Signature Bank (SBNY) in New York reported its 15th consecutive quarter of record profits as its loan revenue rose substantially.
The $19.7 billion-asset company on Tuesday announced second-quarter profit of $53.6 million, up 18% from the second quarter of 2012. Earnings per share of $1.12 were 4 cents above the average estimate of analysts polled by Bloomberg.
Net interest income rose 15%, to $154.5 million, as total assets climbed 24%, or $3.9 billion. Its net interest margin decreased by 18 basis points, to 3.36%.
Noninterest income fell 6%, to $9.3 million, as lower gains from sales of securities and loans offset higher fee and commission income.
Noninterest expense rose 12%, to $61.4 million, as compensation costs rose. The bank hired four new private-client banking teams and two group directors in the second quarter, it said.
Provision for loan losses fell 6%, to $634,000, and net chargeoffs fell 26%, to $3.5 million.