NASDAQ$ESQ

Esquire Financial Holdings Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Esquire Financial's Q3 2023 earnings were marked by strong commercial loan growth and a robust net interest margin.

Esquire Financial Holdings, Inc. reported a net income increase of 28% to $9.8 million, or $1.17 per diluted share, for the third quarter of 2023. The company's performance was driven by commercial loan growth and a strong net interest margin of 6.19%.

  • Core commercial relationship banking clients represent approximately 85% of the $1.3 billion deposit base.
  • There were no nonperforming loans at quarter end, with a 1.38% allowance for credit losses to loans ratio.
  • Overall liquidity position totaled $782.4 million, or 61% of total deposits.
  • Net income increased 28% to $9.8 million, or $1.17 per diluted share.

Headline financials

Total Revenue

$28.3M

Previous: $22M+28.5%
EPS (adj)

$1.17

Previous: $0.94+24.5%
Return on Avg. Assets

2.7%

Previous: 2.5%+9.3%
Net Interest Margin

6.2%

Previous: 5.2%+19.5%
Efficiency Ratio

48.7%

Previous: 49.3%-1.2%
CET1 Capital Ratio

14.3%

No prior period
Tier 1 Leverage Ratio

12.0%

No prior period
Tier 1 Capital Ratio

14.3%

No prior period
Total Capital Ratio

15.6%

No prior period
Capital Expenditures

-$328K

Previous: -$51K-543.1%
Free Cash Flow

$9.51M

Previous: $7.66M+24.1%
Net Income

$9.84M

Previous: $7.71M+27.6%
Operating Income

$18.5M

Previous: $18.2M+1.6%
Gross Profit

$28.3M

Previous: $22M+28.5%
Cash & Equivalents

$121M

Previous: $182M-33.8%
Total Assets

$1.48B

Previous: $1.35B+10.0%

Revenue & EPS history

Esquire Financial · Revenue · Quarterly

$28.3M

Q3 2023+28.5%vs Q3 2022
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Forward guidance

The company anticipates continued increases in their cost-of-funds due to the current short-term interest rate environment, which may negatively impact their net interest margin in the future.

Headwinds

  • Anticipate continued increases in our cost-of-funds in response to the current interest rate environment, which may negatively impact our net interest margin in the future.
  • We anticipate continued increases in our cost-of-funds due to the current short-term interest rate environment.
  • These increases may negatively impact our net interest margin in future quarters.
  • The increase in the allowance as a percentage of loans was general reserve driven considering loan growth and qualitative factors associated with the current uncertain economic environment including, but not limited to, its potential impact on the New York metro commercial real estate market.
  • Our deposit cost-of-funds, excluding demand deposits, increased 88 basis points in the current quarter when compared to 2022 due to increases in short-term interest rates as well as management pro-actively increasing rates on escrow accounts in the various states where we operate (interest on lawyer trust accounts or IOLTA).

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 2023

Historical avgQ3 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

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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