Signature Bank
Jan 21, 2016

Signature Bank Reports 2015 Fourth Quarter and Year-End Results

Average Deposit Growth, Loan Growth and Net Income All Reach Record Levels in 2015

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, 2015.

Net income for the 2015 fourth quarter reached a record $103.0 million, or $2.01 diluted earnings per share, compared with $81.4 million, or $1.60 diluted earnings per share, for the 2014 fourth quarter. The record net income for the 2015 fourth quarter, when compared with the same period last year, is primarily the result of an increase in net interest income, fueled by strong average deposit and loan growth. These factors were partially offset by an increase in non-interest expenses.

Net interest income for the 2015 fourth quarter rose $52.6 million, or 24.4 percent, to $268.3 million, compared with the fourth quarter of 2014. This increase is primarily due to growth in average interest-earning assets. Total assets reached $33.45 billion at December 31, 2015, expanding $6.13 billion, or 22.4 percent, from $27.32 billion at December 31, 2014. Average assets for the 2015 fourth quarter reached $32.72 billion, an increase of $5.85 billion, or 21.8 percent, versus the comparable period a year ago.

Deposits for the 2015 fourth quarter rose $162.6 million, or 0.6 percent, to $26.77 billion at December 31, 2015. Overall deposit growth in 2015 was 18.4 percent, or $4.15 billion, when compared with deposits at the end of 2014. Excluding short-term escrow and brokered deposits of $3.93 billion at year-end 2015 and $3.08 billion at year-end 2014, core deposits increased $3.30 billion, or 16.9 percent, in 2015. Average total deposits for 2015 were $25.29 billion, growing a record $5.36 billion, or 26.9 percent, versus average total deposits of $19.93 billion for 2014.

"2015 was another record year in which Signature Bank demonstrated its ability to deliver exemplary results. Once again, we set records across all of our key metrics, including deposits, loans and earnings, reporting our eighth consecutive year of record earnings. And, for the first time, the Bank earned more than $100 million in one quarter," explained Joseph J. DePaolo, President and Chief Executive Officer.

"The care, attention and advocacy for the Bank's clients -- delivered by our committed colleagues -- continue to draw rave client reviews while furthering our business development activities. We believe that once again in 2015, we have advanced the virtuous culture we carefully created; one where talented, caring colleagues - our real assets - provide clients exceptional service. During our nearly 15 years in operation, we built a strong franchise that boasts some of the highest returns on equity and assets nationwide, while growing at a phenomenal rate in both deposits and loans. This translates into a premium valuation for our shareholders, which continues to accrue. All this was accomplished without a single acquisition," DePaolo said.

Signature Bank Chairman of the Board Scott A. Shay, noted: "As we reflect upon another year of records and firsts, in addition to delivering record-breaking performance, the Bank set another first when we earned a new rating from Kroll Bond Rating Agency, placing it among the top most creditworthy banks in their universe of covered U.S. banks.

"As we fast approach our 15-year anniversary in the spring of 2016, we recognize that while the nation has endured a financial crisis stemming from both a lack of trust and a lack of appropriate focus on basic credit standards and care for creditors, we have stood by our founding safety-first, client-centric philosophy for our depositors. Time and again, this has set Signature Bank apart. While the industry experiences tighter regulation and grapples with the advent of disruptive financial technology entrants seeking to take advantage of the changing nature of finance, more shifting is likely. For us, the more we re-emphasize our focus on safety first and foremost, the more confident we are that our depositors and shareholders will continue to flourish. We pledge to continue to stay true to our founding principles as the financial industry faces ongoing challenges."

Capital

The Bank's Tier 1 leverage, common equity Tier 1 risk-based, Tier 1 risk-based and total risk-based capital ratios were approximately 8.87 percent, 11.33 percent, 11.33 percent and 12.10 percent, respectively, as of December 31, 2015. 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 8.65 percent. The Bank defines the 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.

Net Interest Income

Net interest income for the 2015 fourth quarter was $268.3 million, up $52.6 million, or 24.4 percent, when compared with the same period last year, primarily due to growth in average interest-earning assets. Average interest-earning assets of $32.31 billion for the 2015 fourth quarter represent an increase of $5.80 billion, or 21.9 percent, from the 2014 fourth quarter. The yield on interest-earning assets for the 2015 fourth quarter remained stable, at 3.71 percent, compared to the fourth quarter of last year.

Average cost of deposits and average cost of funds for the 2015 fourth quarter decreased by six and seven basis points to 0.39 percent and 0.46 percent, respectively, versus the comparable period a year ago. These decreases were predominantly due to the continued effect of the prolonged low interest rate environment.

Net interest margin for the 2015 fourth quarter was 3.30 percent versus 3.23 percent reported in the 2014 fourth quarter and 3.22 percent in the 2015 third quarter. Excluding loan prepayment penalty income in both quarters, linked quarter core margin increased four basis points to 3.15 percent. The linked quarter increase in net interest margin and core net interest margin is attributable to an increase in loan prepayment penalty income and the deployment of excess cash balances.

Provision for Loan Losses

The Bank's provision for loan losses for the fourth quarter of 2015 was $16.7 million, an increase of $9.1 million, or 119.2 percent, versus the 2014 fourth quarter. The increase was primarily due to an increase in loan growth and additional reserves for taxi medallion loans.

Net charge offs for the 2015 fourth quarter were $4.6 million, or 0.08 percent of average loans on an annualized basis, versus $5.5 million, or 0.10 percent, for the 2015 third quarter and net recoveries of $181,000, or 0.00 percent, for the 2014 fourth quarter.

Non-Interest Income and Non-Interest Expense

Non-interest income for the 2015 fourth quarter was $9.3 million, up $1.9 million from $7.4 million reported in the fourth quarter of last year. The increase is predominantly due to a decrease of $1.1 million in other losses from the amortization of low income housing tax credit investments.

Non-interest expense for the 2015 fourth quarter was $88.4 million, an increase of $12.5 million, or 16.4 percent, versus $76.0 million reported in the 2014 fourth quarter. The increase was primarily a result of new private client banking teams joining and our continued investment in Signature Financial, as well as an increase in costs in our risk management and compliance related activities.

The Bank's efficiency ratio improved to 31.85 percent for the fourth quarter of 2015 compared with 34.1 percent for the same period a year ago. The improvement was primarily due to growth in net interest income.

Loans

Loans, excluding loans held for sale, expanded $1.56 billion, or 7.0 percent, during the 2015 fourth quarter to $23.79 billion, versus $22.23 billion at September 30, 2015. At December 31, 2015, loans accounted for 71.1 percent of total assets, compared with 69.6 percent at the end of the 2015 third quarter and 65.4 percent at the end of 2014. Average loans, excluding loans held for sale, reached $22.96 billion in the 2015 fourth quarter, growing $1.57 billion, or 7.4 percent, from the 2015 third quarter and $5.90 billion, or 34.6 percent, from the fourth quarter of 2014. The increase in loans for the quarter and the year was primarily driven by growth in commercial real estate and multi-family loans as well as specialty finance.

At December 31, 2015, non-accrual loans were $71.9 million, representing 0.30 percent of total loans and 0.21 percent of total assets, versus non-accrual loans of $59.6 million, or 0.27 percent of total loans, at September 30, 2015 and $21.0 million, or 0.12 percent of total loans, at December 31, 2014. At the end of the 2015 fourth quarter, the ratio of allowance for loan and lease losses to total loans was 0.82 percent, versus 0.82 percent at September 30, 2015 and 0.92 percent at December 31, 2014. Additionally, the ratio of allowance for loan and lease losses to non-accrual loans, or the coverage ratio, was 271 percent for the 2015 fourth quarter versus 307 percent for the 2015 third quarter and 783 percent for the 2014 fourth quarter.

Conference Call

Signature Bank's management will host a conference call to review results of the 2015 fourth quarter and year-end on Thursday, January 21, 2016, at 10:00 AM ET. All participants should dial 866-359-8135 at least ten minutes prior to the start of the call and reference conference ID #28287526. International callers should dial 901-300-3484.

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 "Investor Information", then under "Company News," select "Conference Calls," to access the link to the call. To listen to a telephone replay of the conference call, please dial 800-585-8367 or 404-537-3406 and enter conference ID #28287526. The replay will be available from approximately 1:00 PM ET on Thursday, January 21, 2016 through 11:59 PM ET on Monday, January 25, 2016.

About Signature Bank

Signature Bank, member FDIC, is a New York-based full-service commercial bank with 29 private client offices throughout the New York metropolitan area, including those in Manhattan, Brooklyn, Westchester, Long Island, Queens, the Bronx, Staten Island and Connecticut. 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. Its specialty finance subsidiary, Signature Financial, LLC, provides equipment finance and leasing. Signature Securities Group Corporation, a wholly owned Bank subsidiary, is a licensed broker-dealer, investment adviser and member FINRA/SIPC, offering investment, brokerage, asset management and insurance products and services.

Signature Bank ranked sixth on Forbes' Best and Worst Banks in America 2016 list and ranked third on leading trade journal Bank Director's 2015 Bank Performance Scorecard for banks with assets between $5 and $50 billion.

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. You should not place undue reliance on those statements because they are subject to numerous risks and uncertainties relating to our operations and business environment, all of which are difficult to predict and may be beyond our control. 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 teams and other hires, new office openings and business strategy. These statements often include words such as "may," "believe," "expect," "anticipate," "intend," "potential," "opportunity," "could," "project," "seek," "should," "will," would," "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 and can change as a result of many possible events or factors, not all of which are known to us or in our control. These factors include but are not limited to: (i) prevailing economic conditions; (ii) changes in interest rates, loan demand, real estate values and competition, any of 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 monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System; (v) changes in the banking and other financial services regulatory environment and (vi) competition for qualified personnel and desirable office locations. Although we believe that these forward-looking statements are based on reasonable assumptions, beliefs and expectations, if a change occurs or our beliefs, assumptions and expectations were incorrect, our business, financial condition, liquidity or results of operations may vary materially from those expressed in our forward-looking statements. 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 INCOME
(unaudited)
 
 
Three months ended

December 31,

Twelve months ended

December 31,

(dollars in thousands, except per share amounts)     2015     2014         2015     2014  
INTEREST AND DIVIDEND INCOME
Loans held for sale $ 1,487 1,308 3,885 3,338
Loans and leases, net 234,893 178,932 839,782 652,285
Securities available-for-sale 48,328 49,080 191,661 193,629
Securities held-to-maturity 16,420 17,302 66,633 69,762
Other short-term investments     1,270     1,304         4,987     5,259  
  Total interest income     302,398     247,926         1,106,948     924,273  
INTEREST EXPENSE
Deposits 26,927 25,073 102,905 93,494
Federal funds purchased and securities sold under
agreements to repurchase 3,420 4,009 13,885 16,965
Federal Home Loan Bank borrowings     3,712     3,141         13,057     12,663  
  Total interest expense     34,059     32,223         129,847     123,122  
Net interest income before provision for loan and lease losses 268,339 215,703 977,101 801,151
Provision for loan and lease losses     16,686     7,613         44,914     31,110  
Net interest income after provision for loan and lease losses     251,653     208,090         932,187     770,041  
NON-INTEREST INCOME
Commissions 3,342 2,604 11,418 10,649
Fees and service charges 5,166 4,836 21,515 19,250
Net gains on sales of securities 338 455 1,209 5,272
Net gains on sales of loans 1,213 2,073 7,107 5,377
Other-than-temporary impairment losses on securities:
Total impairment losses on securities (605 ) (306 ) (2,264 ) (3,930 )
Portion recognized in other comprehensive income (before taxes)   324     (104 )       1,301     2,206  
Net impairment losses on securities recognized in earnings (281 ) (410 ) (963 ) (1,724 )
Other losses     (433 )   (2,184 )       (3,182 )   (3,842 )
  Total non-interest income     9,345     7,374         37,104     34,982  
NON-INTEREST EXPENSE
Salaries and benefits 58,537 51,266 230,081 196,679
Occupancy and equipment 7,054 5,758 26,024 22,490
Data processing 4,453 3,405 16,649 15,012
FDIC assessment fees 4,562 3,340 15,885 12,449
Professional fees 2,136 2,603 9,460 8,192
Other general and administrative     11,689     9,593         43,115     38,422  
  Total non-interest expense     88,431     75,965         341,214     293,244  
Income before income taxes 172,567 139,499 628,077 511,779
Income tax expense     69,579     58,089         255,012     215,075  
Net income   $ 102,988     81,410         373,065     296,704  
PER COMMON SHARE DATA
Earnings per share - basic $ 2.02 1.62 7.35 6.05
Earnings per share - diluted $ 2.01 1.60 7.27 5.95
 
SIGNATURE BANK    
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
 
 
December 31, December 31,
2015 2014
(dollars in thousands, except shares and per share amounts)   (unaudited)    
ASSETS
Cash and due from banks $ 311,254 274,247
Short-term investments     30,292     24,831
Total cash and cash equivalents     341,546     299,078
Securities available-for-sale 6,240,761 6,073,459
Securities held-to-maturity (fair value $2,137,913 at December 31, 2015
and $2,222,177 at December 31, 2014) 2,133,144 2,208,551
Federal Home Loan Bank stock 154,405 86,338
Loans held for sale 456,358 548,297
Loans and leases, net 23,597,541 17,693,316
Premises and equipment, net 44,161 40,996
Accrued interest and dividends receivable 94,006 79,687
Other assets     388,623     288,918
Total assets   $ 33,450,545     27,318,640
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Non-interest-bearing $ 8,567,300 7,064,959
Interest-bearing     18,206,623     15,555,316
Total deposits     26,773,923     22,620,275
Federal funds purchased and securities sold under agreements
to repurchase 817,000 715,000
Federal Home Loan Bank borrowings 2,720,163 1,335,163
Accrued expenses and other liabilities     247,625     151,964
Total liabilities     30,558,711     24,822,402
Shareholders' equity
Preferred stock, par value $.01 per share; 61,000,000 shares authorized;
none issued at December 31, 2015 and December 31, 2014 - -
Common stock, par value $.01 per share; 64,000,000 shares authorized;
51,929,064 shares issued and 50,901,408 shares outstanding at December 31, 2015;
51,398,685 shares issued and 50,317,609 shares outstanding at December 31, 2014 509 503
Additional paid-in capital 1,399,501 1,348,661
Retained earnings 1,507,011 1,133,950
Treasury stock, at cost; 41,087 shares at December 31, 2015 and none
at December 31, 2014 (5,684 ) -
Net unrealized gains (losses) on securities, net of tax     (9,503 )   13,124
Total shareholders' equity     2,891,834     2,496,238
Total liabilities and shareholders' equity   $ 33,450,545     27,318,640
 
SIGNATURE BANK                
FINANCIAL SUMMARY, CAPITAL RATIOS, ASSET QUALITY
(unaudited)
 
 

Three months ended
December 31,

Twelve months ended
December 31,

(in thousands, except ratios and per share amounts)     2015     2014     2015     2014
PER COMMON SHARE
Net income - basic $ 2.02 $ 1.62 $ 7.35 $ 6.05
Net income - diluted $ 2.01 $ 1.60 $ 7.27 $ 5.95
Average shares outstanding - basic 50,901 50,316 50,739 49,066
Average shares outstanding - diluted 51,341 50,936 51,302 49,870
Book value $ 56.81 $ 49.61 $ 56.81 $ 49.61
 
SELECTED FINANCIAL DATA
Return on average total assets 1.25 % 1.20 % 1.23 % 1.20 %
Return on average shareholders' equity 14.30 % 13.19 % 13.85 % 13.81 %
Efficiency ratio (1) 31.85 % 34.05 % 33.64 % 35.07 %

Efficiency ratio excluding net gains on sales of securities
  and net impairment losses on securities recognized
  in earnings (1) (2)

31.85 % 34.06 % 33.65 % 35.22 %
Yield on interest-earning assets 3.71 % 3.71 % 3.69 % 3.80 %
Cost of deposits and borrowings 0.46 % 0.53 % 0.47 % 0.55 %
Net interest margin 3.30 % 3.23 % 3.26 % 3.29 %
(1)   The efficiency ratio is calculated by dividing non-interest expense by the sum of net interest income before provision for loan and lease losses and non-interest income.
 
(2) The efficiency ratio excluding net gains on sales of securities and net impairment losses on securities recognized in earnings 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. This ratio is a metric used by management to evaluate the performance of the Bank's core business activities.
     
   

December 31,
2015

 

September 30,
2015

 

December 31,
2014

CAPITAL RATIOS
Tangible common equity (3) 8.65 % 8.84 % 9.14 %
Tier 1 leverage 8.87 % 8.95 % 9.25 %
Common equity Tier 1 risk-based (4) 11.33 % 11.58 % -
Tier 1 risk-based 11.33 % 11.58 % 13.49 %
Total risk-based 12.10 % 12.34 % 14.39 %
 
ASSET QUALITY
Non-accrual loans $ 71,905 $ 59,648 $ 21,008
Allowance for loan and lease losses $ 195,023 $ 182,951 $ 164,392
Allowance for loan and lease losses to non-accrual loans 271.22 % 306.72 % 782.52 %
Allowance for loan and lease losses to total loans 0.82 % 0.82 % 0.92 %
Non-accrual loans to total loans 0.30 % 0.27 % 0.12 %
Quarterly net (charge-offs) recoveries to average loans, annualized (0.08 )% (0.10 )% 0.00 %
(3)   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 1 capital related ratios, to evaluate capital levels.
 
(4) As part of the final rules implementing Basel III regulatory capital reforms, a new common equity Tier 1 risk-based capital ratio was added to existing minimum capital requirements as of January 1, 2015.
 
SIGNATURE BANK              
NET INTEREST MARGIN ANALYSIS
(unaudited)
 
 
Three months ended Three months ended
December 31, 2015 December 31, 2014
(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 $ 320,199 230 0.28% 602,099 374 0.25%
Investment securities 8,574,256 65,788 3.07% 8,421,847 67,312 3.20%
Commercial loans, mortgages and leases 22,638,929 231,666 4.06% 16,719,972 175,687 4.17%
Residential mortgages and consumer loans 318,670 3,227 4.02% 340,034 3,245 3.79%
Loans held for sale   454,122   1,487   1.30%     418,082   1,308   1.24%
Total interest-earning assets   32,306,176   302,398   3.71%     26,502,034   247,926   3.71%
Non-interest-earning assets   417,596             375,139        
Total assets   $ 32,723,772             26,877,173        
INTEREST-BEARING LIABILITIES
Interest-bearing deposits
NOW and interest-bearing demand $ 2,677,008 2,852 0.42% 1,612,566 1,552 0.38%
Money market 14,674,558 21,518 0.58% 12,775,689 20,472 0.64%
Time deposits 1,000,999 2,557 1.01% 1,063,767 3,049 1.14%
Non-interest-bearing demand deposits   8,736,667   -   -     6,694,408   -   -
Total deposits   27,089,232   26,927   0.39%     22,146,430   25,073   0.45%
Borrowings   2,497,568   7,132   1.13%     2,078,967   7,150   1.36%
Total deposits and borrowings   29,586,800   34,059   0.46%     24,225,397   32,223   0.53%
Other non-interest-bearing liabilities
and shareholders' equity   3,136,972             2,651,776        
Total liabilities and shareholders' equity   $ 32,723,772             26,877,173        
OTHER DATA
Net interest income / interest rate spread 268,339 3.25% 215,703 3.18%
Net interest margin 3.30% 3.23%
Ratio of average interest-earning assets
to average interest-bearing liabilities 109.19% 109.40%
 
SIGNATURE BANK              
NET INTEREST MARGIN ANALYSIS
(unaudited)
 
 
Twelve months ended Twelve months ended
December 31, 2015 December 31, 2014
(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 $ 403,403 1,013 0.25 % 387,213 928 0.24 %
Investment securities 8,530,863 262,268 3.07 % 8,198,481 267,722 3.27 %
Commercial loans, mortgages and leases 20,376,793 827,273 4.06 % 15,069,896 639,014 4.24 %
Residential mortgages and consumer loans 327,113 12,509 3.82 % 344,356 13,271 3.85 %
Loans held for sale     324,048   3,885   1.20 %     340,809   3,338   0.98 %
Total interest-earning assets     29,962,220   1,106,948   3.69 %     24,340,755   924,273   3.80 %
Non-interest-earning assets     366,592             365,143        
Total assets   $ 30,328,812             24,705,898        
INTEREST-BEARING LIABILITIES
Interest-bearing deposits
NOW and interest-bearing demand $ 2,208,678 8,961 0.41 % 1,276,342 4,900 0.38 %
Money market 14,109,742 83,314 0.59 % 11,592,917 75,974 0.66 %
Time deposits 969,556 10,630 1.10 % 1,155,702 12,620 1.09 %
Non-interest-bearing demand deposits     8,005,589   -   -       5,906,454   -   -  
Total deposits     25,293,565   102,905   0.41 %     19,931,415   93,494   0.47 %
Borrowings     2,109,763   26,942   1.28 %     2,443,596   29,628   1.21 %
Total deposits and borrowings     27,403,328   129,847   0.47 %     22,375,011   123,122   0.55 %
Other non-interest-bearing liabilities
and shareholders' equity     2,925,484             2,330,887        
Total liabilities and shareholders' equity   $ 30,328,812             24,705,898        
OTHER DATA
Net interest income / interest rate spread 977,101 3.22 % 801,151 3.25 %
Net interest margin 3.26 % 3.29 %
Ratio of average interest-earning assets
to average interest-bearing liabilities 109.34 % 108.79 %
 
SIGNATURE BANK
NON-GAAP FINANCIAL MEASURES
(unaudited)
 
Management believes that the presentation of certain 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 include the Bank's (i) 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, (ii) tangible common equity ratio, (iii) efficiency ratio excluding net gains on sales of securities and net impairment losses on securities recognized in earnings, and (iv) core net interest margin excluding loan prepayment penalty income. 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 securities and net impairment losses on securities recognized in earnings:
 

Three months ended
December 31,

   

Twelve months ended
December 31,

(dollars in thousands, except per share amounts)

    2015     2014       2015     2014  
Net income (as reported) $ 102,988   81,410 373,065   296,704
Net (gains) on sales of securities (338 ) (455 ) (1,209 ) (5,272 )
Net impairment losses on securities recognized in earnings 281 410 963 1,724
Tax effect     23     18       100     1,500  
Net income - excluding after tax effect of net (gains) on sales of securities
and net impairment losses on securities recognized in earnings   $ 102,954     81,383       372,919     294,656  
 
Diluted earnings per share (as reported) $ 2.01 1.60 7.27 5.95
Net (gains) on sales of securities (0.01 ) (0.01 ) (0.02 ) (0.11 )
Net impairment losses on securities recognized in earnings 0.01 0.01 0.02 0.04
Tax effect     -     -       -     0.03  
Diluted earnings per share - excluding after tax effect of net (gains) on sales
of securities and net impairment losses on securities recognized in earnings   $ 2.01     1.60       7.27     5.91  
 
 
The following table reconciles net interest margin (as reported) to core net interest margin excluding loan prepayment penalty income:
 
 
Three months ended

December 31,

  Twelve months ended

December 31,

      2015     2014       2015     2014  
Net interest margin (as reported) 3.30 % 3.23 % 3.26 % 3.29 %
Margin contribution from loan prepayment penalty income     (0.15 )%   (0.10 )%     (0.11 )%   (0.11 )%
Core net interest margin - excluding loan prepayment penalty income     3.15 %   3.13 %     3.15 %   3.18 %
 

Signature Bank
Investor Contact:
Eric R. Howell, 646-822-1402
Executive Vice President - Corporate & Business Development
ehowell@signatureny.com
or
Media Contact:
Susan J. Lewis, 646-822-1825
slewis@signatureny.com

Source: Signature Bank

News Provided by Acquire Media