Esquire Reaches Billion Dollar Asset Milestone with Record Revenues and Earnings

Esquire Financial Holdings, Inc. (NASDAQ: ESQ), the financial holding company for Esquire Bank, National Association, today announced its operating results for the second quarter of 2021.

• Net income increased to $4.5 million, or $0.57 per diluted share, as compared to $4.2 million, or $0.53 per diluted share on a linked quarter basis. Net income and diluted earnings per share were $2.5 million and $0.33, respectively, for the second quarter
  of 2020.
• Industry-leading returns on average assets and common equity of 1.84% and 13.76%, respectively, as compared to 1.81% and 13.30% on a linked quarter basis while maintaining a strong net interest margin of 4.49%.
• Total assets increased $59.8 million on a linked quarter basis, or 24% annualized, to $1.1 billion.
• Deposits increased $55.0 million on a linked quarter basis, or 26% annualized, to $914.7 million, primarily driven by commercial deposits, with a cost of funds of 0.09% (including demand deposits). Demand deposits, totaling $395.6 million,
  represent 43% of total deposits while off-balance sheet sweep funds totaled $546.9 million at quarter-end, demonstrating the continued strength of our branchless business model.
• Loans increased $4.5 million on a linked quarter basis to $707.4 million despite significant paydowns on commercial lines of credit. Average loans increased $22.8 million, or approximately 14% annualized, to $700.3 million on a linked quarter basis while we continue to maintain a robust loan pipeline for the balance of 2021.
• Payment processing (merchant) fee income totaled $5.4 million in the current quarter, an increase of 10% on a linked quarter basis, excluding certain early termination fees totaling $500 thousand in the trailing quarter. Payment processing fee income increased $2.5 million, or 88% when comparing the current quarter to 2020. Total noninterest income represented 34% of total revenue in the current quarter.
• Continued solid asset quality metrics with nonperforming loans to total loans of 0.32% and a reserve for loan losses to total loans of 1.98%. Excluding Small Business Administration (“SBA”) guaranteed Paycheck Protection Program (“PPP”) loans totaling $23.6 million, our reserve for loan losses to total loans was 2.05%.
• Named the #1 top-performing community bank in the 2020 Raymond James Community Bankers Cup.
• Esquire Bank remains well above the bank regulatory “Well Capitalized” standards.

“Total revenue increased $7.2 million, or 30%, to $31.7 million year over year, clearly demonstrating strong growth within our core commercial lending and payment processing verticals” stated Tony Coelho, Chairman of the Board.

“Our recent investments in technology, digital marketing, and employees will continue to fuel our growth in the future,” stated Andrew
C. Sagliocca, President and Chief Executive Officer. “We are at the initial stage of deploying our digital marketing with very positive
early results, including heightened brand recognition, strong financial performance, and robust pipelines for both the litigation and
payment processing verticals on a national basis.”

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