Yahoo Finance Silvergate Capital Shares Plunge on Earnings Miss
By Sam Boughedda
Investing.com — Shares of Silvergate Capital Corp (NYSE:SI), the holding company for Silvergate Bank, plunged over 22% Tuesday following its fourth-quarter earnings report.
The company announced earnings per share of 66 cents. Analysts polled by Investing.com anticipated EPS of 72 cents. Net income for the quarter was $21.4 million, compared to $23.5 million in the third quarter 2021, and $9.1 million for fourth quarter 2020.
The full-year net income was $78.5 million compared to $26 million for the year ended December 31, 2020.
"2021 was another year of significant growth and momentum for Silvergate, driven by strong demand for our digital currency solutions powered by the SEN," said Alan Lane, president and chief executive officer of Silvergate.
"Total deposits grew to $14.3 billion at the end of 2021 and our full year net income more than tripled compared to last year, reflecting growth in both fee income and net interest income."
Silvergate shares hit a low of $103.51 on the news. Heading into the close they are priced at $105.48 per share.
Commenting on the results ahead of Tuesday's opening bell, B. Riley analyst Steve Moss was right to predict an adverse stock reaction. However, he also told investors in a note that Silvergate remains one of the most asset-sensitive banks with a high level of cash and securities that should benefit from a significant interest rate increase. The analyst has a Buy rating and a $260 price target on the stock.
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Silvergate Capital Shares Plunge on Earnings Miss
