Signature Bank (SBNY) Has Another Record Quarter

Jacob Harper  |

On Jan 21 Signature Bank (SBNY) reported earnings for the fourth fiscal quarter of 2013, and the numbers exceeded analyst expectations on all fronts. The bank was spurred by an increase in the most basic fundamentals and rosy projections for performance over the rest of the year.

In the report, CEO Joseph DePaolo credited a general economic turnaround for Signature’s success. He stated the exceptional quarter was all-encompassing, noting that "as our economy emerges from years of slow growth, we are enjoying traction across all segments of our business," with notable upticks in deposits and loans.

Signature’s reliance on traditional fundamental banking whilst eschewing overexposure has made it a real anomaly in the Financial sector. The company bucked macroeconomic trends during the crippling 2008 recession, experiencing only a slight loss of valuation. The bank has been on an essentially uninterrupted climb since 2009 and has set a new record for earnings for 17 straight quarters.

For their fourth quarter 2013 earnings report, Signature Bank reported a net gain of $64.3 million, or $1.34 per share, versus the net profit of $50.01 million, or $1.05 per share, from the same period a year ago. Revenue for the quarter was $184.3 million, as compared to $156.04 million from the same quarter the previous year. Analysts were expecting a profit of $1.27 per share on revenues of $181.3 million.

Deposits increased $1 billion. For the year, deposits grew $2.97 billion. Loans grew $1.4 billion, or 12 percent, and grew $3.75 billion on the year, a record for the company.

Founded in 2001, Signature sports 25 retail locations scattered throughout the New York City metropolitan region.

Signature skyrocketed on the news, gaining 13.67 percent to hit $125.15 a share by midday trading. The regional bank play is up 60 percent from its price a year ago.

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Companies

Symbol Name Price Change % Volume
SBNY Signature Bank 124.40 3.08 2.54 909,078 Trade
JSFCF Sistema PJSFC GDR (Sponsored) Reg S 2.51 0.00 0.00 9,738

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