Signature Bank Is Doing Really Well. And It's Going to Do a Whole Lot Better
Signature Bank (NASDAQ: SBNY), which is based in New York City, is doing really well. The stock trades around $250 per share and the company is valued at 243% to tangible book value (equity minus intangible assets and goodwill).The bank also recently reported a strong first quarter of earnings to start the year, generating a profit of $190.5 million, which was equivalent to a 0.97% return on assets (ROA) and a roughly 13% return on equity (ROE). While things are certainly rosy at the bank right now, I think they are about to get a whole lot better. Here's why.
Signature Bank was founded in 2001 and has grown extremely fast. It started with just $50 million in assets and is now up to $85 billion in assets, growing to this level without making a single acquisition. In recent years, the bank, which used to be a heavy multi-family lender, has really transitioned into more of a tech player.
In early 2019, the bank launched its Signet payments platform, which leverages blockchain technology to create a real-time digital payments platform that clears and settles payments 24 hours a day, seven days a week, and 365 days a year. This allows two commercial clients on the network to move funds between one another at any day or time for free, although clients are encouraged to maintain balances of $250,000 or more in their accounts. This system is particularly useful for traders of digital assets such as Bitcoin (CRYPTO: BTC) because cryptocurrencies trade around the clock.
Source Fool.com
