2 0 1 8 A N N U A L R E P O R T

m mentumm mentumDriven by the Gold Standard

1

m mentum

$812$777

$712$678

$646$592

$555$508

$452$416

$352

$312

$267

million

million

million

million

million

million

millionmillion

million

million

million

million

million

$914millionin assets

2 018 A N N U A L R E P O R T

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For years, it’s been building and building. Small successes have grown into bigger ones. Employees who realize the impact of their extra efforts. Clients and shareholders who show their appreciation through repeat business and regular referrals.

This year all of our successes from the past have come together to create a special feeling at our bank. An unstoppable momentum. Our moments to shine are plentiful. For that, we are happily, and humbly, grateful.

You can especially see it in the teamwork of a staff who understand their roles, share in a common goal, and really enjoy working together for our clients’ successes.

Our employees recognize that every point of interaction is a potential “Gold Standard Moment” in the making. These are the moments that have carried us through each day and each year since our beginning in 2002. Seventeen years and $914 Million in assets later, it is truly inspiring how our Signature Service provides the momentum for continued success.

From a warm greeting on the phone or at the bank, to new loans and deposits, every client interaction is part of the bigger picture. When talented employees are completely committed to our clients, it feels like anything is possible.

Each Gold Standard effort leads to the next, and our growing assets, deposits and loans are products of our high level of service. For the 17th 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 $102 Million in 2018, climbing to $914 Million. A stronger economy has contributed to increased loan demand and solid deposit growth for the bank. Total loans grew by $69 Million, and our deposits grew by $91 Million.

Our net income grew by over 50% in 2018 compared to 2017, totaling $12.1 Million. The reduction in our corporate tax rate was the primary reason for the large increase in our net income. Additionally, a favorable interest rate environment enabled us to expand our net interest margin to 3.78%. Lower taxes and the increased margin resulted in our highest ROA and ROE in the history of the bank at 1.41% and 13.54% respectively.

The growth in our balance sheet, and the strong earnings performance led to an increase in our stock value of $14 per share reaching $117 per share (Based on an independent valuation by ProBank Austin Inc.). The price appreciation, combined with the cash dividend of $1.50 per share, yielded a total return on your investment of 15% in 2018.

For our shareholders, our clients and our employees, we have but one simple wish: Let’s keep a great thing going. Let’s continue this rewarding journey with sound local decisions and a continued enthusiasm for seeing each other achieve great success. We thank each and every one of you for what you have done in the past and what you will contribute in the future.

As we’ve shown since day one, we have the drive to make it happen, and now we have 17 years of momentum pushing us forward towards another successful year.

Richard J. BrunnerCHAIRMAN & CHIEF EXECUTIVE OFFICER

David A. ReedPRESIDENT

2 0 1 8 A N N U A L R E P O R T

m mentum

Each Gold Standard effort leads to the next, and our growing assets, deposits and loans are

products of our high level of service.

M A R K E T V A L U Eprice per share

2014 2015 2016 2017 2018

$73.00$66.00

$83.00

$103.00

$117.00

N E T I N C O M E$ in thousands

2014 2015 2016 2017 2018

6,9417,900 8,052

12,094

6,207

T O T A L L O A N S$ in millions

563

618

650708

777

2014 2015 2016 2017 2018

599626

696

723

814

2014 2015 2016 2017 2018

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

$ in millions

678

777812

914

2014 2015 2016 2017 2018

T O T A L A S S E T S

712

4

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

2018 2017 2016

R E S U L T S O F O P E R A T I O N S Interest Income $36,079 $30,441 $27,630 Interest Expense $4,355 $2,801 $2,373 Net Interest Income $31,724 $27,640 $25,257 Provision for Loan Losses $910 $390 $360 Non-Interest Income $1,613 $1,459 $1,369 Non-Interest Expense $17,137 $15,024 $14,561 Pre-Tax Income $15,290 $13,685 $11,705 Income Tax Expense $3,196 $5,633 $3,805 Net Income $12,094 $8,052 $7,900

P E R I O D E N D T O T A L STotal Assets $913,821 $812,203 $777,646 Total Loans $776,920 $708,071 $650,236 Allowance for Loan Losses $8,516 $7,311 $7,044 Total Deposits $814,350 $723,478 $696,121 Stockholders’ Equity $97,137 $86,553 $79,397

P E R S H A R E D A T ABasic Earnings $8.71 $5.85 $5.79Fully Diluted Earnings $8.57 $5.78 $5.72Book Value $69.78 $62.64 $58.09 Market Value1 $117.00 $103.00 $83.00

P E R F O R M A N C E R A T I O SReturn on Average Assets 1.41% 0.99% 1.03%Return on Average Equity 13.54% 9.70% 10.40%Net Interest Margin 3.78% 3.47% 3.36%Efficiency Ratio 51.09% 51.45% 54.69%

A S S E T Q U A L I T Y R A T I O SNon-Performing Assets/OREO to Loans 0.05% 0.08% 0.03%Net Charge-Offs to Average Loans -0.04% 0.02% 0.01%Allowance for Loan Losses to Loans 1.10% 1.03% 1.08%

C A P I T A L R A T I O STotal Risk-Based Capital 12.6% 12.2% 12.1%Tier 1 Risk-Based Capital 11.5% 11.2% 11.1%Tier 1 Leverage Capital 10.7% 10.3% 10.0%

Financials2018

52 0 1 8 A N N U A L R E P O R T

m mentum

shareholder value

teamwork

continuous improvement

local decisions

collective success

community support

A SharedCommitment

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Barbara A. Berebitsky Executive Vice President

Richard J. BrunnerChairman & CEO

David A. ReedPresident

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

John J. Gorski President and CEO;NAMSA

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 OF DIRECTORS

MANAGEMENT TEAM

72 0 1 8 A N N U A L R E P O R T

m mentum

forward thinking

timely solutions

a friendly ‘hello’

client satisfaction

efficient operations

online advancements

Driven by theGold Standard

Driven by the

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O U R T E A M

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John H. AchingerCourier Driver

Kimberly M. AchingerLending Coordinator

Julie A. AlbringOfficer – Deposit Operations

Esther A. AmelingLoan Documentation Specialist

Melissa K. AndersonPortfolio Administrator

Delaney E. AosseyProof/Lockbox 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

Beth L. CharvatAssistant Vice President – Client Development

Tyler L. ClaytonAssistant Mgr – Courier / Transaction Coordinator

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

Kenneth L. DubendorferCourier Driver

Beth A. DunsmoorDeposit Operations Coordinator

Eugene T. EnglishCredit Analyst

Nancy L. FeltzVice President – Credit Administration

Amy L. FleckAdministrative Office Manager

Chad T. FrankOfficer – Compliance

Krystal A. Freyre-MartinezLockbox / Transaction Coordinator

Lauren A. FrickElectronic Banking Coordinator

Alison K. FryeVice President – Client Development

Andrea M. GibbonsVice President – Client Development

Shane A. GibsonAssistant Vice President – Corporate Controller

Andrew R. GoeckermanCredit Analyst

Jeremy T. GryczaVice President – Information Technology

Nicholas W. HarrisTechnical Support Coordinator

LaVonna A. HicksTransaction Coordinator

Jami M. HillACH / Wire Transfer Coordinator

Alex W. HinzCourier Manager

Philip M. HoltzACH / Wire Transfer Coordinator

Susan K. HughesLoan Documentation Specialist

Roy W. HutcheisonOfficer – Client Development

Stacey M. HutkaLockbox / Transaction Coordinator

Aaron E. IfflandTransaction Coordinator

Craig A. JablonskiVice President – Deposit Operations

Sudesh K. JindalTransaction Coordinator

Judy S. KameleskyTelephone Receptionist

Joseph P. KarchCourier Driver

Padma KaurDatabase Programmer

Kristine KegerreisVice President – Client Development

Kylee E. KeisterTransaction Coordinator

Carol KimballLoan Operations Manager

Jessica N. KochAdministrative Assistant

M. JoAnn KowalewskiLoan Operations Clerk

Emily M. KrewsonLockbox / Proof Coordinator

Kimberlee R. LarbergVice President – Client Development

Jenny M. LatendresseOfficer – Client Development

Nathan J. LattaNetwork Administrator

Shannon M. LeamonProject Coordinator – Operations

Steven D. LeamyVice President – Client Development

Debora A. LeslieAccounting Clerk

Kathi L. LykeExecutive Administrator

Rebecca J. MannLockbox/Assistant Transaction Coordinator

O U R T E A M

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Kenneth W. MasonCourier Driver

Leah M. McCroryACH / Wire Transfer Coordinator

Hatcher W. McManusOperations Specialist

William C. McNealOfficer – Client Development

Aaron M. McVickerTechnical Support Coordinator

Carl R. MillerCourier Driver

Melanie K. MooreCard Services Coordinator

Michelle L. MorawskiCard Services Coordinator

Susan MorganSenior Vice President – Client Development

Sandra L. MylanderAccounting Associate

Diana L. NewlandLockbox Coordinator

Richard W. NewlandCourier Driver

Kevin M. OlanderLockbox / Proof Coordinator

Thomas J. PalmerCourier Driver

Frederick W. PeaseCourier Driver

Dan W. PennywittCourier Driver

Samuel M. PerryAccounting Associate

Kristin M. PersianiDeposit Services Coordinator

Stephanie K. PetersenClient Service Representative

Pamela D. PiddockTelephone Receptionist

Brian C. ReidVice President – Client Development

Mark K. RennelsCourier Driver

Erika L. RizzoOfficer – Client Development

Spencer C. RogersCourier Driver

Christopher A. RohrsElectronic Banking Coordinator

Shanaz C. RomstadtOfficer – Item Processing

Ronald C. RoushCourier Driver

Lori B. Schoch-MannAssistant Vice President – Human Resources

Alan SchoryTechnical Support Coordinator

Joshua J. SchuylerVice President – Client Development

Emily M. SchwabElectronic Banking Coordinator

Kimberly A. ShafferVice President – Credit Administration

Barbara A. ShounConcierge/Receptionist

Cody M. ShulakTransaction Coordinator

Tiffany J. SmithSenior Transaction Coordinator

Jordan E. SpellisCredit Analyst

Patty M. StambaughDeposit Services 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

James TuckerDeposit Services Coordinator

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

Christopher A. WelencOfficer – Operations

Andrew S. WenlandClient Development Representative

Thomas B. WeisCourier Driver

Lisa M. WillfordLead Programmer / Analyst

Brandon M. Wilson Assistant Vice President – Electronic Banking

Shelby L. WinzelerLockbox / Transaction Coordinator

Shelly A. WoodAdministrative Assistant

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

Cinda J. Zuccarell Vice President – Operations

m mentum

safe,

17 years of

sound,

profitable

growth

2 0 1 8 A N N U A L R E P O R T

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