Signature Bank’s bottom line beats consensus on rate hikes and loan growth (NASDAQ:SBNY)


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Signature Bank (NASDAQ: SBNY) plunged stock 3.3% on Tuesday ahead of the market as its third-quarter results were mixed, although its bottom line beat expectations as its net interest income was supported by higher interest rates.

Q3 EPS of $5.57 exceeded the average analyst estimate of $5.42 and jumped from $3.88 a year ago.

Total revenue of $717.74 million, however, missed the Wall Street consensus of $737.63 million, but climbed from $512.2 million a year earlier.

Net interest income (before provision for credit losses) jumped 40.2% to $674.0 million from a year ago. In turn, the net interest margin of 2.37% improved from 1.88% in the third quarter of 2021.

Provision for credit losses was $29.01m, compared to $3.99m in Q3 2021.

The average common stock return was 18.42% compared to 13.63% in the second quarter and 17.93% in the third quarter of last year.

Loans increased 26% year-on-year to $73.84 billion; deposits increased 7.5% to $102.78 billion. The lower increase in deposits reflects a $3 billion shortfall from its digital asset banking team.

The lender declared a cash dividend of $0.56 per share, payable on or after November 10, 2022 to common shareholders of record at the close of business on October 28, 2022. It also declared a cash dividend of $12.50 per share on or after December 30, 2022 to preferred shareholders of record at the close of business on December 16, 2022.

The conference call begins at 9:00 a.m. ET.

Earlier, Signature Bank GAAP EPS $5.57 beats $0.15, revenue $717.74M misses $19.89M.


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