Silvergate Capital Q2 Profit Surges

(RTTNews) - Bank holding company Silvergate Capital Corp. (SI) on Tuesday reported significantly higher earnings in the second quarter, helped by strong demand for its digital currency related solutions.

The company posted net income of $20.9 million or $0.80 per share in the second quarter, higher than $5.5 million or $0.29 per share in the prior-year period. On average, 7 analysts polled by Thomson Reuters expected the company to report earnings of $0.51 per share in the quarter. Analysts' estimates, usually, exclude one-time items.

During the second quarter, the company's net interest income rose to $23.5 million from $16.5 million in the comparable quarter last year. Non-interest income for the same period soared 122 percent to $12.1 million from $5.4 million a year ago.

The company's digital currency customers rose to 1,224 in the second quarter from 881 in the same period last year.

Commenting on the results, Alan Lane, President and Chief Executive Officer, said, "We nearly doubled pre-tax income compared to the prior quarter, driven by strong demand for our growing suite of digital currency related solutions powered by the Silvergate Exchange Network (SEN). In the second quarter of 2021, we continued to add new customers to the platform, grew network volume to a record $240 billion, and surpassed $10 million of transaction revenue for the first time."