Welcome to Signature Investors Newsletter!
It is hard to believe Signature Bank opened its doors in 2005 and we will be celebrating our 7th birthday later this year. Embracing our core value of relationship-based, personalized banking, we grew our brand successfully. When the tough economic times began, we focused internally to position ourselves for today and the future. As of March 31, 2012, we have 22 team members, $161 million in total assets, $84 million in loans and $143 million in total deposits.
While our work is not done, we need to once again focus on becoming the brand of choice in Dunwoody, Sandy Springs and the surrounding markets by returning to what made us a success in the first place: unparalleled personalized service. We want the opportunity to put the "personal" back into a banking relationship by delivering "PERSONALIZED BANKING."
Everyone plays a critical role in our success! I am counting on you to do more business with us and to refer your family and friends to us.
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Also, please take a moment to review your information maintained by our Stock Transfer Agent, Transfer Online. We want to make sure we have the most current information on our shareholders (email address, address, telephone number, etc.).
As always should you have any questions, please feel free to call on me at 770-206-5360 or email me.
|1st Quarter Operating Performance |
The bank's operating performance is now available.
While I am not pleased with our overall financial performance (1st quarter loss of $712K-the majority of the loss is related to on-going challenges within the loan portfolio), there are some emerging bright spots which are noteworthy. Many of these items resulted from strategic and tactical initiatives implemented by the executive leadership (Board and Management) of the bank over the past year plus. The following serves as a summary:
- The asset size of the bank has been reduced from $173MM at the end of 2011 to $161MM as of 3/31/12 and is forecasted to be near $150MM (closing of Forsyth; 4 year CD run-off) by the end of 2012. This initiative serves to help the bank's overall capital ratios. The bank's leverage ratio as of 3/31/12 is approximately 5.5% vs. 5.67% at year-end.
- The bank's loan portfolio has been reduced from $125MM at the end of 2010 to $84MM as of 3/31/12. This initiative serves to help reduce the overall risk profile of the bank given our current condition. The reduction in loans on one hand is a very good thing, but it also has an adverse impact on our on-going top line revenue.
- The decision to divest from our Cumming Office was approved and the successful conversion occurred during the weekend of April 21st. This initiative helps reduce the size of the bank (improve capital ratios) and is estimated to save approximately $600M annually in expenses.
- We exercised an option to purchase the Dunwoody Financial Center during the quarter. This initiative will save the bank approximately $75M per year.
- We refinanced a liability with the Federal Home Loan Bank which will help lower our overall funding costs.
- The bank continues to look for ways to reduce expenses without compromising overall progress or soundness. These measures will ultimately allow us to reinvest in other strategic initiatives aimed at improving revenue and the customer experience.
I fully expect the remainder of the year to be a challenging one as the economy continues to recover.
Results of Shareholder Meeting
On Wednesday, May 16, 2012, our annual shareholder meeting was held at our corporate offices in Sandy Springs. Two items were approved by shareholders as of the record date of March 30, 2012. The following serves as a summary:
Election of Directors
- Allen Brock
- Freddie J. Deutsch
- Edward L. Gallup
- R. Terry Smith
- Benjamin A. Wood
- 4,127,659 shares or 72.58% of all shares outstanding voted for the slate of Directors
- 3,500 shares were voted against the slate of Directors
Appointment of Mauldin & Jenkins, LLC as the company's independent auditors for fiscal year 2012
- 4,127,659 shares or 72.58% of all shares outstanding voted for the appointment of Mauldin & Jenkins, LLC
|Signature Bank to focus efforts on SBA Lending with the hiring of Allen R. McCurry |
Please join me in welcoming Allen R. McCurry to the Signature team, effective April 16, 2012, as our new Group Vice President and Small Business Banking Manager. Allen brings over 25 years of banking experience, primarily in the U.S. Small Business Administration ("SBA") area.
As noted the 1st quarter operating results section, the bank needs to improve our top line revenue without taking on additional risk. The SBA program, if done correctly, can be one of those key drivers to improving revenue. For example, the bank closed last month a refinance of an existing loan into a SBA 7A loan. This resulted in a $120M fee for the bank. While home runs such as this are not typical, it does illustrate the opportunity this program can provide us.
Allen is uniquely qualified to lead us in this area. He possesses experience working for the SBA, as a paralegal; credit administrator (monitoring of SBA portfolio); SBA Business Development Officer for various community banks in Atlanta and mostly recently (2009) serving as a Small Business Consultant/SBA Broker. Allen is a graduate of Appalachain State University with a B.A. in Political Science with a concentration in Pre-Law and holds an MBA from Brenau University. He is a member of NAGGLE (National Association of Government Guaranteed Lenders) and GQLC (Georgia Quality Lenders Circle). Allen and his family live in Marietta.
Additionally, David Perlis will join Allen and I in the Small Business Banking Group. David will play a key role in ensuring the bank's products, services and portfolio management efforts are maximized.
To learn more about the SBA click here
or feel to call Allen at 404-256-7734 or email him
to discuss the SBA program.
|On-going Capital Needs and New Board Members
While the bank successfully raised $1MM in fresh capital in December 2011 from two Board Members and one shareholder, the bank continues to seek capital investments in an effort to bolster regulatory ratios, continue our aggressive approach to reducing problem assets and invest in initiatives to generate stable earnings. Additionally, the bank continues to evaluate all strategic opportunities to enhance shareholder value.
We are also actively looking to expand the number of Directors for our Board. We need seasoned business professionals who have a genuie desire to help move the bank forward. Such appointments are subject to regulatory approvals, along with a capital investment.
If you have an interest or know someone who might be interested, please call me at 770-206-5360 or email me.
The Georgia Bankers Association just released its Georgia Banking Update as of May 2012. The report is attached here.
New Website and Products on the way
Over the next several weeks, the bank will be introducing several new technologies and product enhancements aimed at helping us deliver our brand of personalized banking to our customers and prospects. The following is a summary of the enhancements:
- Redesigned Website
- New Landing Pages for on-line banking
- Mobile Banking
- Mobile Capture-4th quarter
- Mortgage origination
The bank is currently evaluating the introduction of a rewards checking/ debit product.
Tammie Vivian named new Investor Relations Representative
Should you have any shareholder related questions, please free to contact Tammie at 404-256-7724 or email her.