Bank Earnings Wrap-up: Morgan Stanley, Northern Trust, Signature Bank, More

Tech companies are doing the heavy lifting today, as the Nasdaq is the only major index that’s well in the green. Both the Dow and S&P are close to flat due to mixed earnings releases from various companies. In this financial-heavy edition of trending stocks, we analyze the earnings results of five banks: Morgan Stanley (NYSE:MS), Northern Trust Corporation (NASDAQ:NTRS), M&T Bank Corporation (NYSE:MTB), Signature Bank (NASDAQ:SBNY), and Pacific Premier Bancorp, Inc. (NASDAQ:PPBI). In addition to the results, we’ll use SEC filings to see what elite funds think of each of stock.

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Morgan Stanley Rises 2.5% on Earnings

Traders are watching Morgan Stanley (NYSE:MS) after the investment bank reported EPS of $0.75 on revenue of $8.91 billion for the second quarter. The results beat the average analyst estimates by $0.16 per share and $610 million respectively. One reason for the beats is that fixed income trading revenue was better-than-expected at $1.30 billion, crushing analyst estimates of $1.01 billion. Wealth management sales fell by 2% year-over-year however, to $3.81 billion. Tangible book value was $31.39 per share. Of the 766 active funds that we track, 52 funds owned $1.75 billion worth of Morgan Stanley (NYSE:MS) positions on March 31, which accounted for 3.60% of the float.

Northern Trust Reports Earnings

Northern Trust Corporation (NASDAQ:NTRS) shares are 1.3% in the red today after the company reported mostly in-line results. For the second quarter, Northern Trust earned $1.06 per share on revenue of $1.32 billion, while analysts had anticipated EPS of $1.06 and $1.31 billion in revenue. Sales rose by 4.8% year-over-year, led by a 3% rise in assets under custody. AUM fell by 4% however, to $906.2 billion. 25 funds that we track were long Northern Trust Corporation (NASDAQ:NTRS) at the end of March.

On the next page we’ll take a look at the earnings reports of three more banks.

M&T Bank Narrowly Misses the Mark

M&T Bank Corporation (NYSE:MTB) earned $2.07 per share on revenue of $1.31 billion for the second quarter, missing estimates by $0.01 per share and $10 million, respectively. Although the top and bottom-line misses were marginal, traders sold off shares of the bank to the tune of a 1.7% decline in the stock today. The average balances of loans to commercial customers rose by an annualized 11% sequentially, while net charge-offs fell. Warren Buffett‘s Berkshire Hathaway owned 5.38 million shares of M&T Bank Corporation (NYSE:MTB) at the end of September.

Signature in the Red After Earnings 

Signature Bank (NASDAQ:SBNY) reported a soft second quarter, with EPS of $1.90 on revenue of $294.79 million. The results missed analysts’ estimates by $0.07 per share for the bottom-line and $0.73 million for the top-line. Shares of the bank have fallen by around 5% in afternoon trading. Although average deposits rose by 5% to $1.39 billion, the company’s net interest margin narrowed to 3.18% from 3.27% in the second quarter of 2015. Book value was $65.09 per share, up from $53.06 per share a year earlier. The number of funds in our system with holdings in Signature Bank (NASDAQ:SBNY) rose by four quarter-over-quarter to 21 as of the end of March.

Pacific Premier Announces Results; Shares Retreat 2.3%

Pacific Premier Bancorp, Inc. (NASDAQ:PPBI) is in the spotlight today after the bank reported an underwhelming second quarter. For the three months ended June 30, Pacific Premier earned $0.38 per share and reported net interest income of $37.56 million, missing estimates of $0.42 per share and net interest income of $39.50 million. Net interest margin was 4.51% and the company’s adjusted efficiency ratio was 54.4%. Those numbers compare represent increases from June 2015’s tallies of 4.31% and 53.7% respectively. Book value per share was $15.94. Ten investment vehicles that we monitor were long Pacific Premier Bancorp, Inc. (NASDAQ:PPBI) at the end of March, unchanged over the quarter.

Disclosure: None