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Esquire Financial Holdings, Inc. (ESQ) SEC Filing 10-Q Quarterly Report for the period ending Thursday, June 30, 2022

Esquire Financial Holdings, Inc.

CIK: 1531031 Ticker: ESQ

Exhibit 99.1

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ESQUIRE FINANCIAL HOLDINGS, INC.

REPORTS SECOND QUARTER 2022 RESULTS

Strong Balance Sheet and Revenue Growth Drive Record Earnings and Returns

Jericho, NY – July 25, 2022 – 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 second quarter of 2022. Significant achievements during the quarter include:

Net income increased 19% to $6.4 million, or $0.78 per diluted share, as compared to $5.3 million, or $0.66 per diluted share on a linked quarter basis. Net income and diluted earnings per share were $4.5 million and $0.57, respectively, for the second quarter of 2021.

Industry leading returns on average assets and equity of 2.00% and 17.81%, respectively, as compared to 1.92% and 15.06% on a linked quarter basis. Returns on average assets and equity were 1.84% and 13.76%, respectively, for the second quarter of 2021.

Strong net interest margin of 4.46% anchored by variable rate commercial loans as loan yields improved 16 basis points on a linked quarter basis. The net interest margin was negatively impacted in the current quarter by elevated levels of interest earning cash balances. Approximately 59% of our loan portfolio is variable rate and primarily tied to prime.

Our loan portfolio increased $41.3 million, or 20% annualized, to $859.3 million on a linked quarter basis, as we continued to focus our digital marketing efforts and resources on higher yielding commercial loans anchored by our national litigation platform.

Continued solid credit metrics, asset quality and reserve coverage ratios with minimal nonperforming loans and a reserve for loan losses to total loans of 1.20%.

Deposits increased $65.6 million on a linked quarter basis, or 24% annualized, to $1.2 billion with a cost-of-funds of 0.10% (including demand deposits), a direct result of our highly efficient branchless and technology enabled deposit platforms.  Demand deposits and escrow-based NOW accounts represented 44% and 39% of total deposits, respectively.

Off-balance sheet sweep funds totaled $496.8 million at quarter end while the associated administrative service payments (“ASP”) fees increased to $617 thousand due to increases in short-term interest rates.  These sweeps represent additional sources of funding for future loan growth.

Growth in payment processing fee income and small business clients nationally totaling $5.5 million and 72,000, respectively. Our technology enabled payments platform facilitated the processing of $7.1 billion in payment volume across 136.1 million transactions for our clients. Fee income represents 31% of total revenue.

On June 2, 2022, the Company announced an exclusive agreement with B.E. Blank & Company (“BEB”) to provide growth capital financing to commercial law firms nationally.

Effective June 27, 2022, the Company was added as a member of the broad-market Russell 3000 Index as part of the 2022 Russell indexes reconstitution. Based upon its membership in the Russell 3000 Index, the Company has also become a member of the small-cap Russell 2000 Index.

Esquire Bank remains well above the bank regulatory “Well Capitalized” standards.


The following information was filed by Esquire Financial Holdings, Inc. (ESQ) on Monday, July 25, 2022 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 2022 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
Condensed Consolidated Statements Of Changes In Stockholders' Equity
Condensed Consolidated Statements Of Changes In Stockholders' Equity (Parenthetical)
Condensed Consolidated Statements Of Comprehensive Income
Condensed Consolidated Statements Of Financial Condition
Condensed Consolidated Statements Of Financial Condition (Parentheticals)
Condensed Consolidated Statements Of Income
Accumulated Other Comprehensive (Loss) Income
Accumulated Other Comprehensive (Loss) Income (Tables)
Accumulated Other Comprehensive (Loss) Income - 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 (Policies)
Business And Summary Of Significant Accounting Policies (Details)
Debt Securities
Debt Securities (Tables)
Debt Securities - Additional Disclosures (Details)
Debt Securities - Summary Of Reconciliation Of Amortized Cost To Fair Value (Details)
Debt Securities - Summary Of Reconciliation Of Amortized Cost To Fair Value For Held To Maturity Securities (Details)
Debt Securities - Summary Of Securities In Unrealized Loss Position (Details)
Earnings Per Share
Earnings Per Share (Tables)
Earnings Per Share - Summary Of Earnings Per Share Computation (Details)
Fair Value Measurements
Fair Value Measurements (Details)
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)
Share-Based Payment Plans
Share-Based Payment Plans (Tables)
Share-Based Payment Plans - (Details)
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)
Summary Of Securities In Unrealized Loss Position, Held To Maturity Securities (Details)

Material Contracts, Statements, Certifications & more

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

Ticker: ESQ
CIK: 1531031
Form Type: 10-Q Quarterly Report
Accession Number: 0001558370-22-013509
Submitted to the SEC: Fri Aug 12 2022 4:27:19 PM EST
Accepted by the SEC: Fri Aug 12 2022
Period: Thursday, June 30, 2022
Industry: Commercial Banks

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