Signature Bank Reports 2012 Fourth Quarter and Year-End Results

  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
ehowell@signatureny.com
or
Media Contact:
Susan J. Lewis, 646-822-1825
slewis@signatureny.com