secwatch / observer
8-K filed January 5, 2023, 6:59 PM ET CIK 0001312109
other material confidence high sentiment negative materiality 0.90

Silvergate Capital Corp: restructuring charge — Silvergate cuts 40% workforce, takes $196M impairment, deposits plunge to $3.8B

Silvergate Capital Corp

Key facts

Extracted from this filing and checked against the source text.

Restructurings & Charges SEC 8-K Item 2.05/2.06 confidence 0.9

Silvergate Capital Corp announced a impairment with charges of $196 million impairment charge related to developed technology assets purchased in January 2022 affecting developed technology assets.

Type
impairment
Charge
$196 million impairment charge related to developed technology assets purchased in January 2022
Affected area
developed technology assets
Exact text from the filing
After performing an impairment analysis of the Company’s intangible assets, the Company will take an impairment charge of $196 million in the fourth quarter of 2022 related to developed technology assets purchased in January 2022.
View on SEC.gov
Restructurings & Charges SEC 8-K Item 2.05/2.06 confidence 0.9

Silvergate Capital Corp announced a restructuring with charges of approximately $8.0 million, including approximately $6.1 million in severance payments and $1.3 million in employee benefits affecting employee headcount reduction of 200 employees (40% of workforce) (approximately 200 employees or 40% of its workforce).

Type
restructuring
Charge
approximately $8.0 million, including approximately $6.1 million in severance payments and $1.3 million in employee benefits
Affected area
employee headcount reduction of 200 employees (40% of workforce)
Headcount
approximately 200 employees or 40% of its workforce
Exact text from the filing
The Company is reducing its headcount by approximately 200 employees or 40% of its workforce in order to account for the economic realities facing the digital asset industry today. Reducing headcount will enable the Company to continue to offer a tailored customer experience, while prudently managing expenses in a more challenging macro environment. Impacted employees were notified on January 4, 2023, and the Company is providing these individuals with severance packages and job placement resources. The Company estimates aggregate costs associated with the reduction in force of approximately $8.0 million, including approximately $6.1 million in severance payments and $1.3 million in employee benefits.
View on SEC.gov
Restructurings & Charges SEC 8-K Item 2.05/2.06 confidence 0.9

Silvergate Capital Corp announced a restructuring with charges of $4.0 million restructuring charge incurred in the fourth quarter of 2022 primarily related to severance and employee benefit costs associated with the Company e affecting mortgage warehouse lending product exit.

Type
restructuring
Charge
$4.0 million restructuring charge incurred in the fourth quarter of 2022 primarily related to severance and employee benefit costs associated with the Company e
Affected area
mortgage warehouse lending product exit
Exact text from the filing
These costs are in addition to a $4.0 million restructuring charge incurred in the fourth quarter of 2022 primarily related to severance and employee benefit costs associated with the Company exiting its mortgage warehouse lending product in the fourth quarter of 2022.
View on SEC.gov

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Source: SEC EDGAR
accession 0001312109-23-000011
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