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Investor Relations

Press Release

Signature Bank Reports 2009 Fourth Quarter and Year-End Results

Company Release - 1/26/2010 5:00 AM ET
    --  Net Income Available to Common Shareholders for the 2009 Fourth Quarter
        Reached a Record $21.0 Million, or $0.51 Diluted Earnings Per Share, Up
        $7.9 Million, or 60.4 Percent from $13.1 Million, or $0.37 Diluted
        Earnings Per Share Reported in the 2008 Fourth Quarter
    --  2009 Net Income Available to Common Shareholders Reached a Record $50.5
        Million or $1.30 Diluted Earnings Per Share, Versus $43.0 Million or
        $1.35 Diluted Earnings Per Share in 2008, an Increase of $7.6 Million,
        or 17.6 Percent
    --  Deposits in the Fourth Quarter Rose $418.3 Million to $7.22 Billion;
        Includes Quarterly Core Deposit Growth of $498.2 Million or 7.9 Percent
        and Decreases in Short-Term Escrow and Brokered Deposits
    --  Deposits for 2009 Grew a Record $1.83 Billion, or 34.1 Percent. Core
        Deposits were up a Record $1.82 Billion or 36.2 Percent. Average
        Deposits for 2009 were $6.29 Billion, Representing an Increase of $1.54
        Billion, or 32.4 Percent, Compared with $4.75 Billion for 2008
    --  Loans Increased $247.5 Million, or 6.0 Percent, to $4.38 Billion for the
        2009 Fourth Quarter. Loans Increased $905.6 Million, or 26.1 Percent,
        Since Year-end 2008
    --  Non-Performing Loans Decreased to $46.6 Million, or 1.07 Percent of
        Total Loans at December 31, 2009, Compared with $51.2 Million, or 1.24
        Percent at the End of the 2009 Third Quarter. Non-Performing Loans at
        Year End 2008 were $31.9 Million, or 0.92 Percent of Total Loans
    --  Tier One Leverage, Tier One Risk-Based and Total Risk-Based Capital
        Ratios were 9.39 Percent, 13.57 Percent and 14.47 Percent, Respectively,
        at December 31, 2009. Bank Remains Significantly Above FDIC "Well
        Capitalized" Standards. Tangible Common Equity Ratio was 8.79 Percent.
    --  Net Interest Margin on a Tax-Equivalent Basis was 3.48 Percent Compared
        to 3.39 Percent for the 2009 Third Quarter and 3.51 Percent for the 2008
        Fourth Quarter
    --  One Private Client Banking Team Joined During the Quarter. Total Teams
        Added for 2009 is 13, the Most in One Year Since Bank's Inception

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, 2009.

Net income available to common shareholders for the 2009 fourth quarter reached a record $21.0 million, or $0.51 diluted earnings per share, compared with $13.1 million, or $0.37 diluted earnings per share, for the 2008 fourth quarter. The 2008 fourth quarter results included pre-tax $6.9 million net impairment losses on securities recognized in earnings on two bank pooled trust preferred securities and one asset-backed security while the 2009 fourth quarter included $523,000. The increase in net income for the 2009 fourth quarter, when compared with the same period last year, is predominantly attributable to net interest income growth, fueled by record core deposit growth and continued loan growth. These factors were partially offset by an increase in the provision for loan losses, a decrease in commissions and an increase in non-interest expenses.

Net interest income for the 2009 fourth quarter reached $75.7 million, up $16.8 million, or 28.6 percent, compared with the 2008 fourth quarter. Total assets were $9.15 billion at December 31, 2009, up $1.95 billion, or 27.2 percent, from the $7.19 billion reported for year-end 2008. Average assets for 2009 reached $7.99 billion, an increase of $1.62 billion, or 25.4 percent, from 2008.

Deposits for the 2009 fourth quarter rose $418.3 million to $7.22 billion at December 31, 2009. This includes core deposit growth of $498.2 million, coupled with a decrease of $13.5 million in short-term escrow deposits and a decrease of $66.4 million in brokered deposits. Overall deposit growth for 2009 was 34.1 percent or $1.83 billion when compared with deposits at December 31, 2008. Excluding short-term escrow and brokered deposits of $372.1 million at year-end 2008 and $389.4 million at year-end 2009, core deposits increased $1.82 billion or 36.2 percent in 2009. Average total deposits for 2009 were $6.29 billion, up $1.54 billion or 32.4 percent versus average total deposits of $4.75 billion for 2008.

For the year ended December 31, 2009, net income available to common shareholders totaled a record $50.5 million or $1.30 diluted earnings per share, compared with $43.0 million, or $1.35 diluted earnings per share for 2008, an increase of $7.6 million or 17.6 percent.

"2009 was a year of considerable achievement for the Bank during which we saw record core deposit growth, solid loan growth, stable credit quality, net interest margin expansion, record net income and the most private client banking teams joining since our 2001 inception. Despite the market chaos surrounding the financial services landscape, Signature Bank thrived, delivering consistent, outstanding performance. We believe the success of our core depositor-focused business model was most noticeably proven this past year," noted Joseph J. DePaolo, President and Chief Executive Officer.

"Our 2009 results confirm the strength of our depositor-oriented model which continues to guide us. This all begins with the hiring of seasoned banking veterans who bring to the Bank the ability to execute our relationship-based model and continues with the Bankers serving as the single-point-of contact for their clients. With 68 private client teams, including 13 added in 2009, our expertise lies in identifying professionals who understand that at Signature Bank, they have the necessary autonomy, resources, capital and balance sheet strength along with a solid management team behind them to personally serve their clients and meet all their needs. These attributes are what has set Signature Bank apart throughout all the turmoil experienced by the financial services industry," DePaolo said.

Scott A. Shay, Chairman of the Board, commented on the Bank's performance, stating: "This has been a milestone year -- in fact, the best in our history -- which is particularly notable given the treacherous environment and severe economic challenges facing our industry and nation. The capital strength of the Bank and the consistent, prudent management of the balance sheet, coupled with our core funding discipline and growing network of talented bankers, are the real assets of Signature Bank. These characteristics have allowed us to continue to flourish, especially during unprecedented times. Again and again, we have demonstrated to clients, investors and the banking arena that we built this bank for depositors, and by remaining steadfast in our execution, we offer the marketplace a safe, sound, solid and dependable institution."

Capital

The Bank's tier one leverage, tier one risk-based, and total risk-based capital ratios were approximately 9.39 percent, 13.57 percent and 14.47 percent, respectively, as of December 31, 2009, each of which 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 8.79 percent.

Net Interest Income

Net interest income on a tax-equivalent basis for the 2009 fourth quarter was $75.8 million, up $16.8 million, or 28.6 percent, from the same period a year ago. Average interest-earning assets for the 2009 fourth quarter rose $1.97 billion, or 29.5 percent from the fourth quarter of 2008. Yield on interest earning assets for the 2009 fourth quarter decreased 56 basis points, to 4.90 percent, versus the fourth quarter of 2008. The decrease was primarily the result of lower prevailing interest rates.

Average costs of deposits and average costs of funds for the 2009 fourth quarter decreased by 52 and 53 basis points to 1.21 and 1.52 percent, respectively, versus the 2008 fourth quarter. These decreases are predominantly due to lower prevailing interest rates.

Net interest income on a tax-equivalent basis for the year ended December 31, 2009 was $262.5 million, an increase of $66.9 million, or 34.2 percent, when compared with 2008.

Net interest margin on a tax-equivalent basis for the 2009 fourth quarter decreased 3 basis points to 3.48 percent versus last year. On a linked quarter basis, net interest margin on a tax-equivalent basis grew 9 basis points. The linked quarter expansion was primarily driven by a 12 basis point decrease in the cost of deposits.

Provision for Loan Losses

The Bank's provision for loan losses for the fourth quarter of 2009 was $11.8 million, an increase of $3.2 million, or 36.5 percent, versus the comparable period last year and down $100,000 from $11.9 million reported in the 2009 third quarter. For the year ended December 31, 2009, the provision for loan losses was $42.7 million, an increase of $15.8 million, or 58.9 percent, when compared to the previous year. The increases are primarily driven by growth in the loan portfolio, combined with increases in charge-offs, non-performing loans and provisions stemming from the challenging economic environment.

Net charge-offs for the 2009 fourth quarter were $6.4 million, or 0.61 percent of average loans on an annualized basis, compared with $6.6 million, or 0.66 percent, for the 2009 third quarter and $2.7 million, or 0.32 percent, for the 2008 fourth quarter. Net charge-offs for 2009 were $24.6 million, or 0.64 percent of average loans, compared to $8.1 million, or 0.30 percent, for 2008.

Non-Interest Income and Non-Interest Expense

Non-interest income for the fourth quarter of 2009 was $9.6 million, an increase of $5.3 million when compared with $4.3 million reported in the 2008 fourth quarter. For 2009, non-interest income was $34.6 million versus $27.6 million reported last year, representing an increase of $7.0 million, or 25.3 percent. The increases for the quarter and year were predominantly due to a decrease in net impairment losses on securities recognized in earnings. This was partially offset in both periods by a decrease in commission income, primarily associated with the decline in off-balance sheet money market deposits and a reduction in the commission percentages earned on the off-balance sheet money market deposits.

Non-interest expense for the 2009 fourth quarter was $38.4 million, an increase of $6.6 million, or 20.9 percent, versus $31.8 million reported in the 2008 fourth quarter. For the year, non-interest expense was $149.9 million, up $26.1 million or 21.1 percent versus last year. The increases for the quarter and year were primarily due to the addition of new private client banking teams and offices, growth in client activity, and additional costs related to FDIC deposit assessment fees and the FDIC deposit guarantee program. The increase for all FDIC associated fees for 2009 was $9.0 million, representing 34.5 percent of the total increase in non-interest expense.

The Bank's efficiency ratio improved to 45.0 percent for the 2009 fourth quarter versus 50.3 percent for the 2008 fourth quarter. For the year, the efficiency ratio improved to 50.5 percent compared to 55.6 percent for 2008. The improvements for the quarter and year were primarily due to growth in net interest income and non-interest income, coupled with expense containment.

Loans

Loans, excluding loans held for sale, increased $247.5 million, or 6.0 percent, in the fourth quarter of 2009 to $4.38 billion at December 31, 2009, versus $4.13 billion at September 30, 2009. For 2009, loans increased $905.6 million, or 26.1 percent. At December 31, 2009, loans were 47.8 percent of total assets, compared with 48.0 percent at the end of the 2009 third quarter and 48.3 percent at the end of 2008. Average loans, excluding loans held for sale, reached $4.21 billion in the 2009 fourth quarter, up $252.1 million, or 6.4 percent, from third quarter of 2009 and an increase of $886.5 million, or 26.7 percent, from the 2008 fourth quarter. The increases in loans for the quarter and the year were primarily driven by growth in commercial real estate and multi-family loans with tighter underwriting standards.

At December 31, 2009, non-performing loans were $46.6 million, representing 1.07 percent of total loans and 0.51 percent of total assets, compared with non-performing loans of $51.2 million, or 1.24 percent of total loans, at September 30, 2009 and non-performing loans of $31.9 million, or 0.92 percent of total loans, at December 31, 2008. At the end of the 2009 fourth quarter, the ratio of allowance for loan losses to total loans was at 1.26 percent, compared with 1.20 percent at September 30, 2009 and 1.07 percent at December 31, 2008.

Conference Call

Signature Bank's management will host a conference call to review results of the 2009 fourth quarter and year-end on Tuesday, January 26, 2010, at 10:00 AM ET. All participants should dial 480-629-9866 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 4202022. The replay will be available from approximately 12:00 PM ET on Tuesday, January 26, 2010, through 11:59 PM ET on Friday, January 29, 2010.

About Signature Bank

Signature Bank, member FDIC, a New York-based full-service commercial bank with 23 private client offices throughout the New York metropolitan area, serves 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 FINRA/SIPC.

Signature Bank's 23 offices are located: In Manhattan - 261 Madison Avenue; 300 Park Avenue; 71 Broadway; 565 Fifth Avenue; 950 Third Avenue; 200 Park Avenue South, 1020 Madison Avenue and 50 West 57th Street. Brooklyn - 26 Court Street; 84 Broadway and 6321 New Utrecht Avenue. Westchester - 1C Quaker Ridge Road, New Rochelle and 360 Hamilton Avenue, White Plains. Long Island - 1225 Franklin Avenue, Garden City; 279 Sunrise Highway, Rockville Centre; 68 South Service Road, Melville; 923 Broadway, Woodmere; 40 Cuttermill Road, Great Neck and 100 Jericho Quadrangle, Jericho. Queens - 36-36 33rd Street, Long Island City 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, competition, 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 clients, loans, deposits, 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   Year ended

                                        December 31,         December 31,

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

INTEREST AND DIVIDEND INCOME

Loans held for sale                     $ 870      1,831     2,786     5,596

Loans, net                              59,362     48,121    213,357   160,147

Securities available-for-sale           43,062     38,396    157,228   141,441

Securities held-to-maturity             3,104      3,164     11,401    13,153

Other short-term investments            378        134       1,363     3,127

Total interest income                   106,776    91,646    386,135   323,464

INTEREST EXPENSE

Deposits                                21,826     21,550    85,398    87,750

Federal funds purchased and securities
sold under

agreements to repurchase                6,587      7,786     27,921    28,867

Federal Home Loan Bank advances         2,628      3,343     10,420    11,384

Other short-term borrowings             1          66        1         192

Total interest expense                  31,042     32,745    123,740   128,193

Net interest income before provision    75,734     58,901    262,395   195,271
for loan losses

Provision for loan losses               11,837     8,670     42,715    26,888

Net interest income after provision for 63,897     50,231    219,680   168,383
loan losses

NON-INTEREST INCOME

Commissions                             2,067      5,893     9,572     19,941

Fees and service charges                3,500      3,481     13,280    13,749

Net gains on sales of securities        2,597      1,569     8,683     6,876

Net gains on sales of loans             1,612      106       3,648     1,439

Other-than-temporary impairment losses  (8,835   ) (6,930 )  (23,396 ) (16,543 )
on securities

Portion of loss recognized in other     8,312      -         22,074    -
comprehensive income (before taxes)

Net impairment losses on securities     (523     ) (6,930 )  (1,322  ) (16,543 )
recognized in earnings

Trading loss                            (48      ) (190   )  (1,009  ) (54     )

Other income                            408        384       1,780     2,237

Total non-interest income               9,613      4,313     34,632    27,645

NON-INTEREST EXPENSE

Salaries and benefits                   22,219     18,314    86,836    73,888

Occupancy and equipment                 3,641      3,418     14,042    13,304

Other general and administrative        12,550     10,051    49,007    36,628

Total non-interest expense              38,410     31,783    149,885   123,820

Income before income taxes              35,100     22,761    104,427   72,208

Income tax expense                      14,130     9,300     41,701    28,849

Net income                              20,970     13,461    62,726    43,359

Dividends on preferred stock and        -          390       12,203    390
related discount accretion

Net income available to common          $ 20,970   13,071    50,523    42,969
shareholders

PER COMMON SHARE DATA

Earnings per share - basic (1)          $ 0.52     0.37      1.32      1.37

Earnings per share - diluted (1)        $ 0.51     0.37      1.30      1.35

(1) For the twelve months ended December 31, 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

                                                     December 31,   December 31,

                                                     2009           2008

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

ASSETS

Cash and due from banks                              $ 95,746       111,927

Short-term investments                               12,603         4,330

Total cash and cash equivalents                      108,349        116,257

Securities available-for-sale (pledged $1,584,371
and $1,812,790 at

December 31, 2009 and 2008)                          3,837,583      2,906,059

Securities held-to-maturity (fair value $290,608 and
$230,539 at

December 31, 2009 and 2008; pledged $194,336 and
$148,239 at

December 31, 2009 and 2008)                          295,984        236,531

Federal Home Loan Bank stock                         23,906         18,411

Loans held for sale                                  293,207        217,680

Loans, net                                           4,320,978      3,433,555

Premises and equipment, net                          31,802         33,221

Accrued interest and dividends receivable            43,193         36,326

Other assets                                         191,110        194,159

Total assets                                         $ 9,146,112    7,192,199

LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits

Non-interest-bearing                                 1,969,734      1,563,407

Interest-bearing                                     5,252,812      3,824,479

Total deposits                                       7,222,546      5,387,886

Federal funds purchased and securities sold under
agreements

to repurchase                                        697,000        785,000

Federal Home Loan Bank advances                      305,000        260,000

Other short-term borrowings                          6,900          4,900

Accrued expenses and other liabilities               111,007        56,278

Total liabilities                                    8,342,453      6,494,064

Shareholders' equity

Preferred stock, par value $.01 per share;
61,000,000 shares authorized; none

issued at December 31, 2009; 120,000 shares with
$1,000 liquidation value

issued and outstanding at December 31, 2008, net of  -              109,314
discount

Common stock, par value $.01; 64,000,000 shares
authorized;

40,619,557 and 35,244,946 shares issued and
outstanding

at December 31, 2009 and 2008                        406            352

Additional paid-in capital                           668,441        534,458

Retained earnings                                    171,464        116,707

Net unrealized depreciation on securities, net of    (36,652     )  (62,696   )
tax

Total shareholders' equity                           803,659        698,135

Total liabilities and shareholders' equity           $ 9,146,112    7,192,199




SIGNATURE BANK

FINANCIAL SUMMARY, CAPITAL RATIOS, ASSET QUALITY

(unaudited)

                          Three months ended          Year ended

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

PER COMMON SHARE

Net income - basic (1)    $ 0.52        $ 0.37        $ 1.32        $ 1.37

Net income - diluted (1)  $ 0.51        $ 0.37        $ 1.30        $ 1.35

Average shares            40,618        35,208        38,306        31,390
outstanding - basic

Average shares            41,114        35,622        38,727        31,768
outstanding - diluted

Book value                $ 19.79       $ 16.71       $ 19.79       $ 16.71

SELECTED FINANCIAL DATA

Return on average total   0.93    %     0.75    %     0.79    %     0.68    %
assets

Return on average         10.55   %     8.46    %     8.35    %     7.72    %
shareholders' equity

Return on average common  10.55   %     9.07    %     7.26    %     8.56    %
shareholders' equity

Efficiency ratio (2)      45.00   %     50.28   %     50.46   %     55.55   %

Efficiency ratio
excluding write-down for
other than                44.73   %     45.31   %     50.24   %     51.71   %
temporary impairment of
securities (2)

Yield on interest-earning 4.90    %     5.46    %     5.02    %     5.38    %
assets

Yield on interest-earning
assets, tax-equivalent    4.90    %     5.46    %     5.02    %     5.38    %
basis (3)

Cost of deposits and      1.52    %     2.05    %     1.71    %     2.20    %
borrowings

Net interest margin       3.48    %     3.51    %     3.41    %     3.25    %

Net interest margin,      3.48    %     3.51    %     3.41    %     3.25    %
tax-equivalent basis (3)

(1) For the twelve months ended December 31, 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.




                                     December 31,  September 30,  December 31,
                                     2009          2009           2008

CAPITAL RATIOS

Tangible common equity (4)           8.79%         9.00%          8.19%

Tier one leverage                    9.39%         9.80%          10.61%

Tier one risk-based                  13.57%        14.46%         17.00%

Total risk-based                     14.47%        15.34%         17.83%

ASSET QUALITY

Non-performing loans                 $ 46,606      $ 51,246       $ 31,885

Allowance for loan losses            $ 55,120      $ 49,701       $ 36,987

Allowance for loan losses to         118.27%       96.99%         116.00%
non-performing loans

Allowance for loan losses to total   1.26%         1.20%          1.07%
loans

Non-performing loans to total loans  1.07%         1.24%          0.92%

Quarterly net charge-offs to average 0.61%         0.66%          0.32%
loans (annualized)

(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. 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

                        December 31, 2009             December 31, 2008

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

INTEREST-EARNING ASSETS

Short-term investments  $ 176,098   60       0.14%    35,766    84       0.93%

Investment securities   4,070,136   46,484   4.57%    3,115,079 41,610   5.34%

Commercial loans and
commercial              3,844,429   53,774   5.55%    3,003,869 42,879   5.68%

mortgages (1)

Residential mortgages   184,580     2,405    5.21%    179,722   2,534    5.64%

Consumer loans          180,607     3,205    7.04%    139,497   2,733    7.79%

Loans held for sale     185,362     870      1.86%    200,480   1,831    3.63%

Total interest-earning  8,641,212   106,798  4.90%    6,674,413 91,671   5.46%
assets

Non-interest-earning    271,959                       460,659
assets

Total assets            $ 8,913,171                   7,135,072

INTEREST-BEARING
LIABILITIES

Interest-bearing
deposits

NOW accounts            660,038     1,175    0.71%    335,791   1,632    1.93%

Money market accounts   3,776,730   15,397   1.62%    2,573,205 15,372   2.38%

Time deposits           869,525     5,254    2.40%    578,890   4,546    3.12%

Non-interest-bearing    1,874,194   -        -        1,459,756 -        -
deposits

Total deposits          7,180,487   21,826   1.21%    4,947,642 21,550   1.73%

Borrowings              900,874     9,216    4.06%    1,417,128 11,195   3.14%

Total deposits and      8,081,361   31,042   1.52%    6,364,770 32,745   2.05%
borrowings

Other
non-interest-bearing
liabilities

and shareholders'       831,810                       770,302
equity

Total liabilities and   $ 8,913,171                   7,135,072
shareholders' equity

OTHER DATA

Tax-equivalent basis

Net interest income /               75,756   3.38%              58,926   3.41%
interest rate spread

Net interest margin                          3.48%                       3.51%

Tax-equivalent
adjustment / effect

Net interest income /               (22)     (0.00)%            (25)     (0.00)%
interest rate spread

Net interest margin                          (0.00)%                     (0.00)%

As reported

Net interest income /               75,734   3.38%              58,901   3.41%
interest rate spread

Net interest margin                          3.48%                       3.51%

Ratio of average
interest-earning assets

to average
interest-bearing                             106.93%                     104.86%
liabilities

(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)

                        Year ended                    Year ended

                        December 31, 2009             December 31, 2008

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

INTEREST-EARNING ASSETS

Short-term investments  $ 136,350   260      0.19%    77,656    2,105    2.71%

Investment securities   3,567,812   169,732  4.76%    3,121,478 155,616  4.99%

Commercial loans and
commercial              3,496,846   192,445  5.50%    2,379,967 139,198  5.85%

mortgages (1)

Residential mortgages   180,789     9,819    5.43%    177,138   10,072   5.69%

Consumer loans          164,004     11,214   6.84%    125,451   11,184   8.92%

Loans held for sale     146,448     2,786    1.90%    134,990   5,596    4.15%

Total interest-earning  7,692,249   386,256  5.02%    6,016,680 323,771  5.38%
assets

Non-interest-earning    296,305                       355,796
assets

Total assets            $ 7,988,554                   6,372,476

INTEREST-BEARING
LIABILITIES

Interest-bearing
deposits

NOW accounts            594,455     4,924    0.83%    312,469   6,729    2.15%

Money market accounts   3,187,039   59,122   1.86%    2,607,894 66,090   2.53%

Time deposits           840,529     21,352   2.54%    440,483   14,931   3.39%

Non-interest-bearing    1,668,753   -        -        1,390,712 -        -
deposits

Total deposits          6,290,776   85,398   1.36%    4,751,558 87,750   1.85%

Borrowings              944,144     38,342   4.06%    1,073,199 40,443   3.77%

Total deposits and      7,234,920   123,740  1.71%    5,824,757 128,193  2.20%
borrowings

Other
non-interest-bearing
liabilities

and shareholders'       753,634                       547,719
equity

Total liabilities and   $ 7,988,554                   6,372,476
shareholders' equity

OTHER DATA

Tax-equivalent basis

Net interest income /               262,516  3.31%              195,578  3.18%
interest rate spread

Net interest margin                          3.41%                       3.25%

Tax-equivalent
adjustment / effect

Net interest income /               (121)    (0.00)%            (307)    (0.00)%
interest rate spread

Net interest margin                          (0.00)%                     (0.00)%

As reported

Net interest income /               262,395  3.31%              195,271  3.18%
interest rate spread

Net interest margin                          3.41%                       3.25%

Ratio of average
interest-earning assets

to average
interest-bearing                             106.32%                     103.29%
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 Eric R. Howell, 646-822-1402 Chief Financial Officer ehowell@signatureny.com or Media Contact: Susan J. Lewis, 646-822-1825 slewis@signatureny.com