Signature Bank Reports 2015 Third Quarter Results

October 20, 2015

Signature Bank Reports 2015 Third Quarter Results

Net Income for the 2015 Third Quarter Reached a Record $96.2 Million, or $1.88 Diluted Earnings Per Share, An Increase of $19.4 Million, or 25.3 Percent, from $76.8 Million, or $1.52 Diluted Earnings Per Share, Reported in the 2014 Third Quarter
Total Deposits in the Third Quarter Grew a Record $2.16 Billion to $26.61 Billion, Including Core Deposit Growth of $1.15 Billion; Total Deposits Have Grown $5.29 Billion, or 24.8 Percent, Since the End of the 2014 Third Quarter
Average Deposits Increased $1.54 Billion, or 6.3 Percent, in the 2015 Third Quarter
For the 2015 Third Quarter, Loans Increased a Record $1.70 Billion, or 8.3 Percent, to $22.23 Billion. Since the End of the 2014 Third Quarter, Loans Have Increased 34.3 Percent, or $5.68 Billion
Non-Accrual Loans were $59.6 Million, or 0.27 Percent of Total Loans, at September 30, 2015, Versus $41.6 Million, or 0.20 Percent, at the End of the 2015 Second Quarter and $24.4 Million, or 0.15 Percent, at the End of the 2014 Third Quarter
Net Interest Margin Was 3.22 Percent, Compared with 3.27 Percent for the 2015 Second Quarter and 3.25 Percent for the 2014 Third Quarter. Approximately Three Basis Points of the Linked Quarter Decrease Was Driven by Record Deposit Growth
Core Net Interest Margin Excluding Loan Prepayment Penalty Income Decreased Six Basis Points to 3.11 Percent for the 2015 Third Quarter when Compared with the Previous Quarter. Again, Approximately Three Basis Points of the Linked Quarter Decrease was Driven by Record Deposit Growth
Tier 1 Leverage, Common Equity Tier 1 Risk-Based, Tier 1 Risk-Based and Total Risk-Based Capital Ratios were 8.95 Percent, 11.58 Percent, 11.58 Percent and 12.34 Percent, Respectively, at September 30, 2015. Signature Bank Remains Significantly Above FDIC “Well Capitalized” Standards. Tangible Common Equity Ratio Was 8.84 Percent
One Private Client Banking Team Joined During the 2015 Third Quarter; Five Teams Added During the First Nine Months of 2015

NEW YORK--(BUSINESS WIRE)-- Signature Bank (Nasdaq: SBNY), a New York-based full-service commercial bank, today announced results for its third quarter ended September 30, 2015. Net income for the 2015 third quarter reached a record $96.2 million, or $1.88 diluted earnings per share, versus $76.8 million, or $1.52 diluted earnings per share, for the 2014 third quarter. The record net income for the 2015 third quarter, versus the comparable quarter last year, is primarily due to an increase in net interest income, fueled by record deposit growth and record loan growth. These factors were partially offset by an increase in non-interest expenses.

Net interest income for the 2015 third quarter reached $250.0 million, up $44.7 million, or 21.8 percent, when compared with the 2014 third quarter. This increase is primarily due to growth in average interest-earning assets. Total assets reached $31.92 billion at September 30, 2015, an increase of $5.97 billion, or 23.0 percent, from $25.95 billion at September 30, 2014. Average assets for the 2015 third quarter reached $31.19 billion, an increase of $5.82 billion, or 22.9 percent, compared with the 2014 third quarter.

Deposits for the 2015 third quarter rose a record $2.16 billion, or 8.8 percent, to $26.61 billion at September 30, 2015. When compared with deposits at September 30, 2014, overall deposit growth for the last twelve months was 24.8 percent, or $5.29 billion. Excluding short-term escrow and brokered deposits of $4.40 billion at the end of the 2015 third quarter and $3.40 billion at the end of the 2015 second quarter, core deposits increased $1.15 billion for the quarter. Average deposits for the 2015 third quarter reached $26.10 billion, an increase of $1.54 billion, or 6.3 percent.

“Once again, Signature Bank delivered another quarter of record setting performance as exemplified by both record deposit and loan growth as well as record earnings. The Bank’s disciplined approach to client centric banking allows us to continue to flourish while meeting the rigors of the unprecedented current regulatory environment,” said Joseph J. DePaolo, President and Chief Executive Officer.

“The way Signature Bank differentiates itself in client care does not go unnoticed. For example, this quarter, the Bank was ranked the Best Business Bank and the Best Attorney Escrow Services Provider by the New York Law Journal readers. Since the New York Law Journal, a leading trade publication for the legal market in New York, introduced its reader survey six years ago, the Bank has continually secured the top spot or ranked within the top three positions in each category in which it was named. Law firms encompass a meaningful part of our client mix, and this ranking is a testament to the fact that the Bank truly stands out amongst professional services organizations, such as law firms. While some of the other rankings we recently achieved signify the strength and quality of the Bank, this -- perhaps most importantly -- is a direct result of the opinions of our clients about our service and the commitment our banking teams pride themselves on delivering. This is ultimately reflected in our financial performance, just as it was this quarter and has been since our inception,” DePaolo concluded.

Scott A. Shay, Chairman of the Board, commented: “At Signature Bank, depositor safety has always been paramount. Therefore, after a long period of low interest rates and high valuations across many asset segments, we stay vigilant in maintaining our credit standards, despite actions of others in the marketplace. We actualize this through our sound understanding and appropriate risk-return pricing as well as ensuring a strong control environment. With asset markets still at high absolute levels, heightened volatility and uncertainty of interest rates, we remain as cautious as ever with respect to depositors’ and shareholders’ funds rather than attempt to stretch for that last basis point. We will continue our focus on safety with the strong belief that this is truly what leads to the best long-term value for shareholders.”

Capital

The Bank’s Tier 1 leverage, common equity Tier 1 risk-based, Tier 1 risk-based, and total risk-based capital ratios were approximately 8.95 percent, 11.58 percent, 11.58 percent, and 12.34 percent, respectively, as of September 30, 2015. 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 8.84 percent. The Bank defines tangible common equity ratio as the ratio of tangible common equity to adjusted tangible assets and calculates this ratio by dividing total consolidated common shareholders’ equity by consolidated total assets.

Net Interest Income

Net interest income for the 2015 third quarter was $250.0 million, an increase of $44.7 million, or 21.8 percent, versus the same period last year, primarily due to growth in average interest-earning assets. Average interest-earning assets of $30.81 billion for the 2015 third quarter represent an increase of $5.79 billion, or 23.1 percent, from the 2014 third quarter. Yield on interest-earning assets for the 2015 third quarter decreased 11 basis points, to 3.64 percent, compared with the 2014 third quarter. This decrease was primarily attributable to prolonged low interest rates.

Average cost of deposits and average cost of funds for the third quarter of 2015 decreased by six and eight basis points, respectively, versus the 2014 third quarter to 0.40 percent and 0.46 percent. These decreases were predominantly due to prolonged low interest rates.

Net interest margin for the 2015 third quarter was 3.22 percent versus 3.25 percent reported in the same period a year ago. On a linked quarter basis, net interest margin decreased five basis points. Excluding loan prepayment penalties in both quarters, linked quarter core margin decreased six basis points to 3.11 percent. Three basis points of the linked quarter decrease was due to an increase in average cash balances of approximately $213.6 million stemming from record deposit growth coupled with a difficult market for securities reinvestment.

Provision for Loan Losses

The Bank’s provision for loan losses for the third quarter of 2015 was $11.4 million, compared with $9.0 million for the 2015 second quarter and $7.7 million for the 2014 third quarter. The increase was largely due to an increase in loan growth and additional reserves for taxi medallion loans.

Net charge-offs for the 2015 third quarter were $5.5 million, or 0.10 percent of average loans on an annualized basis, versus $2.6 million, or 0.05 percent, for the 2015 second quarter and $1.5 million, or 0.04 percent, for the 2014 third quarter.

Non-Interest Income and Non-Interest Expense

Non-interest income for the 2015 third quarter was $7.9 million, down $200,000 when compared with $8.1 million reported in the 2014 third quarter.

Non-interest expense for the third quarter of 2015 was $86.2 million, an increase of $11.9 million, or 16.0 percent, versus $74.3 million reported in the 2014 third quarter. The increase was primarily a result of the addition of new private client banking teams and our continued investment in Signature Financial, as well as an increase in costs in our risk management and compliance related activities.

The Bank’s efficiency ratio improved to 33.4 percent for the 2015 third quarter versus 34.8 percent for the comparable period last year. The improvement was primarily due to growth in net interest income.

Loans

Loans, excluding loans held for sale, grew a record $1.70 billion, or 8.3 percent, during the third quarter of 2015 to $22.23 billion, compared with $20.53 billion at June 30, 2015. At September 30, 2015, loans accounted for 69.6 percent of total assets, versus 68.5 percent at the end of the 2015 second quarter and 63.8 percent at the end of 2014 third quarter. Average loans, excluding loans held for sale, reached $21.38 billion in the 2015 third quarter, growing $1.40 billion, or 7.0 percent, from the 2015 second quarter and $5.54 billion, or 34.9 percent, from the 2014 third quarter. The increase in loans for the quarter was primarily driven by growth in commercial real estate and multi-family loans.

At September 30, 2015, non-accrual loans were $59.6 million, representing 0.27 percent of total loans and 0.19 percent of total assets, compared with non-accrual loans of $41.6 million, or 0.20 percent of total loans, at June 30, 2015 and $24.4 million, or 0.15 percent of total loans, at September 30, 2014. At September 30, 2015, the ratio of allowance for loan and lease losses to total loans was 0.82 percent, versus 0.86 percent at June 30, 2015 and 0.95 percent at September 30, 2014. Additionally, the ratio of allowance for loan and lease losses to non-accrual loans, or the coverage ratio, was 307 percent for the 2015 third quarter versus 426 percent for the second quarter of 2015 and 642 percent for the 2014 third quarter.

Conference Call

Signature Bank’s management will host a conference call to review results of the 2015 third quarter on Tuesday, October 20, 2015, at 10:00 AM ET. All participants should dial 866-359-8135 at least ten minutes prior to the start of the call and reference conference ID #50148126. International callers should dial 901-300-3484.

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 "Investor Information," then, under "Company News," select "Conference Calls" to access the link to the call. To listen to a telephone replay of the conference call, please dial 800-585-8367 or 404-537-3406 and enter conference ID #50148126. The replay will be available from approximately 1:00 PM ET on Tuesday, October 20, 2015 through 11:59 PM ET on Friday, October 23, 2015.

About Signature Bank

Signature Bank, member FDIC, is a New York-based full-service commercial bank with 29 private client offices throughout the New York metropolitan area, including those in Manhattan, Brooklyn, Westchester, Long Island, Queens, the Bronx, Staten Island and Connecticut. The Bank’s growing network of private client banking teams serves the needs of privately owned businesses, their owners and senior managers.

Signature Bank offers a wide variety of business and personal banking products and services. Its specialty finance subsidiary, Signature Financial, LLC, provides equipment finance and leasing. Signature Securities Group Corporation, a wholly owned Bank subsidiary, is a licensed broker-dealer, investment adviser and member FINRA/SIPC, offering investment, brokerage, asset management and insurance products and services.

Signature Bank was named the Best Bank in America by Forbes for 2015 and ranked third on leading trade journal Bank Director’s 2015 Bank Performance Scorecard for banks with assets between $5 and $50 billion.

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. You should not place undue reliance on those statements because they are subject to numerous risks and uncertainties relating to our operations and business environment, all of which are difficult to predict and may be beyond our control. 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 teams and other hires, new office openings and business strategy. These statements often include words such as "may," "believe," "expect," "anticipate," "intend," “potential,” “opportunity,” “could,” “project,” “seek,” “should,” “will,” would,” "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 and can change as a result of many possible events or factors, not all of which are known to us or in our control. These factors include but are not limited to: (i) prevailing economic conditions; (ii) changes in interest rates, loan demand, real estate values and competition, any of which can materially affect origination levels and gain on sale results in our business, as well as other aspects of our financial performance, including earnings on interest-bearing assets; (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 monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System; (v) changes in the banking and other financial services regulatory environment and (vi) competition for qualified personnel and desirable office locations. Although we believe that these forward-looking statements are based on reasonable assumptions, beliefs and expectations, if a change occurs or our beliefs, assumptions and expectations were incorrect, our business, financial condition, liquidity or results of operations may vary materially from those expressed in our forward-looking statements. 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 INCOME
(unaudited)


		Three months ended September 30,					Nine months ended September 30,
(dollars in thousands, except per share amounts)		2015			2014		2015		2014
INTEREST AND DIVIDEND INCOME
Loans held for sale		$	1,291		710		2,399		2,030
Loans and leases, net			216,928		168,382		604,889		473,354
Securities available-for-sale			46,966		48,433		143,333		144,548
Securities held-to-maturity			16,445		17,593		50,213		52,460
Other short-term investments			1,364		1,395		3,715		3,955
	Total interest income		282,994		236,513		804,549		676,347
INTEREST EXPENSE
Deposits			26,375		23,980		75,978		68,420
Federal funds purchased and securities sold under
agreements to repurchase			3,163		4,170		10,465		12,956
Federal Home Loan Bank borrowings			3,489		3,097		9,345		9,522
	Total interest expense		33,027		31,247		95,788		90,898
Net interest income before provision for loan and lease losses			249,967		205,266		708,761		585,449
Provision for loan and lease losses			11,384		7,672		28,228		23,497
Net interest income after provision for loan and lease losses			238,583		197,594		680,533		561,952
NON-INTEREST INCOME
Commissions			2,615		2,926		8,077		8,045
Fees and service charges			5,424		4,792		16,350		14,414
Net gains (losses) on sales of securities			250		(40	)	871		4,816
Net gains on sales of loans			882		1,401		5,894		3,304
Other-than-temporary impairment losses on securities:
Total impairment losses on securities			(366	)	(387	)	(1,659	)	(3,624	)
Portion recognized in other comprehensive income (before taxes)			246		127		977		2,310
Net impairment losses on securities recognized in earnings			(120	)	(260	)	(682	)	(1,314	)
Other losses			(1,196	)	(764	)	(2,749	)	(1,657	)
	Total non-interest income		7,855		8,055		27,761		27,608
NON-INTEREST EXPENSE
Salaries and benefits			58,709		49,859		171,545		145,412
Occupancy and equipment			6,722		5,629		18,970		16,733
Data processing			4,275		3,636		12,196		11,607
FDIC assessment fees			3,855		3,202		11,323		9,109
Professional fees			1,866		1,666		7,324		5,589
Other general and administrative			10,748		10,280		31,426		28,829
	Total non-interest expense		86,175		74,272		252,784		217,279
Income before income taxes			160,263		131,377		455,510		372,281
Income tax expense			64,038		54,572		185,433		156,987
Net income		$	96,225		76,805		270,077		215,294
PER COMMON SHARE DATA
Earnings per share – basic		$	1.89		1.54		5.33		4.44
Earnings per share – diluted		$	1.88		1.52		5.27		4.37

SIGNATURE BANK
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION


	September 30,			December 31,
	2015			2014
(dollars in thousands, except shares and per share amounts)	(unaudited)
ASSETS
Cash and due from banks	$	259,461		274,247
Short-term investments		28,541		24,831
Total cash and cash equivalents		288,002		299,078
Securities available-for-sale		6,265,047		6,073,459
Securities held-to-maturity (fair value $2,170,758 at September 30, 2015
and $2,222,177 at December 31, 2014)		2,139,800		2,208,551
Federal Home Loan Bank stock		99,280		86,338
Loans held for sale		598,792		548,297
Loans and leases, net		22,048,962		17,693,316
Premises and equipment, net		41,925		40,996
Accrued interest and dividends receivable		88,310		79,687
Other assets		350,406		288,918
Total assets	$	31,920,524		27,318,640
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Non-interest-bearing	$	8,144,654		7,064,959
Interest-bearing		18,466,641		15,555,316
Total deposits		26,611,295		22,620,275
Federal funds purchased and securities sold under agreements
to repurchase		755,000		715,000
Federal Home Loan Bank borrowings		1,495,163		1,335,163
Accrued expenses and other liabilities		237,389		151,964
Total liabilities		29,098,847		24,822,402
Shareholders’ equity
Preferred stock, par value $.01 per share; 61,000,000 shares authorized;
none issued at September 30, 2015 and December 31, 2014		-		-
Common stock, par value $.01 per share; 64,000,000 shares authorized;
51,930,104 shares issued and 50,900,849 shares outstanding at September 30, 2015;
51,398,685 shares issued and 50,317,609 shares outstanding at December 31, 2014		509		503
Additional paid-in capital		1,390,484		1,348,661
Retained earnings		1,404,027		1,133,950
Treasury stock, at cost; 41,646 shares at September 30, 2015 and none
at December 31, 2014		(5,765	)	-
Net unrealized gains on securities, net of tax		32,422		13,124
Total shareholders' equity		2,821,677		2,496,238
Total liabilities and shareholders' equity	$	31,920,524		27,318,640

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


	Three months ended September 30,						Nine months ended September 30,
(in thousands, except ratios and per share amounts)	2015			2014			2015			2014
PER COMMON SHARE
Net income - basic	$	1.89		$	1.54		$	5.33		$	4.44
Net income - diluted	$	1.88		$	1.52		$	5.27		$	4.37
Average shares outstanding - basic		50,888			50,000			50,685			48,539
Average shares outstanding - diluted		51,264			50,529			51,209			49,307
Book value	$	55.43		$	47.73		$	55.43		$	47.73

SELECTED FINANCIAL DATA
Return on average total assets		1.22	%		1.20	%		1.22	%		1.20	%
Return on average shareholders' equity		13.83	%		12.99	%		13.58	%		13.70	%
Efficiency ratio (1)		33.42	%		34.82	%		34.32	%		35.44	%
Efficiency ratio excluding net gains on sales of securities and net impairment losses on securities recognized in earnings (1) (2)		33.44	%		34.77	%		34.33	%		35.65	%
Yield on interest-earning assets		3.64	%		3.75	%		3.69	%		3.83	%
Cost of deposits and borrowings		0.46	%		0.54	%		0.48	%		0.56	%
Net interest margin		3.22	%		3.25	%		3.25	%		3.31	%

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

(2)		The efficiency ratio excluding net gains on sales of securities and net impairment losses on securities recognized in earnings 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. This ratio is a metric used by management to evaluate the performance of the Bank's core business activities.


	September 30, 2015			June 30, 2015			December 31, 2014			September 30, 2014
CAPITAL RATIOS
Tangible common equity (3)		8.84	%		9.01	%		9.14	%		9.25	%
Tier 1 leverage		8.95	%		9.16	%		9.25	%		9.45	%
Common equity Tier 1 risk-based (4)		11.58	%		11.85	%		-			-
Tier 1 risk-based		11.58	%		11.85	%		13.49	%		15.49	%
Total risk-based		12.34	%		12.63	%		14.39	%		16.51	%

ASSET QUALITY
Non-accrual loans	$	59,648		$	41,615		$	21,008		$	24,394
Allowance for loan and lease losses	$	182,951		$	177,086		$	164,392		$	156,598
Allowance for loan and lease losses to non-accrual loans		306.72	%		425.53	%		782.52	%		641.95	%
Allowance for loan and lease losses to total loans		0.82	%		0.86	%		0.92	%		0.95	%
Non-accrual loans to total loans		0.27	%		0.20	%		0.12	%		0.15	%
Quarterly net (charge-offs) recoveries to average loans, annualized		(0.10	)%		(0.05	)%		0.00	%		(0.04	)%

(3)		We define tangible common equity as the ratio of tangible common equity to adjusted tangible assets (the "TCE ratio") and calculate this ratio by dividing total consolidated common shareholders' equity by consolidated total assets (we had no intangible assets at any of the dates presented above). Tangible common equity is considered to be a non-GAAP financial measure and should be considered in addition to, not as a substitute for or superior to, financial measures determined in accordance with GAAP. The TCE ratio is a metric used by management to evaluate the adequacy of our capital levels. In addition to tangible common equity, management uses other metrics, such as Tier 1 capital related ratios, to evaluate capital levels.

(4)		As part of the final rules implementing Basel III regulatory capital reforms, a new common equity Tier 1 risk-based capital ratio was added to existing minimum capital requirements as of January 1, 2015.

SIGNATURE BANK
NET INTEREST MARGIN ANALYSIS
(unaudited)


	Three months ended					Three months ended
	September 30, 2015					September 30, 2014
(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	$	514,760	315	0.24	%	605,583	365	0.24	%
Investment securities		8,482,932	64,460	3.04	%	8,254,260	67,056	3.25	%
Commercial loans, mortgages and leases		21,057,887	213,820	4.03	%	15,502,799	165,011	4.22	%
Residential mortgages and consumer loans		326,280	3,108	3.78	%	344,217	3,371	3.89	%
Loans held for sale		427,382	1,291	1.20	%	312,307	710	0.90	%
Total interest-earning assets		30,809,241	282,994	3.64	%	25,019,166	236,513	3.75	%
Non-interest-earning assets		384,117				355,720
Total assets	$	31,193,358				25,374,886
INTEREST-BEARING LIABILITIES
Interest-bearing deposits
NOW and interest-bearing demand	$	2,432,951	2,522	0.41	%	1,362,643	1,326	0.39	%
Money market		14,355,641	21,188	0.59	%	12,137,541	19,485	0.64	%
Time deposits		982,019	2,665	1.08	%	1,133,656	3,169	1.11	%
Non-interest-bearing demand deposits		8,325,949	-	-		6,025,238	-	-
Total deposits		26,096,560	26,375	0.40	%	20,659,078	23,980	0.46	%
Borrowings		2,084,836	6,652	1.27	%	2,184,716	7,267	1.32	%
Total deposits and borrowings		28,181,396	33,027	0.46	%	22,843,794	31,247	0.54	%
Other non-interest-bearing liabilities
and shareholders' equity		3,011,962				2,531,092
Total liabilities and shareholders' equity	$	31,193,358				25,374,886
OTHER DATA
Net interest income / interest rate spread			249,967	3.18	%		205,266	3.21	%
Net interest margin				3.22	%			3.25	%
Ratio of average interest-earning assets
to average interest-bearing liabilities				109.32	%			109.52	%

SIGNATURE BANK
NET INTEREST MARGIN ANALYSIS
(unaudited)


	Nine months ended					Nine months ended
	September 30, 2015					September 30, 2014
(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	$	431,443	782	0.24	%	314,798	554	0.24	%
Investment securities		8,516,240	196,479	3.08	%	8,123,208	200,409	3.29	%
Commercial loans, mortgages and leases		19,614,462	595,607	4.06	%	14,513,826	463,328	4.27	%
Residential mortgages and consumer loans		329,958	9,282	3.76	%	345,812	10,026	3.88	%
Loans held for sale		280,214	2,399	1.14	%	314,768	2,030	0.86	%
Total interest-earning assets		29,172,317	804,549	3.69	%	23,612,412	676,347	3.83	%
Non-interest-earning assets		349,403				361,775
Total assets	$	29,521,720				23,974,187
INTEREST-BEARING LIABILITIES
Interest-bearing deposits
NOW and interest-bearing demand	$	2,050,853	6,108	0.40	%	1,163,036	3,348	0.38	%
Money market		13,919,401	61,797	0.59	%	11,194,327	55,501	0.66	%
Time deposits		958,960	8,073	1.13	%	1,186,684	9,571	1.08	%
Non-interest-bearing demand deposits		7,759,218	-	-		5,640,917	-	-
Total deposits		24,688,432	75,978	0.41	%	19,184,964	68,420	0.48	%
Borrowings		1,979,075	19,810	1.34	%	2,566,474	22,478	1.17	%
Total deposits and borrowings		26,667,507	95,788	0.48	%	21,751,438	90,898	0.56	%
Other non-interest-bearing liabilities
and shareholders' equity		2,854,213				2,222,749
Total liabilities and shareholders' equity	$	29,521,720				23,974,187
OTHER DATA
Net interest income / interest rate spread			708,761	3.21	%		585,449	3.27	%
Net interest margin				3.25	%			3.31	%
Ratio of average interest-earning assets
to average interest-bearing liabilities				109.39	%			108.56	%

SIGNATURE BANK
NON-GAAP FINANCIAL MEASURES
(unaudited)

Management believes that the presentation of certain 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. These non-GAAP measures include the Bank's (i) 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, (ii) tangible common equity ratio, (iii) efficiency ratio excluding net gains on sales of securities and net impairment losses on securities recognized in earnings, and (iv) core net interest margin excluding loan prepayment penalty income. These non-GAAP measures should not be considered a substitute for GAAP-basis measures and results. We strongly encourage investors to review our consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.

The following table presents a reconciliation of net income and diluted earnings per share (as reported) to net income and diluted earnings per share excluding the after tax effect of gains from the sales of securities and net impairment losses on securities recognized in earnings:

	Three months ended September 30,					Nine months ended September 30,
(dollars in thousands, except per share amounts)		2015		2014		2015		2014
Net income (as reported)	$	96,225		76,805		270,077		215,294
Net (gains) losses on sales of securities		(250	)	40		(871	)	(4,816	)
Net impairment losses on securities recognized in earnings		120		260		682		1,314
Tax effect		52		(125	)	77		1,480
Net income - excluding after tax effect of net (gains) losses on sales of securities
and net impairment losses on securities recognized in earnings	$	96,147		76,980		269,965		213,272

Diluted earnings per share (as reported)	$	1.88		1.52		5.27		4.37
Net (gains) losses on sales of securities		-		-		(0.01	)	(0.10	)
Net impairment losses on securities recognized in earnings		-		0.01		0.01		0.03
Tax effect		-		-		-		0.03
Diluted earnings per share - excluding after tax effect of net (gains) losses on sales
of securities and net impairment losses on securities recognized in earnings	$	1.88		1.53		5.27		4.33


The following table reconciles net interest margin (as reported) to core net interest margin excluding loan prepayment penalty income:


	Three months ended September 30,					Nine months ended September 30,
	2015			2014		2015		2014
Net interest margin (as reported)		3.22	%	3.25	%	3.25	%	3.31	%
Margin contribution from loan prepayment penalty income		(0.11	)%	(0.11	)%	(0.10	)%	(0.12	)%
Core net interest margin - excluding loan prepayment penalty income		3.11	%	3.14	%	3.15	%	3.19	%

View source version on businesswire.com: http://www.businesswire.com/news/home/20151020005295/en/

Contacts

Signature Bank
Investor Contact:
Eric R. Howell, 646-822-1402
Executive Vice President – Corporate & Business Development
ehowell@signatureny.com
or
Media Contact:
Susan J. Lewis, 646-822-1825
slewis@signatureny.com

Source: Signature Bank

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Signature Bank Reports 2015 Third Quarter Results