Esquire Financial (NASDAQ: ESQ) delivers Q1 2026 growth with strong credit quality
Rhea-AI Filing Summary
Esquire Financial Holdings, Inc. reported higher first quarter 2026 results while advancing its strategic merger with Signature Bancorporation, Inc. Net income for the quarter ended March 31, 2026 was $12.2 million, or $1.40 per diluted share, up from $11.4 million, or $1.33 per diluted share a year earlier.
Net interest income rose $6.4 million, or 23.2%, to $34.0 million, driven by average interest earning assets of $2.28 billion and a net interest margin of 6.04%. Loans held for investment reached $1.81 billion, with litigation related commercial loans of $1.22 billion representing 67.4% of the portfolio. Deposits totaled $2.10 billion, up 24.6% year over year.
Asset quality remained strong, with nonperforming loans of $736 thousand, or 0.04% of total loans, and an allowance for credit losses of $23.5 million, or 1.30% of total loans. The efficiency ratio was 51.1%, or 46.9% on an adjusted basis excluding merger expenses and accelerated stock compensation.
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Insights
Esquire posts solid growth, maintains strong credit, and absorbs merger-related costs.
Esquire Financial delivered first quarter 2026 net income of $12.2 million and diluted EPS of $1.40, while adjusted diluted EPS reached $1.58. Net interest income grew to $34.0 million on a 6.04% net interest margin, reflecting expansion in higher-yielding commercial and litigation-related loans.
Loans held for investment were $1.81 billion, with litigation related balances of $1.22 billion. Deposits increased to $2.10 billion, and off-balance sheet sweep funds totaled about $1.00 billion. Asset quality metrics were strong, with nonperforming loans at 0.04% of total loans and an allowance of 1.30%.
Noninterest expense rose to $20.7 million, including $1.3 million of merger costs and $398 thousand of accelerated stock compensation, pushing the efficiency ratio to 51.1%. Adjusted efficiency of 46.9% indicates underlying cost discipline as the company prepares to integrate Signature Bancorporation, Inc. Future filings may further detail post-merger performance.
8-K Event Classification
Key Figures
Key Terms
net interest margin financial
allowance for credit losses financial
efficiency ratio financial
nonperforming loans financial
IOLTA financial
Earnings Snapshot
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
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Item 2.02Results of Operations and Financial Condition.
On April 23, 2026, Esquire Financial Holdings, Inc. (the “Company”), the holding company for Esquire Bank, National Association (“Esquire Bank”), issued a press release announcing its earnings for the quarter ended March 31, 2026. A copy of the press release is attached as Exhibit 99.1 hereto and incorporated herein by reference.
The information contained in this Item 2.02 and Exhibit 99.1 shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, and shall not be incorporated by reference into any filings made by the Company under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except as expressly set forth by specific reference in such filing.
Item 7.01Regulation FD Disclosure.
Esquire Financial Holdings, Inc. (the “Company”) intends to distribute and make available to investors, and to post on its website, the written presentation attached hereto as Exhibit 99.2. The presentation is furnished in this Current Report on Form 8-K, pursuant to this Item 7.01, as Exhibit 99.2, and is incorporated herein by reference.
The information contained in this Item 7.01 and Exhibit 99.2 shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, and shall not be incorporated by reference into any filings made by the Company under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except as expressly set forth by specific reference in such filing.
Item 9.01Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. | Description | |
99.1 | Press Release dated April 23, 2026. | |
99.2 | Written presentation to be distributed and made available to investors and posted on the Company’s website. | |
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
ESQUIRE FINANCIAL HOLDINGS, INC. | |
Dated: April 23, 2026 | By:/s/ Andrew C. Sagliocca |
Andrew C. Sagliocca | |
Vice Chairman, Chief Executive Officer and President |
Exhibit 99.1
Esquire Financial Holdings, Inc.
Reports First Quarter 2026 Results
Strong and Consistent Growth, Earnings, and Performance Metrics Coupled with a Focused Integration of Signature Bancorporation, Inc.
Jericho, NY – April 23, 2026 – 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. |
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| ● | 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. |
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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. |
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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. |
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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.
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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.
Contact Information:
Eric S. Bader
Executive Vice President and Chief Operating Officer
Esquire Financial Holdings, Inc.
(516) 535-2002
eric.bader@esqbank.com
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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 |
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| | |
|
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. |
7
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 | |
8
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 | % |
9
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. |
10
Exhibit 99.2
| Ensuring our Clients and Our Institution Succeed Boldly Listed as ESQ Esquire Financial Holdings, Inc. (Financial Holding Company for Esquire Bank, N.A.) 1Q 2026 Investor Presentation Exhibit 99.2 |
| Forward Looking Disclosure This presentation contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements are not historical fact and express management’s current expectations, forecasts of future events or long-term goals and, by their nature, are subject to assumptions, risks and uncertainties, many of which are beyond the control of the Company. These statements are may be identified through the use of words or phrases 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 the negative version of those words or other comparable words or phrases of a future or forward-looking nature. Forward-looking statements speak only as of the date they are made and are inherently subject to uncertainties and changes in circumstances, 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 (“SEC”). Forward-looking statements are not guarantees of future performance and should not be relied upon as representing management’s views as of any subsequent date. Actual results could differ materially from those indicated. The Company undertakes no obligation to update forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law. The forward-looking statements speak as of the date of this presentation. The delivery of this presentation shall not, under any circumstances, create any implication there has been no change in the affairs of the Company after the date hereof. This presentation includes industry and market data that we obtained from periodic industry publications, third-party studies and surveys. Industry publications and surveys generally state that the information contained therein has been obtained from sources believed to be reliable. Although we believe the industry and market data to be reliable as of the date of this presentation, this information could prove to be inaccurate. Industry and market data could be wrong because of the method by which sources obtained their data and because information cannot always be verified with complete certainty due to the limits on the availability and reliability of raw data, the voluntary nature of the data gathering process and other limitations and uncertainties. In addition, we do not know all of the assumptions regarding general economic conditions or growth that were used in preparing the forecasts from the sources relied upon or cited herein. This presentation contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). 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. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. A reconciliation of the non-GAAP measures used in this presentation to the most directly comparable GAAP measures is provided in the Appendix to this presentation. 2 |
| Decades of expertise in the national litigation market, a complex, fragmented, and underserved vertical poised for disruption Asset sensitive model anchored by law firm loans yielding approximately 9% “Branchless” and tech enabled national core deposit platform funded at 1.00% Driving litigation loan and deposit growth with a 5 Year CAGR of approximately 25%+ since 2021 Decades of expertise in sales, risk, compliance, and treasury management Independent Sales Organization (“ISO”) model with 93,000 merchants nationally in all 50 states Stable and consistent fee income represents 16% of total revenue Tech-enabled platform performing commercial treasury clearing services for $9.7 billion in volume across 137 million transactions ROA and ROTCE of 2.10% and 16.82%, respectively (Adjusted 2.37%(1) and 18.96%(1)) Industry leading NIM of 6.04% Diversified revenue stream with strong NIM and stable fee income Strong efficiency ratio of 51.1% (Adjusted 46.9%(1)) while investing in resources (employees, technology, and marketing) for future growth A digital-first disruptor bank with best-in-class technology fueling future growth and industry leading client retention rates Account-based digital marketing (“ABM”) using our CRM to power prospective client engagements nationally Leverage artificial intelligence (“AI”), advanced data analytics, and personalization features to deliver real-time thought leadership content to client and prospective clients Nationwide “Branchless” Tech Enabled Litigation & Payment Processing Verticals Generating Industry Leading Growth, Returns, & Performance Metrics Litigation Vertical Commercial Banking Nationally Industry Leading Returns Fueled by “Branchless” and Tech Enabled National Verticals National Payment Processing Vertical (Merchant Services) Small Business Banking Nationally Technology – the Future A Catalyst for Strong Growth 3 How Our Clients Succeed Boldly (1) See non-GAAP reconciliation provided in appendix. |
| Strong Growth Driven by Unique National Verticals How Esquire Succeeds Boldly Key Highlights Strong growth in higher yielding variable rate commercial loans nationally, primarily litigation related loans Stable low-cost “branchless” and tech enabled deposit model Equity to Assets of 12.44% Common Equity Tier 1 of 14.25% (Bank Level) Book value per share of $34.88 4 at March 31, 2026 |
| Stable low-cost “branchless” funding model with a strong commercial deposit franchise nationally DDA and escrow-based IOLTA accounts represent 26% and 56% of total deposits at March 31, 2026, respectively Higher yielding variable rate commercial loans anchored by our national litigation portfolio Asset sensitive balance sheet with approximately 90% of our variable rate commercial loans having one-year interest rate floors at their origination or renewal dates Resilient net interest margin despite significant declines in short-term rates since 2023 How Esquire Succeeds Boldly 5 Resilient Industry Leading Net Interest Margin |
| Strong Revenue Growth ($ in thousands) at March 31, 2026 How Esquire Succeeds Boldly 6 Key Highlights Strong and resilient net interest margin Stable payment processing fee income Growing ASP fee income derived from off-balance sheet funds management |
| Consistent Industry Leading Performance & Growth How Esquire Succeeds Boldly Industry Recognition & Awards Piper Sandler 2025 Bank & Thrift Sm-All Stars for the third time in several years Fortune’s Annual 100 Fastest-Growing Companies List in 2024 KBW 2024 & 2025 Bank Honor Roll 2024 Raymond James Community Bankers Cup for the seventh consecutive year Best-Performing Community Bank List of 2024 & 2025 by S&P Global Best In Class Marketer by the Association of National Advertisers B2 Awards in 2025 for the third consecutive year Top 10 merchant acquiring bank by the Nilson Report 7 at March 31, 2026 (1) See non-GAAP reconciliation provided at the end of this presentation |
| Loan Portfolio Diversification with Focused Growth Focused growth in higher yielding variable rate commercial litigation related loans with strong credit metrics on a national basis Selective commercial real estate loan growth with strong historical performance, DSCRs, and LTVs in the NY metro market How Esquire Succeeds Boldly 8 at March 31, 2026 |
| Substantially all of our $1.28 billion in commercial loans are variable rate and tied to prime comprising approximately 70% of our loan portfolio Approximately 90% of our variable rate commercial loan portfolio was originated (or renewed annually) with interest rate floors in place Asset sensitive – estimated sensitivity of projected annualized net interest income (“NII”) down 100 and 200 basis point rate scenarios decreases projected NII by 6.0% and 12.0%, respectively at December 31, 2025 Despite asset sensitivity and declining short -term rates since late 2023, a resilient NIM of approximately 6.00%+ since 2023 Loan Portfolio Diversification with Focused Growth How Esquire Succeeds Boldly 9 |
| Commercial Litigation (Law Firm) Loans Full annual underwriting including, but not limited to: 3 years financials and tax returns (business and personal) Full contingent case inventory valuation process & collateral assignment or UCC-1 Personal guarantees for the majority of loans, including personal background checks Diversity across law firm inventories and collateral Average loan-to-collateral fee value or LTV of less than 15% Strong average DSCR (on average > 4.0x) Average draws against committed and uncommitted line-of-credit (“LOC”) and case disbursement loans of approximately 50% Weighted average interest rate of approximately 9% Funded with low-cost relationship based commercial litigation related deposits Litigation deposits to litigation loan facilities drawn is approximately 132% How Esquire Succeeds Boldly 10 |
| Commercial Litigation Vertical: Proven Model, Significant Runway How Esquire Succeeds Boldly 11 Sustained Platform Growth… ...Through Exceptional Client Relationships Litigation customers that have banked with Esquire for four years or more have a CAGR, since inception of their banking relationship, on their loan and deposit balances of 15% and 30%+, respectively Full law firm banking relationships quickly grow as customers benefit from Esquire’s extensive experience, suite of resources, and deployment of credit facilities, allowing the law firms to invest in & grow their business National market expansion introduces a new cohort of prospective clients into this proven relationship-growth engine Significant growth opportunities including, but not limited to, the top three largest metro markets – New York, Los Angeles, and Chicago |
| Esquire’s Bold Opportunities New York Metro Area Real Estate A Reliable Asset Class & Source of Liquidity Selective in our property and sponsor selection process Strong generational owners/operators with high quality net worth No office or construction/land loan exposure Multifamily and CRE portfolio average current DSCR and original LTV of 1.6x and 56%, respectively $67 million with below current market rates maturing in less than one year with average current DSCR and original LTV of 1.4x and 66%, respectively $29 million with below current market rates maturing between one and two years with average current DSCR and original LTV of 1.3x and 69%, respectively Rent regulated, free market, and mixed (both rent regulated and free market) represent approximately one -third each of the $389 million multifamily loan portfolio Rent regulated and mixed multifamily loans provide unique opportunities for regulatory CRA credit CRE exposure is 167% of Bank level regulatory Tier 1 capital plus the allowance for credit losses (“ACL”). CRE exposure is 151% of consolidated level regulatory Tier 1 capital plus the ACL Pledged Multifamily and Residential loan portfolio provides liquidity totaling $231.0 million through the Federal Home Loan Bank of NY (“FHLB”) program as of March 31, 2026 12 |
| Solid Credit Metrics, Asset Quality and ACL Coverage How Esquire Succeeds Boldly at March 31, 2026 Note – All asset quality metrics are based on our loans held for investment portfolio (1) NFL consumer loan portfolio - $9.0 million charge-off. 13 |
| Deposit Composition with Strong Growth Our tech enabled deposit platform utilizes our corporate cash management suite of services, creating a highly efficient “branchless” platform nationally Our overall liquidity position (cash, borrowing capacity, and available reciprocal client sweep balances) totaled $1.10 billion, or 53% of total deposits, creating a highly liquid and unlevered balance sheet How Esquire Succeeds Boldly 14 ($ in millions) at March 31, 2026 |
| *Note: Excludes sweeps totaling $1.0 billion Deposit Composition Details DDA and NOW (escrow or IOLTA funds) deposits total 82% of total deposits, representing a stable low-cost funding source in various interest rate scenarios Litigation and payment processing deposits represent 78% and 7% of total deposits at March 31, 2026, respectively Uninsured deposits (excluding $17.9 million of the Company’s deposits) totaled $623 million, or 30%, of total deposits with approximately 70% representing 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 Off-balance sheet sweep funds totaled $1.0 billion at March 31, 2026, with $330.4 million, or 33%, available for additional on-balance sheet liquidity How Esquire Succeeds Boldly 15 |
| Currently servicing 93,000 merchants across 50 states in our payment processing (merchant acquiring) vertical Fee income, primarily payment processing fees, represents 16% of total revenue for the quarter ended March 31, 2026 How Esquire Succeeds Boldly Stable & Consistent Noninterest Income at March 31, 2026 16 |
| How Esquire Succeeds Boldly Key Highlights Strong and stable DDA reserves and residuals Protecting capital from merchant chargebacks and returns 17 Protecting Our Company with Strong Payment Processing Reserves at March 31, 2026 |
| Significant national markets primed for disruption: $529 billion & 100,000+ firms in the litigation vertical and $12.2 trillion and 10+ million merchants in the payment processing vertical Key Takeaways Why Esquire is Set to Succeed Boldly Tremendous untapped potential: Esquire’s current market share is a fraction of both national verticals that are complex, fragmented, underserved and poised for disruption by our client-centric & tech-focused institution We are thought leaders in the litigation vertical and provide C-suite access for ISO flexibility in the payment processing vertical Differentiated and positioned for growth: With industry leading tailored solutions and state-of-the-art technology geared towards effective client acquisition 18 |
| Technology Driving Bold Success Client Centric Technology A Key Driver for Future Growth and Client Relationship Management Website Artificial Intelligence* Marketing Sales Underwriting Onboarding Marketing Cloud AI to facilitate precision marketing and exponential customer acquisition across all verticals Website analytics, data enrichment and thought leadership content marketing Precision marketing – right offer right time Sales enablement, pipeline management and forecasting Underwriting efficiency & risk management / cash management and mobile banking / online applications Customer onboarding / core banking Partnering with best-in-class software vendors and solutions, with custom development to service all verticals at the bank Proprietary CRM built on Salesforce platform housing all client data touch points from prospect to boarding with a single client view, enabling high volume client acquisition strategies and excellence in client service * Deployment of AI technologies applicable only to sales and marketing processes and not used as a decisioning tool for loan underwriting processes. 19 Online Banking |
| Succeeding Boldly Listed as ESQ Contact Information: Eric S. Bader Executive Vice President & Chief Operating Officer 516-535-2002 eric.bader@esqbank.com |
| Appendix & Supplemental Disclosure National Markets – Litigation & Payment Processing Verticals & Non-GAAP Reconciliation |
| The Esquire Competitive Advantage Esquire’s Bold Opportunities U.S. Litigation Market A Significant Growth Opportunity U.S. Tort actions are estimated to consume 2.1% of U.S. GDP* annually or $529 billion* Esquire does not compete with non-bank finance companies Significant barriers to entry – management expertise, digital brand awareness, regulatory/compliance, regional business development officers, and decades of experience Decades of Industry Track Record Extensive Litigation Experience In-House Deep Relationships with Respected Firms Nationally and Trial Associations Daily Resources and Research Cash Flow Lending Coupled with Borrowing Base or Asset Based Approach Tailoring unique solutions other banks do not offer Typically advancing more than traditional banks, on traditional banking terms 22 Key Highlights $529 billion* Total Addressable Market (“TAM”) in litigation vertical Esquire is a tailored, differentiated brand and thought leader in the litigation market *US Chamber of Commerce Institute for Legal Reform – “Tort Costs in America – An Empirical Analysis of Costs and Compensation of U.S. Tort System”. Published in November 2024. |
| 23 Digitally Transforming The Business of Law Aligning Law Firm Case Inventory Lifecycle to Customer Retention Client Incident Receive Intake Case Management Settlement/ Verdict Disbursement $ 1-3 Years (+) Solutions Case Cost Loans Working Capital Loans Firm and Partner Acquisition Loans Term Loans to Finance Case Acquisition & Growth Escrow Banking and QSF Settlement Services Plaintiff Banking Technology Proprietary CRM Platform Account-Based Digital Marketing (“ABM”) Proprietary Thought Leadership Content Artificial Intelligence (“AI”) Powering Personalized ABM Unique Risk Management and Boarding Platforms Commercial Cash Management Platform Specialized Case Cost Lending and Law Firm Management Platform 23 |
| Payment Processing – Current ISO Model How Esquire Succeeds Boldly What is an ISO? ISO Responsibilities They Do Merchant Vertical and Front-End Technology Focus Sales Agent Model Performs Initial Underwriting Boards Merchant to Core Payment Processing Platform Installation of Merchant Equipment Manage Call Center for Merchant Clients Merchant Risk and PCI Compliance Bank Responsibilities We Do Robust Policies Tech Enabled Card Brand and Regulatory Compliance Support Multiple Processing Systems Assess ISO Verticals Re-underwrite Merchant Applications Utilize Industry Leading Risk Management Technology Daily and Month End Financial and Compliance Risk Management Commercial Treasury Function for Merchant Clearing and ISO Cash Management Maintaining and Monitor ISO and Merchant Reserves (DDA) 24 |
| The payments industry CAGR was 8% from 2021 to 2025 to an estimated total payment volume of $12.2 trillion Esquire’s Bold Opportunities Payment Volume Trends – A Significant Growth Opportunity Sources: Company Financial Records, Note: PayPal figures represent PayPal’s estimated U.S.percent share of “Total Payment Volume” (TPV).PayPal volume includes volume from a bank account, a PayPal account balance, a PayPalCredit account, a credit or debit card or other stored value products such as coupons and gift cards. Assuch, some of this volume may be included in other networks aswell. PayPal’s classification in the payments industry ecosystem is varied/debated as it performs functions attributed to a payment network, an issuer, acquirer, etc., and its financial reporting does not directly align with other payment network reporting structures and methods. Discover volume includes Discover Network and PulseNetwork transactions. 25 at December 31, 2025 ($ in billions) |
| Appendix Non-GAAP Financial Measure Reconciliation 26 (all 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 |
| Appendix Non-GAAP Financial Measure Reconciliation 27 (all dollars in thousands) 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. (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. 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 % |
