NasdaqGS:SBNY

Stock Analysis Report

Executive Summary

Signature Bank provides various business and personal banking products and services.


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has Signature Bank's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SBNY has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.7%

SBNY

-1.2%

US Banks

-1.1%

US Market


1 Year Return

7.0%

SBNY

10.3%

US Banks

17.9%

US Market

Return vs Industry: SBNY underperformed the US Banks industry which returned 10.3% over the past year.

Return vs Market: SBNY underperformed the US Market which returned 17.9% over the past year.


Shareholder returns

SBNYIndustryMarket
7 Day0.7%-1.2%-1.1%
30 Day-0.3%-0.3%1.4%
90 Day16.8%-0.9%6.9%
1 Year8.8%7.0%13.5%10.3%20.3%17.9%
3 Year-4.4%-7.4%24.0%15.1%47.8%38.3%
5 Year21.6%17.9%73.8%54.1%71.9%53.0%

Price Volatility Vs. Market

How volatile is Signature Bank's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Signature Bank undervalued compared to its fair value and its price relative to the market?

28.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SBNY ($145.37) is trading below our estimate of fair value ($204.02)

Significantly Below Fair Value: SBNY is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SBNY is poor value based on its PE Ratio (13.3x) compared to the Banks industry average (12.6x).

PE vs Market: SBNY is good value based on its PE Ratio (13.3x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: SBNY is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: SBNY is overvalued based on its PB Ratio (1.6x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

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

5.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SBNY's forecast earnings growth (5.1% per year) is above the savings rate (1.7%).

Earnings vs Market: SBNY's earnings (5.1% per year) are forecast to grow slower than the US market (14.1% per year).

High Growth Earnings: SBNY's earnings are forecast to grow, but not significantly.

Revenue vs Market: SBNY's revenue (9% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: SBNY's revenue (9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SBNY's Return on Equity is forecast to be low in 3 years time (11.7%).


Next Steps

Past Performance

How has Signature Bank performed over the past 5 years?

12.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SBNY has high quality earnings.

Growing Profit Margin: SBNY's current net profit margins (44.7%) are higher than last year (43.5%).


Past Earnings Growth Analysis

Earnings Trend: SBNY's earnings have grown by 12.8% per year over the past 5 years.

Accelerating Growth: SBNY's earnings growth over the past year (16.8%) exceeds its 5-year average (12.8% per year).

Earnings vs Industry: SBNY earnings growth over the past year (16.8%) exceeded the Banks industry 12.2%.


Return on Equity

High ROE: SBNY's Return on Equity (12.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

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


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: SBNY has a low level of unsold assets or inventory.

Debt Coverage by Assets: SBNY's debt is not covered by short term assets (assets are 0.3x debt).


Financial Institutions Analysis

Asset Level: SBNY's level of assets compared to its equity is moderate.

Allowance for Bad Loans: SBNY has a sufficient allowance for bad loans.

Low Risk Liabilities: SBNY's liabilities are made up of primarily low risk sources of funding.

Loan Level: SBNY has an acceptable proportion of non-loan assets held.

Low Risk Deposits: SBNY's loans are broadly funded by customer deposits.

Level of Bad Loans: SBNY has an appropriate level of bad loans (0.15%)


Next Steps

Dividend

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

1.54%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SBNY's dividend (1.54%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: SBNY's dividend (1.54%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, SBNY has been paying a dividend for less than 10 years.

Growing Dividend: SBNY has only been paying a dividend for 2 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (20.5%), SBNY's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SBNY's dividends in 3 years are forecast to be well covered by earnings (20.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

15.3yrs

Average management tenure


CEO

Joe DePaolo (60yo)

19.1yrs

Tenure

US$8,667,124

Compensation

Mr. Joseph John 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 a Director of Signature Bank since 20 ...


CEO Compensation Analysis

Compensation vs Market: Joe's total compensation ($USD8.67M) is above average for companies of similar size in the US market ($USD6.39M).

Compensation vs Earnings: Joe's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Scott Shay
Co-Founder & Chairman of the Board19.1yrsUS$5.66m0.88% $67.5m
Joseph DePaolo
Co-Founder19.1yrsUS$8.67m0.44% $33.9m
John Tamberlane
Co-Founder & Vice Chairman19.1yrsUS$4.43m0.29% $22.3m
Vito Susca
Executive VP & CFO6.8yrsUS$2.63m0.080% $6.1m
Mark Sigona
Executive VP & COO15.3yrsUS$4.40m0.32% $24.8m
Michael Sharkey
Senior VP & CTO15.3yrsno data0.073% $5.6m
Eric Howell
Executive Vice President of Corporate & Business Development0yrsUS$4.23m0.16% $12.3m
Ana Harris
Director0yrsno datano data
Thomas Rogers
Head of Private Client Group Team0yrsno datano data
Craig Spatz
Senior VP & Group Director of Woodmere Office15.3yrsno datano data

15.3yrs

Average Tenure

60yo

Average Age

Experienced Management: SBNY's management team is seasoned and experienced (15.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Scott Shay
Co-Founder & Chairman of the Board19.1yrsUS$5.66m0.88% $67.5m
Joseph DePaolo
Co-Founder19.1yrsUS$8.67m0.44% $33.9m
John Tamberlane
Co-Founder & Vice Chairman19.1yrsUS$4.43m0.29% $22.3m
Derrick Cephas
Independent Director3.8yrsUS$440.25k0.010% $785.2k
Alfonse D'Amato
Independent Director14.6yrsUS$429.75k0.033% $2.5m
Jeffrey Meshel
Independent Director14.4yrsUS$423.25k0.045% $3.5m
Kathryn Byrne
Lead Director4.7yrsUS$431.75k0.024% $1.8m
John Sullivan
Member of the Advisory Board0yrsno datano data
Judith Huntington
Independent Director6.8yrsUS$441.75k0.019% $1.5m
Barney Frank
Independent Director4.7yrsUS$413.75k0.012% $943.7k

14.4yrs

Average Tenure

61yo

Average Age

Experienced Board: SBNY's board of directors are seasoned and experienced ( 14.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SBNY insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Signature Bank's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Signature Bank
  • Ticker: SBNY
  • Exchange: NasdaqGS
  • Founded: 2000
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$7.653b
  • Shares outstanding: 52.65m
  • Website: https://www.signatureny.com

Number of Employees


Location

  • Signature Bank
  • 565 Fifth Avenue
  • New York
  • New York
  • 10017
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SBNYNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMar 2004
TQJDB (Deutsche Boerse AG)YesCommon StockDEEURMar 2004
SBNY *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNMar 2004
SBNY34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REP 0.5 COM USD0.01BRBRLMay 2019

Biography

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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 01:16
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.