Signature Bank Earned $2.11 Per Share for Q4

This morning, Signature Bank (SBNY) reported Q4 earnings of $2.11 per share. That was two cents more than Wall Street’s consensus. Overall, this was another good quarter for Signature.

The bank earned $7.37 per share for the year. That was only 10 cents more than 2015’s total, but remember they took a 70-cent charge related to their medallion loans. Still, they were to top 2015’s result which made 2016 their ninth record year in a row. Total deposits grew 19% on the year. The key stat is net interest margin and that came in at 3.30%. That’s quite good.

The bank also improved its fiscal condition this year by raising money from the capital markets. They had a common stock offering that brought in $320 million, plus a debt offering that took in $260 million.

Signature Bank Chairman of the Board Scott A. Shay, noted: “Signature Bank has produced yet another record year of earnings and solid financial performance. We are proud that — even from the depths of the financial crisis — we maintained a rapid growth pace while remaining a pillar of strength for our clients during those uncertain times.

“As the Bank continues to grow, we retain our strong disciplines and follow the hedgehog theory of business – doing a few things but doing each of them very well. In our case, that means maintaining our unrelenting commitment to depositor safety and service and conservative lending posture. We look forward to the New Year and to embracing many opportunities as we have built a platform poised to serve an expanding roster of clients,” Shay concluded.

Shares of SBNY weren’t doing much until the election. Then the stock jumped 21% in four days. The rally started to peter out once SBNY got to $150 per share, and that’s about where the stock is today.

Posted by on January 19th, 2017 at 11:57 am


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