Signature Bank gives status updates on positive trends in loan deferral


NEW YORK–(BUSINESS WIRE) – Signature Bank (Nasdaq: SBNY), a New York-based full-service commercial bank, today announced a status update on loan deferrals on its $ 45.5 billion portfolio. The bank sees positive trends in an increasing number of loan deferrals.

As of September 15, 2020, 69 percent of the first round of loan deferrals have returned to their regular payment status. Forbearance on principal and interest (P&I) fell significantly to $ 2.6 billion, or 5.8 percent of the bank’s total loan portfolio. In addition, a further two percent of the loan book currently consists of modified interest-only payments. The significant decrease is due to the bank’s ability to work closely with its customers on appropriate solutions.

“We are encouraged by the positive trends we are seeing across our loan portfolio as a number of loans have returned to their regular payment status. At the start of COVID-19, Signature Bank has been accommodating to our customers and quite liberal in terms of forbearance in our first round of procrastination given the unprecedented nature of the pandemic. The seasoned, cross-generational nature of our customer base, coupled with the resilience of metropolitan New York’s marketplace, has enabled them to weather the storm and resume their payments, “said Joseph J. DePaolo, President and Chief Executive Officer of Signature Bank.

“As a customer-oriented bank, we have always focused primarily on meeting the needs of our borrowers through very personal service and support. These extraordinary times are no exception to our commitment to our customers as we continue to support them in any way we can to help them succeed, ”concluded DePaolo.

P&I deferrals (as of September 15, 2020)
($ in millions)

Portfolio balance

06/30/2020

Loans in the first 90 day grace period

Loans in the 2nd 90-day grace period

total

Postponement

% of the loan

category

Residential

15,215

98

342

440

2.9%

sale

5.628

156

927

1,083

19.2%

office

4.026

23

535

558

13.9%

Other

2.210

61

193

254

11.5%

Total CRE

27,079

338

1.997

2,335

8.6%

FB, VC, ABL

8,353

Signature finance

4,712

46

120

166

3.5%

Traditional C&I

2,520

107

26th

133

5.3%

Total K&I

15,585

153

146

299

1.9%

PPP loan

1,962

Other credits, premiums, deferred fees and costs

859

Overall portfolio

45,485

491

2.143

2,634

5.8%

Signature Bank reported total credit changes from COVID-19 of $ 9.24 billion, or 20 percent, on its latest Form 10-Q as of July 31, 2020.

Via the signature bank

Signature Bank, a member of the FDIC, is a New York-based, full-service commercial bank with 35 retail offices across the New York metropolitan area, including Connecticut, as well as in California and Charlotte, NC serving the needs of private companies, their owners and officers.

Signature Bank’s specialty finance subsidiary, Signature Financial, LLC, provides finance and equipment leasing. Signature Securities Group Corporation, a wholly-owned subsidiary of the bank, is a licensed broker-dealer, investment advisor and member of FINRA / SIPC, providing investment, brokerage, asset management and insurance products and services.

Signature Bank’s revolutionary blockchain-based digital payment platform, Signet ™, enables the bank’s business customers to securely make real-time payments in US dollars around the clock, 365 days a year, with no transaction fees. Signature Bank is the first FDIC-insured bank to introduce a blockchain-based digital payment platform, and Signet is the first such platform to be approved for use by the NYS Department of Financial Services.

Since commencing operations in May 2001, as of June 30, 2020, the bank is valued at $ 60.35 billion in assets, $ 45.49 billion in loans, $ 50.23 billion in deposits, $ 4.86 billion. $ 3.66 billion in equity and $ 3.66 billion in other assets under management has grown 1 and the risk-based capital ratios are above what is necessary to be considered adequately capitalized.

Signature Bank is one of the 40 largest banks in the US based on deposits (S&P Global Market Intelligence). The bank recently received several third-party recognitions including: published on Forbes’ best banks in America List for the 10th consecutive year in 2020; and as number one in the categories of Business Bank, Private Bank and Business Escrow Services from the New York Law Journal in the publication’s annual “Best of” survey for 2019 and was thus inducted into the Hall of Fame (awarded to companies that were placed in the “Best of” survey for at least three of the last four years in the last four years) . The bank also took second place nationally in the categories Business Bank, Private Banking Services and Business Escrow Service in both 2019 and 2019 2020 National Law Journals “Best of” survey.

Further information can be found at https://www.signatureny.com/.

This press release and oral statements made from time to time by our agents contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. You should not place undue reliance on these statements because they involve numerous risks and uncertainties relating to our operations and the business environment, all of which are difficult to predict and which may be beyond our control. Forward-looking statements include information about our future results, interest rates and the interest rate environment, credit and deposit growth, credit performance, operations, new retail client teams and other recruitment, new office openings, our business strategy and the impact of the COVID-19 pandemic on each of the above and on our business as a whole. These statements often contain words such as “may”, “believe”, “expect”, “expect”, “intend”, “potential”, “opportunity”, “could”, “project”, “seek”, “aim”. , “Goal”, “should”, “will”, “would”, “plan”, “estimate” or other similar expressions. When looking at forward-looking statements, you should understand that such statements are not guarantees of performance or results. They involve risks, uncertainties and assumptions that could cause actual results to differ materially from the forward-looking statements and to change as a result of many possible events or factors, all of which we are not aware of or under our control. These factors include, but are not limited to: (i) the prevailing economic conditions; (ii) changes in interest rates, credit demand, property value and competition, all of which could materially affect the level of issuance and sales results of our business, as well as other aspects of our financial performance, including income from interest-bearing assets; (iii) the amount of defaults, losses and prepayments on loans we have granted, whether held or sold in all credit secondary markets, which may materially affect the write-offs and required credit loss reserves; (iv) changes in US government monetary and fiscal policies, including those of the US Treasury Department and the Board of Governors of the Federal Reserve System; (v) changes in the regulatory environment for banks and other financial services; (vi) our ability to maintain the continuity, integrity, security and security of our operations; and (vii) competition for qualified staff and desirable office locations. All of these factors are subject to additional uncertainty associated with the COVID-19 pandemic, which is having an unprecedented impact on all aspects of our business, the financial services industry and the wider economy. Although we believe that these forward-looking statements are based on reasonable assumptions, beliefs and expectations, our business, financial condition, liquidity, or results of operations could differ materially from those herein if we change or if our beliefs, assumptions and expectations have been incorrect the differences expressed in our forward-looking statements. Additional risks are described in our quarterly and annual reports filed with the FDIC. Please note that all forward-looking statements made by Signature Bank speak only as of the date of their publication.

From time to time new risks and uncertainties will arise and we cannot predict these events or their impact on the bank. Signature Bank undertakes no obligation and does not intend to update or revise any of the forward-looking statements after the date of their publication. Given these risks and uncertainties, you should be cautioned that forward-looking statements in this press release or elsewhere may not reflect actual results.

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