Shareholder Letter - May 2012

May 2012

Dear Shareholder:

Recently, we held our Annual Meeting and Tenth Anniversary Celebration at the Toledo Museum of Art where we shared the following 2012 highlights:

• Our first quarter earnings totaled $1,377,000, which is a 23% increase in net income over the first quarter last year.
• Our loan balances of $429.6MM were 1.9% lower than December 31, 2011. We are cautiously optimistic that we will grow the loan portfolio during the remainder of the year.
• The recently enacted JOBS act allows private companies to increase their shareholder count from 500 to 2,000. We will be able to widen our shareholder base and improve the liquidity of our stock.
• Our Board of Directors has authorized the periodic repurchasing of stock made available for sale. We will use stock repurchases to efficiently and safely manage our capital position.

As we begin our second decade, we are pleased to announce that John S. Szuch has joined the Signature Bank team to help us continue growing our company. John will be an Executive Officer and a member of the Board of Directors. John has had a distinguished banking career in our community, most notably as a founder and CEO of Capital Bank. Please join us in welcoming John to our organization.

We thank all of you for your loyal support in building our bank. We are excited about the future of Signature Bank, and we look forward to assisting you with your banking needs.

Best Regards,

Richard J. Brunner          David A. Reed
Chairmain & CEO            President

March 2012 Financial Results

Shareholder Letter - August 2012

August 30, 2012

Dear Shareholder:

We are pleased to report continued progress at Signature Bancorp. Financial highlights for the first six months of 2012 include:

• Net income totaled $2.7 million for the first half of 2012 – a 15% increase over the same period last year. Our Return on Assets and Return on Equity were strong at .97% and 10.47% respectively.
• Balance sheet growth has been the challenge thus far this year. You will see in the attached financial summary, we have experienced a slight decrease in our loan and deposit balances from the end of last year. However, our loan pipeline has been building the last 60 days, and we expect to see overall growth in our loan portfolio and balance sheet by the end of the year.
• Net loan charge-offs are $663 thousand year-to-date. Our loan loss reserve remains at a very healthy $5.2 million level.
• Austin Associates, LLC valued our stock at $55.00 per share for June 30, 2012. This represents a 12.2% increase over June 30, 2011 and a 4.8% increase over December 31, 2011.

We remain focused on building a quality loan portfolio and will not diminish our underwriting standards to generate “quantity”. Many businesses are operating successfully, but at slower growth than desired. We are working closely with our clients to identify good loan opportunities to build our respective businesses.

Best Regards,

Richard J. Brunner          David A. Reed
Chairmain & CEO            President

June 2012 Financial Results

Shareholder Letter - November 2012

November 7, 2012

Dear Shareholder:

As we head into the fourth quarter of 2012, we are pleased to report another positive quarter at Signature Bancorp, Inc. Our financial highlights include:

• Net Income surpassed $4 million year-to-date; a 14% increase over the same period last year. Our Return on Assets and Return on Equity were strong at .97% and 10.57% respectively.
• We sold our long-term mortgage backed securities portfolio to improve our interest rate risk position, and recognized a $280,000 pre-tax gain.
• Loan growth in the third quarter was the “bright spot” with loan balances increasing $22 million from June 30, 2012. Additionally, we are encouraged by a strong pipeline of loans ready to close by year-end.
• Net loan charge-offs were $350,000 this quarter. Our loan loss reserve remains a very healthy $5.2 million.

We are optimistic about a strong finish to 2012. Thank you for your loyal support. Your business and referrals are greatly appreciated.

Best Regards,

Richard J. Brunner          David A. Reed
Chairmain & CEO            President

September 2012 Financial Results