Signature Bank (SBNY - Get Report) tumbled 3.6% to $131.25 Wednesday after the financial services company missed Wall Street's first-quarter earning expectations as income was hurt by a drop in prepayment penalty income.
The New York-based bank reported earnings of $144.1 million, or $2.65 a share, compared with $34 million, or 63 cents a share, a year ago. Adjusted earnings came to $2.64 a share, missing analysts' expectations of $2.76.
Signature Bank said that excluding write-downs for its New York City taxi medallion portfolio, net income for the 2018 first quarter would have been $146.8 million, or $2.69 a share. Prepayment penalty income for the 2019 first quarter was $2.4 million, down $4.3 million from the 2018 first quarter.
Ride-hailing companies, such as Uber and Lyft (LYFT) , have increased the number of cars in Manhattan and driven down the value of the city's allocated taxi medallions.
Revenue for the latest quarter totaled $325.08 million, missing analysts' estimates by 2.19%. Revenue came to $325.35 million a year ago.
Deposits for the 2019 first quarter rose $243.8 million to $36.62 billion due to a decrease in escrow deposits of $659.8 million. Average deposits for the 2019 first quarter reached $36.47 billion, an increase of $210.0 million, the bank said.
The bank's provision for loan losses for the first quarter was $6.3 million, compared with $140.8 million for the 2018 first quarter. The elevated provision for the 2018 first quarter was nearly all due to the New York City taxi medallion loan portfolio.