Aided by strong loan and deposit growth, Signature Bank in New York reported a record-setting $36.6 million profit in the second quarter, up 64.4% from the same period in 2010.
Diluted earnings per share rose 61%, to 87 cents, beating by nine cents the estimates of analysts polled by Thomson Reuters.
Founded in 2001, the $13.1 billion-asset Signature has grown largely by hiring teams of lenders from rival banks that bring with them established books of business. At June 30, the company had total loans of $6.1 billion, up 8.3% from the second quarter of 2010, and total deposits of 10.9 billion, up 6.7% year over year.
The surge in loan activity combined with a decrease in its cost of funds helped boost net interest income by nearly 40% year over year, to $113 million. Signature's net interest margin rose 26 basis points, to 3.64%.
