Crypto-focused bank Silvergate Capital publishes its financial report for the third quarter and it appears it has missed both earnings and revenue estimates for Q3 earnings, making shares drop nearly 14%.
According to the report, the Silvergate Exchange Network (“SEN”) processed transfers of $112.6 billion in U.S. dollars, down 41% from the second quarter’s $191.3 billion and 30% from 2021’s $162.0 billion.
Compared to the second quarter of 2022’s net income of $38.6 million and the third quarter of 2021’s net income of $23.5 million, the current quarter’s net income is $43.3 million.
Relative to 1,585 on June 30, 2022, and 1,305 on September 30, 2021, the number of digital asset customers increased to 1,677 on September 30, 2022.
Total commitments for SEN Leverage grew to $1.5 billion on September 30, 2022, up from $322.5 million on September 30, 2021, and $1.4 billion on June 30, 2022.
Digital asset customer-related fee income for the quarter was $7.9 million compared to $8.8 million for the second quarter of 2022 and $8.1 million for the third quarter of 2021.
Compared to the second quarter of 2022, when average digital asset customer deposits were $13.8 billion, the third quarter of 2022 saw deposits of $12.0 billion.
Alan Lane, CEO, and President of Silvergate stated, “Silvergate delivered another quarter of strong performance, achieving record net income available to common shareholders of $40.6 million. I look forward to the rest of this year and remain confident in our path forward as we head into the last quarter of 2022.”
Lane noted the company will continue to invest in strategic initiatives and balance our culture of innovation with its risk-based approach to launching new products.
Also Read: Silvergate CEO Believes ‘Bear Market’ will Prevail for a Few More Quarters
