Signature Bank Reports 2014 Fourth Quarter and Year-End Results

Deposit Growth, Loan Growth and Net Income All Reach Record Levels in 2014

  • Net Income for the 2014 Fourth Quarter Reached a Record $81.4 Million, or $1.60 Diluted Earnings Per Share, An Increase of $17.1 Million, or 26.5 Percent, from $64.3 Million, or $1.34 Diluted Earnings Per Share Reported in the 2013 Fourth Quarter.
  • Net Income for 2014 Reached a Record $296.7 Million, or $5.95 Diluted Earnings Per Share, Compared with $228.7 Million or $4.76 Diluted Earnings Per Share in 2013, Up $68.0 Million, or 29.7 Percent.
  • Deposits in the Fourth Quarter Rose $1.30 Billion to $22.62 Billion. Average Deposits Increased $1.49 Billion, or 7.2 Percent, in the 2014 Fourth Quarter.
  • Deposits for 2014 Grew a Record $5.56 Billion, or 32.6 Percent. Core Deposits Up a Record $4.14 Billion, or 26.9 Percent. Average Deposits for 2014 at $19.93 Billion, Representing a Record Increase of $4.31 Billion, or 27.6 Percent, Versus $15.63 Billion in 2013.
  • Loans Increased $1.31 Billion, or 7.9 Percent, to $17.86 Billion in the 2014 Fourth Quarter. Since Year-end 2013, Loans Increased a Record $4.39 Billion, or 32.1 Percent.
  • Non-Accrual Loans Were $21.0 Million, or 0.12 Percent of Total Loans, at December 31, 2014, Versus $24.4 Million, or 0.15 Percent of Total Loans, at the End of the 2014 Third Quarter. Non-Accrual Loans at Year-end 2013 were $31.3 Million, or 0.23 Percent of Total Loans.
  • Net Interest Margin Was 3.23 Percent for the 2014 Fourth Quarter, Compared with 3.25 Percent for the 2014 Third Quarter and 3.32 Percent for the 2013 Fourth Quarter.
  • Core Net Interest Margin, Which Excludes Loan Prepayment Penalty Income, Decreased One Basis Point to 3.13 Percent for the 2014 Fourth Quarter, Compared with 3.14 Percent for the 2014 Third Quarter. The Linked Quarter Decline in Net Interest Margin and Core Net Interest Margin Is Attributable to an Excess in Average Cash Resulting From Continued Substantial Deposit Growth and a Limited Market for Securities Investment.
  • Tier 1 Leverage, Tier 1 Risk-Based and Total Risk-Based Capital Ratios were 9.25 Percent, 13.49 Percent and 14.39 Percent, Respectively, at December 31, 2014. Signature Bank Remains Significantly Above FDIC “Well-Capitalized” Standards. Tangible Common Equity Ratio was 9.14 Percent.
  • For 2014, Five Private Client Banking Teams Joined and Three Private Client Banking Group Directors Were Added to Existing Teams. Also in 2014, Signature Financial Expanded With the Addition of Two New Business Lines – National Franchise Finance and Commercial Marine Finance.

NEW YORK--()--Signature Bank (Nasdaq: SBNY), a New York-based full-service commercial bank, today announced results for its fourth quarter and year ended December 31, 2014.

Net income for the 2014 fourth quarter reached a record $81.4 million, or $1.60 diluted earnings per share, compared with $64.3 million, or $1.34 diluted earnings per share, for the 2013 fourth quarter. The record net income for the 2014 fourth quarter, when compared with the same period last year, is primarily the result of an increase in net interest income, fueled by record deposit growth and record loan growth. These factors were partially offset by an increase in non-interest expenses.

Net interest income for the 2014 fourth quarter rose $37.4 million, or 21.0 percent, to $215.7 million, compared with the fourth quarter of 2013. This increase is primarily due to growth in average interest-earning assets. Total assets reached $27.32 billion at December 31, 2014, expanding $4.94 billion, or 22.1 percent, from $22.38 billion at December 31, 2013. Average assets for the 2014 fourth quarter reached $26.88 billion, an increase of $5.20 billion, or 24.0 percent, versus the comparable period a year ago.

Deposits for the 2014 fourth quarter rose $1.30 billion, or 6.1 percent, to $22.62 billion at December 31, 2014. Overall deposit growth in 2014 was 32.6 percent, or a record $5.56 billion, when compared with deposits at the end of 2013. Excluding short-term escrow and brokered deposits of $3.08 billion at year-end 2014 and $1.66 billion at year-end 2013, core deposits increased a record $4.14 billion, or 26.9 percent, in 2014. Average total deposits for 2014 were $19.93 billion, growing a record $4.31 billion, or 27.6 percent, versus average total deposits of $15.63 billion for 2013.

“2014 was another stellar year in which we continued to reap solid returns and deliver unprecedented results including record deposit growth, record loan growth and the seventh consecutive year of record earnings. Moreover, it was also a year where we heavily invested in the future of our institution. This is evidenced by the successful public offering we completed this past summer, raising nearly $300 million in common stock to fuel the Bank’s continuing expansion, along with two business lines we added under Signature Financial, five new private client banking teams that joined the Bank and three Banking Group Directors that were appointed to existing teams,” stated Joseph J. DePaolo, President and Chief Executive Officer.

“We continue to execute our highly successful single-point-of-contact business model, which allows Signature Bank to differentiate itself in a crowded marketplace. Our persistence, commitment and overall strong performance culminated in the Bank being named the Best Bank in America by Forbes for 2015. This prestigious ranking is an honor bestowed on us as 2014 closed, and one we are highly gratified to have earned. It represents the ongoing success of our business model coupled with the hard work of all our colleagues and the dedication of our clients. Although we have moved up in the Forbes rankings each year over the past five, and are now at the top, we will not rest on our laurels as we strive to maintain the same discipline and focus that earned us this position on the Forbes list as well as in the marketplace we serve,” DePaolo said.

“From the too-big-to-fail banks to our competitors of all sizes, Signature Bank stood out not only at Forbes but also across other third parties’ lists that recognized our accomplishments this past year. Our ability to rank the Best Bank in America by Forbes is a result of our focus on what matters most to our success and to that of our clients - depositors come first. In an environment when this can sometimes become obscured, we clearly know that’s what earned us this prominent achievement. Depositor safety is our waking thought each day and guides us through every business decision we make,” remarked Chairman of the Board Scott A. Shay.

“Since our founding in 2001, we have remained dedicated to catering to privately owned businesses – a niche we always believed was overlooked by mega-banks and has proved to be the case. How we take care of clients is the reason we ultimately earned this highest of high honors from Forbes. We sincerely thank our colleagues, clients and shareholders for their support in helping Signature Bank become the best bank in the country,” Shay concluded.

Capital

The Bank’s tier 1 leverage, tier 1 risk-based, and total risk-based capital ratios were approximately 9.25 percent, 13.49 percent and 14.39 percent, respectively, as of December 31, 2014. Each of these ratios is well in excess of regulatory requirements. The Bank’s strong risk-based capital ratios reflect the relatively low risk profile of the Bank’s balance sheet. The Bank’s tangible common equity ratio remains strong at 9.14 percent. The Bank defines the tangible common equity ratio as the ratio of tangible common equity to adjusted tangible assets and calculates this ratio by dividing total consolidated common shareholders’ equity by consolidated total assets.

Net Interest Income

Net interest income for the 2014 fourth quarter was $215.7 million, up $37.4 million, or 21.0 percent, when compared with the same period last year, primarily due to growth in average interest-earning assets. Average interest-earning assets of $26.5 billion for the 2014 fourth quarter represent an increase of $5.2 billion, or 24.4 percent, from the 2013 fourth quarter. Yield on interest-earning assets for the 2014 fourth quarter decreased 14 basis points, to 3.71 percent, versus the fourth quarter of last year. This decrease was primarily attributable to the continued effect of the prolonged low interest rate environment.

Average cost of deposits and average cost of funds for the 2014 fourth quarter decreased by five and four basis points to 0.45 percent and 0.53 percent, respectively, versus the comparable period a year ago. These decreases were predominantly due to the continued effect of the prolonged low interest rate environment.

Net interest margin for the 2014 fourth quarter was 3.23 percent versus 3.32 percent reported in the 2013 fourth quarter and 3.25 percent in the 2014 third quarter. Excluding loan prepayment penalty income in both quarters, linked quarter core margin decreased one basis point to 3.13 percent. The linked quarter decline in net interest margin and core net interest margin is attributable to an excess in average cash resulting from continued substantial deposit growth and a limited market for securities investment.

Provision for Loan Losses

The Bank’s provision for loan losses for the fourth quarter of 2014 was $7.6 million, a decrease of $3.4 million, or 31.1 percent, versus the 2013 fourth quarter. The decrease was primarily due to a decline in net charge offs of $3.0 million.

Net recoveries for the fourth quarter of 2014 were $181,000, or 0.00 percent of average loans on an annualized basis, versus net charge-offs of $1.5 million, or 0.04 percent, for the 2014 third quarter and $2.8 million, or 0.09 percent, for the 2013 fourth quarter.

Non-Interest Income and Non-Interest Expense

Non-interest income for the 2014 fourth quarter was $7.4 million, up $1.4 million from $6.0 million reported in the fourth quarter of last year. The increase was due to a rise in net gains on sales of loans of $1.4 million and a decrease of $2.2 million in write-downs on other than temporary impairment of securities. The increase was partially offset by a decrease of $803,000 in net gains on sales of securities and an increase of $1.8 million in other loss from the amortization of low income housing tax credit investments.

Non-interest expense for the 2014 fourth quarter was $76.0 million, an increase of $11.5 million, or 17.8 percent, versus $64.5 million reported in the 2013 fourth quarter. The increase was primarily a result of new private client banking teams joining and our continued investment in Signature Financial, as well as an increase in costs in our risk management and compliance related activities.

The Bank’s efficiency ratio improved to 34.1 percent for the fourth quarter of 2014 compared with 35.0 percent for the same period a year ago. The improvement was primarily due to growth in net interest income, coupled with expense containment.

Loans

Loans, excluding loans held for sale, expanded $1.31 billion, or 7.9 percent, during the 2014 fourth quarter to $17.86 billion, versus $16.55 billion at September 30, 2014. At December 31, 2014, loans accounted for 65.4 percent of total assets, compared with 63.8 percent at the end of the 2014 third quarter and 60.4 percent at the end of 2013. Average loans, excluding loans held for sale, reached $17.06 billion in the 2014 fourth quarter, growing $1.21 billion, or 7.7 percent, from the 2014 third quarter and $4.31 billion, or 33.8 percent, from the fourth quarter of 2013. The increase in loans for the quarter and the year was primarily driven by growth in commercial real estate and multi-family loans as well as specialty finance.

At December 31, 2014, non-accrual loans were $21.0 million, representing 0.12 percent of total loans and 0.08 percent of total assets, versus non-accrual loans of $24.4 million, or 0.15 percent of total loans, at September 30, 2014 and $31.3 million, or 0.23 percent of total loans, at December 31, 2013. At the end of the 2014 fourth quarter, the ratio of allowance for loan losses to total loans was 0.92 percent, versus 0.95 percent at September 30, 2014 and 1.00 percent at December 31, 2013. Additionally, the ratio of allowance for loan losses to non-accrual loans, or the coverage ratio, was 783 percent for the 2014 fourth quarter versus 642 percent for the 2014 third quarter and 431 percent for the 2013 fourth quarter.

Conference Call

Signature Bank’s management will host a conference call to review results of the 2014 fourth quarter and year-end on Thursday, January 22, 2015, at 10:00 AM ET. All participants should dial 866-359-8135 at least ten minutes prior to the start of the call and reference conference ID #60466509. International callers should dial 901-300-3484.

To hear a live web simulcast or to listen to the archived web cast following completion of the call, please visit the Bank’s web site at www.signatureny.com, click on "Investor Information", then under "Company News," select "Conference Calls," to access the link to the call. To listen to a telephone replay of the conference call, please dial 800-585-8367 or 404-537-3406 and enter conference ID #60466509. The replay will be available from approximately 1:00 PM ET on Thursday, January 22, 2015 through 11:59 PM ET on Monday, January 26, 2015.

About Signature Bank

Signature Bank, member FDIC, is a New York-based full-service commercial bank with 28 private client offices throughout the New York metropolitan area, including those in Manhattan, Brooklyn, Westchester, Long Island, Queens, the Bronx and Staten Island. The Bank’s growing network of private client banking teams serves the needs of privately owned businesses, their owners and senior managers.

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

For 2015, the Bank was named the Best Bank in America by Forbes and the only large cap bank to appear on Forbes’ list of America’s 50 Most Trustworthy Financial Companies. Furthermore, Signature Bank was voted Best Business Bank by the New York Law Journal in the publication’s fifth annual reader survey; named the nation’s fifth top-performing bank by ABA Banking Journal; and, ranked seventh on Bank Director magazine’s 2014 Bank Performance Scorecard for banks with assets between $5 and $50 billion.

For more information, please visit www.signatureny.com.

This press release and oral statements made from time to time by our representatives contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties. You should not place undue reliance on those statements because they are subject to numerous risks and uncertainties relating to our operations and business environment, all of which are difficult to predict and may be beyond our control. Forward-looking statements include information concerning our future results, interest rates and the interest rate environment, loan and deposit growth, loan performance, operations, new private client teams and other hires, new office openings and business strategy. These statements often include words such as "may," "believe," "expect," "anticipate," "intend," “potential,” “opportunity,” “could,” “project,” “seek,” “should,” “will,” would,” "plan," "estimate" or other similar expressions. As you consider forward-looking statements, you should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties and assumptions that could cause actual results to differ materially from those in the forward-looking statements and can change as a result of many possible events or factors, not all of which are known to us or in our control. These factors include but are not limited to: (i) prevailing economic conditions; (ii) changes in interest rates, loan demand, real estate values and competition, any of which can materially affect origination levels and gain on sale results in our business, as well as other aspects of our financial performance, including earnings on interest-bearing assets; (iii) the level of defaults, losses and prepayments on loans made by us, whether held in portfolio or sold in the whole loan secondary markets, which can materially affect charge-off levels and required credit loss reserve levels; (iv) changes in monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System; (v) changes in the banking and other financial services regulatory environment and (vi) competition for qualified personnel and desirable office locations. Although we believe that these forward-looking statements are based on reasonable assumptions, beliefs and expectations, if a change occurs or our beliefs, assumptions and expectations were incorrect, our business, financial condition, liquidity or results of operations may vary materially from those expressed in our forward-looking statements. Additional risks are described in our quarterly and annual reports filed with the FDIC. You should keep in mind that any forward-looking statements made by Signature Bank speak only as of the date on which they were made. New risks and uncertainties come up from time to time, and we cannot predict these events or how they may affect the Bank. Signature Bank has no duty to, and does not intend to, update or revise the forward-looking statements after the date on which they are made. In light of these risks and uncertainties, you should keep in mind that any forward-looking statement made in this release or elsewhere might not reflect actual results.

 
SIGNATURE BANK
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
 
 
  Three months ended

December 31,

Twelve months ended

December 31,

(dollars in thousands, except per share amounts)     2014       2013       2014       2013  
INTEREST AND DIVIDEND INCOME          
Loans held for sale $ 1,308 1,030 3,338 4,338
Loans and leases, net 178,932 140,116 652,285 514,936
Securities available-for-sale 49,080 47,680 193,629 186,170
Securities held-to-maturity 17,302 16,617 69,762 46,198
Other short-term investments     1,304       1,151       5,259       3,508  
  Total interest income     247,926       206,594       924,273       755,150  
INTEREST EXPENSE
Deposits 25,073 21,062 93,494 80,209
Federal funds purchased and securities sold under
agreements to repurchase 4,009 4,645 16,965 19,217
Federal Home Loan Bank advances     3,141       2,578       12,663       7,381  
  Total interest expense     32,223       28,285       123,122       106,807  
Net interest income before provision for loan and lease losses 215,703 178,309 801,151 648,343
Provision for loan and lease losses     7,613       11,043       31,110       41,643  
Net interest income after provision for loan and lease losses     208,090       167,266       770,041       606,700  
NON-INTEREST INCOME
Commissions 2,604 2,474 10,649 9,367
Fees and service charges 4,836 4,592 19,250 17,299
Net gains on sales of securities 455 1,258 5,272 6,228
Net gains on sales of loans 2,073 682 5,377 6,287
Other-than-temporary impairment losses on securities:
Total impairment losses on securities (306 ) (2,584 ) (3,930 ) (9,208 )
Portion recognized in other comprehensive income (before taxes)   (104 )     -       2,206       3,059  
Net impairment losses on securities recognized in earnings (410 ) (2,584 ) (1,724 ) (6,149 )
Other losses     (2,184 )     (388 )     (3,842 )     (1,021 )
  Total non-interest income     7,374       6,034       34,982       32,011  
NON-INTEREST EXPENSE
Salaries and benefits 51,266 41,660 196,679 163,554
Occupancy and equipment 5,758 5,160 22,490 19,681
Other general and administrative     18,941       17,642       74,075       63,942  
  Total non-interest expense     75,965       64,462       293,244       247,177  
Income before income taxes 139,499 108,838 511,779 391,534
Income tax expense     58,089       44,498       215,075       162,790  
Net income   $ 81,410       64,340       296,704       228,744  
PER COMMON SHARE DATA
Earnings per share – basic $ 1.62 1.36 6.05 4.84
Earnings per share – diluted $ 1.60 1.34 5.95 4.76
 
       
SIGNATURE BANK
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
 
 
December 31, December 31,
2014 2013
(dollars in thousands, except per share amounts)     (unaudited)      
ASSETS
Cash and due from banks $ 274,247 119,479
Short-term investments       24,831     24,498  
  Total cash and cash equivalents       299,078     143,977  
Securities available-for-sale 6,073,459 5,632,233
Securities held-to-maturity (fair value $2,222,177 and $2,110,290 at
December 31, 2014 and 2013) 2,208,551 2,175,844
Federal Home Loan Bank stock 86,338 130,785
Loans held for sale 548,297 420,759
Loans and leases, net 17,693,316 13,384,400
Premises and equipment, net 40,996 36,331
Accrued interest and dividends receivable 79,687 71,668
Other assets       288,918     380,666  
  Total assets     $ 27,318,640     22,376,663  
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Non-interest-bearing $ 7,064,959 5,391,483
Interest-bearing       15,555,316     11,665,614  
  Total deposits       22,620,275     17,057,097  
Federal funds purchased and securities sold under agreements
to repurchase 715,000 1,065,000
Federal Home Loan Bank advances 1,335,163 2,305,313
Accrued expenses and other liabilities       151,964     149,314  
  Total liabilities       24,822,402     20,576,724  
Shareholders’ equity
Preferred stock, par value $.01 per share; 61,000,000 shares authorized;
none issued at December 31, 2014 and December 31, 2013 - -
Common stock, par value $.01 per share; 64,000,000 shares authorized;
51,398,685 shares issued and 50,317,609 shares outstanding at December 31, 2014;
48,404,175 shares issued and 47,293,162 shares outstanding at December 31, 2013 503 473
Additional paid-in capital 1,348,661 1,013,900
Retained earnings 1,133,950 837,250
Net unrealized gains (losses) on securities, net of tax       13,124     (51,684 )
  Total shareholders' equity       2,496,238     1,799,939  
  Total liabilities and shareholders' equity     $ 27,318,640     22,376,663  
 
                 
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)       2014       2013       2014       2013
PER COMMON SHARE
Net income - basic $ 1.62 $ 1.36 $ 6.05 $ 4.84
Net income - diluted $ 1.60 $ 1.34 $ 5.95 $ 4.76
Average shares outstanding - basic 50,316 47,287 49,066 47,267
Average shares outstanding - diluted 50,936 48,174 49,870 48,029
Book value $ 49.61 $ 38.06 $ 49.61 $ 38.06
 
SELECTED FINANCIAL DATA
Return on average total assets 1.20% 1.18% 1.20% 1.16%
Return on average shareholders' equity 13.19% 14.34% 13.81% 13.26%
Efficiency ratio (1) 34.05% 34.97% 35.07% 36.33%

Efficiency ratio excluding net gains on sales of securities
  and net impairment losses on securities recognized
  in earnings (1)

 

34.06% 34.72% 35.22% 36.33%
Yield on interest-earning assets 3.71% 3.85% 3.80% 3.91%
Cost of deposits and borrowings 0.53% 0.57% 0.55% 0.60%
Net interest margin 3.23% 3.32% 3.29% 3.36%
(1)   The efficiency ratio is calculated by dividing non-interest expense by the sum of net interest income before provision for loan and lease losses and non-interest income.
 
             
        December 31,

2014

    September 30,

2014

    December 31,

2013

CAPITAL RATIOS
Tangible common equity (2) 9.14 % 9.25 % 8.04 %
Tier 1 leverage 9.25 % 9.45 % 8.54 %
Tier 1 risk-based 13.49 % 15.49 % 14.07 %
Total risk-based 14.39 % 16.51 % 15.10 %
 
ASSET QUALITY
Non-accrual loans $ 21,008 $ 24,394 $ 31,342
Allowance for loan and lease losses $ 164,392 $ 156,598 $ 135,071
Allowance for loan and lease losses to non-accrual loans 782.52 % 641.95 % 430.96 %
Allowance for loan and lease losses to total loans 0.92 % 0.95 % 1.00 %
Non-accrual loans to total loans 0.12 % 0.15 % 0.23 %
Quarterly net recoveries (charge-offs) to average loans, annualized 0.00 % (0.04 )% (0.09 )%
(2)   We define tangible common equity as the ratio of tangible common equity to adjusted tangible assets (the "TCE ratio") and calculate this ratio by dividing total consolidated common shareholders' equity by consolidated total assets (we had no intangible assets at any of the dates presented above). Tangible common equity is considered to be a non-GAAP financial measure and should be considered in addition to, not as a substitute for or superior to, financial measures determined in accordance with GAAP. The TCE ratio is a metric used by management to evaluate the adequacy of our capital levels. In addition to tangible common equity, management uses other metrics, such as Tier 1 capital related ratios, to evaluate capital levels.
 
                         
SIGNATURE BANK
NET INTEREST MARGIN ANALYSIS
(unaudited)
 
 
Three months ended Three months ended
December 31, 2014 December 31, 2013
(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 $ 602,099 374 0.25 % 131,910 114 0.34 %
Investment securities 8,421,847 67,312 3.20 % 8,044,210 65,334 3.25 %
Commercial loans, mortgages and leases 16,719,972 175,687 4.17 % 12,387,520 136,622 4.38 %
Residential mortgages and consumer loans 340,034 3,245 3.79 % 360,820 3,494 3.84 %
Loans held for sale       418,082     1,308     1.24 %       377,648     1,030     1.08 %
Total interest-earning assets       26,502,034     247,926     3.71 %       21,302,108     206,594     3.85 %
Non-interest-earning assets       375,139                   372,287            
Total assets     $ 26,877,173                   21,674,395            
INTEREST-BEARING LIABILITIES
Interest-bearing deposits
NOW and interest-bearing demand $ 1,612,566 1,552 0.38 % 867,204 799 0.37 %
Money market 12,775,689 20,472 0.64 % 9,506,959 16,978 0.71 %
Time deposits 1,063,767 3,049 1.14 % 1,196,387 3,285 1.09 %
Non-interest-bearing demand deposits       6,694,408     -     -         5,272,854     -     -  
Total deposits       22,146,430     25,073     0.45 %       16,843,404     21,062     0.50 %
Borrowings       2,078,967     7,150     1.36 %       2,884,573     7,223     0.99 %
Total deposits and borrowings       24,225,397     32,223     0.53 %       19,727,977     28,285     0.57 %
Other non-interest-bearing liabilities
and shareholders' equity       2,651,776                   1,946,418            
Total liabilities and shareholders' equity     $ 26,877,173                   21,674,395            
OTHER DATA
Net interest income / interest rate spread 215,703 3.18 % 178,309 3.28 %
Net interest margin 3.23 % 3.32 %
Ratio of average interest-earning assets
to average interest-bearing liabilities 109.40 % 107.98 %
 
                       
SIGNATURE BANK
NET INTEREST MARGIN ANALYSIS
(unaudited)
 
 
Twelve months ended Twelve months ended
December 31, 2014 December 31, 2013
(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 $ 387,213 928 0.24 % 126,995 446 0.35 %
Investment securities 8,198,481 267,722 3.27 % 7,549,126 235,430 3.12 %
Commercial loans, mortgages and leases 15,069,896 639,014 4.24 % 10,907,825 500,712 4.59 %
Residential mortgages and consumer loans 344,356 13,271 3.85 % 374,938 14,224 3.79 %
Loans held for sale       340,809     3,338     0.98 %     365,768     4,338     1.19 %
Total interest-earning assets       24,340,755     924,273     3.80 %     19,324,652     755,150     3.91 %
Non-interest-earning assets       365,143                 362,127            

Total assets

    $ 24,705,898                 19,686,779            
INTEREST-BEARING LIABILITIES
Interest-bearing deposits
NOW and interest-bearing demand $ 1,276,342 4,900 0.38 % 819,164 3,081 0.38 %
Money market 11,592,917 75,974 0.66 % 8,959,324 64,095 0.72 %
Time deposits 1,155,702 12,620 1.09 % 1,065,139 13,033 1.22 %
Non-interest-bearing demand deposits       5,906,454     -     -       4,782,428     -     -  
Total deposits       19,931,415     93,494     0.47 %     15,626,055     80,209     0.51 %
Borrowings       2,443,596     29,628     1.21 %     2,192,788     26,598     1.21 %
Total deposits and borrowings       22,375,011     123,122     0.55 %     17,818,843     106,807     0.60 %
Other non-interest-bearing liabilities
and shareholders' equity       2,330,887                 1,867,936            
Total liabilities and shareholders' equity     $ 24,705,898                 19,686,779            
OTHER DATA
Net interest income / interest rate spread 801,151 3.25 % 648,343 3.31 %
Net interest margin 3.29 % 3.36 %
Ratio of average interest-earning assets
to average interest-bearing liabilities 108.79 % 108.45 %
 
 
SIGNATURE BANK
NON-GAAP FINANCIAL MEASURES
(unaudited)
   
Management believes that the presentation of certain non-GAAP financial measures assists investors when comparing results period-to-period in a more consistent manner and provides a better measure of Signature Bank's results. These non-GAAP measures include the Bank's (i) net income and diluted earnings per share excluding the after tax effect of net gains on sales of securities and net impairment losses on securities recognized in earnings, (ii) tangible common equity ratio, (iii) efficiency ratio excluding net gains on sales of securities and net impairment losses on securities recognized in earnings, and (iv) core net interest margin excluding loan prepayment penalty income. These non-GAAP measures should not be considered a substitute for GAAP-basis measures and results. We strongly encourage investors to review our consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.
 
The following table presents a reconciliation of net income and diluted earnings per share (as reported) to net income and diluted earnings per share excluding the after tax effect of gains from the sales of securities and net impairment losses on securities recognized in earnings:
 
      Three months ended

December 31,

  Twelve months ended

December 31,

(dollars in thousands, except per share amounts)       2014       2013       2014       2013  
Net income (as reported) $ 81,410     64,340   296,704     228,744
Net gains on sales of securities (455 ) (1,258 ) (5,272 ) (6,228 )
Net impairment losses on securities recognized in earnings 410 2,584 1,724 6,149
Tax effect   18   (542 )   1,500   37  
Net income - excluding after tax effect of net gains on sales of securities
and net impairment losses on securities recognized in earnings $ 81,383   65,124     294,656   228,702  
 
Diluted earnings per share (as reported) $ 1.60 1.34 5.95 4.76
Net gains on sales of securities (0.01 ) (0.03 ) (0.11 ) (0.13 )
Net impairment losses on securities recognized in earnings 0.01 0.05 0.04 0.13
Tax effect       -       (0.01 )     0.03       -  
Diluted earnings per share - excluding after tax effect of net gains on sales of securities
and net impairment losses on securities recognized in earnings     $ 1.60       1.35       5.91       4.76  
 
The following table reconciles net interest margin (as reported) to core net interest margin excluding loan prepayment penalty income:
         
Three months ended

December 31,

  Twelve months ended

December 31,

        2014       2013       2014       2013  
Net interest margin (as reported) 3.23 %     3.32 % 3.29 %     3.36 %
Margin contribution from loan prepayment penalty income     (0.10 )%     (0.11 )%     (0.11 )%     (0.14 )%
Core net interest margin - excluding loan prepayment penalty income     3.13 %     3.21 %     3.18 %     3.22 %
 

Contacts

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

Release Summary

SIGNATURE BANK REPORTS 2014 FOURTH QUARTER AND YEAR-END RESULTS

Contacts

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