Signature Bank announced the formation of a new wholly owned subsidiary, Signature Public Funding. The new subsidiary will be based in Maryland and provide municipal finance and tax-exemption lending and leasing products to local governments, school districts, fire and police and other municipal entities.

“This is a market where we see opportunity, and we are confident we are building a team of industry experts to serve its needs,” said Joseph J. DePaolo, Signature Bank president and CEO.

Heading that team of industry experts will be Donald S. Keough, former vice president of SunTrust Equipment Finance & Leasing, who will serve as senior managing director.

Keough will be joined by a familiar face, as Richard C. Cumbers was appointed senior managing underwriter. Cumbers, who has 20 years of experience in the financial services industry, worked with Keough at Sun Trust, where the duo helped lead a team that closed more than $1.2 billion in public finance transactions annually.

“This new venture at Signature Bank is a very exciting one for me and Rich as well as the team we are creating here,” Keough said. “By leveraging Signature Bank’s proven platform and the strength of its reputation coupled with the success of Signature Financial, we are confident in the support we will garner for the tax exempt business and the team we will establish to service the municipal space.”

Finally, Tonia Lee will join the newly formed group as senior documentation officer. She comes from Grant Capital Management, where she was an assistant vice president/senior portfolio manager.