Silvergate Bank Delays Annual Report as Troubles Mount
Silvergate Bank has delayed the filing of its annual 10-K report, according to a filing dated March 1.
The bank has requested an additional two weeks to complete the report for the 2022 fiscal year. 10-K reports provide investors with a detailed overview of a company’s financial performance, business activities, and risks.
They are required by the Securities and Exchange Commission (SEC) for publicly traded companies in the United States to file annually within 60 days after the end of their fiscal year.
The delay in filing indicates deep troubles for the bank, anticipating further losses in the coming months. This is after selling additional investment securities in the past two months to repay outstanding advances from Federal Home Loan Bank.
These losses will negatively impact the bank’s regulatory capital ratios and could result in it being less than well-capitalized. Therefore, the bank has requested time until March 16 to analyze the issues, citing its independent auditor’s need for additional time.
Silvergate shareholders have responded negatively to the news, with the stock plummeting by more than 31% in after-hours trading. This uncertainty regarding the bank’s financial health has put downward pressure on the stock price.
Unfortunately, according to NYSE insights shared by MarketWatch, the bank is one of the most shorted stocks in the market.
Silvergate Bank has been under the regulatory radar due to its connection to the bankrupt exchange FTX and now faces a series of bad factors that have led to its fall.
This includes its recent involvement with Binance, the largest crypto exchange by trading volume, which has caused chaotic developments that can significantly impact involved investors and shareholders.