- Net Income for the 2018 Third
Quarter Was $155.4 Million, or $2.84 Diluted Earnings Per Share
Versus $124.5 Million, or $2.29 Diluted Earnings Per Share,
Reported in the 2017 Third Quarter
- The Bank Declared a Cash Dividend of
$0.56 Per Share, Payable on or After November 15, 2018 to Common
Stockholders of Record at the Close of Business on November 1,
2018
- On October 17th, Bank
Stockholders Approved the Bank’s Stock Repurchase Program
- Total Deposits in the Third Quarter
Grew $1.10 Billion to $36.09 Billion. Total Deposits Have Grown
$2.41 Billion, or 7.2 Percent, Since the End of the 2017 Third
Quarter. Average Deposits Increased $1.27 Billion, or 3.7 Percent,
in the 2018 Third Quarter
- For the 2018 Third Quarter, Loans
Increased $979.7 Million, or 2.9 Percent, to $35.13 Billion. Since
the End of the 2017 Third Quarter, Loans Have Increased 12.6
Percent, or $3.94 Billion
- Non-Accrual Loans were $134.2
Million, or 0.38 Percent of Total Loans, at September 30, 2018,
Versus $158.1 Million, or 0.46 Percent, at the End of the 2018
Second Quarter and $376.9 Million, or 1.21 Percent, at the End of
the 2017 Third Quarter. Excluding Taxi Medallion Loans, Which Were
All Placed on Non-Accrual in the 2017 Second Quarter, Non-Accrual
Loans Were $22.5 Million, or Six Basis Points of Total
Loans
- Net Interest Margin on a
Tax-Equivalent Basis Was 2.88 Percent, Compared with 2.94 Percent
for the 2018 Second Quarter and 3.05 Percent for the 2017 Third
Quarter. Core Net Interest Margin on a Tax-Equivalent Basis
Excluding Loan Prepayment Penalty Income Decreased Four Basis
Points to 2.85 Percent for the 2018 Third Quarter when Compared
with the Previous Quarter
- Tier 1 Leverage, Common Equity Tier
1 Risk-Based, Tier 1 Risk-Based and Total Risk-Based Capital Ratios
were 9.67 Percent, 12.13 Percent, 12.13 Percent and 13.44 Percent,
Respectively, at September 30, 2018. Signature Bank Remains
Significantly Above FDIC “Well Capitalized” Standards. Tangible
Common Equity Ratio Was 9.15 Percent
- Four Private Client Banking Teams
Joined During the 2018 Third Quarter Bringing the Total Teams Hired
to Eight in 2018.
Signature Bank (Nasdaq: SBNY), a New York-based full-service
commercial bank, today announced results for its third quarter
ended September 30, 2018. Net income for the 2018 third quarter was
$155.4 million, or $2.84 diluted earnings per share, versus $124.5
million, or $2.29 diluted earnings per share, for the 2017 third
quarter. The increase in net income for the 2018 third quarter,
versus the comparable quarter last year, is primarily due to an
increase in net interest income and a decrease in the provision for
loan losses and income tax expense.
Net interest income for the 2018 third quarter reached $324.8
million, up $16.0 million, or 5.2 percent, when compared with the
2017 third quarter. This increase is primarily due to growth in
average interest-earning assets. Total assets reached $45.87
billion at September 30, 2018, an increase of $4.54 billion, or
11.0 percent, from $41.33 billion at September 30, 2017. Average
assets for the 2018 third quarter reached $45.48 billion, an
increase of $4.60 billion, or 11.3 percent, compared with the 2017
third quarter.
Deposits for the 2018 third quarter rose $1.10 billion, or 3.1
percent, to $36.09 billion at September 30, 2018. When compared
with deposits at September 30, 2017, overall deposit growth for the
last twelve months was 7.2 percent, or $2.41 billion. Average
deposits for the 2018 third quarter reached $35.78 billion, an
increase of $1.27 billion, or 3.7 percent.
“During the past few quarters, Signature Bank has executed
several growth initiatives paving the way for the future direction
of this institution. These strategies include taking our successful
single-point-of-contact model outside of the metro-New York area --
where we spent 17 years building the foundation of our business --
and bringing it to San Francisco after we identified a glaring
need. In the 2018 first quarter, we appointed a digital asset
banking team because we want to be nimble and ready to change as
the market evolves. Just recently, we hired a nine-person team
focusing on capital call and subscription finance for private
equity firms. And lastly, we have been heavily investing in our
infrastructure with the implementation of new systems for loan
operations (now in place), credit approvals and foreign exchange as
well as an enhanced payments platform,” explained Joseph J.
DePaolo, President and Chief Executive Officer.
“Our success since our founding in 2001 is predicated on our
ability to attract seasoned bankers who serve as client contacts
for all banking needs. This client-centric philosophy is at the
crux of all we do. The advancements we are making are all
accomplished with client satisfaction at their core. At the same
time, we are expanding our reach in new business activities,
geography and capabilities. We must take measured risks to fuel
future growth, but they are far less than the long-range risks of
comfortable inaction. We believe the initiatives upon which we are
embarking today will set the stage for the Signature Bank of
tomorrow,” DePaolo concluded.
Scott A. Shay, Chairman of the Board, said: “Signature Bank has
grown into the 40th largest bank in the U.S., without performing
any mergers or acquisitions. Instead, we built our business
methodically and organically -- banker by banker -- partnering with
those individuals who attract, build and nurture an expansive
portfolio of loyal banking clients. We are proud that even after
17+ years in operation, we are still the bank of choice amongst
veteran bankers who are passionate about delivering best-in-class
service to clients. Every team we attract brings along an
unwavering commitment to catering to clients.”
“While we recognize the maxim that ‘what got you here, won't get
you there,’ we are constantly on the lookout for new ideas adjacent
to our business strategy, including those we can thoughtfully
expand upon and which allow us to continue to execute on our
service hallmark. This is evidenced by our recent San Francisco
expansion. We also recognize that banking and payment technologies
are rapidly advancing, and are focused on incorporating evolving
technologies relevant to our clients’ needs. While the banking
landscape always seems to be increasingly more competitive and
challenging, Signature Bank remains stable and at the forefront of
both thought- and action-based leadership that positively
influences the success of clients,” Shay stated.
Capital
The Bank’s Tier 1 leverage, common equity Tier 1 risk-based,
Tier 1 risk-based, and total risk-based capital ratios were
approximately 9.67 percent, 12.13 percent, 12.13 percent, and 13.44
percent, respectively, as of September 30, 2018. Each of these
ratios is well in excess of regulatory requirements. The Bank’s
strong risk-based capital ratios reflect the relatively low risk
profile of the Bank’s balance sheet. The Bank’s tangible common
equity ratio remains strong at 9.15 percent. The Bank defines
tangible common equity ratio as the ratio of total tangible common
shareholders’ equity to total tangible assets.
The Bank declared a cash dividend of $0.56 per share, payable on
or after November 15, 2018 to common stockholders of record at the
close of business on November 1, 2018. In the third quarter of
2018, the Bank paid a cash dividend of $0.56 per share to common
stockholders of record at the close of business on August 1,
2018.
Net Interest Income
Net interest income for the 2018 third quarter was $324.8
million, an increase of $16.0 million, or 5.2 percent, versus the
same period last year, primarily due to growth in average
interest-earning assets. Average interest-earning assets of $44.86
billion for the 2018 third quarter represent an increase of $4.56
billion, or 11.3 percent, from the 2017 third quarter. Yield on
interest-earning assets for the 2018 third quarter increased 19
basis points, to 3.85 percent, compared with the 2017 third
quarter.
Average cost of deposits and average cost of funds for the third
quarter of 2018 increased by 33 and 39 basis points, to 0.88
percent and 1.06 percent, respectively versus the comparable period
a year ago.
Net interest margin on a tax-equivalent basis for the 2018 third
quarter was 2.88 percent versus 3.05 percent reported in the same
period a year ago. On a linked quarter basis, net interest margin
on a tax-equivalent basis decreased six basis points. Excluding
loan prepayment penalties in both quarters, linked quarter core net
interest margin on a tax-equivalent basis decreased four basis
points to 2.85 percent.
Provision for Loan Losses
The Bank’s provision for loan losses for the third quarter of
2018 was $7.4 million, compared with $8.0 million for the 2018
second quarter and $14.3 million for the 2017 third quarter.
Net charge-offs for the 2018 third quarter were $11,000, or less
than one basis point of average loans on an annualized basis,
versus $3.0 million, or 0.04 percent, for the 2018 second quarter
and $3.8 million, or 0.05 percent, for the 2017 third quarter.
Non-Interest Income and Non-Interest Expense
Non-interest income for the 2018 third quarter was $4.5 million,
down $3.6 million when compared with $8.1 million reported in the
2017 third quarter. The decrease was primarily due to a $4.0
million increase in tax credit investment amortization. These
investments positively impact our effective tax rate.
Non-interest expense for the third quarter of 2018 was $117.2
million, an increase of $11.6 million, or 11.0 percent, versus
$105.6 million reported in the 2017 third quarter. The increase was
primarily a result of the addition of new private client banking
teams, as well as an increase in costs in our risk management and
compliance related activities.
The Bank’s efficiency ratio was 35.6 percent for the 2018 third
quarter versus 33.3 percent for the comparable period last year and
34.5 percent for the 2018 second quarter.
Loans
Loans, excluding loans held for sale, grew $979.7 million, or
2.9 percent, during the third quarter of 2018 to $35.13 billion,
compared with $34.15 billion at June 30, 2018. At September 30,
2018, loans accounted for 76.6 percent of total assets, versus 75.5
percent at the end of both the 2018 second quarter and the 2017
third quarter. Average loans, excluding loans held for sale,
reached $34.53 billion in the 2018 third quarter, growing $854.4
million, or 2.5 percent, from the 2018 second quarter and $3.84
billion, or 12.5 percent, from the 2017 third quarter. The increase
in loans for the quarter was primarily driven by growth in
specialty finance, commercial real estate and multi-family
loans.
At September 30, 2018, non-accrual loans were $134.2 million,
representing 0.38 percent of total loans and 0.29 percent of total
assets, compared with non-accrual loans of $158.1 million, or 0.46
percent of total loans, at June 30, 2018 and $376.9 million, or
1.21 percent of total loans, at September 30, 2017. Excluding
non-accruing loans secured by taxi medallions of $111.7 million,
non-accrual loans for the remainder of the entire portfolio are
$22.5 million, or six basis points of total loans. At September 30,
2018, the ratio of allowance for loan and lease losses to total
loans was 0.63 percent, versus 0.62 percent for June 30, 2018 and
September 30, 2017. Additionally, the ratio of allowance for loan
and lease losses to non-accrual loans, or the coverage ratio, was
164 percent for the 2018 third quarter versus 135 percent for the
second quarter of 2018 and 51 percent for the 2017 third
quarter.
Conference Call
Signature Bank’s management will host a conference call to
review results of the 2018 third quarter on Thursday, October 18,
2018, at 10:00 AM ET. All participants should dial 866-359-8135 at
least ten minutes prior to the start of the call and reference
conference ID #1869699. International callers should dial
901-300-3484.
To hear a live web simulcast or to listen to the archived web
cast following completion of the call, please visit the Bank’s web
site at www.signatureny.com, click on "Investor Information," then,
under "Company News," select "Conference Calls" to access the link
to the call. To listen to a telephone replay of the conference
call, please dial 800-585-8367 or 404-537-3406 and enter conference
ID #1869699. The replay will be available from approximately 1:00
PM ET on Thursday, October 18, 2018 through 11:59 PM ET on Monday,
October 22, 2018.
About Signature Bank
Signature Bank, member FDIC, is a New York-based full-service
commercial bank with 30 private client offices throughout the New
York metropolitan area, including those in Manhattan, Brooklyn,
Westchester, Long Island, Queens, the Bronx, Staten Island and
Connecticut. In 2018, the Bank expanded its footprint on the West
Coast with the opening of its first full-service private client
banking office in San Francisco. The Bank’s growing network of
private client banking teams serves the needs of privately owned
businesses, their owners and senior managers.
Signature Bank’s specialty finance subsidiary, Signature
Financial, LLC, provides equipment finance and leasing. Signature
Securities Group Corporation, a wholly owned Bank subsidiary, is a
licensed broker-dealer, investment adviser and member FINRA/SIPC,
offering investment, brokerage, asset management and insurance
products and services.
Signature Bank is ranked the 40th largest bank in the U.S. from
nearly 6,000, based on deposits (SNL Financial). The Bank recently
earned several third-party recognitions, including: appeared on
Forbes' Best Banks in America list for the eighth consecutive year
in 2018; named Best Business Bank, Best Private Bank and Best
Attorney Escrow Services provider by the New York Law Journal in
the publication’s annual “Best of” survey for 2018, earning it a
place in the New York Law Journal’s Hall of Fame, awarded to
companies that have ranked in the “Best of” Survey for at least
three of the past four years.
For more information, please visit www.signatureny.com.
This press release and oral statements made from time to time by
our representatives contain "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995
that are subject to risks and uncertainties. You should not place
undue reliance on those statements because they are subject to
numerous risks and uncertainties relating to our operations and
business environment, all of which are difficult to predict and may
be beyond our control. Forward-looking statements include
information concerning our future results, interest rates and the
interest rate environment, loan and deposit growth, loan
performance, operations, new private client teams and other hires,
new office openings and business strategy. These statements often
include words such as "may," "believe," "expect," "anticipate,"
"intend," “potential,” “opportunity,” “could,” “project,” “seek,”
“should,” “will,” “would,” "plan," "estimate" or other similar
expressions. As you consider forward-looking statements, you should
understand that these statements are not guarantees of performance
or results. They involve risks, uncertainties and assumptions that
could cause actual results to differ materially from those in the
forward-looking statements and can change as a result of many
possible events or factors, not all of which are known to us or in
our control. These factors include but are not limited to: (i)
prevailing economic conditions; (ii) changes in interest rates,
loan demand, real estate values and competition, any of which can
materially affect origination levels and gain on sale results in
our business, as well as other aspects of our financial
performance, including earnings on interest-bearing assets; (iii)
the level of defaults, losses and prepayments on loans made by us,
whether held in portfolio or sold in the whole loan secondary
markets, which can materially affect charge-off levels and required
credit loss reserve levels; (iv) changes in monetary and fiscal
policies of the U.S. Government, including policies of the U.S.
Treasury and the Board of Governors of the Federal Reserve System;
(v) changes in the banking and other financial services regulatory
environment and (vi) competition for qualified personnel and
desirable office locations. Although we believe that these
forward-looking statements are based on reasonable assumptions,
beliefs and expectations, if a change occurs or our beliefs,
assumptions and expectations were incorrect, our business,
financial condition, liquidity or results of operations may vary
materially from those expressed in our forward-looking statements.
Additional risks are described in our quarterly and annual reports
filed with the FDIC. You should keep in mind that any
forward-looking statements made by Signature Bank speak only as of
the date on which they were made. New risks and uncertainties come
up from time to time, and we cannot predict these events or how
they may affect the Bank. Signature Bank has no duty to, and does
not intend to, update or revise the forward-looking statements
after the date on which they are made. In light of these risks and
uncertainties, you should keep in mind that any forward-looking
statement made in this release or elsewhere might not reflect
actual results.
SIGNATURE BANK CONSOLIDATED STATEMENTS OF
INCOME (unaudited)
Three months endedSeptember 30,
Nine months endedSeptember 30,
(dollars in thousands, except per share amounts)
2018 2017 2018
2017 INTEREST AND DIVIDEND INCOME
Loans held for sale $ 2,442 911 8,205
3,155 Loans and leases, net 351,743 301,561 1,011,765 875,028
Securities available-for-sale 58,381 49,986 165,073 150,653
Securities held-to-maturity 14,394 14,549 43,437 44,346 Other
investments 7,268 3,662
19,623 10,030
Total interest income 434,228
370,669 1,248,103
1,083,212
INTEREST EXPENSE Deposits 79,200 46,659
199,264 121,772
Federal funds purchased and securities
sold under agreements to repurchase
2,519 1,913 7,909 7,329 Federal Home Loan Bank borrowings 24,068
9,634 66,048 25,407 Subordinated debt 3,645
3,645 10,928
10,890 Total interest expense
109,432 61,851
284,149 165,398 Net interest income
before provision for loan and lease losses 324,796 308,818 963,954
917,814 Provision for loan and lease losses
7,351 14,340 156,083
221,560 Net interest income after
provision for loan and lease losses 317,445
294,478 807,871
696,254
NON-INTEREST INCOME Commissions
3,249 3,036 9,704 9,094 Fees and service charges 6,914 6,112 20,708
18,127 Net gains on sales of securities 12 735 810 3,263 Net gains
on sales of loans 1,931 2,204 5,133 6,657 Other-than-temporary
impairment losses on securities: Total impairment losses on
securities - (361 ) (2 ) (634 ) Portion recognized in other
comprehensive income (before taxes) - -
(14 ) 32 Net impairment
losses on securities recognized in earnings - (361 ) (16 ) (602 )
Tax credit investment amortization (8,369 ) (4,388 ) (21,654 )
(11,523 ) Other Income 806
781 2,675 2,527
Total non-interest income 4,543
8,119 17,360
27,543
NON-INTEREST EXPENSE Salaries and
benefits 76,140 70,112 225,023 204,856 Occupancy and equipment
8,638 8,210 25,172 24,280 Information technology 6,083 5,970 18,661
16,743 FDIC assessment fees 7,070 7,260 21,504 20,242 Professional
fees 3,307 3,181 10,086 9,222 Other general and administrative
15,970 10,895
66,689 49,756 Total
non-interest expense 117,208
105,628 367,135
325,099 Income before income taxes 204,780 196,969 458,096
398,698 Income tax expense 49,334
72,498 113,594
126,354 Net income $ 155,446
124,471 344,502
272,344
PER COMMON SHARE DATA Earnings per
share – basic $ 2.84 2.30 6.32 5.05 Earnings per share – diluted $
2.84 2.29 6.30 5.01 Dividends per common share $ 0.56 - 0.56 -
SIGNATURE BANK CONSOLIDATED STATEMENTS OF
FINANCIAL CONDITION September 30,
December 31, 2018 2017 (dollars
in thousands, except shares and per share amounts)
(unaudited) ASSETS Cash and due
from banks $ 155,791 290,078 Short-term investments
39,613 45,388 Total cash and
cash equivalents 195,404
335,466 Securities available-for-sale 7,220,219 6,953,719
Securities held-to-maturity (fair value
$1,829,462 at September 30, 2018 and $1,983,087 at December 31,
2017)
1,903,343 1,996,376 Federal Home Loan Bank stock 230,677 227,920
Loans held for sale 502,915 432,277 Loans and leases, net
34,906,505 32,416,580 Premises and equipment, net 69,062 61,571
Accrued interest and dividends receivable 133,527 117,070 Other
assets 709,058 576,741
Total assets $ 45,870,710
43,117,720
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits Non-interest-bearing $ 12,158,738 11,353,038
Interest-bearing 23,932,487
22,086,789 Total deposits
36,091,225 33,439,827
Federal funds purchased and securities
sold under agreements to repurchase
575,000 790,000 Federal Home Loan Bank borrowings 4,210,000
4,195,000 Subordinated debt 257,974 257,381 Accrued expenses and
other liabilities 498,514
403,821 Total liabilities 41,632,713
39,086,029 Shareholders’ equity
Preferred stock, par value $.01 per share; 61,000,000 shares
authorized; none issued at September 30, 2018 and December 31, 2017
- - Common stock, par value $.01 per share; 64,000,000 shares
authorized; 55,384,378 shares issued and 55,383,361 outstanding at
September 30, 2018; 54,979,213 shares issued and 54,977,971
outstanding at December 31, 2017 554 550 Additional paid-in capital
1,848,624 1,809,642 Retained earnings 2,601,073 2,290,537 Treasury
stock, 1,017 shares at September 30, 2018 and 1,242 shares at
December 31, 2017 (113 ) (171 ) Accumulated other comprehensive
loss (212,141 ) (68,867 ) Total
shareholders' equity 4,237,997
4,031,691 Total liabilities and shareholders' equity
$ 45,870,710 43,117,720
SIGNATURE BANK FINANCIAL SUMMARY, CAPITAL
RATIOS, ASSET QUALITY (unaudited)
Three months endedSeptember 30,
Nine months endedSeptember 30,
(in thousands, except ratios and per share amounts)
2018 2017 2018
2017 PER COMMON SHARE
Net income - basic $ 2.84 $ 2.30 $ 6.32 $ 5.05 Net
income - diluted $ 2.84 $ 2.29 $ 6.30 $ 5.01 Average shares
outstanding - basic 54,544 54,098 54,406 53,968 Average shares
outstanding - diluted 54,610 54,300 54,646 54,349 Book value $
76.52 $ 71.52 $ 76.52 $ 71.52
SELECTED FINANCIAL DATA
Return on average total assets 1.36 % 1.21 % 1.03 % 0.90 % Return
on average shareholders' equity 14.71 % 12.78 % 11.14 % 9.65 %
Efficiency ratio (1) 35.59 % 33.33 % 37.41 % 34.39 % Yield on
interest-earning assets 3.84 % 3.65 % 3.80 % 3.65 % Yield on
interest-earning assets, tax-equivalent basis (1)(2) 3.85 % 3.66 %
3.81 % 3.66 % Cost of deposits and borrowings 1.06 % 0.67 % 0.95 %
0.61 % Net interest margin 2.87 % 3.04 % 2.93 % 3.09 % Net interest
margin, tax-equivalent basis (2)(3) 2.88 % 3.05 % 2.94 % 3.10 % (1)
See "Non-GAAP Financial Measures" for related calculation.
(2) Based on the 21 percent U.S. federal statutory tax rate
for the 2018 periods presented, and the 35 percent rate for the
2017 periods presented. The tax-equivalent basis is considered a
non-GAAP financial measure and should be considered in addition to,
not as a substitute for or superior to, financial measures
determined in accordance with GAAP. This ratio is a metric used by
management to evaluate the impact of tax-exempt assets on the
Bank's yield on interest-earning assets and net interest margin.
(3) See "Net Interest Margin Analysis" for related
calculation.
September 30,2018
June 30,2018
December 31,2017
September 30,2017
CAPITAL RATIOS
Tangible common equity (4) 9.15 % 9.10 % 9.29 % 9.44
% Tier 1 leverage (5) 9.67 % 9.64 % 9.72 % 9.72 % Common equity
Tier 1 risk-based (5) 12.13 % 12.10 % 11.99 % 11.96 % Tier 1
risk-based (5) 12.13 % 12.10 % 11.99 % 11.96 % Total risk-based (5)
13.44 % 13.42 % 13.32 % 13.32 %
ASSET QUALITY
Non-accrual loans $ 134,197 $ 158,077 $ 326,918 $ 376,867 Allowance
for loan and lease losses $ 220,706 $ 213,367 $ 195,959 $ 193,040
Allowance for loan and lease losses to non-accrual loans 164.46 %
134.98 % 59.94 % 51.22 % Allowance for loan and lease losses to
total loans 0.63 % 0.62 % 0.60 % 0.62 % Non-accrual loans to total
loans 0.38 % 0.46 % 1.00 % 1.21 % Quarterly net charge-offs to
average loans, annualized 0.00 % 0.04 % 0.48 % 0.05 % (4) We
define tangible common equity as the ratio of total tangible common
equity to total tangible assets (the "TCE ratio"). Tangible common
equity is considered to be a non-GAAP financial measure and should
be considered in addition to, not as a substitute for or superior
to, financial measures determined in accordance with GAAP. The TCE
ratio is a metric used by management to evaluate the adequacy of
our capital levels. In addition to tangible common equity,
management uses other metrics, such as Tier 1 capital related
ratios, to evaluate capital levels. See "Non-GAAP Financial
Measures" for related calculation. (5) September 30, 2018
ratios are preliminary.
SIGNATURE BANK
NET INTEREST MARGIN ANALYSIS (unaudited)
Three months ended Three months ended
September 30, 2018 September 30, 2017 (dollars in thousands)
AverageBalance
InterestIncome/Expense
AverageYield/Rate
AverageBalance
InterestIncome/Expense
AverageYield/Rate
INTEREST-EARNING ASSETS
Short-term investments $ 485,749 2,488 2.03 %
470,171 1,455 1.23 % Investment securities 9,526,123 77,555 3.26 %
8,987,262 66,742 2.97 % Commercial loans, mortgages and leases
(1)(2) 34,301,452 350,358 4.05 % 30,419,546 299,974 3.91 %
Residential mortgages and consumer loans 223,929 2,393 4.24 %
265,083 2,649 3.96 % Loans held for sale
320,712 2,442 3.02 %
153,042 911 2.36 % Total
interest-earning assets 44,857,965
435,236 3.85 % 40,295,104
371,731 3.66 %
Non-interest-earning assets 624,664
587,209
Total assets $
45,482,629
40,882,313
INTEREST-BEARING LIABILITIES Interest-bearing deposits NOW
and interest-bearing demand $ 3,654,079 14,122 1.53 % 3,919,003
8,627 0.87 % Money market 18,090,481 56,798 1.25 % 17,260,584
33,523 0.77 % Time deposits 1,765,996 8,280 1.86 % 1,516,042 4,509
1.18 % Non-interest-bearing demand deposits
12,213,759 - -
10,678,696 - -
Total deposits 35,724,315 79,200
0.88 % 33,374,325
46,659 0.55 % Subordinated debt 257,843 3,645
5.65 % 257,050 3,645 5.67 % Other borrowings
4,850,924 26,587 2.17 %
3,085,542 11,547 1.48 %
Total deposits and borrowings 40,833,082
109,432 1.06 %
36,716,917 61,851 0.67 %
Other non-interest-bearing liabilities and
shareholders' equity
4,649,547
4,165,396
Total liabilities and shareholders' equity $
45,482,629
40,882,313
OTHER
DATA Net interest income / interest rate spread (1) 325,804
2.79 % 309,880 2.99 % Tax-equivalent adjustment (1,008 ) (1,062 )
Net interest income, as reported 324,796 308,818 Net
interest margin 2.87 % 3.04 % Tax-equivalent effect 0.01 % 0.01 %
Net interest margin on a tax-equivalent basis (1)(2) 2.88 % 3.05 %
Ratio of average interest-earning assets
to average interest-bearing liabilities
109.86 % 109.75 %
(1)
Presented on a tax-equivalent, non-GAAP
basis for municipal leasing and financing transactions using the
U.S. federal statutory tax rate of 21 percent for the period ended
September 30, 2018 and 35 percent for the period ended September
30, 2017.
(2)
See "Non-GAAP Financial Measures" for
related calculation.
SIGNATURE BANK NET INTEREST MARGIN
ANALYSIS (unaudited) Nine months
ended Nine months ended September 30, 2018 September
30, 2017 (dollars in thousands)
AverageBalance
InterestIncome/Expense
AverageYield/Rate
AverageBalance
InterestIncome/Expense
AverageYield/Rate
INTEREST-EARNING ASSETS
Short-term investments $ 465,298 6,209 1.78 %
471,151 3,598 1.02 % Investment securities 9,359,974 221,924 3.16 %
8,891,079 201,431 3.02 % Commercial loans, mortgages and leases
(1)(2) 33,483,359 1,007,006 4.02 % 29,886,204 869,752 3.89 %
Residential mortgages and consumer loans 234,007 7,255 4.15 %
271,273 7,850 3.87 % Loans held for sale
384,571 8,205 2.85 %
196,842 3,155 2.14 %
Total interest-earning assets 43,927,209
1,250,599 3.81 %
39,716,549 1,085,786 3.66 %
Non-interest-earning assets 593,551
565,087
Total assets $
44,520,760
40,281,636
INTEREST-BEARING LIABILITIES Interest-bearing deposits NOW
and interest-bearing demand $ 3,678,705 36,843 1.34 % 3,835,571
20,502 0.71 % Money market 17,676,403 143,082 1.08 % 17,003,578
89,427 0.70 % Time deposits 1,564,257 19,339 1.65 % 1,473,261
11,843 1.07 % Non-interest-bearing demand deposits
11,845,801 - -
10,555,056 - -
Total deposits 34,765,166
199,264 0.77 % 32,867,466
121,772 0.50 % Subordinated debt
257,647 10,928 5.66 % 256,853 10,890 5.65 % Other borrowings
5,002,029 73,957
1.98 % 3,029,683 32,736
1.44 % Total deposits and borrowings
40,024,842 284,149 0.95 %
36,154,002 165,398 0.61 %
Other non-interest-bearing liabilities and
shareholders' equity
4,495,918
4,127,634
Total liabilities and shareholders' equity $
44,520,760
40,281,636
OTHER
DATA Net interest income / interest rate spread (1) 966,450
2.86 % 920,388 3.05 % Tax-equivalent adjustment (2,742 ) (2,574 )
Net interest income, as reported 963,708 917,814 Net
interest margin 2.93 % 3.09 % Tax-equivalent effect 0.01
0.01 Net interest margin on a tax-equivalent basis (1)(2)
2.94 % 3.10 %
Ratio of average interest-earning assets
to average interest-bearing liabilities
109.75 % 109.85 % (1)
Presented on a tax-equivalent, non-GAAP
basis for municipal leasing and financing transactions using the
U.S. federal statutory tax rate of 21 percent for the period ended
September 30, 2018 and 35 percent for the period ended September
30, 2017.
(2) See "Non-GAAP Financial Measures" for related
calculation.
SIGNATURE BANKNON-GAAP FINANCIAL
MEASURES(unaudited)
Management believes that the presentation of certain non-GAAP
financial measures assist investors when comparing results
period-to-period in a more consistent manner and provides a better
measure of Signature Bank's results. These non-GAAP measures
include the Bank's (i) tangible common equity ratio, (ii)
efficiency ratio, (iii) yield on interest-earning assets,
tax-equivalent basis, and (iv) core net interest margin,
tax-equivalent basis excluding loan prepayment penalty income.
These non-GAAP measures should not be considered a substitute for
GAAP-basis measures and results. We strongly encourage investors to
review our consolidated financial statements in their entirety and
not to rely on any single financial measure. Because non-GAAP
financial measures are not standardized, it may not be possible to
compare these financial measures with other companies’ non-GAAP
financial measures having the same or similar names.
The following table presents the tangible common equity ratio
calculation: (dollars in thousands)
September 30,2018
June 30,2018
December 31,2017
September 30,2017
Consolidated common shareholders' equity $ 4,237,997
4,147,623 4,031,691
3,931,953 Intangible assets 43,372
34,261 28,643
32,741 Consolidated tangible common shareholders'
equity (TCE) $ 4,194,625
4,113,362 4,003,048
3,899,212
Consolidated total assets
$ 45,870,710 45,215,484 43,117,720 41,326,924 Intangible assets
43,372 34,261
28,643 32,741
Consolidated tangible total assets (TTA) $ 45,827,338
45,181,223 43,089,077
41,294,183 Tangible common equity ratio
(TCE/TTA) 9.15 % 9.10 %
9.29 % 9.44 % The following
table presents the efficiency ratio calculation:
Three months endedSeptember 30,
Nine months endedSeptember 30,
(dollars in thousands)
2018
2017 2018 2017
Non-interest expense (NIE) $ 117,208
105,628 367,135
325,099 Net interest income before provision for loan and
lease losses 324,796 308,818 963,954 917,814 Other non-interest
income 4,543 8,119
17,360 27,543 Total
income (TI) $ 329,339 316,937
981,314 945,357
Efficiency ratio (NIE/TI) 35.59 %
33.33 % 37.41 % 34.39 %
The following table reconciles yield on interest-earning
assets to the yield on interest-earning assets on a tax-equivalent
basis:
Three months endedSeptember 30,
Nine months endedSeptember 30,
2018 2017
2018 2017 Interest income (as
reported) $ 434,228 370,669 1,248,103 1,083,212 Tax-equivalent
adjustment 1,008 1,062
2,742 2,574
Interest income, tax-equivalent basis $ 435,236
371,731 1,250,845
1,085,786 Interest-earnings assets
$ 44,857,965 40,295,104
43,927,209 39,716,549
Yield on interest-earning assets 3.84 % 3.65 % 3.80 % 3.65 %
Tax-equivalent effect 0.01 %
0.01 % 0.01 % 0.01 % Yield on
interest-earning assets, tax-equivalent basis
3.85 % 3.66 % 3.81 % 3.66
% The following table reconciles net interest margin
(as reported) to core net interest margin on a tax-equivalent basis
excluding loan prepayment penalty income: Three months ended
September 30,
Nine months ended
September 30,
2018 2017
2018 2017 Net interest margin
(as reported) 2.87 % 3.04 % 2.93 % 3.09 % Tax-equivalent adjustment
0.01 % 0.01 % 0.01 % 0.01 % Margin contribution from loan
prepayment penalty income (0.03 )%
(0.06 )% (0.05 )% (0.06 )% Core
net interest margin, tax-equivalent basis excluding loan prepayment
penalty income 2.85 % 2.99 %
2.89 % 3.04 %
View source
version on businesswire.com: https://www.businesswire.com/news/home/20181018005193/en/
Signature BankInvestor
Contact:Eric R. Howell, 646-822-1402Executive Vice President
– Corporate & Business
Developmentehowell@signatureny.comorMedia
Contact:Susan J. Lewis,
646-822-1825slewis@signatureny.com
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