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): October 24, 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 October 24, 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 September 30, 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 October 24, 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:  October 24, 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 THIRD QUARTER 2024 RESULTS

Prudent Balance Sheet Management and Strong Growth Leads to Industry Leading Performance and Returns

Jericho, NY – October 24, 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 third quarter and year to date of 2024.

“As highlighted in the second quarter earnings release, continued strong growth in low-cost core deposits coupled with our current balance sheet strategy to deploy funds in both higher yielding commercial law firm loans nationally and short duration agency mortgage-backed securities, at peak market interest rates, has produced strong quarterly results,” stated Andrew C. Sagliocca, Vice Chairman, CEO, and President. “As a result of this strategy in 2024, interest earning assets, excluding cash and cash equivalents, increased $173.3 million, or 16% annualized, while maintaining a strong net interest margin of 6.16% and 6.14% for the current quarter and year, respectively.”

Significant achievements and key performance metrics during the current quarter and year to date include:

● On a linked quarter basis, net income increased $873 thousand, or 8.3%, to $11.4 million, or $1.34 per diluted share, as compared to $10.5 million, or $1.25 per diluted share. Net income increased $1.5 million or 15.5% from $9.8 million in the third quarter of 2023, or $1.17 per diluted share.

● Consistent industry leading returns on average assets and equity of 2.62% and 20.29% for the current quarter, respectively, notwithstanding our investment in current resources, including employees and technology, for future growth. These returns were fueled by our strong net interest margin of 6.16% as well as stable fee-based income.

● Total loan growth on a linked quarter basis was $36.4 million, or 12% annualized, totaling $1.30 billion and was driven by a $38.8 million or a 20% annualized increase in higher yielding commercial loans nationally, despite elevated payoffs of $39.9 million during the quarter. Our higher yielding commercial litigation related loans grew $59.1 million, or 35% annualized, on a linked quarter basis. These commercial loans have and will continue to create additional opportunities for future core deposit growth (noninterest bearing operating or DDA and escrow or IOLTA accounts nationally) through our full service commercial relationship banking programs and our branchless commercial cash management platform.

● Interest earning asset growth, excluding cash and cash equivalents, was $68.8 million, or 18% annualized, on a linked quarter basis and totaled $1.58 billion. In early 2024, management elected to temper multifamily and commercial real estate loan growth in response to the economic environment and purchased short duration agency mortgage-backed securities with commensurate risk adjusted yields, enhancing our liquidity while improving the securities to total assets ratio to 16%.

● Solid credit metrics, asset quality, and reserve coverage ratios with an allowance for credit losses to loans ratio of 1.50% and a nonperforming loan to total assets ratio of 0.61%, represented by one multifamily loan totaling $10.9 million. We have no exposure to commercial office space, no construction loans, and only $14.8 million in performing loans to the hospitality industry.

● Continued deposit growth totaling $49.5 million, or 13% annualized, on a linked quarter basis to $1.54 billion, comprised of core low-cost commercial relationship deposits with a cost-of-funds of 0.88% (including demand deposits). Off-balance sheet sweep funds totaled $488 million at quarter end, with approximately 73% available for additional on-balance sheet liquidity, while the associated administrative service payments (“ASP”) fee income totaled $658 thousand for the current quarter. Additional available liquidity totaled approximately $807 million, excluding cash and unsecured borrowing capacity.

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● Stable and consistent fee income totaling $6.1 million or 19% of total revenue, led by our payment processing platform with 84,000 small business clients nationally. Our technology enabled payments platform facilitated the processing of $9.2 billion in credit and debit card payment volume across 152.0 million transactions for our clients in the current quarter.

● Strong efficiency ratio of 48.1% notwithstanding our investments in resources to support future growth and excellence in client service.

● Strong capital foundation with common equity tier 1 (“CET1”) and tangible common equity to tangible asset⁽¹⁾ (“TCE/TA”) ratios of 15.39% and 13.05%, respectively. Including the after-tax unrealized losses on both the available-for-sale and held-to-maturity securities portfolios of $10.3 million and $4.1 million, respectively, the adjusted⁽¹⁾ CET1 and adjusted⁽¹⁾ TCE/TA ratios were 14.36% and 12.82%, respectively. Esquire Bank remains well above the bank regulatory “Well Capitalized” standards.

“We believe these key balance sheet management decisions in 2024 enhanced our Company’s liquidity position, asset composition, and flexibility while producing best-in-class performance and returns as the FOMC continued to moderate its views on short-term rates for the foreseeable future,” stated Tony Coelho, Chairman of the Board.

“Our prudent balance sheet management strategy including, but not limited to, active asset-liability management of our higher yielding variable rate commercial loan portfolio, including interest rate floors, coupled with measured and flexible deposit liability management and continued loan growth will produce earnings results and returns consistent with the current consensus guidance regardless of the anticipated decreases in short-term rates by the FOMC,” stated Andrew C. Sagliocca, Vice Chairman, CEO, and President.

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

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Third Quarter Earnings

Net income for the quarter ended September 30, 2024 was $11.4 million, or $1.34 per diluted share, compared to $9.8 million, or $1.17 per diluted share for the same period in 2023. Returns on average assets and equity for the current quarter were 2.62% and 20.29%, respectively, compared to 2.71% and 21.44% for the same period of 2023.

Net interest income for the third quarter of 2024 increased $4.1 million, or 19.0%, to $25.9 million, due to growth in average interest earning assets (funded with low-cost core deposits) totaling $278.1 million, or 20.0%, to $1.67 billion. Our net interest margin remained strong at 6.16%, decreasing only 3 basis points when compared to the same period in 2023. Our net interest margin was positively impacted by growth in higher yielding variable rate commercial loans and low-cost escrow or IOLTA deposits. Average loan yields increased 8 basis points to 7.87% while average loans increased $180.4 million, or 16.5%, to $1.27 billion, primarily due to growth in our national commercial lending platform and, to a lesser extent, growth in our regional multifamily loan portfolio primarily during the latter part of 2023. Loan interest income increased $3.7 million, or 17.3%, to $25.1 million with the increase in average loan balances (primarily commercial) comprising $3.5 million of the increase and $191 thousand representing increases in average rate. Our loan-to-deposit ratio was 84.4% as our low-cost deposit base increased $253.8 million, or 19.8%, primarily due to growth in our longer duration escrow or IOLTA deposit banking relationships. Our deposit cost-of-funds, excluding demand deposits, increased 21 basis points in the current quarter when compared to 2023 due to increases in short-term interest rates as well as management proactively increasing rates on IOLTA accounts in the various states where we operate. Deposit expense increased $1.1 million to $3.3 million for the quarter with increases in average rate (primarily IOLTA) comprising $709 thousand and $389 thousand (primarily IOLTA) attributable to average balances. Average securities in the quarter increased $71.9 million to $279.8 million and yields increased 104 basis points to 3.40% due to our previously noted balance sheet and ALCO strategy. The combined increase in average loans and securities in the quarter totaled $252.3 million, or approximately 19.4%, to $1.55 billion.

The provision for credit losses was $1.0 million for the third quarter of 2024, a $200 thousand decrease from the third quarter 2023 provision. As of September 30, 2024, our allowance to loans ratio was 1.50% as compared to 1.38% as of September 30, 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 short-term interest rate environment as well as the current uncertain economic environment including, but not limited to, its potential impact on the New York metro multifamily and commercial real estate market.

Noninterest income totaled $6.1 million for the third quarter of 2024 as compared to $6.5 million in the same period for 2023. Payment processing income was $5.2 million for the third quarter of 2024, a $452 thousand decrease from the same period in 2023, primarily due to anticipated ISO and merchant attrition and changes in the volumes of our overall merchant risk profile. Payment processing volumes for the credit and debit card processing platform increased $839 million, or 10.0%, to $9.2 billion and transactions decreased 5.4 million, or 3.4%, to 152.0 million, for the current quarter, as compared to the same period in 2023. We continue to focus on the expansion of sales channels through ISOs, prudently managing risk while focusing on new merchant originations, increasing overall volumes as well as risk profiles, and expanding our technology and other resources in the payments vertical. The Company utilizes proprietary and industry leading/customized technology to ensure card brand and regulatory compliance, supports multiple processing platforms, manages daily risk across 84,000 small business merchants in all 50 states, and performs commercial treasury clearing services. ASP fee income increased $39 thousand to $658 thousand for the third 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 decreased $67 thousand to $235 thousand when compared to the prior year quarter primarily due to decreases in loan and other banking fees.

Noninterest expense increased $1.6 million, or 11.6%, to $15.4 million for the third quarter of 2024, as compared to the same period in 2023. This increase was primarily due to increases in employee compensation and benefits, advertising and marketing, data processing, and occupancy and equipment, partially offset by decreases in professional services costs. Employee compensation and benefits costs increased $1.1 million, or 12.9%, 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. Advertising and marketing costs increased $482 thousand as we continued to grow our digital marketing platform, expand our thought leadership in our national verticals, and support our regional BDOs hired in 2023. Data processing costs increased $315 thousand due to increased processing volume, primarily driven by our core banking platform, and additional costs related to our technology implementations. Occupancy and equipment costs increased $141 thousand due to amortization of our investments in internally developed software to support our digital platform and additional office space to support our growth. Professional services costs decreased $370 thousand due to investments in compliance and risk management in the payment processing division in 2023. Our investments in current resources, including employees, technology, and digital marketing, continue to support our long-term growth goals.

The Company’s efficiency ratio was 48.1% for the three months ended September 30, 2024, as compared to 48.7% in 2023. Our strong efficiency ratio is a result of our continued revenue and deposit growth driven by our core national platforms that have (and will continue to) benefit from our investments in technology, digital marketing, employees, and other branchless infrastructure that support our industry leading returns.

The effective tax rate was 27.0% for the third quarter of 2024, as compared to 26.0% for the third quarter of 2023, resulting from certain discrete tax benefits related to stock-based compensation.

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Year to Date Earnings

Net income for the nine months ended September 30, 2024 was $31.9 million, or $3.78 per diluted share, compared to $31.1 million, or $3.74 per diluted share for the same period in 2023. Returns on average assets and equity for the nine months ended September 30, 2024 were 2.60% and 20.20%, respectively, compared to 3.00% and 24.09% 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 in the first quarter of 2023, adjusted⁽¹⁾ net income, diluted earnings per share, return on average assets, and return on average common equity for the nine months ended September 30, 2023 was $28.2 million, $3.39, 2.71% and 21.82%, respectively.

Net interest income for the nine months ended September 30, 2024 increased $11.9 million, or 19.5%, to $73.0 million, due to growth in average interest earning assets totaling $246.4 million, or 18.3%, to $1.59 billion as well as a 6 basis point increase in our net interest margin to 6.14% when compared to the same period in 2023. Our net interest margin was positively impacted by growth in higher yielding variable rate commercial loans and low-cost escrow or IOLTA deposits. The average yield on loans increased 15 basis points to 7.83%, primarily driven by growth in higher yielding variable rate commercial loans. Average loans for the nine months ended September 30, 2024 increased $227.6 million, or 22.5%, to $1.24 billion, primarily due to growth in our national commercial lending platform and, to a lesser extent, growth in our regional multifamily loan portfolio primarily during the latter part of 2023. Loan interest income increased $14.6 million, or 25.0%, to $72.7 million with the increases in average loan balances (primarily commercial) comprising $13.7 million of the increase and $887 thousand (primarily multifamily) representing increases in average rate. Our deposit cost-of-funds, excluding demand deposits, increased 40 basis points for the current year when compared to the same period in 2023 due to increases in short-term interest rates as well as management proactively increasing rates on IOLTA accounts in the various states where we operate. Deposit expense increased $4.3 million to $9.5 million for the nine months ended September 30, 2024 with increases in average rate comprising $2.9 million and $1.4 million attributable to average balances. Average securities for the nine months ended September 30, 2024 increased $44.9 million to $253.2 million and yields increased 87 basis points to 3.17% due to our previously noted balance sheet and ALCO strategy. In 2024, the combined increase in average loans and securities totaled $272.5 million, or approximately 22.3%, to $1.49 billion as compared to 2023.

The provision for credit losses was $3.0 million for the nine months ended September 30, 2024, a $25 thousand decrease from the same period in 2023. As of September 30, 2024, our allowance to loans ratio was 1.50% as compared to 1.38% as of September 30, 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 short-term interest rate environment as well as the current uncertain economic environment including, but not limited to, its potential impact on the New York metro multifamily and commercial real estate market.

Noninterest income totaled $18.7 million for the nine months ended September 30, 2024 as compared to $23.5 million in the same period for 2023. Excluding the $4.0 million gain on our Litify investment in the first quarter 2023, adjusted⁽¹⁾ noninterest income was $19.5 million. In 2024, payment processing income was $15.8 million, a $1.1 million decrease when compared to 2023, primarily due to anticipated ISO attrition and changes in our overall merchant risk profile. Payment processing volumes and transactions for the credit and debit card processing platform increased $2.6 billion, or 10.6%, to $27.1 billion and 1.0 million, or 0.2%, to 458.1 million transactions, respectively, for the nine months ended September 30, 2024, 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. In 2024, ASP fee income increased $137 thousand to $2.0 million when compared to 2023. Other noninterest income increased $228 thousand to $915 thousand when comparing 2023 to 2024, primarily due to loan and other banking related fees.

Noninterest expense increased $5.9 million, or 15.2%, to $45.2 million for the nine months ended September 30, 2024, as compared to the same period in 2023. This increase was primarily due to increases in employee compensation and benefits, advertising and marketing, data processing, and occupancy and equipment, partially offset by decreases in professional services costs. Employee compensation and benefits costs increased $4.5 million, or 18.9%, due to increases in employees to support growth and client service as well as the impact of year end salary, bonus and stock-based compensation increases. In 2024, we experienced the full year impact of our 2023 key hires including, but not limited to, our regional senior BDOs, sales support, lending underwriting/lending support, and risk management staffing initiatives. Advertising and marketing costs increased $1.5 million as we continued to grow our digital marketing platform, expand our thought leadership in our national verticals, and support our regional BDOs. Data processing costs increased $1.2 million due to increased processing volume, primarily driven by our core banking platform, and additional costs related to our technology implementations. Occupancy and equipment costs increased $560 thousand due to amortization of our investments in internally developed software to support our digital platform and additional office space to support growth. Professional services costs decreased $1.7 million due to our 2023 hiring initiatives noted above and related costs associated with our executive search firm. Our investment in current resources, including employees, technology, and digital marketing, continue to support our long-term growth goals.

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

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The Company’s efficiency ratio was 49.2% for the nine months ended September 30, 2024, as compared to 46.4% for the same period in 2023. The adjusted⁽¹⁾ efficiency ratio was 48.7% for the nine months ended September 30, 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 26.8% for the nine months ended September 30, 2024, compared to 26.5% for the same period in 2023.

Asset Quality

At September 30, 2024, we had one nonperforming loan, which is a multifamily loan totaling $10.9 million, and no exposure to commercial office space or construction loans, and $14.8 million in performing loans to the hospitality industry. The allowance for credit losses was $19.5 million, or 1.50% of total loans, as compared to $15.3 million, or 1.38% of total loans at September 30, 2023. The ratio of nonperforming loans to total loans and total assets was 0.84% and 0.61%, respectively. The allowance for credit losses to nonperforming loans was 178%. The increase in the allowance as a percentage of loans was general reserve driven considering loan growth and qualitative factors associated with the current short-term interest rate environment as well as the current uncertain economic environment including, but not limited to, its potential impact on the New York metro multifamily and commercial real estate market.

Due to increases in short-term interest rates associated with the 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 September 30, 2024:

● The multifamily portfolio, excluding one nonperforming loan, totaling $339.9 million, has a current weighted average DSCR and an original LTV (defined as unpaid principal balance as of September 30, 2024 divided by appraised value at origination) of approximately 1.67 and 54%, respectively, and the CRE portfolio, totaling $87.5 million, has a current weighted average DSCR and an original LTV of approximately 1.51 and 59%, respectively.

● Multifamily loans maturing in less than one year totaled $59.8 million and had a current weighted average DSCR and an original LTV of approximately 1.37 and 57%, respectively. CRE loans maturing in less than one year totaled $1.8 million and had a current weighted average DSCR and an original LTV of approximately 3.54 and 48%, 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 66%, respectively. CRE loans maturing in one to two years totaled $5.6 million and had a current weighted average DSCR and an original LTV of approximately 1.46 and 59%, respectively.

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

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Balance Sheet

At September 30, 2024, total assets were $1.78 billion, reflecting a $300.1 million, or 20.2% increase from September 30, 2023. This increase was primarily attributable to growth in loans totaling $184.0 million, or 16.5%, to $1.30 billion. Our higher yielding variable rate commercial loans increased $163.2 million, or 24.6%, during this same period. Our commercial relationship banking sales pipeline remained 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, continues to drive growth across our national commercial platform. Our available-for-sale securities portfolio increased $97.1 million to $211.5 million as compared to September 30, 2023, as management deployed excess liquidity into securities as part of our previously mentioned balance sheet management and ALCO strategy. Our held-to-maturity securities portfolio totaled $70.8 million, a decrease of $8.0 million, or 10.1%, due to portfolio amortization. In the third quarter of 2023, management elected to close out its reverse repurchase agreements and reinvest these funds into higher yielding commercial loans.

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

	September 30,				December 31,				September 30,
	2024				2023				2023
	(Dollars in thousands)
Real estate:
Multifamily	$	350,857	27.0	%	$	348,241	28.8	%	$	327,653	29.4	%
Commercial real estate		87,544	6.8			89,498	7.4			90,052	8.1
1 – 4 family		14,749	1.1			17,937	1.5			20,974	1.9
Total real estate		453,150	34.9			455,676	37.7			438,679	39.4
Commercial:
Litigation related		727,749	56.1			612,457	50.7			570,831	51.2
Other		97,690	7.5			125,457	10.4			91,441	8.2
Total commercial		825,439	63.6			737,914	61.1			662,272	59.4
Consumer		18,874	1.5			14,491	1.2			13,390	1.2
Total loans held for investment	$	1,297,463	100.0	%	$	1,208,081	100.0	%	$	1,114,341	100.0	%
Deferred loan fees and unearned premiums, net		(20)				(668)				(903)
Loans, held for investment	$	1,297,443			$	1,207,413			$	1,113,438

Total deposits were $1.54 billion as of September 30, 2024, a $253.8 million, or 19.8%, increase from September 30, 2023. This was primarily due to a $180.5 million, or 22.5%, increase in Savings, NOW and Money Market deposits, driven by our IOLTA and other escrow deposits as well as a $67.4 million, or 14.3%, increase in noninterest bearing 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 settlement deposits represent $829.0 million, or 54.0%, of total deposits. As of September 30, 2024, uninsured deposits were $458.9 million, or 30%, of our total deposits of $1.54 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 September 30, 2024, off-balance sheet sweep funds totaled approximately $488.0 million, of which approximately $356.5 million, or 73.1%, was available to be swept on 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 September 30, 2024, we had the ability to borrow, on a secured basis, up to $395.8 million from the FHLB of New York and $54.9 million from the FRB of New York discount window. No borrowing amounts were outstanding during the third 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 $47.0 million to $232.6 million as of September 30, 2024, when compared to September 30, 2023, primarily driven by increases in retained earnings (net income) and decreases in other comprehensive losses as unrealized losses on our securities available-for-sale declined, primarily due to current short-term market interest rates.

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,” “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)

	September 30,			December 31,			September 30,
	2024			2023			2023
ASSETS
Cash and cash equivalents	$	147,663		$	165,209		$	120,646
Securities available-for-sale, at fair value		211,460			122,107			114,373
Securities held-to-maturity, at cost		70,794			77,001			78,779
Securities, restricted at cost		3,034			2,928			2,928
Loans, held for investment		1,297,443			1,207,413			1,113,438
Less: allowance for credit losses		(19,451)			(16,631)			(15,328)
Loans, net of allowance		1,277,992			1,190,782			1,098,110
Premises and equipment, net		2,610			2,602			2,503
Other assets		68,921			56,247			65,073
Total Assets	$	1,782,474		$	1,616,876		$	1,482,412
LIABILITIES AND STOCKHOLDERS' EQUITY
Demand deposits	$	539,434		$	473,274		$	472,073
Savings, NOW and money market deposits		982,816			926,264			802,332
Certificates of deposit		14,145			7,761			8,188
Total deposits		1,536,395			1,407,299			1,282,593
Other liabilities		13,511			11,022			14,209
Total liabilities		1,549,906			1,418,321			1,296,802
Total stockholders' equity		232,568			198,555			185,610
Total Liabilities and Stockholders' Equity	$	1,782,474		$	1,616,876		$	1,482,412
Selected Financial Data
Common shares outstanding		8,320,317			8,287,848			8,203,259
Book value per share	$	27.95		$	23.96		$	22.63
Equity to assets		13.05	%		12.28	%		12.52	%
Capital Ratios (1)
Tier 1 leverage ratio		12.60	%		12.07	%		11.98	%
Common equity tier 1 capital ratio		15.39			14.13			14.34
Tier 1 capital ratio		15.39			14.13			14.34
Total capital ratio		16.64			15.38			15.59
Asset Quality
Nonperforming loans	$	10,940		$	10,940		$	—
Allowance for credit losses to total loans		1.50	%		1.38	%		1.38	%
Nonperforming loans to total loans		0.84			0.91			0.00
Nonperforming assets to total assets		0.61			0.68			0.00
Allowance to nonperforming loans		178			152			NM

(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.

NM – Not meaningful

8

ESQUIRE FINANCIAL HOLDINGS, INC.

Consolidated Income Statement (unaudited)

(dollars in thousands except per share data)

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
	2024			2024			2023			2024			2023
Interest income	$	29,131		$	27,385		$	23,901		$	82,589		$	66,321
Interest expense		3,273			3,063			2,176			9,546			5,218
Net interest income		25,858			24,322			21,725			73,043			61,103
Provision for credit losses		1,000			1,000			1,200			3,000			3,025
Net interest income after provision for credit losses		24,858			23,322			20,525			70,043			58,078
Noninterest income:
Payment processing fees		5,169			5,322			5,621			15,787			16,898
(Loss) gain on equity investments		—			—			(14)			—			4,013
Other noninterest income		893			953			921			2,939			2,574
Total noninterest income		6,062			6,275			6,528			18,726			23,485
Noninterest expense:
Employee compensation and benefits		9,525			9,525			8,433			28,211			23,720
Other expenses		5,833			5,707			5,326			16,947			15,496
Total noninterest expense		15,358			15,232			13,759			45,158			39,216
Income before income taxes		15,562			14,365			13,294			43,611			42,347
Income taxes		4,202			3,878			3,457			11,706			11,218
Net income	$	11,360		$	10,487		$	9,837		$	31,905		$	31,129
Earnings Per Share
Basic	$	1.45		$	1.34		$	1.27		$	4.09		$	4.04
Diluted		1.34			1.25			1.17			3.78			3.74
Basic - adjusted (1)		1.45			1.34			1.28			4.09			3.66
Diluted - adjusted (1)		1.34			1.25			1.17			3.78			3.39
Selected Financial Data
Return on average assets		2.62	%		2.58	%		2.71	%		2.60	%		3.00	%
Return on average equity		20.29			20.16			21.44			20.20			24.09
Adjusted return on average assets (1)		2.62			2.58			2.71			2.60			2.71
Adjusted return on average equity (1)		20.29			20.16			21.46			20.20			21.82
Net interest margin		6.16			6.19			6.19			6.14			6.08
Efficiency ratio (1)		48.1			49.8			48.7			49.2			46.4
Adjusted efficiency ratio (1)		48.1			49.8			48.7			49.2			48.7
Cash dividends paid per common share	$	0.150		$	0.150		$	0.125		$	0.450		$	0.350
Weighted average basic shares		7,815,197			7,798,441			7,717,971			7,800,230			7,711,722
Weighted average diluted shares		8,503,966			8,402,750			8,379,112			8,439,993			8,330,109

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

9

ESQUIRE FINANCIAL HOLDINGS, INC.

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

(dollars in thousands)

	Three Months Ended
	September 30,						June 30,						September 30,
	2024						2024						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	$	1,270,491	$	25,122	7.87	%	$	1,240,599	$	24,216	7.85	%	$	1,090,112	$	21,408	7.79	%
Securities, includes restricted stock		279,768		2,389	3.40	%		253,328		2,023	3.21	%		207,873		1,238	2.36	%
Securities purchased under agreements to resell		—		—	—			—		—	—			9,932		158	6.31	%
Interest earning cash and other		120,316		1,620	5.36	%		87,025		1,146	5.30	%		84,581		1,097	5.15	%
Total interest earning assets		1,670,575		29,131	6.94	%		1,580,952		27,385	6.97	%		1,392,498		23,901	6.81	%
NONINTEREST EARNING ASSETS		52,008						50,688						49,762
TOTAL AVERAGE ASSETS	$	1,722,583					$	1,631,640					$	1,442,260
INTEREST BEARING LIABILITIES
Savings, NOW, Money Market deposits	$	940,920	$	3,129	1.32	%	$	899,419	$	2,932	1.31	%	$	722,684	$	1,988	1.09	%
Time deposits		12,251		143	4.64	%		11,702		130	4.47	%		18,565		187	4.00	%
Total interest bearing deposits		953,171		3,272	1.37	%		911,121		3,062	1.35	%		741,249		2,175	1.16	%
Borrowings		44		1	9.04	%		44		1	9.14	%		46		1	8.62	%
Total interest bearing liabilities		953,215		3,273	1.37	%		911,165		3,063	1.35	%		741,295		2,176	1.16	%
NONINTEREST BEARING LIABILITIES
Demand deposits		531,864						499,348						501,841
Other liabilities		14,762						11,894						17,091
Total noninterest bearing liabilities		546,626						511,242						518,932
Stockholders' equity		222,742						209,233						182,033
TOTAL AVG. LIABILITIES AND EQUITY	$	1,722,583					$	1,631,640					$	1,442,260
Net interest income			$	25,858					$	24,322					$	21,725
Net interest spread					5.57	%					5.62	%					5.65	%
Net interest margin					6.16	%					6.19	%					6.19	%
Deposits (including noninterest bearing demand deposits)	$	1,485,035	$	3,272	0.88	%	$	1,410,469	$	3,062	0.87	%	$	1,243,090	$	2,175	0.69	%

10

ESQUIRE FINANCIAL HOLDINGS, INC.

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

(dollars in thousands)

	Nine Months Ended September 30,
	2024						2023
	Average				Average		Average				Average
	Balance		Interest		Yield/Cost		Balance		Interest		Yield/Cost
INTEREST EARNING ASSETS
Loans, held for investment	$	1,239,950	$	72,727	7.83	%	$	1,012,469	$	58,160	7.68	%
Securities, includes restricted stock		253,188		6,017	3.17	%		208,298		3,581	2.30	%
Securities purchased under agreements to resell		—		—	—			36,289		1,526	5.62	%
Interest earning cash and other		96,448		3,845	5.33	%		86,247		3,054	4.73	%
Total interest earning assets		1,589,586		82,589	6.94	%		1,343,303		66,321	6.60	%
NONINTEREST EARNING ASSETS		50,439						45,836
TOTAL AVERAGE ASSETS	$	1,640,025					$	1,389,139
INTEREST BEARING LIABILITIES
Savings, NOW, Money Market deposits	$	900,315	$	9,159	1.36	%	$	681,613	$	4,809	0.94	%
Time deposits		11,667		384	4.40	%		14,774		406	3.67	%
Total interest bearing deposits		911,982		9,543	1.40	%		696,387		5,215	1.00	%
Borrowings		44		3	9.11	%		46		3	8.72	%
Total interest bearing liabilities		912,026		9,546	1.40	%		696,433		5,218	1.00	%
NONINTEREST BEARING LIABILITIES
Demand deposits		502,851						502,211
Other liabilities		14,149						17,737
Total noninterest bearing liabilities		517,000						519,948
Stockholders' equity		210,999						172,758
TOTAL AVG. LIABILITIES AND EQUITY	$	1,640,025					$	1,389,139
Net interest income			$	73,043					$	61,103
Net interest spread					5.54	%					5.60	%
Net interest margin					6.14	%					6.08	%
Deposits (including noninterest bearing demand deposits)	$	1,414,833	$	9,543	0.90	%	$	1,198,598	$	5,215	0.58	%

11

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									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
	2024			2024			2023			2024			2023
Net income – GAAP	$	11,360		$	10,487		$	9,837		$	31,905		$	31,129
Less: loss (gain) on equity investments		—			—			14			—			(4,013)
Add: income tax impact		—			—			(4)			—			1,083
Adjusted net income	$	11,360		$	10,487		$	9,847		$	31,905		$	28,199
Return on average assets – GAAP		2.62	%		2.58	%		2.71	%		2.60	%		3.00	%
Adjusted return on average assets		2.62	%		2.58	%		2.71	%		2.60	%		2.71	%
Return on average equity – GAAP		20.29	%		20.16	%		21.44	%		20.20	%		24.09	%
Adjusted return on average equity		20.29	%		20.16	%		21.46	%		20.20	%		21.82	%
Basic earnings per share – GAAP	$	1.45		$	1.34		$	1.27		$	4.09		$	4.04
Adjusted basic earnings per share	$	1.45		$	1.34		$	1.28		$	4.09		$	3.66
Diluted earnings per share – GAAP	$	1.34		$	1.25		$	1.17		$	3.78		$	3.74
Adjusted diluted earnings per share	$	1.34		$	1.25		$	1.17		$	3.78		$	3.39

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

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
	2024			2024			2023			2024			2023
Efficiency ratio – non-GAAP(1)		48.1	%		49.8	%		48.7	%		49.2	%		46.4	%
Noninterest expense – GAAP	$	15,358		$	15,232		$	13,759		$	45,158		$	39,216
Net interest income – GAAP		25,858			24,322			21,725			73,043			61,103
Noninterest income – GAAP		6,062			6,275			6,528			18,726			23,485
Less: loss (gain) on equity investments		—			—			14			—			(4,013)
Adjusted noninterest income – non-GAAP	$	6,062		$	6,275		$	6,542		$	18,726		$	19,472
Adjusted efficiency ratio – non-GAAP(2)		48.1	%		49.8	%		48.7	%		49.2	%		48.7	%

(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.

12

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

	September 30,
	2024
Total assets - GAAP	$	1,782,474
Less: intangible assets		—
Tangible assets ("TA") - non-GAAP		1,782,474
Total stockholders' equity - GAAP	$	232,568
Less: intangible assets		—
Less: preferred stock		—
Tangible common equity ("TCE") - non-GAAP		232,568
Add: unrecognized losses on securities held-to-maturity, net of tax		(4,120)
Adjusted TCE - non-GAAP	$	228,448
Stockholders' equity to assets - GAAP		13.05	%
TCE to TA - non-GAAP		13.05	%
Adjusted TCE to TA - non-GAAP		12.82	%

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

	September 30,
	2024
Common equity tier 1 ("CET1") capital - Bank	$	215,499
Add: unrealized losses on securities available-for-sale , net of tax		(10,319)
Add: unrecognized losses on securities held-to-maturity, net of tax		(4,120)
Adjusted CET1 capital - Bank	$	201,060
Total risk-weighted assets - Bank	$	1,400,367
CET1 capital ratio(1)		15.39	%
Adjusted CET1 capital ratio(1)		14.36	%

(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.

13

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.) 3Q 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,” “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 0.88%  Driving loan and deposit growth with a 5 Year CAGR of approximately 20% since 2019  Decades of expertise in sales, risk, and compliance management  Independent Sales Organization (“ISO”) model with approximately 84,000 merchants nationally  Total fee income represents 19% of total revenue  Strong growth and stable fee income with a 5 Year CAGR of 22% since 2019  ROA and ROTCE of 2.62% and 20.29%, respectively  Industry leading NIM of 6.16%  Diversified revenue stream with strong NIM and stable fee income  Strong efficiency ratio of 48.1% while investing in resources (employees, technology, and digital 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 13.05% (Adjusted(1) 12.82%)  Common Equity Tier 1 of 15.39% (Adjusted(1) 14.36%) 4 at September 30, 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/IOLTA accounts represent 35% and 54% of total deposits at September 30, 2024, respectively  Higher yielding variable rate commercial loans anchored by our national litigation portfolio  Asset sensitive balance sheet with approximately 80% 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 September 30, 2024 How Esquire Succeeds Boldly 6 Key Highlights  Strong 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 KBW 2024 Bank Honor Roll  Named to the Piper Sandler 2023 Bank & Thrift Small Market-All Stars  Raymond James’ Top Performing Community Bank (2018-2023)  Book value per share and equity to assets are $27.95 and 13.05% at September 30, 2024, respectively 7 at September 30, 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 September 30, 2024

 Substantially all of our $825 million in commercial loans are variable rate and tied to prime comprising approximately 64% of our loan portfolio  Approximately 80% 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 4.7% and 9.9%, respectively at June 30, 2024 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 152% 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 DSCR exceeding 1.6x  Average original LTV of approximately 55%  Rent regulated, free market, and mixed (both rent regulated and free market) represent approximately one -third each of the $351 million multifamily loan portfolio  CRE exposure is 188% of Esquire Bank’s regulatory Tier 1 capital plus the allowance for credit losses (“ACL”). CRE exposure is 168% of consolidated EFHI regulatory Tier 1 capital plus the ACL  Pledged Multifamily and Residential loan portfolio provides liquidity totaling $190.9 million through the Federal Home Loan Bank of NY (“FHLB”) program as of September 30, 2024 11

Multifamily & CRE Maturities at September 30, 2024  Multifamily loans totaling $98.8 million mature over the next two years with $19.2 million, or 19%, having an LTV in excess of 70%  Other CRE loans totaling $7.4 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 September 30, 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 $972 million, or 63% of total deposits, creating a highly liquid and unlevered balance sheet How Esquire Succeeds Boldly 14 ($ in millions) at September 30, 2024

*Note: Excludes sweeps totaling $488 million Deposit Composition Details  DDA and NOW (escrow funds) deposits total 89% of total deposits, representing stable funding sources in various interest rate scenarios  Litigation and payment processing deposits represent 72% and 11% of total deposits at September 30, 2024, respectively  Uninsured deposits (excluding $10.6 million of affiliate deposits) totaled $459 million, or 30%, 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 $488 million at September 30, 2024, with $357 million, or 73%, available for additional on-balance sheet liquidity How Esquire Succeeds Boldly 15

 Currently servicing approximately 84,000 merchants across 50 states in our payment processing (merchant acquiring) vertical  Fee income, primarily payment processing fees, represents 19% of total revenue for the quarter ended September 30, 2024 How Esquire Succeeds Boldly Strong Growth in Stable Noninterest Income at September 30, 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 September 30, 2024

Significant national markets primed for disruption: $443 billion & 100,000+ firms in the litigation vertical and $10.9 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 2.1% 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 Decades of 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 10% from 2019 to 2023 to an estimated total payment volume of $10.9 trillion Esquire’s Bold Opportunities Payment Volume Trends – A Significant Growth Opportunity Sources: Company Financial Records, Note: PayPal figures represent PayPal’s estimated U.S.percent share of “Total Payment Volume” (TPV).PayPal volume includes volume from a bank account, a PayPal account balance, a PayPalCredit account, a credit or debit card or other stored value products such as coupons and gift cards. Assuch, some of this volume may be included in other networks aswell. PayPal’s classification in the payments industry ecosystem is varied/debated as it performs functions attributed to a payment network, an issuer, acquirer, etc., and its financial reporting does not directly align with other payment network reporting structures and methods. Discover volume includes Discover Network and PulseNetwork transactions. 25 at December 31, 2023 ($ 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): September 30, 2024 Total assets - GAAP $ 1,782,474 Less: intangible assets — Tangible assets ("TA") - non-GAAP 1,782,474 Total stockholders' equity - GAAP $ 232,568 Less: intangible assets — Less: preferred stock — Tangible common equity ("TCE") - non-GAAP 232,568 Add: unrecognized losses on securities held-to-maturity, net of tax (4,120) Adjusted TCE - non-GAAP $ 228,448 Stockholders' equity to assets - GAAP 13.05 % TCE to TA - non-GAAP 13.05 % Adjusted TCE to TA - non-GAAP 12.82 %

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. September 30, 2024 Common equity tier 1 ("CET1") capital - Bank $ 215,499 Add: unrealized losses on securities available-for-sale , net of tax (10,319) Add: unrecognized losses on securities held-to-maturity, net of tax (4,120) Adjusted CET1 capital - Bank $ 201,060 Total risk-weighted assets - Bank $ 1,400,367 CET1 capital ratio(1) 15.39 % Adjusted CET1 capital ratio(1) 14.36 %

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Document and Entity Information	Oct. 24, 2024
Document and Entity Information [Abstract]
Document Type	8-K
Document Period End Date	Oct. 24, 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