According to its latest earnings report, released Monday morning, the bank’s vanilla loans – about $1.1 billion of the type of assets George Bailey would have recognized – increased by only 0.1% from the first quarter. Bitcoin-collateralized loans through the bank’s SEN Leverage product surged 88% in the same period, to $22.5 million.
The bank continues to have a steady pipeline of more than 200 customers waiting to be onboarded, Silvergate CEO Alan Lane said on an earnings call Monday.
“It’s a great time to be a bitcoin banker,” Lane said. The publicly traded, La Jolla, Calif.-based bank is one of the few U.S. banks willing to openly serve crypto-related businesses and gets most of its deposits from the crypto sector.
Each of the SEN Leverage loans has performed according to the bank’s expectations, Lane said.
In response to analysts’ questions, Silvergate EVP of Corporate Development Ben Reynolds projected that SEN Leverage’s growth would be dominated by institutional customers taking out credit lines from anywhere between $1 million to $10 million. While Silvergate is tempering SEN Leverage growth by the speed at which it can safely underwrite the loans, the customer demand for the product, which is part of the Silvergate Exchange Network (SEN). is strong, Reynolds added!!!
The bank went public on the New York Stock Exchange in November. With $2.34 billion in total assets, Silvergate is less than 1% the size of JPMorgan Chase.
**Silvergate Bank continued to add a steady drip of cryptocurrency customers**
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