Signature Bank Reports 2022 Fourth Quarter and Year-End Results

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

Net income for the 2022 fourth quarter was $300.8 million, or $4.65 diluted earnings per share, versus $272.0 million, or $4.34 diluted earnings per share, for the 2021 fourth quarter. The increase in net income for the 2022 fourth quarter, versus the comparable quarter last year, is primarily the result of an increase in net interest income, fueled by strong loan and securities growth, as well as higher interest rates. Pre-tax, pre-provision earnings were $450.6 million for the 2022 fourth quarter, representing an increase of $65.2 million, or 16.9 percent, compared with $385.4 million for the 2021 fourth quarter.

Net interest income for the 2022 fourth quarter reached $638.7 million up $102.8 million, or 19.2 percent, when compared with the fourth quarter of 2021. This increase is primarily due to strong loan and securities growth along with higher prevailing market interest rates. Total assets were $110.36 billion at December 31, 2022, decreasing $8.08 billion, or 6.8 percent, from $118.45 billion at December 31, 2021. Average assets for the 2022 fourth quarter remained relatively flat at $112.71 billion versus the comparable period a year ago.

Deposits for the 2022 fourth quarter decreased $14.19 billion, to $88.59 billion, or 13.8 percent, including a non-interest bearing deposit reduction of $5.86 billion, which brings our non-interest bearing mix to 35.6 percent of total deposits at December 31, 2022. Deposits over the last twelve months declined 16.5 percent, or $17.54 billion, when compared with deposits at the end of 2021. The decline was driven by a challenging cryptocurrency environment and our planned reduction in Digital Asset Banking deposits, which were down $12.39 billion, along with our decision not to match the December Fed Funds rate increase. Average total deposits for 2022 were $103.43 billion, growing $18.12 billion, or 21.2 percent, versus average total deposits of $85.31 billion for 2021.

"At the onset of 2022, we set several goals, including the hiring of numerous private client banking teams and hundreds of colleagues to support our geographic expansion; increasing annual earnings to a record level; and, growing both our loan and deposit portfolios substantially. Most of these were met. During the 2022 second quarter, our newest national business line, the Healthcare Banking and Finance team, was launched. Throughout the year, 12 private client banking teams were onboarded, 3 of which in Nevada, marking the Bank's entry into the state. To support this team growth, we added hundreds of colleagues across various operational and support areas. Although we grew loans by a strong $9.43 billion, 2022 presented deposit challenges. While we expected to see continued deposit growth, albeit not at 2020 or 2021 levels, seven Fed rate hikes during 2022 totaling 425 basis points, coupled with quantitative tightening and the proliferation of off balance sheet alternatives, resulted in the most difficult deposit environment we have seen in our 22-year history. The arduous rate environment, along with challenges in the digital asset space, led to deposit declines, which we overcame with little difficulty, given our robust liquidity position. Despite these deposit headwinds, we still earned record net income of $1.34 billion and a record return on common equity of 16.35 percent for the year," said Joseph J. DePaolo, Signature Bank President and Chief Executive Officer.

"Looking ahead, we have plans to further grow our established franchise in 2023 by continuing our effort to hire new banking teams and expanding geographically while remaining mindful of the volatile economic environment. We see growth on the horizon because when Signature Bank lifts out banking teams, it is with top performers who should thrive through our private client banking approach. We look forward to future successes as we stay with our founding and distinguishing single-point-of-contact, team-based banking model, which is the hallmark of our institution," DePaolo concluded.

Scott A. Shay, Chairman of the Board, added: "Over the years, we have continued to reiterate that Signature Bank was built to be well positioned to navigate tough times, and we continue to prove this to be the case. Throughout our 22 years in operation, this institution has faced many economic challenges, including NYC job losses in 2001-2002 as a result of the 9-11 tragedy, which happened only four short months after our founding. This was followed by the Great Financial Crisis of 2008-2010, the COVID-19 shutdown and the list goes on. On the heels of every challenge, Signature Bank emerged stronger, which will be the case this time as well.

With more than half a trillion dollars of deposits leaving the banking system in the second and third quarters of 2022 alone, the market for deposits has turned quite competitive. In that context, Signature Bank consciously decided to exit deposit relationships in certain traditional banking sectors that sought the highest marginal pricing from banks willing to pay maximum interest rates. We believe our service is invaluable, and the overwhelming majority of our clients appreciate that.

We remain very optimistic about the future prospects of Signature Bank. Our increasing the quarterly dividend is a sheer reflection of that confidence as well as our ability to continue to deliver consistent earnings to our shareholders."

Net Interest Income

Net interest income for the 2022 fourth quarter was $638.7 million, an increase of $102.8 million, or 19.2 percent, when compared with the same period last year, primarily due to loans and securities growth along with higher prevailing market interest rates. Average interest-earning assets of $110.13 billion for the 2022 fourth quarter represent a decrease of $1.50 billion, or 1.3 percent, from the 2021 fourth quarter. Due to higher interest rates across all of our asset classes, the yield on interest-earning assets for the 2022 fourth quarter increased 202 basis points to 4.18 percent, compared to the fourth quarter of last year.

Average cost of deposits and average cost of funds for the fourth quarter of 2022 each increased by 172 basis points, to 1.91 percent and 1.99 percent, respectively, versus the comparable period a year ago.

Net interest margin on a tax-equivalent basis for the 2022 fourth quarter was 2.31 percent versus 2.38 percent in the 2022 third quarter, and 1.91 percent reported in the 2021 fourth quarter.

Provision for Credit Losses

The Bank's provision for credit losses for the fourth quarter of 2022 was $42.8 million, an increase of $35.9 million, or over 100 percent, versus the 2021 fourth quarter. The increase in the provision for credit losses for the fourth quarter, compared to the same quarter last year, was predominantly attributable to a deteriorating macroeconomic forecast, particularly related to interest rate, GDP and unemployment forecasts, compared with the same period last year.

Net charge-offs for the 2022 fourth quarter were $18.2 million, or 0.10 percent of average loans, on an annualized basis, versus $10.2 million, or 0.06 percent, for the 2022 third quarter and net charge-offs of $33.7 million, or 0.22 percent, for the 2021 fourth quarter.

Non-Interest Income and Non-Interest Expense

Non-interest income for the 2022 fourth quarter was $45.2 million, up $11.8 million when compared with $33.5 million reported in the 2021 fourth quarter. The increase was primarily due to a $9.2 million increase in fees and service charges and a $4.2 million increase in other income, primarily foreign currency activity. This was partially offset by a decrease of $2.2 million in net gains on sales of loans.

Non-interest expense for the fourth quarter of 2022 was $233.3 million, an increase of $49.4 million, or 26.8 percent, versus $183.9 million reported in the 2021 fourth quarter. The increase was predominantly due to the addition of new private client banking teams, national banking practices, and operational personnel, as well as client activity related expenses that have increased with the growth in our clients and businesses.

The Bank's efficiency ratio was 34.11 percent for the 2022 fourth quarter compared with 32.31 percent for the same period a year ago, and 31.41 percent for the third quarter of 2022.

Loans

Loans, excluding loans held for sale, increased $452.3 million to $74.29 billion in the 2022 fourth quarter, versus $73.84 billion at September 30, 2022. Average loans, excluding loans held for sale, reached $74.46 billion in the 2022 fourth quarter, growing $0.99 billion, or 1.3 percent, from the 2022 third quarter and $13.96 billion, or 23.1 percent, from the fourth quarter of 2021.

At December 31, 2022, non-accrual loans were $184.0 million, representing 0.25 percent of total loans and 0.17 percent of total assets, compared with non-accrual loans of $185.3 million, or 0.25 percent of total loans, at September 30, 2022 and $218.3 million, or 0.34 percent of total loans, at December 31, 2021. At December 31, 2022, the ratio of allowance for credit losses for loans and leases to total loans, was 0.66 percent, versus 0.63 percent at September 30, 2022 and 0.73 percent at December 31, 2021. Additionally, the ratio of allowance for credit losses for loans and leases to non-accrual loans, or the coverage ratio, was 266 percent for the 2022 fourth quarter versus 251 percent for the third quarter of 2022 and 217 percent for the 2021 fourth quarter.

Capital

The Bank's Tier 1 leverage, common equity Tier 1 risk-based, Tier 1 risk-based, and total risk-based capital ratios were approximately 8.79 percent, 10.42 percent, 11.21 percent, and 12.33 percent, respectively, as of December 31, 2022. Each of these ratios is well in excess of regulatory requirements. The Bank's strong risk-based capital ratios reflect the relatively low risk profile of the Bank's balance sheet. The Bank's tangible common equity ratio remains strong at 6.62 percent.

The Bank declared a cash dividend of $0.70 per share, a $0.14 per share increase, payable on or after February 10, 2023 to common stockholders of record at the close of business on January 27, 2023. The Bank also declared a cash dividend of $12.50 per share payable on or after March 30, 2023 to preferred shareholders of record at the close of business on March 17, 2023. In the fourth quarter of 2022, the Bank paid a cash dividend of $0.56 per share to common stockholders of record at the close of business on October 29, 2022. The Bank also paid a cash dividend of $12.50 per share to preferred shareholders of record at the close of business on December 17, 2021.

Conference Call

Signature Bank's management will host a conference call to review results of its 2022 fourth quarter and year ended December 31, 2022 on Tuesday, January 17, 2023 at 8:00 AM ET. All U.S. participants should dial 800-274-8461 and international callers should dial 203-518-9814 at least ten minutes prior to the start of the call and reference conference ID SBNYQ422.

To hear a live web simulcast or to listen to the archived web cast following completion of the call, please visit the Bank's web site at www.signatureny.com, click on "Investor Information," "Quarterly Results/Conference Calls" to access the link to the call.

An earnings slide presentation accompanying the call will be accessible through the live web cast and available on Signature Bank's website here.

To listen to a telephone replay of the conference call, please dial 800-934-4245 or 402-220-1173. The replay will be available from approximately 12:00 PM ET on Tuesday, January 17, 2023 through 11:59 PM ET on Friday, January 20, 2023.

About Signature Bank

Signature Bank, member FDIC, is a New York-based full-service commercial bank with 40 private client offices throughout the metropolitan New York area, as well as those in Connecticut, California, Nevada and North Carolina. Through its single-point-of-contact approach, the Bank's private client banking teams primarily serve the needs of privately owned businesses, their owners and senior managers. The Bank has two wholly owned subsidiaries: Signature Financial, LLC, provides equipment finance and leasing; and, Signature Securities Group Corporation, a licensed broker-dealer, investment adviser and member FINRA/SIPC, offers investment, brokerage, asset management and insurance products and services. Signature Bank was the first FDIC-insured bank to launch a blockchain-based digital payments platform. Signet allows commercial clients to make real-time payments in U.S. dollars, 24/7/365 and was also the first blockchain-based solution to be approved for use by the NYS Department of Financial Services.

Signature Bank placed 19th on S&P Global's list of the largest banks in the U.S., based on deposits.

For more information, please visit https://www.signatureny.com/.

This press release and oral statements made from time to time by our representatives contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. You should not place undue reliance on those statements because they are subject to numerous risks and uncertainties relating to our operations and business environment, all of which are difficult to predict and may be beyond our control. Forward-looking statements include information concerning our expectations regarding future results, interest rates and the interest rate environment, loan and deposit growth, loan performance, operations, new private client teams' hires, new office openings, business strategy and the impact of the COVID-19 pandemic on each of the foregoing and on our business overall. Forward-looking statements often include words such as "may," "believe," "expect," "anticipate," "intend," "potential," "opportunity," "could," "project," "seek," "target," "goal," "should," "will," "would," "plan," "estimate" or other similar expressions. Forward-looking statements may also address our sustainability progress, plans, and goals (including climate change and environmental-related matters and disclosures), which may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future. As you consider forward-looking statements, you should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties and assumptions that could cause actual results to differ materially from those in the forward-looking statements and can change as a result of many possible events or factors, not all of which are known to us or in our control. These factors include but are not limited to: (i) prevailing economic conditions; (ii) changes in interest rates, loan demand, real estate values and competition, any of which can materially affect origination levels and gain on sale results in our business, as well as other aspects of our financial performance, including earnings on interest-bearing assets; (iii) the level of defaults, losses and prepayments on loans made by us, whether held in portfolio or sold in the whole loan secondary markets, which can materially affect charge-off levels and required credit loss reserve levels; (iv) changes in monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System; (v) changes in the banking and other financial services regulatory environment; (vi) our ability to maintain the continuity, integrity, security and safety of our operations and (vii) competition for qualified personnel and desirable office locations. All of these factors are subject to additional uncertainty in the context of the COVID-19 pandemic and the conflict in Ukraine, which are having impacts on all aspects of our operations, the financial services industry and the economy as a whole. Additional risks are described in our quarterly and annual reports filed with the FDIC. Although we believe that these forward-looking statements are based on reasonable assumptions, beliefs and expectations, if a change occurs or our beliefs, assumptions and expectations were incorrect, our business, financial condition, liquidity or results of operations may vary materially from those expressed in our forward-looking statements. You should keep in mind that any forward-looking statements made by Signature Bank speak only as of the date on which they were made. New risks and uncertainties come up from time to time, and we cannot predict these events or how they may affect the Bank. Signature Bank has no duty to, and does not intend to, update or revise the forward-looking statements after the date on which they are made.

FINANCIAL TABLES ATTACHED

SIGNATURE BANK
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
	Three months ended December 31,				Twelve months ended December 31,
(dollars in thousands, except per share amounts)	2022			2021	2022		2021
INTEREST INCOME
Loans and leases	$	902,026		516,287	2,798,945		1,892,787
Loans held for sale		4,586		955	12,983		4,157
Securities available-for-sale		122,051		58,902	401,783		194,825
Securities held-to-maturity		41,359		16,199	115,994		54,949
Other investments		87,217		13,966	220,632		43,663
Total interest income		1,157,239		606,309	3,550,337		2,190,381
INTEREST EXPENSE
Deposits		475,183		46,920	913,563		210,644
Federal funds purchased and securities sold under agreements to repurchase		602		602	2,381		2,401
Federal Home Loan Bank borrowings		36,610		16,699	74,444		67,745
Subordinated debt		6,167		6,167	24,615		29,067
Total interest expense		518,562		70,388	1,015,003		309,857
Net interest income before provision for credit losses		638,677		535,921	2,535,334		1,880,524
Provision for credit losses		42,761		6,877	78,770		50,042
Net interest income after provision for credit losses		595,916		529,044	2,456,564		1,830,482
NON-INTEREST INCOME
Fees and service charges		30,721		21,501	107,206		75,068
Commissions		4,696		4,020	17,694		16,253
Net losses on sales of securities		(84	)	-	(900	)	-
Net gains on sale of loans		2,855		5,065	11,282		19,170
Other income		7,034		2,869	25,755		10,401
Total non-interest income		45,222		33,455	161,037		120,892
NON-INTEREST EXPENSE
Salaries and benefits		131,435		123,104	524,766		458,885
Occupancy and equipment		12,771		12,160	51,265		46,473
Information technology		15,906		13,103	60,791		48,536
FDIC assessment fees		6,742		7,437	30,344		24,543
Professional fees		10,621		8,589	44,077		30,989
Other general and administrative		55,835		19,555	150,954		94,174
Total non-interest expense		233,310		183,948	862,197		703,600
Income before income taxes		407,828		378,551	1,755,404		1,247,774
Income tax expense		106,982		106,560	418,355		329,333
Net income	$	300,846		271,991	1,337,049		918,441
Preferred stock dividends		9,125		9,125	36,500		37,887
Net income available to common shareholders	$	291,721		262,866	1,300,549		880,554
PER COMMON SHARE DATA
Earnings per common share - basic	$	4.67		4.38	20.88		15.20
Earnings per common share - diluted	$	4.65		4.34	20.76		15.03
Dividends per common share	$	0.56		0.56	2.24		2.24

SIGNATURE BANK
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
	December 31,
		2022		2021
(dollars in thousands, except shares and per share amounts)	(unaudited)
ASSETS
Cash and due from banks	$	5,874,527		29,547,574
Short-term investments		80,116		73,097
Total cash and cash equivalents		5,954,643		29,620,671
Securities available-for-sale (amortized cost $21,071,366 at December 31, 2022 and $17,398,906 at December 31, 2021); (zero allowance for credit losses at December 31, 2022 and at December 31, 2021)		18,594,056		17,152,863
Securities held-to-maturity (fair value $7,018,200 at December 31, 2022 and $4,944,777 December 31, 2021); (allowance for credit losses $25 at December 31, 2022 and $56 at December 31, 2021)		7,780,374		4,998,281
Federal Home Loan Bank stock		560,343		166,697
Loans held for sale		586,452		386,765
Loans and leases		74,292,404		64,862,798
Allowance for credit losses for loans and leases		(489,862	)	(474,389	)
Loans and leases, net		73,802,542		64,388,409
Premises and equipment, net		117,229		92,232
Operating lease right-of-use assets		249,269		225,988
Accrued interest and dividends receivable		449,815		306,827
Other assets		2,268,928		1,106,694
Total assets	$	110,363,651		118,445,427
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Non-interest-bearing	$	31,512,400		44,363,215
Interest-bearing		57,077,327		61,769,579
Total deposits		88,589,727		106,132,794
Federal funds purchased and securities sold under agreements to repurchase		150,000		150,000
Federal Home Loan Bank borrowings		11,283,738		2,639,245
Subordinated debt		571,635		570,228
Operating lease liabilities		281,570		254,660
Accrued expenses and other liabilities		1,473,880		857,882
Total liabilities		102,350,550		110,604,809
Shareholders' equity
Preferred stock, par value $.01 per share; 61,000,000 shares authorized; 730,000 shares issued and outstanding at December 31, 2022 and December 31, 2021		7		7
Common stock, par value $.01 per share; 125,000,000 and 64,000.000 shares authorized at December 31, 2022 and December 31, 2021, respectively; 63,064,643 shares issued and 62,928,819 outstanding at December 31, 2022;60,729,674 shares issued and 60,631,944 outstanding at December 31, 2021		629		606
Additional paid-in capital		4,551,819		3,763,810
Retained earnings		5,457,886		4,298,527
Accumulated other comprehensive loss		(1,997,240	)	(222,332	)
Total shareholders' equity		8,013,101		7,840,618
Total liabilities and shareholders' equity	$	110,363,651		118,445,427

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)	2022				2021				2022				2021
PER COMMON SHARE
Earnings per common share - basic	$	4.67			$	4.38			$	20.88			$	15.20
Earnings per common share - diluted	$	4.65			$	4.34			$	20.76			$	15.03
Weighted average common shares outstanding - basic		62,440				60,003				62,250				57,871
Weighted average common shares outstanding - diluted		62,627				60,563				62,605				58,508
Book value per common share	$	116.08			$	117.63			$	116.08			$	117.63
SELECTED FINANCIAL DATA
Return on average total assets		1.06	%			0.96	%			1.15	%			0.95	%
Return on average common shareholders' equity		16.35	%			14.76	%			17.55	%			13.81	%
Efficiency ratio (1)		34.11	%			32.31	%			31.98	%			35.16	%
Yield on interest-earning assets		4.17	%			2.15	%			3.10	%			2.28	%
Yield on interest-earning assets, tax-equivalent basis (1)(2)		4.18	%			2.16	%			3.11	%			2.29	%
Cost of deposits and borrowings		1.99	%			0.27	%			0.95	%			0.35	%
Net interest margin		2.30	%			1.90	%			2.22	%			1.96	%
Net interest margin, tax-equivalent basis (2)(3)		2.31	%			1.91	%			2.23	%			1.97	%

(1)		See "Non-GAAP Financial Measures" for related calculation.
(2)		Based on the 21 percent U.S. federal statutory tax rate for the periods presented. The tax-equivalent basis is considered a non-GAAP financial measure and should be considered in addition to, not as a substitute for or superior to, financial measures determined in accordance with GAAP. This ratio is a metric used by management to evaluate the impact of tax-exempt assets on the Bank's yield on interest-earning assets and net interest margin.
(3)		See "Net Interest Margin Analysis" for related calculation.

	December 31, 2022				September 30, 2022				December 31, 2021
CAPITAL RATIOS
Tangible common equity (4)		6.62	%			6.10	%			6.02	%
Tier 1 leverage (5)		8.79	%			8.47	%			7.27	%
Common equity Tier 1 risk-based (5)		10.42	%			10.11	%			9.60	%
Tier 1 risk-based (5)		11.21	%			10.90	%			10.51	%
Total risk-based (5)		12.33	%			11.99	%			11.76	%
ASSET QUALITY
Non-accrual loans	$	183,961			$	185,300			$	218,295
Allowance for credit losses for loans and leases (ACLLL)	$	489,862			$	464,858			$	474,389
ACLLL to non-accrual loans		266.29	%			250.87	%			217.32	%
ACLLL to total loans		0.66	%			0.63	%			0.73	%
Non-accrual loans to total loans		0.25	%			0.25	%			0.34	%
Quarterly net charge-offs to average loans, annualized		0.10	%			0.06	%			0.22	%

(4)		We define tangible common equity as the ratio of total tangible common equity to total tangible assets (the "TCE ratio"). Tangible common equity is considered to be a non-GAAP financial measure and should be considered in addition to, not as a substitute for or superior to, financial measures determined in accordance with GAAP. The TCE ratio is a metric used by management to evaluate the adequacy of our capital levels. In addition to tangible common equity, management uses other metrics, such as Tier 1 capital related ratios, to evaluate capital levels.
(5)		December 31, 2022 ratios are preliminary.

SIGNATURE BANK
NET INTEREST MARGIN ANALYSIS
(unaudited)
		Three Months Ended December 31, 2022										Three Months Ended December 31, 2021
(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		$	8,565,395			82,230			3.84	%		30,474,298		11,831			0.15	%
Investment securities			26,630,543			168,397			2.53	%		20,297,693		77,236			1.52	%
Commercial loans, mortgages and leases			74,347,595			902,889			4.82	%		60,358,789		516,861			3.40	%
Residential mortgages and consumer loans			108,490			1,381			5.05	%		139,935		1,126			3.19	%
Loans held for sale			478,238			4,586			3.80	%		356,256		955			1.06	%
Total interest-earning assets (1)			110,130,261			1,159,483			4.18	%		111,626,971		608,009			2.16	%
Non-interest-earning assets			2,580,676									1,101,262
Total assets		$	112,710,937									112,728,233
INTEREST-BEARING LIABILITIES
Interest-bearing deposits
NOW and interest-bearing demand		$	22,799,246			181,836			3.16	%		18,694,556		15,862			0.34	%
Money market			36,238,210			263,286			2.88	%		41,433,741		28,030			0.27	%
Time deposits			3,719,121			30,061			3.21	%		1,583,242		3,028			0.76	%
Non-interest-bearing demand deposits			35,855,867			-			-	%		38,876,207		-			-	%
Total deposits			98,612,444			475,183			1.91	%		100,587,746		46,920			0.19	%
Subordinated debt			571,402			6,167			4.32	%		569,998		6,167			4.33	%
Other borrowings			3,968,074			37,212			3.72	%		2,805,278		17,301			2.45	%
Total deposits and borrowings			103,151,920			518,562			1.99	%		103,963,022		70,388			0.27	%
Other non-interest-bearing liabilities			1,772,228									989,002
Preferred equity			708,173									708,173
Common equity			7,078,616									7,068,036
Total liabilities and shareholders' equity		$	112,710,937									112,728,233
OTHER DATA
Net interest income / interest rate spread (1)					$	640,921			2.19	%				537,621			1.89	%
Tax-equivalent adjustment						(2,244	)							(1,700	)
Net interest income, as reported					$	638,677								535,921
Net interest margin									2.30	%							1.90	%
Tax-equivalent effect									0.01	%							0.01	%
Net interest margin on a tax-equivalent basis (1)									2.31	%							1.91	%
Ratio of average interest-earning assets to average interest-bearing liabilities									106.77	%							107.37	%

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

SIGNATURE BANK
NET INTEREST MARGIN ANALYSIS
(unaudited)
		Twelve Months Ended December 31, 2022										Twelve Months Ended December 31, 2021
(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		$	17,402,433			208,906			1.18	%		25,167,623		35,009			0.14	%
Investment securities			25,950,867			529,503			2.04	%		15,908,371		258,428			1.62	%
Commercial loans, mortgages and leases			70,294,647			2,802,119			3.99	%		54,332,257		1,894,745			3.49	%
Residential mortgages and consumer loans			120,493			4,577			3.80	%		148,137		4,933			3.33	%
Loans held for sale			503,598			12,983			2.58	%		306,202		4,157			1.36	%
Total interest-earning assets (1)			114,272,038			3,558,088			3.11	%		95,862,590		2,197,272			2.29	%
Non-interest-earning assets			1,892,462									941,161
Total assets		$	116,164,500									96,803,751
INTEREST-BEARING LIABILITIES
Interest-bearing deposits
NOW and interest-bearing demand		$	21,556,982			381,228			1.77	%		18,296,459		73,622			0.40	%
Money market			39,438,596			489,121			1.24	%		36,492,490		121,416			0.33	%
Time deposits			2,146,411			43,214			2.01	%		1,759,229		15,606			0.89	%
Non-interest-bearing demand deposits			40,290,382			-			-	%		28,764,155		-			-	%
Total deposits			103,432,371			913,563			0.88	%		85,312,333		210,644			0.25	%
Subordinated debt			570,877			24,615			4.31	%		646,359		29,067			4.50	%
Other borrowings			2,617,723			76,825			2.93	%		2,879,793		70,146			2.44	%
Total deposits and borrowings			106,620,971			1,015,003			0.95	%		88,838,485		309,857			0.35	%
Other non-interest-bearing liabilities			1,425,841									878,876
Preferred equity			708,173									708,109
Common equity			7,409,515									6,378,281
Total liabilities and shareholders' equity		$	116,164,500									96,803,751
OTHER DATA
Net interest income / interest rate spread (1)					$	2,543,085			2.16	%				1,887,415			1.94	%
Tax-equivalent adjustment						(7,751	)							(6,891	)
Net interest income, as reported					$	2,535,334								1,880,524
Net interest margin									2.22	%							1.96	%
Tax-equivalent effect									0.01	%							0.01	%
Net interest margin on a tax-equivalent basis (1)									2.23	%							1.97	%
Ratio of average interest-earning assets to average interest-bearing liabilities									107.18	%							107.91	%

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

SIGNATURE BANK
NON-GAAP FINANCIAL MEASURES
(unaudited)

This press release contains both financial measures based on GAAP and non-GAAP financial measures where management believes that the presentation of certain non-GAAP financial measures assists investors when comparing results period-to-period in a more consistent manner and provides a better measure of Signature Bank's results. These non-GAAP measures include the Bank's (i) tangible common equity ratio, (ii) efficiency ratio, (iii) yield on interest-earning assets, tax-equivalent basis, (iv) net interest margin, tax-equivalent basis, and (v) pre-tax, pre-provision earnings. These non-GAAP measures should not be considered a substitute for GAAP-basis measures and results. We strongly encourage investors to review our consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.

The following table presents the tangible common equity ratio calculation:

(dollars in thousands)		December 31, 2022				September 30, 2022			December 31, 2021
Consolidated total shareholders' equity		$	8,013,101			7,690,523			7,840,618
Less: Preferred equity			708,173			708,173			708,173
Common shareholders' equity		$	7,304,928			6,982,350			7,132,445
Less: Intangible assets			398			2,025			3,977
Tangible common shareholders' equity (TCE)		$	7,304,530			6,980,325			7,128,468
Consolidated total assets		$	110,363,651			114,468,746			118,445,427
Less: Intangible assets			398			2,025			3,977
Consolidated tangible total assets (TTA)		$	110,363,253			114,466,721			118,441,450
Tangible common equity ratio (TCE/TTA)			6.62	%		6.10	%		6.02	%

The following table presents the efficiency ratio calculation:

		Three months ended December 31,								Twelve months ended December 31,
(dollars in thousands)			2022			2021				2022			2021
Non-interest expense (NIE)		$	233,310			183,948				862,197			703,600
Net interest income before provision for credit losses			638,677			535,921				2,535,334			1,880,524
Other non-interest income			45,222			33,455				161,037			120,892
Total income (TI)		$	683,899			569,376				2,696,371			2,001,416
Efficiency ratio (NIE/TI)			34.11	%		32.31	%			31.98	%		35.16	%

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

		Three months ended December 31,							Twelve months ended December 31,
(dollars in thousands)			2022			2021			2022			2021
Interest income (as reported)		$	1,157,239			606,309			3,550,337			2,190,381
Tax-equivalent adjustment			2,244			1,700			7,751			6,891
Interest income, tax-equivalent basis		$	1,159,483			608,009			3,558,088			2,197,272
Interest-earnings assets		$	110,130,261			111,626,971			114,272,038			95,862,590
Yield on interest-earning assets			4.17	%		2.15	%		3.10	%		2.28	%
Tax-equivalent effect			0.01	%		0.01	%		0.01	%		0.01	%
Yield on interest-earning assets, tax-equivalent basis			4.18	%		2.16	%		3.11	%		2.29	%

The following table reconciles net interest margin (as reported) to net interest margin on a tax-equivalent basis:

		Three months ended December 31,				Three months ended September 30,				Twelve months ended December 31,
(dollars in thousands)		2022		2021		2022		2021		2022		2021
Net interest margin (as reported)		2.30%		1.90%		2.37%		1.88%		2.22%		1.96%
Tax-equivalent adjustment		0.01%		0.01%		0.01%		0.00%		0.01%		0.01%
Net interest margin, tax-equivalent basis		2.31%		1.91%		2.38%		1.88%		2.23%		1.97%

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

		Three months ended December 31,					Twelve months ended December 31,
(dollars in thousands)		2022			2021		2022		2021
Net income (as reported)		$	300,846		271,991		1,337,049		918,441
Income tax expense			106,982		106,560		418,355		329,333
Provision for credit losses			42,761		6,877		78,770		50,042
Pre-tax, pre-provision earnings		$	450,589		385,428		1,834,174		1,297,816

Contacts

Investor Contact:
Brian Wyremski, Senior Vice President and Director of Investor Relations & Corporate Development
646-822-1479, [e-mail]

Media Contact:
Susan Turkell Lewis, 646-822-1825,
[e-mail]