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A N N U A L R E P O R T

Beyond2 0 1 9

A N N U A L R E P O R T

Beyond2 0 1 9

A N N U A L R E P O R T

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Year after year for the past 18 years, we have been pleased to deliver news of safe, sound profitable growth, and we are proud to report 2019 is certainly no different. It is truly a remarkable accomplishment built on our commitment to service, our relationships with our clients and community, and the overwhelming confidence and support of our shareholders.

While financial results are the qualitative measure by which we judge our success, this past year, more than ever, has made us realize that the value of our Bank goes far beyond the loans, assets, deposits and net income. Perhaps in other years we’ve had bolder financials. But when it comes to our Gold Standard Service, 2019 felt like everything just clicked.

Our value as a bank has gone Beyond the Numbers to become an integral resource for clients of all sizes, strategies and stages of their businesses and organizations. Every day, our people do the little things and big things that exceed client expectations and define our Gold Standard. It’s what the bank was founded on, and what we continue to use as our pillar of strength today. We always strive “to go above and beyond the call,” only now “the call” involves so much more than just financial advice and financial services.

Clients look to us to help them shape the key decisions that impact their business strategy and success, whether it’s about personnel, acquisitions, advisory boards, equipment purchases and more. Sure, we are banking professionals. But we are also consultants. We are confidants. We are idea people. We are solutions providers. We are always ready to help take that extra step that goes the extra mile.

In our search for the best solutions, we saw our people becoming more integrated and engaged than ever before as they discussed solutions, generated new ideas and delivered relevant, on-point recommendations. Our teamwork and follow-through were some of the best we’ve seen, and that’s high praise for a Bank that has been synonymous with Service for nearly two decades.

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Richard J. BrunnerCHAIRMAN & CHIEF EXECUTIVE OFFICER

David A. ReedPRESIDENT

For the 18th straight year, we have excellent results to report, as we were able to grow our assets, our net income and our stock value.

Our assets increased by $73 Million climbing to $987 Million. Sustained loan growth was challenging throughout 2019, but we had a strong fourth quarter ending the year with loan growth of $16 Million. Deposit growth continued at a solid pace growing $62 Million.

Net Income totaled $13.1 Million in 2019 – an 8% increase over 2018. We successfully navigated the headwinds of a declining interest rate environment and generated an ROA of 1.38% and an ROE of 12.73%.

The growth in our balance sheet and solid earnings resulted in an increase in our stock value of $8 per share reaching $125 per share (Based on an independent valuation by ProBank Austin, Inc.). Share price appreciation, combined with the cash dividend of $1.80 per share, yielded a total return on your investment of 8.4%.

Excellent financial performance. Outstanding employee performance. We are so very grateful to have what we consider to be the best of all worlds. The best shareholders. The best clients. The best employees. Put them all together, and we have a Bank that is poised for even more great things that will deliver on our commitment to do whatever it takes – to go Beyond the Numbers.

We appreciate everyone’s efforts and the valued relationships that have deepened throughout the years, and we look forward to being your trusted partner for years to come.

2019:

Fundraiser Results by Salesperson

UNITS SOLD

2015 73

2016 83

2017 103

2018 117

2019 125

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M A R K E T V A L U E

2015 2016 2017 2018 2019

$73.00$83.00

$103.00

$117.00

$125.00price per share

Fundraiser Results by Salesperson

UNITS SOLD

2015 618

2016 650

2017 708

2018 777

2019 793

1

T O T A L L O A N S

2015 2016 2017 2018 2019

618650

708777

793$ in millions

Fundraiser Results by Salesperson

UNITS SOLD

2015 6,941

2016 7,900

2017 8,052

2018 12,094

2019 13,057

1

N E T I N C O M E

2015 2016 2017 2018 2019

6,941 7,900 8,052

12,09413,057

$ in thousands

Fundraiser Results by Salesperson

UNITS SOLD

2015 626

2016 696

2017 723

2018 814

2019 876

1

T O T A L D E P O S I T S$ in millions

2015 2016 2017 2018 2019

626696

723814

876

Fundraiser Results by Salesperson

UNITS SOLD

2015 712

2016 777

2017 812

2018 914

2019 987

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T O T A L A S S E T S

2015 2016 2017 2018 2019

777812

914987

712

$ in millions

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Beyond

Technology

Community

Infrastructure

Strategic

ServiceMore than just taking care of day-to-day banking, we consulted with clients to help with expansions, strategic planning, and hiring key employees using the lessons we’ve learned from other businesses along the way.

We’ve continued to sponsor community events and make investments in support of those who need it most in our area. Our employees are key volunteers and leaders in many of the organizations that create a lasting impact in our region.

Our continued growth led to the design and renovation of our new technology and operations center that will be located on Woodley Road. This facility will meet the needs of our growing company and provide increased opportunities for collaboration among all Bank employees.

Our employees provided online solutions such as mobile banking, electronic deposits, Bill Pay, ACH and image lockbox, all while offering advice on Internet security and protection of confidential data. Behind the scenes, we continued to invest in security around our IT infrastructure.

Our Board of Directors and Management Team began to think about the next generation of leadership and the strategic goals of the coming years as we approach our second decade of service and look to surpass $1 billion in assets.

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Our employees grew in both number and in the way they continue to deliver our Gold Standard Service. Our employees not only respond to our clients’ needs in a timely and professional manner, they contribute ideas about how to improve our systems and procedures with the client experience as the top priority.

People

1 Market Value is determined annually by ProBank Austin, Inc., an independent consulting firm experienced in stock valuations of commercial banks and bank holding companies.

$ I N T H O U S A N D S , E X C E P T P E R S H A R E D ATA

2019 2018 2017

R E S U L T S O F O P E R A T I O N S Interest Income $40,482 $36,079 $30,441 Interest Expense $7,556 $4,355 $2,801 Net Interest Income $32,926 $31,724 $27,640 Provision for Loan Losses $390 $910 $390 Non-Interest Income $1,634 $1,613 $1,459 Non-Interest Expense $17,635 $17,137 $15,024 Pre-Tax Income $16,535 $15,290 $13,685 Income Tax Expense $3,478 $3,196 $5,633 Net Income $13,057 $12,094 $8,052

P E R I O D E N D T O T A L STotal Assets $987,125 $913,821 $812,203 Total Loans $793,268 $776,920 $708,071 Allowance for Loan Losses $8,938 $8,516 $7,311 Total Deposits $876,466 $814,350 $723,478 Stockholders’ Equity $108,066 $97,137 $86,553

P E R S H A R E D A T ABasic Earnings $9.36 $8.71 $5.85Fully Diluted Earnings $9.20 $8.57 $5.78Book Value $77.40 $69.78 $62.64 Market Value1 $125.00 $117.00 $103.00

P E R F O R M A N C E R A T I O SReturn on Average Assets 1.38% 1.41% 0.99%Return on Average Equity 12.73% 13.54% 9.70%Net Interest Margin 3.55% 3.78% 3.47%Efficiency Ratio 51.03% 51.09% 51.45%

A S S E T Q U A L I T Y R A T I O SNon-Performing Assets/OREO to Loans 0.04% 0.05% 0.08%Net Charge-Offs to Average Loans 0.00% -0.04% 0.02%Allowance for Loan Losses to Loans 1.13% 1.10% 1.03%

C A P I T A L R A T I O STotal Risk-Based Capital 13.8% 12.6% 12.2%Tier 1 Risk-Based Capital 12.7% 11.5% 11.2%Tier 1 Leverage Capital 11.0% 10.7% 10.3%

Financials2019

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Beyond

“Signature Bank provides the best customer service we have ever received from any other business. Employees go above and beyond to help customers. Signature Bank exhibits the kind of treatment that any customer would appreciate in an era where customer service seems to be slowly diminishing.”

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Barbara A. Berebitsky Executive Vice President

Richard J. BrunnerChairman & CEO

David A. Reed President

Carol A. SavageExecutive Vice President

Robert D. ShamyExecutive Vice President

John S. SzuchExecutive Officer

David L. BishopRetired CEO/Director;Matrix Technologies, Inc.

Richard J. BrunnerChairman & CEO;Signature Bancorp, Inc.

Bruce M. DenmanPresident;Maumee Machine & Tool Corporation

Michael J. FischerFounder;Fischer Tool & Die Corporation

Stephen A. Hirzel President;Hirzel Canning Company & Farms

Kathryn S. HoopsVice President, Financial Services;HCR ManorCare

Matthew B. KripkePresident;Kripke Enterprises, Inc.

Gus J. MancyPartner;Mancy’s Restaurant Group

David A. ReedPresident;Signature Bancorp, Inc.

Carol A. SavageExecutive Vice President;Signature Bancorp, Inc.

C. Michael SmithChairman Emeritus;The Mannik & Smith Group, Inc.

R. Jeffery Stephens, DDSRetired Periodontist

John S. SzuchExecutive Officer;Signature Bancorp, Inc.

Board

Management

OF DIRECTORS

TEAM

8

PeopleOUR

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John H. AchingerCourier Driver

Kimberly M. AchingerLending Coordinator

Kerri R. AdamsVice President – Client Development

Julie A. AlbringOfficer – Deposit Operations

Esther A. AmelingLoan Documentation Specialist

Melissa K. AndersonPortfolio Administrator

Delaney E. AosseyLockbox / Transaction Coordinator

Andrew BabulaCourier Driver

Louise M. BaumgartnerLockbox / Proof Coordinator

Skylar R. BehrmanLockbox / Assistant Transaction Coordinator

Lisa M. BeiningOfficer – Bank Secrecy Act

Melissa A. BellOfficer – Operations

Donald L. BinghamCourier Driver

Kimberly M. BirtLockbox / Transaction Coordinator

Bruce R. BischoffCourier Driver

Bethany A. BrownCredit Analyst

Briana C. CahillCard Services Coordinator

Brian M. CarderCourier Driver

Gretchen M. CarterHuman Resources Assistant

Krystal L. CarterAnalyst – Bank Secrecy Act

Beth L. CharvatAssistant Vice President – Client Development

Tyler L. ClaytonCourier Manager

Luke D. ClineCredit Analyst

Beverly D. CollinsLockbox / Proof Coordinator

Kevin P. CoulterVice President – Information Technology

William T. CulbertsonVice President – Client Development

Christina A. DiolettiDeposit Administrator

Kenny L. DubendorferCourier Driver

Beth A. DunsmoorDeposit and Loan Operations Coordinator

Eugene T. EnglishCredit Analyst

Nancy L. FeltzVice President – Credit Administration

Ada L. FinleyInternal Controls Officer

Amy L. FleckAdministrative Office Manager

Chad T. FrankOfficer – Compliance

Lauren A. FrickElectronic Banking Coordinator

Alison K. FryeVice President – Client Development

Todd B. GermanaVice President – Operations

Andrea M. GibbonsVice President – Client Development

Shane A. GibsonVice President – Corporate Controller

Ryan M. GilmoreCredit Analyst

Andrew R. GoeckermanCredit Analyst

Jeremy T. GryczaVice President – Information Technology

Matthew S. HaasNetwork Administrator

Nicholas W. HarrisTechnical Support Coordinator

LaVonna A. HicksTransaction Coordinator

Jami M. HillACH / Wire Transfer Coordinator

Alex W. HinzHelp Desk Coordinator

Philip M. HoltzACH / Wire Transfer Coordinator

Clint L. HuffmanDeposit and Loan Operations Coordinator

PeopleOUR

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Susan K. HughesLoan Documentation Specialist

Roy W. HutcheisonOfficer – Client Development

Stacey M. HutkaLockbox / Transaction Coordinator

Aaron E. IfflandTransaction Coordinator

Craig A. JablonskiVice President – Operations

Sudesh K. JindalTransaction Coordinator

Judy S. KameleskyTelephone Receptionist

Joseph P. KarchCourier Driver

Padma KaurDatabase Programmer

Danielle N. KeatonLoan Documentation Specialist

Kristine K. KegerreisVice President – Client Development

Jessica N. KochAdministrative Assistant

M. JoAnn KowalewskiLoan Administration Specialist

Emily M. KrewsonLockbox / Proof Coordinator

Kimberlee R. LarbergVice President – Client Development

Jenny M. LatendresseOfficer – Client Development

Shannon M. LeamonOperations Project Coordinator

Steven D. LeamyVice President – Client Development

Debora A. LeslieAccounting Clerk

Kathi L. LykeExecutive Administrator

Rebecca J. MannLockbox/Assistant Transaction Coordinator

Hatcher W. McManusOperations Specialist

William C. McNealOfficer – Client Development

Aaron M. McVickerTechnical Support Coordinator

Melanie K. MooreCard Services Coordinator

Michelle L. MorawskiCard Services Coordinator

Susan E. MorganSenior Vice President – Client Development

Sandra L. MylanderAccounting Associate

Diana L. NewlandLockbox Coordinator

Richard W. NewlandCourier Driver

Kevin M. OlanderCourier Coordinator

Thomas J. PalmerCourier Driver

Frederick W. PeaseCourier Driver

Kylee E. PeloquinTransaction Coordinator

Dan W. PennywittCourier Driver

Samuel M. PerryAccounting Associate

Kristin M. PersianiDeposit and Loan Operations Coordinator

Stephanie K. PetersenClient Service Representative

Pamela D. PiddockTelephone Receptionist

Brian C. ReidVice President – Client Development

Mark K. RennelsCourier Driver

Spencer C. RogersCourier Driver

Christopher A. RohrsElectronic Banking Coordinator

Shanaz C. RomstadtOfficer – Item Processing

Lisa M RoushACH / Wire Manager

Ronald C. RoushCourier Driver

Noah D. SaarOperations Specialist

Lori B. Schoch-MannVice President – Human Resources

T. Alan SchoryTechnical Support Coordinator

Joshua J. SchuylerVice President – Client Development

“Simply put …world-class service. Signature Bank ‘gets’ business and

world-class service.”

“Every single time I need to reach out, the service has been exemplary. I wish every company was run this way! Signature Bank is second to none! We enjoy working with the amazing employees at Signature.

Keep up the excellent work!”

“The staff always goes above and beyond to be sure everything is

handled in a professional manner. Your people set you apart and your willingness to do whatever it takes

for your clients.”

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Beyond

Emily M.M. SchwabElectronic Banking Coordinator

Kimberly A. ShafferVice President – Credit Administration

Barbara A. ShounConcierge / Receptionist

Lucas R. SigurdsonTransaction Coordinator

Tiffany J. SmithSenior Transaction Coordinator

Jordan E. SpellisCredit Analyst

Patty M. StambaughDeposit and Loan Operations Coordinator

Julie M. StrickDeposit Administrator

Jason C. SturdavantElectronic Banking Coordinator

Daniel W. SwansonSystems Operator

Jonathan W. TerryOfficer – Credit Administration

Charles J. ThomasCourier Driver

Ryan J. ThompsonVice President – Client Development

Nicole L. TuckOfficer – Deposit Services

Amanda J. ValasekLockbox / Transaction Coordinator

Hannah E. VasherCommercial Loan Representative

James D. Vischer Courier Driver

Gary P. WaltersCourier Driver

Nicole A. WaltersTelephone Receptionist

John M. WarrenCourier Driver

David E. WeaverCourier Driver

Thomas B. WeisCourier Driver

Christopher A. WelencOfficer – Operations

Andrew S. WenlandClient Development Representative

Lisa M. WillfordProgrammer Analyst

Brandon M. Wilson Assistant Vice President – Electronic Banking

Shelly A. WoodLoan Administration Specialist

Michael W. WrayCourier Driver

Amanda E. YoungManager – Card Services

Ashley A. ZoltanskiACH / Wire Transfer Coordinator

Janet M. ZoltanskiAssistant Manager – Lockbox Services

Jessica L. ZubrickyAdministrative Assistant

4607 W. Sylvania Ave.

Toledo, Ohio 43623

(419) 841-7773

www.signaturebankna.com

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