false--12-31Q3201900013121090.350.010.01125000000250000001662900011900001665400011900001662900011900001665400011900000016000000055000001000000000.0110000000000000311000001165000 0001312109 2019-01-01 2019-09-30 0001312109 us-gaap:CommonClassAMember 2019-11-27 0001312109 us-gaap:CommonClassBMember 2019-11-27 0001312109 2018-12-31 0001312109 2019-09-30 0001312109 us-gaap:CommonClassAMember 2018-12-31 0001312109 us-gaap:CommonClassAMember 2019-09-30 0001312109 us-gaap:CommonClassBMember 2018-12-31 0001312109 us-gaap:CommonClassBMember 2019-09-30 0001312109 2018-01-01 2018-09-30 0001312109 2018-07-01 2018-09-30 0001312109 2019-07-01 2019-09-30 0001312109 2019-03-31 0001312109 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-30 0001312109 us-gaap:RetainedEarningsMember 2019-01-01 2019-03-31 0001312109 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 0001312109 us-gaap:AdditionalPaidInCapitalMember 2019-07-01 2019-09-30 0001312109 2019-01-01 2019-03-31 0001312109 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2019-09-30 0001312109 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2019-09-30 0001312109 2019-06-30 0001312109 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2018-12-31 0001312109 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2019-03-31 0001312109 us-gaap:AdditionalPaidInCapitalMember 2019-09-30 0001312109 us-gaap:RetainedEarningsMember 2019-09-30 0001312109 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2019-07-01 2019-09-30 0001312109 us-gaap:RetainedEarningsMember 2019-04-01 2019-06-30 0001312109 us-gaap:RetainedEarningsMember 2019-07-01 2019-09-30 0001312109 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0001312109 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2019-06-30 0001312109 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2018-12-31 0001312109 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-03-31 0001312109 2019-04-01 2019-06-30 0001312109 us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0001312109 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-07-01 2019-09-30 0001312109 us-gaap:AdditionalPaidInCapitalMember 2019-04-01 2019-06-30 0001312109 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2019-03-31 0001312109 us-gaap:RetainedEarningsMember 2019-06-30 0001312109 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0001312109 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-09-30 0001312109 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2019-06-30 0001312109 us-gaap:RetainedEarningsMember 2018-12-31 0001312109 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2019-04-01 2019-06-30 0001312109 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-04-01 2019-06-30 0001312109 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0001312109 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-03-31 0001312109 us-gaap:RetainedEarningsMember 2019-03-31 0001312109 us-gaap:RetainedEarningsMember 2018-07-01 2018-09-30 0001312109 us-gaap:RetainedEarningsMember 2018-04-01 2018-06-30 0001312109 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2018-09-30 0001312109 us-gaap:AdditionalPaidInCapitalMember 2018-09-30 0001312109 us-gaap:AdditionalPaidInCapitalMember 2018-04-01 2018-06-30 0001312109 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-06-30 0001312109 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2018-01-01 2018-03-31 0001312109 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2017-12-31 0001312109 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2018-03-31 0001312109 us-gaap:AdditionalPaidInCapitalMember 2018-07-01 2018-09-30 0001312109 us-gaap:RetainedEarningsMember 2018-01-01 2018-03-31 0001312109 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2018-01-01 2018-03-31 0001312109 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2018-04-01 2018-06-30 0001312109 us-gaap:RetainedEarningsMember 2018-03-31 0001312109 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-01-01 2018-03-31 0001312109 2018-04-01 2018-06-30 0001312109 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2018-06-30 0001312109 us-gaap:AdditionalPaidInCapitalMember 2018-01-01 2018-03-31 0001312109 2018-03-31 0001312109 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2017-12-31 0001312109 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-04-01 2018-06-30 0001312109 us-gaap:AdditionalPaidInCapitalMember 2018-03-31 0001312109 us-gaap:RetainedEarningsMember 2018-06-30 0001312109 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-03-31 0001312109 2017-12-31 0001312109 2018-01-01 2018-03-31 0001312109 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2018-07-01 2018-09-30 0001312109 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2018-09-30 0001312109 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-12-31 0001312109 us-gaap:AdditionalPaidInCapitalMember 2018-06-30 0001312109 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-07-01 2018-09-30 0001312109 us-gaap:RetainedEarningsMember 2017-12-31 0001312109 us-gaap:RetainedEarningsMember 2018-09-30 0001312109 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-09-30 0001312109 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2018-06-30 0001312109 2018-06-30 0001312109 us-gaap:AdditionalPaidInCapitalMember 2017-12-31 0001312109 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2018-03-31 0001312109 2018-09-30 0001312109 us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMember si:RetailBranchInSanMarcosCaliforniaMember 2019-03-01 2019-03-31 0001312109 us-gaap:AccountingStandardsUpdate201815Member 2019-09-30 0001312109 us-gaap:AccountingStandardsUpdate201602Member 2019-01-01 0001312109 si:GovernmentGuaranteedCollateralCommercialMember 2018-12-31 0001312109 us-gaap:GovernmentGuaranteedCollateralMember 2019-09-30 0001312109 us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember 2019-09-30 0001312109 us-gaap:AssetBackedSecuritiesMember 2018-12-31 0001312109 us-gaap:AssetBackedSecuritiesMember 2019-09-30 0001312109 us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember 2018-12-31 0001312109 si:GovernmentGuaranteedCollateralResidentialMember 2018-12-31 0001312109 us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember 2019-09-30 0001312109 si:MortgagebackedSecuritiesIssuedbyPrivateEnterprisesResidentialMember 2019-09-30 0001312109 si:MortgagebackedSecuritiesIssuedbyPrivateEnterprisesCommercialMember 2019-09-30 0001312109 si:GovernmentGuaranteedCollateralResidentialMember 2019-09-30 0001312109 si:MortgagebackedSecuritiesIssuedbyPrivateEnterprisesResidentialMember 2018-12-31 0001312109 us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2018-12-31 0001312109 us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2019-09-30 0001312109 us-gaap:CollateralizedMortgageObligationsMember 2019-09-30 0001312109 us-gaap:CollateralizedMortgageObligationsMember 2018-12-31 0001312109 us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember 2018-12-31 0001312109 si:ReverseMortgagePortfolioSegmentMember 2017-12-31 0001312109 us-gaap:RealEstateSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:ConstructionLoansMember 2018-09-30 0001312109 si:ReverseMortgagePortfolioSegmentMember 2018-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2017-12-31 0001312109 us-gaap:ResidentialPortfolioSegmentMember si:MortgageWarehouseMember 2018-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2018-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2018-01-01 2018-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:ResidentialPortfolioSegmentMember srt:MultifamilyMember 2018-01-01 2018-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:ResidentialPortfolioSegmentMember si:OneToFourFamilyMember 2018-01-01 2018-09-30 0001312109 us-gaap:ConsumerPortfolioSegmentMember 2018-01-01 2018-09-30 0001312109 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2018-09-30 0001312109 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2018-01-01 2018-09-30 0001312109 si:ReverseMortgagePortfolioSegmentMember 2018-01-01 2018-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:ConstructionLoansMember 2017-12-31 0001312109 us-gaap:ResidentialPortfolioSegmentMember si:MortgageWarehouseMember 2018-01-01 2018-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:ResidentialPortfolioSegmentMember si:OneToFourFamilyMember 2018-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:ConstructionLoansMember 2018-01-01 2018-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:ResidentialPortfolioSegmentMember srt:MultifamilyMember 2017-12-31 0001312109 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2017-12-31 0001312109 us-gaap:ConsumerPortfolioSegmentMember 2018-09-30 0001312109 us-gaap:ResidentialPortfolioSegmentMember si:MortgageWarehouseMember 2017-12-31 0001312109 us-gaap:RealEstateSectorMember us-gaap:ResidentialPortfolioSegmentMember si:OneToFourFamilyMember 2017-12-31 0001312109 us-gaap:RealEstateSectorMember us-gaap:ResidentialPortfolioSegmentMember srt:MultifamilyMember 2018-09-30 0001312109 us-gaap:ConsumerPortfolioSegmentMember 2017-12-31 0001312109 stpr:AZ us-gaap:RealEstateMember us-gaap:FinanceReceivablesMember us-gaap:CreditConcentrationRiskMember 2018-01-01 2018-12-31 0001312109 stpr:FL us-gaap:RealEstateMember us-gaap:FinanceReceivablesMember us-gaap:CreditConcentrationRiskMember 2018-01-01 2018-12-31 0001312109 us-gaap:RealEstateMember 2018-12-31 0001312109 us-gaap:ResidentialPortfolioSegmentMember si:MortgageWarehouseMember 2019-01-01 2019-09-30 0001312109 stpr:FL us-gaap:RealEstateMember us-gaap:FinanceReceivablesMember us-gaap:CreditConcentrationRiskMember 2019-01-01 2019-09-30 0001312109 us-gaap:ResidentialPortfolioSegmentMember si:MortgageWarehouseMember 2019-09-30 0001312109 stpr:AZ us-gaap:RealEstateMember us-gaap:FinanceReceivablesMember us-gaap:CreditConcentrationRiskMember 2019-01-01 2019-09-30 0001312109 si:BusinessLoansMember 2018-12-31 0001312109 us-gaap:RealEstateMember 2019-09-30 0001312109 si:ReverseMortgagePortfolioSegmentMember 2019-09-30 0001312109 us-gaap:ResidentialPortfolioSegmentMember si:MortgageWarehouseMember 2018-12-31 0001312109 us-gaap:ResidentialPortfolioSegmentMember si:MortgageWarehouseMember 2019-07-01 2019-09-30 0001312109 stpr:CA us-gaap:RealEstateMember us-gaap:FinanceReceivablesMember us-gaap:CreditConcentrationRiskMember 2019-01-01 2019-09-30 0001312109 stpr:CA us-gaap:RealEstateMember us-gaap:FinanceReceivablesMember us-gaap:CreditConcentrationRiskMember 2018-01-01 2018-12-31 0001312109 us-gaap:ResidentialPortfolioSegmentMember si:MortgageWarehouseMember 2018-07-01 2018-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:ResidentialPortfolioSegmentMember si:OneToFourFamilyMember 2019-01-01 2019-09-30 0001312109 si:ReverseMortgagePortfolioSegmentMember 2019-01-01 2019-09-30 0001312109 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2019-01-01 2019-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2019-01-01 2019-09-30 0001312109 si:ReverseMortgagePortfolioSegmentMember 2018-12-31 0001312109 us-gaap:RealEstateSectorMember us-gaap:ResidentialPortfolioSegmentMember si:OneToFourFamilyMember 2018-12-31 0001312109 si:ReverseMortgagePortfolioSegmentMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2018-12-31 0001312109 si:ReverseMortgagePortfolioSegmentMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2018-12-31 0001312109 us-gaap:NotesPayableToBanksMember 2019-01-01 2019-09-30 0001312109 us-gaap:SubordinatedDebtMember 2019-01-01 2019-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:ResidentialPortfolioSegmentMember srt:MultifamilyMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2018-12-31 0001312109 us-gaap:ConsumerPortfolioSegmentMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2018-12-31 0001312109 us-gaap:RealEstateSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2018-12-31 0001312109 us-gaap:RealEstateSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:ConstructionLoansMember 2018-12-31 0001312109 us-gaap:RealEstateSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2018-12-31 0001312109 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2018-12-31 0001312109 si:ReverseMortgagePortfolioSegmentMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2018-12-31 0001312109 us-gaap:RealEstateSectorMember us-gaap:ResidentialPortfolioSegmentMember srt:MultifamilyMember 2018-12-31 0001312109 us-gaap:ResidentialPortfolioSegmentMember si:MortgageWarehouseMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2018-12-31 0001312109 us-gaap:ConsumerPortfolioSegmentMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2018-12-31 0001312109 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2018-12-31 0001312109 us-gaap:RealEstateSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2018-12-31 0001312109 us-gaap:ConsumerPortfolioSegmentMember 2018-12-31 0001312109 us-gaap:RealEstateSectorMember us-gaap:ResidentialPortfolioSegmentMember srt:MultifamilyMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2018-12-31 0001312109 us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2018-12-31 0001312109 us-gaap:ConsumerPortfolioSegmentMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2018-12-31 0001312109 us-gaap:RealEstateSectorMember us-gaap:ResidentialPortfolioSegmentMember si:OneToFourFamilyMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2018-12-31 0001312109 us-gaap:RealEstateSectorMember us-gaap:ResidentialPortfolioSegmentMember si:OneToFourFamilyMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2018-12-31 0001312109 us-gaap:RealEstateSectorMember us-gaap:ResidentialPortfolioSegmentMember srt:MultifamilyMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2018-12-31 0001312109 us-gaap:FinancingReceivables60To89DaysPastDueMember 2018-12-31 0001312109 us-gaap:RealEstateSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2018-12-31 0001312109 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2018-12-31 0001312109 us-gaap:RealEstateSectorMember us-gaap:ResidentialPortfolioSegmentMember si:OneToFourFamilyMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2018-12-31 0001312109 us-gaap:ResidentialPortfolioSegmentMember si:MortgageWarehouseMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2018-12-31 0001312109 us-gaap:FinancingReceivables30To59DaysPastDueMember 2018-12-31 0001312109 us-gaap:ResidentialPortfolioSegmentMember si:MortgageWarehouseMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2018-12-31 0001312109 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2018-12-31 0001312109 us-gaap:RealEstateSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:ConstructionLoansMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2018-12-31 0001312109 us-gaap:RealEstateSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:ConstructionLoansMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2018-12-31 0001312109 us-gaap:RealEstateSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:ConstructionLoansMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2018-12-31 0001312109 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2019-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:ResidentialPortfolioSegmentMember srt:MultifamilyMember 2019-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:ConstructionLoansMember 2019-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:ResidentialPortfolioSegmentMember si:OneToFourFamilyMember 2019-09-30 0001312109 us-gaap:ConsumerPortfolioSegmentMember 2019-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2019-09-30 0001312109 si:ReverseMortgagePortfolioSegmentMember us-gaap:DoubtfulMember 2019-09-30 0001312109 us-gaap:ConsumerPortfolioSegmentMember us-gaap:SpecialMentionMember 2019-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:ResidentialPortfolioSegmentMember si:OneToFourFamilyMember us-gaap:DoubtfulMember 2019-09-30 0001312109 si:ReverseMortgagePortfolioSegmentMember us-gaap:SpecialMentionMember 2019-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:ConstructionLoansMember us-gaap:DoubtfulMember 2019-09-30 0001312109 us-gaap:SubstandardMember 2019-09-30 0001312109 si:ReverseMortgagePortfolioSegmentMember us-gaap:SubstandardMember 2019-09-30 0001312109 us-gaap:ConsumerPortfolioSegmentMember us-gaap:PassMember 2019-09-30 0001312109 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:SubstandardMember 2019-09-30 0001312109 us-gaap:DoubtfulMember 2019-09-30 0001312109 si:ReverseMortgagePortfolioSegmentMember us-gaap:PassMember 2019-09-30 0001312109 us-gaap:ConsumerPortfolioSegmentMember us-gaap:SubstandardMember 2019-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:ResidentialPortfolioSegmentMember si:OneToFourFamilyMember us-gaap:PassMember 2019-09-30 0001312109 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:PassMember 2019-09-30 0001312109 us-gaap:SpecialMentionMember 2019-09-30 0001312109 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:DoubtfulMember 2019-09-30 0001312109 us-gaap:PassMember 2019-09-30 0001312109 us-gaap:ResidentialPortfolioSegmentMember si:MortgageWarehouseMember us-gaap:SubstandardMember 2019-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:PassMember 2019-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:ConstructionLoansMember us-gaap:SpecialMentionMember 2019-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:ResidentialPortfolioSegmentMember srt:MultifamilyMember us-gaap:SubstandardMember 2019-09-30 0001312109 us-gaap:ResidentialPortfolioSegmentMember si:MortgageWarehouseMember us-gaap:DoubtfulMember 2019-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:ResidentialPortfolioSegmentMember srt:MultifamilyMember us-gaap:PassMember 2019-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:ConstructionLoansMember us-gaap:PassMember 2019-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:ResidentialPortfolioSegmentMember si:OneToFourFamilyMember us-gaap:SpecialMentionMember 2019-09-30 0001312109 us-gaap:ConsumerPortfolioSegmentMember us-gaap:DoubtfulMember 2019-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:SpecialMentionMember 2019-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:SubstandardMember 2019-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:ResidentialPortfolioSegmentMember srt:MultifamilyMember us-gaap:DoubtfulMember 2019-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:DoubtfulMember 2019-09-30 0001312109 us-gaap:ResidentialPortfolioSegmentMember si:MortgageWarehouseMember us-gaap:PassMember 2019-09-30 0001312109 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:SpecialMentionMember 2019-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:ResidentialPortfolioSegmentMember srt:MultifamilyMember us-gaap:SpecialMentionMember 2019-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:ConstructionLoansMember us-gaap:SubstandardMember 2019-09-30 0001312109 us-gaap:ResidentialPortfolioSegmentMember si:MortgageWarehouseMember us-gaap:SpecialMentionMember 2019-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:ResidentialPortfolioSegmentMember si:OneToFourFamilyMember us-gaap:SubstandardMember 2019-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2019-07-01 2019-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:ResidentialPortfolioSegmentMember si:OneToFourFamilyMember 2019-07-01 2019-09-30 0001312109 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2018-07-01 2018-09-30 0001312109 si:ReverseMortgagePortfolioSegmentMember 2018-07-01 2018-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:ResidentialPortfolioSegmentMember si:OneToFourFamilyMember 2018-07-01 2018-09-30 0001312109 si:ReverseMortgagePortfolioSegmentMember 2019-07-01 2019-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2018-07-01 2018-09-30 0001312109 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2019-07-01 2019-09-30 0001312109 us-gaap:ConsumerPortfolioSegmentMember 2019-06-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:ResidentialPortfolioSegmentMember srt:MultifamilyMember 2019-07-01 2019-09-30 0001312109 si:ReverseMortgagePortfolioSegmentMember 2019-06-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:ResidentialPortfolioSegmentMember si:OneToFourFamilyMember 2019-06-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:ConstructionLoansMember 2019-07-01 2019-09-30 0001312109 us-gaap:ConsumerPortfolioSegmentMember 2019-07-01 2019-09-30 0001312109 us-gaap:ResidentialPortfolioSegmentMember si:MortgageWarehouseMember 2019-06-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:ResidentialPortfolioSegmentMember srt:MultifamilyMember 2019-06-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2019-06-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:ConstructionLoansMember 2019-06-30 0001312109 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2019-06-30 0001312109 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:SpecialMentionMember 2018-12-31 0001312109 us-gaap:RealEstateSectorMember us-gaap:ResidentialPortfolioSegmentMember si:OneToFourFamilyMember us-gaap:SubstandardMember 2018-12-31 0001312109 us-gaap:ResidentialPortfolioSegmentMember si:MortgageWarehouseMember us-gaap:DoubtfulMember 2018-12-31 0001312109 us-gaap:RealEstateSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:PassMember 2018-12-31 0001312109 us-gaap:RealEstateSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:DoubtfulMember 2018-12-31 0001312109 us-gaap:RealEstateSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:SpecialMentionMember 2018-12-31 0001312109 us-gaap:RealEstateSectorMember us-gaap:ResidentialPortfolioSegmentMember si:OneToFourFamilyMember us-gaap:PassMember 2018-12-31 0001312109 us-gaap:RealEstateSectorMember us-gaap:ResidentialPortfolioSegmentMember srt:MultifamilyMember us-gaap:SpecialMentionMember 2018-12-31 0001312109 us-gaap:RealEstateSectorMember us-gaap:ResidentialPortfolioSegmentMember srt:MultifamilyMember us-gaap:SubstandardMember 2018-12-31 0001312109 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:SubstandardMember 2018-12-31 0001312109 us-gaap:SubstandardMember 2018-12-31 0001312109 us-gaap:ConsumerPortfolioSegmentMember us-gaap:SpecialMentionMember 2018-12-31 0001312109 us-gaap:RealEstateSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:ConstructionLoansMember us-gaap:PassMember 2018-12-31 0001312109 us-gaap:RealEstateSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:ConstructionLoansMember us-gaap:DoubtfulMember 2018-12-31 0001312109 us-gaap:RealEstateSectorMember us-gaap:ResidentialPortfolioSegmentMember si:OneToFourFamilyMember us-gaap:SpecialMentionMember 2018-12-31 0001312109 si:ReverseMortgagePortfolioSegmentMember us-gaap:PassMember 2018-12-31 0001312109 us-gaap:DoubtfulMember 2018-12-31 0001312109 us-gaap:RealEstateSectorMember us-gaap:ResidentialPortfolioSegmentMember srt:MultifamilyMember us-gaap:DoubtfulMember 2018-12-31 0001312109 us-gaap:RealEstateSectorMember us-gaap:ResidentialPortfolioSegmentMember srt:MultifamilyMember us-gaap:PassMember 2018-12-31 0001312109 us-gaap:ResidentialPortfolioSegmentMember si:MortgageWarehouseMember us-gaap:SubstandardMember 2018-12-31 0001312109 si:ReverseMortgagePortfolioSegmentMember us-gaap:SpecialMentionMember 2018-12-31 0001312109 si:ReverseMortgagePortfolioSegmentMember us-gaap:SubstandardMember 2018-12-31 0001312109 us-gaap:RealEstateSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:SubstandardMember 2018-12-31 0001312109 us-gaap:ResidentialPortfolioSegmentMember si:MortgageWarehouseMember us-gaap:SpecialMentionMember 2018-12-31 0001312109 us-gaap:ConsumerPortfolioSegmentMember us-gaap:DoubtfulMember 2018-12-31 0001312109 us-gaap:ConsumerPortfolioSegmentMember us-gaap:SubstandardMember 2018-12-31 0001312109 si:ReverseMortgagePortfolioSegmentMember us-gaap:DoubtfulMember 2018-12-31 0001312109 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:DoubtfulMember 2018-12-31 0001312109 us-gaap:RealEstateSectorMember us-gaap:ResidentialPortfolioSegmentMember si:OneToFourFamilyMember us-gaap:DoubtfulMember 2018-12-31 0001312109 us-gaap:ConsumerPortfolioSegmentMember us-gaap:PassMember 2018-12-31 0001312109 us-gaap:ResidentialPortfolioSegmentMember si:MortgageWarehouseMember us-gaap:PassMember 2018-12-31 0001312109 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:PassMember 2018-12-31 0001312109 us-gaap:SpecialMentionMember 2018-12-31 0001312109 us-gaap:PassMember 2018-12-31 0001312109 us-gaap:RealEstateSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:ConstructionLoansMember us-gaap:SpecialMentionMember 2018-12-31 0001312109 us-gaap:RealEstateSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:ConstructionLoansMember us-gaap:SubstandardMember 2018-12-31 0001312109 us-gaap:RealEstateSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2019-09-30 0001312109 us-gaap:FinancingReceivables60To89DaysPastDueMember 2019-09-30 0001312109 us-gaap:ConsumerPortfolioSegmentMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2019-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2019-09-30 0001312109 us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2019-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:ResidentialPortfolioSegmentMember si:OneToFourFamilyMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2019-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:ConstructionLoansMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2019-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:ResidentialPortfolioSegmentMember si:OneToFourFamilyMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2019-09-30 0001312109 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2019-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:ResidentialPortfolioSegmentMember srt:MultifamilyMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2019-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:ConstructionLoansMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2019-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:ResidentialPortfolioSegmentMember si:OneToFourFamilyMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2019-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:ResidentialPortfolioSegmentMember srt:MultifamilyMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2019-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:ResidentialPortfolioSegmentMember srt:MultifamilyMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2019-09-30 0001312109 si:ReverseMortgagePortfolioSegmentMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2019-09-30 0001312109 us-gaap:ConsumerPortfolioSegmentMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2019-09-30 0001312109 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2019-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2019-09-30 0001312109 us-gaap:ResidentialPortfolioSegmentMember si:MortgageWarehouseMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2019-09-30 0001312109 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2019-09-30 0001312109 si:ReverseMortgagePortfolioSegmentMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2019-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:ConstructionLoansMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2019-09-30 0001312109 us-gaap:ResidentialPortfolioSegmentMember si:MortgageWarehouseMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2019-09-30 0001312109 us-gaap:FinancingReceivables30To59DaysPastDueMember 2019-09-30 0001312109 si:ReverseMortgagePortfolioSegmentMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2019-09-30 0001312109 us-gaap:ResidentialPortfolioSegmentMember si:MortgageWarehouseMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2019-09-30 0001312109 us-gaap:ConsumerPortfolioSegmentMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2019-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:ResidentialPortfolioSegmentMember srt:MultifamilyMember 2018-07-01 2018-09-30 0001312109 us-gaap:ConsumerPortfolioSegmentMember 2018-07-01 2018-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:ConstructionLoansMember 2018-07-01 2018-09-30 0001312109 us-gaap:ConsumerPortfolioSegmentMember 2018-06-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:ConstructionLoansMember 2018-06-30 0001312109 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2018-06-30 0001312109 us-gaap:ResidentialPortfolioSegmentMember si:MortgageWarehouseMember 2018-06-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:ResidentialPortfolioSegmentMember si:OneToFourFamilyMember 2018-06-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2018-06-30 0001312109 si:ReverseMortgagePortfolioSegmentMember 2018-06-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:ResidentialPortfolioSegmentMember srt:MultifamilyMember 2018-06-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:ConstructionLoansMember 2019-01-01 2019-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:ResidentialPortfolioSegmentMember srt:MultifamilyMember 2019-01-01 2019-09-30 0001312109 us-gaap:ConsumerPortfolioSegmentMember 2019-01-01 2019-09-30 0001312109 2018-01-01 2018-12-31 0001312109 us-gaap:FederalReserveBankAdvancesMember 2019-09-30 0001312109 us-gaap:RepurchaseAgreementsMember 2019-01-01 2019-09-30 0001312109 us-gaap:FederalReserveBankAdvancesMember 2018-12-31 0001312109 si:A2.60PercentNotePayableDueJanuary292021Member us-gaap:NotesPayableToBanksMember 2016-01-29 0001312109 si:A2.60PercentNotePayableDueJanuary292021Member us-gaap:NotesPayableToBanksMember 2018-12-31 0001312109 srt:MinimumMember si:A2.60PercentNotePayableDueJanuary292021Member us-gaap:NotesPayableToBanksMember us-gaap:LondonInterbankOfferedRateLIBORMember 2016-01-29 2016-01-29 0001312109 si:A2.60PercentNotePayableDueJanuary292021Member us-gaap:NotesPayableToBanksMember 2019-09-30 0001312109 si:TrustOneMember si:A2001SubordinatedDebenturesMaturingJuly252031Member us-gaap:SubordinatedDebtMember us-gaap:LondonInterbankOfferedRateLIBORMember 2001-07-31 0001312109 si:TrustOneMember si:A2001SubordinatedDebenturesMaturingJuly252031Member us-gaap:SubordinatedDebtMember 2001-07-31 0001312109 si:TrustOneMember us-gaap:SubordinatedDebtMember 2019-09-30 0001312109 si:TrustTwoMember si:A2005SubordinatedDebenturesMaturingMarch152035Member us-gaap:SubordinatedDebtMember us-gaap:LondonInterbankOfferedRateLIBORMember 2005-01-31 0001312109 si:TrustOneMember si:A2001SubordinatedDebenturesMaturingJuly252031Member us-gaap:SubordinatedDebtMember 2019-01-01 2019-09-30 0001312109 si:TrustTwoMember si:A2005SubordinatedDebenturesMaturingMarch152035Member us-gaap:SubordinatedDebtMember us-gaap:LondonInterbankOfferedRateLIBORMember 2019-09-30 0001312109 si:TrustOneMember si:A2001SubordinatedDebenturesMaturingJuly252031Member us-gaap:SubordinatedDebtMember us-gaap:LondonInterbankOfferedRateLIBORMember 2019-09-30 0001312109 si:TrustTwoMember si:A2005SubordinatedDebenturesMaturingMarch152035Member us-gaap:SubordinatedDebtMember 2019-01-01 2019-09-30 0001312109 si:TrustOneMember si:A2001SubordinatedDebenturesMaturingJuly252031Member us-gaap:SubordinatedDebtMember 2019-09-30 0001312109 si:TrustTwoMember si:A2005SubordinatedDebenturesMaturingMarch152035Member us-gaap:SubordinatedDebtMember 2005-01-31 0001312109 us-gaap:InterestRateFloorMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001312109 us-gaap:InterestRateCapMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001312109 us-gaap:InterestRateCapMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-09-30 0001312109 us-gaap:InterestRateFloorMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-09-30 0001312109 si:CashFlowHedgeInterestRateFloor2Member us-gaap:DesignatedAsHedgingInstrumentMember si:InterestIncomeSecuritiesMember 2018-01-01 2018-09-30 0001312109 si:CashFlowHedgeInterestRateFloor2Member us-gaap:DesignatedAsHedgingInstrumentMember 2018-01-01 2018-09-30 0001312109 si:CashFlowHedgeInterestRateFloor2Member us-gaap:DesignatedAsHedgingInstrumentMember si:InterestIncomeSecuritiesMember 2019-01-01 2019-09-30 0001312109 si:CashFlowHedgeInterestRateFloor1Member us-gaap:DesignatedAsHedgingInstrumentMember si:InterestIncomeOtherInterestEarningAssetsMember 2018-01-01 2018-09-30 0001312109 si:CashFlowHedgeInterestRateFloor1Member us-gaap:DesignatedAsHedgingInstrumentMember 2018-01-01 2018-09-30 0001312109 si:CashFlowHedgeInterestRateFloor2Member us-gaap:DesignatedAsHedgingInstrumentMember 2019-01-01 2019-09-30 0001312109 us-gaap:InterestRateCapMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-01-01 2019-09-30 0001312109 si:CashFlowHedgeInterestRateFloor1Member us-gaap:DesignatedAsHedgingInstrumentMember si:InterestIncomeOtherInterestEarningAssetsMember 2019-01-01 2019-09-30 0001312109 us-gaap:InterestRateCapMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-01-01 2018-09-30 0001312109 us-gaap:InterestRateCapMember us-gaap:DesignatedAsHedgingInstrumentMember si:InterestExpenseSubordinatedDebenturesMember 2019-01-01 2019-09-30 0001312109 us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-01-01 2018-09-30 0001312109 us-gaap:InterestRateCapMember us-gaap:DesignatedAsHedgingInstrumentMember si:InterestExpenseSubordinatedDebenturesMember 2018-01-01 2018-09-30 0001312109 us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember si:InterestExpenseFHLBAdvancesMember 2019-01-01 2019-09-30 0001312109 si:CashFlowHedgeInterestRateFloor1Member us-gaap:DesignatedAsHedgingInstrumentMember 2019-01-01 2019-09-30 0001312109 us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember si:InterestExpenseFHLBAdvancesMember 2018-01-01 2018-09-30 0001312109 us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-01-01 2019-09-30 0001312109 si:CapAgreementExpiringMarch152022Member us-gaap:InterestRateCapMember us-gaap:LondonInterbankOfferedRateLIBORMember 2012-12-31 0001312109 us-gaap:InterestRateFloorMember 2019-09-30 0001312109 si:CapAgreementExpiringJuly252022Member us-gaap:InterestRateCapMember 2012-12-31 0001312109 us-gaap:InterestRateFloorMember us-gaap:LondonInterbankOfferedRateLIBORMember 2019-09-30 0001312109 us-gaap:InterestRateFloorMember 2019-01-01 2019-09-30 0001312109 si:CapAgreementExpiringMarch152022Member us-gaap:InterestRateCapMember 2012-12-31 0001312109 us-gaap:CollateralPledgedMember us-gaap:InterestRateCapMember 2018-12-31 0001312109 si:CapAgreementExpiringJuly252022Member us-gaap:InterestRateCapMember us-gaap:LondonInterbankOfferedRateLIBORMember 2012-12-31 0001312109 us-gaap:InterestRateFloorMember us-gaap:FederalFundsEffectiveSwapRateMember 2019-09-30 0001312109 us-gaap:CollateralPledgedMember us-gaap:InterestRateCapMember 2019-09-30 0001312109 us-gaap:InterestRateCapMember 2012-01-01 2012-12-31 0001312109 us-gaap:InterestRateCapMember us-gaap:DesignatedAsHedgingInstrumentMember si:InterestExpenseSubordinatedDebenturesMember 2018-07-01 2018-09-30 0001312109 us-gaap:InterestRateCapMember us-gaap:DesignatedAsHedgingInstrumentMember si:InterestExpenseSubordinatedDebenturesMember 2019-07-01 2019-09-30 0001312109 us-gaap:InterestRateCapMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-07-01 2018-09-30 0001312109 si:CashFlowHedgeInterestRateFloor1Member us-gaap:DesignatedAsHedgingInstrumentMember si:InterestIncomeOtherInterestEarningAssetsMember 2019-07-01 2019-09-30 0001312109 si:CashFlowHedgeInterestRateFloor1Member us-gaap:DesignatedAsHedgingInstrumentMember si:InterestIncomeOtherInterestEarningAssetsMember 2018-07-01 2018-09-30 0001312109 si:CashFlowHedgeInterestRateFloor2Member us-gaap:DesignatedAsHedgingInstrumentMember si:InterestIncomeSecuritiesMember 2018-07-01 2018-09-30 0001312109 us-gaap:InterestRateCapMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-07-01 2019-09-30 0001312109 si:CashFlowHedgeInterestRateFloor1Member us-gaap:DesignatedAsHedgingInstrumentMember 2019-07-01 2019-09-30 0001312109 si:CashFlowHedgeInterestRateFloor2Member us-gaap:DesignatedAsHedgingInstrumentMember 2018-07-01 2018-09-30 0001312109 si:CashFlowHedgeInterestRateFloor2Member us-gaap:DesignatedAsHedgingInstrumentMember si:InterestIncomeSecuritiesMember 2019-07-01 2019-09-30 0001312109 si:CashFlowHedgeInterestRateFloor1Member us-gaap:DesignatedAsHedgingInstrumentMember 2018-07-01 2018-09-30 0001312109 si:CashFlowHedgeInterestRateFloor2Member us-gaap:DesignatedAsHedgingInstrumentMember 2019-07-01 2019-09-30 0001312109 us-gaap:LetterOfCreditMember 2019-09-30 0001312109 us-gaap:LineOfCreditMember 2019-09-30 0001312109 us-gaap:LetterOfCreditMember 2018-12-31 0001312109 us-gaap:LineOfCreditMember 2018-12-31 0001312109 si:EquityCompensationPlan2010Member 2019-01-01 2019-09-30 0001312109 si:EquityCompensationPlan2018Member 2018-06-30 0001312109 si:EquityCompensationPlan2010Member 2019-09-30 0001312109 si:EquityCompensationPlan2010Member 2010-12-31 0001312109 srt:SubsidiariesMember 2018-12-31 0001312109 srt:ParentCompanyMember 2018-12-31 0001312109 srt:SubsidiariesMember 2019-09-30 0001312109 srt:ParentCompanyMember 2019-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:ResidentialPortfolioSegmentMember si:OneToFourFamilyMember 2019-09-30 0001312109 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember si:ReverseMortgagePortfolioSegmentMember 2019-09-30 0001312109 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsNonrecurringMember 2019-09-30 0001312109 us-gaap:FairValueMeasurementsNonrecurringMember si:ReverseMortgagePortfolioSegmentMember 2019-09-30 0001312109 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsNonrecurringMember 2019-09-30 0001312109 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsNonrecurringMember si:ReverseMortgagePortfolioSegmentMember 2019-09-30 0001312109 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember 2019-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:ResidentialPortfolioSegmentMember si:OneToFourFamilyMember 2019-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:ResidentialPortfolioSegmentMember si:OneToFourFamilyMember 2019-09-30 0001312109 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsNonrecurringMember si:ReverseMortgagePortfolioSegmentMember 2019-09-30 0001312109 us-gaap:FairValueMeasurementsNonrecurringMember 2019-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:ResidentialPortfolioSegmentMember si:OneToFourFamilyMember 2019-09-30 0001312109 us-gaap:RealEstateSectorMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:ResidentialPortfolioSegmentMember si:OneToFourFamilyMember 2018-12-31 0001312109 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsNonrecurringMember si:ReverseMortgagePortfolioSegmentMember 2018-12-31 0001312109 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsNonrecurringMember 2018-12-31 0001312109 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember 2018-12-31 0001312109 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember si:ReverseMortgagePortfolioSegmentMember 2018-12-31 0001312109 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsNonrecurringMember si:ReverseMortgagePortfolioSegmentMember 2018-12-31 0001312109 us-gaap:FairValueMeasurementsNonrecurringMember 2018-12-31 0001312109 us-gaap:RealEstateSectorMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:ResidentialPortfolioSegmentMember si:OneToFourFamilyMember 2018-12-31 0001312109 us-gaap:RealEstateSectorMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:ResidentialPortfolioSegmentMember si:OneToFourFamilyMember 2018-12-31 0001312109 us-gaap:FairValueMeasurementsNonrecurringMember si:ReverseMortgagePortfolioSegmentMember 2018-12-31 0001312109 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsNonrecurringMember 2018-12-31 0001312109 us-gaap:RealEstateSectorMember us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:ResidentialPortfolioSegmentMember si:OneToFourFamilyMember 2018-12-31 0001312109 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-09-30 0001312109 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001312109 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2019-09-30 0001312109 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-09-30 0001312109 us-gaap:FairValueMeasurementsRecurringMember 2019-09-30 0001312109 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001312109 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001312109 us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001312109 us-gaap:InterestBearingDepositsMember us-gaap:FairValueInputsLevel1Member 2018-12-31 0001312109 us-gaap:FairValueInputsLevel2Member 2018-12-31 0001312109 us-gaap:FairValueInputsLevel3Member 2018-12-31 0001312109 us-gaap:FairValueInputsLevel1Member 2018-12-31 0001312109 us-gaap:InterestBearingDepositsMember 2018-12-31 0001312109 us-gaap:InterestBearingDepositsMember us-gaap:FairValueInputsLevel2Member 2018-12-31 0001312109 us-gaap:InterestBearingDepositsMember us-gaap:FairValueInputsLevel3Member 2018-12-31 0001312109 us-gaap:FairValueInputsLevel2Member 2019-09-30 0001312109 us-gaap:FairValueInputsLevel3Member 2019-09-30 0001312109 us-gaap:InterestBearingDepositsMember 2019-09-30 0001312109 us-gaap:InterestBearingDepositsMember us-gaap:FairValueInputsLevel3Member 2019-09-30 0001312109 us-gaap:FairValueInputsLevel1Member 2019-09-30 0001312109 us-gaap:InterestBearingDepositsMember us-gaap:FairValueInputsLevel2Member 2019-09-30 0001312109 us-gaap:InterestBearingDepositsMember us-gaap:FairValueInputsLevel1Member 2019-09-30 0001312109 us-gaap:EmployeeStockOptionMember 2019-07-01 2019-09-30 0001312109 us-gaap:EmployeeStockOptionMember 2018-07-01 2018-09-30 0001312109 us-gaap:EmployeeStockOptionMember 2019-01-01 2019-09-30 0001312109 us-gaap:EmployeeStockOptionMember 2018-01-01 2018-09-30 0001312109 si:CommonClassAandCommonClassBMember 2018-02-23 2018-02-23 0001312109 us-gaap:PrivatePlacementMember 2018-02-23 2018-02-23 0001312109 us-gaap:CommonClassAMember us-gaap:PrivatePlacementMember 2018-02-23 2018-02-23 0001312109 us-gaap:CommonClassBMember 2018-03-01 2018-03-31 0001312109 us-gaap:CommonClassAMember 2018-03-01 2018-03-31 0001312109 us-gaap:SubsequentEventMember si:IPOSharesFromExistingShareholdersMember 2019-11-01 2019-11-30 0001312109 us-gaap:SubsequentEventMember us-gaap:IPOMember 2019-11-07 0001312109 us-gaap:SubsequentEventMember si:IPOSharesFromTheCompanyMember 2019-11-01 2019-11-30 0001312109 si:CallableBrokeredCertificatesOfDepositMember 2019-09-30 0001312109 si:CallableBrokeredCertificatesOfDepositMember 2019-01-01 2019-09-30 0001312109 us-gaap:SubsequentEventMember us-gaap:IPOMember 2019-11-01 2019-11-30 0001312109 us-gaap:SubsequentEventMember us-gaap:OverAllotmentOptionMember 2019-11-01 2019-11-30 si:issuer xbrli:pure iso4217:USD si:security si:contract xbrli:shares iso4217:USD xbrli:shares si:bank si:instrument
Table of Contents

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
☒
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ending September 30, 2019
OR
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________________  to  __________________
Commission file number 001-39123
SILVERGATE CAPITAL CORPORATION
(Exact name of registrant as specified in its charter)
 
Maryland
 
33-0227337
 
 
(State or other jurisdiction of incorporation or organization)
 
(I.R.S. Employer Identification No.)
 
4250 Executive Square, Suite 300, La Jolla, CA 92037
(Address of principal executive offices, including zip code)
(858) 362-6300
(Registrant’s telephone number, including area code)
Securities Registered Pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Class A Common Stock, par value $0.01 per share
SI
New York Stock Exchange
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days. Yes ☐ No ☒
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer
☐
Accelerated filer
☐
Emerging growth company
☒
Non-accelerated Filer
☒
Smaller reporting company
☒
 
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☒
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒
As of November 27, 2019, the registrant had 17,775,160 shares of Class A voting common stock and 892,836 shares of Class B non-voting common stock outstanding.

Table of Contents

SILVERGATE CAPITAL CORPORATION
FORM 10-Q
TABLE OF CONTENTS
 
 
Page
 
 
 
 
 
 
 
 
  
  
  
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


2
Table of Contents

PART I—FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)

SILVERGATE CAPITAL CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In Thousands, Except Par Value Amounts)
(Unaudited) 
 
 
September 30,
2019
 
December 31,
2018
ASSETS
 
 
 
 
Cash and due from banks
 
$
4,098

 
$
4,177

Interest earning deposits in other banks
 
156,160

 
670,243

Cash and cash equivalents
 
160,258

 
674,420

Securities available-for-sale, at fair value
 
909,917

 
357,178

Securities held-to-maturity, at amortized cost (fair value of $72 as of December 31, 2018)
 
—

 
73

Loans held-for-investment, net of allowance for loan losses of $6,191 and $6,723 at September 30, 2019 and December 31, 2018, respectively
 
691,990

 
592,781

Loans held-for-sale, at lower of cost or fair value
 
311,410

 
350,636

Federal home loan and federal reserve bank stock, at cost
 
10,264

 
9,660

Accrued interest receivable
 
5,875

 
5,770

Other real estate owned, net
 
81

 
31

Premises and equipment, net
 
3,224

 
3,656

Operating lease right-of-use assets
 
4,927

 
—

Derivative assets
 
30,885

 
999

Low income housing tax credit investment
 
981

 
1,044

Deferred tax assets
 
—

 
3,329

Other assets
 
7,032

 
4,741

Total assets
 
$
2,136,844

 
$
2,004,318

LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 
 
 
Deposits:
 
 
 
 
Noninterest bearing demand accounts
 
$
1,394,433

 
$
1,525,922

Interest bearing accounts
 
453,662

 
152,911

Deposits held-for-sale
 
—

 
104,172

Total deposits
 
1,848,095

 
1,783,005

Federal home loan bank advances
 
20,000

 
—

Notes payable
 
4,000

 
4,857

Subordinated debentures, net
 
15,813

 
15,802

Operating lease liabilities
 
5,237

 
—

Accrued expenses and other liabilities
 
13,085

 
9,408

Total liabilities
 
1,906,230

 
1,813,072

Commitments and contingencies
 

 

Preferred stock, $0.01 par value—authorized 10,000 shares; no shares issued or outstanding at September 30, 2019 and December 31, 2018
 
—

 
—

Class A common stock, $0.01 par value—authorized 125,000 shares; 16,654 and 16,629 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively
 
167

 
166

Class B non-voting common stock, $0.01 par value—authorized 25,000 shares; 1,190 and 1,190 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively
 
12

 
12

Additional paid-in capital
 
125,573

 
125,665

Retained earnings
 
88,712

 
67,464

Accumulated other comprehensive income (loss)
 
16,150

 
(2,061
)
Total shareholders’ equity
 
230,614

 
191,246

Total liabilities and shareholders’ equity
 
$
2,136,844

 
$
2,004,318


See accompanying notes to unaudited consolidated financial statements

3

SILVERGATE CAPITAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Data)
(Unaudited) 
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
 
2019
 
2018
 
2019
 
2018
Interest income
 
 
 
 
 
 
 
 
Loans, including fees
 
$
13,574

 
$
12,726

 
$
38,369

 
$
35,357

Securities
 
6,510

 
1,941

 
14,044

 
5,016

Other interest earning assets
 
1,183

 
3,921

 
8,038

 
10,386

Dividends and other
 
121

 
119

 
472

 
392

Total interest income
 
21,388

 
18,707

 
60,923

 
51,151

Interest expense
 
 
 
 
 
 
 
 
Deposits
 
2,385

 
400

 
3,920

 
1,386

Federal home loan bank advances
 
172

 
—

 
172

 
19

Notes payable and other
 
117

 
98

 
702

 
315

Subordinated debentures
 
271

 
239

 
802

 
671

Total interest expense
 
2,945

 
737

 
5,596

 
2,391

Net interest income before provision for loan losses
 
18,443

 
17,970

 
55,327

 
48,760

(Reversal of) provision for loan losses
 
(858
)
 
—

 
(439
)
 
148

Net interest income after provision for loan losses
 
19,301

 
17,970

 
55,766

 
48,612

Noninterest income
 
 
 
 
 
 
 
 
Mortgage warehouse fee income
 
373

 
393

 
1,085

 
1,152

Service fees related to off-balance sheet deposits
 
283

 
573

 
1,454

 
1,683

Deposit related fees
 
1,657

 
688

 
3,815

 
1,655

Gain on sale of loans
 
248

 
416

 
593

 
699

Gain on sale of branch, net
 
—

 
—

 
5,509

 
—

Other income
 
38

 
114

 
168

 
383

Total noninterest income
 
2,599

 
2,184

 
12,624

 
5,572

Noninterest expense
 
 
 
 
 
 
 
 
Salaries and employee benefits
 
8,277

 
7,259

 
25,124

 
21,335

Occupancy and equipment
 
892

 
742

 
2,777

 
2,251

Communications and data processing
 
1,298

 
703

 
3,458

 
2,149

Professional services
 
889

 
1,507

 
3,407

 
3,918

Federal deposit insurance
 
39

 
214

 
382

 
1,078

Correspondent bank charges
 
288

 
240

 
868

 
914

Other loan expense
 
47

 
57

 
290

 
198

Other real estate owned expense (recovery)
 
75

 
(10
)
 
80

 
42

Other general and administrative
 
806

 
705

 
2,432

 
2,461

Total noninterest expense
 
12,611

 
11,417

 
38,818

 
34,346

Income before income taxes
 
9,289

 
8,737

 
29,572

 
19,838

Income tax expense
 
2,633

 
2,458

 
8,324

 
5,525

Net income
 
$
6,656

 
$
6,279

 
$
21,248

 
$
14,313

Basic earnings per share
 
$
0.37

 
$
0.35

 
$
1.19

 
$
0.89

Diluted earnings per share
 
$
0.36

 
$
0.34

 
$
1.16

 
$
0.86

Weighted average shares outstanding:
 
 
 
 
 
 
 
 
Basic
 
17,840

 
17,808

 
17,830

 
16,113

Diluted
 
18,246

 
18,254

 
18,252

 
16,607

See accompanying notes to unaudited consolidated financial statements

4

SILVERGATE CAPITAL CORPORATION
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In Thousands)
(Unaudited)
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
 
2019
 
2018
 
2019
 
2018
Net income
 
$
6,656

 
$
6,279

 
$
21,248

 
$
14,313

Other comprehensive income (loss):
 
 
 
 
 
 
 
 
Change in net unrealized gain (loss) on available-for-sale securities
 
6,983

 
403

 
15,152

 
(1,333
)
Income tax effect
 
(1,997
)
 
(113
)
 
(4,332
)
 
367

Unrealized gain (loss) on available-for-sale securities, net of tax
 
4,986

 
290

 
10,820

 
(966
)
Change in net unrealized gain on derivative assets
 
5,950

 
98

 
10,348

 
482

Income tax effect
 
(1,701
)
 
(27
)
 
(2,957
)
 
(147
)
Unrealized gain on derivative instruments, net of tax
 
4,249

 
71

 
7,391

 
335

Other comprehensive income (loss)
 
9,235

 
361

 
18,211

 
(631
)
Total comprehensive income
 
$
15,891

 
$
6,640

 
$
39,459

 
$
13,682

See accompanying notes to unaudited consolidated financial statements


5

SILVERGATE CAPITAL CORPORATION
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
(In Thousands, Except Share Data)
(Unaudited) 
 
 
Class A Common Stock
 
Class B Common Stock
 
Additional
Paid-In
Capital
 
Retained
Earnings
 
Accumulated
Other
Comprehensive
Income (Loss)
 
Total
Shareholders’
Equity
 
 
Shares
 
Amount
 
Shares
 
Amount
 
Balance at January 1, 2018
 
6,189,206

 
$
62

 
3,035,004

 
$
30

 
$
29,794

 
$
45,131

 
$
(1,217
)
 
$
73,800

Total comprehensive income, net of tax
 
—

 
—

 
—

 
—

 
—

 
3,543

 
(840
)
 
2,703

Net proceeds from stock issuance
 
9,500,000

 
95

 
—

 
—

 
107,789

 
—

 
—

 
107,884

Repurchase of common stock
 
(317,050
)
 
(3
)
 
(680,456
)
 
(7
)
 
(11,361
)
 
—

 
—

 
(11,371
)
Shareholder exchanges of Class A common stock for Class B common stock
 
1,165,000

 
11

 
(1,165,000
)
 
(11
)
 
 
 
—

 
—

 
—

Stock-based compensation
 
—

 
—

 
—

 
—

 
2

 
—

 
—

 
2

Exercise of stock options, net of shares withheld for employee taxes
 
10,000

 
—

 
—

 
—

 
41

 
—

 
—

 
41

Balance at March 31, 2018
 
16,547,156

 
165

 
1,189,548

 
12

 
126,265

 
48,674

 
(2,057
)
 
173,059

Total comprehensive income, net of tax
 
—

 
—

 
—

 
—

 
—

 
4,491

 
(152
)
 
4,339

Stock-based compensation
 
—

 
—

 
—

 
—

 
78

 
—

 
—

 
78

Exercise of stock options, net of shares withheld for employee taxes
 
69,285

 
1

 
—

 
—

 
(768
)
 
—

 
—

 
(767
)
Balance at June 30, 2018
 
16,616,441

 
166

 
1,189,548

 
12

 
125,575

 
53,165

 
(2,209
)
 
176,709

Total comprehensive income, net of tax
 
—

 
—

 
—

 
—

 
—

 
6,279

 
361

 
6,640

Stock-based compensation
 
—

 
—

 
—

 
—

 
17

 
—

 
—

 
17

Exercise of stock options, net of shares withheld for employee taxes
 
2,500

 
—

 
—

 
—

 
18

 
—

 
—

 
18

Balance at September 30, 2018
 
16,618,941

 
$
166

 
1,189,548

 
$
12

 
$
125,610

 
$
59,444

 
$
(1,848
)
 
$
183,384

See accompanying notes to unaudited consolidated financial statements

6

SILVERGATE CAPITAL CORPORATION
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (Continued)
(In Thousands, Except Share Data)
(Unaudited)
 
 
Class A Common Stock
 
Class B Common Stock
 
Additional
Paid-In
Capital
 
Retained
Earnings
 
Accumulated
Other
Comprehensive
Income (Loss)
 
Total
Shareholders’
Equity
 
 
Shares
 
Amount
 
Shares
 
Amount
 
Balance at January 1, 2019
 
16,628,941

 
$
166

 
1,189,548

 
$
12

 
$
125,665

 
$
67,464

 
$
(2,061
)
 
$
191,246

Total comprehensive income, net of tax
 
—

 
—

 
—

 
—

 
—

 
9,436

 
436

 
9,872

Stock-based compensation
 
—

 
—

 
—

 
—

 
19

 
—

 
—

 
19

Balance at March 31, 2019
 
16,628,941

 
166

 
1,189,548

 
12

 
125,684

 
76,900

 
(1,625
)
 
201,137

Total comprehensive income, net of tax
 
—

 
—

 
—

 
—

 
—

 
5,156

 
8,540

 
13,696

Stock-based compensation
 
—

 
—

 
—

 
—

 
30

 
—

 
—

 
30

Exercise of stock options, net of shares withheld for employee taxes
 
18,099

 
—

 
—

 
—

 
(115
)
 
—

 
—

 
(115
)
Balance at June 30, 2019
 
16,647,040

 
166

 
1,189,548

 
12

 
125,599

 
82,056

 
6,915

 
214,748

Total comprehensive income, net of tax
 
—

 
—

 
—

 
—

 
—

 
6,656

 
9,235

 
15,891

Stock-based compensation
 
—

 
—

 
—

 
—

 
17

 
—

 
—

 
17

Exercise of stock options, net of shares withheld for employee taxes
 
6,803

 
1

 
—

 
—

 
(43
)
 
—

 
—

 
(42
)
Balance at September 30, 2019
 
16,653,843

 
$
167

 
1,189,548

 
$
12

 
$
125,573

 
$
88,712

 
$
16,150

 
$
230,614

See accompanying notes to unaudited consolidated financial statements

7

SILVERGATE CAPITAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
 
 
Nine Months Ended September 30,
 
 
2019
 
2018
Cash flows from operating activities
 
 
 
 
Net income
 
$
21,248

 
$
14,313

Adjustments to reconcile net income to net cash (used in) provided by operating activities:
 
 
 
 
Depreciation and amortization
 
771

 
848

Amortization of securities premiums and discounts, net
 
1,261

 
308

Amortization of loan premiums and discounts and deferred loan origination fees and costs, net
 
666

 
280

Stock-based compensation
 
66

 
97

Deferred income tax benefit
 
(190
)
 
(451
)
(Reversal of) provision for loan losses
 
(439
)
 
148

Gain on sale of loans
 
(593
)
 
(699
)
Originations/purchases of loans held-for-sale
 
(2,323,891
)
 
(2,102,054
)
Proceeds from sales of loans held-for-sale
 
2,235,558

 
2,112,629

Gain on sale of branch, net
 
(5,509
)
 
—

Other, net
 
2,108

 
(67
)
Changes in operating assets and liabilities:
 
 
 
 
Accrued interest receivable
 
372

 
(481
)
Other assets
 
12,687

 
(827
)
Accrued expenses and other liabilities
 
(617
)
 
3,051

Net cash (used in) provided by operating activities
 
(56,502
)
 
27,095

Cash flows from investing activities
 
 
 
 
Proceeds from paydowns and maturities of securities available-for-sale
 
18,351

 
13,412

Purchases of securities available-for-sale
 
(589,031
)
 
(125,569
)
Proceeds from sale of securities available-for-sale
 
31,088

 
—

Loan originations and payments, net
 
(128,832
)
 
(23,126
)
Proceeds from sale of loans held-for-sale previously classified as held-for-investment
 
41,963

 
20,532

Purchase of federal home loan and federal reserve bank stock, net
 
(603
)
 
(2,308
)
Proceeds from sale of other real estate owned
 
77

 
2,370

Purchase of premises and equipment
 
(942
)
 
(1,484
)
Proceeds from sale of branch, net of cash
 
32,555

 
—

Purchases of derivative contracts, net of proceeds
 
(20,663
)
 
—

Other, net
 
10

 
38

Net cash used in investing activities
 
(616,027
)
 
(116,135
)
Cash flows from financing activities
 
 
 
 
Net change in noninterest bearing deposits
 
(144,737
)
 
244,436

Net change in interest bearing deposits
 
284,277

 
(82,256
)
Net change in federal home loan bank advances
 
20,000

 
(15,000
)
Payments made on notes payable
 
(857
)
 
(857
)
Proceeds from common stock issuance, net
 
—

 
107,884

Payment of deferred offering costs
 
(384
)
 
(429
)
Repurchase of common stock
 
—

 
(11,371
)
Proceeds from stock option exercise
 
—

 
87

Taxes paid related to net share settlement of equity awards
 
(158
)
 
(796
)
Other, net
 
226

 
—

Net cash provided by financing activities
 
158,367

 
241,698

Net (decrease) increase in cash and cash equivalents
 
(514,162
)
 
152,658

Cash and cash equivalents, beginning of year
 
674,420

 
797,668

Cash and cash equivalents, end of year
 
$
160,258

 
$
950,326

See accompanying notes to unaudited consolidated financial statements

8

SILVERGATE CAPITAL CORPORATION
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
Note 1—Nature of Business and Summary of Significant Accounting Policies
Nature of Business
The accompanying consolidated financial statements include the accounts of Silvergate Capital Corporation, a Maryland corporation and its wholly-owned subsidiary, Silvergate Bank (the “Bank”), collectively referred to as (the “Company”).
The Bank was incorporated in 1987 and commenced business in 1988 under the California Financial Code as an industrial bank. In February 2009 the Bank converted its charter to a California commercial bank, which gave it the added authority to accept demand deposits. At the same time, the Company also became a registered bank holding company under the federal Bank Holding Company Act. The Bank became a member of the Federal Reserve System in December 2012. The Bank is subject to regulation by the California Department of Business Oversight (“DBO”), and the Federal Reserve Bank of San Francisco (“FRB”), and its deposits are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to applicable legal limits.
On November 15, 2018, the Company and the Bank entered into a purchase and assumption agreement to sell the Bank’s retail branch located in San Marcos, California and business loan portfolio to HomeStreet Bank. The Company completed the sale in March 2019, which included the reduction of $115.4 million in loans and $74.5 million in deposits and resulted in a pre-tax gain on sale of $5.5 million.
Financial Statement Preparation and Presentation
The accompanying interim consolidated financial statements have been prepared by the Company, without audit, in accordance with the instructions to the Quarterly Report on Form 10-Q, and Rule 10-01 of Regulation S-X promulgated by the United States Securities and Exchange Commission (the “SEC”) and, therefore, do not include all information and footnotes necessary for a fair presentation of its consolidated financial statements in accordance with accounting principles generally accepted in the United States (“GAAP”).
In the opinion of management, the unaudited financial information for the interim periods presented reflects all adjustments, consisting of only normal and recurring adjustments, necessary for a fair presentation of the Company’s consolidated financial statements. These consolidated statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2018, included in the Company’s prospectus dated November 6, 2019 and filed with the SEC on November 8, 2019, relating to its initial public offering (“IPO”). Operating results for interim periods are not necessarily indicative of operating results for an entire fiscal year.
The consolidated financial statements include the accounts of the Company and all other entities in which it has a controlling financial interest. All significant intercompany accounts and transactions have been eliminated in consolidation. Unless the context requires otherwise, all references to the Company include its wholly owned subsidiaries. The accounting and reporting policies of the Company are based upon GAAP and conform to predominant practices within the financial services industry.
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and the disclosure of contingent amounts in the Company’s financial statements and the accompanying notes. Actual results could materially differ from those estimates.
Deferred Offering Costs
The Company capitalizes certain legal, accounting, and other third-party fees that are directly associated with in-process equity financings until such financings are consummated. After consummation of the equity financing, these costs are recorded in equity as a reduction from the proceeds of the offering. Should the equity financing for which those costs relate no longer be considered probable of being consummated, all deferred offering costs will be charged to operating expenses in the statement of operations. As of September 30, 2019 and December 31, 2018, the Company has recorded $2.2 million and $1.5 million, respectively, of deferred offering costs within other assets in the accompanying consolidated statement of financial condition. Subsequent to September 30, 2019, these costs were recorded in equity as a reduction to the gross proceeds in conjunction with the Company’s IPO on November 7, 2019. See “Note 15—Subsequent Events” for more information.
Adopted Accounting Pronouncements
In February 2016, the Financial Accounting Standards Board (or “FASB”) issued Accounting Standards Update (or “ASU”) 2016-02, Leases (Topic 842). This guidance amended existing guidance that requires lessees recognize the following for all leases at the commencement date: (1) A lease liability, which is a lessee’s obligation to make lease payments arising from a lease equal to the present value of lease payments; and (2) A right-of-use asset, which is an asset that represents the lessee’s

9

right to use, or control the use of, a specified asset for the lease term, based upon the amount of the lease liability. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. In July 2018 the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases and ASU 2018-11, Leases (Topics 842) Targeted Improvements, that updated narrow aspects of ASU 2016-02, include an additional transition method for adoption that results in initial recognition of a cumulative effect adjustment to retained earnings in the year of adoption and a practical expedient for lessors. These amendments were effective for fiscal years beginning after December 15, 2018. The Company has operating leases for its headquarters and bank branches that fall under Topic 842. The Company elected certain practical expedients upon transition, including retaining the lease classification for any leases that existed prior to adoption of the standard, the transition method with the application date at the beginning of the adoption period, which was January 1, 2019, elected to separate non-lease components and not to recognize short term leases. The impact of the adoption was an increase in assets and liabilities of approximately $5.5 million on its consolidated statement of financial condition. See “Note 9—Commitments and Contingencies—Operating Leases” for more information.
In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force). This ASU requires that implementation costs incurred by customers in a cloud computing arrangement be deferred and recognized over the non-cancellable term of the cloud computing arrangements plus any optional renewal periods (1) that are reasonably certain to be exercised by the customer or (2) for which exercise of the renewal option is controlled by the cloud service provider, if those costs would have been capitalized in a software licensing arrangement under the internal-use software guidance under ASC 350-40. For public business entities, amendments in this update are effective for fiscal years ending after December 15, 2020. Early adoption is permitted, including adoption in any interim period, for all entities. The amendments in this update should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company adopted the guidance prospectively as of January 1, 2019. During the nine months ended September 30, 2019 the Company deferred approximately $1.6 million under the new guidance.
Recently issued accounting pronouncements not yet effective
In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326) to replace the incurred loss model with an expected loss model, which is referred to as the current expected credit loss (or “CECL”) model. The CECL model is applicable to the measurement of credit losses on financial assets measured at amortized cost, including loan receivables, held to maturity debt securities, and reinsurance receivables. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor. These amendments were initially effective for fiscal years beginning after December 15, 2019 for SEC registrants and after December 15, 2020, for Public Business Entities, or PBEs. In November 2019, the FASB issued ASU 2019-10, Financial Instruments-Credit Losses (Topic326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates, which finalized the delay of the effective date for smaller reporting companies, such as the Company to apply the standards related to CECL, until fiscal years beginning after December 15, 2022. For debt securities with other than temporary impairment (OTTI), the guidance will be applied prospectively and for existing purchased credit impaired (PCI) assets will be grandfathered and classified as purchased credit deteriorated (PCD) assets at the date of adoption. The asset will be grossed up for the allowance for expected credit losses for all PCD assets at the date of adoption and will continue to recognize the noncredit discount in interest income based on the yield such assets as of the adoption date. Subsequent changes in expected credit losses will be recorded through the allowance. For all other assets with the scope of CECL, the cumulative effect adjustment will be recognized in retained earnings as of the beginning of the first reporting period in which the guidance is effective. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, which clarify that receivables arising from operating leases are not within the scope of Subtopic 326-20. Instead, impairment of receivables arising from operating leases should be accounted for in accordance with Topic 842, Leases. The Company formed a CECL implementation committee in 2018 which prepared a project plan to migrate towards the adoption date. As part of the project plan, the Company contracted a third-party vendor to assist in the application and analysis of ASU 2016-13 as well as a third party vendor to perform an independent model validation. As part of this process, the Company has determined preliminary loan pool segmentation under CECL, as well as evaluated the key economic loss drivers for each segment. The Company continues to work through the implementation plan and has made significant progress by performing data gap assessments, completed remediation efforts and established preliminary decisions regarding economic scenarios. The Company operationalized an initial CECL model during the second quarter of 2019, and plans to run the CECL model alongside the existing incurred loss methodology until the date of adoption. The Company expects to continually address any gaps in interpretations, methodology, data and operational processes based upon reviews and tests. The Company continues to evaluate the effects of ASU 2016-13 on its financial statements and disclosures and whether or not to early adopt the guidance in 2021 or 2022.

10

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. The updated guidance improves the disclosure requirements on fair value measurements. The updated guidance if effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for any removed or modified disclosures. The Company is currently assessing the timing and impact of adopting the updated provisions.
With the exception of the updated standards discussed above, there have been no new accounting pronouncements not yet effective that have significance, or potential significance, to the Company’s consolidated financial statements.
Note 2—Securities
The fair value of available-for-sale securities and their related gross unrealized gains and losses at the dates indicated are as follows:
 
 
Available-for-sale securities
 
 
Amortized Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Value
 
 
 
 
 
 
 
 
 
 
 
(Dollars in thousands)
September 30, 2019
 
 
 
 
 
 
 
 
Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
Government agency mortgage-backed securities
 
$
783

 
$
33

 
$
—

 
$
816

Government agency collateralized mortgage obligation
 
246,689

 
539

 
(905
)
 
246,323

Private-label collateralized mortgage obligation
 
27,385

 
567

 
(211
)
 
27,741

Commercial mortgage-backed securities:
 
 
 
 
 
 
 
 
Private-label collateralized mortgage obligation
 
363,782

 
16,998

 
—

 
380,780

Asset backed securities:
 
 
 
 
 
 
 
 
Government sponsored student loan pools
 
258,623

 
—

 
(4,366
)
 
254,257

 
 
$
897,262

 
$
18,137

 
$
(5,482
)
 
$
909,917

December 31, 2018
 
 
 
 
 
 
 
 
Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
Government agency mortgage-backed securities
 
$
932

 
$
25

 
$
—

 
$
957

Government agency collateralized mortgage obligation
 
50,888

 
37

 
(625
)
 
50,300

Private-label collateralized mortgage obligation
 
23,988

 
64

 
(107
)
 
23,945

Commercial mortgage-backed securities:
 


 


 


 


Government agency collateralized mortgage obligation
 
23,817

 
—

 
(1,065
)
 
22,752

Asset backed securities:
 


 


 


 


Government sponsored student loan pools
 
260,050

 
188

 
(1,014
)
 
259,224

 
 
$
359,675

 
$
314

 
$
(2,811
)
 
$
357,178

The amortized cost, unrealized gains and losses, and fair value of securities held-to-maturity at the dates indicated are as follows:
 
 
Held-to-maturity securities
 
 
Amortized Cost
 
Gross
Unrecognized
Gains
 
Gross
Unrecognized
Losses
 
Fair Value
 
 
 
 
 
 
 
 
 
 
 
(Dollars in thousands)
September 30, 2019
 
 
 
 
 
 
 
 
Collateralized mortgage obligations
 
$
—

 
$
—

 
$
—

 
$
—

December 31, 2018
 
 
 
 
 
 
 
 
Collateralized mortgage obligations
 
$
73

 
$
—

 
$
(1
)
 
$
72



11

At September 30, 2019 and December 31, 2018, the Company had no private-label held-to-maturity collateralized mortgage obligations.
At September 30, 2019, there were no investment securities pledged for borrowings. There were no investment securities pledged for borrowings or for other purposes as required or permitted by law as of December 31, 2018.
At September 30, 2019, the total fair value of securities issued by six individual issuers, other than the U.S. Government and its agencies, in an amount greater than 10% of shareholders’ equity was $360.9 million.
Securities with unrealized losses as of the dates indicated, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows:
 
 
Available-for-sale securities
 
 
Less than 12 Months
 
12 Months or More
 
Total
 
 
Fair Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
Losses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in thousands)
September 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
Government agency collateralized mortgage obligation
 
149,711

 
(852
)
 
11,210

 
(53
)
 
160,921

 
(905
)
Private-label collateralized mortgage obligation
 
60

 
—

 
15,976

 
(211
)
 
16,036

 
(211
)
Asset backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
Government sponsored student loan pools
 
145,165

 
(2,388
)
 
109,092

 
(1,978
)
 
254,257

 
(4,366
)
 
 
$
294,936

 
$
(3,240
)
 
$
136,278

 
$
(2,242
)
 
$
431,214

 
$
(5,482
)
December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
Government agency collateralized mortgage obligation
 
$
9,952

 
$
(58
)
 
$
29,450

 
$
(567
)
 
$
39,402

 
$
(625
)
Private-label collateralized mortgage obligation
 
19,061

 
(80
)
 
1,703

 
(27
)
 
20,764

 
(107
)
Commercial mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
Government agency collateralized mortgage obligation
 
—

 
—

 
22,752

 
(1,065
)
 
22,752

 
(1,065
)
Asset backed securities:
 


 


 


 


 


 


Government sponsored student loan pools
 
219,169

 
(1,014
)
 
—

 
—

 
219,169

 
(1,014
)
 
 
$
248,182

 
$
(1,152
)
 
$
53,905

 
$
(1,659
)
 
$
302,087

 
$
(2,811
)

As indicated in the tables above, as of September 30, 2019, the Company’s investment securities had gross unrealized losses totaling approximately $5.5 million, compared to approximately $2.8 million at December 31, 2018. The Company analyzed all of its securities with an unrealized loss position. For each security, the Company analyzed the credit quality and performed a projected cash flow analysis. In analyzing the credit quality, management may consider whether the securities are issued by the federal government, its agencies or its sponsored entities, or non-governmental entities, whether downgrades by bond rating agencies have occurred, and if credit quality has deteriorated. In analyzing the issuer’s financial condition, management may consider whether the securities are issued by the federal government, its agencies or its sponsored entities, or non-governmental entities, whether downgrades by bond rating agencies have occurred, and the results of review of the issuer’s financial condition. When performing a cash flow analysis the Company uses models that project prepayments, default rates, and loss severities on the collateral supporting the security, based on underlying loan level borrower and loan characteristics and interest rate assumptions. In addition, the Company has contracted with third party companies to perform independent cash flow analyses of its securities portfolio as needed. Based on these analyses and reviews conducted by the Company, and

12

assisted by independent third parties, the Company determined that none of its securities required an other-than-temporary impairment charge at September 30, 2019 or December 31, 2018. Management continues to expect to recover the adjusted amortized cost basis of these bonds.
As of September 30, 2019, the Company had 31 securities whose estimated fair value declined 1.26% from the Company’s amortized cost; at December 31, 2018, the Company had 32 securities whose estimated fair value declined 0.92% from the Company’s amortized cost. The unrealized losses relate principally to the general change in market interest rates since the purchase dates and such unrecognized losses will continue to vary with general market interest rate fluctuations in the future. Fair values are expected to recover as the securities approach their respective maturity dates and management believes it is not more likely than not it will be required to sell before recovery of the amortized cost basis.
For both the three and nine months ended September 30, 2019 the Company received $31.1 million in proceeds and recognized $16,000 in losses on sales of available for sale securities. There were no sales and calls of securities during the for the three and nine months ended September 30, 2018.
There were no credit losses recognized in earnings for the three and nine months ended September 30, 2019 and 2018.
Note 3—Loans
The following disclosure reports the Company’s loan portfolio segments and classes. Segments are groupings of similar loans at a level in which the Company has adopted systematic methods of documentation for determining its allowance for loan and credit losses. Classes are a disaggregation of the portfolio segments. The Company’s loan portfolio segments are:
Real estate loans. Real estate includes loans for which the Company holds one-to-four family, multi-family, commercial and construction real property as collateral. Commercial real estate lending activity is typically restricted to owner-occupied properties or to investor properties that are owned by customers with a current banking relationship. The primary risks of real estate mortgage loans include the borrower’s inability to pay, material decreases in the value of the real estate that is being held as collateral and significant increases in interest rates, which may make the real estate mortgage loan unprofitable. Real estate loans also may be adversely affected by conditions in the real estate markets or in the general economy.
Commercial and industrial. Commercial and industrial loans consist of loans and lines of credit to small and medium-sized businesses in a wide variety of industries, including distributors, manufacturers, software developers business services companies and independent finance companies. Commercial and industrial loans are generally collateralized by accounts receivable, inventory, equipment, loan and lease receivables, and other commercial assets, and may be supported by other credit enhancements such as personal guarantees. Risk may arise from differences between expected and actual cash flows and/or liquidity levels of the borrowers, as well as the type of collateral securing these loans and the reliability of the conversion thereof to cash. Since the March 2019 sale of our business loan portfolio, commercial and industrial loans consist primarily of asset based loans.
Consumer and other. Consumer loans consist of consumer loans and other loans secured by personal property.
Reverse mortgage. From 2012 to 2014, the Company purchased home equity conversion mortgage (“HECM”) loans (also known as reverse mortgage loans) which are a special type of home loan, for homeowners aged 62 years or older, that requires no monthly mortgage payments. Reverse mortgage loan insurance is provided by the U.S. Federal Housing Administration through the HECM program which protects lenders from losses due to non-repayment of the loans. In mid-2014, the Bank ceased purchases of reverse mortgage loans and, began selling its remaining loans in the secondary market. At September 30, 2019, the Bank owned $1.6 million of reverse mortgage loans.
Mortgage warehouse. The Company’s warehouse lending division provides short-term interim funding for single-family residential mortgage loans originated by mortgage bankers or other lenders pending the sale of such loans in the secondary market. The Company’s risk is mitigated by comprehensive policies, procedures, and controls governing this activity, partial loan funding by the originating lender, guaranties or additional monies pledged to the Company as security, and the short holding period of funded loans on the Company’s balance sheet. In addition, the loss rates of this portfolio have historically been minimal, and these loans are all subject to written purchase commitments from takeout investors or are hedged. The Company’s mortgage warehouse loans may either be held-for-investment or held-for-sale depending on the underlying contract. The Company sold approximately $23.7 million and $19.9 million of loans to participants during the three months ended September 30, 2019 and 2018, respectively. The Company sold approximately $124.3 million and $130.0 million of loans to participants during the nine months ended September 30, 2019 and 2018, respectively. At September 30, 2019 and December 31, 2018, gross warehouse loans were approximately $368.6 million and $252.6 million, respectively.

13

A summary of loans as of the periods presented are as follows:
 
 
September 30,
2019
 
December 31,
2018
 
 
 
 
 
 
 
(Dollars in thousands)
Real estate loans:
 
 
 
 
One-to-four family
 
$
212,440

 
$
190,885

Multi-family
 
77,901

 
40,584

Commercial
 
322,733

 
309,655

Construction
 
3,986

 
3,847

Commercial and industrial
 
14,563

 
8,586

Consumer and other
 
76

 
150

Reverse mortgage
 
1,629

 
1,742

Mortgage warehouse
 
61,856

 
41,586

Total gross loans held-for-investment
 
695,184

 
597,035

Deferred fees, net
 
2,997

 
2,469

Total loans held-for-investment
 
698,181

 
599,504

Allowance for loan losses
 
(6,191
)
 
(6,723
)
Total loans held-for-investment, net
 
$
691,990

 
$
592,781

Total loans held-for-sale(1)
 
$
311,410

 
$
350,636

________________________
(1)
Loans held-for-sale included $306.7 million, and $211.0 million of mortgage warehouse loans at September 30, 2019 and December 31, 2018, respectively. At December 31, 2018, loans held-for-sale also included $125.2 million of business loans that were sold in March 2019, discussed in “Note 1—Nature of Business and Summary of Significant Accounting Policies”.
At September 30, 2019 and December 31, 2018, approximately $618.7 million and $546.7 million, respectively, of the Company’s loan portfolio were collateralized by various forms of real estate. A significant percentage of such loans are collateralized by properties located in California (66.6% and 69.7% as of September 30, 2019 and December 31, 2018, respectively), Arizona (8.4% and 7.3% as of September 30, 2019 and December 31, 2018, respectively), and Florida (5.6% and 3.4% as of September 30, 2019 and December 31, 2018, respectively) with no other state greater than 5%. The Company attempts to address and mitigate concentrations of credit risk by making loans that are diversified by collateral type, placing limits on the amounts of various categories of loans relative to total Company capital, and conducting quarterly reviews of its portfolio by collateral type, geography, and other characteristics. While management believes that the collateral presently securing its portfolio and the recorded allowance for loan losses are adequate to absorb potential losses, there can be no assurances that significant deterioration in the California, Florida and Arizona real estate markets would not expose the Company to significantly greater credit risk.
Recorded investment in loans excludes accrued interest receivable, loan origination fees, net and unamortized premium or discount, net due to immateriality. Accrued interest on loans held-for-investment totaled approximately $2.4 million and $2.1 million and deferred fees totaled approximately $3.0 million and $2.5 million at September 30, 2019 and December 31, 2018, respectively.
Allowance for Loan Losses
The following tables present the allocation of the allowance for loan losses, as well as the activity in the allowance by loan class, and recorded investment in loans held-for-investment as of and for the periods presented:
 
 
Three Months Ended September 30, 2019
 
 
One-to
-Four
Family
 
Multi-
Family
 
Commercial
Real Estate
 
Construction
 
Commercial
and Industrial
 
Consumer
and Other
 
Reverse
Mortgage
 
Mortgage
Warehouse
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in thousands)
Balance, June 30, 2019
 
$
1,769

 
$
879

 
$
3,761

 
$
79

 
$
237

 
$
1

 
$
36

 
$
287

 
$
7,049

Charge-offs
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Recoveries
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Provision for loan losses
 
282

 
(226
)
 
(970
)
 
17

 
75

 
—

 
1

 
(37
)
 
(858
)
Balance, September 30, 2019
 
$
2,051

 
$
653

 
$
2,791

 
$
96

 
$
312

 
$
1

 
$
37

 
$
250

 
$
6,191


14

 
 
Three Months Ended September 30, 2018
 
 
One-to
-Four
Family
 
Multi-
Family
 
Commercial
Real Estate
 
Construction
 
Commercial
and Industrial
 
Consumer
and Other
 
Reverse
Mortgage
 
Mortgage
Warehouse
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in thousands)
Balance, June 30, 2018
 
$
1,782

 
$
200

 
$
4,455

 
$
130

 
$
1,424

 
$
1

 
$
46

 
$
288

 
$
8,326

Charge-offs
 
(6
)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(6
)
Recoveries
 
—

 
—

 
—

 
—

 
68

 
—

 
—

 
—

 
68

Provision for loan losses
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Balance, September 30, 2018
 
$
1,776

 
$
200

 
$
4,455

 
$
130

 
$
1,492

 
$
1

 
$
46

 
$
288

 
$
8,388

 
 
Nine Months Ended September 30, 2019
 
 
One-to
-Four
Family
 
Multi-
Family
 
Commercial
Real Estate
 
Construction
 
Commercial
and Industrial
 
Consumer
and Other
 
Reverse
Mortgage
 
Mortgage
Warehouse
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in thousands)
Balance, December 31, 2018
 
$
1,848

 
$
483

 
$
3,854

 
$
98

 
$
156

 
$
1

 
$
54

 
$
229

 
$
6,723

Charge-offs
 
(93
)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(93
)
Recoveries
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Provision for loan losses
 
296

 
170

 
(1,063
)
 
(2
)
 
156

 
—

 
(17
)
 
21

 
(439
)
Balance, September 30, 2019
 
$
2,051

 
$
653

 
$
2,791

 
$
96

 
$
312

 
$
1

 
$
37

 
$
250

 
$
6,191

 
 
Nine Months Ended September 30, 2018
 
 
One-to
-Four
Family
 
Multi-
Family
 
Commercial
Real Estate
 
Construction
 
Commercial
and Industrial
 
Consumer
and Other
 
Reverse
Mortgage
 
Mortgage
Warehouse
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in thousands)
Balance, December 31, 2017
 
$
1,991

 
$
226

 
$
4,711

 
$
140

 
$
677

 
$
18

 
$
41

 
$
361

 
$
8,165

Charge-offs
 
(6
)