Additional Information for Silvergate Capital Corporation

Department of Financial Protection v Silvergate Capital Corporation
The following describes a government action that has been resolved by either a settlement or a decision by a court or administrative agency. If the matter is being appealed, it will be noted below.

On May 23, 2023, Silvergate Capital Corporation entered into an Order to Cease and Desist with the Department of Financial Protection and Innovation. The Order settles allegations that the business had numerous deficiencies, including with respect to both safety and soundness and compliance with banking laws and regulations. Under terms of the Order, the business agreed to cease and desist and allow the board of directors to use the business' financial and managerial resources to comply with federal or state regulators, submit an acceptable voluntary self-liquidation plan that complies with federal and state law, shall not declare or pay dividends, repurchase, or make any other capital distribution in common shares, preferred shares, or other capital instruments without prior written approval, preserve their respective cash assets and shall not dissipate those assets without prior written approval, shall not acquire additional brokered deposits without the prior approval and without a written plan and must comply with the FDI act, shall not engage in any expansionary activities, new lines of business, or establish any new branches or other offices of the Bank, without the prior written approval, shall comply with the FDI act and get approval from the DFPI prior to any change in ownership or executive management, shall comply with the restrictions on indemnification and golden parachute payments set forth in the FDI act and FDIC regulations, take steps to preserve records and to suspend deletion, overwriting, modification, or other destruction of paper documents, electronic documents and metadata (in their current form), physical items, and data under the Bank’s control, and to fully cooperate.

This action is final.