Silvergate Capital Corporation, the holding company for Silvergate Bank (the “Bank”), today announced that, in connection with the previously disclosed plan to wind down the operations of and voluntarily liquidate the Bank in an orderly manner and in accordance with applicable regulatory processes (the “Bank Liquidation”), the Bank has fully repaid all of its remaining deposit liabilities, other than de minimis amounts amounting to less than $10,000. Every Bank depositor has been fully repaid without risk to the Deposit Insurance Fund. Silvergate continues to focus on implementing the Bank Liquidation. After the Bank repaid all deposits in full, the Company, on a consolidated basis, held excess cash and cash equivalent balances.
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While the Company currently holds positive cash and cash equivalent balances, the Company has contingent liabilities related to, among other things, regulatory matters and other inquiries and investigations that are pending with respect to the Company and the Bank, potential liabilities resulting from various litigation with respect to the Company (including private litigation) and the Bank Liquidation, and is unable to quantify the amounts of such contingent liabilities. In addition, the Company has expenses necessary for the operation of the Company and/or the Bank, employee benefits and compensation and fees and expenses of professionals retained by the Company in connection with the Bank Liquidation and such regulatory matters, investigations and litigation. Therefore, there can be no assurance of the Company’s ability to maintain positive cash and cash equivalent balances or adequate capital and reserves through the Bank Liquidation.
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