Signature Bank (Nasdaq: SBNY), a New York-based full-service commercial bank, today announced results for its fourth quarter and year ended December 31, 2011. Net income for the 2011 fourth quarter reached a record $40.0 million, or $0.85 diluted earnings per share, compared with $30.3 million, or $0.72 diluted earnings per share, for the 2010 fourth quarter. The record net income for the 2011 fourth quarter, when compared with the same period last year, is primarily the result of an increase in net interest income, fueled by core deposit growth and continued loan growth. These factors were partially offset by a decrease in non-interest income and an increase in non-interest expenses.
Net interest income for the 2011 fourth quarter rose $29.4 million, or 30.6 percent, to $125.3 million, compared with the fourth quarter of 2010. This increase is primarily due to growth in average interest-earning assets. Total assets reached $14.67 billion at December 31, 2011, expanding $2.99 billion, or 25.6 percent, from $11.67 billion at December 31, 2010. Average assets for the 2011 fourth quarter reached $14.28 billion, an increase of $3.11 billion, or 27.9 percent, versus the comparable period a year ago.
Deposits for the 2011 fourth quarter rose $566.2 million, or 5.1 percent, to $11.75 billion at December 31, 2011. Overall deposit growth in 2011 was 24.5 percent, or a record $2.31 billion, when compared with deposits at the end of 2010. Excluding short-term escrow and brokered deposits of $646.1 million at year-end 2010 and $831.8 million at year-end 2011, core deposits increased a record $2.13 billion, or 24.2 percent, in 2011. Average total deposits for 2011 were $10.86 billion, growing $2.4 billion, or 28.5 percent, versus average total deposits of $8.45 billion for 2010.
"Here we are on the heels of another successful year for Signature Bank where we again reported record results across all key metrics. Our prudent and methodical approach delivered record deposit and loan growth resulting in the 4th consecutive year of record net income," said Joseph J. DePaolo, President and Chief Executive Officer.
"Throughout the year, Signature Bank was recognized for its ability to deliver record financial performance and provide stellar service through our single-point-of-contact model, where we attract veteran bankers and afford them a workplace to build solid, lasting client relationships. This is evidenced by the Bank's numerous acknowledgments received during 2011, including, among others: Forbes, ranked the 5th Best Bank in America; our inaugural appearance on both Fortune's 100 fastest growing companies list and Crain's New York Business 2011 Best Places to Work in NYC list; and, Crain's New York Business Fastest Growing Public Companies listing, where the Bank ranked 7th. These achievements are indicative of our ongoing commitment to cater to privately owned businesses and their owners through our distinctive, proven relationship-based model," DePaolo added.
Scott A. Shay, Chairman of the Board, added: "Time and again, we have demonstrated to the marketplace the strength and integrity of our growing institution. 2011 marked another year of record performance, where we maintained solid credit quality and net interest margin, proved again our strong capital position and successfully cared for our clients through exceptional service. Our persistence in focusing on, first and foremost, the needs of privately owned businesses and depositor safety, has allowed Signature Bank to stand out in the economic landscape. While our accomplishments were reflected in the many high rankings we achieved this past year from several prestigious third parties, it is the high marks we consistently receive from our dedicated clients that enable the Bank to continually deliver on our mission and commitment."
Capital
The Bank's tier 1 leverage, tier 1 risk-based, and total risk-based capital ratios were approximately 9.67 percent, 17.08 percent and 18.17 percent, respectively, as of December 31, 2011. 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 9.60 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 2011 fourth quarter was $125.3 million, up $29.4 million, or 30.6 percent, when compared with the same period last year, primarily due to growth in average interest-earning assets. Average interest-earning assets of $14.02 billion for the 2011 fourth quarter represent an increase of $3.13 billion, or 28.8 percent, from the 2010 fourth quarter. Yield on interest-earning assets for the 2011 fourth quarter decreased 18 basis points, to 4.38 percent, versus the fourth quarter of last year. This decrease was primarily attributable to lower prevailing interest rates.
Average cost of deposits and average cost of funds for the 2011 fourth quarter decreased by 18 and 23 basis points to 0.76 percent and 0.91 percent, respectively, versus the comparable period a year ago. These decreases were predominantly due to lower prevailing interest rates.
Net interest margin for the 2011 fourth quarter was 3.55 percent versus 3.50 percent reported in the 2010 fourth quarter. On a linked quarter basis, net interest margin increased four basis points. The linked quarter increase was primarily due to higher prepayment penalty income, lower deposit costs, continued loan growth and the investment of excess cash balances.
Excluding loan prepayment penalty income in both quarters and the effect of the increase in average cash balances due to the capital raise in the 2011 third quarter, linked quarter core margin declined four basis points to 3.46 percent.
Provision for Loan Losses
The Bank's provision for loan losses for the fourth quarter of 2011 was $14.6 million, an increase of $1.0 million, or 7.4 percent, versus the 2010 fourth quarter. The increase was driven largely by an increase in loan growth and provisions to recognize the potential effect of the economic environment. This was partially offset by a decrease in charge-offs of $2.7 million.
Net charge-offs for the fourth quarter of 2011 were $11.9 million, or 0.71 percent of average loans on an annualized basis, versus $7.0 million, or 0.44 percent, for the 2011 third quarter and $14.6 million, or 1.16 percent, for the 2010 fourth quarter.
Non-Interest Income and Non-Interest Expense
Non-interest income for the 2011 fourth quarter was $7.9 million, down $2.1 million from $10.0 million reported in the fourth quarter of last year. The decline was predominantly due to a decrease of $2.0 million in net gains on sales of securities and loans.
Non-interest expense for the 2011 fourth quarter was $47.1 million, an increase of $6.1 million, or 15.0 percent, versus $41.0 million reported in the 2010 fourth quarter. The increase was primarily a result of the addition of new private client banking teams.
The Bank's efficiency ratio improved to 35.4 percent for the fourth quarter of 2011 compared with 38.7 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 $407.2 million, or 6.3 percent, during the 2011 fourth quarter to $6.85 billion, versus $6.44 billion at September 30, 2011. At December 31, 2011, loans accounted for 46.7 percent of total assets, compared with 46.5 percent at the end of the 2011 third quarter and 44.9 percent at the end of 2010. Average loans, excluding loans held for sale, reached $6.65 billion in the 2011 fourth quarter, growing $386.6 million, or 6.2 percent, from the 2011 third quarter and $1.65 billion, or 32.9 percent, from the fourth quarter of 2010. The increase in loans for the quarter and the year was primarily driven by growth in commercial real estate and multi-family loans underwritten within the Bank's stringent standards.
At December 31, 2011, non-accrual loans were $42.2 million, representing 0.62 percent of total loans and 0.29 percent of total assets, versus non-accrual loans of $51.1 million, or 0.79 percent of total loans, at September 30, 2011 and $34.1 million, or 0.65 percent of total loans, at December 31, 2010. At the end of the 2011 fourth quarter, the ratio of allowance for loan losses to total loans was 1.26 percent, versus 1.30 percent at September 30, 2011 and 1.29 percent at December 31, 2010. Additionally, the ratio of allowance for loan losses to non-accrual loans, or the coverage ratio, was 204 percent for the 2011 fourth quarter versus 163 percent for the 2011 third quarter and 197 percent for the 2010 fourth quarter.
Conference Call
Signature Bank's management will host a conference call to review results of the 2011 fourth quarter and year-end on Tuesday, January 24, 2012, at 10:00 AM ET. All participants should dial 480-629-9645 at least ten minutes prior to the start of the call.
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 the "Investor Relations" tab, then select "Company News," followed by "Conference Calls," to access the link to the call. To listen to a telephone replay of the conference call, please dial 303-590-3030 and enter reservation identification number 4503216. The replay will be available from approximately 12:00 PM ET on Tuesday, January 24, 2012 through 11:59 PM ET on Friday, January 27, 2012.
About Signature Bank
Signature Bank, member FDIC, is a New York-based full-service commercial bank with 25 private client offices throughout the New York metropolitan area. 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 as well as investment, brokerage, asset management and insurance products and services through its subsidiary, Signature Securities Group Corporation, a licensed broker-dealer, investment adviser and member FINRA/SIPC.
Signature Bank's 25 offices are located: In Manhattan (9) - 261 Madison Avenue; 300 Park Avenue; 71 Broadway; 565 Fifth Avenue; 950 Third Avenue; 200 Park Avenue South; 1020 Madison Avenue; 50 West 57th Street and 2 Penn Plaza. Brooklyn (3) - 26 Court Street; 84 Broadway and 6321 New Utrecht Avenue. Westchester (2) - 1C Quaker Ridge Road, New Rochelle and 360 Hamilton Avenue, White Plains. Long Island (6) - 1225 Franklin Avenue, Garden City; 279 Sunrise Highway, Rockville Centre; 68 South Service Road, Melville; 923 Broadway, Woodmere; 40 Cuttermill Road, Great Neck and 100 Jericho Quadrangle, Jericho. Queens (3) - 36-36 33rd Street, Long Island City; 78-27 37th Avenue, Jackson Heights and 8936 Sutphin Blvd., Jamaica. Bronx (1) - 421 Hunts Point Avenue, Bronx. Staten Island (1) - 2066 Hylan Blvd.
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. 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 team hires, new office openings and business strategy. These statements often include words such as "may," "believe," "expect," "anticipate," "intend," "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. 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 the banking and other financial services regulatory environment and (v) competition for qualified personnel and desirable office locations. Additional risks are described in our quarterly and annual reports filed with the FDIC. You should keep in mind that any forward-looking statements made by Signature Bank speak only as of the date on which they were made. New risks and uncertainties come up from time to time, and we cannot predict these events or how they may affect the Bank. Signature Bank has no duty to, and does not intend to, update or revise the forward-looking statements after the date on which they are made. In light of these risks and uncertainties, you should keep in mind that any forward-looking statement made in this release or elsewhere might not reflect actual results.
FINANCIAL TABLES ATTACHED
SIGNATURE BANK | |||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
Three months ended |
Twelve months ended | ||||||||||||||||||
(dollars in thousands, except per share amounts) | 2011 | 2010 | 2011 | 2010 | |||||||||||||||
INTEREST AND DIVIDEND INCOME | |||||||||||||||||||
Loans held for sale | $ | 962 | 1,309 | 3,772 | 4,020 | ||||||||||||||
Loans, net | 90,908 | 70,992 | 333,395 | 264,898 | |||||||||||||||
Securities available-for-sale | 57,849 | 48,196 | 223,129 | 180,543 | |||||||||||||||
Securities held-to-maturity | 4,690 | 4,146 | 18,403 | 15,254 | |||||||||||||||
Other short-term investments | 386 | 498 | 1,817 | 1,815 | |||||||||||||||
Total interest income | 154,795 | 125,141 | 580,516 | 466,530 | |||||||||||||||
INTEREST EXPENSE | |||||||||||||||||||
Deposits | 22,438 | 21,931 | 91,100 | 87,963 | |||||||||||||||
Federal funds purchased and securities sold under | |||||||||||||||||||
agreements to repurchase | 5,722 | 5,200 | 22,324 | 24,010 | |||||||||||||||
Federal Home Loan Bank advances | 1,368 | 2,104 | 7,305 | 9,698 | |||||||||||||||
Other short-term borrowings | - | - | - | 1 | |||||||||||||||
Total interest expense | 29,528 | 29,235 | 120,729 | 121,672 | |||||||||||||||
Net interest income before provision for loan losses | 125,267 | 95,906 | 459,787 | 344,858 | |||||||||||||||
Provision for loan losses | 14,581 | 13,578 | 51,876 | 46,372 | |||||||||||||||
Net interest income after provision for loan losses | 110,686 | 82,328 | 407,911 | 298,486 | |||||||||||||||
NON-INTEREST INCOME | |||||||||||||||||||
Commissions | 2,186 | 2,503 | 9,058 | 9,063 | |||||||||||||||
Fees and service charges | 3,571 | 3,716 | 15,022 | 14,119 | |||||||||||||||
Net gains on sales of securities | 1,229 | 2,616 | 14,387 | 25,367 | |||||||||||||||
Net gains on sales of loans | 807 | 1,445 | 4,054 | 6,054 | |||||||||||||||
Other-than-temporary impairment losses on securities: | |||||||||||||||||||
Total impairment losses on securities | (621 | ) | (5,279 | ) | (12,272 | ) | (38,613 | ) | |||||||||||
Portion of loss recognized in other comprehensive income (before taxes) | 280 | 4,620 | 10,183 | 24,437 | |||||||||||||||
Net impairment losses on securities recognized in earnings | (341 | ) | (659 | ) | (2,089 | ) | (14,176 | ) | |||||||||||
Net trading income | 109 | 59 | 319 | 124 | |||||||||||||||
Other income | 341 | 327 | 1,287 | 2,097 | |||||||||||||||
Total non-interest income | 7,902 | 10,007 | 42,038 | 42,648 | |||||||||||||||
NON-INTEREST EXPENSE | |||||||||||||||||||
Salaries and benefits | 30,107 | 24,644 | 114,537 | 99,728 | |||||||||||||||
Occupancy and equipment | 4,282 | 3,861 | 16,303 | 14,861 | |||||||||||||||
Other general and administrative | 12,742 | 12,472 | 51,884 | 50,307 | |||||||||||||||
Total non-interest expense | 47,131 | 40,977 | 182,724 | 164,896 | |||||||||||||||
Income before income taxes | 71,457 | 51,358 | 267,225 | 176,238 | |||||||||||||||
Income tax expense | 31,482 | 21,032 | 117,699 | 74,187 | |||||||||||||||
Net income | $ | 39,975 | 30,326 | 149,526 | 102,051 | ||||||||||||||
PER COMMON SHARE DATA | |||||||||||||||||||
Earnings per share - basic | $ | 0.87 | 0.74 | 3.43 | 2.49 | ||||||||||||||
Earnings per share - diluted | $ | 0.85 | 0.72 | 3.37 | 2.46 | ||||||||||||||
SIGNATURE BANK | ||||||||||
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||||||||||
December 31, | December 31, | |||||||||
2011 | 2010 | |||||||||
(dollars in thousands, except per share amounts) | (unaudited) | |||||||||
ASSETS | ||||||||||
Cash and due from banks | $ | 34,083 | 31,558 | |||||||
Short-term investments | 6,071 | 14,741 | ||||||||
Total cash and cash equivalents | 40,154 | 46,299 | ||||||||
Securities available-for-sale (pledged $2,672,093 and $1,553,412 at | ||||||||||
December 31, 2011 and 2010) | 6,512,855 | 5,249,286 | ||||||||
Securities held-to-maturity (fair value $571,980 and $450,315 at | ||||||||||
December 31, 2011 and 2010; pledged $352,865 and $337,453 at | ||||||||||
December 31, 2011 and 2010) | 556,044 | 447,896 | ||||||||
Federal Home Loan Bank stock | 48,152 | 38,439 | ||||||||
Loans held for sale | 392,025 | 382,463 | ||||||||
Loans, net | 6,764,564 | 5,177,268 | ||||||||
Premises and equipment, net | 30,574 | 29,385 | ||||||||
Accrued interest and dividends receivable | 60,533 | 53,211 | ||||||||
Other assets | 261,219 | 248,842 | ||||||||
Total assets | $ | 14,666,120 | 11,673,089 | |||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||
Deposits | ||||||||||
Non-interest-bearing | 3,148,436 | 2,449,968 | ||||||||
Interest-bearing | 8,605,702 | 6,991,259 | ||||||||
Total deposits | 11,754,138 | 9,441,227 | ||||||||
Federal funds purchased and securities sold under agreements | ||||||||||
to repurchase | 750,800 | 658,000 | ||||||||
Federal Home Loan Bank advances | 675,000 | 558,000 | ||||||||
Other short-term borrowings | - | 6,200 | ||||||||
Accrued expenses and other liabilities | 78,066 | 65,115 | ||||||||
Total liabilities | 13,258,004 | 10,728,542 | ||||||||
Shareholders' equity | ||||||||||
Preferred stock, par value $.01 per share; 61,000,000 shares authorized; none | ||||||||||
issued at December 31, 2011 and 2010 | - | - | ||||||||
Common stock, par value $.01 per share; 64,000,000 shares authorized; | ||||||||||
46,181,890 and 41,347,540 shares issued and outstanding | ||||||||||
at December 31, 2011 and 2010 | 462 | 413 | ||||||||
Additional paid-in capital | 954,833 | 689,035 | ||||||||
Retained earnings | 423,032 | 273,511 | ||||||||
Net unrealized gains (losses) on securities available-for-sale, net of tax | 29,789 | (18,412 | ) | |||||||
Total shareholders' equity | 1,408,116 | 944,547 | ||||||||
Total liabilities and shareholders' equity | $ | 14,666,120 | 11,673,089 | |||||||
SIGNATURE BANK | ||||||||||||||||||
FINANCIAL SUMMARY, CAPITAL RATIOS, ASSET QUALITY | ||||||||||||||||||
(unaudited) | ||||||||||||||||||
Three months ended December 31, | Twelve months ended December 31, | |||||||||||||||||
(dollars in thousands, except ratios and per share amounts) | 2011 | 2010 | 2011 | 2010 | ||||||||||||||
PER COMMON SHARE | ||||||||||||||||||
Net income - basic | $ | 0.87 | $ | 0.74 | $ | 3.43 | $ | 2.49 | ||||||||||
Net income - diluted | $ | 0.85 | $ | 0.72 | $ | 3.37 | $ | 2.46 | ||||||||||
Average shares outstanding - basic | 46,179 | 41,129 | 43,622 | 40,923 | ||||||||||||||
Average shares outstanding - diluted | 47,025 | 41,830 | 44,418 | 41,558 | ||||||||||||||
Book value | $ | 30.49 | $ | 22.84 | $ | 30.49 | $ | 22.84 | ||||||||||
SELECTED FINANCIAL DATA | ||||||||||||||||||
Return on average total assets | 1.11% | 1.08% | 1.14% | 0.99% | ||||||||||||||
Return on average shareholders' equity | 11.44% | 12.91% | 12.71% | 11.67% | ||||||||||||||
Efficiency ratio (1) | 35.39% | 38.69% | 36.41% | 42.55% | ||||||||||||||
Efficiency ratio excluding net gains on sales of securities and net impairment losses on securities recognized in earnings (1) | 35.63% | 39.42% | 37.33% | 43.82% | ||||||||||||||
Yield on interest-earning assets | 4.38% | 4.56% | 4.50% | 4.67% | ||||||||||||||
Cost of deposits and borrowings | 0.91% | 1.14% | 1.01% | 1.30% | ||||||||||||||
Net interest margin | 3.55% | 3.50% | 3.57% | 3.45% | ||||||||||||||
(1) | The efficiency ratio is calculated by dividing non-interest expense by the sum of net interest income before provision for loan losses and non-interest income. | |
December 31, 2011 | September 30, 2011 | December 31, 2010 | |||||||||||
CAPITAL RATIOS | |||||||||||||
Tangible common equity (2) | 9.60% | 9.85% | 8.09% | ||||||||||
Tier 1 leverage | 9.67% | 9.84% | 8.62% | ||||||||||
Tier 1 risk-based | 17.08% | 17.28% | 14.21% | ||||||||||
Total risk-based | 18.17% | 18.37% | 15.21% | ||||||||||
ASSET QUALITY | |||||||||||||
Non-accrual loans | $ | 42,218 | $ | 51,134 | $ | 34,134 | |||||||
Allowance for loan losses | $ | 86,162 | $ | 83,526 | $ | 67,396 | |||||||
Allowance for loan losses to non-accrual loans | 204.09% | 163.35% | 197.45% | ||||||||||
Allowance for loan losses to total loans | 1.26% | 1.30% | 1.29% | ||||||||||
Non-accrual loans to total loans | 0.62% | 0.79% | 0.65% | ||||||||||
Quarterly net charge-offs to average loans (annualized) | 0.71% | 0.44% | 1.16% | ||||||||||
(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, 2011 | December 30, 2010 | |||||||||||||||||||
(dollars in thousands) |
Average |
Interest |
Average |
Average |
Interest |
Average | ||||||||||||||
INTEREST-EARNING ASSETS | ||||||||||||||||||||
Short-term investments | $ | 72,716 | 63 | 0.34% | 81,962 | 56 | 0.27% | |||||||||||||
Investment securities | 6,967,068 | 62,862 | 3.61% | 5,479,677 | 52,784 | 3.85% | ||||||||||||||
Commercial loans and commercial mortgages | 6,274,598 | 84,851 | 5.37% | 4,617,878 | 65,181 | 5.60% | ||||||||||||||
Residential mortgages | 176,885 | 1,637 | 3.70% | 187,613 | 2,368 | 5.05% | ||||||||||||||
Consumer loans | 201,735 | 4,420 | 8.69% | 201,410 | 3,443 | 6.78% | ||||||||||||||
Loans held for sale | 324,304 | 962 | 1.18% | 315,413 | 1,309 | 1.65% | ||||||||||||||
Total interest-earning assets | 14,017,306 | 154,795 | 4.38% | 10,883,953 | 125,141 | 4.56% | ||||||||||||||
Non-interest-earning assets | 263,009 | 283,706 | ||||||||||||||||||
Total assets | $ | 14,280,315 | 11,167,659 | |||||||||||||||||
INTEREST-BEARING LIABILITIES | ||||||||||||||||||||
Interest-bearing deposits | ||||||||||||||||||||
NOW and interest-bearing demand | 627,638 | 789 | 0.50% | 764,539 | 880 | 0.46% | ||||||||||||||
Money market | 7,165,845 | 17,743 | 0.98% | 5,284,461 | 16,576 | 1.24% | ||||||||||||||
Time deposits | 906,100 | 3,906 | 1.71% | 931,355 | 4,475 | 1.91% | ||||||||||||||
Non-interest-bearing demand deposits | 2,968,970 | - | - | 2,250,911 | - | - | ||||||||||||||
Total deposits | 11,668,553 | 22,438 | 0.76% | 9,231,266 | 21,931 | 0.94% | ||||||||||||||
Borrowings | 1,166,630 | 7,090 | 2.41% | 935,307 | 7,304 | 3.10% | ||||||||||||||
Total deposits and borrowings | 12,835,183 | 29,528 | 0.91% | 10,166,573 | 29,235 | 1.14% | ||||||||||||||
Other non-interest-bearing liabilities | ||||||||||||||||||||
and shareholders' equity | 1,445,132 | 1,001,086 | ||||||||||||||||||
Total liabilities and shareholders' equity | $ | 14,280,315 | 11,167,659 | |||||||||||||||||
OTHER DATA | ||||||||||||||||||||
Net interest income / interest rate spread | 125,267 | 3.47% | 95,906 | 3.42% | ||||||||||||||||
Net interest margin | 3.55% | 3.50% | ||||||||||||||||||
Ratio of average interest-earning assets | ||||||||||||||||||||
to average interest-bearing liabilities | 109.21% | 107.06% | ||||||||||||||||||
SIGNATURE BANK | ||||||||||||||||||||
NET INTEREST MARGIN ANALYSIS | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Twelve months ended | Twelve months ended | |||||||||||||||||||
December 31, 2011 | December 31, 2010 | |||||||||||||||||||
(dollars in thousands) |
Average |
Interest |
Average |
Average |
Interest |
Average | ||||||||||||||
INTEREST-EARNING ASSETS | ||||||||||||||||||||
Short-term investments | $ | 119,393 | 355 | 0.30% | 194,864 | 519 | 0.27% | |||||||||||||
Investment securities | 6,455,877 | 242,994 | 3.76% | 4,875,482 | 197,093 | 4.04% | ||||||||||||||
Commercial loans and commercial mortgages | 5,674,616 | 310,044 | 5.46% | 4,319,014 | 241,885 | 5.60% | ||||||||||||||
Residential mortgages | 179,987 | 8,326 | 4.63% | 182,995 | 9,336 | 5.10% | ||||||||||||||
Consumer loans | 198,264 | 15,025 | 7.58% | 194,407 | 13,677 | 7.04% | ||||||||||||||
Loans held for sale | 261,647 | 3,772 | 1.44% | 233,508 | 4,020 | 1.72% | ||||||||||||||
Total interest-earning assets | 12,889,784 | 580,516 | 4.50% | 10,000,270 | 466,530 | 4.67% | ||||||||||||||
Non-interest-earning assets | 273,106 | 315,051 | ||||||||||||||||||
Total assets | $ | 13,162,890 | 10,315,321 | |||||||||||||||||
INTEREST-BEARING LIABILITIES | ||||||||||||||||||||
Interest-bearing deposits | ||||||||||||||||||||
NOW and interest-bearing demand | 632,804 | 3,269 | 0.52% | 724,458 | 4,014 | 0.55% | ||||||||||||||
Money market | 6,611,992 | 71,557 | 1.08% | 4,816,609 | 65,279 | 1.36% | ||||||||||||||
Time deposits | 916,992 | 16,274 | 1.77% | 892,186 | 18,670 | 2.09% | ||||||||||||||
Non-interest-bearing demand deposits | 2,702,236 | - | - | 2,020,265 | - | - | ||||||||||||||
Total deposits | 10,864,024 | 91,100 | 0.84% | 8,453,518 | 87,963 | 1.04% | ||||||||||||||
Borrowings | 1,073,430 | 29,629 | 2.76% | 913,199 | 33,709 | 3.69% | ||||||||||||||
Total deposits and borrowings | 11,937,454 | 120,729 | 1.01% | 9,366,717 | 121,672 | 1.30% | ||||||||||||||
Other non-interest-bearing liabilities | ||||||||||||||||||||
and shareholders' equity | 1,225,436 | 948,604 | ||||||||||||||||||
Total liabilities and shareholders' equity | $ | 13,162,890 | 10,315,321 | |||||||||||||||||
OTHER DATA | ||||||||||||||||||||
Net interest income / interest rate spread | 459,787 | 3.49% | 344,858 | 3.37% | ||||||||||||||||
Net interest margin | 3.57% | 3.45% | ||||||||||||||||||
Ratio of average interest-earning assets | ||||||||||||||||||||
to average interest-bearing liabilities | 107.98% | 106.76% | ||||||||||||||||||
SIGNATURE BANK | |||||||||||||
NON-GAAP FINANCIAL MEASURES | |||||||||||||
(unaudited) | |||||||||||||
Management believes that the presentation of the Bank's (i) tangible common equity ratio and (ii) core net interest margin excluding loan prepayment penalty income, which are 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 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 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, | ||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||
Net interest margin (as reported) | 3.55% | 3.50% | 3.57% | 3.45% | |||||||||
Margin contribution from loan prepayment penalty income | (0.09)% | (0.02)% | (0.08)% | (0.02)% | |||||||||
Core net interest margin, excluding loan prepayment penalty income | 3.46% | 3.48% | 3.49% | 3.43% |
Signature Bank
Investor Contact:
Eric R.
Howell, 646-822-1402
Chief Financial Officer
ehowell@signatureny.com
or
Media
Contact:
Susan J. Lewis, 646-822-1825
slewis@signatureny.com