Signature Bank (Nasdaq: SBNY), a New York-based full-service commercial bank, today announced results for its fourth quarter and year ended December 31, 2011. Net income for the 2011 fourth quarter reached a record $40.0 million, or $0.85 diluted earnings per share, compared with $30.3 million, or $0.72 diluted earnings per share, for the 2010 fourth quarter. The record net income for the 2011 fourth quarter, when compared with the same period last year, is primarily the result of an increase in net interest income, fueled by core deposit growth and continued loan growth. These factors were partially offset by a decrease in non-interest income and an increase in non-interest expenses.
Net interest income for the 2011 fourth quarter rose $29.4 million, or 30.6 percent, to $125.3 million, compared with the fourth quarter of 2010. This increase is primarily due to growth in average interest-earning assets. Total assets reached $14.67 billion at December 31, 2011, expanding $2.99 billion, or 25.6 percent, from $11.67 billion at December 31, 2010. Average assets for the 2011 fourth quarter reached $14.28 billion, an increase of $3.11 billion, or 27.9 percent, versus the comparable period a year ago.
Deposits for the 2011 fourth quarter rose $566.2 million, or 5.1 percent, to $11.75 billion at December 31, 2011. Overall deposit growth in 2011 was 24.5 percent, or a record $2.31 billion, when compared with deposits at the end of 2010. Excluding short-term escrow and brokered deposits of $646.1 million at year-end 2010 and $831.8 million at year-end 2011, core deposits increased a record $2.13 billion, or 24.2 percent, in 2011. Average total deposits for 2011 were $10.86 billion, growing $2.4 billion, or 28.5 percent, versus average total deposits of $8.45 billion for 2010.
“Here we are on the heels of another successful year for Signature Bank where we again reported record results across all key metrics. Our prudent and methodical approach delivered record deposit and loan growth resulting in the 4 th consecutive year of record net income,” said Joseph J. DePaolo, President and Chief Executive Officer.“Throughout the year, Signature Bank was recognized for its ability to deliver record financial performance and provide stellar service through our single-point-of-contact model, where we attract veteran bankers and afford them a workplace to build solid, lasting client relationships. This is evidenced by the Bank’s numerous acknowledgments received during 2011, including, among others: Forbes, ranked the 5 th Best Bank in America; our inaugural appearance on both Fortune’s 100 fastest growing companies list and Crain’s New York Business 2011 Best Places to Work in NYC list; and, Crain’s New York Business Fastest Growing Public Companies listing, where the Bank ranked 7 th. These achievements are indicative of our ongoing commitment to cater to privately owned businesses and their owners through our distinctive, proven relationship-based model,” DePaolo added. Scott A. Shay, Chairman of the Board, added: "Time and again, we have demonstrated to the marketplace the strength and integrity of our growing institution. 2011 marked another year of record performance, where we maintained solid credit quality and net interest margin, proved again our strong capital position and successfully cared for our clients through exceptional service. Our persistence in focusing on, first and foremost, the needs of privately owned businesses and depositor safety, has allowed Signature Bank to stand out in the economic landscape. While our accomplishments were reflected in the many high rankings we achieved this past year from several prestigious third parties, it is the high marks we consistently receive from our dedicated clients that enable the Bank to continually deliver on our mission and commitment.”