- 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
Signature Bank (Nasdaq: SBNY), a New York-based full service
commercial bank, today announced results for its first quarter
ended March 31, 2019.
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, for the 2018 first quarter. The
increase in net income for the 2019 first quarter, versus the
comparable quarter last year, is due to a decrease of $134.5
million in the provision for loan losses, nearly all attributable
to the New York City taxi medallion portfolio. Excluding
write-downs for the taxi medallion portfolio, net income for the
2018 first quarter would have been $146.8 million, or $2.69 diluted
earnings per share. Additionally, prepayment penalty income for the
2019 first quarter was $2.4 million, down $4.3 million from the
2018 first quarter.
Net interest income for the 2019 first quarter reached $319.0
million, up $0.9 million, or 0.3 percent, when compared with the
2018 first quarter. This increase is primarily due to growth in
average interest-earning assets. Total assets reached $48.55
billion at March 31, 2019, an increase of $4.11 billion, or 9.3
percent, from $44.44 billion at March 31, 2018. Average assets for
the 2019 first quarter reached $47.86 billion, an increase of $4.19
billion, or 9.6 percent, compared with the 2018 first quarter.
Deposits for the 2019 first quarter rose $243.8 million to
$36.62 billion at March 31, 2019, affected by a decrease in escrow
deposits of $659.8 million. When compared with deposits at March
31, 2018, overall deposit growth for the last twelve months was 5.2
percent, or $1.80 billion. Average deposits for the 2019 first
quarter reached $36.47 billion, an increase of $210.0 million.
“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.
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 9.68 percent, 11.97 percent, 11.97 percent, and 13.24
percent, respectively, as of March 31, 2019. 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 9.29 percent. The Bank defines tangible
common equity ratio as the ratio of tangible common equity to
adjusted tangible assets and calculates this ratio by dividing
total consolidated common shareholders’ equity by consolidated
total assets.
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. In the first quarter of 2019, the Bank
paid a cash dividend of $0.56 per share to common stockholders of
record at the close of business on February 1, 2019. Additionally,
during the 2019 first quarter, the Bank repurchased 173,193 shares
of common stock for a total of $22.9 million.
Net Interest Income
Net interest income for the 2019 first quarter was $319.0
million, an increase of $0.9 million, or 0.3 percent, versus the
same period last year, primarily due to growth in average
interest-earning assets. Average interest-earning assets of $47.17
billion for the 2019 first quarter represent an increase of $4.16
billion, or 9.7 percent, from the 2018 first quarter. Yield on
interest-earning assets for the 2019 first quarter increased 26
basis points to 4.01 percent, compared to the first quarter of last
year.
Average cost of deposits and average cost of funds for the first
quarter of 2019 increased by 51 and 57 basis points, to 1.16
percent and 1.39 percent, respectively, versus the comparable
period a year ago.
Net interest margin on a tax-equivalent basis for the 2019 first
quarter was 2.75 percent versus 3.01 percent reported in the 2018
first quarter and 2.90 percent in the 2018 fourth quarter.
Excluding loan prepayment penalties in both quarters, linked
quarter core net interest margin on a tax-equivalent basis
decreased seven basis points to 2.73 percent.
Provision for Loan Losses
The Bank’s provision for loan losses for the first quarter of
2019 was $6.3 million, compared with $6.4 million for the 2018
fourth quarter and $140.8 million for the 2018 first quarter. The
elevated provision for the 2018 first quarter was nearly all due to
the New York City taxi medallion loan portfolio.
Net charge offs for the 2019 first quarter were $879,000, or
0.01 percent of average loans, on an annualized basis, versus net
recoveries of $2.9 million, or 0.03 percent, for the 2018 fourth
quarter and net charge offs of $128.3 million, or 1.58 percent, for
the 2018 first quarter. The 2018 first quarter net charge-offs
included $128.6 million for taxi medallion loans.
Non-Interest Income and Non-Interest Expense
Non-interest income for the 2019 first quarter was $6.1 million,
down $1.1 million when compared with $7.2 million reported in the
2018 first quarter. The decrease was driven by an increase in tax
credit investment amortization. These investments positively impact
our effective tax rate.
Non-interest expense for the first quarter of 2019 was $125.1
million, a decrease of $12.2 million, or 8.9 percent, versus $137.3
million reported in the 2018 first quarter. The decrease was
primarily due to the absence of write-downs of $24.0 million on
repossessed New York City taxi medallions that were taken in the
first quarter of 2018, partially offset by the addition of new
private client banking teams.
The Bank’s efficiency ratio improved to 38.5 percent for the
2019 first quarter versus 42.2 percent for the comparable period
last year. The gain was primarily due to a decrease in other
general and administrative expenses of $19.9 million primarily due
to the aforementioned write-down on the repossessed medallions that
was taken in the first quarter of 2018.
Loans
Loans, excluding loans held for sale, grew $1.04 billion, or 2.9
percent, during the first quarter of 2019 to $37.47 billion,
compared with $36.42 billion at December 31, 2018. At March 31,
2019, loans accounted for 77.2 percent of total assets, versus 76.9
percent at the end of the 2018 fourth quarter and 74.8 percent at
the end of 2018 first quarter. Average loans, excluding loans held
for sale, reached $36.87 billion in the 2019 first quarter, growing
$1.22 billion, or 3.4 percent, from the 2018 fourth quarter and
$3.93 billion, or 11.9 percent, from the 2018 first quarter. For
the second consecutive quarter, the increase in loans for the first
quarter was primarily driven by growth in commercial and industrial
loans.
At March 31, 2019, non-accrual loans were $94.7 million,
representing 0.25 percent of total loans and 0.20 percent of total
assets, compared with non-accrual loans of $108.6 million, or 0.30
percent of total loans, at December 31, 2018 and $168.7 million, or
0.51 percent of total loans, at March 31, 2018. Excluding
non-accruing loans secured by taxi medallions of $76.1 million,
non-accrual loans for the remainder of the portfolio are $18.6
million, or five basis points of total loans. The ratio of
allowance for loan and lease losses to total loans at March 31,
2019 was 0.63 percent, unchanged from December 31, 2018 and March
31, 2018. Additionally, the ratio of allowance for loan and lease
losses to non-accrual loans, or the coverage ratio, was 249 percent
for the 2019 first quarter versus 212 percent for the fourth
quarter of 2018 and 124 percent for the 2018 first quarter.
Conference Call
Signature Bank’s management will host a conference call to
review results of the 2019 first quarter on Wednesday, April 17,
2019, 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 #2615648. 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 #2615648. The replay will be available from approximately 1:00
PM ET on Wednesday, April 17, 2019 through 11:59 PM ET on Sunday,
April 21, 2019.
About Signature Bank
Signature Bank, member FDIC, is a New York-based full-service
commercial bank with 31 private client offices throughout
the New York metropolitan area
and Connecticut as well as 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 recently introduced its revolutionary,
blockchain-based digital payments platform, Signet™, enabling
real-time payments for its commercial clients. The Signet Platform
allows the Bank’s commercial clients to make payments in U.S.
dollars, 24/7/365, safely and securely, without transaction
fees. Signature Bank is the first FDIC-insured bank
to launch a blockchain-based digital payments platform, and Signet
is the first such platform to be approved for use by the NYS
Department of Financial Services
Signature Bank is one of the top 40 largest banks in the U.S.,
based on deposits (S&P Global Market Intelligence). The Bank
recently earned several third-party recognitions, including:
appeared on Forbes' Best Banks in America list for the
ninth consecutive year in 2019; and, 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). The Bank also ranked second
nationally in the Best Business Bank, Best Private
Bank and Best Attorney Escrow Services categories of
the National Law Journal’s 2019 “Best of” survey.
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 ended March 31, (dollars in thousands, except per
share amounts)
2019 2018
INTEREST AND DIVIDEND INCOME Loans held for sale $ 1,724
2,264 Loans and leases, net 381,361 322,438 Securities
available-for-sale 59,101 52,264 Securities held-to-maturity 15,613
14,533 Other investments 7,766
5,573 Total interest income
465,565 397,072
INTEREST
EXPENSE Deposits 104,047 54,863 Federal funds purchased and
securities sold under agreements to repurchase 5,829 2,388 Federal
Home Loan Bank borrowings 33,056 18,034 Subordinated debt
3,641 3,641 Total
interest expense 146,573
78,926 Net interest income before provision for loan and
lease losses 318,992 318,146 Provision for loan and lease losses
6,309 140,762 Net
interest income after provision for loan and lease losses
312,683 177,384
NON-INTEREST INCOME Commissions 3,640 3,175 Fees and service
charges 8,028 6,642 Net gains on sales of securities 553 441 Net
gains on sales of loans 1,995 2,018 Other-than-temporary impairment
losses on securities: Total impairment losses on securities - (2 )
Portion recognized in other comprehensive income (before taxes)
- (14 ) Net impairment losses on
securities recognized in earnings - (16 ) Tax credit investment
amortization (9,153 ) (5,863 ) Other Income
1,025 805 Total non-interest
income 6,088 7,202
NON-INTEREST EXPENSE Salaries and benefits 79,869 73,163
Occupancy and equipment 11,098 8,199 Information technology 8,486
6,287 FDIC assessment fees 3,184 6,988 Professional fees 2,888
3,276 Other general and administrative 19,539
39,419 Total non-interest
expense 125,064 137,332
Income before income taxes 193,707 47,254 Income tax expense
49,642 12,782 Net
income $ 144,065 34,472
PER COMMON SHARE DATA Earnings per share – basic $ 2.65 0.64
Earnings per share – diluted $ 2.65 0.63 Dividends per common share
$ 0.56 -
SIGNATURE BANK
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
March 31, December 31, 2019 2018
(dollars in thousands, except shares and per share amounts)
(unaudited) ASSETS Cash
and due from banks $ 404,715 269,204 Short-term investments
74,673 48,051
Total cash and cash equivalents 479,388
317,255 Securities available-for-sale
7,280,431 7,301,604 Securities held-to-maturity (fair value
$2,017,390 at March 31, 2019 and $1,845,198 at December 31, 2018)
2,035,026 1,883,533 Federal Home Loan Bank stock 274,208 264,877
Loans held for sale 113,349 485,305 Loans and leases, net
37,230,195 36,193,122 Premises and equipment, net 54,085 59,051
Operating lease right-of-use assets (1) 228,463 - Accrued interest
and dividends receivable 146,217 141,829 Other assets
705,092 718,240 Total
assets $ 48,546,454 47,364,816
LIABILITIES AND SHAREHOLDERS' EQUITY Deposits
Non-interest-bearing $ 11,719,641 12,016,197 Interest-bearing
24,902,946 24,362,576
Total deposits 36,622,587
36,378,773 Federal funds purchased and
securities sold under agreements to repurchase 1,203,000 820,000
Federal Home Loan Bank borrowings 5,177,364 4,970,000 Subordinated
debt 258,370 258,174 Operating lease liabilities (1) 244,432 -
Accrued expenses and other liabilities 488,658
530,729 Total liabilities
43,994,411 42,957,676
Shareholders’ equity Preferred stock, par value $.01 per share;
61,000,000 shares authorized; none issued at March 31, 2019 and
December 31, 2018 - - Common stock, par value $.01 per share;
64,000,000 shares authorized; 55,437,020 shares issued and
55,275,158 outstanding at March 31, 2019; 55,405,531 shares issued
and 55,039,433 outstanding at December 31, 2018 554 554 Additional
paid-in capital 1,833,105 1,862,896 Retained earnings 2,843,982
2,730,899 Treasury stock, 161,862 shares at March 31, 2019 and
366,098 shares
at December 31, 2018
(21,488 ) (42,680 ) Accumulated other comprehensive loss
(104,110 ) (144,529 ) Total
shareholders' equity 4,552,043
4,407,140 Total liabilities and shareholders'
equity $ 48,546,454 47,364,816
(1) Effective January 1, 2019, we adopted ASU 2016-02,
Leases (Topic 842)and elected not to restate comparative prior
periods, a transition option provided by ASU 2018-11, Leases-
Targeted Improvements (Topic 842).
SIGNATURE BANK FINANCIAL SUMMARY,
CAPITAL RATIOS, ASSET QUALITY (unaudited) Three
months ended (in thousands, except ratios and per share amounts)
March 31,
2019
December 31,
2018
March 31,
2018
PER COMMON SHARE Net income - basic $ 2.65 $ 2.94 $ 0.64 Net
income - diluted $ 2.65 $ 2.94 $ 0.63 Average shares outstanding -
basic 54,165 54,510 54,143 Average shares outstanding - diluted
54,269 54,631 54,395 Book value $ 82.35 $ 80.07 $ 72.29
SELECTED FINANCIAL DATA Return on average total assets 1.22%
1.37% 0.32% Return on average shareholders' equity 13.04% 14.76%
3.48% Efficiency ratio (1) 38.47% 34.94% 42.21% Yield on
interest-earning assets 4.00% 3.98% 3.74% Yield on interest-earning
assets, tax-equivalent basis (1)(2) 4.01% 3.99% 3.75% Cost of
deposits and borrowings 1.39% 1.19% 0.82% Net interest margin 2.74%
2.89% 3.00% Net interest margin, tax-equivalent basis (2)(3) 2.75%
2.90% 3.01% (1) See "Non-GAAP Financial Measures" for
related calculation. (2) Based on the 21 percent U.S. federal
statutory tax rate for the 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.
March 31,
2019
December 31,
2018
March 31,
2018
CAPITAL RATIOS Tangible common equity (4) 9.29% 9.21% 8.95%
Tier 1 leverage (5) 9.68% 9.70% 9.47% Common equity Tier 1
risk-based (5) 11.97% 12.11% 12.09% Tier 1 risk-based (5) 11.97%
12.11% 12.09% Total risk-based (5) 13.24% 13.41% 13.45%
ASSET QUALITY Non-accrual loans $ 94,670 $ 108,654 $ 168,713
Allowance for loan and lease losses $ 235,435 $ 230,005 $ 208,385
Allowance for loan and lease losses to non-accrual loans 248.69%
211.69% 123.51% Allowance for loan and lease losses to total loans
0.63% 0.63% 0.63% Non-accrual loans to total loans 0.25% 0.30%
0.51% Quarterly net charge-offs (recoveries) to average loans,
annualized 0.01% (0.03)% 1.58% (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) March 31, 2019 ratios are
preliminary.
SIGNATURE BANK NET INTEREST MARGIN ANALYSIS
(unaudited) Three months ended Three months ended
March 31, 2019 March 31, 2018 (dollars in thousands)
AverageBalance
InterestIncome/Expense
AverageYield/Rate
AverageBalance
InterestIncome/Expense
AverageYield/Rate
INTEREST-EARNING ASSETS Short-term investments $ 465,077
2,915 2.54 % 466,499 1,743 1.52 % Investment securities 9,605,682
79,565 3.31 % 9,249,140 70,627 3.05 % Commercial loans, mortgages
and leases (1)(2) 36,650,950 380,045 4.21 % 32,693,171 320,888 3.98
% Residential mortgages and consumer loans 218,054 2,476 4.61 %
245,113 2,398 3.97 % Loans held for sale
226,546 1,724 3.09 %
355,981 2,264
2.58 % Total interest-earning assets
47,166,309 466,725 4.01 %
43,009,904 397,920
3.75 % Non-interest-earning assets
693,039
663,079
Total assets $ 47,859,348
43,672,983
INTEREST-BEARING LIABILITIES
Interest-bearing deposits NOW and interest-bearing demand $
4,215,955 21,289 2.05 % 3,844,379 10,829 1.14 % Money market
18,474,137 70,361 1.54 % 17,237,642 38,719 0.91 % Time deposits
2,191,609 12,397 2.29 % 1,531,743 5,315 1.41 % Non-interest-bearing
demand deposits 11,593,215 -
-
11,604,894 - - Total
deposits 36,474,916 104,047
1.16 % 34,218,658
54,863 0.65 % Subordinated debt
258,242 3,641 5.64 % 257,448 3,641 5.66 % Other borrowings
6,106,241 38,885
2.58 % 4,760,044 20,422
1.74 % Total deposits and borrowings
42,839,399 146,573
1.39 % 39,236,150 78,926
0.82 % Other non-interest-bearing liabilities
and shareholders' equity 5,019,949
4,436,833 Total
liabilities and shareholders' equity $ 47,859,348
43,672,983
OTHER DATA Net interest income / interest rate spread (1)
320,152 2.62 % 318,994 2.93 % Tax-equivalent adjustment (1,160 )
(848 ) Net interest income, as reported 318,992 318,146
Net interest margin 2.74 % 3.00 % Tax-equivalent effect 0.01
% 0.01 % Net interest margin on a tax-equivalent basis (1)(2) 2.75
% 3.01 % Ratio of average interest-earning assets to average
interest-bearing liabilities 110.10 % 109.62 %
(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 periods
presented.
(2)
See "Non-GAAP Financial Measures" for
related calculation.
SIGNATURE BANK NON-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) Net income
and diluted earnings per share (as reported) to net income and
diluted earnings per share excluding write-downs and fair value
adjustments for the taxi medallion portfolio, (ii) tangible common
equity ratio, (iii) efficiency ratio, (iv) yield on
interest-earning assets, tax-equivalent basis, and (v) 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 change in
net income excluding write-downs and fair value adjustments for the
taxi medallion portfolio:
Three months ended March 31,
(dollars in thousands, except per share amounts)
2019 2018 Net income (as reported) $
144,065 34,472 Write-downs and fair value (FV)
adjustments for the taxi medallion portfolio (755 ) 154,032 Tax
effect, taxi medallion portfolio write-downs and FV adjustments
193 (41,650 ) Total net
income (adjusted) $ 143,503
146,854 Diluted earnings per share (as reported) $
2.65 0.63 Write-downs and FV adjustments for the taxi medallion
portfolio (0.01 ) 2.83 Tax effect, taxi medallion portfolio
write-downs and FV adjustments 0.00
(0.77 ) Diluted earnings per share - excluding
write-downs and FV adjustments for the taxi medallion portfolio
(adjusted) $ 2.64 2.69
The following table presents the tangible
common equity ratio calculation: Three months ended March
31, (dollars in thousands)
2019
2018 Consolidated common shareholders' equity $ 4,552,043
4,001,172 Intangible assets 46,716
27,687 Consolidated tangible common
shareholders' equity (TCE) $ 4,505,327
3,973,485
Consolidated total assets $ 48,546,454 44,435,634 Intangible
assets 46,716 27,687
Consolidated tangible total assets (TTA) $
48,499,738 44,407,947 Tangible common
equity ratio (TCE/TTA) 9.29 %
8.95 % The following table presents the efficiency ratio
calculation: Three months ended March 31, (dollars in
thousands)
2019 2018
Non-interest expense (NIE) $ 125,064
137,332 Net interest income before provision for loan
and lease losses 318,992 318,146 Other non-interest income
6,088 7,202 Total income
(TI) $ 325,080 325,348
Efficiency ratio (NIE/TI) 38.47 %
42.21 %
SIGNATURE BANK NON-GAAP FINANCIAL MEASURES
(unaudited) The following table reconciles
yield on interest-earning assets to the yield on interest-earning
assets on a tax-equivalent basis: Three months ended March 31,
(dollars in thousands)
2019
2018 Interest income (as reported) $ 465,565 397,072
Tax-equivalent adjustment 1,160
848 Interest income, tax-equivalent basis
$ 466,725 397,920
Interest-earnings assets $ 47,166,309
43,009,904 Yield on interest-earning
assets 4.00 % 3.74 % Tax-equivalent effect
0.01 % 0.01 % Yield on interest-earning
assets, tax-equivalent basis 4.01 %
3.75 % 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 March 31,
2019 2018 Net interest margin (as
reported) 2.74 % 3.00 % Tax-equivalent adjustment 0.01 % 0.01 %
Margin contribution from loan prepayment penalty income
(0.02 )% (0.06 )% Core net
interest margin, tax-equivalent basis excluding loan prepayment
penalty income 2.73 %
2.95 %
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190417005163/en/
Investor Contact:Eric R. Howell,
Executive Vice President – Corporate & Business
Development646-822-1402,ehowell@signatureny.comMedia
Contact:Susan J. Lewis, 646-822-1825,
slewis@signatureny.com
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