(RTTNews) - Signature Bank (SBNY: News ) posted Tuesday a higher third-quarter profit that beat analysts' estimates, helped by a record 9.2% growth in core deposits, solid loan growth and net interest margin expansion, partially offset by increases in loan loss provisions and non-interest expenses.

The New York-based full-service commercial bank's net income available to common shareholders increased to $15.17 million or $0.37 per share from $9.19 million or $0.29 per share for the year-ago period.

On average, 13 analysts polled by Thomson Reuters expected Signature Bank to report earnings of $0.34 per share. Analysts' estimates exclude typically one-time items.

Signature Bank said that core deposit increased $534.9 million or 9.2% during the quarter, along with an increase of $192.9 million in short-term escrow deposits and a decrease of $26.5 million in brokered deposits. Deposits grew 11.5% during the quarter to $6.8 billion.

Loans, excluding loans held for sale, increased $361.4 million, or 9.6%, to $4.13 billion for the quarter.

Third-quarter net interest income was $68.61 million compared with $50.09 million in 2008. Net interest margin on a tax-equivalent basis for the third quarter increased 13 basis points to 3.39% from the same period last year.

For the recent quarter, total non-interest income was $7.30 million compared with $3.71 million, while non-interest expense totaled $38.57 million compared with $32.76 million in 2008.
Nine analysts estimated revenue of $72.37 million for the September quarter.

Provision for loan losses increased to $11.88 million from $5.78 million for the third quarter last year. The increase was primarily driven by the growth in the loan portfolio, combined with an increase in charge-offs, non-performing loans and provisions to recognize the effect of the current economic environment on the Bank's loan portfolio, the company said.

For the nine-month period, net income increased to $41.76 million from $29.89 million last year. Core deposit growth for the nine months ended September 30 was $1.32 billion or 26.3%, the company said.

Net income available to common shareholders for the period was $29.55 million or $0.78 per share compared with $29.89 million or 0.98 per share last year.

The bank said the nine-month period includes the negative effect of the $10.2 million deemed dividend associated with the difference between the redemption payment and the carrying value of the preferred stock repurchased from the U.S. Department of the Treasury.

To receive FREE breaking news email alerts for Signature Bank and others in your portfolio

 1   2   Next Page