NasdaqGS:SBNY

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 28.8% below its fair value

Earnings are forecast to grow 3.91% per year

Earnings have grown 12.8% per year over the past 5 years

Risk Analysis

Unstable dividend track record



Snowflake Analysis

Flawless balance sheet with proven 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

5.1%

SBNY

-1.0%

US Banks

-0.09%

US Market


1 Year Return

16.2%

SBNY

14.7%

US Banks

23.9%

US Market

Return vs Industry: SBNY matched the US Banks industry which returned 15.3% over the past year.

Return vs Market: SBNY underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

SBNYIndustryMarket
7 Day5.1%-1.0%-0.09%
30 Day7.2%-3.0%3.1%
90 Day20.3%4.5%10.4%
1 Year18.2%16.2%18.0%14.7%26.6%23.9%
3 Year-6.2%-8.8%28.6%19.4%50.9%41.2%
5 Year28.4%24.9%86.7%65.8%78.1%58.5%

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?

26.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SBNY ($137.93) is trading below our estimate of fair value ($193.66)

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 (12.8x).

PE vs Market: SBNY is good value based on its PE Ratio (12.4x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: SBNY is poor value based on its PEG Ratio (3.2x)


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 14 analysts?

4.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SBNY's forecast earnings growth (3.9% per year) is above the savings rate (1.7%).

Earnings vs Market: SBNY's earnings (3.9% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: SBNY's revenue (8.1% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: SBNY's revenue (8.1% 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 (12.1%).


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 (45.6%) are higher than last year (41.3%).


Past Earnings Growth Analysis

Earnings Trend: SBNY's earnings have grown by 12.7% per year over the past 5 years.

Accelerating Growth: SBNY's earnings growth over the past year (30.7%) exceeds its 5-year average (12.7% per year).

Earnings vs Industry: SBNY earnings growth over the past year (16.8%) underperformed the Banks industry 25.9%.


Return on Equity

High ROE: SBNY's Return on Equity (12.7%) 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 (0.09%)


Next Steps

Dividend

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

1.53%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Signature Bank before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.5%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years1.6%

Current dividend yield vs market & industry

Notable Dividend: SBNY's dividend (1.62%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: SBNY's dividend (1.62%) is low compared to the top 25% of dividend payers in the US market (3.66%).


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 (20.2%), 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 (19.3% payout ratio).


Next Steps

Management

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

15.2yrs

Average management tenure


CEO

Joe DePaolo (60yo)

19yrs

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 ($USD8.67M) is above average for companies of similar size in the US market ($USD6.46M).

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


Management Age and Tenure

15.2yrs

Average Tenure

60yo

Average Age

Experienced Management: SBNY's management team is seasoned and experienced (15.2 years average tenure).


Board Age and Tenure

14.3yrs

Average Tenure

61yo

Average Age

Experienced Board: SBNY's board of directors are seasoned and experienced ( 14.3 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$27,84017 Dec 19
Kevin Hickey
EntityIndividual
Shares204
Max PriceUS$136.47
SellUS$67,11512 Dec 19
Barney Frank
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares500
Max PriceUS$134.23
SellUS$496,12013 Nov 19
Peter Quinlan
EntityIndividual
Shares4,000
Max PriceUS$124.03
SellUS$35,30113 Jun 19
Judith Huntington
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares300
Max PriceUS$117.67
SellUS$529,04030 Apr 19
Peter Quinlan
EntityIndividual
Shares4,000
Max PriceUS$132.26
SellUS$534,15623 Apr 19
Michael Sharkey
EntityIndividual
Role
Chief Technology Officer
Senior VP & CTO
Shares4,200
Max PriceUS$127.18
SellUS$1,534,48112 Apr 19
John Tamberlane
EntityIndividual
Role
Vice Chairman
Co-Founder & Vice Chairman
Shares12,342
Max PriceUS$124.33
BuyUS$315,25012 Apr 19
Judith Huntington
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,500
Max PriceUS$126.10
BuyUS$315,25012 Apr 19
Barney Frank
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,500
Max PriceUS$126.10
BuyUS$709,56512 Apr 19
Joseph DePaolo
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares5,627
Max PriceUS$126.10
BuyUS$473,00112 Apr 19
John Tamberlane
EntityIndividual
Role
Vice Chairman
Co-Founder & Vice Chairman
Shares3,751
Max PriceUS$126.10
BuyUS$315,25012 Apr 19
Derrick Cephas
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,500
Max PriceUS$126.10
SellUS$2,183,35912 Apr 19
Eric Howell
EntityIndividual
Role
Head of Investor Relations
Executive Vice President of Corporate & Business Development
Shares17,561
Max PriceUS$124.33
SellUS$1,913,19012 Apr 19
Scott Shay
EntityIndividual
Role
Chairman of the Board
Co-Founder & Chairman of the Board
Shares15,388
Max PriceUS$124.33
SellUS$842,08712 Apr 19
Michael Sharkey
EntityIndividual
Role
Chief Technology Officer
Senior VP & CTO
Shares6,773
Max PriceUS$124.33
SellUS$871,92612 Apr 19
Vito Susca
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares7,013
Max PriceUS$124.33
SellUS$1,406,91812 Apr 19
Mark Sigona
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares11,316
Max PriceUS$124.33
SellUS$87,15512 Apr 19
Thomas Kasulka
EntityIndividual
Shares701
Max PriceUS$124.33
SellUS$3,322,22212 Apr 19
Joseph DePaolo
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares26,721
Max PriceUS$124.33
SellUS$48,36412 Apr 19
Brian Twomey
EntityIndividual
Shares389
Max PriceUS$124.33
BuyUS$473,00112 Apr 19
Eric Howell
EntityIndividual
Role
Head of Investor Relations
Executive Vice President of Corporate & Business Development
Shares3,751
Max PriceUS$126.10
BuyUS$567,57612 Apr 19
Scott Shay
EntityIndividual
Role
Chairman of the Board
Co-Founder & Chairman of the Board
Shares4,501
Max PriceUS$126.10
BuyUS$255,98312 Apr 19
Michael Sharkey
EntityIndividual
Role
Chief Technology Officer
Senior VP & CTO
Shares2,030
Max PriceUS$126.10
BuyUS$255,98312 Apr 19
Vito Susca
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares2,030
Max PriceUS$126.10
BuyUS$190,03312 Apr 19
Patrick Donegan
EntityIndividual
Shares1,507
Max PriceUS$126.10
BuyUS$473,00112 Apr 19
Peter Quinlan
EntityIndividual
Shares3,751
Max PriceUS$126.10
BuyUS$473,00112 Apr 19
Mark Sigona
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares3,751
Max PriceUS$126.10
SellUS$127,68712 Apr 19
Patrick Donegan
EntityIndividual
Shares1,027
Max PriceUS$124.33
SellUS$1,534,48112 Apr 19
Peter Quinlan
EntityIndividual
Shares12,342
Max PriceUS$124.33
BuyUS$315,25012 Apr 19
Alfonse D'Amato
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,500
Max PriceUS$126.10
BuyUS$315,25012 Apr 19
Jeffrey Meshel
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,500
Max PriceUS$126.10
BuyUS$315,25012 Apr 19
Kathryn Byrne
EntityIndividual
Role
Lead Director
Lead Director
Shares2,500
Max PriceUS$126.10
SellUS$67,00010 Apr 19
Judith Huntington
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares500
Max PriceUS$134.00
SellUS$68,08020 Feb 19
Judith Huntington
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares500
Max PriceUS$136.16
SellUS$3,130,50028 Jan 19
Michael Sharkey
EntityIndividual
Role
Chief Technology Officer
Senior VP & CTO
Shares25,000
Max PriceUS$125.22

Ownership Breakdown

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


Management Team

  • Scott Shay (61yo)

    Co-Founder & Chairman of the Board

    • Tenure: 19yrs
    • Compensation: US$5.66m
  • Thomas Rogers

    Head of Private Client Group Team

    • Joe DePaolo (60yo)

      Co-Founder

      • Tenure: 19yrs
      • Compensation: US$8.67m
    • John Tamberlane (77yo)

      Co-Founder & Vice Chairman

      • Tenure: 19yrs
      • Compensation: US$4.43m
    • Mark Sigona (57yo)

      Executive VP & COO

      • Tenure: 15.2yrs
      • Compensation: US$4.40m
    • Michael Sharkey (61yo)

      Senior VP & CTO

      • Tenure: 15.2yrs
    • Craig Spatz

      Senior VP & Group Director of Woodmere Office

      • Tenure: 15.3yrs
    • Eric Howell (49yo)

      Executive Vice President of Corporate & Business Development

      • Compensation: US$4.23m
    • Vito Susca (50yo)

      Executive VP & CFO

      • Tenure: 6.7yrs
      • Compensation: US$2.63m
    • Ana Harris

      Director


      Board Members

      • Scott Shay (61yo)

        Co-Founder & Chairman of the Board

        • Tenure: 19yrs
        • Compensation: US$5.66m
      • Derrick Cephas (67yo)

        Independent Director

        • Tenure: 3.8yrs
        • Compensation: US$440.25k
      • Alfonse D'Amato (81yo)

        Independent Director

        • Tenure: 14.5yrs
        • Compensation: US$429.75k
      • Joe DePaolo (60yo)

        Co-Founder

        • Tenure: 19yrs
        • Compensation: US$8.67m
      • John Tamberlane (77yo)

        Co-Founder & Vice Chairman

        • Tenure: 19yrs
        • Compensation: US$4.43m
      • Jeffrey Meshel (61yo)

        Independent Director

        • Tenure: 14.3yrs
        • Compensation: US$423.25k
      • Kathryn Byrne (53yo)

        Lead Director

        • Tenure: 4.6yrs
        • Compensation: US$431.75k
      • John Sullivan (48yo)

        Member of the Advisory Board

        • Judith Huntington (55yo)

          Independent Director

          • Tenure: 6.8yrs
          • Compensation: US$441.75k
        • Barney Frank (78yo)

          Independent Director

          • Tenure: 4.6yrs
          • Compensation: US$413.75k

        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$7.701b
        • 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 Analysis2020/01/24 00:12
        End of Day Share Price2020/01/23 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.