NASDAQ$ESQ
Esquire Financial Holdings Inc · Q2 2023 earnings
Q2 2023 earnings · · Investor relations
Briefing
Reported record commercial loan growth and resilient net interest margin, driving continued outperformance.
Esquire Financial Holdings, Inc. reported a strong second quarter in 2023, with net income increasing by 43% to $9.1 million, or $1.10 per diluted share. The company's performance was driven by record commercial loan growth and a resilient net interest margin of 6.02%.
- Net income increased 43% to $9.1 million, or $1.10 per diluted share.
- Industry leading returns on average assets and equity of 2.65% and 21.03%, respectively.
- Net interest margin of 6.02%.
- Significant loan growth totaling $90.2 million, or 37% annualized, to $1.1 billion.
Headline financials
Revenue & EPS history
Esquire Financial · Revenue · Quarterly
$26.8M
Forward guidance
The company anticipates continued increases in its cost-of-funds in 2023 commensurate to prior quarters in response to the current interest rate environment, which may negatively impact our net interest margin.
Tailwinds
- Continued expansion of our total revenue base fueled by an industry leading net interest margin of 6.02% and strong fee-based income totaling $6.7 million in the current quarter, led by our payment processing platform.
- Fee income represented 25% of total revenue.
- Significant loan growth totaling $90.2 million, or 37% annualized, to $1.1 billion on a linked quarter basis, focused primarily in higher yielding variable rate commercial loans.
- Stable low-cost core commercial relationship deposit model totaling $1.3 billion and a cost-of-funds of 0.66% (including demand deposits).
- Strong and consistent payment processing fee income of $5.8 million with continued increases in small business clients nationally totaling 80,000.
Headwinds
- We anticipate continued increases in our cost-of-funds in 2023 commensurate to prior quarters in response to the current interest rate environment, which may negatively impact our net interest margin.
- The provision for credit losses was $1.3 million for the second quarter of 2023, a $475 thousand increase from the second quarter 2022 provision.
- Noninterest expense increased $2.6 million, or 24.9%, to $13.0 million for the second quarter of 2023, as compared to the same period in 2022.
- Our available-for-sale securities portfolio decreased $19.0 million, or 15.5%, to $103.7 million as compared to June 30, 2022 driven by paydowns and unrealized losses associated with the current interest rate environment.
- The other comprehensive loss reflects the current unrealized losses on our available-for-sale agency MBS portfolio, net of tax, that have been negatively impacted by recent increases in short-term market interest rates.
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 2023
+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
| Quarter | Report date | Reaction (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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