News Press Releases

Signature Bank Reports 2016 Second Quarter Results

SBNY | July 20, 2016

Signature Bank Reports 2016 Second Quarter Results

Net Income for the 2016 Second Quarter Reached $102.2 Million, or $1.90 Diluted Earnings Per Share, An Increase of $11.8 Million, or 13.0 Percent, from $90.5 Million, or $1.77 Diluted Earnings Per Share, Reported in the 2015 Second Quarter. 2016 Second Quarter Net Income Includes a $24.3 Million Increase in the Provision for Loan Losses Predominantly for Chicago Taxi Medallion Loans
Total Deposits in the Second Quarter Grew $1.47 Billion to $29.58 Billion; Total Deposits Have Grown $5.12 Billion, or 21.0 Percent, Since the End of the 2015 Second Quarter
Average Deposits Increased $1.39 Billion, or 5.0 Percent, in the 2016 Second Quarter
For the 2016 Second Quarter, Loans Increased $1.67 Billion, or 6.7 Percent, to $26.71 Billion. Since the End of the 2015 Second Quarter, Loans Have Increased 30.1 Percent, or $6.18 Billion
Non-Accrual Loans were $129.5 Million, or 0.48 Percent of Total Loans, at June 30, 2016, Versus $105.0 Million, or 0.42 Percent, at the End of the 2016 First Quarter and $41.6 Million, or 0.20 Percent, at the End of the 2015 Second Quarter. The Increase in Non-Accrual Loans for the Quarter Was Predominantly Due to Taxi Medallion Loans
Net Interest Margin Was 3.18 Percent, Compared with 3.32 Percent for the 2016 First Quarter and 3.27 Percent for the 2015 Second Quarter. Core Net Interest Margin Excluding Loan Prepayment Penalty Income Decreased Five Basis Points to 3.12 Percent for the 2016 Second Quarter when Compared with the 2016 First Quarter. Four Basis Points of the Decline Is Due to the April 2016 Subordinated Debt Issuance
Tier 1 Leverage, Common Equity Tier 1 Risk-Based, Tier 1 Risk-Based and Total Risk-Based Capital Ratios were 9.60 Percent, 12.00 Percent, 12.00 Percent and 13.67 Percent, Respectively, at June 30, 2016. Signature Bank Remains Significantly Above FDIC “Well Capitalized” Standards. Tangible Common Equity Ratio Was 9.52 Percent
In April 2016, the Bank Successfully Issued $260.0 Million in Subordinated Debt to Institutional Investors
Two Private Client Banking Teams Joined During the 2016 Second Quarter; To Date Three Teams Joined in 2016

Signature Bank (Nasdaq: SBNY), a New York-based full-service commercial bank, today announced results for its second quarter ended June 30, 2016. Net income for the 2016 second quarter reached $102.2 million, or $1.90 diluted earnings per share, versus $90.5 million, or $1.77 diluted earnings per share, for the 2015 second quarter. The increase in net income for the 2016 second quarter, versus the comparable quarter last year, is primarily due to an increase in net interest income, fueled by strong deposit and loan growth. These factors were partially offset by an increase in the provision for loan losses of $24.3 million and an increase in non-interest expenses, as well as a decrease in loan prepayment penalty income.

Net interest income for the 2016 second quarter reached $281.6 million, up $45.3 million, or 19.2 percent, when compared with the 2015 second quarter. This increase is primarily due to growth in average interest-earning assets. Total assets reached $36.55 billion at June 30, 2016, an increase of $6.58 billion, or 21.9 percent, from $29.97 billion at June 30, 2015. Average assets for the 2016 second quarter reached $36.01 billion, an increase of $6.66 billion, or 22.7 percent, compared with the 2015 second quarter.

Deposits for the 2016 second quarter rose $1.47 billion, or 5.2 percent, to $29.58 billion at June 30, 2016. When compared with deposits at June 30, 2015, overall deposit growth for the last twelve months was 21.0 percent, or $5.12 billion. Average deposits for the 2016 second quarter reached $29.08 billion, an increase of $1.39 billion, or 5.0 percent.

“There are many uncertainties in the current global environment - political, economic and regulatory, among others. However, the one constant is our conviction to depositor safety. In times of turmoil, volatility and market disruption, we rely on the strength and success of Signature Bank’s highly focused depositor-first model to sustain our growth. This deposit first-and-foremost strategy continues to allow us to not only weather storms, but also to seize opportunities arising from changing market conditions,” explained Joseph J. DePaolo, Signature Bank President and Chief Executive Officer.

“We have always emphasized the importance of building our franchise by attracting core relationship deposits, and since our founding, have never ceased to focus on that philosophy. We continue to add talented banking teams that complement and contribute to our growing, depositor-centric network. Our strong growth this quarter speaks directly to the single-point-of-contact approach that is the hallmark of our business and distinguishes us in the marketplace,” DePaolo concluded.

Scott A. Shay, Chairman of the Board, commented: “At Signature Bank, we strive to provide our clients with answers to questions that assist them as they grow their companies and build a sound financial future. We are always here to serve and support our clients. We are not like other banks that oftentimes dictate what their clients should be doing or determine how they should fit into their pre-set bank parameters. Rather, we are a straightforward institution that stands behind all our clients in times of economic and financial turmoil. Sadly, there are too few financial institutions offering straightforward solutions. Nevertheless, we will continue to drive this point home by relentlessly putting our depositors first and keeping our balance sheet at rock-solid levels. This commitment is demonstrative of the ways in which we serve our clients and allows us to better navigate through whatever effects the changing economy might present.”

Capital

In the 2016 second quarter, the Bank issued $260.0 million in subordinated debt to institutional investors. Proceeds from the offering will be used to continue the Bank’s growth in serving its niche market of privately owned businesses. The Bank’s Tier 1 leverage, common equity Tier 1 risk-based, Tier 1 risk-based, and total risk-based capital ratios were approximately 9.60 percent, 12.00 percent, 12.00 percent, and 13.67 percent, respectively, as of June 30, 2016. 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 9.52 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 2016 second quarter was $281.6 million, an increase of $45.3 million, or 19.2 percent, versus the same period last year, primarily due to growth in average interest-earning assets. Average interest-earning assets of $35.61 billion for the 2016 second quarter represent an increase of $6.62 billion, or 22.8 percent, from the 2015 second quarter. Yield on interest-earning assets for the 2016 second quarter decreased four basis points, to 3.66 percent, compared with the 2015 second quarter. This decrease was primarily attributable to prolonged low interest rates and lower prepayment penalty income.

Average cost of deposits and average cost of funds for the second quarter of 2016 increased by one and six basis points, respectively, versus the 2015 second quarter to 0.41 percent and 0.53 percent, respectively.

Net interest margin for the 2016 second quarter was 3.18 percent versus 3.27 percent reported in the same period a year ago. On a linked quarter basis, net interest margin decreased 14 basis points. Excluding loan prepayment penalties in both quarters, linked quarter core net interest margin decreased five basis points to 3.12 percent. Four basis points of the decline are attributable to the April 2016 subordinated debt issuance.

Provision for Loan Losses

The Bank’s provision for loan losses for the second quarter of 2016 was $33.3 million, compared with $19.8 million for the 2016 first quarter and $9.0 million for the 2015 second quarter. The increase was primarily due to additional reserves for Chicago taxi medallion loans. The Bank now has an allowance for loan losses to loans ratio of 30.0% for Chicago taxi medallion loans.

Net charge-offs for the 2016 second quarter were $15.4 million, or 0.24 percent of average loans on an annualized basis, versus $7.8 million, or 0.13 percent, for the 2016 first quarter and $2.6 million, or 0.05 percent, for the 2015 second quarter. $11.2 million of the charge-offs were for Chicago taxi medallion loans.

Non-Interest Income and Non-Interest Expense

Non-interest income for the 2016 second quarter was $13.1 million, up $3.4 million when compared with $9.8 million reported in the 2015 second quarter. The increase was due to a $4.4 million increase in net gains on sales of securities.

Non-interest expense for the second quarter of 2016 was $92.3 million, an increase of $7.4 million, or 8.7 percent, versus $84.9 million reported in the 2015 second quarter. The increase was primarily a result of the addition of new private client banking teams, as well as an increase in costs in our risk management and compliance related activities.

The Bank’s efficiency ratio improved to 31.3 percent for the 2016 second quarter versus 34.5 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 $1.67 billion, or 6.7 percent, during the second quarter of 2016 to $26.71 billion, compared with $25.04 billion at March 31, 2016. At June 30, 2016, loans accounted for 73.1 percent of total assets, versus 71.8 percent at the end of the 2016 first quarter and 68.5 percent at the end of 2015 second quarter. Average loans, excluding loans held for sale, reached $26.05 billion in the 2016 second quarter, growing $1.66 billion, or 6.8 percent, from the 2016 first quarter and $6.07 billion, or 30.4 percent, from the 2015 second quarter. The increase in loans for the quarter was primarily driven by growth in commercial real estate and multi-family loans.

At June 30, 2016, non-accrual loans were $129.5 million, representing 0.48 percent of total loans and 0.35 percent of total assets, compared with non-accrual loans of $105.0 million, or 0.42 percent of total loans, at March 31, 2016 and $41.6 million, or 0.20 percent of total loans, at June 30, 2015. At the end of the 2016 second quarter, $104.9 million of non-accrual loans were taxi medallions. At June 30, 2016, the ratio of allowance for loan and lease losses to total loans was 0.84 percent, versus 0.83 percent at March 31, 2016 and 0.86 percent at June 30, 2015. Additionally, the ratio of allowance for loan and lease losses to non-accrual loans, or the coverage ratio, was 174 percent for the 2016 second quarter versus 197 percent for the first quarter of 2016 and 426 percent for the 2015 second quarter.

Conference Call

Signature Bank’s management will host a conference call to review results of the 2016 second quarter on Wednesday, July 20, 2016, 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 #43493373. 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 #43493373. The replay will be available from approximately 1:00 PM ET on Wednesday, July 20, 2016 through 11:59 PM ET on Sunday, July 24, 2016.

About Signature Bank

Signature Bank, member FDIC, is a New York-based full-service commercial bank with 30 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 ranked sixth on Forbes' Best and Worst Banks in America 2016 list and 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 June 30,					Six months ended June 30,
(dollars in thousands, except per share amounts)			2016		2015		2016		2015
INTEREST AND DIVIDEND INCOME
Loans held for sale		$	742		512		1,991		1,108
Loans and leases, net			253,894		202,198		499,833		387,962
Securities available-for-sale			51,055		47,131		101,342		96,367
Securities held-to-maturity			16,044		16,690		32,333		33,768
Other short-term investments			2,226		1,063		4,236		2,351
	Total interest income		323,961		267,594		639,735		521,556
INTEREST EXPENSE
Deposits			29,798		24,786		58,035		49,602
Federal funds purchased and securities sold under
agreements to repurchase			3,099		3,580		6,167		7,301
Federal Home Loan Bank borrowings			6,510		2,929		12,669		5,857
Long-term debt			2,906		-		2,906		-
	Total interest expense		42,313		31,295		79,777		62,760
Net interest income before provision for loan and lease losses			281,648		236,299		559,958		458,796
Provision for loan and lease losses			33,269		8,957		53,081		16,844
Net interest income after provision for loan and lease losses			248,379		227,342		506,877		441,952
NON-INTEREST INCOME
Commissions			2,619		2,909		5,326		5,462
Fees and service charges			5,451		5,905		10,601		10,926
Net gains on sales of securities			4,617		203		4,854		621
Net gains on sales of loans			1,354		1,545		2,981		5,011
Other-than-temporary impairment losses on securities:
Total impairment losses on securities			(369	)	(360	)	(424	)	(1,293	)
Portion recognized in other comprehensive income (before taxes)			306		139		306		731
Net impairment losses on securities recognized in earnings			(63	)	(221	)	(118	)	(562	)
Other losses			(835	)	(585	)	(2,037	)	(1,553	)
	Total non-interest income		13,143		9,756		21,607		19,905
NON-INTEREST EXPENSE
Salaries and benefits			61,927		57,759		124,207		112,835
Occupancy and equipment			7,069		6,322		13,709		12,248
Data processing			4,874		3,961		9,759		7,922
FDIC assessment fees			4,302		3,655		9,285		7,468
Professional fees			2,304		2,524		4,190		5,458
Other general and administrative			11,833		10,692		23,485		20,679
	Total non-interest expense		92,309		84,913		184,635		166,610
Income before income taxes			169,213		152,185		343,849		295,247
Income tax expense			66,971		61,723		137,572		121,395
Net income		$	102,242		90,462		206,277		173,852
PER COMMON SHARE DATA
Earnings per share – basic		$	1.91		1.78		3.88		3.44
Earnings per share – diluted		$	1.90		1.77		3.86		3.40


SIGNATURE BANK
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

		June 30,		December 31,
		2016		2015
(dollars in thousands, except shares and per share amounts)		(unaudited)
ASSETS
Cash and due from banks		$	255,260	311,254
Short-term investments			34,970	30,292
	Total cash and cash equivalents		290,230	341,546
Securities available-for-sale			6,459,614	6,240,761
Securities held-to-maturity (fair value $2,133,798 at June 30, 2016
and $2,137,913 at December 31, 2015)			2,068,304	2,133,144
Federal Home Loan Bank stock			147,438	154,405
Loans held for sale			493,241	456,358
Loans and leases, net			26,489,602	23,597,541
Premises and equipment, net			46,373	44,161
Accrued interest and dividends receivable			99,697	94,006
Other assets			452,336	388,623
	Total assets	$	36,546,835	33,450,545
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Non-interest-bearing		$	9,412,096	8,567,300
Interest-bearing			20,166,678	18,206,623
	Total deposits		29,578,774	26,773,923
Federal funds purchased and securities sold under agreements
to repurchase			585,000	817,000
Federal Home Loan Bank borrowings			2,380,000	2,720,163
Long-term debt			256,354	-
Accrued expenses and other liabilities			252,221	247,625
	Total liabilities		33,052,349	30,558,711
Shareholders’ equity
Preferred stock, par value $.01 per share; 61,000,000 shares authorized;
none issued at June 30, 2016 and December 31, 2015			-	-
Common stock, par value $.01 per share; 64,000,000 shares authorized;
54,610,987 shares issued and 53,683,172 shares outstanding at June 30, 2016;
51,929,064 shares issued and 50,901,408 shares outstanding at December 31, 2015;			537	509
Additional paid-in capital			1,741,240	1,399,501
Retained earnings			1,713,288	1,507,011
Treasury stock, none at June 30, 2016 and 41,087 shares at December 31, 2015			-	(5,684	)
Accumulated other comprehensive income (loss)			39,421	(9,503	)
	Total shareholders' equity		3,494,486	2,891,834
	Total liabilities and shareholders' equity	$	36,546,835	33,450,545


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

	Three months ended June 30,		Six months ended June 30,
(in thousands, except ratios and per share amounts)	2016	2015	2016	2015
PER COMMON SHARE
Net income - basic	$ 1.91	$ 1.78	$ 3.88	$ 3.44
Net income - diluted	$ 1.90	$ 1.77	$ 3.86	$ 3.40
Average shares outstanding - basic	53,668	50,809	53,126	50,582
Average shares outstanding - diluted	53,886	51,217	53,461	51,078
Book value	$ 65.09	$ 53.06	$ 65.09	$ 53.06

SELECTED FINANCIAL DATA
Return on average total assets	1.14%	1.24%	1.18%	1.22%
Return on average shareholders' equity	11.98%	13.64%	12.99%	13.50%
Efficiency ratio (1)	31.31%	34.51%	31.75%	34.80%
Efficiency ratio excluding net gains on sales of securities and net impairment losses on securities recognized in earnings(1)(2)	31.80%	34.51%	32.01%	34.81%
Yield on interest-earning assets	3.66%	3.70%	3.71%	3.71%
Yield on interest-earning assets, tax-equivalent basis (3)	3.66%	3.70%	3.71%	3.71%
Cost of deposits and borrowings	0.53%	0.47%	0.51%	0.49%
Net interest margin	3.18%	3.27%	3.25%	3.26%
Net interest margin, tax-equivalent basis (3)	3.19%	3.27%	3.25%	3.26%

(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 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.

(3)		Based on the 35 percent U.S. federal statutory tax rate. The tax-equivalent basis is considered 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 impact of tax-exempt assets on the Bank's yield on interest-earning assets and net interest margin.


	June 30, 2016	March 31, 2016	December 31, 2015	June 30, 2015
CAPITAL RATIOS
Tangible common equity (4)	9.52%	9.61%	8.65%	9.01%
Tier 1 leverage (5)	9.60%	9.79%	8.87%	9.16%
Common equity Tier 1 risk-based (5)	12.00%	12.42%	11.33%	11.85%
Tier 1 risk-based (5)	12.00%	12.42%	11.33%	11.85%
Total risk-based (5)	13.67%	13.19%	12.10%	12.63%

ASSET QUALITY
Non-accrual loans	$ 129,460	$ 105,010	$ 71,905	$ 41,615
Allowance for loan and lease losses	$ 224,878	$ 207,046	$ 195,023	$ 177,086
Allowance for loan and lease losses to non-accrual loans	173.70%	197.17%	271.22%	425.53%
Allowance for loan and lease losses to total loans	0.84%	0.83%	0.82%	0.86%
Non-accrual loans to total loans	0.48%	0.42%	0.30%	0.20%
Quarterly net charge-offs to average loans, annualized	0.24%	0.13%	0.08%	0.05%

(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. In addition to tangible common equity, management uses other metrics, such as Tier 1 capital related ratios, to evaluate capital levels.

(5)		June 30, 2016 ratios are preliminary.


SIGNATURE BANK
NET INTEREST MARGIN ANALYSIS
(unaudited)


	Three months ended						Three months ended
	June 30, 2016						June 30, 2015
(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	$	446,254	546		0.49	%	301,149	178	0.24	%
Investment securities		8,838,625	68,779		3.11	%	8,501,414	64,706	3.04	%
Commercial loans, mortgages and leases (1)		25,749,690	251,240		3.92	%	19,653,963	199,156	4.06	%
Residential mortgages and consumer loans		301,430	2,894		3.86	%	328,843	3,042	3.71	%
Loans held for sale		276,256	742		1.08	%	205,415	512	1.00	%
Total interest-earning assets		35,612,255	324,201		3.66	%	28,990,784	267,594	3.70	%
Non-interest-earning assets		401,871					367,823
Total assets	$	36,014,126					29,358,607
INTEREST-BEARING LIABILITIES
Interest-bearing deposits
NOW and interest-bearing demand	$	3,510,696	3,939		0.45	%	1,935,269	1,867	0.39	%
Money market		14,850,446	22,717		0.62	%	13,939,795	20,289	0.58	%
Time deposits		1,256,480	3,142		1.01	%	931,854	2,630	1.13	%
Non-interest-bearing demand deposits		9,461,144	-		-		7,748,568	-	-
Total deposits		29,078,766	29,798		0.41	%	24,555,486	24,786	0.40	%
Long-term debt		205,882	2,906		5.65	%	-	-	-
Other borrowings		3,082,813	9,609		1.25	%	1,951,514	6,509	1.34	%
Total deposits and borrowings		32,367,461	42,313		0.53	%	26,507,000	31,295	0.47	%
Other non-interest-bearing liabilities
and shareholders' equity		3,646,665					2,851,607
Total liabilities and shareholders' equity	$	36,014,126					29,358,607
OTHER DATA
Net interest income / interest rate spread (1)			281,888		3.13	%		236,299	3.23	%
Tax-equivalent adjustment			(240	)				-
Net interest income, as reported			281,648					236,299
Net interest margin					3.18	%			3.27	%
Tax-equivalent effect					0.01	%			-
Net interest margin on a fully tax-equivalent basis					3.19	%			3.27	%
Ratio of average interest-earning assets
to average interest-bearing liabilities					110.02	%			109.37	%

(1) Presented on a tax-equivalent basis using the U.S. federal statutory tax rate of 35 percent.


SIGNATURE BANK
NET INTEREST MARGIN ANALYSIS
(unaudited)


	Six months ended						Six months ended
	June 30, 2016						June 30, 2015
(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	$	419,500	1,019		0.49	%	389,094	466	0.24	%
Investment securities		8,743,452	136,892		3.13	%	8,533,169	132,020	3.09	%
Commercial loans, mortgages and leases (1)		24,918,212	494,397		3.99	%	18,880,787	381,788	4.08	%
Residential mortgages and consumer loans		304,524	5,841		3.86	%	331,828	6,174	3.75	%
Loans held for sale		295,719	1,991		1.35	%	205,410	1,108	1.09	%
Total interest-earning assets		34,681,407	640,140		3.71	%	28,340,288	521,556	3.71	%
Non-interest-earning assets		396,750					331,760
Total assets	$	35,078,157					28,672,048
INTEREST-BEARING LIABILITIES
Interest-bearing deposits
NOW and interest-bearing demand	$	3,216,304	7,229		0.45	%	1,856,637	3,587	0.39	%
Money market		14,891,820	44,966		0.61	%	13,697,667	40,607	0.60	%
Time deposits		1,175,688	5,840		1.00	%	947,240	5,408	1.15	%
Non-interest-bearing demand deposits		9,100,203	-		-		7,471,156	-	-
Total deposits		28,384,015	58,035		0.41	%	23,972,700	49,602	0.42	%
Long-term debt		102,942	2,906		5.65	%	-	-	-
Other borrowings		3,042,137	18,836		1.25	%	1,925,317	13,158	1.38	%
Total deposits and borrowings		31,529,094	79,777		0.51	%	25,898,017	62,760	0.49	%
Other non-interest-bearing liabilities
and shareholders' equity		3,549,063					2,774,031
Total liabilities and shareholders' equity	$	35,078,157					28,672,048
OTHER DATA
Net interest income / interest rate spread (1)			560,363		3.20	%		458,796	3.22	%
Tax-equivalent adjustment			(405	)				-
Net interest income, as reported			559,958					458,796
Net interest margin					3.25	%			3.26	%
Tax-equivalent effect					-				-
Net interest margin on a fully tax-equivalent basis					3.25	%			3.26	%
Ratio of average interest-earning assets
to average interest-bearing liabilities					110.00	%			109.43	%

(1) Presented on a tax-equivalent basis using the U.S. federal statutory tax rate of 35 percent.


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, (iv) yield on interest-earning assets, tax-equivalent basis, (v) net interest margin, tax-equivalent basis, and (vi) 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. For a description of the tangible common equity ratio, efficiency ratio, tax-equivalent yield on interest-earning assets, and tax equivalent net interest margin see "Financial Summary, Capital Ratios, Asset Quality".

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 June 30,						Six months ended June 30,
(dollars in thousands, except per share amounts)	2016			2015			2016		2015
Net income (as reported)	$	102,242		$	90,462		206,277		173,852
Net gains on sales of securities		(4,617	)		(203	)	(4,854	)	(621	)
Net impairment losses on securities recognized in earnings		63			221		118		562
Tax effect		1,802			(7	)	1,876		25
Net income - excluding after tax effect of net gains on sales of securities
and net impairment losses on securities recognized in earnings	$	99,490			90,473		203,417		173,818

Diluted earnings per share (as reported)	$	1.90		$	1.77		3.86		3.40
Net gains on sales of securities		(0.08	)		-		(0.09	)	(0.01	)
Net impairment losses on securities recognized in earnings		-			-		-		0.01
Tax effect		0.03			-		0.03		-
Diluted earnings per share - excluding after tax effect of net gains on sales of securities
of securities and net impairment losses on securities recognized in earnings	$	1.85			1.77		3.80		3.40


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


	Three months ended June 30,						Six months ended June 30,
		2016			2015		2016		2015
Net interest margin (as reported)		3.18	%		3.27	%	3.25	%	3.26	%
Tax-equivalent adjustment		0.01	%		-		-		-
Margin contribution from loan prepayment penalty income		(0.07	)%		(0.10	)%	(0.11	)%	(0.10	)%
Core net interest margin - excluding loan prepayment penalty income		3.12	%		3.17	%	3.14	%	3.16	%

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

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