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ESQUIRE FINANCIAL HOLDINGS, INC. REPORTS SECOND QUARTER 2023 RESULTS
Record Commercial Loan Growth and Resilient Net Interest Margin Drive Continued Outperformance JERICHO, N.Y., July 25, 2023 /PRNewswire/ -- Esquire Financial
About this update from Esquire Financial Holdings, Inc.
[{"type":"text","content":"Record Commercial Loan Growth and Resilient Net Interest Margin Drive Continued Outperformance\nJERICHO, N.Y., July 25, 2023 /PRNewswire/ -- Esquire Financial Holdings, Inc. (NASDAQ: ESQ) (the \"Company\"), the financial holding company for Esquire Bank, National Association (\"Esquire Bank\" or the \"Bank\"), today announced its operating results for the second quarter of 2023. We have included the following key updates, as well as significant achievements during the quarter:\nRelationship Banking with Strong Foundational Balance Sheet Management\nCore commercial relationship banking clients in our two national verticals represent approximately 90% of our $1.3 billion deposit base in the current quarter. These relationship banking clients are derived from coupling lending facilities, payment processing, and other unique custodial banking needs with commercial cash management depository services, leading to a stable and reliable core deposit base with no client attrition from the recent banking market turmoil.Solid credit metrics, asset quality, and reserve coverage ratios with nonperforming loans to total loans of 0.00% at quarter end and a 1.34% allowance for credit losses to loans ratio. Within our commercial real estate portfolio, we have no exposure to commercial office space and only $16.0 million in performing credits to the hospitality industry as of June 30, 2023.Our overall liquidity position (cash, reverse repos, borrowing capacity, and available reciprocal client sweep balances) totaled $641.4 million, or 51% of total deposits, inclusive of an additional $160.9 million in Federal Home Loan Bank of New York (\"FHLB\") borrowing capacity secured post June 30, 2023.Uninsured deposits totaled $329.1 million, or 26%, of total deposits with approximately 85% representing clients with full relationship banking including, but not limited to, law firm operating accounts, certain balances of escrow accounts, merchant reserves, ISO reserves, ACH processing, and custodial accounts.Strong interest rate risk management with short duration assets (60% of loans tied to prime). Coupling this with low-cost core relationship deposits leads to an industry leading net interest margin of 6.02%.Strong capital foundation with common equity tier 1 (\"CET1\") and tangible common equity to tangible asset(1) (\"TCE/TA\") ratios of 14.27% and 12...