Business
ESQUIRE FINANCIAL HOLDINGS, INC. REPORTS SECOND QUARTER 2022 RESULTS
Strong Balance Sheet and Revenue Growth Drive Record Earnings and Returns JERICHO, N.Y., July 25, 2022 /PRNewswire/ -- Esquire Financial Holdings, Inc.
About this update from Esquire Financial Holdings, Inc.
[{"type":"text","content":"Strong Balance Sheet and Revenue Growth Drive Record Earnings and Returns\nJERICHO, N.Y., July 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 second quarter of 2022. Significant achievements during the quarter include:\nNet income increased 19% to $6.4 million, or $0.78 per diluted share, as compared to $5.3 million, or $0.66 per diluted share on a linked quarter basis. Net income and diluted earnings per share were $4.5 million and $0.57, respectively, for the second quarter of 2021.Industry leading returns on average assets and equity of 2.00% and 17.81%, respectively, as compared to 1.92% and 15.06% on a linked quarter basis. Returns on average assets and equity were 1.84% and 13.76%, respectively, for the second quarter of 2021.Strong net interest margin of 4.46% anchored by variable rate commercial loans as loan yields improved 16 basis points on a linked quarter basis. The net interest margin was negatively impacted in the current quarter by elevated levels of interest earning cash balances. Approximately 59% of our loan portfolio is variable rate and primarily tied to prime.Our loan portfolio increased $41.3 million, or 20% annualized, to $859.3 million on a linked quarter basis, as we continued to focus our digital marketing efforts and resources on higher yielding commercial loans anchored by our national litigation platform.Continued solid credit metrics, asset quality and reserve coverage ratios with minimal nonperforming loans and a reserve for loan losses to total loans of 1.20%.Deposits increased $65.6 million on a linked quarter basis, or 24% annualized, to $1.2 billion with a cost-of-funds of 0.10% (including demand deposits), a direct result of our highly efficient branchless and technology enabled deposit platforms. Demand deposits and escrow-based NOW accounts represented 44% and 39% of total deposits, respectively.Off-balance sheet sweep funds totaled $496.8 million at quarter end while the associated administrative service payments (\"ASP\") fees increased to $617 thousand due to increases in short-term interest rates. These sweeps represent additional sources of funding for future loan growth.Growth in payment processing fee income...