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. >>To see these stocks in action, visit the 6 Bank Stock Picks for Earnings Season From FBR portfolio on Stockpickr. -- Written by Philip van Doorn in Jupiter, Fla. To contact the writer, click here: Philip van Doorn. To follow the writer on Twitter, go to http://twitter.com/PhilipvanDoorn.
Steve Ricchiuto, MZUHO Securities chief economist, and Bob Michele asset management global CIO with JP Morgan (JPM), joined BloomberTV's 'Bloomberg GO' to discuss the economy and the Fed raising rates.