Signature Bank Reports 2012 Third Quarter Results

  Signature Bank Reports 2012 Third Quarter Results

  *Net Income for the 2012 Third Quarter Reached a Record $47.7 Million, or
    $1.00 Diluted Earnings Per Share, An Increase of $9.3 Million, or 24.4
    Percent, from $38.4 Million, or $0.83 Diluted Earnings Per Share, Reported
    in the 2011 Third Quarter
  *Average Deposits Increased $672.3 Million, or 5.3 Percent, in the 2012
    Third Quarter
  *Deposits in the Third Quarter Rose $670.0 Million, or 5.2 Percent, to
    $13.62 Billion, Including $114.0 Million in Short-term Escrow Deposit
    Growth. Deposits for the First Nine Months of 2012 Increased $1.87
    Billion, or 15.9 Percent, and Deposits for the Past 12 Months Grew $2.44
    Billion, or 21.8 Percent.
  *Loans Increased a Record $728.5 Million, or 9.1 Percent, to $8.76 Billion
    for the 2012 Third Quarter, Marking the Third Consecutive Quarter of
    Record Loan Growth
  *Loans Grew $1.91 Billion, or 27.8 Percent, in the First Nine Months of
    2012, Already Surpassing Last Year’s Full-year Record Growth
  *Non-Accrual Loans Decreased to $28.0 Million, or 0.32 Percent of Total
    Loans, at September 30, 2012, Compared with $31.9 Million, or 0.40
    Percent, at the End of the 2012 Second Quarter and $51.1 Million, or 0.79
    Percent, at the End of the 2011 Third Quarter
  *Net Interest Margin Increased 2 and 5 Basis Points, Respectively, to 3.56
    Percent, Compared with 3.54 Percent for the 2012 Second Quarter and 3.51
    Percent for the 2011 Third Quarter
  *Core Net Interest Margin Excluding Loan Prepayment Penalty Income
    Decreased 3 Basis Points to 3.41 Percent, Compared with 3.44 Percent for
    the 2012 Second Quarter
  *Tier 1 Leverage, Tier 1 Risk-Based and Total Risk-Based Capital Ratios
    were 9.60 Percent, 16.15 Percent and 17.23 Percent, Respectively, at
    September 30, 2012. Signature Bank Remains Significantly Above FDIC “Well
    Capitalized” Standards. Tangible Common Equity Ratio was 9.63 Percent
  *One Private Client Banking Team Joined and One Group Director Added to
    Existing Team During the 2012 Third Quarter; One Team Added Thus Far in
    2012 Fourth Quarter

Business Wire

NEW YORK -- October 23, 2012

Signature Bank (Nasdaq: SBNY), a New York-based full-service commercial bank,
today announced results for its third quarter ended September 30, 2012.

Net income for the 2012 third quarter reached a record $47.7 million, or $1.00
diluted earnings per share, versus $38.4 million, or $0.83 diluted earnings
per share, for the 2011 third quarter. The record net income for the 2012
third quarter, when compared with the third quarter of 2011, is primarily due
to an increase in net interest income, fueled by strong deposit growth and
record loan growth. These factors were partially offset by an increase in
non-interest expense.

Net interest income for the 2012 third quarter reached $141.7 million, an
increase of $23.8 million, or 20.2 percent, versus the 2011 third quarter.
This increase is primarily due to growth in average interest-earning assets.
Total assets reached $16.46 billion at September 30, 2012, up $2.6 billion, or
18.8 percent, from $13.86 billion at September 30, 2011. Average assets for
the 2012 third quarter reached $16.1 billion, an increase of $2.51 billion, or
18.5 percent, compared with the third quarter of last year.

Deposits for the 2012 third quarter increased $670.0 million, or 5.2 percent,
to $13.62 billion at September 30, 2012. When compared with deposits at
December 31, 2011, overall deposit growth during the first nine months of 2012
was 15.9 percent, or $1.87 billion. Excluding short-term escrow deposits of
$981.7 million and brokered deposits of $93.0 million at the end of the 2012
third quarter and $867.8 million and $87.9 million, respectively, at the end
of the 2012 second quarter, core deposits grew $550.9 million for the quarter.
Average deposits for the 2012 third quarter reached $13.37 billion, an
increase of $672.3 million, or 5.3 percent.

“We delivered another quarter of stellar deposit, loan and top-line revenue
growth, marking our 12^th consecutive quarter of record earnings. We continued
the transformation of our well-capitalized balance sheet with another quarter
of record loan growth stemming from all of our major lending areas, including
commercial and industrial, commercial real estate and specialty finance. At
September 30, 2011, loans were 46.5 percent of the balance sheet and now, they
are in excess of 53 percent at September 30, 2012. This transformation has
helped mitigate the effect from the prolonged low-interest rate environment on
our net interest margin,” explained Signature Bank President and Chief
Executive Officer Joseph J. DePaolo.

“Additionally, the successful introduction and subsequent implementation of
our recently established specialty finance business, Signature Financial,
headed by experienced professionals, has allowed us to again focus on the
hiring of our traditional banking teams. Hence, we are pleased to have added
two additional teams and a group director to the Signature Bank network,”
DePaolo noted.

Scott A. Shay, Chairman of the Board, said: "This has been a quarter in which
all of Signature Bank’s cylinders -- new and established -- worked in tandem.
Deposits broadly funded robust loan growth as more clients on both sides of
our balance sheet recognize that Signature Bank’s service is best in class. We
achieved earnings growth despite challenging headwinds from the Federal
Reserve’s QE3 policy, which has put substantial pressure on spreads throughout
the market. We continue to think of our depositors first as we maintain a
conservative and well-capitalized balance sheet in anticipation of an ongoing
murky economic outlook.”

Capital

The Bank’s Tier 1 leverage, Tier 1 risk-based, and total risk-based capital
ratios were approximately 9.60 percent, 16.15 percent and 17.23 percent,
respectively, as of September 30, 2012. Each of these ratios is well in excess
of regulatory requirements. The Bank’s strong risk-based capital ratios
reflect the relatively low risk profile of the Bank’s balance sheet. The
Bank’s tangible common equity ratio remains strong at 9.63 percent. The Bank
defines the tangible common equity ratio as the ratio of tangible common
equity to adjusted tangible assets and calculates this ratio by dividing total
consolidated common shareholders’ equity by consolidated total assets.

Net Interest Income

Net interest income for the 2012 third quarter was $141.7 million, up $23.8
million, or 20.2 percent, versus the 2011 third quarter, primarily due to
growth in average interest-earning assets. Average interest-earning assets of
$15.82 billion for the 2012 third quarter represent an increase of $2.48
billion, or 18.6 percent, when compared with the 2011 third quarter. Yield on
interest-earning assets for the 2012 third quarter decreased 18 basis points,
to 4.25 percent, versus the third quarter of last year. This decrease was
primarily attributable to the continued effect of the prolonged low interest
rate environment.

Average cost of deposits and average cost of funds for the third quarter of
2012 decreased by 21 and 25 basis points, respectively, compared with the 2011
third quarter to 0.62 percent and 0.75 percent. These decreases were
predominantly due to the continued effect of the prolonged low interest rate
environment.

Net interest margin for the 2012 third quarter was 3.56 percent versus 3.51
percent reported in the 2011 third quarter. On a linked quarter basis, net
interest margin increased 2 basis points. The linked quarter increase was
primarily the result of an increase of $2.3 million in loan prepayment penalty
income.

Provision for Loan and Lease Losses

The Bank’s provision for loan and lease losses for the 2012 third quarter was
$10.1 million, a decrease of $2.1 million, or 16.9 percent, versus the
comparable period last year. The decrease was largely due to a decrease in
charge-offs.

Net charge-offs for the 2012 third quarter were $4.6 million, or 0.22 percent
of average loans on an annualized basis, compared with $4.7 million, or 0.25
percent, for the 2012 second quarter and $7.0 million, or 0.44 percent, for
the 2011 third quarter.

Non-Interest Income and Non-Interest Expense

Non-interest income for the 2012 third quarter was $8.3 million, a decrease of
$500 thousand versus $8.8 million reported in the 2011 third quarter. The
decrease was due to a $1.2 million decline in net gains on sales of
securities.

Non-interest expense for the 2012 third quarter rose $9.2 million, or 20.2
percent, to $54.9 million versus $45.7 million reported in the same period a
year ago. The increase was primarily a result of the addition of new private
client banking teams and the launch of Signature Financial.

The Bank’s efficiency ratio increased slightly to 36.6 percent for the third
quarter of 2012 compared with 36.1 percent for same period last year. The
increase was primarily due to the hiring for Signature Financial. On a linked
quarter basis, the Bank’s efficiency ratio improved to 36.6 percent from 38.1
percent for the second quarter of 2012 as we are now gaining leverage from our
specialty finance business.

Loans

Loans, excluding loans held for sale, grew a record $728.5 million, or 9.1
percent, during the 2012 third quarter to $8.76 billion, versus $8.03 billion
at June 30, 2012. At September 30, 2012, loans accounted for 53.2 percent of
total assets, compared with 50.6 percent at the end of the 2012 second quarter
and 46.5 percent at the end of the 2011 third quarter. Average loans,
excluding loans held for sale, were $8.38 billion in the 2012 third quarter,
an increase of $686.9 million, or 8.9 percent, from the 2012 second quarter
and $2.11 billion, or 33.7 percent, from the 2011 third quarter. The increase
in loans for the quarter was primarily driven by growth in commercial real
estate and multi-family loans as well as specialty finance.

At September 30, 2012, non-accrual loans were $28.0 million, representing 0.32
percent of total loans and 0.17 percent of total assets, versus non-accrual
loans of $31.9 million, or 0.40 percent of total loans, at June 30, 2012 and
$51.1 million, or 0.79 percent of total loans, at September 30, 2011. At
September 30, 2012, the ratio of allowance for loan and lease losses to total
loans was 1.18 percent, versus 1.21 percent at June 30, 2012 and 1.30 percent
at September 30, 2011. Additionally, the ratio of allowance for loan and lease
losses to non-accrual loans, or the coverage ratio, was 367 percent for the
2012 third quarter versus 305 percent for the second quarter of 2012 and 163
percent for the third quarter of 2011.

Conference Call

Signature Bank’s management will host a conference call to review results of
the 2012 third quarter on Tuesday, October 23, 2012, at 10:00 AM ET. All
participants should dial 480-629-9692 at least ten minutes prior to the start
of the call.

To hear a live Web simulcast or to listen to the archived webcast following
completion of the call, please visit the Bank’s website at
www.signatureny.com, click on the "Investor Relations" tab, then select
"Company News," followed by "Conference Calls," to access the link to the
call. To listen to a telephone replay of the conference call, please dial
303-590-3030 and enter reservation identification number 4568293. The replay
will be available from approximately 12:00 PM ET on Tuesday, October 23, 2012
through 11:59 PM ET on Friday, October 26, 2012.

About Signature Bank

Signature Bank, member FDIC, is a New York-based full-service commercial bank
with 25 private client offices throughout the New York metropolitan area. The
Bank’s growing network of private client banking teams serves the needs of
privately owned businesses, their owners and senior managers. Signature Bank
offers a wide variety of business and personal banking products and services.
The Bank operates Signature Financial, LLC, a specialty finance subsidiary
focused on equipment finance and leasing, transportation financing and taxi
medallion financing. Investment, brokerage, asset management and insurance
products and services are offered through the Bank’s subsidiary, Signature
Securities Group Corporation, a licensed broker-dealer, investment adviser and
member FINRA/SIPC.

Signature Bank's 25 offices are located: In Manhattan (9) - 261 Madison
Avenue; 300 Park Avenue; 71 Broadway; 565 Fifth Avenue; 950 Third Avenue; 200
Park Avenue South; 1020 Madison Avenue; 50 West 57th Street and 2 Penn Plaza.
Brooklyn (3) - 26 Court Street; 84 Broadway and 6321 New Utrecht Avenue.
Westchester (2) - 1C Quaker Ridge Road, New Rochelle and 360 Hamilton Avenue,
White Plains. Long Island (6) - 1225 Franklin Avenue, Garden City; 279 Sunrise
Highway, Rockville Centre; 68 South Service Road, Melville; 923 Broadway,
Woodmere; 40 Cuttermill Road, Great Neck and 100 Jericho Quadrangle, Jericho.
Queens (3) - 36-36 33rd Street, Long Island City; 78-27 37th Avenue, Jackson
Heights and 8936 Sutphin Blvd., Jamaica. Bronx (1) - 421 Hunts Point Avenue,
Bronx. Staten Island (1) - 2066 Hylan Blvd.

For more information, please visit www.signatureny.com.

This press release and oral statements made from time to time by our
representatives contain "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995 that are subject to risks and
uncertainties. You should not place undue reliance on those statements because
they are subject to numerous risks and uncertainties relating to our
operations and business environment, all of which are difficult to predict and
may be beyond our control. Forward-looking statements include information
concerning our future results, interest rates and the interest rate
environment, loan and deposit growth, loan performance, operations, new
private client team hires, new office openings and business strategy. These
statements often include words such as "may," "believe," "expect,"
"anticipate," "intend," “potential,” “opportunity,” “could,” “project,”
“seek,” “should,” “will,” would,” "plan," "estimate" or other similar
expressions. As you consider forward-looking statements, you should understand
that these statements are not guarantees of performance or results. They
involve risks, uncertainties and assumptions that could cause actual results
to differ materially from those in the forward-looking statements. These
factors include but are not limited to: (i) prevailing economic conditions;
(ii) changes in interest rates, loan demand, real estate values and
competition, any of which can materially affect origination levels and gain on
sale results in our business, as well as other aspects of our financial
performance, including earnings on interest-bearing assets; (iii) the level of
defaults, losses and prepayments on loans made by us, whether held in
portfolio or sold in the whole loan secondary markets, which can materially
affect charge-off levels and required credit loss reserve levels; (iv) changes
in monetary and fiscal policies of the U.S. Government, including policies of
the U.S. Treasury and the Board of Governors of the Federal Reserve System;
(v) changes in the banking and other financial services regulatory environment
and (vi) competition for qualified personnel and desirable office locations.
As you read and consider forward-looking statements, you should understand
that these statements are not guarantees of performance or results. They
involve risks, uncertainties and assumptions and can change as a result of
many possible events or factors, not all of which are known to us or in our
control. Although we believe that these forward-looking statements are based
on reasonable assumptions, beliefs and expectations, if a change occurs or our
beliefs, assumptions and expectations were incorrect, our business, financial
condition, liquidity or results of operations may vary materially from those
expressed in our forward-looking statements. Additional risks are described in
our quarterly and annual reports filed with the FDIC. You should keep in mind
that any forward-looking statements made by Signature Bank speak only as of
the date on which they were made. New risks and uncertainties come up from
time to time, and we cannot predict these events or how they may affect the
Bank. Signature Bank has no duty to, and does not intend to, update or revise
the forward-looking statements after the date on which they are made. In light
of these risks and uncertainties, you should keep in mind that any
forward-looking statement made in this release or elsewhere might not reflect
actual results.

                                                                
SIGNATURE BANK
CONSOLIDATED STATEMENTS OF
OPERATIONS
(unaudited)
                                                                     
                                                                     
                               Three months ended        Nine months ended
                               September 30,
                                                         September 30,
(dollars in thousands,        2012         2011       2012       2011
except per share amounts)
INTEREST AND DIVIDEND INCOME
Loans held for sale            $ 951         845         2,481       2,809
Loans and leases, net            109,154     85,887      301,052     242,487
Securities                       53,354      56,870      167,288     165,281
available-for-sale
Securities held-to-maturity      5,135       4,715       14,740      13,713
Other short-term investments   508       502       1,512     1,431   
Total interest income          169,102   148,819   487,073   425,721 
INTEREST EXPENSE
Deposits                         20,982      23,545      63,927      68,662
Federal funds purchased and
securities sold under
agreements to repurchase         5,366       5,804       17,155      16,602
Federal Home Loan Bank         1,083     1,610     3,328     5,937   
advances
Total interest expense         27,431    30,959    84,410    91,201  
Net interest income before
provision for loan and lease     141,671     117,860     402,663     334,520
losses
Provision for loan and lease   10,072    12,122    31,039    37,295  
losses
Net interest income after
provision for loan and lease   131,599   105,738   371,624   297,225 
losses
NON-INTEREST INCOME
Commissions                      1,841       2,172       6,275       6,872
Fees and service charges         4,029       3,770       11,552      11,451
Net gains on sales of            345         1,570       5,913       13,158
securities
Net gains on sales of loans      2,474       1,095       6,663       3,247
Other-than-temporary
impairment losses on
securities:
Total impairment losses on       (98     )   (3,413  )   (9,478  )   (11,651 )
securities
Portion recognized in other
comprehensive income (before    (336    )  3,197     6,929     9,903   
taxes)
Net impairment losses on
securities recognized in         (434    )   (216    )   (2,549  )   (1,748  )
earnings
Net trading income               203         73          560         210
Other (loss) income            (118    )  357       (1,074  )  947     
Total non-interest income      8,340     8,821     27,340    34,137  
NON-INTEREST EXPENSE
Salaries and benefits            37,635      29,665      107,398     84,430
Occupancy and equipment          4,045       4,237       12,704      12,022
Other general and              13,260    11,802    40,037    39,143  
administrative
Total non-interest expense     54,940    45,704    160,139   135,595 
Income before income taxes       84,999      68,855      238,825     195,767
Income tax expense             37,301    30,505    103,476   86,217  
Net income                    $ 47,698    38,350    135,349   109,550 
PER COMMON SHARE DATA
Earnings per share – basic     $ 1.02        0.84        2.91        2.56
Earnings per share – diluted   $ 1.00        0.83        2.86        2.52
                                                                             

SIGNATURE BANK                                                 
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                                                                  
                                                                  
                                                  September 30,   December 31,
                                                  2012            2011
(dollars in thousands, except per share          (unaudited)    
amounts)
ASSETS
Cash and due from banks                           $  40,231       34,083
Short-term investments                             9,902       6,071
Total cash and cash equivalents                    50,133      40,154
Securities available-for-sale (pledged
$2,520,707 at September 30, 2012
and $2,672,093 at December 31, 2011)                 6,267,704    6,512,855
Securities held-to-maturity (fair value
$663,879 at September 30, 2012
and $571,980 at December 31, 2011; pledged
$459,890 at
September 30, 2012 and $352,865 at December 31,      643,896      556,044
2011)
Federal Home Loan Bank stock                         38,312       48,152
Loans held for sale                                  411,668      392,025
Loans and leases, net                                8,653,570    6,764,564
Premises and equipment, net                          31,593       30,574
Accrued interest and dividends receivable            62,527       60,533
Other assets                                       299,851     261,219
Total assets                                     $  16,459,254  14,666,120
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Non-interest-bearing                                 3,879,044    3,148,436
Interest-bearing                                   9,744,569   8,605,702
Total deposits                                     13,623,613  11,754,138
Federal funds purchased and securities sold
under agreements
to repurchase                                        786,000      750,800
Federal Home Loan Bank advances                      330,000      675,000
Accrued expenses and other liabilities             135,359     78,066
Total liabilities                                  14,874,972  13,258,004
Shareholders’ equity
Preferred stock, par value $.01 per share;
61,000,000 shares authorized;
none issued at September 30, 2012 and December       -            -
31, 2011
Common stock, par value $.01 per share;
64,000,000 shares authorized;
46,866,750 and 46,181,890 shares issued and
outstanding
at September 30, 2012 and December 31, 2011          469          462
Additional paid-in capital                           984,569      954,833
Retained earnings                                    558,381      423,032
Net unrealized gains on securities                 40,863      29,789
available-for-sale, net of tax
Total shareholders' equity                         1,584,282   1,408,116
Total liabilities and shareholders' equity       $  16,459,254  14,666,120
                                                                  

SIGNATURE BANK                                                 
FINANCIAL
SUMMARY, CAPITAL
RATIOS, ASSET
QUALITY
(unaudited)
                                                                    
                                                                    
                     Three months ended                Nine months ended
                     September 30,                     September 30,
(dollars in
thousands, except   2012             2011           2012        2011
ratios and per
share amounts)
PER COMMON SHARE
Net income -         $  1.02           $  0.84         $ 2.91       $ 2.56
basic
Net income -         $  1.00           $  0.83         $ 2.86       $ 2.52
diluted
Average shares
outstanding -           46,792            45,532         46,516       42,760
basic
Average shares
outstanding -           47,529            46,338         47,333       43,531
diluted
Book value           $  33.80          $  29.57        $ 33.80      $ 29.57
                                                                    
SELECTED
FINANCIAL DATA
Return on average       1.18     %        1.12    %      1.17   %     1.15   %
total assets
Return on average
shareholders'           12.24    %        12.56   %      12.08  %     12.68  %
equity
Efficiency ratio        36.62    %        36.08   %      37.24  %     36.78  %
(1)
Efficiency ratio
excluding net
gains on sales of
securities
and net                36.60    %        36.47   %      37.54  %     37.96  %
impairment losses
on securities
recognized
in earnings (1)
Yield on
interest-earning        4.25     %        4.43    %      4.28   %     4.55   %
assets
Cost of deposits        0.75     %        1.00    %      0.81   %     1.05   %
and borrowings
Net interest            3.56     %        3.51    %      3.54   %     3.58   %
margin
                                                                    
(1) The efficiency ratio is calculated by dividing non-interest expense by the
sum of net interest income before provision for loan and lease losses and
non-interest income.
                                                                    
                                                                    
                     September 30,     June 30,        December     September
                   2012             2012           31,         30,
                                                       2011         2011
CAPITAL RATIOS
Tangible common         9.63     %        9.55    %      9.60   %     9.85   %
equity (2)
Tier 1 leverage         9.60     %        9.57    %      9.67   %     9.84   %
Tier 1 risk-based       16.15    %        16.45   %      17.08  %     17.28  %
Total risk-based        17.23    %        17.55   %      18.17  %     18.37  %
                                                                    
ASSET QUALITY
Non-accrual loans    $  28,026         $  31,905       $ 42,218     $ 51,134
Allowance for
loan and lease       $  102,910        $  97,403       $ 86,162     $ 83,526
losses
Allowance for
loan and lease          367.19   %        305.29  %      204.09 %     163.35 %
losses to
non-accrual loans
Allowance for
loan and lease          1.18     %        1.21    %      1.26   %     1.30   %
losses to total
loans
Non-accrual loans       0.32     %        0.40    %      0.62   %     0.79   %
to total loans
Quarterly net
charge-offs to          0.22     %        0.25    %      0.71   %     0.44   %
average loans
(annualized)
                                                                    
(2) We define tangible common equity as the ratio of tangible common equity to
adjusted tangible assets (the "TCE ratio") and calculate this ratio by
dividing total consolidated common shareholders' equity by consolidated total
assets (we had no intangible assets at any of the dates presented above).
Tangible common equity is considered to be a non-GAAP financial measure and
should be considered in addition to, not as a substitute for or superior to,
financial measures determined in accordance with GAAP. The TCE ratio is a
metric used by management to evaluate the adequacy of our capital levels. In
addition to tangible common equity, management uses other metrics, such as
Tier 1 capital related ratios, to evaluate capital levels.


SIGNATURE BANK                                                               
NET INTEREST MARGIN
ANALYSIS
(unaudited)
                                                                                    
                                                                                    
                       Three months ended                   Three months ended
                       September 30, 2012                   September 30, 2011
(dollars in            Average        Interest   Average    Average      Interest   Average
thousands)            Balance       Income/   Yield/    Balance     Income/   Yield/
                                      Expense    Rate                    Expense    Rate
INTEREST-EARNING
ASSETS
Short-term             $ 100,108      87         0.35   %   249,426      177        0.28   %
investments
Investment               7,079,719    58,910     3.33   %   6,615,503    61,910     3.74   %
securities
Commercial loans,        7,990,214    105,179    5.24   %   5,880,249    81,615     5.51   %
mortgages and leases
Residential
mortgages and            389,170      3,975      4.06   %   386,321      4,272      4.39   %
consumer loans
Loans held for sale    258,929     951       1.46   %  206,636     845       1.62   %
Total
interest-earning       15,818,140  169,102   4.25   %  13,338,135  148,819   4.43   %
assets
Non-interest-earning   284,815                       250,020              
assets
Total assets          $ 16,102,955                    13,588,155           
INTEREST-BEARING
LIABILITIES
Interest-bearing
deposits
NOW and
interest-bearing         720,411      801        0.44   %   578,496      795        0.55   %
demand
Money market             8,074,961    16,596     0.82   %   7,031,894    18,626     1.05   %
Time deposits            945,912      3,585      1.51   %   914,800      4,124      1.79   %
Non-interest-bearing   3,626,662   -         -        2,728,370   -         -      
demand deposits
Total deposits         13,367,946  20,982    0.62   %  11,253,560  23,545    0.83   %
Borrowings             1,098,667   6,449     2.34   %  969,940     7,414     3.03   %
Total deposits and     14,466,613  27,431    0.75   %  12,223,500  30,959    1.00   %
borrowings
Other
non-interest-bearing
liabilities
and shareholders'      1,636,342                     1,364,655            
equity
Total liabilities
and shareholders'     $ 16,102,955                    13,588,155           
equity
OTHER DATA
Net interest income
/ interest rate                    141,671   3.50   %             117,860   3.43   %
spread
Net interest margin                         3.56   %                      3.51   %
Ratio of average
interest-earning
assets
to average
interest-bearing                            109.34 %                      109.12 %
liabilities
                                                                                           

SIGNATURE BANK                                                               
NET INTEREST MARGIN
ANALYSIS
(unaudited)
                                                                                    
                                                                                    
                       Nine months ended                    Nine months ended
                       September 30, 2012                   September 30, 2011
(dollars in            Average        Interest   Average    Average      Interest   Average
thousands)            Balance       Income/   Yield/    Balance     Income/   Yield/
                                      Expense    Rate                    Expense    Rate
INTEREST-EARNING
ASSETS
Short-term             $ 90,288       230        0.34   %   135,109      292        0.29   %
investments
Investment               7,160,982    183,310    3.41   %   6,283,608    180,133    3.82   %
securities
Commercial loans,        7,331,863    289,272    5.27   %   5,462,387    229,732    5.62   %
mortgages and leases
Residential
mortgages and            381,259      11,780     4.13   %   388,166      12,755     4.39   %
consumer loans
Loans held for sale    248,546     2,481     1.33   %  240,530     2,809     1.56   %
Total
interest-earning       15,212,938  487,073   4.28   %  12,509,800  425,721   4.55   %
assets
Non-interest-earning   285,078                       276,522              
assets
Total assets          $ 15,498,016                    12,786,322           
INTEREST-BEARING
LIABILITIES
Interest-bearing
deposits
NOW and
interest-bearing         679,946      2,328      0.46   %   634,545      2,480      0.52   %
demand
Money market             7,784,412    50,756     0.87   %   6,425,345    53,813     1.12   %
Time deposits            918,455      10,843     1.58   %   920,662      12,369     1.80   %
Non-interest-bearing   3,389,576   -         -        2,612,348   -         -      
demand deposits
Total deposits         12,772,389  63,927    0.67   %  10,592,900  68,662    0.87   %
Borrowings             1,157,344   20,483    2.36   %  1,042,022   22,539    2.89   %
Total deposits and     13,929,733  84,410    0.81   %  11,634,922  91,201    1.05   %
borrowings
Other
non-interest-bearing
liabilities
and shareholders'      1,568,283                     1,151,400            
equity
Total liabilities
and shareholders'     $ 15,498,016                    12,786,322           
equity
OTHER DATA
Net interest income
/ interest rate                    402,663   3.47   %             334,520   3.50   %
spread
Net interest margin                         3.54   %                      3.58   %
Ratio of average
interest-earning
assets
to average
interest-bearing                            109.21 %                      107.52 %
liabilities
                                                                                           

SIGNATURE BANK                                                 
NON-GAAP
FINANCIAL
MEASURES
(unaudited)
                                                                    
Management believes that the presentation of certain non-GAAP financial
measures assists investors when comparing results period-to-period in a more
consistent manner and provides a better measure of Signature Bank's results.
These non-GAAP measures include the Bank's (i) tangible common equity ratio,
(ii) net income and diluted earnings per share excluding the after-tax effect
of gains from the sales of SBA interest-only strip securities and (iii) core
net interest margin excluding loan prepayment penalty income. These non-GAAP
measures should not be considered a substitute for GAAP-basis measures and
results. We strongly encourage investors to review our consolidated financial
statements in their entirety and not to rely on any single financial measure.
Because non-GAAP financial measures are not standardized, it may not be
possible to compare these financial measures with other companies’ non-GAAP
financial measures having the same or similar names.
                                                                    
The following table presents a reconciliation of net income and diluted
earnings per share (as reported) to net income and diluted earnings per share
excluding the after-tax effect of gains from the sales of SBA interest-only
strip securities:
                                                                    
                  Three months ended               Nine months ended
                  September 30,                    September 30,
(dollars in
thousands,       2012             2011          2012            2011
except per
share amounts)
Net income (as    $  47,698         38,350         $  135,349       109,550
reported)
Gains on sales
of SBA
interest-only        -              -                 (2,664   )    (7,434  )
strip
securities
Tax effect         -            -              1,136       3,281   
Net income -
excluding
after-tax
effect of
gains on sales
of SBA
interest-only
strip            $  47,698       38,350       $  133,821     105,397 
securities
                                                                    
Diluted
earnings per      $  1.00           0.83           $  2.86          2.52
share (as
reported)
Gains on sales
of SBA
interest-only        -              -                 (0.05    )    (0.17   )
strip
securities
Tax effect         -            -              0.02        0.07    
Diluted
earnings per
share -
excluding
after-tax
effect of
gains on sales
of
SBA
interest-only    $  1.00         0.83         $  2.83        2.42    
strip
securities
                                                                    
                                                                    
The following table reconciles net interest margin (as reported) to core net
interest margin excluding loan prepayment penalty income:
                                                                    
                  Three months ended               Nine months ended
                  September 30,                    September 30,
                2012             2011          2012            2011
Net interest
margin (as           3.56    %      3.51    %         3.54     %    3.58    %
reported)
Margin
contribution
from loan          (0.15   )%    (0.05   )%      (0.11    )%  (0.07   )%
prepayment
penalty income
Core net
interest
margin -           3.41    %     3.46    %       3.43     %   3.51    %
excluding loan
prepayment
penalty income
                                                                            

Contact:

Signature Bank
Investor Contact:
Eric R. Howell, 646-822-1402
Chief Financial Officer
ehowell@signatureny.com
or
Media Contact:
Susan J. Lewis, 646-822-1825
slewis@signatureny.com
 
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