Signature Bank (SBNY), a full-service commercial bank, Tuesday, reported "a record" profit for the fourth quarter that also beat the Street view. The company attributed the results to net interest income growth, fueled by core deposit growth and continued loan growth. Shares of the company are currently trading up by more than 7% on the Nasdaq.
The New York-based bank had a 60.4% increase in net income available to common shareholders reaching $20.97 million compared to $13.07 million last year. On a per-share basis, net earnings were $0.51 compared to $0.37 in the prior-year period. On average, 18 analysts polled by Thomson Reuters expected the bank to report earnings of $0.36 per share. Analysts' estimates typically exclude special items.
Net interest income for the quarter was $75.73 million, up 28.6% compared to $58.90 million last year. Total non-interest income more than doubled to $9.61 million from $4.31 million last year, reflecting much lower impairment losses on securities recognized in earnings. For the quarter, revenue of $79.86 million was expected by 10 analysts.
Provision for loan losses was $11.84 million, an increase of $3.2 million or 36.5% compared to $8.67 million last year. The increases are primarily driven by growth in the loan portfolio, combined with increases in charge-offs, non-performing loans and provisions stemming from the challenging economic environment.
Total deposits held at the end of the fourth quarter was $7.22 billion, an improvement of 34.1% compared to $5.39 billion at the end of the prior-year period. The increase is attributable to 36.2% improved core deposits. In the quarter, core deposit grew $498.2 million or 7.9%.
Net loans, at the end of the period increased 26.1% or $905.6 million to $4.32 billion from $3.43 billion at the end of last year, primarily driven by growth in commercial real estate and multi-family loans with tighter underwriting standards. Loans were 47.8% of total assets compared to 48.3% last year.
Net charge-offs for the quarter were $6.4 million or 0.61% of average loans on an annualized basis compared to $2.7 million or 0.32% for the prior-year fourth quarter.
For the full year, net income improved 17.6% to $50.52 million or $1.30 per share from $42.97 million or $1.35 per share last year. Earnings surpassed consensus of $1.13 per share estimated by 16 analysts.
Net interest income, before provisions for loan losses was $262.40 million compared to $195.27 million last year. Non-interest income was $34.63 million compared to $27.65 million last year. Ten analysts were looking for revenues of $290.14 million for the full year.
SBNY is currently trading at $35.87, up 7.04% on the Nasdaq.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.