4. Signature Bank
Shares of Signature Bank (SBNY) of New York closed at $59.99 Friday, returning 20% during 2011.
The bank's third-quarter efficiency ratio was 36.45, according to SNL Financial.Signature Bank has been a unique growth story in its home market, and was included last month among TheStreet's 10 Bank Stocks Beating Analysts' Price Targets. The bank had $13.9 billion in total assets as of Sept. 30, with 25 branches in New York City and in Nassau, Suffolk, and Westchester counties, in New York, focusing on private banking services as well as commercial lending. Signature Bank's balance sheet grew 19% year over year through the third quarter, with total loans growing 23%, to $6.4 billion as of Sept. 30. Third-quarter net income was $38.4 million, or 83 cents a share, increasing from $27.4 million, or 66 cents a share, a year earlier. The third-quarter ROA was 1.13%, according to SNL. Guggenheim Securities analyst David Darst has a neutral rating on the shares, saying in early December that they were fairly valued based on forward earnings estimates, but adding that the "disarray" among local competitors would "continue to drive opportunities for SBNY to add new teams and locations, allowing SBNY to drive above-peer growth over the next year." Darst estimates the bank will earn $3.71 a share in 2012. Deutsche Bank analyst Dave Rochester on Thursday initiated his firm's coverage of Signature Bank with a "Buy" rating and a $69 price target, touting the bank's "unique model to drive coverage-leading EPS growth." The analyst expects Signature to earn $3.70 a share in 2012. Rochester added that "with some of the strongest capital levels in the industry, SBNY has all the pieces in place to support above-peer revenue/EPS growth for the next few years, equating to premium trading multiples and share outperformance." The shares trade for 16 times the consensus 2012 EPS estimate of $3.67, among analysts polled by FactSet, and for twice their Sept. 30 tangible book value of $29.57, according to SNL Financial. Out of 16 analysts covering Signature Bank, seven rate the shares a buy, while the remaining analysts all have neutral ratings. Interested in more on Signature Bank? See TheStreet Ratings' report card for this stock.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV