Gordon Reid Signature Bank SBNY-Q DON'T BUY Jan 11, 2023

Thinks this is the fastest growing bank in America that has branches. Have gone from a single branch in 2001 to 27 branches, just in the New York City area. Only focus on serving privately owned businesses, their owners and their senior managers. Growing their earnings per share this year at about 21% and revenues at around 23% and are trading at around 21X earnings. There is nothing to stop them from taking this business model and taking it to other states. Expanding into Connecticut later this year, followed by New Jersey. Clients are high net worth.

(Top Pick Jun 4/14, Up 21.75%) They lure banking teams from the big banks to join them. Loans are up 30% over last year. Probably the fastest growing brick and mortar bank today.

They are extremely targeted and very focused on small/medium Enterprises, and the owner/entrepreneurs that run those businesses. A very conservative and well-run bank. They are carving out the top teens from all the top-performing bulge bracket banks. They come to Signature and get a P&L, so if they make a good loan, they participate in profits. If they make a bad loan, they have to wear the loss. BV multiple is about 1.8.

(A Top Pick Aug 2, 2016, Up 17%) They benefited from Trump. They suffered write downs and losses from Uber loans last year. But it is still an interesting business.