Signature Bank (SBNY) Misses Q1 EPS by 7c

Signature Bank (NASDAQ: SBNY) reported Q1 EPS of $2.69, $0.07 worse than the analyst estimate of $2.76. Revenue for the quarter came in at $318.99 million versus the consensus estimate of $332.44 million.

• Net Income for the 2019 First Quarter Was $144.1 Million, or $2.65 Diluted Earnings Per Share, Versus $34.5 Million, or $0.63 Diluted Earnings Per Share, Reported in the 2018 First Quarter. Excluding the Effect of the Taxi Medallion Portfolio, 2018 First Quarter Net Income Would Have Been $146.8 Million, or $2.69 Diluted Earnings Per Share
• 2019 First Quarter Net Income Was Negatively Affected by a Decrease in Prepayment Penalty Income of $9.4 Million and $4.3 Million From the 2018 Fourth and First Quarters, Respectively
• The Bank Declared a Cash Dividend of $0.56 Per Share, Payable on or After May 15, 2019 to Common Stockholders of Record at the Close of Business on May 1, 2019
• During the 2019 First Quarter, the Bank Repurchased 173,193 Shares of Common Stock For a Total of $22.9 Million
• Total Deposits in the First Quarter Grew $243.8 Million to $36.62 Billion; Total Deposits Have Grown $1.80 Billion, or 5.2 Percent, Since the End of the 2018 First Quarter. Escrow Deposits Decreased $659.8 Million in the 2019 First Quarter. Average Deposits Increased $210.0 Million in the 2019 First Quarter
• For the 2019 First Quarter, Loans Increased $1.04 Billion, or 2.9 Percent, to $37.47 Billion. Since the End of the 2018 First Quarter, Loans Have Increased 12.7 Percent, or $4.22 Billion
• Non-Accrual Loans Were $94.7 Million, or 0.25 Percent of Total Loans, at March 31, 2019, Versus $108.6 Million, or 0.30 Percent, at the End of the 2018 Fourth Quarter and $168.7 Million, or 0.51 Percent, at the End of the 2018 First Quarter. Excluding Taxi Medallion Loans, Which Were All Placed on Non-Accrual in the 2017 Second Quarter, Non-Accrual Loans Were $18.6 Million, or Five Basis Points of Total Loans
• Net Interest Margin on a Tax-Equivalent Basis was 2.75 Percent, Compared with 2.90 Percent for the 2018 Fourth Quarter and 3.01 Percent for the 2018 First Quarter. Core Net Interest Margin on a Tax-Equivalent Basis Excluding Loan Prepayment Penalty Income Decreased Seven Basis Points to 2.73 Percent, Compared with 2.80 Percent for the 2018 Fourth Quarter
• Tier 1 Leverage, Common Equity Tier 1 Risk-Based, Tier 1 Risk-Based, and Total Risk-Based Capital Ratios were 9.68 Percent, 11.97 Percent, 11.97 Percent, and 13.24 Percent, Respectively, at March 31, 2019. Signature Bank Remains Significantly Above FDIC “Well Capitalized” Standards. Tangible Common Equity Ratio was 9.29 Percent
• In the 2019 First Quarter, the Bank Appointed One Private Client Banking Team and Announced Its Entry Into Venture Banking With the Hiring of a Twenty Plus Person Team. Thus Far in the 2019 Second Quarter, the Bank Has Hired One Additional Private Client Banking Team for its San Francisco Office

“The past several quarters have been extremely productive for Signature Bank as we build for the future. During this time, we started two best-in-class divisions -- the Fund Banking Division and the Venture Banking Group -- while also commencing our West Coast operations with the opening of our San Francisco private client banking office. Additionally, we launched SignetTM, our proprietary, blockchain-based digital real time (24/7/365) payments platform. We have added qualified colleagues to our team across the board to support all of these new business initiatives. We embarked on these pertinent growth initiatives simultaneously as we believe they will all contribute to strengthening our franchise and help position the Bank for continued success,” explained Joseph J. DePaolo, Co-founder, President and Chief Executive Officer.

“Private equity and venture banking clients are an ever-growing component of the economic landscape, especially in the primary markets we serve throughout New York and California. Our Fund and Venture Banking businesses will afford us the opportunity to cater to these expanding client bases while also furthering our commitment to grow core deposits and diversify our balance sheet,” DePaolo concluded.

“While we just celebrated our 15th anniversary as a public company, we remain an innovator, ensuring we are providing clients what they need to successfully operate their businesses. This can be evidenced by the introduction of our blockchain-based technology platform, Signet, which provides 24/7/365 funds transfers and will change the way our commercial clients conduct business,” explained Scott A. Shay, Chairman of the Board.

“Signature Bank remains the bank of choice for banking teams looking for the most responsive venue to best serve their clients. Perhaps the real testimony to our success is that we always hold fast to our commitment to serve our clients with the best possible means while providing depositor safety by remaining a sleep-at-night bank,” Shay said.

For earnings history and earnings-related data on Signature Bank (SBNY) click here.

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