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Extraction Summary
2
People
6
Organizations
1
Locations
1
Events
1
Relationships
3
Quotes
Document Information
Type:
Financial conference report page
File Size:
Summary
This document is a page from a Bank of America Merrill Lynch analysis prepared for its '2016 Future of Financials Conference' on November 17, 2016. It details the business outlook for Signature Bank (SBNY), covering topics such as hiring pauses, potential regulatory easing under the Trump administration, lending rate increases, and the management of its multifamily loan portfolio. The document is purely a financial analysis and contains no mention of Jeffrey Epstein, his associates, or any related activities.
People (2)
| Name | Role | Context |
|---|---|---|
| Trump | Incoming U.S. President |
Mentioned in the context of his incoming administration and the potential for easing regulatory burdens on banks.
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| management | Management of SBNY (Signature Bank) |
Refers to the leadership of SBNY, whose views on hiring, regulation, lending rates, and business strategy are summari...
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Organizations (6)
| Name | Type | Context |
|---|---|---|
| Bank of America Merrill Lynch |
The publisher of the document, as indicated by the logo and name at the bottom of the page.
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| SBNY (Signature Bank) |
The primary subject of the financial analysis, a bank approaching a $50bn asset threshold.
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| NYCB (New York Community Bancorp) |
Mentioned as a New York-based rival to SBNY that also increased its lending rates.
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| The Federal Reserve (the Fed) |
Mentioned as being expected to raise interest rates by 25bp in December 2016.
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| Trump administration |
The incoming U.S. presidential administration, under which an easing of bank regulations was considered possible.
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| House Oversight |
The source of the document is indicated by the footer identifier 'HOUSE_OVERSIGHT_014340'.
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Timeline (1 events)
17 November 2016
2016 Future of Financials Conference, for which this document was prepared.
Unknown
Locations (1)
| Location | Context |
|---|---|
|
Mentioned as the location of SBNY's rival, NYCB.
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Relationships (1)
The document explicitly refers to NYCB as 'SBNY's NY rival'.
Key Quotes (3)
"management noted that although it does not expect to hire teams heading into year-end, it is continuing to hire individual bankers (recently hired 4 to 5 lenders)."Source
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Quote #1
"management is running the business based on the current regulatory framework and will look for more tangible signs before it makes any changes to investment decision..."Source
HOUSE_OVERSIGHT_014340.jpg
Quote #2
"it was not losing any significant business due to this as competitors had also pulled back..."Source
HOUSE_OVERSIGHT_014340.jpg
Quote #3
Full Extracted Text
Complete text extracted from the document (2,511 characters)
income segment) have not changed despite the headlines surrounding a softening in the multifamily space.
Hiring bankers, even as team hiring on pause: On the hiring front, management noted that although it does not expect to hire teams heading into year-end, it is continuing to hire individual bankers (recently hired 4 to 5 lenders). Hiring will be focused on C&I and specialty finance lenders. Management does not expect to hire additional CRE lenders.
Easing in regulatory environment could provide some relief on expense growth: With regard to the potential for some easing of regulatory burden on the banks (important here as SBNY approaches the $50bn asset threshold) under the incoming Trump administration management noted that it could see some abatement in expense growth associated with compliance costs. However, management is running the business based on the current regulatory framework and will look for more tangible signs before it makes any changes to investment decision, especially as it relates to the compliance infrastructure.
Lending rates reflecting the steepening in the yield curve: SBNY noted that it had raised rates on its 5-year fixed by 0.125% to 3.5%- 3.625% and 7-year fixed up by 0.25% to 4.0%-4.125% following the steepening in the yield curve over the last week. We note that this was echoed by SBNY's NY rival NYCB which also noted increasing rates on lending products in the aftermath of the move higher in interest rates. We believe higher rates associated with new loans and better reinvestment opportunities in the securities portfolio should serve as a tailwind to the margin even as funding costs will likely trend higher, especially as the Fed raises interest rates by 25bp in December.
Regulatory scrutiny on multifamily lending manageable: With regard to the heightened regulatory concerns surrounding CRE multifamily lending (multifamily is 50% of SBNY's loan book), management noted that it has implemented a new loan system likely coming on line in 3Q17 which should allow the bank to analyze the loan portfolio at a more granular level. Management is also underwriting fewer interest only multifamily loans in response to the regulatory concerns. Although, it noted that it was not losing any significant business due to this as competitors had also pulled back and borrower ability (in most instances) to service a non-interest only loan.
26 2016 Future of Financials Conference | 17 November 2016
Bank of America
Merrill Lynch
Merrill Lynch
HOUSE_OVERSIGHT_014340
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