Signature Bank
Jan 25, 2011

Signature Bank Reports 2010 Fourth Quarter and Year-End Results

NEW YORK--(BUSINESS WIRE)-- Signature Bank (Nasdaq: SBNY), a New York-based full-service commercial bank, today announced results for its fourth quarter and year ended December 31, 2010.

Net income available to common shareholders for the 2010 fourth quarter reached a record $30.3 million, or $0.72 diluted earnings per share, versus $21.0 million, or $0.51 diluted earnings per share, for the 2009 fourth quarter. The record net income for the 2010 fourth quarter, versus the comparable quarter last year, is primarily due to an increase in net interest income, fueled by core deposit growth and continued loan growth. These factors were partially offset by increases in the provision for loan losses and non-interest expenses.

Net interest income for the 2010 fourth quarter reached $95.9 million, up $20.2 million, or 26.6 percent, when compared with the 2009 fourth quarter. This increase is primarily due to growth in average interest-earning assets. Total assets reached $11.67 billion at December 31, 2010, an increase of $2.53 billion, or 27.6 percent, from $9.15 billion at December 31, 2009. Average assets for the 2010 fourth quarter reached $11.17 billion, an increase of $2.25 billion, or 25.3 percent, compared with the 2009 fourth quarter.

Deposits for the 2010 fourth quarter rose $390.8 million, or 4.3 percent, to a record $9.44 billion at December 31, 2010. This includes core deposit growth of $458.6 million, a decrease of $74.0 million in short-term escrow deposits and an increase of $6.2 million in brokered deposits. Overall deposit growth for 2010 was 30.7 percent, or $2.22 billion, versus deposits at December 31, 2009. Excluding short-term escrow and brokered deposits of $389.4 million at year-end 2009 and $646.1 million at year-end 2010, core deposits increased $1.96 billion or 28.7 percent in 2010. Average total deposits for 2010 were $8.45 billion, growing $2.16 billion, or 34.4 percent, versus average total deposits of $6.29 billion for 2009.

"The past decade for Signature Bank was one of exceptional growth and achievement, which culminated in a year of significant accomplishment. This was highlighted by yet another year where we delivered record earnings," remarked Joseph J. DePaolo, President and Chief Executive Officer.

"Back in 2000, we formulated a business plan focused on meeting the needs of privately owned businesses, their owners and senior managers through a distinctive single-point-of-contact approach. We knew our banking philosophy would allow us to compete with the mega-banks in the largest marketplace for privately owned businesses in the country. When we commenced operations in 2001, there were 8,000 banks larger than Signature Bank. We enter our second decade, not as an idea but among the 75 largest commercial banks in the country, confident in our ability to meet any challenges that may lie ahead.

"We continue to remain focused on our founding concept of placing depositor safety first and foremost, which has led to the Bank's extraordinary financial performance and solid reputation in the New York metropolitan area," DePaolo explained.

Scott A. Shay, Chairman of the Board, added: "We are not aware of another traditional commercial bank in the United States that started from scratch and grew to more than $11 billion in assets and in excess of $9 billion in deposits with nearly $950 million in capital while achieving over $100 million in net income in less than 10 years. This growth was achieved without any acquisitions, but rather by the strength of our business value proposition. Signature Bank offers the highest level of service and sleep-at-night safety to privately owned businesses and focuses on establishing relationships with these types of companies across the New York City metropolitan area, which houses the highest concentration of small businesses in the U.S.

"It is our commitment to depositor safety that kept us on track to report higher than previous year earnings in each of 2008, 2009, and 2010, a time during which many of our competitors faced financial challenges. We pledge to maintain this focus for our clients and dedicated bankers. This year is off to a solid start with the addition of another private client banking team and the expected opening of our 25th office. We believe we will continue to be the bank of choice for veteran bankers who want to put their clients first and feel comfortable with the bank they represent."

Capital

The Bank's tier one leverage, tier one risk-based, and total risk-based capital ratios were approximately 8.62 percent, 14.21 percent and 15.21 percent, respectively, as of December 31, 2010. 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 8.09 percent.

Net Interest Income

Net interest income on a tax-equivalent basis for the 2010 fourth quarter was $95.9 million, an increase of $20.2 million, or 26.6 percent, versus the same period last year, primarily due to growth in average interest-earning assets. Average interest-earning assets of $10.88 billion for the 2010 fourth quarter represent an increase of $2.24 billion, or 26.0 percent, from the 2009 fourth quarter. Yield on interest-earning assets for the 2010 fourth quarter decreased 34 basis points, to 4.56 percent, compared with the 2009 fourth quarter. This decrease was primarily attributable to lower prevailing interest rates.

Average cost of deposits and average cost of funds for the fourth quarter of 2010 decreased by 27 and 38 basis points to 0.94 percent and 1.14 percent, respectively, versus the 2009 fourth quarter. These decreases were predominantly due to lower prevailing interest rates.

Net interest margin on a tax-equivalent basis for the 2010 fourth quarter was 3.50 percent versus 3.48 percent reported in the same period a year ago. On a linked quarter basis, net interest margin on a tax-equivalent basis increased 9 basis points. The linked quarter increase was primarily due to lower deposit costs, continued loan growth, investment of cash balances and the run-off of higher cost borrowings.

Provision for Loan Losses

The Bank's provision for loan losses for the fourth quarter of 2010 was $13.6 million, an increase of $1.7 million, or 14.7 percent, compared with the 2009 fourth quarter. The increase was driven largely by an increase in charge-offs.

Net charge-offs for the 2010 fourth quarter were $14.6 million, or 1.16 percent of average loans on an annualized basis, versus $6.8 million, or 0.56 percent, for the 2010 third quarter and $6.4 million, or 0.61 percent, for the 2009 fourth quarter. The increase in charge-offs was due to a charge-off of $10.0 million on one commercial and industrial loan that originated from an overdraft caused by a Canadian check clearing incident which we are disputing. Excluding this $10.0 million charge-off, charge-offs for the quarter were $4.6 million, or 0.37 percent, for the 2010 fourth quarter.

Non-Interest Income and Non-Interest Expense

Non-interest income for the 2010 fourth quarter was $10.0 million, up $394,000 when compared with the $9.6 million reported in the 2009 fourth quarter. The increase was driven by an increase in commissions of $436,000.

Non-interest expense for the fourth quarter of 2010 was $41.0 million, an increase of $2.6 million, or 6.7 percent, versus $38.4 million reported in the 2009 fourth quarter. The increase was primarily a result of the addition of new private client banking teams.

The Bank's efficiency ratio improved to 38.7 percent for the 2010 fourth quarter versus 45.0 percent for the comparable period last year. The improvement was primarily due to growth in net interest income coupled with expense containment.

Loans

Loans, excluding loans held for sale, grew $349.5 million, or 7.1 percent, during the fourth quarter of 2010 to $5.24 billion, compared with $4.9 billion at September 30, 2010. At December 31, 2010, loans accounted for 44.9 percent of total assets, versus 44.8 percent at the end of the 2010 third quarter and 47.8 percent at the end of 2009. Average loans, excluding loans held for sale, reached $5.0 billion in the 2010 fourth quarter, growing $213.1 million, or 4.4 percent, from the 2010 third quarter and $797.3 million, or 18.9 percent, from the 2009 fourth quarter. The increase in loans for the quarter and the year was primarily driven by growth in commercial real estate and multi-family loans underwritten within the Bank's stringent standards.

At December 31, 2010, non-performing loans were $34.1 million, representing 0.65 percent of total loans and 0.29 percent of total assets, compared with non-performing loans of $33.8 million, or 0.69 percent of total loans, at September 30, 2010 and $46.6 million, or 1.07 percent of total loans, at December 31, 2009. At the end of the 2010 fourth quarter, the ratio of allowance for loan losses to total loans was 1.29 percent, versus 1.40 percent at September 30, 2010 and 1.26 percent at December 31, 2009. Additionally, the ratio of allowance for loan losses to non-performing loans, or the coverage ratio, was 197 percent for the 2010 fourth quarter versus 203 percent for the third quarter of 2010 and 118 percent for the 2009 fourth quarter.

Conference Call

Signature Bank's management will host a conference call to review results of the 2010 fourth quarter and year-end on Tuesday, January 25, 2011, 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 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 4400266. The replay will be available from approximately 12:00 PM ET on Tuesday, January 25, 2011 through 11:59 PM ET on Friday, January 28, 2011.

About Signature Bank

Signature Bank, member FDIC, a New York-based full-service commercial bank with 24 private client offices throughout 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 24 offices are located: 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; 78-27 37th Avenue, Jackson Heights and 8936 Sutphin Blvd., Jamaica. 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, 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, 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 the banking and other financial services regulatory environment 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.

 

SIGNATURE BANK

CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
 
 
 

Three months ended
December 31,

 

Twelve months ended
December 31,

(dollars in thousands, except per share amounts)   2010 2009   2010 2009
INTEREST AND DIVIDEND INCOME
Loans held for sale $ 1,309 870 4,020 2,786
Loans, net 70,992 59,362 264,898 213,357
Securities available-for-sale 48,196 43,062 180,543 157,228
Securities held-to-maturity 4,146 3,104 15,254 11,401
Other short-term investments     498     378     1,815     1,363  
  Total interest income     125,141     106,776     466,530     386,135  
INTEREST EXPENSE
Deposits 21,931 21,826 87,963 85,398
Federal funds purchased and securities sold under
agreements to repurchase 5,200 6,587 24,010 27,921
Federal Home Loan Bank advances 2,104 2,628 9,698 10,420
Other short-term borrowings     -     1     1     1  
  Total interest expense     29,235     31,042     121,672     123,740  
Net interest income before provision for loan losses 95,906 75,734 344,858 262,395
Provision for loan losses     13,578     11,837     46,372     42,715  
Net interest income after provision for loan losses     82,328     63,897     298,486     219,680  
NON-INTEREST INCOME
Commissions 2,503 2,067 9,063 9,572
Fees and service charges 3,716 3,500 14,119 13,280
Net gains on sales of securities 2,616 2,597 25,367 8,683
Net gains on sales of loans 1,445 1,612 6,054 3,648
Other-than-temporary impairment losses on securities:
Total impairment losses on securities (5,279 ) (8,826 ) (38,613 ) (23,719 )
Portion of loss recognized in other comprehensive income (before taxes)   4,620     8,303     24,437     22,397  
Net impairment losses on securities recognized in earnings (659 ) (523 ) (14,176 ) (1,322 )
Net trading income (loss) 59 (48 ) 124 (1,009 )
Other income     327     408     2,097     1,780  
  Total non-interest income     10,007     9,613     42,648     34,632  
NON-INTEREST EXPENSE
Salaries and benefits 24,644 22,219 99,728 86,836
Occupancy and equipment 3,861 3,641 14,861 14,042
Other general and administrative     12,472     12,550     50,307     49,007  
  Total non-interest expense     40,977     38,410     164,896     149,885  
Income before income taxes 51,358 35,100 176,238 104,427
Income tax expense     21,032     14,130     74,187     41,701  
Net income 30,326 20,970 102,051 62,726
Dividends on preferred stock and related discount accretion     -     -     -     12,203  
Net income available to common shareholders   $ 30,326     20,970     102,051     50,523  
PER COMMON SHARE DATA
Earnings per share — basic (1) $ 0.74 0.52 2.49 1.32
Earnings per share — diluted (1) $ 0.72 0.51 2.46 1.30
(1)   For the twelve months ended December 31, 2009, includes the negative effect of the $10.2 million deemed dividend associated with the difference between the redemption payment and the carrying value of the preferred stock repurchased from the United States Department of the Treasury.
 
SIGNATURE BANK
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
 
  December 31,       December 31,
2010 2009
(dollars in thousands, except per share amounts)   (unaudited)        
ASSETS
Cash and due from banks $ 31,558 95,746
Short-term investments     14,741         12,603  
  Total cash and cash equivalents     46,299         108,349  
Securities available-for-sale (pledged $1,553,412 and $1,584,371 at
December 31, 2010 and 2009) 5,249,286 3,837,583
Securities held-to-maturity (fair value $450,315 and $290,608 at
December 31, 2010 and 2009; pledged $337,453 and $194,336 at
December 31, 2010 and 2009) 447,896 295,984
Federal Home Loan Bank stock 38,439 23,906
Loans held for sale 382,463 293,207
Loans, net 5,177,268 4,320,978
Premises and equipment, net 29,385 31,802
Accrued interest and dividends receivable 53,211 43,193
Other assets     248,842         191,110  
  Total assets   $ 11,673,089         9,146,112  
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Non-interest-bearing 2,449,968 1,969,734
Interest-bearing     6,991,259         5,252,812  
  Total deposits     9,441,227         7,222,546  
Federal funds purchased and securities sold under agreements
to repurchase 658,000 697,000
Federal Home Loan Bank advances 558,000 305,000
Other short-term borrowings 6,200 6,900
Accrued expenses and other liabilities     65,115         111,007  
  Total liabilities     10,728,542         8,342,453  
Shareholders' equity
Preferred stock, par value $.01 per share; 61,000,000 shares authorized; none
issued at December 31, 2010 and 2009
Common stock, par value $.01 per share; 64,000,000 shares authorized; - -
41,347,540 and 40,619,557 shares issued and outstanding
at December 31, 2010 and 2009 413 406
Additional paid-in capital 689,035 668,441
Retained earnings 273,511 171,464
Net unrealized depreciation on securities, net of tax     (18,412 )       (36,652 )
  Total shareholders' equity     944,547         803,659  
  Total liabilities and shareholders' equity   $ 11,673,089         9,146,112  
 
 
SIGNATURE BANK
FINANCIAL SUMMARY, CAPITAL RATIOS, ASSET QUALITY
(unaudited)
 
    Three months ended

December 31,

  Twelve months ended

December 31,

(dollars in thousands, except ratios and per share amounts)     2010   2009     2010   2009  
PER COMMON SHARE    
Net income - basic (1) $ 0.74 $ 0.52 $ 2.49 $ 1.32
Net income - diluted (1) $ 0.72 $ 0.51 $ 2.46 $ 1.30
Average shares outstanding - basic 41,129 40,618 40,923 38,306
Average shares outstanding - diluted 41,830 41,114 41,558 38,727
Book value $ 22.84 $ 19.79 $ 22.84 $ 19.79
 
SELECTED FINANCIAL DATA
Return on average total assets 1.08 % 0.93 % 0.99 % 0.79 %
Return on average shareholders' equity 12.91 % 10.55 % 11.67 % 8.35 %
Return on average common shareholders' equity (1) 12.91 % 10.55 % 11.67 % 7.26 %
Efficiency ratio (2) 38.69 % 45.00 % 42.55 % 50.46 %

Efficiency ratio excluding net impairment losses

    on securities recognized in earnings (2)

38.45 % 44.73 % 41.05 % 50.24 %

Efficiency ratio excluding net gains on sales of securities
    and net impairment losses on securities recognized
    in earnings (2)

39.42 % 46.13 % 43.82 % 51.74 %
Yield on interest-earning assets 4.56 % 4.90 % 4.67 % 5.02 %
Yield on interest-earning assets, tax-equivalent basis (3) 4.56 % 4.90 % 4.67 % 5.02 %
Cost of deposits and borrowings 1.14 % 1.52 % 1.30 % 1.71 %
Net interest margin 3.50 % 3.48 % 3.45 % 3.41 %
Net interest margin, tax-equivalent basis (3) 3.50 % 3.48 % 3.45 % 3.41 %
(1)   For the twelve months ended December 31, 2009, includes the negative effect of the $10.2 million deemed dividend associated with the difference between the redemption payment and the carrying value of the preferred stock repurchased from the U.S. Treasury.
(2) The efficiency ratio is calculated by dividing non-interest expense by the sum of net interest income before provision for loan losses and non-interest income.
(3) Presented using a 35 percent federal tax rate.
      December 31,

2010

    September 30,

2010

    December 31,

2009

CAPITAL RATIOS            
Tangible common equity (4) 8.09 % 8.41 % 8.79 %
Tier one leverage 8.62 % 8.66 % 9.39 %
Tier one risk-based 14.21 % 13.50 % 13.57 %
Total risk-based 15.21 % 14.51 % 14.47 %
 
ASSET QUALITY
Non-performing loans $ 34,134 $ 33,769 $ 46,606
Allowance for loan losses $ 67,396 $ 68,436 $ 55,120
Allowance for loan losses to non-performing loans 197.45 % 202.66 % 118.27 %
Allowance for loan losses to total loans 1.29 % 1.40 % 1.26 %
Non-performing loans to total loans 0.65 % 0.69 % 1.07 %
Quarterly net charge-offs to average loans (annualized) 1.16 % 0.56 % 0.61 %
(4)   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 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 one capital related ratios, to evaluate capital levels.
 
SIGNATURE BANK
NET INTEREST MARGIN ANALYSIS
(unaudited)
 
      Three months ended         Three months ended
December 31, 2010 December 31, 2009
(dollars in thousands)      

Average
Balance

     

Interest
Income/
Expense

     

Average
Yield/
Rate

       

Average
Balance

     

Interest
Income/
Expense

 

Average
Yield/
Rate

INTEREST-EARNING ASSETS                    
Short-term investments $ 81,962 56 0.27 % 176,098 60     0.14 %
Investment securities 5,479,677 52,784 3.85 % 4,070,136 46,484 4.57 %

Commercial loans and commercial

    mortgages (1)

4,617,878 65,181 5.60 % 3,844,429 53,774 5.55 %
Residential mortgages 187,613 2,368 5.05 % 184,580 2,405 5.21 %
Consumer loans 201,410 3,443 6.78 % 180,607 3,205 7.04 %
Loans held for sale         315,413       1,309       1.65 %         185,362       870         1.86 %

    Total interest-earning assets

        10,883,953       125,141       4.56 %         8,641,212       106,798         4.90 %

Non-interest-earning assets

        283,706                         271,959            
Total assets       $ 11,167,659                         8,913,171            
INTEREST-BEARING LIABILITIES
Interest-bearing deposits
NOW accounts 764,539 880 0.46 % 660,038 1,175 0.71 %
Money market accounts 5,284,461 16,576 1.24 % 3,776,730 15,397 1.62 %
Time deposits 931,355 4,475 1.91 % 869,525 5,254 2.40 %
Non-interest-bearing deposits         2,250,911       -       -           1,874,194       -         -  
Total deposits         9,231,266       21,931       0.94 %         7,180,487       21,826         1.21 %
Borrowings         935,307       7,304       3.10 %         900,874       9,216         4.06 %
Total deposits and borrowings         10,166,573       29,235       1.14 %         8,081,361       31,042         1.52 %
Other non-interest-bearing liabilities
and shareholders' equity         1,001,086                         831,810            
Total liabilities and shareholders' equity       $ 11,167,659                         8,913,171            
OTHER DATA
Tax-equivalent basis
Net interest income / interest rate spread 95,906 3.42 % 75,756 3.38 %
Net interest margin                       3.50 %                     3.48 %
Tax-equivalent adjustment / effect
Net interest income / interest rate spread - - (22 ) -
Net interest margin                       -                       -  
As reported
Net interest income / interest rate spread 95,906 3.42 % 75,734 3.38 %
Net interest margin                       3.50 %                     3.48 %
Ratio of average interest-earning assets
to average interest-bearing liabilities                       107.06 %                     106.93 %

(1) Includes interest income on certain tax-exempt assets presented on a tax-equivalent basis using a 35 percent federal tax rate.

SIGNATURE BANK      
NET INTEREST MARGIN ANALYSIS
(unaudited)
 
      Twelve months ended Twelve months ended
December 31, 2010 December 31, 2009
(dollars in thousands)      

Average
Balance

     

Interest
Income/
Expense

     

Average
Yield/
Rate

     

Average
Balance

     

Interest
Income/
Expense

     

Average
Yield/
Rate

INTEREST-EARNING ASSETS                        
Short-term investments $ 194,864 519 0.27 % 136,350 260 0.19 %
Investment securities 4,875,482 197,093 4.04 % 3,567,812 169,732 4.76 %

Commercial loans and commercial

    mortgages (1)

4,319,014 241,886 5.60 % 3,496,846 192,445 5.50 %
Residential mortgages 182,995 9,336 5.10 % 180,789 9,819 5.43 %
Consumer loans 194,407 13,677 7.04 % 164,004 11,214 6.84 %
Loans held for sale         233,508       4,020         1.72 %       146,448       2,786         1.90 %
Total interest-earning assets         10,000,270       466,531         4.67 %       7,692,249       386,256         5.02 %
Non-interest-earning assets         315,051                       296,305                
Total assets       $ 10,315,321                       7,988,554                
INTEREST-BEARING LIABILITIES
Interest-bearing deposits
NOW accounts 724,458 4,014 0.55 % 594,455 4,924 0.83 %
Money market accounts 4,816,609 65,279 1.36 % 3,187,039 59,122 1.86 %
Time deposits 892,186 18,670 2.09 % 840,529 21,352 2.54 %
Non-interest-bearing deposits         2,020,265       -         -         1,668,753       -         -  
Total deposits         8,453,518       87,963         1.04 %       6,290,776       85,398         1.36 %
Borrowings         913,199       33,709         3.69 %       944,144       38,342         4.06 %
Total deposits and borrowings         9,366,717       121,672         1.30 %       7,234,920       123,740         1.71 %
Other non-interest-bearing liabilities
and shareholders' equity         948,604                       753,634                
Total liabilities and shareholders' equity       $ 10,315,321                       7,988,554                
OTHER DATA
Tax-equivalent basis
Net interest income / interest rate spread 344,859 3.37 % 262,516 3.31 %
Net interest margin                       3.45 %                       3.41 %
Tax-equivalent adjustment / effect
Net interest income / interest rate spread (1 ) - (121 ) -
Net interest margin                       -                         -  
As reported
Net interest income / interest rate spread 344,858 3.37 % 262,395 3.31 %
Net interest margin                       3.45 %                       3.41 %
Ratio of average interest-earning assets
to average interest-bearing liabilities                       106.76 %                       106.32 %
(1)   Includes interest income on certain tax-exempt assets presented on a tax-equivalent basis using a 35 percent federal tax rate.
 
SIGNATURE BANK      
NON-GAAP FINANCIAL MEASURES
(unaudited)
 

   Management believes that the presentation of net income and diluted earnings per share excluding the after tax effect of net gains on sales of securities and net impairment losses on securities recognized in earnings, which are 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 should not be considered a substitute for GAAP-basis measures and results and 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 presents a reconciliation of net income (as reported) to net income excluding the after tax effect of net gains on sales of securities and net impairment losses on securities recognized in earnings along with the resulting diluted earnings per share:

Three months ended

December 31,

    Twelve months ended

December 31,

(dollars in thousands, except per share amounts)       2010       2009       2010       2009  
Net income (as reported) $ 30,326     20,970 $ 102,051     62,726
Net gains on sales of securities (2,616 ) (2,597 ) (25,367 ) (8,683 )
Net impairment losses on securities recognized in earnings 659 523 14,176 1,322
Tax effect         861       919           4,922       3,262  
Net income - excluding after tax effect of net gains on sales of securities
and net impairment losses on securities recognized in earnings       $ 29,230       19,815         $ 95,782       58,627  

Diluted earnings per share - excluding after tax effect of net gains on sales of 

securities and net impairment losses on securities recognized in earnings

$ 0.70 0.48 $ 2.30 1.51
 

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

Source: Signature Bank

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