Silvergate down 10% after announcing fourth-quarter financials for 2021

Silvergate Capital Corporation (NYSE: SI) went down 10% after Silvergate Bank, its wholly-owned subsidiary, announced its fourth-quarter financials for 2021. 

Financial highlights 

The company reported $21.4 million in net income in the fourth quarter of 2021, which was way more than the $9.1 million it recorded in the same quarter of the previous year. However, it was less than the $23.5 million it recorded in the third quarter of 2021. The net income that common shareholders had access to in Q4 2021 was $18.4 million 

The Silvergate Exchange Networks handled dollar transfers amounting to around $219.2 billion in Q4 2021, which was a 270% increase compared to the $59.2 it handled in the same quarter of the previous fiscal year. It was also more than the $162 billion it recorded in the previous quarter of 2021. 

Total Silvergate Exchange Network leverage commitments came to about $570 million in the fourth quarter of 2021. This was way more than the $82.5 million it recorded in the same quarter of the previous fiscal year. 

Net income for the whole financial year of 2021 came to around $78.5 million, a lot more than the $26 million the company recorded in the previous financial year. As a result, the net income common shareholders had access to in the 2021 financial year was $25.5 million, or a diluted per common share of $2.91.

The Rivergate Exchange Network handled dollar transfers of about $787.4 billion in the 2021 fiscal year, which was also way more than the $135.7 billion it handled in the previous fiscal year. 

Management comments 

Silvergate’s Chief Executive Officer and President, Alan Lane, confirmed how 2021 was a year of significant growth for them, which was driven by solid demand for their digital currency options powered by the Silvergate Exchange Network. Mr. Lane said:

The CEO continued on: