Silvergate Bank's stock faces 40% plunge in pre-market trading

The shares of Silvergate Bank, which had been already below pressure because of a postpone in submitting its annual 10-K document, dropped some other 40% in pre-marketplace trading.

Silvergate`s inventory rate fell 4.1% to $3.ninety six in keeping with proportion on Wednesday after it behind schedule submitting its annual document with the aid of using in the future to Jan. 29 due to an trouble with the SEC's EDGAR machine that become associated with its 10-K submitting. It is doubtful whether or not the problem could be resolved earlier than Thursday's cut-off date or if traders will get hold of a revised submitting on Thursday.

The agency has been below stress for months as traders be concerned approximately its capacity to deal with the developing range of antisocial loans and an growth in horrific debt losses from clients who're suffering with unemployment or underemployment. It additionally faces scrutiny from regulators over its economic statements and disclosures surrounding its burgeoning felony legal responsibility related to one in every of its biggest clients, Fannie Mae (FNMA), which went bankrupt in 2008 amid allegations that it had inflated its profits estimates for years previous to its collapse.