Silvergate Launches Initial Public Offering of Class a Common Stock

LA JOLLA, Calif.–(BUSINESS WIRE)–Silvergate Capital Corporation (“Silvergate” or the “Company”) announced the launch of its initial public offering of 3,744,307 shares of Class A common stock. Silvergate is offering 770,000 shares of its Class A common stock and selling shareholders are offering 2,974,307 shares of Class A common stock. The initial public offering price is expected to be between $13.00 and $15.00 per share. The selling shareholders also expect to grant the underwriters a 30-day option to purchase up to an additional 561,645 shares of Class A common stock from selling shareholders. In connection with the initial public offering, shares of Silvergate are expected to trade on the New York Stock Exchange under the ticker symbol “SI.”

Silvergate intends to use the net proceeds from the proposed offering to fund organic growth and for general corporate purposes, which could include repayment of long-term debt, future acquisitions and other growth initiatives. Silvergate will not receive any proceeds from the sale of shares of common stock by the selling shareholders in the offering.

Barclays and Keefe, Bruyette & Woods, A Stifel Company will act as joint lead book-running managers. Sandler O’Neill + Partners, L.P. and Compass Point are also acting as book-running managers, with Galaxy Digital and Performance Trust Capital Partners, LLC, acting as co-managers for the offering.

The offering will be made only by means of a prospectus. Copies of the preliminary prospectus relating to the offering may be obtained from Barclays Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by calling (888) 603-5847, or by email at barclaysprospectus@broadridge.com, or from Keefe, Bruyette & Woods, Inc., Attention: Equity Capital Markets, 787 Seventh Avenue, 4^th Floor, New York, NY 10019, or by calling (800) 966-1559.

A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold, nor may offers to buy these securities be accepted, prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.

About Silvergate

Silvergate Capital Corporation is a registered bank holding company for Silvergate Bank, headquartered in La Jolla, California. Silvergate Bank is a commercial bank that opened in 1988, has been profitable for 21 consecutive years, and has focused its strategy on creating the banking platform for innovators, especially in the digital currency industry, and developing product and service solutions addressing the needs of entrepreneurs. As of September 30, 2019, Silvergate had total assets of $2.1 billion, total deposits of $1.8 billion, and total stockholders’ equity of $230.6 million.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements. These forward-looking statements reflect Silvergate’s current views with respect to, among other things, the commencement and completion of the initial public offering of its common stock. Any statements about Silvergate’s expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “could,” “should,” “seeks,” “projects”, “can”, “ongoing”, “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of those words or other comparable words. Silvergate cautions that the forward-looking statements in this press release are based largely on Silvergate’s expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond Silvergate’s control. Actual results, performance or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements. Any forward-looking statements presented herein are made only as of the date of this press release, and Silvergate does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, new information, the occurrence of unanticipated events, or otherwise, except as required by law.