Core Viewpoint - Esquire Financial Holdings, Inc. has entered into a joint venture agreement with Fortress Investment Group to enhance banking and lending services for US contingency fee law firms, aiming to provide tailored credit facilities and expand borrowing options for these firms [1][2]. Group 1: Joint Venture Details - The agreement combines Esquire Bank's commercial lending capabilities with Fortress's Legal Assets Group's origination and underwriting expertise, increasing access to capital for contingency fee law firms [2]. - The collaboration will enable law firms to secure larger and more customized financing solutions, supporting growth, technology investments, acquisitions, and operational needs [2][3]. Group 2: Company Profiles - Esquire Financial Holdings, Inc. is headquartered in Jericho, New York, and operates Esquire Bank, which focuses on serving the financial needs of the litigation industry and small businesses, offering tailored financial solutions [4]. - Fortress Investment Group LLC, founded in 1998, manages $49 billion in assets as of December 31, 2024, serving approximately 2,000 institutional clients and private investors globally across various investment strategies [5].

Group 1 - Esquire Financial Holdings, Inc. is a small financial institution that was close to being downgraded in early December of the previous year [1] - Crude Value Insights provides an investment service focused on oil and natural gas, emphasizing cash flow and companies that generate it [1] - The service aims to identify value and growth prospects with real potential in the oil and gas sector [1] Group 2 - Subscribers of Crude Value Insights have access to a model account with over 50 stocks, detailed cash flow analyses of exploration and production firms, and live chat discussions about the sector [2] - The service offers a two-week free trial for new subscribers, promoting engagement in the oil and gas market [3]

Financial Performance - Total assets increased to $1,892,503 thousand as of December 31, 2024, up from $1,616,876 thousand in 2023, representing a growth of approximately 17%[356]. - Loans held for investment rose to $1,397,021 thousand in 2024, compared to $1,207,413 thousand in 2023, indicating an increase of about 15.7%[356]. - Total deposits grew to $1,642,236 thousand in 2024, up from $1,407,299 thousand in 2023, marking an increase of around 16.7%[356]. - Stockholders' equity reached $237,094 thousand in 2024, compared to $198,555 thousand in 2023, which is an increase of about 19.4%[356]. - Net income for 2024 was $43,658 thousand, up 6.5% from $41,011 thousand in 2023[359]. - Total interest income for 2024 reached $113,373 thousand, a 23.2% increase from $91,888 thousand in 2023[358]. - Net interest income after provision for credit losses increased to $95,229 thousand in 2024, compared to $79,248 thousand in 2023, reflecting a 20.2% growth[358]. - Total noninterest income decreased to $24,895 thousand in 2024, down 16.5% from $29,751 thousand in 2023[358]. - Total noninterest expense rose to $60,843 thousand in 2024, an increase of 14.6% from $53,117 thousand in 2023[358]. - Earnings per share (EPS) for 2024 was $5.58, compared to $5.31 in 2023, representing a 5.1% increase[358]. - The company declared cash dividends of $0.60 per share for 2024, up from $0.475 per share in 2023[361]. Credit Quality and Risk Management - The allowance for credit losses increased to $20,979 thousand in 2024 from $16,631 thousand in 2023, reflecting a rise of approximately 26.5%[356]. - Provision for credit losses was $4,700 thousand in 2024, compared to $4,525 thousand in 2023, indicating a 3.9% increase[358]. - The total past due loans amounted to $10,942 million as of December 31, 2024, compared to $11,074 million in 2023, showing a decrease of approximately 1.2%[424]. - The company continues to monitor credit quality indicators and categorize loans based on borrowers' ability to service their debt, ensuring proactive management of credit risk[425]. - The company evaluates its loan pooling methodology at least annually, focusing on segments such as Commercial, Consumer, Multifamily, and Commercial Real Estate[386][387][388][389]. Loan Portfolio Composition - The commercial real estate loan portfolio comprises $355.2 million, or 25.4%, and the commercial real estate (CRE) loan portfolio totals $87.0 million, or 6.2% of total loans as of December 31, 2024[74]. - The multifamily portfolio has a current weighted average debt service coverage ratio (DSCR) of approximately 1.64 and an original loan-to-value (LTV) ratio of 54%[79]. - Multifamily loans maturing in 2025 total $59.5 million with a current weighted average DSCR of approximately 1.34 and an original LTV of 57%[79]. - The commercial loan segment saw a significant increase, with total commercial loans reaching $920,567 million in 2024, up from $737,914 million in 2023, marking an increase of about 24.7%[423]. - The consumer loan segment also grew, with total consumer loans increasing to $19,339 million in 2024 from $14,491 million in 2023, reflecting a growth of approximately 33.5%[423]. - The multifamily loan category remained stable, with a slight increase to $355,165 million in 2024 from $348,241 million in 2023, representing a growth of about 2.6%[423]. - The commercial real estate loans decreased slightly to $87,038 million in 2024 from $89,498 million in 2023, indicating a decline of approximately 2.8%[423]. Regulatory Compliance and Governance - The company is subject to extensive regulation and supervision by the OCC and the FRB, ensuring compliance with federal laws and regulations[86]. - Esquire Bank is subject to federal anti-money laundering and anti-terrorist financing laws, including the Bank Secrecy Act and the USA PATRIOT Act[114]. - The SEC requires registrants to report material cybersecurity incidents on Form 8-K and disclose cybersecurity policies in Forms 10-K and 10-Q[120]. - The Company is required to obtain prior approval from the FRB to acquire more than 5% of a class of voting securities of any additional bank or bank holding company[127]. - The Company has not elected to utilize the community bank leverage ratio alternative framework as of December 31, 2024[99]. Employee and Community Engagement - The company employed 138 full-time equivalent individuals, with approximately 60% being minorities or women[81]. - The company encourages employee development through on-the-job training and internal promotions[82]. - The company’s benefits package includes health care coverage, retirement benefits, and paid time off[83]. - The company supports community-based organizations through a comprehensive grant and lending program as part of its Community Reinvestment Act obligations[84]. - Esquire Bank was rated "outstanding" in its Community Reinvestment Act compliance during its most recent OCC evaluation[112]. Capital Management - The company maintains a capital conservation buffer of 2.5% of common equity Tier 1 capital to risk-weighted assets above the minimum requirements[98]. - The company was well capitalized under the prompt corrective action requirements at December 31, 2024, with a common equity Tier 1 risk-based capital ratio of 6.5%[103]. - The company has the ability to borrow a total of $431,700 million from the FHLB of New York as of December 31, 2024, compared to $284,247 million in 2023, representing a significant increase of 51.9%[439]. - The Inflation Reduction Act introduced a 1% excise tax on stock repurchases, effective January 1, 2023, which may affect the company's capital management strategies[135]. Accounting and Financial Reporting - The company adopted a new credit loss accounting standard effective January 1, 2023, impacting the methodology for estimating credit losses[344]. - The company maintained effective internal control over financial reporting as of December 31, 2024, according to the independent auditor's opinion[343]. - The Company adopted ASU 2023-07 in 2024, enhancing segment reporting disclosures without material effect on consolidated financial statements[414]. - The Company is evaluating the impact of ASU 2023-09 on income tax disclosures, effective for fiscal years beginning after December 15, 2024[415]. Investment and Securities - The investment portfolio had a fair value of $302.7 million, consisting of U.S. Government Agency collateralized mortgage obligations and mortgage-backed securities[76]. - As of December 31, 2024, total available-for-sale securities amounted to $241,746 million, with unrealized losses of $19,976 million[416]. - The total held-to-maturity securities value was $60,931 million as of December 31, 2024, with unrealized losses of $7,729 million[416]. - The Company reported no allowance for credit losses on available-for-sale securities as of December 31, 2024, due to high credit quality[420]. - The Company had no outstanding FHLB advances as of December 31, 2024[417].

Core Points - Esquire Financial Holdings, Inc. announced a 17% increase in its regular quarterly dividend to $0.175 per share, payable on March 3, 2025, to stockholders of record on February 14, 2025 [1][2] - This marks the fourth consecutive increase in dividends since the company initiated them in 2022, reflecting consistent industry-leading performance and growth [2] Company Overview - Esquire Financial Holdings, Inc. is headquartered in Jericho, New York, with one branch office in Jericho and an administrative office in Boca Raton, Florida [2] - 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 [2] - Esquire Bank offers tailored financial and payment processing solutions to the litigation community and flexible payment processing solutions to small business owners [2] - The company was recognized in Fortune's 2024 Fastest-Growing Companies list [2]

Core Insights - Esquire Financial Holdings, Inc. reported a revenue of $33.06 million for the quarter ended December 2024, reflecting a year-over-year increase of 14.2% [1] - The earnings per share (EPS) for the quarter was $1.37, up from $1.18 in the same quarter last year, although it fell short of the consensus estimate of $1.40 by 2.14% [1] - The revenue exceeded the Zacks Consensus Estimate by 0.52% [1] Financial Performance Metrics - The efficiency ratio was reported at 47.5%, slightly higher than the estimated 46.4% [4] - Total interest-earning assets amounted to $1.82 billion, surpassing the estimated $1.75 billion [4] - The net interest margin was recorded at 5.9%, below the average estimate of 6.1% [4] - Net interest income reached $26.89 million, exceeding the average estimate of $26.78 million [4] - Payment processing fees were reported at $5.09 million, slightly below the estimated $5.20 million [4] - Total non-interest income was $6.17 million, marginally above the average estimate of $6.11 million [4] Stock Performance - Esquire Financial's shares have returned +12.5% over the past month, outperforming the Zacks S&P 500 composite's +2.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Esquire Financial Holdings, Inc. (ESQ) came out with quarterly earnings of $1.37 per share, missing the Zacks Consensus Estimate of $1.40 per share. This compares to earnings of $1.18 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -2.14%. A quarter ago, it was expected that this company would post earnings of $1.32 per share when it actually produced earnings of $1.34, delivering a surprise of 1.52%.Over the last four quarter ...

Net Income and Profitability - Net income increased 19% to $11.8 million in Q4 2024, compared to $9.9 million in Q4 2023[1] - Full-year net income rose 7% to $43.7 million in 2024, up from $41.0 million in 2023[1] - Net income for the year ended December 31, 2024, was $43,658 thousand, up from $41,011 thousand in 2023[36] - Adjusted net income for 2024 was $43,658 thousand, compared to $38,081 thousand in 2023[42] - Return on average assets for the year ended December 31, 2024, was 2.57%, down from 2.89% in 2023[36] - Adjusted return on average equity for 2024 was 20.14%, down from 21.54% in 2023[42] Loan and Deposit Growth - Core deposit growth totaled $105.9 million, or 28% annualized, reaching $1.63 billion in Q4 2024[1] - Loan growth on a linked quarter basis was $99.6 million, or 31% annualized, to $1.40 billion in Q4 2024[1] - Average loans increased by $207.0 million (19.7%) to $1.26 billion, primarily due to growth in the national commercial lending platform and regional multifamily loan portfolio[13] - Average deposits increased by $230.0 million (31.6%) to $958 million, primarily due to growth in escrow or IOLTA deposits nationally[13] - Total deposits increased by $234.9 million (16.7%) to $1.64 billion, with IOLTA and escrow deposits representing 59.6% of total deposits[25] - Total deposits grew to $1,642,236 thousand as of December 31, 2024, from $1,407,299 thousand in the previous year[34] - Loans held for investment increased to $1,315,392 thousand in Q4 2024, with a yield of 7.78%, up from $1,169,411 thousand in Q4 2023[38] - For the full year 2024, loans held for investment averaged $1,258,914 thousand with a yield of 7.82%, up from $1,051,903 thousand in 2023[39] Net Interest Income and Margin - Net interest margin for the full year 2024 was 6.06%, with Q4 margin at 5.87%[1] - Net interest income increased by $16.2 million (19.3%) to $99.9 million, driven by a 19.9% growth in average interest-earning assets to $1.65 billion and a net interest margin of 6.06%[13] - Net interest income for the year ended December 31, 2024, was $99,929 thousand, compared to $83,773 thousand in 2023[36] - Net interest margin for the year ended December 31, 2024, was 6.06%, slightly down from 6.09% in 2023[36] - Net interest income for Q4 2024 was $26,886 thousand, up from $22,670 thousand in Q4 2023[38] - Net interest margin for Q4 2024 was 5.87%, down from 6.12% in Q4 2023[38] - Net interest income for 2024 was $99,929 thousand, up from $83,773 thousand in 2023[39] - GAAP net interest income for Q4 2024 was $26.886 billion, up from $25.858 billion in Q3 2024 and $22.670 billion in Q4 2023[43] Credit Losses and Allowance - Provision for credit losses increased by $200 thousand to $1.7 million in Q4 2024[7] - The provision for credit losses was $4.7 million, with the allowance to loans ratio increasing to 1.50% from 1.38% in 2023[14] - The allowance for credit losses was $21.0 million (1.50% of total loans), with nonperforming loans totaling $10.9 million (0.78% of total loans)[20] - Nonperforming loans remained steady at $10,940 thousand as of December 31, 2024, consistent with the previous year[34] Noninterest Income and Expense - Noninterest income totaled $24.9 million, with payment processing income decreasing by $1.4 million to $20.9 million due to ISO attrition and changes in merchant risk profile[15] - Noninterest expense increased by $7.7 million (14.5%) to $60.8 million, primarily due to increases in employee compensation and benefits, advertising, and data processing costs[17] - Total noninterest income for the year ended December 31, 2024, was $24,895 thousand, compared to $29,751 thousand in 2023[36] - Employee compensation and benefits expenses increased to $37,845 thousand for the year ended December 31, 2024, from $32,481 thousand in 2023[36] - Adjusted noninterest income for Q4 2024 was $6.169 billion, compared to $6.062 billion in Q3 2024 and $6.266 billion in Q4 2023[43] - GAAP noninterest expense for Q4 2024 was $15.685 billion, compared to $15.358 billion in Q3 2024 and $13.901 billion in Q4 2023[43] Efficiency Ratios - Efficiency ratio for Q4 2024 was 47.5%, compared to 48.0% in 2023[10] - Non-GAAP efficiency ratio for Q4 2024 was 48.1%, compared to 47.5% in Q3 2024 and 48.0% in Q4 2023[43] - Adjusted efficiency ratio (non-GAAP) for Q4 2024 was 47.5%, compared to 48.1% in Q3 2024 and 48.0% in Q4 2023[43] Capital and Equity Ratios - Common equity tier 1 (CET1) ratio stood at 14.67%, with tangible common equity to tangible assets (TCE/TA) ratio at 12.53%[4] - Stockholders' equity increased by $38.5 million to $237.1 million, driven by increases in retained earnings (net income)[28] - Common equity tier 1 capital ratio was 14.67% as of December 31, 2024, compared to 14.13% in the previous year[34] - Tangible common equity to tangible assets ratio (non-GAAP) was 12.53% as of December 31, 2024[45] - Adjusted common equity tier 1 capital ratio was 13.33% as of December 31, 2024[45] - Common equity tier 1 capital ratio was 14.67% as of December 31, 2024[45] Asset and Liability Growth - Total assets increased by $275.6 million (17.0%) to $1.89 billion, driven by a $189.6 million (15.7%) increase in loans, primarily higher-yielding variable rate commercial loans[23] - Total assets increased to $1,892,503 thousand as of December 31, 2024, compared to $1,616,876 thousand in the same period last year[34] - Total interest earning assets grew to $1,823,690 thousand in Q4 2024, with a yield of 6.72%, compared to $1,470,644 thousand in Q4 2023[38] - Total interest earning assets for 2024 averaged $1,648,433 thousand with a yield of 6.88%, compared to $1,375,275 thousand in 2023[39] - Total GAAP assets as of December 31, 2024 were $1.892503 trillion[45] - Total risk-weighted assets for the bank were $1.488855 trillion as of December 31, 2024[45] Payment Processing and Off-Balance Sheet Items - Payment processing platform facilitated $9.2 billion in credit and debit card payment volume across 145.7 million transactions in Q4 2024[4] - Off-balance sheet sweep funds increased by $276.4 million, or 99%, to $554.4 million compared to year-end 2023[1]

Table of Contents Title of each class Trading Symbol(s) Name of each exchange on which registered UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-38131 Esquire Financial Holdings, Inc. ( ...

JERICHO, N.Y., Nov. 7, 2024 /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 inclusion on Fortune's annual 100 Fastest-Growing Companies list. Esquire was one of only four commercial banks to make the list, ranking No. 55 among all companies based on revenue growth, earnings per share growth and three-year annualized return to shareh ...

Core Insights - Esquire Financial Holdings, Inc. reported $31.92 million in revenue for Q3 2024, a 13% year-over-year increase [1] - The EPS for the same period was $1.34, up from $1.17 a year ago, indicating a positive trend in earnings [1] - The revenue exceeded the Zacks Consensus Estimate of $31.48 million by 1.40%, while the EPS also surpassed the consensus estimate of $1.32 by 1.52% [1] Financial Metrics - Efficiency ratio stood at 48.1%, slightly above the average estimate of 47.9% from two analysts [1] - Net Interest Margin was reported at 6.2%, compared to the average estimate of 6.1% [1] - Total Interest Earning Assets reached $1.67 billion, exceeding the average estimate of $1.63 billion [1] - Payment processing fees were $5.17 million, below the average estimate of $5.37 million [1] - Total Non-Interest Income was $6.06 million, lower than the estimated $6.35 million [1] - Net Interest Income was reported at $25.86 million, above the average estimate of $25.14 million [1] Stock Performance - Over the past month, shares of Esquire Financial have returned -1%, while the Zacks S&P 500 composite increased by 1.5% [2] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [2]