Business Overview - As of September 30, 2023, the company operates as a full-service commercial bank focused on the litigation industry and small businesses nationally, with a total addressable market of $443 billion for the litigation sector [122][125]. - The company reported that U.S. tort actions consume an estimated 1.85%-2.13% of U.S. GDP annually, indicating significant growth potential in the litigation market [125]. - The company has clients in 28 states, with major markets including New York, California, Texas, Florida, Pennsylvania, South Carolina, and New Jersey [126]. - The company emphasizes its unique ability to combine traditional commercial underwriting with non-traditional asset-based underwriting, which is crucial for understanding law firms' contingent case inventory [126]. Financial Performance - The company’s results of operations are primarily driven by net interest income, which is the difference between interest earned on assets and interest paid on liabilities [123]. - Noninterest income is mainly derived from payment processing income, administrative service payment fees, and customer-related fees [123]. - The company achieved a return on average assets of 2.71% and a return on average equity of 21.44% for the quarter ended September 30, 2023 [132]. - Net income increased by $2.1 million, or 27.6%, to $9.8 million for the three months ended September 30, 2023, compared to $7.7 million for the same period in 2022 [153]. - Net interest income rose by $6.2 million, or 39.7%, to $21.7 million for the three months ended September 30, 2023, driven by a $7.9 million increase in interest income [154]. - Interest income increased by $7.9 million, or 49.8%, to $23.9 million for the three months ended September 30, 2023, from $16.0 million for the same period in 2022 [156]. - The company recorded an income tax expense of $11.2 million for the nine months ended September 30, 2023, with an effective tax rate of 26.5% [185]. Asset and Loan Growth - Total assets increased by $86.8 million, or 6.2%, to $1.5 billion as of September 30, 2023, driven by a $166.1 million, or 17.5%, growth in loans held for investment [134]. - Loans held for investment totaled $1.1 billion, or 86.8% of total deposits, with commercial loans increasing by $110.2 million, or 20.0%, to $662.3 million [135]. - Litigation-related loans reached $573.8 million, or 51.5% of the total loan portfolio, up from $467.4 million, or 49.3%, at the end of 2022 [136]. - Total deposits rose by $54.4 million, or 4.4%, to $1.3 billion, with core deposits making up 99.4% of total deposits [139]. - Demand deposits increased by $27.7 million, or 6.2%, to $472.1 million, representing 36.8% of total deposits [139]. Credit Losses and Allowance - The company has adopted the CECL Standard, requiring it to estimate and record lifetime credit losses expected to be incurred on financial instruments [110]. - The company’s allowance for credit losses is considered a critical accounting policy due to the inherent subjectivity and uncertainty in estimating required levels [109]. - The allowance for credit losses was $15.3 million, or 1.38% of total loans, as of September 30, 2023, compared to 1.29% at the end of 2022 [144]. - Provision for credit losses increased to $1.2 million for Q3 2023, up from $650 thousand in Q3 2022, with an allowance to loans ratio of 1.38% compared to 1.24% a year earlier [162]. Liquidity and Capital Position - The company has strong available liquidity of $782.4 million, or 61% of deposits, with no outstanding borrowings [132]. - Total stockholders' equity increased by $27.5 million to $185.6 million, primarily due to net income of $31.1 million [143]. - The total liquidity position, including cash, borrowing capacity, and available sweep balances, amounted to $782.4 million, representing 61% of total deposits [201]. - Esquire Bank exceeded all regulatory capital requirements as of September 30, 2023, and was classified as "well capitalized" under regulatory guidelines [203]. - The total risk-based capital ratio was 15.59% as of September 30, 2023, significantly above the minimum requirement of 10.00% [206]. - The Tier 1 risk-based capital ratio stood at 14.34% as of September 30, 2023, exceeding the minimum requirement of 8.00% [206]. - The bank's common equity Tier 1 capital ratio was also 14.34%, well above the minimum requirement of 6.50% [206]. Technology and Market Risks - The company’s future success relies on developing and embracing cutting-edge technology to leverage its litigation and payment processing verticals [124]. - The company faces risks related to economic conditions, competition, and regulatory changes that could impact its financial performance [105][121]. Payment Processing - Payment processing volumes increased by $1.1 billion, or 14.6%, to $8.4 billion in Q3 2023, with transactions rising by 15.3 million, or 10.7%, to 157.3 million [165]. - Noninterest income for Q3 2023 was $6.5 million, a 1.5% increase from $6.4 million in Q3 2022, driven by a $163 thousand increase in payment processing fees [163]. - Payment processing income for the nine months ended September 30, 2023, increased by $599 thousand, or 3.8%, to $16.3 million compared to the same period in 2022 [181].

Table of Contents 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 June 30, 2023 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. (Exact Name of Registrant as Specified in Its Charter) Maryland 27-5107901 (State or Other Jurisdict ...

Market Overview - As of March 31, 2023, the company operates as a full-service commercial bank focused on the litigation industry and small businesses, with a total addressable market of $443 billion for 2020 in the U.S. tort actions sector [125]. - The company has clients in 28 states, with significant markets including New York, California, Texas, Florida, Pennsylvania, South Carolina, and New Jersey [126]. - The litigation market is projected to consume 1.85%-2.13% of U.S. GDP annually, indicating a strong growth opportunity for the company [125]. Financial Performance - The company reported a return on average assets of 3.68% and a return on average equity of 30.45% for the quarter ended March 31, 2023 [130]. - Net income increased by $6.8 million, or 128.0%, to $12.2 million for the three months ended March 31, 2023, compared to $5.3 million for the same period in 2022 [148]. - Net interest income rose by $7.5 million, or 63.7%, to $19.3 million for the three months ended March 31, 2023, driven by an $8.3 million increase in interest income [149]. - Noninterest income surged by $4.8 million, or 86.5%, to $10.3 million, primarily due to a $4.0 million nonrecurring gain on an equity investment [158]. - Total noninterest expense increased by $3.1 million, or 33.1%, to $12.5 million, with significant rises in employee compensation and professional services [161]. Asset and Liability Management - Total assets increased by $55.2 million, or 4.0%, to $1.5 billion as of March 31, 2023, driven by a 24.2% increase in cash and cash equivalents [132]. - Loans held for investment grew to $966.9 million, representing 76.4% of total deposits, with commercial loans increasing by $13.8 million, or 2.5% [133]. - Total deposits rose by $36.1 million, or 2.9%, to $1.3 billion, with demand deposits increasing by $104.2 million, or 23.4% [137]. - The allowance for credit losses was $13.0 million, or 1.34% of total loans, reflecting an increase due to loan growth and economic uncertainties [142]. - Off-balance sheet sweep funds totaled approximately $262.5 million, with $140.5 million available to be swept back onto the balance sheet [139]. Interest Income and Margin - Interest income increased by $8.3 million, or 69.4%, to $20.4 million for the three months ended March 31, 2023, attributed to growth in loans, securities, and interest earning cash [151]. - Loan interest income increased by $6.6 million, or 59.8%, to $17.6 million, supported by a $175.4 million, or 22.6%, increase in average loan balance [152]. - The net interest margin improved by 160 basis points to 6.03% for the three months ended March 31, 2023, from 4.43% in the prior year [150]. - The net interest margin was 6.03%, with stable fee income representing 21% of total revenue, including a nonrecurring gain of $4.0 million [130]. Credit Losses and Provisions - The provision for credit losses was $500 thousand, a decrease of $140 thousand from the previous year, with an allowance to loans ratio of 1.34% [157]. - The company maintained no nonperforming assets as of March 31, 2023, with special mention loans decreasing from $13.7 million to $5.4 million [142]. Technology and Competitive Edge - The company emphasizes its unique ability to combine traditional commercial underwriting with non-traditional asset-based underwriting, enhancing its competitive edge [126]. - The company’s future success relies on developing and embracing cutting-edge technology to differentiate itself from other financial firms [124]. Economic and Regulatory Risks - The company faces risks from economic conditions, competition, and regulatory changes that could impact its financial performance [123]. Capital and Liquidity - Total stockholders' equity increased by $12.6 million to $170.8 million, primarily due to net income of $12.2 million [141]. - The overall liquidity position was $588.4 million, representing 47% of total deposits, indicating a highly liquid balance sheet [177]. - Total risk-based capital ratio was 16.14% as of March 31, 2023, exceeding the minimum requirement of 10.00% [180]. - The bank is asset-sensitive in a rising interest rate environment, with estimated net interest income increasing by $18.185 million under a 400 basis point increase in rates [169]. - Economic value of equity (EVE) increased by $48.265 million under a 400 basis point increase in interest rates, totaling $327.504 million [171]. Operational Costs - Employee compensation and benefits costs increased due to staff growth and year-end salary adjustments, impacting overall expenses [162]. - Professional services costs rose due to the retention of a global executive search firm to enhance sales and underwriting capabilities [162]. - Advertising and marketing costs increased as the company expanded its brand and digital marketing efforts [162]. Taxation - Income tax expense for Q1 2023 was $4.4 million, reflecting an effective tax rate of 26.5%, consistent with Q1 2022 [163].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K Esquire Financial Holdings, Inc. (Exact Name of Registrant as Specified in its Charter) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2022 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 Number: 001-38131 Maryland 27-5107901 (State or o ...

Table of Contents 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, 2022 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. (Exact Name of Registrant as Specified in Its Charter) Maryland (State or Other Jurisdiction of ...

Table of Contents Title of each class Trading Symbol(s) Name of each exchange on which registered 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 March 31, 2022 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. (Exact Name of Regi ...

Table of Contents Title of each class Trading Symbol(s) Name of each exchange on which registered 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, 2020 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. (Exact Name of ...

Table of Contents 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 June 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------ ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10‑K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2018 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 Number: 001‑38131 Esquire Financial Holdings, Inc. (Exact Name of Registrant as Specified in its Charter) Maryland 27‑5107901 (State or o ...