Esquire Financial Holdings, Inc. · NASDAQ:ESQ
Esquire Financial — IPO Roadshow (June 2017)
21 slides from Esquire Financial's IPO roadshow presentation, Jun 19, 2017
Slide 1: June 2017 Initial Public Offering
June 2017 Initial Public Offering NASDAQ: ESQ
Slide 2: Forward-looking statements
1 37 64 97 37 64 97 37 64 97 37 64 97 This presentation contains forward - looking statements within the meaning of the federal securities laws. Forward - looking stateme nts express management’s current expectations, forecasts of future events or long - term goals and, by their nature, are subject
Slide 3: Offering Summary
2 37 64 97 37 64 97 37 64 97 37 64 97 Offering Summary Issuer: Esquire Financial Holdings, Inc. Proposed Exchange / Ticker: NASDAQ Capital Market / “ESQ” Offering Size: 2,560,000 shares or $38.4 million at the midpoint Filing Range: $14.00 – $16.00 Offering Structure: 70% Primary (1,800,000 shares)
Slide 4: Investment highlights
3 37 64 97 37 64 97 37 64 97 37 64 97 ▪ High growth, unique business model – Provide financial and merchant processing services to the legal and small business communities on a national basis – Legal market represents $264.6 billion¹ in payments and merchant processing market represents nearly $5 tr
Slide 5: Executive Management
4 37 64 97 37 64 97 37 64 97 37 64 97 Executive Management Dennis Shields Executive Chairman ▪ 20+ years in the legal community and financial services ▪ Founding organizer of Esquire ▪ CEO of Plaintiff Funding Corp. since 2000 Andrew C. Sagliocca President & Chief Executive Officer ▪ 27+ years of ex
Slide 6: Company Snapshot
5 37 64 97 37 64 97 37 64 97 37 64 97 Company Snapshot (1) Financial data as of or for the three months ended March 31, 2017. Esquire Operates Three Main Lending Business Lines Commercial Lending Consumer Lending Traditional CRE and 1 - 4 Family Lending Merchant Services Line of Business Merchant Se
Slide 7: Access to Clients through Law Firms and Mass Tort Relationships
6 37 64 97 37 64 97 37 64 97 37 64 97 ▪ Access to Clients through Our Current Law Firms & Mass Tort / Class Action Relationships – Equivalent to Traditional Bank’s “Brick & Mortar” Branches ▪ Believed to be Large and Underserved Financial Market Opportunity ▪ Claimants (Consumers) with Cash Flow & B
Slide 8: Low Cost Core Deposits
7 37 64 97 37 64 97 37 64 97 37 64 97 (1) Based on average outstanding balance for the three months ended March 31, 2017. Low Cost Core Deposits 0bps 0bps 0bps 0bps 0bps Deposit Composition at March 31, 2017 Total Deposits ($mm) Demand 34.8% Savings NOW and MM 59.3% Time 5.9% 12/31/2014 12/31/2015 1
Slide 9: Attractive & High Yielding Loan Portfolio
8 37 64 97 37 64 97 37 64 97 37 64 97 12/31/2014 12/31/2015 12/31/2016 3/31/2017 $171.7 $223.4 $277.5 $289.5 6.03% 5.66% 5.67% 5.58% Attractive & High Yielding Loan Portfolio (1) Includes multifamily loans. (2) Based on average outstanding balance for the three months ended March 31, 2017. (3) Nonpe
Slide 10: Commercial and Consumer Loans to the Litigation Market
9 37 64 97 37 64 97 37 64 97 37 64 97 ▪ 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 fees income ▪ Diversified and S
Slide 11: Strong Merchant Services and Noninterest Income Growth
10 37 64 97 37 64 97 37 64 97 37 64 97 (1) Esquire provides merchant services for small businesses through relationships with third parties known as Independent Sales Organizations (“ISOs ”). Strong Merchant Services and Noninterest Income Growth ▪ Provide merchant services for small businesses loca
Slide 12: Litigation Market Overview and Opportunity
11 37 64 97 37 64 97 37 64 97 37 64 97 ▪ 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 Busin
Slide 13: Scalable Platform and Expanding Profitability
12 37 64 97 37 64 97 37 64 97 37 64 97 Scalable Platform and Expanding Profitability (1) Efficiency ratio represents noninterest expenses, divided by the sum of net interest income plus noninterest income. With res pec t to efficiency ratio, adjusted, noninterest income excludes gains or losses on s
Slide 14: "Best in Class" Net Interest Margin
13 37 64 97 37 64 97 37 64 97 37 64 97 “Best in Class” Net Interest Margin Yield on Loans Cost of Deposits Net Interest Margin 2014 2015 2016 1Q17 6.03% 5.66% 5.67% 5.58% 2014 2015 2016 1Q17 0.18% 0.15% 0.15% 0.15% 2014 2015 2016 1Q17 3.86% 3.74% 4.25% 4.23%
Slide 15: Solid Capital Position to Support Future Growth
14 37 64 97 37 64 97 37 64 97 37 64 97 Solid Capital Position to Support Future Growth (dollars in thousands, except per share data) As of March 31, 2017 Actual As Adjusted¹ Stockholders' equity Preferred stock, par value $0.01 $1 $1 Common stock, par value $0.01 50 68 Capital surplus 58,983 82,497
Slide 16: Summary
15 37 64 97 37 64 97 37 64 97 37 64 97 (1) Source: Towers Watson. Includes single event, mass tort and class action claims represented approximately $264.6 billion in com mercial and personal tort costs in 2010. (2) Source: According to a report issued by the Nilson Report, American Express, Discove
Slide 17: Appendix
Appendix
Slide 18: Independent Board of Directors
17 * Denotes founding organizer of Esquire Bank. Independent Board of Directors Tony Coelho Director Since 2010 ▪ Bender Consulting Services; 1978 - 1989 U.S. House Representative Todd Deutsch Director Since 2015 ▪ Former Portfolio Manager/Principal; Bascom Hill Partners Marc Grossman Director Since
Slide 19: Financial measure notes
18 37 64 97 37 64 97 37 64 97 37 64 97 (1) For purposes of computing book value per common share, book value equals total common stockholders’ equity divided by total n umb er of common shares outstanding. Total common stockholders’ equity equals total stockholders’ equity, less preferred equity. Pr
Slide 20: Reconciliation of Non-GAAP and Adjusted Measures
19 37 64 97 37 64 97 37 64 97 37 64 97 Reconciliation of Non - GAAP and Adjusted Measures (dollars in thousands, except per share amounts) As of December 31, As of March 31, 2014 2015 2016 2017 Net interest income $10,247 $11,994 $15,657 $4,295 Noninterest income 1,766 2,943 4,125 1,204 Less: Net ga
Slide 21: Reconciliation of Non-GAAP and Adjusted Measures
20 37 64 97 37 64 97 37 64 97 37 64 97 Reconciliation of Non - GAAP and Adjusted Measures (1) Includes Series B Non - Voting Preferred Stock. Note: The Company had no intangible assets of the dates indicated. (dollars in thousands, except per share amounts) As of December 31, As of March 31, 2014 20
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