SBNY

Investment Analysis Clubs Saul’s Investing Discussions
1

Might trade down a bit today.

NEW YORK–(BUSINESS WIRE)–

Signature Bank (SBNY), a New York-based full-service commercial bank, today announced results for its third quarter ended September 30, 2016. Net income for the 2016 third quarter was $76.1 million, or $1.41 diluted earnings per share, versus $96.2 million, or $1.88 diluted earnings per share, for the 2015 third quarter. The decrease in net income for the 2016 third quarter, versus the comparable quarter last year, is primarily due to an increase in the provision for loan losses of $69.1 million. $61.7 million of the increase in provision for loan losses was due to the Chicago taxi medallion portfolio.

Net interest income for the 2016 third quarter reached $290.5 million, up $40.5 million, or 16.2 percent, when compared with the 2015 third quarter. This increase is primarily due to growth in average interest-earning assets. Total assets reached $37.79 billion at September 30, 2016, an increase of $5.87 billion, or 18.4 percent, from $31.92 billion at September 30, 2015. Average assets for the 2016 third quarter reached $37.30 billion, an increase of $6.10 billion, or 19.6 percent, compared with the 2015 third quarter.

Deposits for the 2016 third quarter rose $1.82 billion, or 6.1 percent, to $31.40 billion at September 30, 2016. When compared with deposits at September 30, 2015, overall deposit growth for the last twelve months was 18.0 percent, or $4.78 billion. Average deposits for the 2016 third quarter reached $30.52 billion, an increase of $1.44 billion, or 4.9 percent.

“This quarter, Signature Bank effectively put the Chicago taxi medallion portfolio issues behind us, while growing deposits in excess of $1.8 billion. As we grow, we continue to expand our geographic outreach for securing deposits on a national basis across a number of industries. Our capabilities, service and trusted reputation for safety have always enabled the Bank to compete with major financial institutions throughout the New York metropolitan area. Now, these attributes afford us the opportunity to garner deposits in other regions of the country as well,” stated Joseph J. DePaolo, President and Chief Executive Officer…

http://finance.yahoo.com/news/signature-bank-reports-2016-th…

JT
Without the write down eps would have been $2.11 says an AP story.

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2

Seems like a good enough time to initiate a position, though SBNY still carrying higher multiples than its peers

3

Today’s share price wipes three years off the table and brings us back to the January 2014 level.

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4

I haven’t had a chance to look into any of this myself yet, but regarding this:

This quarter, Signature Bank effectively put the Chicago taxi medallion portfolio issues behind us…

I thought they put the taxi medallion loan issues behind them last quarter?

This happens with so many stocks I hold, they keep dragging me along, saying what they need to say to keep me holding on for one more quarter, when “whatever” issue will be behind them.

Meanwhile, the stock price keeps on falling…frustrating, to say the least!

5

Today’s share price wipes three years off the table and brings us back to the January 2014 level.

Price was up $4.10 yesterday and today is down $3.30 as I look right now. That’s not a catastrophic market response (down 2.8%) when a bad report often will drop a stock by 15 or 20% or more. Just saying.
Saul

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6

For what it’s worth:

October 20, 2016
BUSINESS WIRE)–
Signature Bank (SBNY), a New York-based full-service commercial bank, announced today that Kroll Bond Rating Agency (KBRA), a full-service rating agency, affirmed the following investment grade ratings to the Bank, based on KBRA’s Global Bank and Bank Holding Company Rating Methodology, which evaluates liquidity, asset quality, capital adequacy and earnings:


 	 	**Type	 	 	 Rating	 	 Outlook**
		Deposit			A+		Stable
		Senior Unsecured Debt	A+		Stable
		Subordinated Debt	A		Stable
		Short-Term Deposit	K1		N/A
		Short-Term Debt		K1		N/A

This is the second consecutive year for which Signature Bank received these same investment grade ratings from Kroll. According to KBRA, Signature Bank’s ratings were supported by its solid fundamentals, including strong earnings, a healthy liquidity position and sound capital ratios. Furthermore, the ratings were reinforced by the Bank’s veteran management team, its disciplined underwriting practices and financial results that consistently outperformed that of its peer group, particularly during recent economic downturns.

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