The Federal Home Loan Bank of San Francisco has denied rumors that it forced Silvergate Bank to repay advances, which were speculated to be the reason behind Silvergate's shutdown. A spokesperson for the FHLB said that Silvergate made the decision to prepay its outstanding advances based on its own assessment of its position and that the FHLB did not request or compel Silvergate to do so. Silvergate Capital disclosed in a securities filing that it had to accelerate sales of securities to repay its loans from the FHLB.
The FHLB clarified that it could require prepayment if the bank it's loaning to experiences a material adverse change, but this did not happen with Silvergate. The FHLB also stated that it assumed any prudent borrower in Silvergate's position would assess their own position and make their own decisions about what was in their best interest.