Fueled by strong growth in commercial real estate and specialty lending, Signature Bank in New York reported another record profit for the quarter that ended June 30.
The $25.4 billion-asset company said Tuesday that it earned $72.5 million in the second quarter, up 35% from the second quarter of 2013. It marked the 19th consecutive quarter that the bank has reported record profits.
Earnings per share climbed 32% year over year, to $1.48.
Signature attributed the gains mainly to surge in net interest income that was driven primarily by its loan growth. Net interest income climbed 28% year over year, to $186.1 million, as average loans increased 39%, to $14.9 billion.
The loan growth was aided by its addition of five commercial lending teams and the bank's continued investment in new lines of business. Signature, which for years only made loans in the New York area, launched a nationwide specialty lending unit two years ago and continues to add lenders to that group. Earlier this month it announced that the unit would expand into franchise and commercial marine lending.
The company also reported record deposit growth for the quarter. Deposits increased 18% year over, to $22.8 billion.
Noninterest income climbed 33% year over year, to $12.4 million, due in part to a 17.5% increase in deposit fees and surcharges. Fee income was also aided by gains on sales of securities.
Expenses increased 19% year over year, to nearly $73 million, primarily due to increased salary and benefits costs related to hiring of new teams.
Signature's shares were down 2.6% in early trading Tuesday, to $118.02.