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Signature Bank Shares of
Signature Bank (SBNY) of New York closed at $64.21 Friday, returning 7% year to date, following a remarkable 20% return during 2011.
The shares trade for 2.1 times tangible book value and for 15 times the consensus 2013 earnings estimate of $4.22 a share. The consensus 2012 EPS estimate is $3.67.
Signature Bank will report its first-quarter earnings on Tuesday before the market opens, with a consensus EPS estimate of 84 cents a share, compared to EPS of 85 cents in the fourth quarter and 82 cents a year earlier.
Ramsey rated Signature Bank outperform with a $75 price target, and in early April said that the bank's "new equipment/ transportation financing subsidiary [is] a big positive for the story, and a catalyst for shares to outperform," providing "another avenue for Signature to grow loans and utilize its low cost deposit funding."
Ramsey said that the 30-member equipment financing team that came "largely from All Points Capital (a subsidiary of
Capital One (COF))," should "enable Signature to add $100 million of new loans a quarter once fully leveraged, which is significant given its loan growth of approximately $400 million per quarter in 2011."
The analyst called Signature Bank "the best growth story in banking, having grown loans and deposits 31% and 24%, respectively, over the last year."
Ramsey estimated that Signature Bank will post first-quarter EPS of 86 cents, with full-year EPS of $3.70 for 2012 and $4.45 for 2013.
Interested in more on Signature Bank? See TheStreet Ratings' report card for this stock.
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Written by Philip van Doorn in Jupiter, Fla.
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