NEW YORK--(BUSINESS WIRE)--Signature Bank (Nasdaq: SBNY), a New York-based full-service commercial bank, today announced results for its second quarter ended June 30, 2015. Net income for the 2015 second quarter reached a record $90.5 million, or $1.77 diluted earnings per share, versus $72.5 million, or $1.48 diluted earnings per share, for the 2014 second quarter. The record net income for the 2015 second quarter, versus the comparable quarter last year, is primarily due to an increase in net interest income, fueled by strong average deposit growth and loan growth. These factors were partially offset by an increase in non-interest expenses.
Net interest income for the 2015 second quarter reached $236.3 million, up $42.6 million, or 22.0 percent, when compared with the 2014 second quarter. This increase is primarily due to growth in average interest-earning assets. Total assets reached $29.97 billion at June 30, 2015, an increase of $5.44 billion, or 22.2 percent, from $24.53 billion at June 30, 2014. Average assets for the 2015 second quarter reached $29.36 billion, an increase of $5.54 billion, or 23.2 percent, compared with the 2014 second quarter.
Deposits for the 2015 second quarter rose $429.6 million, or 1.8 percent, to $24.46 billion at June 30, 2015. When compared with deposits at June 30, 2014, overall deposit growth for the last twelve months was 23.8 percent, or $4.70 billion. Excluding short-term escrow and brokered deposits of $3.40 billion at the end of the 2015 second quarter and $3.38 billion at the end of the 2015 first quarter, core deposits increased $413.5 million for the quarter. Average deposits for the 2015 second quarter reached $24.56 billion, an increase of $1.17 billion, or 5.0 percent.
“With another record-setting quarter behind us, we continue to prove the success of the relationship-based banking model we created at the time of Signature Bank’s inception. While this quarter marked the Bank’s 14th year in operation, we still carefully and methodically execute on the same well-conceived game plan we put in place back in 2001,” explained Joseph J. DePaolo, President and Chief Executive Officer.
“We have repeatedly reported record results and consistently demonstrated stellar performance across all key metrics – deposits, loans and earnings – due to the ways in which we efficiently utilize capital to grow our business organically by attracting talent through the lift out of private client banking teams, without experiencing any of the disruptions typically associated with acquisitions or the chaos of consolidation. The lift out of teams, coupled with a philosophy focused on true relationship-based banking, delivered without any advertising or the presence of mass-market retail offices, has perfectly positioned the Bank to further leverage our human capital. We rely on our founding platform to guide us on our strategic path to continue to outperform within our industry,” DePaolo concluded.
Scott A. Shay, Chairman of the Board, commented: “As we approach the $30 billion mark in total assets, it is an appropriate time to reflect on how Signature Bank has impacted investors, depositors and the community. With respect to our investors, Signature Bank has delivered among the best market performance of any bank in the U.S. since its initial public offering. Our performance is a result of the superior returns on assets and equity we produced during some of the most challenging financial cycles. With respect to our depositors, we offer "sleep-at-night" safety, given the low level of risk we maintain in our balance sheet, from both a credit and interest rate perspective. Lastly, we’ve become an important part of the fabric of New York City’s tri-state area. In addition to creating over one thousand jobs at Signature Bank, our work with small and medium-sized businesses that provide many of the job opportunities in the metro-NY area, along with our focus on multi-family housing, allows us to build and strengthen communities. We look forward to continuing to positively affect all of our stakeholders as our position in the marketplace grows.”
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 9.16 percent, 11.85 percent, 11.85 percent, and 12.63 percent, respectively, as of June 30, 2015. 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 9.01 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 2015 second quarter was $236.3 million, an increase of $42.6 million, or 22.0 percent, versus the same period last year, primarily due to growth in average interest-earning assets. Average interest-earning assets of $28.99 billion for the 2015 second quarter represent an increase of $5.53 billion, or 23.6 percent, from the 2014 second quarter. Yield on interest-earning assets for the 2015 second quarter decreased 13 basis points, to 3.70 percent, compared with the 2014 second quarter. This decrease was primarily attributable to prolonged low interest rates.
Average cost of deposits and average cost of funds for the second quarter of 2015 decreased by eight and nine basis points, respectively, versus the 2014 second quarter to 0.40 percent and 0.47 percent. These decreases were predominantly due to prolonged low interest rates.
Net interest margin for the 2015 second quarter was 3.27 percent versus 3.31 percent reported in the same period a year ago. On a linked quarter basis, net interest margin increased one basis point. Excluding loan prepayment penalties in both quarters, linked quarter core margin remained unchanged at 3.17 percent for both periods.
Provision for Loan Losses
The Bank’s provision for loan losses for the second quarter of 2015 was $9.0 million, compared with $7.9 million for the 2015 first quarter and $7.6 million for the 2014 second quarter. The increase was largely due to an increase in net charge-offs.
Net charge-offs for the 2015 second quarter were $2.6 million, or 0.05 percent of average loans on an annualized basis, versus $1.5 million, or 0.03 percent, for the 2015 first quarter and $718,000, or 0.02 percent, for the 2014 second quarter.
Non-Interest Income and Non-Interest Expense
Non-interest income for the 2015 second quarter was $9.8 million, down $2.6 million when compared with $12.4 million reported in the 2014 second quarter. The decrease was predominantly due to a $4.2 million decrease in net gains on sales of securities mostly due to a $4.4 million gain on sale of an SBA interest-only strip security in the 2014 second quarter.
Non-interest expense for the second quarter of 2015 was $84.9 million, an increase of $11.9 million, or 16.4 percent, versus $73.0 million reported in the 2014 second quarter. The increase was primarily a result of the addition of new private client banking teams and our continued investment in Signature Financial, as well as an increase in costs in our risk management and compliance related activities.
The Bank’s efficiency ratio improved to 34.5 percent for the 2015 second quarter versus 35.4 percent for the comparable period last year. The improvement was primarily due to growth in net interest income.
Loans
Loans, excluding loans held for sale, grew $1.23 billion, or 6.4 percent, during the second quarter of 2015 to $20.53 billion, compared with $19.30 billion at March 31, 2015. At June 30, 2015, loans accounted for 68.5 percent of total assets, versus 67.5 percent at the end of the 2015 first quarter and 62.9 percent at the end of 2014 second quarter. Average loans, excluding loans held for sale, reached $19.98 billion in the 2015 second quarter, growing $1.55 billion, or 8.4 percent, from the 2015 first quarter and $5.08 billion, or 34.1 percent, from the 2014 second quarter. The increase in loans for the quarter was primarily driven by growth in commercial real estate and multi-family loans.
At June 30, 2015, non-accrual loans were $41.6 million, representing 0.20 percent of total loans and 0.14 percent of total assets, compared with non-accrual loans of $27.8 million, or 0.14 percent of total loans, at March 31, 2015 and $32.7 million, or 0.21 percent of total loans, at June 30, 2014. At June 30, 2015, the ratio of allowance for loan and lease losses to total loans was 0.86 percent, versus 0.88 percent at March 31, 2015 and 0.98 percent at June 30, 2014. Additionally, the ratio of allowance for loan and lease losses to non-accrual loans, or the coverage ratio, was 426 percent for the 2015 second quarter versus 614 percent for the first quarter of 2015 and 459 percent for the 2014 second quarter.
Conference Call
Signature Bank’s management will host a conference call to review results of the 2015 second quarter on Tuesday, July 21, 2015, 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 #80820311. 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 #80820311. The replay will be available from approximately 1:00 PM ET on Tuesday, July 21, 2015 through 11:59 PM ET on Friday, July 24, 2015.
About Signature Bank
Signature Bank, member FDIC, is a New York-based full-service commercial bank with 29 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 was named the Best Bank in America by Forbes for 2015 and the only large cap bank to appear on Forbes’ list of America’s 50 Most Trustworthy Financial Companies. Signature Bank also was voted Best Business Bank by the New York Law Journal in the publication’s fifth annual reader survey; named the nation’s fifth top-performing bank by ABA Banking Journal; and ranked seventh on Bank Director magazine’s 2014 Bank Performance Scorecard for banks with assets between $5 and $50 billion.
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.
FINANCIAL TABLES ATTACHED
| SIGNATURE BANK | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
| (unaudited) | ||||||||||||||||
|
Three months ended
June 30, |
Six months ended
June 30, |
|||||||||||||||
| (dollars in thousands, except per share amounts) | 2015 | 2014 | 2015 | 2014 | ||||||||||||
| INTEREST AND DIVIDEND INCOME | ||||||||||||||||
| Loans held for sale | $ | 512 | 378 | 1,108 | 1,321 | |||||||||||
| Loans and leases, net | 202,198 | 156,805 | 387,962 | 304,972 | ||||||||||||
| Securities available-for-sale | 47,131 | 48,186 | 96,367 | 96,115 | ||||||||||||
| Securities held-to-maturity | 16,690 | 17,552 | 33,768 | 34,867 | ||||||||||||
| Other short-term investments | 1,063 | 1,146 | 2,351 | 2,560 | ||||||||||||
| Total interest income | 267,594 | 224,067 | 521,556 | 439,835 | ||||||||||||
| INTEREST EXPENSE | ||||||||||||||||
| Deposits | 24,786 | 22,769 | 49,602 | 44,440 | ||||||||||||
| Federal funds purchased and securities sold under | ||||||||||||||||
| agreements to repurchase | 3,580 | 4,366 | 7,301 | 8,786 | ||||||||||||
| Federal Home Loan Bank borrowings | 2,929 | 3,218 | 5,857 | 6,427 | ||||||||||||
| Total interest expense | 31,295 | 30,353 | 62,760 | 59,653 | ||||||||||||
| Net interest income before provision for loan and lease losses | 236,299 | 193,714 | 458,796 | 380,182 | ||||||||||||
| Provision for loan and lease losses | 8,957 | 7,637 | 16,844 | 15,825 | ||||||||||||
| Net interest income after provision for loan and lease losses | 227,342 | 186,077 | 441,952 | 364,357 | ||||||||||||
| NON-INTEREST INCOME | ||||||||||||||||
| Commissions | 2,909 | 2,585 | 5,462 | 5,119 | ||||||||||||
| Fees and service charges | 5,905 | 5,166 | 10,926 | 9,623 | ||||||||||||
| Net gains on sales of securities | 203 | 4,412 | 621 | 4,857 | ||||||||||||
| Net gains on sales of loans | 1,545 | 1,160 | 5,011 | 1,903 | ||||||||||||
| Other-than-temporary impairment losses on securities: | ||||||||||||||||
| Total impairment losses on securities | (360 | ) | (1,761 | ) | (1,293 | ) | (3,237 | ) | ||||||||
| Portion recognized in other comprehensive income (before taxes) | 139 | 1,325 | 731 | 2,183 | ||||||||||||
| Net impairment losses on securities recognized in earnings | (221 | ) | (436 | ) | (562 | ) | (1,054 | ) | ||||||||
| Other losses | (585 | ) | (503 | ) | (1,553 | ) | (894 | ) | ||||||||
| Total non-interest income | 9,756 | 12,384 | 19,905 | 19,554 | ||||||||||||
| NON-INTEREST EXPENSE | ||||||||||||||||
| Salaries and benefits | 57,759 | 49,136 | 112,835 | 95,553 | ||||||||||||
| Occupancy and equipment | 6,322 | 5,864 | 12,248 | 11,103 | ||||||||||||
| Data processing | 3,961 | 4,279 | 7,922 | 7,971 | ||||||||||||
| FDIC assessment fees | 3,655 | 3,021 | 7,468 | 5,907 | ||||||||||||
| Professional fees | 2,524 | 1,860 | 5,458 | 3,923 | ||||||||||||
| Other general and administrative | 10,692 | 8,812 | 20,679 | 18,551 | ||||||||||||
| Total non-interest expense | 84,913 | 72,972 | 166,610 | 143,008 | ||||||||||||
| Income before income taxes | 152,185 | 125,489 | 295,247 | 240,903 | ||||||||||||
| Income tax expense | 61,723 | 53,007 | 121,395 | 102,414 | ||||||||||||
| Net income | $ | 90,462 | 72,482 | 173,852 | 138,489 | |||||||||||
| PER COMMON SHARE DATA | ||||||||||||||||
| Earnings per share – basic | $ | 1.78 | 1.50 | 3.44 | 2.90 | |||||||||||
| Earnings per share – diluted | $ | 1.77 | 1.48 | 3.40 | 2.85 | |||||||||||
| SIGNATURE BANK | ||||||||
| CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||||||||
| June 30, | December 31, | |||||||
| 2015 | 2014 | |||||||
| (dollars in thousands, except per share amounts) | (unaudited) | |||||||
| ASSETS | ||||||||
| Cash and due from banks | $ | 72,017 | 274,247 | |||||
| Short-term investments | 26,190 | 24,831 | ||||||
| Total cash and cash equivalents | 98,207 | 299,078 | ||||||
| Securities available-for-sale | 6,214,148 | 6,073,459 | ||||||
| Securities held-to-maturity (fair value $2,178,537 at June 30, 2015 | ||||||||
| and $2,222,177 at December 31, 2014) | 2,174,158 | 2,208,551 | ||||||
| Federal Home Loan Bank stock | 107,830 | 86,338 | ||||||
| Loans held for sale | 459,683 | 548,297 | ||||||
| Loans and leases, net | 20,354,469 | 17,693,316 | ||||||
| Premises and equipment, net | 40,608 | 40,996 | ||||||
| Accrued interest and dividends receivable | 82,949 | 79,687 | ||||||
| Other assets | 437,417 | 288,918 | ||||||
| Total assets | $ | 29,969,469 | 27,318,640 | |||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Deposits | ||||||||
| Non-interest-bearing | $ | 7,789,035 | 7,064,959 | |||||
| Interest-bearing | 16,666,114 | 15,555,316 | ||||||
| Total deposits | 24,455,149 | 22,620,275 | ||||||
| Federal funds purchased and securities sold under agreements | ||||||||
| to repurchase | 868,000 | 715,000 | ||||||
| Federal Home Loan Bank borrowings | 1,685,163 | 1,335,163 | ||||||
| Accrued expenses and other liabilities | 261,837 | 151,964 | ||||||
| Total liabilities | 27,270,149 | 24,822,402 | ||||||
| Shareholders’ equity | ||||||||
| Preferred stock, par value $.01 per share; 61,000,000 shares authorized; | ||||||||
| none issued at June 30, 2015 and December 31, 2014 | - | - | ||||||
| Common stock, par value $.01 per share; 64,000,000 shares authorized; | ||||||||
| 51,902,571 shares issued and 50,876,365 shares outstanding at June 30, 2015; | ||||||||
| 51,398,685 shares issued and 50,317,609 shares outstanding at December 31, 2014 | 509 | 503 | ||||||
| Additional paid-in capital | 1,380,929 | 1,348,661 | ||||||
| Retained earnings | 1,307,802 | 1,133,950 | ||||||
| Treasury stock, at cost; 36,130 shares at June 30, 2015 and none | ||||||||
| at December 31, 2014 | (4,973 | ) | - | |||||
| Net unrealized gains on securities, net of tax | 15,053 | 13,124 | ||||||
| Total shareholders' equity | 2,699,320 | 2,496,238 | ||||||
| Total liabilities and shareholders' equity | $ | 29,969,469 | 27,318,640 | |||||
| SIGNATURE BANK | ||||||||||||||||||||||
| FINANCIAL SUMMARY, CAPITAL RATIOS, ASSET QUALITY | ||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||
|
Three months ended
June 30, |
Six months ended
June 30, |
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| (in thousands, except ratios and per share amounts) | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||
| PER COMMON SHARE | ||||||||||||||||||||||
| Net income - basic | $ | 1.78 | $ | 1.50 | $ | 3.44 | $ | 2.90 | ||||||||||||||
| Net income - diluted | $ | 1.77 | $ | 1.48 | $ | 3.40 | $ | 2.85 | ||||||||||||||
| Average shares outstanding - basic | 50,809 | 48,270 | 50,582 | 47,797 | ||||||||||||||||||
| Average shares outstanding - diluted | 51,217 | 48,897 | 51,078 | 48,542 | ||||||||||||||||||
| Book value | $ | 53.06 | $ | 45.80 | $ | 53.06 | $ | 45.80 | ||||||||||||||
| SELECTED FINANCIAL DATA | ||||||||||||||||||||||
| Return on average total assets | 1.24% | 1.22% | 1.22% | 1.20% | ||||||||||||||||||
| Return on average shareholders' equity | 13.64% | 13.84% | 13.50% | 13.66% | ||||||||||||||||||
| Efficiency ratio (1) | 34.51% | 35.41% | 34.80% | 35.78% | ||||||||||||||||||
|
Efficiency ratio excluding net gains on sales of securities and net impairment losses on securities recognized in earnings (1) (2) |
34.51% | 36.10% | 34.81% | 36.12% | ||||||||||||||||||
| Yield on interest-earning assets | 3.70% | 3.83% | 3.71% | 3.87% | ||||||||||||||||||
| Cost of deposits and borrowings | 0.47% | 0.56% | 0.49% | 0.57% | ||||||||||||||||||
| Net interest margin | 3.27% | 3.31% | 3.26% | 3.35% | ||||||||||||||||||
| (1) | The efficiency ratio is calculated by dividing non-interest expense by the sum of net interest income before provision for loan and lease losses and non-interest income. | |
| (2) | The efficiency ratio excluding net gains on sales of securities and net impairment losses on securities recognized in earnings 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. This ratio is a metric used by management to evaluate the performance of the Bank's core business activities. | |
|
June 30,
2015 |
March 31,
2015 |
December 31,
2014 |
June 30,
2014 |
||||||||||||
| CAPITAL RATIOS | |||||||||||||||
| Tangible common equity (3) | 9.01% | 9.16% | 9.14% | 9.34% | |||||||||||
| Tier 1 leverage | 9.16% | 9.25% | 9.25% | 9.55% | |||||||||||
| Common equity Tier 1 risk-based (4) | 11.85% | 12.27% | - | - | |||||||||||
| Tier 1 risk-based | 11.85% | 12.27% | 13.49% | 15.65% | |||||||||||
| Total risk-based | 12.63% | 13.08% | 14.39% | 16.69% | |||||||||||
| ASSET QUALITY | |||||||||||||||
| Non-accrual loans | $ | 41,615 | $ | 27,809 | $ | 21,008 | $ | 32,749 | |||||||
| Allowance for loan and lease losses | $ | 177,086 | $ | 170,776 | $ | 164,392 | $ | 150,422 | |||||||
| Allowance for loan and lease losses to non-accrual loans | 425.53% | 614.10% | 782.52% | 459.32% | |||||||||||
| Allowance for loan and lease losses to total loans | 0.86% | 0.88% | 0.92% | 0.98% | |||||||||||
| Non-accrual loans to total loans | 0.20% | 0.14% | 0.12% | 0.21% | |||||||||||
| Quarterly net (charge-offs) recoveries to average loans, annualized | (0.05)% | (0.03)% | 0.00% | (0.02)% | |||||||||||
| (3) | We define tangible common equity as the ratio of tangible common equity to adjusted tangible assets (the "TCE ratio") and calculate this ratio by dividing total consolidated common shareholders' equity by consolidated total assets (we had no intangible assets at any of the dates presented above). 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. | |
| (4) | As part of the final rules implementing Basel III regulatory capital reforms, a new common equity Tier 1 risk-based capital ratio was added to existing minimum capital requirements as of January 1, 2015. | |
|
SIGNATURE BANK |
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| Three months ended | Three months ended | ||||||||||||||||
| June 30, 2015 | June 30, 2014 | ||||||||||||||||
| (dollars in thousands) |
Average |
Interest |
Average |
Average |
Interest |
Average |
|||||||||||
| INTEREST-EARNING ASSETS | |||||||||||||||||
| Short-term investments | $ | 301,149 | 178 | 0.24 | % | 161,550 | 92 | 0.23 | % | ||||||||
| Investment securities | 8,501,414 | 64,706 | 3.04 | % | 8,102,246 | 66,792 | 3.30 | % | |||||||||
| Commercial loans, mortgages and leases | 19,653,963 | 199,156 | 4.06 | % | 14,558,825 | 153,514 | 4.23 | % | |||||||||
| Residential mortgages and consumer loans | 328,843 | 3,042 | 3.71 | % | 343,734 | 3,291 | 3.84 | % | |||||||||
| Loans held for sale | 205,415 | 512 | 1.00 | % | 294,322 | 378 | 0.52 | % | |||||||||
| Total interest-earning assets | 28,990,784 | 267,594 | 3.70 | % | 23,460,677 | 224,067 | 3.83 | % | |||||||||
| Non-interest-earning assets | 367,823 | 361,444 | |||||||||||||||
| Total assets | $ | 29,358,607 | 23,822,121 | ||||||||||||||
| INTEREST-BEARING LIABILITIES | |||||||||||||||||
| Interest-bearing deposits | |||||||||||||||||
| NOW and interest-bearing demand | $ | 1,935,269 | 1,867 | 0.39 | % | 1,171,826 | 1,124 | 0.38 | % | ||||||||
| Money market | 13,939,795 | 20,289 | 0.58 | % | 11,149,980 | 18,416 | 0.66 | % | |||||||||
| Time deposits | 931,854 | 2,630 | 1.13 | % | 1,210,060 | 3,229 | 1.07 | % | |||||||||
| Non-interest-bearing demand deposits | 7,748,568 | - | - | 5,558,813 | - | - | |||||||||||
| Total deposits | 24,555,486 | 24,786 | 0.40 | % | 19,090,679 | 22,769 | 0.48 | % | |||||||||
| Borrowings | 1,951,514 | 6,509 | 1.34 | % | 2,593,345 | 7,584 | 1.17 | % | |||||||||
| Total deposits and borrowings | 26,507,000 | 31,295 | 0.47 | % | 21,684,024 | 30,353 | 0.56 | % | |||||||||
| Other non-interest-bearing liabilities | |||||||||||||||||
| and shareholders' equity | 2,851,607 | 2,138,097 | |||||||||||||||
| Total liabilities and shareholders' equity | $ | 29,358,607 | 23,822,121 | ||||||||||||||
| OTHER DATA | |||||||||||||||||
| Net interest income / interest rate spread | 236,299 | 3.23 | % | 193,714 | 3.27 | % | |||||||||||
| Net interest margin | 3.27 | % | 3.31 | % | |||||||||||||
| Ratio of average interest-earning assets | |||||||||||||||||
| to average interest-bearing liabilities | 109.37 | % | 108.19 | % | |||||||||||||
| SIGNATURE BANK | |||||||||||||||||
| NET INTEREST MARGIN ANALYSIS | |||||||||||||||||
| (unaudited) | |||||||||||||||||
| Six months ended | Six months ended | ||||||||||||||||
| June 30, 2015 | June 30, 2014 | ||||||||||||||||
| (dollars in thousands) |
Average |
Interest |
Average |
Average |
Interest |
Average |
|||||||||||
| INTEREST-EARNING ASSETS | |||||||||||||||||
| Short-term investments | $ | 389,094 | 466 | 0.24 | % | 166,995 | 188 | 0.23 | % | ||||||||
| Investment securities | 8,533,169 | 132,020 | 3.09 | % | 8,056,596 | 133,354 | 3.31 | % | |||||||||
| Commercial loans, mortgages and leases | 18,880,787 | 381,788 | 4.08 | % | 14,011,143 | 298,317 | 4.29 | % | |||||||||
| Residential mortgages and consumer loans | 331,828 | 6,174 | 3.75 | % | 346,623 | 6,655 | 3.87 | % | |||||||||
| Loans held for sale | 205,410 | 1,108 | 1.09 | % | 316,019 | 1,321 | 0.84 | % | |||||||||
| Total interest-earning assets | 28,340,288 | 521,556 | 3.71 | % | 22,897,376 | 439,835 | 3.87 | % | |||||||||
| Non-interest-earning assets | 331,760 | 364,852 | |||||||||||||||
| Total assets | $ | 28,672,048 | 23,262,228 | ||||||||||||||
| INTEREST-BEARING LIABILITIES | |||||||||||||||||
| Interest-bearing deposits | |||||||||||||||||
| NOW and interest-bearing demand | $ | 1,856,637 | 3,587 | 0.39 | % | 1,061,578 | 2,022 | 0.38 | % | ||||||||
| Money market | 13,697,667 | 40,607 | 0.60 | % | 10,714,903 | 36,016 | 0.68 | % | |||||||||
| Time deposits | 947,240 | 5,408 | 1.15 | % | 1,213,637 | 6,402 | 1.06 | % | |||||||||
| Non-interest-bearing demand deposits | 7,471,156 | - | - | 5,445,571 | - | - | |||||||||||
| Total deposits | 23,972,700 | 49,602 | 0.42 | % | 18,435,689 | 44,440 | 0.49 | % | |||||||||
| Borrowings | 1,925,317 | 13,158 | 1.38 | % | 2,760,517 | 15,213 | 1.11 | % | |||||||||
| Total deposits and borrowings | 25,898,017 | 62,760 | 0.49 | % | 21,196,206 | 59,653 | 0.57 | % | |||||||||
| Other non-interest-bearing liabilities | |||||||||||||||||
| and shareholders' equity | 2,774,031 | 2,066,022 | |||||||||||||||
| Total liabilities and shareholders' equity | $ | 28,672,048 | 23,262,228 | ||||||||||||||
| OTHER DATA | |||||||||||||||||
| Net interest income / interest rate spread | 458,796 | 3.22 | % | 380,182 | 3.30 | % | |||||||||||
| Net interest margin | 3.26 | % | 3.35 | % | |||||||||||||
| Ratio of average interest-earning assets | |||||||||||||||||
| to average interest-bearing liabilities | 109.43 | % | 108.03 | % | |||||||||||||
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 excluding the after tax effect of net gains on sales of securities and net impairment losses on securities recognized in earnings, (ii) tangible common equity ratio, (iii) efficiency ratio excluding net gains on sales of securities and net impairment losses on securities recognized in earnings, and (iv) core net interest margin 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 a reconciliation of net income and diluted earnings per share (as reported) to net income and diluted earnings per share excluding the after tax effect of gains from the sales of securities and net impairment losses on securities recognized in earnings:
|
Three months ended
June 30, |
Six months ended
June 30, |
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| (dollars in thousands, except per share amounts) | 2015 | 2014 | 2015 | 2014 | ||||||||||||
| Net income (as reported) | $ | 90,462 | 72,482 | 173,852 | 138,489 | |||||||||||
| Net gains on sales of securities | (203 | ) | (4,412 | ) | (621 | ) | (4,857 | ) | ||||||||
| Net impairment losses on securities recognized in earnings | 221 | 436 | 562 | 1,054 | ||||||||||||
| Tax effect | (7 | ) | 1,679 | 25 | 1,605 | |||||||||||
| Net income - excluding after tax effect of net gains on sales of securities | ||||||||||||||||
| and net impairment losses on securities recognized in earnings | $ | 90,473 | 70,185 | 173,818 | 136,291 | |||||||||||
| Diluted earnings per share (as reported) | $ | 1.77 | 1.48 | 3.40 | 2.85 | |||||||||||
| Net gains on sales of securities | - | (0.08 | ) | (0.01 | ) | (0.09 | ) | |||||||||
| Net impairment losses on securities recognized in earnings | - | 0.01 | 0.01 | 0.02 | ||||||||||||
| Tax effect | - | 0.03 | - | 0.03 | ||||||||||||
| Diluted earnings per share - excluding after tax effect of net gains on sales of securities | ||||||||||||||||
| and net impairment losses on securities recognized in earnings | $ | 1.77 | 1.44 | 3.40 | 2.81 | |||||||||||
| The following table reconciles net interest margin (as reported) to core net interest margin excluding loan prepayment penalty income: | ||||||||||||||||
|
Three months ended
June 30, |
Six months ended
June 30, |
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| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| Net interest margin (as reported) | 3.27 | % | 3.31 | % | 3.26 | % | 3.35 | % | ||||||||
| Margin contribution from loan prepayment penalty income | (0.10 | )% | (0.09 | )% | (0.10 | )% | (0.12 | )% | ||||||||
| Core net interest margin - excluding loan prepayment penalty income | 3.17 | % | 3.22 | % | 3.16 | % | 3.23 | % | ||||||||
