ESQ · Esquire Financial Holdings, Inc.

Esquire Financial Holdings delivered strong first quarter 2026 results, with net income increasing 7.0% year-over-year to $12.2 million, or $1.40 per diluted share. Results included $1.7 million in pre-tax elevated expenses related to the Signature Bancorporation merger ($1.3 million) and accelerated stock compensation from the departure of two board members ($398 thousand). Excluding these items, adjusted net income was $13.8 million, or $1.58 per diluted share, with adjusted returns on average assets and equity of 2.37% and 18.96%, respectively.

Revenue growth was robust, increasing 19.8% to $40.5 million, fueled by a 23.2% increase in net interest income to $34.0 million. The net interest margin remained resilient at 6.04%, expanding 8 basis points from the prior year, driven by growth in higher-yielding commercial loans from the national litigation platform. Loan growth was solid at 13% annualized on a linked quarter basis, totaling $1.82 billion, while deposits grew 8% annualized to $2.10 billion. Credit quality remained strong with a nonperforming loan to total assets ratio of 0.03%, although the company recorded a $3.2 million charge-off related to the sale of a foreclosed multifamily property.

The company demonstrated confidence in its outlook by increasing its regular quarterly cash dividend by 14% to $0.20 per share, marking the fifth consecutive increase since initiating dividends in 2022. Management highlighted strong progress on the Signature Bancorporation merger integration, noting that regulatory applications have been filed and integration planning is underway. The transaction is positioned to expand Esquire's footprint into the Chicago metro area, complementing its existing presence in New York and Los Angeles.