Signature Bank in New York reported higher profit in the third quarter, as loan growth offset issues in its taxi medallion portfolio.
The $32 billion-asset company said in a press release Tuesday that its net income rose 25% from a year earlier, to $96.2 million. Earnings of $1.88 a share topped the average estimate of analysts polled by Bloomberg by 6 cents.
Net interest income increased 21%, to $239 million. Total loans rose 34%, to $22 billion, while the net interest margin compressed by 3 basis points, to 3.22%.
The loan-loss provision rose by 48%, to $11.4 million. Loan growth was a factor, but Joseph DePaolo, the company’s chief executive, also said during a conference call to discuss the quarterly results that the company had seen “further weakening” in its taxi medallion portfolio.
Noninterest income fell 2.5%, to $7.9 million, because of lower net gains on the sale of loans and a decrease in commissions.
Noninterest expense rose 16%, to $86 million, because of higher salaries and benefits, occupancy costs, data processing fees and FDIC assessment fees. The company reported a 33.4% efficiency ratio.