Forbes Names Signature Bank as America’s Best Bank

From Forbes:

The top U.S. bank this year is New York-based Signature Bank SBNY -1.17%. The full-service commercial bank started in 2001 and has grown to $26 billion in assets with 27 private client offices throughout the New York-metro area. “There is a lot of runway in the New York metro area for us to grow,” says CEO Joe DePaolo in extolling the NYC market. There are $1.4 trillion in deposits in New York banks, almost three times the next biggest metro of Philadelphia.

Signature focuses primarily on the needs of privately owned businesses with at least $20 million in revenue. But DePaolo says the bank will also target a law firm with $2 million in billings because it has a $35 million escrow account. “This is where we thrive because that client gets lost with the big institution,” he says. Signature’s attention to law firms helped it get named Best Business Bank by the New York Law Journal this year in their annual reader survey.

Signature has racked up an impressive financial performance. It has posted 20 straight quarters of record earnings. Return on average equity of 13.8% over the last 12 months ranks fifth among the 100 largest banks. The bank also ranks in the top five for nonperforming assets as a percent of total assets (0.1%), nonperforming loans (NPLs) as a percent of total loans (0.15%) and reserves as a percent of NPLs (634%). While many banks are struggling to increase revenue, Signature posted growth of 21% over the past year. Wall Street recognizes the level of Signature’s asset quality and performance, as the stock trades at 2.5 times book value, third most expensive among the 100 biggest banks.

Posted by on January 7th, 2015 at 8:36 am


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