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Tuesday, Mar 19, 2024
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Silvergate Bank Reports Record Yearly Income

Silvergate Bank, headquartered in La Jolla and with four branches, reported record 2010 net income of $3 million, up 66 percent from net income of $1.86 million in 2009.

The profit bested Silvergate’s previous record set in 2003.

The results were achieved from continued growth of interest income, not from a reversal of loan loss reserves, said Chairman Dennis Frank.

Total assets grew 2 percent over the year to $370.4 million, but loans were flat, increasing 0.37 percent to $266.9 million.

Deposits increased by 9 percent to $270.2 million, but demand deposits were up 84 percent.

Silvergate avoided much of the damage from the housing and real estate bubble bursting when it became very selective about its lending, starting in the mid-2000s.

As a result, it’s been expanding its business lines, including adding a mortgage warehouse lending division in 2009 that has thus far funded $1.2 billion in mortgages.

Asset quality of Silvergate’s portfolio is better than most with nonperforming loans to total assets at 1.72 percent. Yet that’s up from the end of 2009 when problem loans were 1.32 percent of total assets.

Capital ratios all exceed the higher regulatory standards, with total risk based ratio at 16 percent, above the 10 percent threshold to be considered well-capitalized.

— Mike Allen

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