New York based financial services provider Signature Bank (SBNY) Tuesday, posted a 48.3% surge in its first-quarter earnings, reflecting core deposits and solid loan growth during the period. However, net income available to common shareholders fell more than three-fourths, following U.S. Treasury cashing on the accelerated deemed dividend due to the preferred shares issued.
Net income available to common shareholders for the three-month period declined to $2.4 million or $0.07 per share, from $9.9 million or $0.33 per share prior year. Excluding the accelerated deemed dividend, net income available to common shareholders was $12.6 million or $0.36 per share.
On average, fifteen analysts polled by Thomson Reuters estimated the company to earn $0.36 per share. Analysts' estimates typically exclude special items.
However, net income for the quarter climbed to $14.6 million from $9.9 million in the year-ago period. On per share basis, net income was $0.41, up from $0.33 per share in the prior-year period.
During the period, the group recorded $12.2 million as dividends on preferred stock and related adjustments, including $10.2 million of US Treasury's accelerated deemed dividend. On March 31, the bank announced that it had repurchased the preferred $120 million shares issued to the US Treasury from its participation in the Capital purchase program.
Total interest income grew to $88.2 million from $75.1 million in the prior year. Net interest income before provision for loan losses increased to $57.5 million from $41.2 million last year. Total non-interest income also was up to $34 million from $28.6 million in the previous year.
For the three-month period, deposits were up 8.3% to $5.84 billion, while loans grew 2.8% to $3.57 billion from last year. Total non-performing loans were 1.26%, down from $1.8% in the previous year quarter.
The stock last traded Monday at $28.24 on the Nasdaq.
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