How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Signature Bank (
SBNY Quick Quote SBNY - Free Report) ten years ago? It may not have been easy to hold on to SBNY for all that time, but if you did, how much would your investment be worth today? Signature Bank's Business In-Depth
With that in mind, let's take a look at Signature Bank's main business drivers.
Signature Bank is a New York-based full-service commercial bank with 37 private client offices located in the New York metropolitan area, Connecticut, California and North Carolina. These offices consist of growing network of private client banking teams that cater to privately-owned business clients, their owners and senior managers. Founded in 2001, the company provides equipment financing and leasing products through its subsidiary — Signature Financial LLC. It became a member of the S&P 500 Index on Dec 20, 2021.
The company’s Signature Securities Group Corporation subsidiary provides brokerage, asset management, as well as insurance products and services, while Signature Public Funding subsidiary offers municipal finance, and tax-exempt lending and leasing products to government entities.
Additionally, the company securitizes and sells guaranteed portions of U.S. Small Business Administration (SBA) loans.
It reports through the following two segments
. Commercial Banking (contributed 92% of total revenues in 2020): This segment comprises commercial real estate lending, commercial and industrial lending, fund banking, venture banking, and other commercial deposit gathering activities.
Specialty Finance (8%): This segment consists of financing and leasing products, including equipment, transportation, commercial marine, municipal and national franchise financing and/or leasing.
As of Dec 31, 2021, the company had $118.4 billion in assets, $64.3 billion as loans, excluding loans held for sale, $106.1 billion in deposits, and $7.8 billion of shareholders' equity. Note: Certain information will be updated once the company files its latest 10K. Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Signature Bank ten years ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in February 2012 would be worth $5,836.50, or a gain of 483.65%, as of February 23, 2022, and this return excludes dividends but includes price increases.
The S&P 500 rose 217.07% and the price of gold increased 2.58% over the same time frame in comparison.
Looking ahead, analysts are expecting more upside for SBNY.
Shares of Signature Bank have outperformed the industry in the past six months. The company displays an impressive earnings surprise history, surpassing the Zacks Consensus Estimate in all of the trailing four quarters. Its fourth-quarter 2021 results reflect higher revenues, backed by robust growth in loan and deposit, while lower interest rates and high expenses were spoilsports. Going forward, new lending verticals and solid economic growth are expected to support robust balance sheet growth. This, along with rising deposits, sets the stage for Signature Bank's growth in net interest income (NII) in the upcoming quarters. However, low interest rates continue to affect Signature Bank's margins, while high cost due to rising salaries are likely to hinder bottom line. Nonetheless, strong liquidty and consistent earnings are psotives.
Over the past four weeks, shares have rallied 9.86%, and there have been 16 higher earnings estimate revisions in the past two months for fiscal 2022 compared to none lower. The consensus estimate has moved up as well.