Crypto-focused bank Silvergate Capital (SI) suspended dividend payments on its preferred stock as it seeks to preserve capital.
The suspension affects its 5.375 Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A, Silvergate said Friday. Common shares of the La Jolla, California-based bank fell about 10 in pre-market trading.
The bank said the decision reflects its "focus on maintaining a highly liquid balance sheet with a strong capital position as it navigates recent volatility in the digital asset industry."
Silvergate posted a grim set of results earlier this month, revealing that it suffered a loss of $1 billion in the fourth-quarter, culminating in a $949 million full-year loss.
Suffering contagion from the collapse of several crypto firms last year, which came to a head with the demise of crypto exchange FTX in November, Silverbank‘s stock lost around 90 of its value in 2022. This has continued in the early part of 2023, with the shares down a further 18 in January.
