Skip to main content
Investor Relations

Press Release

Signature Bank Reports 2008 Third Quarter Results

-- Net Income for the Quarter Was $9.2 Million, or $0.29 Diluted Earnings Per Share; Excluding the After-Tax Effect of an $8.0 Million Other Than Temporary Impairment Write-Down on a Single Lehman Brothers Senior Debenture, Net Income for the 2008 Third Quarter Was $13.6 Million, or $0.44 Diluted Earnings Per Share, Versus Net Income of $10.7 Million or $0.36 Diluted Earnings Per Share for the 2007 Third Quarter

-- Deposits Grew $99.2 Million in the Third Quarter, Totaling $4.97 Billion; Includes Core Deposit Growth of $141.0 Million and a Decrease of $41.8 Million in Short-term Escrow Deposits

-- Loans Rose $377.4 Million, or 13.9 Percent, to $3.08 Billion for the Quarter; Growth Attributed to Commercial Real Estate and Multi-Family Loans

-- Non-Performing Loans Remained Stable Compared to Prior Quarter at $30.8 Million and Decreased as a Percentage of Total Loans to 1.0 Percent

-- Net Interest Margin on a Tax-Equivalent Basis Expanded 12 Basis Points Compared with the 2008 Second Quarter, Reaching All-Time High of 3.26 Percent

-- Bank Raised $148.0 Million in Public Offering, Increasing Tier 1 Leverage Capital Ratio to 9.64 Percent and Total Risk Weighted Capital to 16.11 Percent

-- The Bank Filed an Application for Approximately $120.0 Million Under the TARP Voluntary Capital Purchase Program

Company Release - 10/30/2008 5:00 AM ET

NEW YORK--(BUSINESS WIRE)--

Signature Bank (Nasdaq: SBNY), a New York-based full-service commercial bank, today announced results for its 2008 third quarter ended September 30, 2008.

Net income for the quarter was $9.2 million, or $0.29 diluted earnings per share, compared with net income of $10.7 million, or $0.36 diluted earnings per share, for the 2007 third quarter. The 2008 third quarter results include an $8.0 million other than temporary impairment write-down on a single Lehman Brothers senior debenture. Excluding the after-tax effect of the impairment write-down on this debenture, net income for the quarter would have been $13.6 million, or $0.44 diluted earnings per share.

The growth in net income for the quarter when compared to the 2007 third quarter is attributable to several factors, including an increase in loans as a percentage of assets, deposit growth, net interest margin expansion and increased non-interest income (excluding the securities write-down). These factors were partially offset by an increase in the provision for loan losses.

Net interest income for the third quarter of 2008 reached $50.1 million, up $11.9 million, or 31.0 percent, over the same period last year. Total assets reached $6.70 billion at September 30, 2008, an increase of $1.09 billion, or 19.3 percent, when compared with $5.61 billion at the end of the 2007 third quarter.

Deposits grew $99.2 million in the 2008 third quarter to $4.97 billion at September 30, 2008. This includes core deposit growth of $141.0 million and a decrease of $41.8 million in short-term escrow deposits. Deposits for the year have increased $453.4 million, or 10.0 percent, when compared to deposits at December 31, 2007.

"Despite the unprecedented events occurring of late, Signature Bank again realized strong results across our key metrics. During the 2008 third quarter, we grew deposits, loans, margins and core earnings. In keeping with Signature Bank's unwavering commitment to its depositors, we further strengthened our already strong capital position with the successful completion of a $148.0 million public offering of common stock during the third quarter to facilitate our future growth," said Joseph J. DePaolo, Signature Bank's President and Chief Executive Officer.

"Because of our prudent capital management and the well diversified portfolio we have built over the years, our exposure has been limited during this turbulent time, particularly when compared with the situation that many other financial institutions now face. We are encouraged that our clients, both old and new, continue to recognize Signature Bank as a safe place to deposit their funds," DePaolo explained.

Scott A. Shay, Chairman of the Board, remarked about the Bank's financial strength:

"It is important to emphasize that Signature Bank was, in fact, in a strong capital position prior to the completion of our public offering in September 2008. The $148.0 million raised exceeded our goals, and clearly demonstrates the investment community's confidence in our bank's model, strategy and ability to deliver. Maintaining a strong balance sheet for our depositors has always been the first principle of the Bank's financial health and well being, and has led us to sustain our financially sound position in spite of economic downturns. As a very well capitalized bank, with an exceptionally strong balance sheet, we believe we are well positioned to take advantage of opportunities in this current environment to expand our presence in the metropolitan New York area."

Net Interest Income

Net interest income on a tax-equivalent basis for the 2008 third quarter was $50.1 million, an increase of $11.9 million, or 31.0 percent, from the comparable period a year ago. Average interest-earning assets for the 2008 third quarter increased $908.3 million, up 17.4 percent from the 2007 third quarter. Asset yields for the 2008 third quarter decreased 60 basis points, to 5.32 percent, compared with the third quarter of 2007. The decrease was primarily due to lower prevailing interest rates.

Average costs of deposits and average costs of funds for the 2008 third quarter decreased by 114 and 99 basis points to 1.71 and 2.12 percent, respectively, compared to last year's third quarter. These decreases are predominantly due to lower prevailing interest rates.

Net interest income on a tax-equivalent basis for the nine-month period ended September 30, 2008 was $136.4 million, up $27.7 million, or 25.4 percent, from the same period last year.

The net interest margin on a tax-equivalent basis for 2008 third quarter increased 35 basis points to 3.26 percent when compared with the same period last year. On a linked quarter basis, net interest margin on a tax-equivalent basis grew 12 basis points. The linked quarter expansion was primarily driven by an 11 basis point expansion in the average asset yield predominantly due to an increase in loans as a percentage of assets. Additionally, the cost of funds remained stable at 2.12 percent given the two basis point reduction in our cost of deposits for the quarter.

Non-Interest Income and Non-Interest Expense

Non-interest income for the third quarter of 2008 was $3.7 million, a decrease of $3.8 million when compared with $7.5 million reported in the 2007 third quarter. For the first nine months of 2008, non-interest income was $23.3 million versus $21.7 million reported last year, representing an increase of $1.6 million. The decline for the quarter was the result of an $8.0 million other than temporary impairment write-down on a single $10.0 million Lehman Brothers senior debenture, which was reflected in 2008 third quarter earnings. The decrease was partially offset by an increase in commissions of $1.6 million, or 49.0 percent, associated with off-balance sheet escrow deposits and increased brokerage activities. Additionally, net gains on sales of securities and loans increased $2.2 million predominantly attributable to gains on sales of investment securities. Excluding the effect of the other than temporary impairment write-down, non-interest income for the 2008 third quarter would have been $11.7 million, an increase of 55.9 percent from the third quarter of last year.

Non-interest expense for the third quarter of 2008 was $32.8 million versus $25.5 million reported in the 2007 third quarter. The $7.2 million, or 28.2 percent, increase was mostly due to the addition of new private client banking teams and offices.

The Bank's efficiency ratio was 60.9 percent for the 2008 third quarter and 53.0 percent after excluding the impairment write-down versus 55.9 percent for the comparable period a year ago. This improvement was primarily due to growth in net interest income and an increase in non-interest income, excluding the impairment write-down.

Loans

Loans, excluding loans held for sale, rose $377.4 million, or 13.9 percent, in the 2008 third quarter to $3.08 billion at September 30, 2008, versus $2.71 billion at June 30, 2008. At September 30, 2008, loans were 46.0 percent of total assets, compared with 42.5 percent at the end of the second quarter of 2008. Average loans, excluding loans held for sale, reached $2.88 billion, up $458.5 million, or 18.9 percent, from June 30, 2008. The significant increase in loans for the quarter was driven by growth in commercial real estate and multi-family loans.

At September 30, 2008, non-performing loans were $30.8 million, representing 1.0 percent of total loans and 0.5 percent of total assets, compared to non-performing loans of $29.1 million, or 1.1 percent of total loans, at June 30, 2008. At the end of the 2008 third quarter, the ratio of allowance for loan losses to total loans was at 1.00 percent, compared with 1.03 percent at June 30, 2008 and 0.72 percent at September 30, 2007. The non-performing loan balance at September 30, 2008 was predominantly comprised of three loans. The Bank incurred a partial write off of $2.0 million on one of the three loans during the quarter. In October, the remaining $3.0 million of this loan was satisfied, as the Bank received cash of $2.0 million and a $1.0 million note receivable from a new borrower.

Capital

Signature Bank's already strong capital ratios were further strengthened by the public offering of $148.0 million of common stock during the quarter. The Bank's tier 1 risk-based, total risk-based and leverage capital ratios were approximately 15.35 percent, 16.11 percent and 9.64 percent, respectively, as of September 30, 2008, well in excess of regulatory requirements. The ratios reflect the relatively low risk profile of the balance sheet.

Signature Bank recently submitted an application for participation in the TARP voluntary Capital Purchase Program with its primary regulator, the FDIC. The application was for an amount equal to 3.0 percent of risk-weighted assets, or approximately $120.0 million. It is anticipated that the Bank's application will be approved shortly by the Treasury and, upon approval, Signature Bank will provide further information.

Conference Call

Signature Bank's management will host a conference call to review results of the 2008 third quarter on Thursday, October 30, 2008, at 10:00 AM ET. All participants should dial 303-262-2053 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 303-590-3000 and enter reservation identification number 11121513. The replay will be available from approximately 12:00 PM ET on Thursday, October 30, 2008, through 11:59 PM ET on Tuesday, November 4, 2008.

About Signature Bank

Signature Bank, member FDIC, is a New York-based full-service commercial bank with 21 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 21 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 and 1020 Madison Avenue. 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; 58 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.

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) recent failures in the global credit markets and potential for increased regulation of financial institutions thereof; (iii) 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; (iv) the level of defaults, losses and prepayments on loans made by us, whether held in portfolio or sold in the whole loan secondary markets, which can materially affect charge-off levels and required credit loss reserve levels; and (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     Nine months
                                           ended            ended
                                       September 30,   September 30,
                                      --------------- ----------------
(dollars in thousands, except per
 share amounts)                          2008   2007    2008    2007
----------------------------------------------------------------------
INTEREST AND DIVIDEND INCOME
Loans held for sale                    $ 1,220  1,287    3,764   4,019
Loans, net                              42,648 35,357  112,026  98,455
Securities available-for-sale           34,666 36,004  103,044 104,555
Securities held-to-maturity              2,878  3,879    9,989  11,501
Other short-term investments               441  1,361    2,994   2,834
----------------------------------------------------------------------
 Total interest income                  81,853 77,888  231,817 221,364
----------------------------------------------------------------------
INTEREST EXPENSE
Deposits                                20,620 31,103   66,200  82,764
Federal funds purchased and securities
 sold under agreements to repurchase     7,701  6,574   21,082  20,832
Federal Home Loan Bank advances          3,369  1,932    8,041   8,019
Other short-term borrowings                 65     39      125   1,032
----------------------------------------------------------------------
 Total interest expense                 31,755 39,648   95,448 112,647
----------------------------------------------------------------------
Net interest income before provision
 for loan losses                        50,098 38,240  136,369 108,717
Provision for loan losses                5,781  2,175   18,218   5,322
----------------------------------------------------------------------
Net interest income after provision
 for loan losses                        44,317 36,065  118,151 103,395
----------------------------------------------------------------------
NON-INTEREST INCOME
Commissions                              4,716  3,165   14,048   9,129
Fees and service charges                 3,276  3,135   10,268   8,947
Net gains on sales of securities and
 loans                                   2,873    624    6,640   1,899
Write-down for other than temporary
 impairment of securities               (7,973)     -   (9,614)      -
Other income                               816    570    1,990   1,755
----------------------------------------------------------------------
 Total non-interest income               3,708  7,494   23,332  21,730
----------------------------------------------------------------------
NON-INTEREST EXPENSE
Salaries and benefits                   19,695 15,564   55,575  44,572
Occupancy and equipment                  3,502  2,640    9,886   7,577
Other general and administrative         9,563  7,341   26,576  21,835
----------------------------------------------------------------------
 Total non-interest expense             32,760 25,545   92,037  73,984
----------------------------------------------------------------------
Income before income taxes              15,265 18,014   49,446  51,141
Income tax expense                       6,070  7,271   19,549  20,833
----------------------------------------------------------------------
Net income                             $ 9,195 10,743   29,897  30,308
----------------------------------------------------------------------
PER COMMON SHARE DATA
Earnings per share - basic             $  0.30   0.36     0.99    1.02
Earnings per share - diluted           $  0.29   0.36     0.98    1.01


SIGNATURE BANK
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

                                            September 30, December 31,
(dollars in thousands, except per share         2008          2007
 amounts)                                    (unaudited)
----------------------------------------------------------------------
ASSETS
Cash and due from banks                       $  118,314      107,788
Short-term investments                             4,073      131,241
----------------------------------------------------------------------
 Total cash and cash equivalents                 122,387      239,029
----------------------------------------------------------------------
Securities available-for-sale (pledged
 $1,684,076 at September 30, 2008 and
 $1,109,980 at December 31, 2007)              2,779,395    2,805,711
Securities held-to-maturity (fair market
 value $233,793 at September 30, 2008 and
 $335,905 at December 31, 2007; pledged
 $168,646 at September 30, 2008 and
 $136,443 at December 31, 2007)                  244,608      339,441
Federal Home Loan Bank stock                      18,411       14,687
Loans held for sale                              197,451      172,367
Loans, net                                     3,054,004    2,007,342
Premises and equipment, net                       30,829       27,107
Accrued interest and dividends receivable         34,780       32,796
Other assets                                     217,590      206,692
----------------------------------------------------------------------
  Total assets                                $6,699,455    5,845,172
----------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
 Non-interest-bearing                          1,390,313    1,298,568
 Interest-bearing                              3,574,998    3,213,322
----------------------------------------------------------------------
  Total deposits                               4,965,311    4,511,890
----------------------------------------------------------------------
Federal funds purchased and securities sold
 under agreements to repurchase                  794,000      612,000
Federal Home Loan Bank advances                  260,000      195,000
Other short-term borrowings                       30,103        9,932
Accrued expenses and other liabilities            82,192       90,594
----------------------------------------------------------------------
  Total liabilities                            6,131,606    5,419,416
----------------------------------------------------------------------
Shareholders' equity
Preferred stock, par value $.01; 61,000,000
 shares authorized and unissued at
 September 30, 2008 and December 31, 2007              -            -
Common stock, par value $.01; 64,000,000
 shares authorized; 35,182,946 and
 29,696,212 shares issued and outstanding
 at September 30, 2008 and December 31,
 2007                                                352          297
Additional paid-in capital                       521,344      370,139
Retained earnings                                103,339       73,442
Net unrealized depreciation on securities
 available-for-sale, net of tax                  (57,186)     (18,122)
----------------------------------------------------------------------
  Total shareholders' equity                     567,849      425,756
----------------------------------------------------------------------
  Total liabilities and shareholders'
   equity                                     $6,699,455    5,845,172
----------------------------------------------------------------------


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

                   Three months ended           Nine months ended
               --------------------------- ---------------------------
(dollars in
 thousands,
 except ratios
 and per share September 30, September 30, September 30, September 30,
 amounts)          2008          2007          2008          2007
----------------------------------------------------------------------
PER SHARE
Net income -
 basic              $  0.30       $  0.36       $  0.99       $  1.02
Net income -
 diluted            $  0.29       $  0.36       $  0.98       $  1.01
Average shares
 outstanding -
 basic               30,837        29,689        30,109        29,664
Average shares
 outstanding -
 diluted             31,249        30,080        30,475        30,054
Book value          $ 16.14       $ 14.13       $ 16.14       $ 14.13

SELECTED FINANCIAL DATA
Return on
 average total
 assets                0.56%         0.78%         0.65%         0.76%
Return on
 average
 shareholders'
 equity                7.36%        10.31%         8.04%         9.98%
Efficiency
 ratio (1)            60.89%        55.86%        57.63%        56.72%
Efficiency
 ratio
 excluding
 write-down for
 other than
 temporary
 impairment of
 securities (1)       53.03%        55.86%        54.36%        56.72%
Yield on
 interest-
 earning assets        5.32%         5.92%         5.34%         5.90%
Yield on
 interest-
 earning
 assets, tax-
 equivalent
 basis (2)             5.32%         5.92%         5.35%         5.90%
Cost of
 deposits and
 borrowings            2.12%         3.11%         2.26%         3.10%
Net interest
 margin                3.25%         2.91%         3.14%         2.90%
Net interest
 margin, tax-
 equivalent
 basis (2)             3.26%         2.91%         3.15%         2.90%

(1) The efficiency ratio is calculated by dividing non-interest
 expense by the sum of net interest income before
provision for loan losses and other non-interest income.
(2) Presented using a 35 percent federal tax rate.


               September 30,   June 30,    December 31,  September 30,
                   2008          2008          2007          2007
----------------------------------------------------------------------
CAPITAL RATIOS
Tier one
 leverage              9.64%         7.64%         7.75%         8.06%
Tier one risk-
 based                15.35%        12.63%        14.82%        15.16%
Total risk-
 based                16.11%        13.39%        15.43%        15.63%

ASSET QUALITY
Non-performing
 loans              $30,824       $29,097       $18,559       $ 2,620
Allowance for
 loan losses        $30,973       $27,820       $18,236       $13,613
Allowance for
 loan losses to
 non-performing
 loans               100.48%        95.61%        98.26%       519.58%
Allowance for
 loan losses to
 total loans           1.00%         1.03%         0.90%         0.72%
Non-performing
 loans to total
 loans                 1.00%         1.07%         0.92%         0.14%
Quarterly net
 charge-offs to
 average loans
 (annualized)          0.36%         0.23%         0.47%         0.17%


SIGNATURE BANK
NET INTEREST MARGIN ANALYSIS
(unaudited)


                    Three months ended          Three months ended
                    September 30, 2008          September 30, 2007
               ---------------------------- --------------------------
                          Interest Average            Interest Average
(dollars in     Average   Income/   Yield/   Average  Income/  Yield/
 thousands)     Balance   Expense    Rate    Balance  Expense   Rate
----------------------------------------------------------------------
INTEREST-EARNING ASSETS
Short-term
 investments   $   16,823     100    2.36%     82,674    1,067   5.12%
Investment
 securities     3,092,908  37,885    4.90%  3,193,354   40,177   5.03%
Commercial
 loans and
 commercial
 mortgages (1)  2,576,421  37,440    5.78%  1,565,798   29,710   7.53%
Residential
 mortgages        179,112   2,537    5.67%    170,548    2,440   5.72%
Consumer loans    126,662   2,701    8.48%    120,276    3,207  10.58%
Loans held for
 sale             133,502   1,220    3.64%     84,453    1,287   6.05%
----------------------------------------------------------------------
 Total
  interest-
  earning
  assets        6,125,428  81,883    5.32%  5,217,103   77,888   5.92%
----------------------------------------------------------------------
 Non-interest-
  earning
  assets          349,180                     281,303
----------------------------------------------------------------------
  Total assets $6,474,608                   5,498,406
----------------------------------------------------------------------
INTEREST-BEARING LIABILITIES
Interest-bearing deposits
 NOW and
  interest-
  bearing
  checking        294,899   1,562    2.11%    301,816    1,455   1.91%
 Money market
  accounts      2,622,601  15,272    2.32%  2,418,115   25,562   4.19%
 Time deposits    475,652   3,786    3.17%    333,989    4,086   4.85%
Non-interest-
 bearing
 deposits       1,401,115       -       -   1,269,816        -      -
----------------------------------------------------------------------
  Total
   deposits     4,794,267  20,620    1.71%  4,323,736   31,103   2.85%
----------------------------------------------------------------------
Borrowings      1,178,201  11,135    3.76%    738,522    8,545   4.59%
----------------------------------------------------------------------
  Total
   deposits and
   borrowings   5,972,468  31,755    2.12%  5,062,258   39,648   3.11%
----------------------------------------------------------------------
  Other non-
   interest-
   bearing
   liabilities
   and share-
   holders'
   equity         502,140                     436,148
----------------------------------------------------------------------
  Total
   liabilities
   and share-
   holders'
   equity      $6,474,608                   5,498,406
----------------------------------------------------------------------
OTHER DATA
Tax-equivalent
 basis
 Net interest
  income /
  interest rate
  spread                   50,128    3.20%              38,240   2.81%
 Net interest
  margin                             3.26%                       2.91%
----------------------------------------------------------------------
Tax-equivalent
 adjustment /
 effect
 Net interest
  income /
  interest rate
  spread                      (30)  (0.00)%                  -      -
 Net interest
  margin                            (0.01)%                         -
----------------------------------------------------------------------
As reported
 Net interest
  income /
  interest rate
  spread                   50,098    3.20%              38,240   2.81%
 Net interest
  margin                             3.25%                       2.91%
----------------------------------------------------------------------
Ratio of
 average
 interest-
 earning assets
 to average
 interest-
 bearing
 liabilities                       102.56%                     103.06%
----------------------------------------------------------------------

(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, 2008          September 30, 2007
               ---------------------------- --------------------------
                          Interest Average            Interest Average
(dollars in     Average   Income/   Yield/   Average  Income/  Yield/
 thousands)     Balance   Expense    Rate    Balance  Expense   Rate
----------------------------------------------------------------------
INTEREST-EARNING ASSETS
Short-term
 investments   $   92,581   2,021    2.92%     47,270    1,895   5.36%
Investment
 securities     3,123,626 114,006    4.87%  3,151,423  116,995   4.95%
Commercial
 loans and
 commercial
mortgages (1)   2,170,481  96,318    5.93%  1,442,369   81,313   7.54%
Residential
 mortgages        176,271   7,538    5.70%    170,192    7,235   5.67%
Consumer loans    120,735   8,451    9.35%    121,505    9,907  10.90%
Loans held for
 sale             113,001   3,764    4.45%     84,587    4,019   6.35%
----------------------------------------------------------------------
 Total
  interest-
  earning
  assets        5,796,695 232,098    5.35%  5,017,346  221,364   5.90%
----------------------------------------------------------------------
 Non-interest-
  earning
  assets          322,745                     295,192
----------------------------------------------------------------------
  Total assets $6,119,440                   5,312,538
----------------------------------------------------------------------
INTEREST-BEARING LIABILITIES
Interest-bearing deposits
 NOW and
  interest-
  bearing
  checking        304,639   5,097    2.23%    289,939    4,195   1.93%
 Money market
  accounts      2,619,541  50,718    2.59%  2,140,764   65,892   4.12%
 Time deposits    394,011  10,385    3.52%    347,066   12,677   4.88%
Non-interest-
 bearing
 deposits       1,367,529       -       -   1,238,843        -      -
----------------------------------------------------------------------
  Total
   deposits     4,685,720  66,200    1.89%  4,016,612   82,764   2.75%
----------------------------------------------------------------------
Borrowings        957,720  29,248    4.08%    848,150   29,883   4.71%
----------------------------------------------------------------------
  Total
   deposits and
   borrowings   5,643,440  95,448    2.26%  4,864,762  112,647   3.10%
----------------------------------------------------------------------
  Other non-
   interest-
   bearing
   liabilities
   and share-
   holders'
   equity         476,000                     447,776
----------------------------------------------------------------------
  Total
   liabilities
   and share-
   holders'
   equity      $6,119,440                   5,312,538
----------------------------------------------------------------------
OTHER DATA
Tax-equivalent
 basis
 Net interest
  income /
  interest rate
  spread                  136,650    3.09%             108,717   2.80%
 Net interest
  margin                             3.15%                       2.90%
----------------------------------------------------------------------
Tax-equivalent
 adjustment /
 effect
 Net interest
  income /
  interest rate
  spread                     (281)  (0.01)%                  -      -
 Net interest
  margin                            (0.01)%                         -
----------------------------------------------------------------------
As reported
 Net interest
  income /
  interest rate
  spread                  136,369    3.08%             108,717   2.80%
 Net interest
  margin                             3.14%                       2.90%
----------------------------------------------------------------------
Ratio of
 average
 interest-
 earning assets
 to average
 interest-
 bearing
 liabilities                       102.72%                     103.14%
----------------------------------------------------------------------

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

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