Signature Bank Reports 2020 Fourth Quarter and Year-end Results
Signature Bank (SBNY) reported a strong Q4 2020 with net income rising to $173 million, or $3.26 per share, up from $147.6 million, or $2.76 per share in Q4 2019. This growth is attributed to a $56.7 million increase in net interest income, totaling $395 million, and significant deposit growth of $8.98 billion, or 16.5%. Despite a provision for credit losses rising by $25.84 million due to COVID-19, the bank's pre-tax, pre-provision earnings reached $261.5 million, a 20.9% increase year-over-year. Total assets grew by 46% to nearly $74 billion.
- Net income increased by 17.2% to $173 million year-over-year.
- Net interest income rose by 16.8% to $395 million in Q4 2020.
- Deposits increased by 16.5%, totaling $63.32 billion.
- Total assets grew by 46% to $73.89 billion compared to Q4 2019.
- Pre-tax, pre-provision earnings improved by 20.9% to $261.5 million.
- Provision for credit losses increased by 100% to $35.6 million due to COVID-19 impacts.
- Loan-to-deposit ratio decreased to 77.1%, indicating potential liquidity concerns.
Signature Bank (Nasdaq: SBNY), a New York-based full-service commercial bank, today announced results for its fourth quarter ended December 31, 2020.
Net income for the 2020 fourth quarter was
Net interest income for the 2020 fourth quarter rose
Deposits for the 2020 fourth quarter increased
"2020 was a year where many worldwide suffered immensely due to the effects of the COVID-19 pandemic. With the distribution of the vaccines, we hope the world will be a safer place soon and look forward to 2021 being a year where we return to normal and all whose lives have been horribly affected can heal. During these difficult times, Signature Bank focused on providing assistance for colleagues and clients alike through several beneficial programs, including PPP, to help them through their struggles. 2020 also marked the time where recent initiatives put forth by the Bank developed into full-fledged businesses as the pandemic did not slow their progress. These new businesses, coupled with efforts emanating from our existing franchise, flourished throughout the year. The Bank saw remarkable record deposit growth and significant record loan growth leading to nearly
“Signature Bank enters 2021 as a stronger financial institution through the bolstering of our capital position in excess of
Scott A. Shay, Chairman of the Board, added: “2020 was a dramatically difficult year from many perspectives. At Signature Bank, sadly, we saw some of our colleagues lose loved ones. The real human toll of COVID-19 was central to many of our activities in 2020 in relation to our colleagues and clients. We are ever mindful that our real assets are those with whom we work every day. Concurrently, during 2020, Signature Bank’s amazing organic growth was widespread across all areas of focus including the aforementioned new businesses. To support our growth, the Bank raised more than
“Additionally, part of being a safe bank amid this landscape is paying close attention to technological advances. We have been at the forefront, as evidenced by the first to launch a blockchain-based payments platform, and we intend to keep it that way. Hence the reason we invested in developing Signet before most investors -- and even our clients -- recognized the emergence of and massive changes in the digital payments economy.”
“As the rapid and safe deployment of vaccines penetrates the nation, we look forward to an end to the pandemic, and the new opportunities that lie ahead,” Shay concluded.
Capital
In the 2020 fourth quarter, the Bank issued
The Bank declared a cash dividend of
Net Interest Income
Net interest income for the 2020 fourth quarter was
Average cost of deposits and average cost of funds for the fourth quarter of 2020 decreased 66 and 69 basis points, to 0.42 percent and 0.57 percent, respectively, versus the comparable period a year ago.
Net interest margin on a tax-equivalent basis for the 2020 fourth quarter was 2.23 percent versus 2.72 percent reported in the 2019 fourth quarter and 2.55 percent in the 2020 third quarter. Excluding loan prepayment penalties in both quarters, linked quarter core net interest margin on a tax-equivalent basis decreased 31 basis points to 2.21 percent.
Provision for Credit Losses
The Bank’s provision for credit losses for the fourth quarter of 2020 was
Net charge-offs for the 2020 fourth quarter were
Non-Interest Income and Non-Interest Expense
Non-interest income for the 2020 fourth quarter was
Non-interest expense for the fourth quarter of 2020 was
The Bank’s efficiency ratio improved to 37.6 percent for the 2020 fourth quarter compared with 39.0 percent for the same period a year ago, and 38.9 percent for the third quarter of 2020.
Loans
Loans, excluding loans held for sale, expanded
At December 31, 2020, non-accrual loans were
COVID-19 Related Loan Modifications
As of December 31, 2020, total principal and interest deferrals significantly decreased to
|
|
Principal and Interest Deferrals |
|||||
(dollars in millions) |
Portfolio Balance
|
Deferral Balance |
%
|
||||
Multi-family |
$ |
15,173 |
615 |
4.1 |
% |
||
Retail |
5,637 |
369 |
6.5 |
% |
|||
Office |
3,930 |
150 |
3.8 |
% |
|||
Acquisition, Development, and Construction (ADC) |
1,367 |
12 |
0.9 |
% |
|||
Industrial |
574 |
3 |
0.5 |
% |
|||
Hotel |
77 |
— |
0.0 |
% |
|||
Land |
38 |
— |
0.0 |
% |
|||
Other |
297 |
10 |
3.4 |
% |
|||
Total Commercial Real Estate |
27,093 |
1,159 |
4.3 |
% |
|||
Fund Banking and Venture Banking |
11,416 |
— |
0.0 |
% |
|||
Asset Based Lending |
319 |
— |
0.0 |
% |
|||
Signature Financial |
5,046 |
35 |
0.7 |
% |
|||
Traditional Commercial & Industrial |
2,537 |
80 |
3.2 |
% |
|||
Total Commercial & Industrial |
19,318 |
115 |
0.6 |
% |
|||
PPP Loans |
1,874 |
— |
0.0 |
% |
|||
Consumer and Residential |
584 |
37 |
6.3 |
% |
|||
Premium, deferred fees, and costs |
(36) |
— |
0.0 |
% |
|||
Total Loans |
$ |
48,833 |
1,311 |
2.7 |
% |
||
Additionally, the Bank has made other COVID-19 related modifications that have resulted in the receipt of modified principal and interest payments totaling 6.6 percent of the loan book.
Conference Call
Signature Bank’s management will host a conference call to review results of the 2020 fourth quarter on Thursday, January 21, 2021 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 #4079502. 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,” "Quarterly Results/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 #4079502. The replay will be available from approximately 1:00 PM ET on Thursday, January 21, 2021 through 11:59 PM ET on Sunday, January 24, 2021.
About Signature Bank
Signature Bank, member FDIC, is a New York-based full-service commercial bank with 36 private client offices throughout the metropolitan New York area, including those in Connecticut as well as in California and North Carolina. Through its single-point-of-contact approach, the Bank’s private client banking teams primarily serve the needs of privately owned businesses, their owners and senior managers. The Bank has two wholly owned subsidiaries: Signature Financial, LLC, provides equipment finance and leasing: Signature Securities Group Corporation, a licensed broker-dealer, investment adviser and member FINRA/SIPC, offers investment, brokerage, asset management and insurance products and services. Signature Bank was the first FDIC-insured bank to launch a blockchain-based digital payments platform. Signet™ allows commercial clients to make real-time payments in U.S. dollars, 24/7/365 and was also the first solution 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).
For more information, please visit https://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, our business strategy and the impact of the COVID-19 pandemic on each of the foregoing and on our business overall. These statements often include words such as "may," "believe," "expect," "anticipate," "intend," “potential,” “opportunity,” “could,” “project,” “seek,” “target”, “goal”, “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, (vi) our ability to maintain the continuity, integrity, security and safety of our operations and (vii) competition for qualified personnel and desirable office locations. All of these factors are subject to additional uncertainty in the context of the COVID-19 pandemic, which is having an unprecedented impact on all aspects of our operations, the financial services industry and the economy as a whole. 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.
FINANCIAL TABLES ATTACHED
SIGNATURE BANK |
|
|
|
|
||||
CONSOLIDATED STATEMENTS OF INCOME |
|
|
|
|
||||
(unaudited) |
|
|
|
|
||||
|
|
|
|
|
||||
|
Three months ended
|
Twelve months ended
|
||||||
(dollars in thousands, except per share amounts) |
2020 |
2019 |
2020 |
2019 |
||||
INTEREST INCOME |
|
|
|
|
||||
Loans held for sale |
$ |
1,321 |
1,325 |
3,655 |
4,978 |
|||
Loans and leases, net |
427,018 |
399,609 |
1,661,912 |
1,579,268 |
||||
Securities available-for-sale |
41,886 |
54,003 |
186,569 |
227,535 |
||||
Securities held-to-maturity |
12,675 |
14,551 |
55,335 |
60,843 |
||||
Other investments |
5,658 |
11,908 |
24,175 |
39,052 |
||||
Total interest income |
488,558 |
481,396 |
1,931,646 |
1,911,676 |
||||
INTEREST EXPENSE |
|
|
|
|
||||
Deposits |
65,990 |
108,928 |
297,349 |
440,730 |
||||
Federal funds purchases and securities sold under
|
595 |
733 |
2,742 |
14,170 |
||||
Federal Home Loan Bank borrowings |
17,420 |
28,323 |
85,333 |
129,138 |
||||
Subordinated debt |
9,570 |
5,117 |
27,130 |
16,045 |
||||
Total interest expense |
93,575 |
143,101 |
412,554 |
600,083 |
||||
Net interest income before provision for credit losses |
394,983 |
338,295 |
1,519,092 |
1,311,593 |
||||
Provision for credit losses |
35,599 |
9,755 |
248,094 |
22,636 |
||||
Net interest income after provision for credit losses |
359,384 |
328,540 |
1,270,998 |
1,288,957 |
||||
NON-INTEREST INCOME |
|
|
|
|
||||
Commissions |
3,731 |
3,673 |
13,441 |
14,504 |
||||
Fees and service charges |
14,625 |
9,174 |
46,397 |
32,926 |
||||
Net (losses) gains on sales of securities |
(17) |
— |
3,606 |
1,034 |
||||
Net gains on sale of loans |
3,099 |
1,957 |
12,651 |
10,836 |
||||
Other income (1) |
2,753 |
1,225 |
(847) |
2,415 |
||||
Total non-interest income |
24,191 |
16,029 |
75,248 |
61,715 |
||||
NON-INTEREST EXPENSE |
|
|
|
|
||||
Salaries and benefits |
95,703 |
84,301 |
389,125 |
335,054 |
||||
Occupancy and equipment |
10,934 |
10,357 |
44,371 |
42,833 |
||||
Information technology |
11,420 |
9,410 |
43,217 |
36,961 |
||||
FDIC assessment fees |
3,955 |
2,894 |
13,742 |
12,432 |
||||
Professional fees |
5,355 |
3,996 |
18,286 |
14,689 |
||||
Other general and administrative |
30,284 |
27,065 |
105,313 |
87,300 |
||||
Total non-interest expense |
157,651 |
138,023 |
614,054 |
529,269 |
||||
Income before income taxes |
225,924 |
206,546 |
732,192 |
821,403 |
||||
Income tax expense (1) |
52,915 |
58,932 |
203,833 |
234,917 |
||||
Net income |
$ |
173,009 |
147,614 |
528,359 |
586,486 |
|||
Preferred stock dividends |
— |
— |
— |
— |
||||
Net income available to common shareholders |
$ |
173,009 |
147,614 |
528,359 |
586,486 |
|||
PER COMMON SHARE DATA |
|
|
|
|
||||
Earnings per common share - basic (1) |
$ |
3.28 |
2.78 |
10.00 |
10.87 |
|||
Earnings per common share - diluted (1) |
$ |
3.26 |
2.76 |
9.96 |
10.82 |
|||
Dividends per common share |
$ |
0.56 |
0.56 |
2.24 |
2.24 |
|||
(1) Effective January 1, 2020, we changed our accounting policy for Low Income Housing Tax Credit ("LIHTC") investments from the equity method to the proportional amortization method as it was determined to be the preferable method. All applicable prior period amounts have been retroactively restated to conform to the new accounting policy. |
SIGNATURE BANK |
|
|
||
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION |
|
|
||
|
December 31, |
|||
|
2020 |
2019 |
||
(dollars in thousands, except shares and per share amounts) |
(unaudited) |
|
||
ASSETS |
|
|
||
Cash and due from banks |
$ |
12,208,997 |
702,277 |
|
Short-term investments |
139,334 |
87,555 |
||
Total cash and cash equivalents |
12,348,331 |
789,832 |
||
Securities available-for-sale (amortized cost |
8,890,417 |
7,143,864 |
||
Securities held-to-maturity (fair value |
2,282,830 |
2,101,970 |
||
Federal Home Loan Bank stock |
171,678 |
231,339 |
||
Loans held for sale |
407,363 |
290,593 |
||
Loans and leases |
48,833,098 |
39,109,623 |
||
Allowance for credit losses for loans and leases |
(508,299) |
(249,989) |
||
Loans and leases, net |
48,324,799 |
38,859,634 |
||
Premises and equipment, net |
80,274 |
66,419 |
||
Operating lease right-of-use assets |
237,407 |
217,578 |
||
Accrued interest and dividends receivable |
277,801 |
147,527 |
||
Other assets (1) |
867,444 |
743,053 |
||
Total assets |
$ |
73,888,344 |
50,591,809 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
||
Deposits |
|
|
||
Non-interest-bearing |
$ |
18,757,771 |
13,016,931 |
|
Interest-bearing |
44,557,552 |
27,366,276 |
||
Total deposits |
63,315,323 |
40,383,207 |
||
Federal funds purchased and securities sold under agreements to repurchase |
150,000 |
150,000 |
||
Federal Home Loan Bank borrowings |
2,839,245 |
4,142,144 |
||
Subordinated debt |
828,588 |
456,119 |
||
Operating lease liabilities |
265,354 |
242,587 |
||
Accrued expenses and other liabilities |
662,925 |
472,554 |
||
Total liabilities |
68,061,435 |
45,846,611 |
||
Shareholders' equity |
|
|
||
Preferred stock, par value $.01 per share; 61,000,000 shares authorized,
|
7 |
— |
||
Common stock, par value $.01 per share; 64,000.000 shares authorized;
|
555 |
554 |
||
Additional paid-in capital |
2,583,514 |
1,871,571 |
||
Retained earnings (1) |
3,548,260 |
3,172,273 |
||
Treasury stock, 1,899,336 shares at December 31, 2020 and 1,907,987 shares at December 31, 2019 |
(232,531) |
(233,570) |
||
Accumulated other comprehensive loss |
(72,896) |
(65,630) |
||
Total shareholders' equity |
5,826,909 |
4,745,198 |
||
Total liabilities and shareholders' equity |
$ |
73,888,344 |
50,591,809 |
|
(1) Effective January 1, 2020, we changed our accounting policy for Low Income Housing Tax Credit ("LIHTC") investments from the equity method to the proportional amortization method as it was determined to be the preferable method. All applicable prior period amounts have been retroactively restated to conform to the new accounting policy. |
SIGNATURE BANK |
|||||||||
FINANCIAL SUMMARY, CAPITAL RATIOS, ASSET QUALITY |
|||||||||
(unaudited) |
|
|
|
|
|||||
|
|
|
|
|
|||||
|
Three months ended
|
Twelve months ended
|
|||||||
(in thousands, except ratios and per share amounts) |
2020 |
2019 (6) |
2020 |
2019 (6) |
|||||
PER COMMON SHARE |
|
|
|
|
|||||
Earnings per common share - basic |
$ |
3.28 |
2.78 |
$ |
10.00 |
10.87 |
|||
Earnings per common share - diluted |
$ |
3.26 |
2.76 |
$ |
9.96 |
10.82 |
|||
Weighted average common shares outstanding - basic |
52,673 |
53,008 |
52,641 |
53,774 |
|||||
Weighted average common shares outstanding - diluted |
52,970 |
53,234 |
52,889 |
54,011 |
|||||
Book value per common share |
$ |
95.56 |
88.66 |
$ |
95.56 |
88.66 |
|||
|
|
|
|
|
|||||
SELECTED FINANCIAL DATA |
|
|
|
|
|||||
Return on average total assets |
|
|
|
|
|||||
Return on average common shareholders' equity |
|
|
|
|
|||||
Efficiency ratio (1) |
|
|
|
|
|||||
Yield on interest-earning assets |
|
|
|
|
|||||
Yield on interest-earning assets, tax-equivalent basis (1) (2) |
|
|
|
|
|||||
Cost of deposits and borrowings |
|
|
|
|
|||||
Net interest margin |
|
|
|
|
|||||
Net interest margin, tax-equivalent basis (2)(3) |
|
|
|
|
|||||
(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. |
|
December 31,
|
September 30,
|
December 31,
|
||||||||
CAPITAL RATIOS |
|
|
|
||||||||
Tangible common equity (4) |
|
6.89 |
% |
|
7.75 |
% |
|
9.30 |
% |
||
Tier 1 leverage (5) |
|
8.55 |
% |
|
8.56 |
% |
|
9.55 |
% |
||
Common equity Tier 1 risk-based (5) |
|
9.87 |
% |
|
10.26 |
% |
|
11.56 |
% |
||
Tier 1 risk-based (5) |
|
11.20 |
% |
|
10.26 |
% |
|
11.56 |
% |
||
Total risk-based (5) |
|
13.54 |
% |
|
11.98 |
% |
|
13.26 |
% |
||
|
|
|
|
||||||||
ASSET QUALITY |
|
|
|
||||||||
Non-accrual loans |
$ |
120,171 |
|
$ |
81,305 |
|
$ |
57,355 |
|
||
Allowance for loan and lease losses |
$ |
508,299 |
|
$ |
484,923 |
|
$ |
249,989 |
|
||
Allowance for loan and lease losses to non-accrual loans |
|
422.98 |
% |
|
596.42 |
% |
|
435.86 |
% |
||
Allowance for loan and lease losses to total loans |
|
1.04 |
% |
|
1.05 |
% |
|
0.64 |
% |
||
Non-accrual loans to total loans |
|
0.25 |
% |
|
0.18 |
% |
|
0.15 |
% |
||
Quarterly net charge-offs to average loans, annualized |
|
0.10 |
% |
|
0.09 |
% |
|
0.03 |
% |
||
(4) We define tangible common equity as the ratio of total tangible common equity to total tangible assets (the "TCE ratio"). TCE represents the Company's common stock shareholders' equity (i.e., total stockholders' equity less preferred equity) less intangible assets. The TCE ratio 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) December 31, 2020 ratios are preliminary. |
|
(6) Effective January 1, 2020, we changed our accounting policy for Low Income Housing Tax Credit ("LIHTC") investments from the equity method to the proportional amortization method as it was determined to be the preferable method. All applicable prior period amounts have been retroactively restated to conform to the new accounting policy. |
SIGNATURE BANK |
|
|
|
|
|
|
|
|||||||||||
NET INTEREST MARGIN ANALYSIS |
|
|
|
|
|
|
|
|||||||||||
(unaudited) |
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|||||||||||
|
Three Months Ended
|
|
Three Months Ended
|
|||||||||||||||
(dollars in thousands) |
Average
|
Interest
|
Average
|
|
Average
|
Interest
|
Average
|
|||||||||||
INTEREST-EARNING ASSETS |
|
|
|
|
|
|
|
|||||||||||
Short-term investments |
$ |
12,511,429 |
|
3,569 |
|
0.11 |
% |
|
1,743,038 |
|
7,755 |
|
1.77 |
% |
||||
Investment securities |
10,631,245 |
|
56,650 |
|
2.13 |
% |
|
9,541,382 |
|
72,707 |
|
3.05 |
% |
|||||
Commercial loans, mortgages and leases (1) |
47,223,197 |
|
427,210 |
|
3.60 |
% |
|
37,903,214 |
|
398,935 |
|
4.18 |
% |
|||||
Residential mortgages and consumer loans |
162,349 |
|
1,444 |
|
3.54 |
% |
|
203,066 |
|
2,131 |
|
4.16 |
% |
|||||
Loans held for sale |
305,885 |
|
1,321 |
|
1.72 |
% |
|
169,495 |
|
1,325 |
|
3.10 |
% |
|||||
Total interest-earning assets |
70,834,105 |
|
490,194 |
|
2.75 |
% |
|
49,560,195 |
|
482,853 |
|
3.87 |
% |
|||||
Non-interest-earning assets (2) |
972,433 |
|
|
|
|
808,272 |
|
|
|
|||||||||
Total assets |
$ |
71,806,538 |
|
|
|
|
50,368,467 |
|
|
|
||||||||
INTEREST-BEARING LIABILITIES |
|
|
|
|
|
|
|
|||||||||||
Interest-bearing deposits |
|
|
|
|
|
|
|
|||||||||||
NOW and interest-bearing demand |
$ |
12,362,930 |
|
19,334 |
|
0.62 |
% |
|
4,722,763 |
|
19,727 |
|
1.66 |
% |
||||
Money market |
28,511,134 |
|
39,934 |
|
0.56 |
% |
|
20,183,695 |
|
75,138 |
|
1.48 |
% |
|||||
Time deposits |
1,898,286 |
|
6,722 |
|
1.41 |
% |
|
2,430,110 |
|
14,063 |
|
2.30 |
% |
|||||
Non-interest-bearing demand deposits |
19,203,186 |
|
— |
|
— |
% |
|
12,750,429 |
|
— |
|
— |
% |
|||||
Total deposits |
61,975,536 |
|
65,990 |
|
0.42 |
% |
|
40,086,997 |
|
108,928 |
|
1.08 |
% |
|||||
Subordinated debt |
808,454 |
|
9,570 |
|
4.73 |
% |
|
389,730 |
|
5,117 |
|
5.25 |
% |
|||||
Other borrowings |
2,989,245 |
|
18,015 |
|
2.40 |
% |
|
4,460,079 |
|
29,056 |
|
2.58 |
% |
|||||
Total deposits and borrowings |
65,773,235 |
|
93,575 |
|
0.57 |
% |
|
44,936,806 |
|
143,101 |
|
1.26 |
% |
|||||
Other non-interest-bearing liabilities |
854,144 |
|
|
|
|
700,680 |
|
|
|
|||||||||
Preferred equity |
115,818 |
|
|
|
|
— |
|
|
|
|||||||||
Common equity (2) |
5,063,341 |
|
|
|
|
4,730,981 |
|
|
|
|||||||||
Total liabilities and shareholders' equity |
$ |
71,806,538 |
|
|
|
|
50,368,467 |
|
|
|
||||||||
OTHER DATA |
|
|
|
|
|
|
|
|||||||||||
Net interest income / interest rate spread (1) |
|
396,619 |
|
2.18 |
% |
|
|
339,752 |
|
2.61 |
% |
|||||||
Tax-equivalent adjustment |
|
(1,636) |
|
|
|
|
(1,457) |
|
|
|||||||||
Net interest income, as reported |
|
394,983 |
|
|
|
|
338,295 |
|
|
|||||||||
Net interest margin |
|
|
2.22 |
% |
|
|
|
2.71 |
% |
|||||||||
Tax-equivalent effect |
|
|
0.01 |
% |
|
|
|
0.01 |
% |
|||||||||
Net interest margin on a tax-equivalent basis (1) |
|
|
2.23 |
% |
|
|
|
2.72 |
% |
|||||||||
Ratio of average interest-earning assets |
|
|
|
|
|
|
|
|||||||||||
to average interest-bearing liabilities |
|
|
107.69 |
% |
|
|
|
110.29 |
% |
|||||||||
(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) Effective January 1, 2020, we changed our accounting policy for Low Income Housing Tax Credit ("LIHTC") investments from the equity method to the proportional amortization method as it was determined to be the preferable method. All applicable prior period amounts have been retroactively restated to conform to the new accounting policy. |
SIGNATURE BANK |
|
|
|
|
|
|
|
|||||||||||
NET INTEREST MARGIN ANALYSIS |
|
|
|
|
|
|
|
|||||||||||
(unaudited) |
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|||||||||||
|
Twelve Months Ended
|
|
Twelve Months Ended
|
|||||||||||||||
(dollars in thousands) |
Average
|
Interest
|
Average
|
|
Average
|
Interest
|
Average
|
|||||||||||
INTEREST-EARNING ASSETS |
|
|
|
|
|
|
|
|||||||||||
Short-term investments |
$ |
5,887,909 |
|
11,748 |
|
0.20 |
% |
|
1,007,237 |
|
21,127 |
|
2.10 |
% |
||||
Investment securities |
9,812,898 |
|
254,331 |
|
2.59 |
% |
|
9,561,736 |
{
"@context": "https://schema.org",
"@type": "FAQPage",
"name": "Signature Bank Reports 2020 Fourth Quarter and Year-end Results FAQs",
"mainEntity": [
{
"@type": "Question",
"name": "What were Signature Bank's earnings for Q4 2020?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Signature Bank reported a net income of $173 million, or $3.26 per diluted share for Q4 2020."
}
},
{
"@type": "Question",
"name": "How much did Signature Bank's deposits grow in Q4 2020?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Deposits increased by $8.98 billion, or 16.5%, totaling $63.32 billion."
}
},
{
"@type": "Question",
"name": "What caused the increase in Signature Bank's provision for credit losses?",
"acceptedAnswer": {
"@type": "Answer",
"text": "The provision for credit losses rose due to the economic effects of COVID-19."
}
},
{
"@type": "Question",
"name": "What is Signature Bank's total asset value as of December 31, 2020?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Total assets reached $73.89 billion at December 31, 2020."
}
},
{
"@type": "Question",
"name": "What was the year-over-year growth in net interest income for Signature Bank?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Net interest income grew by 16.8% to $395 million in Q4 2020 compared to the same quarter in 2019."
}
}
]
}
| |||||||||
