- Net Income for the 2022 Third Quarter Increased $117.0
Million, or 48.5 Percent, to a Record $358.5 Million, or $5.57
Diluted Earnings Per Share, Versus $241.4 Million, or $3.88 Diluted
Earnings Per Share, Reported in the 2021 Third Quarter. Pre-Tax,
Pre-Provision Earnings for the 2022 Third Quarter Were a Record
$492.3 Million, an Increase of $161.3 Million, or 48.7 Percent,
Compared with $331.0 Million for the 2021 Third Quarter
- Return on Common Equity Reaches a Record 18.4 Percent for
the 2022 Third Quarter
- Total Deposits in the Third Quarter Declined $1.34 Billion
to $102.78 Billion. The Decline Was Primarily Driven by the Digital
Asset Banking Team, Which Declined $3.0 Billion. This Decrease was
Offset by Deposit Growth of $1.7 Billion Coming From Other
Businesses. Total Deposits for the Prior Twelve Months Have Grown
$7.21 Billion, or 7.5 Percent
- For the 2022 Third Quarter, Loans Increased $1.84 Billion,
or 2.6 Percent, to $73.84 Billion. Since the End of the 2021 Third
Quarter, Loans Have Increased 26.0 Percent, or $15.25
Billion
- For the 2022 Third Quarter, Non-Accrual Loans Increased
$17.4 Million to $185.3 Million, or 0.25 Percent of Total Loans, at
September 30, 2022, Versus $167.9 Million, or 0.23 Percent, at the
End of the 2022 Second Quarter
- Net Interest Margin on a Tax-Equivalent Basis Increased to
2.38 Percent, Compared With 2.23 Percent for the 2022 Second
Quarter and 1.88 Percent for the 2021 Third Quarter
- Tier 1 Leverage, Common Equity Tier 1 Risk-Based, Tier 1
Risk-Based, and Total Risk-Based Capital Ratios were 8.47 Percent,
10.11 Percent, 10.90 Percent, and 11.99 Percent, Respectively, at
September 30, 2022. Signature Bank Remains Significantly Above FDIC
“Well Capitalized” Standards. Tangible Common Equity Ratio was 6.10
Percent
- The Bank Declared a Cash Dividend of $0.56 Per Share,
Payable on or After November 10, 2022 to Common Shareholders of
Record at the Close of Business on October 28, 2022. The Bank Also
Declared a Cash Dividend of $12.50 Per Share Payable on or After
December 30, 2022 to Preferred Shareholders of Record at the Close
of Business on December 16, 2022
- In the 2022 Third Quarter, the Bank Hired Two Private Client
Banking Teams; One in New York and One on the West Coast. This
Brings the Total Teams Hired to 12 for the Year. Additionally, Our
Newest National Banking Practice, the Health Care Banking and
Finance Team, Launched in the Second Quarter of 2022
Signature Bank (Nasdaq: SBNY), a New York-based full-service
commercial bank, today announced results for its third quarter
ended September 30, 2022.
Net income for the 2022 third quarter was a record $358.5
million, or $5.57 diluted earnings per share, versus $241.4
million, or $3.88 diluted earnings per share, for the 2021 third
quarter. The increase in net income for the 2022 third quarter,
versus the comparable quarter last year, is primarily the result of
an increase in net interest income, fueled by strong loan and
securities growth, higher interest rates, as well as the
utilization of our excess cash. Pre-tax, pre-provision earnings
were a record $492.3 million, representing an increase of $161.3
million, or 48.7 percent, compared with $331.0 million for the 2021
third quarter.
Net interest income for the 2022 third quarter reached $674.0
million, up $193.1 million, or 40.2 percent, when compared with the
2021 third quarter. This increase is primarily due to growth in
average interest-earning assets, higher prevailing market interest
rates, and the utilization of our excess cash. Total assets reached
$114.47 billion at September 30, 2022, an increase of $6.62
billion, or 6.1 percent, from $107.85 billion at September 30,
2021. Average assets for the 2022 third quarter reached $114.60
billion, an increase of $12.11 billion, or 11.8 percent, compared
with the 2021 third quarter.
Deposits for the 2022 third quarter decreased $1.34 billion to
$102.78 billion, including a non-interest bearing deposit reduction
of $4.03 billion, which brings our non-interest bearing mix to 36.4
percent of deposits at September 30, 2022. Overall deposit growth
for the last twelve months was 7.5 percent, or $7.21 billion.
Average deposits for the 2022 third quarter reached $102.66
billion, a decrease of $4.03 billion when compared with the prior
quarter.
“Throughout the past two decades, Signature Bank has continued
to emerge a stronger institution, despite navigating challenging
economic landscapes at times. The Bank’s ongoing success is
directly attributed to our deliberate focus on what we can control,
as well as the distinctive competitive advantages of our
enterprise. These include our ability to recruit best-in-class
banking teams and national lending practices affording them the
platform needed to service their clients. The strong relationships
our colleagues forge today are the foundation of the franchise we
are growing for tomorrow. As Warren Buffett once said, ‘Someone is
sitting in the shade today because someone planted a tree a long
time ago.’ This theme is the basis on which we service each and
every client who selected Signature Bank as their bank-of-choice,”
said Joseph J. DePaolo, Signature Bank President and Chief
Executive Officer.
“We have always preferred to assess our performance based on the
metrics we can control — such as growth in client relationships —
rather than on external macroeconomic forces beyond our control.
Through our founding single-point-of-contact model — which delivers
high levels of client care and service — we have maintained strong
client relationships while also adding many new ones across all our
business lines. During the 2022 third quarter, the Bank added over
1,000 new client business relationships across the institution. The
momentum that continues to build on the client expansion front
today translates into deep relationships that bear fruit from that
shady tree tomorrow,” DePaolo concluded.
Scott A. Shay, Chairman of the Board, added: “It is during
tumultuous times that Signature Bank’s strengths really stand out.
Our Group Directors and National Banking Practice Leaders act as
trusted advisors to our clients and foster a feeling that we are
all in it together.
"As Joe alluded to, the Bank put several long-term strategies in
place to grow its business and serve more clients. To this end, our
innovations in the digital world with our Signet™ payments platform
helped our clients better operate their businesses. As the payment
space further evolves, so will Signature Bank, ensuring our clients
and shareholders benefit from new developments.
"Our technology advancements, client retention and expansion and
business diversification all contributed to the $114.47 billion in
assets we reached in the third quarter. These efforts, coupled with
exceptional returns on capital, excellent credit metrics and an
emphasis on safe, less risky assets, continues to shape the future
successes of Signature Bank."
Net Interest Income
Net interest income for the 2022 third quarter was $674.0
million, an increase of $193.1 million, or 40.2 percent, when
compared with the same period last year, primarily due to growth in
average interest-earning assets and higher prevailing market
interest rates. Average interest-earning assets of $112.61 billion
for the 2022 third quarter represent an increase of $10.95 billion,
or 10.8 percent, from the 2021 third quarter. Due to higher
interest rates across all of our asset classes, the yield on
interest-earning assets for the 2022 third quarter increased 127
basis points to 3.45 percent, compared to the third quarter of last
year.
Average cost of deposits and average cost of funds for the third
quarter of 2022 increased by 89 and 82 basis points, to 1.11
percent and 1.14 percent, respectively, versus the comparable
period a year ago.
Net interest margin on a tax-equivalent basis for the 2022 third
quarter was 2.38 percent versus 1.88 percent reported in the 2021
third quarter and 2.23 percent in the 2022 second quarter.
Provision for Credit Losses
The Bank’s provision for credit losses for the third quarter of
2022 was $29.1 million, compared with $4.2 million for the 2022
second quarter and $4.0 million for the 2021 third quarter. The
increase in the provision for credit losses for the 2022 third
quarter, compared to the same quarter last year, was predominantly
attributable to a deteriorating macroeconomic forecast compared
with the same period last year.
Net charge offs for the 2022 third quarter were $10.2 million,
or 0.06 percent of average loans, on an annualized basis, versus
19.7 million, or 0.11 percent, for the 2022 second quarter and net
charge offs of $17.3 million, or 0.12 percent, for the 2021 third
quarter.
Non-Interest Income and Non-Interest Expense
Non-interest income for the 2022 third quarter was $43.8
million, up $12.4 million when compared with $31.4 million reported
in the 2021 third quarter. The increase was primarily driven by a
$9.0 million increase in fees and service charges and a $4.8
million increase in other income, including foreign currency
activity, as well as mark-to-market gains related to our
non-hedging derivatives.
Non-interest expense for the third quarter of 2022 was $225.5
million, an increase of $44.2 million, or 24.4 percent, versus
$181.2 million reported in the 2021 third quarter. The increase was
predominantly due to the addition of new private client banking
teams, national banking practices, and operational personnel, as
well as client activity related expenses that have increased with
the growth in our clients and businesses.
Despite the significant team hiring, the launch of the
Healthcare Banking and Finance team, and considerable operational
investment, the Bank’s efficiency ratio was 31.4 percent for the
2022 third quarter compared with 35.4 percent for the same period a
year ago, and 30.6 percent for the second quarter of 2022.
Income Taxes
Income tax expense for the third quarter of 2022 included an
increase in tax benefits associated with sustainable finance
lending. This lowered our quarterly effective tax rate to 22.6
percent compared with 26.2 percent for the same period a year ago,
and 28.2 percent for the second quarter of 2022.
Loans
Loans, excluding loans held for sale, grew $1.84 billion, or 2.6
percent, during the third quarter of 2022 to $73.84 billion,
compared with $72.00 billion at June 30, 2022. Average loans,
excluding loans held for sale, reached $73.47 billion in the 2022
third quarter, growing $4.80 billion, or 7.0 percent, from the 2022
second quarter and $18.01 billion, or 32.5 percent, from the 2021
third quarter.
At September 30, 2022, non-accrual loans were $185.3 million,
representing 0.25 percent of total loans and 0.16 percent of total
assets, compared with non-accrual loans of $167.9 million, or 0.23
percent of total loans, at June 30, 2022 and $165.4 million, or
0.28 percent of total loans, at September 30, 2021. The ratio of
allowance for credit losses for loans and leases to total loans at
September 30, 2022 was 0.63 percent, versus 0.62 percent at June
30, 2022 and 0.85 percent at September 30, 2021. Additionally, the
ratio of allowance for credit losses for loans and leases to
non-accrual loans, or the coverage ratio, was 251 percent for the
2022 third quarter versus 266 percent for the second quarter of
2022 and 303 percent for the 2021 third quarter.
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 8.47 percent, 10.11 percent, 10.90 percent, and 11.99
percent, respectively, as of September 30, 2022. 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 declared a cash dividend of $0.56 per share, payable on
or after November 10, 2022 to common stockholders of record at the
close of business on October 28, 2022. The Bank also declared a
cash dividend of $12.50 per share payable on December 30, 2022 to
preferred shareholders of record at the close of business on
December 16, 2022. In the third quarter of 2022, the Bank paid a
cash dividend of $0.56 per share to common stockholders of record
at the close of business on July 29, 2022. The Bank also paid a
cash dividend of $12.50 per share to preferred shareholders of
record at the close of business on September 16, 2022.
Conference Call
Signature Bank’s management will host a conference call to
review results of its 2022 third quarter on Tuesday, October 18,
2022, at 9:00 AM ET. All participants should dial 800-225-9448 and
international callers should dial 203-518-9708, at least ten
minutes prior to the start of the call and reference conference ID
SBNYQ322.
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,”
"Quarterly Results/Conference Calls" to access the link to the
call.
An earnings slide presentation accompanying the call will be
accessible through the live web cast and available on Signature
Bank’s website here.
To listen to a telephone replay of the conference call, please
dial 800-723-0520 or 402-220-2653. The replay will be available
from approximately 12:00 PM ET on Tuesday, October 18, 2022 through
11:59 PM ET on Friday, October 21, 2022.
About Signature Bank
Signature Bank, member FDIC, is a New York-based full-service
commercial bank with 40 private client offices throughout the
metropolitan New York area, as well as those in Connecticut,
California and North Carolina. Through its single-point-of-contact
approach, the Bank’s private client banking teams primarily serve
the needs of privately owned businesses, their owners and senior
managers. The Bank has two wholly owned subsidiaries: Signature
Financial, LLC, provides equipment finance and leasing; and,
Signature Securities Group Corporation, a licensed broker-dealer,
investment adviser and member FINRA/SIPC, offers investment,
brokerage, asset management and insurance products and services.
Signature Bank was the first FDIC-insured bank to launch a
blockchain-based digital payments platform. Signet™ allows
commercial clients to make real-time payments in U.S. dollars,
24/7/365 and was also the first blockchain-based solution to be
approved for use by the NYS Department of Financial Services.
Signature Bank placed 19th on S&P Global’s list of the
largest banks in the U.S., based on deposits.
For more information, please visit
https://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.
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 expectations
regarding future results, interest rates and the interest rate
environment, loan and deposit growth, loan performance, operations,
new private client teams' hires, new office openings, business
strategy and the impact of the COVID-19 pandemic on each of the
foregoing and on our business overall. Forward-looking statements
often include words such as "may," "believe," "expect,"
"anticipate," "intend," “potential,” “opportunity,” “could,”
“project,” “seek,” “target,” “goal,” “should,” “will,” “would,”
"plan," "estimate" or other similar expressions. Forward-looking
statements may also address our sustainability progress, plans, and
goals (including climate change and environmental-related matters
and disclosures), which may be based on standards for measuring
progress that are still developing, internal controls and processes
that continue to evolve, and assumptions that are subject to change
in the future. 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; (vi) our ability to
maintain the continuity, integrity, security and safety of our
operations and (vii) competition for qualified personnel and
desirable office locations. All of these factors are subject to
additional uncertainty in the context of the COVID-19 pandemic and
the conflict in Ukraine, which are having impacts on all aspects of
our operations, the financial services industry and the economy as
a whole. Additional risks are described in our quarterly and annual
reports filed with the FDIC. 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.
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.
FINANCIAL TABLES ATTACHED
SIGNATURE BANK
CONSOLIDATED STATEMENTS OF
INCOME
(unaudited)
Three months ended September
30,
Nine months ended September
30,
(dollars in thousands, except per share
amounts)
2022
2021
2022
2021
INTEREST INCOME
Loans and leases
$
763,200
480,771
1,896,920
1,376,500
Loans held for sale
4,220
1,625
8,397
3,202
Securities available-for-sale
106,771
47,325
279,731
135,923
Securities held-to-maturity
29,524
12,549
74,635
38,750
Other investments
72,638
13,450
133,413
29,697
Total interest income
976,353
555,720
2,393,096
1,584,072
INTEREST EXPENSE
Deposits
286,036
51,272
438,380
163,724
Federal funds purchased and securities
sold under agreements to repurchase
602
602
1,779
1,799
Federal Home Loan Bank borrowings
9,558
16,803
37,834
51,045
Subordinated debt
6,167
6,167
18,448
22,900
Total interest expense
302,363
74,844
496,441
239,468
Net interest income before provision for
credit losses
673,990
480,876
1,896,655
1,344,604
Provision for credit losses
29,066
3,985
36,009
43,165
Net interest income after provision for
credit losses
644,924
476,891
1,860,646
1,301,439
NON-INTEREST INCOME
Fees and service charges
29,005
20,032
76,485
53,567
Commissions
4,490
4,331
12,998
12,233
Net losses on sales of securities
—
—
(816
)
—
Net gains on sales of loans
2,132
3,651
8,427
14,104
Other (loss) income
8,124
3,353
18,723
7,532
Total non-interest income
43,751
31,367
115,817
87,436
NON-INTEREST EXPENSE
Salaries and benefits
133,491
116,924
393,331
335,781
Occupancy and equipment
13,882
11,761
38,494
34,313
Information technology
15,401
13,230
44,885
35,433
FDIC assessment fees
7,661
6,896
23,602
17,107
Professional fees
11,937
9,981
33,456
22,401
Other general and administrative
43,089
22,451
95,119
74,618
Total non-interest expense
225,461
181,243
628,887
519,653
Income before income taxes
463,214
327,015
1,347,576
869,222
Income tax expense
104,747
85,592
311,373
222,773
Net income
$
358,467
241,423
1,036,203
646,449
Preferred stock dividends
9,125
9,125
27,375
28,762
Net income available to common
shareholders
$
349,342
232,298
1,008,828
617,687
PER COMMON SHARE DATA
Earnings per common share - basic
$
5.59
3.91
16.21
10.79
Earnings per common share - diluted
$
5.57
3.88
16.11
10.68
Dividends per common share
$
0.56
0.56
1.68
1.68
SIGNATURE BANK
CONSOLIDATED STATEMENTS OF FINANCIAL
CONDITION
September 30,
December 31,
2022
2021
(dollars in thousands, except shares and
per share amounts)
(unaudited)
ASSETS
Cash and due from banks
$
11,324,426
29,547,574
Short-term investments
145,495
73,097
Total cash and cash equivalents
11,469,921
29,620,671
Securities available-for-sale (amortized
cost $21,000,568 at September 30, 2022 and $17,398,906 at December
31, 2021); (zero allowance for credit losses at September 30, 2022
and at December 31, 2021)
18,469,771
17,152,863
Securities held-to-maturity (fair value
$6,806,774 at September 30, 2022 and $4,944,777 at December 31,
2021); (allowance for credit losses $25 at September 30, 2022 and
$56 at December 31, 2021)
7,576,588
4,998,281
Federal Home Loan Bank stock
118,118
166,697
Loans held for sale
524,871
386,765
Loans and leases
73,840,078
64,862,798
Allowance for credit losses for loans and
leases
(464,858
)
(474,389
)
Loans and leases, net
73,375,220
64,388,409
Premises and equipment, net
111,457
92,232
Operating lease right-of-use assets
256,458
225,988
Accrued interest and dividends
receivable
402,915
306,827
Other assets
2,163,427
1,106,694
Total assets
$
114,468,746
118,445,427
LIABILITIES AND SHAREHOLDERS'
EQUITY
Deposits
Non-interest-bearing
$
37,375,416
44,363,215
Interest-bearing
65,400,098
61,769,579
Total deposits
102,775,514
106,132,794
Federal funds purchased and securities
sold under agreements to repurchase
150,000
150,000
Federal Home Loan Bank borrowings
1,454,738
2,639,245
Subordinated debt
571,280
570,228
Operating lease liabilities
286,280
254,660
Accrued expenses and other liabilities
1,540,411
857,882
Total liabilities
106,778,223
110,604,809
Shareholders’ equity
Preferred stock, par value $.01 per share;
61,000,000 shares authorized; 730,000 shares issued and outstanding
at September 30, 2022 and December 31, 2021
7
7
Common stock, par value $.01 per share;
125,000,000 shares authorized; 63,063,150 shares issued and
62,927,326 outstanding at September 30, 2022; 60,729,674 shares
issued and 60,631,944 outstanding at December 31, 2021
629
606
Additional paid-in capital
4,539,428
3,763,810
Retained earnings
5,201,514
4,298,527
Accumulated other comprehensive loss
(2,051,055
)
(222,332
)
Total shareholders' equity
7,690,523
7,840,618
Total liabilities and shareholders'
equity
$
114,468,746
118,445,427
SIGNATURE BANK
FINANCIAL SUMMARY, CAPITAL RATIOS,
ASSET QUALITY
(unaudited)
Three months ended September
30,
Nine months ended September
30,
(in thousands, except ratios and per share
amounts)
2022
2021
2022
2021
PER COMMON SHARE
Earnings per common share - basic
$
5.59
$
3.91
$
16.21
$
10.79
Earnings per common share - diluted
$
5.57
$
3.88
$
16.11
$
10.68
Weighted average common shares outstanding
- basic
62,440
59,284
62,186
57,152
Weighted average common shares outstanding
- diluted
62,674
59,745
62,597
57,740
Book value per common share
$
110.96
$
114.97
$
110.96
$
114.97
SELECTED FINANCIAL DATA
Return on average total assets
1.24
%
0.93
%
1.18
%
0.95
%
Return on average common shareholders'
equity
18.42
%
13.63
%
17.93
%
13.44
%
Efficiency ratio (1)
31.41
%
35.38
%
31.25
%
36.29
%
Yield on interest-earning assets
3.44
%
2.17
%
2.76
%
2.34
%
Yield on interest-earning assets,
tax-equivalent basis (1)(2)
3.45
%
2.18
%
2.77
%
2.35
%
Cost of deposits and borrowings
1.14
%
0.32
%
0.62
%
0.38
%
Net interest margin
2.37
%
1.88
%
2.19
%
1.99
%
Net interest margin, tax-equivalent basis
(2)(3)
2.38
%
1.88
%
2.20
%
1.99
%
(1)
See "Non-GAAP Financial Measures"
for related calculation.
(2)
Based on the 21 percent U.S.
federal statutory tax rate for the periods presented. The
tax-equivalent basis is considered 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 impact of
tax-exempt assets on the Bank's yield on interest-earning assets
and net interest margin.
(3)
See "Net Interest Margin
Analysis" for related calculation.
September 30,
2022
June 30, 2022
December 31,
2021
September 30,
2021
CAPITAL RATIOS
Tangible common equity (4)
6.10
%
6.31
%
6.02
%
6.45
%
Tier 1 leverage (5)
8.47
%
7.92
%
7.27
%
7.83
%
Common equity Tier 1 risk-based (5)
10.11
%
9.99
%
9.60
%
10.49
%
Tier 1 risk-based (5)
10.90
%
10.79
%
10.51
%
11.53
%
Total risk-based (5)
11.99
%
11.88
%
11.76
%
12.96
%
ASSET QUALITY
Non-accrual loans
$
185,300
$
167,889
$
218,295
$
165,384
Allowance for credit losses for loans and
leases (ACLLL)
$
464,858
$
445,965
$
474,389
$
500,862
ACLLL to non-accrual loans
250.87
%
265.63
%
217.32
%
302.85
%
ACLLL to total loans
0.63
%
0.62
%
0.73
%
0.85
%
Non-accrual loans to total loans
0.25
%
0.23
%
0.34
%
0.28
%
Quarterly net charge-offs to average
loans, annualized
0.06
%
0.11
%
0.22
%
0.12
%
(4)
We define tangible common equity
as the ratio of total tangible common equity to total tangible
assets (the "TCE ratio"). 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.
(5)
September 30, 2022 ratios are
preliminary.
SIGNATURE BANK
NET INTEREST MARGIN ANALYSIS
(unaudited)
Three months ended September 30,
2022
Three months ended September 30,
2021
(dollars in thousands)
Average Balance
Interest Income/
Expense
Average Yield/ Rate
Average Balance
Interest Income/
Expense
Average Yield/ Rate
INTEREST-EARNING ASSETS
Short-term investments
$
11,841,743
70,187
2.37
%
29,167,303
11,399
0.16
%
Investment securities
26,692,621
138,746
2.08
%
16,579,859
61,925
1.49
%
Commercial loans, mortgages and leases
73,351,038
764,036
4.13
%
55,309,881
481,360
3.45
%
Residential mortgages and consumer
loans
114,959
1,135
3.92
%
144,144
1,187
3.27
%
Loans held for sale
609,232
4,220
2.75
%
460,689
1,625
1.40
%
Total interest-earning assets (1)
112,609,593
978,324
3.45
%
101,661,876
557,496
2.18
%
Non-interest-earning assets
1,988,330
823,307
Total assets
$
114,597,923
102,485,183
INTEREST-BEARING LIABILITIES
Interest-bearing deposits
NOW and interest-bearing demand
$
23,809,493
132,226
2.20
%
19,884,855
18,261
0.36
%
Money market
38,511,269
144,716
1.49
%
39,193,202
29,412
0.30
%
Time deposits
2,118,538
9,094
1.70
%
1,823,747
3,599
0.78
%
Non-interest-bearing demand deposits
38,215,860
—
—
%
29,804,055
—
—
%
Total deposits
102,655,160
286,036
1.11
%
90,705,859
51,272
0.22
%
Subordinated debt
571,048
6,167
4.32
%
569,642
6,167
4.33
%
Other borrowings
1,622,209
10,160
2.48
%
2,819,680
17,405
2.45
%
Total deposits and borrowings
104,848,417
302,363
1.14
%
94,095,181
74,844
0.32
%
Other non-interest-bearing liabilities
1,517,872
918,894
Preferred equity
708,173
708,173
Common equity
7,523,461
6,762,935
Total liabilities and shareholders'
equity
$
114,597,923
102,485,183
OTHER DATA
Net interest income / interest rate spread
(1)
$
675,961
2.31
%
482,652
1.86
%
Tax-equivalent adjustment
(1,971
)
(1,776
)
Net interest income, as reported
$
673,990
480,876
Net interest margin
2.37
%
1.88
%
Tax-equivalent effect
0.01
%
—
%
Net interest margin on a tax-equivalent
basis (1)
2.38
%
1.88
%
Ratio of average interest-earning assets
to average interest-bearing liabilities
107.40
%
108.04
%
(1)
Presented on a tax-equivalent,
non-GAAP, basis for municipal leasing and financing transactions
recorded in Commercial loans, mortgages and leases using the U.S.
federal statutory tax rate of 21 percent for the periods
presented.
SIGNATURE BANK
NET INTEREST MARGIN ANALYSIS
(unaudited)
Nine months ended September 30,
2022
Nine months ended September 30,
2021
(dollars in thousands)
Average Balance
Interest Income/
Expense
Average Yield/ Rate
Average Balance
Interest Income/
Expense
Average Yield/ Rate
INTEREST-EARNING ASSETS
Short-term investments
$
20,380,482
126,673
0.83
%
23,379,293
23,179
0.13
%
Investment securities
25,721,818
361,106
1.87
%
14,429,186
181,191
1.67
%
Commercial loans, mortgages and leases
68,928,819
1,899,230
3.68
%
52,301,338
1,377,883
3.52
%
Residential mortgages and consumer
loans
124,538
3,195
3.43
%
150,901
3,807
3.37
%
Loans held for sale
512,145
8,397
2.19
%
289,334
3,202
1.48
%
Total interest-earning assets (1)
115,667,802
2,398,601
2.77
%
90,550,052
1,589,262
2.35
%
Non-interest-earning assets
1,660,536
887,206
Total assets
$
117,328,338
91,437,258
INTEREST-BEARING LIABILITIES
Interest-bearing deposits
NOW and interest-bearing demand
$
21,138,343
199,393
1.26
%
18,162,301
57,760
0.43
%
Money market
40,517,114
225,834
0.75
%
34,827,306
93,386
0.36
%
Time deposits
1,616,414
13,153
1.09
%
1,818,535
12,578
0.92
%
Non-interest-bearing demand deposits
41,784,797
—
—
%
25,356,430
—
—
%
Total deposits
105,056,668
438,380
0.56
%
80,164,572
163,724
0.27
%
Subordinated debt
570,700
18,448
4.31
%
672,093
22,900
4.54
%
Other borrowings
2,162,659
39,613
2.45
%
2,904,905
52,844
2.43
%
Total deposits and borrowings
107,790,027
496,441
0.62
%
83,741,570
239,468
0.38
%
Other non-interest-bearing liabilities
1,309,110
841,763
Preferred equity
708,173
708,088
Common equity
7,521,028
6,145,837
Total liabilities and shareholders'
equity
$
117,328,338
91,437,258
OTHER DATA
Net interest income / interest rate spread
(1)
$
1,902,160
2.15
%
1,349,794
1.96
%
Tax-equivalent adjustment
(5,505
)
(5,190
)
Net interest income, as reported
$
1,896,655
1,344,604
Net interest margin
2.19
%
1.99
%
Tax-equivalent effect
0.01
%
0.00
%
Net interest margin on a tax-equivalent
basis (1)
2.20
%
1.99
%
Ratio of average interest-earning assets
to average interest-bearing liabilities
107.31
%
108.13
%
(1)
Presented on a tax-equivalent,
non-GAAP, basis for municipal leasing and financing transactions
recorded in Commercial loans, mortgages and leases using the U.S.
federal statutory tax rate of 21 percent for the periods
presented.
SIGNATURE BANK NON-GAAP FINANCIAL MEASURES
(unaudited)
This press release contains both financial measures based on
GAAP and non-GAAP financial measures where 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) tangible
common equity ratio, (ii) efficiency ratio, (iii) yield on
interest-earning assets, tax-equivalent basis, (iv) net interest
margin, tax-equivalent basis, and (v) pre-tax, pre-provision
earnings. 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 the tangible common equity ratio
calculation:
(dollars in thousands)
September 30,
2022
June 30, 2022
December 31,
2021
September 30,
2021
Consolidated total shareholders'
equity
$
7,690,523
8,031,806
7,840,618
7,679,139
Less: Preferred equity
708,173
708,173
708,173
708,173
Common shareholders' equity
$
6,982,350
7,323,633
7,132,445
6,970,966
Less: Intangible assets
2,025
3,801
3,977
15,858
Tangible common shareholders' equity
(TCE)
$
6,980,325
7,319,832
7,128,468
6,955,108
Consolidated total assets
$
114,468,746
115,966,803
118,445,427
107,850,739
Less: Intangible assets
2,025
3,801
3,977
15,858
Consolidated tangible total assets
(TTA)
$
114,466,721
115,963,002
118,441,450
107,834,881
Tangible common equity ratio (TCE/TTA)
6.10
%
6.31
%
6.02
%
6.45
%
The following table presents the efficiency ratio
calculation:
Three months ended September
30,
Nine months ended September
30,
(dollars in thousands)
2022
2021
2022
2021
Non-interest expense (NIE)
$
225,461
181,243
628,887
519,653
Net interest income before provision for
credit losses
673,990
480,876
1,896,655
1,344,604
Other non-interest income
43,751
31,367
115,817
87,436
Total income (TI)
$
717,741
512,243
2,012,472
1,432,040
Efficiency ratio (NIE/TI)
31.41
%
35.38
%
31.25
%
36.29
%
The following table reconciles yield on interest-earning assets
to the yield on interest-earning assets on a tax-equivalent
basis:
Three months ended September
30,
Nine months ended September
30,
(dollars in thousands)
2022
2021
2022
2021
Interest income (as reported)
$
976,353
555,720
2,393,096
1,584,072
Tax-equivalent adjustment
1,971
1,776
5,505
5,190
Interest income, tax-equivalent basis
$
978,324
557,496
2,398,601
1,589,262
Interest-earnings assets
$
112,609,593
101,661,876
115,667,802
90,550,052
Yield on interest-earning assets
3.44
%
2.17
%
2.76
%
2.34
%
Tax-equivalent effect
0.01
%
0.01
%
0.01
%
0.01
%
Yield on interest-earning assets,
tax-equivalent basis
3.45
%
2.18
%
2.77
%
2.35
%
The following table reconciles net interest margin (as reported)
to net interest margin on a tax-equivalent basis:
Three months ended September
30,
Nine months ended September
30,
2022
2021
2022
2021
Net interest margin (as reported)
2.37
%
1.88
%
2.19
%
1.99
%
Tax-equivalent adjustment
0.01
%
0.00
%
0.01
%
0.00
%
Net interest margin, tax-equivalent
basis
2.38
%
1.88
%
2.20
%
1.99
%
The following table reconciles net income (as reported) to
pre-tax, pre-provision earnings:
Three months ended September
30,
Nine months ended September
30,
(dollars in thousands)
2022
2021
2022
2021
Net income (as reported)
$
358,467
241,423
1,036,203
646,449
Income tax expense
104,747
85,592
311,373
222,773
Provision for credit losses
29,066
3,985
36,009
43,165
Pre-tax, pre-provision earnings
$
492,280
331,000
1,383,585
912,387
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221018005286/en/
Investor Contact: Brian Wyremski,
Senior Vice President and Director of Investor Relations &
Corporate Development 646-822-1479, bwyremski@signatureny.com
Media Contact: Susan Turkell Lewis,
646-822-1825 slewis@signatureny.com
Signature Bank (NASDAQ:SBNY)
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