties or risk factors is complete, below are certain
factors which could cause actual results to differ materially from
those contained or implied in the forward-looking statements:
changes in general economic, political, or industry conditions;
geopolitical concerns, including the ongoing war in Ukraine; the
magnitude and duration of the COVID-19 pandemic and related
variants and mutations and their impact on the global economy and
financial market conditions and our business, results of
operations, and financial condition; uncertainty in U.S. fiscal and
monetary policy, including the interest rate policies of the Board
of Governors of the Federal Reserve System; inflation/deflation,
interest rate, market, and monetary fluctuations; volatility and
disruptions in global capital and credit markets; the transition
away from USD LIBOR and uncertainty regarding potential alternative
reference rates, including SOFR; competitive pressures on product
pricing and services; success, impact, and timing of our business
strategies, including market acceptance of any new products or
services; the impact of changes in financial services policies,
laws, and regulations, including those concerning taxes, banking,
securities, digital currencies and insurance, and the application
thereof by regulatory bodies; cybersecurity threats and the cost of
defending against them, including the costs of compliance with
potential legislation to combat cybersecurity at a state, national,
or global level; and other factors that may affect our future
results.
Any forward-looking statement speaks only as of the date of this
earnings release, and we do not undertake any obligation to
publicly update or review any forward-looking statement, whether
because of new information, future developments or otherwise,
except as required by law. New risks and uncertainties may emerge
from time to time, and it is not possible for us to predict their
occurrence. In addition, we cannot assess the impact of each risk
and uncertainty on our business or the extent to which any risk or
uncertainty, or combination of risks and uncertainties, may cause
actual results to differ materially from those contained in any
forward-looking statements.
SILVERGATE CAPITAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (In
Thousands) (Unaudited)
March 31, 2022
December 31,
2021
September 30,
2021
June 30, 2021
March 31, 2021
ASSETS
Cash and due from banks
$ 207,304
$ 208,193
$ 168,628
$ 52,859
$ 16,422
Interest earning deposits in other
banks
1,178,205
5,179,753
3,615,860
4,415,458
4,315,100
Cash and cash equivalents
1,385,509
5,387,946
3,784,488
4,468,317
4,331,522
Trading securities, at fair value
—
—
—
26,998
1,990
Securities available-for-sale, at fair
value
9,463,494
8,625,259
7,234,216
6,176,778
1,717,418
Securities held-to-maturity, at amortized
cost
2,751,625
—
—
—
—
Loans held-for-sale, at lower of cost or
fair value
937,140
893,194
818,447
748,577
897,227
Loans held-for-investment, net of
allowance for loan losses
739,014
887,304
809,745
740,155
728,390
Federal home loan and federal reserve bank
stock, at cost
61,719
34,010
34,010
29,460
14,851
Accrued interest receivable
62,573
40,370
32,154
24,505
9,432
Premises and equipment, net
1,678
3,008
1,483
1,604
1,758
Intangible assets
189,977
—
—
—
—
Derivative assets
46,415
34,056
37,210
39,454
34,442
Other assets
158,869
100,348
24,868
33,628
20,122
Total assets
$ 15,798,013
$ 16,005,495
$ 12,776,621
$ 12,289,476
$ 7,757,152
LIABILITIES AND SHAREHOLDERS’
EQUITY
Deposits:
Noninterest bearing demand accounts
$ 13,323,535
$ 14,213,472
$ 11,586,318
$ 11,290,638
$ 6,889,281
Interest bearing accounts
72,627
77,156
76,202
80,918
113,090
Total deposits
13,396,162
14,290,628
11,662,520
11,371,556
7,002,371
Federal home loan bank advances
800,000
—
—
—
—
Subordinated debentures, net
15,848
15,845
15,841
15,838
15,834
Accrued expenses and other liabilities
39,507
90,186
26,179
31,575
25,326
Total liabilities
14,251,517
14,396,659
11,704,540
11,418,969
7,043,531
Commitments and contingencies
Preferred stock
2
2
2
—
—
Class A common stock
316
304
265
265
248
Class B non-voting common stock
—
—
—
—
—
Additional paid-in capital
1,553,547
1,421,592
891,611
697,070
551,798
Retained earnings
218,558
193,860
175,485
151,993
131,058
Accumulated other comprehensive (loss)
income
(225,927)
(6,922)
4,718
21,179
30,517
Total shareholders’ equity
1,546,496
1,608,836
1,072,081
870,507
713,621
Total liabilities and shareholders’
equity
$ 15,798,013
$ 16,005,495
$ 12,776,621
$ 12,289,476
$ 7,757,152
SILVERGATE CAPITAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In Thousands,
Except Per Share Data) (Unaudited)
Three Months Ended
March 31, 2022
December 31,
2021
March 31, 2021
Interest income
Loans, including fees
$
18,287
$
17,892
$
16,597
Taxable securities
17,779
10,178
3,592
Tax-exempt securities
13,184
7,469
1,695
Other interest earning assets
1,385
2,166
1,279
Dividends and other
203
777
143
Total interest income
50,838
38,482
23,306
Interest expense
Deposits
21
27
46
Federal home loan bank advances
70
—
—
Subordinated debentures and other
252
249
245
Total interest expense
343
276
291
Net interest income before provision for
loan losses
50,495
38,206
23,015
Reversal of provision for loan losses
(2,474
)
—
—
Net interest income after provision for
loan losses
52,969
38,206
23,015
Noninterest income
Deposit related fees
8,968
9,378
7,124
Mortgage warehouse fee income
651
684
954
(Loss) gain on sale of securities, net
(605
)
56
—
Other income
436
937
12
Total noninterest income
9,450
11,055
8,090
Noninterest expense
Salaries and employee benefits
15,544
13,815
10,990
Occupancy and equipment
586
728
614
Communications and data processing
2,762
1,862
1,621
Professional services
2,954
2,994
1,717
Federal deposit insurance
1,762
3,100
2,296
Correspondent bank charges
828
634
497
Other loan expense
384
364
174
Other general and administrative
3,198
2,159
1,697
Total noninterest expense
28,018
25,656
19,606
Income before income taxes
34,401
23,605
11,499
Income tax expense (benefit)
7,015
2,214
(1,211
)
Net income
27,386
21,391
12,710
Dividends on preferred stock
2,688
3,016
—
Net income available to common
shareholders
$
24,698
$
18,375
$
12,710
Basic earnings per common share
$
0.79
$
0.67
$
0.56
Diluted earnings per common share
$
0.79
$
0.66
$
0.55
Weighted average common shares
outstanding:
Basic
31,219
27,527
22,504
Diluted
31,401
27,744
23,010
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220419005178/en/
Investor Relations: Hunter Stenback / Ashna Vasa
858-200-3782 investors@silvergate.com
Companhia Siderurgica Na... (NYSE:SID)
Historical Stock Chart
From Aug 2024 to Sep 2024
Companhia Siderurgica Na... (NYSE:SID)
Historical Stock Chart
From Sep 2023 to Sep 2024