Silvergate Bank initiates NYSE delisting proceedings amid plans to lay off 230 employees

Silvergate Capital, the parent company of the defunct Silvergate Bank, has revealed that 230 employees will be let go as it prepares to be delisted from the New York Stock Exchange (NYSE).

In a filing to the US Securities and Exchange Commission (SEC) on May 11, Silvergate Capital announced the suspension of trading in its stock, with the delisting to commence “shortly” after.

The staff cut is estimated to cost the firm around $13.6 million, including expenses on severance, retention, bonus pays, and job placement programs.

After the cuts, approximately 80 officers and employees will be left behind to continue Silvergate Bank’s liquidation process.

In another SEC filing on the same day, Silvergate revealed that it’s unable to file legally required financial reports for the 2022 fiscal year and the first quarter of 2023, and doesn’t expect to be able to file any similar reports in the future.

The firm cited “challenges” due to “continuous developments relating to regulatory and other inquiries and investigations that are pending” and liabilities from legal action and the bank’s liquidation process.