Signature Bank Reports 2013 First Quarter Results

  Signature Bank Reports 2013 First Quarter Results

  *Net Income for the 2013 First Quarter Reached a Record $50.6 Million, or
    $1.06 Diluted Earnings Per Share, An Increase of $8.3 Million, or 19.5
    Percent, from $42.4 Million, or $0.90 Diluted Earnings Per Share, Reported
    in the 2012 First Quarter
  *Total Deposits in the First Quarter Grew $717.9 Million to $14.8 Billion,
    Including Core Deposit Growth of $582.2 Million; Total Deposits Have Grown
    $2.3 Billion, or 18.4 Percent, Since the End of the 2012 First Quarter
  *Average Deposits Increased $607.2 Million, or 4.3 Percent, in the 2013
    First Quarter
  *For the 2013 First Quarter, Loans Increased $592.7 Million, or 6.1
    Percent, to $10.36 Billion
  *Non-Accrual Loans were $35.1 Million, or 0.34 Percent of Total Loans, at
    March 31, 2013, Versus $27.2 Million, or 0.28 Percent, at the End of the
    2012 Fourth Quarter and $35.5 Million, or 0.48 Percent, at the End of the
    2012 First Quarter
  *Net Interest Margin Decreased 10 Basis Points to 3.43 Percent, Compared
    with 3.53 Percent for the 2012 Fourth Quarter and 3.50 Percent for the
    2012 First Quarter. The Linked-Quarter Decline Was Primarily Due to a
    Decrease in Loan Prepayment Penalty Income of $3.2 Million, or 8 Basis
    Points in Margin
  *Core Net Interest Margin Excluding Loan Prepayment Penalty Income
    Decreased Two Basis Points to 3.30 Percent, Compared with 3.32 Percent for
    the 2012 Fourth Quarter
  *Tier 1 Leverage, Tier 1 Risk-Based and Total Risk-Based Capital Ratios
    were 9.31 Percent, 15.21 Percent and 16.26 Percent, Respectively, at March
    31, 2013. Signature Bank Remains Significantly Above FDIC “Well
    Capitalized” Standards. Tangible Common Equity Ratio was 9.39 Percent
  *Three Private Client Banking Teams Joined During the 2013 First Quarter
    and One Team Joined Thus Far in the 2013 Second Quarter

Business Wire

NEW YORK -- April 23, 2013

Signature Bank (Nasdaq: SBNY), a New York-based full-service commercial bank,
today announced results for its first quarter ended March 31, 2013.

Net income for the 2013 first quarter reached a record $50.6 million, or $1.06
diluted earnings per share, versus $42.4 million, or $0.90 diluted earnings
per share, for the 2012 first quarter. The record net income for the 2013
first quarter, versus the comparable quarter last year, is primarily due to an
increase in net interest income, fueled by strong deposit and loan growth.
These factors were partially offset by an increase in non-interest expenses.

Net interest income for the 2013 first quarter reached $148.1 million, up
$21.3 million, or 16.8 percent, when compared with the 2012 first quarter.
This increase is primarily due to growth in average interest-earning assets.
Total assets reached $18.27 billion at March 31, 2013, an increase of $2.99
billion, or 19.5 percent, from $15.28 billion at March 31, 2012. Average
assets for the 2013 first quarter reached $17.83 billion, an increase of $2.99
billion, or 20.1 percent, compared with the 2012 first quarter.

Deposits for the 2013 first quarter rose $717.9 million, or 5.1 percent, to
$14.8 billion at March 31, 2013. When compared with deposits at March 31,
2012, overall deposit growth for the last twelve months was 18.4 percent, or
$2.3 billion. Excluding short-term escrow deposits of $978.2 million and
brokered deposits of $152.3 million at the end of the 2013 first quarter and
$886.3 million and $108.5 million, respectively, at year-end 2012, core
deposits increased a $582.2 million for the quarter. Average deposits for the
2013 first quarter reached $14.58 billion, an increase of $607.2 million, or
4.3 percent.

“2013 kicked off with another solid quarter of continued strong deposit and
loan growth culminating in our 14^th consecutive quarter of record earnings.
The quarter also saw further transformation of our well-capitalized balance
sheet, with loans now reaching 56.7 percent of total assets. Moreover, we are
excited to have attracted four private client banking teams already this year
to our growing network of high-quality, talented banking professionals. These
additions speak volumes to the Bank’s status as the bank-of-choice for
talented bankers across the New York metropolitan area seeking a platform to
provide the best in client service. We look forward to the contributions these
new teams will make as well as the further advancement of our existing banking
groups,” noted Joseph J. DePaolo, President and Chief Executive Officer.

Scott A. Shay, Chairman of the Board, added: "We are already seeing that 2013
will be another year full of challenges for the financial services industry as
institutions attempt to cope with the low interest rates maintained by Federal
Reserve policy and continued sluggish economic growth. As our competitors
remain pressed on both sides of their balance sheets and try to mitigate these
pressures by curtailing personalized service and relationships, we believe our
traditional approach and client-first focus puts us in good stead.
Concurrently, our clients value our conservative, transparent balance sheet,
allowing them to sleep at night. We pledge to maintain our fortress like
balance sheet to best meet the needs of our clients.”

Capital

The Bank’s Tier 1 leverage, Tier 1 risk-based, and total risk-based capital
ratios were approximately 9.31 percent, 15.21 percent and 16.26 percent,
respectively, as of March 31, 2013. 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 9.39 percent. The Bank defines
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 2013 first quarter was $148.1 million, an increase
of $21.3 million, or 16.8 percent, versus the same period last year, primarily
due to growth in average interest-earning assets. Average interest-earning
assets of $17.51 billion for the 2013 first quarter represent an increase of
$2.94 billion, or 20.1 percent, from the 2012 first quarter. Yield on
interest-earning assets for the 2013 first quarter decreased 28 basis points,
to 4.02 percent, compared with the 2012 first quarter. This decrease was
primarily attributable to prolonged low interest rates.

Average cost of deposits and average cost of funds for the first quarter of
2013 decreased by 18 and 23 basis points, respectively, versus the 2012 first
quarter to 0.54 percent and 0.64 percent. These decreases were predominantly
due to prolonged low interest rates.

Net interest margin for the 2013 first quarter was 3.43 percent versus 3.50
percent reported in the same period a year ago. On a linked quarter basis, net
interest margin decreased 10 basis points. The linked quarter decrease was
primarily due to a decline of $3.2 million in loan prepayment penalty income
which impacted net interest margin by 8 basis points. Excluding loan
prepayment penalties in both quarters, linked quarter core margin declined two
basis points to 3.30 percent.

Provision for Loan Losses

The Bank’s provision for loan losses for the first quarter of 2013 was $9.9
million, a decrease of $738,000, or 6.9 percent, compared with the 2012 first
quarter. The decrease was largely due to a decrease in net charge-offs of
$500,000.

Net charge-offs for the 2013 first quarter were $4.5 million, or 0.18 percent
of average loans on an annualized basis, versus $5.9 million, or 0.25 percent,
for the 2012 fourth quarter and $5.0 million, or 0.29 percent, for the 2012
first quarter.

Non-Interest Income and Non-Interest Expense

Non-interest income for the 2013 first quarter was $8.8 million, down $278,000
when compared with $9.1 million reported in the 2012 first quarter. The
decrease was driven by a $1.3 million decline in other income (loss) primarily
due to the amortization of low income housing tax credit investments. This
decrease was partially offset by an increase of $1.1 million in net gains on
sales of loans predominantly from our SBA pool assembly business.

Non-interest expense for the first quarter of 2013 was $58.9 million, an
increase of $8.6 million, or 17.0 percent, versus $50.4 million reported in
the 2012 first quarter. The increase was primarily a result of the addition of
new private client banking teams and the hiring of over 50 professionals for
Signature Financial.

The Bank’s efficiency ratio increased to 37.6 percent for the 2013 first
quarter versus 37.1 percent for the comparable period last year. The increase
was primarily due to the hiring for Signature Financial.

Loans

Loans, excluding loans held for sale, grew $592.7 million, or 6.1 percent,
during the first quarter of 2013 to $10.36 billion, compared with $9.77
billion at December 31, 2012. As noted last quarter, due to the anticipated
increase in the 2013 capital gains tax, approximately $184 million in loans
that would have closed in the 2013 first quarter actually closed in the 2012
fourth quarter. At March 31, 2013, loans accounted for 56.7 percent of total
assets, versus 56.0 percent at the end of the 2012 fourth quarter and 48.2
percent at the end of 2012 first quarter. Average loans, excluding loans held
for sale, reached $10.06 billion in the 2013 first quarter, growing $865.5
million, or 9.4 percent, from the 2012 fourth quarter and $3.0 billion, or
42.4 percent, from the 2012 first 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 March 31, 2013, non-accrual loans were $35.1 million, representing 0.34
percent of total loans and 0.19 percent of total assets, compared with
non-accrual loans of $27.2 million, or 0.28 percent of total loans, at
December 31, 2012 and $35.5 million, or 0.48 percent of total loans, at March
31, 2012. At March 31, 2013, the ratio of allowance for loan and lease losses
to total loans was 1.09 percent, versus 1.10 percent at December 31, 2012 and
1.25 percent at March 31, 2012. Additionally, the ratio of allowance for loan
and lease losses to non-accrual loans, or the coverage ratio, was 322 percent
for the 2013 first quarter versus 395 percent for the fourth quarter of 2012
and 259 percent for the 2012 first quarter.

Conference Call

Signature Bank’s management will host a conference call to review results of
the 2013 first quarter on Tuesday, April 23, 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 4612827 The replay
will be available from approximately 12:00 PM ET on Tuesday, April 23, 2013
through 11:59 PM ET on Friday, April 26, 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 March 31,
(dollars in thousands, except per share          2013             2012
amounts)
INTEREST AND DIVIDEND INCOME
Loans held for sale                               $  916            778
Loans and leases, net                                117,629        92,294
Securities available-for-sale                        48,575         57,349
Securities held-to-maturity                          5,919          4,792
Other short-term investments                       592          487      
Total interest income                              173,631      155,700  
INTEREST EXPENSE
Deposits                                             19,453         21,889
Federal funds purchased and securities sold
under
agreements to repurchase                             4,885          5,852
Federal Home Loan Bank advances                    1,185        1,156    
Total interest expense                             25,523       28,897   
Net interest income before provision for loan        148,108        126,803
and lease losses
Provision for loan and lease losses                9,926        10,664   
Net interest income after provision for loan       138,182      116,139  
and lease losses
NON-INTEREST INCOME
Commissions                                          2,199          2,369
Fees and service charges                             3,998          3,706
Net gains on sales of securities                     1,528          1,432
Net gains on sales of loans                          2,518          1,421
Other-than-temporary impairment losses on
securities:
Total impairment losses on securities                (1,679   )     (5,214   )
Portion recognized in other comprehensive           407          4,500    
income (before taxes)
Net impairment losses on securities recognized       (1,272   )     (714     )
in earnings
Net trading income (loss)                            225            (20      )
Other (loss) income                                (360     )    920      
Total non-interest income                          8,836        9,114    
NON-INTEREST EXPENSE
Salaries and benefits                                39,263         33,024
Occupancy and equipment                              4,752          4,386
Other general and administrative                   14,916       12,941   
Total non-interest expense                         58,931       50,351   
Income before income taxes                           88,087         74,902
Income tax expense                                 37,454       32,533   
Net income                                       $  50,633       42,369   
PER COMMON SHARE DATA
Earnings per share – basic                        $  1.07           0.92
Earnings per share – diluted                      $  1.06           0.90
                                                                             

SIGNATURE BANK                                                 
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                                                                  
                                                                  
                                                   March 31,      December 31,
                                                   2013           2012
(dollars in thousands, except per share amounts)  (unaudited)   
ASSETS
Cash and due from banks                            $ 83,324       86,186
Short-term investments                             13,014      7,779
Total cash and cash equivalents                    96,338      93,965
Securities available-for-sale (pledged
$2,573,209 at March 31, 2013
and $2,467,409 at December 31, 2012)                 6,222,551    6,130,356
Securities held-to-maturity (fair value $816,671
at March 31, 2013
and $755,469 at December 31, 2012; pledged
$594,834 at
March 31, 2013 and $543,351 at December 31,          801,700      739,835
2012)
Federal Home Loan Bank stock                         50,469       50,012
Loans held for sale                                  452,346      369,468
Loans and leases, net                                10,251,619   9,664,337
Premises and equipment, net                          34,956       32,192
Accrued interest and dividends receivable            65,769       64,367
Other assets                                       290,896     311,525
Total assets                                      $ 18,266,644  17,456,057
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Non-interest-bearing                                 4,341,439    4,444,964
Interest-bearing                                   10,459,125  9,637,688
Total deposits                                     14,800,564  14,082,652
Federal funds purchased and securities sold
under agreements
to repurchase                                        977,000      995,000
Federal Home Loan Bank advances                      600,163      590,000
Accrued expenses and other liabilities             173,936     138,078
Total liabilities                                  16,551,663  15,805,730
Shareholders’ equity
Preferred stock, par value $.01 per share;
61,000,000 shares authorized;
none issued at March 31, 2013 and December 31,
2012
Common stock, par value $.01 per share;              -            -
64,000,000 shares authorized;
47,259,301 and 47,230,266 shares issued and
outstanding
at March 31, 2013 and December 31, 2012              473          472
Additional paid-in capital                           998,166      997,517
Retained earnings                                    659,144      608,511
Net unrealized gains on securities                 57,198      43,827
available-for-sale, net of tax
Total shareholders' equity                         1,714,981   1,650,327
Total liabilities and shareholders' equity        $ 18,266,644  17,456,057
                                                                  

 SIGNATURE BANK                                                
  FINANCIAL SUMMARY, CAPITAL RATIOS,
  ASSET QUALITY
  (unaudited)
                                                                    
                                        Three months ended
  (dollars in thousands, except        March 31,   December 31,  March 31,
  ratios and per share amounts)         2013         2012           2012
  PER COMMON SHARE
  Net income - basic                    $ 1.07       $  1.07        $ 0.92
  Net income - diluted                  $ 1.06       $  1.05        $ 0.90
  Average shares outstanding - basic      47,249        46,981        46,205
  Average shares outstanding -            47,877        47,666        47,051
  diluted
  Book value                            $ 36.29      $  34.94       $ 31.54
                                                                    
  SELECTED FINANCIAL DATA
  Return on average total assets          1.15   %      1.18    %     1.15   %
  Return on average shareholders'         12.20  %      12.33   %     11.87  %
  equity
  Efficiency ratio (1)                    37.55  %      37.24   %     37.05  %
  Efficiency ratio excluding net
  gains on sales of securities

  and net impairment losses on           37.61  %      37.34   %     37.24  %
  securities recognized

  in earnings (1)
  Yield on interest-earning assets        4.02   %      4.16    %     4.30   %
  Cost of deposits and borrowings         0.64   %      0.69    %     0.87   %
  Net interest margin                     3.43   %      3.53    %     3.50   %

      The efficiency ratio is calculated by dividing non-interest expense by
(1)  the sum of net interest income before provision for loan and lease
      losses and non-interest income.
      

                                    March 31,    December 31,  March 31,
                                       2013          2012           2012
  CAPITAL RATIOS                                                
  Tangible common equity (2)             9.39    %      9.45    %     9.58   %
  Tier 1 leverage                        9.31    %      9.51    %     9.62   %
  Tier 1 risk-based                      15.21   %      15.32   %     16.86  %
  Total risk-based                       16.26   %      16.35   %     17.96  %
                                                                    
  ASSET QUALITY
  Non-accrual loans                    $ 35,066      $  27,190      $ 35,492
  Allowance for loan and lease         $ 112,815     $  107,433     $ 91,786
  losses
  Allowance for loan and lease           321.72  %      395.12  %     258.61 %
  losses to non-accrual loans
  Allowance for loan and lease           1.09    %      1.10    %     1.25   %
  losses to total loans
  Non-accrual loans to total loans       0.34    %      0.28    %     0.48   %
  Quarterly net charge-offs to           0.18    %      0.25    %     0.29   %
  average loans (annualized)

      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
(2)  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
                       March 31, 2013                       March 31, 2012
(dollars in            Average        Interest   Average    Average      Interest   Average
thousands)            Balance       Income/   Yield/    Balance     Income/   Yield/
                                      Expense    Rate                    Expense    Rate
INTEREST-EARNING
ASSETS
Short-term             $ 116,640      101        0.35   %   91,049       75         0.33   %
investments
Investment               7,064,782    54,985     3.11   %   7,158,136    62,553     3.50   %
securities
Commercial loans,        9,668,010    113,823    4.77   %   6,678,839    88,310     5.32   %
mortgages and leases
Residential
mortgages and            387,342      3,806      3.98   %   381,312      3,984      4.20   %
consumer loans
Loans held for sale    274,301     916       1.35   %  265,929     778       1.18   %
Total
interest-earning       17,511,075  173,631   4.02   %  14,575,265  155,700   4.30   %
assets
Non-interest-earning   320,616                       271,225              
assets
Total assets          $ 17,831,691                    14,846,490           
INTEREST-BEARING
LIABILITIES
Interest-bearing
deposits
NOW and
interest-bearing         766,901      765        0.40   %   658,742      776        0.47   %
demand
Money market             8,470,511    15,391     0.74   %   7,497,906    17,445     0.94   %
Time deposits            981,532      3,297      1.36   %   891,494      3,668      1.65   %
Non-interest-bearing   4,364,853   -         -        3,198,843   -         -      
demand deposits
Total deposits         14,583,797  19,453    0.54   %  12,246,985  21,889    0.72   %
Borrowings             1,466,158   6,070     1.68   %  1,107,780   7,008     2.54   %
Total deposits and     16,049,955  25,523    0.64   %  13,354,765  28,897    0.87   %
borrowings
Other
non-interest-bearing
liabilities
and shareholders'      1,781,736                     1,491,725            
equity
Total liabilities
and shareholders'     $ 17,831,691                    14,846,490           
equity
OTHER DATA
Net interest income
/ interest rate                    148,108   3.38   %             126,803   3.43   %
spread
Net interest margin                         3.43   %                      3.50   %
Ratio of average
interest-earning
assets
to average
interest-bearing                            109.10 %                      109.14 %
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
and (ii) 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 reconciles net interest margin (as reported) to core net
interest margin excluding loan prepayment penalty income:


                                                Three months ended March 31,
                                               2013            2012
Net interest margin (as reported)                 3.43    %       3.50    %
Margin contribution from loan prepayment         (0.13   )%      (0.06   )%
penalty income
Core net interest margin - excluding loan        3.30    %       3.44    %
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