Ashleigh Rogers
Long/short equity, growth at reasonable price, value, banks

The Beat And Raise Is The Mark Of Signature Bank

In an increasingly expensive market for financial firms characterized by unproven hopes for increasing earnings, NYC-based Signature Bank (NASDAQ:SBNY) stands out for delivering the goods. Despite having a small footprint with less than 30 offices, SBNY has consistently grown both earnings and revenues over the last four years. With solid deposit, revenue, and specialty income growth backed by extremely solid credit metrics, Signature looks likely to continue this performance for the foreseeable future.

Thesis

Earnings tripled between 2009 and 2012 ($1.31 to $3.91), and should grow 20% YOY again this year when the firm reports fourth quarter results in a month. (My full year 2013 estimate is for $4.67.) 2014 EPS should grow another 15-20% (My estimate is...

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