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Esquire Financial Holdings, Inc. (ESQ) SEC Filing 10-Q Quarterly report for the period ending Wednesday, September 30, 2020

Esquire Financial Holdings, Inc.

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CIK: 1531031 Ticker: ESQ

Exhibit 99.1

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ESQUIRE FINANCIAL HOLDINGS, INC.

REPORTS THIRD QUARTER 2020 RESULTS

Strong Loan and Deposit Growth, Record Merchant Payment Processing Income and Launch of New Digital Platform

Jericho, NY – October 23, 2020 – Esquire Financial Holdings, Inc. (NASDAQ: ESQ) (the “Company”), the financial holding company for Esquire Bank, National Association (“Esquire Bank”), today announced its operating results for the third quarter of 2020. Results comparing the current quarter to the second quarter of 2020 (“linked quarter”) include:

●Net income increased $1.1 million, or 42%, to $3.6 million, or $0.48 per diluted share, as compared to $2.5 million, or $0.33 per diluted share on a linked quarter basis.  For the third quarter of 2019, net income and diluted earnings per share were $3.8 million and $0.49, respectively, relatively unchanged from the current quarter levels.

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●Due to the continued uncertainty surrounding the pandemic and its effects on the economy, the Company continued to record a quarterly provision for loan losses at elevated levels as our reserve coverage ratio of 1.82% remained relatively unchanged on a linked quarter basis.

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●Returns on average assets and common equity were 1.60% and 11.99%, respectively, as compared to 1.20% and 8.77% for the quarter ended June 30, 2020. Our net income and returns were negatively impacted by our elevated provision for loan losses.

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●Loans increased $42.0 million, or 28% annualized, to $635.7 million in the current quarter, primarily driven by higher yielding attorney commercial loans and, to a lesser extent, multifamily loans. The Company continues to actively deploy excess liquidity from core deposit growth during the year into higher yielding loans.

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●Deposits increased $20.6 million, or 11.3% annualized, to $745.5 million on a linked quarter basis, primarily driven by commercial deposits, with a cost of funds of only 0.15% (including demand deposits). Demand deposits, totaling $321.3 million, represent 43% of total deposits at quarter end. Off balance sheet sweep funds totaled $393 million at quarter end, demonstrating the continued strength of our branchless core business model.

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●The net interest margin declined 24 basis points to 4.23% on a linked quarter basis primarily due to elevated liquidity and accelerated prepayments on our securities portfolio. Both factors are a result of the historically low interest rate environment caused by the pandemic and its negative effects on the overall economy.  
●Merchant fee income from our payment processing platform increased 31% to $3.7 million on a linked quarter basis, despite the negative effects that the pandemic had on the economy. Total fee income represents 30% of total revenue for the third quarter of 2020.  
●Continued solid asset quality metrics with loans 90 days past due totaling $5.8 million (1) and nonaccrual loans totaling $1.8 million. Nonperforming loans to total loans was 1.20% while loans in our payment deferral program totaled $33.4 million at quarter end.
●Recently announced the launch of our new suite of best-in-class digital technologies anchored by a newly designed website, brand image and proprietary customer service CRM platform.
●Esquire Bank remains well above the bank regulatory “Well Capitalized” standards.

“Coupling our merchant payment processing platform with our newly enhanced digital platforms and new hires, including our Chief Banking and Revenue Officer, should significantly enhance our growth prospects in 2021 and beyond,” stated Tony Coelho, Chairman of the Board.

(1) Loans 90 days past due and still accruing were comprised of one multifamily loan serviced by a third party that is past maturity with loan payments held by Esquire Bank. Based on discussions with the servicer and the borrower, the loan should be extended and payments will be applied to bring this credit current in the fourth quarter of 2020.

The following information was filed by Esquire Financial Holdings, Inc. (ESQ) on Friday, October 23, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Esquire Financial Holdings, Inc.'s Definitive Proxy Statement (Form DEF 14A) filed after their 2020 10-K Annual Report includes:

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Inside Esquire Financial Holdings, Inc.'s 10-Q Quarterly Report:

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Document And Entity Information
Condensed Consolidated Statements Of Cash Flows (Unaudited)
Condensed Consolidated Statements Of Changes In Stockholders' Equity (Unaudited)
Condensed Consolidated Statements Of Changes In Stockholders' Equity (Unaudited) (Parenthetical)
Condensed Consolidated Statements Of Comprehensive Income (Unaudited)
Condensed Consolidated Statements Of Financial Condition
Condensed Consolidated Statements Of Financial Condition (Parentheticals)
Condensed Consolidated Statements Of Income (Unaudited)
Accounting Policy (Policies)
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss) (Tables)
Accumulated Other Comprehensive Income (Loss) - Summary Of Changes In Accumulated Other Comprehensive Income (Loss) By Component, Net Of Tax (Details)
Basis Of Presentation And Summary Of Significant Accounting Policies
Basis Of Presentation And Summary Of Significant Accounting Policies (Tables)
Business And Summary Of Significant Accounting Policies (Details)
Debt Securities
Debt Securities (Tables)
Earnings Per Share
Earnings Per Share (Tables)
Earnings Per Share - Summary Of Earnings Per Share Computation (Details)
Fair Value Measurements
Fair Value Measurements (Tables)
Fair Value Measurements - Summary Of Assets And Liabilities Measured At Fair Value On Recurring Basis (Details)
Fair Value Measurements - Summary Of Estimated Fair Values Of Financial Instruments (Details)
Leases
Leases (Details)
Leases (Tables)
Leases - Lease Cost (Details)
Leases - Maturities Of Operating Lease (Details)
Loans
Loans (Tables)
Loans - Summary Of Activity In Allowance For Loan Losses By Class (Details)
Loans - Summary Of Balance In Allowance For Loan Losses And Recorded Investment In Loans By Class And Based On Impairment Method (Details)
Loans - Summary Of Impaired Loans By Segment (Details)
Loans - Summary Of Loan Composition (Details)
Loans - Summary Of Loans By Credit Quality Indicator Based On Internally Assigned Credit Grade (Details)
Loans - Summary Of Loans By Past Due Status (Details)
Noninterest Income
Noninterest Income (Details)
Noninterest Income (Tables)
Securities - Additional Disclosures (Details)
Securities - Summary Of Amortized Cost And Fair Value Of Debt Securities By Contractual Maturity (Details)
Securities - Summary Of Reconciliation Of Amortized Cost To Fair Value (Details)
Securities - Summary Of Securities In Unrealized Loss Position (Details)
Share-Based Payment Plans
Share-Based Payment Plans (Tables)
Share-Based Payment Plans - Additional Disclosures (Details)
Share-Based Payment Plans - Summary Of Options Activity (Details)
Share-Based Payment Plans - Summary Of Restricted Stock Activity (Details)
Share-Based Payment Plans - Weighted Average Assumptions (Details)

Material Contracts, Statements, Certifications & more

Esquire Financial Holdings, Inc. provided additional information to their SEC Filing as exhibits

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification
Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification
Exhibit 32: Section 1350 Certification
Ticker: ESQ
CIK: 1531031
Form Type: 10-Q Quarterly Report
Accession Number: 0001558370-20-013088
Submitted to the SEC: Fri Nov 06 2020 1:14:58 PM EST
Accepted by the SEC: Fri Nov 06 2020
Period: Wednesday, September 30, 2020
Industry: Commercial Banks

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