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Shareholder Letter - May 2011

May 9, 2011

Dear Shareholder:

Last week, we hosted our ninth Annual Shareholder Meeting at the Toledo Club. We shared several exciting announcements and our financial results with over 200 guests. The highlights from the meeting included:

    Announcements:
    • We welcomed two new Board Members – Carol Savage, Senior Vice President of Signature Bank and Matthew Kripke, Vice President of Kripke Enterprises.
    • We are finalizing plans to convert a property we currently own to a new Service Technology and Resource (STAR) Center. Occupying the STAR Center will be operations, information technology and financial personnel.
    • We were recently ranked in the Top 100 Community Banks by SNL Financial. The rankings evaluated approximately 800 banks with assets of $500 Million to $5 Billion.
    2011 First Quarter Financial Highlights
    • Our Net Income continued to grow totaling $1.1 Million for the first quarter - a 41% increase over the first quarter last year.
    • Total Assets grew to $524.8 Million at March 31, 2011, an increase of $16.8 million from year-end 2010.
    • Total Deposits grew $14.7 Million or 3.3% during the quarter.
    • Total loan balances were similar to year-end levels at $390 Million, and our loan quality measures remained stable.

Thank you to all who attended our Annual Meeting this year. We hope many of you will consider joining us next April for a celebration of our 10th year in business.

Best Regards,

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

Signature Bancorp, Inc.

Financial Highlights

(Dollars in Thousands - Except per Share Data)

  3/31/2011 3/31/2010   12/31/2010 12/31/2009
(3 Months) (3 Months)   (12 Months) (12 Months)
OPERATING RESULTS
Net Interest Income $4,340 $3,918   $16,387 $14,252
Provision for Loan Losses 225 550   1,450 1,500
Non-Interest Income 191 176   753 688
Non-Interest Expense 2,669 2,381   9,739 9,072
Pre-Tax Income 1,637 1,163   5,951 4,368
Securities gains (losses) - -   (35) -
Income Tax Expense 528 375   1,902 1,443
Net Income $1,109 $788   $4,014 $2,925
BALANCE SHEET HIGHLIGHTS
Total Assets $524,816 $448,809   $508,119 $452,300
Total Loans 380,052 370,272   391,125 371,661
Allowance for Loan Losses 5,676 5,354   5,443 5,029
Non-Interest Bearing Deposits 100,234 74,240   94,404 72,099
MMDA & Savings Deposits 189,190 146,516   181,087 150,160
Total Certificates of Deposit 165,368 163,519   164,474 162,907
Total Deposits 454,792 384,275   439,965 385,166
Stockholders' Equity $45,484 $39,372   $43,379 $38,501
PERFORMANCE RATIOS
Return on Average Assets 0.87% 0.71%   0.85% 0.66%
Return on Average Equity 10.12% 8.21%   9.72% 7.88%
Net Interest Margin 3.58% 3.68%   3.59% 3.34%
Efficiency Ratio 61.98% 58.16%   56.93% 60.73%
ASSET QUALITY RATIOS
Non-Performing Assets/OREO to Loans 0.75% 1.14%   0.65% 1.11%
Net Charge-Offs to Average Loans 0.00% 0.24%   0.28% 0.28%
Allowance for Loan Losses to Loans 1.49% 1.45%   1.39% 1.35%
CAPITAL RATIOS
Total Risk-Based Capital 12.7% 12.3%   11.9% 11.0%
Tier 1 Risk-Based Capital 11.5% 11.1%   10.9% 10.3%
Tier 1 Leverage Capital 9.0% 9.3%   8.6% 8.5%
PER SHARE DATA
Basic Earnings $3.44 $2.56 (1) $3.22 $2.39
Book Value $35.03 $31.86   $34.26 $31.23
Market Value $48.00 $43.50 (2) $48.00 $43.50

(1) Annualized Earnings

(2) Market Value is determined semi-annually by Austin Associates, LLC., an independent consulting firm experienced in stock valuations of commercial banks and bank holding companies.

Shareholder Letter - August 2011

August 26, 2011

Dear Shareholder:

We are pleased to report another quarter of positive performance for Signature Bank as we continue to navigate through an improving, but fragile economy. The financial highlights for the first half of the year include:

  • Total Assets reached $518 million, which is an increase of $10 million for the first six months of 2011 and $49 million of growth over the past twelve months.
  • Loan Growth has been a modest $14.5 million or 3.7% in 2011 with $33 million (8.9%) of growth over the past twelve months. The credit quality of our loan portfolio remains stable, and we remain diligent in identifying and addressing loan weaknesses.
  • Our net income totaled $2,318,000, which is 28% higher than the first half of 2010. Our Return on Assets and Return on Equity reached the highest level in our history at .90% and 10.11% respectively for the first half of 2011.
  • Austin Associates, LLC has completed its semi-annual valuation of our stock determining a value of $49.00 per share. This is a 2% increase over our year-end value and an 8.9% increase over the value twelve months ago.

For the remainder of 2011, we are cautiously optimistic, and we expect continued growth in our balance sheet, profitability and share value. Finally, thus far in 2011, there has been a total of 42,234 shares of stock traded at the valuation price. We anticipate additional shares being offered for sale by existing shareholders. Please let us know if you would be interested in acquiring shares that may be available.

Thank you for your loyal support of our Bank. Your business and referrals are sincerely appreciated.

Best Regards,

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

Signature Bancorp, Inc.

Financial Highlights

(Dollars in Thousands - Except per Share Data)

  6/30/2011 6/30/2010   12/31/2010 12/31/2009
(6 Months) (6 Months)   (12 Months) (12 Months)
OPERATING RESULTS
Net Interest Income $8,837 $7,912   $16,387 $14,252
Provision for Loan Losses 450 850   1,450 1,500
Non-Interest Income 1407 367   753 688
Non-Interest Expense 5,380 4,772   9,739 9,072
Pre-Tax Income 3,414 2,657   5,951 4,368
Securities gains (losses) 2 -   (35) -
Income Tax Expense 1,098 848   1,902 1,443
Net Income $2,318 $1,809   $4,014 $2,925
BALANCE SHEET HIGHLIGHTS
Total Assets $518,414 $469,146   $508,119 $452,300
Total Loans 405,495 372,494   391,125 371,661
Allowance for Loan Losses 5,916 5,598   5,443 5,029
Non-Interest Bearing Deposits 104,159 86,120   94,404 72,099
MMDA & Savings Deposits 177,803 153,093   181,087 150,160
Total Certificates of Deposit 166,033 161,965   164,474 162,907
Total Deposits 447,995 439,965   439,965 385,166
Stockholders' Equity $46,973 $40,543   $43,379 $38,501
PERFORMANCE RATIOS
Return on Average Assets 0.90% 0.79%   0.85% 0.66%
Return on Average Equity 10.11% 9.13%   9.72% 7.88%
Net Interest Margin 3.59% 3.64%   3.59% 3.34%
Efficiency Ratio 58.20% 57.64%   56.93% 60.73%
ASSET QUALITY RATIOS
Non-Performing Assets/OREO to Loans 1.03% 1.11%   0.65% 1.11%
Net Charge-Offs (Recoveries) to Average Loans (0.01)% 0.15%   0.28% 0.28%
Allowance for Loan Losses to Loans 1.46% 1.50%   1.39% 1.35%
CAPITAL RATIOS
Total Risk-Based Capital 12.6% 12.0%   11.9% 11.0%
Tier 1 Risk-Based Capital 11.4% 10.7%   10.9% 10.3%
Tier 1 Leverage Capital 9.2% 8.8%   8.6% 8.5%
PER SHARE DATA
Basic Earnings $3.60 $2.95 (1) $3.22 $2.39
Book Value $35.38 $32.43   $34.26 $31.23
Market Value $49.00 $45.00 (2) $48.00 $43.50

(1) Annualized Earnings

(2) Market Value is determined semi-annually by Austin Associates, LLC., an independent consulting firm experienced in stock valuations of commercial banks and bank holding companies.

Shareholder Letter - November 2011

November 7, 2011

Dear Shareholder:

We are pleased to report continued growth and profitability at Signature Bank during the past quarter. Financial highlights for 2011 include:

  • Total Assets have reached $542 million representing growth of $34 million so far this year.
  • Deposits now total $470.6 million, a 14% increase over September 30, 2010. We have successfully attracted many businesses and organizations to Signature Bank.
  • Loan Growth strengthened this past quarter with $15.2 million of new loans generated. The loan portfolio totals $420.7 million representing growth of $29.6 million year-to-date.
  • Loan charge-offs net of recoveries total $830,000 this year. We have added $800,000 to our Loan Loss Reserve to cover these losses and maintain a healthy $5.5 million reserve.
  • Net income has grown to $3.6 million year-to-date, a 25% increase over 2010.

STAR Center Update: We have finalized our plans to establish a new Service Technology and Resource Center which will be occupied by our Operations and Financial personnel. We have signed a long term lease for office space in Arrowhead Park and plan to begin moving by year end. Clients will continue to be served by our main office on Sylvania Avenue.

Best Regards,

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

Signature Bancorp, Inc.

Financial Highlights

(Dollars in Thousands - Except per Share Data)

  9/30/2011 9/30/2010   12/31/2010 12/31/2009
(6 Months) (6 Months)   (12 Months) (12 Months)
OPERATING RESULTS
Net Interest Income $13,536 $12,062   $16,387 $14,252
Provision for Loan Losses 800 1,150   1,450 1,500
Non-Interest Income 626 559   753 688
Non-Interest Expense 8,037 7,209   9,739 9,072
Pre-Tax Income 5,325 4,262   5,951 4,368
Securities gains (losses) 2 (35)   (35) -
Income Tax Expense 1,724 1,358   1,902 1,443
Net Income $3,603 $2,869   $4,014 $2,925
BALANCE SHEET HIGHLIGHTS
Total Assets $542,039 $479,239   $508,119 $452,300
Total Loans 420,724 382,502   391,125 371,661
Allowance for Loan Losses 5,413 5,567   5,443 5,029
Non-Interest Bearing Deposits 114,464 91,386   94,404 72,099
MMDA & Savings Deposits 193,483 158,308   181,087 150,160
Total Certificates of Deposit 162,628 162,559   164,474 162,907
Total Deposits 470,575 412,253   439,965 385,166
Stockholders' Equity $48,692 $41,707   $43,379 $38,501
PERFORMANCE RATIOS
Return on Average Assets 0.91% 0.82%   0.85% 0.66%
Return on Average Equity 10.23% 9.46%   9.72% 7.88%
Net Interest Margin 3.60% 3.62%   3.59% 3.34%
Efficiency Ratio 56.36% 56.79%   56.93% 60.73%
ASSET QUALITY RATIOS
Non-Performing Assets/OREO to Loans 1.68% 1.00%   0.65% 1.11%
Net Charge-Offs (Recoveries) to Average Loans 0.21% 0.22%   0.28% 0.28%
Allowance for Loan Losses to Loans 1.28% 1.45%   1.39% 1.35%
CAPITAL RATIOS
Total Risk-Based Capital 12.5% 12.5%   11.9% 11.0%
Tier 1 Risk-Based Capital 11.2% 11.2%   10.9% 10.3%
Tier 1 Leverage Capital 9.2% 9.2%   8.6% 8.5%
PER SHARE DATA
Basic Earnings $3.63 $3.09 (1) $3.22 $2.39
Book Value $36.73 $33.35   $34.26 $31.23
Market Value $49.00 $45.00 (2) $48.00 $43.50

(1) Annualized Earnings

(2) Market Value is determined semi-annually by Austin Associates, LLC., an independent consulting firm experienced in stock valuations of commercial banks and bank holding companies.

 
 
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4607 W. Sylvania Ave. | Toledo, Ohio 43623 | (419) 841-7773
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