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SI Silvergate Capital

Silvergate Capital Corporation is a registered bank holding company for Silvergate Bank, headquartered in La Jolla, California. Silvergate Bank is a commercial bank that opened in 1988, has been profitable for 22 consecutive years, and has focused its strategy on creating the banking platform for innovators, especially in the digital currency industry, and developing product and service solutions addressing the needs of entrepreneurs. The Company's assets consist primarily of its investment in the Bank and the Company's primary activities are conducted through the Bank. The Company is subject to supervision by the Board of Governors of the Federal Reserve System (the 'Federal Reserve'). The Bank is subject to supervision by the California Department of Business Oversight, Division of Financial Institutions and, as a Federal Reserve member bank, the Federal Reserve. The Bank's deposits are insured up to legal limits by the Federal Deposit Insurance Corporation.

SI stock data

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Investment data

Data from SEC filings
Securities sold
Number of investors

Calendar

10 Aug 21
24 Oct 21
31 Dec 21
Quarter (USD)
Jun 21 Mar 21 Dec 20 Sep 20
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD)
Dec 20 Dec 19
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS

Financial data from company earnings reports.

Cash burn rate (estimated) Burn method: Change in cash Burn method: Operating income/loss Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 4.47B 4.47B 4.47B 4.47B 4.47B 4.47B
Cash burn (monthly) (positive/no burn) (positive/no burn) (positive/no burn) (positive/no burn) (positive/no burn) 33.92M
Cash used (since last report) n/a n/a n/a n/a n/a 129.67M
Cash remaining n/a n/a n/a n/a n/a 4.34B
Runway (months of cash) n/a n/a n/a n/a n/a 127.9

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
21 Oct 21 Dircks Thomas C Class A Common Stock Sell Dispose S Yes No 149.6808 7,500 1.12M 15,683
21 Oct 21 Dircks Thomas C Class A Common Stock Sell Dispose S Yes No 151.8031 10,000 1.52M 28,799
21 Oct 21 Dircks Thomas C Class A Common Stock Sell Dispose S Yes No 150.3635 4,350 654.08K 38,799
21 Oct 21 Dircks Thomas C Class A Common Stock Sell Dispose S Yes No 149.9663 2,550 382.41K 43,149
21 Oct 21 Dircks Thomas C Class A Common Stock Sell Dispose S Yes No 147.32 100 14.73K 45,699
21 Oct 21 Dircks Thomas C Class A Common Stock Sell Dispose S Yes No 145.7033 300 43.71K 45,799
21 Oct 21 Dircks Thomas C Class A Common Stock Sell Dispose S Yes No 144.285 200 28.86K 46,099
21 Oct 21 Dircks Thomas C Class A Common Stock Sell Dispose S Yes No 151.3 100 15.13K 40,900
21 Oct 21 Dircks Thomas C Class A Common Stock Sell Dispose S Yes No 150.9415 4,585 692.07K 41,000
21 Oct 21 Dircks Thomas C Class A Common Stock Sell Dispose S Yes No 149.9478 17,201 2.58M 45,585

Data for the last complete 13F reporting period. To see the most recent changes to ownership, click the ownership history button above.

75.8% owned by funds/institutions
13F holders
Current Prev Q Change
Total holders 231 216 +6.9%
Opened positions 62 104 -40.4%
Closed positions 47 29 +62.1%
Increased positions 97 65 +49.2%
Reduced positions 46 37 +24.3%
13F shares
Current Prev Q Change
Total value 3.1B 2.94B +5.3%
Total shares 20.1M 18.14M +10.8%
Total puts 869.6K 488.7K +77.9%
Total calls 1.16M 757.3K +53.5%
Total put/call ratio 0.7 0.6 +15.9%
Largest owners
Shares Value Change
Vanguard 1.77M $200.75M +39.2%
STT State Street 1.76M $199.02M +17.5%
EJF Capital 1.49M $168.75M +194.3%
BLK Blackrock 1.45M $164.33M -0.9%
BankCap Equity Fund 1M $74.31M 0.0%
Lord, Abbett & Co. 744.76K $84.4M -31.9%
MARSHALL WACE ASIA 717.58K $81.32M +133.1%
ARK Investment Management 700.83K $79.42M -63.9%
IVZ Invesco 597.92K $67.76M -24.8%
Two Sigma Investments 440.94K $49.97M NEW
Largest transactions
Shares Bought/sold Change
ARK Investment Management 700.83K -1.24M -63.9%
Senvest Management 47.6K -988.5K -95.4%
EJF Capital 1.49M +983.08K +194.3%
Vanguard 1.77M +498.43K +39.2%
Two Sigma Investments 440.94K +440.94K NEW
MARSHALL WACE ASIA 717.58K +409.69K +133.1%
Lord, Abbett & Co. 744.76K -348.7K -31.9%
STT State Street 1.76M +261.98K +17.5%
IVZ Invesco 597.92K -197.4K -24.8%
DB Deutsche Bank AG - Registered Shares 308.85K +185.13K +149.6%

Financial report summary

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Risks
  • The characteristics of digital currency have been, and may in the future continue to be, exploited to facilitate illegal activity such as fraud, money laundering, tax evasion and ransomware scams; if any of our customers do so or are alleged to have done so, it could adversely affect us.
  • We rely heavily on the success of the digital currency industry, the development and acceptance of which is subject to a variety of factors that are difficult to evaluate.
  • We may not be able to implement aspects of our growth strategy, which may impact our position as the leading provider of innovative financial infrastructure solutions and services to participants in the digital currency industry and adversely affect our ability to maintain our recent growth and earnings trends.
  • The Bank has several large depositor relationships that are concentrated in the digital currency industry generally and among digital currency exchanges in particular, the loss of any of which could force us to fund our business through more expensive and less stable sources.
  • Our digital currency initiative has contributed significantly to an increase in our noninterest bearing deposits, which has driven the Bank’s funding costs to levels that may not be sustainable.
  • The prices of digital currencies are extremely volatile. Fluctuations in the price of various digital currencies may cause uncertainty in the market and could negatively impact trading volumes of digital currencies and therefore the extent to which participants in the digital currency industry demand our services and solutions, which would adversely affect our business, financial condition and results of operations.
  • System failure or cybersecurity breaches of our network security could subject us to increased operating costs as well as litigation and other potential losses.
  • We may not have the resources to keep pace with rapid technological changes in the industry or implement new technology effectively.
  • Our operations could be interrupted if our third-party service providers experience operational or other systems difficulties, terminate their services or fail to comply with banking regulations.
  • As a business operating in the financial services industry, our business and operations may be adversely affected in numerous and complex ways by weak economic conditions.
  • The recent COVID-19 pandemic has led to periods of significant volatility in financial, commodities and other markets and could harm our business and results of operations.
  • The spread of the COVID-19 outbreak and the governmental responses may disrupt banking and other financial activity in the areas in which we operate and could potentially create widespread business continuity issues for us.
  • Interest rate volatility stemming from COVID-19 could negatively affect our net interest income, lending activities, deposits and profitability.
  • We are subject to increasing credit risk as a result of the COVID-19 pandemic, which could adversely impact our profitability.
  • Unpredictable future developments related to or resulting from the COVID-19 pandemic could materially and adversely affect our business and results of operations.
  • We face strong competition from financial services companies and other companies that offer banking services.
  • We may not be able to measure and limit our credit risk adequately, which could lead to unexpected losses.
  • Our allowance for loan losses may prove to be insufficient to absorb potential losses in our loan portfolio.
  • Our commercial real estate loan portfolio exposes us to credit risks that may be greater than the risks related to other types of loans.
  • Because a significant portion of our loan portfolio held-for-investment is comprised of real estate loans, negative changes in the economy affecting real estate values and liquidity could impair the value of collateral securing our real estate loans and result in loan and other losses.
  • Our nascent SEN Leverage product has unique risks and may not perform to our expectations in the future, which would adversely affect our business, financial condition and results of operations.
  • Appraisals and other valuation techniques we use in evaluating and monitoring loans secured by real property, other real estate owned and repossessed personal property may not accurately describe the net value of the asset.
  • In the case of defaults on loans secured by real estate, we may be forced to foreclose on the collateral, subjecting us to the costs and potential risks associated with the ownership of the real property, or consumer protection initiatives or changes in state or federal law that may substantially raise the cost of foreclosure or prevent us from foreclosing at all.
  • We may not be able to protect our intellectual property rights, and may become involved in lawsuits to protect or enforce our intellectual property, which could be expensive, time consuming and unsuccessful.
  • Our concentration of large loans to a limited number of borrowers may increase our credit risk.
  • A lack of liquidity could impair our ability to fund operations and adversely impact our business, financial condition and results of operations.
  • We are subject to interest rate risk as fluctuations in interest rates may adversely affect our earnings.
  • Any future failure to maintain effective internal control over financial reporting could impair the reliability of our financial statements, which in turn could harm our business, impair investor confidence in the accuracy and completeness of our financial reports and our access to the capital markets and cause the price of our common stock to decline and subject us to regulatory penalties.
  • The accuracy of our financial statements and related disclosures could be affected if the judgments, assumptions or estimates used in our critical accounting policies are inaccurate.
  • We could recognize losses on investment securities held in our securities portfolio, particularly if interest rates increase or economic and market conditions deteriorate.
  • We are subject to certain operational risks, including, but not limited to, customer, employee or third-party fraud.
  • We rely heavily on our executive management team and other key employees, and we could be adversely affected by the unexpected loss of their services.
  • Negative public opinion regarding the Company or failure to maintain our reputation in the communities we serve could adversely affect our business and prevent us from growing our business.
  • We may not be able to raise the additional capital needed, in absolute terms or on terms acceptable to us, to fund our growth strategy in the future if we continue to grow at our current pace.
  • There is substantial legal and regulatory uncertainty regarding the regulation of digital currencies and digital currency activities. This uncertainty or adverse regulatory changes may inhibit the growth of the digital currency industry, including our customers, and therefore have a material adverse effect on the digital currency initiative.
  • Legislative and regulatory actions taken now or in the future may increase our costs and impact our business, governance structure, financial condition or results of operations.
  • Because of the Dodd-Frank Act and related rulemaking, the Bank and the Company are subject to more stringent capital requirements.
  • Federal and state banking agencies periodically conduct examinations of our business, including our compliance with laws and regulations, and our failure to comply with any supervisory actions to which we are or become subject based on such examinations could adversely affect us.
  • Our regulators may limit current or planned activities related to the digital currency industry.
  • Financial institutions, such as the Bank, face risks of noncompliance and enforcement actions related to the Bank Secrecy Act and other anti-money laundering statutes and regulations (in particular, as such statutes and regulations relate to the digital currency industry).
  • We are subject to anticorruption laws, including the U.S. Foreign Corrupt Practices Act (“FCPA”) and we may be subject to other anti-corruption laws, as well as anti-money laundering and sanctions laws and other laws governing our operations, to the extent our business expands to non-U.S. jurisdictions. If we fail to comply with these laws, we could be subject to civil or criminal penalties, other remedial measures, and legal expenses, which could adversely affect our business, financial condition and results of operations.
  • Increases in FDIC insurance premiums could adversely affect our earnings and results of operations.
  • Monetary policies and regulations of the Federal Reserve could adversely affect our business, financial condition and results of operations.
  • The market price of our common stock may be subject to substantial fluctuations, which may make it difficult for you to sell your shares at the volume, prices and times desired.
  • You may experience future dilution as a result of future equity offerings.
  • While our growth strategy is focused on the digital currency industry, investors should not expect that the value of our common stock to be correlated with the value of digital currencies. Our common stock is not a proxy for gaining exposure to digital currencies.
  • We are an emerging growth company, and the reduced regulatory and reporting requirements applicable to emerging growth companies may make our common stock less attractive to investors.
  • Provisions in our governing documents and Maryland law may have an anti-takeover effect, and there are substantial regulatory limitations on changes of control of bank holding companies.
  • Our common stock is not an insured deposit and is subject to risk of loss.
Management Discussion
  • Net income for the three months ended June 30, 2021 was $20.9 million, an increase of $15.5 million or 283.0% from net income of $5.5 million for the three months ended June 30, 2020. The increase was primarily due to a $14.3 million increase in net interest income, a $6.6 million increase in noninterest income and a $1.8 million decrease in income tax expense, offset by a $7.5 million increase in noninterest expense, all as described below.
  • Net income for the six months ended June 30, 2021 was $33.6 million, an increase of $23.8 million or 241.3% from net income of $9.9 million for the six months ended June 30, 2020. The increase was primarily due to a $21.9 million increase in net interest income, a $9.8 million increase in noninterest income and a $4.8 million decrease in income tax expense, offset by a $13.3 million increase in noninterest expense, all as described below.
  • We analyze our ability to maximize income generated from interest earning assets and control the interest expenses of our liabilities, measured as net interest income, through our net interest margin and net interest spread. Net interest income is the difference between the interest and fees earned on interest earning assets, such as loans, interest earning deposits in other banks and securities, and the interest expense incurred on interest bearing liabilities, such as deposits and borrowings, which are used to fund those assets.
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