Wednesday, January 23, 2019

Signature Bank Diversifying And Investing For Growth

As was the case for most banks, 2018 wasn’t an easy year for Signature Bank (SBNY), but this New York/private banking-focused specialty bank is going into 2019 with better momentum and a cleaner, more interesting business mix. It also certainly doesn’t hurt that this liability-sensitive bank is looking at the end of the rate hike cycle.

Between growing/expanding the West Coast business, supporting the new private equity and digital asset banking businesses, and the blockchain-based Signet payments business, Signature has some interesting growth opportunities queued up, and I believe there continue to be better-than-worthwhile opportunities out there for service-centric banks at a time when many larger banks are managing their business with a cost focus. If high single-digit core earnings growth is a reasonable expectation over the next five to 10 years, I believe these shares are undervalued below $140.

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Signature Bank Diversifying And Investing For Growth

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