The Bank Slate


Silvergate halts dividend on series of preferred stock

Silvergate Capital in La Jolla, Calif., is preserving capital by suspending dividends on a series of preferred stock.

The $11.4 billion-asset company said in a press release that dividends were paused on its 5.375% fixed-rate non-cumulative perpetual preferred stock

“This decision reflects the company’s focus on maintaining a highly liquid balance sheet with a strong capital position as it navigates recent volatility in the digital asset industry,” the release said.

Silvergate said it continues to maintain a cash position in excess of its digital asset customer related deposits.

The board will re-evaluate the payment of quarterly dividends as market conditions evolve.

Silvergate, which has been navigating hits to the digital asset industry, sold securities at a loss and borrowed from the Federal Home Loan Bank system in the fourth quarter to offset losing more than half of its deposits over that period.

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