Esquire Financial Holdings (ESQ) investor relations material

Executive summary

• Net income for Q2 2026 rose 9.2% year-over-year to $13.0 million ($1.49 per diluted share), with adjusted net income at $14.0 million ($1.60 per share) excluding $1.1 million in pretax merger expenses.

• Achieved strong growth in commercial litigation and payment processing verticals, leveraging a branchless, tech-enabled model with national reach.

• Completed $466 million all-stock merger with Signature Bancorporation on August 1, 2026, expanding total assets to $4.8 billion, loans to $3.3 billion, and deposits to $4.0 billion.

• Integration process with Signature is progressing smoothly, with all regulatory approvals received and cross-team collaboration underway.

• Focused on client-centric technology and digital marketing to drive future growth and high client retention.

Financial highlights

• Net interest income for Q2 2026 was $35.7 million, up 22.2% year-over-year; net interest margin was 5.96%.

• Adjusted net income for Q2 2026 was $14.0 million ($1.60 per diluted share), up 16% year-over-year.

• Total loans grew to $1.9 billion, with litigation loan portfolio at $1.29 billion and blended yield of 8.8%.

• Total deposits increased to $2.18 billion, with cost of funds at 1.03% and core deposits representing 99.7% of total deposits.

• Noninterest income stable at $6.4 million (15% of total revenue); payment platform processed $10.6 billion across 153 million transactions for 93,000 clients.

Outlook and guidance

• Management anticipates continued national expansion in litigation and payment processing, leveraging proprietary technology and a stable, low-cost deposit base.

• Signature merger expected to accelerate growth in Chicago and Midwest markets, with combined net interest margin post-merger projected at 5.45% on day one.

• Payments volume expected to grow ~10% annually, with gradual shift to direct merchant acquiring post-merger.

• Technology and AI-driven marketing expected to further enhance client acquisition and retention.

• December quarter anticipated to provide a clearer picture of combined entity performance.