Net Income for the 2021 Second Quarter Was a Record $214.5 Million, or $3.57 Diluted Earnings Per Share, Versus $117.2 Million, or $2.21 Diluted Earnings Per Share, Reported in the 2020 Second Quarter

Pre-Tax, Pre-Provision Earnings for the 2021 Second Quarter Was a Record $308.6 Million, an Increase of $60.6 Million, or 24.5 Percent, Compared with $247.9 Million for the 2020 Second Quarter

Total Deposits in the Second Quarter Grew a Record $11.59 Billion to $85.56 Billion, While Average Deposits Increased a Record $11.93 Billion. Total Deposits for the Prior Twelve Months Have Grown $35.33 Billion, or 70.3 Percent

For the 2021 Second Quarter, Loans Increased $3.56 Billion, or 7.0 Percent, to $54.51 Billion. Core Loans (Excluding Paycheck Protection Program Loans) for the Quarter Increased a Record $3.92 Billion. Since the End of the 2020 Second Quarter, Core Loans Have Increased 20.7 Percent, or $8.96 Billion

Non-Accrual Loans Were $136.1 Million, or 0.25 Percent of Total Loans, at June 30, 2021, Versus $133.7 Million, or 0.26 Percent, at the End of the 2021 First Quarter and $46.9 Million, or 0.10 Percent, at the End of the 2020 Second Quarter

COVID-19 Related Non-Payment Deferrals Reduced by $1.0 Billion to $308.7 Million, or 76.5 Percent as of July 15, 2021 Compared to $1.31 Billion at December 31, 2020

Significant Excess Cash Balances From Continued Strong Deposit Flows Negatively Impacted Net Interest Margin by 55 Basis Points. Net Interest Margin on a Tax-Equivalent Basis was 2.02 Percent, Compared With 2.10 Percent for the 2021 First Quarter and 2.77 Percent for the 2020 Second Quarter

Tier 1 Leverage, Common Equity Tier 1 Risk-Based, Tier 1 Risk-Based, and Total Risk-Based Capital Ratios were 7.86 Percent, 10.03 Percent, 11.15 Percent, and 12.72 Percent, Respectively, at June 30, 2021. Signature Bank Remains Significantly Above FDIC "Well Capitalized" Standards. Tangible Common Equity Ratio was 6.31 Percent

The Bank Declared a Cash Dividend of $0.56 Per Share, Payable on or After August 13, 2021 to Common Shareholders of Record at the Close of Business on July 30, 2021. The Bank Also Declared a Cash Dividend of $12.50 Per Share Payable on or After September 30, 2021 to Preferred Shareholders of Record at the Close of Business on September 17, 2021

In the 2021 Second Quarter, the Bank On-boarded Two Private Client Banking Teams on the West Coast as well as the SBA Lending Team

Signature Bank (NASDAQ:SBNY), a New York-based full-service commercial bank, today announced results for its second quarter ended June 30, 2021.

Net income for the 2021 second quarter was $214.5 million, or $3.57 diluted earnings per share, versus $117.2 million, or $2.21 diluted earnings per share, for the 2020 second quarter. The increase in net income for the 2021 second quarter, versus the comparable quarter last year, is primarily the result of an increase in net interest income, fueled by strong average deposit and loan growth, as well as the absence of a higher provision for credit losses booked in the second quarter of 2020, which was predominantly due to the effects of COVID-19 on the U.S. economy. Pre-tax, pre-provision earnings were $308.6 million, representing an increase of $60.6 million, or 24.5 percent, compared with $247.9 million for the 2020 second quarter.

Net interest income for the 2021 second quarter reached $457.2 million, up $70.1 million, or 18.1 percent, when compared with the 2020 second quarter. This increase is primarily due to growth in average interest-earning assets. Total assets reached $96.89 billion at June 30, 2021, an increase of $36.54 billion, or 60.5 percent, from $60.35 billion at June 30, 2020. Average assets for the 2021 second quarter reached $91.86 billion, an increase of $34.19 billion, or 59.3 percent, compared with the 2020 second quarter.

Deposits for the 2021 second quarter increased $11.59 billion to $85.56 billion at June 30, 2021. When compared with deposits at June 30, 2020, overall deposit growth for the last twelve months was 70.3 percent, or $35.33 billion. Average deposits for the 2021 second quarter reached $80.74 billion, a record increase of $11.93 billion.

"The success of Signature Bank's single-point-of-contact service model has resulted in yet another quarter of significant organic growth. Since our founding more than 20 years ago, the Bank has grown dramatically and transformed organically, particularly during the past three years. During this time, we set and achieved specific goals of becoming asset sensitive, increasing both credit and geographic diversification and continuing to grow core deposits. As a result, we shifted to asset sensitive from liability sensitive, with 38 percent of our loan portfolio now variable rate. We reduced our CRE concentration from nearly 600 percent to 345 percent of capital. Our loan to deposit ratio -- which peaked at 104 percent -- has moved to a low 64 percent. Additionally, we entered new markets through the hiring of veteran bankers for our West Coast private client offices while continuing to increase deposits across our New York operations. The speed at which this institution achieved all of these objectives organically is extraordinary within the banking industry. It clearly demonstrates the power of our founding single-point-of-contact entrepreneurial model," explained Signature Bank President and Chief Executive Officer Joseph J. DePaolo.

"Throughout the second quarter of 2021, we saw the same strong growth trends we witnessed during the past several quarters. Our record deposit growth of $11.6 billion emanates from all our business units and teams within the institution, demonstrating the broad-based strength of our franchise. Record loan growth of $3.6 billion was driven by our well-established Fund Banking Division, and we put more cash to use than ever before through a record $2.7 billion in securities purchased in our investment portfolio. Our strong growth profile, coupled with the expansion of fee income and contained expenses, led to the third consecutive quarter of both record net income as well as a return on common equity ratio of more than 13 percent. We continue to focus on the pure organic growth that has made this institution successful," DePaolo concluded.

Scott A. Shay, Chairman of the Board, added: "Signature Bank continues to fire on all cylinders as we stay true to our core principles of providing relationship-based, client-centric service and sleep-at-night safety. While our deposit growth has been truly extraordinary, we remain prudent in the deployment of new funds. We believe the value of building long-term client relationships is most important to sustaining our growth, which is what we encourage our long-term investors to remember. It is always a distinct pleasure to hear so many clients compliment the service of individual colleagues or banking groups for providing positive, prompt and diligent service. This has been our core differentiator, since inception and all along the way, as we built this enterprise organically.

It is also prudent for Signature Bank to maintain its focus on leading and experimenting with the newest technologies in a disciplined yet vigorous manner. In an era of rapid technological change in the financial and payments world, we are on the cutting-edge of adoption and expansion of our digital assets business, especially since the launch of Signet™, our blockchain-based payments platform.

We have always been – and continue to be – willing to do things differently and embrace change, which has not gone unnoticed by our clients, colleagues or investors."

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 7.86 percent, 10.03 percent, 11.15 percent, and 12.72 percent, respectively, as of June 30, 2021. 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. Given our robust total risk-based ratio, we redeemed $260.0 million of subordinated debt at a rate of 5.3 percent on April 19, 2021. The Bank's tangible common equity ratio remains strong at 6.31 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.

The Bank declared a cash dividend of $0.56 per share, payable on or after August 13, 2021 to common stockholders of record at the close of business on July 30, 2021. The Bank also declared a cash dividend of $12.50 per share payable on September 30, 2021 to preferred shareholders of record at the close of business on September 17, 2021. In the second quarter of 2021, the Bank paid a cash dividend of $0.56 per share to common stockholders of record at the close of business on May 3, 2021. The Bank also paid a cash dividend of $12.50 per share to preferred shareholders of record at the close of business on June 18, 2021.

Net Interest Income

Net interest income for the 2021 second quarter was $457.2 million, an increase of $70.1 million, or 18.1 percent, versus the same period last year, primarily due to growth in average interest-earning assets. Average interest-earning assets of $90.99 billion for the 2021 second quarter represent an increase of $34.53 billion, or 61.2 percent, from the 2020 second quarter. Yield on interest-earning assets for the 2021 second quarter decreased 107 basis points to 2.37 percent, compared to the second quarter of last year.

Average cost of deposits and average cost of funds for the second quarter of 2021 decreased by 29 and 35 basis points, to 0.27 percent and 0.38 percent, respectively, versus the comparable period a year ago.

Net interest margin on a tax-equivalent basis for the 2021 second quarter was 2.02 percent versus 2.77 percent reported in the 2020 second quarter and 2.10 percent in the 2021 first quarter. Excluding loan prepayment penalties in both quarters, linked quarter core net interest margin on a tax-equivalent basis decreased eight basis points to 1.99 percent. The 2021 second quarter net interest margin was negatively affected by 55 basis points due to significant excess cash balances driven by record deposit growth.

Provision for Credit Losses

The Bank's provision for credit losses for the second quarter of 2021 was $8.3 million, compared with $30.9 million for the 2021 first quarter and $93.0 million for the 2020 second quarter. The decrease in the provision for credit losses for the second quarter was predominantly attributable to improved macroeconomic conditions compared with the same period last year.

Net charge offs for the 2021 second quarter were $15.3 million, or 0.12 percent of average loans, on an annualized basis, versus $17.9 million, or 0.15 percent, for the 2021 first quarter and net charge offs of $4.6 million, or 0.04 percent, for the 2020 second quarter.

Non-Interest Income and Non-Interest Expense

Non-interest income for the 2021 second quarter was $23.4 million, up $10.7 million when compared with $12.7 million reported in the 2020 second quarter. The increase was driven by growth of $6.3 million in fees and service charges.

Non-interest expense for the second quarter of 2021 was $172.0 million, an increase of $20.1 million, or 13.3 percent, versus $151.9 million reported in the 2020 second quarter. The increase was predominantly due to a rise of $13.7 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 35.8 percent for the 2021 second quarter compared with 38.0 percent for the same period a year ago, and 37.9 percent for the first quarter of 2021.

Loans

Loans, excluding loans held for sale, grew $3.56 billion, or 7.0 percent, during the second quarter of 2021 to $54.51 billion, compared with $50.95 billion at March 31, 2021. Core loans (excluding Paycheck Protection Program loans) grew a record $3.92 billion, or 8.1 percent, during the second quarter of 2021 to $52.20 billion, compared with $48.28 billion at March 31, 2021. Average loans, excluding loans held for sale, reached $52.48 billion in the 2021 second quarter, growing $3.12 billion, or 6.3 percent, from the 2021 first quarter and $9.74 billion, or 22.8 percent, from the 2020 second quarter.

At June 30, 2021, non-accrual loans were $136.1 million, representing 0.25 percent of total loans and 0.14 percent of total assets, compared with non-accrual loans of $133.7 million, or 0.26 percent of total loans, at March 31, 2021 and $46.9 million, or 0.10 percent of total loans, at June 30, 2020. The ratio of allowance for credit losses for loans and leases to total loans at June 30, 2021 was 0.94 percent, versus 1.02 percent at March 31, 2021 and 0.98 percent at June 30, 2020. Additionally, the ratio of allowance for credit losses for loans and leases to non-accrual loans, or the coverage ratio, was 378 percent for the 2021 second quarter versus 390 percent for the first quarter of 2021 and 947 percent for the 2020 second quarter.

COVID-19 Related Loan Modifications

As of July 15, 2021, total non-payment deferrals were $308.7 million, or 0.57 percent of the Bank's total loan portfolio, compared with non-payment deferrals of $982.8 million, or 1.9 percent of total loans, at April 15, 2021, and $11.08 billion, or 24.5 percent of total loans at their peak level as of June 30, 2020. The positive trend is the result of the Bank's ability to work closely with its clients toward reasonable resolutions.

				Non-Payment Modifications
(dollars in millions)	Portfolio Balance June 30, 2021			Deferral Balance July 15, 2021	% of Loan Category
Multi-family	$	15,468		85	0.5	%
Retail	5,585			138	2.5	%
Office	4,044			6	0.1	%
Acquisition, Development, and Construction (ADC)	1,427			8	0.6	%
Industrial	635			—	—	%
Hotel	76			—	—	%
Land	42			—	—	%
Other	333			—	—	%
Total Commercial Real Estate	27,610			237	0.9	%
Fund Banking and Venture Banking	16,177			—	—	%
Asset Based Lending	348			—	—	%
Signature Financial	5,051			2	—	%
Traditional Commercial & Industrial	2,540			59	2.3	%
Total Commercial & Industrial	24,116			61	0.3	%
PPP Loans	2,307			—	—	%
Consumer and Residential	556			11	2.0	%
Premium, deferred fees, and costs	(80		)	—	—	%
Total Loans	$	54,509		309	0.6	%

Additionally, the Bank has made other COVID-19 related modifications that have resulted in the receipt of modified principal and interest payments totaling 7.0 percent of the loan book.

Conference Call

Signature Bank's management will host a conference call to review results of the 2021 second quarter on Tuesday, July 20, 2021, 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 #6246928. 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," "Quarterly Results/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 #6246928. The replay will be available from approximately 1:00 PM ET on Tuesday, July 20, 2021 through 11:59 PM ET on Friday, July 23, 2021.

About Signature Bank

Signature Bank, member FDIC, is a New York-based full-service commercial bank with 37 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; 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 solution to be approved for use by the NYS Department of Financial Services.

Signature Bank placed 22nd 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 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, our business strategy and the impact of the COVID-19 pandemic on each of the foregoing and on our business overall. These 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, which is having an unprecedented impact on all aspects of our operations, the financial services industry and the economy as a whole. 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.

FINANCIAL TABLES ATTACHED

SIGNATURE BANK
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)

	Three months ended June 30,					Six months ended June 30,
(dollars in thousands, except per share amounts)	2021			2020		2021	2020
INTEREST INCOME
Loans held for sale	$	998		937		1,577	1,642
Loans and leases	466,748			413,767		895,729	818,277
Securities available-for-sale	46,722			47,684		88,597	99,432
Securities held-to-maturity	13,240			14,030		26,202	28,624
Other investments	9,102			5,364		16,246	13,621
Total interest income	536,810			481,782		1,028,351	961,596
INTEREST EXPENSE
Deposits	54,948			65,550		112,452	165,290
Federal funds purchased and securities sold under
agreements to repurchase	595			719		1,197	1,467
Federal Home Loan Bank borrowings	17,114			22,528		34,242	47,739
Subordinated debt	6,932			5,852		16,733	11,704
Total interest expense	79,589			94,649		164,624	226,200
Net interest income before provision for credit losses	457,221			387,133		863,727	735,396
Provision for credit losses	8,308			93,008		39,180	159,831
Net interest income after provision for credit losses	448,913			294,125		824,547	575,565
NON-INTEREST INCOME
Commissions	3,899			2,877		7,902	6,527
Fees and service charges	16,605			10,307		33,535	20,901
Net gains on sales of loans	3,393			1,821		10,454	4,556
Other (loss) income	(529		)	(2,341	)	4,178	(5,140	)
Total non-interest income	23,368			12,664		56,069	26,844
NON-INTEREST EXPENSE
Salaries and benefits	112,806			99,084		218,857	192,116
Occupancy and equipment	10,779			11,282		22,552	21,819
Information technology	10,722			10,254		22,203	20,473
FDIC assessment fees	4,486			3,699		10,211	6,597
Professional fees	7,278			4,789		12,420	9,532
Other general and administrative	25,948			22,765		52,167	45,302
Total non-interest expense	172,019			151,873		338,410	295,839
Income before income taxes	300,262			154,916		542,206	306,570
Income tax expense	85,769			37,702		137,181	89,769
Net income	$	214,493		117,214		405,025	216,801
Preferred stock dividends	9,125			—		19,637	—
Net income available to common shareholders	$	205,368		117,214		385,388	216,801
PER COMMON SHARE DATA
Earnings per common share - basic	$	3.59		2.22		6.87	4.10
Earnings per common share - diluted	$	3.57		2.21		6.80	4.09
Dividends per common share	$	0.56		0.56		1.12	1.12

SIGNATURE BANK
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
	June 30,			December 31,
	2021			2020
(dollars in thousands, except shares and per share amounts)	(unaudited)
ASSETS
Cash and due from banks	$	24,811,551		12,208,997
Short-term investments		168,419		139,334
Total cash and cash equivalents		24,979,970		12,348,331
Securities available-for-sale (amortized cost $12,660,722 at June 30, 2021 and $8,891,709 at December 31, 2020); (zero allowance for credit losses at June 30, 2021 and $4 at December 31, 2020)		12,577,448		8,890,417
Securities held-to-maturity (fair value $3,373,059 at June 30, 2021 and $2,329,378 at December 31, 2020); (allowance for credit losses $78 at June 30, 2021 and $51 at December 31, 2020)		3,361,011		2,282,830
Federal Home Loan Bank stock		171,759		171,678
Loans held for sale		548,701		407,363
Loans and leases		54,509,167		48,833,098
Allowance for credit losses for loans and leases		(514,794	)	(508,299	)
Loans and leases, net		53,994,373		48,324,799
Premises and equipment, net		84,097		80,274
Operating lease right-of-use assets		229,432		237,407
Accrued interest and dividends receivable		307,704		277,801
Other assets		633,306		867,444
Total assets	$	96,887,801		73,888,344
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Non-interest-bearing	$	28,674,539		18,757,771
Interest-bearing		56,887,937		44,557,552
Total deposits		85,562,476		63,315,323
Federal funds purchased and securities sold under agreements
to repurchase		150,000		150,000
Federal Home Loan Bank borrowings		2,764,245		2,839,245
Subordinated debt		569,519		828,588
Operating lease liabilities		257,934		265,354
Accrued expenses and other liabilities		739,064		662,925
Total liabilities		90,043,238		68,061,435
Shareholders' equity
Preferred stock, par value $.01 per share; 61,000,000 shares authorized; 730,000 shares issued and outstanding at June 30, 2021 and December 31, 2020		7		7
Common stock, par value $.01 per share; 125,000,000 and 64,000,000 shares authorized at June 30, 2021 and December 31, 2020, respectively; 57,859,394 shares issued and 57,761,664 outstanding at June 30, 2021; 55,520,417 shares issued and 53,564,573 outstanding at December 31, 2020		577		555
Additional paid-in capital		3,084,743		2,583,514
Retained earnings		3,871,125		3,548,260
Treasury stock, zero shares at June 30, 2021 and 1,899,336 shares at December 31, 2020		—		(232,531	)
Accumulated other comprehensive loss		(111,889	)	(72,896	)
Total shareholders' equity		6,844,563		5,826,909
Total liabilities and shareholders' equity	$	96,887,801		73,888,344

SIGNATURE BANK
FINANCIAL SUMMARY, CAPITAL RATIOS, ASSET QUALITY
(unaudited)

	Three months ended June 30,						Six months ended June 30,
(in thousands, except ratios and per share amounts)	2021			2020			2021			2020
PER COMMON SHARE
Earnings per common share - basic	$	3.59		$	2.22		$	6.87		$	4.10
Earnings per common share - diluted	$	3.57		$	2.21		$	6.80		$	4.09
Weighted average common shares outstanding - basic	57,128			52,672			56,069			52,609
Weighted average common shares outstanding - diluted	57,527			52,785			56,614			52,763
Book value per common share	$	106.24		$	90.77		$	106.24		$	90.77

SELECTED FINANCIAL DATA
Return on average total assets	0.94		%	0.82		%	0.95		%	0.80		%
Return on average common shareholders' equity	13.61		%	9.79		%	13.33		%	9.08		%
Efficiency ratio (1)	35.79		%	37.99		%	36.79		%	38.81		%
Yield on interest-earning assets	2.37		%	3.43		%	2.44		%	3.62		%
Yield on interest-earning assets, tax-equivalent basis (1)(2)	2.37		%	3.44		%	2.45		%	3.63		%
Cost of deposits and borrowings	0.38		%	0.73		%	0.42		%	0.93		%
Net interest margin	2.02		%	2.76		%	2.05		%	2.77		%
Net interest margin, tax-equivalent basis (2)(3)	2.02		%	2.77		%	2.06		%	2.78		%

(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 Income" for related calculation.


	June 30, 2021			March 31, 2021			December 31, 2020			June 30, 2020
CAPITAL RATIOS
Tangible common equity (4)	6.31		%	6.92		%	6.89		%	7.99		%
Tier 1 leverage (5)	7.86		%	8.82		%	8.55		%	8.76		%
Common equity Tier 1 risk-based (5)	10.03		%	10.92		%	9.87		%	10.43		%
Tier 1 risk-based (5)	11.15		%	12.18		%	11.20		%	10.43		%
Total risk-based (5)	12.72		%	14.41		%	13.54		%	12.16		%

ASSET QUALITY
Non-accrual loans	$	136,099		$	133,713		$	120,171		$	46,939
Allowance for credit losses for loans and leases (ACLLL)	$	514,794		$	521,761		$	508,299		$	444,672
ACLLL to non-accrual loans	378.25		%	390.21		%	422.98		%	947.34		%
ACLLL to total loans	0.94		%	1.02		%	1.04		%	0.98		%
Non-accrual loans to total loans	0.25		%	0.26		%	0.25		%	0.10		%
Quarterly net charge-offs to average loans, annualized	0.12		%	0.15		%	0.10		%	0.04		%

(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) June 30, 2021 ratios are preliminary.

SIGNATURE BANK
NET INTEREST MARGIN ANALYSIS
(unaudited)

	Three months ended June 30, 2021						Three months ended June 30, 2020
(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	$	23,729,151	6,763		0.11	%	4,120,084	1,889		0.18	%
Investment securities	14,511,607		62,301		1.72	%	9,379,183	65,189		2.78	%
Commercial loans, mortgages and leases	52,324,060		467,188		3.58	%	42,551,809	413,284		3.91	%
Residential mortgages and consumer loans	151,401		1,286		3.41	%	180,320	2,026		4.52	%
Loans held for sale	271,611		998		1.47	%	227,023	937		1.66	%
Total interest-earning assets (1)	90,987,830		538,536		2.37	%	56,458,419	483,325		3.44	%
Non-interest-earning assets	868,338						1,202,816
Total assets	$	91,856,168					57,661,235
INTEREST-BEARING LIABILITIES
Interest-bearing deposits
NOW and interest-bearing demand	$	18,488,233	19,551		0.42	%	7,696,059	12,875		0.67	%
Money market	34,895,844		31,288		0.36	%	22,597,010	42,126		0.75	%
Time deposits	1,842,956		4,109		0.89	%	2,233,641	10,549		1.90	%
Non-interest-bearing demand deposits	25,511,558		—		—		14,848,167	—		—
Total deposits	80,738,591		54,948		0.27	%	47,374,877	65,550		0.56	%
Subordinated debt	620,709		6,932		4.47	%	456,584	5,852		5.13	%
Other borrowings	2,914,245		17,709		2.44	%	4,318,476	23,247		2.17	%
Total deposits and borrowings	84,273,545		79,589		0.38	%	52,149,937	94,649		0.73	%
Other non-interest-bearing liabilities	819,989						666,952
Preferred equity	708,071						—
Common equity	6,054,563						4,844,346
Total liabilities and shareholders' equity	$	91,856,168					57,661,235
OTHER DATA
Net interest income / interest rate spread (1)			458,947		1.99	%		388,676		2.71	%
Tax-equivalent adjustment			(1,726	)				(1,543	)
Net interest income, as reported			457,221					387,133
Net interest margin					2.02	%				2.76	%
Tax-equivalent effect					0.00	%				0.01	%
Net interest margin on a tax-equivalent basis (1)					2.02	%				2.77	%
Ratio of average interest-earning assets
to average interest-bearing liabilities					107.97	%				108.26	%

(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)

	Six months ended June 30, 2021						Six months ended June 30, 2020
(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	$	20,437,320	11,779		0.12	%	2,693,115	6,303		0.47	%
Investment securities	13,336,026		119,266		1.79	%	9,490,033	135,374		2.85	%
Commercial loans, mortgages and leases	50,772,133		896,523		3.56	%	40,957,747	817,648		4.01	%
Residential mortgages and consumer loans	154,335		2,620		3.42	%	183,920	3,675		4.02	%
Loans held for sale	202,237		1,577		1.57	%	154,415	1,642		2.14	%
Total interest-earning assets (1)	84,902,051		1,031,765		2.45	%	53,479,230	964,642		3.63	%
Non-interest-earning assets	919,686						993,553
Total assets	$	85,821,737					54,472,783
INTEREST-BEARING LIABILITIES
Interest-bearing deposits
NOW and interest-bearing demand	$	17,286,749	39,499		0.46	%	6,623,067	32,886		1.00	%
Money market	32,608,177		63,974		0.40	%	21,508,865	109,288		1.02	%
Time deposits	1,815,886		8,979		1.00	%	2,300,393	23,116		2.02	%
Non-interest-bearing demand deposits	23,095,758		—		—		13,826,244	—		—
Total deposits	74,806,570		112,452		0.30	%	44,258,569	165,290		0.75	%
Subordinated debt	724,167		16,733		4.62	%	456,411	11,704		5.13	%
Other borrowings	2,948,223		35,439		2.42	%	4,252,950	49,206		2.33	%
Total deposits and borrowings	78,478,960		164,624		0.42	%	48,967,930	226,200		0.93	%
Other non-interest-bearing liabilities	802,551						680,581
Preferred equity	708,045						—
Common equity	5,832,181						4,824,272
Total liabilities and shareholders' equity	$	85,821,737					54,472,783
OTHER DATA
Net interest income / interest rate spread (1)			867,141		2.03	%		738,442		2.70	%
Tax-equivalent adjustment			(3,414	)				(3,046	)
Net interest income, as reported			863,727					735,396
Net interest margin					2.05	%				2.77	%
Tax-equivalent effect					0.01	%				0.01	%
Net interest margin on a tax-equivalent basis (1)					2.06	%				2.78	%
Ratio of average interest-earning assets
to average interest-bearing liabilities					108.18	%				109.21	%

(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)

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) core net interest margin, tax-equivalent basis excluding loan prepayment penalty income, (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:

(dollars in thousands)	June 30, 2021			March 31, 2021		December 31, 2020		June 30, 2020
Consolidated common shareholders' equity	$	6,844,563		6,642,403		5,826,909		4,862,582
Less: Preferred equity	708,173			708,019		708,019		—
Common shareholders' equity	$	6,136,390		5,934,384		5,118,890		4,862,582
Less: Intangible assets	19,886			28,630		32,301		46,385
Tangible common shareholders' equity (TCE)	$	6,116,504		5,905,754		5,086,589		4,816,197

Consolidated total assets	$	96,887,801		85,382,194		73,888,344		60,349,808
Less: Intangible assets	19,886			28,630		32,301		46,385
Consolidated tangible total assets (TTA)	$	96,867,915		85,353,564		73,856,043		60,303,423
Tangible common equity ratio (TCE/TTA)	6.31		%	6.92	%	6.89	%	7.99	%

The following table presents the efficiency ratio calculation:

	Three months ended June 30,					Six months ended June 30,
(dollars in thousands)	2021			2020		2021		2020
Non-interest expense (NIE)	$	172,019		151,873		338,410		295,839
Net interest income before provision for credit losses	457,221			387,133		863,727		735,396
Other non-interest income	23,368			12,664		56,069		26,844
Total income (TI)	$	480,589		399,797		919,796		762,240
Efficiency ratio (NIE/TI)	35.79		%	37.99	%	36.79	%	38.81	%

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

	Three months ended June 30,					Six months ended June 30,
(dollars in thousands)	2021			2020		2021		2020
Interest income (as reported)	$	536,810		481,782		1,028,351		961,596
Tax-equivalent adjustment	1,726			1,543		3,414		3,046
Interest income, tax-equivalent basis	$	538,536		483,325		1,031,765		964,642
Interest-earnings assets	$	90,987,830		56,458,419		84,902,051		53,479,230

Yield on interest-earning assets	2.37		%	3.43	%	2.44	%	3.62	%
Tax-equivalent effect	—		%	0.01	%	0.01	%	0.01	%
Yield on interest-earning assets, tax-equivalent basis	2.37		%	3.44	%	2.45	%	3.63	%

The following table reconciles net interest margin (as reported) to core net interest margin on a tax-equivalent basis excluding loan prepayment penalty income:

	Three months ended June 30,				Six months ended June 30,
(dollars in thousands)	2021		2020		2021		2020
Net interest margin (as reported)	2.02	%	2.76	%	2.05	%	2.77	%
Tax-equivalent adjustment	—	%	0.01	%	0.01	%	0.01	%
Margin contribution from loan prepayment penalty income	(0.03	)%	(0.08	)%	(0.03	)%	(0.08	)%
Core net interest margin, tax-equivalent basis excluding loan prepayment penalty income	1.99	%	2.69	%	2.03	%	2.70	%

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

	Three months ended June 30,			Six months ended June 30,
(dollars in thousands)	2021		2020	2021	2020
Net income (as reported)	$	214,493	117,214	405,025	216,801
Income tax expense	85,769		37,702	137,181	89,769
Provision for credit losses	8,308		93,008	39,180	159,831
Pre-tax, pre-provision earnings	$	308,570	247,924	581,386	466,401

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

(dollars in thousands)	June 30, 2021		March 31, 2021	December 31, 2020	June 30, 2020
Loans and leases (as reported)	$	54,509,167	50,952,998	48,833,098	45,200,572
Less: PPP loans	2,306,564		2,672,816	1,874,447	1,961,966
Core loans excluding PPP loans	$	52,202,603	48,280,182	46,958,651	43,238,606

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Signature Bank Reports 2021 Second Quarter Results