J.P. Morgan Positive on Signature Bank (SBNY)

J.P.Morgan Chase & Co is out with a report this morning on Signature Bank SBNY and has positive comments on the earnings report from Signature Bank. In the report, J.P. Morgan writes, "SBNY reported 2Q10 EPS of $0.54. Adjusting for $1.9 million in OTTI charges, core EPS appeared to be in the $0.56 range, which was above our $0.52 estimate as well as consensus at $0.50. The source of the beat versus our estimate was revenue coming in above expectations, primarily on the securities gains line, along with provision expense coming in modestly below forecast. Overall, we thought 2Q10 was relatively strong for SBNY, with deposit inflows remaining very strong (similar to most banks this quarter), although loan growth also remained strong (not similar to most banks this quarter). Fee revenues compressed a bit sequentially as did the NIM, tied to even greater liquidity being held by the bank. Credit quality and capital levels remain excellent." Shares of Signature Bank are currently trading at $39.19, down 31 cents.