Shares of Signature Bank SBNY gained 3.4% in response to the second-quarter 2021 results. Earnings of $3.57 per share handily beat the Zacks Consensus Estimate of $3.13. The bottom line grew from $2.21 in the prior-year quarter.Record loan and deposit balance growth supported net interest income (NII) growth. This along with an increase in non-interest income and lower provisions were the tailwinds. However, a rise in operating expenses was the undermining factor.Net income was $190.5 million, jumping 91.3% from the prior-year quarter. Pre-tax pre-provision earnings were $308.6 million, up 24.5%.Revenues, Loans & Deposits Rise; Expenses UpTotal income increased 20.2% from the prior-year quarter to $480.6 million. The top line surpassed the Zacks Consensus Estimate of $466.96 million.NII climbed 18.1% year over year to $457.2 million on an increase in average interest-earning assets. However, net interest margin (on a tax-equivalent basis) contracted 75 basis points (bps) to 2.02%.Non-interest income was $23.4 million, up substantially from $12.7 million in the year-ago quarter. Growth in fees and service charges led to the jump.Non-interest expenses of $172 million rose 13.3%. The upsurge chiefly stemmed from the rise in salaries and benefits due to the massive hiring of private client banking teams.Efficiency ratio was 35.8%, down from 38% reported as of Jun 30, 2020. A lower ratio indicates a rise in profitability.Net loans and leases, as of Jun 30, 2021, were around $54 billion, up 7 % sequentially. Total deposits rose 15.6% to $85.56 billion.Credit Quality: Mixed BagNet charge-offs were $15.3 million in the June-end quarter, up substantially from $4.6 million recorded in the prior-year quarter. The ratio of non-accrual loans to total loans was 0.25%, up 15 bps.Allowance for credit losses for loans and leases was $514.8 million, up 15.8% year over year. Nonetheless, provision for credit losses reduced to $8.3 million from $93 million in the prior-year quarter, mainly driven by improved macroeconomic conditions.Capital & Profitability Ratios ImproveAs of Jun 30, 2021, Tier 1 risk-based capital ratio was 11.15%, up from 10.43% as of Jun 30, 2020. Total risk-based capital ratio was 12.72% compared with the prior-year quarter’s 12.16%.Return on average assets was 0.94% in the reported quarter compared with the year-earlier quarter’s 0.82%. As of Jun 30, 2021, return on average common stockholders' equity was 13.61%, up from 9.79%.Dividend UpdateSignature Bank's board of directors announced a quarterly common stock dividend of 56 cents. The dividend will be paid out on Aug 13 to shareholders of record at the close of business on Jul 30, 2021.Our TakeConcurrent with its earnings release, Signature Bank has tapped the equity market and announced a public offering of 2.1 million shares of its common stock. Proceeds from the offering will be used for general corporate purposes.This is likely to support the company’s robust balance sheet. Top-line strength on rising fee income and NII are expected to continue supporting profitability.However, continued escalating expenses are downsides. The company is focused on investing in technology by enhancing its payments platform and credit-approval system, which might further inflate costs, going forward.Signature Bank Price, Consensus and EPS Surprise Signature Bank price-consensus-eps-surprise-chart | Signature Bank QuoteCurrently, Signature Bank carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performance of Other BanksKeyCorp’s KEY second-quarter 2021 earnings of 72 cents per share handily surpassed the Zacks Consensus Estimate of 55 cents. The bottom line improved substantially from 16 cents earned in the prior-year quarter.Zions Bancorporation’s ZION second-quarter 2021 net earnings per share of $2.08 surpassed the Zacks Consensus Estimate of $1.25. The bottom line marks a significant improvement from 34 cents earned in the year-ago quarter.State Street’s STT second-quarter 2021 adjusted earnings of $1.97 per share outpaced the Zacks Consensus Estimate of $1.78. The bottom line was 4.8% higher than the prior-year level. Breakout Biotech Stocks with Triple-Digit Profit Potential The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.See these 7 breakthrough stocks now>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report State Street Corporation (STT): Free Stock Analysis Report KeyCorp (KEY): Free Stock Analysis Report Zions Bancorporation, N.A. (ZION): Free Stock Analysis Report Signature Bank (SBNY): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research