As was reported yesterday, Silvergate Capital Corporation (NYSE:SI) has announced it will be unable to meet its deadline in posting its annual report (10-K) for 2022 and will not be able to make the extended deadline of March 16, 2023. Following the announcement, shares tanked by over 30% in after-hours trading. The drop is continuing this morning, with shares now trading at about $7.50 – representing around a 44% decline versus the market close yesterday.
Investors are selling shares as Silvergate included a statement regarding worries about its ability to remain a going concern. At the same time, Silvergate indicated it may be undercapitalized.
As a federally chartered bank, regulators will be all over this – looking for ways to prop up Silvergate with the options being obvious. While Silvergate may be able to pull out of the dive, it may be compelled to make other decisions that put its equity at risk.