Silvergate Capital (SI) to reduce headcount, focus on liquidation

Silvergate Capital (NYSE: SI) disclosed:

Beginning on May 12, 2023, Silvergate Capital Corporation (the “Company”) will undertake additional reductions in headcount, which reductions will ultimately reduce substantially all of its headcount. Effective on May 12, 2023, approximately 230 employees will be separated. Additional incremental reductions in headcount are expected to occur on each of June 30, 2023, August 30, 2023 and November 30, 2023 or later. These actions are taken in connection with the previously disclosed efforts to wind down operations and voluntarily liquidate the Company’s wholly-owned subsidiary, Silvergate Bank (the “Bank”), in an orderly manner and in accordance with applicable regulatory processes (the “Bank Liquidation”).

Following the reduction effective in May, the remaining approximately 80 officers and employees will focus on implementing the Bank Liquidation, preserving the residual value of the Company’s assets and addressing the regulatory and other inquiries and investigations that are pending with respect to the Company and the Bank.

Impacted employees have been notified, and the Company is providing certain of these individuals with severance packages, retention bonuses and job placement resources. The Company estimates aggregate costs associated with these reductions in force of approximately $13.6 million, including approximately $10.7 million in severance and retention bonus payments and $2.8 million in employee benefits and job placement expenses.

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