Silvergate Capital Corp. · OTC:SICP
Silvergate Capital — Investor Presentation (August 2022)
14 slides from Silvergate Capital's investor presentation, Aug 8, 2022
Slide 1: Silvergate Capital Corporation Investor Presentation August 2022
Silvergate Capital Corporation Investor Presentation August 2022 Exhibit 99.1
Slide 2: Forward Looking Statements
2 Forward Looking Statements This presentation contains forward looking statements within the meaning of the Securities and Exchange Act of 1934, as amended, including statements of goals, intentions, and expectations as to future trends, plans, events or results of Company operations and policies a
Slide 3: Silvergate is Critical to the Continuing Expansion of the Digital Currency Industry
3 Silvergate is Critical to the Continuing Expansion of the Digital Currency Industry Companies developing new protocols, platforms, and applications; mining operations; and providers of other services 102 Customers 466 Customers Available 24/7, the SEN is a global payments platform that enables rea
Slide 4: Our Proprietary Technology Platform: Silvergate Exchange Network (SEN)
4 Our Proprietary Technology Platform: Silvergate Exchange Network (“SEN”) The value of the SEN to our customers increases with each incremental participant and broadens the opportunity for further adoption of Silvergate’s services 24/7 real-time transfers of USD between exchanges and investors usin
Slide 5: SEN Leverage: The Next Step in Driving Capital Efficiency
5 SEN Leverage: The Next Step in Driving Capital Efficiency Institutional investors seeking greater capital efficiency 24/7 API-enabled loan funding and monitoring Zero cumulative losses Massive potential market creates opportunity for recurring, asset management revenue Delete Delete Delete SEN
Slide 6: Platform Fueled by Powerful Network Effects
6 $2.0 $4.9 $11.1 $35.8 $17.7 FY 2018 FY 2019 FY 2020 FY 2021 YTD 2022 Platform Fueled by Powerful Network Effects Digital Currency Customers SEN LeverageTransaction Revenue Dollar Trading Volume ($ in millions) ($ in millions) ___________ Note: Transaction revenue represents fee income from digital
Slide 7: Our Zero-Cost Funding from Customers is a Strategic Advantage
7 Cash 12% Other 5% Securities 74% Loans 9% $ 0.8 bn $ 1.8 bn $ 2.1 bn $ 10.4 bn $ 14.4 bn YE 2016 YE 2018 YE 2020 YE 2021 Q2 2022 Our Zero-Cost Funding from Customers is a Strategic Advantage Asset Allocation $14.4 bn Funding from Customers Highly liquid asset strategy Significant capacity to grow
Slide 8: Platform is Driving Revenue Growth and Operating Leverage
8 Platform is Driving Revenue Growth and Operating Leverage Revenue1 Operating Expense2 ___________ 1 Net Interest Income + Noninterest Income. 2 Total Noninterest Expense. ($ in millions) Expanding profitability while making investments in strategic growth initiatives ($ in millions) $42.5 $51.7 $4
Slide 9: Network Effects of the SEN Create Multiple Avenues for Growth
9 Network Effects of the SEN Create Multiple Avenues for Growth The network effects of the SEN reinforce the strength of our product offerings, create a platform to launch new customer solutions, and enable high-quality revenue streams Silvergate Exchange Network Payments Lending Funding Stablecoin
Slide 10: Investment Highlights
10 Investment Highlights Established and Rapidly Growing Customer Network Expanding SEN Platform Enabling High-Growth, High-Quality Revenue Streams Robust Compliance Framework Innovative Technology with Multiple Growth Vectors The Payment Rails Enabling the Digital Currency Markets
Slide 11: Appendix
Appendix
Slide 12: Broader Crypto Industry Trends
12 Broader Crypto Industry Trends % Change in Dollar Volume by Quarter ($ in billions) ___________ Note: Industry data is provided by Coin Metrics (www.coinmetrics.io) as of July 1, 2022. Commentary • Industry volume is based on Bitcoin and Ethereum daily trusted spot volume as defined by Coin Metri
Slide 13: Robust Compliance and Risk Management Framework
13 Robust Compliance and Risk Management Framework Initial Due Diligence Ongoing Monitoring Our compliance process was built over the past eight years and has provided us with a strategic advantage within the digital currency industry that is the cornerstone of our leadership position today Daily Tr
Slide 14: 2Q22 Financial Results
14 2Q22 Financial Results $35.9M +45% vs PQ +72% vs PY Net Income Available to Common Shareholders $79.8M +33% vs PQ +88% vs PY Revenue 10.02% +4% vs PQ +28% vs PY Tier 1 Leverage Ratio $1.13 +43% vs PQ +41% vs PY Diluted EPS $30.6M +9% vs PQ +42% vs PY Noninterest Expense $15.9B Flat vs PQ +29% vs
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