Signature Bank Q2 Profit Climbs, Loan Loss Provisions Fall - Update

(RTTNews) - Signature Bank (SBNY), a New York-based full-service commercial bank, Tuesday said third-quarter profit increased from the prior year, amid higher net interest income and lower loan loss provisions.

Net income reached a record $76.8 million, or $1.52 per share, up from $60.2 million, or $1.25 per share last year, owing to an increase in net interest income, fueled by strong deposit and loan growth. However, these factors were partially offset by an increase in non-interest expenses.

On average, 20 analysts polled by Thomson Reuters expected earnings of $1.46 per share for the quarter. Analysts' estimates typically exclude special items.

Net interest income climbed 22.6 percent to $205.3 million, amid growth in average interest-earning assets. The increase was partially offset by a decrease of $1.4 million in loan prepayment penalty income.

Provision for loan losses decreased 30.3 percent to $7.7 million, largely driven by a decrease of $1.6 million in charge-offs.

Deposits rose 7.9 percent to $21.32 billion at September 30, 2014.

Non-interest income advanced to $8.1 million from $7.9 million, mostly due to a rise in commissions, fees and service charges and net gains on sales of loans along with a decline in write-downs on other than temporary impairment of securities.

Joseph DePaolo, President and CEO, said, "This marks our 20th consecutive quarter where we reported record earnings. Signature Bank has consistently delivered strong financial results, and we are well recognized in the marketplace for our disciplined approach to private client banking, our client-centric single-point-of-contact delivery model and the careful attention to and management of our balance sheet."

The stock closed on Monday at $107.00.