La Jolla-based Silvergate Bank's deposit base totaled $1.7 billion as of the end of the first quarter of 2018, a 125.9 percent increase compared to a year ago, the bank said May 15 in its first-quarter earnings report.
Noninterest-bearing deposits totaled $1.4 billion, or about 83 percent of total deposits -- $1.2 billion more than a year ago, a reflection of the bank's status as the cash management provider of choice for cryptocurrency companies. Silvergate said deposits from companies in the financial technology industry totaled $1.3 billion as of March 31, $1.2 billion more than a year prior.
"The bank has experienced substantial growth in the number of new fintech deposit relationships during the first quarter of 2018, and continues to invest in technology and personnel to support this growth," Silvergate said.
Its equity capital rose to $154.7 million from $93.2 million at the end of 2017, nearly all attributable to the $114 million private placement completed by its parent company, Silvergate Capital Corp., earlier this year.
“Our higher capital base will sustain continued investments in technology and people to expand and improve the products and services offered to our business customers,” said Alan Lane, the bank's CEO.
Digital Currency Group, a venture capital firm focused on cryptocurrency, was among the buyers of the 9.5 million shares Silvergate sold in the placement.
The bank reported net income of $3.9 million in the first quarter of 2018, more than double the $1.6 million it reported in the same quarter the year prior.
Silvergate's net income in the final quarter of 2017 was $2.3 million.
“The first quarter’s net income was supported by continued strong loan production at good yields,” said Derek Eisele, the bank’s president.
Silvergate's assets totaled $1.9 billion as of March 31, up from $1.89 billion as of Dec. 31 and $949 million at the end of the first quarter of 2017.
Reach reporter Sarah de Crescenzo at email@example.com.