Silvergate Capital Corporation Announces Fourth Quarter 2022 Results
Silvergate Capital Corporation reported significant financial losses for the fourth quarter and full year of 2022. The Company recorded a net loss of $1.0 billion for Q4 2022, equating to a loss of $33.16 per share, compared to a $40.6 million profit in Q3 2022. Average digital asset customer deposits plummeted from $12.0 billion in Q3 to $7.3 billion in Q4. Noninterest losses for Q4 reached $887.3 million, largely due to substantial losses on securities. The Company also reduced its workforce by 40% to manage operating expenses amid a declining digital asset environment. Silvergate aims to maintain liquidity and adapt its product offerings as it navigates a challenging market.
- Increased average yield on interest earning assets from 2.47% in Q3 to 3.27% in Q4 2022.
- Despite losses, the Silvergate Exchange Network processed $117.1 billion in dollar transfers, a 4% increase from Q3 2022.
- Net loss of $1.0 billion for Q4 2022, compared to a profit of $40.6 million in Q3 2022.
- Total deposits decreased by 52.4% from Q3 2022, and by 55.9% from Q4 2021, dropping to $6.3 billion.
- Noninterest loss of $887.3 million in Q4 2022 primarily due to $751.4 million in losses on securities.
- Workforce reduction by 200 employees, approximately 40%, to align expenses with market conditions.
Fourth Quarter 2022 Commentary
During the fourth quarter of 2022, the digital asset industry experienced a transformational shift, with significant over-leverage in the industry leading to several high-profile bankruptcies. These dynamics created a crisis of confidence across the ecosystem and led many industry participants to shift to a “risk off” position across digital asset trading platforms. In turn, the Company saw significant outflows of deposits during the quarter and took several actions to maintain cash liquidity. The Company initially utilized wholesale funding, and subsequently sold debt securities to accommodate sustained lower deposit levels and maintain its highly liquid balance sheet.
As Silvergate prepares for what it expects will be a sustained period of lower deposits, it is taking several actions to help ensure the business is resilient, including managing its expense base and evaluating its product portfolio and customer relationships going forward. In addition, Silvergate has made the difficult decision to substantively reduce its workforce in order to account for the economic realities facing its business and the digital asset industry today.
Fourth Quarter 2022 Highlights
-
Net loss attributable to common shareholders for the quarter was
$1.0 billion $33.16 $40.6 million $1.28 $18.4 million $0.66
-
Digital asset customers were 1,620 at
December 31, 2022 , compared to 1,677 atSeptember 30, 2022 , and 1,381 atDecember 31, 2021
-
The Silvergate Exchange Network (“SEN”) handled
$117.1 billion U.S. dollar transfers in the fourth quarter of 2022, an increase of4% compared to$112.6 billion 47% compared to$219.2 billion
-
Total SEN Leverage commitments were
$1.1 billion December 31, 2022 , compared to$1.5 billion September 30, 2022 , and$570.5 million December 31, 2021
-
Digital asset customer related fee income for the quarter was
$6.6 million $7.9 million $9.3 million
-
Average digital asset customer deposits were
$7.3 billion $12.0 billion
Full Year 2022 Highlights
-
Net loss attributable to common shareholders for the year ended
December 31, 2022 was$948.7 million $30.07 $75.5 million $2.91 December 31, 2021
-
The SEN handled
$563.3 billion U.S. dollar transfers for the year endedDecember 31, 2022 , compared to$787.4 billion December 31, 2021
-
Digital asset customer related fee income for the year ended
December 31, 2022 was$32.2 million $35.8 million December 31, 2021
|
|
As of or for the Three Months Ended |
||||||||||
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
||||||
Financial Highlights |
|
(Dollars in thousands, except per share data) |
||||||||||
Net (loss) income attributable to common shareholders |
|
$ |
(1,049,917 |
) |
|
$ |
40,640 |
|
|
$ |
18,375 |
|
Adjusted net income available to common shareholders(1) |
|
$ |
15,124 |
|
|
$ |
40,640 |
|
|
$ |
18,375 |
|
Diluted (loss) earnings per common share |
|
$ |
(33.16 |
) |
|
$ |
1.28 |
|
|
$ |
0.66 |
|
Adjusted earnings per diluted share(1) |
|
$ |
0.48 |
|
|
$ |
1.28 |
|
|
$ |
0.66 |
|
Return on average assets (ROAA)(2) |
|
|
(27.83 |
) % |
|
|
1.04 |
% |
|
|
0.50 |
% |
Adjusted return on average assets(1)(2) |
|
|
0.40 |
% |
|
|
1.04 |
% |
|
|
0.50 |
% |
Return on average common equity (ROACE)(2) |
|
|
(409.02 |
) % |
|
|
12.99 |
% |
|
|
7.25 |
% |
Adjusted return on average common equity(1)(2) |
|
|
5.89 |
% |
|
|
12.99 |
% |
|
|
7.25 |
% |
Net interest margin(2)(3) |
|
|
1.54 |
% |
|
|
2.21 |
% |
|
|
1.11 |
% |
Cost of deposits(2) |
|
|
0.77 |
% |
|
|
0.16 |
% |
|
|
0.00 |
% |
Cost of funds(2) |
|
|
1.76 |
% |
|
|
0.28 |
% |
|
|
0.01 |
% |
Efficiency ratio(4) |
|
|
(28.61 |
) % |
|
|
37.11 |
% |
|
|
52.08 |
% |
Adjusted efficiency ratio(1)(2) |
|
|
63.30 |
% |
|
|
37.11 |
% |
|
|
52.08 |
% |
Total assets |
|
$ |
11,355,553 |
|
|
$ |
15,467,340 |
|
|
$ |
16,005,495 |
|
Total deposits |
|
$ |
6,296,550 |
|
|
$ |
13,238,426 |
|
|
$ |
14,290,628 |
|
Book value per common share |
|
$ |
12.93 |
|
|
$ |
35.94 |
|
|
$ |
46.55 |
|
Tier 1 leverage ratio |
|
|
5.36 |
% |
|
|
10.71 |
% |
|
|
11.07 |
% |
Total risk-based capital ratio |
|
|
57.26 |
% |
|
|
46.63 |
% |
|
|
57.08 |
% |
|
|
Year Ended |
||||||
|
|
2022 |
|
2021 |
||||
|
|
|
|
|
||||
Financial Highlights |
|
(Dollars in thousands, except per share data) |
||||||
Net (loss) income attributable to common shareholders |
|
$ |
(948,662 |
) |
|
$ |
75,512 |
|
Adjusted net income available to common shareholders(1) |
|
$ |
116,379 |
|
|
$ |
75,512 |
|
Diluted (loss) earnings per common share |
|
$ |
(30.07 |
) |
|
$ |
2.91 |
|
Adjusted earnings per diluted share(1) |
|
$ |
3.69 |
|
|
$ |
2.91 |
|
Return on average assets (ROAA) |
|
|
(5.97 |
) % |
|
|
0.66 |
% |
Adjusted return on average assets(1) |
|
|
0.73 |
% |
|
|
0.66 |
% |
Return on average common equity (ROACE) |
|
|
(75.54 |
) % |
|
|
9.32 |
% |
Adjusted return on average common equity(1) |
|
|
9.27 |
% |
|
|
9.32 |
% |
Net interest margin(3) |
|
|
1.71 |
% |
|
|
1.20 |
% |
Cost of deposits |
|
|
0.18 |
% |
|
|
0.00 |
% |
Cost of funds |
|
|
0.50 |
% |
|
|
0.01 |
% |
Efficiency ratio(4) |
|
|
(54.62 |
) % |
|
|
51.06 |
% |
Adjusted efficiency ratio(1) |
|
|
44.93 |
% |
|
|
51.06 |
% |
| ________________________ | ||
| (1) | See “Non-GAAP Financial Measures” for further information and reconciliation of these metrics. |
|
| (2) | Data has been annualized. |
|
| (3) |
Net interest margin is a ratio calculated as net interest income divided by average interest earning assets for the same period. For the three and twelve months ended |
|
| (4) | Efficiency ratio is calculated by dividing noninterest expenses by net interest income plus noninterest income. | |
Digital Asset Initiative
At
Results of Operations, Quarter Ended
Net Interest Income and Net Interest Margin Analysis (Taxable Equivalent Basis)
The Company’s securities portfolio included tax-exempt municipal bonds with tax-exempt income. As a result of the Company recording losses in the fourth quarter of 2022 and full year 2022, the income from tax-exempt securities in these periods does not include any adjustments for taxable equivalent basis. For prior years, net interest income, net interest spread and net interest margin are presented on a taxable equivalent basis based on the federal statutory tax rate of
Net interest income on a taxable equivalent basis totaled
Compared to the third quarter of 2022, net interest income decreased
Compared to the fourth quarter of 2021, net interest income increased
Net interest margin for the fourth quarter of 2022 was
|
|
Three Months Ended |
||||||||||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||||||
|
|
Average Outstanding Balance |
|
Interest Income/ Expense |
|
Average
|
|
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 |
|
$ |
2,804,816 |
|
$ |
27,395 |
|
3.88 |
% |
|
$ |
1,324,361 |
|
$ |
8,001 |
|
2.40 |
% |
|
$ |
5,282,661 |
|
$ |
2,166 |
|
|
0.16 |
% |
Taxable securities |
|
|
7,856,510 |
|
|
52,363 |
|
2.64 |
% |
|
|
8,868,639 |
|
|
47,401 |
|
2.12 |
% |
|
|
5,735,932 |
|
|
10,178 |
|
|
0.70 |
% |
Tax-exempt securities(1) |
|
|
1,972,899 |
|
|
12,279 |
|
2.47 |
% |
|
|
2,889,391 |
|
|
14,412 |
|
1.98 |
% |
|
|
1,728,862 |
|
|
9,454 |
|
|
2.17 |
% |
Loans(2)(3) |
|
|
1,085,757 |
|
|
21,046 |
|
7.69 |
% |
|
|
1,407,290 |
|
|
20,663 |
|
5.83 |
% |
|
|
1,641,345 |
|
|
17,892 |
|
|
4.32 |
% |
Other |
|
|
126,382 |
|
|
1,039 |
|
3.26 |
% |
|
|
62,835 |
|
|
289 |
|
1.82 |
% |
|
|
34,490 |
|
|
777 |
|
|
8.94 |
% |
Total interest earning assets |
|
|
13,846,364 |
|
|
114,122 |
|
3.27 |
% |
|
|
14,552,516 |
|
|
90,766 |
|
2.47 |
% |
|
|
14,423,290 |
|
|
40,467 |
|
|
1.11 |
% |
Noninterest earning assets |
|
|
1,119,827 |
|
|
|
|
|
|
942,110 |
|
|
|
|
|
|
295,841 |
|
|
|
|
|||||||
Total assets |
|
$ |
14,966,191 |
|
|
|
|
|
$ |
15,494,626 |
|
|
|
|
|
$ |
14,719,131 |
|
|
|
|
|||||||
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest bearing deposits |
|
$ |
1,958,921 |
|
$ |
18,290 |
|
3.70 |
% |
|
$ |
1,000,615 |
|
$ |
5,221 |
|
2.07 |
% |
|
$ |
77,564 |
|
$ |
27 |
|
|
0.14 |
% |
Short-term borrowings |
|
|
4,212,772 |
|
|
41,862 |
|
3.94 |
% |
|
|
769,565 |
|
|
4,399 |
|
2.27 |
% |
|
|
12 |
|
|
— |
|
|
0.00 |
% |
Subordinated debentures |
|
|
15,857 |
|
|
281 |
|
7.03 |
% |
|
|
15,854 |
|
|
258 |
|
6.46 |
% |
|
|
15,843 |
|
|
249 |
|
|
6.24 |
% |
Total interest bearing liabilities |
|
|
6,187,550 |
|
|
60,433 |
|
3.87 |
% |
|
|
1,786,034 |
|
|
9,878 |
|
2.19 |
% |
|
|
93,419 |
|
|
276 |
|
|
1.17 |
% |
Noninterest bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest bearing deposits |
|
|
7,432,838 |
|
|
|
|
|
|
12,139,522 |
|
|
|
|
|
|
13,377,552 |
|
|
|
|
|||||||
Other liabilities |
|
|
133,787 |
|
|
|
|
|
|
134,164 |
|
|
|
|
|
|
49,023 |
|
|
|
|
|||||||
Shareholders’ equity |
|
|
1,212,016 |
|
|
|
|
|
|
1,434,906 |
|
|
|
|
|
|
1,199,137 |
|
|
|
|
|||||||
Total liabilities and shareholders’ equity |
|
$ |
14,966,191 |
|
|
|
|
|
$ |
15,494,626 |
|
|
|
|
|
$ |
14,719,131 |
|
|
|
|
|||||||
Net interest spread(4) |
|
|
|
|
|
(0.60 |
) % |
|
|
|
|
|
0.28 |
% |
|
|
|
|
|
(0.06 |
) % |
|||||||
Net interest income, taxable equivalent basis |
|
|
|
$ |
53,689 |
|
|
|
|
|
$ |
80,888 |
|
|
|
|
|
$ |
40,191 |
|
|
|
||||||
Net interest margin(5) |
|
|
|
|
|
1.54 |
% |
|
|
|
|
|
2.21 |
% |
|
|
|
|
|
1.11 |
% |
|||||||
Reconciliation to reported net interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjustments for taxable equivalent basis |
|
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
|
|
|
(1,985 |
) |
|
|
||||||
Net interest income, as reported |
|
|
|
$ |
53,689 |
|
|
|
|
|
$ |
80,888 |
|
|
|
|
|
$ |
38,206 |
|
|
|
||||||
________________________ |
||
| (1) |
Interest income on tax-exempt securities is presented on a taxable equivalent basis using the federal statutory tax rate of |
|
| (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 divided by average interest earning assets for the same period. For the three months ended |
|
Provision (Reversal) for Loan Losses
The Company recorded a
Noninterest Income (Loss)
Noninterest loss for the fourth quarter of 2022 was
|
|
Three Months Ended |
|||||||||
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|||||
|
|
(Dollars in thousands) |
|||||||||
Noninterest income: |
|
|
|
|
|
|
|||||
Deposit related fees |
|
$ |
6,623 |
|
|
$ |
7,953 |
|
|
$ |
9,378 |
Mortgage warehouse fee income |
|
|
167 |
|
|
|
482 |
|
|
|
684 |
(Loss) gain on securities, net |
|
|
(885,807 |
) |
|
|
— |
|
|
|
56 |
(Loss) gain on derivatives, net |
|
|
(8,699 |
) |
|
|
— |
|
|
|
928 |
Loss on sale of loans, net |
|
|
(46 |
) |
|
|
(329 |
) |
|
|
— |
Other income |
|
|
495 |
|
|
|
348 |
|
|
|
9 |
Total noninterest (loss) income |
|
$ |
(887,267 |
) |
|
$ |
8,454 |
|
|
$ |
11,055 |
Noninterest Expense
Noninterest expense totaled
The increase in noninterest expense from the fourth quarter of 2021 was primarily driven by the impairment charge discussed above and an increase in salaries and employee benefits attributable to increased headcount prior to
|
|
Three Months Ended |
|||||||
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|||
|
|
(Dollars in thousands) |
|||||||
Noninterest expense: |
|
|
|
|
|
|
|||
Salaries and employee benefits |
|
$ |
26,707 |
|
$ |
19,632 |
|
$ |
13,815 |
Occupancy and equipment |
|
|
850 |
|
|
822 |
|
|
728 |
Impairment of intangible assets |
|
|
196,223 |
|
|
— |
|
|
— |
Communications and data processing |
|
|
3,306 |
|
|
3,210 |
|
|
1,862 |
Professional services |
|
|
6,112 |
|
|
4,314 |
|
|
2,994 |
Federal deposit insurance |
|
|
1,210 |
|
|
1,217 |
|
|
3,100 |
Correspondent bank charges |
|
|
286 |
|
|
902 |
|
|
634 |
Other loan expense |
|
|
528 |
|
|
529 |
|
|
364 |
Other general and administrative |
|
|
3,270 |
|
|
2,527 |
|
|
2,159 |
Total noninterest expense |
|
$ |
238,492 |
|
$ |
33,153 |
|
$ |
25,656 |
Income Tax Expense (Benefit)
Income tax benefit was
Results of Operations, Year Ended
Net loss attributable to common shareholders for the year ended
Net interest income for the year ended
Noninterest loss for the year ended
Noninterest expense was
Income tax expense was
Balance Sheet
Deposits
At
The Bank’s average total deposits from digital asset customers during the fourth quarter of 2022 amounted to
The following table sets forth a breakdown of the Company’s digital asset customer base and the deposits held by such customers at the dates noted below:
|
|
|
|
|
|
|
|||||||||
|
|
Number of Customers |
|
Total Deposits(1) |
|
Number of Customers |
|
Total Deposits(1) |
|
Number of Customers |
|
Total Deposits(1) |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
(Dollars in millions) |
|||||||||||||
Digital asset exchanges |
|
104 |
|
$ |
2,882 |
|
108 |
|
$ |
7,579 |
|
94 |
|
$ |
8,288 |
Institutional investors |
|
1,025 |
|
|
539 |
|
1,069 |
|
|
3,043 |
|
894 |
|
|
4,220 |
Other customers |
|
491 |
|
|
410 |
|
500 |
|
|
1,247 |
|
393 |
|
|
1,603 |
Total |
|
1,620 |
|
$ |
3,830 |
|
1,677 |
|
$ |
11,869 |
|
1,381 |
|
$ |
14,111 |
________________________ |
||
| (1) | Total deposits may not foot due to rounding. |
|
The weighted average cost of deposits for the fourth quarter of 2022 was
|
|
Three Months Ended |
||||||||||||||||
|
|
|
|
|
|
|
||||||||||||
|
|
Average Balance |
|
Average Rate |
|
Average Balance |
|
Average Rate |
|
Average Balance |
|
Average Rate |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
(Dollars in thousands) |
||||||||||||||||
Noninterest bearing demand accounts |
|
$ |
7,432,838 |
|
— |
|
|
$ |
12,139,522 |
|
— |
|
|
$ |
13,377,552 |
|
— |
|
Interest bearing accounts: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest bearing demand accounts |
|
|
3,423 |
|
0.00 |
% |
|
|
3,470 |
|
0.00 |
% |
|
|
7,660 |
|
0.05 |
% |
Money market and savings accounts |
|
|
31,951 |
|
0.01 |
% |
|
|
49,720 |
|
0.00 |
% |
|
|
69,364 |
|
0.14 |
% |
Certificates of deposit |
|
|
1,923,547 |
|
3.77 |
% |
|
|
947,425 |
|
2.19 |
% |
|
|
540 |
|
0.73 |
% |
Total interest bearing deposits |
|
|
1,958,921 |
|
3.70 |
% |
|
|
1,000,615 |
|
2.07 |
% |
|
|
77,564 |
|
0.14 |
% |
Total deposits |
|
$ |
9,391,759 |
|
0.77 |
% |
|
$ |
13,140,137 |
|
0.16 |
% |
|
$ |
13,455,116 |
|
0.00 |
% |
Loan Portfolio
Total loans, including net loans held-for-investment and loans held-for-sale, were
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
||||||
|
|
(Dollars in thousands) |
||||||||||
Real estate loans: |
|
|
|
|
|
|
||||||
One-to-four family |
|
$ |
37,495 |
|
|
$ |
37,636 |
|
|
$ |
105,098 |
|
Multi-family |
|
|
9,086 |
|
|
|
9,028 |
|
|
|
56,751 |
|
Commercial |
|
|
62,609 |
|
|
|
63,979 |
|
|
|
210,136 |
|
Construction |
|
|
— |
|
|
|
— |
|
|
|
7,573 |
|
Commercial and industrial(1) |
|
|
301,655 |
|
|
|
302,160 |
|
|
|
335,862 |
|
Reverse mortgage and other |
|
|
1,080 |
|
|
|
1,270 |
|
|
|
1,410 |
|
Mortgage warehouse |
|
|
— |
|
|
|
58,760 |
|
|
|
177,115 |
|
Total gross loans held-for-investment |
|
|
411,925 |
|
|
|
472,833 |
|
|
|
893,945 |
|
Deferred fees, net |
|
|
(959 |
) |
|
|
(1,871 |
) |
|
|
275 |
|
Total loans held-for-investment |
|
|
410,966 |
|
|
|
470,962 |
|
|
|
894,220 |
|
Allowance for loan losses |
|
|
(2,638 |
) |
|
|
(3,176 |
) |
|
|
(6,916 |
) |
Loans held-for-investment, net |
|
|
408,328 |
|
|
|
467,786 |
|
|
|
887,304 |
|
Loans held-for-sale(2) |
|
|
181,846 |
|
|
|
924,644 |
|
|
|
893,194 |
|
Total loans |
|
$ |
590,174 |
|
|
$ |
1,392,430 |
|
|
$ |
1,780,498 |
|
________________________ |
||
| (1) |
Commercial and industrial loans includes |
|
| (2) |
Loans held-for-sale includes |
|
Asset Quality and Allowance for Loan Losses
The allowance for loan losses was
Nonperforming assets totaled
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
||||||
Asset Quality |
|
(Dollars in thousands) |
||||||||||
Nonperforming Assets: |
|
|
|
|
|
|
||||||
Nonaccrual loans |
|
$ |
3,339 |
|
|
$ |
3,698 |
|
|
$ |
4,003 |
|
Troubled debt restructurings |
|
$ |
1,618 |
|
|
$ |
1,623 |
|
|
$ |
1,713 |
|
Other real estate owned, net |
|
$ |
83 |
|
|
$ |
45 |
|
|
|
— |
|
Nonperforming assets |
|
$ |
3,422 |
|
|
$ |
3,743 |
|
|
$ |
4,003 |
|
|
|
|
|
|
|
|
||||||
Asset Quality Ratios: |
|
|
|
|
|
|
||||||
Nonperforming assets to total assets |
|
|
0.03 |
% |
|
|
0.02 |
% |
|
|
0.03 |
% |
Nonaccrual loans to total loans(1) |
|
|
0.81 |
% |
|
|
0.79 |
% |
|
|
0.45 |
% |
Net charge-offs to average total loans(1) |
|
|
0.10 |
% |
|
|
0.09 |
% |
|
|
0.00 |
% |
Allowance for loan losses to total loans(1) |
|
|
0.64 |
% |
|
|
0.67 |
% |
|
|
0.77 |
% |
Allowance for loan losses to nonaccrual loans |
|
|
79.01 |
% |
|
|
85.88 |
% |
|
|
172.77 |
% |
________________________ |
||
| (1) | Loans exclude loans held-for-sale at each of the dates presented. |
|
Securities
The total securities portfolio decreased
Capital Ratios
At
At
At
Capital Ratios(1) |
|
|
|
|
|
|
|||
The Company |
|
|
|
|
|
|
|||
Tier 1 leverage ratio |
|
5.36 |
% |
|
10.71 |
% |
|
11.07 |
% |
Common equity tier 1 capital ratio |
|
42.48 |
% |
|
40.72 |
% |
|
49.53 |
% |
Tier 1 risk-based capital ratio |
|
57.07 |
% |
|
46.54 |
% |
|
56.82 |
% |
Total risk-based capital ratio |
|
57.26 |
% |
|
46.63 |
% |
|
57.08 |
% |
Common equity to total assets |
|
3.61 |
% |
|
7.36 |
% |
|
8.84 |
% |
The Bank |
|
|
|
|
|
|
|||
Tier 1 leverage ratio |
|
5.12 |
% |
|
10.45 |
% |
|
10.49 |
% |
Common equity tier 1 capital ratio |
|
53.89 |
% |
|
45.45 |
% |
|
53.89 |
% |
Tier 1 risk-based capital ratio |
|
53.89 |
% |
|
45.45 |
% |
|
53.89 |
% |
Total risk-based capital ratio |
|
54.07 |
% |
|
45.53 |
% |
|
54.15 |
% |
________________________ |
||
| (1) |
|
|
Subsequent Events
In 2022, the Company increased employee headcount at a rapid rate in an effort to keep up with its growing digital asset business and serve its customers. The Company has reduced headcount by approximately 200 employees, or
Subsequent to
Conference Call and Webcast
The Company will host a conference call on
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
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
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
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.
|
||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION |
||||||||||||||||||||
(In Thousands) |
||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
ASSETS |
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks |
|
$ |
555,581 |
|
|
$ |
465,853 |
|
|
$ |
256,378 |
|
|
$ |
207,304 |
|
|
$ |
208,193 |
|
Interest earning deposits in other banks |
|
|
4,019,003 |
|
|
|
1,420,970 |
|
|
|
1,637,410 |
|
|
|
1,178,205 |
|
|
|
5,179,753 |
|
Cash and cash equivalents |
|
|
4,574,584 |
|
|
|
1,886,823 |
|
|
|
1,893,788 |
|
|
|
1,385,509 |
|
|
|
5,387,946 |
|
Securities available-for-sale, at fair value |
|
|
5,732,539 |
|
|
|
8,317,247 |
|
|
|
8,686,307 |
|
|
|
9,463,494 |
|
|
|
8,625,259 |
|
Securities held-to-maturity, at amortized cost |
|
|
— |
|
|
|
3,104,557 |
|
|
|
3,131,321 |
|
|
|
2,751,625 |
|
|
|
— |
|
Loans held-for-sale, at lower of cost or fair value |
|
|
181,846 |
|
|
|
924,644 |
|
|
|
872,056 |
|
|
|
937,140 |
|
|
|
893,194 |
|
Loans held-for-investment, net of allowance for loan losses |
|
|
408,328 |
|
|
|
467,786 |
|
|
|
594,671 |
|
|
|
739,014 |
|
|
|
887,304 |
|
Other investments |
|
|
169,190 |
|
|
|
60,428 |
|
|
|
63,456 |
|
|
|
61,719 |
|
|
|
34,010 |
|
Accrued interest receivable |
|
|
42,944 |
|
|
|
78,799 |
|
|
|
72,463 |
|
|
|
62,573 |
|
|
|
40,370 |
|
Premises and equipment, net |
|
|
3,866 |
|
|
|
3,518 |
|
|
|
3,328 |
|
|
|
1,678 |
|
|
|
3,008 |
|
Intangible assets |
|
|
— |
|
|
|
194,045 |
|
|
|
190,455 |
|
|
|
189,977 |
|
|
|
— |
|
Derivative assets |
|
|
39,998 |
|
|
|
153,990 |
|
|
|
104,995 |
|
|
|
46,415 |
|
|
|
34,056 |
|
Safeguarding assets |
|
|
— |
|
|
|
— |
|
|
|
52,838 |
|
|
|
243,769 |
|
|
|
— |
|
Other assets |
|
|
202,258 |
|
|
|
275,503 |
|
|
|
234,816 |
|
|
|
158,869 |
|
|
|
100,348 |
|
Total assets |
|
$ |
11,355,553 |
|
|
$ |
15,467,340 |
|
|
$ |
15,900,494 |
|
|
$ |
16,041,782 |
|
|
$ |
16,005,495 |
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest bearing demand accounts |
|
$ |
3,852,547 |
|
|
$ |
12,005,719 |
|
|
$ |
13,436,017 |
|
|
$ |
13,323,535 |
|
|
$ |
14,213,472 |
|
Interest bearing accounts |
|
|
2,444,003 |
|
|
|
1,232,707 |
|
|
|
64,703 |
|
|
|
72,627 |
|
|
|
77,156 |
|
Total deposits |
|
|
6,296,550 |
|
|
|
13,238,426 |
|
|
|
13,500,720 |
|
|
|
13,396,162 |
|
|
|
14,290,628 |
|
Short-term borrowings |
|
|
4,300,000 |
|
|
|
700,000 |
|
|
|
800,000 |
|
|
|
800,000 |
|
|
|
— |
|
Subordinated debentures, net |
|
|
15,859 |
|
|
|
15,855 |
|
|
|
15,852 |
|
|
|
15,848 |
|
|
|
15,845 |
|
Safeguarding liabilities |
|
|
— |
|
|
|
— |
|
|
|
52,838 |
|
|
|
243,769 |
|
|
|
— |
|
Accrued expenses and other liabilities |
|
|
139,923 |
|
|
|
181,714 |
|
|
|
107,865 |
|
|
|
39,507 |
|
|
|
90,186 |
|
Total liabilities |
|
|
10,752,332 |
|
|
|
14,135,995 |
|
|
|
14,477,275 |
|
|
|
14,495,286 |
|
|
|
14,396,659 |
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
||||||||||
Preferred stock |
|
|
2 |
|
|
|
2 |
|
|
|
2 |
|
|
|
2 |
|
|
|
2 |
|
Class A common stock |
|
|
317 |
|
|
|
317 |
|
|
|
316 |
|
|
|
316 |
|
|
|
304 |
|
Class B non-voting common stock(1) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
|
1,557,033 |
|
|
|
1,555,996 |
|
|
|
1,554,627 |
|
|
|
1,553,547 |
|
|
|
1,421,592 |
|
Retained (deficit) earnings |
|
|
(754,802 |
) |
|
|
295,115 |
|
|
|
254,475 |
|
|
|
218,558 |
|
|
|
193,860 |
|
Accumulated other comprehensive loss |
|
|
(199,329 |
) |
|
|
(520,085 |
) |
|
|
(386,201 |
) |
|
|
(225,927 |
) |
|
|
(6,922 |
) |
Total shareholders’ equity |
|
|
603,221 |
|
|
|
1,331,345 |
|
|
|
1,423,219 |
|
|
|
1,546,496 |
|
|
|
1,608,836 |
|
Total liabilities and shareholders’ equity |
|
$ |
11,355,553 |
|
|
$ |
15,467,340 |
|
|
$ |
15,900,494 |
|
|
$ |
16,041,782 |
|
|
$ |
16,005,495 |
|
________________________ |
||
| (1) |
Effective |
|
|
||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||||
(In Thousands, Except Per Share Data) |
||||||||||||||||||
(Unaudited) |
||||||||||||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest income |
|
|
|
|
|
|
|
|
|
|
||||||||
Loans, including fees |
|
$ |
21,046 |
|
|
$ |
20,663 |
|
|
$ |
17,892 |
|
$ |
82,050 |
|
|
$ |
68,619 |
Taxable securities |
|
|
52,363 |
|
|
|
47,401 |
|
|
|
10,178 |
|
|
148,529 |
|
|
|
36,094 |
Tax-exempt securities |
|
|
12,279 |
|
|
|
14,412 |
|
|
|
7,469 |
|
|
54,695 |
|
|
|
17,301 |
Other interest earning assets |
|
|
27,395 |
|
|
|
8,001 |
|
|
|
2,166 |
|
|
39,789 |
|
|
|
6,799 |
Dividends and other |
|
|
1,039 |
|
|
|
289 |
|
|
|
777 |
|
|
2,250 |
|
|
|
1,581 |
Total interest income |
|
|
114,122 |
|
|
|
90,766 |
|
|
|
38,482 |
|
|
327,313 |
|
|
|
130,394 |
Interest expense |
|
|
|
|
|
|
|
|
|
|
||||||||
Deposits |
|
|
18,290 |
|
|
|
5,221 |
|
|
|
27 |
|
|
23,534 |
|
|
|
134 |
Short-term borrowings |
|
|
41,862 |
|
|
|
4,399 |
|
|
|
— |
|
|
47,127 |
|
|
|
— |
Subordinated debentures |
|
|
281 |
|
|
|
258 |
|
|
|
249 |
|
|
1,034 |
|
|
|
993 |
Total interest expense |
|
|
60,433 |
|
|
|
9,878 |
|
|
|
276 |
|
|
71,695 |
|
|
|
1,127 |
Net interest income before provision for loan losses |
|
|
53,689 |
|
|
|
80,888 |
|
|
|
38,206 |
|
|
255,618 |
|
|
|
129,267 |
Reversal of provision for loan losses |
|
|
(502 |
) |
|
|
(601 |
) |
|
|
— |
|
|
(3,577 |
) |
|
|
— |
Net interest income after provision for loan losses |
|
|
54,191 |
|
|
|
81,489 |
|
|
|
38,206 |
|
|
259,195 |
|
|
|
129,267 |
Noninterest income |
|
|
|
|
|
|
|
|
|
|
||||||||
Deposit related fees |
|
|
6,623 |
|
|
|
7,953 |
|
|
|
9,378 |
|
|
32,352 |
|
|
|
35,981 |
Mortgage warehouse fee income |
|
|
167 |
|
|
|
482 |
|
|
|
684 |
|
|
1,855 |
|
|
|
3,056 |
(Loss) gain on securities, net |
|
|
(885,807 |
) |
|
|
— |
|
|
|
56 |
|
|
(886,184 |
) |
|
|
5,238 |
(Loss) gain on derivatives, net |
|
|
(8,699 |
) |
|
|
— |
|
|
|
928 |
|
|
(8,699 |
) |
|
|
928 |
Loss on sale of loans, net |
|
|
(46 |
) |
|
|
(329 |
) |
|
|
— |
|
|
(375 |
) |
|
|
— |
Other income |
|
|
495 |
|
|
|
348 |
|
|
|
9 |
|
|
902 |
|
|
|
53 |
Total noninterest (loss) income |
|
|
(887,267 |
) |
|
|
8,454 |
|
|
|
11,055 |
|
|
(860,149 |
) |
|
|
45,256 |
Noninterest expense |
|
|
|
|
|
|
|
|
|
|
||||||||
Salaries and employee benefits |
|
|
26,707 |
|
|
|
19,632 |
|
|
|
13,815 |
|
|
78,239 |
|
|
|
45,794 |
Occupancy and equipment |
|
|
850 |
|
|
|
822 |
|
|
|
728 |
|
|
3,321 |
|
|
|
2,464 |
Impairment of intangible assets |
|
|
196,223 |
|
|
|
— |
|
|
|
— |
|
|
196,223 |
|
|
|
— |
Communications and data processing |
|
|
3,306 |
|
|
|
3,210 |
|
|
|
1,862 |
|
|
12,245 |
|
|
|
7,072 |
Professional services |
|
|
6,112 |
|
|
|
4,314 |
|
|
|
2,994 |
|
|
19,660 |
|
|
|
9,776 |
Federal deposit insurance |
|
|
1,210 |
|
|
|
1,217 |
|
|
|
3,100 |
|
|
5,684 |
|
|
|
13,537 |
Correspondent bank charges |
|
|
286 |
|
|
|
902 |
|
|
|
634 |
|
|
2,817 |
|
|
|
2,515 |
Other loan expense |
|
|
528 |
|
|
|
529 |
|
|
|
364 |
|
|
2,123 |
|
|
|
1,117 |
Other general and administrative |
|
|
3,270 |
|
|
|
2,527 |
|
|
|
2,159 |
|
|
9,903 |
|
|
|
6,845 |
Total noninterest expense |
|
|
238,492 |
|
|
|
33,153 |
|
|
|
25,656 |
|
|
330,215 |
|
|
|
89,120 |
(Loss) income before income taxes |
|
|
(1,071,568 |
) |
|
|
56,790 |
|
|
|
23,605 |
|
|
(931,169 |
) |
|
|
85,403 |
Income tax (benefit) expense |
|
|
(24,339 |
) |
|
|
13,462 |
|
|
|
2,214 |
|
|
6,741 |
|
|
|
6,875 |
Net (loss) income |
|
|
(1,047,229 |
) |
|
|
43,328 |
|
|
|
21,391 |
|
|
(937,910 |
) |
|
|
78,528 |
Dividends on preferred stock |
|
|
2,688 |
|
|
|
2,688 |
|
|
|
3,016 |
|
|
10,752 |
|
|
|
3,016 |
Net (loss) income attributable to common shareholders |
|
$ |
(1,049,917 |
) |
|
$ |
40,640 |
|
|
$ |
18,375 |
|
$ |
(948,662 |
) |
|
$ |
75,512 |
Basic (loss) earnings per common share |
|
$ |
(33.16 |
) |
|
$ |
1.28 |
|
|
$ |
0.67 |
|
$ |
(30.07 |
) |
|
$ |
2.95 |
Diluted (loss) earnings per common share |
|
$ |
(33.16 |
) |
|
$ |
1.28 |
|
|
$ |
0.66 |
|
$ |
(30.07 |
) |
|
$ |
2.91 |
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
31,663 |
|
|
|
31,655 |
|
|
|
27,527 |
|
|
31,545 |
|
|
|
25,582 |
Diluted |
|
|
31,663 |
|
|
|
31,803 |
|
|
|
27,744 |
|
|
31,545 |
|
|
|
25,922 |
Non-GAAP Financial Measures
(Unaudited)
The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and to enhance investors’ overall understanding of such financial performance. However, these non-GAAP financial measures are supplemental and are not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for these adjusted measures, this presentation may not be comparable to other similarly titled adjusted measures reported by other companies.
This earnings release includes certain non-GAAP financial measures for the periods presented below in order to present our results of operations for that period on a basis consistent with our historical operations. Management believes that these non-GAAP financial measures provide useful information to investors that is supplementary to the Company’s financial condition, results of operations and cash flows computed in accordance with GAAP.
During the fourth quarter of 2022, the digital asset industry experienced a transformational shift, with significant over-leverage in the industry, leading to several high-profile bankruptcies. These dynamics led to a crisis of confidence across the ecosystem and led many industry participants to shift deposits away from digital asset trading platforms. The Company saw significant outflows of deposits during the quarter and took several actions to maintain cash liquidity, which included utilizing wholesale funding and subsequently sold debt securities to accommodate the sustained lower deposit levels and maintain its highly liquid balance sheet. This restructuring of the Company’s balance sheet led to the decision to reduce its expense base going forward by significantly reducing its workforce. The following adjustments represent the impact of these actions in response to the events that occurred in the fourth quarter of 2022 and are considered infrequent in nature. The likelihood that these charges will occur in subsequent periods may depend on deposit levels and customer behavior.
Loss on securities: The Company sold securities in order to manage liquidity and recognized net losses related to the declines in market values relative to amortized cost. In addition, an other than temporary impairment charge was recorded for securities that the Company will more likely than not be required to sell before recovery of its amortized cost basis.
Loss on derivatives: In conjunction with the securities sales the Company, de-designated and sold certain related derivatives hedging fair value of securities and realized net losses on the change in fair value on the derivative instruments related to the timing of the sales of derivatives.
Restructuring charges: Restructuring charges includes direct costs related to reduction in force efforts or other exit and disposal activities, such as decisions to no longer provide certain products. Costs related to reduction in force actions primarily consist of one-time termination benefits for affected employees including severance payments, employee benefit payments, accelerated stock-based compensation expense and other related costs, such as job placement services and legal costs.
Impairment of intangible assets: In
Income taxes: The tax effect adjustment below was determined by calculating the estimated annual effective tax rate on adjusted income before income taxes and applying the rate to pre-tax income. The difference between the estimated income tax and the income tax expense or benefit as reported was included as a tax effect adjustment.
Adjusted diluted shares: Adjusted earnings per diluted share is calculated by dividing adjusted net income available to common shareholders by the weighted average common shares outstanding adjusted for the dilutive effects of all potential shares of common stock. In periods where a net loss attributable to common shareholders was reported, the diluted shares were the same as basic shares because the effects of potentially dilutive shares were anti-dilutive.
|
|
Three Months Ended |
|
Year Ended |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
(In thousands, except per share data) |
|||||||||||||||
Noninterest income |
|
|
|
|
|
|
|
|
|
|
|||||||
Noninterest income (loss), as reported |
|
$ |
(887,267 |
) |
|
$ |
8,454 |
|
$ |
11,055 |
|
$ |
(860,149 |
) |
|
$ |
45,256 |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|||||||
Loss on securities, net |
|
|
885,807 |
|
|
|
— |
|
|
— |
|
|
885,807 |
|
|
|
— |
Loss on derivatives, net |
|
|
8,699 |
|
|
|
— |
|
|
— |
|
|
8,699 |
|
|
|
— |
Adjusted noninterest income |
|
$ |
7,239 |
|
|
$ |
8,454 |
|
$ |
11,055 |
|
$ |
34,357 |
|
|
$ |
45,256 |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Noninterest expense |
|
|
|
|
|
|
|
|
|
|
|||||||
Noninterest expense, as reported |
|
$ |
238,492 |
|
|
$ |
33,153 |
|
$ |
25,656 |
|
$ |
330,215 |
|
|
$ |
89,120 |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|||||||
Impairment of intangible assets |
|
|
(196,223 |
) |
|
|
— |
|
|
— |
|
|
(196,223 |
) |
|
|
— |
Restructuring charges |
|
|
(3,704 |
) |
|
|
— |
|
|
— |
|
|
(3,704 |
) |
|
|
— |
Adjusted noninterest expense |
|
$ |
38,565 |
|
|
$ |
33,153 |
|
$ |
25,656 |
|
$ |
130,288 |
|
|
$ |
89,120 |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net income (loss) attributable to common shareholders |
|||||||||||||||||
Net (loss) income attributable to common shareholders, as reported |
|
$ |
(1,049,917 |
) |
|
$ |
40,640 |
|
$ |
18,375 |
|
$ |
(948,662 |
) |
|
$ |
75,512 |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|||||||
Loss on securities, net |
|
|
885,807 |
|
|
|
— |
|
|
— |
|
|
885,807 |
|
|
|
— |
Loss on derivatives, net |
|
|
8,699 |
|
|
|
— |
|
|
— |
|
|
8,699 |
|
|
|
— |
Impairment of intangible assets |
|
|
196,223 |
|
|
|
— |
|
|
— |
|
|
196,223 |
|
|
|
— |
Restructuring charges |
|
|
3,704 |
|
|
|
— |
|
|
— |
|
|
3,704 |
|
|
|
— |
Tax effect(1) |
|
|
(29,392 |
) |
|
|
— |
|
|
— |
|
|
(29,392 |
) |
|
|
— |
Adjusted net income available to common shareholders |
|
$ |
15,124 |
|
|
$ |
40,640 |
|
$ |
18,375 |
|
$ |
116,379 |
|
|
$ |
75,512 |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Earnings (loss) per diluted share |
|
|
|
|
|
|
|
|
|
|
|||||||
(Loss) earnings per diluted share, as reported |
|
$ |
(33.16 |
) |
|
$ |
1.28 |
|
$ |
0.66 |
|
$ |
(30.07 |
) |
|
$ |
2.91 |
Adjusted net income available to common shareholders |
|
$ |
15,124 |
|
|
$ |
40,640 |
|
$ |
18,375 |
|
$ |
116,379 |
|
|
$ |
75,512 |
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|||||||
Diluted shares, as reported |
|
|
31,663 |
|
|
|
31,803 |
|
|
27,744 |
|
|
31,545 |
|
|
|
25,922 |
Add: Diluted effects of stock-based awards |
|
|
104 |
|
|
|
— |
|
|
— |
|
|
26 |
|
|
|
— |
Adjusted fully diluted shares |
|
|
31,767 |
|
|
|
31,803 |
|
|
27,744 |
|
|
31,571 |
|
|
|
25,922 |
Adjusted earnings per diluted share |
|
$ |
0.48 |
|
|
$ |
1.28 |
|
$ |
0.66 |
|
$ |
3.69 |
|
|
$ |
2.91 |
________________________ |
||
| (1) |
Amount represents the total income tax adjustment needed to calculate an effective income tax rate on adjusted income before income taxes of |
|
|
|
Three Months Ended |
|
Year Ended |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
(Dollars in thousands) |
||||||||||||||||||
Return on average assets (ROAA)(1) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted net income available to common shareholders |
|
$ |
15,124 |
|
|
$ |
40,640 |
|
|
$ |
18,375 |
|
|
$ |
116,379 |
|
|
$ |
75,512 |
|
Average assets |
|
|
14,966,191 |
|
|
|
15,494,626 |
|
|
|
14,719,131 |
|
|
|
15,882,737 |
|
|
|
11,356,838 |
|
Return on average assets (ROAA), as reported |
|
|
(27.83 |
) % |
|
|
1.04 |
% |
|
|
0.50 |
% |
|
|
(5.97 |
) % |
|
|
0.66 |
% |
Adjusted return on average assets |
|
|
0.40 |
% |
|
|
1.04 |
% |
|
|
0.50 |
% |
|
|
0.73 |
% |
|
|
0.66 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on average common equity (ROACE)(1) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted net income available to common shareholders |
|
$ |
15,124 |
|
|
$ |
40,640 |
|
|
$ |
18,375 |
|
|
$ |
116,379 |
|
|
$ |
75,512 |
|
Average common equity |
|
|
1,018,395 |
|
|
|
1,241,285 |
|
|
|
1,005,491 |
|
|
|
1,255,880 |
|
|
|
809,963 |
|
Return on average common equity (ROACE), as reported |
|
|
(409.02 |
) % |
|
|
12.99 |
% |
|
|
7.25 |
% |
|
|
(75.54 |
) % |
|
|
9.32 |
% |
Adjusted return on average common equity |
|
|
5.89 |
% |
|
|
12.99 |
% |
|
|
7.25 |
% |
|
|
9.27 |
% |
|
|
9.32 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Efficiency ratio |
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted noninterest expense |
|
$ |
38,565 |
|
|
$ |
33,153 |
|
|
$ |
25,656 |
|
|
$ |
130,288 |
|
|
$ |
89,120 |
|
Net interest income |
|
|
53,689 |
|
|
|
80,888 |
|
|
|
38,206 |
|
|
|
255,618 |
|
|
|
129,267 |
|
Adjusted noninterest income |
|
|
7,239 |
|
|
|
8,454 |
|
|
|
11,055 |
|
|
|
34,357 |
|
|
|
45,256 |
|
Adjusted total net interest income and noninterest income |
|
|
60,928 |
|
|
|
89,342 |
|
|
|
49,261 |
|
|
|
289,975 |
|
|
|
174,523 |
|
Efficiency ratio, as reported |
|
|
(28.61 |
) % |
|
|
37.11 |
% |
|
|
52.08 |
% |
|
|
(54.62 |
) % |
|
|
51.06 |
% |
Adjusted efficiency ratio |
|
|
63.30 |
% |
|
|
37.11 |
% |
|
|
52.08 |
% |
|
|
44.93 |
% |
|
|
51.06 |
% |
________________________ |
||
| (1) | Data has been annualized. |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20230116005542/en/
Investor Relations Contact:
858-200-3782
investors@silvergate.com
Source:
FAQ
What were Silvergate's Q4 2022 financial results?
How did Silvergate's deposits change in Q4 2022?
What is the stock symbol for Silvergate Capital Corporation?
What were the impacts of workforce reductions on Silvergate?
How did the Silvergate Exchange Network perform in Q4 2022?
