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Signature Bank

Nasdaq:SBNY
Snowflake Description

Flawless balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SBNY
Nasdaq
$7B
Market Cap
  1. Home
  2. US
  3. Banks
Company description

Signature Bank provides various business and personal banking products and services. The last earnings update was 12 days ago. More info.


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SBNY Share Price and Events
7 Day Returns
-3.5%
NasdaqGS:SBNY
1.8%
US Banks
1.2%
US Market
1 Year Returns
-16.1%
NasdaqGS:SBNY
-9%
US Banks
3%
US Market
SBNY Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Signature Bank (SBNY) -3.5% -3.7% 25.4% -16.1% -6.7% 3.3%
US Banks 1.8% 0.6% 15.7% -9% 49.7% 41.2%
US Market 1.2% 2.1% 14.6% 3% 39% 43.5%
1 Year Return vs Industry and Market
  • SBNY underperformed the Banks industry which returned -9% over the past year.
  • SBNY underperformed the Market in United States of America which returned 3% over the past year.
Price Volatility
SBNY
Industry
5yr Volatility vs Market

Value

 Is Signature Bank undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Signature Bank to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Signature Bank.

NasdaqGS:SBNY Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 16 analysts.
= Stable Book Value * Return on Equity
= $93.16 * 13.4%
$12.49
Book Value of Equity per Share Weighted future Book Value estimates from 12 analysts. $93.16
Discount Rate (Cost of Equity) See below 9%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:SBNY
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.64
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.637 (1 + (1- 21%) (86.66%))
1.048
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.05
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.048 * 5.96%)
8.98%

Discounted Cash Flow Calculation for NasdaqGS:SBNY using Excess Returns Model Model

The calculations below outline how an intrinsic value for Signature Bank is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NasdaqGS:SBNY Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (13.4% – 8.98%) * $93.16)
$4.12
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $4.12 / (8.98% - 2.73%)
$66.01
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $93.16 + $66.01
$159.17
NasdaqGS:SBNY Discount to Share Price
Calculation Result
Value per share (USD) From above. $159.17
Current discount Discount to share price of $128.64
= -1 x ($128.64 - $159.17) / $159.17
19.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Signature Bank is available for.
Intrinsic value
19%
Share price is $128.64 vs Future cash flow value of $159.17
Current Discount Checks
For Signature Bank to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Signature Bank's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Signature Bank's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Signature Bank's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Signature Bank's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:SBNY PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $9.27
NasdaqGS:SBNY Share Price ** NasdaqGS (2019-03-20) in USD $128.64
United States of America Banks Industry PE Ratio Median Figure of 587 Publicly-Listed Banks Companies 13.22x
United States of America Market PE Ratio Median Figure of 3,058 Publicly-Listed Companies 17.69x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Signature Bank.

NasdaqGS:SBNY PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:SBNY Share Price ÷ EPS (both in USD)

= 128.64 ÷ 9.27

13.87x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Signature Bank is overvalued based on earnings compared to the US Banks industry average.
  • Signature Bank is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Signature Bank's expected growth come at a high price?
Raw Data
NasdaqGS:SBNY PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.87x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts
11.8%per year
United States of America Banks Industry PEG Ratio Median Figure of 260 Publicly-Listed Banks Companies 1.21x
United States of America Market PEG Ratio Median Figure of 2,103 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

NasdaqGS:SBNY PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.87x ÷ 11.8%

1.18x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Signature Bank is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Signature Bank's assets?
Raw Data
NasdaqGS:SBNY PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $81.30
NasdaqGS:SBNY Share Price * NasdaqGS (2019-03-20) in USD $128.64
United States of America Banks Industry PB Ratio Median Figure of 592 Publicly-Listed Banks Companies 1.24x
United States of America Market PB Ratio Median Figure of 5,156 Publicly-Listed Companies 1.89x
NasdaqGS:SBNY PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:SBNY Share Price ÷ Book Value per Share (both in USD)

= 128.64 ÷ 81.30

1.58x

* Primary Listing of Signature Bank.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Signature Bank is overvalued based on assets compared to the US Banks industry average.
X
Value checks
We assess Signature Bank's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. Signature Bank has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Signature Bank expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
11.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Signature Bank expected to grow at an attractive rate?
  • Signature Bank's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Signature Bank's earnings growth is positive but not above the United States of America market average.
  • Signature Bank's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:SBNY Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:SBNY Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts 11.8%
NasdaqGS:SBNY Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 16 Analysts 11.4%
United States of America Banks Industry Earnings Growth Rate Market Cap Weighted Average 4.5%
United States of America Banks Industry Revenue Growth Rate Market Cap Weighted Average 5.4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:SBNY Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:SBNY Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 1,606 696 1
2020-12-31 1,500 656 9
2019-12-31 1,384 621 9
NasdaqGS:SBNY Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 1,160 652 504
2018-09-30 1,112 305 459
2018-06-30 1,092 482 428
2018-03-31 903 191 288
2017-12-31 1,010 546 387
2017-09-30 1,008 844 386
2017-06-30 927 682 338
2017-03-31 1,059 752 426
2016-12-31 1,034 565 396
2016-09-30 1,011 607 385
2016-06-30 1,036 410 405
2016-03-31 1,011 384 394

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Signature Bank's earnings are expected to grow by 11.8% yearly, however this is not considered high growth (20% yearly).
  • Signature Bank's revenue is expected to grow by 11.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:SBNY Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below

All data from Signature Bank Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:SBNY Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 13.12 13.12 13.12 1.00
2020-12-31 12.37 12.80 11.59 16.00
2019-12-31 11.50 11.70 11.13 17.00
NasdaqGS:SBNY Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 9.27
2018-09-30 8.45
2018-06-30 7.90
2018-03-31 5.32
2017-12-31 7.17
2017-09-30 7.17
2017-06-30 6.28
2017-03-31 7.94
2016-12-31 7.42
2016-09-30 7.31
2016-06-30 7.80
2016-03-31 7.67

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Signature Bank is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Signature Bank's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Signature Bank has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Signature Bank performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Signature Bank's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Signature Bank's year on year earnings growth rate has been positive over the past 5 years.
  • Signature Bank's 1-year earnings growth exceeds its 5-year average (30.3% vs 10.6%)
  • Signature Bank's earnings growth has not exceeded the US Banks industry average in the past year (30.3% vs 43.2%).
Earnings and Revenue History
Signature Bank's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Signature Bank Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:SBNY Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 1,159.74 504.43 461.02
2018-09-30 1,111.76 458.92 448.84
2018-06-30 1,092.37 428.39 437.07
2018-03-31 902.92 287.77 441.36
2017-12-31 1,010.33 387.21 408.07
2017-09-30 1,008.46 386.28 394.48
2017-06-30 926.93 337.92 386.65
2017-03-31 1,059.26 426.21 365.22
2016-12-31 1,034.22 396.32 355.51
2016-09-30 1,010.56 385.38 349.75
2016-06-30 1,035.92 405.49 341.54
2016-03-31 1,011.49 393.71 334.79
2015-12-31 969.29 373.07 325.33
2015-09-30 923.76 351.49 314.09
2015-06-30 882.97 332.07 302.84
2015-03-31 844.33 314.09 291.53
2014-12-31 805.02 296.70 280.80
2014-09-30 762.86 279.64 272.63
2014-06-30 721.45 263.00 263.90
2014-03-31 677.14 244.12 255.40
2013-12-31 638.71 228.74 237.63
2013-09-30 611.07 214.54 240.82
2013-06-30 586.76 202.07 233.42
2013-03-31 566.38 193.75 226.82
2012-12-31 544.62 185.48 218.24
2012-09-30 517.55 175.33 207.27
2012-06-30 492.17 165.98 198.03
2012-03-31 468.78 157.31 188.41

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Signature Bank has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Signature Bank used its assets more efficiently than the US Banks industry average last year based on Return on Assets.
  • Unable to establish if Signature Bank improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Signature Bank's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Signature Bank has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Signature Bank's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Signature Bank's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Signature Bank Company Filings, last reported 2 months ago.

NasdaqGS:SBNY Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 4,407.14 6,049.21 320.88
2018-09-30 4,238.00 5,044.59 197.58
2018-06-30 4,147.62 5,637.77 543.92
2018-03-31 4,001.17 5,257.58 842.53
2017-12-31 4,031.69 5,245.08 337.84
2017-09-30 3,931.95 3,319.18 293.76
2017-06-30 3,797.25 3,567.88 532.05
2017-03-31 3,764.86 3,167.68 731.54
2016-12-31 3,612.26 3,200.49 150.65
2016-09-30 3,561.60 2,582.45 686.53
2016-06-30 3,494.49 3,221.35 290.23
2016-03-31 3,369.00 3,145.00 307.00
2015-12-31 2,891.83 3,537.16 27.05
2015-09-30 2,821.68 2,250.16 288.00
2015-06-30 2,699.32 2,553.16 98.21
2015-03-31 2,619.94 1,790.16 258.29
2014-12-31 2,496.24 2,050.16 89.88
2014-09-30 2,401.47 2,075.16 315.70
2014-06-30 2,290.22 2,316.31 271.45
2014-03-31 1,912.15 2,769.31 117.01
2013-12-31 1,799.94 3,370.31 8.58
2013-09-30 1,760.60 3,044.31 67.61
2013-06-30 1,706.27 2,567.16 137.90
2013-03-31 1,714.98 1,577.16 96.34
2012-12-31 1,650.33 1,585.00 93.97
2012-09-30 1,584.28 1,116.00 50.13
2012-06-30 1,516.14 1,290.63 97.52
2012-03-31 1,463.69 1,181.29 58.95
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Signature Bank has an acceptable proportion of non-loan assets held.
  • Signature Bank's liabilities are made up of primarily low risk sources of funding.
  • Loans at Signature Bank are broadly funded by customer deposits.
  • Signature Bank's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).
  • Signature Bank has a sufficient allowance for bad loans.
  • Signature Bank has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess Signature Bank's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Signature Bank has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Signature Bank's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.74%
Current annual income from Signature Bank dividends. Estimated to be 1.83% next year.
If you bought $2,000 of Signature Bank shares you are expected to receive $35 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Signature Bank's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).
  • Signature Bank's dividend is below the markets top 25% of dividend payers in United States of America (3.64%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:SBNY Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
United States of America Banks Industry Average Dividend Yield Market Cap Weighted Average of 470 Stocks 2.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2004 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:SBNY Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 2.72 1.00
2020-12-31 2.43 15.00
2019-12-31 2.26 16.00
NasdaqGS:SBNY Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-03-08 2.240 1.672
2019-01-17 2.240 1.705
2018-07-19 2.240 1.976

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • It is too early to tell whether Signature Bank has stable dividend payments.
  • Signature Bank only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to shareholders
What portion of Signature Bank's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by earnings (8.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4.6x coverage).
X
Income/ dividend checks
We assess Signature Bank's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Signature Bank afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Signature Bank has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Signature Bank's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Joe DePaolo
COMPENSATION $8,667,124
AGE 59
TENURE AS CEO 18.2 years
CEO Bio

Mr. Joseph J. DePaolo, also known as Joe, is Co-Founder of Signature Bank and has been its the Chief Executive Officer and President since 2000. Mr. DePaolo has been an Executive Director of Signature Bank since 2000. He spent 13 years in various roles at Republic National Bank. He served as the Managing Director and member of the Senior Management Committee of the Consumer Financial Services Division at Republic National Bank, which he joined in 1988. At Republic National Bank, Mr. DePaolo held numerous positions including First Vice President and Deputy Auditor, First Vice President and Senior Vice President of Consumer Banking and Managing Director. Prior to joining Republic National Bank, he served as a senior audit manager with KPMG Peat Marwick. He served as the President of Signature Bank since 2000. He has also served as a Director of Signature Securities Group since its inception and served as its Chairman of the Board of Directors until December 2006. He served as the Chairman of Republic Financial Services Corporation (Republic National Bank's retail broker-dealer group) and Chairman of Republic Insurance Agency (Republic National Bank's retail insurance agency). Mr. DePaolo serves as a Member of the New York State Society of CPAs.

CEO Compensation
  • Joe's compensation has been consistent with company performance over the past year.
  • Joe's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Signature Bank management team in years:

14.3
Average Tenure
59
Average Age
  • The average tenure for the Signature Bank management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Scott Shay

TITLE
Co-Founder & Chairman of the Board
COMPENSATION
$6M
AGE
60

Joe DePaolo

TITLE
Co-Founder
COMPENSATION
$9M
AGE
59
TENURE
18.2 yrs

John Tamberlane

TITLE
Co-Founder & Vice Chairman
COMPENSATION
$4M
AGE
76

Vito Susca

TITLE
Executive VP & CFO
COMPENSATION
$3M
AGE
49
TENURE
5.8 yrs

Mark Sigona

TITLE
Executive VP & COO
COMPENSATION
$4M
AGE
56
TENURE
14.3 yrs

Michael Sharkey

TITLE
Senior VP & CTO
AGE
60
TENURE
14.3 yrs

Eric Howell

TITLE
Executive Vice President of Corporate & Business Development
COMPENSATION
$4M
AGE
48

Ana Harris

TITLE
Director

Thomas Rogers

TITLE
Head of Private Client Group Team

Craig Spatz

TITLE
Senior VP & Group Director of Woodmere Office
TENURE
14.4 yrs
Board of Directors Tenure

Average tenure and age of the Signature Bank board of directors in years:

13.5
Average Tenure
60
Average Age
  • The average tenure for the Signature Bank board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Scott Shay

TITLE
Co-Founder & Chairman of the Board
COMPENSATION
$6M
AGE
60
TENURE
18.2 yrs

Joe DePaolo

TITLE
Co-Founder
COMPENSATION
$9M
AGE
59
TENURE
18.2 yrs

John Tamberlane

TITLE
Co-Founder & Vice Chairman
COMPENSATION
$4M
AGE
76
TENURE
18.2 yrs

Alfonse D'Amato

TITLE
Director
COMPENSATION
$430K
AGE
80
TENURE
13.7 yrs

Judith Huntington

TITLE
Director
COMPENSATION
$442K
AGE
54
TENURE
5.9 yrs

Kathryn Byrne

TITLE
Lead Director
COMPENSATION
$432K
AGE
52
TENURE
3.8 yrs

Jeffrey Meshel

TITLE
Director
COMPENSATION
$423K
AGE
60
TENURE
13.5 yrs

John Sullivan

TITLE
Member of the Advisory Board
AGE
47

Barney Frank

TITLE
Director
COMPENSATION
$414K
AGE
77
TENURE
3.8 yrs

Derrick Cephas

TITLE
Director
COMPENSATION
$440K
AGE
66
TENURE
2.9 yrs
Who owns this company?
Recent Insider Trading
  • Signature Bank insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
20. Feb 19 Sell Judith Huntington Individual 20. Feb 19 20. Feb 19 -500 $136.16 $-68,080
28. Jan 19 Sell Michael Sharkey Individual 28. Jan 19 28. Jan 19 -25,000 $125.22 $-3,130,500
22. Jan 19 Sell Judith Huntington Individual 22. Jan 19 22. Jan 19 -500 $124.39 $-62,195
17. Dec 18 Sell Judith Huntington Individual 17. Dec 18 17. Dec 18 -415 $108.91 $-45,198
15. Nov 18 Buy Mark Sigona Individual 15. Nov 18 15. Nov 18 551 $116.54 $64,214
01. Nov 18 Sell Barney Frank Individual 01. Nov 18 01. Nov 18 -400 $111.11 $-44,444
29. Oct 18 Sell Peter Quinlan Individual 29. Oct 18 29. Oct 18 -4,000 $112.94 $-451,760
18. Aug 18 Buy Michael Sharkey Individual 10. May 18 10. May 18 9,200 $129.68 $1,193,056
27. Jul 18 Buy Scott Shay Individual 27. Jul 18 27. Jul 18 20,000 $0.01 $112
26. Mar 18 Sell John Tamberlane Individual 23. Mar 18 23. Mar 18 -11,867 $143.62 $-1,704,339
26. Mar 18 Sell Mark Sigona Individual 23. Mar 18 23. Mar 18 -10,867 $143.62 $-1,560,719
26. Mar 18 Sell Peter Quinlan Individual 23. Mar 18 23. Mar 18 -11,866 $143.62 $-1,704,195
26. Mar 18 Sell Joseph DePaolo Individual 23. Mar 18 23. Mar 18 -25,901 $143.62 $-3,719,902
26. Mar 18 Sell Michael Sharkey Individual 23. Mar 18 23. Mar 18 -7,305 $143.62 $-1,049,144
24. Apr 18 Sell Derrick Cephas Individual 23. Apr 18 23. Apr 18 -1,100 $128.64 $-141,504
19. Apr 18 Sell John Tamberlane Individual 18. Apr 18 18. Apr 18 -4,024 $136.64 $-549,839
19. Apr 18 Sell Joseph DePaolo Individual 18. Apr 18 18. Apr 18 -10,117 $136.64 $-1,382,387
19. Apr 18 Sell Eric Howell Individual 18. Apr 18 18. Apr 18 -10,554 $136.64 $-1,442,099
19. Apr 18 Sell Peter Quinlan Individual 18. Apr 18 18. Apr 18 -4,024 $136.64 $-549,839
19. Apr 18 Sell Michael Sharkey Individual 18. Apr 18 18. Apr 18 -3,703 $136.64 $-505,978
19. Apr 18 Sell Mark Sigona Individual 18. Apr 18 18. Apr 18 -5,184 $136.64 $-708,342
26. Mar 18 Sell Eric Howell Individual 23. Mar 18 23. Mar 18 -23,016 $143.62 $-3,305,558
X
Management checks
We assess Signature Bank's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Signature Bank has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

What To Know Before Buying Signature Bank (NASDAQ:SBNY) For Its Dividend

A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. … Signature Bank (NASDAQ:SBNY) has started paying a dividend to shareholders. … Let's dig deeper into whether Signature Bank should have a place in your portfolio.

Simply Wall St -

Signature Bank (NASDAQ:SBNY): What Can We Expect From This High Growth Stock?

Signature Bank's (NASDAQ:SBNY) released its most recent earnings update in December 2018, whicha … confirmed

Simply Wall St -

Is Signature Bank (NASDAQ:SBNY) Expensive For A Reason? A Look At The Intrinsic Value

Help shape the future of investing tools and receive a $20 prize! … Valuing SBNY, a bank stock, can be daunting since these financial companies have cash flows that are impacted by regulations that are not imposed upon other industries. … For instance, banks must hold a certain level of cash reserves on the books as a safety precaution.

Simply Wall St -

Is Signature Bank (NASDAQ:SBNY) Over-Exposed To Risk?

As a small-cap bank with a market capitalisation of US$7.3b, Signature Bank’s (NASDAQ:SBNY) profit and value are directly affected by economic growth. … Risk associated with repayment is measured by bad debt which is written off as an expense, impacting Signature Bank’s bottom line. … Looking through a risk-lens is a useful way to assess the attractiveness of Signature Bank's a stock investment.

Simply Wall St -

Why Signature Bank's (NASDAQ:SBNY) High P/E Ratio Isn't Necessarily A Bad Thing

To keep it practical, we'll show how Signature Bank's (NASDAQ:SBNY) P/E ratio could help you assess the value on offer. … Signature Bank has a price to earnings ratio of 13.71, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Have Investors Priced In Signature Bank's (NASDAQ:SBNY) Growth?

Looking at Signature Bank’s (NASDAQ:SBNY) fundamentals some investors are wondering if its last closing price of $125.35 represents a good value for money for this high growth stock. … View our latest analysis for Signature Bank? … Investors in Signature Bank have been patiently waiting for the uptick in earnings.

Simply Wall St -

Why Signature Bank (NASDAQ:SBNY) Could Be Worth Watching

As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … However, could the stock still be trading at a relatively cheap price. … Let’s examine Signature Bank’s valuation and outlook in more detail to determine if there’s still a bargain opportunity

Simply Wall St -

Why These Fundamentals Make Signature Bank’s (NASDAQ:SBNY) More Attractive

Signature Bank’s (NASDAQ:SBNY) profitability and risk are largely affected by the underlying economic growth for the region it operates in US given it is a small-cap stock with a market capitalisation of US$5.6b. … These reforms target banking regulations and intends to enhance financial institutions’ ability to absorb shocks resulting from economic stress which could expose banks like Signature Bank to vulnerabilities. … Since its financial standing can unexpectedly decline in the case of an adverse macro event such as political instability, it is important to understand how prudent the bank is at managing its risk levels.

Simply Wall St -

Have Insiders Been Selling Signature Bank (NASDAQ:SBNY) Shares?

So before you buy or sell Signature Bank (NASDAQ:SBNY), you may well want to know whether insiders have been buying or selling. … In the last twelve months, the biggest single sale by an insider was when Co-Founder Joseph DePaolo sold US$3.7m worth of shares at a price of US$144 per share. … All up, insiders sold more shares in Signature Bank than they bought, over the last year

Simply Wall St -

Is Signature Bank (NASDAQ:SBNY) A Smart Pick For Income Investors?

Signature Bank (NASDAQ:SBNY) has started paying a dividend to shareholders. … Does Signature Bank tick all the boxes of a great dividend stock? … 5 questions I ask before picking a dividend stock

Simply Wall St -

Company Info

Description

Signature Bank provides various business and personal banking products and services. It accepts various deposit products, including commercial checking accounts, money market accounts, escrow deposit accounts, cash concentration accounts, interest-bearing and non-interest-bearing checking accounts, certificates of deposit, time deposits, and other cash management products. The company also offers loan products comprising commercial and industrial loans; real estate loans, such as loans secured by commercial and residential properties, and construction and land loans; temporary financing for commercial and residential properties; letters of credit; and personal lines of credit and loans to acquire personal assets, as well as asset-based lending, mortgages, home equity loans, and credit card accounts. In addition, it provides investment, brokerage, and asset management products and services; retirement products, such as individual retirement accounts and administrative services for retirement vehicles, which include pension, profit sharing, and 401(k) plans to its clients, as well as business retirement accounts; and a range of financing and leasing products consisting of equipment, transportation, taxi medallion, commercial marine, and municipal and national franchise financing services. Further, the company offers wealth management services to its high net worth personal clients; and a range of individual and group insurance products that comprise health, life, disability, and long-term care insurance products as an agent. Additionally, it purchases, securitizes, and sells guaranteed portions of the U.S. small business administration loans. As of December 31, 2017, the company operated 30 private client offices located in the New York metropolitan area, which included Manhattan, Brooklyn, Westchester, Long Island, Queens, the Bronx, Staten Island, and Connecticut. Signature Bank was incorporated in 2000 and is headquartered in New York, New York.

Details
Name: Signature Bank
SBNY
Exchange: NasdaqGS
Founded: 2000
$6,980,383,829
54,262,934
Website: http://www.signatureny.com
Address: Signature Bank
565 Fifth Avenue,
New York,
New York, 10017,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS SBNY Common Stock Nasdaq Global Select US USD 23. Mar 2004
DB TQJ Common Stock Deutsche Boerse AG DE EUR 23. Mar 2004
BMV SBNY * Common Stock Bolsa Mexicana de Valores MX MXN 23. Mar 2004
Number of employees
Current staff
Staff numbers
1,393
Signature Bank employees.
Industry
Regional Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/20 23:58
End of day share price update: 2019/03/20 00:00
Last estimates confirmation: 2019/03/15
Last earnings filing: 2019/03/08
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.