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Silvergate Capital Corporation Announces First Quarter 2021 Results VI ir.silvergate.com/news/news-details/2021/Silvergate-Capital-Corporation-Announces-First-Quarter-2021-Results/default.aspx 04/20/2021 First Quarter 2021 Highlights • Net income for the quarter was $ 12.7 million , or $ 0.55 per diluted share , compared to net income of $ 9.1 million , or $ 0.47 per diluted share , for the fourth quarter of 2020 , and net income of $ 4.4 million , or $ 0.23 per diluted share , for the first quarter of 2020 • The Silvergate Exchange Network ( " SEN " ) handled 166,772 transactions in the first quarter of 2021 , an increase of 84 % , compared to 90,763 transactions in the fourth quarter of 2020 , and an increase of 431 % compared to 31,405 transactions in the first quarter of 2020 • The SEN handled $ 166.5 billion of U.S. dollar transfers in the first quarter of 2021 , an increase of 181 % compared to $ 59.2 billion in the fourth quarter of 2020 , and an increase of 858 % compared to $ 17.4 billion in the first quarter of 2020 • • Digital currency customer related fee income for the quarter was $ 7.1 million , compared to $ 3.8 million for the fourth quarter of 2020 , and $ 1.7 million for the first quarter of 2020 Digital currency customers grew to 1,104 at March 31 , 2021 , compared to 969 at December 31 , 2020 , and 850 at March 31 , 2020 Digital currency customer deposits grew by $ 1.8 billion to $ 6.8 billion as of March 31 , 2021 , compared to $ 5.0 billion as of December 31 , 2020 • Completed two equity offerings , which resulted in the issuance of a total of 5,860,858 shares of Class A common stock for aggregate gross proceeds of $ 441.1 million and net proceeds of $ 423.5 million after deducting underwriting discounts and offering expenses Alan Lane , president and chief executive officer of Silvergate , commented , " We kicked off 2021 on a very strong note , as highlighted by Q1 growth across all of our Silvergate Exchange Network ( SEN ) key performance metrics , including continued customer growth , a significant increase in transactions and over $ 7 million in transaction revenue . As the SEN continues to expand , we have the opportunity to build upon the network effect to offer additional products and services to our customers . One example of this is SEN Leverage , our differentiated funding offering , which increased approved credit lines to $ 196.5 million in Q1 from $ 82.5 million in the prior quarter , as customers utilized this product . In March we announced that Coinbase Custody and Fidelity Digital Assets will be custodians for the SEN Leverage product , providing investors with more choice and greater access to capital . " " In addition , during Q1 , the average deposit balance was $ 6.6 billion , up from $ 2.8 billion in Q4 and $ 1.9 billion in Q1 2020 , " continued Mr. Lane . " Early in the year , we issued $ 287.5 million in equity and later put a $ 300 million ATM program in place to ensure we remain well capitalized to meet regulatory capital requirements as deposit growth accelerates . " Financial Highlights Net income Diluted earnings per share As of or for the Three Months Ended March 31 , 2021 December 31 , 2020 March 31 , 2020 ( Dollars in thousands , except per share data ) $ 12,710 $ 0.55 $ 9,119 $ 0.47 $ 4,393 $ 0.23 Return on average assets ( ROAA ) ( 1 ) 0.71 % 1.14 % 0.79 % Return on average equity ( ROAE ) ( 1 ) 9.76 % 12.60 % 7.14 % Net interest margin ( 1 ) ( 2 ) 1.33 % 2.85 20 % 2.86 % Cost of deposits ( 1 ) ( 3 ) 0.00 % 0.01 % 0.87 % Cost of funds ( 1 ) ( 3 ) 0.02 % 0.04 % 0.94 % Efficiency ratio ( 4 ) 63.03 % 65.87 % 67.98 % Total assets $ 7,757,152 $ 5,586,235 $ 2,310,708 Total deposits $ 7,002,371 $ 5,248,026 $ 2,002,957 1/14