ESQUIRE FINANCIAL HOLDINGS, INC. REPORTS THIRD QUARTER 2024 RESULTS
Esquire Financial Holdings (NASDAQ: ESQ) reported strong Q3 2024 results with net income of $11.4 million, or $1.34 per diluted share, up 8.3% from Q2 2024 and 15.5% from Q3 2023. The company maintained industry-leading performance with a 2.62% return on assets and 20.29% return on equity. Total loans grew by $36.4 million to $1.30 billion, driven by commercial loans. The company achieved a strong net interest margin of 6.16% and maintained solid credit metrics with an allowance for credit losses ratio of 1.50%. Deposits grew by $49.5 million to $1.54 billion with a low cost-of-funds of 0.88%.
Esquire Financial Holdings (NASDAQ: ESQ) ha riportato risultati solidi nel terzo trimestre del 2024, con un utile netto di 11,4 milioni di dollari, ovvero 1,34 dollari per azione diluita, in aumento dell'8,3% rispetto al secondo trimestre del 2024 e del 15,5% rispetto al terzo trimestre del 2023. L'azienda ha mantenuto prestazioni leader nel settore con un ritorno sulle attività del 2,62% e un ritorno sul capitale del 20,29%. I prestiti totali sono aumentati di 36,4 milioni di dollari, raggiungendo 1,30 miliardi di dollari, sostenuti principalmente dai prestiti commerciali. L'azienda ha ottenuto un forte margine d'interesse netto del 6,16% e ha mantenuto solidi parametri di credito con un rapporto di riserve per perdite su crediti dell'1,50%. I depositi sono aumentati di 49,5 milioni di dollari, arrivando a 1,54 miliardi di dollari, con un costo dei fondi molto basso dell'0,88%.
Esquire Financial Holdings (NASDAQ: ESQ) reportó sólidos resultados en el tercer trimestre de 2024 con un ingreso neto de 11.4 millones de dólares, o 1.34 dólares por acción diluida, un aumento del 8.3% respecto al segundo trimestre de 2024 y del 15.5% en comparación con el tercer trimestre de 2023. La compañía mantuvo un rendimiento líder en la industria con un retorno de activos del 2.62% y un retorno sobre el capital del 20.29%. Los préstamos totales crecieron en 36.4 millones de dólares, alcanzando 1.30 mil millones de dólares, impulsados por los préstamos comerciales. La empresa logró un sólido margen de interés neto del 6.16% y mantuvo métricas de crédito robustas con una relación de provisiones para pérdidas crediticias del 1.50%. Los depósitos aumentaron en 49.5 millones de dólares, alcanzando 1.54 mil millones de dólares, con un bajo costo de fondos del 0.88%.
Esquire Financial Holdings (NASDAQ: ESQ)는 2024년 3분기에 1,140만 달러의 순이익, 즉 희석주당 1.34달러를 보고했으며, 이는 2024년 2분기 대비 8.3%, 2023년 3분기 대비 15.5% 증가한 수치입니다. 이 회사는 2.62%의 자산수익률과 20.29%의 자기자본수익률로 업계 최고 성과를 유지하고 있습니다. 총 대출은 3,640만 달러 증가하여 13억 달러에 이르렀으며, 이는 상업 대출에 의해 주도되었습니다. 회사는 6.16%의 강력한 순이자 마진을 달성했으며, 1.50%의 대손충당금 비율로 견고한 신용 지표를 유지하고 있습니다. 예금은 4,950만 달러 증가하여 15억 4천만 달러에 도달했으며, 자금 조달 비용은 0.88%로 매우 낮습니다.
Esquire Financial Holdings (NASDAQ: ESQ) a annoncé de bons résultats pour le troisième trimestre 2024, avec un revenu net de 11,4 millions de dollars, soit 1,34 dollar par action diluée, en hausse de 8,3 % par rapport au deuxième trimestre 2024 et de 15,5 % par rapport au troisième trimestre 2023. L'entreprise a maintenu une performance leader du secteur avec un retour sur actifs de 2,62 % et un retour sur capitaux propres de 20,29 %. Les prêts totaux ont augmenté de 36,4 millions de dollars pour atteindre 1,30 milliard de dollars, soutenus par des prêts commerciaux. L'entreprise a réalisé une forte marge d'intérêt nette de 6,16 % et a maintenu des indicateurs de crédit solides avec un ratio de provisions pour pertes de crédit de 1,50 %. Les dépôts ont augmenté de 49,5 millions de dollars pour atteindre 1,54 milliard de dollars, avec un coût des fonds faible de 0,88 %.
Esquire Financial Holdings (NASDAQ: ESQ) berichtete über starke Ergebnisse im 3. Quartal 2024 mit einem Nettogewinn von 11,4 Millionen USD, oder 1,34 USD pro verwässerter Aktie, ein Anstieg um 8,3% im Vergleich zum 2. Quartal 2024 und um 15,5% im Vergleich zum 3. Quartal 2023. Das Unternehmen hielt eine branchenführende Leistung mit einer Eigenkapitalrendite von 2,62% und einer Gesamtkapitalrendite von 20,29%. Die Gesamtdarlehen stiegen um 36,4 Millionen USD auf 1,30 Milliarden USD, getrieben von gewerblichen Darlehen. Das Unternehmen erzielte eine starke Nettozinsmarge von 6,16% und hielt solide Kreditkennzahlen mit einer Rückstellung für Kreditverluste von 1,50%. Die Einlagen stiegen um 49,5 Millionen USD auf 1,54 Milliarden USD bei niedrigen Finanzierungskosten von 0,88%.
- Net income increased 15.5% YoY to $11.4 million ($1.34 per share)
- Strong net interest margin of 6.16%
- Total loan growth of $36.4 million (12% annualized)
- Deposit growth of $49.5 million with low cost-of-funds of 0.88%
- Robust capital ratios with CET1 at 15.39%
- Efficient operations with 48.1% efficiency ratio
- Payment processing income decreased by $452,000 from Q3 2023
- Noninterest expenses increased 11.6% YoY to $15.4 million
- Return on equity decreased from 21.44% in Q3 2023 to 20.29% in Q3 2024
Insights
The Q3 2024 results demonstrate exceptional performance with several notable highlights. Net income increased
Key strengths include a robust net interest margin of
The payment processing segment, while showing some decline, still processes
The operational strategy shows sophisticated balance sheet management. The focus on higher-yielding commercial law firm loans combined with short-duration agency MBS demonstrates smart risk-adjusted returns. The
The deposit strategy is equally noteworthy, with
Prudent Balance Sheet Management and Strong Growth Leads to Industry Leading Performance and Returns
"As highlighted in the second quarter earnings release, continued strong growth in low-cost core deposits coupled with our current balance sheet strategy to deploy funds in both higher yielding commercial law firm loans nationally and short duration agency mortgage-backed securities, at peak market interest rates, has produced strong quarterly results," stated Andrew C. Sagliocca, Vice Chairman, CEO, and President. "As a result of this strategy in 2024, interest earning assets, excluding cash and cash equivalents, increased
Significant achievements and key performance metrics during the current quarter and year to date include:
- On a linked quarter basis, net income increased
, or$873 thousand 8.3% , to , or$11.4 million per diluted share, as compared to$1.34 , or$10.5 million per diluted share. Net income increased$1.25 or$1.5 million 15.5% from in the third quarter of 2023, or$9.8 million per diluted share.$1.17 - Consistent industry leading returns on average assets and equity of
2.62% and20.29% for the current quarter, respectively, notwithstanding our investment in current resources, including employees and technology, for future growth. These returns were fueled by our strong net interest margin of6.16% as well as stable fee-based income. - Total loan growth on a linked quarter basis was
, or$36.4 million 12% annualized, totaling and was driven by a$1.30 billion or a$38.8 million 20% annualized increase in higher yielding commercial loans nationally, despite elevated payoffs of during the quarter. Our higher yielding commercial litigation related loans grew$39.9 million , or$59.1 million 35% annualized, on a linked quarter basis. These commercial loans have and will continue to create additional opportunities for future core deposit growth (noninterest bearing operating or DDA and escrow or IOLTA accounts nationally) through our full service commercial relationship banking programs and our branchless commercial cash management platform. - Interest earning asset growth, excluding cash and cash equivalents, was
, or$68.8 million 18% annualized, on a linked quarter basis and totaled . In early 2024, management elected to temper multifamily and commercial real estate loan growth in response to the economic environment and purchased short duration agency mortgage-backed securities with commensurate risk adjusted yields, enhancing our liquidity while improving the securities to total assets ratio to$1.58 billion 16% . - Solid credit metrics, asset quality, and reserve coverage ratios with an allowance for credit losses to loans ratio of
1.50% and a nonperforming loan to total assets ratio of0.61% , represented by one multifamily loan totaling . We have no exposure to commercial office space, no construction loans, and only$10.9 million in performing loans to the hospitality industry.$14.8 million - Continued deposit growth totaling
, or$49.5 million 13% annualized, on a linked quarter basis to , comprised of core low-cost commercial relationship deposits with a cost-of-funds of$1.54 billion 0.88% (including demand deposits). Off-balance sheet sweep funds totaled at quarter end, with approximately$488 million 73% available for additional on-balance sheet liquidity, while the associated administrative service payments ("ASP") fee income totaled for the current quarter. Additional available liquidity totaled approximately$658 thousand , excluding cash and unsecured borrowing capacity.$807 million - Stable and consistent fee income totaling
or$6.1 million 19% of total revenue, led by our payment processing platform with 84,000 small business clients nationally. Our technology enabled payments platform facilitated the processing of in credit and debit card payment volume across 152.0 million transactions for our clients in the current quarter.$9.2 billion - Strong efficiency ratio of
48.1% notwithstanding our investments in resources to support future growth and excellence in client service. - Strong capital foundation with common equity tier 1 ("CET1") and tangible common equity to tangible asset(1) ("TCE/TA") ratios of
15.39% and13.05% , respectively. Including the after-tax unrealized losses on both the available-for-sale and held-to-maturity securities portfolios of and$10.3 million , respectively, the adjusted(1) CET1 and adjusted(1) TCE/TA ratios were$4.1 million 14.36% and12.82% , respectively. Esquire Bank remains well above the bank regulatory "Well Capitalized" standards.
"We believe these key balance sheet management decisions in 2024 enhanced our Company's liquidity position, asset composition, and flexibility while producing best-in-class performance and returns as the FOMC continued to moderate its views on short-term rates for the foreseeable future," stated Tony Coelho, Chairman of the Board.
"Our prudent balance sheet management strategy including, but not limited to, active asset-liability management of our higher yielding variable rate commercial loan portfolio, including interest rate floors, coupled with measured and flexible deposit liability management and continued loan growth will produce earnings results and returns consistent with the current consensus guidance regardless of the anticipated decreases in short-term rates by the FOMC," stated Andrew C. Sagliocca, Vice Chairman, CEO, and President.
(1) See non-GAAP reconciliation provided at the end of this news release. |
Third Quarter Earnings
Net income for the quarter ended September 30, 2024 was
Net interest income for the third 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
Year to Date Earnings
Net income for the nine months ended September 30, 2024 was
Net interest income for the nine months ended September 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
Asset Quality
At September 30, 2024, we had one nonperforming loan, which is a multifamily loan totaling
Due to increases in short-term interest rates associated with the 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 September 30, 2024:
- The multifamily portfolio, excluding one nonperforming loan, totaling
, has a current weighted average DSCR and an original LTV (defined as unpaid principal balance as of September 30, 2024 divided by appraised value at origination) of approximately 1.67 and$339.9 million 54% , respectively, and the CRE portfolio, totaling , has a current weighted average DSCR and an original LTV of approximately 1.51 and$87.5 million 59% , respectively. - Multifamily loans maturing in less than one year totaled
and had a current weighted average DSCR and an original LTV of approximately 1.37 and$59.8 million 57% , respectively. CRE loans maturing in less than one year totaled and had a current weighted average DSCR and an original LTV of approximately 3.54 and$1.8 million 48% , respectively. - Multifamily loans maturing in one to two years totaled
and had a current weighted average DSCR and an original LTV of approximately 1.36 and$39.0 million 66% , respectively. CRE loans maturing in one to two years totaled and had a current weighted average DSCR and an original LTV of approximately 1.46 and$5.6 million 59% , respectively.
(1) See non-GAAP reconciliation provided at the end of this news release. |
Balance Sheet
At September 30, 2024, total assets were
The following table provides information regarding the composition of our loan portfolio for the periods presented:
September 30, | December 31, | September 30, | ||||||||||||||||
2024 | 2023 | 2023 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||
Real estate: | ||||||||||||||||||
Multifamily | $ | 350,857 | 27.0 | % | $ | 348,241 | 28.8 | % | $ | 327,653 | 29.4 | % | ||||||
Commercial real estate | 87,544 | 6.8 | 89,498 | 7.4 | 90,052 | 8.1 | ||||||||||||
1 – 4 family | 14,749 | 1.1 | 17,937 | 1.5 | 20,974 | 1.9 | ||||||||||||
Total real estate | 453,150 | 34.9 | 455,676 | 37.7 | 438,679 | 39.4 | ||||||||||||
Commercial: | ||||||||||||||||||
Litigation related | 727,749 | 56.1 | 612,457 | 50.7 | 570,831 | 51.2 | ||||||||||||
Other | 97,690 | 7.5 | 125,457 | 10.4 | 91,441 | 8.2 | ||||||||||||
Total commercial | 825,439 | 63.6 | 737,914 | 61.1 | 662,272 | 59.4 | ||||||||||||
Consumer | 18,874 | 1.5 | 14,491 | 1.2 | 13,390 | 1.2 | ||||||||||||
Total loans held for investment | $ | 1,297,463 | 100.0 | % | $ | 1,208,081 | 100.0 | % | $ | 1,114,341 | 100.0 | % | ||||||
Deferred loan fees and unearned premiums, net | (20) | (668) | (903) | |||||||||||||||
Loans, held for investment | $ | 1,297,443 | $ | 1,207,413 | $ | 1,113,438 |
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 September 30, 2024, off-balance sheet sweep funds totaled approximately
At September 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.
About Esquire Financial Holdings, Inc.
Esquire Financial Holdings, Inc. is a financial holding company headquartered in
Cautionary Note Regarding Forward-Looking Statements
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) |
September 30, | December 31, | September 30, | ||||||||
2024 | 2023 | 2023 | ||||||||
ASSETS | ||||||||||
Cash and cash equivalents | $ | 147,663 | $ | 165,209 | $ | 120,646 | ||||
Securities available-for-sale, at fair value | 211,460 | 122,107 | 114,373 | |||||||
Securities held-to-maturity, at cost | 70,794 | 77,001 | 78,779 | |||||||
Securities, restricted at cost | 3,034 | 2,928 | 2,928 | |||||||
Loans, held for investment | 1,297,443 | 1,207,413 | 1,113,438 | |||||||
Less: allowance for credit losses | (19,451) | (16,631) | (15,328) | |||||||
Loans, net of allowance | 1,277,992 | 1,190,782 | 1,098,110 | |||||||
Premises and equipment, net | 2,610 | 2,602 | 2,503 | |||||||
Other assets | 68,921 | 56,247 | 65,073 | |||||||
Total Assets | $ | 1,782,474 | $ | 1,616,876 | $ | 1,482,412 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
Demand deposits | $ | 539,434 | $ | 473,274 | $ | 472,073 | ||||
Savings, NOW and money market deposits | 982,816 | 926,264 | 802,332 | |||||||
Certificates of deposit | 14,145 | 7,761 | 8,188 | |||||||
Total deposits | 1,536,395 | 1,407,299 | 1,282,593 | |||||||
Other liabilities | 13,511 | 11,022 | 14,209 | |||||||
Total liabilities | 1,549,906 | 1,418,321 | 1,296,802 | |||||||
Total stockholders' equity | 232,568 | 198,555 | 185,610 | |||||||
Total Liabilities and Stockholders' Equity | $ | 1,782,474 | $ | 1,616,876 | $ | 1,482,412 | ||||
Selected Financial Data | ||||||||||
Common shares outstanding | 8,320,317 | 8,287,848 | 8,203,259 | |||||||
Book value per share | $ | 27.95 | $ | 23.96 | $ | 22.63 | ||||
Equity to assets | 13.05 | % | 12.28 | % | 12.52 | % | ||||
Capital Ratios (1) | ||||||||||
Tier 1 leverage ratio | 12.60 | % | 12.07 | % | 11.98 | % | ||||
Common equity tier 1 capital ratio | 15.39 | 14.13 | 14.34 | |||||||
Tier 1 capital ratio | 15.39 | 14.13 | 14.34 | |||||||
Total capital ratio | 16.64 | 15.38 | 15.59 | |||||||
Asset Quality | ||||||||||
Nonperforming loans | $ | 10,940 | $ | 10,940 | $ | — | ||||
Allowance for credit losses to total loans | 1.50 | % | 1.38 | % | 1.38 | % | ||||
Nonperforming loans to total loans | 0.84 | 0.91 | 0.00 | |||||||
Nonperforming assets to total assets | 0.61 | 0.68 | 0.00 | |||||||
Allowance to nonperforming loans | 178 | 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 | Nine Months Ended | |||||||||||||||
September 30, | June 30, | September 30, | September 30, | |||||||||||||
2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||
Interest income | $ | 29,131 | $ | 27,385 | $ | 23,901 | $ | 82,589 | $ | 66,321 | ||||||
Interest expense | 3,273 | 3,063 | 2,176 | 9,546 | 5,218 | |||||||||||
Net interest income | 25,858 | 24,322 | 21,725 | 73,043 | 61,103 | |||||||||||
Provision for credit losses | 1,000 | 1,000 | 1,200 | 3,000 | 3,025 | |||||||||||
Net interest income after provision for credit losses | 24,858 | 23,322 | 20,525 | 70,043 | 58,078 | |||||||||||
Noninterest income: | ||||||||||||||||
Payment processing fees | 5,169 | 5,322 | 5,621 | 15,787 | 16,898 | |||||||||||
(Loss) gain on equity investments | — | — | (14) | — | 4,013 | |||||||||||
Other noninterest income | 893 | 953 | 921 | 2,939 | 2,574 | |||||||||||
Total noninterest income | 6,062 | 6,275 | 6,528 | 18,726 | 23,485 | |||||||||||
Noninterest expense: | ||||||||||||||||
Employee compensation and benefits | 9,525 | 9,525 | 8,433 | 28,211 | 23,720 | |||||||||||
Other expenses | 5,833 | 5,707 | 5,326 | 16,947 | 15,496 | |||||||||||
Total noninterest expense | 15,358 | 15,232 | 13,759 | 45,158 | 39,216 | |||||||||||
Income before income taxes | 15,562 | 14,365 | 13,294 | 43,611 | 42,347 | |||||||||||
Income taxes | 4,202 | 3,878 | 3,457 | 11,706 | 11,218 | |||||||||||
Net income | $ | 11,360 | $ | 10,487 | $ | 9,837 | $ | 31,905 | $ | 31,129 | ||||||
Earnings Per Share | ||||||||||||||||
Basic | $ | 1.45 | $ | 1.34 | $ | 1.27 | $ | 4.09 | $ | 4.04 | ||||||
Diluted | 1.34 | 1.25 | 1.17 | 3.78 | 3.74 | |||||||||||
Basic - adjusted (1) | 1.45 | 1.34 | 1.28 | 4.09 | 3.66 | |||||||||||
Diluted - adjusted (1) | 1.34 | 1.25 | 1.17 | 3.78 | 3.39 | |||||||||||
Selected Financial Data | ||||||||||||||||
Return on average assets | 2.62 | % | 2.58 | % | 2.71 | % | 2.60 | % | 3.00 | % | ||||||
Return on average equity | 20.29 | 20.16 | 21.44 | 20.20 | 24.09 | |||||||||||
Adjusted return on average assets (1) | 2.62 | 2.58 | 2.71 | 2.60 | 2.71 | |||||||||||
Adjusted return on average equity (1) | 20.29 | 20.16 | 21.46 | 20.20 | 21.82 | |||||||||||
Net interest margin | 6.16 | 6.19 | 6.19 | 6.14 | 6.08 | |||||||||||
Efficiency ratio (1) | 48.1 | 49.8 | 48.7 | 49.2 | 46.4 | |||||||||||
Adjusted efficiency ratio (1) | 48.1 | 49.8 | 48.7 | 49.2 | 48.7 | |||||||||||
Cash dividends paid per common share | $ | 0.150 | $ | 0.150 | $ | 0.125 | $ | 0.450 | $ | 0.350 | ||||||
Weighted average basic shares | 7,815,197 | 7,798,441 | 7,717,971 | 7,800,230 | 7,711,722 | |||||||||||
Weighted average diluted shares | 8,503,966 | 8,402,750 | 8,379,112 | 8,439,993 | 8,330,109 |
(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 | |||||||||||||||||||||||||
September 30, | June 30, | September 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 | $ | 1,270,491 | $ | 25,122 | 7.87 | % | $ | 1,240,599 | $ | 24,216 | 7.85 | % | $ | 1,090,112 | $ | 21,408 | 7.79 | % | |||||||
Securities, includes restricted stock | 279,768 | 2,389 | 3.40 | % | 253,328 | 2,023 | 3.21 | % | 207,873 | 1,238 | 2.36 | % | |||||||||||||
Securities purchased under agreements to resell | — | — | — | — | — | — | 9,932 | 158 | 6.31 | % | |||||||||||||||
Interest earning cash and other | 120,316 | 1,620 | 5.36 | % | 87,025 | 1,146 | 5.30 | % | 84,581 | 1,097 | 5.15 | % | |||||||||||||
Total interest earning assets | 1,670,575 | 29,131 | 6.94 | % | 1,580,952 | 27,385 | 6.97 | % | 1,392,498 | 23,901 | 6.81 | % | |||||||||||||
NONINTEREST EARNING ASSETS | 52,008 | 50,688 | 49,762 | ||||||||||||||||||||||
TOTAL AVERAGE ASSETS | $ | 1,722,583 | $ | 1,631,640 | $ | 1,442,260 | |||||||||||||||||||
INTEREST BEARING LIABILITIES | |||||||||||||||||||||||||
Savings, NOW, Money Market deposits | $ | 940,920 | $ | 3,129 | 1.32 | % | $ | 899,419 | $ | 2,932 | 1.31 | % | $ | 722,684 | $ | 1,988 | 1.09 | % | |||||||
Time deposits | 12,251 | 143 | 4.64 | % | 11,702 | 130 | 4.47 | % | 18,565 | 187 | 4.00 | % | |||||||||||||
Total interest bearing deposits | 953,171 | 3,272 | 1.37 | % | 911,121 | 3,062 | 1.35 | % | 741,249 | 2,175 | 1.16 | % | |||||||||||||
Borrowings | 44 | 1 | 9.04 | % | 44 | 1 | 9.14 | % | 46 | 1 | 8.62 | % | |||||||||||||
Total interest bearing liabilities | 953,215 | 3,273 | 1.37 | % | 911,165 | 3,063 | 1.35 | % | 741,295 | 2,176 | 1.16 | % | |||||||||||||
NONINTEREST BEARING LIABILITIES | |||||||||||||||||||||||||
Demand deposits | 531,864 | 499,348 | 501,841 | ||||||||||||||||||||||
Other liabilities | 14,762 | 11,894 | 17,091 | ||||||||||||||||||||||
Total noninterest bearing liabilities | 546,626 | 511,242 | 518,932 | ||||||||||||||||||||||
Stockholders' equity | 222,742 | 209,233 | 182,033 | ||||||||||||||||||||||
TOTAL AVG. LIABILITIES AND EQUITY | $ | 1,722,583 | $ | 1,631,640 | $ | 1,442,260 | |||||||||||||||||||
Net interest income | $ | 25,858 | $ | 24,322 | $ | 21,725 | |||||||||||||||||||
Net interest spread | 5.57 | % | 5.62 | % | 5.65 | % | |||||||||||||||||||
Net interest margin | 6.16 | % | 6.19 | % | 6.19 | % | |||||||||||||||||||
Deposits (including noninterest bearing demand deposits) | $ | 1,485,035 | $ | 3,272 | 0.88 | % | $ | 1,410,469 | $ | 3,062 | 0.87 | % | $ | 1,243,090 | $ | 2,175 | 0.69 | % |
ESQUIRE FINANCIAL HOLDINGS, INC. |
Consolidated Average Balance Sheets and Average Yield/Cost (unaudited) |
(dollars in thousands) |
Nine Months Ended September 30, | |||||||||||||||||
2024 | 2023 | ||||||||||||||||
Average | Average | Average | Average | ||||||||||||||
Balance | Interest | Yield/Cost | Balance | Interest | Yield/Cost | ||||||||||||
INTEREST EARNING ASSETS | |||||||||||||||||
Loans, held for investment | $ | 1,239,950 | $ | 72,727 | 7.83 | % | $ | 1,012,469 | $ | 58,160 | 7.68 | % | |||||
Securities, includes restricted stock | 253,188 | 6,017 | 3.17 | % | 208,298 | 3,581 | 2.30 | % | |||||||||
Securities purchased under agreements to resell | — | — | — | 36,289 | 1,526 | 5.62 | % | ||||||||||
Interest earning cash and other | 96,448 | 3,845 | 5.33 | % | 86,247 | 3,054 | 4.73 | % | |||||||||
Total interest earning assets | 1,589,586 | 82,589 | 6.94 | % | 1,343,303 | 66,321 | 6.60 | % | |||||||||
NONINTEREST EARNING ASSETS | 50,439 | 45,836 | |||||||||||||||
TOTAL AVERAGE ASSETS | $ | 1,640,025 | $ | 1,389,139 | |||||||||||||
INTEREST BEARING LIABILITIES | |||||||||||||||||
Savings, NOW, Money Market deposits | $ | 900,315 | $ | 9,159 | 1.36 | % | $ | 681,613 | $ | 4,809 | 0.94 | % | |||||
Time deposits | 11,667 | 384 | 4.40 | % | 14,774 | 406 | 3.67 | % | |||||||||
Total interest bearing deposits | 911,982 | 9,543 | 1.40 | % | 696,387 | 5,215 | 1.00 | % | |||||||||
Borrowings | 44 | 3 | 9.11 | % | 46 | 3 | 8.72 | % | |||||||||
Total interest bearing liabilities | 912,026 | 9,546 | 1.40 | % | 696,433 | 5,218 | 1.00 | % | |||||||||
NONINTEREST BEARING LIABILITIES | |||||||||||||||||
Demand deposits | 502,851 | 502,211 | |||||||||||||||
Other liabilities | 14,149 | 17,737 | |||||||||||||||
Total noninterest bearing liabilities | 517,000 | 519,948 | |||||||||||||||
Stockholders' equity | 210,999 | 172,758 | |||||||||||||||
TOTAL AVG. LIABILITIES AND EQUITY | $ | 1,640,025 | $ | 1,389,139 | |||||||||||||
Net interest income | $ | 73,043 | $ | 61,103 | |||||||||||||
Net interest spread | 5.54 | % | 5.60 | % | |||||||||||||
Net interest margin | 6.14 | % | 6.08 | % | |||||||||||||
Deposits (including noninterest bearing demand deposits) | $ | 1,414,833 | $ | 9,543 | 0.90 | % | $ | 1,198,598 | $ | 5,215 | 0.58 | % |
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 | Nine Months Ended | ||||||||||||||
September 30, | June 30, | September 30, | September 30, | ||||||||||||
2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||
Net income – GAAP | $ | 11,360 | $ | 10,487 | $ | 9,837 | $ | 31,905 | $ | 31,129 | |||||
Less: loss (gain) on equity investments | — | — | 14 | — | (4,013) | ||||||||||
Add: income tax impact | — | — | (4) | — | 1,083 | ||||||||||
Adjusted net income | $ | 11,360 | $ | 10,487 | $ | 9,847 | $ | 31,905 | $ | 28,199 | |||||
Return on average assets – GAAP | 2.62 | % | 2.58 | % | 2.71 | % | 2.60 | % | 3.00 | % | |||||
Adjusted return on average assets | 2.62 | % | 2.58 | % | 2.71 | % | 2.60 | % | 2.71 | % | |||||
Return on average equity – GAAP | 20.29 | % | 20.16 | % | 21.44 | % | 20.20 | % | 24.09 | % | |||||
Adjusted return on average equity | 20.29 | % | 20.16 | % | 21.46 | % | 20.20 | % | 21.82 | % | |||||
Basic earnings per share – GAAP | $ | 1.45 | $ | 1.34 | $ | 1.27 | $ | 4.09 | $ | 4.04 | |||||
Adjusted basic earnings per share | $ | 1.45 | $ | 1.34 | $ | 1.28 | $ | 4.09 | $ | 3.66 | |||||
Diluted earnings per share – GAAP | $ | 1.34 | $ | 1.25 | $ | 1.17 | $ | 3.78 | $ | 3.74 | |||||
Adjusted diluted earnings per share | $ | 1.34 | $ | 1.25 | $ | 1.17 | $ | 3.78 | $ | 3.39 |
The following table presents a reconciliation of efficiency ratio (non-GAAP) and adjusted efficiency ratio (non-GAAP).
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | June 30, | September 30, | September 30, | ||||||||||||
2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||
Efficiency ratio – non-GAAP(1) | 48.1 | % | 49.8 | % | 48.7 | % | 49.2 | % | 46.4 | % | |||||
Noninterest expense – GAAP | $ | 15,358 | $ | 15,232 | $ | 13,759 | $ | 45,158 | $ | 39,216 | |||||
Net interest income – GAAP | 25,858 | 24,322 | 21,725 | 73,043 | 61,103 | ||||||||||
Noninterest income – GAAP | 6,062 | 6,275 | 6,528 | 18,726 | 23,485 | ||||||||||
Less: loss (gain) on equity investments | — | — | 14 | — | (4,013) | ||||||||||
Adjusted noninterest income – non-GAAP | $ | 6,062 | $ | 6,275 | $ | 6,542 | $ | 18,726 | $ | 19,472 | |||||
Adjusted efficiency ratio – non-GAAP(2) | 48.1 | % | 49.8 | % | 48.7 | % | 49.2 | % | 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):
September 30, | |||
2024 | |||
Total assets - GAAP | $ | 1,782,474 | |
Less: intangible assets | — | ||
Tangible assets ("TA") - non-GAAP | 1,782,474 | ||
Total stockholders' equity - GAAP | $ | 232,568 | |
Less: intangible assets | — | ||
Less: preferred stock | — | ||
Tangible common equity ("TCE") - non-GAAP | 232,568 | ||
Add: unrecognized losses on securities held-to-maturity, net of tax | (4,120) | ||
Adjusted TCE - non-GAAP | $ | 228,448 | |
Stockholders' equity to assets - GAAP | 13.05 | % | |
TCE to TA - non-GAAP | 13.05 | % | |
Adjusted TCE to TA - non-GAAP | 12.82 | % |
The following table presents the common equity tier 1 capital ratio and the adjusted common equity tier 1 capital ratio:
September 30, | |||
2024 | |||
Common equity tier 1 ("CET1") capital - Bank | $ | 215,499 | |
Add: unrealized losses on securities available-for-sale , net of tax | (10,319) | ||
Add: unrecognized losses on securities held-to-maturity, net of tax | (4,120) | ||
Adjusted CET1 capital - Bank | $ | 201,060 | |
Total risk-weighted assets - Bank | $ | 1,400,367 | |
CET1 capital ratio(1) | 15.39 | % | |
Adjusted CET1 capital ratio(1) | 14.36 | % |
(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-third-quarter-2024-results-302285944.html
SOURCE Esquire Financial Holdings, Inc.
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