Signature Bank
Oct 30, 2008

Signature Bank Reports 2008 Third Quarter Results

NEW YORK ... OCTOBER 30, 2008 ... Signature Bank (Nasdaq: SBNY), a New York-based full-service commercial bank, today announced results for its 2008 third quarter ended September 30, 2008.

Net income for the quarter was $9.2 million, or $0.29 diluted earnings per share, compared with net income of $10.7 million, or $0.36 diluted earnings per share, for the 2007 third quarter. The 2008 third quarter results include an $8.0 million other than temporary impairment write-down on a single Lehman Brothers senior debenture. Excluding the after-tax effect of the impairment write-down on this debenture, net income for the quarter would have been $13.6 million, or $0.44 diluted earnings per share.

The growth in net income for the quarter when compared to the 2007 third quarter is attributable to several factors, including an increase in loans as a percentage of assets, deposit growth, net interest margin expansion and increased non-interest income (excluding the securities write-down). These factors were partially offset by an increase in the provision for loan losses.

Net interest income for the third quarter of 2008 reached $50.1 million, up $11.9 million, or 31.0 percent, over the same period last year. Total assets reached $6.70 billion at September 30, 2008, an increase of $1.09 billion, or 19.3 percent, when compared with $5.61 billion at the end of the 2007 third quarter.
Deposits grew $99.2 million in the 2008 third quarter to $4.97 billion at September 30, 2008. This includes core deposit growth of $141.0 million and a decrease of $41.8 million in short-term escrow deposits. Deposits for the year have increased $453.4 million, or 10.0 percent, when compared to deposits at December 31, 2007.

"Despite the unprecedented events occurring of late, Signature Bank again realized strong results across our key metrics. During the 2008 third quarter, we grew deposits, loans, margins and core earnings. In keeping with Signature Bank's unwavering commitment to its depositors, we further strengthened our already strong capital position with the successful completion of a $148.0 million public offering of common stock during the third quarter to facilitate our future growth," said Joseph J. DePaolo, Signature Bank's President and Chief Executive Officer.

"Because of our prudent capital management and the well diversified portfolio we have built over the years, our exposure has been limited during this turbulent time, particularly when compared with the situation that many other financial institutions now face. We are encouraged that our clients, both old and new, continue to recognize Signature Bank as a safe place to deposit their funds," DePaolo explained.

Scott A. Shay, Chairman of the Board, remarked about the Bank's financial strength: "It is important to emphasize that Signature Bank was, in fact, in a strong capital position prior to the completion of our public offering in September 2008. The $148.0 million raised exceeded our goals, and clearly demonstrates the investment community's confidence in our bank's model, strategy and ability to deliver. Maintaining a strong balance sheet for our depositors has always been the first principle of the Bank's financial health and well being, and has led us to sustain our financially sound position in spite of economic downturns. As a very well capitalized bank, with an exceptionally strong balance sheet, we believe we are well positioned to take advantage of opportunities in this current environment to expand our presence in the metropolitan New York area."

Net Interest Income
Net interest income on a tax-equivalent basis for the 2008 third quarter was $50.1 million, an increase of $11.9 million, or 31.0 percent, from the comparable period a year ago. Average interest-earning assets for the 2008 third quarter increased $908.3 million, up 17.4 percent from the 2007 third quarter. Asset yields for the 2008 third quarter decreased 60 basis points, to 5.32 percent, compared with the third quarter of 2007. The decrease was primarily due to lower prevailing interest rates.

Average costs of deposits and average costs of funds for the 2008 third quarter decreased by 114 and 99 basis points to 1.71 and 2.12 percent, respectively, compared to last year's third quarter. These decreases are predominantly due to lower prevailing interest rates.

Net interest income on a tax-equivalent basis for the nine-month period ended September 30, 2008 was $136.4 million, up $27.7 million, or 25.4 percent, from the same period last year.

The net interest margin on a tax-equivalent basis for 2008 third quarter increased 35 basis points to 3.26 percent when compared with the same period last year. On a linked quarter basis, net interest margin on a tax-equivalent basis grew 12 basis points. The linked quarter expansion was primarily driven by an 11 basis point expansion in the average asset yield predominantly due to an increase in loans as a percentage of assets. Additionally, the cost of funds remained stable at 2.12 percent given the two basis point reduction in our cost of deposits for the quarter.

Non-Interest Income and Non-Interest Expense
Non-interest income for the third quarter of 2008 was $3.7 million, a decrease of $3.8 million when compared with $7.5 million reported in the 2007 third quarter. For the first nine months of 2008, non-interest income was $23.3 million versus $21.7 million reported last year, representing an increase of $1.6 million. The decline for the quarter was the result of an $8.0 million other than temporary impairment write-down on a single $10.0 million Lehman Brothers senior debenture, which was reflected in 2008 third quarter earnings. The decrease was partially offset by an increase in commissions of $1.6 million, or 49.0 percent, associated with off-balance sheet escrow deposits and increased brokerage activities. Additionally, net gains on sales of securities and loans increased $2.2 million predominantly attributable to gains on sales of investment securities. Excluding the effect of the other than temporary impairment write-down, non-interest income for the 2008 third quarter would have been $11.7 million, an increase of 55.9 percent from the third quarter of last year.
Non-interest expense for the third quarter of 2008 was $32.8 million versus $25.5 million reported in the 2007 third quarter. The $7.2 million, or 28.2 percent, increase was mostly due to the addition of new private client banking teams and offices.

The Bank's efficiency ratio was 60.9 percent for the 2008 third quarter and 53.0 percent after excluding the impairment write-down versus 55.9 percent for the comparable period a year ago. This improvement was primarily due to growth in net interest income and an increase in non-interest income, excluding the impairment write-down.

Loans
Loans, excluding loans held for sale, rose $377.4 million, or 13.9 percent, in the 2008 third quarter to $3.08 billion at September 30, 2008, versus $2.71 billion at June 30, 2008. At September 30, 2008, loans were 46.0 percent of total assets, compared with 42.5 percent at the end of the second quarter of 2008. Average loans, excluding loans held for sale, reached $2.88 billion, up $458.5 million, or 18.9 percent, from June 30, 2008. The significant increase in loans for the quarter was driven by growth in commercial real estate and multi-family loans.

At September 30, 2008, non-performing loans were $30.8 million, representing 1.0 percent of total loans and 0.5 percent of total assets, compared to non-performing loans of $29.1 million, or 1.1 percent of total loans, at June 30, 2008. At the end of the 2008 third quarter, the ratio of allowance for loan losses to total loans was at 1.00 percent, compared with 1.03 percent at June 30, 2008 and 0.72 percent at September 30, 2007. The non-performing loan balance at September 30, 2008 was predominantly comprised of three loans. The Bank incurred a partial write off of $2.0 million on one of the three loans during the quarter. In October, the remaining $3.0 million of this loan was satisfied, as the Bank received cash of $2.0 million and a $1.0 million note receivable from a new borrower.

Capital
Signature Bank's already strong capital ratios were further strengthened by the public offering of $148.0 million of common stock during the quarter. The Bank's tier 1 risk-based, total risk-based and leverage capital ratios were approximately 15.35 percent, 16.11 percent and 9.64 percent, respectively, as of September 30, 2008, well in excess of regulatory requirements. The ratios reflect the relatively low risk profile of the balance sheet.
Signature Bank recently submitted an application for participation in the TARP voluntary Capital Purchase Program with its primary regulator, the FDIC. The application was for an amount equal to 3.0 percent of risk-weighted assets, or approximately $120.0 million. It is anticipated that the Bank's application will be approved shortly by the Treasury and, upon approval, Signature Bank will provide further information.

Conference Call
Signature Bank's management will host a conference call to review results of the 2008 third quarter on Thursday, October 30, 2008, at 10:00 AM ET. All participants should dial 303-262-2053 at least ten minutes prior to the start of the call.
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 11121513. The replay will be available from approximately 12:00 PM ET on Thursday, October 30, 2008, through 11:59 PM ET on Tuesday, November 4, 2008.

About Signature Bank
Signature Bank, member FDIC, is a New York-based full-service commercial bank with 21 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 21 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; 84 Broadway and 6321 New Utrecht Avenue. 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; 40 Cuttermill Road, Great Neck and 100 Jericho Quadrangle, Jericho. 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 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," "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) recent failures in the global credit markets and potential for increased regulation of financial institutions thereof; (iii) 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; (iv) 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 (v) 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