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Investor Relations

Press Release

Signature Bank Reports 2010 Second Quarter Results

Company Release - 7/27/2010 5:00 AM ET
  • Net Income for the 2010 Second Quarter Reached a Record $22.3 Million, or $0.54 Diluted Earnings Per Share, Up $10.3 Million, or 85.9 Percent, from $12.0 Million, or $0.32 Diluted Earnings Per Share, in the 2009 Second Quarter
  • Deposits in the Second Quarter Rose $570.9 Million to $8.47 Billion; Includes Quarterly Core Deposit Growth of $507.7 Million, or 6.8 Percent; Deposits for the First Half of 2010 Increased $1.25 Billion, or 17.3 Percent, Since December 31, 2009
  • Loans for the Quarter Increased $195.1 Million, or 4.3 Percent, to $4.69 Billion at the End of the 2010 Second Quarter
  • Non-Performing Loans Remained Stable at $44.6 Million, or 0.95 Percent of Total Loans, at June 30, 2010, Versus $44.4 Million, or 0.99 Percent at the End of the 2010 First Quarter and $47.9 Million, or 1.27 Percent, at the End of the 2009 Second Quarter
  • Tier One Leverage, Tier One Risk-Based and Total Risk-Based Capital Ratios Were 8.98 Percent, 13.55 Percent and 14.54 Percent, Respectively, at June 30, 2010; Signature Bank Remains Significantly Above FDIC “Well Capitalized” Standards; Tangible Common Equity Ratio Was 8.54 Percent
  • Net Interest Margin on a Tax-Equivalent Basis Was 3.38 Percent for the 2010 Second Quarter Versus 3.51 Percent for the 2010 First Quarter and 3.39 Percent for the 2009 Second Quarter
  • Three Private Client Banking Teams Joined During the Second Quarter; Four Added in First Half of 2010

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

Net income for the 2010 second quarter reached a record $22.3 million, or $0.54 diluted earnings per share, compared with $12.0 million, or $0.32 diluted earnings per share, for the 2009 second quarter. The considerable improvement in net income for the 2010 second quarter, versus the same period last year, is mostly the result of an increase in net interest income, fueled by core deposit growth and continued loan growth. These factors were partially offset by increases in the provision for loan losses and non-interest expenses.

Net interest income for the 2010 second quarter reached $81.1 million, up $20.5 million, or 33.9 percent, when compared with the 2009 second quarter. Total assets were $10.38 billion at June 30, 2010, an increase of $2.5 billion, or 31.7 percent, from $7.88 billion for the 2009 second quarter. Average assets for the 2010 second quarter reached $9.93 billion, an increase of $2.45 billion, or 32.8 percent, from the same period a year ago.

Deposits for the 2010 second quarter rose $570.9 million, or 7.2 percent, to $8.47 billion at June 30, 2010. This includes core deposit growth of $507.7 million, coupled with an increase of $63.2 million in short-term escrow deposits. When compared with deposits at December 31, 2009, the overall deposit growth during the first half of 2010 totaled $1.25 billion, or 17.3 percent. When compared with deposits at June 30, 2009, overall deposit growth for the past 12 months was $2.37 billion, or 38.8 percent.

“Our success this quarter, where we crossed $10 billion in total assets, stems from our ongoing commitment to our depositors and continually ensuring that we offer them a well capitalized, financially sound institution; one where they can sleep at night knowing their deposits are safe. The Bank continues to demonstrate that our depositor-focused model distinguishes this institution in the marketplace, particularly during a time of turmoil and uncertainty,” stated Joseph J. DePaolo, President and Chief Executive Officer at Signature Bank.

“We continue to invest in our future by attracting veteran bankers, and during the first half of this year, we added four private client banking teams. Clearly, with Signature Bank having only one percent deposit market share there remains significant client opportunity in, by far, the largest deposit market in the country. Our growing network of banking teams offers clients a safe institution with a solid capital position that delivers strong financial performance and unrivaled financial service,” DePaolo remarked.

Scott A. Shay, Chairman of the Board, explained: “As we surpass the milestones of $10 billion in assets and $8 billion in deposits and approach $900 million in capital, it is an appropriate time to recall that Signature Bank opened its doors just over nine years ago with no deposits and no financial assets, other than $42.5 million of initial contributed capital. Our key assets were non-financial: our people, our drive and our spirit. These assets led us to where we are today, and allowed the Bank to enjoy significant growth without any acquisitions. From the day we commenced operations, we placed the interests of our depositors first and foremost, and we will continue to do so. Our success is a result of our intense focus on assisting our clients to succeed and ensuring that the safety of their money is our top priority. We also expect to continue to be a bit boring by avoiding the latest hot trends in favor of staid and conservative investments. We believe that in banking, boring is good.”

Shay further noted: “As expected, given the Bank’s business model of serving privately owned businesses, we anticipate being largely unaffected by the banking reform legislation since we are not active in derivatives, proprietary trading or in the broad retail consumer space.”

Capital

The Bank’s tier one leverage, tier one risk-based, and total risk-based capital ratios were approximately 8.98 percent, 13.55 percent and 14.54 percent, respectively, as of June 30, 2010. Each of these ratios is well in excess of regulatory requirements. The Bank’s strong risk-based capital ratios reflect the relatively low risk profile of the Bank’s balance sheet. The Bank’s tangible common equity ratio remains strong at 8.54 percent.

Net Interest Income

Net interest income on a tax-equivalent basis for the 2010 second quarter was $81.1 million, up $20.5 million, or 33.9 percent, from the same period last year. Average interest-earning assets of $9.62 billion for the second quarter of 2010 were up $2.45 billion, or 34.1 percent from the 2009 second quarter. Yield on interest-earning assets for the 2010 second quarter decreased 39 basis points, to 4.69 percent, versus the second quarter of 2009. The decrease was primarily attributable to lower prevailing interest rates and unusually high levels of cash.

Average cost of deposits and average cost of funds for the 2010 second quarter decreased by 30 and 39 basis points to 1.10 percent and 1.39 percent, respectively, when compared with the 2009 second quarter. These decreases are predominantly due to lower prevailing interest rates.

Net interest margin on a tax-equivalent basis for the 2010 second quarter was 3.38 percent versus 3.39 percent reported in the same period last year. On a linked quarter basis, net interest margin on a tax-equivalent basis declined 13 basis points. The linked quarter decline was primarily due to a higher-than-normal level of cash for the quarter driven by significant deposit flows and the Bank’s prudent deployment strategy.

Provision for Loan Losses

The Bank’s provision for loan losses for the second quarter of 2010 was $11.1 million, an increase of $1.7 million, or 18.4 percent, over the 2009 second quarter. The increase was primarily driven by charge offs and provisions to recognize the potential effect of the challenging economic environment on the Bank’s loan portfolio.

Net charge-offs for the 2010 second quarter were $6.3 million, or 0.55 percent of average loans on an annualized basis, compared with $6.4 million, or 0.59 percent, for the 2010 first quarter and $4.4 million, or 0.48 percent, for the 2009 second quarter.

Non-Interest Income and Non-Interest Expense

Non-interest income for the 2010 second quarter was $10.3 million, an increase of $2.9 million when compared with the $7.3 million reported in the 2009 second quarter. The increase was predominantly due to an increase in net gains on sales of securities and loans. This was partially offset by a decrease in commissions as well as an increase of $1.7 million in other-than-temporary impairment losses on securities.

Non-interest expense for the 2010 second quarter was $41.7 million, an increase of $2.8 million, or 7.2 percent, versus $38.9 million reported in the 2009 second quarter. The increase was primarily a result of the addition of new private client banking teams and growth in client activity. The 2009 second quarter included an FDIC special assessment fee of $3.5 million.

The Bank’s efficiency ratio improved to 45.7 percent for the 2010 second quarter versus 57.4 percent for the 2009 second quarter. Excluding the FDIC special assessment fee, the efficiency ratio for the 2009 second quarter was 52.2 percent. The improvement was primarily due to growth in net interest income coupled with expense containment.

Loans

Loans, excluding loans held for sale, grew $195.1 million, or 4.3 percent, during the 2010 second quarter to $4.69 billion at June 30, 2010, compared with $4.49 billion at March 31, 2010. At June 30, 2010, loans were 45.1 percent of total assets, versus 46.1 percent at March 31, 2010. Average loans, excluding loans held for sale, reached $4.55 billion in the 2010 second quarter, growing $128.9 million, or 2.9 percent, since the quarter ended March 31, 2010. The increase in loans for the quarter was primarily driven by growth in commercial real estate and multi-family loans underwritten within the Bank’s stringent standards.

At June 30, 2010, non-performing loans remained stable at $44.6 million, representing 0.95 percent of total loans and 0.43 percent of total assets, versus non-performing loans of $44.4 million, or 0.99 percent of total loans, at March 31, 2010 and $47.9 million, or 1.27 percent of total loans, at June 30, 2009. At the end of the 2010 second quarter, the ratio of allowance for loan losses to total loans was 1.38 percent, compared with 1.33 percent at March 31, 2010 and 1.18 percent at June 30, 2009.

Conference Call

Signature Bank’s management will host a conference call to review results of the 2010 second quarter on Tuesday, July 27, 2010, at 10:00 AM ET. All participants should dial 480-629-9692 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 4330440. The replay will be available from approximately 12:00 PM ET on Tuesday, July 27, 2010, through 11:59 PM ET on Friday, July 30, 2010.

About Signature Bank

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

Signature Bank's 23 offices are located throughout the metropolitan New York area. In Manhattan - 261 Madison Avenue; 300 Park Avenue; 71 Broadway; 565 Fifth Avenue; 950 Third Avenue; 200 Park Avenue South; 1020 Madison Avenue and 50 West 57th Street. Brooklyn - 26 Court Street; 84 Broadway and 6321 New Utrecht Avenue. Westchester - 1C Quaker Ridge Road, New Rochelle and 360 Hamilton Avenue, White Plains. Long Island - 1225 Franklin Avenue, Garden City; 279 Sunrise Highway, Rockville Centre; 68 South Service Road, Melville; 923 Broadway, Woodmere; 40 Cuttermill Road, Great Neck and 100 Jericho Quadrangle, Jericho. Queens - 36-36 33rd Street, Long Island City and 78-27 37th Avenue, Jackson Heights. Bronx - 421 Hunts Point Avenue, Bronx. Staten Island - 2066 Hylan Blvd.

For more information, please visit www.signatureny.com.

This press release and oral statements made from time to time by our representatives contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties. Forward-looking statements include information concerning our future results, interest rates and the interest rate environment, loan and deposit growth, loan performance, operations, new private client team hires, new office openings and business strategy. These statements often include words such as "may," "believe," "expect," "anticipate," "intend," "plan," "estimate" or other similar expressions. As you consider forward-looking statements, you should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties and assumptions that could cause actual results to differ materially from those in the forward-looking statements. These factors include but are not limited to: (i) prevailing economic conditions; (ii) changes in interest rates, loan demand, real estate values, and competition, which can materially affect origination levels and gain on sale results in our business, as well as other aspects of our financial performance; (iii) the level of defaults, losses and prepayments on loans made by us, whether held in portfolio or sold in the whole loan secondary markets, which can materially affect charge-off levels and required credit loss reserve levels; (iv) changes in the banking and other financial services regulatory environment and (v) competition for qualified personnel and desirable office locations. Additional risks are described in our quarterly and annual reports filed with the FDIC. You should keep in mind that any forward-looking statements made by Signature Bank speak only as of the date on which they were made. New risks and uncertainties come up from time to time, and we cannot predict these events or how they may affect the Bank. Signature Bank has no duty to, and does not intend to, update or revise the forward-looking statements after the date on which they are made. In light of these risks and uncertainties, you should keep in mind that any forward-looking statement made in this release or elsewhere might not reflect actual results.

SIGNATURE BANK  
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
 
 
Three months ended

June 30,

  Six months ended

June 30,

(dollars in thousands, except per share amounts) 2010 2009   2010 2009
INTEREST AND DIVIDEND INCOME
Loans held for sale $ 611 446 1,616 1,151
Loans, net 64,687 50,895 125,678 98,550
Securities available-for-sale 42,904 36,380 86,066 73,448
Securities held-to-maturity 3,877 2,707 7,049 5,371
Other short-term investments 398   478     848   600  
Total interest income 112,477   90,906     221,257   179,120  
INTEREST EXPENSE
Deposits 22,372 20,511 43,430 41,441
Federal funds purchased and securities sold under
agreements to repurchase 6,413 7,252 12,808 14,465
Federal Home Loan Bank advances 2,601 2,597 5,171 5,166
Other short-term borrowings 1   -     1   -  
Total interest expense 31,387   30,360     61,410   61,072  
Net interest income before provision for loan losses 81,090 60,546 159,847 118,048
Provision for loan losses 11,128   9,402     22,360   18,997  
Net interest income after provision for loan losses 69,962   51,144     137,487   99,051  
NON-INTEREST INCOME
Commissions 2,030 2,654 4,271 5,472
Fees and service charges 3,525 3,294 7,047 6,613
Net gains on sales of securities 5,175 2,100 17,843 4,709
Net gains on sales of loans 884 382 2,357 868
Other-than-temporary impairment losses on securities:
Total impairment losses on securities (11,493 ) (2,335 ) (27,313 ) (2,335 )
Portion of loss recognized in other comprehensive income (before taxes) 9,574   2,158     15,888   2,158  
Net impairment losses on securities recognized in earnings (1,919 ) (177 ) (11,425 ) (177 )
Net trading income (loss) 6 (1,483 ) 11 (691 )
Other income 558   547     1,280   919  
Total non-interest income 10,259   7,317     21,384   17,713  
NON-INTEREST EXPENSE
Salaries and benefits 24,998 21,410 49,309 41,883
Occupancy and equipment 3,609 3,325 7,295 6,688
Other general and administrative 13,108   14,184     24,853   24,340  
Total non-interest expense 41,715   38,919     81,457   72,911  
Income before income taxes 38,506 19,542 77,414 43,853
Income tax expense 16,237   7,565     33,051   17,264  
Net income 22,269 11,977 44,363 26,589
Dividends on preferred stock and related discount accretion -   -     -   12,203  
Net income available to common shareholders $ 22,269   11,977     44,363   14,386  
PER COMMON SHARE DATA
Earnings per share – basic (1) $ 0.54 0.33 1.09 0.40
Earnings per share – diluted (1) $ 0.54 0.32 1.07 0.40
 

(1) For the six months ended June 30, 2009, includes the negative effect of the $10.2 million deemed dividend associated with the difference between the redemption payment and the carrying value of the preferred stock repurchased from the United States Department of the Treasury.

SIGNATURE BANK  
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
 
 
June 30, December 31,
2010 2009
(dollars in thousands, except per share amounts)   (unaudited)  
ASSETS
Cash and due from banks $ 112,228 95,746
Short-term investments   112,444   12,603  
Total cash and cash equivalents   224,672   108,349  
Securities available-for-sale (pledged $1,763,411 at June 30, 2010
and $1,584,371 at December 31, 2009) 4,539,397 3,837,583
Securities held-to-maturity (fair value $404,077 at June 30,
2010 and $290,608 at December 31, 2009; pledged $281,275 at
June 30, 2010 and $194,336 at December 31, 2009) 399,059 295,984
Federal Home Loan Bank stock 25,029 23,906
Loans held for sale 314,059 293,207
Loans, net 4,622,084 4,320,978
Premises and equipment, net 29,949 31,802
Accrued interest and dividends receivable 47,193 43,193
Other assets   181,762   191,110  
Total assets   $ 10,383,204   9,146,112  
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Non-interest-bearing 1,944,145 1,969,734
Interest-bearing   6,524,517   5,252,812  
Total deposits   8,468,662   7,222,546  
Federal funds purchased and securities sold under agreements
to repurchase 632,000 697,000
Federal Home Loan Bank advances 260,000 305,000
Other short-term borrowings 4,991 6,900
Accrued expenses and other liabilities   130,661   111,007  
Total liabilities   9,496,314   8,342,453  
Shareholders’ equity
Preferred stock, par value $.01 per share; 61,000,000 shares authorized; none
issued at June 30, 2010 and December 31, 2009
Common stock, par value $.01 per share; 64,000,000 shares authorized; - -
41,000,710 and 40,619,557 shares issued and outstanding
at June 30, 2010 and December 31, 2009 410 406
Additional paid-in capital 678,208 668,441
Retained earnings 215,827 171,464
Net unrealized depreciation on securities, net of tax   (7,555 ) (36,652 )
Total shareholders' equity   886,890   803,659  
Total liabilities and shareholders' equity   $ 10,383,204   9,146,112  

SIGNATURE BANK  
FINANCIAL SUMMARY, CAPITAL RATIOS, ASSET QUALITY
(unaudited)
 
 
Three months ended Six months ended
(dollars in thousands, except ratios and per share amounts) June 30,

2010

June 30,

2009

  June 30,

2010

June 30,

2009

PER COMMON SHARE
Net income - basic (1) $ 0.54 $ 0.33 $ 1.09 $ 0.40
Net income - diluted (1) $ 0.54 $ 0.32 $ 1.07 $ 0.40
Average shares outstanding - basic 40,913 36,655 40,776 35,964
Average shares outstanding - diluted 41,535 36,972 41,403 36,293
Book value $ 21.63 $ 18.14 $ 21.63 $ 18.14
 
SELECTED FINANCIAL DATA
Return on average total assets 0.90% 0.64% 0.92% 0.73%
Return on average shareholders' equity 10.38% 7.29% 10.58% 7.48%
Return on average common shareholders' equity (1) 10.38% 7.29% 10.58% 4.38%
Efficiency ratio (2) 45.67% 57.35% 44.95% 53.71%

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

 

44.73% 57.20% 42.28% 53.64%

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

 

47.35% 59.02% 46.60% 55.56%
Yield on interest-earning assets 4.69% 5.08% 4.77% 5.14%
Yield on interest-earning assets, tax-equivalent basis (3) 4.69% 5.08% 4.77% 5.14%
Cost of deposits and borrowings 1.39% 1.78% 1.41% 1.85%
Net interest margin 3.38% 3.39% 3.44% 3.39%
Net interest margin, tax-equivalent basis (3) 3.38% 3.39% 3.44% 3.39%
 

(1) For the six months ended June 30, 2009, includes the negative effect of the $10.2 million deemed dividend associated with the difference between the redemption payment and the carrying value of the preferred stock repurchased from the U.S. Treasury.

(2) The efficiency ratio is calculated by dividing non-interest expense by the sum of net interest income before provision for loan losses and other non-interest income.

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

 
  June 30,

2010

March 31,

2010

  December 31,

2009

June 30,

2009

CAPITAL RATIOS
Tangible common equity (4) 8.54% 8.56% 8.79% 9.34%
Tier one leverage 8.98% 9.10% 9.39% 10.65%
Tier one risk-based 13.55% 13.66% 13.57% 15.26%
Total risk-based 14.54% 14.62% 14.47% 16.11%
 
ASSET QUALITY
Non-performing loans $ 44,600 $ 44,427 $ 46,606 $ 47,884
Allowance for loan losses $ 64,793 $ 59,954 $ 55,120 $ 44,430
Allowance for loan losses to non-performing loans 145.28% 134.95% 118.27% 92.79%
Allowance for loan losses to total loans 1.38% 1.33% 1.26% 1.18%
Non-performing loans to total loans 0.95% 0.99% 1.07% 1.27%
Quarterly net charge-offs to average loans (annualized) 0.55% 0.59% 0.61% 0.48%
 

(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
June 30, 2010 June 30, 2009
(dollars in thousands) Average Balance Interest Income/ Expense Average Yield/ Rate   Average Balance Interest Income/ Expense Average Yield/ Rate
INTEREST-EARNING ASSETS
Short-term investments $ 327,605 211 0.26 % 140,320 71 0.20 %
Investment securities 4,595,003 46,968 4.09 % 3,266,167 39,494 4.84 %

Commercial loans and commercial

 mortgages (1)

4,177,308 58,495 5.62 % 3,334,181 45,831 5.51 %
Residential mortgages 180,811 2,451 5.42 % 178,152 2,437 5.47 %
Consumer loans 195,071 3,741 7.69 % 158,097 2,660 6.75 %
Loans held for sale 145,227 611 1.69 %   97,346 446   1.84 %
Total interest-earning assets 9,621,025 112,477 4.69 %   7,174,263 90,939   5.08 %
Non-interest-earning assets 312,596       306,412    
Total assets $ 9,933,621       7,480,675    
INTEREST-BEARING LIABILITIES
Interest-bearing deposits
NOW accounts 678,092 1,079 0.64 % 583,987 1,208 0.83 %
Money market accounts 4,691,067 16,542 1.41 % 2,927,952 14,040 1.92 %
Time deposits 874,352 4,751 2.18 % 805,589 5,263 2.62 %
Non-interest-bearing deposits 1,894,242 - -     1,558,007 -   -  
Total deposits 8,137,753 22,372 1.10 %   5,875,535 20,511   1.40 %
Borrowings 892,820 9,015 4.05 %   951,459 9,849   4.15 %
Total deposits and borrowings 9,030,573 31,387 1.39 %   6,826,994 30,360   1.78 %
Other non-interest-bearing liabilities
and shareholders' equity 903,048       653,681    
Total liabilities and shareholders' equity $ 9,933,621       7,480,675    
OTHER DATA
Tax-equivalent basis
Net interest income / interest rate spread 81,090 3.30 % 60,579 3.30 %
Net interest margin     3.38 %       3.39 %
Tax-equivalent adjustment / effect
Net interest income / interest rate spread - - (33 ) -
Net interest margin     -         -  
As reported
Net interest income / interest rate spread 81,090 3.30 % 60,546 3.30 %
Net interest margin     3.38 %       3.39 %
Ratio of average interest-earning assets
to average interest-bearing liabilities     106.54 %       105.09 %
(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)
 
 
Six months ended Six months ended
June 30, 2010 June 30, 2009

(dollars in thousands)

Average Balance Interest Income/ Expense Average Yield/ Rate   Average Balance Interest Income/ Expense Average Yield/ Rate
INTEREST-EARNING ASSETS
Short-term investments $ 252,725 291 0.23 % 83,529 114 0.28 %
Investment securities 4,444,388 93,672 4.22 % 3,231,966 79,305 4.91 %

Commercial loans and commercial

  mortgages (1)

4,120,361 114,233 5.59 % 3,263,258 88,473 5.47 %
Residential mortgages 178,932 4,639 5.19 % 179,160 4,982 5.56 %
Consumer loans 189,822 6,807 7.23 % 153,272 5,162 6.79 %
Loans held for sale 171,047 1,616   1.91 %   121,388 1,151   1.91 %
Total interest-earning assets 9,357,275 221,258   4.77 %   7,032,573 179,187   5.14 %
Non-interest-earning assets 348,594       322,218    
Total assets $ 9,705,869       7,354,791    
INTEREST-BEARING LIABILITIES
Interest-bearing deposits
NOW accounts 685,478 2,200 0.65 % 521,156 2,487 0.96 %
Money market accounts 4,458,203 31,813 1.44 % 2,817,511 28,260 2.02 %
Time deposits 848,177 9,417 2.24 % 789,425 10,694 2.73 %
Non-interest-bearing deposits 1,897,213 -   -     1,548,614 -   -  
Total deposits 7,889,071 43,430   1.11 %   5,676,706 41,441   1.47 %
Borrowings 900,740 17,980   4.03 %   984,162 19,631   4.02 %
Total deposits and borrowings 8,789,811 61,410   1.41 %   6,660,868 61,072   1.85 %
Other non-interest-bearing liabilities

and shareholders' equity

916,058       693,923    
Total liabilities and shareholders' equity $ 9,705,869       7,354,791    
OTHER DATA
Tax-equivalent basis
Net interest income / interest rate spread 159,848 3.36 % 118,115 3.29 %
Net interest margin     3.44 %       3.39 %
Tax-equivalent adjustment / effect
Net interest income / interest rate spread (1 ) - (67 ) -
Net interest margin     -         -  
As reported
Net interest income / interest rate spread 159,847 3.36 % 118,048 3.29 %
Net interest margin     3.44 %       3.39 %
Ratio of average interest-earning assets
to average interest-bearing liabilities     106.46 %       105.58 %
(1) Includes interest income on certain tax-exempt assets presented on a tax-equivalent basis using a 35 percent federal tax rate.

SIGNATURE BANK  
NON-GAAP FINANCIAL MEASURES
(unaudited)
 

Management believes that the presentation of net income and diluted earnings per share excluding the after tax effect of net gains on sales of securities and net impairment losses on securities recognized in earnings, which are non-GAAP financial measures, assists investors when comparing results period-to-period in a more consistent manner and provides a better measure of Signature Bank's results. The following table presents a reconciliation of net income (as reported) to net income excluding the after tax effect of net gains on sales of securities and net impairment losses on securities recognized in earnings along with the resulting diluted earnings per share.

 
Three months ended June 30, Six months ended June 30,
(dollars in thousands, except per share amounts) 2010 2009     2010 2009
Net income (as reported) $ 22,269 11,977 $ 44,363 26,589
Net gains on sales of securities (5,175 ) (2,100 ) (17,843 ) (4,709 )
Net impairment losses on securities recognized in earnings 1,919 177 11,425 177
Tax effect 1,443   851     2,844   2,004  
Net income - excluding after tax effect of net gains on sales of securities
and net impairment losses on securities recognized in earnings $ 20,456   10,905     $ 40,789   24,061  
Diluted earnings per share - excluding after tax effect of net gains on sales of
securities and net impairment losses on securities recognized in earnings $ 0.50 0.30 $ 1.00 0.67

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