Business Wire | Jan 21, 2021 05:01AM EST

Signature Bank Reports 2020 Fourth Quarter and Year-end Results

Jan. 21, 2021

NEW YORK--(BUSINESS WIRE)--Jan. 21, 2021--Signature Bank (Nasdaq: SBNY), a New York-based full-service commercial bank, today announced results for its fourth quarter ended December 31, 2020.

Net income for the 2020 fourth quarter was $173.0 million, or $3.26 diluted earnings per share, versus $147.6 million, or $2.76 diluted earnings per share, for the 2019 fourth quarter. The increase in net income for the 2020 fourth quarter, versus the comparable quarter last year, is primarily the result of an increase in net interest income, fueled by strong average deposit and loan growth. This is partially offset by an increase in the provision for credit losses of $25.8 million predominantly due to effects of COVID-19 on the U.S. economy. Pre-tax, pre-provision earnings were $261.5 million, representing an increase of $45.2 million, or 20.9 percent, compared with $216.3 million for the 2019 fourth quarter.

Net interest income for the 2020 fourth quarter rose $56.7 million, or 16.8 percent, to $395.0 million, when compared with the fourth quarter of 2019. This increase is primarily due to growth in average interest-earning assets. Total assets reached $73.89 billion at December 31, 2020, expanding $23.30 billion, or 46.0 percent, from $50.59 billion at December 31, 2019. Average assets for the 2020 fourth quarter reached $71.81 billion, an increase of $21.41 billion, or 42.5 percent, versus the comparable period a year ago.

Deposits for the 2020 fourth quarter increased $8.98 billion, or 16.5 percent to $63.32 billion, including non-interest bearing deposit growth of $2.47 billion. Non-interest bearing deposits now represent 29.6 percent of total deposits. Overall deposit growth for the last twelve months was 56.8 percent, or $22.93 billion, when compared with deposits at the end of 2019. Average total deposits for 2020 were $50.56 billion, growing $12.51 billion, or 32.9 percent, versus average total deposits of $38.06 billion for 2019.

"2020 was a year where many worldwide suffered immensely due to the effects of the COVID-19 pandemic. With the distribution of the vaccines, we hope the world will be a safer place soon and look forward to 2021 being a year where we return to normal and all whose lives have been horribly affected can heal. During these difficult times, Signature Bank focused on providing assistance for colleagues and clients alike through several beneficial programs, including PPP, to help them through their struggles. 2020 also marked the time where recent initiatives put forth by the Bank developed into full-fledged businesses as the pandemic did not slow their progress. These new businesses, coupled with efforts emanating from our existing franchise, flourished throughout the year. The Bank saw remarkable record deposit growth and significant record loan growth leading to nearly $1 billion in pretax, pre-provision earnings, which increased 16.1 percent for the year. Furthermore, we strengthened our West Coast presence meaningfully utilizing our core banking model in California. To this end, 17 teams were appointed in Los Angeles and San Francisco in 2020 alone," explained Signature Bank President and Chief Executive Officer Joseph J. DePaolo.

"Signature Bank enters 2021 as a stronger financial institution through the bolstering of our capital position in excess of $1 billion with the issuance of $375 million in subordinated debt and $730 million in preferred stock. Moreover, we've reached asset/liability neutrality by significantly increasing floating rate assets as a percentage of the balance sheet while also notably reducing our commercial real estate concentration. Additionally, we have meaningfully improved our liquidity position through significant record core deposit inflows and reduced borrowings which contributed to a decline in our loan-to-deposit ratio to 77.1 percent. Signature Bank now has a multi-faceted growth profile, with traditional private client banking teams leading the charge in New York, San Francisco and Los Angeles. Further fortifying the Bank's market position are our multitude of national businesses, including Signature Financial, Asset Based Lending, Fund Banking, Venture Banking, Digital Banking, and Specialized Mortgage Banking Solutions, as well as SignetTM, our state-of-the-art blockchain-based payments platform. We look forward to a healthier 2021 as recovery from the COVID-19 pandemic commences, and life begins to return to normal," DePaolo concluded.

Scott A. Shay, Chairman of the Board, added: "2020 was a dramatically difficult year from many perspectives. At Signature Bank, sadly, we saw some of our colleagues lose loved ones. The real human toll of COVID-19 was central to many of our activities in 2020 in relation to our colleagues and clients. We are ever mindful that our real assets are those with whom we work every day. Concurrently, during 2020, Signature Bank's amazing organic growth was widespread across all areas of focus including the aforementioned new businesses. To support our growth, the Bank raised more than $1 billion in capital while remaining focused on credit quality. In difficult times, clients care about the basics, namely good, unbiased advice that puts them and their sleep-at-night safety first and foremost. We provide these levels of comfort through our dedicated bankers, who, throughout 2020, catered to clients at all hours."

"Additionally, part of being a safe bank amid this landscape is paying close attention to technological advances. We have been at the forefront, as evidenced by the first to launch a blockchain-based payments platform, and we intend to keep it that way. Hence the reason we invested in developing Signet before most investors -- and even our clients -- recognized the emergence of and massive changes in the digital payments economy."

"As the rapid and safe deployment of vaccines penetrates the nation, we look forward to an end to the pandemic, and the new opportunities that lie ahead," Shay concluded.

Capital

In the 2020 fourth quarter, the Bank issued $375.0 million of subordinated debt and successfully raised $730.0 million in a public offering of Noncumulative Perpetual Series A Preferred Stock. Proceeds from both offerings will be used for general corporate purposes, including to support our growth. The Bank's Tier 1 leverage, common equity Tier 1 risk-based, Tier 1 risk-based, and total risk-based capital ratios were approximately 8.55 percent, 9.87 percent, 11.20 percent, and 13.54 percent, respectively, as of December 31, 2020. 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 6.89 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.

The Bank declared a cash dividend of $0.56 per share, payable on or after February 12, 2021 to common stockholders of record at the close of business on February 1, 2021. In the fourth quarter of 2020, the Bank paid a cash dividend of $0.56 per share to common stockholders of record at the close of business on November 2, 2020.

Net Interest Income

Net interest income for the 2020 fourth quarter was $395.0 million, up $56.7 million, or 16.8 percent, when compared with the same period last year, primarily due to growth in average interest-earning assets. Average interest-earning assets of $70.83 billion for the 2020 fourth quarter represent an increase of $21.27 billion, or 42.9 percent, from the 2019 fourth quarter. Due to the current low interest rate environment, the yield on interest-earning assets for the 2020 fourth quarter fell 112 basis points to 2.75 percent, compared to the fourth quarter of last year.

Average cost of deposits and average cost of funds for the fourth quarter of 2020 decreased 66 and 69 basis points, to 0.42 percent and 0.57 percent, respectively, versus the comparable period a year ago.

Net interest margin on a tax-equivalent basis for the 2020 fourth quarter was 2.23 percent versus 2.72 percent reported in the 2019 fourth quarter and 2.55 percent in the 2020 third quarter. Excluding loan prepayment penalties in both quarters, linked quarter core net interest margin on a tax-equivalent basis decreased 31 basis points to 2.21 percent.

Provision for Credit Losses

The Bank's provision for credit losses for the fourth quarter of 2020 was $35.6 million, an increase of $25.84 million, or over 100 percent, versus the 2019 fourth quarter. The Bank's elevated provision for credit losses for the fourth quarter was predominantly attributable to effects of COVID-19 on the U.S. economy. Additionally, the bank adopted CECL on January 1, 2020.

Net charge-offs for the 2020 fourth quarter were $11.4 million, or 0.10 percent of average loans, on an annualized basis, versus $10.5 million, or 0.09 percent, for the 2020 third quarter and net charge-offs of $2.5 million, or 0.03 percent, for the 2019 fourth quarter.

Non-Interest Income and Non-Interest Expense

Non-interest income for the 2020 fourth quarter was $24.2 million, up $8.2 million from $16.0 million reported in the fourth quarter of last year. The increase was primarily driven by a $5.5 million increase in fees and service charges.

Non-interest expense for the fourth quarter of 2020 was $157.7 million, an increase of $19.6 million, or 14.2 percent, versus $138.0 million reported in the 2019 fourth quarter. The increase was predominantly due to an increase of $11.4 million in salaries and benefits from the significant hiring of private client banking teams.

The Bank's efficiency ratio improved to 37.6 percent for the 2020 fourth quarter compared with 39.0 percent for the same period a year ago, and 38.9 percent for the third quarter of 2020.

Loans

Loans, excluding loans held for sale, expanded $2.62 billion, or 5.7 percent, during the 2020 fourth quarter to $48.83 billion, versus $46.21 billion at September 30, 2020. Average loans, excluding loans held for sale, reached $47.39 billion in the 2020 fourth quarter, growing $1.96 billion, or 4.3 percent, from the 2020 third quarter and $9.28 billion, or 24.4 percent, from the fourth quarter of 2019. For the ninth consecutive quarter, the increase in loans was primarily driven by growth in commercial and industrial loans.

At December 31, 2020, non-accrual loans were $120.2 million, representing 0.25 percent of total loans and 0.16 percent of total assets, compared with non-accrual loans of $81.3 million, or 0.18 percent of total loans, at September 30, 2020 and $57.4 million, or 0.15 percent of total loans, at December 31, 2019. At December 31, 2020, the ratio of allowance for credit losses for loans and leases to total loans, was 1.04 percent, versus 1.05 percent at September 30, 2020 and 0.64 percent at December 31, 2019. Additionally, the ratio of allowance for credit losses for loans and leases to non-accrual loans, or the coverage ratio, was 423 percent for the 2020 fourth quarter versus 596 percent for the third quarter of 2020 and 436 percent for the 2019 fourth quarter.

COVID-19 Related Loan Modifications

As of December 31, 2020, total principal and interest deferrals significantly decreased to $1.31 billion, or 2.7 percent of the Bank's total loan portfolio from their peak level as of June 30, 2020. The positive trend is the result of the Bank's ability to work closely with its clients toward reasonable resolutions.

Principal and Interest Deferrals

Portfolio Deferral %(dollars in millions) Balance Balance of Loan 12/31/2020 Category

Multi-family $ 15,173 615 4.1 %

Retail 5,637 369 6.5 %

Office 3,930 150 3.8 %

Acquisition, Development, and 1,367 12 0.9 %Construction (ADC)

Industrial 574 3 0.5 %

Hotel 77 - 0.0 %

Land 38 - 0.0 %

Other 297 10 3.4 %

Total Commercial Real Estate 27,093 1,159 4.3 %

Fund Banking and Venture Banking 11,416 - 0.0 %

Asset Based Lending 319 - 0.0 %

Signature Financial 5,046 35 0.7 %

Traditional Commercial & Industrial 2,537 80 3.2 %

Total Commercial & Industrial 19,318 115 0.6 %

PPP Loans 1,874 - 0.0 %

Consumer and Residential 584 37 6.3 %

Premium, deferred fees, and costs (36) - 0.0 %

Total Loans $ 48,833 1,311 2.7 %

Additionally, the Bank has made other COVID-19 related modifications that have resulted in the receipt of modified principal and interest payments totaling 6.6 percent of the loan book.

Conference Call

Signature Bank's management will host a conference call to review results of the 2020 fourth quarter on Thursday, January 21, 2021 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 #4079502. 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," "Quarterly Results/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 #4079502. The replay will be available from approximately 1:00 PM ET on Thursday, January 21, 2021 through 11:59 PM ET on Sunday, January 24, 2021.

About Signature Bank

Signature Bank, member FDIC, is a New York-based full-service commercial bank with 36 private client offices throughout the metropolitan New York area, including those in Connecticut as well as in California and North Carolina. Through its single-point-of-contact approach, the Bank's private client banking teams primarily serve the needs of privately owned businesses, their owners and senior managers. The Bank has two wholly owned subsidiaries: Signature Financial, LLC, provides equipment finance and leasing: Signature Securities Group Corporation, a licensed broker-dealer, investment adviser and member FINRA/SIPC, offers investment, brokerage, asset management and insurance products and services. Signature Bank was the first FDIC-insured bank to launch a blockchain-based digital payments platform. Signet(tm) allows commercial clients to make real-time payments in U.S. dollars, 24/7/365 and was also the first solution to be approved for use by the NYS Department of Financial Services.

Signature Bank is one of the top 40 largest banks in the U.S., based on deposits (S&P Global Market Intelligence).

For more information, please visit https://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, our business strategy and the impact of the COVID-19 pandemic on each of the foregoing and on our business overall. These statements often include words such as "may," "believe," "expect," "anticipate," "intend," "potential," "opportunity," "could," "project," "seek," "target", "goal", "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, (vi) our ability to maintain the continuity, integrity, security and safety of our operations and (vii) competition for qualified personnel and desirable office locations. All of these factors are subject to additional uncertainty in the context of the COVID-19 pandemic, which is having an unprecedented impact on all aspects of our operations, the financial services industry and the economy as a whole. 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.

FINANCIAL TABLES ATTACHED

SIGNATURE BANK

CONSOLIDATED STATEMENTS OF INCOME

(unaudited)



Three months ended Twelve months ended December 31, December 31,

(dollars in thousands, except per share 2020 2019 2020 2019amounts)

INTEREST INCOME

Loans held for sale $ 1,321 1,325 3,655 4,978

Loans and leases, net 427,018 399,609 1,661,912 1,579,268

Securities available-for-sale 41,886 54,003 186,569 227,535

Securities held-to-maturity 12,675 14,551 55,335 60,843

Other investments 5,658 11,908 24,175 39,052

Total interest income 488,558 481,396 1,931,646 1,911,676

INTEREST EXPENSE

Deposits 65,990 108,928 297,349 440,730

Federal funds purchases and securitiessold under 595 733 2,742 14,170agreements to repurchase

Federal Home Loan Bank borrowings 17,420 28,323 85,333 129,138

Subordinated debt 9,570 5,117 27,130 16,045

Total interest expense 93,575 143,101 412,554 600,083

Net interest income before provision 394,983 338,295 1,519,092 1,311,593for credit losses

Provision for credit losses 35,599 9,755 248,094 22,636

Net interest income after provision for 359,384 328,540 1,270,998 1,288,957credit losses

NON-INTEREST INCOME

Commissions 3,731 3,673 13,441 14,504

Fees and service charges 14,625 9,174 46,397 32,926

Net (losses) gains on sales of (17) - 3,606 1,034securities

Net gains on sale of loans 3,099 1,957 12,651 10,836

Other income (1) 2,753 1,225 (847) 2,415

Total non-interest income 24,191 16,029 75,248 61,715

NON-INTEREST EXPENSE

Salaries and benefits 95,703 84,301 389,125 335,054

Occupancy and equipment 10,934 10,357 44,371 42,833

Information technology 11,420 9,410 43,217 36,961

FDIC assessment fees 3,955 2,894 13,742 12,432

Professional fees 5,355 3,996 18,286 14,689

Other general and administrative 30,284 27,065 105,313 87,300

Total non-interest expense 157,651 138,023 614,054 529,269

Income before income taxes 225,924 206,546 732,192 821,403

Income tax expense (1) 52,915 58,932 203,833 234,917

Net income $ 173,009 147,614 528,359 586,486

Preferred stock dividends - - - -

Net income available to common $ 173,009 147,614 528,359 586,486shareholders

PER COMMON SHARE DATA

Earnings per common share - basic (1) $ 3.28 2.78 10.00 10.87

Earnings per common share - diluted (1) $ 3.26 2.76 9.96 10.82

Dividends per common share $ 0.56 0.56 2.24 2.24

(1) Effective January 1, 2020, we changed our accounting policy for Low Income Housing Tax Credit ("LIHTC") investments from the equity method to the proportional amortization method as it was determined to be the preferable method. All applicable prior period amounts have been retroactively restated to conform to the new accounting policy.

(1) Effective January 1, 2020, we changed our accounting policy for Low IncomeHousing Tax Credit ("LIHTC") investments from the equity method to theproportional amortization method as it was determined to be the preferablemethod. All applicable prior period amounts have been retroactively restated toconform to the new accounting policy.

SIGNATURE BANK

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

December 31,

2020

2019

(dollars in thousands, except shares and per share amounts)

(unaudited)

ASSETS

Cash and due from banks

$

12,208,997

702,277

Short-term investments

139,334

87,555

Total cash and cash equivalents

12,348,331

789,832

Securities available-for-sale (amortized cost $8,894,719 at December 31, 2020 and $7,186,494 at December 31, 2019); (allowance for credit losses $4 at December 31, 2020)

8,890,417

7,143,864

Securities held-to-maturity (fair value $2,329,378 at December 31, 2020 and $2,115,541 December 31, 2019); (allowance for credit losses $51 at December 31, 2020)

2,282,830

2,101,970

Federal Home Loan Bank stock

171,678

231,339

Loans held for sale

407,363

290,593

Loans and leases

48,833,098

39,109,623

Allowance for credit losses for loans and leases

(508,299)

(249,989)

Loans and leases, net

48,324,799

38,859,634

Premises and equipment, net

80,274

66,419

Operating lease right-of-use assets

237,407

217,578

Accrued interest and dividends receivable

277,801

147,527

Other assets (1)

867,444

743,053

Total assets

$

73,888,344

50,591,809

LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits

Non-interest-bearing

$

18,757,771

13,016,931

Interest-bearing

44,557,552

27,366,276

Total deposits

63,315,323

40,383,207

Federal funds purchased and securities sold under agreements to repurchase

150,000

150,000

Federal Home Loan Bank borrowings

2,839,245

4,142,144

Subordinated debt

828,588

456,119

Operating lease liabilities

265,354

242,587

Accrued expenses and other liabilities

662,925

472,554

Total liabilities

68,061,435

45,846,611

Shareholders' equity

Preferred stock, par value $.01 per share; 61,000,000 shares authorized, 730,000 shares issued and outstanding at December 31, 2020; and none issued and outstanding at December 31, 2019

7

-

Common stock, par value $.01 per share; 64,000.000 shares authorized; 55,520,417 shares issued and 53,564,573 outstanding at December 31, 2020; 55,427,631 shares issued and 53,519,644 outstanding at December 31, 2019

555

554

Additional paid-in capital

2,583,514

1,871,571

Retained earnings (1)

3,548,260

3,172,273

Treasury stock, 1,899,336 shares at December 31, 2020 and 1,907,987 shares at December 31, 2019

(232,531)

(233,570)

Accumulated other comprehensive loss

(72,896)

(65,630)

Total shareholders' equity

5,826,909

4,745,198

Total liabilities and shareholders' equity

$

73,888,344

50,591,809

SIGNATURE BANK

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

December 31,

2020 2019

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

ASSETS

Cash and due from banks $ 12,208,997 702,277

Short-term investments 139,334 87,555

Total cash and cash equivalents 12,348,331 789,832

Securities available-for-sale (amortized cost$8,894,719 at December 31, 2020 and$7,186,494 at December 31, 2019); (allowance for 8,890,417 7,143,864credit losses $4 atDecember 31, 2020)

Securities held-to-maturity (fair value $2,329,378 atDecember 31, 2020 and$2,115,541 December 31, 2019); (allowance for credit 2,282,830 2,101,970losses $51 at December 31,2020)

Federal Home Loan Bank stock 171,678 231,339

Loans held for sale 407,363 290,593

Loans and leases 48,833,098 39,109,623

Allowance for credit losses for loans and leases (508,299) (249,989)

Loans and leases, net 48,324,799 38,859,634

Premises and equipment, net 80,274 66,419

Operating lease right-of-use assets 237,407 217,578

Accrued interest and dividends receivable 277,801 147,527

Other assets (1) 867,444 743,053

Total assets $ 73,888,344 50,591,809

LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits

Non-interest-bearing $ 18,757,771 13,016,931

Interest-bearing 44,557,552 27,366,276

Total deposits 63,315,323 40,383,207

Federal funds purchased and securities sold under 150,000 150,000agreements to repurchase

Federal Home Loan Bank borrowings 2,839,245 4,142,144

Subordinated debt 828,588 456,119

Operating lease liabilities 265,354 242,587

Accrued expenses and other liabilities 662,925 472,554

Total liabilities 68,061,435 45,846,611

Shareholders' equity

Preferred stock, par value $.01 per share; 61,000,000shares authorized,730,000 shares issued and outstanding at December 31, 7 -2020; and none issued andoutstanding at December 31, 2019

Common stock, par value $.01 per share; 64,000.000shares authorized;55,520,417 shares issued and 53,564,573 outstanding at 555 554December 31, 2020;55,427,631 shares issued and 53,519,644 outstanding atDecember 31, 2019

Additional paid-in capital 2,583,514 1,871,571

Retained earnings (1) 3,548,260 3,172,273

Treasury stock, 1,899,336 shares at December 31, 2020 (232,531) (233,570)and 1,907,987 shares at December 31, 2019

Accumulated other comprehensive loss (72,896) (65,630)

Total shareholders' equity 5,826,909 4,745,198

Total liabilities and shareholders' equity $ 73,888,344 50,591,809

(1) Effective January 1, 2020, we changed our accounting policy for Low Income Housing Tax Credit ("LIHTC") investments from the equity method to the proportional amortization method as it was determined to be the preferable method. All applicable prior period amounts have been retroactively restated to conform to the new accounting policy.

(1) Effective January 1, 2020, we changed our accounting policy for Low IncomeHousing Tax Credit ("LIHTC") investments from the equity method to theproportional amortization method as it was determined to be the preferablemethod. All applicable prior period amounts have been retroactively restated toconform to the new accounting policy.

SIGNATURE BANK

FINANCIAL SUMMARY, CAPITAL RATIOS, ASSET QUALITY

(unaudited)

Three months ended December 31,

Twelve months ended December 31,

(in thousands, except ratios and per share amounts)

2020

2019 (6)

2020

2019 (6)

PER COMMON SHARE

Earnings per common share - basic

$

3.28

2.78

$

10.00

10.87

Earnings per common share - diluted

$

3.26

2.76

$

9.96

10.82

Weighted average common shares outstanding - basic

52,673

53,008

52,641

53,774

Weighted average common shares outstanding - diluted

52,970

53,234

52,889

54,011

Book value per common share

$

95.56

88.66

$

95.56

88.66

SELECTED FINANCIAL DATA

Return on average total assets

0.96%

1.16%

0.87%

1.19%

Return on average common shareholders' equity

13.59%

12.38%

10.75%

12.85%

Efficiency ratio (1)

37.61%

38.95%

38.51%

38.54%

Yield on interest-earning assets

2.74%

3.85%

3.24%

3.95%

Yield on interest-earning assets, tax-equivalent basis (1) (2)

2.75%

3.87%

3.25%

3.96%

Cost of deposits and borrowings

0.57%

1.26%

0.75%

1.37%

Net interest margin

2.22%

2.71%

2.55%

2.71%

Net interest margin, tax-equivalent basis (2)(3)

2.23%

2.72%

2.56%

2.72%

SIGNATURE BANK

FINANCIAL SUMMARY, CAPITAL RATIOS, ASSET QUALITY

(unaudited)



Three months Twelve months ended ended December 31, December 31,

(in thousands, except ratios and per share 2020 2019 2020 2019amounts) (6) (6)

PER COMMON SHARE

Earnings per common share - basic $ 3.28 2.78 $ 10.00 10.87

Earnings per common share - diluted $ 3.26 2.76 $ 9.96 10.82

Weighted average common shares outstanding - 52,673 53,008 52,641 53,774basic

Weighted average common shares outstanding - 52,970 53,234 52,889 54,011diluted

Book value per common share $ 95.56 88.66 $ 95.56 88.66



SELECTED FINANCIAL DATA

Return on average total assets 0.96% 1.16% 0.87% 1.19%

Return on average common shareholders' equity 13.59% 12.38% 10.75% 12.85%

Efficiency ratio (1) 37.61% 38.95% 38.51% 38.54%

Yield on interest-earning assets 2.74% 3.85% 3.24% 3.95%

Yield on interest-earning assets, 2.75% 3.87% 3.25% 3.96%tax-equivalent basis (1) (2)

Cost of deposits and borrowings 0.57% 1.26% 0.75% 1.37%

Net interest margin 2.22% 2.71% 2.55% 2.71%

Net interest margin, tax-equivalent basis (2) 2.23% 2.72% 2.56% 2.72%(3)

(1) See "Non-GAAP Financial Measures" for related calculation.

(2) Based on the 21 percent U.S. federal statutory tax rate for the periods presented. 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.

(3) See "Net Interest Margin Analysis" for related calculation.

(1) See "Non-GAAP Financial Measures" for related calculation.



(2) Based on the 21 percent U.S. federal statutory tax rate for the periodspresented. The tax-equivalent basis is considered a non-GAAP financial measureand should be considered in addition to, not as a substitute for or superiorto, financial measures determined in accordance with GAAP. This ratio is ametric used by management to evaluate the impact of tax-exempt assets on theBank's yield on interest-earning assets and net interest margin.



(3) See "Net Interest Margin Analysis" for related calculation.

December 31,2020

September 30,2020

December 31,2019 (6)

CAPITAL RATIOS

Tangible common equity (4)

6.89

%

7.75

%

9.30

%

Tier 1 leverage (5)

8.55

%

8.56

%

9.55

%

Common equity Tier 1 risk-based (5)

9.87

%

10.26

%

11.56

%

Tier 1 risk-based (5)

11.20

%

10.26

%

11.56

%

Total risk-based (5)

13.54

%

11.98

%

13.26

%

ASSET QUALITY

Non-accrual loans

$

120,171

$

81,305

$

57,355

Allowance for loan and lease losses

$

508,299

$

484,923

$

249,989

Allowance for loan and lease losses to non-accrual loans

422.98

%

596.42

%

435.86

%

Allowance for loan and lease losses to total loans

1.04

%

1.05

%

0.64

%

Non-accrual loans to total loans

0.25

%

0.18

%

0.15

%

Quarterly net charge-offs to average loans, annualized

0.10

%

0.09

%

0.03

%

December September December 31, 30, 31, 2020 2020 2019 (6)

CAPITAL RATIOS

Tangible common equity (4) 6.89 % 7.75 % 9.30 %

Tier 1 leverage (5) 8.55 % 8.56 % 9.55 %

Common equity Tier 1 risk-based (5) 9.87 % 10.26 % 11.56 %

Tier 1 risk-based (5) 11.20 % 10.26 % 11.56 %

Total risk-based (5) 13.54 % 11.98 % 13.26 %



ASSET QUALITY

Non-accrual loans $ 120,171 $ 81,305 $ 57,355

Allowance for loan and lease losses $ 508,299 $ 484,923 $ 249,989

Allowance for loan and lease losses to 422.98 % 596.42 % 435.86 %non-accrual loans

Allowance for loan and lease losses to 1.04 % 1.05 % 0.64 %total loans

Non-accrual loans to total loans 0.25 % 0.18 % 0.15 %

Quarterly net charge-offs to average 0.10 % 0.09 % 0.03 %loans, annualized

(4) We define tangible common equity as the ratio of total tangible common equity to total tangible assets (the "TCE ratio"). TCE represents the Company's common stock shareholders' equity (i.e., total stockholders' equity less preferred equity) less intangible assets. The TCE ratio 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. See "Non-GAAP Financial Measures" for related calculation.

(5) December 31, 2020 ratios are preliminary.

(6) Effective January 1, 2020, we changed our accounting policy for Low Income Housing Tax Credit ("LIHTC") investments from the equity method to the proportional amortization method as it was determined to be the preferable method. All applicable prior period amounts have been retroactively restated to conform to the new accounting policy.

(4) We define tangible common equity as the ratio of total tangible commonequity to total tangible assets (the "TCE ratio"). TCE represents the Company'scommon stock shareholders' equity (i.e., total stockholders' equity lesspreferred equity) less intangible assets. The TCE ratio is considered to be anon-GAAP financial measure and should be considered in addition to, not as asubstitute for or superior to, financial measures determined in accordance withGAAP. The TCE ratio is a metric used by management to evaluate the adequacy ofour capital levels. In addition to tangible common equity, management usesother metrics, such as Tier 1 capital related ratios, to evaluate capitallevels. See "Non-GAAP Financial Measures" for related calculation.



(5) December 31, 2020 ratios are preliminary.



(6) Effective January 1, 2020, we changed our accounting policy for Low IncomeHousing Tax Credit ("LIHTC") investments from the equity method to theproportional amortization method as it was determined to be the preferablemethod. All applicable prior period amounts have been retroactively restated toconform to the new accounting policy.

SIGNATURE BANK

NET INTEREST MARGIN ANALYSIS

(unaudited)

Three Months EndedDecember 31, 2020

Three Months EndedDecember 31, 2019

(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

$

12,511,429

3,569

0.11

%

1,743,038

7,755

1.77

%

Investment securities

10,631,245

56,650

2.13

%

9,541,382

72,707

3.05

%

Commercial loans, mortgages and leases (1)

47,223,197

427,210

3.60

%

37,903,214

398,935

4.18

%

Residential mortgages and consumer loans

162,349

1,444

3.54

%

203,066

2,131

4.16

%

Loans held for sale

305,885

1,321

1.72

%

169,495

1,325

3.10

%

Total interest-earning assets

70,834,105

490,194

2.75

%

49,560,195

482,853

3.87

%

Non-interest-earning assets (2)

972,433

808,272

Total assets

$

71,806,538

50,368,467

INTEREST-BEARING LIABILITIES

Interest-bearing deposits

NOW and interest-bearing demand

$

12,362,930

19,334

0.62

%

4,722,763

19,727

1.66

%

Money market

28,511,134

39,934

0.56

%

20,183,695

75,138

1.48

%

Time deposits

1,898,286

6,722

1.41

%

2,430,110

14,063

2.30

%

Non-interest-bearing demand deposits

19,203,186

-

-

%

12,750,429

-

-

%

Total deposits

61,975,536

65,990

0.42

%

40,086,997

108,928

1.08

%

Subordinated debt

808,454

9,570

4.73

%

389,730

5,117

5.25

%

Other borrowings

2,989,245

18,015

2.40

%

4,460,079

29,056

2.58

%

Total deposits and borrowings

65,773,235

93,575

0.57

%

44,936,806

143,101

1.26

%

Other non-interest-bearing liabilities

854,144

700,680

Preferred equity

115,818

-

Common equity (2)

5,063,341

4,730,981

Total liabilities and shareholders' equity

$

71,806,538

50,368,467

OTHER DATA

Net interest income / interest rate spread (1)

396,619

2.18

%

339,752

2.61

%

Tax-equivalent adjustment

(1,636)

(1,457)

Net interest income, as reported

394,983

338,295

Net interest margin

2.22

%

2.71

%

Tax-equivalent effect

0.01

%

0.01

%

Net interest margin on a tax-equivalent basis (1)

2.23

%

2.72

%

Ratio of average interest-earning assets

to average interest-bearing liabilities

107.69

%

110.29

%

SIGNATURE BANK

NET INTEREST MARGIN ANALYSIS

(unaudited)



Three Months Ended Three Months Ended December 31, 2020 December 31, 2019

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

INTEREST-EARNING ASSETS

Short-term $ 12,511,429 3,569 0.11 % 1,743,038 7,755 1.77 %investments

Investment 10,631,245 56,650 2.13 % 9,541,382 72,707 3.05 %securities

Commercial loans,mortgages and leases 47,223,197 427,210 3.60 % 37,903,214 398,935 4.18 %(1)

Residentialmortgages and 162,349 1,444 3.54 % 203,066 2,131 4.16 %consumer loans

Loans held for sale 305,885 1,321 1.72 % 169,495 1,325 3.10 %

Totalinterest-earning 70,834,105 490,194 2.75 % 49,560,195 482,853 3.87 %assets

Non-interest-earning 972,433 808,272 assets (2)

Total assets $ 71,806,538 50,368,467

INTEREST-BEARING LIABILITIES

Interest-bearing deposits

NOW andinterest-bearing $ 12,362,930 19,334 0.62 % 4,722,763 19,727 1.66 %demand

Money market 28,511,134 39,934 0.56 % 20,183,695 75,138 1.48 %

Time deposits 1,898,286 6,722 1.41 % 2,430,110 14,063 2.30 %

Non-interest-bearing 19,203,186 - - % 12,750,429 - - %demand deposits

Total deposits 61,975,536 65,990 0.42 % 40,086,997 108,928 1.08 %

Subordinated debt 808,454 9,570 4.73 % 389,730 5,117 5.25 %

Other borrowings 2,989,245 18,015 2.40 % 4,460,079 29,056 2.58 %

Total deposits and 65,773,235 93,575 0.57 % 44,936,806 143,101 1.26 %borrowings

Othernon-interest-bearing 854,144 700,680 liabilities

Preferred equity 115,818 -

Common equity (2) 5,063,341 4,730,981

Total liabilitiesand shareholders' $ 71,806,538 50,368,467 equity

OTHER DATA

Net interest income/ interest rate 396,619 2.18 % 339,752 2.61 %spread (1)

Tax-equivalent (1,636) (1,457) adjustment

Net interest income, 394,983 338,295 as reported

Net interest margin 2.22 % 2.71 %

Tax-equivalent 0.01 % 0.01 %effect

Net interest marginon a tax-equivalent 2.23 % 2.72 %basis (1)

Ratio of averageinterest-earning assets

to averageinterest-bearing 107.69 % 110.29 %liabilities

(1) Presented on a tax-equivalent, non-GAAP, basis for municipal leasing and financing transactions using the U.S. federal statutory tax rate of 21 percent for the periods presented.

(2) Effective January 1, 2020, we changed our accounting policy for Low Income Housing Tax Credit ("LIHTC") investments from the equity method to the proportional amortization method as it was determined to be the preferable method. All applicable prior period amounts have been retroactively restated to conform to the new accounting policy.

(1) Presented on a tax-equivalent, non-GAAP, basis for municipal leasing andfinancing transactions using the U.S. federal statutory tax rate of 21 percentfor the periods presented.



(2) Effective January 1, 2020, we changed our accounting policy for Low IncomeHousing Tax Credit ("LIHTC") investments from the equity method to theproportional amortization method as it was determined to be the preferablemethod. All applicable prior period amounts have been retroactively restated toconform to the new accounting policy.

SIGNATURE BANK

NET INTEREST MARGIN ANALYSIS

(unaudited)

Twelve Months EndedDecember 31, 2020

Twelve Months EndedDecember 31, 2019

(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

$

5,887,909

11,748

0.20

%

1,007,237

21,127

2.10

%

Investment securities

9,812,898

254,331

2.59

%

9,561,736

306,303

3.20

%

Commercial loans, mortgages and leases (1)

43,612,057

1,661,455

3.81

%

37,449,199

1,575,074

4.21

%

Residential mortgages and consumer loans

175,560

6,742

3.84

%

212,254

9,463

4.46

%

Loans held for sale

196,948

3,655

1.86

%

152,571

4,978

3.26

%

Total interest-earning assets

59,685,372

1,937,931

3.25

%

48,382,997

1,916,945

3.96

%

Non-interest-earning assets (2)

920,531

764,837

Total assets

$

60,605,903

49,147,834

INTEREST-BEARING LIABILITIES

Interest-bearing deposits

NOW and interest-bearing demand

$

8,783,053

67,948

0.77

%

4,297,419

82,180

1.91

%

Money market

23,924,076

191,353

0.80

%

19,103,463

299,874

1.57

%

Time deposits

2,132,466

38,048

1.78

%

2,498,190

58,676

2.35

%

Non-interest-bearing demand deposits

15,722,196

-

-

%

12,155,929

-

-

%

Total deposits

50,561,791

297,349

0.59

%

38,055,001

440,730

1.16

%

Subordinated debt

545,031

27,130

4.98

%

291,532

16,045

5.50

%

Other borrowings

3,804,585

88,075

2.31

%

5,516,093

143,308

2.60

%

Total deposits and borrowings

54,911,407

412,554

0.75

%

43,862,626

600,083

1.37

%

Other non-interest-bearing liabilities

750,691

685,008

Preferred equity

29,112

-

Common equity (2)

4,914,693

4,600,200

Total liabilities and shareholders' equity

$

60,605,903

49,147,834

OTHER DATA

Net interest income / interest rate spread (1)

1,525,377

2.50

%

1,316,862

2.59

%

Tax-equivalent adjustment

(6,285)

(5,269)

Net interest income, as reported

1,519,092

1,311,593

Net interest margin

2.55

%

2.71

%

Tax-equivalent effect

0.01

%

0.01

%

Net interest margin on a tax-equivalent basis (1)

2.56

%

2.72

%

Ratio of average interest-earning assets

to average interest-bearing liabilities

108.69

%

110.31

%

SIGNATURE BANK

NET INTEREST MARGIN ANALYSIS

(unaudited)



Twelve Months Ended Twelve Months Ended December 31, 2020 December 31, 2019

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

INTEREST-EARNING ASSETS

Short-term $ 5,887,909 11,748 0.20 % 1,007,237 21,127 2.10 %investments

Investment 9,812,898 254,331 2.59 % 9,561,736 306,303 3.20 %securities

Commercial loans,mortgages and leases 43,612,057 1,661,455 3.81 % 37,449,199 1,575,074 4.21 %(1)

Residentialmortgages and 175,560 6,742 3.84 % 212,254 9,463 4.46 %consumer loans

Loans held for sale 196,948 3,655 1.86 % 152,571 4,978 3.26 %

Totalinterest-earning 59,685,372 1,937,931 3.25 % 48,382,997 1,916,945 3.96 %assets

Non-interest-earning 920,531 764,837 assets (2)

Total assets $ 60,605,903 49,147,834

INTEREST-BEARING LIABILITIES

Interest-bearing deposits

NOW andinterest-bearing $ 8,783,053 67,948 0.77 % 4,297,419 82,180 1.91 %demand

Money market 23,924,076 191,353 0.80 % 19,103,463 299,874 1.57 %

Time deposits 2,132,466 38,048 1.78 % 2,498,190 58,676 2.35 %

Non-interest-bearing 15,722,196 - - % 12,155,929 - - %demand deposits

Total deposits 50,561,791 297,349 0.59 % 38,055,001 440,730 1.16 %

Subordinated debt 545,031 27,130 4.98 % 291,532 16,045 5.50 %

Other borrowings 3,804,585 88,075 2.31 % 5,516,093 143,308 2.60 %

Total deposits and 54,911,407 412,554 0.75 % 43,862,626 600,083 1.37 %borrowings

Othernon-interest-bearing 750,691 685,008 liabilities

Preferred equity 29,112 -

Common equity (2) 4,914,693 4,600,200

Total liabilitiesand shareholders' $ 60,605,903 49,147,834 equity

OTHER DATA

Net interest income/ interest rate 1,525,377 2.50 % 1,316,862 2.59 %spread (1)

Tax-equivalent (6,285) (5,269) adjustment

Net interest income, 1,519,092 1,311,593 as reported

Net interest margin 2.55 % 2.71 %

Tax-equivalent 0.01 % 0.01 %effect

Net interest marginon a tax-equivalent 2.56 % 2.72 %basis (1)

Ratio of averageinterest-earning assets

to averageinterest-bearing 108.69 % 110.31 %liabilities



(1) Presented on a tax-equivalent, non-GAAP, basis for municipal leasing and financing transactions using the U.S. federal statutory tax rate of 21 percent for the periods presented.

(2) Effective January 1, 2020, we changed our accounting policy for Low Income Housing Tax Credit ("LIHTC") investments from the equity method to the proportional amortization method as it was determined to be the preferable method. All applicable prior period amounts have been retroactively restated to conform to the new accounting policy. .

(1) Presented on a tax-equivalent, non-GAAP, basis for municipal leasing andfinancing transactions using the U.S. federal statutory tax rate of 21 percentfor the periods presented.



(2) Effective January 1, 2020, we changed our accounting policy for Low IncomeHousing Tax Credit ("LIHTC") investments from the equity method to theproportional amortization method as it was determined to be the preferablemethod. All applicable prior period amounts have been retroactively restated toconform to the new accounting policy. .

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) tangible common equity ratio, (ii) efficiency ratio, (iii) yield on interest-earning assets, tax-equivalent basis, (iv) core net interest margin, tax-equivalent basis excluding loan prepayment penalty income, (v) pre-tax, pre-provision earnings, and (vi) loans and leases to core loans (excluding Paycheck Protection Program loans). 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 the tangible common equity ratio calculation:

SIGNATURE BANK

NON-GAAP FINANCIAL MEASURES

(unaudited)



Management believes that the presentation of certain non-GAAP financialmeasures assists investors when comparing results period-to-period in a moreconsistent manner and provides a better measure of Signature Bank's results.These non-GAAP measures include the Bank's (i) tangible common equity ratio,(ii) efficiency ratio, (iii) yield on interest-earning assets, tax-equivalentbasis, (iv) core net interest margin, tax-equivalent basis excluding loanprepayment penalty income, (v) pre-tax, pre-provision earnings, and (vi) loansand leases to core loans (excluding Paycheck Protection Program loans). Thesenon-GAAP measures should not be considered a substitute for GAAP-basis measuresand results. We strongly encourage investors to review our consolidatedfinancial statements in their entirety and not to rely on any single financialmeasure. Because non-GAAP financial measures are not standardized, it may notbe possible to compare these financial measures with other companies' non-GAAPfinancial measures having the same or similar names.



The following table presents the tangible common equity ratio calculation:

(dollars in thousands)

December 31,2020

September 30,2020

December 31,2019 (1)

Consolidated total shareholders' equity

$

5,826,909

4,983,199

4,745,198

Less: Preferred equity

708,019

-

-

Common shareholders' equity

$

5,118,890

4,983,199

4,745,198

Intangible assets

32,301

43,768

45,907

Tangible common shareholders' equity (TCE)

$

5,086,589

4,939,431

4,699,291

Consolidated total assets

$

73,888,344

63,760,313

50,591,809

Intangible assets

32,301

43,768

45,907

Consolidated tangible total assets (TTA)

$

73,856,043

63,716,545

50,545,902

Tangible common equity ratio (TCE/TTA)

6.89%

7.75%

9.30%

December 31, September December 31,(dollars in thousands) 2020 30, 2019 (1) 2020

Consolidated total shareholders' equity $ 5,826,909 4,983,199 4,745,198

Less: Preferred equity 708,019 - -

Common shareholders' equity $ 5,118,890 4,983,199 4,745,198

Intangible assets 32,301 43,768 45,907

Tangible common shareholders' equity $ 5,086,589 4,939,431 4,699,291(TCE)



Consolidated total assets $ 73,888,344 63,760,313 50,591,809

Intangible assets 32,301 43,768 45,907

Consolidated tangible total assets (TTA) $ 73,856,043 63,716,545 50,545,902

Tangible common equity ratio (TCE/TTA) 6.89% 7.75% 9.30%

The following table presents the efficiency ratio calculation:

Three months ended December 31,

Twelve months ended December 31,

(dollars in thousands)

2020

2019 (1)

2020

2019 (1)

Non-interest expense (NIE)

$

157,651

138,023

614,054

529,269

Net interest income before provision for credit losses

394,983

338,295

1,519,092

1,311,593

Other non-interest income

24,191

16,029

75,248

61,715

Total income (TI)

$

419,174

354,324

1,594,340

1,373,308

Efficiency ratio (NIE/TI)

37.61%

38.95%

38.51%

38.54%

The following table presents the efficiency ratio calculation:

Three months Twelve months ended ended December 31, December 31,

(dollars in thousands) 2020 2019 2020 2019 (1) (1)

Non-interest expense (NIE) $ 157,651 138,023 614,054 529,269

Net interest income before provision 394,983 338,295 1,519,092 1,311,593for credit losses

Other non-interest income 24,191 16,029 75,248 61,715

Total income (TI) $ 419,174 354,324 1,594,340 1,373,308

Efficiency ratio (NIE/TI) 37.61% 38.95% 38.51% 38.54%

(1) Effective January 1, 2020, we changed our accounting policy for Low Income Housing Tax Credit ("LIHTC") investments from the equity method to the proportional amortization method as it was determined to be the preferable method. All applicable prior period amounts have been retroactively restated to conform to the new accounting policy.

(1) Effective January 1, 2020, we changed our accounting policy for Low IncomeHousing Tax Credit ("LIHTC") investments from the equity method to theproportional amortization method as it was determined to be the preferablemethod. All applicable prior period amounts have been retroactively restated toconform to the new accounting policy.

The following table reconciles yield on interest-earning assets to the yield on interest-earning assets on a tax-equivalent basis:

Three months ended December 31,

Twelve months ended December 31,

(dollars in thousands)

2020

2019

2020

2019

Interest income (as reported)

$

488,558

481,396

1,931,646

1,911,676

Tax-equivalent adjustment

1,636

1,457

6,285

5,269

Interest income, tax-equivalent basis

$

490,194

482,853

1,937,931

1,916,945

Interest-earnings assets

$

70,834,105

49,560,195

59,685,372

48,382,997

Yield on interest-earning assets

2.74%

3.85%

3.24%

3.95%

Tax-equivalent effect

0.01%

0.02%

0.01%

0.01%

Yield on interest-earning assets, tax-equivalent basis

2.75%

3.87%

3.25%

3.96%

The following table reconciles yield on interest-earning assets to the yield oninterest-earning assets on a tax-equivalent basis:

Three months ended Twelve months ended December 31, December 31,

(dollars in thousands) 2020 2019 2020 2019

Interest income (as reported) $ 488,558 481,396 1,931,646 1,911,676

Tax-equivalent adjustment 1,636 1,457 6,285 5,269

Interest income, tax-equivalent $ 490,194 482,853 1,937,931 1,916,945basis

Interest-earnings assets $ 70,834,105 49,560,195 59,685,372 48,382,997



Yield on interest-earning 2.74% 3.85% 3.24% 3.95%assets

Tax-equivalent effect 0.01% 0.02% 0.01% 0.01%

Yield on interest-earning 2.75% 3.87% 3.25% 3.96%assets, tax-equivalent basis

The following table reconciles net interest margin (as reported) to core net interest margin on a tax-equivalent basis excluding loan prepayment penalty income:

Three months endedDecember 31,

Three months endedSeptember 30,

Twelve months ended,December 31,

(dollars in thousands)

2020

2019

2020

2019

2020

2019

Net interest margin (as reported)

2.22%

2.71%

2.54%

2.67%

2.55%

2.71%

Tax-equivalent adjustment

0.01%

0.01%

0.01%

0.01%

0.01%

0.01%

Margin contribution from loan prepayment penalty income

(0.02)%

(0.05)%

(0.03)%

(0.02)%

(0.07)%

(0.03)%

Core net interest margin, tax-equivalent basis excluding loan prepayment penalty income

2.21%

2.67%

2.52%

2.66%

2.49%

2.69%

The following table reconciles net interest margin (as reported) to core netinterest margin on a tax-equivalent basis excluding loan prepayment penaltyincome:

Three months Three months Twelve months ended ended ended, December 31, September 30, December 31,

(dollars in thousands) 2020 2019 2020 2019 2020 2019

Net interest margin (as reported) 2.22% 2.71% 2.54% 2.67% 2.55% 2.71%

Tax-equivalent adjustment 0.01% 0.01% 0.01% 0.01% 0.01% 0.01%

Margin contribution from loan (0.02) (0.05) (0.03) (0.02)% (0.07)% (0.03)%prepayment penalty income % % %

Core net interest margin,tax-equivalent basis excluding loan 2.21% 2.67% 2.52% 2.66% 2.49% 2.69%prepayment penalty income

The following table reconciles net income (as reported) to pre-tax, pre-provision earnings:

Three months ended December 31,

Twelve months ended December 31,

(dollars in thousands)

2020

2019 (1)

2020

2019 (1)

Net income (as reported)

$

173,009

147,614

528,359

586,486

Income tax expense

52,915

58,932

203,833

234,917

Provision for credit losses

35,599

9,755

248,094

22,636

Pre-tax, pre-provision earnings

$

261,523

216,301

980,286

844,039

The following table reconciles net income (as reported) to pre-tax,pre-provision earnings:

Three months ended Twelve months ended December 31, December 31,

(dollars in thousands) 2020 2019 (1) 2020 2019 (1)

Net income (as reported) $ 173,009 147,614 528,359 586,486

Income tax expense 52,915 58,932 203,833 234,917

Provision for credit losses 35,599 9,755 248,094 22,636

Pre-tax, pre-provision earnings $ 261,523 216,301 980,286 844,039

(1) Effective January 1, 2020, we changed our accounting policy for Low Income Housing Tax Credit ("LIHTC") investments from the equity method to the proportional amortization method as it was determined to be the preferable method. All applicable prior period amounts have been retroactively restated to conform to the new accounting policy.

(1) Effective January 1, 2020, we changed our accounting policy for Low IncomeHousing Tax Credit ("LIHTC") investments from the equity method to theproportional amortization method as it was determined to be the preferablemethod. All applicable prior period amounts have been retroactively restated toconform to the new accounting policy.

The following table reconciles loans and leases (as reported) to core loans (excluding Paycheck Protection Program ("PPP") loans):

(dollars in thousands)

December 31,2020

September 30,2020

December 31,2019

Loans and leases (as reported)

$

48,833,098

46,212,092

39,109,623

PPP loans

1,874,447

1,985,357

-

Core loans (excluding PPP loans)

$

46,958,651

44,226,735

39,109,623

View source version on businesswire.com: https://www.businesswire.com/news/home/20210121005195/en/

CONTACT: Investor Contact: Eric R. Howell, Senior Executive Vice President - Corporate & Business Development 646-822-1402, ehowell@signatureny.com Media Contact: Susan Turkell Lewis, 646-822-1825, slewis@signatureny.com