Bank Announces Inaugural Quarterly Dividend
of $0.56 Per Share
- Net Income for the 2018 Second
Quarter Was $154.6 Million, or $2.83 Diluted Earnings Per Share
Versus $14.0 Million, or $0.26 Diluted Earnings Per Share, Reported
in the 2017 Second Quarter. Excluding Provision Expense and
Write-Downs for the Taxi Medallion Portfolio, 2017 Second Quarter
Net Income Would Have Been $120.2 Million, or $2.21 Diluted
Earnings Per Share
- The Bank Declared a Cash Dividend of
$0.56 Per Share, Payable on or After August 15, 2018 to Common
Shareholders of Record at the Close of Business on August 1,
2018
- Total Deposits in the Second Quarter
Grew $176.0 Million to $34.99 Billion, Affected By a Decrease of
$918.2 Million in Escrow Deposits; Total Deposits Have Grown $1.83
Billion, or 5.5 Percent, Since the End of the 2017 Second Quarter.
Average Deposits Increased $237.0 Million in the 2018 Second
Quarter
- For the 2018 Second Quarter, Loans
Increased $900.3 Million, or 2.7 Percent, to $34.15 Billion. Since
the End of the 2017 Second Quarter, Loans Have Increased 12.4
Percent, or $3.76 Billion
- Non-Accrual Loans were $158.1
Million, or 0.46 Percent of Total Loans, at June 30, 2018, Versus
$168.7 Million, or 0.51 Percent, at the End of the 2018 First
Quarter and $392.9 Million, or 1.29 Percent, at the End of the 2017
Second Quarter. Excluding Taxi Medallion Loans, Which Were All
Placed on Non-Accrual in the 2017 Second Quarter, Non-Accrual Loans
Were $23.4 Million, or Seven Basis Points of Total Loans
- Net Interest Margin on a
Tax-Equivalent Basis Was 2.94 Percent, Compared with 3.01 Percent
for the 2018 First Quarter and 3.11 Percent for the 2017 Second
Quarter. Core Net Interest Margin on a Tax-Equivalent Basis
Excluding Loan Prepayment Penalty Income Declined Six Basis Points
to 2.89 Percent for the 2018 Second Quarter when Compared with the
2018 First Quarter
- Tier 1 Leverage, Common Equity Tier
1 Risk-Based, Tier 1 Risk-Based and Total Risk-Based Capital Ratios
were 9.64 Percent, 12.10 Percent, 12.10 Percent and 13.42 Percent,
Respectively, at June 30, 2018. Signature Bank Remains
Significantly Above FDIC “Well Capitalized” Standards. Tangible
Common Equity Ratio Was 9.10 Percent
- Two Private Client Banking Teams
Joined During the 2018 Second Quarter Bringing the Total Team Hires
to Four in 2018. Another Two Teams Have Joined Thus Far in the
Third Quarter of 2018
Signature Bank (Nasdaq: SBNY), a New York-based full-service
commercial bank, today announced results for its second quarter
ended June 30, 2018. Net income for the 2018 second quarter was
$154.6 million, or $2.83 diluted earnings per share, versus $14.0
million, or $0.26 diluted earnings per share, for the 2017 second
quarter. The increase in net income for the 2018 second quarter,
versus the comparable quarter last year, is due to a decrease of
$179.6 million in the provision for loan losses nearly all
attributable to the New York City taxi medallion portfolio.
Net interest income for the 2018 second quarter reached $321.0
million, up $13.8 million, or 4.5 percent, when compared with the
2017 second quarter. This increase is primarily due to growth in
average interest-earning assets. Total assets reached $45.22
billion at June 30, 2018, an increase of $4.50 billion, or 11.0
percent, from $40.72 billion at June 30, 2017. Average assets for
the 2018 second quarter reached $44.58 billion, an increase of
$4.27 billion, or 10.6 percent, compared with the 2017 second
quarter.
Deposits during the 2018 second quarter rose $176.0 million, or
0.5 percent, to $34.99 billion at June 30, 2018, affected by a
decrease of $918.2 million in escrow deposits. When compared with
deposits at June 30, 2017, overall deposit growth for the last
twelve months was 5.5 percent, or $1.83 billion. Average deposits
for the 2018 second quarter reached $34.46 billion, an increase of
$237.0 million, or 0.7 percent.
“Signature Bank’s solid earnings and growth this quarter,
coupled with both the positive impact of the $50 billion SIFI mark
moving higher and tax reform has enabled us to declare an inaugural
quarterly cash dividend of $0.56 per share to our common
shareholders, representing an annualized dividend of $2.24 per
share. We are proud of our colleagues who work hard for our clients
every day, and we believe those efforts show through in our results
and in returns for our shareholders,” explained Joseph J. DePaolo,
President and Chief Executive Officer.
“Additionally, Signature Bank continues to make the necessary
investments to further our progress. Recent initiatives indicative
of the Bank’s plan for sustained growth include the hiring of
private client banking teams in both New York and San Francisco,
where we are now building a strong Signature Bank presence. We are
strengthening our infrastructure with a new loan system soon to be
in place. We are investing in a new credit approval system, foreign
exchange system and an enhanced payments platform, to which we
previously alluded. All these efforts are augmenting Signature
Bank’s solid foundation and will allow us to further our growth
initiatives,” DePaolo said.
“The recent passing of the Economic Growth, Regulatory Relief
and Consumer Protection Act by Congress bodes well for banks like
ours. Raising the SIFI designation threshold from $50 billion to
$250 billion will foster greater competition by affording banks of
varying size more opportunity within the banking industry,” said
Scott A. Shay, Chairman of the Board.
“In turn, this will prove beneficial for small and medium-sized
businesses as they stand to gain better access to capital. Now,
nimble, medium-sized banks such as Signature Bank will be better
positioned to more effectively compete with the too-big-to-fail
megabanks, and the commercial banking landscape will offer better
options to growing companies thereby further stimulating economic
growth,” Shay concluded.
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 9.64 percent, 12.10 percent, 12.10 percent, and 13.42
percent, respectively, as of June 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 9.10 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.
Net Interest Income
Net interest income for the 2018 second quarter was $321.0
million, an increase of $13.8 million, or 4.5 percent, versus the
same period last year, primarily due to growth in average
interest-earning assets. Average interest-earning assets of $43.89
billion for the 2018 second quarter represent an increase of $4.15
billion, or 10.4 percent, from the 2017 second quarter. Yield on
interest-earning assets for the 2018 second quarter increased 16
basis points to 3.82 percent, compared with the 2017 second
quarter.
Average cost of deposits and average cost of funds for the
second quarter of 2018 increased by 27 basis points and 35 basis
points, to 0.76 percent and 0.96 percent, respectively versus the
2017 second quarter.
Net interest margin on a tax-equivalent basis for the 2018
second quarter was 2.94 percent versus 3.11 percent reported in the
same period a year ago. On a linked quarter basis, net interest
margin on a tax-equivalent basis decreased seven basis points.
Excluding loan prepayment penalties in both quarters, linked
quarter core net interest margin on a tax-equivalent basis
decreased six basis points to 2.89 percent.
Provision for Loan Losses
The Bank’s provision for loan losses for the second quarter of
2018 was $8.0 million, compared with $140.8 million for the 2018
first quarter and $187.6 million for the 2017 second quarter. The
elevated provisions for the 2018 first quarter and the 2017 second
quarter were due to the New York City taxi medallion loan
portfolio.
Net charge-offs for the 2018 second quarter were $3.0 million,
or 0.04 percent of average loans on an annualized basis, versus
$128.3 million, or 1.58 percent, for the 2018 first quarter and
$229.0 million, or 3.04 percent, for the 2017 second quarter. The
elevated level of charge-offs for the 2018 first quarter and the
2017 second quarter were due to the taxi medallion portfolio.
Non-Interest Income and Non-Interest Expense
Non-interest income for the 2018 second quarter was $5.6
million, down $4.0 million when compared with $9.6 million reported
in the 2017 second quarter. The decrease was due to a $3.8 million
increase in tax credit investment amortization. These investments
positively impact our effective tax rate.
Non-interest expense for the second quarter of 2018 was $112.6
million, a decrease of $3.7 million, or 3.2 percent, versus $116.3
million reported in the 2017 second quarter. The decrease was
primarily a result of write-downs of $11.5 million on repossessed
New York City taxi medallion loans that occurred in the 2017 second
quarter. This decrease was partially offset by increases in
salaries and benefits from the addition of new private client
banking teams.
The Bank’s efficiency ratio decreased to 34.5 percent for the
2018 second quarter versus 36.7 percent for the comparable period
last year. The decrease was primarily due to a decrease in other
general and administrative expenses of $13.7 million primarily due
to the absence of write-downs on repossessed New York City taxi
medallion loans.
Loans
Loans, excluding loans held for sale, grew $900.3 million, or
2.7 percent, during the second quarter of 2018 to $34.15 billion,
compared with $33.25 billion at March 31, 2018. At June 30, 2018,
loans accounted for 75.5 percent of total assets, versus 74.8
percent at the end of the 2018 first quarter and 74.6 percent at
the end of 2017 second quarter. Average loans, excluding loans held
for sale, reached $33.67 billion in the 2018 second quarter,
growing $732.7 million, or 2.2 percent, from the 2018 first quarter
and $3.50 billion, or 11.6 percent, from the 2017 second quarter.
The increase in loans for the quarter was primarily driven by
growth in commercial and industrial lending, specialty finance,
multi-family and commercial real estate loans.
At June 30, 2018, non-accrual loans were $158.1 million,
representing 0.46 percent of total loans and 0.35 percent of total
assets, compared with non-accrual loans of $168.7 million, or 0.51
percent of total loans, at March 31, 2018 and $392.9 million, or
1.29 percent of total loans, at June 30, 2017. Excluding
non-accruing loans secured by taxi medallions of $134.6 million,
non-accrual loans for the remainder of the entire portfolio are
$23.4 million, or seven basis points of total loans. At June 30,
2018, the ratio of allowance for loan and lease losses to total
loans was 0.62 percent, versus 0.63 percent at March 31, 2018 and
0.60 percent at June 30, 2017. Additionally, the ratio of allowance
for loan and lease losses to non-accrual loans, or the coverage
ratio, was 135 percent for the 2018 second quarter versus 124
percent for the first quarter of 2018 and 46 percent for the 2017
second quarter.
Conference Call
Signature Bank’s management will host a conference call to
review results of the 2018 second quarter on Thursday, July 19,
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 #6364689. 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 #6364689. The replay will be available from approximately 1:00
PM ET on Thursday, July 19, 2018 through 11:59 PM ET on Monday,
July 23, 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. The Bank’s growing network of private client banking
teams serves the needs of privately owned businesses, their owners
and senior managers.
Signature Bank offers a wide variety of business and personal
banking products and services. Its 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 Private Bank and Best Attorney Escrow
Services provider and among the top three Best Business Banks for
the eighth consecutive year by the New York Law Journal in the
publication’s annual Best of reader survey; and, cited in the top
three of the nation's best private banking services providers in
the 2017 Best of The National Law Journal reader rankings.
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
Six months ended
June 30,
June 30,
(dollars in thousands, except per share amounts)
2018
2017 2018 2017
INTEREST AND DIVIDEND INCOME Loans held for sale $ 3,499 860
5,763 2,244 Loans and leases, net 337,584 291,892 660,021 573,467
Securities available-for-sale 54,428 50,848 106,692 100,667
Securities held-to-maturity 14,510 14,784 29,043 29,797 Other
investments 6,783 3,553
12,355 6,367 Total interest income
416,804 361,937 813,874
712,542
INTEREST EXPENSE Deposits 65,201
40,311 120,063 75,113 Federal funds purchased and securities sold
under agreements to repurchase 3,003 2,025 5,390 5,416 Federal Home
Loan Bank borrowings 23,945 8,756 41,980 15,772 Subordinated debt
3,643 3,605 7,283
7,245 Total interest expense 95,792
54,697 174,716 103,546
Net interest income before provision for loan and lease
losses 321,012 307,240 639,158 608,996 Provision for loan and lease
losses 7,970 187,590
148,732 207,220 Net interest income after
provision for loan and lease losses 313,042
119,650 490,426 401,776
NON-INTEREST INCOME Commissions 3,280 3,051 6,455 6,058 Fees
and service charges 7,152 6,067 13,794 12,015 Net gains on sales of
securities 357 1,679 798 2,529 Net gains on sales of loans 1,183
1,956 3,202 4,453 Other-than-temporary impairment losses on
securities: Total impairment losses on securities - (81 ) (2 ) (273
) Portion recognized in other comprehensive income (before taxes)
- - (14 ) 32 Net
impairment losses on securities recognized in earnings - (81 ) (16
) (241 ) Tax credit investment amortization (7,423 ) (3,672 )
(13,285 ) (7,135 ) Other Income 1,066
550 1,870 1,745 Total
non-interest income 5,615 9,550
12,818 19,424
NON-INTEREST
EXPENSE Salaries and benefits 75,720 68,358 148,883 134,744
Occupancy and equipment 8,335 7,985 16,534 16,070 Information
technology 6,291 5,464 12,578 10,773 FDIC assessment fees 7,447
6,839 14,434 12,981 Professional fees 3,503 2,667 6,778 6,040 Other
general and administrative 11,297
24,960 50,718 38,863 Total
non-interest expense 112,593 116,273
249,925 219,471 Income before
income taxes 206,064 12,927 253,319 201,729 Income tax expense
(benefit) 51,479 (1,030 ) 64,261
53,856 Net income $ 154,585
13,957 189,058 147,873
PER COMMON SHARE DATA Earnings per share – basic $ 2.84 0.26
3.48 2.74 Earnings per share – diluted $ 2.83 0.26 3.47 2.73
SIGNATURE BANK CONSOLIDATED STATEMENTS OF
FINANCIAL CONDITION June 30, December
31, 2018 2017 (dollars in thousands, except
shares and per share amounts)
(unaudited)
ASSETS Cash and due from banks $ 500,617 290,078
Short-term investments 43,302 45,388
Total cash and cash equivalents 543,919
335,466 Securities available-for-sale 7,012,774
6,953,719 Securities held-to-maturity (fair value $1,849,822 at
June 30, 2018 and $1,983,087 at December 31, 2017) 1,904,377
1,996,376 Federal Home Loan Bank stock 257,002 227,920 Loans held
for sale 664,717 432,277 Loans and leases, net 33,934,159
32,416,580 Premises and equipment, net 66,499 61,571 Accrued
interest and dividends receivable 126,272 117,070 Other assets
705,765 576,741 Total assets
$ 45,215,484 43,117,720
LIABILITIES
AND SHAREHOLDERS' EQUITY Deposits Non-interest-bearing $
11,808,240 11,353,038 Interest-bearing 23,185,497
22,086,789 Total deposits
34,993,737 33,439,827 Federal funds purchased
and securities sold under agreements to repurchase 585,000 790,000
Federal Home Loan Bank borrowings 4,795,000 4,195,000 Subordinated
debt 257,774 257,381 Accrued expenses and other liabilities
436,350 403,821 Total liabilities
41,067,861 39,086,029
Shareholders’ equity Preferred stock, par value $.01 per share;
61,000,000 shares authorized; none issued at June 30, 2018 and
December 31, 2017 - - Common stock, par value $.01 per share;
64,000,000 shares authorized; 55,351,482 shares issued and
outstanding at June 30, 2018; 54,979,213 shares issued and
54,977,971 outstanding at December 31, 2017 554 550 Additional
paid-in capital 1,835,574 1,809,642 Retained earnings 2,476,623
2,290,537 Treasury stock, none at June 30, 2018 and 1,242 shares at
December 31, 2017 - (171 ) Accumulated other comprehensive loss
(165,128 ) (68,867 ) Total shareholders'
equity 4,147,623 4,031,691 Total
liabilities and shareholders' equity $ 45,215,484
43,117,720
SIGNATURE BANK
FINANCIAL SUMMARY, CAPITAL RATIOS, ASSET
QUALITY (unaudited)
Three months ended
Six months ended
June 30,
June 30,
(in thousands, except ratios and per share amounts)
2018 2017 2018
2017 PER COMMON SHARE Net income - basic $ 2.84 $
0.26 $ 3.48 $ 2.74 Net income - diluted $ 2.83 $ 0.26 $ 3.47 $ 2.73
Average shares outstanding - basic 54,527 54,083 54,336 53,902
Average shares outstanding - diluted 54,599 54,290 54,558 54,262
Book value $ 74.93 $ 69.07 $ 74.93 $ 69.07
SELECTED
FINANCIAL DATA Return on average total assets 1.39 % 0.14 %
0.86 % 0.75 % Return on average shareholders' equity 15.22 % 1.48 %
9.32 % 8.05 % Efficiency ratio (1) 34.47 % 36.70 % 38.33 % 34.92 %
Yield on interest-earning assets 3.81 % 3.65 % 3.78 % 3.64 % Yield
on interest-earning assets, tax-equivalent basis (1)(2) 3.82 % 3.66
% 3.78 % 3.65 % Cost of deposits and borrowings 0.96 % 0.61 % 0.89
% 0.58 % Net interest margin 2.93 % 3.10 % 2.97 % 3.12 % Net
interest margin, tax-equivalent basis (2)(3) 2.94 % 3.11 % 2.97 %
3.12 % (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.
June 30, March
31, December 31, June 30,
2018 2018 2017
2017 CAPITAL RATIOS Tangible common equity (4) 9.10 %
8.95 % 9.29 % 9.26 % Tier 1 leverage (5) 9.64 % 9.47 % 9.72 % 9.52
% Common equity Tier 1 risk-based (5) 12.10 % 12.09 % 11.99 % 11.68
% Tier 1 risk-based (5) 12.10 % 12.09 % 11.99 % 11.68 % Total
risk-based (5) 13.42 % 13.45 % 13.32 % 13.03 %
ASSET
QUALITY Non-accrual loans $ 158,077 $ 168,713 $ 326,918 $
392,880 Allowance for loan and lease losses $ 213,367 $ 208,385 $
195,959 $ 182,541 Allowance for loan and lease losses to
non-accrual loans 134.98 % 123.51 % 59.94 % 46.46 % Allowance for
loan and lease losses to total loans 0.62 % 0.63 % 0.60 % 0.60 %
Non-accrual loans to total loans 0.46 % 0.51 % 1.00 % 1.29 %
Quarterly net charge-offs to average loans, annualized 0.04 % 1.58
% 0.48 % 3.04 % (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) June 30, 2018 ratios are preliminary.
SIGNATURE BANK
NET INTEREST MARGIN ANALYSIS (unaudited)
Three months ended Three months ended June 30, 2018
June 30, 2017
Interest Average
Interest Average
Average
Income/
Yield/
Average
Income/ Yield/
(dollars in thousands)
Balance
Expense
Rate
Balance
Expense Rate INTEREST-EARNING
ASSETS Short-term investments $ 443,433 1,979 1.79 % 528,169
1,358 1.03 % Investment securities 9,301,617 73,742 3.17 %
8,889,069 67,827 3.05 % Commercial loans, mortgages and leases
(1)(2) 33,437,782 336,005 4.03 % 29,899,100 290,189 3.89 %
Residential mortgages and consumer loans 233,213 2,464 4.24 %
271,284 2,561 3.79 % Loans held for sale 477,407
3,499 2.94 % 159,497 860
2.16 % Total interest-earning assets
43,893,452 417,689 3.82 % 39,747,119
362,795 3.66 % Non-interest-earning assets
688,126 568,253
Total assets $ 44,581,578
40,315,372
INTEREST-BEARING LIABILITIES Interest-bearing deposits NOW
and interest-bearing demand $ 3,539,748 11,892 1.35 % 3,832,360
6,654 0.70 % Money market 17,691,714 47,565 1.08 % 17,062,993
29,735 0.70 % Time deposits 1,392,458 5,744 1.65 % 1,469,043 3,922
1.07 % Non-interest-bearing demand deposits
11,831,308 - - 10,592,678
- - Total deposits 34,455,228
65,201 0.76 % 32,957,074 40,311
0.49 % Subordinated debt 257,645 3,643 5.66 % 256,851
3,605 5.61 % Other borrowings 5,394,121 26,948
2.00 % 2,927,435 10,781
1.48 % Total deposits and borrowings 40,106,994
95,792 0.96 % 36,141,360 54,697
0.61 % Other non-interest-bearing liabilities and
shareholders' equity 4,474,584
4,174,012 Total
liabilities and shareholders' equity $ 44,581,578
40,315,372
OTHER DATA Net interest income / interest rate spread (1)
321,897 2.86 % 308,098 3.05 % Tax-equivalent adjustment (885 ) (858
) Net interest income, as reported 321,012 307,240
Net interest margin 2.93 % 3.10 % Tax-equivalent effect 0.01 % 0.01
% Net interest margin on a tax-equivalent basis (1)(2) 2.94 % 3.11
% Ratio of average interest-earning assets to average
interest-bearing liabilities 109.44 % 109.98 %
(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
June 30, 2018 and 35 percent for the period ended June 30,
2017.
(2)
See "Non-GAAP Financial Measures" for
related calculation.
SIGNATURE
BANK NET INTEREST MARGIN ANALYSIS (unaudited)
Six months ended Six months ended June 30, 2018 June
30, 2017
Interest Average Interest
Average Average Income/ Yield/
Average Income/ Yield/
(dollars in thousands)
Balance Expense Rate
Balance Expense Rate
INTEREST-EARNING ASSETS Short-term investments $ 454,902
3,721 1.65 % 471,649 2,142 0.92 % Investment securities 9,275,523
144,369 3.11 % 8,842,191 134,689 3.05 % Commercial loans, mortgages
and leases (1)(2) 33,067,533 656,893 4.01 % 29,615,113 569,780 3.88
% Residential mortgages and consumer loans 239,130 4,862 4.10 %
274,420 5,201 3.82 % Loans held for sale 417,029
5,763 2.79 % 219,105 2,244
2.07 % Total interest-earning assets
43,454,117 815,608 3.78 % 39,422,478
714,056 3.65 % Non-interest-earning assets
675,674 553,844
Total assets $ 44,129,791
39,976,322
INTEREST-BEARING LIABILITIES Interest-bearing deposits NOW
and interest-bearing demand $ 3,691,222 22,721 1.24 % 3,793,164
11,875 0.63 % Money market 17,465,933 86,283 1.00 % 16,872,945
55,904 0.67 % Time deposits 1,461,716 11,059 1.53 % 1,451,516 7,334
1.02 % Non-interest-bearing demand deposits
11,718,727 - - 10,492,211
- - Total deposits 34,337,598
120,063 0.71 % 32,609,836 75,113
0.46 % Subordinated debt 257,547 7,283 5.66 % 256,754
7,245 5.64 % Other borrowings 5,078,834 47,370
1.88 % 3,001,291 21,188
1.42 % Total deposits and borrowings 39,673,979
174,716 0.89 % 35,867,881
103,546 0.58 % Other non-interest-bearing liabilities
and shareholders' equity 4,455,812
4,108,441 Total
liabilities and shareholders' equity $ 44,129,791
39,976,322
OTHER DATA Net interest income / interest rate spread (1)
640,892 2.89 % 610,510 3.07 % Tax-equivalent adjustment (1,734 )
(1,514 ) Net interest income, as reported 639,158 608,996
Net interest margin 2.97 % 3.12 % Tax-equivalent effect -
- Net interest margin on a tax-equivalent basis
(1)(2) 2.97 % 3.12 % Ratio of average interest-earning assets to
average interest-bearing liabilities 109.53 % 109.91 %
(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
June 30, 2018 and 35 percent for the period ended June 30,
2017.
(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 assists 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
Six months ended
June 30,
June 30,
(dollars in thousands, except per share
amounts)
2018 2017 2018
2017 Net income (as reported) $ 154,585 13,957
189,058 147,873 Write-downs and fair value (FV) adjustments
for the taxi medallion portfolio (848 ) 179,309 153,602 193,251 Tax
effect, taxi medallion portfolio write-downs and FV adjustments
216 (73,034 ) (38,975 )
(94,088 ) Total net income (adjusted) $ 153,953
120,232 303,685 247,036
Diluted earnings per share (as reported) 2.83 0.26 3.47 2.73
Write-downs and FV adjustments for the taxi medallion portfolio
(0.02 ) 3.30 2.82 3.56 Tax effect, taxi medallion portfolio
write-downs and FV adjustments 0.01
(1.35 ) (0.72 ) (1.74 )
Diluted earnings per share - excluding
write-downs and FV adjustments for the taximedallion portfolio
(adjusted)
$ 2.82 2.21 5.57
4.55
The following table presents the tangible
common equity ratio calculation:
June 30,
March 31, December 31, June 30,
(dollars in thousands)
2018 2018 2017
2017 Consolidated common shareholders' equity $ 4,147,623
4,001,172 4,031,691 3,797,246 Intangible assets
34,261 27,687 28,643
27,374 Consolidated tangible common shareholders' equity
(TCE) $ 4,113,362 3,973,485
4,003,048 3,769,872
Consolidated total assets
$ 45,215,484 44,435,634 43,117,720 40,718,610 Intangible assets
34,261 27,687 28,643
27,374 Consolidated tangible total assets
(TTA) $ 45,181,223 44,407,947
43,089,077 40,691,236 Tangible common equity
ratio (TCE/TTA) 9.10 % 8.95 % 9.29 %
9.26 %
The following table presents the
efficiency ratio calculation:
Three months endedJune 30,
Six months endedJune 30,
(dollars in thousands)
2018 2017
2018 2017 Non-interest expense (NIE) $
112,593 116,273 249,925
219,471 Net interest income before provision for loan and
lease losses 321,012 307,240 639,158 608,996 Other non-interest
income 5,615 9,550 12,818
19,424 Total income (TI) $ 326,627
316,790 651,976 628,420
Efficiency ratio (NIE/TI) 34.47 % 36.70
% 38.33 % 34.92 %
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 endedJune 30,
Six months endedJune 30,
2018 2017 2018
2017 Interest income (as reported) $ 416,804
361,937 813,874 712,542 Tax-equivalent adjustment
885 858 1,734
1,514 Interest income, tax-equivalent basis $ 417,689
362,795 815,608 714,056
Interest-earnings assets $ 43,893,452
39,747,119 43,454,117 39,422,478
Yield on interest-earning assets 3.81 % 3.65 % 3.78 % 3.64 %
Tax-equivalent effect 0.01 % 0.01 %
0.00 % 0.01 % Yield on interest-earning assets,
tax-equivalent basis 3.82 % 3.66 % 3.78
% 3.65 %
The following table reconciles net
interest margin (as reported) to core net interest margin on a
tax-equivalent basis excluding loanprepayment penalty income:
Three months endedJune 30,
Six months endedJune 30,
2018 2017 2018
2017 Net interest margin (as reported) 2.93 %
3.10 % 2.97 % 3.12 % Tax-equivalent adjustment 0.01 % 0.01 %
- - Margin contribution from loan prepayment penalty income
(0.05)
%
(0.07)
%
(0.06)
%
(0.06)
%
Core net interest margin, tax-equivalent basis excluding loan
prepayment penalty income 2.89 % 3.04 % 2.91 %
3.06 %
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180719005097/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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