Esquire Financial Holdings, Inc. · NASDAQ:ESQ
Esquire Financial — Q3 2018 Earnings Presentation
14 slides from Esquire Financial's earnings presentation, Dec 3, 2018
Slide 1: September 30, 2018 Financial Presentation
September 30, 2018 Financial Presentation NASDAQ: ESQ EXHIBIT 99.1
Slide 2: Forward-looking statements
1 This presentation contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements express management’s current expectations, forecasts of future events or long-term goals and, by their nature, are subject to assumptions, risks and uncertainties, ma
Slide 3: Investment Highlights
2 ▪ High growth, unique business model – Full service nationally chartered commercial bank • Provide financial and merchant processing services to the legal and small business communities on a national basis • Provide financial products and services to commercial and retail customers in the New York
Slide 4: Chairman and Executive Management
3 Chairman and Executive Management Tony Coelho Chairman of the Board ▪ Former U.S. Congressman (D-CA) – House Majority Whip and co-authored the Americans with Disabilities Act ▪ Decades of financial, business and board oversight experience ▪ Esquire Board member since 2010 Andrew C. Sagliocca Presi
Slide 5: Company Snapshot
4 Company Snapshot (1) Financial data as of September 30, 2018. (2) Adjusted net income, which is used to compute adjusted return on average assets and adjusted return on average equity, excludes the impact of a one-time charge relating to compensation expense as a result of the passing of our Execu
Slide 6: The Esquire Bank Branch Network
5 ▪ Access to Clients through Our Network of Law Firms & Mass Tort / Class Action Relationships – Equivalent to Traditional Bank’s “Brick & Mortar” Branches ▪ Believed to be Large and Underserved Financial Market Opportunity ▪ Claimants (Consumers) with Cash Flow & Banking Needs for: – Living Expens
Slide 7: Low Cost Core Deposits
6 Total Deposits ($mm) (1) Based on average outstanding balance for the three months ended September 30, 2018. Low Cost Core Deposits 0bps0bps0bps 0bps 0bps Deposit Composition at September 30, 2018 12/31/2015 12/31/2016 12/31/2017 9/30/2018 $301.7 $370.8 $448.5 $552.2 Cost of Deposits The litigatio
Slide 8: Attractive & High Yielding Loan Portfolio
7 12/31/2015 12/31/2016 12/31/2017 9/30/2018 $223.4 $277.5 $348.1 $437.1 0.16% (0.01%) 0.02% 0.00% Loan Composition at September 30, 2018 5.66% 5.67% 5.75% 6.13%2 Attractive & High Yielding Loan Portfolio (1) Includes multifamily loans. (2) Based on average outstanding balance for the three months e
Slide 9: Business strategy and credit quality
8 ▪ Commercial and Consumer Loans to the Litigation Market – Enhance overall yield with attractive risk adjusted returns – Generate low cost core deposits without branch network – Generate off balance sheet funds/sweeps and customer fee income ▪ Diversified and Stable Business Model – Simple strateg
Slide 10: Strong Merchant Services and Noninterest Income Growth
9(1) Esquire provides merchant services for small businesses primarily through relationships with third parties known as Independent Sales Organizations (“ISOs”). Strong Merchant Services and Noninterest Income Growth ▪ Provide merchant services for small businesses on a national basis ▪ Acquiring B
Slide 11: Litigation Market Overview and Opportunity
10 ▪ Unique Banking Opportunity – Large & growing market ▪ Fragmented Market – Banks provide traditional depository services – Non-Banks provide High-Cost Financing Products ▪ Multi-Dimensional Market – Attractive, High-Yielding, Lower Risk Specialty Business & Consumer Lending Products ▪ Funded Wit
Slide 12: Appendix
Appendix
Slide 13: Independent Board of Directors
12* Denotes founding organizer of Esquire Bank. Independent Board of Directors Tony Coelho Director Since 2010 ▪ Chairman of Esquire Financial Holdings, Inc.; Bender Consulting Services; 1978 - 1989 U.S. House Representative Todd Deutsch Director Since 2015 ▪ Former Portfolio Manager/Principal; Basc
Slide 14: Reconciliation of Non-GAAP and Adjusted Measures
13 Reconciliation of Non-GAAP and Adjusted Measures (dollars in thousands, except per share amounts) Net income $ 1,682 Add: compensation charge 1,173 Less: tax impact 314 Compensation charge, net 859 Adjusted net income $ 2,541 Return on average assets-GAAP 1.07 % Add: compensation charge 0.55 % Ad
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