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, 2024

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, 2024, 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, 2024. 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, 2024.
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, 2024	By:/s/ Andrew C. Sagliocca
	Andrew C. Sagliocca
	Vice Chairman, Chief Executive Officer and President

EX-99.1

Exhibit 99.1

ESQUIRE FINANCIAL HOLDINGS, INC.

REPORTS FIRST QUARTER 2024 RESULTS

Continued Growth in our National Platforms Drives Industry Leading Performance Metrics

Jericho, NY – April 25, 2024 – Esquire Financial Holdings, Inc. (NASDAQ: ESQ) (the “Company”), the financial holding company for Esquire Bank, National Association (“Esquire Bank” or the “Bank”), (collectively “Esquire”) today announced its operating results for the first quarter of 2024. Significant achievements and key performance metrics during the current quarter include:

● On a linked quarter basis, net income totaled $10.1 million, or $1.20 per diluted share, as compared to $9.9 million, or $1.18 per diluted share, despite our continued investment in people and future growth in the current quarter. For the first quarter 2023, net income totaled $12.2 million, or $1.47 per diluted share, while adjusted⁽¹⁾ net income and diluted earnings per share for the same period were $9.2 million and $1.11, excluding a $4.0 million pre-tax gain on the partial sale of our fintech investment.

● Industry leading and consistent returns on average assets and equity of 2.59% and 20.14% for the current quarter, respectively, as compared to 2.59% and 20.78% on a linked quarter basis. These returns were fueled by the continued expansion of our total revenue base to $29.3 million, led by a strong net interest margin of 6.06% as well as stable fee-based income.

● Loan growth on a linked quarter basis was $20.8 million, or 7% annualized, totaling $1.23 billion and was comprised of higher yielding variable rate commercial loans from our national litigation platform. These commercial loans have and will continue to create additional opportunities for full commercial relationship banking (commercial deposits) through our branchless commercial cash management platform. As anticipated, commercial loan growth was tempered in the first quarter by paydowns of elevated net draws in the fourth quarter 2023 as well as our decision to proactively moderate multifamily and commercial real estate loan growth due to the current economic and short-term interest rate environment.

● Solid credit metrics, asset quality, and reserve coverage ratios with a 1.43% allowance for credit losses to loans ratio and nonperforming loan to total assets ratio of 0.66%, represented by one multifamily loan totaling $10.9 million. Within our commercial real estate portfolio, we have no exposure to commercial office space, no construction loans, and $15.3 million in performing loans to the hospitality industry.

● Continued deposit growth totaling $26.8 million, or 8% annualized, on a linked quarter basis to $1.43 billion, comprised of core low-cost commercial relationship deposits with a cost-of-funds of 0.96% (including demand deposits).  Off-balance sheet sweep funds totaled $466.6 million at quarter end, with approximately 62% available for additional on-balance sheet liquidity, while the associated administrative service payments (“ASP”) fee income totaled $746 thousand for the current quarter. Additional available liquidity totaled approximately $647 million (secured FHLB and FRB borrowing capacity plus available on-balance sheet sweep liquidity), excluding cash & cash equivalents and any unsecured borrowings capacity.

● Stable and consistent fee income totaling $6.4 million or 22% of total revenue, led by our payment processing platform with 85,000 small business clients nationally. Our technology enabled payments platform facilitated the processing of $8.6 billion in credit and debit card payment volume across 150.5 million transactions for our clients in the current quarter.

● Strong efficiency ratio of 49.8% notwithstanding our investments in resources to support future growth and excellence in client service.

● Our consistent industry leading performance and growth has led to an increase in our regular quarterly cash dividends to $0.15 per share of common stock, or 12.5% of earnings per diluted share.

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

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● In January 2024, the Company announced that it closed on a committed investment of $6 million (representing 24.99% ownership interest) in United Payment Systems, LLC (doing business as Payzli), an end-to-end payment technology company that acts as a single source for payment services, business management software, web enablement and mobile solutions.

● On February 28, 2024, the Company announced plans to establish a branch in Los Angeles, California, underscoring the strength of this market for both national verticals and our commitment to future growth. As of the date of this release, the Company has received regulatory approval to establish the branch.

● Strong capital foundation with common equity tier 1 (“CET1”) and tangible common equity to tangible asset⁽¹⁾ (“TCE/TA”) ratios of 14.41% and 12.52%, respectively. Including the after tax unrealized losses on both the available-for-sale and held-to-maturity securities portfolios of $14.4 million and $6.0 million, respectively, the adjusted⁽¹⁾ CET1 and adjusted⁽¹⁾ TCE/TA ratios were 12.88% and 12.16%, respectively. Esquire Bank remains well above the bank regulatory “Well Capitalized” standards.

“We have always believed that a strong and fortified balance sheet anchored by outstanding client relationships will consistently generate long term growth, industry leading performance metrics, and continued success into the future,” stated Tony Coelho, Chairman of the Board. “Our strong credit culture, underwriting, and robust risk management coupled with our ability to generate and retain significant capital from earnings will allow us to continue to grow in a safe and sound manner.”  

“In light of the current economic and interest rate environment surrounding multifamily and commercial real estate, we have tempered our short-term growth targets in these asset classes for the foreseeable future,” stated Andrew C. Sagliocca, Vice Chairman, CEO, and President. “This short-term decision does not impact our view on growth and earnings for 2024 but only impacts the composition of our assets and earnings. Finally, we believe the NY Metro real estate market sentiment, and more specifically multifamily housing, will stabilize as inflation slows and the Federal Reserve moderates its views on short-term rates.”

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

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First Quarter Earnings

Net income for the quarter ended March 31, 2024 was $10.1 million, or $1.20 per diluted share, compared to $12.2 million, or $1.47 per diluted share for the same period in 2023. Returns on average assets and equity for the current quarter were 2.59% and 20.14%, respectively, compared to 3.68% and 30.45% for the same period of 2023. 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 for the quarter ended March 31, 2023 was $9.2 million, $1.11, 2.79% and 23.10%, respectively.

Net interest income for the first quarter of 2024 increased $3.6 million, or 18.5%, to $22.9 million, due to growth in average interest earning assets (funded with core deposits) totaling $218.0 million, or 16.8%, to $1.52 billion as well as a modest increase in our net interest margin to 6.06% when compared to the same period in 2023. Our net interest margin was positively impacted by growth in higher yielding variable rate commercial loans. The average yield on loans increased 28 basis points to 7.78%, primarily driven by growth in higher yielding variable rate commercial loans. Average loans in the quarter increased $256.5 million, or 26.9%, to $1.21 billion when compared to the first quarter of 2023, primarily due to growth in our national commercial lending platform and, to a lesser extent, our regional multi-family real estate loan portfolio. Loan income increased $5.8 million, or 32.8%, to $23.4 million with the increases in average loan balances (primarily commercial) accounting for $5.2 million of the increase and $600 thousand representing increases in average rate. Our loan-to-deposit ratio was 85.6% as our low-cost deposit base increased $169.7 million, or 13.4%, primarily due to growth in our longer duration escrow (interest on lawyer trust accounts or “IOLTA”) deposit banking relationships. Our deposit cost-of-funds, excluding demand deposits, increased 82 basis points in the current quarter when compared to 2023 due to increases in short-term interest rates as well as management pro-actively increasing rates on IOLTA accounts in the various states where we operate. Deposit expense increased $2.1 million to $3.2 million with increases in average rate (primarily core IOLTA relationship deposits) accounting for $1.4 million of the increase and increases related to average deposit balances accounting for $707 thousand (primarily core relationship money market deposits) of the increase. Average securities in the quarter increased $17.4 million to $226.2 million and yields increased 61 basis points to 2.85%, primarily due to reinvestment of portfolio cash flows into securities at current market rates. The movement in short-term interest rates increased yields and interest income on our interest earning cash balances.

The provision for credit losses was $1.0 million for the first quarter of 2024, a $500 thousand increase from the first quarter 2023 provision. As of March 31, 2024, our allowance to loans ratio was 1.43% as compared to 1.34% as of March 31, 2023. 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.

Noninterest income totaled $6.4 million for the first quarter of 2024 as compared to $10.3 million in the same period for 2023. Excluding the $4.0 million gain on our Litify fintech investment, adjusted⁽¹⁾ noninterest income in the first quarter of 2023 was $6.3 million. Payment processing income was $5.3 million for the first quarter of 2024, a $217 thousand decrease from the same period in 2023, primarily due to the anticipated ISO customer turnover and changes in our overall merchant risk profile. Payment processing volumes and transactions for the credit and debit card processing platform increased $937 million, or 12.2%, to $8.6 billion and 7.6 million, or 5.3%, to 150.5 million transactions, respectively, for the current quarter, as compared to the same period in 2023. These increases were due to the expansion of sales channels through ISOs, an 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 85,000 small business merchants in all 50 states, and perform commercial treasury clearing services. ASP fee income increased $217 thousand to $746 thousand for the first quarter of 2024. ASP fee income is directly impacted by the average balances of off-balance sheet sweep funds as well as current short-term market interest rates.Other noninterest income increased $155 thousand to $348 thousand when compared to the comparable prior year quarter primarily due to increases in loan fees.

Noninterest expense increased $2.1 million, or 16.7%, to $14.6 million for the first quarter of 2024, as compared to the same period in 2023. This increase was primarily due to increases in employee compensation and benefits, data processing, advertising and marketing, and travel and business relations, partially offset by decreases in professional services costs. Employee compensation and benefits costs increased $1.7 million, or 22.4%, due to increases in employees to support growth and excellence in client service as well as the impact of year end salary, bonus and stock-based compensation increases. Our overall staffing levels increased by 21 employees, or 18%, year-over-year to 139 full time equivalents as of March 31, 2024, primarily from our hiring of six regional managing directors/senior BDOs, resources within our commercial underwriting/lending area, sales support staff, operational staff to support Esquire’s growth plans as well as our risk management and compliance areas, and our new chief legal officer throughout 2023. Data processing costs increased $378 thousand due to increased processing volume, primarily driven by our core banking platform, and additional costs related to our technology implementations. Advertising and marketing costs increased $443 thousand as we continued to grow our digital marketing platform, expand our thought leadership in our national verticals, and support our new regional BDOs.

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

3

Travel and business relations costs increased $130 thousand, as a result of our high touch marketing and sales efforts which complement our digital marketing efforts and additional travel related to our newly hired regional BDOs. Professional services costs decreased $592 thousand due to the costs associated with a global executive search firm in 2023. Our investment in current resources (people, technology, and digital marketing) should continue to support our long-term growth goals.

The Company’s efficiency ratio was 49.8% for the three months ended March 31, 2024, as compared to 42.2% in 2023. The adjusted⁽¹⁾ efficiency ratio was 48.9% for the three months ended March 31, 2023, excluding the aforementioned $4.0 million pre-tax gain. Our strong efficiency ratio is a result of our continued revenue growth driven by our core national platforms. These 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 2024, consistent with the first quarter of 2023.

Asset Quality

At March 31, 2024, we had one nonperforming loan totaling $10.9 million and no exposure to commercial office space, no construction loans, and only $15.3 million in performing loans to the hospitality industry. The allowance for credit losses was $17.5 million, or 1.43% of total loans, as compared to $13.0 million, or 1.34% of total loans at March 31, 2023. The ratio of nonperforming loans to total loans and total assets was 0.89% and 0.66%, respectively. The allowance for credit losses to the nonperforming loans was 160%. 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.

Due to increases in short-term interest rates associated with the current inflationary environment since 2022, management enhanced its ongoing credit risk management including risk management of its commercial real estate loan portfolio. The following is a brief summary of our ongoing risk management for our multifamily and CRE portfolios as of March 31, 2024:

● The multifamily portfolio, totaling $348.7 million, has a current weighted average DSCR and an original LTV (defined as unpaid principal balance as of March 31, 2024 divided by appraised value at origination) of approximately 1.67 and 54%, respectively, and the CRE portfolio, totaling $89.0 million, has a current weighted average DSCR and an original LTV of approximately 1.61 and 60%, respectively.

● Multifamily loans maturing in less than one year totaled $36.7 million and had a current weighted average DSCR and an original LTV of approximately 1.49 and 57%, respectively. CRE loans maturing in less than one year totaled $5.5 million and had a current weighted average DSCR and an original LTV of approximately 3.79 and 52%, respectively.

● Multifamily loans maturing in one to two years totaled $39.0 million and had a current weighted average DSCR and an original LTV of approximately 1.36 and 56%, respectively. CRE loans maturing in one to two years totaled $2.2 million and had a current weighted average DSCR and an original LTV of approximately 1.57 and 61%, respectively.

Balance Sheet

At March 31, 2024, total assets were $1.65 billion, reflecting a $203.5 million, or 14.0% increase from March 31, 2023. This increase was primarily attributable to growth in loans totaling $262.6 million, or 27.2%, to $1.23 billion. Our higher yielding variable rate commercial loans increased $188.4 million, or 33.3%, during this same period. Our commercial relationship banking sales pipeline remains robust, anchored by our national platforms and supported by our competitive advantages in data, analytics and digital marketing. This coupled with our regional BDOs and related support staff should continue to drive growth across our national commercial platform. Our available-for-sale securities portfolio increased $34.2 million to $142.2 million as compared to March 31, 2023. Our held-to-maturity securities portfolio totaled $75.2 million, in line with March 31, 2023. In the third quarter of 2023, management elected to close out its reverse repurchase agreements and reinvest these funds into higher yielding commercial loans.

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

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

	March 31,				December 31,				March 31,
	2024				2023				2023
	(Dollars in thousands)
Real estate:
Multifamily	$	348,666	28.4	%	$	348,241	28.8	%	$	274,656	28.4	%
Commercial real estate		89,016	7.2			89,498	7.4			91,493	9.5
1 – 4 family		17,797	1.5			17,937	1.5			21,730	2.2
Total real estate		455,479	37.1			455,676	37.7			387,879	40.1
Commercial:
Litigation related		634,430	51.6			612,457	50.7			476,888	49.3
Other		119,860	9.8			125,457	10.4			89,039	9.2
Total commercial		754,290	61.4			737,914	61.1			565,927	58.5
Consumer		18,953	1.5			14,491	1.2			13,116	1.4
Total loans held for investment	$	1,228,722	100.0	%	$	1,208,081	100.0	%	$	966,922	100.0	%
Deferred loan fees and unearned premiums, net		(480)				(668)				(1,292)
Loans, held for investment	$	1,228,242			$	1,207,413			$	965,630

Total deposits were $1.43 billion as of March 31, 2024, a $169.7 million, or 13.4%, increase from March 31, 2023. This was primarily due to a $237.5 million, or 33.5%, increase in Savings, NOW and Money Market deposits, driven primarily by our IOLTA and other escrow deposits and, to a lesser extent, our commercial relationship money market deposits (primarily our mass tort/class action funds), offset by a $75.9 million, or 13.8%, decrease in demand deposits. Our deposit strategy primarily focuses on developing full service commercial banking relationships with our clients through lending facilities, payment processing, and other unique commercial cash management services in our two national verticals, rather than competing with other institutions on rate. Our longer duration IOLTA, escrow and claimant trust settlement deposits represent $709.5 million, or 49.5%, of total deposits. As of March 31, 2024, uninsured deposits were $369.4 million, or 26%, of our total deposits of $1.43 billion, excluding $10.6 million of affiliate deposits held by the Bank. Approximately 80% 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 IOLTA/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, 2024, off-balance sheet sweep funds totaled approximately $466.6 million, of which approximately $290.9 million, or 62.3%, was available to be swept 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, 2024, we had the ability to borrow up to $300.1 million from the FHLB of New York and $55.9 million from the FRB of New York discount window. No borrowing amounts were outstanding during the first quarter of 2024. Historically, we have not leveraged our balance sheet to generate earnings and have always utilized core client deposits to fund our asset growth and related earnings.

Stockholders’ equity increased $36.3 million to $207.1 million as of March 31, 2024, when compared to March 31, 2023, primarily from increases in retained earnings.

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

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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” within the meaning of the Private Securities Litigation Reform Act of 1995 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; 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

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ESQUIRE FINANCIAL HOLDINGS, INC.

Consolidated Statement of Condition (unaudited)

(dollars in thousands except per share data)

	March 31,			December 31,			March 31,
	2024			2023			2023
ASSETS
Cash and cash equivalents	$	158,243		$	165,209		$	203,799
Securities purchased under agreements to resell, at cost		—			—			49,230
Securities available-for-sale, at fair value		142,159			122,107			107,936
Securities held-to-maturity, at cost		75,242			77,001			76,931
Securities, restricted at cost		2,928			2,928			2,810
Loans, held for investment		1,228,242			1,207,413			965,630
Less: allowance for credit losses		(17,523)			(16,631)			(12,952)
Loans, net of allowance		1,210,719			1,190,782			952,678
Premises and equipment, net		2,661			2,602			2,593
Other assets		62,329			56,247			54,847
Total Assets	$	1,654,281		$	1,616,876		$	1,450,824
LIABILITIES AND STOCKHOLDERS' EQUITY
Demand deposits	$	472,616		$	473,274		$	548,509
Savings, NOW and money market deposits		947,055			926,264			709,511
Certificates of deposit		14,378			7,761			6,352
Total deposits		1,434,049			1,407,299			1,264,372
Other liabilities		13,154			11,022			15,701
Total liabilities		1,447,203			1,418,321			1,280,073
Total stockholders' equity		207,078			198,555			170,751
Total Liabilities and Stockholders' Equity	$	1,654,281		$	1,616,876		$	1,450,824
Selected Financial Data
Common shares outstanding		8,292,789			8,287,848			8,190,758
Book value per share	$	24.97		$	23.96		$	20.85
Equity to assets		12.52	%		12.28	%		11.77	%
Capital Ratios (1)
Tier 1 leverage ratio		12.42	%		12.07	%		11.31	%
Common equity tier 1 capital ratio		14.41			14.13			14.89
Tier 1 capital ratio		14.41			14.13			14.89
Total capital ratio		15.66			15.38			16.14
Asset Quality
Nonperforming loans	$	10,941		$	10,940		$	—
Allowance for credit losses to total loans		1.43	%		1.38	%		1.34	%
Nonperforming loans to total loans		0.89			0.91			0.00
Nonperforming assets to total assets		0.66			0.68			0.00
Allowance to nonperforming loans		160			152			NM

(1) 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

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ESQUIRE FINANCIAL HOLDINGS, INC.

Consolidated Income Statement (unaudited)

(dollars in thousands except per share data)

	Three Months Ended
	March 31,			December 31,			March 31,
	2024			2023			2023
Interest income	$	26,073		$	25,567		$	20,365
Interest expense		3,210			2,897			1,076
Net interest income		22,863			22,670			19,289
Provision for credit losses		1,000			1,500			500
Net interest income after provision for credit losses		21,863			21,170			18,789
Noninterest income:
Payment processing fees		5,296			5,418			5,513
Gain on equity investments		—			—			4,027
Other noninterest income		1,093			848			722
Total noninterest income		6,389			6,266			10,262
Noninterest expense:
Employee compensation and benefits		9,161			8,761			7,484
Other expenses		5,407			5,140			4,997
Total noninterest expense		14,568			13,901			12,481
Income before income taxes		13,684			13,535			16,570
Income taxes		3,626			3,653			4,391
Net income	$	10,058		$	9,882		$	12,179
Earnings Per Share
Basic	$	1.29		$	1.28		$	1.58
Diluted		1.20			1.18			1.47
Basic - adjusted (1)		1.29			1.28			1.20
Diluted - adjusted (1)		1.20			1.18			1.11
Selected Financial Data
Return on average assets		2.59	%		2.59	%		3.68	%
Return on average equity		20.14			20.78			30.45
Adjusted return on average assets (1)		2.59			2.59			2.79
Adjusted return on average equity (1)		20.14			20.78			23.10
Net interest margin		6.06			6.12			6.03
Efficiency ratio (1)		49.8			48.0			42.2
Adjusted efficiency ratio (1)		49.8			48.0			48.9
Cash dividends paid per common share	$	0.150		$	0.125		$	0.100
Weighted average basic shares		7,786,887			7,730,151			7,708,745
Weighted average diluted shares		8,401,752			8,387,587			8,302,633

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

8

ESQUIRE FINANCIAL HOLDINGS, INC.

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

(dollars in thousands)

	Three Months Ended
	March 31,						December 31,						March 31,
	2024						2023						2023
	Average				Average		Average				Average		Average				Average
	Balance		Interest		Yield/Cost		Balance		Interest		Yield/Cost		Balance		Interest		Yield/Cost
INTEREST EARNING ASSETS
Loans, held for investment	$	1,208,429	$	23,389	7.78	%	$	1,169,411	$	23,028	7.81	%	$	951,925	$	17,615	7.50	%
Securities, includes restricted stock		226,175		1,605	2.85	%		218,130		1,439	2.62	%		208,819		1,154	2.24	%
Securities purchased under agreements to resell		—		—	—			—		—	—			49,405		653	5.36	%
Interest earning cash and other		81,740		1,079	5.31	%		83,103		1,100	5.25	%		88,209		943	4.34	%
Total interest earning assets		1,516,344		26,073	6.92	%		1,470,644		25,567	6.90	%		1,298,358		20,365	6.36	%
NONINTEREST EARNING ASSETS		48,602						44,805						44,186
TOTAL AVERAGE ASSETS	$	1,564,946					$	1,515,449					$	1,342,544
INTEREST BEARING LIABILITIES
Savings, NOW, Money Market deposits	$	860,159	$	3,098	1.45	%	$	814,089	$	2,826	1.38	%	$	648,183	$	1,012	0.63	%
Time deposits		11,041		111	4.04	%		8,366		70	3.32	%		9,424		63	2.71	%
Total interest bearing deposits		871,200		3,209	1.48	%		822,455		2,896	1.40	%		657,607		1,075	0.66	%
Borrowings		45		1	8.94	%		45		1	8.82	%		47		1	8.63	%
Total interest bearing liabilities		871,245		3,210	1.48	%		822,500		2,897	1.40	%		657,654		1,076	0.66	%
NONINTEREST BEARING LIABILITIES
Demand deposits		477,020						484,690						504,765
Other liabilities		15,787						19,614						17,897
Total noninterest bearing liabilities		492,807						504,304						522,662
Stockholders' equity		200,894						188,645						162,228
TOTAL AVG. LIABILITIES AND EQUITY	$	1,564,946					$	1,515,449					$	1,342,544
Net interest income			$	22,863					$	22,670					$	19,289
Net interest spread					5.44	%					5.50	%					5.70	%
Net interest margin					6.06	%					6.12	%					6.03	%
Deposits (including noninterest bearing demand deposits)	$	1,348,220	$	3,209	0.96	%	$	1,307,145	$	2,896	0.88	%	$	1,162,372	$	1,075	0.37	%

9

ESQUIRE FINANCIAL HOLDINGS, INC.

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 investments.

	Three Months Ended
	March 31,			December 31,			March 31,
	2024			2023			2023
Net income – GAAP	$	10,058		$	9,882		$	12,179
Less: gain on equity investments		—			—			(4,027)
Add: income tax impact		—			—			1,087
Adjusted net income	$	10,058		$	9,882		$	9,239
Return on average assets – GAAP		2.59	%		2.59	%		3.68	%
Adjusted return on average assets		2.59	%		2.59	%		2.79	%
Return on average equity – GAAP		20.14	%		20.78	%		30.45	%
Adjusted return on average equity		20.14	%		20.78	%		23.10	%
Basic earnings per share – GAAP	$	1.29		$	1.28		$	1.58
Adjusted basic earnings per share	$	1.29		$	1.28		$	1.20
Diluted earnings per share – GAAP	$	1.20		$	1.18		$	1.47
Adjusted diluted earnings per share	$	1.20		$	1.18		$	1.11

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,
	2024			2023			2023
Efficiency ratio – non-GAAP(1)		49.8	%		48.0	%		42.2	%
Noninterest expense – GAAP	$	14,568		$	13,901		$	12,481
Net interest income – GAAP		22,863			22,670			19,289
Noninterest income – GAAP		6,389			6,266			10,262
Less: gain on equity investments		—			—			(4,027)
Adjusted noninterest income – non-GAAP	$	6,389		$	6,266		$	6,235
Adjusted efficiency ratio – non-GAAP(2)		49.8	%		48.0	%		48.9	%

(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,
	2024
Total assets - GAAP	$	1,654,281
Less: intangible assets		—
Tangible assets ("TA") - non-GAAP		1,654,281
Total stockholders' equity - GAAP	$	207,078
Less: intangible assets		—
Less: preferred stock		—
Tangible common equity ("TCE") - non-GAAP		207,078
Add: unrecognized losses on securities held-to-maturity, net of tax		(5,999)
Adjusted TCE - non-GAAP	$	201,079
Stockholders' equity to assets - GAAP		12.52	%
TCE to TA - non-GAAP		12.52	%
Adjusted TCE to TA - non-GAAP		12.16	%

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

	March 31,
	2024
Common equity tier 1 ("CET1") capital - Bank	$	191,944
Add: unrealized losses on securities available-for-sale , net of tax		(14,369)
Add: unrecognized losses on securities held-to-maturity, net of tax		(5,999)
Adjusted CET1 capital - Bank	$	171,576
Total risk-weighted assets - Bank	$	1,332,002
CET1 capital ratio(1)		14.41	%
Adjusted CET1 capital ratio(1)		12.88	%

(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 2024 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

 Decades of expertise in the national litigation market  Asset sensitive model anchored by law firm loans yielding approx. 10%  Branchless and tech enabled core deposit platform funded at 0.96%  Driving loan and deposit growth with a 5 Year CAGR in excess of 20% since 2019  Expertise in sales, risk, and compliance management for 25+ years  Independent Sales Organization (“ISO”) model with approximately 85,000 merchants nationally  Fee income represents 22% of total revenue  Strong growth and stable fee income with a 5 Year CAGR of 22% since 2019  ROA and ROTCE of 2.59% and 20.14%, respectively  Industry leading NIM of 6.06%  Diversified revenue stream with strong NIM and stable fee income  Strong efficiency ratio of 49.8% while investing in resources (people, IT, and marketing) for future growth  A digital-first disruptor bank with best-in-class technology fueling future growth and industry leading client retention rates  Account-based digital marketing (“ABM”) from our CRM to power prospective client engagements nationally  Leveraged artificial intelligence (“AI”), advanced data analytics, and personalization features to deliver real-time thought leadership content 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 3 How Our Clients Succeed Boldly

Strong Growth Driven by Unique National Verticals How Esquire Succeeds Boldly Key Highlights  Strong growth in higher yielding variable rate commercial loans nationally  Stable low-cost branchless and tech enabled deposit model  Equity to Assets of 12.52% (Adjusted(1) 12.16%)  Common Equity Tier 1 of 14.41% (Adjusted(1) 12.88%) 4 at March 31, 2024 (1) See non-GAAP reconciliation provided in the appendix.

 Stable low-cost branchless funding model with a strong commercial deposit franchise nationally  DDA and escrow-based NOW accounts represent 33% and 50% of total deposits at March 31, 2024, respectively  Higher yielding variable rate commercial loans anchored by our national litigation portfolio  Asset sensitive balance sheet with approximately 90% of our variable rate commercial loans having one-year interest rate floors at their origination or renewal dates How Esquire Succeeds Boldly 5 Industry Leading Net Interest Margin

Strong Revenue Growth ($ in thousands) at March 31, 2024 How Esquire Succeeds Boldly 6 Key Highlights  Strong asset sensitive net interest margin  Stable payment processing fee income  Growing ASP fee income derived from off-balance sheet funds management

Financial Highlights How Esquire Succeeds Boldly Key Highlights  Industry leading returns  Named to the Piper Sandler 2023 Bank & Thrift Small Market-All Stars  Raymond James’ Top Performing Community Bank (2018- 2022)  Book value per share and equity to assets are $24.97 and 12.52% at March 31, 2024, respectively 7 at March 31, 2024 (1) The adjusted results exclude a nonrecurring pretax $4.0 million net gain on equity investments. 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, DSCRs, and LTVs in the NY metro market How Esquire Succeeds Boldly 8 at March 31, 2024

 Substantially all of our $754 million in commercial loans are variable rate and tied to prime comprising approximately 60% of our loan portfolio  Approximately 90% of our commercial loan portfolio was originated (or renewed annually) with interest rate floors in place  Asset sensitive – estimated sensitivity of projected annualized net interest income (“NII”) down 100 and 200 basis point rate scenarios decreases projected NII by 4.6% and 9.2%, respectively at December 31, 2023 Loan Portfolio Diversification with Focused Growth How Esquire Succeeds Boldly 9

Commercial Litigation (Law Firm) Loans  Full annual underwriting including, but not limited to:  3 years financials and tax returns (business and personal)  Full contingent case inventory valuation process & collateral assignment or UCC-1  Personal guarantees for the majority of loans, including personal background checks  Diversity across law firm inventories and collateral  Average loan-to-collateral fee value or LTV of less than 13%  Strong average DSCR (on average > 3.0x)  Average draws against committed and uncommitted line-of-credit (“LOC”) and case disbursement loans of approximately 50%  Weighted average interest rate of approximately 10%  Funded with low-cost contingent law firm litigation deposits  Litigation deposits to litigation loan facilities drawn is approximately 171% How Esquire Succeeds Boldly 10

Esquire’s Bold Opportunities New York Metro Area Real Estate A Reliable Asset Class & Liquidity Source  Selective in our property and borrower selection process  Strong generational owners/operators with high quality net worth  Minimal historical losses  No office nor construction loan exposure  Average current debt-service coverage (“DSCR”) exceeding 1.6x  Average original loan-to-value (“LTV”) of approximately 55%  Rent regulated, free market, and mixed (both rent regulated and free market) represent approximately one-third each of the $348 million multifamily loan portfolio  CRE exposure is less than 225% of Esquire Bank’s regulatory Tier 1 capital plus the allowance for credit losses (“ACL”)  Pledged Multifamily and Residential loan portfolio provides liquidity totaling $155.2 million through the Federal Home Loan Bank of NY (“FHLB”) program as of March 31, 2024 11

Multifamily & CRE Maturities at March 31, 2024  Multifamily loans totaling $75.7 million mature over the next two years with only $1.4 million, or 2%, having an LTV in excess of 70%  Other CRE loans totaling $7.8 million mature over the next two years with no loans in excess of 70% LTV How Esquire Succeeds Boldly 12

Solid Credit Metrics, Asset Quality and ACL Coverage How Esquire Succeeds Boldly at March 31, 2024 Note – All asset quality metrics are based on our loans held for investment portfolio (1) NFL consumer loan portfolio - $9.0 million charge-off. 13

Deposit Composition and Growth  Our tech enabled deposit platform utilizes our corporate cash management suite of services, creating a highly efficient branchless platform  Our overall liquidity position (cash, borrowing capacity, and available reciprocal client sweep balances) totaled $823 million, or 57% of total deposits, creating a highly liquid and unlevered balance sheet How Esquire Succeeds Boldly 14

*Note: Excludes sweeps totaling $467 million Deposit Composition Details  DDA and NOW (escrow funds) deposits total 83% of total deposits, representing stable funding sources in various interest rate scenarios  Litigation and payment processing deposits represent 76% and 11% of total deposits at March 31, 2024, respectively  Uninsured deposits (excluding $10.6 million of affiliate deposits) totaled $369 million, or 26%, of total deposits with approximately 80% 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 $467 million at March 31, 2024, with $291 million, or 62%, available for additional on-balance sheet liquidity How Esquire Succeeds Boldly 15

 Currently servicing approximately 85,000 merchants across 50 states in our payment processing (merchant acquiring) vertical  Fee income, primarily payment processing fees, represents 22% of total revenue for the year ended March 31, 2024 How Esquire Succeeds Boldly Strong Growth in Stable Noninterest Income at March 31, 2024 16

How Esquire Succeeds Boldly Key Highlights  Strong and stable DDA reserves  Protecting capital from merchant chargebacks and returns 17 Protecting Our Company with Strong Payment Processing Reserves at March 31, 2024

Significant national markets primed for disruption: $443 billion & 100,000+ firms in the litigation vertical and $10.3 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 18

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. 19 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

Appendix & Supplemental Disclosure National Markets – Litigation & Payment Processing Verticals & Non-GAAP Reconciliation

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 22 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.

23 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 23

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) 24

The payments industry CAGR was 12% from 2019 to 2022 to an estimated total payment volume of $10.3 trillion Esquire’s Bold Opportunities Payment Volume Trends – A Significant Growth Opportunity Sources: Company Financial Records, Note: PayPal figures represent PayPal’s estimated U.S.percent share of “Total Payment Volume” (TPV).PayPal volume includes volume from a bank account, a PayPal account balance, a PayPalCredit account, a credit or debit card or other stored value products such as coupons and gift cards. Assuch, some of this volume may be included in other networks aswell. PayPal’s classification in the payments industry ecosystem is varied/debated as it performs functions attributed to a payment network, an issuer, acquirer, etc., and its financial reporting does not directly align with other payment network reporting structures and methods. Discover volume includes Discover Network and PulseNetwork transactions. 25 at December 31, 2022 ($ in billions)

Appendix (all dollars in thousands except per share data) 26 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 net recognized gain, net of tax, on the Company’s equity investments. Year Ended December 31, 2023 Net income – GAAP $ 41,011 Less: net gain on equity investments (4,013) Add: income tax impact 1,083 Adjusted net income $ 38,081 Return on average assets – GAAP 2.89 % Adjusted return on average assets 2.68 % Return on average equity – GAAP 23.20 % Adjusted return on average equity 21.54 % Basic earnings per share – GAAP $ 5.31 Adjusted basic earnings per share $ 4.94 Diluted earnings per share – GAAP $ 4.91 Adjusted diluted earnings per share $ 4.56

Appendix (all dollars in thousands) 27 Non-GAAP Financial Measure Reconciliation (Cont’d) The following table presents the adjusted tangible common equity to tangible assets calculation (non-GAAP): March 31, 2024 Total assets - GAAP $ 1,654,281 Less: intangible assets — Tangible assets ("TA") - non-GAAP 1,654,281 Total stockholders' equity - GAAP $ 207,078 Less: intangible assets — Less: preferred stock — Tangible common equity ("TCE") - non-GAAP 207,078 Add: unrecognized losses on securities held-to-maturity, net of tax (5,999) Adjusted TCE - non-GAAP $ 201,079 Stockholders' equity to assets - GAAP 12.52 % TCE to TA - non-GAAP 12.52 % Adjusted TCE to TA - non-GAAP 12.16 %

Appendix (all dollars in thousands) 28 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, 2024 Common equity tier 1 ("CET1") capital - Bank $ 191,944 Add: unrealized losses on securities available-for-sale , net of tax (14,369) Add: unrecognized losses on securities held-to-maturity, net of tax (5,999) Adjusted CET1 capital - Bank $ 171,576 Total risk-weighted assets - Bank $ 1,332,002 CET1 capital ratio(1) 14.41 % Adjusted CET1 capital ratio(1) 12.88 %

XML

Document and Entity Information	Apr. 25, 2024
Document and Entity Information [Abstract]
Document Type	8-K
Document Period End Date	Apr. 25, 2024
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