Signature Bank Reports 2021 First Quarter Results
Signature Bank (Nasdaq: SBNY) reported a robust first quarter for 2021, with net income soaring to $190.5 million ($3.24 per share), marking a significant increase from $99.6 million ($1.88 per share) in Q1 2020. This growth is attributed to a rise in net interest income, totaling $406.5 million, and an impressive deposit increase of $10.66 billion. The bank's total assets reached $85.38 billion, up 60.9% from the previous year. Additionally, the bank raised $707.8 million in common stock for growth initiatives, while continuing to pay dividends of $0.56 per share to common shareholders.
- Net income increased 91.1% year-over-year to $190.5 million.
- Net interest income rose 16.7% to $406.5 million due to strong loan and deposit growth.
- Total assets increased 60.9% to $85.38 billion from $53.07 billion a year ago.
- Deposits rose 16.8% to $73.97 billion, with a 75.1% increase over the last twelve months.
- Raised $707.8 million in common stock for growth purposes.
- Cash dividend of $0.56 per share declared for common shareholders.
- Net interest margin decreased to 2.10% from 2.79% in the previous year's Q1.
- Provision for credit losses, though down, remains elevated at $30.9 million due to ongoing COVID-19 effects.
- Non-accrual loans increased to $133.7 million, representing 0.26% of total loans.
Signature Bank (Nasdaq: SBNY), a New York-based full-service commercial bank, today announced results for its first quarter ended March 31, 2021.
Net income for the 2021 first quarter was
Net interest income for the 2021 first quarter rose
Deposits for the 2021 first quarter increased
"We kicked off 2021 in an astonishing manner delivering another quarter of record deposit growth of
“In retrospect, it’s really not all that surprising to see we delivered another quarter of record earnings and growth as we have done this for the past 20 years. In fact, May 1 marks our 20-year anniversary. Over the years, we have remained true to our founding principles of a team-based, single point-of-contact model that caters to privately owned businesses, their owners and managers. This focused model has distinguished the Bank in the marketplace, and delivered outstanding performance consistently throughout the Bank’s existence. It’s hard to believe that the Bank started with nearly
Scott A. Shay, Chairman of the Board, added: “What a difference a year makes. At this time last year, New York was enduring the first brutal wave of COVID-19, which sadly sickened and caused the death of far too many. The economic shutdown also resulted in widespread devastation to many businesses and their employees. Yet New Yorkers continue to show great spirit and drive as things begin to turn around. Thankfully, with the innovation of vaccine makers, we can see the coming reopening of New York without squinting. Many of our clients are getting ready to reopen and do so by being better than ever.”
“Throughout this year-long pandemic, Signature Bank kept its focus and remained committed to our sleep-at-night safety for depositors and single point of contact service model. It is no mystery why the Bank has grown so rapidly during this past year. We always scrutinize the financial service horizon to attempt to stay one step ahead of the pack. Our commitment to the still-nascent emerging digital asset space is just one example, as evidenced by the ongoing embracing of our payments platform, Signet™. Change is a constant in banking, and we will remain nimble while never straying from our twin pillars of providing depositor safety and a single point of contact approach to our loyal clients.”
Capital
In the 2021 first quarter, the Bank raised
The Bank declared a cash dividend of
Net Interest Income
Net interest income for the 2021 first quarter was
Average cost of deposits and average cost of funds for the first quarter of 2021 decreased by 64 and 69 basis points, to 0.34 percent and 0.47 percent, respectively, versus the comparable period a year ago.
Net interest margin on a tax-equivalent basis for the 2021 first quarter was 2.10 percent versus 2.79 percent reported in the 2020 first quarter and 2.23 percent in the 2020 fourth quarter. Excluding loan prepayment penalties in both quarters, linked quarter core net interest margin on a tax-equivalent basis decreased 14 basis points to 2.07 percent.
Provision for Credit Losses
The Bank’s provision for credit losses for the first quarter of 2021 was
Net charge-offs for the 2021 first quarter were
Non-Interest Income and Non-Interest Expense
Non-interest income for the 2021 first quarter was
Non-interest expense for the first quarter of 2021 was
The Bank’s efficiency ratio improved to 37.9 percent for the 2021 first quarter compared with 39.7 percent for the same period a year ago, and 37.6 percent for the fourth quarter of 2020.
Loans
Loans, excluding loans held for sale, expanded
At March 31, 2021, non-accrual loans were
COVID-19 Related Loan Modifications
As of April 15, 2021, total non-payment deferrals were
|
|
Non-Payment Modifications |
|||||||||
(dollars in millions) |
Portfolio Balance
|
Balance
|
%
|
||||||||
Multi-family |
$ |
15,695 |
|
|
398 |
|
2.5 |
% |
|||
Retail |
5,541 |
|
|
263 |
|
4.7 |
% |
||||
Office |
3,874 |
|
|
176 |
|
4.5 |
% |
||||
Acquisition, Development, and Construction (ADC) |
1,399 |
|
|
8 |
|
0.6 |
% |
||||
Industrial |
569 |
|
|
3 |
|
0.6 |
% |
||||
Hotel |
77 |
|
|
— |
|
— |
% |
||||
Land |
37 |
|
|
— |
|
— |
% |
||||
Other |
289 |
|
|
7 |
|
2.4 |
% |
||||
Total Commercial Real Estate |
27,480 |
|
|
855 |
|
3.1 |
% |
||||
Fund Banking and Venture Banking |
12,402 |
|
|
— |
|
— |
% |
||||
Asset Based Lending |
348 |
|
|
— |
|
— |
% |
||||
Signature Financial |
5,064 |
|
|
14 |
|
0.3 |
% |
||||
Traditional Commercial & Industrial |
2,486 |
|
|
83 |
|
3.3 |
% |
||||
Total Commercial & Industrial |
20,301 |
|
|
97 |
|
0.5 |
% |
||||
PPP Loans |
2,673 |
|
|
— |
|
— |
% |
||||
Consumer and Residential |
569 |
|
|
31 |
|
5.5 |
% |
||||
Premium, deferred fees, and costs |
(69 |
) |
|
— |
|
— |
% |
||||
Total Loans |
$ |
50,953 |
|
|
983 |
|
1.9 |
% |
|||
Additionally, the Bank has made other COVID-19 related modifications that have resulted in the receipt of modified principal and interest payments totaling 7.1 percent of the loan book.
Conference Call
Signature Bank’s management will host a conference call to review results of the 2021 first quarter on Wednesday, April 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 #3598015. 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 #3598015. The replay will be available from approximately 1:00 PM ET on Wednesday, April 21, 2021 through 11:59 PM ET on Saturday, April 24, 2021.
About Signature Bank
Signature Bank, member FDIC, is a New York-based full-service commercial bank with 37 private client offices throughout the metropolitan New York area, as well as those in Connecticut, 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; and, 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 placed 22nd on S&P Global’s list of the largest banks in the U.S., based on deposits.
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 March 31, |
||||||
(dollars in thousands, except per share amounts) |
2021 |
|
2020 |
||||
INTEREST INCOME |
|
|
|||||
Loans held for sale |
$ |
580 |
|
704 |
|
||
Loans and leases |
428,981 |
|
404,510 |
|
|||
Securities available-for-sale |
41,875 |
|
51,748 |
|
|||
Securities held-to-maturity |
12,962 |
|
14,594 |
|
|||
Other investments |
7,144 |
|
8,258 |
|
|||
Total interest income |
491,542 |
|
479,814 |
|
|||
INTEREST EXPENSE |
|
|
|||||
Deposits |
57,504 |
|
99,739 |
|
|||
Federal funds purchased and securities sold under agreements to repurchase |
602 |
|
748 |
|
|||
Federal Home Loan Bank borrowings |
17,128 |
|
25,212 |
|
|||
Subordinated debt |
9,801 |
|
5,852 |
|
|||
Total interest expense |
85,035 |
|
131,551 |
|
|||
Net interest income before provision for credit losses |
406,507 |
|
348,263 |
|
|||
Provision for credit losses |
30,872 |
|
66,823 |
|
|||
Net interest income after provision for credit losses |
375,635 |
|
281,440 |
|
|||
NON-INTEREST INCOME |
|
|
|||||
Commissions |
4,003 |
|
3,650 |
|
|||
Fees and service charges |
16,930 |
|
10,594 |
|
|||
Net gains on sales of loans |
7,061 |
|
2,735 |
|
|||
Other income (loss) |
4,707 |
|
(2,799 |
) |
|||
Total non-interest income |
32,701 |
|
14,180 |
|
|||
NON-INTEREST EXPENSE |
|
|
|||||
Salaries and benefits |
106,051 |
|
93,032 |
|
|||
Occupancy and equipment |
11,773 |
|
10,537 |
|
|||
Information technology |
11,481 |
|
10,219 |
|
|||
FDIC assessment fees |
5,725 |
|
2,898 |
|
|||
Professional fees |
5,142 |
|
4,744 |
|
|||
Other general and administrative |
26,219 |
|
22,536 |
|
|||
Total non-interest expense |
166,391 |
|
143,966 |
|
|||
Income before income taxes |
241,945 |
|
151,654 |
|
|||
Income tax expense |
51,412 |
|
52,067 |
|
|||
Net income |
$ |
190,533 |
|
99,587 |
|
||
Preferred stock dividends |
10,512 |
|
— |
|
|||
Net income available to common shareholders |
$ |
180,021 |
|
99,587 |
|
||
PER COMMON SHARE DATA |
|
|
|||||
Earnings per common share - basic |
$ |
3.27 |
|
1.89 |
|
||
Earnings per common share - diluted |
$ |
3.24 |
|
1.88 |
|
||
Dividends per common share |
$ |
0.56 |
|
0.56 |
|
||
SIGNATURE BANK |
|||||||
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION |
|||||||
|
March 31,
|
|
December 31,
|
||||
(dollars in thousands, except shares and per share amounts) |
(unaudited) |
|
|
||||
ASSETS |
|
|
|||||
Cash and due from banks |
$ |
19,528,833 |
|
12,208,997 |
|
||
Short-term investments |
219,476 |
|
139,334 |
|
|||
Total cash and cash equivalents |
19,748,309 |
|
12,348,331 |
|
|||
Securities available-for-sale (amortized cost
and
at March 31, 2021 and |
10,536,991 |
|
8,890,417 |
|
|||
Securities held-to-maturity (fair value
and
|
2,695,782 |
|
2,282,830 |
|
|||
Federal Home Loan Bank stock |
169,143 |
|
171,678 |
|
|||
Loans held for sale |
337,976 |
|
407,363 |
|
|||
Loans and leases |
50,952,998 |
|
48,833,098 |
|
|||
Allowance for credit losses for loans and leases |
(521,761 |
) |
(508,299 |
) |
|||
Loans and leases, net |
50,431,237 |
|
48,324,799 |
|
|||
Premises and equipment, net |
79,668 |
|
80,274 |
|
|||
Operating lease right-of-use assets |
241,308 |
|
237,407 |
|
|||
Accrued interest and dividends receivable |
298,382 |
|
277,801 |
|
|||
Other assets |
843,398 |
|
867,444 |
|
|||
Total assets |
$ |
85,382,194 |
|
73,888,344 |
|
||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|||||
Deposits |
|
|
|||||
Non-interest-bearing |
$ |
22,532,139 |
|
18,757,771 |
|
||
Interest-bearing |
51,442,440 |
|
44,557,552 |
|
|||
Total deposits |
73,974,579 |
|
63,315,323 |
|
|||
Federal funds purchased and securities sold under agreements to repurchase |
150,000 |
|
150,000 |
|
|||
Federal Home Loan Bank borrowings |
2,764,245 |
|
2,839,245 |
|
|||
Subordinated debt |
829,127 |
|
828,588 |
|
|||
Operating lease liabilities |
270,089 |
|
265,354 |
|
|||
Accrued expenses and other liabilities |
751,751 |
|
662,925 |
|
|||
Total liabilities |
78,739,791 |
|
68,061,435 |
|
|||
Shareholders’ equity |
|
|
|||||
Preferred stock, par value $.01 per share; 61,000,000 shares authorized; 730,000 shares issued and outstanding at March 31, 2021 and December 31, 2020 |
7 |
|
7 |
|
|||
Common stock, par value $.01 per share; 64,000,000 shares authorized; 57,913,798 shares issued and 57,789,813 outstanding at March 31, 2021; 55,520,417 shares issued and 53,564,573 outstanding at December 31, 2020 |
578 |
|
555 |
|
|||
Additional paid-in capital |
3,072,926 |
|
2,583,514 |
|
|||
Retained earnings |
3,698,195 |
|
3,548,260 |
|
|||
Treasury stock, zero shares at March 31, 2021 and 1,899,336 shares at December 31, 2020 |
— |
|
(232,531 |
) |
|||
Accumulated other comprehensive loss |
(129,303 |
) |
(72,896 |
) |
|||
Total shareholders' equity |
6,642,403 |
|
5,826,909 |
|
|||
Total liabilities and shareholders' equity |
$ |
85,382,194 |
|
73,888,344 |
|
||
SIGNATURE BANK |
||||||||||||
FINANCIAL SUMMARY, CAPITAL RATIOS, ASSET QUALITY |
||||||||||||
(unaudited) |
||||||||||||
|
Three months ended |
|||||||||||
(in thousands, except ratios and per share amounts) |
March 31,
|
|
December 31,
|
|
March 31,
|
|||||||
PER COMMON SHARE |
|
|
|
|||||||||
Earnings per common share - basic |
$ |
3.27 |
|
$ |
3.28 |
|
$ |
1.89 |
|
|||
Earnings per common share - diluted |
$ |
3.24 |
|
$ |
3.26 |
|
$ |
1.88 |
|
|||
Weighted average common shares outstanding - basic |
54,998 |
|
52,673 |
|
52,546 |
|
||||||
Weighted average common shares outstanding - diluted |
55,531 |
|
52,970 |
|
52,686 |
|
||||||
Book value per common share |
$ |
102.69 |
|
$ |
95.56 |
|
$ |
88.94 |
|
|||
|
|
|
|
|||||||||
SELECTED FINANCIAL DATA |
|
|
|
|||||||||
Return on average total assets |
0.97 |
% |
0.96 |
% |
0.78 |
% |
||||||
Return on average common shareholders' equity |
13.02 |
% |
13.59 |
% |
8.42 |
% |
||||||
Efficiency ratio (1) |
37.88 |
% |
37.61 |
% |
39.72 |
% |
||||||
Yield on interest-earning assets |
2.53 |
% |
2.74 |
% |
3.82 |
% |
||||||
Yield on interest-earning assets, tax-equivalent basis (1)(2) |
2.54 |
% |
2.75 |
% |
3.83 |
% |
||||||
Cost of deposits and borrowings |
0.47 |
% |
0.57 |
% |
1.16 |
% |
||||||
Net interest margin |
2.09 |
% |
2.22 |
% |
2.78 |
% |
||||||
Net interest margin, tax-equivalent basis (2)(3) |
2.10 |
% |
2.23 |
% |
2.79 |
% |
||||||
(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,
|
December 31,
|
March 31,
|
|||||||||
CAPITAL RATIOS |
|
|
|
|||||||||
Tangible common equity (4) |
6.92 |
% |
6.89 |
% |
8.90 |
% |
||||||
Tier 1 leverage (5) |
8.82 |
% |
8.55 |
% |
9.45 |
% |
||||||
Common equity Tier 1 risk-based (5) |
10.92 |
% |
9.87 |
% |
11.05 |
% |
||||||
Tier 1 risk-based (5) |
12.18 |
% |
11.20 |
% |
11.05 |
% |
||||||
Total risk-based (5) |
14.41 |
% |
13.54 |
% |
12.77 |
% |
||||||
|
|
|
|
|||||||||
ASSET QUALITY |
|
|
|
|||||||||
Non-accrual loans |
$ |
133,713 |
|
$ |
120,171 |
|
$ |
59,055 |
|
|||
Allowance for loan and lease losses |
$ |
521,761 |
|
$ |
508,299 |
|
$ |
356,274 |
|
|||
Allowance for loan and lease losses to non-accrual loans |
390.21 |
% |
422.98 |
% |
603.29 |
% |
||||||
Allowance for loan and lease losses to total loans |
1.02 |
% |
1.04 |
% |
0.87 |
% |
||||||
Non-accrual loans to total loans |
0.26 |
% |
0.25 |
% |
0.14 |
% |
||||||
Quarterly net charge-offs to average loans, annualized |
0.15 |
% |
0.10 |
% |
0.02 |
% |
||||||
(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 shareholders' equity (i.e., total shareholders' 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) |
March 31, 2021 ratios are preliminary. |
||||
SIGNATURE BANK |
|||||||||||||||||
NET INTEREST MARGIN ANALYSIS |
|||||||||||||||||
(unaudited) |
|||||||||||||||||
|
|||||||||||||||||
|
Three months ended |
|
Three months ended |
||||||||||||||
|
March 31, 2021 |
|
March 31, 2020 |
||||||||||||||
(dollars in thousands) |
Average
|
|
Interest
|
|
Average
|
|
Average
|
|
Interest
|
|
Average
|
||||||
INTEREST-EARNING ASSETS |
|
|
|
|
|
|
|||||||||||
Short-term investments |
$ |
17,108,914 |
5,016 |
|
0.12 |
% |
1,266,147 |
4,413 |
|
1.40 |
% |
||||||
Investment securities |
12,147,383 |
56,965 |
|
1.88 |
% |
9,600,884 |
70,187 |
|
2.92 |
% |
|||||||
Commercial loans, mortgages and leases (1) |
49,202,964 |
429,337 |
|
3.54 |
% |
39,363,685 |
404,364 |
|
4.13 |
% |
|||||||
Residential mortgages and consumer loans |
157,302 |
1,334 |
|
3.44 |
% |
187,521 |
1,649 |
|
3.54 |
% |
|||||||
Loans held for sale |
132,092 |
580 |
|
1.78 |
% |
81,806 |
704 |
|
3.46 |
% |
|||||||
Total interest-earning assets |
78,748,655 |
493,232 |
|
2.54 |
% |
50,500,043 |
481,317 |
|
3.83 |
% |
|||||||
Non-interest-earning assets |
971,604 |
|
|
784,289 |
|
|
|||||||||||
Total assets |
$ |
79,720,259 |
|
|
51,284,332 |
|
|
||||||||||
INTEREST-BEARING LIABILITIES |
|
|
|
|
|
|
|||||||||||
Interest-bearing deposits |
|
|
|
|
|
|
|||||||||||
NOW and interest-bearing demand |
$ |
16,071,916 |
19,947 |
|
0.50 |
% |
5,550,076 |
20,011 |
|
1.45 |
% |
||||||
Money market |
30,295,092 |
32,687 |
|
0.44 |
% |
20,420,720 |
67,161 |
|
1.32 |
% |
|||||||
Time deposits |
1,788,516 |
4,870 |
|
1.10 |
% |
2,367,145 |
12,567 |
|
2.14 |
% |
|||||||
Non-interest-bearing demand deposits |
20,653,116 |
— |
|
— |
% |
12,804,321 |
— |
|
— |
% |
|||||||
Total deposits |
68,808,640 |
57,504 |
|
0.34 |
% |
41,142,262 |
99,739 |
|
0.98 |
% |
|||||||
Subordinated debt |
828,775 |
9,801 |
|
4.73 |
% |
456,237 |
5,852 |
|
5.13 |
% |
|||||||
Other borrowings |
2,982,579 |
17,730 |
|
2.41 |
% |
4,187,423 |
25,960 |
|
2.49 |
% |
|||||||
Total deposits and borrowings |
72,619,994 |
85,035 |
|
0.47 |
% |
45,785,922 |
131,551 |
|
1.16 |
% |
|||||||
Other non-interest-bearing liabilities |
784,921 |
|
|
694,213 |
|
|
|||||||||||
Preferred equity |
708,019 |
|
|
— |
|
|
|||||||||||
Common equity |
5,607,325 |
|
|
4,804,197 |
|
|
|||||||||||
Total liabilities and shareholders' equity |
$ |
79,720,259 |
|
|
51,284,332 |
|
|
||||||||||
OTHER DATA |
|
|
|
|
|
|
|||||||||||
Net interest income / interest rate spread (1) |
|
408,197 |
|
2.07 |
% |
|
349,766 |
|
2.67 |
% |
|||||||
Tax equivalent adjustment |
|
(1,690 |
) |
|
|
(1,503 |
) |
|
|||||||||
Net interest income, as reported |
|
406,507 |
|
|
|
348,263 |
|
|
|||||||||
Net interest margin |
|
|
2.09 |
% |
|
|
2.78 |
% |
|||||||||
Tax-equivalent effect |
|
|
0.01 |
% |
|
|
0.01 |
% |
|||||||||
Net interest margin on a tax-equivalent basis (1) |
|
|
2.10 |
% |
|
|
2.79 |
% |
|||||||||
Ratio of average interest-earnings assets to average interest-bearing liabilities |
|
|
108.44 |
% |
|
|
110.30 |
% |
|||||||||
(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. |
|
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) tangible common equity ratio, (ii) efficiency ratio, (iii) yield on interest-earning assets, tax-equivalent basis, (iv) core net interest margin, tax-equivalent basis excluding loan prepayment penalty income, (v) pre-tax, pre-provision earnings, and (vi) loans and leases to core loans (excluding Paycheck Protection Program loans). These non-GAAP measures should not be considered a substitute for GAAP-basis measures and results. We strongly encourage investors to review our consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.
The following table presents the tangible common equity ratio calculation:
|
Three months ended March 31, |
||||||
(dollars in thousands) |
2021 |
|
2020 |
||||
Consolidated total shareholders' equity |
$ |
6,642,403 |
|
4,763,961 |
|
||
Less: Preferred equity |
708,019 |
|
— |
|
|||
Common shareholders' equity |
$ |
5,934,384 |
|
4,763,961 |
|
||
Intangible assets |
28,630 |
|
45,711 |
|
|||
Tangible common shareholders' equity (TCE) |
$ |
5,905,754 |
|
4,718,250 |
|
||
|
|
|
|||||
Consolidated total assets |
$ |
85,382,194 |
|
53,074,716 |
|
||
Intangible assets |
28,630 |
|
45,711 |
|
|||
Consolidated tangible total assets (TTA) |
$ |
85,353,564 |
|
53,029,005 |
|
||
Tangible common equity ratio (TCE/TTA) |
6.92 |
% |
8.90 |
% |
|||
The following table presents the efficiency ratio calculation:
|
Three months ended March 31, |
||||||
(dollars in thousands) |
2021 |
|
2020 |
||||
Non-interest expense (NIE) |
$ |
166,391 |
|
|
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"@type": "FAQPage",
"name": "Signature Bank Reports 2021 First Quarter Results FAQs",
"mainEntity": [
{
"@type": "Question",
"name": "What were Signature Bank's Q1 2021 earnings results?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Signature Bank reported a net income of $190.5 million, or $3.24 per diluted share, for Q1 2021."
}
},
{
"@type": "Question",
"name": "How much did Signature Bank's total assets increase by in Q1 2021?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Total assets increased by 60.9% to $85.38 billion as of March 31, 2021."
}
},
{
"@type": "Question",
"name": "What was the increase in net interest income for Signature Bank in Q1 2021?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Net interest income rose by 16.7% to $406.5 million compared to Q1 2020."
}
},
{
"@type": "Question",
"name": "What dividends has Signature Bank declared for its shareholders?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Signature Bank declared a cash dividend of $0.56 per share for common shareholders, payable on or after May 14, 2021."
}
},
{
"@type": "Question",
"name": "What was the increase in deposits for Signature Bank in Q1 2021?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Deposits increased by $10.66 billion, a growth of 16.8%, totaling $73.97 billion."
}
}
]
}
| ||
