NASDAQ$ESQ

Esquire Financial Holdings Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Second quarter results reported with net income relatively unchanged despite recording an additional provision for loan losses.

Esquire Financial Holdings, Inc. reported net income of $2.5 million, or $0.33 per diluted share, for the second quarter of 2020. The results were impacted by an additional provision for loan losses of $1.5 million due to the economic uncertainty surrounding the COVID-19 pandemic. Deposits increased by $27.1 million, driven by low-cost litigation market customers.

  • Net income was relatively unchanged at $2.5 million, or $0.33 per diluted share, on a linked quarter basis.
  • Deposits increased $27.1 million, or 15.5% annualized, to $724.9 million on a linked quarter basis.
  • Loans totaling $593.7 million were relatively unchanged on a linked quarter basis.
  • Merchant services fee income was relatively unchanged at $2.9 million on a linked quarter basis despite significant processing volume declines.

Headline financials

Total Revenue

$12.1M

Previous: $11.7M+3.9%
EPS (adj)

$0.33

Previous: $0.45-26.7%
Return on Avg. Assets

1.2%

No prior period
Net Interest Margin

4.5%

No prior period
Efficiency Ratio

55.9%

No prior period
NPLs to Total Loans

0.2%

No prior period
Allowance to Loans

1.8%

No prior period
Capital Expenditures

-$328K

Previous: -$442K+25.8%
Free Cash Flow

$2.21M

Previous: $3.03M-27.1%
Net Income

$2.53M

Previous: $3.47M-27.0%
Operating Income

$9.72M

Previous: $8.39M+15.8%
Gross Profit

$12.1M

Previous: $11.7M+3.9%
Cash & Equivalents

$114M

Previous: $40.2M+185.0%
Total Assets

$852M

Previous: $732M+16.3%

Revenue & EPS history

Esquire Financial · Revenue · Quarterly

$12.1M

Q2 2020+3.9%vs Q2 2019
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

The COVID-19 pandemic may continue to impact our financial results and demand for our products and services during the second half of 2020 and potentially beyond.

Headwinds

  • The demand for our products and services may decline, making it difficult to grow assets and income.
  • If the economy is unable to substantially reopen, and high levels of unemployment continue for an extended period of time, loan delinquencies, problem assets, and foreclosures may increase, resulting in increased charges and reduced income.
  • Collateral for loans, especially real estate, may decline in value, which could cause loan losses to increase.
  • Our allowance for loan losses may increase if borrowers experience financial difficulties, which will adversely affect our net income.
  • The net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to us.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+2.1%

Avg return

Earnings day

+2.1%

Avg return

5 days after

+4.8%

Avg return

30 days after

71%

29 / 41 earnings

Positive

+11.5%

Q4 2017

Best reaction

-3.4%

Q2 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+4.3%-2.9%+0.7%
Q4 2025+0.8%-0.3%-2.0%
Q3 2025+1.1%-2.3%-1.4%
Q2 2025-1.3%-3.1%-1.8%
Q1 2025+2.6%+4.7%+8.7%
Q4 2024-3.2%-3.6%-11.3%
Q3 2024+2.8%+7.3%+21.8%
Q2 2024+3.6%+4.4%+7.0%
Q1 2024+4.6%+0.2%+0.3%
Q4 2023+6.9%+9.1%+1.2%
Q3 2023+2.0%+5.3%+4.5%
Q2 2023+3.6%+1.1%-4.8%
Q1 2023+2.8%+4.3%+14.8%
Q4 2022+6.6%+8.3%+10.3%
Q3 2022+7.7%+10.8%+15.3%
Q2 2022+8.4%+5.6%+13.2%
Q1 2022-2.9%-3.8%-2.9%
Q4 2021+4.4%+2.5%+4.3%
Q3 2021-1.0%+0.1%+9.7%
Q2 2021+2.7%+1.6%+8.9%
Q1 2021-0.5%-0.7%+5.2%
Q4 2020-0.4%-12.0%-9.3%
Q3 2020+1.8%-8.1%+8.9%
Q2 2020-1.5%-3.1%+3.5%
Q1 2020+4.5%+12.8%+14.1%
Q4 2019-2.4%-1.0%+1.0%
Q3 2019+4.7%+6.4%+6.2%
Q2 2019+3.5%+7.2%-4.8%
Q1 2019+6.0%+12.5%+2.1%
Q4 2018-3.1%-0.9%+7.4%
Q3 2018+4.4%+3.8%+11.2%
Q2 2018+0.0%-4.1%+1.9%
Q1 2017-0.1%-0.6%+9.3%
Q1 2018-2.7%-2.5%+0.5%
Q4 2016+2.2%+0.9%-1.0%
Q4 2015+2.2%+0.9%-1.0%
Q4 2017+11.5%+18.2%+19.2%
Q3 2016+1.0%+1.5%+18.1%
Q3 2017+2.3%+2.9%+11.5%
Q2 2016-3.4%-0.5%-6.6%
Q2 2017+1.4%+1.7%+3.8%
Q1 2016
Q3 2015
Q2 2015
Q1 2015

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