Signature Bank Q2 Profit Rises - Quick Facts

(RTTNews) - Signature Bank (SBNY) reported that its second-quarter net income rose to $53.6 million, or $1.12 per share, from $45.3 million, or $0.96 per share in the year ago quarter, mainly due to an increase in net interest income, fueled by strong deposit and loan growth. These factors were partially offset by an increase in non-interest expenses. Analysts polled by Thomson Reuters expected the company to report earnings of $1.08 per share for the quarter. Analysts' estimates typically exclude special items.

Excluding a pre-tax $2.6 million gain on sale of an SBA interest-only strip security, 2012 second quarter net income was $43.8 million, or $0.93 earnings per share.

The Bank's provision for loan losses for the second quarter of 2013 was $9.7 million, a decrease of $634,000, or 6.2 percent, compared with the 2012 second quarter. The decrease was largely due to a decrease in net charge-offs of $1.2 million.

Net interest income for the 2013 second quarter was $154.5 million, an increase of $20.3 million, or 15.2 percent, versus the same period last year, primarily due to growth in average interest-earning assets. Average interest-earning assets of $18.46 billion for the 2013 second quarter represent an increase of $3.22 billion, or 21.1 percent, from the 2012 second quarter.

Non-interest income for the 2013 second quarter was $9.3 million, down $598,000 when compared with $9.9 million reported in the 2012 second quarter. The decrease was due to a $3.2 million decline in net gains on sales of securities. The 2012 second quarter included a pre-tax $2.6 million gain on sale of an SBA interest-only strip security.