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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

'Storm Is Brewing' for Banks

Signature Bank
Shares of Signature Bank (SBNY) of New York closed at $60.71 Monday, returning 1% year-to-date, following a 20% return during 2011. SBNY ChartSBNY data by YCharts

The shares trade for twice their tangible book value, according to Worldscope data provided by Thomson Reuters, and for 14.5 times the consensus 2013 EPS estimate of $4.18. The consensus 2012 EPS estimate is $3.65.

Analysts expect the bank to report second-quarter EPS of 89 cents, compared to 90 cents the previous quarter and 87 cents a year earlier.

Alexopoulos rates Signature Bank "Overweight," with a $75 price target, and said Tuesday that he expects the bank's "strong loan growth to continue," and for its second-quarter net interest margin to decline by two basis points to 3.48%. JPMorgan expects Signature Bank "to continue to be a standout on the loan growth front, with ~$550 million of period-end loan growth expected, or nearly 30% annualized growth."

Alexopoulos estimates that Signature Bank will earn $3.51 a share for all of 2012, followed by 2013 EPS of $3.81.

Signature Bank during the first quarter launched a special finance subsidiary called Signature Financial, hiring "of one of Long Island's most respected C&I-focused, middle market teams," according to CEO Joseph DePaolo.

Alexopoulos said on Tuesday that "although growth metrics from Signature are at best-in-class levels, over the past several quarters the market seems to have now grown accustomed to very strong balance sheet growth out of the company with SBNY shares lagging peers on the day of earnings being reported." The analyst went on to say that the bank's expansion of its lending team "couldn't have come at a better time," and that the new unit "seems to be positioned to add a cylinder or two to the company's loan growth engine."

Interested in more on Signature Bank? See TheStreet Ratings' report card for this stock.

5 of 7

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,563.30 -317.06 -1.88%
S&P 500 1,930.67 -39.40 -2.00%
NASDAQ 4,369.7730 -93.1290 -2.09%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs