Business
ESQUIRE FINANCIAL HOLDINGS, INC. REPORTS FOURTH QUARTER AND FULL YEAR 2021 RESULTS
Loan and Revenue Growth Continues to Drive Record Earnings and Returns JERICHO, N.Y., Jan. 25, 2022 /PRNewswire/ -- Esquire Financial Holdings, Inc. (NASDAQ:
About this update from Esquire Financial Holdings, Inc.
[{"type":"text","content":"Loan and Revenue Growth Continues to Drive Record Earnings and Returns\n\n\nJERICHO, N.Y., Jan. 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 fourth quarter and full year of 2021. Significant achievements during the quarter include:\nNet income of $6.7 million, or $0.83 per diluted share, as compared to $2.5 million, or $0.32 per diluted share on a linked quarter basis. Returns on average assets and common equity of 2.44% and 19.19%, respectively, as compared to 0.97% and 7.32% on a linked quarter basis. Current quarter includes a tax benefit of approximately $1.2 million, or $0.14 per diluted share, related to the exercise of certain stock options. Excluding this tax benefit, adjusted (1) net income, diluted earnings per share, return on average assets, and return on average common equity would have been $5.6 million, $0.69, 2.02%, and 15.85%, respectively. Industry leading net interest margin of 4.48% despite the sustained low interest rate environment and its negative effects on industry-wide median net interest margins. Loans held for investment increased $40.4 million, or 22% annualized, to $784.5 million on a linked quarter basis. Excluding repayments on Paycheck Protection Program (\"PPP\") loans totaling $7.4 million, loans held for investment increased 26% annualized on a linked quarter basis as the Company continues to deploy excess liquidity from core deposits into higher yielding loans. Deposits increased $51.4 million on a linked quarter basis, or 21% annualized, to $1.0 billion, primarily driven by commercial deposits, with a cost of funds of 0.10% (including demand deposits). Demand deposits, totaling $409.4 million, represent 40% of total deposits while off-balance sheet sweep funds totaled $537.5 million at quarter end, clearly highlighting our excess liquidity and the continued strength of our branchless business model. Total assets increased $55.5 million on a linked quarter basis, or 20% annualized, to $1.2 billion and $242.1 million from year end 2020, or 26%. Noninterest income totaled $5.2 million or 31% of total revenues, stabilizing in the current quarter and increasing $479 thousand from the fourth quarter of 2020. Continued s...