Sam Boughedda

Investing.com — The shares of Silvergate Capital Corp After the fourth quarter earnings report, Silvergate Bank’s holding company (NYSE:), plunged 22% on Tuesday

Company earnings per share announced at 66c The analysts polled by Investing.comExpected EPS 72 cents The quarter’s net income was $21.4million, which is $23.5million in the third quarter 2021 and $9.1million for the fourth quarter 2020.

Net income in the full year was $78.5million, as compared to $26million for the period ending December 31, 2020.

Silvergate’s president Alan Lane stated that “2021 saw significant growth and momentum, and was fueled by demand for digital currency solutions powered via the SEN.”

“Total deposits increased to $14.3 billion by the end 2021, and our full-year net income more than tripled last year. This is due to growth in both fees income and net interest income.”

Silvergate shares dropped to $103.51 following the news. They are currently priced at $105.48 per Share as they close.

Steve Moss of B. Riley was correct in predicting an adverse stock reaction when he commented on Tuesday’s results prior to the bell. In a note, Moss also stated that Silvergate is still one of the most sensitive banks. It has a large amount of cash and securities so it should not be surprised if there’s a substantial interest rate rise. Analysts rate the stock as Buy and set a target price of $260.