Business Wire | Jan 18, 2022 05:00AM EST

Signature Bank Reports 2021 Fourth Quarter and Year-End Results

Jan. 18, 2022

NEW YORK--(BUSINESS WIRE)--Jan. 18, 2022--Signature Bank (Nasdaq: SBNY), a New York-based full-service commercial bank, today announced results for its fourth quarter ended December 31, 2021.

Net income for the 2021 fourth quarter was $272.0 million, or $4.34 diluted earnings per share, versus $173.0 million, or $3.26 diluted earnings per share, for the 2020 fourth quarter. The increase in net income for the 2021 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, as well as a higher provision for credit losses booked in the fourth quarter of 2020 predominantly due to the effects of COVID-19 on the U.S. economy. Pre-tax, pre-provision earnings were $385.4 million for the 2021 fourth quarter, representing an increase of $123.9 million, or 47.4 percent, compared with $261.5 million for the 2020 fourth quarter.

Net interest income for the 2021 fourth quarter rose $140.9 million, or 35.7 percent, to $535.9 million, when compared with the fourth quarter of 2020. This increase is primarily due to growth in average interest-earning assets. Total assets reached $118.45 billion at December 31, 2021, expanding $44.56 billion, or 60.3 percent, from $73.89 billion at December 31, 2020. Average assets for the 2021 fourth quarter reached $112.73 billion, an increase of $40.92 billion, or 57.0 percent, versus the comparable period a year ago.

Deposits for the 2021 fourth quarter increased $10.57 billion, or 11.1 percent to $106.13 billion, including non-interest bearing deposit growth of $9.98 billion. Non-interest bearing deposits now represent 41.8 percent of total deposits. Overall deposit growth for the last twelve months was 67.6 percent, or $42.82 billion, when compared with deposits at the end of 2020. Average total deposits for 2021 were $85.31 billion, growing $34.75 billion, or 68.7 percent, versus average total deposits of $50.56 billion for 2020.

"2021, which marks Signature Bank's 20th anniversary, was a sensational year in terms of growth and achievements. All our businesses contributed to the Bank's stellar performance -- whether it be from our established New York banking franchise and emerging West Coast presence to our newer, nationwide businesses. The performance includes a multitude of accomplishments, such as record growth in deposits of $42.8 billion, which comes on the heels of our 2020 record deposit growth of $22.9 billion. Additionally, growth in non-interest bearing deposits, core loans and investment securities, all reached record levels. It is our founding, client-centric model that drives this robust organic growth, and, when combined with the inherent, best-in-class operating efficiencies of Signature Bank, it results in record revenue growth and record net income. In 2021, we did in fact execute on all we said we would -- and then some. Throughout the 20 years we have been in business, we seldom take time to acknowledge our achievements, such as our recent inclusion in the S&P 500 Index, for which we are very honored. Instead, we remain focused on our bright future and commitment to staying at the forefront of innovation as the financial services industry continues to undergo digital transformation," explained Signature Bank President and Chief Executive Officer Joseph J. DePaolo.

"Signature Bank's theme for our 20th year anniversary is 'Looking Forward. Giving Back.' We plan to make this our permanent purpose and it will be embedded within our distinguished logo. We're proud of the many strides made this year and value the meaningful ways our 1,800+ colleagues gave back. As we enter another year, we are saddened by the continued effects the pandemic has had on many of our colleagues and their families. We have not yet regained the normalcy we all can recall but look ahead positively by concentrating our efforts on doing more for one other and the world at large. To quote the legendary Winston Churchill, 'We make a living by what we get, we make a life by what we give'. And, we will continue to give," DePaolo concluded.

Scott A. Shay, Chairman of the Board, added: "It is humbling, amazing and gratifying to all of us who were present at the opening of our doors to have gone from perhaps the smallest bank in the country to a $100 billion enterprise, purely organically. No colleague or client is at Signature Bank because they were acquired from a legacy bank. Rather, they all are here because they want to be. We started the Bank with a set of values centered around a single point of contact, depositor safety and top-notch service. Twenty years later, those same tenets remain at our core."

"We have been innovators since we opened our doors. This pertains to all we have achieved, including both our Metro New York and West Coast expansion, formation of our Specialized Mortgage Services, Fund Banking Division, Venture Banking Group, Digital Assets and more. Lastly, our recent admittance to the S&P 500 is acknowledgment of all the hard work of our colleagues put forth each and every day."

"Financial technologies are rapidly transforming, and remain at the forefront of the new types of industries this disruption is creating. We understood then - and recognize even more now - the importance of this novel arena because of our abilities to adapt to market disruption. We are committed to evolving to better serve our institutional clients as we continue to adapt within the fast-developing world of digital assets," Shay concluded.

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 7.27 percent, 9.58 percent, 10.49 percent, and 11.73 percent, respectively, as of December 31, 2021. 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 6.02 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 11, 2022 to common stockholders of record at the close of business on January 28, 2022. The Bank also declared a cash dividend of $12.50 per share payable on or after March 30, 2022 to preferred shareholders of record at the close of business on March 18, 2022. In the fourth quarter of 2021, the Bank paid a cash dividend of $0.56 per share to common stockholders of record at the close of business on October 29, 2021. The Bank also paid a cash dividend of $12.50 per share to preferred shareholders of record at the close of business on December 17, 2021.

Net Interest Income

Net interest income for the 2021 fourth quarter was $535.9 million, up $140.9 million, or 35.7 percent, when compared with the same period last year, primarily due to growth in average interest-earning assets. Average interest-earning assets of $111.63 billion for the 2021 fourth quarter represent an increase of $40.79 billion, or 57.6 percent, from the 2020 fourth quarter. Due to the current low interest rate environment, the yield on interest-earning assets for the 2021 fourth quarter fell 59 basis points to 2.16 percent, compared to the fourth quarter of last year.

Average cost of deposits and average cost of funds for the fourth quarter of 2021 decreased 23 and 30 basis points, to 0.19 percent and 0.27 percent, respectively, versus the comparable period a year ago.

Net interest margin on a tax-equivalent basis for the 2021 fourth quarter was 1.91 percent versus 2.23 percent reported in the 2020 fourth quarter and 1.88 percent in the 2021 third quarter. Excluding loan prepayment penalties in both quarters, linked quarter core net interest margin on a tax-equivalent basis increased 2 basis points to 1.89 percent. The 2021 fourth quarter core net interest margin was negatively affected by 52 basis points due to significant excess cash balances driven by record deposit growth.

Provision for Credit Losses

The Bank's provision for credit losses for the fourth quarter of 2021 was $6.9 million, a decrease of $28.72 million, or 80.7 percent, versus the 2020 fourth quarter. The decrease in the provision for credit losses for the fourth quarter was predominantly attributable to improved macroeconomic conditions compared with the same period last year.

Net charge-offs for the 2021 fourth quarter were $33.7 million, or 0.22 percent of average loans, on an annualized basis, versus $17.3 million, or 0.12 percent, for the 2021 third quarter and net charge-offs of $11.4 million, or 0.10 percent, for the 2020 fourth quarter.

Non-Interest Income and Non-Interest Expense

Non-interest income for the 2021 fourth quarter was $33.5 million, up $9.3 million when compared with $24.2 million reported in the 2020 fourth quarter. The increase was driven by growth of $6.9 million in fees and service charges.

Non-interest expense for the fourth quarter of 2021 was $183.9 million, an increase of $26.3 million, or 16.7 percent, versus $157.7 million reported in the 2020 fourth quarter. The increase was predominantly due to a rise of $27.4 million in salaries and benefits from the significant hiring of private client banking teams, and operational support to meet the Bank's growing needs.

The Bank's efficiency ratio improved to 32.3 percent for the 2021 fourth quarter compared with 37.6 percent for the same period a year ago, and 35.4 percent for the third quarter of 2021.

Loans

Loans, excluding loans held for sale, grew $6.28 billion, or 10.7 percent, during the 2021 fourth quarter to $64.86 billion, versus $58.59 billion at September 30, 2021. Core loans (excluding Paycheck Protection Program loans) grew a record $6.82 billion, or 11.9 percent, during the fourth quarter of 2021 to $64.03 billion, compared with $57.21 billion at September 30, 2021. Average loans, excluding loans held for sale, reached $60.50 billion in the 2021 fourth quarter, growing $5.04 billion, or 9.1 percent, from the 2021 third quarter and $13.11 billion, or 27.7 percent, from the fourth quarter of 2020.

At December 31, 2021, non-accrual loans were $218.3 million, representing 0.34 percent of total loans and 0.18 percent of total assets, compared with non-accrual loans of $165.4 million, or 0.28 percent of total loans, at September 30, 2021 and $120.2 million, or 0.25 percent of total loans, at December 31, 2020. At December 31, 2021, the ratio of allowance for credit losses for loans and leases to total loans, was 0.73 percent, versus 0.85 percent at September 30, 2021 and 1.04 percent at December 31, 2020. Additionally, the ratio of allowance for credit losses for loans and leases to non-accrual loans, or the coverage ratio, was 217 percent for the 2021 fourth quarter versus 303 percent for the third quarter of 2021 and 423 percent for the 2020 fourth quarter.

COVID-19 Related Loan Modifications

As of December 31, 2021, total non-payment deferrals were $8.3 million, or 0.01 percent of the Bank's total loan portfolio and primarily related to our multi-family commercial real estate portfolio, compared with non-payment deferrals of $1.31 billion, or 2.7 percent of total loans, at December 31, 2020. The positive trend is the result of the continued economic recovery coming out of the lows of the COVID-19 pandemic.

Additionally, the Bank has made other COVID-19 related modifications that have resulted in the receipt of modified principal and interest payments totaling 2.9 percent of the loan book.

Conference Call

Signature Bank's management will host a conference call to review results of the 2021 fourth quarter and year ended December 31, 2021 on Tuesday, January 18, 2022 at 9:00 AM ET. All U.S. participants should dial 866-518-6930 and international callers should dial 203-518-9797 at least ten minutes prior to the start of the call and reference conference ID SBNYQ421.

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 800-938-1598 or 402-220-1545 and enter conference ID SBNYQ421. The replay will be available from approximately 12:00 PM ET on Tuesday, January 18, 2022 through 11:59 PM ET on Friday, January 21, 2022.

About Signature Bank

Signature Bank (Nasdaq: SBNY), member FDIC, is a New York-based full-service commercial bank with 37 private client offices throughout the metropolitan New York area, as well as those in Connecticut, 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 placed 22nd on S&P Global's list of the largest banks in the U.S., based on deposits.

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 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 expectations regarding future results, interest rates and the interest rate environment, loan and deposit growth, loan performance, operations, new private client team hires, new office openings, business strategy and the impact of the COVID-19 pandemic on each of the foregoing and on our business overall. Forward looking 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. Additional risks are described in our quarterly and annual reports filed with the FDIC. 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. 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.

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 2021 2020 2021 2020 share amounts)

INTEREST INCOME

Loans held for sale $ 955 1,321 4,157 3,655

Loans and leases 516,287 427,018 1,892,787 1,661,912

Securities available-for-sale 58,902 41,886 194,825 186,569

Securities held-to-maturity 16,199 12,675 54,949 55,335

Other investments 13,966 5,658 43,663 24,175

Total interest income 606,309 488,558 2,190,381 1,931,646

INTEREST EXPENSE

Deposits 46,920 65,990 210,644 297,349

Federal funds purchased andsecurities sold under agreements to 602 595 2,401 2,742

repurchase

Federal Home Loan Bank borrowings 16,699 17,420 67,745 85,333

Subordinated debt 6,167 9,570 29,067 27,130

Total interest expense 70,388 93,575 309,857 412,554

Net interest income before provision 535,921 394,983 1,880,524 1,519,092 for credit losses

Provision for credit losses 6,877 35,599 50,042 248,094

Net interest income after provision 529,044 359,384 1,830,482 1,270,998 for credit losses

NON-INTEREST INCOME

Commissions 4,020 3,731 16,253 13,441

Fees and service charges 21,501 14,625 75,068 46,397

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

Net gains on sale of loans 5,065 3,099 19,170 12,651

Other income (loss) 2,869 2,753 10,401 (847 )

Total non-interest income 33,455 24,191 120,892 75,248

NON-INTEREST EXPENSE

Salaries and benefits 123,104 95,703 458,885 389,125

Occupancy and equipment 12,160 10,934 46,473 44,371

Information technology 13,103 11,420 48,536 43,217

FDIC assessment fees 7,437 3,955 24,543 13,742

Professional fees 8,589 5,355 30,989 18,286

Other general and administrative 19,555 30,284 94,174 105,313

Total non-interest expense 183,948 157,651 703,600 614,054

Income before income taxes 378,551 225,924 1,247,774 732,192

Income tax expense 106,560 52,915 329,333 203,833

Net income $ 271,991 173,009 918,441 528,359

Preferred stock dividends 9,125 - 37,887 -

Net income available to common $ 262,866 173,009 880,554 528,359 shareholders

PER COMMON SHARE DATA

Earnings per common share - basic $ 4.38 3.28 15.20 10.00

Earnings per common share - diluted $ 4.34 3.26 15.03 9.96

Dividends per common share $ 0.56 0.56 2.24 2.24

SIGNATURE BANK

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

December 31,

2021

2020

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

(unaudited)

ASSETS

Cash and due from banks

$

29,547,574

12,208,997

Short-term investments

73,097

139,334

Total cash and cash equivalents

29,620,671

12,348,331

Securities available-for-sale (amortized cost $17,398,906 at December 31, 2021

and $8,894,719 at December 31, 2020); (zero allowance for credit losses at

December 31, 2021 and $4 at December 31, 2020)

17,152,863

8,890,417

Securities held-to-maturity (fair value $4,944,777 at December 31, 2021 and

$2,329,378 December 31, 2020); (allowance for credit losses $56 at

December 31, 2021 and $51 at December 31, 2020)

4,998,281

2,282,830

Federal Home Loan Bank stock

166,697

171,678

Loans held for sale

386,765

407,363

Loans and leases

64,862,798

48,833,098

Allowance for credit losses for loans and leases

(474,389

)

(508,299

)

Loans and leases, net

64,388,409

48,324,799

Premises and equipment, net

92,232

80,274

Operating lease right-of-use assets

225,988

237,407

Accrued interest and dividends receivable

306,827

277,801

Other assets

1,106,694

867,444

Total assets

$

118,445,427

73,888,344

LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits

Non-interest-bearing

$

44,363,215

18,757,771

Interest-bearing

61,769,579

44,557,552

Total deposits

106,132,794

63,315,323

Federal funds purchased and securities sold under agreements to repurchase

150,000

150,000

Federal Home Loan Bank borrowings

2,639,245

2,839,245

Subordinated debt

570,228

828,588

Operating lease liabilities

254,660

265,354

Accrued expenses and other liabilities

857,882

662,925

Total liabilities

110,604,809

68,061,435

Shareholders' equity

Preferred stock, par value $.01 per share; 61,000,000 shares authorized;

730,000 shares issued and outstanding at December 31, 2021 and

December 31, 2020

7

7

Common stock, par value $.01 per share; 125,000,000 and 64,000.000 shares

authorized at December 31, 2021 and December 31, 2020, respectively;

60,729,674 shares issued and 60,631,944 outstanding at December 31, 2021;

55,520,417 shares issued and 53,564,573 outstanding at December 31, 2020

606

555

Additional paid-in capital

3,763,810

2,583,514

Retained earnings

4,298,527

3,548,260

Treasury stock, zero shares at December 31, 2021 and 1,899,336 shares at

December 31, 2020

-

(232,531

)

Accumulated other comprehensive loss

(222,332

)

(72,896

)

Total shareholders' equity

7,840,618

5,826,909

Total liabilities and shareholders' equity

$

118,445,427

73,888,344

SIGNATURE BANK

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

December 31,

2021 2020

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

ASSETS

Cash and due from banks $ 29,547,574 12,208,997

Short-term investments 73,097 139,334

Total cash and cash equivalents 29,620,671 12,348,331

Securities available-for-sale (amortized cost$17,398,906 at December 31, 2021

and $8,894,719 at December 31, 2020); (zero 17,152,863 8,890,417 allowance for credit losses at

December 31, 2021 and $4 at December 31, 2020)

Securities held-to-maturity (fair value $4,944,777at December 31, 2021 and

$2,329,378 December 31, 2020); (allowance for 4,998,281 2,282,830 credit losses $56 at

December 31, 2021 and $51 at December 31, 2020)

Federal Home Loan Bank stock 166,697 171,678

Loans held for sale 386,765 407,363

Loans and leases 64,862,798 48,833,098

Allowance for credit losses for loans and leases (474,389 ) (508,299 )

Loans and leases, net 64,388,409 48,324,799

Premises and equipment, net 92,232 80,274

Operating lease right-of-use assets 225,988 237,407

Accrued interest and dividends receivable 306,827 277,801

Other assets 1,106,694 867,444

Total assets $ 118,445,427 73,888,344

LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits

Non-interest-bearing $ 44,363,215 18,757,771

Interest-bearing 61,769,579 44,557,552

Total deposits 106,132,794 63,315,323

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

Federal Home Loan Bank borrowings 2,639,245 2,839,245

Subordinated debt 570,228 828,588

Operating lease liabilities 254,660 265,354

Accrued expenses and other liabilities 857,882 662,925

Total liabilities 110,604,809 68,061,435

Shareholders' equity

Preferred stock, par value $.01 per share;61,000,000 shares authorized;

730,000 shares issued and outstanding at December 7 7 31, 2021 and

December 31, 2020

Common stock, par value $.01 per share;125,000,000 and 64,000.000 shares

authorized at December 31, 2021 and December 31,2020, respectively; 606 555 60,729,674 shares issued and 60,631,944outstanding at December 31, 2021;

55,520,417 shares issued and 53,564,573outstanding at December 31, 2020

Additional paid-in capital 3,763,810 2,583,514

Retained earnings 4,298,527 3,548,260

Treasury stock, zero shares at December 31, 2021and 1,899,336 shares at - (232,531 )

December 31, 2020

Accumulated other comprehensive loss (222,332 ) (72,896 )

Total shareholders' equity 7,840,618 5,826,909

Total liabilities and shareholders' equity $ 118,445,427 73,888,344

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)

2021

2020

2021

2020

PER COMMON SHARE

Earnings per common share - basic

$

4.38

$

3.28

$

15.20

$

10.00

Earnings per common share - diluted

$

4.34

$

3.26

$

15.03

$

9.96

Weighted average common shares outstanding - basic

60,003

52,673

57,871

52,641

Weighted average common shares outstanding - diluted

60,563

52,970

58,508

52,889

Book value per common share

$

117.63

$

95.56

$

117.63

$

95.56

SELECTED FINANCIAL DATA

Return on average total assets

0.96

%

0.96

%

0.95

%

0.87

%

Return on average common shareholders' equity

14.76

%

13.59

%

13.81

%

10.75

%

Efficiency ratio (1)

32.31

%

37.61

%

35.16

%

38.51

%

Yield on interest-earning assets

2.15

%

2.74

%

2.28

%

3.24

%

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

2.16

%

2.75

%

2.29

%

3.25

%

Cost of deposits and borrowings

0.27

%

0.57

%

0.35

%

0.75

%

Net interest margin

1.90

%

2.22

%

1.96

%

2.55

%

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

1.91

%

2.23

%

1.97

%

2.56

%

SIGNATURE BANK

FINANCIAL SUMMARY, CAPITAL RATIOS, ASSET QUALITY

(unaudited)



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

(in thousands, except ratios and 2021 2020 2021 2020 per share amounts)

PER COMMON SHARE

Earnings per common share - basic $ 4.38 $ 3.28 $ 15.20 $ 10.00

Earnings per common share - diluted $ 4.34 $ 3.26 $ 15.03 $ 9.96

Weighted average common shares 60,003 52,673 57,871 52,641 outstanding - basic

Weighted average common shares 60,563 52,970 58,508 52,889 outstanding - diluted

Book value per common share $ 117.63 $ 95.56 $ 117.63 $ 95.56



SELECTED FINANCIAL DATA

Return on average total assets 0.96 % 0.96 % 0.95 % 0.87 %

Return on average common 14.76 % 13.59 % 13.81 % 10.75 %shareholders' equity

Efficiency ratio (1) 32.31 % 37.61 % 35.16 % 38.51 %

Yield on interest-earning assets 2.15 % 2.74 % 2.28 % 3.24 %

Yield on interest-earning assets, 2.16 % 2.75 % 2.29 % 3.25 %tax-equivalent basis (1)(2)

Cost of deposits and borrowings 0.27 % 0.57 % 0.35 % 0.75 %

Net interest margin 1.90 % 2.22 % 1.96 % 2.55 %

Net interest margin, tax-equivalent 1.91 % 2.23 % 1.97 % 2.56 %basis (2)(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 Income" 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 Income" for related calculation.

December 31,2021

September 30,2021

December 31,2020

CAPITAL RATIOS

Tangible common equity (4)

6.02

%

6.45

%

6.89

%

Tier 1 leverage (5)

7.27

%

7.83

%

8.55

%

Common equity Tier 1 risk-based (5)

9.58

%

10.49

%

9.87

%

Tier 1 risk-based (5)

10.49

%

11.53

%

11.20

%

Total risk-based (5)

11.73

%

12.96

%

13.54

%

ASSET QUALITY

Non-accrual loans

$

218,295

$

165,384

$

120,171

Allowance for credit losses for loans and leases (ACLLL)

$

474,389

$

500,862

$

508,299

ACLLL to non-accrual loans

217.32

%

302.85

%

422.98

%

ACLLL to total loans

0.73

%

0.85

%

1.04

%

Non-accrual loans to total loans

0.34

%

0.28

%

0.25

%

Quarterly net charge-offs to average loans, annualized

0.22

%

0.12

%

0.10

%



December September December 31, 30, 31, 2021 2021 2020

CAPITAL RATIOS

Tangible common equity (4) 6.02 % 6.45 % 6.89 %

Tier 1 leverage (5) 7.27 % 7.83 % 8.55 %

Common equity Tier 1 risk-based (5) 9.58 % 10.49 % 9.87 %

Tier 1 risk-based (5) 10.49 % 11.53 % 11.20 %

Total risk-based (5) 11.73 % 12.96 % 13.54 %



ASSET QUALITY

Non-accrual loans $ 218,295 $ 165,384 $ 120,171

Allowance for credit losses for loans and $ 474,389 $ 500,862 $ 508,299 leases (ACLLL)

ACLLL to non-accrual loans 217.32 % 302.85 % 422.98 %

ACLLL to total loans 0.73 % 0.85 % 1.04 %

Non-accrual loans to total loans 0.34 % 0.28 % 0.25 %

Quarterly net charge-offs to average loans, 0.22 % 0.12 % 0.10 %annualized



(4) We define tangible common equity as the ratio of total tangible common equity to total tangible assets (the "TCE ratio"). 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) December 31, 2021 ratios are preliminary.

(4) We define tangible common equity as the ratio of total tangible commonequity to total tangible assets (the "TCE ratio"). Tangible common equity isconsidered to be a non-GAAP financial measure and should be considered inaddition to, not as a substitute for or superior to, financial measuresdetermined in accordance with GAAP. The TCE ratio is a metric used bymanagement to evaluate the adequacy of our capital levels. In addition totangible common equity, management uses other metrics, such as Tier 1 capitalrelated ratios, to evaluate capital levels.

(5) December 31, 2021 ratios are preliminary.

SIGNATURE BANK

NET INTEREST MARGIN ANALYSIS

(unaudited)

Three Months Ended December 31, 2021

Three Months Ended December 31, 2020

(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

$

30,474,298

11,831

0.15

%

12,511,429

3,569

0.11

%

Investment securities

20,297,693

77,236

1.52

%

10,631,245

56,650

2.13

%

Commercial loans, mortgages and leases

60,358,789

516,861

3.40

%

47,223,197

427,210

3.60

%

Residential mortgages and consumer loans

139,935

1,126

3.19

%

162,349

1,444

3.54

%

Loans held for sale

356,256

955

1.06

%

305,885

1,321

1.72

%

Total interest-earning assets (1)

111,626,971

608,009

2.16

%

70,834,105

490,194

2.75

%

Non-interest-earning assets

1,101,262

972,433

Total assets

$

112,728,233

71,806,538

INTEREST-BEARING LIABILITIES

Interest-bearing deposits

NOW and interest-bearing demand

$

18,694,556

15,862

0.34

%

12,362,930

19,334

0.62

%

Money market

41,433,741

28,030

0.27

%

28,511,134

39,934

0.56

%

Time deposits

1,583,242

3,028

0.76

%

1,898,286

6,722

1.41

%

Non-interest-bearing demand deposits

38,876,207

-

-

%

19,203,186

-

-

%

Total deposits

100,587,746

46,920

0.19

%

61,975,536

65,990

0.42

%

Subordinated debt

569,998

6,167

4.33

%

808,454

9,570

4.73

%

Other borrowings

2,805,278

17,301

2.45

%

2,989,245

18,015

2.40

%

Total deposits and borrowings

103,963,022

70,388

0.27

%

65,773,235

93,575

0.57

%

Other non-interest-bearing liabilities

989,002

854,144

Preferred equity

708,173

115,818

Common equity

7,068,036

5,063,341

Total liabilities and shareholders' equity

$

112,728,233

71,806,538

OTHER DATA

Net interest income / interest rate spread (1)

$

537,621

1.89

%

396,619

2.18

%

Tax-equivalent adjustment

(1,700

)

(1,636

)

Net interest income, as reported

$

535,921

394,983

Net interest margin

1.90

%

2.22

%

Tax-equivalent effect

0.01

%

0.01

%

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

1.91

%

2.23

%

Ratio of average interest-earning assets

to average interest-bearing liabilities

107.37

%

107.69

%



SIGNATURE BANK

NET INTEREST MARGIN ANALYSIS

(unaudited)



Three Months Ended Three Months Ended December 31, 2021 December 31, 2020

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

INTEREST-EARNING ASSETS

Short-term $ 30,474,298 11,831 0.15 % 12,511,429 3,569 0.11 %investments

Investment 20,297,693 77,236 1.52 % 10,631,245 56,650 2.13 %securities

Commercial loans, 60,358,789 516,861 3.40 % 47,223,197 427,210 3.60 %mortgages and leases

Residentialmortgages and 139,935 1,126 3.19 % 162,349 1,444 3.54 %consumer loans

Loans held for sale 356,256 955 1.06 % 305,885 1,321 1.72 %

Totalinterest-earning 111,626,971 608,009 2.16 % 70,834,105 490,194 2.75 %assets (1)

Non-interest-earning 1,101,262 972,433 assets

Total assets $ 112,728,233 71,806,538

INTEREST-BEARING LIABILITIES

Interest-bearing deposits

NOW andinterest-bearing $ 18,694,556 15,862 0.34 % 12,362,930 19,334 0.62 %demand

Money market 41,433,741 28,030 0.27 % 28,511,134 39,934 0.56 %

Time deposits 1,583,242 3,028 0.76 % 1,898,286 6,722 1.41 %

Non-interest-bearing 38,876,207 - - % 19,203,186 - - %demand deposits

Total deposits 100,587,746 46,920 0.19 % 61,975,536 65,990 0.42 %

Subordinated debt 569,998 6,167 4.33 % 808,454 9,570 4.73 %

Other borrowings 2,805,278 17,301 2.45 % 2,989,245 18,015 2.40 %

Total deposits and 103,963,022 70,388 0.27 % 65,773,235 93,575 0.57 %borrowings

Othernon-interest-bearing 989,002 854,144 liabilities

Preferred equity 708,173 115,818

Common equity 7,068,036 5,063,341

Total liabilitiesand shareholders' $ 112,728,233 71,806,538 equity

OTHER DATA

Net interest income/ interest rate $ 537,621 1.89 % 396,619 2.18 %spread (1)

Tax-equivalent (1,700 ) (1,636 ) adjustment

Net interest income, $ 535,921 394,983 as reported

Net interest margin 1.90 % 2.22 %

Tax-equivalent 0.01 % 0.01 %effect

Net interest marginon a tax-equivalent 1.91 % 2.23 %basis (1)

Ratio of averageinterest-earning assets

to averageinterest-bearing 107.37 % 107.69 %liabilities



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

(1) Presented on a tax-equivalent, non-GAAP, basis for municipal leasing andfinancing transactions recorded in Commercial loans, mortgages and leases usingthe U.S. federal statutory tax rate of 21 percent for the periods presented.

SIGNATURE BANK

NET INTEREST MARGIN ANALYSIS

(unaudited)

Twelve Months Ended December 31, 2021

Twelve Months Ended December 31, 2020

(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

$

25,167,623

35,009

0.14

%

5,887,909

11,748

0.20

%

Investment securities

15,908,371

258,428

1.62

%

9,812,898

254,331

2.59

%

Commercial loans, mortgages and leases

54,332,257

1,894,745

3.49

%

43,612,057

1,661,455

3.81

%

Residential mortgages and consumer loans

148,137

4,933

3.33

%

175,560

6,742

3.84

%

Loans held for sale

306,202

4,157

1.36

%

196,948

3,655

1.86

%

Total interest-earning assets (1)

95,862,590

2,197,272

2.29

%

59,685,372

1,937,931

3.25

%

Non-interest-earning assets

941,161

920,531

Total assets

$

96,803,751

60,605,903

INTEREST-BEARING LIABILITIES

Interest-bearing deposits

NOW and interest-bearing demand

$

18,296,459

73,622

0.40

%

8,783,053

67,948

0.77

%

Money market

36,492,490

121,416

0.33

%

23,924,076

191,353

0.80

%

Time deposits

1,759,229

15,606

0.89

%

2,132,466

38,048

1.78

%

Non-interest-bearing demand deposits

28,764,155

-

-

%

15,722,196

-

-

%

Total deposits

85,312,333

210,644

0.25

%

50,561,791

297,349

0.59

%

Subordinated debt

646,359

29,067

4.50

%

545,031

27,130

4.98

%

Other borrowings

2,879,793

70,146

2.44

%

3,804,585

88,075

2.31

%

Total deposits and borrowings

88,838,485

309,857

0.35

%

54,911,407

412,554

0.75

%

Other non-interest-bearing liabilities

878,876

750,691

Preferred equity

708,109

29,112

Common equity

6,378,281

4,914,693

Total liabilities and shareholders' equity

$

96,803,751

60,605,903

OTHER DATA

Net interest income / interest rate spread (1)

$

1,887,415

1.94

%

1,525,377

2.50

%

Tax-equivalent adjustment

(6,891

)

(6,285

)

Net interest income, as reported

$

1,880,524

1,519,092

Net interest margin

1.96

%

2.55

%

Tax-equivalent effect

0.01

%

0.01

%

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

1.97

%

2.56

%

Ratio of average interest-earning assets

to average interest-bearing liabilities

107.91

%

108.69

%



SIGNATURE BANK

NET INTEREST MARGIN ANALYSIS

(unaudited)



Twelve Months Ended Twelve Months Ended December 31, 2021 December 31, 2020

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

INTEREST-EARNING ASSETS

Short-term $ 25,167,623 35,009 0.14 % 5,887,909 11,748 0.20 %investments

Investment 15,908,371 258,428 1.62 % 9,812,898 254,331 2.59 %securities

Commercial loans, 54,332,257 1,894,745 3.49 % 43,612,057 1,661,455 3.81 %mortgages and leases

Residentialmortgages and 148,137 4,933 3.33 % 175,560 6,742 3.84 %consumer loans

Loans held for sale 306,202 4,157 1.36 % 196,948 3,655 1.86 %

Totalinterest-earning 95,862,590 2,197,272 2.29 % 59,685,372 1,937,931 3.25 %assets (1)

Non-interest-earning 941,161 920,531 assets

Total assets $ 96,803,751 60,605,903

INTEREST-BEARING LIABILITIES

Interest-bearing deposits

NOW andinterest-bearing $ 18,296,459 73,622 0.40 % 8,783,053 67,948 0.77 %demand

Money market 36,492,490 121,416 0.33 % 23,924,076 191,353 0.80 %

Time deposits 1,759,229 15,606 0.89 % 2,132,466 38,048 1.78 %

Non-interest-bearing 28,764,155 - - % 15,722,196 - - %demand deposits

Total deposits 85,312,333 210,644 0.25 % 50,561,791 297,349 0.59 %

Subordinated debt 646,359 29,067 4.50 % 545,031 27,130 4.98 %

Other borrowings 2,879,793 70,146 2.44 % 3,804,585 88,075 2.31 %

Total deposits and 88,838,485 309,857 0.35 % 54,911,407 412,554 0.75 %borrowings

Othernon-interest-bearing 878,876 750,691 liabilities

Preferred equity 708,109 29,112

Common equity 6,378,281 4,914,693

Total liabilitiesand shareholders' $ 96,803,751 60,605,903 equity

OTHER DATA

Net interest income/ interest rate $ 1,887,415 1.94 % 1,525,377 2.50 %spread (1)

Tax-equivalent (6,891 ) (6,285 ) adjustment

Net interest income, $ 1,880,524 1,519,092 as reported

Net interest margin 1.96 % 2.55 %

Tax-equivalent 0.01 % 0.01 %effect

Net interest marginon a tax-equivalent 1.97 % 2.56 %basis (1)

Ratio of averageinterest-earning assets

to averageinterest-bearing 107.91 % 108.69 %liabilities



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

SIGNATURE BANKNON-GAAP FINANCIAL MEASURES(unaudited)

This press release contains both financial measures based on GAAP and non-GAAP financial measures where 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:

(1) Presented on a tax-equivalent, non-GAAP, basis for municipal leasing andfinancing transactions recorded in Commercial loans, mortgages and leases usingthe U.S. federal statutory tax rate of 21 percent for the periods presented.

SIGNATURE BANKNON-GAAP FINANCIAL MEASURES(unaudited)

This press release contains both financial measures based on GAAP and non-GAAP financial measures where 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:

(dollars in thousands) December 31, September 30, December 31, 2021 2021 2020

Consolidated total shareholders' $ 7,840,618 7,679,139 5,826,909 equity

Less: Preferred equity 708,173 708,173 708,019

Common shareholders' equity $ 7,132,445 6,970,966 5,118,890

Less: Intangible assets 3,977 15,858 32,301

Tangible common shareholders' equity $ 7,128,468 6,955,108 5,086,589 (TCE)



Consolidated total assets $ 118,445,427 107,850,739 73,888,344

Less: Intangible assets 3,977 15,858 32,301

Consolidated tangible total assets $ 118,441,450 107,834,881 73,856,043 (TTA)

Tangible common equity ratio (TCE/ 6.02 % 6.45 % 6.89 %TTA)

The following table presents the efficiency ratio calculation:

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

(dollars in thousands) 2021 2020 2021 2020

Non-interest expense (NIE) $ 183,948 157,651 703,600 614,054

Net interest income before 535,921 394,983 1,880,524 1,519,092 provision for credit losses

Other non-interest income 33,455 24,191 120,892 75,248

Total income (TI) $ 569,376 419,174 2,001,416 1,594,340

Efficiency ratio (NIE/TI) 32.31 % 37.61 % 35.16 % 38.51 %

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

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

(dollars in thousands) 2021 2020 2021 2020

Interest income (as $ 606,309 488,558 2,190,381 1,931,646 reported)

Tax-equivalent 1,700 1,636 6,891 6,285 adjustment

Interest income, $ 608,009 490,194 2,197,272 1,937,931 tax-equivalent basis

Interest-earnings assets $ 111,626,971 70,834,105 95,862,590 59,685,372



Yield on 2.15 % 2.74 % 2.28 % 3.24 %interest-earning assets

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

Yield oninterest-earning assets, 2.16 % 2.75 % 2.29 % 3.25 %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 Three months Twelve months ended ended ended December 31, September 30, December 31,

(dollars in thousands) 2021 2020 2021 2020 2021 2020

Net interest margin (as 1.90 % 2.22 % 1.88 % 2.54 % 1.96 % 2.55 %reported)

Tax-equivalent adjustment 0.01 % 0.01 % 0.00 % 0.01 % 0.01 % 0.01 %

Margin contribution from loan (0.02 ) (0.02 ) (0.01 ) (0.03 ) (0.02 ) (0.07 )prepayment penalty income % % % % % %

Core net interest margin,tax-equivalent basis excluding 1.89 % 2.21 % 1.87 % 2.52 % 1.95 % 2.49 %loan prepayment penalty income

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) 2021 2020 2021 2020

Net income (as reported) $ 271,991 173,009 918,441 528,359

Income tax expense 106,560 52,915 329,333 203,833

Provision for credit losses 6,877 35,599 50,042 248,094

Pre-tax, pre-provision earnings $ 385,428 261,523 1,297,816 980,286

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



(dollars in thousands) December 31, September 30, December 31, 2021 2021 2020

Loans and leases (as reported) $ 64,862,798 58,585,996 48,833,098

Less: PPP loans 835,743 1,374,040 1,874,447

Core loans excluding PPP loans $ 64,027,055 57,211,956 46,958,651

View source version on businesswire.com: https://www.businesswire.com/news/home/20220118005367/en/

CONTACT: Investor Contact: Brian Wyremski, Vice President - Investor Relations & Corporate Development 646-822-1479, bwyremski@signatureny.com

CONTACT: Media Contact: Susan Turkell Lewis, 646-822-1825, slewis@signatureny.com