Financial Performance - Interest income for the three months ended June 30, 2022, was 50,838,000 for the three months ended March 31, 2022, representing a growth of 40.9%[138]. - Net interest income after provision for loan losses was 52,969,000 for the previous quarter, marking a 33.3% increase[138]. - Noninterest income was 9,450,000 in the previous quarter[138]. - Net income available to common shareholders was 24,698,000 in the previous quarter, reflecting a 45.4% increase[138]. - Net income for the three months ended June 30, 2022 was 11.2 million or 41.0% from 66.0 million, an increase of 33.6 million for the same period in 2021[145]. Asset and Liability Management - Total assets decreased to 16,005,495,000 as of December 31, 2021[140]. - Total liabilities increased to 14,396,659,000 as of December 31, 2021[140]. - Total assets amounted to 185.6 million to 379.3 million decrease in accumulated other comprehensive income[212]. - The Company maintained a Tier 1 leverage ratio of 10.02% and a common equity tier 1 capital ratio of 39.64% as of June 30, 2022, exceeding regulatory requirements[212]. Loan Portfolio and Quality - Total gross loans held-for-investment decreased to 893.9 million in December 2021, reflecting a decrease of approximately 4.4 million as of June 30, 2022, down from 4.3 million as of June 30, 2022[190]. - The company emphasized SEN Leverage as its core lending product, moving away from custodial arrangements subject to SAB 121[179]. - The company has established underwriting guidelines and monitors delinquency levels to maintain loan portfolio quality[181]. Deposits and Funding - Deposits decreased by 13.5 billion at June 30, 2022, compared to 13.4 billion, representing approximately 99.5% of total deposits at June 30, 2022[199]. - The Company had 1.6 billion in available borrowing capacity[204]. - The total deposits held by digital currency exchanges amounted to $8.1 billion as of June 30, 2022, with 102 customers[200]. Digital Currency and Market Position - The company has over 300 prospective digital currency customer leads in various stages of onboarding as of June 30, 2022, indicating strong demand for its services[132]. - The digital currency industry is viewed as a significant and growing market, with the company leveraging its expertise to develop critical financial infrastructure solutions[131]. - The company aims to develop additional products and services to enhance the SEN network effects and provide further financial infrastructure solutions[130]. - The company has experienced a first-mover advantage in the digital currency industry since it began exploring this market in 2013, which has contributed to its leadership position[131]. Regulatory Compliance - The company is subject to supervision by the Federal Reserve and the California Department of Financial Protection and Innovation, ensuring regulatory compliance[130]. - The Company is classified as "well capitalized" under prompt corrective action regulations, complying with all applicable regulatory capital requirements[212]. Interest Rate and Risk Management - The Company utilizes interest rate floors, caps, and swaps to hedge against interest rate risk, maintaining an asset-sensitive position[214]. - The Bank's asset liability management strategy includes regular reviews of interest rate sensitivity and liquidity to optimize financial performance[214].
Silvergate Capital(SICP) - 2022 Q2 - Quarterly Report