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ESQUIRE FINANCIAL HOLDINGS, INC. REPORTS FIRST QUARTER 2022 RESULTS
Continued Strong Growth and Asset Sensitive Balance Sheet Well Positioned for Rising Rates JERICHO, N.Y., April 25, 2022 /PRNewswire/ -- Esquire Financial
About this update from Esquire Financial Holdings, Inc.
[{"type":"text","content":"Continued Strong Growth and Asset Sensitive Balance Sheet Well Positioned for Rising Rates \nJERICHO, N.Y., April 25, 2022 /PRNewswire/ -- 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 first quarter of 2022. Significant achievements during the quarter include:\nNet income of $5.3 million, or $0.66 per diluted share, as compared to $6.7 million, or $0.83 per diluted share on a linked quarter basis. Net income for the fourth quarter of 2021 included a tax benefit of approximately $1.2 million, or $0.14 per diluted share, related to the exercise of certain stock options.Returns on average assets and equity of 1.92% and 15.06%, respectively, as compared to 1.81% and 13.30% for the comparable prior year period.Industry leading net interest margin of 4.43% anchored by variable rate commercial loans and low-cost core deposits. Approximately 54% of our loan portfolio is variable rate and tied to prime, positively impacting earnings as short-term interest rates increase.Our loan portfolio increased $33.5 million, or 17% annualized, to $818.0 million on a linked quarter basis, as we continued to focus our efforts and resources on higher yielding variable rate commercial loans anchored by our national litigation portfolio. Excluding the final repayments of our Paycheck Protection Program (\"PPP\") loans in the quarter, annualized loan growth was approximately 20%.Continued solid credit metrics, asset quality and reserve coverage ratios with minimal nonperforming loans and a reserve for loan losses to total loans of 1.16%.On April 1, 2022, the Company finalized the sale of its legacy NFL consumer post settlement loan portfolio to a third party sponsored entity (or \"Fund\") in exchange for a nonvoting economic interest in the Fund valued at $13.5 million.Deposits increased $61.5 million on a linked quarter basis, or 24% annualized, to $1.1 billion supported by our stable low-cost core deposits with a cost-of-funds of 0.10%. Demand deposits and escrow-based NOW accounts represented 45% and 34% of total deposits, respectively, and were a direct result of our highly efficient branchless and technology-enabled deposit platforms. Off-balance sheet sweep funds totaled $618.0 million at quarter ...