This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

10 Big Banks With Solid Revenue

4. Signature Bank

Shares of Signature Bank (SBNY) of New York closed at $59.40 Monday, returning 19% year-to-date.

The bank on July 11 completed a stock offering to raise a net $253.2 million in common equity.

Second-quarter net income was $36.6 million, or 87 cents a share, increasing from $22.3 million, or 54 cents a share, in the second quarter of 2010. The provision for loan losses increased to $12.9 million in the second quarter, from $11.1 million a year earlier.

The bank reported that portfolio loans totaled $6.1 billion as of June 30, growing 8% during the second quarter and 29% from a year earlier.

Second-quarter pre-provision net revenue totaled $75.1 million according to SNL, increasing 62% from a year earlier, as net interest income increased 39% to $113 million.

The second-quarter net interest margin was 3.64%, expanding from 3.38% a year earlier. The operating ROA was 1.15% according to SNL.

After Signature Bank announced its second-quarter results, Cantor Fitzgerald analyst Michael Diana reiterated his buy rating for the shares while raising his price target to $72 from $68, saying the bank's growth was driven by a business model of "hiring teams of bankers from competitors," which "creates powerful deposit and revenue growth," and that its "credit quality deterioration in the downturn was relatively mild."

The shares trade for 15.7 times the 2012 consensus EPS estimate of $3.78.

The 18 analysts covering Signature Bank are evenly split between buy and hold ratings.

Signature Bank is a very unusual growth story in the current environment, successfully poaching commercial lenders and their clients from other banks. Along with the loan growth, business customers bring cheap deposits and the potential for increased fee income for investment, brokerage and asset management services.
8 of 11

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
BAC $15.65 -1.82%
C $50.59 -2.32%
FNFG $9.06 -0.33%
JPM $61.50 -1.88%
PBCT $15.07 -0.92%

Markets

Chart of I:DJI
DOW 16,102.38 -272.38 -1.66%
S&P 500 1,921.22 -29.91 -1.53%
NASDAQ 4,683.9190 -49.5780 -1.05%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs