Silvergate Bank’s Struggles
- Silvergate Bank stocks fell by 30% after hours following their announcement of a delay in releasing their annual 10-K report.
- The bank reported a $1 billion net loss and a $14 billion fall in customer deposits at the end of 2022.
- The bank is now going through additional steps to complete certain audits requested by its independent certified public accounting firm.
Delay In 10-K Report Release
Silvergate Bank announced that they would require an extra two weeks to finish the report for the fiscal year 2022. This new revelation caused the stock price of Silvergate Bank to fall by more than 30% as a result of this news. The 10-K report provides a thorough review of a company’s financial situation and commercial operations, and is mandated by the Securities and Exchange Commission (SEC).
In the final quarter of 2022, Silvergate announced a $1 billion net loss and a $14 billion fall in customer deposits due to “planned reduction in digital asset banking deposits” as well as general market turmoil. As a consequence, Silvergate was forced to turn to the Federal Home Loan Bank (FHLB) for a $4.3 billion loan in January. The bank also added that it is „currently in the process of re-evaluating its businesses and strategies.“