Jefferies Gives Color on Signature Bank

Jefferies has published a report on Signature Bank SBNY giving a first look on 2Q. In the report, Jefferies wrote, "SBNY reported EPS of $0.87 vs consensus of $0.78, but core is closer to $0.84 ex. securities gains. Loan and deposit growth came in a tad stronger than preannouncement levels, but strong expense controls and margin expansion exceeded our expectations. While results beat consensus, the market was expecting a strong result after the preannouncement, which could limit upside. Core EPS nets to $0.84. SBNY reported GAAP EPS of $0.87 vs consensus of $0.78 although core EPS is closer $0.84 after backing out $2mm of securities gains (+$0.03). Securities impairment charges of $800k caused a $0.02 drag on EPS. We note that adjusting EPS for a full quarter sharecount of the recent capital raise equals a $0.09 drag and implies a $0.77 run-rate." Jefferies rated Signature Bank a BUY with a price target of $66.00. Signature Bank closed Monday at $60.23.