Signature Bank
Jul 26, 2011

Signature Bank Reports 2011 Second Quarter Results

NEW YORK--(BUSINESS WIRE)-- Signature Bank (Nasdaq: SBNY), a New York-based full-service commercial bank, today announced results for its second quarter ended June 30, 2011.

Net income for the 2011 second quarter reached a record $36.6 million, or $0.87 diluted earnings per share, versus $22.3 million, or $0.54 diluted earnings per share, for the 2010 second quarter. The record net income for the 2011 second quarter, versus the comparable quarter last year, is primarily due to an increase in net interest income, fueled by core deposit growth and strong loan growth. These factors were partially offset by increases in the provision for loan losses and non-interest expenses.

Net interest income for the 2011 second quarter reached $113.0 million, an increase of $31.9 million, or 39.3 percent, when compared with the 2010 second quarter. This increase is primarily due to growth in average interest-earning assets. Total assets reached $13.08 billion at June 30, 2011, up $2.7 billion, or 26.0 percent, from $10.38 billion at June 30, 2010. Average assets for the 2011 second quarter reached $12.73 billion, up $2.8 billion, or 28.2 percent, when compared with last year's second quarter.

Deposits for the 2011 second quarter rose $684.9 million, or 6.7 percent, to $10.87 billion at June 30, 2011. When compared with deposits at December 31, 2010, the overall deposit growth during the first half of 2011 totaled $1.43 billion, or 15.2 percent. When compared with deposits at June 30, 2010, overall deposit growth for the past 12 months was 28.4 percent, or $2.41 billion.

"This marks the seventh consecutive quarter of record earnings and another quarter where we achieved strong deposit and loan growth. These consistent results, coupled with the successful equity offering we just completed, all contribute to the further strengthening of our distinctive platform and the leadership position we have secured throughout the metro-New York area," Joseph J. DePaolo, President and Chief Executive Officer commented.

"The $253 million in capital we just raised will sustain the Bank's growth and future expansion, as we adhere to our founding business model by attracting veteran bankers who provide exceptional service to clients by having their teams serve as a single point of contact. This is the cornerstone of Signature Bank and the reason we continue to thrive in the marketplace. We will use this capital to build upon the solid reputation we have garnered over the past decade while growing Signature Bank to a $13 billion financial institution," DePaolo said.

Scott A. Shay, Chairman of the Board, added: "The past few years have been extremely tough for many financial entities that still face difficult challenges. The landscape remains tumultuous, yet we continue to view that as a significant opportunity to grow and attract some of the industry's leading banking professionals. Our enhanced capital position, strengthened by the completion of the offering, and the ability to offer clients what many other institutions simply can't or don't — highly personalized client care, a carefully crafted balance sheet, sleep-at-night depositor safety and a model that caters to an underserved market through its client-centric philosophy — will allow Signature bank to continue to flourish."

Capital

The Bank's tier 1 leverage, tier 1 risk-based, and total risk-based capital ratios were approximately 8.15 percent, 14.20 percent and 15.29 percent, respectively, as of June 30, 2011. 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 8.08 percent. The Bank defines tangible common equity ratio as the ratio of tangible common equity to adjusted tangible assets and calculates this ratio by dividing total consolidated common shareholders' equity by consolidated total assets. In July 2011, the Bank raised $253.2 million of common stock in a public offering. The Bank's pro-forma capital ratios are detailed below:

Ratio

       

As of
June 30, 2011

       

Pro Forma After
Equity Raise in
July 20111

Total Risk-Based Capital 15.29% 18.75%
Tier 1 Risk-Based Capital 14.20% 17.67%
Tier 1 Leverage 8.15% 10.14%

1 Based on June 30, 2011 financial information and includes an additional $253.2 million in Tier 1 capital.

Proceeds from the offering will be used to continue the Bank's growth in serving its niche market of privately owned businesses in the metro-New York area.

Net Interest Income

Net interest income for the 2011 second quarter was $113.0 million, up $31.9 million, or 39.3 percent, when compared with the comparable period a year ago, primarily the result of growth in average interest-earning assets. Average interest-earning assets of $12.45 billion for the 2011 second quarter represent an increase of $2.83 billion, or 29.4 percent, from the 2010 second quarter. Yield on interest-earning assets for the second quarter of 2011 decreased 6 basis points, to 4.63 percent, versus the second quarter of last year. This decrease was primarily attributable to the continued effect of the prolonged low interest rate environment.

Average cost of deposits and average cost of funds for the 2011 second quarter decreased by 23 and 33 basis points to 0.87 percent and 1.06 percent, respectively, when compared with the second quarter of 2010. These decreases were predominantly due to the continued effect of the prolonged low interest rate environment.

Net interest margin for the 2011 second quarter was 3.64 percent versus 3.38 percent reported in the same period last year. On a linked quarter basis, net interest margin increased 5 basis points. The linked quarter increase was primarily due to lower deposit costs, continued loan growth and an increase of $597,000 in loan prepayment penalty income.

Provision for Loan Losses

The Bank's provision for loan losses for the 2011 second quarter was $12.9 million, up $1.7 million, or 15.5 percent versus the comparable quarter last year. The increase was largely driven by the growth in the loan portfolio.

Net charge-offs for the 2011 second quarter were $7.7 million, or 0.53 percent of average loans on an annualized basis, versus $6.5 million, or 0.49 percent, for the 2011 first quarter and $6.3 million, or 0.55 percent, for the 2010 second quarter.

Non-Interest Income and Non-Interest Expense

Non-interest income for the second quarter of 2011 was $10.2 million, down slightly from $10.3 million reported in the 2010 second quarter. The decrease was driven by a $1.5 million decrease in net gains on sales of securities.

Non-interest expense for the 2011 second quarter was $45.2 million, an increase of $3.5 million, or 8.4 percent, when compared with $41.7 million reported in the 2010 second quarter. The increase was primarily a result of the addition of new private client banking teams.

The Bank's efficiency ratio improved to 36.7 percent for the 2011 second quarter versus 45.7 percent for the same period a year ago. Excluding the gain on sale of the SBA interest-only strip security, the efficiency ratio was 37.3 percent for the 2011 second quarter. The improvement was primarily due to growth in net interest income coupled with expense containment.

Loans

Loans, excluding loans held for sale, grew $467.3 million, or 8.3 percent, during the 2011 second quarter to $6.11 billion, versus $5.64 billion at March 31, 2011. At June 30, 2011, loans accounted for 46.7 percent of total assets, compared with 45.6 percent at the end of the 2011 first quarter and 45.1 percent at the end of 2010 second quarter. Average loans, excluding loans held for sale, reached $5.85 billion in the 2011 second quarter, growing $432.3 million, or 8.0 percent, from the 2011 first quarter and $1.3 billion, or 28.6 percent, from the 2010 second quarter. The increase in loans was primarily driven by growth in commercial real estate and multi-family loans underwritten within the Bank's stringent standards.

At June 30, 2011, non-accrual loans were $44.2 million, representing 0.72 percent of total loans and 0.34 percent of total assets, compared with non-accrual loans of $39.0 million, or 0.69 percent of total loans, at March 31, 2011 and $44.6 million, or 0.95 percent of total loans, at June 30, 2010. At June 30, 2011, the ratio of the allowance for loan losses to total loans was 1.28 percent, versus 1.30 percent at March 31, 2011 and 1.38 percent at June 30, 2010. Additionally, the ratio of the allowance for loan losses to non-accrual loans, or the coverage ratio, was 177 percent at the end of the 2011 second quarter versus 188 percent at the end of the first quarter of 2011 and 145 percent at the end of the 2010 second quarter.

Conference Call

Signature Bank's management will host a conference call to review results of the 2011 second quarter on Tuesday, July 26, 2011, at 10:00 AM ET. All participants should dial 480-629-9835 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 4452514. The replay will be available from approximately 12:00 PM ET on Tuesday, July 26, 2011 through 11:59 PM ET on Friday, July 29, 2011.

About Signature Bank

Signature Bank, member FDIC, is a New York-based full-service commercial bank with 24 private client offices throughout the New York metropolitan area. The Bank's growing network of private client banking teams serves the needs of privately owned businesses, their owners and senior managers. Signature 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

June 30,

Six months ended

June 30,

(dollars in thousands, except per share amounts)   2011   2010

 

2011

  2010
INTEREST AND DIVIDEND INCOME
Loans held for sale $ 996 611 1,964 1,616
Loans, net 81,578 64,687 156,600 125,678
Securities available-for-sale 56,199 42,904 108,411 86,066
Securities held-to-maturity 4,664 3,877 8,997 7,049
Other short-term investments     397     398     930     848  
Total interest income     143,834     112,477     276,902     221,257  
INTEREST EXPENSE
Deposits 23,200 22,372 45,117 43,430
Federal funds purchased and securities sold under
agreements to repurchase 5,613 6,413 10,798 12,808
Federal Home Loan Bank advances 2,033 2,601 4,326 5,171
Other short-term borrowings     -     1     -     1  
Total interest expense     30,846     31,387     60,241     61,410  
Net interest income before provision for loan losses 112,988 81,090 216,661 159,847
Provision for loan losses     12,851     11,128     25,173     22,360  
Net interest income after provision for loan losses     100,137     69,962     191,488     137,487  
NON-INTEREST INCOME
Commissions 2,385 2,030 4,700 4,271
Fees and service charges 3,732 3,525 7,681 7,047
Net gains on sales of securities 3,710 5,175 11,587 17,843
Net gains on sales of loans 818 884 2,151 2,357
Other-than-temporary impairment losses on securities:
Total impairment losses on securities (4,228 ) (4,760 ) (8,238 ) (27,313 )
Portion of loss recognized in other comprehensive income (before taxes)   3,422     2,841     6,706     15,888  
Net impairment losses on securities recognized in earnings (806 ) (1,919 ) (1,532 ) (11,425 )
Net trading income 94 6 137 11
Other income     314     558     591     1,280  
Total non-interest income     10,247     10,259     25,315     21,384  
NON-INTEREST EXPENSE
Salaries and benefits 28,573 24,998 54,766 49,309
Occupancy and equipment 3,996 3,609 7,785 7,295
Other general and administrative     12,651     13,108     27,340     24,853  
Total non-interest expense     45,220     41,715     89,891     81,457  
Income before income taxes 65,164 38,506 126,912 77,414
Income tax expense     28,548     16,237     55,712     33,051  
Net income   $ 36,616     22,269     71,200     44,363  
PER COMMON SHARE DATA
Earnings per share — basic $ 0.89 0.54 1.72 1.09
Earnings per share — diluted $ 0.87 0.54 1.69 1.07
 
SIGNATURE BANK    
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
 
 
June 30, December 31,
2011 2010
(dollars in thousands, except per share amounts)   (unaudited)    
ASSETS
Cash and due from banks $ 72,073 31,558
Short-term investments     5,010   14,741  
Total cash and cash equivalents     77,083   46,299  
Securities available-for-sale (pledged $1,900,332 at June 30, 2011
and $1,553,412 at December 31, 2010) 5,806,448 5,249,286
Securities held-to-maturity (fair value $496,380 at June 30, 2011
and $450,315 at December 31, 2010; pledged $306,208 at
June 30, 2011 and $337,453 at December 31, 2010) 484,399 447,896
Federal Home Loan Bank stock 31,277 38,439
Loans held for sale 309,737 382,463
Loans, net 6,029,078 5,177,268
Premises and equipment, net 29,538 29,385
Accrued interest and dividends receivable 53,713 53,211
Other assets     263,572   248,842  
Total assets   $ 13,084,845   11,673,089  
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Non-interest-bearing 2,795,277 2,449,968
Interest-bearing     8,078,736   6,991,259  
Total deposits     10,874,013   9,441,227  
Federal funds purchased and securities sold under agreements
to repurchase 715,000 658,000
Federal Home Loan Bank advances 300,000 558,000
Other short-term borrowings 6,492 6,200
Accrued expenses and other liabilities     132,701   65,115  
Total liabilities     12,028,206   10,728,542  
Shareholders' equity
Preferred stock, par value $.01 per share; 61,000,000 shares authorized;
none issued at June 30, 2011 and December 31, 2010 - -
Common stock, par value $.01 per share; 64,000,000 shares authorized;
41,353,640 and 41,347,540 shares issued and outstanding
at June 30, 2011 and December 31, 2010 414 413
Additional paid-in capital 692,409 689,035
Retained earnings 344,711 273,511
Net unrealized gains (losses) on securities available-for-sale, net of tax     19,105   (18,412 )
Total shareholders' equity     1,056,639   944,547  
Total liabilities and shareholders' equity   $ 13,084,845   11,673,089  
 
                       
SIGNATURE BANK
FINANCIAL SUMMARY, CAPITAL RATIOS, ASSET QUALITY
(unaudited)
 
 
Three months ended

June 30,

Six months ended

June 30,

(dollars in thousands, except ratios and per share amounts)       2011       2010         2011       2010
PER COMMON SHARE
Net income - basic $ 0.89 $ 0.54 $ 1.72 $ 1.09
Net income - diluted $ 0.87 $ 0.54 $ 1.69 $ 1.07
Average shares outstanding - basic 41,353 40,913 41,351 40,776
Average shares outstanding - diluted 42,152 41,535 42,120 41,403
Book value $ 25.55 $ 21.63 $ 25.55 $ 21.63
 
SELECTED FINANCIAL DATA
Return on average total assets 1.15 % 0.90 % 1.16 % 0.92 %
Return on average shareholders' equity 14.33 % 10.38 % 14.35 % 10.58 %
Efficiency ratio (1) 36.69 % 45.67 % 37.15 % 44.95 %

Efficiency ratio excluding net gains on sales of securities
   and net impairment losses on securities recognized
   in earnings (1)

37.58 % 47.35 % 38.76 % 46.60 %
Yield on interest-earning assets 4.63 % 4.69 % 4.62 % 4.77 %
Cost of deposits and borrowings 1.06 % 1.39 % 1.07 % 1.41 %
Net interest margin 3.64 % 3.38 % 3.61 % 3.44 %
 

(1) 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.

 
 
        June 30,

2011

      March 31,

2011

      December 31,

2010

      June 20,

2010

CAPITAL RATIOS
Tangible common equity (2) 8.08 % 8.02 % 8.09 % 8.54 %
Tier 1 leverage 8.15 % 8.29 % 8.62 % 8.98 %
Tier 1 risk-based 14.20 % 13.87 % 14.21 % 13.55 %
Total risk-based 15.29 % 14.91 % 15.21 % 14.54 %
 
ASSET QUALITY
Non-accrual loans $ 44,234 $ 38,981 $ 34,134 $ 44,600
Allowance for loan losses $ 78,370 $ 73,211 $ 67,396 $ 64,793
Allowance for loan losses to non-accrual loans 177.17 % 187.81 % 197.45 % 145.28 %
Allowance for loan losses to total loans 1.28 % 1.30 % 1.29 % 1.38 %
Non-accrual loans to total loans 0.72 % 0.69 % 0.65 % 0.95 %
Quarterly net charge-offs to average loans (annualized) 0.53 % 0.49 % 1.16 % 0.55 %

(2)

 

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
June 30, 2011 June 30, 2010
(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 $ 88,352 68 0.31 % 327,605 211 0.26 %
Investment securities 6,266,851 61,192 3.91 % 4,595,003 46,968 4.09 %
Commercial loans and commercial

mortgages

5,477,837 75,779 5.55 % 4,177,308 58,495 5.62 %
Residential mortgages 179,077 2,199 4.91 % 180,811 2,451 5.42 %
Consumer loans 197,146 3,600 7.32 % 195,071 3,741 7.69 %
Loans held for sale         244,485       996       1.63 %         145,227       611       1.69 %
Total interest-earning assets         12,453,748       143,834       4.63 %         9,621,025       112,477       4.69 %
Non-interest-earning assets         277,852                         312,596                
Total assets       $ 12,731,600                         9,933,621                
INTEREST-BEARING LIABILITIES
Interest-bearing deposits
NOW accounts 650,747 850 0.52 % 678,092 1,079 0.64 %
Money market accounts 6,460,707 18,248 1.13 % 4,691,067 16,542 1.41 %
Time deposits 921,973 4,102 1.78 % 874,352 4,751 2.18 %
Non-interest-bearing deposits         2,667,529       -       -           1,894,242       -       -  
Total deposits         10,700,956       23,200       0.87 %         8,137,753       22,372       1.10 %
Borrowings         953,012       7,646       3.22 %         892,820       9,015       4.05 %
Total deposits and borrowings         11,653,968       30,846       1.06 %         9,030,573       31,387       1.39 %

Other non-interest-bearing liabilities and shareholders' equity

        1,077,632                         903,048                
Total liabilities and shareholders' equity       $ 12,731,600                         9,933,621                
OTHER DATA
Net interest income / interest rate spread               112,988       3.57 %                 81,090       3.30 %
Net interest margin                       3.64 %                         3.38 %
Ratio of average interest-earning assets
to average interest-bearing liabilities                       106.86 %                         106.54 %
 
           
SIGNATURE BANK
NET INTEREST MARGIN ANALYSIS
(unaudited)
 
 
Six months ended Six months ended
June 30, 2011 June 30, 2010
(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 $ 77,003 115 0.30 % 252,725 291 0.23 %
Investment securities 6,114,910 118,223 3.87 % 4,444,388 93,672 4.22 %

Commercial loans and commercial mortgages

5,259,702 145,243 5.57 % 4,120,361 114,232 5.59 %
Residential mortgages 182,706 4,385 4.80 % 178,932 4,639 5.19 %
Consumer loans 196,688 6,972 7.15 % 189,822 6,807 7.23 %
Loans held for sale     257,758   1,964   1.54 %   171,047   1,616   1.91 %
Total interest-earning assets     12,088,767   276,902   4.62 %   9,357,275   221,257   4.77 %
Non-interest-earning assets     289,994           348,594        
Total assets   $ 12,378,761           9,705,869        
INTEREST-BEARING LIABILITIES
Interest-bearing deposits
NOW accounts 663,034 1,686 0.51 % 685,478 2,200 0.65 %
Money market accounts 6,117,044 35,186 1.16 % 4,458,203 31,813 1.44 %
Time deposits 923,642 8,245 1.80 % 848,177 9,417 2.24 %
Non-interest-bearing deposits     2,553,375   -   -     1,897,213   -   -  
Total deposits     10,257,095   45,117   0.89 %   7,889,071   43,430   1.11 %
Borrowings     1,078,661   15,124   2.83 %   900,740   17,980   4.03 %
Total deposits and borrowings     11,335,756   60,241   1.07 %   8,789,811   61,410   1.41 %

Other non-interest-bearing liabilities
 and shareholders' equity

    1,043,005           916,058        
Total liabilities and shareholders' equity   $ 12,378,761           9,705,869        
OTHER DATA
Net interest income / interest rate spread       216,661   3.55 %       159,847   3.36 %
Net interest margin           3.61 %           3.44 %
Ratio of average interest-earning assets
to average interest-bearing liabilities           106.64 %           106.46 %
 
SIGNATURE BANK
NON-GAAP FINANCIAL MEASURES
(unaudited)
 

Management believes that the presentation of the Bank's tangible common equity ratio and net income and diluted earnings per share excluding the after-tax effect of gains from the sales of SBA interest-only strip securities, 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. 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 and diluted earnings per share (as reported) to net income and diluted earnings per share excluding the after-tax effect of gains from the sales of SBA interest-only strip securities:

 
  Three months ended

June 30,

    Six months ended

June 30,

(dollars in thousands, except per share amounts)   2011     2010     2011     2010
Net income (as reported) $ 36,616   22,269   $ 71,200   44,363
Gains on sales of SBA interest-only strip securities (2,142 ) - (7,434 ) -
Tax effect     942     -       3,270     -
Net income - excluding after-tax effect of gains on sales of SBA
interest-only strip securities   $ 35,416     22,269     $ 67,036     44,363
 
Diluted earnings per share (as reported) $ 0.87 0.54 $ 1.69 1.07
Gains on sales of SBA interest-only strip securities (0.05 ) - (0.18 ) -
Tax effect     0.02     -       0.08     -
Diluted earnings per share - excluding after-tax effect of gains on sales of
SBA interest-only strip securities   $ 0.84     0.54     $ 1.59     1.07

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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