5 Best Financial Services and Bank Stocks to Buy According to Daniel Johnson’s Gillson Capital

3. Signature Bank (NASDAQ:SBNY)

Gillson Capital’s Stake Value: $24.387 million

Percentage of Gillson Capital’s 13F Portfolio: 2.28%

Number of Hedge Fund Holders: 43

Daniel Johnson’s Gillson Capital holds 99,276 shares in Signature Bank (NASDAQ: SBNY), worth over $24 million, representing 2.28% of their portfolio. The hedge fund has increased stakes in the firm by a massive 42% in the second quarter of 2021. 43 funds tracked by Insider Monkey held stakes in the company at the end of the second quarter of 2021. Based on our calculations, Signature Bank (NASDAQ: SBNY) ranks third in our list of the 10 best financial services and bank stocks to buy according to Daniel Johnson’s Gillson Capital.

Harding Loevner, an investment management firm, published its “Global Small Companies Equity Fund” second-quarter 2021 investor letter and discussed its stance on Signature Bank (NASDAQ: SBNY). Here is what Harding Loevner has to say about the firm in its Q2 2021 investor letter:

“First Republic is a large cap company now, but it was a small cap less than ten years ago. Our challenge for the Global Small Companies strategy is to find the next First Republic. Signature Bank, which operates primarily in the large and highly penetrated New York City metro market, is a contender. Many of its clients are small- and medium-sized businesses, with a significant number in commercial real estate and apartment buildings. Rather than 1-800 numbers and phone trees, each Signature client has a single point of contact with a relationship manager and his or her team, who service all of the client’s needs. Signature’s relationship managers have lending authority, and their compensation is linked to their own results. This structure served Signature and its clients well during the pandemic, which was expected to be a disaster for the bank’s commercial real estate portfolio. Its loan deferrals, which peaked at 26% of loans in July 2020, fell to 1.9% by March of this year as the bank worked individually with clients to return them to regular payment status.

Signature’s client relationships also led them to new growth opportunities in cryptocurrency. Three years ago, the bank began offering a digital system to meets its clients need for round-the-clock payments. This eventually led the bank to offer crypto-based payments, services also useful to cryptocurrency exchanges and other players in the digital currency space, which are now using the Signature system and making substantial deposits into the bank.”