I don't want to push the similarities with banks like First Republic (FRC) or Silicon Valley Bank (SVB Financial (SIVB)) too far, but like those other banks, Signature Bank's (SBNY)
more specialized banking focus continues to serve the company well.
With that, I expect this bank to continue generating above-average
pre-provision profit growth through the downturn and into the recovery.
It's been a little while since I've updated my thoughts on this bank,
but although the shares are down from the time of my last write-up,
they've still outperformed the broader peer group by about 10% to 15%,
so I don't feel quite as bad about the positive recommendation, even
though banks in general have fared poorly next to the S&P 500, let
alone NASDAQ. I still expect high single-digit core earnings growth from
Signature Bank, and I still believe that supports a bullish stance,
with the shares undervalued below $130 to $140.
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