Signature Bank Reports 2012 Fourth Quarter and Year-End Results Deposit Growth, Loan Growth and Net Income All Reach Record Levels in 2012 *Net Income for the 2012 Fourth Quarter Reached a Record $50.1 Million, or $1.05 Diluted Earnings Per Share, An Increase of $10.1 Million, or 25.4 Percent, from $40.0 Million, or $0.85 Diluted Earnings Per Share Reported in the 2011 Fourth Quarter. *Net Income for 2012 Reached a Record $185.5 Million or $3.91 Diluted Earnings Per Share, Compared with $149.5 Million or $3.37 Diluted Earnings Per Share in 2011, Up $36.0 Million, or 24.0 Percent. *Deposits in the Fourth Quarter Rose $459.0 Million to $14.08 Billion. Average Deposits Increased $608.7 Million, or 4.6 Percent, in the 2012 Fourth Quarter. *Deposits for 2012 Grew a Record $2.33 Billion, or 19.8 Percent. Core Deposits Up a Record $2.17 Billion, or 19.8 Percent. Average Deposits for 2012 at $13.08 Billion, Representing an Increase of $2.21 Billion, or 20.4 Percent, Versus $10.86 Billion in 2011. *Loans Increased a Record $1.02 Billion, or 11.6 Percent, to $9.77 Billion in the 2012 Fourth Quarter Marking the Fourth Consecutive Quarter of Record Loan Growth. Since Year-end 2011, Loans Increased a Record $2.92 Billion, or 42.6 Percent. *Non-Accrual Loans Decreased to $27.2 Million, or 0.28 Percent of Total Loans, at December 31, 2012, Versus $28.0 Million, or 0.32 Percent of Total Loans, at the End of the 2012 Third Quarter. Non-Accrual Loans at Year-end 2011 were $42.2 Million, or 0.62 Percent of Total Loans. *Net Interest Margin Was 3.53 Percent for the 2012 Fourth Quarter, Compared with 3.56 Percent for the 2012 Third Quarter and 3.55 Percent for the 2011 Fourth Quarter. *Core Net Interest Margin, Which Excludes Loan Prepayment Penalty Income, was 3.32 Percent for the 2012 Fourth Quarter, Compared with 3.41 Percent for the 2012 Third Quarter. *Tier 1 Leverage, Tier 1 Risk-Based and Total Risk-Based Capital Ratios were 9.51 Percent, 15.32 Percent and 16.35 Percent, Respectively, at December 31, 2012. Signature Bank Remains Significantly Above FDIC “Well-Capitalized” Standards. Tangible Common Equity Ratio was 9.45 Percent. *One Private Client Banking Team Joined During the 2012 Fourth Quarter; Four During the Full Year. Additionally, the Bank Launched Signature Financial in 2012, Marking Its Entry Into the Specialty Finance Arena. Business Wire NEW YORK -- January 22, 2013 Signature Bank (Nasdaq: SBNY), a New York-based full-service commercial bank, today announced results for its fourth quarter and year ended December 31, 2012. Net income for the 2012 fourth quarter reached a record $50.1 million, or $1.05 diluted earnings per share, compared with $40.0 million, or $0.85 diluted earnings per share, for the 2011 fourth quarter. The record net income for the 2012 fourth quarter, when compared with the same period last year, is primarily the result of an increase in net interest income, fueled by record core deposit growth and record loan growth. These factors were partially offset by an increase in non-interest expenses. Net interest income for the 2012 fourth quarter rose $21.9 million, or 17.5 percent, to $147.1 million, compared with the fourth quarter of 2011. This increase is primarily due to growth in average interest-earning assets. Total assets reached $17.46 billion at December 31, 2012, expanding $2.79 billion, or 19.0 percent, from $14.67 billion at December 31, 2011. Average assets for the 2012 fourth quarter reached $16.92 billion, an increase of $2.64 billion, or 18.5 percent, versus the comparable period a year ago. Deposits for the 2012 fourth quarter rose $459.0 million, or 3.4 percent, to $14.08 billion at December 31, 2012. Overall deposit growth in 2012 was 19.8 percent, or a record $2.33 billion, when compared with deposits at the end of 2011. Excluding short-term escrow and brokered deposits of $994.8 million at year-end 2012 and $831.8 million at year-end 2011, core deposits increased a record $2.17 billion, or 19.8 percent, in 2012. Average total deposits for 2012 were $13.08 billion, growing $2.21 billion, or 20.4 percent, versus average total deposits of $10.86 billion for 2011. “Signature Bank delivered another year of significant deposit, loan and top-line revenue growth in 2012, which also marked our fifth consecutive year of record earnings. The transformation of our well-capitalized balance sheet continued throughout the year, with all of our major lending areas contributing to the record loan growth, including commercial and industrial, commercial real estate including multi-family and specialty finance. At December 31, 2011, loans comprised 46.7 percent of the balance sheet and as of December 31, 2012, they are now at 56.0 percent. This transformation has helped to somewhat mitigate the effects of the prolonged low-interest rate environment on our net interest margin,” said Joseph J. DePaolo, President and Chief Executive Officer. “Our relationship-based, single-point-of-contact model, coupled with our healthy balance sheet, once again led to the Bank earning many accolades this year, including being named among the top five banks in the U.S. by Forbes, Bank Director Magazine and the ABA Banking Journal. The foundation for our continued success lies in our core philosophy of maintaining a conservative and well-capitalized balance sheet for our depositors. Depositor safety has been -- and always will be – at the forefront of our business model,” DePaolo explained. Scott A. Shay, Chairman of the Board, added: "This past year we again demonstrated our consistency, discipline and reputation as the bank of choice for New York privately owned businesses, based on two hallmarks of our institution, namely, safety and service. In terms of safety, our capital ratios continue to be considerably higher than our mega-bank competitors. Additionally, our balance sheet is straightforward, enabling us to boast a very low non-performing asset ratio of 0.19 percent. This commitment to safety also allows clients to rest easy knowing their funds are secure in a credit worthy institution. Furthermore, our ability to distinguish the Bank in the marketplace through unparalleled service is a direct reflection of our dedicated, talented colleagues, who treat each client as their most important. We pledge to stand by these two pillars in 2013 and beyond.” Capital The Bank’s tier 1 leverage, tier 1 risk-based, and total risk-based capital ratios were approximately 9.51 percent, 15.32 percent and 16.35 percent, respectively, as of December 31, 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 9.45 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 fourth quarter was $147.1 million, up $21.9 million, or 17.5 percent, when compared with the same period last year, primarily due to growth in average interest-earning assets. Average interest-earning assets of $16.58 billion for the 2012 fourth quarter represent an increase of $2.56 billion, or 18.3 percent, from the 2011 fourth quarter. Yield on interest-earning assets for the 2012 fourth quarter decreased 22 basis points, to 4.16 percent, versus the fourth 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 2012 fourth quarter decreased by 18 and 22 basis points to 0.58 percent and 0.69 percent, respectively, versus the comparable period a year ago. These decreases were predominantly due to the continued effect of the prolonged low interest rate environment. Net interest margin for the 2012 fourth quarter was 3.53 percent versus 3.55 percent reported in the 2011 fourth quarter. On a linked quarter basis, net interest margin decreased three basis points. The linked quarter decrease was primarily due to the continued effect of the prolonged low interest rate environment. Excluding loan prepayment penalty income in both quarters, linked quarter core margin declined nine basis points to 3.32 percent. Provision for Loan Losses The Bank’s provision for loan losses for the fourth quarter of 2012 was $10.4 million, a decrease of $4.2 million, or 28.8 percent, versus the 2011 fourth quarter. The decrease was due to a decrease in net charge-offs of $6.1 million. Net charge-offs for the fourth quarter of 2012 were $5.9 million, or 0.25 percent of average loans on an annualized basis, versus $4.6 million, or 0.22 percent, for the 2012 third quarter and $11.9 million, or 0.71 percent, for the 2011 fourth quarter. Non-Interest Income and Non-Interest Expense Non-interest income for the 2012 fourth quarter was $8.9 million, up $1.0 million from $7.9 million reported in the fourth quarter of last year. The increase was due to an increase of $1.8 million in net gains on sales of SBA loans. Non-interest expense for the 2012 fourth quarter was $58.1 million, an increase of $11.0 million, or 23.3 percent, versus $47.1 million reported in the 2011 fourth quarter. The increase was primarily a result of the addition of new private client banking teams and the hiring of more than 50 professionals for the launch of Signature Financial. The Bank’s efficiency ratio increased slightly to 37.2 percent for the fourth quarter of 2012 compared with 35.4 percent for the same period a year ago. The increase was primarily due to the hiring for Signature Financial. Loans Loans, excluding loans held for sale, expanded a record $1.02 billion, or 11.6 percent, during the 2012 fourth quarter to $9.77 billion, versus $8.76 billion at September 30, 2012. Due to the expected increase in capital gains taxes for 2013, the fourth quarter loan growth includes approximately $184 million in loans that would have closed in 2013. At December 31, 2012, loans accounted for 56.0 percent of total assets, compared with 53.2 percent at the end of the 2012 third quarter and 46.7 percent at the end of 2011. Average loans, excluding loans held for sale, reached $9.19 billion in the 2012 fourth quarter, growing $810.5 million, or 9.7 percent, from the 2012 third quarter and $2.54 billion, or 38.1 percent, from the fourth quarter of 2011. The increase in loans for the quarter and the year was primarily driven by growth in commercial real estate and multi-family loans as well as specialty finance, which traditionally experiences strong seasonal growth during the fourth quarter. At December 31, 2012, non-accrual loans were $27.2 million, representing 0.28 percent of total loans and 0.16 percent of total assets, versus non-accrual loans of $28.0 million, or 0.32 percent of total loans, at September 30, 2012 and $42.2 million, or 0.62 percent of total loans, at December 31, 2011. At the end of the 2012 fourth quarter, the ratio of allowance for loan losses to total loans was 1.10 percent, versus 1.18 percent at September 30, 2012 and 1.26 percent at December 31, 2011. Additionally, the ratio of allowance for loan losses to non-accrual loans, or the coverage ratio, was 395 percent for the 2012 fourth quarter versus 367 percent for the 2012 third quarter and 204 percent for the 2011 fourth quarter. Conference Call Signature Bank’s management will host a conference call to review results of the 2012 fourth quarter and year-end on Tuesday, January 22, 2013, 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 4588501. The replay will be available from approximately 12:00 PM ET on Tuesday, January 22, 2013 through 11:59 PM ET on Friday, January 25, 2013. About Signature Bank Signature Bank, member FDIC, is a New York-based full-service commercial bank with 26 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 26 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 (7) - 1225 Franklin Avenue, Garden City; 279 Sunrise Highway, Rockville Centre; 68 South Service Road, Melville; 923 Broadway, Woodmere; 40 Cuttermill Road, Great Neck; 100 Jericho Quadrangle, Jericho and 360 Motor Parkway, Hauppauge. 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 Twelve months ended December 31, December 31, (dollars in thousands, 2012 2011 2012 2011 except per share amounts) INTEREST AND DIVIDEND INCOME Loans held for sale $ 1,027 962 3,508 3,772 Loans and leases, net 116,785 90,908 417,837 333,395 Securities 49,685 57,849 216,974 223,129 available-for-sale Securities held-to-maturity 5,418 4,690 20,158 18,403 Other short-term investments 568 386 2,079 1,817 Total interest income 173,483 154,795 660,556 580,516 INTEREST EXPENSE Deposits 20,236 22,438 84,163 91,100 Federal funds purchased and securities sold under agreements to repurchase 4,977 5,722 22,132 22,324 Federal Home Loan Bank 1,127 1,368 4,455 7,305 advances Total interest expense 26,340 29,528 110,750 120,729 Net interest income before provision for loan and lease 147,143 125,267 549,806 459,787 losses Provision for loan and lease 10,388 14,581 41,427 51,876 losses Net interest income after provision for loan and lease 136,755 110,686 508,379 407,911 losses NON-INTEREST INCOME Commissions 1,934 2,186 8,210 9,058 Fees and service charges 3,952 3,571 15,503 15,022 Net gains on sales of 974 1,229 6,887 14,387 securities Net gains on sales of loans 2,610 807 9,273 4,054 Other-than-temporary impairment losses on securities: Total impairment losses on (2,115 ) (621 ) (11,593 ) (12,272 ) securities Portion recognized in other comprehensive income (before 1,590 280 8,520 10,183 taxes) Net impairment losses on securities recognized in (525 ) (341 ) (3,073 ) (2,089 ) earnings Net trading income 200 109 759 319 Other (loss) income (246 ) 341 (1,320 ) 1,287 Total non-interest income 8,899 7,902 36,239 42,038 NON-INTEREST EXPENSE Salaries and benefits 39,298 30,107 146,696 114,537 Occupancy and equipment 4,590 4,282 17,294 16,303 Other general and 14,216 12,742 54,253 51,884 administrative Total non-interest expense 58,104 47,131 218,243 182,724 Income before income taxes 87,550 71,457 326,375 267,225 Income tax expense 37,416 31,482 140,892 117,699 Net income $ 50,134 39,975 185,483 149,526 PER COMMON SHARE DATA Earnings per share – basic $ 1.07 0.87 3.98 3.43 Earnings per share – diluted $ 1.05 0.85 3.91 3.37 SIGNATURE BANK CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION December 31, December 31, 2012 2011 (dollars in thousands, except per share amounts) (unaudited) ASSETS Cash and due from banks $ 86,186 34,083 Short-term investments 7,779 6,071 Total cash and cash equivalents 93,965 40,154 Securities available-for-sale (pledged $2,467,409 and $2,672,093 at December 31, 2012 and 2011) 6,130,356 6,512,855 Securities held-to-maturity (fair value $755,469 and $571,980 at December 31, 2012 and 2011; pledged $543,351 and $352,865 at December 31, 2012 and 2011) 739,835 556,044 Federal Home Loan Bank stock 50,012 48,152 Loans held for sale 369,468 392,025 Loans and leases, net 9,664,337 6,764,564 Premises and equipment, net 32,192 30,574 Accrued interest and dividends receivable 64,367 60,533 Other assets 311,525 261,219 Total assets $ 17,456,057 14,666,120 LIABILITIES AND SHAREHOLDERS' EQUITY Deposits Non-interest-bearing 4,444,964 3,148,436 Interest-bearing 9,637,688 8,605,702 Total deposits 14,082,652 11,754,138 Federal funds purchased and securities sold under agreements to repurchase 995,000 750,800 Federal Home Loan Bank advances 590,000 675,000 Accrued expenses and other liabilities 138,078 78,066 Total liabilities 15,805,730 13,258,004 Shareholders’ equity Preferred stock, par value $.01 per share; 61,000,000 shares authorized; none issued at December 31, 2012 and 2011 - - Common stock, par value $.01 per share; 64,000,000 shares authorized; 47,230,266 and 46,181,890 shares issued and outstanding at December 31, 2012 and 2011 472 462 Additional paid-in capital 997,517 954,833 Retained earnings 608,511 423,032 Net unrealized gains on securities 43,827 29,789 available-for-sale, net of tax Total shareholders' equity 1,650,327 1,408,116 Total liabilities and shareholders' equity $ 17,456,057 14,666,120 SIGNATURE BANK FINANCIAL SUMMARY, CAPITAL RATIOS, ASSET QUALITY (unaudited) Three months ended Twelve months ended December 31, December 31, (dollars in thousands, except 2012 2011 2012 2011 ratios and per share amounts) PER COMMON SHARE Net income - $ 1.07 $ 0.87 $ 3.98 $ 3.43 basic Net income - $ 1.05 $ 0.85 $ 3.91 $ 3.37 diluted Average shares outstanding - 46,981 46,179 46,633 43,622 basic Average shares outstanding - 47,666 47,025 47,386 44,418 diluted Book value $ 34.94 $ 30.49 $ 34.94 $ 30.49 SELECTED FINANCIAL DATA Return on average 1.18 % 1.11 % 1.17 % 1.14 % total assets Return on average shareholders' 12.33 % 11.44 % 12.13 % 12.71 % equity Efficiency ratio 37.24 % 35.39 % 37.24 % 36.41 % (1) Efficiency ratio excluding net gains on sales of securities and net 37.34 % 35.63 % 37.48 % 37.33 % impairment losses on securities recognized in earnings (1) Yield on interest-earning 4.16 % 4.38 % 4.25 % 4.50 % assets Cost of deposits 0.69 % 0.91 % 0.78 % 1.01 % and borrowings Net interest 3.53 % 3.55 % 3.53 % 3.57 % 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. December 31, September 30, December 31, 2012 2012 2011 CAPITAL RATIOS Tangible common 9.45 % 9.63 % 9.60 % equity (2) Tier 1 leverage 9.51 % 9.60 % 9.67 % Tier 1 risk-based 15.32 % 16.15 % 17.08 % Total risk-based 16.35 % 17.23 % 18.17 % ASSET QUALITY Non-accrual loans $ 27,190 $ 28,026 $ 42,218 Allowance for loan and lease $ 107,433 $ 102,910 $ 86,162 losses Allowance for loan and lease 395.12 % 367.19 % 204.09 % losses to non-accrual loans Allowance for loan and lease 1.10 % 1.18 % 1.26 % losses to total loans Non-accrual loans 0.28 % 0.32 % 0.62 % to total loans Quarterly net charge-offs to 0.25 % 0.22 % 0.71 % 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 December 31, 2012 December 31, 2011 Interest Average Interest Average (dollars in Average Income/ Yield/ Average Income/ thousands) Balance Expense Rate Balance Expense Yield/ Rate INTEREST-EARNING ASSETS Short-term $ 130,075 109 0.33% 72,716 63 0.34% investments Investment 6,975,309 55,562 3.19% 6,967,068 62,862 3.61% securities Commercial loans, 8,795,051 112,747 5.10% 6,263,905 87,125 5.52% mortgages and leases Residential mortgages and 394,785 4,038 4.07% 389,313 3,783 3.86% consumer loans Loans held for sale 284,998 1,027 1.43% 324,304 962 1.18% Total interest-earning 16,580,218 173,483 4.16% 14,017,306 154,795 4.38% assets Non-interest-earning 341,926 263,009 assets Total assets $ 14,280,315 16,922,144 INTEREST-BEARING LIABILITIES Interest-bearing deposits NOW and interest-bearing 782,020 816 0.42% 627,638 789 0.50% demand Money market 8,143,132 15,942 0.78% 7,165,845 17,743 0.98% Time deposits 945,556 3,478 1.46% 906,100 3,906 1.71% Non-interest-bearing 4,105,937 - - 2,968,970 - - demand deposits Total deposits 13,976,645 20,236 0.58% 11,668,553 22,438 0.76% Borrowings 1,175,007 6,104 2.07% 1,166,630 7,090 2.41% Total deposits and 15,151,652 26,340 0.69% 12,835,183 29,528 0.91% borrowings Other non-interest-bearing liabilities and shareholders' 1,770,492 1,445,132 equity Total liabilities $ and shareholders' 16,922,144 14,280,315 equity OTHER DATA Net interest income / interest rate 147,143 3.47% 125,267 3.47% spread Net interest margin 3.53% 3.55% Ratio of average interest-earning assets to average interest-bearing 109.43% 109.21% liabilities SIGNATURE BANK NET INTEREST MARGIN ANALYSIS (unaudited) Twelve months ended Twelve months ended December 31, 2012 December 31, 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 $ 100,289 338 0.34 % 119,393 355 0.30 % investments Investment 7,114,310 238,873 3.36 % 6,455,877 242,994 3.76 % securities Commercial loans, 7,699,659 402,019 5.22 % 5,664,412 316,856 5.59 % mortgages and leases Residential mortgages and 384,659 15,818 4.11 % 388,455 16,539 4.26 % consumer loans Loans held for sale 257,709 3,508 1.36 % 261,647 3,772 1.44 % Total interest-earning 15,556,626 660,556 4.25 % 12,889,784 580,516 4.50 % assets Non-interest-earning 299,368 273,106 assets Total assets $ 15,855,994 13,162,890 INTEREST-BEARING LIABILITIES Interest-bearing deposits NOW and interest-bearing 705,604 3,145 0.45 % 632,804 3,269 0.52 % demand Money market 7,874,582 66,696 0.85 % 6,611,992 71,557 1.08 % Time deposits 925,267 14,322 1.55 % 916,992 16,274 1.77 % Non-interest-bearing 3,569,645 - - 2,702,236 - - demand deposits Total deposits 13,075,098 84,163 0.64 % 10,864,024 91,100 0.84 % Borrowings 1,161,784 26,587 2.29 % 1,073,430 29,629 2.76 % Total deposits and 14,236,882 110,750 0.78 % 11,937,454 120,729 1.01 % borrowings Other non-interest-bearing liabilities and shareholders' 1,619,112 1,225,436 equity Total liabilities and shareholders' $ 15,855,994 13,162,890 equity OTHER DATA Net interest income / interest rate 549,806 3.47 % 459,787 3.49 % spread Net interest margin 3.53 % 3.57 % Ratio of average interest-earning assets to average interest-bearing 109.27 % 107.98 % 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 Twelve months ended December 31, December 31, (dollars in thousands, 2012 2011 2012 2011 except per share amounts) Net income (as $ 50,134 39,975 $ 185,483 149,526 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 $ 50,134 39,975 $ 183,955 145,373 securities Diluted earnings per $ 1.05 0.85 $ 3.91 3.37 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 $ 1.05 0.85 $ 3.88 3.27 strip securities The following table reconciles net interest margin (as reported) to core net interest margin excluding loan prepayment penalty income: Three months ended Twelve months ended December 31, December 31, 2012 2011 2012 2011 Net interest margin (as 3.53 % 3.55 % 3.53 % 3.57 % reported) Margin contribution from loan (0.21 )% (0.09 )% (0.13 )% (0.08 )% prepayment penalty income Core net interest margin - 3.32 % 3.46 % 3.40 % 3.49 % excluding loan prepayment penalty income Contact: Signature Bank Investor Contact: Eric R. Howell, 646-822-1402 Chief Financial Officer email@example.com or Media Contact: Susan J. Lewis, 646-822-1825 firstname.lastname@example.org
Signature Bank Reports 2012 Fourth Quarter and Year-End Results
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