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Press Release

Signature Bank Reports 2009 First Quarter Results

Net Income for the Quarter Reached $14.6 Million, or $0.41 Diluted Earnings Per Share, Compared to $9.9 Million, or $0.33 Diluted Earnings Per Share, for the First Quarter of 2008, an Increase of 48.3 Percent Bank Returned $120.0 Million to the U.S. Department of Treasury, which It Received from its Participation in the Capital Purchase Program Net Income Available to Common Shareholders for the Quarter Was $2.4 Million, or $0.07 Diluted Earnings Per Share, Principally Due to the Effect of an Accelerated Deemed Dividend of $10.2 Million Related to the Redemption of Preferred Shares to the U.S. Department of Treasury. Excluding the Accelerated Deemed Dividend, Net Income Available to Common Shareholders Was $12.6 Million, or $0.36 Diluted Earnings Per Share Deposits for the Quarter Climbed $448.3 Million Totaling $5.84 Billion, Including Core Deposit Growth of $314.3 Million. Overall Deposit Growth at $1.25 Billion, or 27.2 Percent, from 2008 First Quarter. Average First Quarter Deposits Were $5.48 Billion, Up $528.0 Million, or 10.7 Percent, when Compared with the 2008 Fourth Quarter Loans Grew $96.8 Million, or 2.8 Percent, to $3.57 Billion for the Quarter Total Non-Performing Loans Were 1.26 Percent of Total Loans, or $45.1 Million, at March 31, 2009, Compared with 1.80 Percent, or $40.0 Million, at the End of the 2008 First Quarter Tangible Common Equity, Tier One Leverage Capital and Total Risk-Based Capital Ratios of 7.83 Percent, 9.00 Percent and 14.25 Percent, Respectively, Remain Significantly Above Those Required to Meet FDIC "Well Capitalized" Standards and Among Highest in the Industry Two Private Client Banking Teams Joined the Bank and Two Teams Expanded During the Quarter

Company Release - 4/28/2009 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 2009 first quarter ended March 31, 2009.

Net income for the 2009 first quarter was $14.6 million, or $0.41 diluted earnings per share, compared with $9.9 million, or $0.33 diluted earnings per share, for the 2008 first quarter, representing an increase of 48.3 percent.

Net income available to common shareholders for the first quarter of 2009 was $2.4 million, or $0.07 diluted earnings per share. The Bank recorded a $10.2 million accelerated deemed dividend in the first quarter of 2009 representing the unamortized value of the 595,829 outstanding warrants issued to the U.S. Department of Treasury to account for the difference between the book value and the carrying value of the preferred stock repurchased from the Treasury. The $10.2 million accelerated deemed dividend, combined with the previously scheduled preferred dividend of $2.0 million, resulted in a total deemed dividend of $12.2 million during the first quarter of 2009. Excluding the effect of the accelerated deemed dividend of $10.2 million, net income available to common shareholders was $12.6 million, or $0.36 diluted earnings per share.

The increase in net income for the first quarter of 2009 versus the comparable period last year is a result of numerous factors, including core deposit growth, solid loan growth, and net interest margin expansion. These factors were partially offset by increases in non-interest expense and the provision for loan losses.

Net interest income for the 2009 first quarter reached $57.5 million, an increase of $16.3 million, or 39.5 percent, when compared with the same period last year. Total assets were $7.43 billion at March 31, 2009, up $1.61 billion, or 27.6 percent, versus the $5.82 billion for the 2008 first quarter. Average assets for the 2009 first quarter reached $7.25 billion, an increase of $1.49 billion, or 25.8 percent, from the first quarter of 2008.

Deposits during the first quarter of 2009 grew $448.3 million, or 8.3 percent, to $5.84 billion at March 31, 2009. This increase includes core deposit growth of $314.3 million, along with increases of $122.8 million in short-term escrow deposits and $11.2 million in brokered deposits. When compared with deposits at March 31, 2008, the overall deposit growth over the last 12 months represents an increase of $1.25 billion, or 27.2 percent.

"The Bank's results, again this quarter, reflect our steadfast commitment to our depositor-focused banking model, which has positioned us to take advantage of the disruption in our marketplace. This quarter we added two new teams while also expanding two others and notably grew core deposits and originated high-quality loans. We are continually encouraged by the fact that our clients recognize Signature Bank as a safe place to deposit their funds," explained Joseph J. DePaolo, Signature Bank's President and Chief Executive Officer.

Scott A. Shay, Chairman of the Board, noted: "As one of the nation's strongest and safest banks, we were among the first to be approved to return the funds we had received from our participation in the Capital Purchase Program to the U.S. Department of Treasury. The restrictions associated with the program would have adversely impacted our business model, therefore making it necessary that we return the proceeds. We believe exiting the Program is in the best interest of our clients, shareholders and institution. With tangible common equity near eight percent, Signature Bank remains one of the strongest capitalized institutions in the nation, with a continued emphasis on depositor safety, client trust and shareholder value."

Capital

The Bank's tangible common equity, tier one leverage, tier one risk-based, and total risk-based capital ratios were approximately 7.83 percent, 9.00 percent, 13.44 percent and 14.25 percent, respectively, as of March 31, 2009, well in excess of regulatory requirements. The risk-based ratios also reflect the relatively low risk profile of the Bank's balance sheet.

Net Interest Income

Net interest income on a tax-equivalent basis for the 2009 first quarter was $57.5 million, an increase of $16.2 million, or 39.1 percent, from the same period a year ago. Average interest-earning assets for the 2009 first quarter grew $1.45 billion, or 26.5 percent, from the first quarter of last year. Yield on interest earning assets for the first quarter of 2009 decreased 36 basis points, to 5.17 percent, versus the 2008 first quarter. The decrease was primarily due to lower prevailing interest rates.

Average costs of deposits and average costs of funds for the 2009 first quarter decreased by 69 and 65 basis points to 1.55 and 1.92 percent, respectively, when compared with the first quarter of last year. These decreases were predominantly due to lower prevailing interest rates.

Net interest margin on a tax-equivalent basis for first quarter of 2009 increased 33 basis points to 3.37 percent versus the comparable period a year ago. On a linked quarter basis, net interest margin decreased 14 basis points. The linked quarter decrease was predominantly due to a reduction in the amount of discount accretion on previously impaired securities that was recognized during the quarter. During the first quarter of 2009, the Bank recognized $377,000 in interest income from the current quarter's accretion of discounts on previously impaired securities compared with a $1.7 million full year accretion recognized in the fourth quarter of 2008. Additionally, net interest margin was affected by significant inflows of core and short-term escrow deposits during the latter half of the first quarter, thereby increasing low-yielding cash balances. The Bank expects to prudently invest these funds in the 2009 second quarter when opportunities arise.

Provision for Loan Losses

The provision for loan losses for 2009 first quarter was $9.6 million, up $3.2 million, or 49.9 percent, when compared with the same quarter last year. The increase was primarily driven by the growth in the loan portfolio, combined with an increase in the provision for the deteriorating economic environment.

Net charge-offs for the first quarter of 2009 were $7.2 million, or 0.82 percent annualized, compared to $1.5 million, or 0.29 percent, for the 2008 first quarter. This quarter included one charge-off for $5.1 million on a commercial and industrial loan with a principal balance of $9.2 million. This loan was first placed on non-accrual in the 2007 fourth quarter and was provided for in prior quarters.

Non-Interest Income and Non-Interest Expense

Non-interest income for the first quarter of 2009 was $10.4 million, an increase of $537,000 compared with $9.9 million reported in the 2008 first quarter. The increase was primarily a result of higher gains on sales of securities and loans and a decrease in securities impairment write-downs, partially offset by a decrease in commissions.

Non-interest expense for the 2009 first quarter was $34.0 million, an increase of $5.4 million, or 19.0 percent, versus $28.6 million reported in the first quarter of 2008. The increase for the quarter was primarily a result of the addition of new private client banking teams and offices, growth in client activity, and additional costs of $1.2 million related to FDIC deposit assessment fees and the FDIC deposit guarantee program.

The Bank's efficiency ratio improved to 50.1 percent for the 2009 first quarter versus 55.9 percent for the 2008 first quarter, driven by growth in net interest income.

Loans

Loans, excluding loans held for sale, increased $96.8 million, or 2.8 percent, in the first quarter of 2009 to $3.57 billion at March 31, 2009, versus $3.47 billion at December 31, 2008. At March 31, 2009, loans were 48.0 percent of total assets, compared with 48.3 percent at December 31, 2008. Average loans, excluding loans held for sale, reached $3.52 billion in the first quarter of 2009, growing $197.0 million, or 5.9 percent, since December 31, 2008.

At March 31, 2009, non-performing loans were $45.1 million, representing 1.26 percent of total loans and 0.61 percent of total assets, compared with non-performing loans of $40.0 million, or 1.80 percent of total loans, at March 31, 2008. At the end of the first quarter of 2009, the ratio of allowance for loan losses to total loans was at 1.11 percent, versus 1.07 percent at December 31, 2008 and 1.04 percent at March 31, 2008.

Conference Call

Signature Bank's management will host a conference call to review results of the 2009 first quarter on Tuesday, April 28, 2009, at 10:00 AM ET. All participants should dial 1-480-629-9867 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 4060702. The replay will be available from approximately 12:00 PM ET on Tuesday, April 28, 2009, through 11:59 PM ET on Friday, May 1, 2009.

About Signature Bank

Signature Bank, member FDIC, is a New York-based full-service commercial bank with 22 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 22 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; 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, capitalization, new private client team hires, new office openings, the regulatory environment 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 and regulatory 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; and (iv) 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 March 31,

(dollars in thousands, except per share amounts)  2009    2008

INTEREST AND DIVIDEND INCOME

Loans held for sale                               $ 705   1,321

Loans, net                                        47,655  34,119

Securities available-for-sale                     37,068  34,365

Securities held-to-maturity                       2,665   3,881

Other short-term investments                      122     1,451

Total interest income                             88,215  75,137

INTEREST EXPENSE

Deposits                                          20,931  25,260

Federal funds purchased and securities sold under 7,213   6,451
agreements to repurchase

Federal Home Loan Bank advances                   2,569   2,177

Other short-term borrowings                       -       31

Total interest expense                            30,713  33,919

Net interest income before provision for loan     57,502  41,218
losses

Provision for loan losses                         9,595   6,403

Net interest income after provision for loan      47,907  34,815
losses

NON-INTEREST INCOME

Commissions                                       2,818   4,338

Fees and service charges                          3,319   3,597

Net gains on sales of securities                  2,609   1,504

Net gains on sales of loans                       485     492

Write-down for other than temporary impairment of -       (703                 )
securities

Other income                                      1,164   630

Total non-interest income                         10,395  9,858

NON-INTEREST EXPENSE

Salaries and benefits                             20,473  17,157

Occupancy and equipment                           3,362   3,269

Other general and administrative                  10,156  8,137

Total non-interest expense                        33,991  28,563

Income before income taxes                        24,311  16,110

Income tax expense                                9,699   6,260

Net income                                        14,612  9,850

Dividends on preferred stock and related          12,202  -
adjustments

Net income available to common shareholders       $ 2,410 9,850

PER COMMON SHARE DATA

Earnings per share - basic (1)                    $ 0.07  0.33

Earnings per share - diluted (1)                  $ 0.07  0.33

(1) For 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.




SIGNATURE BANK

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

                                                     March 31,     December 31,

                                                     2009          2008

(dollars in thousands, except per share amounts)     (unaudited)

ASSETS

Cash and due from banks                              $ 183,991     111,927

Short-term investments                               153,837       4,330

Total cash and cash equivalents                      337,828       116,257

Securities available-for-sale (pledged $2,003,377 at
March 31, 2009                                       2,903,643     2,906,059
and $1,812,790 at December 31, 2008)

Securities held-to-maturity (fair value $234,365 at
March 31, 2009
and $230,539 at December 31, 2008; pledged $145,826  241,971       236,531
at
March 31, 2009 and $148,239 at December 31, 2008)

Federal Home Loan Bank stock                         18,411        18,411

Loans held for sale                                  72,839        217,680

Loans, net                                           3,527,880     3,433,555

Premises and equipment, net                          32,979        33,221

Accrued interest and dividends receivable            36,831        36,326

Other assets                                         253,015       194,159

Total assets                                         $ 7,425,397   7,192,199

LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits

Non-interest-bearing                                 1,715,123     1,563,407

Interest-bearing                                     4,121,092     3,824,479

Total deposits                                       5,836,215     5,387,886

Federal funds purchased and securities sold under
agreements

to repurchase                                        677,000       785,000

Federal Home Loan Bank advances                      260,000       260,000

Other short-term borrowings                          6,643         4,900

Accrued expenses and other liabilities               64,021        56,278

Total liabilities                                    6,843,879     6,494,064

Shareholders' equity

Preferred stock, par value $.01; 61,000,000 shares
authorized; none
issued at March 31, 2009; 120,000 shares with $1,000 -             109,314
liquidation value
issued and outstanding at December 31, 2008 net of
discount

Common stock, par value $.01; 64,000,000 shares
authorized;
35,382,170 and 35,244,946 shares issued and          354           352
outstanding
at March 31, 2009 and December 31, 2008

Additional paid-in capital                           535,679       534,458

Retained earnings                                    118,816       116,707

Net unrealized depreciation on securities            (73,331     ) (62,696   )
available-for-sale, net of tax

Total shareholders' equity                           581,518       698,135

Total liabilities and shareholders' equity           $ 7,425,397   7,192,199




SIGNATURE BANK

FINANCIAL SUMMARY, CAPITAL RATIOS, ASSET QUALITY

(unaudited)

                                                Three months ended

(dollars in thousands, except ratios and per    March 31, December 31, March 31,
share amounts)                                  2009      2008         2008

PER COMMON SHARE

Net income - basic (1)                          $ 0.07    $ 0.37       $ 0.33

Net income - diluted (1)                        $ 0.07    $ 0.37       $ 0.33

Average shares outstanding - basic              35,265    35,208       29,705

Average shares outstanding - diluted            35,547    35,622       30,050

Book value                                      $ 16.44   $ 16.71      $ 14.54

SELECTED FINANCIAL DATA

Return on average total assets                  0.82%     0.75%        0.69%

Return on average shareholders' equity          9.26%     8.46%        9.23%

Return on average common shareholders' equity   1.69%     9.07%        9.23%

Efficiency ratio (2)                            50.06%    50.28%       55.92%

Efficiency ratio excluding write-down for other
than                                            50.06%    45.31%       55.16%

temporary impairment of securities (2)

Yield on interest-earning assets                5.16%     5.46%        5.52%

Yield on interest-earning assets,               5.17%     5.46%        5.53%
tax-equivalent basis (3)

Cost of deposits and borrowings                 1.92%     2.05%        2.57%

Net interest margin                             3.37%     3.51%        3.03%

Net interest margin, tax-equivalent basis (3)   3.37%     3.51%        3.04%

(1) For 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 other non-interest income.

(3) Presented using a 35 percent federal tax rate.

                                                March 31, December 31, March 31,
                                                2009      2008         2008

CAPITAL RATIOS

Tier one leverage                               9.00%     10.61%       7.92%

Tier one risk-based                             13.44%    17.00%       14.49%

Total risk-based                                14.25%    17.83%       15.23%

ASSET QUALITY

Non-performing loans                            $ 45,092  $ 31,885     $ 40,011

Allowance for loan losses                       $ 39,432  $ 36,987     $ 23,148

Allowance for loan losses to non-performing     87.45%    116.00%      57.85%
loans

Allowance for loan losses to total loans        1.11%     1.07%        1.04%

Non-performing loans to total loans             1.26%     0.92%        1.80%

Quarterly net charge-offs to average loans      0.82%     0.32%        0.29%
(annualized)




SIGNATURE BANK

NET INTEREST MARGIN
ANALYSIS

(unaudited)

                     Three months ended            Three months ended

                     March 31, 2009                March 31, 2008

(dollars in          Average     Interest Average  Average   Interest Average
thousands)           Balance     Income/  Yield/   Balance   Income/  Yield/
                                 Expense  Rate               Expense  Rate

INTEREST-EARNING
ASSETS

Short-term           $ 64,330    44       0.28%    136,294   1,140    3.36%
investments

Investment           3,197,386   39,811   4.98%    3,161,404 38,557   4.88%
securities

Commercial loans and
commercial           3,191,549   42,642   5.42%    1,802,941 28,709   6.40%

mortgages (1)

Residential          180,179     2,545    5.65%    173,659   2,485    5.72%
mortgages

Consumer loans       148,394     2,502    6.84%    115,464   3,063    10.67%

Loans held for sale  145,698     705      1.96%    88,678    1,321    5.99%

Total
interest-earning     6,927,536   88,249   5.17%    5,478,440 75,275   5.53%
assets

Non-interest-earning 326,567                       289,907
assets

Total assets         $ 7,254,103                   5,768,347

INTEREST-BEARING
LIABILITIES

Interest-bearing
deposits

NOW and
interest-bearing     457,626     1,279    1.13%    285,441   1,780    2.51%
checking

Money market         2,705,844   14,221   2.13%    2,576,385 19,943   3.11%
accounts

Time deposits        773,081     5,431    2.85%    344,157   3,537    4.13%

Non-interest-bearing 1,539,120   -        -        1,329,709 -        -
deposits

Total deposits       5,475,671   20,931   1.55%    4,535,692 25,260   2.24%

Borrowings           1,017,228   9,782    3.90%    768,251   8,659    4.53%

Total deposits and   6,492,899   30,713   1.92%    5,303,943 33,919   2.57%
borrowings

Other
non-interest-bearing 761,204                       464,404
liabilities and
shareholders' equity

Total liabilities
and shareholders'    $ 7,254,103                   5,768,347
equity

OTHER DATA

Tax-equivalent basis

Net interest income
/ interest rate                  57,536   3.25%              41,356   2.96%
spread

Net interest margin                       3.37%                       3.04%

Tax-equivalent
adjustment / effect

Net interest income
/ interest rate                  (34)     (0.01)%            (138)    (0.01)%
spread

Net interest margin                       (0.00)%                     (0.01)%

As reported

Net interest income
/ interest rate                  57,502   3.24%              41,218   2.95%
spread

Net interest margin                       3.37%                       3.03%

Ratio of average
interest-earning
assets to average                         106.69%                     103.29%
interest-bearing
liabilities

(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