NEW YORK--(BUSINESS WIRE)--Signature Bank (Nasdaq: SBNY), a New York-based full-service commercial bank, today announced results for its first quarter ended March 31, 2016.
Net income for the 2016 first quarter reached a record $104.0 million, or $1.97 diluted earnings per share, versus $83.4 million, or $1.64 diluted earnings per share, for the 2015 first quarter. The record net income for the 2016 first quarter, versus the comparable quarter last year, is primarily due to an increase in net interest income, fueled by strong deposit and loan growth. These factors were partially offset by an increase in non-interest expense.
Net interest income for the 2016 first quarter reached $278.3 million, up $55.8 million, or 25.1 percent, when compared with the 2015 first quarter. This increase is primarily due to growth in average interest-earning assets. Total assets reached $34.90 billion at March 31, 2016, an increase of $6.31 billion, or 22.1 percent, from $28.59 billion at March 31, 2015. Average assets for the 2016 first quarter reached $34.14 billion, an increase of $6.16 billion, or 22.0 percent, compared with the 2015 first quarter.
Deposits for the 2016 first quarter rose $1.33 billion, or 5.0 percent, to $28.11 billion at March 31, 2016. When compared with deposits at March 31, 2015, overall deposit growth for the last twelve months was 17.0 percent, or $4.08 billion. Excluding short-term escrow and brokered deposits of $3.72 billion at the end of the 2016 first quarter and $3.93 billion at year-end 2015, core deposits increased $1.54 billion for the quarter. Average deposits for the 2016 first quarter reached $27.69 billion, an increase of $600.0 million, or 2.2 percent.
“As we kick off 2016, which marks our 15th year in operation, Signature Bank delivered another quarter of solid financial performance. The 2016 first quarter saw record earnings for the 26th consecutive time, as well as both strong deposit and loan growth. We also see this as an opportune time to reflect on the growth of our business since our founding. We are extremely proud of the strong foundation and infrastructure we have built and nurtured over the years, which has helped sustain our consistent, strong organic growth,” explained Joseph J. DePaolo, President and Chief Executive Officer.
“Numerous factors have contributed to the bank we have become today, including the loyalty of our clients and the efforts of our now more than 1,100 colleagues, many of whom have been with us since day one. Together, we have built this institution to last, despite a volatile financial landscape and a myriad of regulatory changes. Signature Bank has established and maintained a leadership role nationally amongst banks its size and continually outpaces the performance of peers in its sector. Time and again, we have been recognized by a range of third parties. We are prepared to apply the same level of passion, dedication and entrepreneurial spirit in the years ahead,” DePaolo said.
Scott A. Shay, Chairman of the Board, commented: “I would like to highlight the most important asset of the bank - our people. It is truly a pleasure to work with such a wonderful and diverse group of dedicated and hard working individuals who give their all to serve their clients and keep Signature Bank safe and sound. The dedication and sense of purpose that all of our colleagues share every day is the real secret sauce of the success of this Bank. This is the engine of our growth, safety and conservatism. All of us at Signature Bank will continue to work hard every day to serve our clients and by doing so, will reap financial returns to our shareholders.”
Capital
In the 2016 first quarter, the Bank raised net proceeds of $318.7 million of common stock in a public offering, after the deduction of offering expenses. Proceeds from the offering will be used to continue the Bank’s growth in serving its niche market of privately owned businesses. The Bank’s Tier 1 leverage, common equity Tier 1 risk-based, Tier 1 risk-based, and total risk-based capital ratios were approximately 9.79 percent, 12.42 percent, 12.42 percent, and 13.19 percent, respectively, as of March 31, 2016. Each of these ratios is well in excess of regulatory requirements. The Bank’s strong risk-based capital ratios reflect the relatively low risk profile of the Bank’s balance sheet. The Bank’s tangible common equity ratio remains strong at 9.61 percent. The Bank defines tangible common equity ratio as the ratio of tangible common equity to adjusted tangible assets and calculates this ratio by dividing total consolidated common shareholders’ equity by consolidated total assets. Additionally, on April 19, 2016, the Bank issued $260.0 million in aggregate principal amount of 5.30% Subordinated Notes to institutional investors.
Net Interest Income
Net interest income for the 2016 first quarter was $278.3 million, an increase of $55.8 million, or 25.1 percent, versus the same period last year, primarily due to growth in average interest-earning assets. Average interest-earning assets of $33.75 billion for the 2016 first quarter represent an increase of $6.07 billion, or 21.9 percent, from the 2015 first quarter. Yield on interest-earning assets for the 2016 first quarter increased four basis points, to 3.76 percent, compared with the 2015 first quarter. This increase was primarily attributable to loans representing a larger percentage of interest-earning assets.
Average cost of deposits and average cost of funds for the first quarter of 2016 decreased by two basis points and one basis point, respectively, versus the 2015 first quarter to 0.41 percent and 0.49 percent. These decreases were predominantly due to prolonged low interest rates.
Net interest margin for the 2016 first quarter was 3.32 percent versus 3.26 percent reported in the same period a year ago. On a linked quarter basis, net interest margin increased two basis points. Excluding loan prepayment penalties in both quarters, linked quarter core margin increased two basis points to 3.17 percent.
Provision for Loan Losses
The Bank’s provision for loan losses for the first quarter of 2016 was $19.8 million, compared with $16.7 million for the 2015 fourth quarter and $7.9 million for the 2015 first quarter. The increase was primarily due to additional reserves for taxi medallion loans.
Net charge offs for the 2016 first quarter were $7.8 million, or 0.13 percent of average loans, on an annualized basis, versus net charge offs of $4.6 million, or 0.08 percent, for the 2015 fourth quarter and $1.5 million, or 0.03 percent, for the 2015 first quarter.
Non-Interest Income and Non-Interest Expense
Non-interest income for the 2016 first quarter was $8.5 million, down $1.7 million when compared with $10.1 million reported in the 2015 first quarter. The decrease was due to a $1.8 million decline in net gains on sales of loans predominantly from our SBA pool assembly business.
Non-interest expense for the first quarter of 2016 was $92.3 million, an increase of $10.6 million, or 13.0 percent, versus $81.7 million reported in the 2015 first quarter. The increase was primarily a result of the addition of new private client banking teams and our continued investment in Signature Financial, as well as an increase in costs in our risk management and compliance related activities.
The Bank’s efficiency ratio improved to 32.2 percent for the 2016 first quarter versus 35.1 percent for the comparable period last year. The improvement was primarily due to growth in net interest income.
Loans
Loans, excluding loans held for sale, grew $1.25 billion, or 5.3 percent, during the first quarter of 2016 to $25.04 billion, compared with $23.79 billion at December 31, 2015. At March 31, 2016, loans accounted for 71.8 percent of total assets, versus 71.1 percent at the end of the 2015 fourth quarter and 67.5 percent at the end of 2015 first quarter. Average loans, excluding loans held for sale, reached $24.39 billion in the 2016 first quarter, growing $1.44 billion, or 6.3 percent, from the 2015 fourth quarter and $5.96 billion, or 32.3 percent, from the 2015 first quarter. The increase in loans for the first quarter was primarily driven by growth in commercial real estate and multi-family loans.
At March 31, 2016, non-accrual loans were $105.0 million, representing 0.42 percent of total loans and 0.30 percent of total assets, compared with non-accrual loans of $71.9 million, or 0.30 percent of total loans, at December 31, 2015 and $27.8 million, or 0.14 percent of total loans, at March 31, 2015. The ratio of allowance for loan and lease losses to total loans at March 31, 2016 was 0.83 percent, versus 0.82 percent at December 31, 2015 and 0.88 percent at March 31, 2015. Additionally, the ratio of allowance for loan and lease losses to non-accrual loans, or the coverage ratio, was 197 percent for the 2016 first quarter versus 271 percent for the fourth quarter of 2015 and 614 percent for the 2015 first quarter.
Conference Call
Signature Bank’s management will host a conference call to review results of the 2016 first quarter on Wednesday, April 20, 2016, at 10:00 AM ET. All participants should dial 866-359-8135 at least ten minutes prior to the start of the call and reference conference ID #87922279. International callers should dial 901-300-3484.
To hear a live web simulcast or to listen to the archived web cast following completion of the call, please visit the Bank’s web site at www.signatureny.com, click on "Investor Information", then under "Company News," select "Conference Calls," to access the link to the call. To listen to a telephone replay of the conference call, please dial 800-585-8367 or 404-537-3406 and enter conference ID #87922279. The replay will be available from approximately 1:00 PM ET on Wednesday, April 20, 2016 through 11:59 PM ET on Sunday, April 24, 2016.
About Signature Bank
Signature Bank, member FDIC, is a New York-based full-service commercial bank with 29 private client offices throughout the New York metropolitan area, including those in Manhattan, Brooklyn, Westchester, Long Island, Queens, the Bronx, Staten Island and Connecticut. The Bank’s growing network of private client banking teams serves the needs of privately owned businesses, their owners and senior managers.
Signature Bank offers a wide variety of business and personal banking products and services. Its specialty finance subsidiary, Signature Financial, LLC, provides equipment finance and leasing. Signature Securities Group Corporation, a wholly owned Bank subsidiary, is a licensed broker-dealer, investment adviser and member FINRA/SIPC, offering investment, brokerage, asset management and insurance products and services.
Signature Bank ranked sixth on Forbes' Best and Worst Banks in America 2016 list and third on leading trade journal Bank Director's 2015 Bank Performance Scorecard for banks with assets between $5 and $50 billion.
For more information, please visit www.signatureny.com.
This press release and oral statements made from time to time by our representatives contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties. You should not place undue reliance on those statements because they are subject to numerous risks and uncertainties relating to our operations and business environment, all of which are difficult to predict and may be beyond our control. Forward-looking statements include information concerning our future results, interest rates and the interest rate environment, loan and deposit growth, loan performance, operations, new private client teams and other hires, new office openings and business strategy. These statements often include words such as "may," "believe," "expect," "anticipate," "intend," “potential,” “opportunity,” “could,” “project,” “seek,” “should,” “will,” would,” "plan," "estimate" or other similar expressions. As you consider forward-looking statements, you should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties and assumptions that could cause actual results to differ materially from those in the forward-looking statements and can change as a result of many possible events or factors, not all of which are known to us or in our control. These factors include but are not limited to: (i) prevailing economic conditions; (ii) changes in interest rates, loan demand, real estate values and competition, any of which can materially affect origination levels and gain on sale results in our business, as well as other aspects of our financial performance, including earnings on interest-bearing assets; (iii) the level of defaults, losses and prepayments on loans made by us, whether held in portfolio or sold in the whole loan secondary markets, which can materially affect charge-off levels and required credit loss reserve levels; (iv) changes in monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System; (v) changes in the banking and other financial services regulatory environment and (vi) competition for qualified personnel and desirable office locations. Although we believe that these forward-looking statements are based on reasonable assumptions, beliefs and expectations, if a change occurs or our beliefs, assumptions and expectations were incorrect, our business, financial condition, liquidity or results of operations may vary materially from those expressed in our forward-looking statements. Additional risks are described in our quarterly and annual reports filed with the FDIC. You should keep in mind that any forward-looking statements made by Signature Bank speak only as of the date on which they were made. New risks and uncertainties come up from time to time, and we cannot predict these events or how they may affect the Bank. Signature Bank has no duty to, and does not intend to, update or revise the forward-looking statements after the date on which they are made. In light of these risks and uncertainties, you should keep in mind that any forward-looking statement made in this release or elsewhere might not reflect actual results.
| SIGNATURE BANK | |||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||||||||
| (unaudited) | |||||||||||
| Three months ended March 31, | |||||||||||
| (dollars in thousands, except per share amounts) | 2016 | 2015 | |||||||||
| INTEREST AND DIVIDEND INCOME | |||||||||||
| Loans held for sale | $ | 1,248 | 596 | ||||||||
| Loans and leases, net | 245,939 | 185,763 | |||||||||
| Securities available-for-sale | 50,287 | 49,236 | |||||||||
| Securities held-to-maturity | 16,289 | 17,078 | |||||||||
| Other short-term investments | 2,010 | 1,289 | |||||||||
| Total interest income | 315,773 | 253,962 | |||||||||
| INTEREST EXPENSE | |||||||||||
| Deposits | 28,238 | 24,817 | |||||||||
| Federal funds purchased and securities sold under | |||||||||||
| agreements to repurchase | 3,068 | 3,721 | |||||||||
| Federal Home Loan Bank borrowings | 6,158 | 2,927 | |||||||||
| Total interest expense | 37,464 | 31,465 | |||||||||
| Net interest income before provision for loan and lease losses | 278,309 | 222,497 | |||||||||
| Provision for loan and lease losses | 19,812 | 7,887 | |||||||||
| Net interest income after provision for loan and lease losses | 258,497 | 214,610 | |||||||||
| NON-INTEREST INCOME | |||||||||||
| Commissions | 2,707 | 2,553 | |||||||||
| Fees and service charges | 5,150 | 5,021 | |||||||||
| Net gains on sales of securities | 237 | 418 | |||||||||
| Net gains on sales of loans | 1,627 | 3,467 | |||||||||
| Other-than-temporary impairment losses on securities: | |||||||||||
| Total impairment losses on securities | (55 | ) | (933 | ) | |||||||
| Portion recognized in other comprehensive income (before taxes) | - | 592 | |||||||||
| Net impairment losses on securities recognized in earnings | (55 | ) | (341 | ) | |||||||
| Other losses | (1,201 | ) | (969 | ) | |||||||
| Total non-interest income | 8,465 | 10,149 | |||||||||
| NON-INTEREST EXPENSE | |||||||||||
| Salaries and benefits | 62,280 | 55,077 | |||||||||
| Occupancy and equipment | 6,640 | 5,926 | |||||||||
| Data processing | 4,885 | 3,961 | |||||||||
| FDIC assessment fees | 4,983 | 3,813 | |||||||||
| Professional fees | 1,887 | 2,934 | |||||||||
| Other general and administrative | 11,651 | 9,987 | |||||||||
| Total non-interest expense | 92,325 | 81,698 | |||||||||
| Income before income taxes | 174,637 | 143,061 | |||||||||
| Income tax expense | 70,602 | 59,671 | |||||||||
| Net income | $ | 104,035 | 83,390 | ||||||||
| PER COMMON SHARE DATA | |||||||||||
| Earnings per share – basic | $ | 1.98 | 1.66 | ||||||||
| Earnings per share – diluted | $ | 1.97 | 1.64 | ||||||||
| SIGNATURE BANK | ||||||||||
| CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||||||||||
| March 31, | December 31, | |||||||||
| 2016 | 2015 | |||||||||
| (dollars in thousands, except shares and per share amounts) | (unaudited) | |||||||||
| ASSETS | ||||||||||
| Cash and due from banks | $ | 274,960 | 311,254 | |||||||
| Short-term investments | 32,041 | 30,292 | ||||||||
| 307,001 | 341,546 | |||||||||
| Securities available-for-sale | 6,565,679 | 6,240,761 | ||||||||
| Securities held-to-maturity (fair value $2,141,124 at March 31, 2016 | ||||||||||
| and $2,137,913 at December 31, 2015) | 2,092,903 | 2,133,144 | ||||||||
| Federal Home Loan Bank stock | 135,498 | 154,405 | ||||||||
| Loans held for sale | 397,395 | 456,358 | ||||||||
| Loans and leases, net | 24,834,484 | 23,597,541 | ||||||||
| Premises and equipment, net | 45,547 | 44,161 | ||||||||
| Accrued interest and dividends receivable | 97,297 | 94,006 | ||||||||
| Other assets | 421,968 | 388,623 | ||||||||
| Total assets | $ | 34,897,772 | 33,450,545 | |||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||
| Deposits | ||||||||||
| Non-interest-bearing | $ | 8,984,198 | 8,567,300 | |||||||
| Interest-bearing | 19,122,414 | 18,206,623 | ||||||||
| Total deposits | 28,106,612 | 26,773,923 | ||||||||
| Federal funds purchased and securities sold under agreements | ||||||||||
| to repurchase | 845,000 | 817,000 | ||||||||
| Federal Home Loan Bank borrowings | 2,300,000 | 2,720,163 | ||||||||
| Accrued expenses and other liabilities | 277,163 | 247,625 | ||||||||
| Total liabilities | 31,528,775 | 30,558,711 | ||||||||
| Shareholders’ equity | ||||||||||
| Preferred stock, par value $.01 per share; 61,000,000 shares authorized; | ||||||||||
| none issued at March 31, 2016 and December 31, 2015 | - | - | ||||||||
| Common stock, par value $.01 per share; 64,000,000 shares authorized; | ||||||||||
| 54,609,999 shares issued and 53,606,112 shares outstanding at March 31, 2016; | ||||||||||
| 51,929,064 shares issued and 50,901,408 shares outstanding at December 31, 2015; | 536 | 509 | ||||||||
| Additional paid-in capital | 1,726,791 | 1,399,501 | ||||||||
| Retained earnings | 1,611,046 | 1,507,011 | ||||||||
| Treasury stock, none at March 31, 2016 and 41,087 shares at December 31, 2015 | - | (5,684 | ) | |||||||
| Accumulated other comprehensive income (loss) | 30,624 | (9,503 | ) | |||||||
| Total shareholders' equity | 3,368,997 | 2,891,834 | ||||||||
| Total liabilities and shareholders' equity | $ | 34,897,772 | 33,450,545 | |||||||
| SIGNATURE BANK | |||||||||||||||||
| FINANCIAL SUMMARY, CAPITAL RATIOS, ASSET QUALITY | |||||||||||||||||
| (unaudited) | |||||||||||||||||
| Three months ended | |||||||||||||||||
| (in thousands, except ratios and per share amounts) |
March 31,
2016 |
December 31,
2015 |
March 31,
2015 |
||||||||||||||
| PER COMMON SHARE | |||||||||||||||||
| Net income - basic | $ | 1.98 | $ | 2.02 | $ | 1.66 | |||||||||||
| Net income - diluted | $ | 1.97 | $ | 2.01 | $ | 1.64 | |||||||||||
| Average shares outstanding - basic | 52,589 | 50,901 | 50,352 | ||||||||||||||
| Average shares outstanding - diluted | 52,919 | 51,341 | 50,892 | ||||||||||||||
| Book value | $ | 62.85 | $ | 56.81 | $ | 51.71 | |||||||||||
| SELECTED FINANCIAL DATA | |||||||||||||||||
| Return on average total assets | 1.23 | % | 1.25 | % | 1.21 | % | |||||||||||
| Return on average shareholders' equity | 13.37 | % | 14.30 | % | 13.22 | % | |||||||||||
| Efficiency ratio (1) | 32.19 | % | 31.85 | % | 35.12 | % | |||||||||||
|
Efficiency ratio excluding net gains on sales of securities |
32.21 | % | 31.85 | % | 35.13 | % | |||||||||||
| Yield on interest-earning assets | 3.76 | % | 3.71 | % | 3.72 | % | |||||||||||
| Cost of deposits and borrowings | 0.49 | % | 0.46 | % | 0.50 | % | |||||||||||
| Net interest margin | 3.32 | % | 3.30 | % | 3.26 | % | |||||||||||
| (1) | The efficiency ratio is calculated by dividing non-interest expense by the sum of net interest income before provision for loan and lease losses and non-interest income. | |
| (2) | The efficiency ratio excluding net gains on sales of securities and net impairment losses on securities recognized in earnings is considered to be a non-GAAP financial measure and should be considered in addition to, not as a substitute for or superior to, financial measures determined in accordance with GAAP. This ratio is a metric used by management to evaluate the performance of the Bank's core business activities. | |
|
March 31,
2016 |
December 31,
2015 |
March 31,
2015 |
|||||||||||||||
| CAPITAL RATIOS | |||||||||||||||||
| Tangible common equity (3) | 9.61 | % | 8.65 | % | 9.16 | % | |||||||||||
| Tier 1 leverage | 9.79 | % | 8.87 | % | 9.25 | % | |||||||||||
| Common equity Tier 1 risk-based | 12.42 | % | 11.33 | % | 12.27 | % | |||||||||||
| Tier 1 risk-based | 12.42 | % | 11.33 | % | 12.27 | % | |||||||||||
| Total risk-based | 13.19 | % | 12.10 | % | 13.08 | % | |||||||||||
| ASSET QUALITY | |||||||||||||||||
| Non-accrual loans | $ | 105,010 | $ | 71,905 | $ | 27,809 | |||||||||||
| Allowance for loan and lease losses | $ | 207,046 | $ | 195,023 | $ | 170,776 | |||||||||||
| Allowance for loan and lease losses to non-accrual loans | 197.17 | % | 271.22 | % | 614.10 | % | |||||||||||
| Allowance for loan and lease losses to total loans | 0.83 | % | 0.82 | % | 0.88 | % | |||||||||||
| Non-accrual loans to total loans | 0.42 | % | 0.30 | % | 0.14 | % | |||||||||||
| Quarterly net charge-offs to average loans, annualized | 0.13 | % | 0.08 | % | 0.03 | % | |||||||||||
| (3) | We define tangible common equity as the ratio of tangible common equity to adjusted tangible assets (the "TCE ratio") and calculate this ratio by dividing total consolidated common shareholders' equity by consolidated total assets. Tangible common equity is considered to be a non-GAAP financial measure and should be considered in addition to, not as a substitute for or superior to, financial measures determined in accordance with GAAP. The TCE ratio is a metric used by management to evaluate the adequacy of our capital levels. In addition to tangible common equity, management uses other metrics, such as Tier 1 capital related ratios, to evaluate capital levels. | |
| SIGNATURE BANK | |||||||||||||||||||||
| NET INTEREST MARGIN ANALYSIS | |||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||
| Three months ended | Three months ended | ||||||||||||||||||||
| March 31, 2016 | March 31, 2015 | ||||||||||||||||||||
| (dollars in thousands) |
Average |
Interest |
Average |
Average |
Interest |
Average |
|||||||||||||||
| INTEREST-EARNING ASSETS | |||||||||||||||||||||
| Short-term investments | $ | 392,746 | 474 | 0.49 | % | 478,015 | 289 | 0.25 | % | ||||||||||||
| Investment securities | 8,648,278 | 68,112 | 3.15 | % | 8,565,277 | 67,314 | 3.14 | % | |||||||||||||
| Commercial loans, mortgages and leases | 24,086,734 | 242,991 | 4.06 | % | 18,099,019 | 182,631 | 4.09 | % | |||||||||||||
| Residential mortgages and consumer loans | 307,618 | 2,948 | 3.85 | % | 334,845 | 3,132 | 3.79 | % | |||||||||||||
| Loans held for sale | 315,182 | 1,248 | 1.59 | % | 205,406 | 596 | 1.18 | % | |||||||||||||
| Total interest-earning assets | 33,750,558 | 315,773 | 3.76 | % | 27,682,562 | 253,962 | 3.72 | % | |||||||||||||
| Non-interest-earning assets | 391,630 | 295,295 | |||||||||||||||||||
| Total assets | $ | 34,142,188 | 27,977,857 | ||||||||||||||||||
| INTEREST-BEARING LIABILITIES | |||||||||||||||||||||
| Interest-bearing deposits | |||||||||||||||||||||
| NOW and interest-bearing demand | $ | 2,921,912 | 3,290 | 0.45 | % | 1,777,131 | 1,720 | 0.39 | % | ||||||||||||
| Money market | 14,933,194 | 22,249 | 0.60 | % | 13,452,848 | 20,318 | 0.61 | % | |||||||||||||
| Time deposits | 1,094,897 | 2,699 | 0.99 | % | 962,796 | 2,779 | 1.17 | % | |||||||||||||
| Non-interest-bearing demand deposits | 8,739,262 | - | - | 7,190,660 | - | - | |||||||||||||||
| Total deposits | 27,689,265 | 28,238 | 0.41 | % | 23,383,435 | 24,817 | 0.43 | % | |||||||||||||
| Borrowings | 3,001,460 | 9,226 | 1.24 | % | 1,898,829 | 6,648 | 1.42 | % | |||||||||||||
| Total deposits and borrowings | 30,690,725 | 37,464 | 0.49 | % | 25,282,264 | 31,465 | 0.50 | % | |||||||||||||
| Other non-interest-bearing liabilities | |||||||||||||||||||||
| and shareholders' equity | 3,451,463 | 2,695,593 | |||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 34,142,188 | 27,977,857 | ||||||||||||||||||
| OTHER DATA | |||||||||||||||||||||
| Net interest income / interest rate spread | 278,309 | 3.27 | % | 222,497 | 3.22 | % | |||||||||||||||
| Net interest margin | 3.32 | % | 3.26 | % | |||||||||||||||||
| Ratio of average interest-earning assets | |||||||||||||||||||||
| to average interest-bearing liabilities | 109.97 | % | 109.49 | % | |||||||||||||||||
| SIGNATURE BANK | ||
| NON-GAAP FINANCIAL MEASURES | ||
| (unaudited) | ||
|
Management believes that the presentation of certain non-GAAP financial measures assists investors when comparing results period-to-period in a more consistent manner and provides a better measure of Signature Bank's results. These non-GAAP measures include the Bank's (i) net income and diluted earnings per share excluding the after tax effect of net gains on sales of securities and net impairment losses on securities recognized in earnings, (ii) tangible common equity ratio, (iii) efficiency ratio excluding net gains on sales of securities and net impairment losses on securities recognized in earnings, and (iv) core net interest margin excluding loan prepayment penalty income. These non-GAAP measures should not be considered a substitute for GAAP-basis measures and results. We strongly encourage investors to review our consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names. |
||
| The following table presents a reconciliation of net income and diluted earnings per share (as reported) to net income and diluted earnings per share excluding the after tax effect of gains from the sales of securities and net impairment losses on securities recognized in earnings: | ||
| Three months ended March 31, | |||||||||||
| (dollars in thousands, except per share amounts) | 2016 | 2015 | |||||||||
| Net income (as reported) | $ | 104,035 | 83,390 | ||||||||
| Net gains on sales of securities | (237 | ) | (418 | ) | |||||||
| Net impairment losses on securities recognized in earnings | 55 | 341 | |||||||||
| Tax effect | 74 | 32 | |||||||||
| Net income - excluding after tax effect of net gains on sales of securities | |||||||||||
| and net impairment losses on securities recognized in earnings | $ | 103,927 | 83,345 | ||||||||
| Diluted earnings per share (as reported) | $ | 1.97 | 1.64 | ||||||||
| Net gains on sales of securities | (0.01 | ) | (0.01 | ) | |||||||
| Net impairment losses on securities recognized in earnings | - | 0.01 | |||||||||
| Tax effect | - | - | |||||||||
| Diluted earnings per share - excluding after tax effect of net gains on sales | |||||||||||
| of securities and net impairment losses on securities recognized in earnings | $ | 1.96 | 1.64 | ||||||||
| The following table reconciles net interest margin (as reported) to core net interest margin excluding loan prepayment penalty income: | |||||||||||
| Three months ended March 31, | |||||||||||
| 2016 | 2015 | ||||||||||
| Net interest margin (as reported) | 3.32 | % | 3.26 | % | |||||||
| Margin contribution from loan prepayment penalty income | (0.15 | )% | (0.09 | )% | |||||||
| Core net interest margin - excluding loan prepayment penalty income | 3.17 | % | 3.17 | % | |||||||
