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Signature Bank (Proposed)

FEDERAL DEPOSIT INSURANCE CORPORATION

IN RE: Signature Bank (Proposed)
New York, New York
Application for Federal Deposit Insurance (Bank Insurance Fund)

ORDER

The undersigned, acting on behalf of the Board of Directors pursuant to delegated authority, has fully considered all available facts and information relevant to the factors of Section 6 of the Federal Deposit Insurance Act and relating to the application for Federal deposit insurance, with membership in the Bank Insurance Fund, for Signature Bank, a proposed new state nonmember bank to be located at 565 Fifth Avenue, 12th Floor, New York, New York County, New York, ("Bank") and has concluded that the application should be approved.

Accordingly, it is hereby ORDERED, for the reasons set forth in the attached Statement, that the application submitted by the Bank for Federal deposit insurance be, and the same hereby is, approved subject to the following conditions:

1. That beginning paid-in capital funds of not less than $42,500,000 be provided, of which not less than $12,750,000 shall be allocated to common stock and $29,750,000 to surplus;

2. That the Tier 1 capital to assets leverage ratio be maintained at not less than eight percent throughout the first three years of operation and that an adequate Allowance for Loan and Lease Losses be provided;

3. That the Bank shall operate within the parameters of the business plan submitted to the FDIC. Furthermore, during the first three years of operations, the Bank shall notify the New York Regional Director of any proposed major deviation or material change from the submitted plan 60 days before the consummation of the change;

4. That any changes in proposed management or proposed ownership (10 percent or more of stock including new acquisitions of or subscriptions to 10 percent or more of the stock) will render this commitment null and void unless any such change in proposed management or proposed ownership is approved by the New York Regional Director prior to opening the bank;

5. That Federal deposit insurance shall not become effective unless and until the applicant has been established as a state bank (not a member of the Federal Reserve System), that it has authority to conduct a banking business, and that its establishment and operation as a bank have been fully approved by the appropriate State authority;

6. That until the conditional commitment herein granted becomes effective, the FDIC retains the right to alter, suspend or withdraw its commitment should any interim development be deemed to warrant such action;

7. That the Bank will have adequate fidelity coverage;

8. That the Bank will obtain an audit of its financial statements by an independent public accountant annually for at least the first three years after deposit insurance is effective, furnish a copy of any reports by the independent auditor (including any management letters) to the appropriate FDIC Regional Director within 15 days after their receipt by the depository institution and notify the appropriate FDIC Regional Director within 15 days when a change in its independent auditor occurs;

9. That the Bank adopt an accrual accounting system; and

10. That if Federal deposit insurance has not become effective within twelve months from the date of this ORDER, or unless, in the meantime, a request for an extension of time has been approved by the FDIC, the consent granted shall expire at the end of the said twelve-month period.

Dated at Washington, D.C. this 3 rd day of April, 2001.

By:________________________________
John M. Lane
Associate Director
Division of Supervision


IN RE: Signature Bank
New York, New York County, New York
Application for Federal Deposit Insurance (Bank Insurance Fund)

STATEMENT

Pursuant to the provisions of Section 5 of the Federal Deposit Insurance Act (12 U.S.C. 1815), an application for Federal deposit insurance with membership in the Bank Insurance Fund has been filed on behalf of Signature Bank, a proposed new state nonmember bank to be located at 565 Fifth Avenue, 12th Floor, New York, New York County, New York ("Bank").

The Bank will be entirely owned by a newly established holding company Hapoalim U. S. A. Holding Company, Inc., which will be an intermediate holding company established in the United States and wholly-owned by Zohar Hashemesh Le'Hashkoat Ltd., ("ZHL") an existing Israeli shell holding company. ZHL is owned by Bank Hapoalim B.M., Tel Aviv, Israel. The Bank proposes to operate as a commercial bank that emphasizes relationship banking in the New York City metropolitan area. The Bank will open a main office and have five branches in the New York City area offering banking services through traditional delivery channels. A broad range of deposit products will be offered, as well as direct and indirect mortgage and consumer loans.

Investment in fixed assets is reasonable, capital is strong, future earnings prospects and the ability to meet the convenience and needs of the community are favorable, and management is considered satisfactory. Corporate powers to be exercised are consistent with the purpose of the Federal Deposit Insurance Act. No formal objections to this proposal have been filed and no undue risk to the Bank Insurance Fund is apparent.

Accordingly, based upon a careful evaluation of all available facts and information, the Associate Director, pursuant to delegated authority, has concluded that approval of the application is warranted.

ASSOCIATE DIRECTOR
DIVISION OF SUPERVISION
FEDERAL DEPOSIT INSURANCE CORPORATION



Last Updated 03/24/2011 Legal@fdic.gov