Signature Bank
Jul 28, 2009

Signature Bank Reports 2009 Second Quarter Results

NEW YORK ... July 28, 2009 ... Signature Bank (Nasdaq: SBNY), a New York-based full-service commercial bank, today announced results for its 2009 second quarter ended June 30, 2009.

Net income for the 2009 second quarter reached $12.0 million, or $0.32 diluted earnings per share, compared with $10.9 million, or $0.36 diluted earnings per share, for the 2008 second quarter. Excluding the after tax effect of the FDIC Special Assessment of $3.5 million, net income for the quarter was $13.9 million, or $0.38 diluted earnings per share, an increase of 28.5 percent.

The increase in second quarter net income is attributable to various factors, including record core deposit growth, solid loan growth, and net interest margin expansion. These factors were partially offset by increases in non-interest expense, including the FDIC special assessment, and the provision for loan losses.

Net interest income for the 2009 second quarter was $60.5 million, an increase of $15.5 million, or 34.4 percent, when compared with the comparable period a year ago. Total assets were $7.88 billion at June 30, 2009, growing $689.0 million, or 9.6 percent, when compared with $7.19 billion at December 31, 2008. Average assets for the second quarter of 2009 were $7.51 billion, an increase of $1.40 billion, or 22.8 percent, from the second quarter of 2008.

Deposits during the second quarter of 2009 grew $266.8 million, or 4.6 percent, to $6.10 billion at June 30, 2009. Core deposits increased $470.0 million, or 8.8 percent along with decreases of $151.8 million in short-term escrow deposits and $51.4 million in brokered deposits. When compared with deposits at December 31, 2008, the overall deposit growth during the past six months represents an increase of $715.1 million, or 13.3 percent. Core deposits grew $784.3 million, or 15.6 percent, during the six months ended June 30, 2009.

"This quarter was highlighted by several achievements, most notably our record core deposit growth. We have again demonstrated that our depositor-focused model continues to distinguish Signature Bank in the marketplace, particularly during these turbulent times," Joseph J. DePaolo, Signature Bank President and Chief Executive Officer noted.

"During the quarter, we also made a significant investment in our future with the hiring of eight private client banking teams. We will continue to use our established platform to recruit additional seasoned banking professionals who know that, at Signature Bank, they can provide a high level of client care from a safe institution with strong financial performance and a solid capital position," DePaolo explained.

Scott A. Shay, Chairman of the Board, added: "Our reputation as a bank with a sound balance sheet and an abundant capital base is growing in the marketplace as evidenced by our largest quarterly core deposit growth since we opened. We continue to put depositor safety as our first priority as demonstrated by our successful completion of common equity offerings of over $275 million since September 2008. By always thinking of depositors first, we are building our franchise to be a safe, 'sleep at night' bank."

Capital
Signature Bank's already strong capital ratios were further strengthened by the public offering of $127.1 million of common stock during the 2009 second quarter. The Bank's tangible common equity, tier one leverage, tier one risk-based, and total risk-based capital ratios were approximately 9.34 percent, 10.65 percent, 15.26 percent and 16.11 percent, respectively, as of June 30, 2009, well in excess of regulatory requirements. The risk-based ratios also reflect the relatively low risk profile of the Bank's balance sheet.

Net Interest Income
Net interest income on a tax-equivalent basis for the 2009 second quarter was $60.6 million, an increase of $15.4 million, or 34.1 percent, from the 2008 second quarter. Average interest-earning assets for the 2009 second quarter rose $1.39 billion, or 24.1 percent, from the same period last year. Yield on interest-earning assets for the 2009 second quarter decreased 13 basis points, to 5.08 percent, compared with the second quarter of last year. The decrease was primarily due to lower prevailing interest rates.

Average costs of deposits and average costs of funds for the 2009 second quarter decreased by 33 and 34 basis points to 1.40 percent and 1.78 percent, respectively, when compared with the second quarter a year ago. These decreases were predominantly due to lower prevailing interest rates.

Net interest margin on a tax-equivalent basis for the 2009 second quarter increased 25 basis points to 3.39 percent compared with the same period a year ago. On a linked-quarter basis, net interest margin increased two basis points. The linked-quarter increase was predominantly due to the reduction in the cost of deposits as a result of lower prevailing interest rates.

Provision for Loan Losses
The provision for loan losses for the 2009 second quarter was $9.4 million, up $3.4 million, or 55.8 percent, versus the second quarter of last year and down $200,000 from $9.6 million for the first quarter of 2009. The increase was primarily driven by the growth in the loan portfolio, combined with an increase in non-performing loans and provisions to recognize the effect on the Bank's loan portfolio of the deteriorating economic environment.

Net charge-offs for the second quarter of 2009 were $4.4 million, or 0.48 percent annualized, compared with $7.2 million, or 0.82 percent, for the 2009 first quarter and $1.4 million, or 0.23 percent, for the 2008 second quarter.

Non-Interest Income and Non-Interest Expense
Non-interest income for the 2009 second quarter was $7.3 million, a decrease of $2.5 million when compared with $9.8 million reported in the second quarter of 2008. The decrease was primarily a result of a decrease in commissions and trading income. Commissions earned on off-balance sheet money market funds were negatively affected due to the current low interest rate environment. The decline in trading income was due to a mark-to-market decrease of $1.5 million on credit default swaps we maintain to hedge certain corporate debt securities.

Non-interest expense for the second quarter of 2009 was $38.9 million, an increase of $8.2 million, or 26.7 percent, versus $30.7 million reported in the second quarter of 2008. The increase for the quarter was primarily a result of the addition of new private client banking teams and offices, growth in client activity, additional costs of $1.4 million related to FDIC deposit assessment fees and the FDIC deposit guarantee program and additional expense of $3.5 million for the FDIC special assessment fee.

The Bank's efficiency ratio increased to 57.4 percent for the 2009 second quarter versus 56.0 percent for the 2008 second quarter. The Bank's efficiency ratio for the quarter was negatively impacted by the increase in FDIC fees, especially the special assessment fee of $3.5 million. Excluding the FDIC special assessment fee, the efficiency ratio was 52.2 percent.

Loans
Loans, excluding loans held for sale, increased $199.9 million, or 5.6 percent, to $3.77 billion at June 30, 2009, versus $3.57 billion at March 31, 2009. At June 30, 2009, loans were 47.8 percent of total assets, compared with 48.0 percent at March 31, 2009. Average loans, excluding loans held for sale, reached $3.67 billion in the second quarter of 2009, growing $150.3 million, or 4.3 percent, since March 31, 2009.

At June 30, 2009, non-performing loans were $47.9 million, representing 1.27 percent of total loans and 0.61 percent of total assets, compared with non-performing loans of $45.1 million, or 1.26 percent of total loans, at March 31, 2009 and $29.1 million, or 1.1 percent of total loans, at June 30, 2008. At the end of the second quarter of 2009, the ratio of allowance for loan losses to total loans was at 1.18 percent, versus 1.11 percent at March 31, 2009 and 1.03 percent at June 30, 2008.

Conference Call
Signature Bank's management will host a conference call to review results of the 2009 second quarter on Tuesday, July 28, 2009, at 10:00 AM ET. All participants should dial 480-629-9770 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 303-590-3030 and enter reservation identification number 4121600. The replay will be available from approximately 12:00 PM ET on Tuesday, July 28, 2009, through 11:59 PM ET on Friday, July 31, 2009.

About Signature Bank
Signature Bank, member FDIC, is a New York-based full-service commercial bank with 22 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 FINRA/SIPC.

Signature Bank's 22 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; 68 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. Staten Island - 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. Forward-looking statements include information concerning our future results, interest rates and the interest rate environment, loan and deposit growth, loan performance, operations, capitalization, new private client team hires, new office openings, the regulatory environment 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 and regulatory 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.

- FINANCIAL TABLES ATTACHED -

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