Silvergate Capital posts 84% rise in net income

The digital-asset-friendly bank Silvergate Capital reported net income for the second quarter of 2022 came in at $38.6 million (+84% versus April–June 2021).

In premarket trading, the bank’s shares rose about 12.5%. As of writing, the securities traded near $72.

Since the start of the year, Silvergate Capital’s shares have fallen 56.1% (as of July 18).

Diluted earnings per share stood at $1.13, versus last year’s $0.80 and $0.79 for January–March.

Transfers in the Silvergate Exchange Network over the latest reporting period rose 34% from Q1 to $191.3 billion, and were down 20% versus Q2 2021.

The bank continues to develop its Bitcoin-collateralised lending program, SEN Leverage. As of 30 June, the value of outstanding loans issued under the initiative stood at $1.4 billion. On 31 March this figure was $1.1 billion, and 30 June 2020 — $258.5 million.

The number of digital-industry clients rose over the past three months from 1,503 to 1,585. Fee income declined from $11.3 million year-on-year to $8.8 million ( $8.9 million in the first quarter).

Total revenue rose by about one-third versus January–March and by 88% versus the year-ago period, to $79.8 million.

Silvergate Capital’s assets remained essentially flat at $15.8 billion.

The quarterly average value of client deposits fell from $14.7 billion to $13.8 billion.

In February, Silvergate Capital bought the Diem stablecoin project from Meta.

Earlier Circle released the first monthly report on USDC collateral. In the document Silvergate Capital is listed as one of the custodian banks for the stablecoin’s reserves.

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