Signature Bank at Barclays Global Financial Service Conference

Sep 13, 2017 AM CEST
SBNY - Signature Bank
Signature Bank at Barclays Global Financial Service Conference
Sep 13, 2017 / 11:30AM GMT 

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Corporate Participants
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   *  Eric R. Howell
      Signature Bank - EVP of Corporate & Business Development
   *  Joseph J. DePaolo
      Signature Bank - Co-Founder, CEO, President and Executive Director

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Conference Call Participants
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   *  Matthew John Keating
      Barclays PLC, Research Division - Director and Senior Analyst

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Presentation
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 Matthew John Keating,  Barclays PLC, Research Division - Director and Senior Analyst   [1]
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 Great. Well, good morning. My name is Matthew Keating, and I cover the U.S. mid-cap banks for Barclays. Very pleased to welcome you back to day 3 of the U.S. -- the Global Financial Services Conference.

 With us this morning on our fireside chat is Signature Bank. I think this is an institution that really needs no introduction. In fact, it was the most requested name from investors among my mid-cap coverage universe this year and in the top 15 of this entire conference event.

 Joining me on the stage here for this presentation is President and CEO, Joseph DePaolo; and its EVP of Corporate and Business Development, Eric Howell. Also in attendance from the company is Samantha Martinelli, who's the Senior Risk & Regulatory Reporting Analyst.

 So with that, I've learned from prior fireside chats that sometimes Signature likes to give a quick update on how business is trending. So maybe we'll start with that. If there's anything you guys would like to share with the audience, we can go through that first and then get into some more detailed questions.

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 Joseph J. DePaolo,  Signature Bank - Co-Founder, CEO, President and Executive Director   [2]
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 Thank you, Matthew, and thank you all who are in the audience for being here at 7:30 in the morning. I know it's not the most inopportune -- not the most opportunistic time to be listening to us. But I'm curious, since we're the most asked among your universe, is that good or bad?

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 Matthew John Keating,  Barclays PLC, Research Division - Director and Senior Analyst   [3]
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 Well, it's interesting. So we have been surveying the investors at this event whether or not they own -- or either overweight, equal weight, underweight or have no position in our companies. And the most prevalent response was either no position exactly for most of our coverage and so it's been a little bit difficult to read so we'll get to some audience response questions and we'll see what the audience thinks. But I think, in general, this is a name where there's been some pressure lately on the stock price and I think there's a lot of investors that are trying to determine whether this is an opportunity or whether there are some additional headwinds that might need to abate before (inaudible)

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 Joseph J. DePaolo,  Signature Bank - Co-Founder, CEO, President and Executive Director   [4]
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 Okay. Well, I'll give an update. First, on the team side, we have not announced yet, but we'll say it today, that we have a fourth team that will be joining us next week on Monday, the 18th. We've hired so far this year 3 teams. Our first team came from Hudson Valley, which is part of Sterling, our second team came from First Republic and our third team came from Citibank. We also added 1 business development/group director on to an existing team and we added 2 associate group directors on 2 other teams. So we're very excited for the fact that we've had 3 teams added on and that a fourth team will be joining us. So that's on the team side.

 The new team that'll be joining us actually may contribute to -- in the fourth quarter, so we may have some movement with new business in the fourth quarter with some of these teams.

 On the deposit side, I use the word that Eric uses all the time, choppiness. We have quite a few escrows going in and out, but I can tell you as of the close of business, Monday, our deposit growth was $770 million.

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 Matthew John Keating,  Barclays PLC, Research Division - Director and Senior Analyst   [5]
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 That's average deposit growth?

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 Joseph J. DePaolo,  Signature Bank - Co-Founder, CEO, President and Executive Director   [6]
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 No, that's period. I don't have the average number at the moment. Now that number, the day before, was actually nearly $200 million more. It was $900 million. So we had some flows in and out. That number could go to $1.2 billion and then go down to $1.1 billion. So right now, it's $770 million and we actually have, with the 13 business days remaining in the quarter, we actually have some deposit expectations. The hardest thing is to figure out what's going out for business purposes, but we have an idea what's going to be coming in and it's fairly large.

 On the loan side, we have a point in time as of the close of business Monday, a $440 million growth. We had quite a bit of prepays that either the client refinanced away from us or they just outright paid off the loan. And in fact, as an example, for the month of August, we collected over $3.2 million in prepayment penalty income, which was double that of what was in July. July was about $1.6 million and then it was about $3.3 million for the month of August. And we had over $200 million in loans payoff. So when I say $440 million growth, that's net. We have a decent pipeline on the last 13 days of the quarter -- last 13 business days of the quarter, but we're not sure when it'll be paying off because you can always get paid off days -- just a day or 2 before the closing. So that's where we are with deposits as of Monday, close of business. That's where we are with loans. I would say most of the loan growth this quarter has been in the commercial real estate, multi-family area and Signature Financial, the nationwide business that we have for equipment financing and leasing. And I gave you the team information. Anything else you want to...

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Questions and Answers
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 Matthew John Keating,  Barclays PLC, Research Division - Director and Senior Analyst   [1]
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 Just to put that into some perspective or context. I guess in the second quarter, loans ex movements in the taxi portfolio, loans grew about $600 million. You spoke to June becoming -- being a stronger month than the rest of the second quarter, so what happened in July and August, things -- just prepayments rose more than expected and that's been moderating the growth, but...

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 Joseph J. DePaolo,  Signature Bank - Co-Founder, CEO, President and Executive Director   [2]
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 Yes.

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 Eric R. Howell,  Signature Bank - EVP of Corporate & Business Development   [3]
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 Originations still feel pretty healthy?

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 Joseph J. DePaolo,  Signature Bank - Co-Founder, CEO, President and Executive Director   [4]
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 Originations, pretty healthy. I would say the pipeline through the end of the year is fairly active. I wouldn't use the term robust, but I would say it's fairly active.

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 Matthew John Keating,  Barclays PLC, Research Division - Director and Senior Analyst   [5]
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 Okay. So last quarter, as it relates to overall balance sheet growth, the company, not so much for 2017, but over the next 4 quarters, still thought $4 billion to $6 million in total asset growth was a realistic target for the organization. Given what you're seeing in the environment, higher prepayment levels, do you still think that's a realistic goal for the organization given that a team hiring is, again, seemed to be in a good spot in terms of adding new teams, et cetera?

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 Joseph J. DePaolo,  Signature Bank - Co-Founder, CEO, President and Executive Director   [6]
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 I would say at the low end.

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 Matthew John Keating,  Barclays PLC, Research Division - Director and Senior Analyst   [7]
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 Maybe we can move next to another common topic at this conference this year, has been investors' questions around the deposit pricing environment. So towards the end -- as we move through 3Q earnings season, more banks sort of talk about being more proactive in terms of increasing their deposit costs, to kind of share some of the upside in rates with your clients and also position themselves going forward. I'd be curious about Signature Bank's perspective within its New York footprint how deposit pricing pressures are faring at the moment?

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 Joseph J. DePaolo,  Signature Bank - Co-Founder, CEO, President and Executive Director   [8]
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 I would say the pressure is as fierce as it's ever been because there are certain banks that are 25 to 30, give or take, 1 basis point or 2 higher than the rest of the banks within the space. It's interesting, I really don't want to get into who, but there are some a particular banks that have really driven their rates very high. Examples, 125 basis points to 140 basis points. So that has created some pressure. We don't have to be at that level. But if a client has, let's say, $8 million in DDA, so they've given us $8 million of noninterest bearing deposits and they keep $20 million in interest-bearing and they're getting 90 basis points on the interest-bearing and someone approaches them at 140, right, they'll keep the DDA with us, but they'll want to move some of that money over. And we'll have to negotiate and we can keep it at 110. But it's forcing us to go from 90 to 110, whereas if that competition out there was not offering such a high rate at 140, we would not be pressured to move at all. And then some of the other pressures coming from, for the first time, treasury funds and treasury bills have a return. There's actually a return instead of it being in near 0. And that has created a little pressure, not as much as some of the other institutions, which are about a handful that have created the intent -- the intensity for deposits.

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 Matthew John Keating,  Barclays PLC, Research Division - Director and Senior Analyst   [9]
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 So given, I guess, the collective pressures on sort of the liability side and also the movements we're seeing with the long end of the curve given what the [10-year's done] in the quarter, any changes -- I think, last quarter, the company said over the next -- in the back half of the year there'd be a few basis points of net interest margin pressure per quarter. Given that environment, it seems like there may be a little bit more downside to that, a little bit more pressure, is that fair? Maybe, Eric, you want to speak to that?

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 Eric R. Howell,  Signature Bank - EVP of Corporate & Business Development   [10]
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 Yes, and I think that's fair. As Joe talk about the deposit pressures on the asset side, we're getting a little bit of pressure there, too, with the 10-year falling to the extent that it has. We were reinvesting in the securities portfolio early in the quarter, but we really stopped for investment at this point. It's just not worth it to put money into that portfolio given where yields are today. So we're probably looking at 3 to 6 basis points of pressure versus the couple that we had said coming out of the quarter.

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 Matthew John Keating,  Barclays PLC, Research Division - Director and Senior Analyst   [11]
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 That's fair. Maybe getting away from sort of near-term financial expectations and longer-term strategic questions, we did notice that one of the private client banking teams at Signature Bank has added this year is dually based both in New York and San Francisco. Does this represent a shift to where the company's thinking about expanding outside of the kind of the New York and Greenwich markets at this point? How are you thinking about it as you look to hire new private client banking teams?

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 Joseph J. DePaolo,  Signature Bank - Co-Founder, CEO, President and Executive Director   [12]
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 We have thought about it. This was an opportunistic -- this was an opportunistic play. It wasn't as if the two of us got together and said, okay, now is the time geographically to go to the West Coast. We had an opportunity to bring on a team that was interesting in that they catered to two very specific industries, not-for-profits and private schools. And when I say private schools, I'm sure some of you, I know not me, but some of you know that it costs $60,000 to $70,000 for a kindergarten class for your child. That's the type of schools that cater to like The Spence School or something like that here. And this team in those two industries catered both the East and West Coast and some sprinkling in the middle. And this was somebody that, what, not only someone, but the team that really wanted to join us, we saw on opportunity that we could do business on the West Coast without having to create a whole network. And when I say do business on the West Coast, at least initially in these two specific industries. We certainly don't have an issue doing things nationwide because we had Signature Financial, which does business in all 50 states. We have on office in Houston that has been there since day 1 that does institutional brokerage with SBA paper. So we have that feel for what it takes somewhat to do this. I grant you, this is the first time we're doing core banking. But it's now gotten us to think more. So now, Eric walks in with a map in my office.

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 Matthew John Keating,  Barclays PLC, Research Division - Director and Senior Analyst   [13]
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 So I guess, are you thinking about this because sort of competition and sort of the New York City multifamily market is getting considerably worse that we've heard from some banks that they are stepping away from that? Maybe you can talk about the competitive environment for multifamily in New York City more specifically. Signature seems to feel, at least last quarter, felt okay about that. The book's always been good. You've been able to drive growth in it. So any changes that you've observed in the past 6 months in that market that might lead you to be less inclined for growth?

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 Joseph J. DePaolo,  Signature Bank - Co-Founder, CEO, President and Executive Director   [14]
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 Well, there's less buys and sells that -- I was saying to Matthew before we started that one of our larger clients, that's a title company, that does business in all aspects of commercial real estate including multifamily and the business has been around for a long, long time, his father started it decades ago, is down 50%. And I think, Eric, you were saying...

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 Eric R. Howell,  Signature Bank - EVP of Corporate & Business Development   [15]
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 That Cushman & Wakefield came out with a study that buy and sell activity is down almost 40%.

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 Joseph J. DePaolo,  Signature Bank - Co-Founder, CEO, President and Executive Director   [16]
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 So we have seen some of that, but we feel good -- I think where there's a message that's mixed is how much activity is going on and how much activity are you staying away from because the regulatory environment is really putting pressure on the banks? And what the regulatory environment's doing is not telling us that we can't do things, they're telling us that we have to be better at the things that we're doing surrounding making the credits. So they'll tell you -- or actually they won't tell you, they told us, in our last meeting that our loan portfolio, they used the word pristine, but they want us to be able to produce information and reports quicker than we're able to. They want us to have information at our fingertips. They want us to improve on our systems. They want us to improve on the policies and procedures. And I've been saying this for a number of quarters we're actually working on that. So that has a little effect on the numbers. I think that from what we've heard, although I can't confirm this, that some of the other institutions have been told to either cease or slow down. We have not been told that. We've been told to improve because we're above 300%, but we have been above 300% since the middle of 2010.

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 Matthew John Keating,  Barclays PLC, Research Division - Director and Senior Analyst   [17]
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 I'm glad you mentioned the pristine portfolio -- or asset quality nature of your portfolio. So I guess if we know that loan growth is moderating and NIM is under a bit more pressure, is there any potential that provisions come in below sort of the company's obviously stated guidance range for the second half of this year, which was around $20 million per quarter? Obviously, if you're growing less, there should be some leverage there. So maybe you can talk about obviously we haven't mentioned taxi, which is probably a good thing. I think maybe it was the second question at last year's event. So obviously you've taken some dramatic steps to address that portfolio. But I would be interested in your general view on provisioning expectations. I think, last quarter you threw out a number that maybe below $50 million for all of 2018 might be possible. But I think out of conservatism, you left that $20 million quarterly guidance for the second half of this year. And we have read about it, a taxi medallion auction that's occurring, I think, later this month, maybe 40 or so medallions being auctioned. So if you could just comment in general about what the bank's provisioning outlook will be, it would be helpful.

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 Eric R. Howell,  Signature Bank - EVP of Corporate & Business Development   [18]
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 Sure. I think the $20 million provision that we discussed is really more of a conservative protective number, given the choppiness in the taxi medallion world. What we've seen thus far this quarter is that sales happened in July and August, quite a number of sales that are north of our carrying value, so that's supportive to the values that we have for the medallion portfolio today. But we'll see what September brings, right? And as you mentioned, the auction that's going to occur, it's a fire sale bankruptcy, the gentlemen's in jail or going to jail, so we really kind of have an all-cash, right, so we heavily discount any values that are going to come out of that. We've had the ability to sell a number of medallions at arm's length with money down, with personal guarantees to well-established fleet owners that are making money at the levels that we're selling them to. So that gives us a lot of comfort in the value that we have. We've had a lot of success now that we've written down -- the medallions down to that $350,000 mark and working with all the drivers. We're really going driver by driver, sitting down with them at the table, discussing what they can afford, how much they can pay us and restructuring their credits in a way that get their feet back under them and allow them to operate their vehicles and make a living and feed their families and pay us back. So we feel very good about that. So if the trends of what we've seen thus far holds up, we could have a level of provisioning below that $20 million mark for the rest of the year, but there's a lot of noise in that medallion space still so we're going to stick with the $20 million. If we look towards next year, as you said, if we continue to see growth at the lower end of our $4 billion to $6 billion asset growth, that means loan growth's coming in at that $1 billion or potentially less, right? It's really deposit growth that we want to get at the $1 billion mark, then our provisioning should fall well below the $20 million mark or the $50 million that Joe alluded to. So I think there's some room for the provision to come down. But again, we're going to conservatively provision and we expect to have a pretty sizable growth still.

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 Matthew John Keating,  Barclays PLC, Research Division - Director and Senior Analyst   [19]
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 So you talked a little bit earlier about the impact the regulatory community is having on banks in general. At last year's conference, Signature continued to hold out hope that there might be some changes in the $50 billion SIFI asset threshold. So my question is twofold. Do you still think that's the case? And then, secondly, if you could also comment on whether or not the bank has observed a more pragmatic approach at this point from the regulators in any aspects of its franchise?

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 Joseph J. DePaolo,  Signature Bank - Co-Founder, CEO, President and Executive Director   [20]
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 As it relates to the $50 billion, I would think that we have between now and the end of the first quarter there's a good possibility that, that would change. That's because we're part of a group that meets with both houses, individual members of both houses, and that's the indication we're getting. As it relates to, let's say, regulations in general, we have not seen any change or a let up from the on-site examiners. I think that really comes from Washington and from the top of the FDIC and that change hasn't been made yet. So until that change is made, I still think they will continue to put the pressure on institutions for best practices across-the-board. Like, for instance, thank you, Wells Fargo. That, all of a sudden, became -- now we're going to look at all your comp plans in detail. Thank you, some other big banks without mentioning them. Because every time something happened over the last several years, all of a sudden there was a horizontal review. In addition to the on-site audit, there was a horizontal review where they had somebody come in from Washington, look at 6 or 7 or 8 or 12 banks and compare one to the other and see if there was a problem and a particular size band or particular geographical band. So there's more and more going on for us. And we've had to add people on as a result. So that pressure is still there, but it's not getting in the way of growing business. We would never use that as an excuse to grow the business. We would never use it as an excuse for the impact it has on earnings. It's part of life, and we'll go on. The excitement is being able to bring on teams, have them bring on their clients and that's continuing to happen.

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 Matthew John Keating,  Barclays PLC, Research Division - Director and Senior Analyst   [21]
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 We're a little bit more than halfway through the presentation. At this point, we'd like to bring up our audience response to some questions. If you could please bring those up, we'd see more buzzers we can hand out from the back as well.

 Okay, so the first -- the first question for the audience would be, do you own Signature Bank at this point? And so the first option is yes, we do, we're overweight; second option is yes, but we have a market weight position; third is yes, but we're underweight or in a net short position; or four, we're not involved in a stock in any way at the moment. We'll take a few seconds to vote.

 (Voting)

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 Matthew John Keating,  Barclays PLC, Research Division - Director and Senior Analyst   [22]
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 And the results are in from the audience, and it shows that 42% of the audience is not involved, followed by 31% that have an overweight position and 23% that have a market weight. That's actually pretty good. Most banks have seen over 50% people not being involved and so, again, I think speaking to the interest in the stock here. Maybe move on to the next question. So improvement in which factor do you believe would have the greatest influence on you potentially increasing your exposure to Signature: one, stronger and higher net interest income levels; two, faster fee income growth; three, expense or efficiency ratio improvement; four, better asset quality metrics; five, enhanced profitability; or six, higher levels of capital return. Again, we'll take a few seconds to vote.

 (Voting)

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 Matthew John Keating,  Barclays PLC, Research Division - Director and Senior Analyst   [23]
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 And the audience would most like to see higher net interest income, so 63% of the audience responded in that fashion. So maybe we can talk about some of the steps the company is taking to drive that reality.

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 Joseph J. DePaolo,  Signature Bank - Co-Founder, CEO, President and Executive Director   [24]
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 Well, we believe in growing net interest income. I mean, there was a time we were growing it more than $10 million a quarter increase, and that's a factor of us bringing in more deposits and using those deposits. So that result is something that we would absolutely agree with. And I think it gets tied in with number five, profitability metrics. So when you add those 2, that's 84%.

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 Eric R. Howell,  Signature Bank - EVP of Corporate & Business Development   [25]
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 I'm happy no one's said improve the efficiency ratio. That would be a little difficult to do.

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 Matthew John Keating,  Barclays PLC, Research Division - Director and Senior Analyst   [26]
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 And that is true, a good point.

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 Joseph J. DePaolo,  Signature Bank - Co-Founder, CEO, President and Executive Director   [27]
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 People are already calling me cheap.

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 Matthew John Keating,  Barclays PLC, Research Division - Director and Senior Analyst   [28]
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 All right, we'll move along to the next question please. What do you believe is the greatest risk associated with Signature Bank -- investing in Signature Bank: one, asset growth falling short of the $4 billion to $6 billion target; two, ongoing taxi medallion issues; three, deposit cost pressures; four, above average commercial real estate concentration; five, SIFI-related expense escalation; or six, something else entirely. We'll take 10 seconds to vote.

 (Voting)

 And the greatest risk the audience sees to investing in the stock at 50% is asset growth falling short of the $4 billion to $6 billion target, followed by choice 3, which is deposit cost pressures at 36% of the audience. Interestingly, 0% of the audiences is now concerned about the taxi medallion issue, so that must be, I guess, feeling pretty good.

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 Joseph J. DePaolo,  Signature Bank - Co-Founder, CEO, President and Executive Director   [29]
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 I was more concerned about six because that something else could have been us.

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 Matthew John Keating,  Barclays PLC, Research Division - Director and Senior Analyst   [30]
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 That's true. All right, maybe we'll bring up the last question before opening the floor to the audience a bit. So over the next couple of years, do you believe Signature is more likely to acquire a smaller bank; two, enter into a merger of equals transaction; three, sell to a larger institution; or four, refrain from M&A entirely.

 (Voting)

 So the results here show that audience is pretty split, about 48% believing the bank might sell the next couple of years, 48% saying it won't do any M&A. So maybe you can talk about just at a high level how the company views itself as a public company and what it would take for it to be interested in partnering with a bigger bank?

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 Joseph J. DePaolo,  Signature Bank - Co-Founder, CEO, President and Executive Director   [31]
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 In all likelihood, if we partnered with a bigger bank, it would be -- we'd be acquired. I don't think -- it's their money, I don't know how much of a partner we'd be. But it would probably be an institution that has very little activity here in the United States or none; would be interested in funding what they do around the world with deposits as opposed to the wholesale market; and would like us to grow the institution even more than we have; grow the institution nationally because we have a large financial institution outside of the country with probably a pristine credit rating and along with capital that's substantial and be one of the larger banks. I think that it hasn't happened because around the world with the crisis, banks that in the past may have done what I said, whether it was us or some other institution like us, I think it's just starting to happen. It didn't happen years ago because they were dealing with their own problems, whether it was a European bank or a bank from the Far East or the Middle East. So that's likely -- now, we have had that experience because, for those of you who remember, Signature Bank was a wholly owned subsidiary of an Israeli institution, Bank Hapoalim for our first 34 months when we were privately held. So we know what it's like to be part of a larger institution, a foreign institution like Bank Hapoalim. If I may, one of the things Eric and I have talked about is, on a nationwide basis, if we did something, whether it was in Chicago, Los Angeles, San Francisco, wherever, and found teams, that's more likely where we'd be in the acquisition mode if we found an institution, we may -- that may give us a bigger presence quickly. That's more likely to happen than us buying an institution in the New York area.

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 Matthew John Keating,  Barclays PLC, Research Division - Director and Senior Analyst   [32]
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 Right, that's helpful. So at this point, I would like to open the floor for some audience questions, at least if there are some. So maybe while the audience thinks of what they're most interested in, I'll ask another one about, I guess, commercial real estate loan pricing. So traditionally, Signature has priced above its peers. Now we're in an environment where growth is a bit more challenged. Has that pricing premium on your loans come in a bit as we've moved into the 3rd quarter? Are you planning to maintain that?

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 Joseph J. DePaolo,  Signature Bank - Co-Founder, CEO, President and Executive Director   [33]
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 We're maintaining the differential. Right now, we're primarily, for a 5-year fixed, we're primarily at 3 5/8 % and 3 3/4%, but more likely being at 3 5/8%. We heard some deals at 7 years at 3 1/2% and for 5 years at 3 3/8%. That's the competition that we're up against. Because we're not dropping our pricing to increase the pipeline, particularly when -- on the other side -- so think about this, you're our client and you're saying I want you to drop your 5-year rate on my multifamily that I'm refinancing. And by the way, the 80 basis points you're paying me on my deposits, I want 120. So 80 and 3.75%, now they want 120 and 3 1/2%.

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 Matthew John Keating,  Barclays PLC, Research Division - Director and Senior Analyst   [34]
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 It's not easy business.

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 Joseph J. DePaolo,  Signature Bank - Co-Founder, CEO, President and Executive Director   [35]
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 So you have to give in some and hold the line in others.

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 Matthew John Keating,  Barclays PLC, Research Division - Director and Senior Analyst   [36]
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 So Eric, you did mention that securities -- addition to the securities book have kind of stopped here. At what level would you be comfortable continuing to grow that? I know that was an area of emphasis earlier this year when the 10-year was significantly higher. What rate level do we perceive for the company to be comfortable putting deposits to work there?

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 Eric R. Howell,  Signature Bank - EVP of Corporate & Business Development   [37]
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 I think if we get above 220, we can start selectively buying at that point. Once we get north of 240, 250, that's where we can be a little bit more aggressive in our purchases. But I think at 220 is where we can start to pick off some decent opportunities in that space. But right now, it's rather difficult and we've been putting securities on in the mid-2s and that just doesn't make sense for us, so we'd probably [are paying] our borrowings.

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 Matthew John Keating,  Barclays PLC, Research Division - Director and Senior Analyst   [38]
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 I guess, as it relates to the team hiring, are any of the teams that have been hired or are in the process of being hired particularly large or above average in size such that the expenses associated with those payments will be greater than the typical addition to the bank?

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 Joseph J. DePaolo,  Signature Bank - Co-Founder, CEO, President and Executive Director   [39]
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 I think the answer would be no.

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 Matthew John Keating,  Barclays PLC, Research Division - Director and Senior Analyst   [40]
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 Other questions from the audience at this point? Okay. Well, I think we covered a lot of ground in this presentation. There will be a breakout session for those interested in asking questions immediately following this presentation, they'll be held in the Madison suite. But at this point, please join me in thanking Joe and Eric for their presentation.

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 Joseph J. DePaolo,  Signature Bank - Co-Founder, CEO, President and Executive Director   [41]
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 Thank you, Matthew. Thank you.

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 Eric R. Howell,  Signature Bank - EVP of Corporate & Business Development   [42]
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 Thank you very much.




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