Summary
- The market fears that the outflow of digital deposits could threaten the financial stability of the bank.
- However, the impact of Crypto on the stability of Signature Bank is greatly overestimated by the market.
- Signature is a perennial compounder. Over the past 10 years, the bank's loan portfolio has grown at a CAGR of 22.50%.
- Signature demonstrates one of the best Efficiency Ratios in the industry and outperforms the largest US banks.
- The company trades at a significant discount to our estimate of its fair market value.
For further details see:
Signature Bank: Crypto Impact Is Limited