Business
Esquire Financial Holdings, Inc. Reports Fourth Quarter and Full Year 2020 Results
Robust Loan and Deposit Growth, Record Revenue, and Investment in Digital Assets to Drive Future Performance JERICHO, N.Y., Jan. 25, 2021 /PRNewswire/ --
About this update from Esquire Financial Holdings, Inc.
[{"type":"text","content":"Robust Loan and Deposit Growth, Record Revenue, and Investment in Digital Assets to Drive Future Performance\n\n\nJERICHO, N.Y., Jan. 25, 2021 /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 fourth quarter and the full year 2020. Significant achievements during the current quarter when compared to the third quarter 2020 (\"linked quarter\") include:\nNet income increased to $3.9 million, or $0.51 per diluted share, as compared to $3.6 million, or $0.48 per diluted share on a linked quarter basis. Net income and diluted earnings per share were $3.9 million and $0.50, respectively, for the fourth quarter of 2019. Industry leading returns on average assets and common equity of 1.70% and 12.54%, respectively, as compared to 1.60% and 11.99% on a linked quarter basis. Significant improvement in our net interest margin to 4.49% when compared to 4.23% on a linked quarter basis, primarily driven by our growth in higher yielding attorney commercial loans. Loans increased $36.8 million, or 23% annualized, to $672.4 million on a linked quarter basis due to our commercial loan growth. Loans increased $107.1 million, or 19%, from year end 2019 due to growth in our commercial and multifamily loan portfolios. Deposits increased $58.5 million, or 31% annualized, to $804.1 million on a linked quarter basis, primarily driven by attorney commercial deposits, with a cost of funds of 0.11% (including demand deposits). Demand deposits, totaling $351.7 million, represent 44% of total deposits while off-balance sheet sweep funds totaled $380 million at year end, demonstrating the continued strength of our branchless core business model. Merchant fee income from our payment processing platform increased 23% to $4.6 million on a linked quarter basis as we continue to expand our merchant relationships and increase processing volumes. Total fee income represents 32% of total revenue for the fourth quarter of 2020. Continued solid asset quality metrics with nonperforming loans to total loans of 0.34% and a reserve for loan losses to total loans of 1.70%. The reserve ratio is 1.75%, excluding $21.9 million in SBA guaranteed PPP loans. In October 2020, we launched a new suite of best-in-class ...