Here's Why It Is Wise To Hold Signature Bank (SBNY) Stock
Zacks Investment Research | Jun 27, 2019 08:44AM ET
Signature Bank (NASDAQ:SBNY) is well positioned for organic growth, supported by a rise in loan and deposit balances. Further, capital strength and improving economic backdrop are likely to support the company’s growth plans. However, rising operating expenses pose a key concern.
Continual rise in loans and deposit balances reflects Signature Bank potential for top-line growth. Deposits recorded a five-year (2014-2018) CAGR of 12.7%, backed by rising non-interest-bearing and interest bearing deposits. Also, loans witnessed a CAGR of 19.3%.
Further, the company’s revenues benefit from increasing net interest income, which witnessed a CAGR of 12.8% on the back of rising average interest-earning assets.
Signature Bank’s strong capital position backs its efforts to expand operations by making strategic hires, and opening new divisions and platforms. Also, it keeps the company well poised to undertake opportunistic expansions in different geographies, thereby improving its prospects.
Over the past six months, shares of this Zacks Rank #3 (Hold) company have rallied 13.4% compared with 10.7% growth of the Original post
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