Signature Bank (Nasdaq: SBNY), a New York-based full-service commercial bank, today announced results for its third quarter ended September 30, 2013.
Net income for the 2013 third quarter reached a record $60.2 million, or $1.25 diluted earnings per share, versus $47.7 million, or $1.00 diluted earnings per share, for the 2012 third quarter. The record net income for the 2013 third quarter, versus the comparable quarter last year, is primarily due to an increase in net interest income, fueled by strong deposit and record loan growth. These factors were partially offset by an increase in non-interest expenses.
Net interest income for the 2013 third quarter reached $167.4 million, up $25.7 million, or 18.2 percent, when compared with the 2012 third quarter. This increase is primarily due to growth in average interest-earning assets and an increase of $2.4 million in loan prepayment penalty income. Total assets reached $21.0 billion at September 30, 2013, an increase of $4.55 billion, or 27.6 percent, from $16.46 billion at September 30, 2012. Average assets for the 2013 third quarter reached $20.39 billion, an increase of $4.29 billion, or 26.6 percent, compared with the 2012 third quarter.
Deposits for the 2013 third quarter rose $774.9 million, or 5.1 percent, to $16.05 billion at September 30, 2013. When compared with deposits at December 31, 2012, overall deposit growth for the first nine months of 2013 was 14.0 percent, or $1.96 billion. Excluding short-term escrow deposits and brokered deposits of $871.2 million and $312.3 million at September 30, 2013, and $842.4 million and $148.2 million at June 30, 2013, respectively, core deposits increased $582.1 million for the quarter. Average deposits for the 2013 third quarter reached $15.94 billion, an increase of $829.6 million, or 5.5 percent.
“This marks another quarter of top-line revenue growth, driven by strong core deposit and record loan growth, culminating in the Bank’s 16
consecutive quarter of record earnings. We believe our unwavering commitment to our client-centric model and single-point-of-contact approach is the key driver to our success. While remaining dedicated to our deposit-focused philosophy, we continue to advance earnings by increasing loans as a percentage of our well capitalized balance sheet with a further quarter of record loan growth. This emphasis has helped mitigate the effects from the prolonged low-interest rate environment on our net interest margin,” explained Joseph J. DePaolo, President and Chief Executive Officer.
“Moreover, while delivering record earnings -- quarter after quarter -- we remain focused on our long-term strategy of adding seasoned private client banking teams as well as diversifying our services offerings, where relevant. This is evidenced by the further expansion of our specialty finance subsidiary, Signature Financial, and the recently announced addition of an asset-based lending team. The ABL team that just joined brings decades of related industry experience and further enhances our product offerings within the business community,” DePaolo noted.