NASDAQ$ESQ

Esquire Financial Holdings Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Net income increased and loans and deposits experienced growth.

Esquire Financial Holdings reported a net income of $3.6 million, or $0.48 per diluted share, for the third quarter of 2020. The company saw strong loan and deposit growth, as well as record merchant payment processing income. They also launched a new digital platform.

  • Net income increased $1.1 million, or 42%, to $3.6 million compared to the linked quarter.
  • Loans increased $42.0 million, or 28% annualized, to $635.7 million.
  • Deposits increased $20.6 million, or 11.3% annualized, to $745.5 million.
  • Merchant fee income from payment processing platform increased 31% to $3.7 million on a linked quarter basis.

Headline financials

Total Revenue

$13.1M

Previous: $12.2M+7.1%
EPS (adj)

$0.48

Previous: $0.49-2.0%
Net Interest Margin

4.2%

No prior period
Efficiency Ratio

55.6%

No prior period
NPLs to Total Loans

1.2%

No prior period
Allowance to Loans

1.8%

No prior period
Capital Expenditures

-$446K

Previous: -$546K+18.3%
Free Cash Flow

$3.16M

Previous: $3.27M-3.4%
Net Income

$3.61M

Previous: $3.82M-5.5%
Operating Income

$10.4M

Previous: $9.01M+15.1%
Gross Profit

$13.1M

Previous: $12.2M+7.1%
Cash & Equivalents

$111M

Previous: $61.7M+79.3%
Total Assets

$881M

Previous: $760M+15.9%

Revenue & EPS history

Esquire Financial · Revenue · Quarterly

$13.1M

Q3 2020+7.1%vs Q3 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Forward guidance

Company believes that coupling merchant payment processing platform with newly enhanced digital platforms and new hires, including the Chief Banking and Revenue Officer, should significantly enhance growth prospects in 2021 and beyond.

Headwinds

  • Demand for products and services may decline.
  • Loan delinquencies, problem assets, and foreclosures may increase.
  • Collateral for loans, especially real estate, may decline in value.
  • Allowance for loan losses may increase if borrowers experience financial difficulties.
  • Cyber security risks are increased as the result of an increase in the number of employees working remotely.

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 Q3 2020

Historical avgQ3 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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro