Silvergate Capital (NYSE:SI) shares are jumping 10.7% in Tuesday premarket trading after the crypto bank's Q2 earnings breezed past Wall Street expectations, highlighted by growth in its Silvergate Exchange Network ("SEN") as well as net interest margin.
Q2 adjusted EPS of $1.13 exceeded the average analyst estimate of $0.85 and perked up from $0.79 in Q1 and $0.80 in Q2 2021.
The SEN, which enables U.S. dollar transfers between participating Silvergate account holders, handled $191.3B of USD transfers in the second quarter, up from $142.3B in Q1 but down from $239.6B in Q2 2021.
Also, "we saw continued demand for our SEN Leverage product, with no losses or forced liquidations," said CEO and President Alan Lane.
SEN Leverage commitments of $1.4B at June 30 vs. $1.1B at March 31 and $258.5M at June 30, 2021.
Net interest margin came in at 1.96% in Q2, up from 1.36% in Q1 and 1.16% in the year-ago period, primarily driven by higher yields on adjustable rate securities and loans.
Its digital currency customers grew to 1,585 at June 30 from 1,503 at March 31 and 1,224 at June 30, 2021.
Q2 deposits totaled $13.5B vs. $13.4B in Q1 and $11.4B in Q2 2021. Loans of $1.5B in the second quarter decreased from $1.7B in Q1 and roughly matched ~$1.5B from a year ago.
Return on average common equity was 10.99% in Q2 compared with $6.87% in Q1 and 10.40% in Q2 a year ago.
Q2 book value of $38.86 per share dipped from $42.77 in Q1, though gained from $32.84 in Q2 2021.
Conference call at 11:00 a.m. ET.
Earlier, Silvergate Capital revenue of $79.76M beat the consensus of $70.32M.