JERICHO, N.Y., Dec. 10, 2025 /PRNewswire/ -- Esquire Financial Holdings, Inc. (NASDAQ: ESQ), the holding company for Esquire Bank, National Association (collectively "Esquire"), today announced that Esquire was named to the Piper Sandler 2025 Bank & Thrift Sm-All Stars. Piper Sandler's objective of the Sm-All Stars is to identify the top performing small-cap banks and thrifts in the country. Esquire was identified as one of just 24 institutions out of 316 publicly traded banks and thrifts to achieve elite ...

Core Viewpoint - Esquire Financial Holdings, Inc. (ESQ) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [4][6]. - An increase in earnings estimates typically leads to higher fair value for a stock, prompting institutional investors to buy or sell, thus affecting stock prices [4]. Company Performance Indicators - Esquire Financial is projected to earn $5.88 per share for the fiscal year ending December 2025, showing no year-over-year change [8]. - Over the past three months, the Zacks Consensus Estimate for Esquire Financial has increased by 4.8%, indicating a positive revision trend [8]. Zacks Rating System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of Esquire Financial to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Loans and Credit Losses - As of September 30, 2025, total loans held for investment amounted to $1,546.7 million, an increase from $1,396.8 million as of December 31, 2024, representing a growth of approximately 10.7%[34] - The allowance for credit losses increased to $21.1 million as of September 30, 2025, compared to $19.5 million as of September 30, 2024, reflecting a rise of about 8.5%[34] - The total real estate loans increased to $481.0 million as of September 30, 2025, from $456.9 million as of December 31, 2024, marking a growth of approximately 5.3%[34] - The total loans not past due as of September 30, 2025, were $1,538,076 million, compared to $1,385,832 million as of December 31, 2024, representing an increase of about 11%[36] - The credit risk profile indicates that as of September 30, 2025, the total loans classified as "Pass" amounted to $1,511,852 million, which is an increase from the previous year[42] - The company reported current period gross charge-offs of $6,661 million for the nine months ending September 30, 2025, compared to $3,250 million for the same period in 2024, reflecting an increase of 104.5%[42] - The total ending allowance balance for credit losses for the commercial segment as of September 30, 2025, was $13,982 million, up from $14,689 million in the previous year[35] - The company has categorized loans into risk categories, with "Special Mention" loans totaling $26,482 million as of September 30, 2025, indicating potential weaknesses[38] - The total past due loans as of September 30, 2025, amounted to $8,650 million, compared to $10,942 million as of December 31, 2024, showing a decrease of approximately 20.9%[36] - The provision for credit losses for the nine months ending September 30, 2025, was $6,775 million, compared to $3,000 million for the same period in 2024, indicating a significant increase of 125.8%[35] Securities and Investments - The total available-for-sale securities decreased to $265.1 million as of September 30, 2025, down from $271.0 million as of December 31, 2024, indicating a decline of approximately 2.9%[26] - The total unrealized losses on available-for-sale securities amounted to $14.4 million as of September 30, 2025, compared to $19.0 million as of December 31, 2024, showing a reduction of approximately 24.5%[31] - The company reported no allowance for credit losses on available-for-sale securities due to high credit quality as of September 30, 2025[32] - The fair value of securities pledged to the Federal Reserve Bank of New York was $50.5 million as of September 30, 2025, with borrowing capacity totaling $48.9 million[30] - The fair value measurement for securities held-to-maturity was $57,202,000 as of September 30, 2025, down from $60,931,000 at the end of 2024[72] - The fair value of available-for-sale securities was $265,132 thousand, up from $241,746 thousand as of December 31, 2024[70] Financial Performance - For the three months ended September 30, 2025, net income was $14,057 thousand, an increase of 23.5% compared to $11,360 thousand for the same period in 2024[60] - Basic earnings per share for the three months ended September 30, 2025, was $1.74, up 20% from $1.45 in 2024[60] - The company reported total noninterest income of $18.961 million for the nine months ended September 30, 2025, compared to $18.726 million for the same period in 2024, reflecting a year-over-year increase of 1.3%[50] Cash and Deposits - As of September 30, 2025, cash and cash equivalents amounted to $240,759,000, an increase from $126,329,000 on December 31, 2024[72] - Total demand and other deposits were $1,873,383,000 as of September 30, 2025, up from $1,628,132,000 at the end of 2024[72] - Time deposits decreased to $6,057,000 as of September 30, 2025, from $14,104,000 at the end of 2024[72] Lease Commitments and Expenses - The company had an additional future operating lease commitment for its future corporate headquarters of approximately $24 million, expected to commence no earlier than Q4 2026[65] - Total operating lease payments as of September 30, 2025, amounted to $3,005 thousand, with a present value of operating lease liabilities of $2,450 thousand[64] - The weighted-average remaining lease term increased to 6.30 years as of September 30, 2025, compared to 2.17 years in 2024[66] - The company recognized total lease costs of $227 thousand for the three months ended September 30, 2025, compared to $192 thousand in 2024, representing an 18.2% increase[66] Compensation and Stock - The intrinsic value for outstanding options, net of expected forfeitures, was $25.6 million at September 30, 2025[57] - The company recognized compensation expense related to options of $188 thousand for the three months ended September 30, 2025, compared to $178 thousand for the same period in 2024[57] - The company recognized compensation expense related to restricted stock of $975 thousand for the three months ended September 30, 2025, compared to $755 thousand in 2024, reflecting a 29.1% increase[58] - As of September 30, 2025, total unrecognized compensation cost related to nonvested shares was $11.1 million, expected to be recognized over a weighted-average period of 3.51 years[58] - The company granted 35,626 shares of restricted stock with a fair value of $89.90 during the nine months ended September 30, 2025[58] Internal Controls - The company reported no changes in internal controls over financial reporting that materially affected the effectiveness of these controls during the quarter ended September 30, 2025[180] - The company’s disclosure controls and procedures were concluded to be effective as of September 30, 2025[180]

Core Insights - Esquire Financial Holdings, Inc. reported quarterly earnings of $1.47 per share, exceeding the Zacks Consensus Estimate of $1.46 per share, and up from $1.34 per share a year ago, representing an earnings surprise of +0.68% [1] - The company posted revenues of $37.57 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 3.60%, compared to $31.92 million in the same quarter last year [2] - Esquire Financial shares have increased approximately 27.8% year-to-date, outperforming the S&P 500's gain of 13.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.46 on revenues of $36.73 million, and for the current fiscal year, it is $5.61 on revenues of $142.37 million [7] - The estimate revisions trend for Esquire Financial was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Zacks Industry Rank for Banks - Northeast, to which Esquire Financial belongs, is currently in the top 24% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Another company in the same industry, MainStreet Bank, is expected to report quarterly earnings of $0.51 per share, reflecting a year-over-year change of +1375%, with revenues projected at $18.9 million, up 16.5% from the previous year [9]

Financial Performance - Net income for Q3 2025 increased by $2.7 million or 23.7% to $14.1 million, with diluted earnings per share at $1.62, compared to $11.4 million or $1.34 per diluted share in Q3 2024[1]. - Year-to-date revenue for 2025 rose by $15.4 million or 16.8% to $107.2 million compared to 2024[1]. - Net income for the nine months ended September 30, 2025, reached $37,354 thousand, a 16.5% increase from $31,905 thousand for the same period in 2024[38]. - Adjusted net income for Q3 2025 was $12,747 thousand, with a GAAP net income of $14,057 thousand, indicating a decrease of 9.3% when accounting for tax benefits[43]. Asset and Deposit Growth - Total assets increased by $401.8 million, or 22.5%, to $2.18 billion, driven by a $249.5 million, or 19.2%, growth in loans to $1.55 billion[27]. - Total deposits reached $1.88 billion, a $343.0 million, or 22.3%, increase, with litigation-related escrow deposits rising by $189.9 million, or 22.9%[28]. - Average deposits increased by $364.2 million or 24.5% to $1.85 billion, driven by increases in litigation-related escrow and commercial money market deposits[8]. - Total deposits increased to $1,879,440 thousand as of September 30, 2025, compared to $1,642,236 thousand at December 31, 2024, marking a growth of 14.5%[36]. Loan and Credit Quality - Loan growth on a linked quarter basis was $52.4 million or 14% annualized, totaling $1.55 billion, with year-over-year growth of $249.5 million or 19.2%[1]. - The provision for credit losses was $1.8 million for Q3 2025, a $750 thousand increase from Q3 2024, with an allowance to loans ratio of 1.37%[9]. - The provision for credit losses increased by $3.8 million to $6.8 million for the nine months ended September 30, 2025, with charge-offs of $6.2 million, including $3.3 million from a small business loan and $2.9 million from a multifamily loan[18]. - Nonperforming loans decreased to $8,646 thousand, down from $10,940 thousand at June 30, 2025, indicating improved asset quality[36]. Income and Expense Management - Noninterest income for Q3 2025 was stable at $6.2 million, with payment processing income at $5.1 million, reflecting a 9.5% increase in processing volumes to $10.1 billion[10]. - Noninterest income rose by $235 thousand, or 1.3%, to $19.0 million, while payment processing income decreased by $699 thousand to $15.1 million, despite an 8.9% increase in payment processing volumes to $29.5 billion[19]. - Noninterest expense increased by $7.0 million, or 15.5%, to $52.2 million, primarily due to a $2.9 million increase in employee compensation and benefits, reflecting a 10.4% rise[20]. - The efficiency ratio for Q3 2025 was 48.9%, compared to 48.1% in the prior year, despite ongoing investments in resources[14]. Capital and Regulatory Compliance - Stockholders' equity increased by $46.7 million to $279.2 million, primarily due to net increases in retained earnings[31]. - The bank remains well above regulatory "Well Capitalized" standards, ensuring a strong capital position[32]. - The Tier 1 capital ratio remained strong at 15.27% as of September 30, 2025, consistent with the previous quarter[36]. Tax and Effective Rates - The effective tax rate for Q3 2025 was 19.5%, down from 27.0% in the prior year, due to discrete tax benefits related to stock options[15]. - The effective tax rate decreased to 22.5% for the nine months ended September 30, 2025, down from 26.8% in the prior year, due to discrete tax benefits related to share-based compensation[24]. Interest and Yield Metrics - Net interest margin for Q3 2025 was 6.04%, supported by growth in average interest-earning assets totaling $389.0 million or 23.3% to $2.06 billion[8]. - Net interest income for the three months ended September 30, 2025, was $31,339 thousand, an increase of 6.7% compared to $29,254 thousand for the previous quarter[38]. - Net interest income for the nine months ended September 30, 2025, was $88,202 thousand, compared to $73,043 thousand in the same period of 2024, reflecting an increase of 20.8%[40]. - The average yield on interest-earning assets was 6.89% in 2025, slightly down from 6.94% in 2024[40].

Core Insights - Esquire Financial Holdings, Inc. reported strong financial performance in Q3 2025, with net income increasing to $14.1 million, or $1.62 per diluted share, compared to $11.4 million, or $1.34 per diluted share in Q3 2024, reflecting a 23.7% year-over-year growth [4][8] - The company achieved a net interest income of $31.3 million, a 21.2% increase from the previous year, driven by a 23.3% growth in average interest-earning assets [5][16] - The net interest margin was reported at 6.04%, slightly down from 6.16% in the previous year, impacted by elevated cash balances [5][8] Financial Performance - For the nine months ended September 30, 2025, net income was $37.4 million, or $4.32 per diluted share, compared to $31.9 million, or $3.78 per diluted share for the same period in 2024 [15] - Year-to-date revenue increased by $15.4 million, or 16.8%, to $107.2 million compared to the previous year [8] - The provision for credit losses was $1.8 million for Q3 2025, an increase from the previous year, with an allowance to loans ratio of 1.37% [6][17] Loan and Deposit Growth - Average loans increased by $262.0 million, or 20.6%, to $1.53 billion, primarily due to a 29.9% growth in commercial loans [5][25] - Average deposits rose by $364.2 million, or 24.5%, to $1.85 billion, with significant contributions from litigation-related escrow accounts and commercial money market deposits [5][25] - The loan-to-deposit ratio stood at 82% as of September 30, 2025 [5][25] Noninterest Income and Expenses - Noninterest income totaled $6.2 million for Q3 2025, slightly up from $6.1 million in the same period last year, with payment processing income remaining stable [7][18] - Noninterest expenses increased by $3.0 million, or 19.5%, to $18.4 million, primarily due to higher employee compensation and benefits [10][19] Asset Quality and Capital Position - The company maintained solid asset quality with nonperforming loans totaling $8.6 million, representing 0.40% of total assets [22][23] - Stockholders' equity increased to $279.2 million as of September 30, 2025, driven by retained earnings and additional paid-in capital [29] - The common equity tier 1 capital ratio was reported at 15.27%, well above regulatory standards [29]

Financial Performance & Metrics - The company's adjusted Return on Average Assets (ROA) was 2.37%[12,32] - The adjusted Return on Tangible Common Equity (ROTCE) reached 18.89%[12,32] - The company boasts an industry-leading Net Interest Margin (NIM) of 6.04%[15] - The efficiency ratio is strong at 48.9%[15] Loan & Deposit Portfolio - Approximately 90% of the company's variable rate commercial loan portfolio has interest rate floors in place[26,41] - Commercial loans, substantially all variable rate, total $1.05 billion, representing approximately 68% of the loan portfolio[41] - DDA and escrow-based NOW/IOLTA accounts represent 32% and 55% of total deposits, respectively[26] - Litigation and payment processing deposits account for 76% and 8% of total deposits, respectively[59] Revenue & Fee Income - Fee income, primarily from payment processing, constitutes 17% of total revenue[16,63] - The company's payment processing vertical services 93,000 merchants nationally[16,63] Market Opportunity - The litigation vertical represents a $529 billion total addressable market[67,78] - The payment processing vertical represents a $11.7 trillion market[67,83]

Core Insights - Esquire Financial Holdings, Inc. has been recognized in S&P Global Market Intelligence's annual U.S. Community Bank Deposit Rankings for the second consecutive year, highlighting its strong deposit franchise among banks with less than $3 billion in assets [1][2]. Company Performance - The ranking is based on a weighted average of eight key metrics, emphasizing stable funding and efficient operations, which include noninterest-bearing deposit concentration, cost of interest-bearing deposits, deposit betas, deposit efficiency, and overall growth [2]. - The company has established a low-cost core deposit base and an industry-leading net interest margin, contributing to its sustainable growth and leadership in the industry [2]. Leadership and Strategy - Andrew C. Sagliocca, the Vice Chairman, CEO, and President, shared insights on the strategies driving Esquire Bank's success during a featured speaking engagement at the 2025 Deposit Conference [3]. - The company focuses on understanding and serving key national verticals and local markets, which has been pivotal in establishing a strong foundation for growth [2][3]. Company Overview - Esquire Financial Holdings, Inc. is headquartered in Jericho, New York, with additional locations in Los Angeles, California, and Boca Raton, Florida [4]. - The company operates Esquire Bank, which provides tailored financial solutions to the litigation industry and small businesses, as well as commercial and retail customers in the New York metropolitan area [4]. - Esquire Bank was named to Fortune's 2024 Fastest-Growing Companies list, indicating its rapid growth and market presence [4].

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Company Overview - Esquire Financial Holdings, Inc. is a financial holding company headquartered in Jericho, New York, with a branch office in Jericho and an administrative office in Boca Raton, Florida [4] - The company's wholly owned subsidiary, Esquire Bank, is a full-service commercial bank focused on serving the financial needs of the litigation industry and small businesses nationally, as well as commercial and retail customers in the New York metropolitan area [4] - Esquire Bank offers tailored financial and payment processing solutions to the litigation community and small business owners [4] - The company was recognized in Fortune's 2024 Fastest-Growing Companies list [4] Expansion Plans - Esquire Financial Holdings is set to open its first full-service banking location in Los Angeles, California, on August 18, 2025 [1] - This new location is part of Esquire's national growth strategy and aims to serve the complex and underserved national litigation market [2] - The Los Angeles office is located at 1925 Century Park East, Suite A, in Century City, enhancing the bank's white-glove service in a top-performing regional market [2] Leadership Statements - Tony Coelho, Chairman of the Board, expressed excitement about bringing a personalized banking experience to Southern California's legal community [3] - Andrew C. Sagliocca, Vice Chairman, CEO, and President, highlighted California as a significant market for Esquire's national litigation platform and emphasized the demand for tailored financial solutions [3] - The opening of the Los Angeles location follows the hiring of senior business development leaders in the region, indicating a strategic focus on growth [3]