Signature Bank Reports 2005 Third Quarter Results.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Signature Bank (Nasdaq: SBNY) --Deposits Rise by $217 Million; Surpassing the $3 Billion Mark --Non-Interest Bearing Deposits Grew $95 Million or 12 Percent --Loans Increased a Record $119 Million or 16 Percent to $873 Million --Net Income Reaches $6.4 Million or $0.22 Diluted Earnings Per Share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of --Net Interest Margin Expands Two Basis Points Signature Bank (Nasdaq: SBNY), a New York-based full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. commercial bank, today announced results for its 2005 third quarter ended September September: see month. 30, 2005. Net income for the third quarter was $6.4 million or $0.22 diluted earnings per share, compared with $4.0 million or $0.15 diluted earnings per share for the third quarter of last year. This 62 percent improvement in net income for the quarter can be attributed to substantial growth in interest earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin and increased non-interest income, coupled with further leveraging of the Bank's operational infrastructure. Net interest income for the quarter reached $25.0 million, up $6.6 million, or 35.5 percent, versus the third quarter of last year. Total assets grew $198.9 million, or 5.3 percent, to $3.97 billion during the quarter. Deposits rose $216.5 million, or 7.4 percent, to $3.13 billion and average deposits increased $318.6 million, or 11.9 percent, to $3.0 billion at September 30, 2005. Core deposits of $2.81 billion accounted for approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 90 percent of total deposits. Commenting on the Bank's 2005 third quarter performance, Joseph J. DePaolo, President and Chief Executive Officer, explained: "During the quarter, the Bank once again achieved solid deposit growth and record loan growth. Our private client teams continue to focus diligently dil·i·gent adj. Marked by persevering, painstaking effort. See Synonyms at busy. [Middle English, from Old French, from Latin d on gathering deposits as well as generating assets from our target market niche niche: see ecology. niche Smallest unit of a habitat that is occupied by an organism. A habitat niche is the physical space occupied by the organism; an ecological niche is the role the organism plays in the community of organisms found in the , that being privately owned businesses, their owners and senior managers. Additionally, we are already reaping the benefits of our commercial real estate lending initiatives that we put in place at the beginning of this quarter. "The continued strong deposit growth and record loan growth this quarter represents the abilities of our 36 private client teams and 45 Group Directors. They remain dedicated to delivering the unparalleled, high-quality financial care Signature Bank relentlessly promises from a single point of contact. This is truly what sets Signature Bank apart among both bankers and clients in today's saturated saturated /sat·u·rat·ed/ (sach´ah-rat?ed) 1. denoting a chemical compound that has only single bonds and no double or triple bonds between atoms. 2. unable to hold in solution any more of a given substance. banking marketplace," DePaolo said. Scott A. Shay shay n. Informal A chaise. [Back-formation from chaise (taken as pl. )] Noun 1. , Chairman of the Board, also commented on the quarter, adding: "Signature Bank has been able to slightly improve its sequential One after the other in some consecutive order such as by name or number. quarter margin despite a difficult interest rate environment. We have been successful in doing so primarily because of our prudent balance sheet management. We remain dedicated to accomplishing long-term goals Long-term goals Financial goals expected to be accomplished in five years or longer. rather than attaining short-term gains Short-term gain (or loss) A profit or loss realized from the sale of securities held for less than a year that is taxed at normal income tax rates if the net total is positive. . This strategy continues to pay off, and as a result, we believe we are significantly better positioned for the future. "On another note, I want to welcome two new Board members appointed ap·point tr.v. ap·point·ed, ap·point·ing, ap·points 1. To select or designate to fill an office or a position: appointed her the chief operating officer of the company. 2. to our already distinguished board. Both former Senator SENATOR, government. One who is a member of a senate. 2. No person shall be a senator [of the national senate] who shall not have attained the age of thirty years, and been nine years a citizen of the United States and who shall not when elected, be an Alfonse Alfonse, a given name, may refer to:
York, Ont.: see Toronto, Ont., Canada. York, city, England York, city (1991 pop. 123,126) and district, North Yorkshire, N England, at the confluence of the Ouse and Foss rivers. area. We all look forward to benefiting from their knowledge and business acumen acumen Astuteness, perception, perspicacity ." Net Interest Income Net interest income for the third quarter was $25.0 million, representing a $6.6 million, or 35.5 percent, increase over the $18.5 million reported in the comparable period a year ago. The net interest income growth was due to a substantial increase in interest earning assets. Average interest earning assets for the third quarter of 2005 increased by $969.4 million, up 36.6 percent from the 2004 third quarter. Asset yields for the third quarter of 2005 rose 88 basis points to 4.46 percent, when compared with the same period last year, benefiting from higher short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. rates and an improved balance sheet composition. As a result of the Bank's stable core deposits, the average cost of deposits remained low at 1.55 percent. During the third quarter of 2005, the average total cost of funds Cost of Funds The interest rate paid on an outstanding loan. Notes: Money isn't free! Cost of funds is the cost of borrowing money. See also: Interest Rate Cost of funds Interest rate associated with borrowing money. increased by 94 basis points to 1.80 percent compared with the third quarter of 2004. Net interest income for the nine-month period ended September 30, 2005, was $70.1 million, an increase of $24.5 million or 53.6 percent when compared with the same period last year. The net interest margin for third quarter 2005 decreased three basis points to 2.75 percent versus the third quarter of 2004. On a linked quarter basis, net interest margin increased two basis points. The Bank continues to be well positioned for rising interest rates with a weighted average duration of 1.7 years for its securities portfolio. The asset-sensitive nature of the balance sheet allowed for modest margin expansion in the quarter despite continued flattening of the yield curve Flattening of the yield curve A change in the yield curve when the spread between the yield on long-term and short-term Treasuries has decreased. Compare steepening of the yield curve and butterfly shift. and further compression compression, external stress applied to an object or substance, tending to cause a decrease in volume (see pressure). Gases can be compressed easily, solids and liquids to a very small degree if at all. of asset spreads. The Bank's short duration investment portfolio remains poised to reinvest re·in·vest tr.v. re·in·vest·ed, re·in·vest·ing, re·in·vests To invest (capital or earnings) again, especially to invest (income from securities or funds) in additional shares. portfolio cash flows in accretive yielding investments or redeploy re·de·ploy tr.v. re·de·ployed, re·de·ploy·ing, re·de·ploys 1. To move (military forces) from one combat zone to another. 2. to even higher yielding loans. Non-Interest Income and Non-Interest Expense Non-interest income for the third quarter of 2005 was $4.9 million versus $4.1 million for the comparable period a year ago. The increase of more than $800,000 was fueled by an increase of $547,000 in commissions from brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. activities, a $377,000 increase in fees and service charges and an increase of $495,000 in other income. These increases were partially offset by a decrease of $569,000 in net gains on sales of securities and loans. In the third quarter of 2004, there were gains of $882,000 from two sales of interest-only strip Interest-only strip (IO) A security based solely on the interest payments from a pool of mortgages, Treasury bonds, or other bonds. Once the principal on the mortgages or bonds has been repaid, interest payments stop, and the value of the IO falls to zero. securities. There were no sales of interest-only strip securities in the third quarter of 2005. For the first nine months of 2005, non-interest income was $13.8 million versus $19.2 million for the comparable period last year. The decrease is attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to gains on sales of interest only strip securities of $9.3 million that occurred in the first nine months of 2004. There were no gains on sales of interest only strip securities in 2005. The decrease was partially offset by increases in all other non-interest income categories. Non-interest expense for the 2005 third quarter was $17.6 million versus $14.7 million for the 2004 third quarter. This increase is primarily due to the addition of new private client teams, the opening of new locations and increased professional fees due to costs associated with Sarbanes-Oxley compliance. Non-interest expense for the first nine months of 2005 was $62.0 million, an increase of $18.6 million or 42.9 percent when compared with the same period a year ago. Excluding the effects of a special one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. bonus of $12.0 million directly contributed by Hapoalim U.S.A. Holding Company, Inc., the Bank's former principal shareholder, in the second quarter of 2005, non-interest expense for the first nine months of 2005 was $50.0 million, an increase of $6.6 million or 15.2 percent. This increase is largely due to the addition of private client teams, the opening of new locations, increased data processing data processing or information processing, operations (e.g., handling, merging, sorting, and computing) performed upon data in accordance with strictly defined procedures, such as recording and summarizing the financial transactions of a costs and Sarbanes-Oxley compliance costs. Loans Loans, excluding loans held for sale, reached a record $872.5 million at September 30, 2005, up $118.7 million or 15.8 percent from the $753.8 million reported at June June: see month. 30, 2005. Average loans, excluding loans held for sale, grew $120.6 million since the second quarter of 2005. For the first nine months of 2005, loans, excluding loans held for sale, grew $301.7 million or 52.9 percent. This solid, organic growth stems mainly from commercial loans made to the Bank's target market by its established private client teams. Additionally, efforts put forth by the Bank's newly appointed senior lending executives are also contributing to the Bank's record loan growth. Loans held for sale were $88.6 million as of September 30, 2005, a decrease of $21.7 million from June 30, 2005. The periodic fluctuation Fluctuation A price or interest rate change. in loans held for sale is predominantly pre·dom·i·nant adj. 1. Having greatest ascendancy, importance, influence, authority, or force. See Synonyms at dominant. 2. due to the timing of SBA SBA abbr. Small Business Administration Noun 1. SBA - an independent agency of the United States government that protects the interests of small businesses and ensures that they receive a fair share of government loan purchases and subsequent pool sales. At September 30, 2005, non-performing loans A non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 3 months, but this can depend on the contract terms. amounted to $8.7 million compared with $4.7 million at June 30, 2005. The non-performing loan balance primarily consists of two loans. The increase was mostly due to one loan, which is in the process of favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). . This restructuring will result in additional collateral collateral (kəlăt`ərəl), something of value given or pledged as security for payment of a loan. Collateral consists usually of financial instruments, such as stocks, bonds, and negotiable paper, rather than physical goods, although , a significant pay down within 12 months and receipt of all principal and interest. Capital Signature Bank's capital ratios remain among the strongest industry-wide. The Bank's tier 1 risk-based, total risk-based and leverage capital ratios were 22.30 percent, 22.84 percent and 9.48 percent, respectively, as of September 30, 2005, which are all well in excess of regulatory requirements Regulatory requirements are part of the process of drug discovery and drug development. Regulatory requirements describe what is necessary for a new drug to be approved for marketing in any particular country. . The ratios reflect the relatively low risk profile of the balance sheet. DePaolo discussed the Bank's outlook and future plans: "We are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the Bank's growth and our recruitment recruitment /re·cruit·ment/ (re-krldbomact´ment) 1. the gradual increase to a maximum in a reflex when a stimulus of unaltered intensity is prolonged. 2. efforts going forward. As we enter the fourth quarter, we are preparing to announce the appointments of several new private client teams who we expect will join us from some of the industry's top financial institutions. We are also in the final stages of opening the Bank's 14th, 15th and 16th offices. In keeping with our strategy, the specific locations of these offices were dictated dic·tate v. dic·tat·ed, dic·tat·ing, dic·tates v.tr. 1. To say or read aloud to be recorded or written by another: dictate a letter. 2. a. by the geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. and industry strengths of these new teams. Also, we are considering adding lending-related product lines to the Bank's offerings, as appropriate, to further augment aug·ment v. aug·ment·ed, aug·ment·ing, aug·ments v.tr. 1. To make (something already developed or well under way) greater, as in size, extent, or quantity: our expanding lending capabilities. "Looking ahead, the prospects for recruiting in early 2006 are promising. We are further building upon the reputation we've we've Contraction of we have. we've have earned as the bank of choice among both seasoned relationship bankers, whose interest in joining Signature Bank is escalating, as well as our clients, who clearly recognize the difference in our service offering," DePaolo concluded. Conference Call Signature Bank's management will host a conference call to review results for the third quarter of 2005 on Thursday Thursday: see week. , October October: see month. 27, 2005, at 10:00 a.m. ET. Participants should dial 800-240-7305 at least ten minutes prior to the start of the call. International callers should dial 303-262-2138. To hear a live Web simulcast Simulcast is a portmanteau of "simultaneous broadcast", and refers to programs or events broadcast across more than one medium, or more than one service on the same medium, at the same time. or to listen to the archived Web cast of the conference call, please visit the Bank's Web site at www.signatureny.com, click on the investor relations Investor relations The process by which the corporation communicates with its investors. tab and then select news/press and conference calls to access the link to the call. Refer to conference identification number 30806. To listen to a telephone replay of the conference call, please dial 303-590-3000 and enter reservation A clause in a deed of real property whereby the grantor, one who transfers property, creates and retains for the grantor some right or interest in the estate granted, such as rent or an Easement ,a right of use over the land of another. identification number 11041067. The replay will be available from approximately 12:00 p.m. ET on Thursday, October 27, 2005, through Tuesday Tuesday: see week. , November November: see month. 1, 2005, at 6 p.m. ET. About Signature Bank Signature Bank, member FDIC FDIC See: Federal Deposit Insurance Corporation FDIC See Federal Deposit Insurance Corporation (FDIC). , is a New York-based full-service commercial bank with 13 private client offices located in the New York metropolitan area New York–Northern New Jersey–Long Island is the most populous metropolitan area in the United States and the third most populous in the world, after Tokyo and Mexico City. , serving the needs of privately owned businesses, their owners and senior managers through dozens of private client groups. The Bank offers a wide variety of business and personal banking products and services as well as investment, brokerage, asset management and insurance products and services through its subsidiary, Signature Securities Group Corporation, a licensed broker-dealer Broker-Dealer A person or firm in the business of buying and selling securities operating as both a broker and dealer depending on the transaction. Notes: Technically, a broker is only an agent who executes orders on behalf of clients, whereas a dealer acts as a principal , investment adviser and member NASD/SIPC. Signature Bank's 13 offices are located throughout the metropolitan New York area. In Manhattan Manhattan, indigenous people of North America Manhattan (mănhăt`ən), indigenous people of North America of the Algonquian-Wakashan linguistic stock (see Native American languages). -- 261 Madison Avenue Madison Avenue, celebrated street of Manhattan, borough of New York City. It runs from Madison Square (23d St.) to the Madison Bridge over the Harlem River (138th St.). In the 1940s and 50s, some of the major U.S. ; 300 Park Avenue; 71 Broadway Broadway, famous thoroughfare in New York City. It extends from Bowling Green near the foot of Manhattan island N to 262d St. in the Bronx. Throughout its length Broadway is chiefly a commercial street. ; 565 Fifth Avenue and 950 Third Avenue. Brooklyn Brooklyn (br  k`lĭn), borough of New York City (1990 pop. 2,300,664), 71 sq mi (184 sq km), coextensive with Kings co., SE N.Y. --
26 Court Street and 84 Broadway. Westchester Westchester is the name of some places in the United States of America:
For more information, please visit www.signatureny.com. This press release and oral statements made from time-to-time by our representatives contain "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 that are subject to risks and uncertainties. Forward-looking statements include information concerning our future results, interest rates, loan and deposit growth, operations, new private client team hires, new office openings and business strategy. These statements often include words such as "may," "believe," "expect," "anticipate," "intend," "plan," "estimate" or similar expressions. As you consider forward-looking statements, you should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties and assumptions that could cause actual results to differ materially from those in the forward-looking statements. These factors include but are not limited to: (i) prevailing economic conditions; (ii) changes in interest rates, loan demand, real estate values, and competition, which can materially affect origination Origination The process through which a mortgage lender creates a mortgage secured by some amount of the mortgagor's real property. Notes: Also known as loan origination, everyone must go through the origination process when securing a mortgage for a piece of real levels and gain on sale results in our business, as well as other aspects of our financial performance; (iii) the level of defaults, losses and prepayments Prepayments Payments made in excess of scheduled mortgage principal repayments. on loans made by us, whether held in portfolio or sold in the whole loan secondary markets, which can materially affect charge-off Eliminate or write off. The term charge-off is used to describe the process of removing from the records of a company something that was once regarded as an asset but has subsequently become worthless. levels and required credit loss reserve levels; and (iv) competition for qualified personnel and desirable office locations. Additional factors are described in our quarterly and annual reports. You should keep in mind that any forward-looking statements made by Signature Bank speak only as of the date on which they were made. New risks and uncertainties come up from time to time, and we cannot predict these events or how they may affect the Bank. Signature Bank has no duty to, and does not intend to, update or revise the forward-looking statements after the date on which they are made. In light of these risks and uncertainties, you should keep in mind that any forward-looking statement made in this release or elsewhere might not reflect actual results.
Signature Bank
Consolidated Statements of Operations
(unaudited)
(in thousands, except per share amounts)
Three months ended Nine months ended
September 30, September 30,
2005 2004 2005 2004
-----------------------------------------
Interest and dividend
income:
Loans held for sale $723 706 2,391 1,844
Loans, net 12,747 5,460 31,410 14,280
Securities available-for-
sale 22,837 14,130 62,629 34,769
Securities held-to-maturity 4,137 3,335 12,329 7,189
Other short-term
investments 202 194 788 422
-----------------------------------------
Total interest income $40,646 23,825 109,547 58,504
-----------------------------------------
Interest expense:
Deposits 11,694 4,274 28,121 10,464
Fed funds purchased and
securities sold under
agreements to repurchase 2,425 264 5,748 582
Federal Home Loan Bank
advances 1,200 815 4,931 1,811
Other short-term borrowings 296 -- 625 --
-----------------------------------------
Total interest expense $15,615 5,353 39,425 12,857
-----------------------------------------
Net interest income before
provision for loan losses 25,031 18,472 70,122 45,647
Provision for loan losses 803 666 2,081 1,876
-----------------------------------------
Net interest income after
provision for loan losses $24,228 17,806 68,041 43,771
-----------------------------------------
Non-interest income:
Commissions 1,715 1,168 4,819 3,682
Fees and service charges 1,939 1,562 5,501 4,493
Net gains on sales of
securities and loans 712 1,281 1,829 10,723
Other income 547 52 1,650 290
-----------------------------------------
Total non-interest income $4,913 4,063 13,799 19,188
-----------------------------------------
Non-interest expense:
Salaries and benefits 10,218 8,807 40,892 25,835
Occupancy and equipment 1,821 1,352 5,231 3,948
Other general and
administrative 5,550 4,587 15,849 13,598
-----------------------------------------
Total non-interest expense 17,589 14,746 61,972 43,381
-----------------------------------------
Income before income taxes 11,552 7,123 19,868 19,578
Income tax expense (benefit) 5,143 3,158 11,407 (5,302)
-----------------------------------------
Net income $6,409 3,965 8,461 24,880
=========================================
Earnings per share - basic $0.22 0.15 0.29 1.02
Earnings per share -
diluted $0.22 0.15 0.29 1.01
Signature Bank
Consolidated Statements of Financial Condition
(in thousands, except per share amounts)
September
30, December
2005 31,
Assets (unaudited) 2004
----------------------
Cash and due from banks $91,276 69,830
Short-term investments 7,039 5,230
----------------------
Total cash and cash equivalents 98,315 75,060
Securities available-for-sale ($641,946 pledged
at September 30, 2005 and $652,860 at December
31, 2004) 2,358,238 2,107,390
Securities held-to-maturity (fair market value
$406,743 at September 30, 2005 and $414,140 at
December 31, 2004; $104,527 pledged at
September 30, 2005 and $57,405 at December 31,
2004) 414,595 416,333
Federal Home Loan Bank stock 7,000 14,250
Loans held for sale 88,617 112,917
Loans, net 863,648 563,161
Premises and equipment, net 15,176 14,186
Accrued interest and dividends receivable 17,764 12,802
Other assets 101,670 40,257
----------------------
Total assets $3,965,023 3,356,356
======================
Liabilities and Shareholders' Equity
Liabilities:
Deposits:
Non-interest-bearing 915,598 759,281
Interest-bearing 2,214,854 1,821,426
----------------------
Total deposits 3,130,452 2,580,707
Fed funds purchased and securities sold under
agreements to repurchase 265,000 115,000
Federal Home Loan Bank advances 140,000 285,000
Other short-term borrowings 50,000 --
Accrued expenses and other liabilities 31,996 36,730
----------------------
Total liabilities $3,617,448 3,017,437
Shareholders' equity:
Preferred stock, par value $.01; 61,000,000
shares authorized and unissued at September
30,2005 -- --
Common stock, par value $.01; 64,000,000
shares authorized, 29,358,230 shares issued
and outstanding at September 30, 2005;
39,000,000 shares authorized, 29,315,000
shares issued and outstanding at December 31,
2004 294 293
Additional paid-in capital 361,281 348,553
Unearned compensation (890) (783)
Retained earnings (accumulated deficit) 5,395 (3,066)
Accumulated other comprehensive loss:
Net unrealized depreciation on securities
available-for-sale, net of tax effect (18,505) (6,078)
----------------------
Total shareholders' equity 347,575 338,919
----------------------
Total liabilities and shareholders' equity $3,965,023 3,356,356
======================
Financial Summary
(unaudited)
Three months ended Nine months ended
September September September September
(dollars in thousands, except 30, 30, 30, 30,
ratios and per share amounts) 2005 2004 2005 2004
---------- --------- --------- ---------
Per share:
Net income - basic $ 0.22 $ 0.15 $ 0.29 $ 1.02
Net income - diluted $ 0.22 $ 0.15 $ 0.29 $ 1.01
Average shares outstanding
- basic 29,357 26,505 29,343 24,442
Average shares outstanding
- diluted 29,710 26,812 29,683 24,643
Book value $ 11.84 $ 11.50 $ 11.84 $ 11.50
Selected financial data:
Return on average total
assets 0.67 % 0.57 % 0.31 % 1.41 %
Return on average
shareholders' equity 7.33 % 5.87 % 3.31 % 14.63 %
Efficiency ratio 58.74 % 65.44 % 73.85 % 66.91 %
Yield on interest-earning
assets 4.46 % 3.58 % 4.27 % 3.46 %
Cost of deposits and
borrowings 1.80 % 0.86 % 1.62 % 0.81 %
Net interest margin 2.75 % 2.78 % 2.73 % 2.70 %
September June December September
Capital Ratios 30, 30, 31, 30,
-------------- --------- ------ -------- ---------
(unaudited) 2005 2005 2004 2004
--------- ------ -------- ---------
Tier one leverage 9.48 % 9.98 % 10.86 % 12.25 %
Tier one risk-based 22.30 % 23.83 % 29.27 % 32.09 %
Total risk-based 22.84 % 24.37 % 29.92 % 32.67 %
September June December September
Asset Quality 30, 30, 31, 30,
------------- --------- ------- -------- ---------
(unaudited) 2005 2005 2004 2004
--------- ------- -------- ---------
Non-performing loans $ 8,719 $ 4,708 $ 6,042 $ 4,729
Allowance for loan losses $ 8,897 $ 8,105 $ 7,660 $ 6,185
Allowance for loan losses to non-
performing loans 102.04 %172.15 % 126.78 % 130.79%
Allowance for loan losses to
total loans 1.02 % 1.08 % 1.34 % 1.23%
Non-performing loans to total
loans 1.00 % 0.62 % 1.06 % 0.94%
Quarterly net charge-offs
(recoveries) to average loans
(annualized) 0.01 % 0.50 % 0.00 % (0.01%)
Signature Bank
Net Interest Margin Analysis
(unaudited)
The following tables present an analysis of net interest income by
each major category of interest-earning assets and interest-bearing
liabilities:
Three Months Ended
(unaudited) September 30, 2005
-----------------------------
Interest Average
Average Income/ Yield/
(dollars in thousands) Balance Expense Rate
----------- -------- --------
Interest-Earning Assets
Short-term investments $12,389 $109 3.49%
Investment securities 2,754,301 27,067 3.93%
Commercial loans and commercial
mortgages 618,931 9,587 6.15%
Residential mortgages 68,794 997 5.80%
Consumer loans 99,166 2,163 8.65%
Loans held for sale 63,283 723 4.53%
----------- -------- --------
Total interest-earning assets $3,616,864 $40,646 4.46%
Non-interest-earning assets 199,228
-----------
Total assets $3,816,092
===========
Interest-Bearing Liabilities
Interest-bearing deposits:
NOW and interest-bearing checking $209,562 $349 0.66%
Money market accounts 1,567,888 8,935 2.26%
Certificates of deposits 319,747 2,410 2.99%
Non-interest-bearing deposits 897,193 -- --
----------- -------- --------
Total deposits $2,994,390 $11,694 1.55%
Borrowings 455,074 3,921 3.42%
----------- -------- --------
Total deposits and borrowings $3,449,464 $15,615 1.80%
Other non-interest-bearing liabilities
and shareholders' equity 366,628
-----------
Total liabilities and shareholders'
equity $3,816,092
===========
Net interest income / interest rate spread $25,031 2.66%
======== ========
Net interest margin 2.75%
========
Ratio of average interest-earning assets to average
interest-bearing liabilities 104.85%
========
Three Months Ended
(unaudited) September 30, 2004
-----------------------------
Interest Average
Average Income/ Yield/
(dollars in thousands) Balance Expense Rate
------------ -------- -------
Interest-Earning Assets
Short-term investments $34,096 $102 1.19%
Investment securities 2,092,827 17,557 3.36%
Commercial loans and commercial
mortgages 318,054 3,648 4.56%
Residential mortgages 71,536 946 5.29%
Consumer loans 50,080 866 6.88%
Loans held for sale 80,881 706 3.47%
----------- -------- -------
Total interest-earning assets $2,647,474 $23,825 3.58%
Non-interest-earning assets 124,944
-----------
Total assets $2,772,418
===========
Interest-Bearing Liabilities
Interest-bearing deposits:
NOW and interest-bearing checking $176,742 $311 0.70%
Money market accounts 1,207,177 3,417 1.13%
Certificates of deposits 130,754 546 1.66%
Non-interest-bearing deposits 710,862 -- --
----------- -------- -------
Total deposits $2,225,535 $4,274 0.76%
Borrowings 256,000 1,079 1.68%
----------- -------- -------
Total deposits and borrowings $2,481,535 $5,353 0.86%
Other non-interest-bearing liabilities
and shareholders' equity 290,883
-----------
Total liabilities and shareholders'
equity $2,772,418
===========
Net interest income / interest rate
spread $18,472 2.72%
======== =======
Net interest margin 2.78%
=======
Ratio of average interest-earning assets
to average interest-bearing liabilities 106.69%
=======
Nine Months Ended
(unaudited) September 30, 2005
-----------------------------
Interest Average
Average Income/ Yield/
(dollars in thousands) Balance Expense Rate
----------- --------- -------
Interest-Earning Assets
Short-term investments $16,432 $350 2.85%
Investment securities 2,650,640 75,396 3.79%
Commercial loans and commercial
mortgages 539,533 23,604 5.85%
Residential mortgages 71,759 2,904 5.40%
Consumer loans 77,490 4,902 8.46%
Loans held for sale 74,219 2,391 4.31%
----------- --------- -------
Total interest-earning assets $3,430,073 $109,547 4.27%
Non-interest-earning assets 189,552
-----------
Total assets $3,619,625
===========
Interest-Bearing Liabilities
Interest-bearing deposits:
NOW and interest-bearing checking $197,048 $959 0.65%
Money market accounts 1,505,408 22,066 1.96%
Certificates of deposits 247,334 5,096 2.75%
Non-interest-bearing deposits 815,922 -- --
----------- --------- -------
Total deposits $2,765,712 $28,121 1.36%
Borrowings 492,889 11,304 3.07%
----------- --------- -------
Total deposits and borrowings $3,258,601 $39,425 1.62%
Other non-interest-bearing liabilities
and shareholders' equity 361,024
-----------
Total liabilities and shareholders'
equity $3,619,625
===========
Net interest income / interest rate spread $70,122 2.65%
========= =======
Net interest margin 2.73%
=======
Ratio of average interest-earning assets to average interest-
bearing liabilities 105.26%
=======
Nine Months Ended
(unaudited) September 30, 2004
----------------------------
Interest Average
Average Income/ Yield/
(dollars in thousands) Balance Expense Rate
----------- -------- -------
Interest-Earning Assets
Short-term investments $30,798 $225 0.98%
Investment securities 1,740,734 42,155 3.23%
Commercial loans and commercial
mortgages 306,302 9,678 4.22%
Residential mortgages 64,516 2,274 4.70%
Consumer loans 43,098 2,328 7.22%
Loans held for sale 73,890 1,844 3.33%
----------- -------- -------
Total interest-earning assets $2,259,338 $58,504 3.46%
Non-interest-earning assets 105,115
-----------
Total assets $2,364,453
===========
Interest-Bearing Liabilities
Interest-bearing deposits:
NOW and interest-bearing checking $166,723 $868 0.70%
Money market accounts 1,022,889 8,399 1.10%
Certificates of deposits 97,902 1,197 1.63%
Non-interest-bearing deposits 613,102 -- --
----------- -------- -------
Total deposits $1,900,616 $10,464 0.74%
Borrowings 218,062 2,393 1.47%
----------- -------- -------
Total deposits and borrowings $2,118,678 $12,857 0.81%
Other non-interest-bearing liabilities
and shareholders' equity 245,775
-----------
Total liabilities and shareholders'
equity $2,364,453
===========
Net interest income / interest rate
spread $45,647 2.65%
======== =======
Net interest margin 2.70%
=======
Ratio of average interest-earning assets
to average interest-bearing liabilities 106.64%
=======
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