UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2024


☐	TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File No. 001-38131

Esquire Financial Holdings, Inc.

(Exact Name of Registrant as Specified in Its Charter)


Maryland		27-5107901
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. 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, Including Area Code)

N/A

(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

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 (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such requirements for the past 90 days.

YES ⌧ NO ◻

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

YES ⌧ NO ◻

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer ◻		Accelerated filer ◻
Non-accelerated filer ☒		Smaller reporting company ☒
		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. ◻

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

YES ☐ NO ⌧

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: As of November 1, 2024, there were 8,321,308 outstanding shares of the issuer’s common stock.

		Page
PART I. FINANCIAL INFORMATION		3

Item 1.	Financial Statements (unaudited)	3

	Consolidated Statements of Financial Condition	3

	Consolidated Statements of Income	4

	Consolidated Statements of Comprehensive Income	5

	Consolidated Statements of Changes in Stockholders’ Equity	6

	Consolidated Statements of Cash Flows	7

	Notes to Interim Consolidated Financial Statements	8

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	44

Item 4.	Controls and Procedures	44

PART II. OTHER INFORMATION		45

Item 1.	Legal Proceedings	45

Item 1A.	Risk Factors	45

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	45

Item 3.	Defaults Upon Senior Securities	45

Item 4.	Mine Safety Disclosures	45

Item 5.	Other Information	46

Item 6.	Exhibits	46

	SIGNATURES	47


	September 30,		December 31,
	2024		2023
Assets:
Cash and cash equivalents	$	147,663	$	165,209
Securities available-for-sale, at fair value		211,460		122,107
Securities held-to-maturity, at cost (fair value of $65,110 and $69,116, at September 30, 2024 and December 31, 2023, respectively)		70,794		77,001
Securities, restricted, at cost		3,034		2,928

Loans held for investment		1,297,443		1,207,413
Less: allowance for credit losses		(19,451)		(16,631)
Loans, net of allowance		1,277,992		1,190,782
Premises and equipment, net		2,610		2,602
Accrued interest receivable		9,712		9,130
Other assets		59,209		47,117
Total assets	$	1,782,474	$	1,616,876

Liabilities:
Deposits:
Demand	$	539,434	$	473,274
Savings, NOW and money market		982,816		926,264
Time		14,145		7,761
Total deposits		1,536,395		1,407,299

Accrued expenses and other liabilities		13,511		11,022
Total liabilities		1,549,906		1,418,321

Commitments and contingencies		—		—

Stockholders’ equity:
Preferred stock, par value $0.01; authorized 2,000,000 shares; none issued		—		—
Common stock, par value $0.01; authorized 15,000,000 shares; 8,399,713 and 8,361,185 shares issued, respectively; and 8,320,317 and 8,287,848 shares outstanding, respectively		84		84
Additional paid-in capital		102,936		99,713
Retained earnings		142,434		114,261
Accumulated other comprehensive loss		(10,319)		(13,235)
Treasury stock at cost (79,396 and 73,337 shares, respectively)		(2,567)		(2,268)
Total stockholders’ equity		232,568		198,555
Total liabilities and stockholders’ equity	$	1,782,474	$	1,616,876


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Interest income:
Loans held for investment	$	25,122	$	21,408	$	72,727	$	58,160
Securities, includes restricted stock		2,389		1,238		6,017		3,581
Securities purchased under agreements to resell		—		158		—		1,526
Interest earning cash and other		1,620		1,097		3,845		3,054
Total interest income		29,131		23,901		82,589		66,321

Interest expense:
Savings, NOW and money market deposits		3,129		1,988		9,159		4,809
Time deposits		143		187		384		406
Borrowings		1		1		3		3
Total interest expense		3,273		2,176		9,546		5,218

Net interest income		25,858		21,725		73,043		61,103
Provision for credit losses		1,000		1,200		3,000		3,025
Net interest income after provision for credit losses		24,858		20,525		70,043		58,078

Noninterest income:
Payment processing fees		5,169		5,621		15,787		16,898
Administrative service income		658		619		2,024		1,887
Net (loss) gain on equity investments		—		(14)		—		4,013
Customer related fees, service charges and other		235		302		915		687
Total noninterest income		6,062		6,528		18,726		23,485

Noninterest expense:
Employee compensation and benefits		9,525		8,433		28,211		23,720
Occupancy and equipment		977		836		3,060		2,500
Professional and consulting services		955		1,325		2,763		4,483
FDIC and regulatory assessments		236		261		691		587
Advertising and marketing		949		467		2,702		1,216
Travel and business relations		264		254		722		648
Data processing		1,690		1,375		4,923		3,757
Other operating expenses		762		808		2,086		2,305
Total noninterest expense		15,358		13,759		45,158		39,216

Net income before income taxes		15,562		13,294		43,611		42,347
Income tax expense		4,202		3,457		11,706		11,218

Net income	$	11,360	$	9,837	$	31,905	$	31,129

Earnings per share
Basic	$	1.45	$	1.27	$	4.09	$	4.04
Diluted	$	1.34	$	1.17	$	3.78	$	3.74


												Accumulated
								Additional				other				Total
	Preferred	Common		Preferred		Common		paid-in		Retained		comprehensive		Treasury		stockholders'
	shares	shares		stock		stock		capital		earnings		loss		stock		equity
Balance at July 1, 2024	—	8,292,948	$	—	$	84	$	101,815	$	132,320	$	(14,241)	$	(2,567)	$	217,411
Net income	—	—		—		—		—		11,360		—		—		11,360
Other comprehensive income	—	—		—		—		—		—		3,922		—		3,922
Exercise of stock options, net of repurchases (6,063 shares)	—	30,569		—		—		188		—		—		—		188
Restricted stock award forfeitures	—	(3,200)		—		—		—		—		—		—		—
Stock compensation expense	—	—		—		—		933		—		—		—		933
Cash dividends declared to common stockholders ($0.15 per share)	—	—		—		—		—		(1,246)		—		—		(1,246)
Balance at September 30, 2024	—	8,320,317	$	—	$	84	$	102,936	$	142,434	$	(10,319)	$	(2,567)	$	232,568

												Accumulated
								Additional				other				Total
	Preferred	Common		Preferred		Common		paid-in		Retained		comprehensive		Treasury		stockholders'
	shares	shares		stock		stock		capital		earnings		loss		stock		equity
Balance at July 1, 2023	—	8,192,379	$	—	$	82	$	98,018	$	96,593	$	(14,442)	$	(1,345)	$	178,906
Net income	—	—		—		—		—		9,837		—		—		9,837
Other comprehensive loss	—	—		—		—		—		—		(2,959)		—		(2,959)
Exercise of stock options, net of repurchases (3,728 shares)	—	10,880		—		1		49		—		—		—		50
Stock compensation expense	—	—		—		—		801		—		—		—		801
Cash dividends declared to common stockholders ($0.125 per share)	—	—		—		—		—		(1,025)		—		—		(1,025)
Balance at September 30, 2023	—	8,203,259	$	—	$	83	$	98,868	$	105,405	$	(17,401)	$	(1,345)	$	185,610

												Accumulated
								Additional				other				Total
	Preferred	Common		Preferred		Common		paid-in		Retained		comprehensive		Treasury		stockholders'
	shares	shares		stock		stock		capital		earnings		loss		stock		equity
Balance at January 1, 2024	—	8,287,848	$	—	$	84	$	99,713	$	114,261	$	(13,235)	$	(2,268)	$	198,555
Net income	—	—		—		—		—		31,905		—		—		31,905
Other comprehensive income	—	—		—		—		—		—		2,916		—		2,916
Exercise of stock options, net of repurchases (6,320 shares)	—	41,728		—		—		361		—		—		—		361
Restricted stock award forfeitures	—	(3,200)		—		—		—		—		—		—		—
Stock compensation expense	—	—		—		—		2,862		—		—		—		2,862
Cash dividends declared to common stockholders ($0.45 per share)	—	—		—		—		—		(3,732)		—		—		(3,732)
Shares received related to tax withholding	—	(6,059)		—		—		—		—		—		(299)		(299)
Balance at September 30, 2024	—	8,320,317	$	—	$	84	$	102,936	$	142,434	$	(10,319)	$	(2,567)	$	232,568

												Accumulated
								Additional				other				Total
	Preferred	Common		Preferred		Common		paid-in		Retained		comprehensive		Treasury		stockholders'
	shares	shares		stock		stock		capital		earnings		loss		stock		equity
Balance at January 1, 2023	—	8,195,333	$	—	$	82	$	96,387	$	77,712	$	(15,117)	$	(906)	$	158,158
Cumulative change in accounting principle	—	—		—		—		—		(568)		—		—		(568)
Balance at January 1, 2023 (as adjusted for change in accounting principle)	—	8,195,333		—		82		96,387		77,144		(15,117)		(906)		157,590
Net income	—	—		—		—		—		31,129		—		—		31,129
Other comprehensive loss	—	—		—		—		—		—		(2,284)		—		(2,284)
Exercise of stock options, net of repurchases (7,146 shares)	—	19,632		—		1		102		—		—		—		103
Stock compensation expense	—	—		—		—		2,379		—		—		—		2,379
Cash dividends declared to common stockholders ($0.35 per share)	—	—		—		—		—		(2,868)		—		—		(2,868)
Shares received related to tax withholding	—	(3,706)		—		—		—		—		—		(153)		(153)
Purchase of common stock	—	(8,000)		—		—		—		—		—		(286)		(286)
Balance at September 30, 2023	—	8,203,259	$	—	$	83	$	98,868	$	105,405	$	(17,401)	$	(1,345)	$	185,610


	Nine Months Ended
	September 30,
	2024		2023
Cash flows from operating activities:
Net income	$	31,905	$	31,129
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses		3,000		3,025
Depreciation and amortization of premises and equipment		622		529
Stock compensation expense		2,862		2,379
Net gain on equity investments		—		(4,013)
Net amortization (accretion):
Securities		272		331
Loans		(437)		(1,054)
Right of use asset		422		428
Software		1,422		944
Changes in other assets and liabilities:
Accrued interest receivable		(582)		(2,040)
Other assets		(11,244)		(9,897)
Operating lease liability		(535)		(452)
Accrued expenses and other liabilities		2,820		4,569
Net cash provided by operating activities		30,527		25,878
Cash flows from investing activities:
Net change in loans		(89,773)		(165,009)
Net change in securities purchased under agreements to resell		—		49,567
Purchases of securities available-for-sale		(102,701)		(17,879)
Purchases of securities held-to-maturity		—		(5,978)
Principal repayments on securities available-for-sale		17,175		9,370
Principal repayments on securities held-to-maturity		6,130		5,500
Purchases of securities, restricted		(106)		(118)
Proceeds from equity investment		1,467		5,973
Purchase of equity investment		(3,524)		—
Purchases of premises and equipment		(630)		(328)
Development of capitalized software		(1,741)		(1,884)
Net cash used in investing activities		(173,703)		(120,786)
Cash flows from financing activities:
Net increase in deposits		129,096		54,357
Decrease in borrowings		(1)		(1)
Exercise of stock options, net of repurchases		361		103
Tax withholding payments for vested equity awards		(299)		(153)
Cash dividends paid to common stockholders		(3,527)		(2,588)
Purchase of common stock		—		(286)
Net cash provided by financing activities		125,630		51,432
Decrease in cash and cash equivalents		(17,546)		(43,476)
Cash and cash equivalents at beginning of the period		165,209		164,122
Cash and cash equivalents at end of the period	$	147,663	$	120,646

Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest	$	9,554	$	5,181
Taxes		13,352		13,865
Noncash transactions:
Dividends declared but not paid		205		280
Exchange of noncash instruments		(300)		1,750
Cumulative change in accounting principle		—		(568)


	September 30, 2024
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value

	(In thousands)
Securities available-for-sale:
Mortgage-backed securities – agency	$	102,359	$	20	$	(13,416)	$	88,963
Collateralized mortgage obligations ("CMOs") – agency		123,334		931		(1,768)		122,497
Total available-for-sale	$	225,693	$	951	$	(15,184)	$	211,460

			Gross		Gross
	Amortized		Unrecognized		Unrecognized		Fair
	Cost		Gains		Losses		Value

	(In thousands)
Securities held-to-maturity:
CMOs – agency	$	70,794	$	1	$	(5,685)	$	65,110
Total held-to-maturity	$	70,794	$	1	$	(5,685)	$	65,110

	December 31, 2023
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value

	(In thousands)
Securities available-for-sale:
Mortgage-backed securities – agency	$	107,396	$	6	$	(16,392)	$	91,010
CMOs – agency		32,966		264		(2,133)		31,097
Total available-for-sale	$	140,362	$	270	$	(18,525)	$	122,107

			Gross		Gross
	Amortized		Unrecognized		Unrecognized		Fair
	Cost		Gains		Losses		Value

	(In thousands)
Securities held-to-maturity:
CMOs – agency	$	77,001	$	9	$	(7,894)	$	69,116
Total held-to-maturity	$	77,001	$	9	$	(7,894)	$	69,116


	September 30, 2024
	Less Than 12 Months				12 Months or Longer				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses

	(In thousands)
Securities available-for-sale:
Mortgage-backed securities – agency	$	4,873	$	(28)	$	82,456	$	(13,388)	$	87,329	$	(13,416)
CMOs – agency		35,846		(113)		11,566		(1,655)		47,412		(1,768)
Total available-for-sale	$	40,719	$	(141)	$	94,022	$	(15,043)	$	134,741	$	(15,184)

	Less Than 12 Months				12 Months or Longer				Total
	Fair Value		Gross Unrecognized Losses		Fair Value		Gross Unrecognized Losses		Fair Value		Gross Unrecognized Losses

	(In thousands)
Securities held-to-maturity:
CMOs – agency	$	—	$	—	$	60,370	$	(5,685)	$	60,370	$	(5,685)
Total held-to-maturity	$	—	$	—	$	60,370	$	(5,685)	$	60,370	$	(5,685)

	December 31, 2023
	Less Than 12 Months				12 Months or Longer				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses

	(In thousands)
Securities available-for-sale:
Mortgage-backed securities – agency	$	3,143	$	(17)	$	86,082	$	(16,375)	$	89,225	$	(16,392)
CMOs – agency		—		—		13,176		(2,133)		13,176		(2,133)
Total available-for-sale	$	3,143	$	(17)	$	99,258	$	(18,508)	$	102,401	$	(18,525)

	Less Than 12 Months				12 Months or Longer				Total
	Fair Value		Gross Unrecognized Losses		Fair Value		Gross Unrecognized Losses		Fair Value		Gross Unrecognized Losses

	(In thousands)
Securities held-to-maturity:
CMOs – agency	$	—	$	—	$	63,739	$	(7,894)	$	63,739	$	(7,894)
Total held-to-maturity	$	—	$	—	$	63,739	$	(7,894)	$	63,739	$	(7,894)


			Commercial
	Multifamily		Real Estate		1‑4 Family		Commercial		Consumer		Total

	(In thousands)
September 30, 2024
Allowance for credit losses:
Beginning balance	$	3,403	$	744	$	55	$	13,535	$	784	$	18,521
Provision (credit) for credit losses		(4)		(33)		(1)		1,154		(116)		1,000
Recoveries		—		—		—		—		1		1
Loans charged-off		—		—		—		—		(71)		(71)
Total ending allowance balance	$	3,399	$	711	$	54	$	14,689	$	598	$	19,451

September 30, 2023
Allowance for credit losses:
Beginning balance	$	2,423	$	867	$	65	$	10,566	$	258	$	14,179
Provision (credit) for credit losses		652		(23)		(2)		462		111		1,200
Recoveries		—		—		—		—		12		12
Loans charged-off		—		—		—		—		(63)		(63)
Total ending allowance balance	$	3,075	$	844	$	63	$	11,028	$	318	$	15,328


									Total Past
	30-59		60-89		90 Days				Due &
	Days		Days		or More		Nonaccrual		Nonaccrual		Loans Not
	Past Due		Past Due		Past Due		Loans		Loans		Past Due		Total

	(In thousands)
September 30, 2024
Multifamily	$	—	$	—	$	—	$	10,940	$	10,940	$	339,917	$	350,857
Commercial real estate		—		—		—		—		—		87,544		87,544
1 – 4 family		—		—		—		—		—		14,749		14,749
Commercial		—		—		—		—		—		825,439		825,439
Consumer		46		51		88		—		185		18,689		18,874
Total	$	46	$	51	$	88	$	10,940	$	11,125	$	1,286,338	$	1,297,463

									Total Past
	30-59		60-89		90 Days				Due &
	Days		Days		or More		Nonaccrual		Nonaccrual		Loans Not
	Past Due		Past Due		Past Due		Loans		Loans		Past Due		Total

	(In thousands)
December 31, 2023
Multifamily	$	—	$	—	$	—	$	10,940	$	10,940	$	337,301	$	348,241
Commercial real estate		—		—		—		—		—		89,498		89,498
1 – 4 family		—		—		—		—		—		17,937		17,937
Commercial		—		—		—		—		—		737,914		737,914
Consumer		24		41		69		—		134		14,357		14,491
Total	$	24	$	41	$	69	$	10,940	$	11,074	$	1,197,007	$	1,208,081


	December 31, 2023
	2023		2022		2021		2020		2019		2018 and Prior		Revolving		Revolving-Term		Total

	(In thousands)
Multifamily:
Pass	$	105,175	$	29,116	$	109,919	$	23,512	$	22,155	$	47,566	$	—	$	—	$	337,443
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		10,940		—		—		—		—		10,940
Doubtful		—		—		—		—		—		—		—		—		—
Total		105,175		29,116		109,919		34,452		22,155		47,566		—		—		348,383
Current period gross charge-offs		—		—		—		—		—		—		—		—		—

Commercial real estate:
Pass		3,401		58,552		10,560		1,757		5,651		9,515		—		—		89,436
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total		3,401		58,552		10,560		1,757		5,651		9,515		—		—		89,436
Current period gross charge-offs		—		—		—		—		—		—		—		—		—

1-4 family:
Pass		—		1,861		—		—		4,296		11,776		—		—		17,933
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total		—		1,861		—		—		4,296		11,776		—		—		17,933
Current period gross charge-offs		—		—		—		—		—		—		—		—		—

Commercial:
Pass		43,500		59,203		9,212		489		—		465		615,177		5,024		733,070
Special Mention		—		—		—		—		—		—		3,988		—		3,988
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total		43,500		59,203		9,212		489		—		465		619,165		5,024		737,058
Current period gross charge-offs		—		—		—		—		—		5		—		—		5

Consumer:
Pass		5,414		5,397		56		358		1,106		32		2,240		—		14,603
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total		5,414		5,397		56		358		1,106		32		2,240		—		14,603
Current period gross charge-offs		—		324		25		90		—		—		—		—		439

Total:
Pass		157,490		154,129		129,747		26,116		33,208		69,354		617,417		5,024		1,192,485
Special Mention		—		—		—		—		—		—		3,988		—		3,988
Substandard		—		—		—		10,940		—		—		—		—		10,940
Doubtful		—		—		—		—		—		—		—		—		—
Total loans	$	157,490	$	154,129	$	129,747	$	37,056	$	33,208	$	69,354	$	621,405	$	5,024	$	1,207,413
Total current period gross charge-offs	$	—	$	324	$	25	$	90	$	—	$	5	$	—	$	—	$	444


	Nine Months Ended September 30, 2024
				Weighted
		Weighted		Average
		Average		Remaining
		Exercise		Contractual
	Options	Price		Life (Years)
Outstanding at beginning of year	639,519	$	20.76
Granted	—		—
Exercised	(48,048)		15.21
Forfeited	(1,352)		42.99
Expired	—		—
Outstanding at period end	590,119	$	21.17	3.79
Vested or expected to vest	590,119	$	21.17	3.79
Exercisable at period end	492,338	$	16.85	2.86


	Nine Months Ended September 30, 2024
		Weighted Average
		Grant Date
	Shares	Fair Value
Outstanding at beginning of year	514,935	$	32.44
Granted	—		—
Vested	(20,503)		19.25
Forfeited	(3,200)		46.06
Outstanding at period end	491,232	$	32.90


	September 30,
	2024			2023
Weighted-average remaining lease term		2.17	years		3.17	years
Weighted-average discount rate		3.29	%		3.30	%


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023

	(In thousands)
Intrinsic value of options exercised	$	1,658	$	476	$	2,035	$	806
Cash received from option exercises		188		50		361		103
Excess tax benefit from option exercises		161		108		246		181


		Operating Lease
		Liabilities
		(In thousands)
2024	$	198
2025		803
2026		754
2027		—
2028		—
Thereafter		—
Total operating lease payments		1,755
Less: interest		107
Present value of operating lease liabilities	$	1,648


	Fair Value Measurements Using
	Quoted Prices In Active Markets For Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	(Level 1)		(Level 2)		(Level 3)

	(In thousands)
September 30, 2024
Assets
Securities available-for-sale
Mortgage-backed securities – agency	$	—	$	88,963	$	—
CMOs – agency		—		122,497		—
Total available-for-sale	$	—	$	211,460	$	—

December 31, 2023
Assets
Securities available-for-sale
Mortgage-backed securities – agency	$	—	$	91,010	$	—
CMOs – agency		—		31,097		—
Total available-for-sale	$	—	$	122,107	$	—


	Fair Value Measurement at September 30, 2024, Using:
	Carrying
	Value		(Level 1)		(Level 2)		(Level 3)		Total

	(In thousands)
Financial Assets:
Cash and cash equivalents	$	147,663	$	147,663	$	—	$	—	$	147,663
Securities, held-to-maturity		70,794		—		65,110		—		65,110
Securities, restricted, at cost		3,034		N/A		N/A		N/A		N/A
Loans held for investment, net		1,277,992		—		—		1,256,389		1,256,389
Accrued interest receivable		9,712		—		1,081		8,631		9,712

Financial Liabilities:
Time deposits		14,145		—		14,145		—		14,145
Demand and other deposits		1,522,250		1,522,250		—		—		1,522,250
Secured borrowings		43		—		—		43		43
Accrued interest payable		3		—		3		—		3


	Fair Value Measurement at December 31, 2023, Using:
	Carrying
	Value		(Level 1)		(Level 2)		(Level 3)		Total

	(In thousands)
Financial Assets:
Cash and cash equivalents	$	165,209	$	165,209	$	—	$	—	$	165,209
Securities, held-to-maturity		77,001		—		69,116		—		69,116
Securities, restricted, at cost		2,928		N/A		N/A		N/A		N/A
Loans held for investment, net		1,190,782		—		—		1,172,226		1,172,226
Accrued interest receivable		9,130		—		579		8,551		9,130

Financial Liabilities:
Time deposits		7,761		—		7,647		—		7,647
Demand and other deposits		1,399,538		1,399,538		—		—		1,399,538
Secured borrowings		44		—		—		44		44
Accrued interest payable		11		—		11		—		11


	Three Months Ended
	September 30,				Change
	2024		2023		Amount			Percent
	(Dollars in thousands)
Payment processing fees:
Payment processing income	$	4,999	$	5,400		$	(401)		(7.4)	%
ACH income		170		221			(51)		(23.1)
Total payment processing fees		5,169		5,621			(452)		(8.0)
Customer related fees, service charges and other:
Administrative service income		658		619			39		6.3
Net loss on equity investments		—		(14)			14		(100.0)
Other		235		302			(67)		(22.2)
Total customer related fees, service charges and other		893		907			(14)		(1.5)
Total noninterest income	$	6,062	$	6,528		$	(466)		(7.1)	%


	September 30,
	2024
	Estimated
Changes in	12-Months
Interest Rates	Net Interest
(Basis Points)	Income			Change

	(Dollars in thousands)
300	$	128,851	$	17,697
200		122,843		11,689
100		116,740		5,586
0		111,154		—
-100		106,134		(5,020)
-200		100,384		(10,770)
-300		94,426		(16,728)


			For Capital Adequacy
			Purposes
			Minimum Capital with		Actual
	“Well Capitalized”		Conservation Buffer		At September 30, 2024
Total Risk-based Capital Ratio
Bank	10.00	%	10.50	%	16.64	%

Tier 1 Risk-based Capital Ratio
Bank	8.00	%	8.50	%	15.39	%

Common Equity Tier 1 Capital Ratio
Bank	6.50	%	7.00	%	15.39	%

Tier 1 Leverage Ratio
Bank	5.00	%	4.00	%	12.60	%


Period	Total number of shares purchased		Average price paid per share	Total number of shares purchased as part of publicly announced plans or programs	Maximum number of shares that may yet be purchased under the plans or programs (1)
July 1, 2024 through July 31, 2024	—	$	—	—	257,694
August 1, 2024 through August 31, 2024	—		—	—	257,694
September 1, 2024 through September 30, 2024	—		—	—	257,694


Exhibit
Number		Description

3.1		Articles of Incorporation of Esquire Financial Holdings, Inc. (1)

3.2		Amended and Restated Bylaws of Esquire Financial Holdings, Inc. (2)

31.1		Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2		Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32		Written Statement of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101.0		The following materials for the quarter ended September 30, 2024, formatted in iXBRL (Inline Extensible Business Reporting Language): (i) Consolidated Statements of Financial Condition, (ii) Consolidated Statements of Income, (iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Statements of Changes in Stockholders’ Equity (v) Consolidated Statements of Cash Flows and (v) Notes to the Consolidated Financial Statements, tagged as blocks of text and including detailed tags.

104		Cover Page Interactive Data File (embedded within the Inline XBRL document).


	ESQUIRE FINANCIAL HOLDINGS, INC.

Date: November 13, 2024	/s/ Andrew C. Sagliocca
	Andrew C. Sagliocca
	Vice Chairman, Chief Executive Officer and President

Date: November 13, 2024	/s/ Michael Lacapria
	Michael Lacapria
	Senior Vice President and Chief Financial Officer