8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): April 25, 2023

Esquire Financial Holdings, Inc.

(Exact name of the registrant as specified in its charter)

-
Maryland	001-38131	27-5107901
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(IRS Employer Identification No.)

100 Jericho Quadrangle, Suite 100
Jericho, New York	11753
(Address of principal executive offices)	(Zip Code)

(516) 535-2002

(Registrant’s telephone number)

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (See General Instruction A.2. below):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4c)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	ESQ	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02Results of Operations and Financial Condition.

On April 25, 2023, Esquire Financial Holdings, Inc. (the “Company”), the holding company for Esquire Bank, National Association (“Esquire Bank”), issued a press release announcing its earnings for the quarter ended March 31, 2023. A copy of the press release is attached as Exhibit 99.1 hereto and incorporated herein by reference.

The information contained in this Item 2.02 and Exhibit 99.1 shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, and shall not be incorporated by reference into any filings made by the Company under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except as expressly set forth by specific reference in such filing.

Item 7.01Regulation FD Disclosure.

Esquire Financial Holdings, Inc. (the “Company”) intends to distribute and make available to investors, and to post on its website, the written presentation attached hereto as Exhibit 99.2. The presentation is furnished in this Current Report on Form 8-K, pursuant to this Item 7.01, as Exhibit 99.2, and is incorporated herein by reference.

The information contained in this Item 7.01 and Exhibit 99.2 shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, and shall not be incorporated by reference into any filings made by the Company under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except as expressly set forth by specific reference in such filing.

Item 9.01Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.	Description
99.1	Press Release dated April 25, 2023.
99.2	Written presentation to be distributed and made available to investors and posted on the Company’s website.
104	Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

	ESQUIRE FINANCIAL HOLDINGS, INC.
Dated:  April 25, 2023	By:/s/ Andrew C. Sagliocca
	Andrew C. Sagliocca
	President and Chief Executive Officer

EX-99.1

Exhibit 99.1

ESQUIRE FINANCIAL HOLDINGS, INC.

REPORTS FIRST QUARTER 2023 RESULTS

Sound Balance Sheet Management Coupled with Relationship Banking Drives Growth and Outperformance

Jericho, NY – April 25, 2023 – Esquire Financial Holdings, Inc. (NASDAQ: ESQ) (the “Company”), the financial holding company for Esquire Bank, National Association (“Esquire Bank” or the “Bank”), today announced its operating results for the first quarter of 2023. In light of the recent market turmoil, we have included the following key updates, as well as significant achievements during the quarter:

Relationship Banking with Strong Foundational Balance Sheet Management

● Core commercial relationship banking clients in our two national verticals represent approximately 90% of our $1.3 billion deposit base in the current quarter. These relationship banking clients are derived from coupling lending facilities, payment processing, and other unique custodial banking needs with commercial cash management depository services, leading to no client attrition during the recent market turmoil.

● Prioritizing balance sheet management (credit quality, core relationship deposit funding, liquidity, interest rate risk, and capital) before earnings has led to industry leading performance metrics in the current quarter as outlined below.

● Solid credit metrics, asset quality, and reserve coverage ratios with no nonperforming loans at quarter end and 1.34% allowance for credit losses to loans ratio. Within our commercial real estate portfolio, we have no exposure to commercial office space and only $16.2 million in performing credits to the hospitality industry as of March 31, 2023.

● The litigation and payment verticals represent $1.1 billion, or 83%, of total deposits with $540.0 million in longer duration escrow (claimant trust) settlement deposits as of March 31, 2023. These escrow funds are for the benefit of consumers (or claimants) with the FDIC insurance coverage passing through the account to the beneficial owner (claimant) of the funds.

● Our overall liquidity position (cash, reverse repos, borrowing capacity, and available reciprocal client sweep balances) totaled $588.4 million, or 47% of total deposits, creating a highly liquid and unlevered balance sheet.

● Uninsured deposits totaled $417.0 million, or 33%, of total deposits with more than 90% representing clients with full relationship banking including, but not limited to, law firm operating accounts, certain balances of escrow accounts, merchant reserves, ISO reserves, ACH processing, and custodial accounts. 

● Strong interest rate risk management with short duration assets (59% of loans tied to prime). Coupling this with low-cost core relationship deposits leads to an industry leading net interest margin of 6.03%.

● Strong capital foundation with common equity tier 1 (“CET1”) and tangible common equity to tangible asset (“TCE/TA”) ratios of 14.89% and 11.77%, respectively. Including the after tax unrealized losses on both the available-for-sale and held-to-maturity securities portfolios of $13.7 million and $5.7 million, respectively, the adjusted⁽¹⁾ CET1 and adjusted⁽¹⁾ TCE/TA ratios would have been 12.97% and 11.38%, respectively.

Significant Achievements and Key Performance Metrics

● On a linked quarter basis, net income increased 34% to $12.2 million, or $1.47 per diluted share, as compared to $9.1 million, or $1.10 per diluted share. Excluding the pretax gain of $4.0 million ($3.0 million after-tax or $0.36 per diluted share) on the partial sale of our Litify fintech investment, adjusted⁽¹⁾ net income and diluted earnings per share would have been $9.2 million and $1.11, respectively.

● Industry leading returns on average assets and equity of 3.68% and 30.45%, respectively, as compared to 2.80% and 23.89% on a linked quarter basis. Excluding the Litify gain, adjusted⁽¹⁾ returns on average assets and average common equity would have been 2.79% and 23.10%, respectively.

1

(1) See non-GAAP reconciliation provided at the end of this news release.

● Continued expansion of our total revenue base fueled by a strong net interest margin of 6.03% and noninterest income led by our payment processing platform. Fee income represented 24% of total revenue, excluding the Litify gain.

● Continued loan portfolio diversification with focused growth in higher yielding variable rate commercial loans as loans increased $18.3 million on a linked quarter basis, or 8% annualized, to $965.6 million despite elevated paydowns of $41.6 million. These commercial loans create additional opportunities for full commercial relationship banking (commercial deposits) through our branchless commercial cash management platform.

● Stable low-cost core commercial relationship deposit model with growth of $36.1 million on a linked quarter basis, or 12% annualized, to $1.3 billion and a cost-of-funds of 0.38% (including demand deposits). We anticipate continued increases in our cost-of-funds in 2023 commensurate to prior quarters as higher short-term market interest rates may begin to negatively impact our net interest margin. Off-balance sheet sweep funds totaled $262.5 million at quarter end, with 54% available for additional on-balance sheet liquidity, while the associated administrative service payments (“ASP”) fees totaled $529 thousand.

● Strong and consistent payment processing fee income with continued increases in small business clients nationally totaling $5.5 million and 78,000, respectively. Our technology enabled payments platform facilitated the processing of $7.7 billion in credit and debit card payment volume across 142.9 million transactions for our clients.

● Strong efficiency ratio of 42.2% and adjusted⁽¹⁾ efficiency ratio of 48.9% excluding the Litify gain of $4.0 million, despite investing approximately $550 thousand in senior management talent searches nationally for our growing commercial platform including business development officers nationally, senior underwriters, and senior risk managers for payments.

“While some companies lose their clarity and purpose in the pursuit of growth and earnings, our path has been very clear,” stated Tony Coelho, Chairman of the Board of Directors. “We have always believed that a strong and fortified balance sheet starting with outstanding client relationships will consistently generate long term growth, industry leading performance metrics, and success now and in the future.”

“We have always operated a simple, straightforward business model centered on taking extraordinary care of our clients and servicing their business needs daily,” stated Andrew C. Sagliocca, Chief Executive Officer and President. “We have successfully navigated various macroeconomic and interest rate environments, a pandemic, and today we have among the industry’s highest rates of client satisfaction and retention, as well as returns and performance metrics.”

2

(1) See non-GAAP reconciliation provided at the end of this news release.

First Quarter Earnings

Net income for the quarter ended March 31, 2023 was $12.2 million, or $1.47 per diluted share, compared to $5.3 million, or $0.66 per diluted share for the same period in 2022. Returns on average assets and equity for the current quarter were 3.68% and 30.45%, respectively, compared to 1.92% and 15.06% for the same period of 2022.  Excluding the pretax gain of $4.0 million ($3.0 million after-tax or $0.36 per diluted share) on the partial sale of our Litify fintech investment, adjusted⁽¹⁾ net income, diluted earnings per share, return on average assets, and return on average common equity would have been $9.2 million, $1.11, 2.79% and 23.10%, respectively.

Net interest income for the first quarter of 2023 increased $7.5 million, or 63.7%, to $19.3 million, due to growth in average interest earning assets totaling $218.4 million, or 20.2%, to $1.3 billion and increases in average yields on interest earning assets when compared to the same period in 2022. Our net interest margin increased to 6.03% in the current quarter as the margin was positively impacted by growth in higher yielding variable rate commercial loans and increases in short-term interest rates. The average yield on loans increased 174 basis points to 7.50%, driven by higher yielding variable rate commercial loan growth (approximately 59% of our portfolio is tied to prime). Average loans in the quarter increased $175.4 million, or 22.6%, to $951.9 million when compared to the first quarter of 2022, attributable to our national commercial lending and our local region real estate platforms. Our loan-to-deposit ratio was 76.4% as our low-cost deposit base increased $174.5 million, or 16.0%, funded primarily by our law firm borrower operating accounts and their associated longer duration escrow banking relationships. Average securities in the quarter increased $27.5 million to $208.8 million as management opportunistically invested excess liquidity in our mortgage backed agency securities portfolio, driving average yields up 42 basis points to 2.24% and increasing interest income $339 thousand to $1.2 million in the current quarter. The movement in short-term interest rates increased yields and interest income on our reverse repurchase agreements and interest earning cash balances. Our cost-of-funds, excluding demand deposits, increased 47 basis points when comparing the first quarter of 2023 to the same period last year due to increases in short-term interest rates as well as pro-actively managing increases in rates paid on escrow accounts in the various states we operate (interest on lawyer trust accounts or IOLTA). We anticipate continued increases in our cost-of-funds in 2023 commensurate to previous increases over the past several quarters, which may negatively impact our net interest margin from its current level of 6.03%.

The provision for credit losses was $500 thousand for the first quarter of 2023, a $140 thousand decrease from the first quarter 2022 provision. As of March 31, 2023, our allowance to loans ratio was 1.34% as compared to 1.29% as of December 31, 2022. As of January 1, 2023, the Company adopted the current expected credit loss accounting standard (the “CECL Standard”), increasing our allowance for credit losses as a percentage of loans by 2 basis points, or $283 thousand, which was reflected as an adjustment to retained earnings. The remaining 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.

Noninterest income was $10.3 million for the first quarter of 2023, a $4.8 million increase from the same period in 2022, driven by increases in payment processing and ASP fees as well as a nonrecurring gain on our equity investment in a litigation fintech company (Litify). Payment processing income was $5.5 million for the first quarter of 2023, a $197 thousand increase from the same period in 2022. Payment processing volumes and transactions for the credit and debit card processing platform increased $1.4 billion, or 23.2%, to $7.7 billion and 25.1 million, or 21.3%, to 142.9 million transactions, respectively, for the quarter ended March 31, 2023 as compared to the same period in 2022. These increases were due to expansion of sales channels through ISOs, increased number of merchants, volume increases, and were facilitated by our focus on technology and other resources in the payments vertical. The Company utilizes proprietary and industry leading technology to ensure card brand and regulatory compliance, support multiple processing platforms, manage daily risk across 78,000 small business merchants in all 50 states, and perform commercial treasury clearing services. ASP fee income totaled $529 thousand for the first quarter of 2023, which is directly impacted by the average balance of those funds and short-term interest rates.  In February 2023, Litify, Inc. was reorganized into a partnership and an unrelated third party acquired a majority ownership in the reorganized entity. As an equity holder and party to the reorganization and sale transaction, a majority of the Company’s partnership interests were exchanged for cash and undiscounted noncash consideration of approximately $5.4 million. As a result, the Company recognized a gain on its investment of $4.0 million in the first quarter of 2023.  

Noninterest expense increased $3.1 million, or 33.1%, to $12.5 million for the first quarter of 2023, as compared to the same period in 2022. This increase was primarily due to increases in employee compensation and benefits, professional services costs, hiring related costs, advertising and marketing, data processing, and occupancy and equipment. Employee compensation and benefits costs increased $1.4 million, or 22.0%, due to increases in staff and officer level employees to support growth as well as the impact of year end salary, bonus and stock-based compensation increases. Due to the effects of inflation on the overall economy and consumer prices, we proactively increased our employees’ base salary at year-end in excess of industry and national averages to support employee retention. Professional services costs increased $932 thousand primarily due to the retention of a global executive search firm to further expand our national sales capabilities (senior business development officers) outside of New York and Florida, expand our senior underwriting capabilities to support future growth, and enhance our payment processing senior risk management, as well as costs incurred for continued business development. Advertising and marketing costs increased $204 thousand, as we continued to grow our brand and targeted digital marketing platform and expand our thought leadership in our national verticals. Data processing costs increased $125 thousand due to increased processing volume, primarily driven by our core banking platform, and additional costs related to our

3

(1) See non-GAAP reconciliation provided at the end of this news release.

technology implementations. Occupancy and equipment costs increased $78 thousand due to amortization of our investments in internally developed software to support our digital platform and additional office space to support our growth.

The Company’s efficiency ratio was 42.2% for the three months ended March 31, 2023, as compared to 54.3% in 2022. The adjusted⁽¹⁾ efficiency ratio was 48.9% excluding the Litify gain of $4.0 million for the current quarter. This significant improvement is a result of industry leading revenue growth driven by our core national platforms. These national platforms have benefited from our investments in technology, digital marketing, employees, and other branchless infrastructure that support our industry leading returns.

The effective tax rate was 26.5% for the first quarter of 2023, including 50 basis points of discrete tax benefits associated with share based compensation, and consistent with the first quarter of 2022.

Asset Quality

At March 31, 2023, there were no nonperforming loans while the allowance for credit losses was $13.0 million, or 1.34% of total loans, as compared to $9.5 million, or 1.16% of total loans at March 31, 2022. As of January 1, 2023, the Company adopted the CECL Standard which increased our allowance for credit losses as a percentage of loans by 2 basis points, or $283 thousand, which was reflected as an adjustment to retained earnings. The remaining 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. As part of the adoption of the CECL Standard, management established a credit reserve for unfunded loan commitments of $500 thousand which is classified in Other liabilities on the Statement of Financial Condition and reflected as an adjustment to retained earnings.

Balance Sheet

At March 31, 2023, total assets were $1.5 billion, reflecting a $208.0 million, or 16.7% increase from March 31, 2022. This increase was primarily attributable to growth in loans held for investment totaling $147.6 million, or 18.0%, to $965.6 million. Our higher yielding variable rate commercial loans increased $114.0 million, or 25.2%, during this same period. Our sales pipeline remains robust, anchored by our current and future digital marketing plans, proprietary CRM platform and our employees that support current and future growth. Commencing in the first quarter of 2022, we invested a portion of our excess liquidity in held-to-maturity securities, totaling $76.9 million at March 31, 2023. Our available-for-sale securities portfolio decreased $26.2 million, or 19.5%, to $107.9 million as compared to March 31, 2022 driven by paydowns and unrealized losses associated with the current interest rate environment.

The following table provides information regarding the composition of our loan portfolio for the periods presented:

	March 31,				December 31,				March 31,
	2023				2022				2022
	(Dollars in thousands)
Real estate:
Multifamily	$	274,656	28.4	%	$	262,489	27.7	%	$	262,465	32.1	%
Commercial real estate		91,493	9.5			91,837	9.7			62,447	7.6
1 – 4 family		21,730	2.2			25,565	2.7			33,468	4.1
Total real estate		387,879	40.1			379,891	40.1			358,380	43.8
Commercial		565,927	58.5			552,082	58.2			451,930	55.2
Consumer		13,116	1.4			16,580	1.7			8,281	1.0
Total loans held for investment	$	966,922	100.0	%	$	948,553	100.0	%	$	818,591	100.0	%
Deferred loan fees and unearned premiums, net		(1,292)				(1,258)				(594)
Loans, held for investment	$	965,630			$	947,295			$	817,997
Loans held for sale, net (included in Other assets)	$	—			$	—			$	15,040

Total deposits were $1.3 billion as of March 31, 2023, a $174.5 million, or 16.0%, increase from March 31, 2022. This was primarily due to a $127.8 million, or 22.0%, increase in Savings, NOW and Money Market deposits to $709.5 million, and a $59.6 million, or 12.2%, increase in noninterest bearing demand deposits to $548.5 million. Our deposit strategy primarily focuses on developing full

4

(1) See non-GAAP reconciliation provided at the end of this news release.

commercial banking relationships with our clients through lending facilities, payment processing, and other unique service orientated relationships in our two national verticals, rather than just competing with other institutions on rate. Our longer duration IOLTA, escrow and claimant trust settlement deposits represent $540.0 million, or 42.7%, of total deposits. These law firm escrow accounts, as well as other fiduciary deposit accounts, are for the benefit of the law firm’s clients (or claimants) and are titled in a manner to ensure that the maximum amount of FDIC insurance coverage passes through the account to the beneficial owner of the funds held in the account. Therefore, these law firm escrow accounts carry FDIC insurance at the claimant settlement level, not at the deposit account level. As of March 31, 2023, uninsured deposits were $417.0 million, or 33%, of our total deposits of $1.3 billion, excluding $7.4 million of affiliate deposits held by the Bank. More than 90% of our uninsured deposits represent clients with full relationship banking (loans, payment processing, and other service oriented relationships) including, but not limited to, law firm operating accounts, law firm escrow accounts, merchant reserves, ISO reserves, ACH processing, and custodial accounts.

Due to the nature of our larger mass tort and class action settlements related to the litigation vertical, we participate in FDIC insured sweep programs as well as treasury secured money market funds. As of March 31, 2023, off-balance sheet sweep funds totaled approximately $262.5 million, of which approximately $140.5 million, or 53.5%, was available to be swept back onto our balance sheet as reciprocal client relationship deposits. Our deposit growth and off-balance sheet funds continue to demonstrate our highly efficient branchless and technology enabled deposit platforms.

At March 31, 2023, we had the ability to borrow up to $144.8 million from the FHLB of New York and $36.6 million from the FRB of New York discount window. No borrowing amounts were outstanding in the first quarter. Historically, we have never leveraged our balance sheet to generate earnings and have always utilized core client deposits to fund our asset growth and related earnings.  Additionally, subsequent to quarter end, the Company had access to the Federal Reserve Bank Term Funding Program but did not draw on such facility.  

Stockholders’ equity increased $27.4 million to $170.8 million as of March 31, 2023, compared to March 31, 2022. This increase was primarily due to net income and amortization of share-based compensation, partially offset by the following items: other comprehensive losses of $6.7 million; dividends paid to common stockholders of $3.1 million; a January 1, 2023 reduction of $567 thousand, net of tax, attributable to the adoption of the CECL standard; and the repurchase of 7,500 shares at a cost of $268 thousand. The other comprehensive loss reflects the current unrealized losses on our available-for-sale agency MBS portfolio, net of tax, that have been negatively impacted by recent increases in short-term market interest rates.

Esquire Bank remains well above bank regulatory “Well Capitalized” standards.

5

About Esquire Financial Holdings, Inc.

Esquire Financial Holdings, Inc. is a financial holding company headquartered in Jericho, New York, with one branch office in Jericho, New York and an administrative office in Boca Raton, Florida. Its wholly-owned subsidiary, Esquire Bank, National Association, is a full-service commercial bank dedicated to serving the financial needs of the litigation industry and small businesses nationally, as well as commercial and retail clients in the New York metropolitan area. The Bank offers tailored financial and payment processing solutions to the litigation community and their clients as well as dynamic and flexible payment processing solutions to small business owners. For more information, visit www.esquirebank.com.

Cautionary Note Regarding Forward-Looking Statements

This press release includes “forward-looking statements” relating to future results of the Company. Forward-looking statements are subject to many risks and uncertainties, including, but not limited to: changes in business plans as circumstances warrant; changes in general economic, business and political conditions, including changes in the financial markets; the continuing impact of the COVID-19 pandemic on our business and results of operation; and other risks detailed in the “Cautionary Note Regarding Forward-Looking Statements,” “Risk Factors” and other sections of the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission. The forward-looking statements included in this press release are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “might,” “should,” “could,” “predict,” “potential,” “believe,” “expect,” “attribute,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “goal,” “target,” “outlook,” “aim,” “would,” “annualized” and “outlook,” or similar terminology. Any forward-looking statements presented herein are made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise, except as may be required by law.

Contact Information:

Eric S. Bader

Executive Vice President and Chief Operating Officer

Esquire Financial Holdings, Inc.

(516) 535-2002

eric.bader@esqbank.com

6

ESQUIRE FINANCIAL HOLDINGS, INC.

Condensed Consolidated Statement of Condition (unaudited)

(dollars in thousands except per share data)

	March 31,			December 31,			March 31,
	2023			2022			2022
ASSETS
Cash and cash equivalents	$	203,799		$	164,122		$	148,940
Securities purchased under agreements to resell, at cost		49,230			49,567			48,143
Securities available-for-sale, at fair value		107,936			109,269			134,161
Securities held-to-maturity, at cost		76,931			78,377			47,544
Securities, restricted at cost		2,810			2,810			2,680
Loans, held for investment		965,630			947,295			817,997
Less: allowance for credit losses (1)		(12,952)			(12,223)			(9,491)
Loans, net of allowance		952,678			935,072			808,506
Premises and equipment, net		2,593			2,704			3,163
Other assets		54,847			53,718			49,692
Total Assets	$	1,450,824		$	1,395,639		$	1,242,829
LIABILITIES AND STOCKHOLDERS' EQUITY
Demand deposits	$	548,509		$	444,324		$	488,960
Savings, NOW and money market deposits		709,511			764,354			581,721
Certificates of deposit		6,352			19,558			19,239
Total deposits		1,264,372			1,228,236			1,089,920
Other liabilities		15,701			9,245			9,524
Total liabilities		1,280,073			1,237,481			1,099,444
Total stockholders' equity		170,751			158,158			143,385
Total Liabilities and Stockholders' Equity	$	1,450,824		$	1,395,639		$	1,242,829
Selected Financial Data
Common shares outstanding		8,190,758			8,195,333			8,076,320
Book value per share	$	20.85		$	19.30		$	17.75
Equity to assets		11.77	%		11.33	%		11.54	%
Capital Ratios (2)
Tier 1 leverage ratio		11.31	%		10.98	%		11.55	%
Common equity tier 1 capital ratio		14.89	%		14.21	%		14.55	%
Tier 1 capital ratio		14.89	%		14.21	%		14.55	%
Total capital ratio		16.14	%		15.44	%		15.63	%
Asset Quality - Loans Held for Investment
Nonperforming loans	$	—		$	4		$	7
Allowance for credit losses to total loans		1.34	%		1.29	%		1.16	%
Nonperforming loans to total loans		0.00	%		0.00	%		0.00	%
Nonperforming assets to total assets		0.00	%		0.00	%		0.00	%
Allowance to nonperforming loans		NM			NM			NM

(1) Results for reporting periods beginning after January 1, 2023 are presented under the CECL Standard while prior period amounts are reported in accordance with previously applicable GAAP.

(2) Regulatory capital ratios presented on bank-only basis. The Bank has no recorded intangible assets on the Statement of Financial Condition, so accordingly, tangible common equity is equal to common equity.

NM – Not meaningful

7

ESQUIRE FINANCIAL HOLDINGS, INC.

Condensed Consolidated Income Statement (unaudited)

(dollars in thousands except per share data)

	Three Months Ended
	March 31,			December 31,			March 31,
	2023			2022			2022
Interest income	$	20,365		$	19,053		$	12,024
Interest expense		1,076			714			238
Net interest income		19,289			18,339			11,786
Provision for credit losses (1)		500			1,350			640
Net interest income after provision for credit losses		18,789			16,989			11,146
Noninterest income:
Payment processing fees		5,513			5,657			5,316
Gain on equity investment		4,027			—			—
Other noninterest income		722			1,126			186
Total noninterest income		10,262			6,783			5,502
Noninterest expense:
Employee compensation and benefits		7,484			6,822			6,134
Other expenses		4,997			4,549			3,246
Total noninterest expense		12,481			11,371			9,380
Income before income taxes		16,570			12,401			7,268
Income taxes		4,391			3,286			1,926
Net income	$	12,179		$	9,115		$	5,342
Earnings Per Share
Basic	$	1.58		$	1.19		$	0.70
Diluted	$	1.47		$	1.10		$	0.66
Basic - adjusted (2)	$	1.20		$	1.19		$	0.70
Diluted - adjusted (2)	$	1.11		$	1.10		$	0.66
Selected Financial Data
Return on average assets		3.68	%		2.80	%		1.92	%
Return on average equity		30.45	%		23.89	%		15.06	%
Adjusted return on average assets (2)		2.79	%		2.80	%		1.92	%
Adjusted return on average equity (2)		23.10	%		23.89	%		15.06	%
Net interest margin		6.03	%		5.81	%		4.43	%
Efficiency ratio (2)		42.2	%		45.3	%		54.3	%
Adjusted efficiency ratio (2)		48.9	%		45.3	%		54.3	%
Cash dividends paid per common share	$	0.10		$	0.10		$	—
Weighted average basic shares		7,708,745			7,666,674			7,620,241
Weighted average diluted shares		8,302,633			8,296,176			8,147,475

(1) Results for reporting periods beginning after January 1, 2023 are presented under the CECL Standard while prior period amounts are reported in accordance with previously applicable GAAP.

(2) See non-GAAP reconciliation provided elsewhere herein.

8

ESQUIRE FINANCIAL HOLDINGS, INC.

Condensed Consolidated Average Balance Sheets and Average Yield/Cost (unaudited)

(dollars in thousands)

	For the Three Months Ended
	March 31,						December 31,						March 31,
	2023						2022						2022
					Average						Average						Average
	Average				Yield/		Average				Yield/		Average				Yield/
	Balance		Interest		Cost		Balance		Interest		Cost		Balance		Interest		Cost
INTEREST EARNING ASSETS
Loans, held for investment	$	951,925	$	17,615	7.50	%	$	900,407	$	16,508	7.27	%	$	776,566	$	11,020	5.76	%
Securities, includes restricted stock		208,819		1,154	2.24	%		213,400		1,186	2.20	%		181,328		815	1.82	%
Securities purchased under agreements to resell		49,405		653	5.36	%		49,172		552	4.45	%		49,612		132	1.08	%
Interest earning cash and other		88,209		943	4.34	%		90,329		807	3.54	%		72,456		57	0.32	%
Total interest earning assets		1,298,358		20,365	6.36	%		1,253,308		19,053	6.03	%		1,079,962		12,024	4.52	%
NONINTEREST EARNING ASSETS		44,186						40,335						50,787
TOTAL AVERAGE ASSETS	$	1,342,544					$	1,293,643					$	1,130,749
INTEREST BEARING LIABILITIES
Savings, NOW, Money Market deposits	$	648,183	$	1,012	0.63	%	$	617,549	$	648	0.42	%	$	489,245	$	218	0.18	%
Time deposits		9,424		63	2.71	%		13,588		65	1.90	%		19,242		19	0.40	%
Total interest bearing deposits		657,607		1,075	0.66	%		631,137		713	0.45	%		508,487		237	0.19	%
Borrowings		47		1	8.63	%		101		1	3.93	%		50		1	8.11	%
Total interest bearing liabilities		657,654		1,076	0.66	%		631,238		714	0.45	%		508,537		238	0.19	%
NONINTEREST BEARING LIABILITIES
Demand deposits		504,765						495,337						469,938
Other liabilities		17,897						15,680						8,414
Total noninterest bearing liabilities		522,662						511,017						478,352
Stockholders' equity		162,228						151,388						143,860
TOTAL AVG. LIABILITIES AND EQUITY	$	1,342,544					$	1,293,643					$	1,130,749
Net interest income			$	19,289					$	18,339					$	11,786
Net interest spread					5.70	%					5.58	%					4.33	%
Net interest margin					6.03	%					5.81	%					4.43	%

9

ESQUIRE FINANCIAL HOLDINGS, INC.

Condensed Consolidated Non-GAAP Financial Measure Reconciliation (unaudited)

(all dollars in thousands except per share data)

We believe that these non-GAAP financial measures provide information that is important to investors and that is useful in understanding our financial position, results and ratios. However, these non-GAAP financial measures are supplemental and are not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for this measure, this presentation may not be comparable to other similarly titled measures by other companies.

Adjusted net income, which is used to compute adjusted return on average assets, adjusted return on average equity and adjusted earnings per share, excludes the impact of the recognized gain, net of tax, on the Company’s equity investment in Litify Inc.

	Three Months Ended
	March 31,			December 31,			March 31,
	2023			2022			2022
Net income – GAAP	$	12,179		$	9,115		$	5,342
Less: gain on equity investment		(4,027)			—			—
Add: income tax impact		1,087			—			—
Adjusted net income	$	9,239		$	9,115		$	5,342
Return on average assets – GAAP		3.68	%		2.80	%		1.92	%
Adjusted return on average assets		2.79	%		2.80	%		1.92	%
Return on average equity – GAAP		30.45	%		23.89	%		15.06	%
Adjusted return on average equity		23.10	%		23.89	%		15.06	%
Basic earnings per share – GAAP	$	1.58		$	1.19		$	0.70
Adjusted basic earnings per share	$	1.20		$	1.19		$	0.70
Diluted earnings per share – GAAP	$	1.47		$	1.10		$	0.66
Adjusted diluted earnings per share	$	1.11		$	1.10		$	0.66

The following table presents a reconciliation of efficiency ratio (non-GAAP) and adjusted efficiency ratio (non-GAAP).

	Three Months Ended
	March 31,			December 31,			March 31,
	2023			2022			2022
Efficiency ratio – non-GAAP(1)		42.2	%		45.3	%		54.3	%
Noninterest expense – GAAP	$	12,481		$	11,371		$	9,380
Net interest income – GAAP		19,289			18,339			11,786
Noninterest income – GAAP		10,262			6,783			5,502
Less: gain on equity investment		(4,027)			—			—
Adjusted noninterest income – non-GAAP	$	6,235		$	6,783		$	5,502
Adjusted efficiency ratio – non-GAAP(2)		48.9	%		45.3	%		54.3	%

(1) The reported efficiency ratio is a non-GAAP measure calculated by dividing GAAP noninterest expense by the sum of GAAP net interest income and GAAP noninterest income.

(2) The adjusted efficiency ratio is a non-GAAP measure calculated by dividing GAAP noninterest expense by the sum of GAAP net interest income and adjusted noninterest income.

10

The following table presents the adjusted tangible common equity to tangible assets calculation (non-GAAP):

	March 31,
	2023
Total assets - GAAP	$	1,450,824
Less: intangible assets		—
Tangible assets ("TA") - non-GAAP		1,450,824
Total stockholders' equity - GAAP	$	170,751
Less: intangible assets		—
Less: preferred stock		—
Tangible common equity ("TCE") - non-GAAP		170,751
Add: unrecognized losses on securities held-to-maturity, net of tax		(5,661)
Adjusted TCE - non-GAAP	$	165,090
Stockholders' equity to assets - GAAP		11.77	%
TCE to TA - non-GAAP		11.77	%
Adjusted TCE to TA - non-GAAP		11.38	%

The following table presents the common equity tier 1 capital ratio and the adjusted common equity tier 1 capital ratio:

	March 31,
	2023
Common equity tier 1 ("CET1") capital - Bank	$	150,327
Less: unrealized losses on securities available-for-sale , net of tax		(13,732)
Less: unrecognized losses on securities held-to-maturity, net of tax		(5,661)
Adjusted CET1 capital - Bank	$	130,934
Total risk-weighted assets - Bank	$	1,009,435
CET1 capital ratio(1)		14.89	%
Adjusted CET1 capital ratio(1)		12.97	%

(1) Regulatory capital ratios presented on bank-only basis. The Bank has no recorded intangible assets on the Statement of Financial Condition, and accordingly, tangible common equity is equal to common equity.

11

EX-99.2

Exhibit 99.2

Ensuring our Clients and Our Institution Succeed Boldly Listed as ESQ Esquire Financial Holdings, Inc. (Financial Holding Company for Esquire Bank, N.A.) 1Q 2023 Investor Presentation Exhibit 99.2

Forward Looking Disclosure This presentation contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements are not historical fact and express management’s current expectations, forecasts of future events or long-term goals and, by their nature, are subject to assumptions, risks and uncertainties, many of which are beyond the control of the Company. These statements are may be identified through the use of words or phrases such as “may,” “might,” “should,” “could,” “predict,” “potential,” “believe,” “expect,” “attribute,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “goal,” “target,” “outlook,” “aim,” “would,” “annualized” and “outlook,” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. Forward-looking statements speak only as of the date they are made and are inherently subject to uncertainties and changes in circumstances, including those described under the heading “Risk Factors” in the Company’s 10-K and 10-Q, filed with the Securities and Exchange Commission (“SEC”). Forward-looking statements are not guarantees of future performance and should not be relied upon as representing management’s views as of any subsequent date. Actual results could differ materially from those indicated. The Company undertakes no obligation to update forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law. The forward-looking statements speak as of the date of this presentation. The delivery of this presentation shall not, under any circumstances, create any implication there has been no change in the affairs of the Company after the date hereof. This presentation includes industry and market data that we obtained from periodic industry publications, third-party studies and surveys. Industry publications and surveys generally state that the information contained therein has been obtained from sources believed to be reliable. Although we believe the industry and market data to be reliable as of the date of this presentation, this information could prove to be inaccurate. Industry and market data could be wrong because of the method by which sources obtained their data and because information cannot always be verified with complete certainty due to the limits on the availability and reliability of raw data, the voluntary nature of the data gathering process and other limitations and uncertainties. In addition, we do not know all of the assumptions regarding general economic conditions or growth that were used in preparing the forecasts from the sources relied upon or cited herein. This presentation contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). We believe that these non-GAAP financial measures provide information that is important to investors and that is useful in understanding our financial position, results and ratios. However, these non-GAAP financial measures are supplemental and are not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for this measure, this presentation may not be comparable to other similarly titled measures by other companies. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. A reconciliation of the non-GAAP measures used in this presentation to the most directly comparable GAAP measures is provided in the Appendix to this presentation. 2

Ensuring that our Company and clients succeed boldly with innovative solution-based products and technology, driving client success through relationship banking Our Mission

 Decades of expertise in the national litigation market  Asset sensitive model anchored by law firm loans yielding approx. 9.5%  Branchless and tech enabled core deposit platform funded at 0.38%  Driving loan and deposit growth with a CAGR in excess of 20% since 2015  Expertise in sales, risk, and compliance management for 25+ years  Independent Sales Organization (“ISO”) model with approximately 78,000 merchants nationally  Fee income represents 24% of total adjusted(1) revenue  Strong growth and stable payment processing fee income with a CAGR of 46% since 2017  Avg. ROA and ROTCE of 3.68% and 30.45%, respectively. Adj .(1) avg. ROA and ROTCE of 2.79% and 23.10%, respectively  Industry leading NIM of 6.03%  Diversified revenue stream with strong NIM and stable fee income  Strong efficiency ratio of 42.2% while investing in vertical specific technology & future growth. Adjusted(1) efficiency ratio of 48.9%  A digital-first bank with best-in-class technology fueling future growth and industry leading client retention rates  Customized and fully integrated Customer Relationship Management (“CRM”) for excellence in client service and operational efficiency  Investments made in artificial intelligence (“AI”) to facilitate precision marketing and client acquisition across our national verticals Nationwide Branchless Tech Enabled Litigation & Payment Processing Verticals Generating Industry Leading Returns Litigation Vertical Commercial Banking Nationally Industry Leading Returns Fueled by Branchless and Tech Enabled National Verticals Payment Processing Vertical (Merchant Services) Small Business Banking Nationally Technology – the Future A Catalyst for Strong Growth 4 How Our Clients Succeed Boldly (1) The adjusted results exclude a nonrecurring pretax $4.0 million gain on a fintech equity investment. See non-GAAP reconciliation provided in the appendix.

Strong Growth Driven by Unique National Verticals How Esquire Succeeds Boldly Key Highlights  Strong growth in higher yielding variable rate commercial loans on a national basis  Stable low-cost branchless and tech enabled deposit model  Equity to Assets of 11.77% (Adjusted(1) 11.38%)  Common Equity Tier 1 of 14.89% (Adjusted(1) 12.97%) 5 at March 31, 2023 (1) See non-GAAP reconciliation provided in the appendix.

 Stable low-cost branchless deposit model  Strong commercial deposits franchise nationally  DDA and escrow-based NOW accounts represent 43% and 43% of total deposits at March 31, 2023, respectively  Higher yielding variable rate commercial loans anchored by our national litigation portfolio  Asset sensitive balance sheet benefiting from increases in short-term interest rates How Esquire Succeeds Boldly 6 Industry Leading Net Interest Margin

Strong Revenue Growth ($ in thousands) at March 31, 2023 How Esquire Succeeds Boldly 7 Key Highlights  Strong asset sensitive net interest margin  Stable payment processing fee income as short-term interest rates increase  Growing ASP fee income derived from off-balance sheet funds management

Financial Highlights How Esquire Succeeds Boldly Key Highlights  Industry leading returns from our unique and tech enabled national business models  Stable payment processing fee income – fee income totaled 24% of adjusted(1) revenue for the quarter ended March 31, 2023  Branchless low-cost deposits with a cost of funds of 0.38% for the quarter ended March 31, 2023 *  Book value per share and equity to assets are $20.85 and 11.77% at March 31, 2023, respectively  Raymond James’ Top Performing Community Bank (2018-2021)  Piper Sandler & Co.’s “2021 FSG Top Ideas”  Added to the Russell 3000 Index as part of the 2022 index reconstitution 8 at March 31, 2023 *Included noninterest bearing demand deposits (“DDA”) (1) The adjusted results exclude a nonrecurring pretax $4.0 million gain on a fintech equity investment. See non-GAAP reconciliation provided in the appendix.

Financial Highlights, cont’d How Esquire Succeeds Boldly 9 at March 31, 2023 *EPS – Earnings Per Share (1) The adjusted results excluded a nonrecurring pretax $4.0 million gain on equity investment. See non-GAAP reconciliation provided in the appendix

Loan Portfolio Diversification with Focused Growth  Focused growth in higher yielding variable rate commercial loans with strong credit metrics on a national basis  Selective multifamily loan growth with strong historical performance in the NY metro market How Esquire Succeeds Boldly 10 at March 31, 2023

 Substantially all of our $566 million commercial loans are variable rate and tied to prime, comprising approximately 59% of our loan portfolio  Asset sensitive – estimated sensitivity of projected annualized net interest income (“NII”) up 100 and 200 basis point rate scenarios increases projected NII by 5.9% and 11.7%, respectively at December 31, 2022 Loan Portfolio Diversification with Focused Growth How Esquire Succeeds Boldly 11

Solid Credit Metrics, Asset Quality and ACL Coverage How Esquire Succeeds Boldly 12 at March 31, 2023 Note – All asset quality metrics are based on our loans held for investment portfolio (1) NFL consumer loan portfolio - $9.0 million charge-off.

*Note: Excludes sweeps totaling $263 million Deposit Composition and Growth  DDA and NOW (escrow funds) deposits total 86% of total deposits, representing stable funding sources in various interest rate scenarios  Litigation and payment processing deposits represent 71% and 12% of total deposits at March 31, 2023, respectively  Uninsured deposits (excluding $7.4 million of affiliate deposits) totaled $417 million, or 33%, of total deposits with more than 90% representing clients with full relationship banking including, but not limited to, law firm operating accounts, certain balances of escrow accounts, merchant reserves, ISO reserves, ACH processing, and custodial accounts  Off -balance sheet sweep funds totaled $263 million at March 31, 2023, with $141 million, or 54%, available for additional on -balance sheet liquidity  Our tech enabled deposit platform allows our commercial customers to utilize our corporate cash management suite, including remote deposit capture (“RDC”) while also leveraging our mobile banking application, creating a highly efficient branchless platform  Our overall liquidity position (cash, reverse repos, borrowing capacity, and available reciprocal client sweep balances) totaled $588 million, or 47% of total deposits, creating a highly liquid and unlevered balance sheet How Esquire Succeeds Boldly 13

Significant national markets primed for disruption: $443 billion & 100,000+ firms in the litigation vertical and $9.5 trillion and 10+ million merchants in the payment processing vertical Key Takeaways Why Esquire is Set to Succeed Boldly Tremendous untapped potential: Esquire’s current market share is a fraction of both national verticals that are primed for disruption by our client-centric & tech-focused institution We are thought leaders in the litigation vertical and provide C-suite access for ISO flexibility in the payment processing vertical Differentiated and positioned for growth: With industry leading tailored products and state-of-the-art technology geared towards effective client acquisition 14

National Markets Litigation & Payment Processing Verticals Supported by Investment in Technology

Commercial Litigation (Law Firm) Loans  Full annual underwriting: 3 years financials and tax returns (business and personal)  Full contingent case inventory valuation process & collateral assignment  Diversity across law firm inventories and collateral  Personal guarantees  Average LTV of less than 20%  Average DSCR is typically greater than 1.70x  Average draws against committed and uncommitted line-of-credit (“LOC”) and case disbursement loans of approximately 50%  Weighted average interest rate approximately 9.5%  Funded with low-cost litigation deposits  Litigation deposits to litigation loans drawn is approximately 189% How Esquire Succeeds Boldly 16

Payment Processing – Current ISO Model How Esquire Succeeds Boldly What is an ISO? ISO Responsibilities They Do  Merchant Vertical and Technology Focus  Sales Agent Model  Performs Initial Underwriting  Boards Merchant to Payment Processing Platform  Installation of Merchant Equipment  Manage Call Center for Merchant Clients  Merchant Risk and PCI Compliance Bank Responsibilities We Do  Robust Policies  Tech Enabled Card Brand and Regulatory Compliance  Support Multiple Processing Systems  Assess ISO Verticals  Re-underwrite Merchant Applications  Utilize Industry Leading Risk Management Technology  Daily and Month End Risk and Compliance Management  Commercial Treasury Function for Merchant Clearing and ISO Cash Management  Maintaining and Monitor ISO and Merchant Reserves (DDA) 17

 Currently servicing approximately 78,000 merchants across 50 states  Fee income, primarily payment processing fees, represents 24% of total adjusted(1) revenue for the quarter ended March 31, 2023 How Esquire Succeeds Boldly *Payment processing CAGR is 46% (1) The adjusted results exclude a nonrecurring pretax $4.0 million gain on a fintech equity investment. See non-GAAP reconciliation provided in the appendix. 18 Strong Growth in Stable Noninterest Income at March 31, 2023

How Esquire Succeeds Boldly Key Highlights  Strong and stable DDA reserves  Protecting capital from merchant chargebacks and returns 19 Protecting Our Company with Strong Payment Processing Reserves at March 31, 2023

Technology Driving Bold Success Client Centric Technology A Key Driver for Future Growth Website Artificial Intelligence* Marketing Sales Underwriting Onboarding Marketing Cloud AI to facilitate precision marketing and exponential customer acquisition across all verticals Website analytics, data enrichment and thought leadership content marketing Precision marketing – right offer right time Sales enablement, pipeline management and forecasting Underwriting efficiency & risk management / cash management and mobile banking / online applications Customer onboarding / core banking  Partnering with best-in-class software vendors and solutions, with custom development to service all verticals at the bank  Proprietary CRM built on Salesforce platform housing all client data touch points from prospect to boarding with a single client view, enabling high volume client acquisition strategies and excellence in client service * Deployment of AI technologies applicable only to sales and marketing processes and not used as a decisioning tool for loan underwriting processes. 20 Online Banking

Succeeding Boldly Listed as ESQ Contact Information: Eric S. Bader Executive Vice President & Chief Operating Officer 516-535-2002 eric.bader@esqbank.com

Commercial Real Estate Loans, U.S. Litigation & Payment Markets, Non-GAAP Reconciliation Appendix

Esquire’s Bold Opportunities New York City properties total $1.3 trillion in Market Value.* A Significant Growth Opportunity  Thoughtful in our property and borrower selection process  Minimal historical losses  Average debt-service coverage (“DSCR”) of approximately 1.5x  Average loan-to-value (“LTV”) of approximately 55%  Strong owner and operators with high quality net worth  CRE exposure is less than 225% of total capital plus the allowance for credit losses (“ACL”) 23 *NYC Department of Finance publishes fiscal year 2022 tentative property tax assessment roll issued on January 15, 2021

The Esquire Competitive Advantage Esquire’s Bold Opportunities U.S. Litigation Market A Significant Growth Opportunity  U.S. Tort actions are estimated to consume 1.85-2.13% of U.S. GDP* annually or $443 billion*  Esquire does not compete with non-bank finance companies  Significant barriers to entry – management expertise, brand awareness, regulatory/compliance, and decades of experience 15-Year Industry Track Record Extensive Litigation Experience In-House Deep Relationships with Respected Firms Nationally Daily Resources and Research Cash Flow Lending Coupled with Borrowing Base or Asset Based Approach Tailoring unique products other banks do not offer Typically advancing more than traditional banks, on traditional banking terms 24 Key Highlights  $443 billion* Total Addressable Market (“TAM”) in litigation vertical  Esquire is a tailored, differentiated brand and thought leader in the litigation market *US Chamber of Commerce Institute for Legal Reform – “Tort Costs in America – An Empirical Analysis of Costs and Compensation of U.S. Tort System”. Published in November 2022.

25 Digitally Transforming The Business of Law Aligning Law Firm Case Inventory Lifecycle to Customer Retention Client Incident Receive Intake Case Management Settlement/ Verdict Disbursement $ 1-3 Years (+) Products  Case Cost Loans  Working Capital Loans  Firm and Partner Acquisition Loans  Term Loans to Finance Case Acquisition & Growth  Escrow Banking and QSF Settlement Services  Plaintiff Banking including Exclusive Prepaid Card Offering Technology  Esquire Insight – Case Management Technology  Commercial Cash Management  Case Cost Management  Online Applications  Thought Leadership - Digital Platform and Content 25

The payments industry grew nearly 25% from 2020 to 2021 to an estimated total payment volume of $9.5 trillion Esquire’s Bold Opportunities Payment Volume Trends – A Significant Growth Opportunity Sources: Company Financial Records, Note: PayPal figures represent PayPal’s estimated U.S.percent share of “Total Payment Volume” (TPV).PayPal volume includes volume from a bank account, a PayPal account balance, a PayPalCredit account, a credit or debit card or other stored value products such as coupons and gift cards. Assuch, some of this volume may be included in other networks aswell. PayPal’s classification in the payments industry ecosystem is varied/debated as it performs functions attributed to a payment network, an issuer, acquirer, etc., and its financial reporting does not directly align with other payment network reporting structures and methods. Discover volume includes Discover Network and PulseNetwork transactions. 2019-2021: +9.7% CAGR 26 at December 31, 2021 ($ in billions)

Appendix (all dollars in thousands except per share data) 27 Non-GAAP Financial Measure Reconciliation We believe that these non-GAAP financial measures provide information that is important to investors and that is useful in understanding our financial position, results and ratios. However, these non-GAAP financial measures are supplemental and are not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for this measure, this presentation may not be comparable to other similarly titled measures by other companies. Adjusted net income, which is used to compute adjusted return on average assets, adjusted return on average equity and adjusted earnings per share, excludes the impact of the recognized gain, net of tax, on the Company’s equity investment in Litify Inc. Three Months Ended March 31, December 31, March 31, 2023 2022 2022 Net income – GAAP $ 12,179 $ 9,115 $ 5,342 Less: gain on equity investment (4,027) — — Add: income tax impact 1,087 — — Adjusted net income $ 9,239 $ 9,115 $ 5,342 Return on average assets – GAAP 3.68 % 2.80 % 1.92 % Adjusted return on average assets 2.79 % 2.80 % 1.92 % Return on average equity – GAAP 30.45 % 23.89 % 15.06 % Adjusted return on average equity 23.10 % 23.89 % 15.06 % Basic earnings per share – GAAP $ 1.58 $ 1.19 $ 0.70 Adjusted basic earnings per share $ 1.20 $ 1.19 $ 0.70 Diluted earnings per share – GAAP $ 1.47 $ 1.10 $ 0.66 Adjusted diluted earnings per share $ 1.11 $ 1.10 $ 0.66

Appendix (all dollars in thousands) 28 Non-GAAP Financial Measure Reconciliation (Cont’d) The following table presents a reconciliation of efficiency ratio (non-GAAP) and adjusted efficiency ratio (non-GAAP). Three Months Ended March 31, December 31, March 31, 2023 2022 2022 Efficiency ratio – non-GAAP(1) 42.2 % 45.3 % 54.3 % Noninterest expense – GAAP $ 12,481 $ 11,371 $ 9,380 Net interest income – GAAP 19,289 18,339 11,786 Noninterest income – GAAP 10,262 6,783 5,502 Less: gain on equity investment (4,027) — — Adjusted noninterest income – non-GAAP $ 6,235 $ 6,783 $ 5,502 Adjusted efficiency ratio – non-GAAP(2) 48.9 % 45.3 % 54.3 % (1) The reported efficiency ratio is a non-GAAP measure calculated by dividing GAAP noninterest expense by the sum of GAAP net interest income and GAAP noninterest income. (2) The adjusted efficiency ratio is a non-GAAP measure calculated by dividing GAAP noninterest expense by the sum of GAAP net interest income and adjusted noninterest income.

Appendix (all dollars in thousands) 29 Non-GAAP Financial Measure Reconciliation (Cont’d) The following table presents the adjusted tangible common equity to tangible assets calculation (non-GAAP): March 31, 2023 Total assets - GAAP $ 1,450,824 Less: intangible assets — Tangible assets ("TA") - non-GAAP 1,450,824 Total stockholders' equity - GAAP $ 170,751 Less: intangible assets — Less: preferred stock — Tangible common equity ("TCE") - non-GAAP 170,751 Add: unrecognized losses on securities held-to-maturity, net of tax (5,661) Adjusted TCE - non-GAAP $ 165,090 Stockholders' equity to assets - GAAP 11.77 % TCE to TA - non-GAAP 11.77 % Adjusted TCE to TA - non-GAAP 11.38 %

Appendix (all dollars in thousands) 30 Non-GAAP Financial Measure Reconciliation (Cont’d) The following table presents the common equity tier 1 capital ratio and the adjusted common equity tier 1 capital ratio: (1) Regulatory capital ratios presented on bank-only basis. The Bank has no recorded intangible assets on the Statement of Financial Condition, and accordingly, tangible common equity is equal to common equity. March 31, 2023 Common equity tier 1 ("CET1") capital - Bank $ 150,327 Less: unrealized losses on securities available-for-sale , net of tax (13,732) Less: unrecognized losses on securities held-to-maturity, net of tax (5,661) Adjusted CET1 capital - Bank $ 130,934 Total risk-weighted assets - Bank $ 1,009,435 CET1 capital ratio(1) 14.89 % Adjusted CET1 capital ratio(1) 12.97 %

XML

Document and Entity Information	Apr. 25, 2023
Document and Entity Information [Abstract]
Document Type	8-K
Document Period End Date	Apr. 25, 2023
Entity File Number	001-38131
Entity Registrant Name	Esquire Financial Holdings, Inc.
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	27-5107901
Entity Address, Address Line One	100 Jericho Quadrangle
Entity Address, Adress Line Two	Suite 100
Entity Address, City or Town	Jericho
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	11753
City Area Code	516
Local Phone Number	535-2002
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	ESQ
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false
Entity Central Index Key	0001531031
Amendment Flag	false