Business
Esquire Financial Holdings, Inc. Reports Third Quarter 2021 Results
Industry Leading Loan Growth Drives Record Revenues JERICHO, N.Y., Oct. 25, 2021 /PRNewswire/ -- Esquire Financial Holdings, Inc. (NASDAQ: ESQ) (the
About this update from Esquire Financial Holdings, Inc.
[{"type":"text","content":"Industry Leading Loan Growth Drives Record Revenues\n\n\nJERICHO, N.Y., Oct. 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 third quarter of 2021. Significant achievements during the quarter include:\nNet income of $2.5 million, or $0.32 per diluted share, as compared to $4.5 million, or $0.57 per diluted share on a linked quarter basis. Returns on average assets and common equity of 0.97% and 7.32%, respectively, as compared to 1.84% and 13.76% on a linked quarter basis. Industry leading net interest margin of 4.50% despite historically low interest rate environment. Reclassified its legacy NFL consumer post settlement loan portfolio totaling $23.6 million to loans held for sale, incurring a pretax charge totaling $3.4 million ($2.5 million net of tax), or $0.31 per diluted share. The fair value of these loans held for sale was $14.2 million. Excluding this charge, adjusted (1) net income, diluted earnings per share, return on average assets, and return on average common equity would have been $5.0 million, $0.63, 1.93%, and 14.49%, respectively. This accounting reclassification to held for sale is reflective of management's intent to sell these assets to a fund in the near term as previously disclosed. Loans held for investment increased $36.7 million, or 21% annualized, to $744.1 million on a linked quarter basis. Excluding the effects of the NFL reclassification and repayments on Paycheck Protection Program (\"PPP\") loans totaling $23.6 million and $11.9 million, respectively, loans held for investment increased 41% annualized on a linked quarter basis. The Company continues to deploy excess liquidity from core deposits into higher yielding loans. Deposits increased $62.4 million on a linked quarter basis, or 27% annualized, to $977.0 million, primarily driven by commercial deposits, with a cost of funds of 0.09% (including demand deposits). Demand deposits, totaling $416.8 million, represent 43% of total deposits while off-balance sheet sweep funds totaled $443.9 million at quarter end, demonstrating the continued strength of our branchless business model. Total assets increased $65.2 million on a linked quarter basis, or 24% annualized, to $1.1 b...