Signature Bank
Jul 26, 2007

Signature Bank Reports 2007 Second Quarter Results

NEW YORK ... July 26, 2007 ... Signature Bank (Nasdaq: SBNY), a New York-based full-service commercial bank, today announced results for its 2007 second quarter ended June 30, 2007.

Net income for the quarter increased to $10.2 million or $0.34 diluted earnings per share, up 24.3 percent when compared with $8.2 million or $0.28 diluted earnings per share reported in the 2006 second quarter. The growth in net income is primarily attributable to expanding net interest margins resulting from across the board increases in core deposits, short-term escrow deposits and loans.

Net interest income totaled $36.8 million for the quarter, an increase of $7.2 million or 24.3 percent from the same period last year. Total assets reached $5.71 billion, representing a $1.01 billion increase or 21.4 percent over the $4.7 billion reported at the end of the 2006 second quarter.

Deposits for the second quarter increased $539.9 million, totaling $4.51 billion at June 30, 2007. This includes core deposit growth of $160.4 million, coupled with an increase of $379.6 million in short-term escrow deposits. Excluding short-term escrow deposits of $550.3 million at December 31, 2006 and $501.6 million at June 30, 2007, core deposits increased $344.7 million in the first six months of 2007. When compared with deposits at June 30, 2006, the overall deposit growth represents an increase of $792.3 million or 21.3 percent.

"Our story remains consistent and positive. Each quarter we have delivered deposit, loan and earnings growth by sticking to our core philosophy - offering privately owned businesses that are often underserved by today's mega banks a single point of contact to meet all their needs," noted Joseph J. DePaolo, President and Chief Executive Officer.

"We continue to carefully implement our focused strategy and carry out our plan while the industry faces uncertainty. The changing industry and rapid consolidation simply creates opportunity for us by strengthening our ability to attract top bankers and high-quality clients. Since the beginning of this year, a total of five teams joined the Bank. Bankers are fast-recognizing that mega-banks no longer offer an appropriate platform for personally serving clients. At Signature Bank, we afford bankers the autonomy and freedom necessary to cultivate and maintain long-lasting client relationships. As bankers understand our structure, they are actually the ones spreading the word about Signature Bank, which is helping us to quickly expand our network and client base," DePaolo concluded.

Scott A. Shay, Chairman of the Board, added: "We have carefully calibrated our asset liability management in this challenging yield curve environment to expand our net interest margin. Our commitment to staying focused on the successful execution of our business plan is clearly paying off, as evidenced by the impact of our bankers' efforts on our financial performance, and the steady, solid results we deliver with each passing quarter."

Net Interest Income

Net interest income for the second quarter 2007 was $36.8 million, an increase of $7.2 million, or 24.3 percent, from the same quarter a year ago. Average interest-earning assets for the second quarter of 2007 increased $771.7 million, which reflects an 18.3 percent increase from the second quarter 2006. Asset yields for the second quarter of 2007 grew 51 basis points to 5.91 percent, versus the second quarter of 2006, due to higher short-term rates, more favorable market conditions and an increase in loans as a percentage of average interest-earning assets. Average cost of funds and deposits for the 2007 second quarter increased by 38 and 44 basis points to 3.05 and 2.73 percent, respectively, versus the comparable quarter last year. The increase in the cost of funds and deposits is reflective of the competitive marketplace.

The net interest margin for the second quarter of 2007 rose 14 basis points to 2.95 percent, compared with the same period last year. On a linked quarter basis, net interest margin grew 12 basis points. This increase largely reflects the benefits of the increase in short-term escrows received during the latter portion of the quarter. Excluding the effects of the short-term escrow deposits, core net interest margin increased approximately four basis points from the linked quarter. This core margin expansion was driven by the benefits from the continued improvement in the average loan to average earning asset mix as well as the growth in core deposits.

Non-Interest Income and Non-Interest Expense

Non-interest income for the 2007 second quarter was $7.4 million, an increase of $2.3 million or 45.1 percent, versus $5.1 million reported in the comparable period last year. This was largely the result of commissions associated with off-balance sheet escrow deposits as well as an increase in fees and service charges related to client expansion.

Non-interest expense for the second quarter of 2007 was $25.1 million, compared with $19.3 million reported for the 2006 second quarter. This increase was primarily due to the addition of new private client banking teams and locations as well as increased growth in client activity, including the operating expense associated with short-term escrow deposits.

The Bank's efficiency ratio was at 56.8 percent for second quarter 2007, versus 55.7 percent for the 2006 second quarter, up slightly due to the growth in salaries and benefits arising from the addition of new private client banking teams. On a linked quarter basis, the Bank's efficiency ratio improved to 56.8 percent from 57.5 percent.

Loans

During the 2007 second quarter, loans, excluding loans held for sale, increased $122.4 million or 7.4 percent to $1.79 billion at June 30, 2007, compared with $1.67 billion at March 31, 2007. At June 30, 2007, loans to total assets were at 31.3 percent, versus 32.1 percent at the end of the 2007 first quarter. The decrease is due to the significant rise in total assets, driven by the increase in short-term escrow deposits for the 2007 second quarter. Average loans, excluding loans held for sale, for the 2007 second quarter increased $137.7 million, or 8.6 percent, to $1.74 billion.

Loans held for sale were $138.5 million as of June 30, 2007, a decrease of $14.2 million or 9.3 percent from March 31, 2007. Periodic fluctuations of loans held for sale are predominantly due to the timing of SBA loan purchases and subsequent pool sales.

At June 30, 2007, non-performing loans decreased to $2.6 million from $5.7 million at March 31, 2007, representing 0.14 percent of total loans. A previously reported non-performing loan was charged off in the amount of $3.4 million. At June 30, 2007, the allowance for loan losses to total loans was at 0.68 percent and the allowance for loan losses to total non-performing loans was 478.8 percent.

Capital

Signature Bank's capital ratios remain strong. The Bank's tier 1 risk-based, total risk-based and leverage capital ratios were approximately 15.43 percent, 15.86 percent and 8.21 percent, respectively, as of June 30, 2007, well in excess of regulatory requirements. The ratios reflect the relatively low risk profile of the balance sheet.

Conference Call

Signature Bank's management will host a conference call to review results of the 2007 second quarter on Thursday, July 26, 2007, at 10:00 AM ET. Participants should dial 800-257-3401 at least ten minutes prior to the start of the call. International callers should dial 303-262-2141.

To hear a live web simulcast or to listen to the archived web cast following completion of the call, please visit the Bank's web site 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 303-590-3000 and enter reservation identification number 11093190. The replay will be available from approximately 12:00 PM ET on Thursday, July 26, 2007, through 11:59 PM ET on Tuesday, July 31, 2007.

About Signature Bank

Signature Bank, member FDIC, is a New York-based full-service commercial bank with 19 private client offices located in the New York metropolitan area, serving the needs of privately owned businesses, their owners and senior managers through dozens of private client groups. The Bank offers a wide variety of business and personal banking products and services as well as investment, brokerage, asset management and insurance products and services through its subsidiary, Signature Securities Group Corporation, a licensed broker-dealer, investment adviser and member NASD/SIPC.

Signature Bank's 19 offices are located throughout the metropolitan New York area. In Manhattan - 261 Madison Avenue; 300 Park Avenue; 71 Broadway; 565 Fifth Avenue; 950 Third Avenue; 200 Park Avenue South and 1020 Madison Avenue. Brooklyn - 26 Court Street and 84 Broadway. Westchester - 1C Quaker Ridge Road, New Rochelle and 360 Hamilton Avenue, White Plains. Long Island - 1225 Franklin Avenue, Garden City; 279 Sunrise Highway, Rockville Centre; 58 South Service Road, Melville; 923 Broadway, Woodmere and 40 Cuttermill Road in Great Neck. Queens - 36-36 33rd Street, Long Island City and 78-27 37th Avenue, Jackson Heights. Bronx - 421 Hunts Point Avenue, Bronx.

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. Forward-looking statements include information concerning our future results, interest rates, loan and deposit growth, operations, new private client team hires, new office openings and business strategy. These statements often include words such as "may," "believe," "expect," "anticipate," "intend," "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, which can materially affect origination levels and gain on sale results in our business, as well as other aspects of our financial performance; (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; and (iv) competition for qualified personnel and desirable office locations. 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.









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