Signature Bank announces pricing of subordinated notes
Signature Bank, a New York-based full service commercial bank (the "Bank"), announced the pricing of $375 million aggregate principal amount of fixed-to-floating rate subordinated notes due 2030 (the "notes"). The notes will bear interest at 4.00% per annum, payable semi-annually in arrears on each April 15 and October 15 commencing April 15, 2021 until October 15, 2025.
On October 15, 2025 and thereafter, interest on the notes will accrue at threemonth AMERIBOR plus 389 basis points, paid quarterly in arrears on each January 15, April 15, July 15 and October 15. Proceeds from the sale of the notes will be used for general corporate purposes. The offering of the notes is expected to close on October 6, 2020, subject to customary closing conditions.
The notes will be unsecured and subordinated obligations of the Bank and will rank junior in right of payment to the Bank's obligations to its depositors, its obligations under banker's acceptances and letters of credit, including its obligations to the Federal Deposit Insurance Corporation (the "FDIC"), and its other senior obligations.
The notes will be issued in reliance upon an exemption from registration under Section 3(a)(2) of the Securities Act of 1933, as amended (the "Securities Act"). The notes will not be savings accounts or other deposits and will be neither insured nor guaranteed by the FDIC. The notes have not been and will not be registered under the Securities Act or under the securities laws of any state and the notes may not be offered or sold absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state or other jurisdictions' securities laws.
This press release does not constitute an offer to sell or a solicitation of an offer to buy the notes, nor shall there be any offer, solicitation or sale of any notes in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Signature Bank, member FDIC, is a New York-based full-service commercial bank with 35 private client offices throughout the New York metropolitan area including Connecticut as well as in California and Charlotte, N.C. The Bank's growing network of private client banking teams serves the needs of privately owned businesses, their owners and senior managers.
Signature Bank's specialty finance subsidiary, Signature Financial, LLC, provides equipment finance and leasing. Signature Securities Group Corporation, a wholly owned Bank subsidiary, is a licensed broker-dealer, investment adviser and member FINRA/SIPC, offering investment, brokerage, asset management and insurance products and services.
Signature Bank's revolutionary blockchain-based digital payments platform, Signet™, allows the Bank's commercial clients to make real-time payments in U.S. dollars, 24/7/365, safely and securely, without transaction fees. Signature Bank is the first FDICinsured bank to launch a blockchainbased digital payments 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, the Bank has grown to $60.35 billion in assets, $45.49 billion in loans, $50.23 billion in deposits, $4.86 billion in equity capital and $3.66 billion in other assets under management as of June 30, 2020. Signature Bank's Tier 1 and risk-based capital ratios are above the levels required to be considered well capitalized.
Signature Bank is one of the top 40 largest banks in the U.S., based on deposits ( S&P Global Market Intelligence). Signature Bank is one of the top 40 largest banks in the U.S., based on deposits ( S&P Global Market Intelligence). The Bank recently earned several third-party recognitions, including: appeared on Forbes' Best Banks in America list for the 10th consecutive year in 2020; and, named number one in the Business Bank, Private Bank and Business Escrow Services categories by the New York Law Journal in the publication's annual "Best of" survey for 2020, earning it a place in its Hall of Fame (awarded to companies that have ranked in the "Best of " survey for at least three of the past four years). The Bank also ranked second nationally in the Business Bank, Private Banking Services and Business Escrow Service categories of both the 2019 and 2020 National Law Journal's "Best of" survey.