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Investor Relations

Press Release

Signature Bank Reports 2010 Third Quarter Results

Company Release - 10/26/2010 5:00 AM ET
  • Net Income for the 2010 Third Quarter Reached a Record $27.4 Million, or $0.66 Diluted Earnings Per Share, an Increase of $12.2 Million, or 80.4 Percent, from $15.2 Million, or $0.37 Diluted Earnings Per Share, in the 2009 Third Quarter
  • Deposits in the Third Quarter Increased $581.8 Million to $9.05 Billion; Includes Quarterly Core Deposit Growth of $409.4 Million, or 5.2 Percent; Overall Deposit Growth at $1.83 Billion, or 25.3 Percent, Since Year-end 2009
  • Loans for the Quarter Increased $208.2 Million, or 4.4 Percent, to $4.90 Billion at the End of the 2010 Third Quarter
  • Non-Performing Loans Decreased 24 Percent, or $10.8 Million, to $33.8 Million from $44.6 Million Reported in the 2010 Second Quarter
  • Net Interest Margin on a Tax-Equivalent Basis Increased Three Basis Points to 3.41 Percent Versus 3.38 Percent for the 2010 Second Quarter
  • Tier One Leverage, Tier One Risk-Based and Total Risk-Based Capital Ratios Were 8.66 Percent, 13.50 Percent and 14.51 Percent, Respectively, at September 30, 2010; Signature Bank Remains Significantly Above FDIC “Well Capitalized” Standards; Tangible Common Equity Ratio Was 8.41 Percent

NEW YORK--(BUSINESS WIRE)-- Signature Bank (Nasdaq: SBNY), a New York-based full-service commercial bank, today announced results for its third quarter ended September 30, 2010.

Net income for the 2010 third quarter reached a record $27.4 million, or $0.66 diluted earnings per share, compared with $15.2 million, or $0.37 diluted earnings per share, for the 2009 third quarter. The record net income for the 2010 third quarter, compared with the same period last year, is primarily the result of an increase in net interest income, fueled by core deposit growth and continued loan growth. These factors were partially offset by an increase in non-interest expenses.

Net interest income for the 2010 third quarter reached $89.1 million, an increase of $20.5 million, or 29.9 percent, versus the 2009 third quarter primarily due to growth in average interest-earning assets. Total assets were $10.93 billion at September 30, 2010, up $2.33 billion, or 27.1 percent, from $8.6 billion at September 30, 2009. Average assets for the 2010 third quarter reached $10.66 billion, an increase of $2.35 billion, or 28.3 percent, versus the third quarter of last year.

Deposits for the 2010 third quarter rose $581.8 million, or 6.9 percent, to $9.05 billion at September 30, 2010. This includes core deposit growth of $409.4 million, coupled with an increase of $170.6 million in short-term escrow deposits. When compared with deposits at December 31, 2009, overall deposit growth during the first nine months of 2010 totaled $1.83 billion, or 25.3 percent. Since September 30, 2009, overall deposit growth through third quarter-end 2010 was $2.25 billion, or 33.0 percent.

“Once again, Signature Bank reported strong growth by adhering to the business model we established at our inception in 2001. This is evidenced by another quarter of strong financial performance across all facets of our business, including deposit growth, high-quality loan growth, increased net interest margin, lower non-performing loans and record earnings. Our ability to consistently take advantage of the ever-changing financial services landscape by placing our priorities on depositor safety first and foremost has demonstrated to the marketplace the real strengths of our institution. Our reputation as a quality service provider and our strong financial condition have combined to attract core client relationships from our competitors. As a result, we continue to make significant advances in capturing market share throughout the New York MSA. This is a testament to the experienced banking professionals that have joined us throughout our existence,” noted Joseph J. DePaolo, President and Chief Executive Officer of Signature Bank.

Scott A. Shay, Chairman of the Board, noted: “We are pleased to report another quarter of robust growth across the board. At the risk of sounding repetitive from quarter to quarter, we remind shareholders that we are guided by our ‘depositor-first’ philosophy, which requires us to maintain prudent lending standards, a high-quality securities portfolio and a high degree of service to our clients. Our growth fundamentally stems from our recognition as the ‘sleep at night,’ safe bank for New York-area banking clients attempting to navigate through the choppy waters of our unsettled economy. For investors viewing the bank through a financial lens, this is beneficial as well, as exhibited by our exceptional efficiency ratio, our low level of non-performing assets, our increasing return on equity and our strong and stable net interest margin. We remain dedicated to maintaining our focus on our depositors as well as our strict principles for managing the balance sheet.”

Capital

The Bank’s tier one leverage, tier one risk-based, and total risk-based capital ratios were approximately 8.66 percent, 13.50 percent and 14.51 percent, respectively, as of September 30, 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 8.41 percent.

Net Interest Income

Net interest income on a tax-equivalent basis for the 2010 third quarter was $89.1 million, an increase of $20.5 million, or 29.8 percent, when compared with the same period a year ago, primarily due to growth in average interest-earning assets. Average interest-earning assets of $10.38 billion for the third quarter of 2010 were up $2.36 billion, or 29.4 percent, from the 2009 third quarter. Yield on interest-earning assets for the 2010 third quarter decreased 37 basis points, to 4.59 percent, compared with the 2009 third quarter. This decrease was primarily attributable to lower prevailing interest rates and unusually high levels of short-term investments.

Average cost of deposits and average cost of funds for the third quarter of 2010 decreased by 31 and 40 basis points to 1.02 percent and 1.27 percent, respectively, versus the 2009 third quarter. These decreases are predominantly due to lower prevailing interest rates.

Net interest margin on a tax-equivalent basis for the 2010 third quarter was 3.41 percent versus 3.39 percent reported in the third quarter of last year. On a linked quarter basis, net interest margin on a tax-equivalent basis increased three basis points. The linked quarter expansion 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 third quarter of 2010 was $10.4 million, a decrease of $1.4 million, or 12.2 percent, compared to the 2009 third quarter. The decrease was primarily driven by the decrease in non-performing loans. The Bank, however, continued to provide for loan losses in excess of charge-offs to recognize the effect of the challenging economic environment on the Bank’s loan portfolio.

Net charge-offs for the 2010 third quarter were $6.8 million, or 0.56 percent of average loans on an annualized basis, compared with $6.3 million, or 0.55 percent, for the 2010 second quarter and $6.6 million, or 0.66 percent, for the 2009 third quarter.

Non-Interest Income and Non-Interest Expense

Non-interest income for the 2010 third quarter was $11.3 million, an increase of $4.0 million compared to the $7.3 million reported in the 2009 third quarter. The increase was predominantly due to an increase in net gains on sales of securities of $3.5 million and an increase in net gains on sales of loans of $1.1 million. This was partially offset by an increase of $1.5 million in other-than-temporary impairment losses on securities.

Non-interest expense for the third quarter of 2010 was $42.5 million, up $3.9 million, or 10.1 percent, when compared with the $38.6 million reported in the 2009 third quarter. The increase was primarily a result of the addition of new private client banking teams and growth in client activity.

The Bank’s efficiency ratio improved to 42.3 percent for the third quarter of 2010 versus 50.8 percent for the third quarter of 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 $208.2 million, or 4.4 percent, during the 2010 third quarter to $4.9 billion at September 30, 2010, compared to $4.69 billion at June 30, 2010. At September 30, 2010, loans accounted for 44.8 percent of total assets, compared to 45.1 percent at June 30, 2010. Average loans, excluding loans held for sale, reached $4.79 billion in the 2010 third quarter, growing $240.6 million, or 5.3 percent, from the 2010 second quarter. The increase in loans for the quarter was primarily driven by growth in commercial real estate and multi-family loans underwritten within the Bank’s stringent standards.

At September 30, 2010, non-performing loans decreased 24 percent to $33.8 million, representing 0.69 percent of total loans and 0.31 percent of total assets, compared with non-performing loans of $44.6 million, or 0.95 percent of total loans, at June 30, 2010 and $51.2 million, or 1.24 percent of total loans, at September 30, 2009. At the end of the 2010 third quarter, the ratio of allowance for loan losses to total loans was 1.40 percent, versus 1.38 percent at June 30, 2010 and 1.20 percent at September 30, 2009. Additionally, the ratio of allowance for loan losses to non-performing loans, or the coverage ratio, increased to 203 percent for the third quarter of 2010 compared with 145 percent for the second quarter of 2010 and 97 percent for the 2009 third quarter.

Conference Call

Signature Bank’s management will host a conference call to review results of the 2010 third quarter on Tuesday, October 26, 2010, at 10:00 AM ET. All participants should dial 480-629-9723 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 4374779. The replay will be available from approximately 12:00 PM ET on Tuesday, October 26, 2010 through 11:59 PM ET on Friday, October 29, 2010.

About Signature Bank

Signature Bank, member FDIC, is a New York-based full-service commercial bank with 23 private client offices located in the New York metropolitan area, serving the needs of privately owned businesses, their owners and senior managers through dozens of private client groups. The Bank offers a wide variety of business and personal banking products and services as well as investment, brokerage, asset management and insurance products and services through its subsidiary, Signature Securities Group Corporation, a licensed broker-dealer, investment adviser and member NASD/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, 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; (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
September 30,

 

Nine months ended
September 30,

(dollars in thousands, except per share amounts) 2010 2009   2010 2009
INTEREST AND DIVIDEND INCOME
Loans held for sale $ 1,095 765 2,711 1,916
Loans, net 68,229 55,445 193,906 153,995
Securities available-for-sale 46,280 40,717 132,347 114,166
Securities held-to-maturity 4,058 2,926 11,107 8,297
Other short-term investments 469   385     1,317   986  
Total interest income 120,131   100,238     341,388   279,360  
INTEREST EXPENSE
Deposits 22,602 22,130 66,032 63,572
Federal funds purchased and securities sold under
agreements to repurchase 6,001 6,868 18,809 21,334
Federal Home Loan Bank advances 2,423 2,626 7,594 7,792
Other short-term borrowings -   -     1   -  
Total interest expense 31,026   31,624     92,436   92,698  
Net interest income before provision for loan losses 89,105 68,614 248,952 186,662
Provision for loan losses 10,433   11,881     32,794   30,878  
Net interest income after provision for loan losses 78,672   56,733     216,158   155,784  
NON-INTEREST INCOME
Commissions 2,289 2,033 6,560 7,505
Fees and service charges 3,356 3,167 10,403 9,780
Net gains on sales of securities 4,909 1,377 22,752 6,086
Net gains on sales of loans 2,251 1,168 4,608 2,036
Other-than-temporary impairment losses on securities:
Total impairment losses on securities (6,021 ) (12,560 ) (33,334 ) (14,893 )
Portion of loss recognized in other comprehensive income (before taxes) 3,928   11,937     19,817   14,094  
Net impairment losses on securities recognized in earnings (2,093 ) (623 ) (13,517 ) (799 )
Net trading income (loss) 54 (270 ) 65 (961 )
Other income 491   452     1,770   1,370  
Total non-interest income 11,257   7,304     32,641   25,017  
NON-INTEREST EXPENSE
Salaries and benefits 25,775 22,734 75,084 64,617
Occupancy and equipment 3,705 3,713 11,000 10,401
Other general and administrative 12,983   12,116     37,836   36,457  
Total non-interest expense 42,463   38,563     123,920   111,475  
Income before income taxes 47,466 25,474 124,879 69,326
Income tax expense 20,104   10,307     53,155   27,571  
Net income 27,362 15,167 71,724 41,755
Dividends on preferred stock and related discount accretion -   -     -   12,203  
Net income available to common shareholders $ 27,362   15,167     71,724   29,552  
PER COMMON SHARE DATA
Earnings per share – basic (1) $ 0.67 0.37 1.76 0.79
Earnings per share – diluted (1) $ 0.66 0.37 1.73 0.78
 

(1) For the nine months ended September 30, 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
 
 
September 30, December 31,
2010 2009
(dollars in thousands, except per share amounts)   (unaudited)    
ASSETS
Cash and due from banks $ 110,302 95,746
Short-term investments   56,879     12,603  
Total cash and cash equivalents   167,181     108,349  
Securities available-for-sale (pledged $1,835,608 at September 30, 2010
and $1,584,371 at December 31, 2009) 4,813,856 3,837,583
Securities held-to-maturity (fair value $429,243 at September 30, 2010
and $290,608 at December 31, 2009; pledged $297,657 at
September 30, 2010 and $194,336 at December 31, 2009) 421,371 295,984
Federal Home Loan Bank stock 24,354 23,906
Loans held for sale 362,362 293,207
Loans, net 4,826,684 4,320,978
Premises and equipment, net 29,076 31,802
Accrued interest and dividends receivable 51,508 43,193
Other assets   238,582     191,110  
Total assets   $ 10,934,974     9,146,112  
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Non-interest-bearing 2,124,132 1,969,734
Interest-bearing   6,926,343     5,252,812  
Total deposits   9,050,475     7,222,546  
Federal funds purchased and securities sold under agreements
to repurchase 609,000 697,000
Federal Home Loan Bank advances 245,000 305,000
Other short-term borrowings 4,507 6,900
Accrued expenses and other liabilities   106,174     111,007  
Total liabilities   10,015,156     8,342,453  
Shareholders’ equity
Preferred stock, par value $.01 per share; 61,000,000 shares authorized; none
issued at September 30, 2010 and December 31, 2009
Common stock, par value $.01 per share; 64,000,000 shares authorized; - -
41,012,910 and 40,619,557 shares issued and outstanding
at September 30, 2010 and December 31, 2009 410 406
Additional paid-in capital 680,518 668,441
Retained earnings 243,188 171,464
Net unrealized depreciation on securities, net of tax   (4,298 )   (36,652 )
Total shareholders' equity   919,818     803,659  
Total liabilities and shareholders' equity   $ 10,934,974     9,146,112  


SIGNATURE BANK  
FINANCIAL SUMMARY, CAPITAL RATIOS, ASSET QUALITY
(unaudited)
 
 

Three months ended
September 30,

 

Nine months ended
September 30,

(dollars in thousands, except ratios and per share amounts) 2010 2009   2010 2009
PER COMMON SHARE
Net income - basic (1) $ 0.67 $ 0.37 $ 1.76 $ 0.79
Net income - diluted (1) $ 0.66 $ 0.37 $ 1.73 $ 0.78
Average shares outstanding - basic 41,005 40,604 40,853 37,527
Average shares outstanding - diluted 41,623 41,013 41,512 37,906
Book value $ 22.43 $ 19.05 $ 22.43 $ 19.05
 
SELECTED FINANCIAL DATA
Return on average total assets 1.02% 0.72% 0.96% 0.72%
Return on average shareholders' equity 12.02% 7.97% 11.13% 7.59%
Return on average common shareholders' equity (1) 12.02% 7.97% 11.13% 5.80%
Efficiency ratio (2) 42.31% 50.80% 44.01% 52.66%

Efficiency ratio excluding net impairment losses
 on securities recognized in earnings (2)

41.45% 50.38% 41.99% 52.46%

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

43.53% 51.31% 45.50% 54.01%
Yield on interest-earning assets 4.59% 4.96% 4.70% 5.06%
Yield on interest-earning assets, tax-equivalent basis (3) 4.59% 4.96% 4.70% 5.06%
Cost of deposits and borrowings 1.27% 1.67% 1.36% 1.78%
Net interest margin 3.41% 3.39% 3.43% 3.38%
Net interest margin, tax-equivalent basis (3) 3.41% 3.39% 3.43% 3.38%
 

(1) For the nine months ended September 30, 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.

 
   

September 30,
2010

June 30,
2010

 

December 31,
2009

September 30,
2009

CAPITAL RATIOS
Tangible common equity (4) 8.41% 8.54% 8.79% 9.00%
Tier one leverage 8.66% 8.98% 9.39% 9.80%
Tier one risk-based 13.50% 13.55% 13.57% 14.46%
Total risk-based 14.51% 14.54% 14.47% 15.34%
 
ASSET QUALITY
Non-performing loans $ 33,769 $ 44,600 $ 46,606 $ 51,246
Allowance for loan losses $ 68,436 $ 64,793 $ 55,120 $ 49,701
Allowance for loan losses to non-performing loans 202.66% 145.28% 118.27% 96.99%
Allowance for loan losses to total loans 1.40% 1.38% 1.26% 1.20%
Non-performing loans to total loans 0.69% 0.95% 1.07% 1.24%
Quarterly net charge-offs to average loans (annualized) 0.56% 0.55% 0.61% 0.66%
 

(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.

 


SIGNATURE BANK  
NET INTEREST MARGIN ANALYSIS
(unaudited)
 
 
Three months ended Three months ended
September 30, 2010 September 30, 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 $ 194,023 172 0.35 % 181,840 86 0.19 %
Investment securities 5,119,367 50,635 3.96 % 3,726,228 43,942 4.72 %
Commercial loans and commercial

mortgages (1)

4,410,978 62,473 5.62 % 3,608,823 50,198 5.52 %
Residential mortgages 186,368 2,330 5.00 % 180,204 2,432 5.40 %
Consumer loans 196,424 3,426 6.92 % 168,515 2,847 6.70 %
Loans held for sale 274,489 1,095 1.58 %   156,837 765   1.94 %
Total interest-earning assets 10,381,649 120,131 4.59 %   8,022,447 100,270   4.96 %
Non-interest-earning assets 280,363       288,350    
Total assets $ 10,662,012       8,310,797    
INTEREST-BEARING LIABILITIES
Interest-bearing deposits
NOW accounts 761,065 934 0.49 % 673,079 1,261 0.74 %
Money market accounts 5,053,881 16,890 1.33 % 3,324,355 15,465 1.85 %
Time deposits 939,601 4,778 2.02 % 912,074 5,404 2.35 %
Non-interest-bearing deposits 2,031,710 - -     1,699,671 -   -  
Total deposits 8,786,257 22,602 1.02 %   6,609,179 22,130   1.33 %
Borrowings 915,603 8,424 3.65 %   908,685 9,494   4.15 %
Total deposits and borrowings 9,701,860 31,026 1.27 %   7,517,864 31,624   1.67 %
Other non-interest-bearing liabilities
and shareholders' equity 960,152       792,933    
Total liabilities and shareholders' equity $ 10,662,012       8,310,797    
OTHER DATA
Tax-equivalent basis
Net interest income / interest rate spread 89,105 3.32 % 68,646 3.29 %
Net interest margin     3.41 %       3.39 %
Tax-equivalent adjustment / effect
Net interest income / interest rate spread - - (32 ) -
Net interest margin     -         -  
As reported
Net interest income / interest rate spread 89,105 3.32 % 68,614 3.29 %
Net interest margin     3.41 %       3.39 %
Ratio of average interest-earning assets
to average interest-bearing liabilities     107.01 %       106.71 %
(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)
 
 
Nine months ended Nine months ended
September 30, 2010 September 30, 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 $ 232,943 463 0.27 % 129,260 200 0.21 %
Investment securities 4,671,854 144,308 4.12 % 3,398,531 123,249 4.84 %
Commercial loans and commercial

mortgages (1)

4,218,298 176,705 5.60 % 3,379,712 138,671 5.49 %
Residential mortgages 181,438 6,969 5.12 % 179,512 7,414 5.51 %
Consumer loans 192,047 10,233 7.12 % 158,409 8,009 6.76 %
Loans held for sale 205,906 2,711   1.76 %   133,334 1,916   1.92 %
Total interest-earning assets 9,702,486 341,389   4.70 %   7,378,758 279,459   5.06 %
Non-interest-earning assets 325,600       298,204    

Total assets

$ 10,028,086       7,676,962    
INTEREST-BEARING LIABILITIES
Interest-bearing deposits
NOW accounts 710,951 3,134 0.59 % 572,353 3,748 0.88 %
Money market accounts 4,658,945 48,703 1.40 % 2,988,316 43,725 1.96 %
Time deposits 878,987 14,195 2.16 % 830,757 16,099 2.59 %
Non-interest-bearing deposits 1,942,538 -   -     1,599,520 -   -  
Total deposits 8,191,421 66,032   1.08 %   5,990,946 63,572   1.42 %
Borrowings 905,749 26,404   3.90 %   958,726 29,126   4.06 %
Total deposits and borrowings 9,097,170 92,436   1.36 %   6,949,672 92,698   1.78 %
Other non-interest-bearing liabilities

and shareholders' equity

930,916       727,290    
Total liabilities and shareholders' equity $ 10,028,086       7,676,962    
OTHER DATA
Tax-equivalent basis
Net interest income / interest rate spread 248,953 3.34 % 186,761 3.28 %
Net interest margin     3.43 %       3.38 %
Tax-equivalent adjustment / effect
Net interest income / interest rate spread (1 ) - (99 ) -
Net interest margin     -         -  
As reported
Net interest income / interest rate spread 248,952 3.34 % 186,662 3.28 %
Net interest margin     3.43 %       3.38 %
Ratio of average interest-earning assets
to average interest-bearing liabilities     106.65 %       106.17 %
(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. 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

September 30,

  Nine months ended

September 30,

(dollars in thousands, except per share amounts) 2010   2009     2010   2009  
Net income (as reported) $ 27,362 15,167 $ 71,724 41,755
Net gains on sales of securities (4,909 ) (1,377 ) (22,752 ) (6,086 )
Net impairment losses on securities recognized in earnings 2,093 623 13,517 799
Tax effect 1,217   338     4,062   2,343  
Net income - excluding after tax effect of net gains on sales of securities
and net impairment losses on securities recognized in earnings $ 25,763   14,751     $ 66,551   38,811  
Diluted earnings per share - excluding after tax effect of net gains on sales of
securities and net impairment losses on securities recognized in earnings $ 0.62 0.36 $ 1.60 1.02

Source: Signature Bank

Contact:

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