Signature Bank: Still Deserving Of A Premium Multiple
Signature Bank: Fantastic Story To Own
Johannes Salim, CFA
Johannes Salim, CFA
The Beat And Raise Is The Mark Of Signature Bank
Wed, Jul. 20, 3:37 PM
- Signature Bank (SBNY -4.7%) missed Q2 estimates after boosting provisions by $24.3M for loan losses on it Chicago taxi medallion loans. The bank's total provision in Q2 was $33.3M vs. $19.8M in Q1 and $9M a year ago.
- Signature now has an allowance for loan losses of 30% on its Chicago medallion loans.
- FBR takes note of stabilization in NYC taxi medallions, noting SBNY was able to get improved pricing on sales of 18 of them in Q2. The bank's taxi net exposure was 2% of loans and 16% of tangible common equity at the end of Q2 vs. 3% of loans and 30% of tangible common equity in Q1.
Wed, Jul. 20, 5:45 AM
Tue, Jul. 19, 5:30 PM
Mon, Jun. 27, 10:16 AM
- No financial name will be immune to the downside from rates lower for longer post-Brexit, says Ken Usdin, but KeyCorp (KEY -3.8%) could fare better than peers. The lender, he says, is less needful of higher rates, less sensitive to the energy sector, and has the positive catalyst of the First Niagara purchase (expected to close in Q3). He reiterates a Buy rating and $14.50 price target (vs. current $10.58).
- Ken Usdin ranks #922 out of #3,980 analysts on TipRanks.
- The price action in Signature Bank (SBNY -3.1%) looks overdone, says Casey Haire, thanks to bank's attractive relative valuation, weak asset sensitivity profile and strong organic loan prospects. He maintains a Buy rating and $162 price target (vs. current $118).
- Also overdone is the action is Western Alliance Bancorp (WAL -3.4%), he says, noting the bank has been planning for a lower for longer rate policy. He maintains a Buy and $42 PT (vs. current $30.41).
- Casey Haire ranks #133 on TipRanks.
Tue, Jun. 21, 9:49 AM
- The former highflier has had a rough few months, falling about 20% from a late 2015 peak - this after a major run higher in the preceding years.
- Raymond James upgrades to Strong Buy from Outperform.
- SBNY +1%
Tue, May 24, 9:38 AM
- Worried about Fed rate hikes pushing the greenback up higher? Focus on growing companies deriving at least 80% of sales from the U.S., says Jefferies' Steven DeSanctis.
- He notes the dollar peaked on Jan. 20, and sectors with big overseas exposure have outperformed since. However, with higher interest rates looking like they might send the dollar back into an uptrend, it's time to refocus on companies less reliant on exports.
- DeSanctis and team identified 27 small- and mid-cap companies that were: In the Russell 2500 and Buy-rated by Jefferies, have less than 20% of sales outside of U.S., "sit in the highest two quintiles" based on ROE, and have market values north of $2B.
- Of that group, they picked ten showing the highest growth of sales per share (though a tie brought the total to 11): Paycom Software (NYSE:PAYC), Lithia Motors (NYSE:LAD), Centene Corp. (NYSE:CNC), Molina Healthcare (NYSE:MOH), Five Below (NASDAQ:FIVE), Mednax (NYSE:MD), Western Alliance Bancorp (NYSE:WAL), Signature Bank (NASDAQ:SBNY), KAR Auction (NYSE:KAR), Science Applications (NYSE:SAIC), and Urban Outfitters (NASDAQ:URBN).
Wed, Apr. 20, 5:31 AM
Tue, Apr. 19, 5:30 PM
Tue, Apr. 12, 11:36 AM
- Ahead of Q1 reporting season, Deutsche says it remains constructive on group valuations, noting the industry's relative weakness vs. the S&P 500 is at about its highest in the last 13 years. Top picks:
- FCB Financial (NYSE:FCB), with material excess capital, pristine credit, solid growth, and good expense control. The team considers the bank to be its top "take-out play."
- Great Western Bancorp (NYSE:GWB), with mid-to-upper teens EPS and ROTCE growth this coming year which isn't dependent on rate hikes.
- Signature Bank (NASDAQ:SBNY), which the team expects will achieve double the rate of EPS growth of the peer group.
- The team also upgrades BankUnited to a Buy.
- Now read: Why I'm Going Against Consensus And Shorting Signature Bank
Thu, Jan. 21, 4:22 PM
- The lender is selling 2.2M shares in a secondary offering. The underwriter greenshoe is for another 330K shares.
- Signature (NASDAQ:SBNY) has fared better than most, down 9% YTD, but up 19% Y/Y. The stock's lower by 1.4% after hours.
Thu, Jan. 21, 5:05 AM
- Signature Bank (NASDAQ:SBNY): Q4 EPS of $2.01 beats by $0.08.
- Revenue of $277.68M (+24.5% Y/Y) beats by $9.1M.
Wed, Jan. 20, 5:30 PM
Dec. 17, 2015, 10:40 AM
- Raymond James is selling the Fed rate hike news after solid gains for a number of recommended bank names.
- Downgraded to Outperform from Strong Buy are Signature Bank (SBNY +0.2%) and Yadkin Financila (YDKN) - both ahead more than 25% year-to-date.
- Cut to Neutral from Outperform are Sierra Bancorp (BSRR +2.6%), Pacific Continental (PCBK +0.5%), Lakeland Financial (LKFN -1.7%), and Hilltop Holdings (HTH +0.1%).
Oct. 20, 2015, 5:13 AM
- Signature Bank (NASDAQ:SBNY): Q3 EPS of $1.88 beats by $0.06.
- Revenue of $257.82M (+20.9% Y/Y) in-line.
Oct. 19, 2015, 5:30 PM
Jul. 24, 2015, 3:31 PM
- Goldman's (GS -1.8%) Q2 results confirmed the team's expectation of positive revisions to 2016 consensus EPS. Zions (ZION -0.7%) has "multiple catalysts" to reach improve profitability goals and EPS growth over the next three years.
- Guggenheim's four key investment themes: 1) Names levered to improving M&A, with Goldman being the best idea, followed by Morgan Stanley (MS -1.3%); 2) Restructuring stories, with Zions the best idea, but First Horizon (FHN -1%), Ally Financial (ALLY -1.8%), and BofA (BAC -1.6%) also worth looking at; 3) Idiosyncratic growth stories like MasterCard (MA +0.7%), Visa (V +4.5%), Synchrony Financial (SYF -2.4%), and Signature Bank (SBNY -0.8%); 4) Names with a distinct M&A catalyst in the regionals group like BB&T (BBT -1.5%), CIT Group (CIT -1.6%), and Springleaf (LEAF -1.4%).
- Mixed results from credit card companies affirm the team's preference for SYF, but the risk/reward at AmEx (AXP -1.4%) is improving. AmEx, CapOne (COF -13%), and Discover (DFS -2.7%) results show the boosted competition they face form the banks, which is slowing growth, and lifting marketing and rewards costs.
- Source: Barron's
- Previously: Capital One tumbles after earnings miss and trio of downgrades (July 24)
Signature Bank operates as a state chartered commercial bank. It offers a wide variety of business and personal banking products and services, as well as investment, brokerage, asset management and insurance products and services through its subsidiary, Signature Securities Group Corp., licensed... More
Industry: Regional - Northeast Banks
Country: United States
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