Esquire Financial Holdings, Inc. Reports First Quarter 2026 Results

Rhea-AI Summary

Esquire Financial Holdings (NASDAQ: ESQ) reported Q1 2026 results with net income $12.2M and EPS $1.40. Adjusted net income was $13.8M and adjusted EPS $1.58, excluding $1.6M of elevated noninterest expenses. Total revenue was $40.5M (+19.8%), net interest margin 6.04%, loans totaled $1.82B, and deposits $2.10B. Allowance for credit losses to loans was 1.30%; nonperforming loans totaled $0.7M. Efficiency ratio was 51.1% (adjusted 46.9%). CET1 ratio 14.25%. Quarterly dividend increased 14% to $0.20 per share. The company has filed required merger applications and an S-4 related to the Signature Bancorporation transaction.

Positive

• Total revenue +19.8% to $40.5M
• Average loans +27.0% to $1.77B
• Deposits +24.6% to $2.10B
• Net interest margin of 6.04%
• CET1 ratio of 14.25% (well capitalized)

Negative

• Provision for credit losses increased to $2.7M
• Charge-off of $3.2M tied to foreclosure and OREO sale
• Noninterest expense +23.3% to $20.7M, including $1.3M merger costs

News Market Reaction – ESQ

+4.28%

18 alerts

+4.28% Session close to close

-8.7% Trough in 30 hr 2 min

$1.00B Market Cap

1.2x Rel. Volume

In the Apr 23 session, ESQ gained 4.28%, reflecting a moderate positive market reaction. Argus tracked a trough of -8.7% from its starting point during tracking. Our momentum scanner triggered 18 alerts that day, indicating notable trading interest and price volatility.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement highlights another quarter of strong performance, with Q1 2026 net income of $12.2...

Analysis

This announcement highlights another quarter of strong performance, with Q1 2026 net income of $12.2M, adjusted EPS of $1.58, a resilient 6.04% net interest margin, and growth in loans and deposits to $1.82B and $2.10B. Asset quality remains solid, with only one reported nonperforming loan and a 1.30% allowance ratio. Investors may watch ongoing Signature merger integration, expense trends, and credit metrics as key factors shaping future results.

Key Figures

Q1 2026 net income: $12.2M Diluted EPS: $1.40 Adjusted net income: $13.8M +5 more

8 metrics

Q1 2026 net income $12.2M Quarter ended March 31, 2026; up 7.0% vs Q1 2025

Diluted EPS $1.40 Q1 2026; compared to $1.33 in Q1 2025

Adjusted net income $13.8M Q1 2026, excludes $1.6M elevated noninterest expense net of tax

Net interest margin 6.04% Q1 2026, resilient despite declines in short-term rates

Total revenue $40.5M Q1 2026; increase of $6.7M or 19.8% vs prior-year quarter

Loan portfolio $1.82B Balance at March 31, 2026 after $56.7M linked-quarter growth

Total deposits $2.10B Balance at March 31, 2026; up $39.6M linked-quarter

CET1 ratio 14.25% Common equity tier 1 capital at March 31, 2026

Previous Earnings Reports

5 past events · Latest: Jan 22 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jan 22	Q4/FY 2025 earnings	Positive	+0.7%	Strong Q4 and full-year 2025 growth in earnings, loans and deposits.
Oct 23	Q3 2025 earnings	Positive	+0.9%	Record quarterly net income with industry-leading returns and solid capital.
Jul 24	Q2 2025 earnings	Positive	+1.0%	Strong net income, robust loan and deposit growth, resilient margin.
Apr 24	Q1 2025 earnings	Positive	+2.3%	Double-digit earnings growth, higher revenue, strong efficiency ratio.
Jan 23	Q4/FY 2024 earnings	Positive	-3.2%	Higher Q4 and full-year earnings with strong NIM and balance sheet.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Earnings releases have generally led to modest positive reactions, with one notable negative divergence despite strong results.

Recent Company History

Over the past five earnings cycles, Esquire reported consistently strong results: Q4 2025 net income of $13.5M and full-year 2025 net income of $50.8M, Q3 2025 record net income of $14.1M, and Q2 2025 net income of $11.9M. Earlier quarters showed industry-leading ROA and ROE, resilient net interest margins near 6%, and solid credit metrics. Market reactions around these earnings were typically mildly positive, underscoring steady execution and investor recognition of growth in loans, core deposits, and payment processing volumes.

Key Terms

net interest margin, allowance for credit losses, nonperforming loan, other real estate owned, +4 more

8 terms

net interest margin financial

"Resilient net interest margin of 6.04% driven by our national litigation platform growth"

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

allowance for credit losses financial

"allowance for credit losses to loans ratio of 1.30%, a nonperforming loan totaling $736 thousand"

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

nonperforming loan financial

"a nonperforming loan totaling $736 thousand, and a nonperforming loan to total assets ratio of 0.03%"

A nonperforming loan is a debt where the borrower has stopped making the agreed payments for an extended period or is otherwise unable to meet the loan terms, effectively putting the lender’s expected income at risk. It matters to investors because a rising share of such loans signals higher future losses, lower bank profits and weaker ability to lend — like a group of customers not paying their bills and forcing a store to set money aside for unpaid accounts.

other real estate owned financial

"recorded it as other real estate owned ("OREO"), recorded a charge-off totaling $3.2 million"

Assets a lender or financial firm holds after taking back real property through foreclosure or repossession because a borrower defaulted. Think of it like a store keeping returned items it didn’t sell — these properties are not earning interest, can be costly to maintain, and may be sold at a loss or profit, so they directly affect a lender’s balance sheet, cash flow and perceived credit risk for investors.

IOLTA financial

"despite growth being tempered by anticipated disbursements of escrow/IOLTA funds"

IOLTA stands for Interest on Lawyers’ Trust Accounts, a system where small or short-term client funds that lawyers hold are pooled in special bank accounts and the interest generated is directed to fund legal aid and public legal services. It matters to investors because banks must manage these accounts differently — affecting deposit balances, administrative work and modest interest income — so changes in rules or interest rates can slightly alter a bank’s earnings and compliance costs, like a dedicated charity bucket that shifts cash flow and reporting.

debt service coverage ratio financial

"current weighted average debt service coverage ratio ("DSCR") and an original loan-to-value"

Debt service coverage ratio measures how many times a company's available cash flow can pay its scheduled debt payments (interest plus principal). Think of it like checking how many months of take-home pay it would take to cover your mortgage and loan bills; a higher number means a bigger cushion against missed payments. Investors use it to gauge credit risk, the likelihood of default, and whether a company can afford dividends or new borrowing.

loan-to-value financial

"current weighted average debt service coverage ratio ("DSCR") and an original loan-to-value ("LTV")"

Loan-to-value is the percentage that shows how large a loan is compared with the appraised value of the asset backing it, for example a house or other property. Investors care because a higher percentage means more of the asset’s value is borrowed — like buying a car with almost no down payment — which increases the chance of loss for lenders and can lead to higher interest rates, stricter terms, or greater risk for holders of related securities.

tangible common equity financial

"common equity tier 1 ("CET1") and tangible common equity to tangible assets(2) ("TCE/TA") ratios"

Tangible common equity is the portion of a company’s net worth that belongs to ordinary shareholders after removing intangible items (like goodwill or patents) and any preferred claims; it’s often expressed on a per-share basis. Think of it as the hard, sellable value left for common owners if you removed non-physical assets and paid off debts—investors use it to judge how much real cushion a company has and whether the stock might be under- or over-valued.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

Strong and Consistent Growth, Earnings, and Performance Metrics Coupled with a Focused Integration of Signature Bancorporation, Inc.

JERICHO, N.Y., April 23, 2026 /PRNewswire/ -- Esquire Financial Holdings, Inc. (NASDAQ: ESQ) (the "Company"), the financial holding company for Esquire Bank, National Association ("Esquire Bank" or the "Bank"), (collectively "Esquire") today announced its operating results for the first quarter of 2026. Significant achievements and key performance metrics during the current quarter include:

• Net income increased 7.0% to $12.2 million, or $1.40 per diluted share, as compared to $11.4 million, or $1.33 per diluted share, for the comparable quarter in 2025 despite $1.7 million in elevated pretax noninterest expense related to: (1) merger expenses totaling $1.3 million related to our recently announced acquisition of Signature Bancorporation, Inc. (the parent company of Signature Bank in Chicago, collectively "Signature"); and (2) a $398 thousand charge for accelerated stock compensation related to the previously announced departures of two former Esquire board members for personal reasons. For the current quarter, adjusted⁽¹⁾ net income and diluted earnings per share were $13.8 million and $1.58, respectively, excluding the previously noted $1.6 million in elevated noninterest expense, net of tax.
• Consistent industry leading returns on average assets and equity of 2.10% and 16.82%, respectively, despite the $1.6 million in elevated noninterest expense, net of tax, previously noted, as well as our continued investment in current resources to support future growth and excellence in client service.  For the current quarter, adjusted⁽¹⁾ returns on average assets and equity were 2.37% and 18.96%, respectively, excluding the $1.6 million in elevated noninterest expense, net of tax.
• Resilient net interest margin of 6.04% driven by our national litigation platform growth, despite significant declines in short-term market interest rates from their highs in 2023. Total revenue increased $6.7 million, or 19.8%, to $40.5 million, when compared to the prior year quarter.
• Loan growth on a linked quarter basis was $56.7 million, or 13% annualized, totaling $1.82 billion, despite litigation related loan growth being tempered in the current quarter by anticipated paydowns (totaling $53.1 million) including elevated commercial loan draws from the prior linked quarter.  Loan growth was primarily comprised of both commercial totaling $30.0 million ($44.0 million in litigation related loans) and commercial real estate totaling $23.3 million. Significant average loan growth of $115.6 million, or 28% annualized, on a linked quarter basis was fueled by growth in higher yielding variable rate commercial loans from our national litigation platform. These commercial relationships will continue to create additional opportunities for future loan growth (future draws on existing facilities and additional availability on renewed lines-of-credit) as well as future growth in core deposits through our full-service commercial relationship banking programs and commercial cash management platform on a national basis. To clearly demonstrate this point, law firms or litigation clients that have banked with Esquire for four years or more have a compounded annual growth rate on their loans and related commercial deposit balances of approximately 15% and 30%+, respectively.
• Strong corresponding deposit growth on a linked quarter basis totaling $39.6 million, or 8% annualized, to $2.10 billion, despite growth being tempered by anticipated disbursements of escrow/IOLTA funds from elevated settlement funds in the prior linked quarter. Our cost-of-funds was 1.00% (including demand deposits), consistent with the prior linked quarter. Growth on a linked quarter basis was fueled by our litigation/mass tort related money market settlements nationally. Deposits grew $414.4 million, or 24.6%, when comparing the current quarter to the comparable quarter in 2025 while average total deposits grew $364.2 million, or 21.7%, for the same period. Off-balance sheet ("OBS") sweep funds totaled $1.0 billion, with approximately 33% available for additional on-balance sheet liquidity, while the associated administrative service payments ("ASP") fee income totaled $1.1 million for the current quarter. Additional available liquidity totaled approximately $522 million, excluding cash, OBS sweep funds, and unsecured borrowing capacity.

^{1.See non-GAAP reconciliation provided at the end of this news release.}

• Solid credit metrics, asset quality, and reserve coverage ratios with an allowance for credit losses to loans ratio of 1.30%, a nonperforming loan totaling $736 thousand, and a nonperforming loan to total assets ratio of 0.03%. During the current quarter, Esquire foreclosed on the property securing its one nonaccrual multifamily loan (totaling $7.8 million), recorded it as other real estate owned ("OREO"), recorded a charge-off totaling $3.2 million (consisting of principal and certain costs to perfect its lien), and sold the OREO to an unrelated third party. We have no exposure to commercial office space nor construction/vacant land related loans.
• Stable and consistent noninterest income in the current quarter totaling $6.5 million, or 16% of total revenue, led by our payment processing platform with 93,000 small business clients nationally. Our tech-enabled payments platform allowed us to perform commercial treasury clearing services for $9.7 billion in credit and debit card payment volume, a 4.6% increase from the comparable quarter in 2025, across 137.3 million transactions for our small business clients in all 50 states.
• Strong efficiency ratio of 51.1% for the current quarter, notwithstanding our investments to support future growth, risk management and excellence in client service. Excluding the previously noted $1.7 million in elevated noninterest expense, the adjusted⁽¹⁾ efficiency ratio was 46.9%.
• Consistent industry leading performance, growth, balance sheet strength, and confidence in our long-term outlook has led to an increase in our regular quarterly cash dividends by 14% to $0.20 per share of common stock, marking our fifth consecutive increase for Esquire's stockholders since initiating dividends in 2022.
• Named one of the nation's top-performing community banks by S&P Global Market Intelligence for the second consecutive year based on industry benchmarks including profitability, growth, efficiency and balance sheet strength. The Bank was also named a top 10 merchant acquiring bank by the Nilson Report.
• Strong progress on the Signature merger to date including, but not limited to: filed required regulatory applications; filed Form S-4 with the SEC; engaged a nationally recognized advisory firm to assist with all merger and integration milestones; and conducted several key merger & integration planning sessions with both management teams from Esquire and Signature.
• Strong capital foundation with common equity tier 1 ("CET1") and tangible common equity to tangible assets⁽²⁾ ("TCE/TA") ratios of 14.25% and 12.44%, respectively. The Bank remains well above the bank regulatory "Well Capitalized" standards.

"Coupling our disciplined balance sheet management, unique business model and industry leading growth and performance with a continued investment in resources and technology has served as the catalyst for our transformational strategic acquisition of Signature," stated Tony Coelho, Chairman of the Board. "This merger positions the combined entity for continued, and potentially accelerated, unprecedented future growth and success."

"The Signature merger creates the next foothold in one of the top three largest metro markets by both population and number of contingent fee law firms – the New York, Los Angeles, and Chicago metro areas," stated Andrew C. Sagliocca, Vice Chairman, CEO, and President.  "We are now focused on rolling up our sleeves to ensure a flawless, low-risk integration of Signature's clients and people, while continuing to serve our legacy clients with the dedication they deserve, as well as focusing on our safe and sound growth and performance stakeholders have come to expect from Esquire."

^{1.See non-GAAP reconciliation provided at the end of this news release.
2.The Bank has no recorded intangible assets on the Statement of Financial Condition, and accordingly, GAAP common equity and GAAP assets are equal to tangible common equity and tangible assets.}

First Quarter 2026 vs. 2025

Net income for the quarter ended March 31, 2026 was $12.2 million, or $1.40 per diluted share, compared to $11.4 million, or $1.33 per diluted share for the same period in 2025. Returns on average assets and equity for the current quarter were 2.10% and 16.82%, respectively, compared to 2.39% and 19.13% for the same period of 2025. Excluding after-tax merger expenses of $1.3 million and charges related to accelerated stock compensation of $398 thousand ($291 thousand after-tax), adjusted⁽¹⁾ net income, diluted earnings per share, return on average assets, and return on average common equity were $13.8 million, $1.58, 2.37% and 18.96%, respectively.

Net interest income increased $6.4 million, or 23.2%, to $34.0 million, due to growth in average interest earning assets totaling $403.5 million, or 21.5%, to $2.28 billion, funded with low-cost core deposits from our regional business development teams and existing relationship banking efforts. Our net interest margin increased 8 basis points to 6.04%, led by growth in higher yielding commercial loan production nationally. Average loan yields increased 5 basis points to 7.85% while average loans increased $376.4 million, or 27.0%, to $1.77 billion, with litigation related loan growth totaling $354.6 million, or 42.7%. Loan interest income increased $7.5 million, or 27.9%, to $34.3 million with $7.3 million related to growth in average loan volumes, led by litigation related commercial growth, and $200 thousand due to an increase in average loan rates. Average securities increased $6.6 million, or 2.0%, to $334.5 million with yields increasing 9 basis points to 3.85%. Securities income increased $136 thousand with $63 thousand attributable to average volume increases and $73 thousand attributable to increases in average rate. Average deposits increased $364.2 million, or 21.7%, to $2.04 billion, led by increases in litigation related escrow or IOLTA, commercial money market, and noninterest bearing commercial demand deposits totaling $215.8 million, $96.9 million, and $42.0 million, respectively. Our cost of deposits, including noninterest bearing demand deposits, increased 6 basis points to 1.00% due to changes in deposit composition. Our loan-to-deposit ratio was 86% at March 31, 2026.

The provision for credit losses was $2.7 million for the first quarter of 2026, a $1.2 million increase from the first quarter 2025, primarily due to a $3.2 million charge-off as Esquire foreclosed on the property securing its one nonaccrual multifamily loan (totaling $7.8 million), recorded it as OREO, and sold the OREO to an unrelated third party. As of March 31, 2026, our allowance to loans ratio was 1.30% as compared to 1.37% as of March 31, 2025. The decrease in the allowance as a percentage of loans was a result of management's evaluation of credit risk in our multifamily portfolio subsequent to the above mentioned transaction, which was partially offset by an increase in the general reserve considering loan growth, loan composition, and the current uncertain economic and short-term interest rate environment. Based on management's evaluation of current credit risk in our commercial real estate and commercial portfolios, management believes the allowance for credit losses is adequate at March 31, 2026.

Noninterest income totaled $6.5 million in the current quarter, an increase of $304 thousand from the first quarter of 2025. Payment processing income was $5.1 million for the first quarter of 2026, an increase of $231 thousand from the prior year quarter. Growth in payment processing income has been muted, primarily due to changes in our overall merchant risk profile and merchant composition. Payment processing volumes for the credit and debit card processing platform increased $421.7 million, or 4.6%, to $9.7 billion while transaction volume totaled 137.3 million for the current quarter. We continue to focus on the expansion of merchant sales channels through our current and future ISOs, new merchant originations, active management of our merchant risk profiles, and by expanding our technology and other resources in the payment vertical. The Company utilizes proprietary and industry leading/customized technology to ensure card brand and regulatory compliance, to support multiple processing platforms, to manage daily risk across 93,000 small business merchants in all 50 states, and to perform commercial treasury clearing services for $9.7 billion in volume across 137.3 million transactions in the current quarter. ASP fees totaled $1.1 million, an increase of $257 thousand from the prior year quarter, and are directly impacted by the average balance of OBS sweep funds as well as current short-term market interest rates.

Noninterest expense increased $3.9 million, or 23.3%, to $20.7 million for the first quarter of 2026. This was primarily due to increases in employee compensation and benefits, merger related costs, data processing, advertising and marketing, and occupancy and equipment costs. Employee compensation and benefits costs increased $2.2 million, or 21.4%, primarily due to increases in year-end salaries, employee benefit costs, stock grants and related stock-based compensation, staffing, regional business development officer ("BDO") incentive pay or  sales commissions, and year-end bonuses. The increase in BDO incentive pay is directly correlated to our litigation related/commercial loan and related core commercial deposit growth, attracting full-service commercial banking clients nationally. Due to the departure of two board members for personal reasons, we incurred one time compensation charges related to accelerated stock grant amortization totaling $398 thousand. In connection with the announced merger with Signature, we incurred merger related costs (advisory, legal, accounting, valuation, and other professional or consulting fees, and general administrative costs) of $1.3 million in the first quarter of 2026. Data processing costs increased $449 thousand due to increases in core banking processing volumes and the continued implementation/improvement of technology supporting client relationships and lead acquisition initiatives (CRM platform, digital marketing, business development, and lending) as well as overall risk management across all platforms.

^{1.See non-GAAP reconciliation provided at the end of this news release.}

Advertising and marketing costs increased $147 thousand, as we continued to grow our brand, targeting digital marketing platform, and expand our thought leadership in our national verticals. Occupancy and equipment costs increased $124 thousand due to costs associated with the operation of our Los Angeles branch which opened in late 2025.

The Company's efficiency ratio was 51.1% for the three months ended March 31, 2026, as compared to 49.6% in 2025, notwithstanding our continued investment in resources (both technology and people) to support future growth, lead acquisition initiatives, excellence in client service, enhanced risk management, and costs associated with our flagship Los Angeles branch. The adjusted⁽¹⁾ efficiency ratio was 46.9% excluding the previously noted $1.7 million in elevated noninterest expense in the current quarter.

The effective tax rate was 28.6% for the first quarter of 2026, as compared to 26.5% in the prior year quarter. The increase in the current quarter was primarily due to the impact of non-deductible merger related costs.

Asset Quality

At March 31, 2026, we had one nonperforming loan totaling $736 thousand, with no exposure to commercial office or construction/vacant land related borrowers, and $13.9 million in performing loans to the hospitality industry. The allowance for credit losses was $23.5 million, or 1.30% of total loans, as compared to $19.5 million, or 1.37% of total loans at March 31, 2025. The ratio of nonperforming loans to total loans and total assets was 0.04% and 0.03%, respectively, at March 31, 2026. During the quarter, Esquire foreclosed on the property securing its one nonaccrual multifamily loan (totaling $7.8 million), recorded it as OREO, recorded a charge-off totaling $3.2 million (consisting of principal and certain costs to perfect its lien), and sold the OREO to an unrelated third party. Based on management's evaluation of current credit risk in our commercial real estate and commercial portfolios as well as increases in the general reserves considering loan growth, loan composition, and the current uncertain economic and short-term interest rate environment, management believes the allowance for credit losses is adequate at March 31, 2026.

From a credit risk management perspective, the commercial real estate portfolio totaled $503.4 million and has a current weighted average debt service coverage ratio ("DSCR") and an original loan-to-value ("LTV") (defined as unpaid principal balance as of March 31, 2026 divided by appraised value at origination) of approximately 1.61 and 56%, respectively. When further evaluating this population, loans with below current market rates maturing in (1) less than one year totaled $66.8 million and had a current weighted average DSCR and an original LTV of approximately 1.38 and 66%, respectively; and (2) one to two years totaled $29.2 million and had a current weighted average DSCR and an original LTV of approximately 1.29 and 69%, respectively.

Balance Sheet – March 31, 2026 vs. 2025

At March 31, 2026, total assets increased $466.7 million, or 23.9%, to $2.42 billion. This increase was primarily attributable to growth in loans totaling $399.2 million, or 28.2%, to $1.82 billion. Our higher yielding variable rate commercial loans increased $341.4 million, or 36.5%, to $1.28 billion with commercial litigation related loans increasing $386.9 million, or 46.3%, to $1.22 billion. Our commercial relationship banking sales pipeline remained robust, anchored by our regional senior BDOs (supported by commercial lending, risk, and operations) located in key markets throughout the U.S. who have significantly expanded our participation in local, state, and national trial associations nationally. These BDOs are supported by our best-in-class technology stack including, but not limited to; our proprietary CRM system, digital marketing cloud and lending based technology built on Salesforce supporting client relationships and lead acquisition initiatives; account-based digital marketing (or "ABM") with significant thought leadership content; and artificial intelligence (or "AI") for advanced data analytics across our platform powering personalized and real-time ABM content to both current clients and prospective clients. Our available-for-sale securities portfolio increased $21.1 million to $258.0 million from purchases totaling $77.3 million, offsetting portfolio amortization totaling $59.2 million. Our held-to-maturity securities portfolio totaled $58.3 million, a decrease of $8.4 million, due to portfolio amortization. Our total securities to assets ratio was 13% at March 31, 2026.

^{1.See non-GAAP reconciliation provided at the end of this news release.}

The following table provides information regarding the composition of our loan portfolio for the periods presented:

		March 31,						December 31,						March 31,
		2026						2025						2025
		(Dollars in thousands)
Real estate:
Multifamily		$	389,000		21.4	%		$	372,800		21.2	%		$	364,877		25.8	%
Commercial real estate			114,357		6.3				107,293		6.1				86,797		6.1
1 – 4 family			9,034		0.5				9,835		0.6				10,974		0.8
Total real estate			512,391		28.2				489,928		27.9				462,648		32.7
Commercial:
Litigation related			1,222,337		67.4				1,178,325		67.0				835,415		59.0
Other			53,208		2.9				67,230		3.8				98,726		7.0
Total commercial			1,275,545		70.3				1,245,555		70.8				934,141		66.0
Consumer			26,812		1.5				22,762		1.3				18,705		1.3
Total loans held for investment		$	1,814,748		100.0	%		$	1,758,245		100.0	%		$	1,415,494		100.0	%
Deferred loan fees and unearned premiums, net			342						182						364
Loans, held for investment		$	1,815,090					$	1,758,427					$	1,415,858

Total deposits were $2.10 billion as of March 31, 2026, a $414.4 million, or 24.6%, increase from March 31, 2025 due to a $212.4 million, or 22.1%, increase in litigation related escrow or IOLTA, a $170.7 million, or 97.0% increase in money market deposits (primarily commercial), and a $22.4 million, or 4.3%, increase in noninterest bearing commercial demand deposits. Our deposit strategy primarily focuses on developing full service commercial banking relationships nationally with our clients through commercial lending facilities, payment processing, and other unique commercial cash management services in our two national verticals, rather than competing with other institutions on rate. Our longer duration IOLTA, escrow and settlement deposits represent $1.17 billion, or 55.8%, of total deposits. As of March 31, 2026, uninsured deposits were $623.0 million, or 30%, of our total deposits, excluding $17.9 million of the Company's deposits held at the Bank. Approximately 70% of our uninsured deposits represent clients with full commercial relationship banking with us including, but not limited to, commercial loans, payment processing, and various commercial service-oriented relationships including law firm operating accounts, law firm IOLTA/escrow accounts, merchant reserves, ISO reserves, ACH processing, and custodial accounts.

Due to the nature of our larger mass tort and class action settlements related to the litigation vertical, we participate in FDIC insured sweep programs as well as treasury secured money market funds. As of March 31, 2026, OBS sweep funds totaled approximately $1.00 billion, with approximately $330.4 million, or 33.0%, available to be swept on balance sheet as reciprocal client relationship deposits. Our core low-cost deposit growth and off-balance sheet client funds continue to clearly demonstrate our highly efficient, full service commercial relationships and tech-enabled cash management platform.

At March 31, 2026, we had the ability to borrow, on a secured basis, up to $475.1 million from the FHLB of New York and $46.5 million from the FRB of New York discount window. No borrowing amounts were outstanding during the first quarter of 2026. Historically, we have not leveraged our balance sheet to generate earnings and have always utilized core client deposits to fund our asset growth and related earnings.

Stockholders' equity increased $50.5 million to $301.3 million as of March 31, 2026, primarily driven by net increases in retained earnings (net income less dividends paid to shareholders), and to a lesser extent, additional paid-in-capital from share-based compensation and decreases in other comprehensive losses related to net unrealized gains in our available-for-sale securities portfolio.

The Bank remains well above bank regulatory "Well Capitalized" standards.

About Esquire Financial Holdings, Inc.

Esquire Financial Holdings, Inc. is a financial holding company headquartered in Jericho, New York. Its wholly owned subsidiary, Esquire Bank, is a full-service commercial bank, with branch offices in Jericho, New York and Los Angeles, California, as well as an administrative office in Boca Raton, Florida. The Bank is dedicated to serving the financial needs of the litigation industry and small businesses nationally, as well as commercial and retail customers in the New York and Los Angeles metropolitan areas. The Bank offers tailored financial and payment processing solutions to the litigation community and their clients as well as dynamic and flexible payment processing solutions to small business owners. For more information, visit www.esquirebank.com.

Cautionary Note Regarding Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 relating to future results of the Company. Forward-looking statements are subject to many risks and uncertainties, including, but not limited to: changes in business plans as circumstances warrant; changes in general economic, business and political conditions, including changes in the financial markets; the ability to complete, or any delays in completing, the pending merger between the Company and Signature Bancorporation, Inc.; any failure to realize the anticipated benefits of the transaction when expected or at all; certain restrictions during the pendency of the transaction that may impact the Company's ability to pursue, certain business opportunities or strategic transactions; the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events, diversion of management's attention from ongoing business operations and opportunities; potential adverse reactions or changes to business or employee relationships, including those resulting from the completion of the merger and integration of the companies and other risks detailed in the "Cautionary Note Regarding Forward-Looking Statements," "Risk Factors" and other sections of the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission. The forward-looking statements included in this press release are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "might," "should," "could," "predict," "potential," "believe," "expect," "attribute," "continue," "will," "anticipate," "seek," "estimate," "intend," "plan," "projection," "goal," "target," "aim," "would," "annualized" and "outlook," or similar terminology. Any forward-looking statements presented herein are made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise, except as may be required by law.

ESQUIRE FINANCIAL HOLDINGS, INC. Consolidated Statement of Condition (unaudited) (dollars in thousands except per share data)
		March 31,			December 31,			March 31,
		2026			2025			2025
ASSETS
Cash and cash equivalents		$	222,221		$	235,887		$	173,041
Securities available-for-sale, at fair value			257,994			246,505			236,919
Securities held-to-maturity, at cost			58,312			60,193			66,736
Securities, restricted at cost			3,173			3,173			3,034
Loans, held for investment			1,815,090			1,758,427			1,415,858
Less: allowance for credit losses			(23,540)			(24,022)			(19,461)
Loans, net of allowance			1,791,550			1,734,405			1,396,397
Premises and equipment, net			4,189			4,379			3,328
Other assets			83,716			81,119			74,982
Total Assets		$	2,421,155		$	2,365,661		$	1,954,437
LIABILITIES AND STOCKHOLDERS' EQUITY
Demand deposits		$	545,891		$	576,455		$	523,441
Savings, NOW and money market deposits			1,542,293			1,480,380			1,158,748
Certificates of deposit			14,384			6,172			5,931
Total deposits			2,102,568			2,063,007			1,688,120
Other liabilities			17,320			13,056			15,593
Total liabilities			2,119,888			2,076,063			1,703,713
Total stockholders' equity			301,267			289,598			250,724
Total Liabilities and Stockholders' Equity		$	2,421,155		$	2,365,661		$	1,954,437
Selected Financial Data
Common shares outstanding			8,637,034			8,552,405			8,431,774
Book value per share		$	34.88		$	33.86		$	29.74
Equity to assets			12.44	%		12.24	%		12.83	%
Capital Ratios (1)
Tier 1 leverage ratio			11.85	%		11.87	%		12.01	%
Common equity tier 1 capital ratio			14.25			14.18			15.24
Tier 1 capital ratio			14.25			14.18			15.24
Total capital ratio			15.48			15.43			16.49
Asset Quality
Nonperforming loans		$	736		$	8,572		$	8,000
Allowance for credit losses to total loans			1.30	%		1.37	%		1.37	%
Nonperforming loans to total loans			0.04			0.49			0.57
Nonperforming assets to total assets			0.03			0.36			0.41
Allowance to nonperforming loans			3,198			280			243

^{1.Regulatory capital ratios presented on bank-only basis. The Bank has no recorded intangible assets on the Statement of Financial Condition, and accordingly, tangible common equity is equal to common equity.}

ESQUIRE FINANCIAL HOLDINGS, INC. Consolidated Income Statement (unaudited) (dollars in thousands except per share data)
		Three Months Ended
		March 31,			December 31,			March 31,
		2026			2025			2025
Interest income		$	39,033		$	38,237		$	31,513
Interest expense			5,029			4,958			3,904
Net interest income			34,004			33,279			27,609
Provision for credit losses			2,700			2,900			1,500
Net interest income after provision for credit losses			31,304			30,379			26,109
Noninterest income:
Payment processing fees			5,143			5,127			4,912
Other noninterest income			1,312			992			1,239
Total noninterest income			6,455			6,119			6,151
Noninterest expense:
Employee compensation and benefits			12,221			11,181			10,065
Merger expenses			1,272			171			—
Other expenses			7,164			7,712			6,683
Total noninterest expense			20,657			19,064			16,748
Income before income taxes			17,102			17,434			15,512
Income taxes			4,891			3,966			4,105
Net income		$	12,211		$	13,468		$	11,407
Earnings Per Share
Basic		$	1.48		$	1.66		$	1.43
Diluted			1.40			1.55			1.33
Basic - adjusted (1)			1.67			1.68			1.43
Diluted - adjusted (1)			1.58			1.57			1.33
Selected Financial Data
Return on average assets			2.10	%		2.36	%		2.39	%
Return on average equity			16.82			18.90			19.13
Adjusted return on average assets (1)			2.37			2.39			2.39
Adjusted return on average equity (1)			18.96			19.14			19.13
Net interest margin			6.04			6.05			5.96
Efficiency ratio			51.1			48.4			49.6
Adjusted efficiency ratio (1)			46.9			48.0			49.6
Cash dividends paid per common share		$	0.200		$	0.175		$	0.175
Weighted average basic shares			8,252,720			8,131,450			7,988,999
Weighted average diluted shares			8,700,319			8,703,436			8,601,607

 

ESQUIRE FINANCIAL HOLDINGS, INC. Consolidated Average Balance Sheets and Average Yield/Cost (unaudited) (dollars in thousands)
		Three Months Ended
		March 31,								December 31,								March 31,
		2026								2025								2025
		Average						Average		Average						Average		Average						Average
		Balance			Interest			Yield/Cost		Balance			Interest			Yield/Cost		Balance			Interest			Yield/Cost
INTEREST EARNING ASSETS
Loans, held for investment		$	1,771,003		$	34,298		7.85	%	$	1,655,408		$	33,165		7.95	%	$	1,394,602		$	26,810		7.80	%
Securities, includes restricted stock			334,459			3,178		3.85	%		334,409			3,185		3.78	%		327,838			3,042		3.76	%
Interest earning cash and other			176,268			1,557		3.58	%		193,861			1,887		3.86	%		155,768			1,661		4.32	%
Total interest earning assets			2,281,730			39,033		6.94	%		2,183,678			38,237		6.95	%		1,878,208			31,513		6.80	%
NONINTEREST EARNING ASSETS			74,655								77,334								60,877
TOTAL AVERAGE ASSETS		$	2,356,385							$	2,261,012							$	1,939,085
INTEREST BEARING LIABILITIES
Savings, NOW, Money Market deposits		$	1,458,983		$	4,957		1.38	%	$	1,334,666		$	4,904		1.46	%	$	1,134,099		$	3,784		1.35	%
Time deposits			8,148			67		3.33	%		6,085			53		3.46	%		10,806			119		4.47	%
Total interest bearing deposits			1,467,131			5,024		1.39	%		1,340,751			4,957		1.47	%		1,144,905			3,903		1.38	%
Borrowings			372			5		5.45	%		42			1		9.45	%		43			1		9.43	%
Total interest bearing liabilities			1,467,503			5,029		1.39	%		1,340,793			4,958		1.47	%		1,144,948			3,904		1.38	%
NONINTEREST BEARING LIABILITIES
Demand deposits			577,194								617,153								535,182
Other liabilities			17,305								20,336								17,142
Total noninterest bearing liabilities			594,499								637,489								552,324
Stockholders' equity			294,383								282,730								241,813
TOTAL AVG. LIABILITIES AND EQUITY		$	2,356,385							$	2,261,012							$	1,939,085
Net interest income					$	34,004							$	33,279							$	27,609
Net interest spread								5.55	%							5.48	%							5.42	%
Net interest margin								6.04	%							6.05	%							5.96	%
Deposits (including noninterest bearing demand deposits)		$	2,044,325		$	5,024		1.00	%	$	1,957,904		$	4,957		1.00	%	$	1,680,087		$	3,903		0.94	%

ESQUIRE FINANCIAL HOLDINGS, INC.
Consolidated Non-GAAP Financial Measure Reconciliation (unaudited)
(dollars in thousands except per share data)

We believe that these non-GAAP financial measures provide information that is important to investors and that is useful in understanding our financial position, results and ratios. However, these non-GAAP financial measures are supplemental and are not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for this measure, this presentation may not be comparable to other similarly titled measures by other companies.

Adjusted net income, which is used to compute adjusted return on average assets, adjusted return on average equity and adjusted earnings per share, excludes the impact of merger expenses and accelerated stock compensation, net of tax.

	Three Months Ended
	March 31,			December 31,			March 31,
	2026			2025			2025
Net income – GAAP	$	12,211		$	13,468		$	11,407
Adjustments to net income:
Merger expenses		1,272			171			—
Accelerated stock compensation		398			—			—
Income tax effect of adjustments		(120)			—			—
Adjusted net income	$	13,761		$	13,639		$	11,407
Return on average assets – GAAP		2.10	%		2.36	%		2.39	%
Adjusted return on average assets		2.37	%		2.39	%		2.39	%
Return on average equity – GAAP		16.82	%		18.90	%		19.13	%
Adjusted return on average equity		18.96	%		19.14	%		19.13	%
Diluted earnings per share – GAAP	$	1.40		$	1.55		$	1.33
Adjusted diluted earnings per share	$	1.58		$	1.57		$	1.33

The following table presents a reconciliation of efficiency ratio (non-GAAP) and adjusted efficiency ratio (non-GAAP).

Adjusted noninterest expense, which is used to compute the adjusted efficiency ratio, excludes the impact of merger expenses and accelerated stock compensation.

	Three Months Ended
	March 31,			December 31,			March 31,
	2026			2025			2025
Efficiency ratio – non-GAAP(1)		51.1	%		48.4	%		49.6	%
Noninterest expense – GAAP	$	20,657		$	19,064		$	16,748
Less: merger expenses		1,272			171			—
Less: accelerated stock compensation		398			—			—
Adjusted noninterest expense – non-GAAP	$	18,987		$	18,893		$	16,748
Net interest income – GAAP		34,004			33,279			27,609
Noninterest income – GAAP		6,455			6,119			6,151
Total revenue – GAAP	$	40,459		$	39,398		$	33,760
Adjusted efficiency ratio – non-GAAP(2)		46.9	%		48.0	%		49.6	%

^{1.The reported efficiency ratio is a non-GAAP measure calculated by dividing GAAP noninterest expense by the sum of GAAP net interest income and GAAP noninterest income.
2.The adjusted efficiency ratio is a non-GAAP measure calculated by dividing adjusted noninterest expense by the sum of GAAP net interest income and GAAP noninterest income.}

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/esquire-financial-holdings-inc-reports-first-quarter-2026-results-302751039.html

SOURCE Esquire Financial Holdings, Inc.

FAQ

What were Esquire Financial (ESQ) Q1 2026 earnings and adjusted EPS?

Esquire reported net income $12.2M and EPS $1.40. According to the company, adjusted net income was $13.8M and adjusted diluted EPS was $1.58, excluding elevated merger and related noninterest expenses.

How large are Esquire Financial's (ESQ) loan and deposit balances at March 31, 2026?

Esquire had loans totaling $1.82B and deposits of $2.10B at quarter-end. According to the company, average loans grew 27.0% year over year and deposits increased 24.6% versus Q1 2025.

What did Esquire (ESQ) report for net interest margin and payment processing volume?

Net interest margin was reported at 6.04% for Q1 2026. According to the company, payment processing volume reached $9.7B across 137.3 million transactions, supporting payment income of $5.1M.

What credit quality metrics did Esquire Financial (ESQ) report for Q1 2026?

Allowance for credit losses to loans was 1.30% and nonperforming loans totaled $736K. According to the company, a $3.2M charge-off was recorded related to foreclosure and subsequent OREO sale.

What is the status of Esquire's (ESQ) merger with Signature Bancorporation and capital position?

Esquire has filed required regulatory applications and a Form S-4 in connection with the Signature merger. According to the company, CET1 was 14.25% and TCE/TA was 12.44%, remaining above well-capitalized thresholds.