Signature Bank (NASDAQ:SBNY) Q1 2018 Earnings Conference Call Transcript

Apr 19, 2018 • 10:00 am ET

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Signature Bank (NASDAQ:SBNY) Q1 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Welcome to Signature Bank's 2018 First Quarter Results Conference Call. Hosting the call today from Signature Bank are Joseph J. DePaolo, President and Chief Executive Officer; and Eric R. Howell, Executive Vice President, Corporate and Business Development. Today's call is being recorded. At this time, all participants have been placed in a listen-only mode and the floor will be open for your questions following the presentation.

(Operator Instructions) It is now my pleasure to turn the floor over to Joseph J. DePaolo, President and Chief Executive Officer. You may begin.

Executive
Joseph DePaolo

Thank you, Laurie. Good morning and thank you for joining us today for the Signature Bank 2018 first quarter results conference call. Before I begin my formal remarks, Susan Lewis will read the forward-looking disclaimer. Please go ahead, Susan.

Executive
Susan Lewis

Thank you, Joe. This conference call and oral statements made from time-to-time by our representatives contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties. You should not place undue reliance on those statements, because they are subject to numerous risks and uncertainties relating to our operations and business environment, all of which are difficult to predict and may be beyond our control.

Forward-looking statements include information concerning our future results, interest rates and the interest rate environment, loan and deposit growth, loan performance, operations, new private client team hires, new office openings and business strategy. As you consider forward-looking statements, you should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties and assumptions that could cause actual results to differ materially from those in the forward-looking statements. These factors include those described in our quarterly and annual reports filed with the FDIC, which you should review carefully for further information. You should keep in mind that any forward-looking statements made by Signature Bank speak only as of the date on which they were made.

Now, I'd like to turn the call back to Joe.

Executive
Joseph DePaolo

Thank you, Susan. I will provide some overview into the quarterly results and then Eric Howell, our EVP of Corporate and Business Development will review the bank's financial performance in greater detail. Eric and I will address your questions at the end of our remarks. Let's hit the taxi medallion portfolio head on. During the quarter - during the first quarter, market sales and cash flows continued to exhibit significant weakness.

As such, we further wrote down the value of our New York medallion loans to 160,000 each and our Chicago portfolio to 27,000 for a total remaining exposure of $149 million.We know we've said this before, but we do feel we've put this behind us now. Excluding medallion charge-offs, Signature Bank delivered an exceptional quarter of growth and performance, resulting in record quarter of core earnings. We again saw a solid deposit and loan growth, expanded top line revenues and maintain overall strong credit quality, ex-medallion.

Let's take a close look at earnings. Net income for the 2018