Signature Reports Record Q1 Earnings; Notes Taxi Medallion Loans
Signature Bank reported net income for Q1/17 was a record $133.9 million, an increase of $29.9 million, or 28.7%, from $104.0 million in Q1/16. The bank noted net income included a net tax benefit for $14.4 million related to a change in the 2015 New York City tax code.
The following highlights were excerpted from the news release:
- For Q1/17, loans increased $980.4 million, or 3.4%, to $30.02 billion. Since the end of Q1/16, loans have increased 19.9%, or $4.98 billion.
- Net interest income for Q1/17 was $301.8 million, an increase of $23.4 million, or 8.4%, versus the same period last year, primarily due to growth in average interest-earning assets.
- Average interest-earning assets of $39.11 billion for Q1/17 represent an increase of $5.36 billion, or 15.9%, from Q1/16. Yield on interest-earning assets for Q1/17 declined 12 basis points to 3.64%, compared to Q1/16.
- Non-accrual loans were $225.9 million, or 0.75% of total loans, at the end of Q1/17, versus $105.0 million, or 0.42%, at the end of Q1/16. The increase in non-accrual loans for the quarter was predominantly due to taxi medallion loans.
“We are pleased to begin 2017 by reporting another quarter of record earnings, driven by strong deposit and loan growth. Our results directly reflect the core values on which this institution was built nearly 16 years ago, to which we have remained steadfast since first opening our doors. The structure upon which Signature Bank was founded is straightforward. We continually execute on our sound and secure business plan that emphasizes a single-point-of-contact approach to relationship banking. All the necessary fundamentals have been put in place to allow us to face challenges that may arise, and we are confident in our abilities to successfully address them,” said Joseph J. DePaolo, co-founder, president and CEO.