LA JOLLA, Calif., Feb. 26, 2018 /PRNewswire/ -- Silvergate Capital Corporation ("Silvergate"), the holding company for Silvergate Bank, a California chartered commercial bank (the "Bank"), today announced it completed a private placement of 9.5 million shares of Silvergate common stock, generating gross proceeds of $114 million. Proceeds from this placement will support further growth in the Bank's nationwide fintech deposit initiative and its business banking and residential lending activities, as well as funding a one-time stock repurchase of approximately $11.4 million. The Bank's special focus on deposits and cash management services for emerging financial technology companies was a major factor in its 770% growth in noninterest bearing demand deposits in 2017, to $1.5 billion, or 82.5% of total deposits. The Bank also recently announced that 2017 was its twentieth consecutive profitable year, and the highest net income year in its history, with earnings of $8.7 million.
"We are very pleased with the outcome of our private placement, which generated broad based support from both traditional bank investors and other strategic investors," said Alan Lane, Silvergate's president and chief executive officer. "Our greatly increased capital base will support our growth and enable us to continue making investments in technology and people that will improve efficiency and productivity, and expand the products and services offered to our business customers."
"Our recent private placement is a major milestone in the history of Silvergate, increasing our equity capital by over 120%," said Dennis Frank, Silvergate's chairman. "The strong reception for this placement is a testament to our employees' sustained efforts in pursuing our strategies and the prospects that we believe lie before us."
Keefe, Bruyette & Woods, A Stifel Company and Compass Point Research & Trading, LLC acted as placement agents in the offering. Holland and Knight acted as counsel to Silvergate, and Sheppard, Mullin, Richter & Hampton LLP acted as counsel to the placement agents.
About Silvergate Capital Corporation
Silvergate Capital Corporation is a $1.9 billion asset bank holding company whose operating subsidiary, Silvergate Bank, is the largest of the six independent commercial banks headquartered in San Diego County.
About Silvergate Bank
Silvergate Bank is a San Diego-based commercial bank that specializes in meeting the needs of businesses and residential loan producers through a comprehensive offering of lending products and personalized banking services. Business banking centers are located in Carlsbad, Escondido, La Jolla, and La Mesa and a loan production office is located in Orange County. Silvergate Bank's headquarters office is located at 4250 Executive Square, Suite 300, La Jolla, CA 92037. The Bank's website is www.silvergatebank.com.
Statements concerning future performance, developments or events, expectations for growth and income forecasts, and any other guidance on future periods, constitute forward-looking statements that are subject to a number of risks and uncertainties. Neither Silvergate Capital Corporation nor Silvergate Bank undertakes any obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.
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SOURCE Silvergate Capital Corporation