Signature Bank (SBNY) Misses Q2 EPS by 3c

Signature Bank (NASDAQ: SBNY) reported Q2 EPS of $2.21, $0.03 worse than the analyst estimate of $2.24. Revenue for the quarter came in at $387.1 million versus the consensus estimate of $389.14 million.

“The best way to address the future COVID-19 economic uncertainty is by executing in the present. We are working tirelessly to assist our clients through these most difficult times. To this end, we’ve been rewarded by their dedication to our bankers and Signature Bank, which led to, by far, our greatest growth quarter ever. By controlling what we can amid this tumultuous environment – through a commitment to our single-point-of-contact model and ongoing execution of our diversification strategy – we believe we are well positioned to navigate this difficult landscape, and to ultimately excel,” explained Signature Bank President and Chief Executive Officer Joseph J. DePaolo.

“The record quarterly deposit growth emanated from all facets of the Bank, including our well-established private client banking teams and business units, our blockchain-based payments platform, Signet™, the recently formed Digital Banking Group, Fund Banking Division, Venture Banking Group and Specialized Mortgage Servicing Banking Team as well as our latest West Coast expansion efforts. Additionally, this quarter we saw record loan growth, both with and without the Payroll Protection Program (PPP) loans. This occurred while we also continued our asset diversification strategy - by furthering Commercial and Industrial lending - primarily through the Fund Banking Division, and selectively growing our commercial real estate portfolio. Perhaps, most importantly, the best reflection of the quarter’s strong results can be evidenced in our reduction of payment deferrals. As of July 15th, of the loans that had their payment deferral come due after three months, we’ve seen 60 percent of the loans resume payment status,” DePaolo concluded.

“These unprecedented times reveal the strength of our client relationships. As with the 2007-2009 financial crisis -- first and foremost -- clients must be confident in knowing they have a trusted advisor, such as a bank that will leave no stone unturned when supporting them; one which ensures sleep-at-night safety for their funds. Signature Bank has proven its place as this type of institution, time and again; possibly more so now than ever. Our private client bankers and senior management team have been in constant contact with clients as the current economic situation unfolded and unexpectedly impacted their businesses. Furthermore, we put forth a major effort on behalf of our clients, working closely with them on the PPP process to enable eligibility for accessing these funds. We are extremely proud of our colleagues’ dedication, as they worked diligently to get this right. Clients noticed and appreciated this level of performance, which further validated how Signature Bank is a safe repository for their hard-earned monies and a fortress for their funds. We know we are better together and prosper as our clients prosper,” explained Scott A. Shay, Chairman of the Board.

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

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