Signature Bank on Jan. 19 reported fourth-quarter 2016 net income of $113.9 million, or $2.11 per share, compared to $103.0 million, or $2.01 per share, for the 2015 fourth quarter.
The S&P Capital IQ consensus normalized EPS estimate for the recent quarter was $2.09.
The New York-based company attributed the year-over-year increase in its bottom line primarily to an increase in net interest income, fueled by strong average deposit and loan growth, and partially offset by an increase in the provision for loan losses and noninterest expenses.
Net interest income for the 2016 fourth quarter, before provision for loan and lease losses, was $296.8 million, up 10.6% from the fourth quarter of 2015. The increase is primarily due to growth in average interest-earning assets. Total assets reached $39.05 billion at Dec. 31, 2016.
President and CEO Joseph DePaolo said in the earnings release that, despite challenges in the company's taxi medallion portfolio, the company's franchise continued to expand, with average total deposits growing $4.45 billion, or 17.6%, to $29.75 billion in 2016, from $25.29 billion in 2015.
The provision for loan and lease losses for the recent quarter amounted to $22.2 million, compared to $16.7 million in the 2015 fourth quarter. The increase was primarily due to additional reserves for taxi medallion loans. Net charge-offs for the 2016 fourth quarter were $13.5 million, down from $100.5 million in the 2016 third quarter, and compared to $4.6 million for the 2015 fourth quarter.
Net interest margin on a tax-equivalent basis was 3.14% for the three months ended Dec. 31, 2016, compared to 3.30% for the three months ended Dec. 31, 2015.