Signature Bank
Oct 27, 2009

Signature Bank Reports 2009 Third Quarter Results

NEW YORK … October 27, 2009 … Signature Bank (Nasdaq: SBNY), a New York-based full-service commercial bank, today announced its results for the 2009 third quarter ended September 30, 2009.

Net income for the 2009 third quarter increased 65.0 percent to $15.2 million, or $0.37 diluted earnings per share, compared with $9.2 million, or $0.29 diluted earnings per share, for the 2008 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 2008 third quarter would have been $13.6 million, or $0.44 diluted earnings per share.

The increase in net income during the third quarter is a result of several factors, including record core deposit growth, solid loan growth and net interest margin expansion. These factors were partially offset by an increase in the provision for loan losses, a decrease in commissions and an increase in non-interest expenses.

Net interest income for the third quarter of 2009 was $68.6 million, an increase of $18.5 million, or 37.0 percent, when compared with the same period last year. Total assets reached $8.6 billion at September 30, 2009, expanding $1.41 billion, or 19.6 percent, when compared with $7.19 billion at December 31, 2008. Average assets for the 2009 third quarter were $8.35 billion, an increase of $1.87 billion, or 28.9 percent, from the comparable period last year.

Deposits during the third quarter of 2009 grew $701.2 million, or 11.5 percent, to $6.8 billion at September 30, 2009. Core deposits increased $534.9 million, or 9.2 percent, along with an increase of $192.9 million in short-term escrow deposits and a decrease of $26.5 million in brokered deposits. When compared with deposits at December 31, 2008, the overall deposit growth during the past nine months represents an increase of $1.42 billion, or 26.3 percent. Core deposit growth for the nine months ended September 30, 2009 was $1.32 billion, or 26.3 percent.

"The third quarter of 2009 represents yet another quarter where the Bank achieved record core deposit growth and demonstrated strong financial performance across all key metrics, including core earnings, margins and loans as well as deposits. Signature Bank continues to perform while the industry remains challenged," stated Joseph J. DePaolo, Signature Bank President and Chief Executive Officer.

"We are able to sustain our solid growth and continue to build our reputation because we remain true to our depositor-focused business model. We are capitalizing on the instabilities amid our competitive landscape and, toward this end, we added 13 private client banking teams to date this year. Our successful strategy is evidenced by our record core deposit growth again this quarter. The success of our teams, both new and established, stems from the fact clients simply want to bank at an institution where
they know their deposits are safe and where our team-based single point of contact model meets all their needs," DePaolo commented.

Scott A. Shay, Chairman of the Board, discussed the Bank's results and market position: "While the banking industry continues to struggle, Signature Bank stands out in stability, success and strength. Our strong balance sheet allows us to take full advantage of opportunities to hire talented banking professionals, organically grow core client deposit relationships and provide secure lending. Our core principles and philosophies have been our compass since our founding and, frankly, they are not only guiding us through these treacherous times but, rather, they have enabled us to flourish. We always place depositor interests as the first and foremost priority in our minds."

Capital
The Bank's tier one leverage, tier one risk-based, and total risk-based capital ratios were approximately 9.80 percent, 14.46 percent and 15.34 percent, respectively, as of September 30, 2009, well in excess of regulatory requirements. The Bank's strong risk-based ratios reflect the relatively low risk profile of the Bank's balance sheet. The Bank's tangible common equity ratio remains strong at 9.00 percent.

Net Interest Income
Net interest income on a tax-equivalent basis for the 2009 third quarter was $68.6 million, an increase of $18.5 million, or 36.9 percent, when compared with the 2008 third quarter. Average interest-earning assets for the 2009 third quarter rose $1.90 billion, or 31.0 percent, from the comparable prior year period. Yield on interest-earning assets for the third quarter of 2009 decreased 36 basis points, to 4.96 percent, versus the 2008 third quarter. The decrease was primarily attributable to lower prevailing interest rates.

Average costs of deposits and average costs of funds for the 2009 third quarter decreased by 38 and 45 basis points to 1.33 percent and 1.67 percent, respectively, when compared with the 2008 third quarter. These decreases were predominantly the result of lower prevailing interest rates.

Net interest margin on a tax-equivalent basis for the 2009 third quarter increased 13 basis points to 3.39 percent compared with the same period last year. On a linked-quarter basis, net interest margin remained unchanged at 3.39 percent as cash balances were excessive given the Bank's cautious deployment of deposit inflows.

Provision for Loan Losses
The Bank's provision for loan losses for the third quarter of 2009 was $11.9 million, up $6.1 million compared with the same period a year ago and up $2.5 million from $9.4 million for the second quarter of 2009. The increase was primarily driven by the growth in the loan portfolio, combined with an increase in charge-offs, non-performing loans and provisions to recognize the effect of the current economic environment on the Bank's loan portfolio.

Net charge-offs for the 2009 third quarter of 2009 were $6.6 million, or 0.66 percent on an annualized basis, compared with $4.4 million, or 0.48 percent, for the 2009 second quarter and $2.6 million, or 0.36 percent, for the 2008 third quarter.

Non-Interest Income and Non-Interest Expense
Non-interest income for the 2009 third quarter was $7.3 million, an increase of $3.6 million when compared with the $3.7 million reported in the third quarter of 2008. Third quarter 2008 non-interest income was negatively affected by an $8.0 million other than temporary impairment write-down on a single Lehman Brothers senior debenture. Non-interest income for the 2009 third quarter was impacted by a decrease of $2.7 million in commissions primarily due to a reduction in commissions earned on off-balance sheet money market funds caused by the current low interest rate environment.

Non-interest expense for the third quarter of 2009 was $38.6 million, up $5.8 million, or 17.7 percent, versus $32.8 million reported in the 2008 third quarter. The increase for the quarter was primarily a result of the addition of new private client banking teams and offices, growth in client activity, and additional costs of $1.4 million related to FDIC deposit assessment fees and the FDIC deposit guarantee program.

The Bank's efficiency ratio improved to 50.8 percent for the 2009 third quarter versus 60.9 percent for the 2008 third quarter and 53.0 percent after excluding the impairment write-down on the debenture described above.

Loans
Loans, excluding loans held for sale, increased $361.4 million, or 9.6 percent, to $4.13 billion at September 30, 2009, versus $3.77 billion at June 30, 2009. At September 30, 2009, loans accounted for 48.0 percent of total assets, compared with 47.8 percent at June 30, 2009. Average loans, excluding loans held for sale, reached $3.96 billion in the 2009 third quarter, growing $287.1 million, or 7.8 percent, since June 30, 2009.

At September 30, 2009, non-performing loans were $51.2 million, representing 1.24 percent of total loans and 0.60 percent of total assets, compared with non-performing loans of $47.9 million, or 1.27 percent of total loans, at June 30, 2009 and $30.8 million, or 1.0 percent of total loans, at September 30, 2008. At the end of the 2009 third quarter, the ratio of allowance for loan losses to total loans was at 1.20 percent, versus 1.18 percent at June 30, 2009 and 1.00 percent at September 30, 2008.

Conference Call
Signature Bank's management will host a conference call to review results of the 2009 third quarter on Tuesday, October 27, 2009, at 10:00 AM ET. All participants should dial 480-629-9819 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 4173144. The replay will be available from approximately 12:00 PM ET on Tuesday, October 27, 2009, through 11:59 PM ET on Friday, October 30, 2009.

About Signature Bank
Signature Bank, member FDIC, a New York-based full-service commercial bank with 23 private client offices in the New York metropolitan area, serves 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 23 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, 1020 Madison Avenue and 50 West 57th Street. 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, including the establishment of special assessments by the FDIC; (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