Silvergate Bank to Wind Down Operations and Voluntarily Liquidate: What You Need to Know

Silvergate Capital Corporation, Silvergate Bank’s holding company, has announced that it will wind down operations and voluntarily dissolve the Bank. This is in accordance with regulatory processes. Silvergate believes that an orderly winding down and voluntary liquidation are the best options due to recent industry developments and regulatory changes. The Bank’s wind-down plan includes the full repayment of all deposits. The Bank is exploring other options to settle claims and preserve the remaining value of its assets, which includes its proprietary technology and tax assets.

Centerview Partners LLC is serving as financial advisor, Cravath, Swaine & Moore LLP as legal advisor, and Strategic Risk Associates is providing transition project management assistance.

Silvergate Bank also announced that it will discontinue Silvergate Exchange Network (SEN) on its public website on March 3, 2023. While the Company is going through the wind-down, all other deposit-related services will continue to work. Any further changes will be communicated to customers.

The Company cautions that there are or will be important factors that could cause the Company’s actual results to differ materially from those indicated in these forward-looking statements. These factors include, but are not limited to, the ability of the Company to wind down the Bank’s operations and liquidate the Bank in an orderly and timely manner, the ability to fully repay customer deposits, the ability to successfully resolve claims and preserve any residual value of its assets, the ability to comply with heightened regulatory scrutiny, and the risk of various litigation and regulatory and other inquiries and investigations.

Silvergate Capital Corporation stresses the fact that this announcement includes forward-looking statements, within the meaning of Section 34 of the Securities Exchange Act of 1933. Although these statements are reasonable at the time they were made, they do not guarantee future performance.