Silvergate stock crashes after company delays annual report, reveals new losses

Shares of troubled lender Silvergate (SI) fell 45% at Thursday morning’s open after the company said late Wednesday it will miss a March 16 deadline to file its already-delayed annual report.

The bank said its team “requires additional time to perform analysis, record journal entries related to subsequent events and to complete management’s evaluation of internal controls over financial reporting.”

“The Company is currently analyzing certain regulatory and other inquiries and investigations that are pending with respect to the Company,” the company added.

Silvergate shares have collapsed over the last year as the company’s entanglements with several crypto firms — including bankrupt exchange FTX, among others — resulted in deposits falling by more than two-thirds in the fourth quarter of last year. 

In January, the company laid off 40% of its staff. The company later suspended a dividend paid on preferred shares as it sought to shore up cash.