Signature Bank (NASDAQ:SBNY) beaten analysts’ estimates

Signature Bank (NASDAQ:SBNY) stock fell 0.48% (As on Jan 19, 11:22:38 AM UTC-4, Source: Google Finance) though the company posted better than expected results for the fourth quarter of 2021 driven by the digital asset banking team. Net income in the quarter was $272 million compared with the previous-year quarter’s $173 million. Net interest income (NII) climbed 35.7% year over year to $535.9 million on higher average interest-earning assets. However, the net interest margin (on a tax-equivalent basis) contracted 32 basis points (bps) to 1.91%. The efficiency ratio was 32.3%, improving from 35.4% reported as of Dec 31, 2020. Loans, excluding loans held for sale, as of Dec 31, 2021, were $64.8 billion, marking a record increase 10.7%, sequentially. Total deposits rose a record 11.1%, sequentially, to $106.1 billion. As of Dec 31, 2021, Tier 1 risk-based capital ratio was 10.49%, down from 11.2% as of Dec 31, 2020. The total risk-based capital ratio was 11.73 % compared with the prior-year quarter’s 13.54%. Return on average total assets was 0.96% in the reported quarter, flat with the year-earlier quarter’s level. As of Dec 31, 2021, the return on average common stockholders’ equity was 14.76%, up from 13.59% in the year-ago quarter.

Moreover, Net charge-offs were $33.7 million in the December quarter, up from $11.4 million recorded in the prior-year quarter. The ratio of non-accrual loans to total loans was 0.34%, up 9 bps year over year. Nonetheless, allowance for credit losses for loans and leases was $474.4 million, down from $508.3 million in the prior-year quarter. Provision for credit losses declined to $6.9 million from $35.6 million in the prior-year quarter, mainly driven by improved macroeconomic conditions.

SBNY in the fourth quarter of 2021 has reported the adjusted earnings per share of $4.34, beating the analysts’ estimates for the adjusted earnings per share of $3.97, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 35.8 percent to $569.4 million in the fourth quarter of 2021, beating the analysts’ estimates for revenue of $548.7 million.

Additionally, the company has announced a quarterly common stock dividend of 56 cents. The dividend will be paid out on or after Feb 11, 2022 to its shareholders of record at the close of business on Jan 28, 2022.

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