Why Shares of Silvergate Capital Are Up Today
Shares of Silvergate Capital (NYSE: SI) traded more than 14% higher as of 2:05 p.m. EDT, after the bank reported stellar earnings for the second quarter of the year.
The bank, which helps facilitate transactions between institutional traders and crypto exchanges through its Silvergate Exchange Network (SEN), reported diluted earnings per share (EPS) of $0.80, up 65% from the previous quarter and 283% from the second quarter of 2020. Both EPS and revenue of $42.5 million in the quarter smashed expectations from analysts.
The bank grew net interest income by 32% from the previous quarter and nearly 90% year over year, due to higher securities levels and growth in its specialized lending product, SEN Leverage, which is a line of credit in U.S. dollars collateralized by Bitcoin. Silvergate also grew digital currency fee income by $4 million in the quarter, and overall had more than $12 million in fee income in the quarter, its most ever.
Source Fool.com
