ESQUIRE FINANCIAL HOLDINGS, INC. REPORTS SECOND QUARTER 2024 RESULTS
Esquire Financial Holdings, the holding company for Esquire Bank, announced its second quarter 2024 results. The company reported robust growth driven by its national litigation platform, resulting in increased low-cost core deposits and higher-yielding variable rate commercial loans. Key metrics include a net income of $10.5 million, or $1.25 per share, a 15.1% increase from the previous year, and a net interest margin of 6.19% for the quarter. Total loan growth for the quarter was $32.8 million, with interest-earning assets increasing by $65.4 million. Total revenue for the current quarter was $30.6 million, driven by low-cost core deposit growth and stable fee-based income. The bank maintained strong credit metrics, with a 1.47% allowance for credit losses and a low nonperforming loan ratio of 0.64%. Despite an increase in noninterest expenses, Esquire reported a strong efficiency ratio of 49.8%, supported by investments in technology and digital marketing. The company's CET1 and TCE/TA ratios were 14.89% and 12.67%, respectively.
Esquire Financial Holdings, la società madre di Esquire Bank, ha annunciato i risultati del secondo trimestre del 2024. L'azienda ha riportato una crescita robusta guidata dalla sua piattaforma nazionale di contenzioso, che ha portato a un aumento dei depositi core a basso costo e dei prestiti commerciali variabili ad alto rendimento. I principali indicatori comprendono un reddito netto di 10,5 milioni di dollari, ovvero 1,25 dollari per azione, con un aumento del 15,1% rispetto all'anno precedente, e un margine di interesse netto del 6,19% per il trimestre. La crescita totale dei prestiti per il trimestre è stata di 32,8 milioni di dollari, con un incremento degli attivi produttivi di interessi di 65,4 milioni di dollari. Il fatturato totale per il trimestre corrente è stato di 30,6 milioni di dollari, trainato da una crescita dei depositi core a basso costo e da entrate stabili basate su commissioni. La banca ha mantenuto solidi indicatori di credito, con un'accantonamento per perdite su crediti dell'1,47% e un basso rapporto di prestiti non performanti dello 0,64%. Nonostante un aumento delle spese non di interesse, Esquire ha riportato un forte rapporto di efficienza del 49,8%, supportato da investimenti in tecnologia e marketing digitale. I rapporti CET1 e TCE/TA della società erano rispettivamente del 14,89% e del 12,67%.
Esquire Financial Holdings, la empresa matriz de Esquire Bank, anunció sus resultados del segundo trimestre de 2024. La compañía reportó un crecimiento robusto impulsado por su plataforma nacional de litigios, lo que resultó en un aumento de depósitos básicos de bajo costo y préstamos comerciales a tasas variables de mayor rendimiento. Los indicadores clave incluyen un ingreso neto de 10.5 millones de dólares, o 1.25 dólares por acción, un aumento del 15.1% en comparación con el año anterior, y un margen de interés neto del 6.19% para el trimestre. El crecimiento total de préstamos para el trimestre fue de 32.8 millones de dólares, con activos generadores de intereses en aumento de 65.4 millones de dólares. Los ingresos totales para el trimestre actual fueron de 30.6 millones de dólares, impulsados por el crecimiento de depósitos básicos de bajo costo y un ingreso estable basado en comisiones. El banco mantuvo sólidos indicadores de crédito, con una reserva para pérdidas crediticias del 1.47% y una baja relación de préstamos no productivos del 0.64%. A pesar del aumento en los gastos no por intereses, Esquire reportó un fuerte ratio de eficiencia del 49.8%, respaldado por inversiones en tecnología y marketing digital. Las ratios CET1 y TCE/TA de la empresa fueron del 14.89% y 12.67%, respectivamente.
Esquire Financial Holdings는 Esquire Bank의 지주 회사로서 2024년 2분기 실적을 발표했습니다. 이 회사는 전국적인 소송 플랫폼에 의해 주도된 강력한 성장을 보고했으며, 이에 따라 저비용 기초 예금과 고수익 변동 금리 상업 대출이 증가했습니다. 주요 지표로는 1050만 달러의 순이익, 주당 1.25달러, 작년 대비 15.1% 증가, 그리고 6.19%의 순이자 마진이 있습니다. 이번 분기의 총 대출 규모는 3280만 달러였으며, 이자 발생 자산이 6540만 달러 증가했습니다. 현재 분기의 총 수익은 3060만 달러로, 저비용 기초 예금 성장과 안정적인 수수료 기반 소득에 의해 주도되었습니다. 은행은 강력한 신용 지표를 유지하며, 1.47%의 대출 손실 충당금 및 0.64%의 저조한 부실 대출 비율을 기록했습니다. 비록 비이자 비용이 증가했지만, Esquire는 기술 및 디지털 마케팅에 대한 투자를 통해 49.8%의 강력한 효율성 비율을 보고했습니다. 회사의 CET1 및 TCE/TA 비율은 각각 14.89%와 12.67%였습니다.
Esquire Financial Holdings, la société mère de Esquire Bank, a annoncé ses résultats pour le deuxième trimestre 2024. L'entreprise a enregistré une croissance solide grâce à sa plateforme nationale de litiges, entraînant une augmentation des dépôts fondamentaux à faible coût et des prêts commerciaux à taux variable plus rémunérateurs. Les chiffres clés incluent un revenu net de 10,5 millions de dollars, soit 1,25 dollar par action, soit une augmentation de 15,1% par rapport à l'année précédente, et une marge d'intérêt nette de 6,19% pour le trimestre. La croissance totale des prêts pour le trimestre a été de 32,8 millions de dollars, avec des actifs générant des intérêts augmentant de 65,4 millions de dollars. Le chiffre d'affaires total pour le trimestre en cours a été de 30,6 millions de dollars, soutenu par la croissance des dépôts fondamentaux à faible coût et des revenus stables basés sur les frais. La banque a maintenu de solides indicateurs de crédit, avec une provision pour pertes de crédit de 1,47% et un faible ratio de prêts non performants de 0,64%. Malgré une augmentation des dépenses non liées aux intérêts, Esquire a enregistré un fort ratio d'efficacité de 49,8%, soutenu par des investissements dans la technologie et le marketing numérique. Les ratios CET1 et TCE/TA de l'entreprise étaient respectivement de 14,89% et 12,67%.
Esquire Financial Holdings, die Muttergesellschaft der Esquire Bank, hat ihre Ergebnisse für das zweite Quartal 2024 bekanntgegeben. Das Unternehmen berichtete von robustem Wachstum, das durch seine nationale Rechtsstreitplattform vorangetrieben wurde, was zu höheren kostengünstigen Kern-Einlagen und variabel verzinsten Gewerbe-Darlehen führte. Zu den wichtigsten Kennzahlen gehören ein Nettogewinn von 10,5 Millionen USD, bzw. 1,25 USD pro Aktie, was einem Anstieg von 15,1% im Vergleich zum Vorjahr entspricht, und eine Nettozinsspanne von 6,19% für das Quartal. Das insgesamt vergebene Darlehen wuchs im Quartal um 32,8 Millionen USD, während die zinserzeugenden Vermögenswerte um 65,4 Millionen USD zunahmen. Der Gesamterlös für das laufende Quartal betrug 30,6 Millionen USD, was durch das Wachstum kostengünstiger Kern-Einlagen und stabiles provisionsbasiertes Einkommen unterstützt wurde. Die Bank wies starke Kreditkennzahlen auf, mit einer Rückstellung für Kreditverluste von 1,47% und einem niedrigen Verhältnis notleidender Kredite von 0,64%. Trotz eines Anstiegs der nichtzinsbezogenen Aufwendungen berichtete Esquire von einem starken Effizienzverhältnis von 49,8%, unterstützt durch Investitionen in Technologie und digitales Marketing. Die CET1- und TCE/TA-Verhältnisse des Unternehmens betrugen 14,89% bzw. 12,67%.
- Net income of $10.5 million, a 15.1% increase from Q2 2023.
- Net interest margin increased to 6.19% for the quarter.
- Total revenue for Q2 2024 was $30.6 million, driven by low-cost core deposit growth.
- Total loan growth of $32.8 million for the quarter.
- Strong efficiency ratio of 49.8%, supported by investments in technology and digital marketing.
- CET1 and TCE/TA ratios were 14.89% and 12.67%, respectively.
- Noninterest expense increased by $2.3 million, or 17.4%, primarily due to higher employee compensation and benefits.
National Litigation Platform Continues to Drive Strong Growth and Industry Leading Returns
"In 2024, our focus on creating long-term stakeholder value continued as growth in low-cost core deposits from our national litigation platform was invested in higher yielding variable rate commercial loans and short-term agency mortgage-backed securities at the current peak in interest rates. As part of our ALCO process, management proactively increased the investment portfolio to approximately
Significant achievements and key performance metrics during the current quarter and year to date of 2024 include:
- On a linked quarter basis, net income increased
$429 thousand 4.3% to$10.5 million $1.25 $10.1 million $1.20 $1.4 million 15.1% from$9.1 million $1.10 - Consistent industry leading returns on average assets and equity of
2.58% and20.16% for the current quarter, respectively, as compared to2.59% and20.14% on a linked quarter basis despite our continued investment in current resources for future growth. These returns were fueled by the continued expansion of our total revenue base to$30.6 million 6.19% (fueled by low-cost core deposit growth) as well as stable fee-based income. - Total loan growth on a linked quarter basis was
$32.8 million 11% annualized, totaling$1.26 billion $32.3 million 17% annualized increase in higher yielding variable rate commercial loans nationally. These commercial loans, primarily to law firms, have and will continue to create additional opportunities for continued core deposit growth (noninterest bearing operating or DDA and escrow or IOLTA accounts) through our full commercial relationship banking programs and our branchless commercial cash management platform. - Interest earning asset growth, excluding cash and cash equivalents, was
$65.4 million 18% annualized, on a linked quarter basis and totaled$1.51 billion 15% . - Solid credit metrics, asset quality, and reserve coverage ratios with a
1.47% allowance for credit losses to loans ratio and nonperforming loan to total assets ratio of0.64% , represented by one multifamily loan totaling$10.9 million $15.0 million - Continued deposit growth totaling
$52.8 million 15% annualized, on a linked quarter basis to$1.49 billion 0.87% (including demand deposits). Off-balance sheet sweep funds totaled$408.0 million 67% available for additional on-balance sheet liquidity, while the associated administrative service payments ("ASP") fee income totaled$620 thousand $653 million - Stable and consistent fee income totaling
$6.3 million 21% of total revenue, led by our payment processing platform with 83,000 small business clients nationally. Our technology enabled payments platform facilitated the processing of$9.3 billion - Strong efficiency ratio of
49.8% notwithstanding our investments in resources to support future growth and excellence in client service. - Launched our redesigned website (integrated with our marketing cloud, CRM platform, and Lawyer IQ platform) including the integration of AI driven sales content to improve current user engagement and prospective client acquisition.
- Strong capital foundation with common equity tier 1 ("CET1") and tangible common equity to tangible asset(1) ("TCE/TA") ratios of
14.89% and12.67% , respectively. Including the after-tax unrealized losses on both the available-for-sale and held-to-maturity securities portfolios of$14.2 million $6.0 million 13.41% and12.32% , respectively. Esquire Bank remains well above the bank regulatory "Well Capitalized" standards.
"Our industry leading performance, strong balance sheet management, and proven growth trends will continue to create value for all stakeholders beyond our financial sector peers," stated Tony Coelho, Chairman of the Board. "We will continue to remain steadfast in our vision – to build a client-centric and tech-focused company that is disruptive to the national markets we serve while generating best-in-class performance and returns."
"Our current balance sheet management strategy to increase short duration agency mortgage-backed securities rather than originate multifamily and commercial real estate loans only impacts the composition of our interest earning assets and does not change our views for growth and earnings in 2024," stated Andrew C. Sagliocca. "At the same time, we believe these decisions enhance our Company's liquidity position, asset composition, and flexibility in the future as inflation slows and the Federal Reserve moderates its views on short-term rates in the near future."
(1) See non-GAAP reconciliation provided at the end of this news release.
Net income for the quarter ended June 30, 2024 was
Net interest income for the second quarter of 2024 increased
The provision for credit losses was
Noninterest income totaled
Noninterest expense increased
The Company's efficiency ratio was
The effective tax rate was
Net income for the six months ended June 30, 2024 was
Net interest income for the six months ended June 30, 2024 increased
The provision for credit losses was
Noninterest income totaled
Noninterest expense increased
(1) See non-GAAP reconciliation provided at the end of this news release.
The Company's efficiency ratio was
The effective tax rate was
At June 30, 2024, we had one nonperforming loan totaling
Due to increases in short-term interest rates associated with the current inflationary environment since 2022, management enhanced its ongoing credit risk management including risk management of its commercial real estate loan portfolio. The following is a brief summary of our ongoing risk management for our multifamily and CRE portfolios as of June 30, 2024:
- The multifamily portfolio, excluding one nonperforming loan, totaling
$341.2 million 54% , respectively, and the CRE portfolio, totaling$88.4 million 59% , respectively. - Multifamily loans maturing in less than one year totaled
$47.0 million 55% , respectively. CRE loans maturing in less than one year totaled$2.2 million 47% , respectively. - Multifamily loans maturing in one to two years totaled
$50.3 million 66% , respectively. CRE loans maturing in one to two years totaled$2.2 million 61% , respectively.
(1) See non-GAAP reconciliation provided at the end of this news release.
At June 30, 2024, total assets were
The following table provides information regarding the composition of our loan portfolio for the periods presented:
June 30, | December 31, | June 30, | ||||||||||||||||
2024 | 2023 | 2023 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||
Real estate: | ||||||||||||||||||
Multifamily | $ | 352,097 | 27.9 | % | $ | 348,241 | 28.8 | % | $ | 298,718 | 28.3 | % | ||||||
Commercial real estate | 88,376 | 7.0 | 89,498 | 7.4 | 91,057 | 8.6 | ||||||||||||
1 – 4 family | 15,336 | 1.2 | 17,937 | 1.5 | 21,606 | 2.0 | ||||||||||||
Total real estate | 455,809 | 36.1 | 455,676 | 37.7 | 411,381 | 38.9 | ||||||||||||
Commercial: | ||||||||||||||||||
Litigation related | 668,676 | 53.0 | 612,457 | 50.7 | 526,076 | 49.8 | ||||||||||||
Other | 117,917 | 9.4 | 125,457 | 10.4 | 108,814 | 10.3 | ||||||||||||
Total commercial | 786,593 | 62.4 | 737,914 | 61.1 | 634,890 | 60.1 | ||||||||||||
Consumer | 19,010 | 1.5 | 14,491 | 1.2 | 10,500 | 1.0 | ||||||||||||
Total loans held for investment | $ | 1,261,412 | 100.0 | % | $ | 1,208,081 | 100.0 | % | $ | 1,056,771 | 100.0 | % | ||||||
Deferred loan fees and unearned | (350) | (668) | (989) | |||||||||||||||
Loans, held for investment | $ | 1,261,062 | $ | 1,207,413 | $ | 1,055,782 | ||||||||||||
Total deposits were
Due to the nature of our larger mass tort and class action settlements related to the litigation vertical, we participate in FDIC insured sweep programs as well as treasury secured money market funds. As of June 30, 2024, off-balance sheet sweep funds totaled approximately
At June 30, 2024, we had the ability to borrow, on a secured basis, up to
Stockholders' equity increased
Esquire Bank remains well above bank regulatory "Well Capitalized" standards.
Esquire Financial Holdings, Inc. is a financial holding company headquartered in
This press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 relating to future results of the Company. Forward-looking statements are subject to many risks and uncertainties, including, but not limited to: changes in business plans as circumstances warrant; changes in general economic, business and political conditions, including changes in the financial markets; and other risks detailed in the "Cautionary Note Regarding Forward-Looking Statements," "Risk Factors" and other sections of the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission. The forward-looking statements included in this press release are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "might," "should," "could," "predict," "potential," "believe," "expect," "attribute," "continue," "will," "anticipate," "seek," "estimate," "intend," "plan," "projection," "goal," "target," "aim," "would," "annualized" and "outlook," or similar terminology. Any forward-looking statements presented herein are made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise, except as may be required by law.
ESQUIRE FINANCIAL HOLDINGS, INC. | ||||||||||
Consolidated Statement of Condition (unaudited) | ||||||||||
(dollars in thousands except per share data) | ||||||||||
June 30, | December 31, | June 30, | ||||||||
2024 | 2023 | 2023 | ||||||||
ASSETS | ||||||||||
Cash and cash equivalents | $ | 152,733 | $ | 165,209 | $ | 106,199 | ||||
Securities purchased under agreements to resell, at cost | — | — | 49,505 | |||||||
Securities available-for-sale, at fair value | 176,814 | 122,107 | 103,681 | |||||||
Securities held-to-maturity, at cost | 73,062 | 77,001 | 80,883 | |||||||
Securities, restricted at cost | 3,034 | 2,928 | 2,928 | |||||||
Loans, held for investment | 1,261,062 | 1,207,413 | 1,055,782 | |||||||
Less: allowance for credit losses | (18,521) | (16,631) | (14,179) | |||||||
Loans, net of allowance | 1,242,541 | 1,190,782 | 1,041,603 | |||||||
Premises and equipment, net | 2,809 | 2,602 | 2,501 | |||||||
Other assets | 64,721 | 56,247 | 63,254 | |||||||
Total Assets | $ | 1,715,714 | $ | 1,616,876 | $ | 1,450,554 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
Demand deposits | $ | 482,988 | $ | 473,274 | $ | 508,916 | ||||
Savings, NOW and money market deposits | 991,953 | 926,264 | 729,586 | |||||||
Certificates of deposit | 11,952 | 7,761 | 20,482 | |||||||
Total deposits | 1,486,893 | 1,407,299 | 1,258,984 | |||||||
Other liabilities | 11,410 | 11,022 | 12,664 | |||||||
Total liabilities | 1,498,303 | 1,418,321 | 1,271,648 | |||||||
Total stockholders' equity | 217,411 | 198,555 | 178,906 | |||||||
Total Liabilities and Stockholders' Equity | $ | 1,715,714 | $ | 1,616,876 | $ | 1,450,554 | ||||
Selected Financial Data | ||||||||||
Common shares outstanding | 8,292,948 | 8,287,848 | 8,192,379 | |||||||
Book value per share | $ | 26.22 | $ | 23.96 | $ | 21.84 | ||||
Equity to assets | 12.67 | % | 12.28 | % | 12.33 | % | ||||
Capital Ratios (1) | ||||||||||
Tier 1 leverage ratio | 12.53 | % | 12.07 | % | 11.72 | % | ||||
Common equity tier 1 capital ratio | 14.89 | 14.13 | 14.27 | |||||||
Tier 1 capital ratio | 14.89 | 14.13 | 14.27 | |||||||
Total capital ratio | 16.14 | 15.38 | 15.52 | |||||||
Asset Quality | ||||||||||
Nonperforming loans | $ | 10,940 | $ | 10,940 | $ | 4 | ||||
Allowance for credit losses to total loans | 1.47 | % | 1.38 | % | 1.34 | % | ||||
Nonperforming loans to total loans | 0.87 | 0.91 | 0.00 | |||||||
Nonperforming assets to total assets | 0.64 | 0.68 | 0.00 | |||||||
Allowance to nonperforming loans | 169 | 152 | NM | |||||||
________________________________________ | |
(1) | Regulatory capital ratios presented on bank-only basis. The Bank has no recorded intangible assets on the Statement of Financial Condition, and accordingly, tangible common equity is equal to common equity. |
NM – Not meaningful | |
ESQUIRE FINANCIAL HOLDINGS, INC. | ||||||||||||||||
Consolidated Income Statement (unaudited) | ||||||||||||||||
(dollars in thousands except per share data) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | March 31, | June 30, | June 30, | |||||||||||||
2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||
Interest income | $ | 27,385 | $ | 26,073 | $ | 22,055 | $ | 53,458 | $ | 42,420 | ||||||
Interest expense | 3,063 | 3,210 | 1,966 | 6,273 | 3,042 | |||||||||||
Net interest income | 24,322 | 22,863 | 20,089 | 47,185 | 39,378 | |||||||||||
Provision for credit losses | 1,000 | 1,000 | 1,325 | 2,000 | 1,825 | |||||||||||
Net interest income after provision for credit losses | 23,322 | 21,863 | 18,764 | 45,185 | 37,553 | |||||||||||
Noninterest income: | ||||||||||||||||
Payment processing fees | 5,322 | 5,296 | 5,764 | 10,618 | 11,277 | |||||||||||
Gain on equity investments | — | — | — | — | 4,027 | |||||||||||
Other noninterest income | 953 | 1,093 | 931 | 2,046 | 1,653 | |||||||||||
Total noninterest income | 6,275 | 6,389 | 6,695 | 12,664 | 16,957 | |||||||||||
Noninterest expense: | ||||||||||||||||
Employee compensation and benefits | 9,525 | 9,161 | 7,803 | 18,686 | 15,287 | |||||||||||
Other expenses | 5,707 | 5,407 | 5,173 | 11,114 | 10,170 | |||||||||||
Total noninterest expense | 15,232 | 14,568 | 12,976 | 29,800 | 25,457 | |||||||||||
Income before income taxes | 14,365 | 13,684 | 12,483 | 28,049 | 29,053 | |||||||||||
Income taxes | 3,878 | 3,626 | 3,370 | 7,504 | 7,761 | |||||||||||
Net income | $ | 10,487 | $ | 10,058 | $ | 9,113 | $ | 20,545 | $ | 21,292 | ||||||
Earnings Per Share | ||||||||||||||||
Basic | $ | 1.34 | $ | 1.29 | $ | 1.18 | $ | 2.64 | $ | 2.76 | ||||||
Diluted | 1.25 | 1.20 | 1.10 | 2.45 | 2.57 | |||||||||||
Basic - adjusted (1) | 1.34 | 1.29 | 1.18 | 2.64 | 2.38 | |||||||||||
Diluted - adjusted (1) | 1.25 | 1.20 | 1.10 | 2.45 | 2.21 | |||||||||||
Selected Financial Data | ||||||||||||||||
Return on average assets | 2.58 | % | 2.59 | % | 2.65 | % | 2.59 | % | 3.15 | % | ||||||
Return on average equity | 20.16 | 20.14 | 21.03 | 20.15 | 25.55 | |||||||||||
Adjusted return on average assets (1) | 2.58 | 2.59 | 2.65 | 2.59 | 2.72 | |||||||||||
Adjusted return on average equity (1) | 20.16 | 20.14 | 21.03 | 20.15 | 22.02 | |||||||||||
Net interest margin | 6.19 | 6.06 | 6.02 | 6.13 | 6.02 | |||||||||||
Efficiency ratio (1) | 49.8 | 49.8 | 48.4 | 49.8 | 45.2 | |||||||||||
Adjusted efficiency ratio (1) | 49.8 | 49.8 | 48.4 | 49.8 | 48.7 | |||||||||||
Cash dividends paid per common share | $ | 0.150 | $ | 0.150 | $ | 0.125 | $ | 0.300 | $ | 0.225 | ||||||
Weighted average basic shares | 7,798,441 | 7,786,887 | 7,708,350 | 7,792,664 | 7,708,546 | |||||||||||
Weighted average diluted shares | 8,402,750 | 8,401,752 | 8,299,704 | 8,402,119 | 8,301,149 | |||||||||||
________________________________________ | |
(1) | See non-GAAP reconciliation provided elsewhere herein. |
ESQUIRE FINANCIAL HOLDINGS, INC. | |||||||||||||||||||||||||
Consolidated Average Balance Sheets and Average Yield/Cost (unaudited) | |||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
June 30, | March 31, | June 30, | |||||||||||||||||||||||
2024 | 2024 | 2023 | |||||||||||||||||||||||
Average | Average | Average | Average | Average | Average | ||||||||||||||||||||
Balance | Interest | Yield/Cost | Balance | Interest | Yield/Cost | Balance | Interest | Yield/Cost | |||||||||||||||||
INTEREST EARNING ASSETS | |||||||||||||||||||||||||
Loans, held for investment | $ | 1,240,599 | $ | 24,216 | 7.85 | % | $ | 1,208,429 | $ | 23,389 | 7.78 | % | $ | 993,353 | $ | 19,137 | 7.73 | % | |||||||
Securities, includes restricted stock | 253,328 | 2,023 | 3.21 | % | 226,175 | 1,605 | 2.85 | % | 208,211 | 1,189 | 2.29 | % | |||||||||||||
Securities purchased under agreements | — | — | — | — | — | — | 49,963 | 715 | 5.74 | % | |||||||||||||||
Interest earning cash and other | 87,025 | 1,146 | 5.30 | % | 81,740 | 1,079 | 5.31 | % | 85,991 | 1,014 | 4.73 | % | |||||||||||||
Total interest earning assets | 1,580,952 | 27,385 | 6.97 | % | 1,516,344 | 26,073 | 6.92 | % | 1,337,518 | 22,055 | 6.61 | % | |||||||||||||
NONINTEREST EARNING ASSETS | 50,688 | 48,602 | 44,004 | ||||||||||||||||||||||
TOTAL AVERAGE ASSETS | $ | 1,631,640 | $ | 1,564,946 | $ | 1,381,522 | |||||||||||||||||||
INTEREST BEARING LIABILITIES | |||||||||||||||||||||||||
Savings, NOW, Money Market deposits | $ | 899,419 | $ | 2,932 | 1.31 | % | $ | 860,159 | $ | 3,098 | 1.45 | % | $ | 673,154 | $ | 1,809 | 1.08 | % | |||||||
Time deposits | 11,702 | 130 | 4.47 | % | 11,041 | 111 | 4.04 | % | 16,234 | 156 | 3.85 | % | |||||||||||||
Total interest bearing deposits | 911,121 | 3,062 | 1.35 | % | 871,200 | 3,209 | 1.48 | % | 689,388 | 1,965 | 1.14 | % | |||||||||||||
Borrowings | 44 | 1 | 9.14 | % | 45 | 1 | 8.94 | % | 46 | 1 | 8.72 | % | |||||||||||||
Total interest bearing liabilities | 911,165 | 3,063 | 1.35 | % | 871,245 | 3,210 | 1.48 | % | 689,434 | 1,966 | 1.14 | % | |||||||||||||
NONINTEREST BEARING LIABILITIES | |||||||||||||||||||||||||
Demand deposits | 499,348 | 477,020 | 500,058 | ||||||||||||||||||||||
Other liabilities | 11,894 | 15,787 | 18,231 | ||||||||||||||||||||||
Total noninterest bearing liabilities | 511,242 | 492,807 | 518,289 | ||||||||||||||||||||||
Stockholders' equity | 209,233 | 200,894 | 173,799 | ||||||||||||||||||||||
TOTAL AVG. LIABILITIES AND EQUITY | $ | 1,631,640 | $ | 1,564,946 | $ | 1,381,522 | |||||||||||||||||||
Net interest income | $ | 24,322 | $ | 22,863 | $ | 20,089 | |||||||||||||||||||
Net interest spread | 5.62 | % | 5.44 | % | 5.47 | % | |||||||||||||||||||
Net interest margin | 6.19 | % | 6.06 | % | 6.02 | % | |||||||||||||||||||
Deposits (including noninterest bearing | $ | 1,410,469 | $ | 3,062 | 0.87 | % | $ | 1,348,220 | $ | 3,209 | 0.96 | % | $ | 1,189,446 | $ | 1,965 | 0.66 | % | |||||||
ESQUIRE FINANCIAL HOLDINGS, INC. | |||||||||||||||||
Consolidated Average Balance Sheets and Average Yield/Cost (unaudited) | |||||||||||||||||
(dollars in thousands) | |||||||||||||||||
Six Months Ended June 30, | |||||||||||||||||
2024 | 2023 | ||||||||||||||||
Average | Average | Average | Average | ||||||||||||||
Balance | Interest | Yield/Cost | Balance | Interest | Yield/Cost | ||||||||||||
INTEREST EARNING ASSETS | |||||||||||||||||
Loans, held for investment | $ | 1,224,513 | $ | 47,605 | 7.82 | % | $ | 972,753 | $ | 36,752 | 7.62 | % | |||||
Securities, includes restricted stock | 239,752 | 3,628 | 3.04 | % | 208,513 | 2,343 | 2.27 | % | |||||||||
Securities purchased under agreements to resell | — | — | — | 49,686 | 1,368 | 5.55 | % | ||||||||||
Interest earning cash and other | 84,382 | 2,225 | 5.30 | % | 87,094 | 1,957 | 4.53 | % | |||||||||
Total interest earning assets | 1,548,647 | 53,458 | 6.94 | % | 1,318,046 | 42,420 | 6.49 | % | |||||||||
NONINTEREST EARNING ASSETS | 49,646 | 44,094 | |||||||||||||||
TOTAL AVERAGE ASSETS | $ | 1,598,293 | $ | 1,362,140 | |||||||||||||
INTEREST BEARING LIABILITIES | |||||||||||||||||
Savings, NOW, Money Market deposits | $ | 879,789 | $ | 6,030 | 1.38 | % | $ | 660,737 | $ | 2,821 | 0.86 | % | |||||
Time deposits | 11,372 | 241 | 4.26 | % | 12,848 | 219 | 3.44 | % | |||||||||
Total interest bearing deposits | 891,161 | 6,271 | 1.42 | % | 673,585 | 3,040 | 0.91 | % | |||||||||
Borrowings | 45 | 2 | 8.94 | % | 46 | 2 | 8.77 | % | |||||||||
Total interest bearing liabilities | 891,206 | 6,273 | 1.42 | % | 673,631 | 3,042 | 0.91 | % | |||||||||
NONINTEREST BEARING LIABILITIES | |||||||||||||||||
Demand deposits | 488,184 | 502,399 | |||||||||||||||
Other liabilities | 13,840 | 18,065 | |||||||||||||||
Total noninterest bearing liabilities | 502,024 | 520,464 | |||||||||||||||
Stockholders' equity | 205,063 | 168,045 | |||||||||||||||
TOTAL AVG. LIABILITIES AND EQUITY | $ | 1,598,293 | $ | 1,362,140 | |||||||||||||
Net interest income | $ | 47,185 | $ | 39,378 | |||||||||||||
Net interest spread | 5.52 | % | 5.58 | % | |||||||||||||
Net interest margin | 6.13 | % | 6.02 | % | |||||||||||||
Deposits (including noninterest bearing demand deposits) | $ | 1,379,345 | $ | 6,271 | 0.91 | % | $ | 1,175,984 | $ | 3,040 | 0.52 | % | |||||
ESQUIRE FINANCIAL HOLDINGS, INC.
Consolidated Non-GAAP Financial Measure Reconciliation (unaudited)
(all dollars in thousands except per share data)
We believe that these non-GAAP financial measures provide information that is important to investors and that is useful in understanding our financial position, results and ratios. However, these non-GAAP financial measures are supplemental and are not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for this measure, this presentation may not be comparable to other similarly titled measures by other companies.
Adjusted net income, which is used to compute adjusted return on average assets, adjusted return on average equity and adjusted earnings per share, excludes the impact of the recognized gain, net of tax, on the Company's equity investments.
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | March 31, | June 30, | June 30, | ||||||||||||
2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||
Net income – GAAP | $ | 10,487 | $ | 10,058 | $ | 9,113 | $ | 20,545 | $ | 21,292 | |||||
Less: gain on equity investments | — | — | — | — | (4,027) | ||||||||||
Add: income tax impact | — | — | — | — | 1,087 | ||||||||||
Adjusted net income | $ | 10,487 | $ | 10,058 | $ | 9,113 | $ | 20,545 | $ | 18,352 | |||||
Return on average assets – GAAP | 2.58 | % | 2.59 | % | 2.65 | % | 2.59 | % | 3.15 | % | |||||
Adjusted return on average assets | 2.58 | % | 2.59 | % | 2.65 | % | 2.59 | % | 2.72 | % | |||||
Return on average equity – GAAP | 20.16 | % | 20.14 | % | 21.03 | % | 20.15 | % | 25.55 | % | |||||
Adjusted return on average equity | 20.16 | % | 20.14 | % | 21.03 | % | 20.15 | % | 22.02 | % | |||||
Basic earnings per share – GAAP | $ | 1.34 | $ | 1.29 | $ | 1.18 | $ | 2.64 | $ | 2.76 | |||||
Adjusted basic earnings per share | $ | 1.34 | $ | 1.29 | $ | 1.18 | $ | 2.64 | $ | 2.38 | |||||
Diluted earnings per share – GAAP | $ | 1.25 | $ | 1.20 | $ | 1.10 | $ | 2.45 | $ | 2.57 | |||||
Adjusted diluted earnings per share | $ | 1.25 | $ | 1.20 | $ | 1.10 | $ | 2.45 | $ | 2.21 | |||||
The following table presents a reconciliation of efficiency ratio (non-GAAP) and adjusted efficiency ratio (non-GAAP).
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | March 31, | June 30, | June 30, | ||||||||||||
2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||
Efficiency ratio – non-GAAP(1) | 49.8 | % | 49.8 | % | 48.4 | % | 49.8 | % | 45.2 | % | |||||
Noninterest expense – GAAP | $ | 15,232 | $ | 14,568 | $ | 12,976 | $ | 29,800 | $ | 25,457 | |||||
Net interest income – GAAP | 24,322 | 22,863 | 20,089 | 47,185 | 39,378 | ||||||||||
Noninterest income – GAAP | 6,275 | 6,389 | 6,695 | 12,664 | 16,957 | ||||||||||
Less: gain on equity investments | — | — | — | — | (4,027) | ||||||||||
Adjusted noninterest income – non-GAAP | $ | 6,275 | $ | 6,389 | $ | 6,695 | $ | 12,664 | $ | 12,930 | |||||
Adjusted efficiency ratio – non-GAAP(2) | 49.8 | % | 49.8 | % | 48.4 | % | 49.8 | % | 48.7 | % | |||||
(1) | The reported efficiency ratio is a non-GAAP measure calculated by dividing GAAP noninterest expense by the sum of GAAP net interest income and GAAP noninterest income. |
(2) | The adjusted efficiency ratio is a non-GAAP measure calculated by dividing GAAP noninterest expense by the sum of GAAP net interest income and adjusted noninterest income. |
The following table presents the adjusted tangible common equity to tangible assets calculation (non-GAAP):
June 30, | |||
2024 | |||
Total assets - GAAP | $ | 1,715,714 | |
Less: intangible assets | — | ||
Tangible assets ("TA") - non-GAAP | 1,715,714 | ||
Total stockholders' equity - GAAP | $ | 217,411 | |
Less: intangible assets | — | ||
Less: preferred stock | — | ||
Tangible common equity ("TCE") - non-GAAP | 217,411 | ||
Add: unrecognized losses on securities held-to-maturity, net of tax | (6,006) | ||
Adjusted TCE - non-GAAP | $ | 211,405 | |
Stockholders' equity to assets - GAAP | 12.67 | % | |
TCE to TA - non-GAAP | 12.67 | % | |
Adjusted TCE to TA - non-GAAP | 12.32 | % | |
The following table presents the common equity tier 1 capital ratio and the adjusted common equity tier 1 capital ratio:
June 30, | |||
2024 | |||
Common equity tier 1 ("CET1") capital - Bank | $ | 203,293 | |
Add: unrealized losses on securities available-for-sale, net of tax | (14,241) | ||
Add: unrecognized losses on securities held-to-maturity, net of tax | (6,006) | ||
Adjusted CET1 capital - Bank | $ | 183,046 | |
Total risk-weighted assets - Bank | $ | 1,365,132 | |
CET1 capital ratio(1) | 14.89 | % | |
Adjusted CET1 capital ratio(1) | 13.41 | % | |
(1) | Regulatory capital ratios presented on bank-only basis. The Bank has no recorded intangible assets on the Statement of Financial Condition, and accordingly, tangible common equity is equal to common equity. |
View original content:https://www.prnewswire.com/news-releases/esquire-financial-holdings-inc-reports-second-quarter-2024-results-302206576.html
SOURCE Esquire Financial Holdings, Inc.
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