Signature Bank Reports 2022 First Quarter Results

• Net Income for the 2022 First Quarter Increased $148.0 Million to a Record $338.5 Million, or $5.30 Diluted Earnings Per Share, Versus $190.5 Million, or $3.24 Diluted Earnings Per Share, Reported in the 2021 First Quarter. Pre-Tax, Pre-Provision Earnings for the 2022 First Quarter Were a Record $414.6 Million, an Increase of $141.8 Million, or 52.0 Percent, Compared with $272.8 Million for the 2021 First Quarter

• Total Deposits in the First Quarter Grew $3.02 Billion, to $109.16 Billion, While Average Deposits Increased $5.28 Billion. Total Deposits for the Prior Twelve Months Have Grown $35.18 Billion, or 47.6 Percent

• For the 2022 First Quarter, Loans Increased $1.54 Billion, or 2.4 Percent, to $66.40 Billion. Core Loans (Excluding Paycheck Protection Program Loans) for the Quarter Increased $1.90 Billion. Since the End of the 2021 First Quarter, Core Loans Have Increased 36.6 Percent, or $17.65 Billion

• Total Securities in the First Quarter Grew a Record $4.09 Billion, to $26.24 Billion. Total Securities for the Prior Twelve Months Have Grown $13.01 Billion, or 98.3 Percent

• For the 2022 First Quarter, Non-Accrual Loans Decreased $40.5 Million to $177.8 Million, or 0.27 Percent of Total Loans, at March 31, 2022, Versus $218.3 Million, or 0.34 Percent, at the End of the 2021 Fourth Quarter and $133.7 Million, or 0.26 Percent, at the End of the 2021 First Quarter

• Net Interest Margin on a Tax-Equivalent Basis was 1.99 Percent, Compared With 1.91 Percent for the 2021 Fourth Quarter and 2.10 Percent for the 2021 First Quarter. Significant Excess Cash Balances From Continued Strong Deposit Flows Negatively Impacted Net Interest Margin by 36 Basis Points

• Tier 1 Leverage, Common Equity Tier 1 Risk-Based, Tier 1 Risk-Based, and Total Risk-Based Capital Ratios were 7.74 Percent, 10.49 Percent, 11.37 Percent, and 12.58 Percent, Respectively, at March 31, 2022. Signature Bank Remains Significantly Above FDIC “Well Capitalized” Standards. Tangible Common Equity Ratio was 6.12 Percent

• During the 2022 First Quarter, the Bank Raised $731.7 Million in a Public Offering of Common Stock

• The Bank Declared a Cash Dividend of $0.56 Per Share, Payable on or After May 13, 2022 to Common Shareholders of Record at the Close of Business on April 29, 2022. The Bank Also Declared a Cash Dividend of $12.50 Per Share Payable on or After June 30, 2022 to Preferred Shareholders of Record at the Close of Business on June 17, 2022

• Since the End of the 2022 First Quarter, the Bank On-boarded One Private Client Banking Team in New York, Three Teams in Central California, and Two Teams in Reno, Nevada, Which Marks the Bank's Entry into the State

Signature Bank (Nasdaq: SBNY), a New York-based full-service commercial bank, today announced results for its first quarter ended March 31, 2022.

Net income for the 2022 first quarter was $338.5 million, or $5.30 diluted earnings per share, versus $190.5 million, or $3.24 diluted earnings per share, for the 2021 first quarter. The increase in net income of $148.0 million for the 2022 first quarter, versus the comparable quarter last year, is primarily the result of an increase in net interest income, fueled by strong average deposit, securities and loan growth, as well as a higher provision for credit losses booked in the first quarter of 2021, which was predominantly due to the effects of COVID-19 on the U.S. economy. Pre-tax, pre-provision earnings were $414.6 million, representing an increase of $141.8 million, or 52.0 percent, compared with $272.8 million for the 2021 first quarter.

Net interest income for the 2022 first quarter rose $167.1 million, or 41.1 percent to $573.6 million, when compared with the first quarter of 2021. This increase is primarily due to growth in average interest-earning assets. Total assets reached $121.85 billion at March 31, 2022, expanding $36.47 billion, or 42.7 percent, from $85.38 billion at March 31, 2021. Average assets for the 2022 first quarter reached $118.58 billion, an increase of $38.86 billion, or 48.7 percent, versus the comparable period a year ago.

Deposits for the 2022 first quarter increased $3.02 billion, or 2.8 percent, to $109.16 billion, including non-interest bearing deposit growth of $2.36 billion. Non-interest bearing deposits now represent 42.8 percent of total deposits. Overall deposit growth for the last twelve months was 47.6 percent, or $35.18 billion, when compared with deposits at March 31, 2021. Average deposits for the 2022 first quarter reached $105.87 billion, an increase of $5.28 billion when compared with the prior quarter.

"Signature Bank continues to prove its earnings power as we drive both profitability and efficiency at a rapid pace, while expanding the balance sheet and maintaining a robust risk management discipline. This is exhibited by the increase in net income of 77.7 percent year-over-year along with continued improvement in our efficiency ratio, both of which were propelled by a 38.4 percent revenue increase. We are just beginning to realize the benefits of our transformed, asset sensitive balance sheet. We expect this will further accelerate our revenue growth amid a higher rate environment. Additionally, we have remained patient and purposeful in the prudent deployment of excess cash by not chasing rate, which is proving to be advantageous,” explained Signature Bank President and Chief Executive Officer Joseph J. DePaolo.

“Our successes to date stem from the business plan we created more than 20 years ago, which continues to thrive. The most critical component of our strategy has been selecting the right colleagues when attracting teams and cultivating new businesses. Since our founding, we consistently applied precision and exercised discipline in our approach and cherry-picked the very best bankers available in our marketplace. To this end, we already successfully on-boarded six teams since the end of the first quarter, and are seeing a robust pipeline for additional teams. Furthermore, we significantly enhanced our Signet offering with the introduction of wire API and look forward to the launching of a new commercial lending vertical that will soon follow,” DePaolo concluded.

Scott A. Shay, Chairman of the Board, added: “During this time of many rapid inflection points throughout our economy, from supply chain disruptions, labor shortages, interest rates and dramatic changes in regulatory policies to the Ukraine war, clients appreciate more than ever the trusted banker they have in Signature Bank. Signature Bank differentiates itself by allowing bankers to spend the time helping our clients better navigate these uncertain times. While no one welcomes such tumultuous times, when they do occur, our single-point-of-contact model truly shines for our clients."

“Concurrently, we remain focused on helping clients with their pressing short-term matters and highly attentive to long-term changes in the financial service landscape. To this end, our expanded Signet™ capabilities permitting seamless wire transfer access demonstrates our nimbleness. The payment transfer market is constantly evolving, and we intend to continue to lead the way, just as we did when we were the first Bank to introduce a real-time blockchain-based payments platform,” Shay concluded.

Net Interest Income

Net interest income for the 2022 first quarter was $573.6 million, up $167.1 million, or 41.1 percent, when compared with the same period last year, primarily due to growth in average interest-earning assets. Average interest-earning assets of $117.45 billion for the 2022 first quarter represent an increase of $38.71 billion, or 49.2 percent, from the 2021 first quarter. Due to the current low interest rate environment, the yield on interest-earning assets for the 2022 first quarter fell 32 basis points to 2.22 percent, compared with the first quarter of last year.

Average cost of deposits and average cost of funds for the first quarter of 2022 decreased by 16 and 22 basis points, to 0.18 percent and 0.25 percent, respectively, versus the comparable period a year ago.

Net interest margin on a tax-equivalent basis for the 2022 first quarter was 1.99 percent versus 2.10 percent reported in the 2021 first quarter and 1.91 percent in the 2021 fourth quarter. The 2022 first quarter net interest margin was negatively affected by 36 basis points due to significant excess cash balances driven by continued strong deposit growth.

Provision for Credit Losses

The Bank’s provision for credit losses for the first quarter of 2022 was $2.7 million, a decrease of $28.2 million, or 91.3 percent, versus the 2021 first quarter. The decrease in the Bank’s provision for credit losses for the 2022 first quarter was predominantly attributable to improved macroeconomic conditions compared with the same period last year.

Net charge-offs for the 2022 first quarter were $17.8 million, or 0.11 percent of average loans, on an annualized basis, versus $33.7 million, or 0.22 percent, for the 2021 fourth quarter and net charge-offs of $17.9 million, or 0.15 percent, for the 2021 first quarter.

Non-Interest Income and Non-Interest Expense

Non-interest income for the 2022 first quarter was $34.4 million, up $1.7 million from $32.7 million reported in the first quarter of last year. The increase was primarily driven by a $5.8 million increase in fees and service charges, partially offset by a $4.0 million decrease in net gains on sales of securities and loans.

Non-interest expense for the first quarter of 2022 was $193.4 million, an increase of $27.0 million, or 16.2 percent, versus $166.4 million reported in the 2021 first quarter. The increase was predominantly due to an increase of $21.0 million in salaries and benefits from the significant hiring of private client banking teams and operational support to meet the Bank's growing needs.

The Bank’s efficiency ratio improved to 31.8 percent for the 2022 first quarter compared with 37.9 percent for the same period a year ago, and 32.3 percent for the fourth quarter of 2021.

Income Taxes

Income tax expense for the first quarter of 2022 included one-time tax benefits totaling $41.6 million, mostly related to the vesting of employee stock based compensation awards at a price significantly higher than the fair market value at the time of grant. These tax benefits lowered the Bank's effective tax rate for the first quarter of 2022 to 17.8 percent compared with 21.2 percent for the same period a year ago, and 28.1 percent for the fourth quarter of 2021.

Loans

Loans, excluding loans held for sale, expanded $1.54 billion, or 2.4 percent, during the 2022 first quarter to $66.40 billion, versus $64.86 billion at December 31, 2021. Core loans (excluding Paycheck Protection Program loans) increased $1.90 billion, or 3.0 percent, during the 2022 first quarter to $65.93 billion, versus $64.03 billion at December 31, 2021. Average loans, excluding loans held for sale, reached $65.10 billion in the 2022 first quarter, growing $4.60 billion, or 7.6 percent, from the 2021 fourth quarter and $15.74 billion, or 31.9 percent, from the first quarter of 2021.

At March 31, 2022, non-accrual loans were $177.8 million, representing 0.27 percent of total loans and 0.15 percent of total assets, compared with non-accrual loans of $218.3 million, or 0.34 percent of total loans, at December 31, 2021 and $133.7 million, or 0.26 percent of total loans, at March 31, 2021. At March 31, 2022, the ratio of allowance for credit losses for loans and leases to total loans was 0.69 percent, versus 0.73 percent at December 31, 2021 and 1.02 percent at March 31, 2021. Additionally, the ratio of allowance for credit losses for loans and leases to non-accrual loans, or the coverage ratio, was 259 percent for the 2022 first quarter versus 217 percent for the fourth quarter of 2021 and 390 percent for the 2021 first 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 7.74 percent, 10.49 percent, 11.37 percent, and 12.58 percent, respectively, as of March 31, 2022. 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 6.12 percent. The Bank defines tangible common equity ratio as the ratio of tangible common equity to adjusted tangible assets and calculates this ratio by dividing total consolidated common shareholders’ equity by consolidated total assets. During the quarter, the Bank raised $731.7 million in a public offering of common equity.

The Bank declared a cash dividend of $0.56 per share, payable on or after May 13, 2022 to common stockholders of record at the close of business on April 29, 2022. The Bank also declared a cash dividend of $12.50 per share payable on or after June 30, 2022 to preferred stockholders of record at the close of business on June 17, 2022. In the first quarter of 2022, the Bank paid a cash dividend of $0.56 per share to common shareholders of record at the close of business on January 28, 2022. The Bank also paid a cash dividend of $12.50 per share to preferred shareholders of record at the close of business on March 18, 2022.

Conference Call

Signature Bank’s management will host a conference call to review results of the 2022 first quarter on Tuesday, April 19, 2022 at 9:00 AM ET. All participants should dial 866-342-8591 and international callers should dial 203-518-9713 at least ten minutes prior to the start of the call and reference conference ID SBNYQ122.

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

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

To listen to a telephone replay of the conference call, please dial 800-723-1517 or 402-220-2659 and enter conference ID SBNYQ122. The replay will be available from approximately 12:00 PM ET on Tuesday, April 19, 2022 through 11:59 PM ET on Friday, April 22, 2022.

About Signature Bank

Signature Bank, member FDIC, is a New York-based full-service commercial bank with 38 private client offices throughout the metropolitan New York area, as well as those in Connecticut, California and North Carolina. Through its single-point-of-contact approach, the Bank’s private client banking teams primarily serve the needs of privately owned businesses, their owners and senior managers. The Bank has two wholly owned subsidiaries: Signature Financial, LLC, provides equipment finance and leasing: Signature Securities Group Corporation, a licensed broker-dealer, investment adviser and member FINRA/SIPC, offers investment, brokerage, asset management and insurance products and services. Signature Bank was the first FDIC-insured bank to launch a blockchain-based digital payments platform. Signet™ allows commercial clients to make real-time payments in U.S. dollars, 24/7/365 and was also the first solution to be approved for use by the NYS Department of Financial Services.

Signature Bank placed 19^th 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. 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

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, (v) pre-tax, pre-provision earnings, and (vi) loans and leases to core loans (excluding Paycheck Protection Program loans). These non-GAAP measures should not be considered a substitute for GAAP-basis measures and results. We strongly encourage investors to review our consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.

The following table presents the tangible common equity ratio calculation:

The following table presents the efficiency ratio calculation:

SIGNATURE BANK

NON-GAAP FINANCIAL MEASURES

(unaudited)

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

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

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

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

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