ESQUIRE FINANCIAL HOLDINGS, INC. REPORTS FIRST QUARTER 2024 RESULTS
Continued Growth in our National Platforms Drives Industry Leading Performance Metrics
- On a linked quarter basis, net income totaled
$10.1 million , or$1.20 per diluted share, as compared to$9.9 million , or$1.18 per diluted share, despite our continued investment in people and future growth in the current quarter. For the first quarter 2023, net income totaled$12.2 million , or$1.47 per diluted share, while adjusted(1) net income and diluted earnings per share for the same period were$9.2 million and$1.11 , excluding a$4.0 million pre-tax gain on the partial sale of our fintech investment. - Industry leading and consistent returns on average assets and equity of 2.59% and 20.14% for the current quarter, respectively, as compared to 2.59% and 20.78% on a linked quarter basis. These returns were fueled by the continued expansion of our total revenue base to
$29.3 million , led by a strong net interest margin of 6.06% as well as stable fee-based income. - Loan growth on a linked quarter basis was
$20.8 million , or 7% annualized, totaling$1.23 billion and was comprised of higher yielding variable rate commercial loans from our national litigation platform. These commercial loans have and will continue to create additional opportunities for full commercial relationship banking (commercial deposits) through our branchless commercial cash management platform. As anticipated, commercial loan growth was tempered in the first quarter by paydowns of elevated net draws in the fourth quarter 2023 as well as our decision to proactively moderate multifamily and commercial real estate loan growth due to the current economic and short-term interest rate environment. - Solid credit metrics, asset quality, and reserve coverage ratios with a 1.43% allowance for credit losses to loans ratio and nonperforming loan to total assets ratio of 0.66%, represented by one multifamily loan totaling
$10.9 million . Within our commercial real estate portfolio, we have no exposure to commercial office space, no construction loans, and$15.3 million in performing loans to the hospitality industry. - Continued deposit growth totaling
$26.8 million , or 8% annualized, on a linked quarter basis to$1.43 billion , comprised of core low-cost commercial relationship deposits with a cost-of-funds of 0.96% (including demand deposits). Off-balance sheet sweep funds totaled$466.6 million at quarter end, with approximately 62% available for additional on-balance sheet liquidity, while the associated administrative service payments ("ASP") fee income totaled$746 thousand for the current quarter. Additional available liquidity totaled approximately$647 million (secured FHLB and FRB borrowing capacity plus available on-balance sheet sweep liquidity), excluding cash & cash equivalents and any unsecured borrowings capacity. - Stable and consistent fee income totaling
$6.4 million or 22% of total revenue, led by our payment processing platform with 85,000 small business clients nationally. Our technology enabled payments platform facilitated the processing of$8.6 billion in credit and debit card payment volume across 150.5 million transactions for our clients in the current quarter. - Strong efficiency ratio of 49.8% notwithstanding our investments in resources to support future growth and excellence in client service.
- Our consistent industry leading performance and growth has led to an increase in our regular quarterly cash dividends to
$0.15 per share of common stock, or 12.5% of earnings per diluted share. - In
January 2024 , the Company announced that it closed on a committed investment of$6 million (representing 24.99% ownership interest) inUnited Payment Systems, LLC (doing business as Payzli), an end-to-end payment technology company that acts as a single source for payment services, business management software, web enablement and mobile solutions. - On
February 28, 2024 , the Company announced plans to establish a branch inLos Angeles, California , underscoring the strength of this market for both national verticals and our commitment to future growth. As of the date of this release, the Company has received regulatory approval to establish the branch. - Strong capital foundation with common equity tier 1 ("CET1") and tangible common equity to tangible asset(1) ("TCE/TA") ratios of 14.41% and 12.52%, respectively. Including the after tax unrealized losses on both the available-for-sale and held-to-maturity securities portfolios of
$14.4 million and$6.0 million , respectively, the adjusted(1) CET1 and adjusted(1) TCE/TA ratios were 12.88% and 12.16%, respectively.Esquire Bank remains well above the bank regulatory "Well Capitalized" standards.
(1) See non-GAAP reconciliation provided at the end of this news release.
"We have always believed that a strong and fortified balance sheet anchored by outstanding client relationships will consistently generate long term growth, industry leading performance metrics, and continued success into the future," stated
"In light of the current economic and interest rate environment surrounding multifamily and commercial real estate, we have tempered our short-term growth targets in these asset classes for the foreseeable future," stated
(1) See non-GAAP reconciliation provided at the end of this news release.
Net income for the quarter ended
Net interest income for the first quarter of 2024 increased
The provision for credit losses was
Noninterest income totaled
Noninterest expense increased
(1) See non-GAAP reconciliation provided at the end of this news release.
Travel and business relations costs increased
The Company's efficiency ratio was 49.8% for the three months ended
The effective tax rate was 26.5% for the first quarter of 2024, consistent with the first quarter of 2023.
At
Due to increases in short-term interest rates associated with the current inflationary environment since 2022, management enhanced its ongoing credit risk management including risk management of its commercial real estate loan portfolio. The following is a brief summary of our ongoing risk management for our multifamily and CRE portfolios as of
- The multifamily portfolio, totaling
$348.7 million , has a current weighted average DSCR and an original LTV (defined as unpaid principal balance as ofMarch 31, 2024 divided by appraised value at origination) of approximately 1.67 and 54%, respectively, and the CRE portfolio, totaling$89.0 million , has a current weighted average DSCR and an original LTV of approximately 1.61 and 60%, respectively. - Multifamily loans maturing in less than one year totaled
$36.7 million and had a current weighted average DSCR and an original LTV of approximately 1.49 and 57%, respectively. CRE loans maturing in less than one year totaled$5.5 million and had a current weighted average DSCR and an original LTV of approximately 3.79 and 52%, respectively. - Multifamily loans maturing in one to two years totaled
$39.0 million and had a current weighted average DSCR and an original LTV of approximately 1.36 and 56%, respectively. CRE loans maturing in one to two years totaled$2.2 million and had a current weighted average DSCR and an original LTV of approximately 1.57 and 61%, respectively.
At
(1) See non-GAAP reconciliation provided at the end of this news release.
The following table provides information regarding the composition of our loan portfolio for the periods presented:
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
2024 |
|
|
2023 |
|
|
2023 |
|
|||||||||
|
|
(Dollars in thousands) |
|
|||||||||||||||
Real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multifamily |
|
$ |
348,666 |
|
28.4 |
% |
|
$ |
348,241 |
|
28.8 |
% |
|
$ |
274,656 |
|
28.4 |
% |
Commercial real estate |
|
|
89,016 |
|
7.2 |
|
|
|
89,498 |
|
7.4 |
|
|
|
91,493 |
|
9.5 |
|
1 – 4 family |
|
|
17,797 |
|
1.5 |
|
|
|
17,937 |
|
1.5 |
|
|
|
21,730 |
|
2.2 |
|
Total real estate |
|
|
455,479 |
|
37.1 |
|
|
|
455,676 |
|
37.7 |
|
|
|
387,879 |
|
40.1 |
|
Commercial: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Litigation related |
|
|
634,430 |
|
51.6 |
|
|
|
612,457 |
|
50.7 |
|
|
|
476,888 |
|
49.3 |
|
Other |
|
|
119,860 |
|
9.8 |
|
|
|
125,457 |
|
10.4 |
|
|
|
89,039 |
|
9.2 |
|
Total commercial |
|
|
754,290 |
|
61.4 |
|
|
|
737,914 |
|
61.1 |
|
|
|
565,927 |
|
58.5 |
|
Consumer |
|
|
18,953 |
|
1.5 |
|
|
|
14,491 |
|
1.2 |
|
|
|
13,116 |
|
1.4 |
|
Total loans held for investment |
|
$ |
1,228,722 |
|
100.0 |
% |
|
$ |
1,208,081 |
|
100.0 |
% |
|
$ |
966,922 |
|
100.0 |
% |
Deferred loan fees and unearned |
|
|
(480) |
|
|
|
|
|
(668) |
|
|
|
|
|
(1,292) |
|
|
|
Loans, held for investment |
|
$ |
1,228,242 |
|
|
|
|
$ |
1,207,413 |
|
|
|
|
$ |
965,630 |
|
|
|
Total deposits were
Due to the nature of our larger mass tort and class action settlements related to the litigation vertical, we participate in
At
Stockholders' equity increased
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
|
|
|
|
|
|
|
|
|
|
|
Consolidated Statement of Condition (unaudited) |
|
|
|
|
|
|
|
|
|
|
(dollars in thousands except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
2024 |
|
2023 |
|
2023 |
|
|||
ASSETS |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
158,243 |
|
$ |
165,209 |
|
$ |
203,799 |
|
Securities purchased under agreements to resell, at cost |
|
|
— |
|
|
— |
|
|
49,230 |
|
Securities available-for-sale, at fair value |
|
|
142,159 |
|
|
122,107 |
|
|
107,936 |
|
Securities held-to-maturity, at cost |
|
|
75,242 |
|
|
77,001 |
|
|
76,931 |
|
Securities, restricted at cost |
|
|
2,928 |
|
|
2,928 |
|
|
2,810 |
|
Loans, held for investment |
|
|
1,228,242 |
|
|
1,207,413 |
|
|
965,630 |
|
Less: allowance for credit losses |
|
|
(17,523) |
|
|
(16,631) |
|
|
(12,952) |
|
Loans, net of allowance |
|
|
1,210,719 |
|
|
1,190,782 |
|
|
952,678 |
|
Premises and equipment, net |
|
|
2,661 |
|
|
2,602 |
|
|
2,593 |
|
Other assets |
|
|
62,329 |
|
|
56,247 |
|
|
54,847 |
|
Total Assets |
|
$ |
1,654,281 |
|
$ |
1,616,876 |
|
$ |
1,450,824 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
$ |
472,616 |
|
$ |
473,274 |
|
$ |
548,509 |
|
Savings, NOW and money market deposits |
|
|
947,055 |
|
|
926,264 |
|
|
709,511 |
|
Certificates of deposit |
|
|
14,378 |
|
|
7,761 |
|
|
6,352 |
|
Total deposits |
|
|
1,434,049 |
|
|
1,407,299 |
|
|
1,264,372 |
|
Other liabilities |
|
|
13,154 |
|
|
11,022 |
|
|
15,701 |
|
Total liabilities |
|
|
1,447,203 |
|
|
1,418,321 |
|
|
1,280,073 |
|
Total stockholders' equity |
|
|
207,078 |
|
|
198,555 |
|
|
170,751 |
|
Total Liabilities and Stockholders' Equity |
|
$ |
1,654,281 |
|
$ |
1,616,876 |
|
$ |
1,450,824 |
|
|
|
|
|
|
|
|
|
|
|
|
Selected Financial Data |
|
|
|
|
|
|
|
|
|
|
Common shares outstanding |
|
|
8,292,789 |
|
|
8,287,848 |
|
|
8,190,758 |
|
Book value per share |
|
$ |
24.97 |
|
$ |
23.96 |
|
$ |
20.85 |
|
Equity to assets |
|
|
12.52 |
% |
|
12.28 |
% |
|
11.77 |
% |
|
|
|
|
|
|
|
|
|
|
|
Capital Ratios (1) |
|
|
|
|
|
|
|
|
|
|
Tier 1 leverage ratio |
|
|
12.42 |
% |
|
12.07 |
% |
|
11.31 |
% |
Common equity tier 1 capital ratio |
|
|
14.41 |
|
|
14.13 |
|
|
14.89 |
|
Tier 1 capital ratio |
|
|
14.41 |
|
|
14.13 |
|
|
14.89 |
|
Total capital ratio |
|
|
15.66 |
|
|
15.38 |
|
|
16.14 |
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality |
|
|
|
|
|
|
|
|
|
|
Nonperforming loans |
|
$ |
10,941 |
|
$ |
10,940 |
|
$ |
— |
|
Allowance for credit losses to total loans |
|
|
1.43 |
% |
|
1.38 |
% |
|
1.34 |
% |
Nonperforming loans to total loans |
|
|
0.89 |
|
|
0.91 |
|
|
0.00 |
|
Nonperforming assets to total assets |
|
|
0.66 |
|
|
0.68 |
|
|
0.00 |
|
Allowance to nonperforming loans |
|
|
160 |
|
|
152 |
|
|
NM |
|
_________________ |
|
(1) |
Regulatory capital ratios presented on bank-only basis. The Bank has no recorded intangible assets on the Statement of Financial Condition, so accordingly, tangible common equity is equal to common equity. |
|
|
NM – Not meaningful |
|
|
|
|
|
|
|
|
|
|
|
Consolidated Income Statement (unaudited) |
|
|
|
|
|
|
|
|
|
|
(dollars in thousands except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|||||||
|
|
|
|
|
|
|
|
|||
|
|
2024 |
|
2023 |
|
2023 |
|
|||
Interest income |
|
$ |
26,073 |
|
$ |
25,567 |
|
$ |
20,365 |
|
Interest expense |
|
|
3,210 |
|
|
2,897 |
|
|
1,076 |
|
Net interest income |
|
|
22,863 |
|
|
22,670 |
|
|
19,289 |
|
Provision for credit losses |
|
|
1,000 |
|
|
1,500 |
|
|
500 |
|
Net interest income after provision for credit losses |
|
|
21,863 |
|
|
21,170 |
|
|
18,789 |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
Payment processing fees |
|
|
5,296 |
|
|
5,418 |
|
|
5,513 |
|
Gain on equity investments |
|
|
— |
|
|
— |
|
|
4,027 |
|
Other noninterest income |
|
|
1,093 |
|
|
848 |
|
|
722 |
|
Total noninterest income |
|
|
6,389 |
|
|
6,266 |
|
|
10,262 |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
Employee compensation and benefits |
|
|
9,161 |
|
|
8,761 |
|
|
7,484 |
|
Other expenses |
|
|
5,407 |
|
|
5,140 |
|
|
4,997 |
|
Total noninterest expense |
|
|
14,568 |
|
|
13,901 |
|
|
12,481 |
|
Income before income taxes |
|
|
13,684 |
|
|
13,535 |
|
|
16,570 |
|
Income taxes |
|
|
3,626 |
|
|
3,653 |
|
|
4,391 |
|
Net income |
|
$ |
10,058 |
|
$ |
9,882 |
|
$ |
12,179 |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Share |
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.29 |
|
$ |
1.28 |
|
$ |
1.58 |
|
Diluted |
|
|
1.20 |
|
|
1.18 |
|
|
1.47 |
|
Basic - adjusted (1) |
|
|
1.29 |
|
|
1.28 |
|
|
1.20 |
|
Diluted - adjusted (1) |
|
|
1.20 |
|
|
1.18 |
|
|
1.11 |
|
|
|
|
|
|
|
|
|
|
|
|
Selected Financial Data |
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
|
2.59 |
% |
|
2.59 |
% |
|
3.68 |
% |
Return on average equity |
|
|
20.14 |
|
|
20.78 |
|
|
30.45 |
|
Adjusted return on average assets (1) |
|
|
2.59 |
|
|
2.59 |
|
|
2.79 |
|
Adjusted return on average equity (1) |
|
|
20.14 |
|
|
20.78 |
|
|
23.10 |
|
Net interest margin |
|
|
6.06 |
|
|
6.12 |
|
|
6.03 |
|
Efficiency ratio (1) |
|
|
49.8 |
|
|
48.0 |
|
|
42.2 |
|
Adjusted efficiency ratio (1) |
|
|
49.8 |
|
|
48.0 |
|
|
48.9 |
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends paid per common share |
|
$ |
0.150 |
|
$ |
0.125 |
|
$ |
0.100 |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average basic shares |
|
|
7,786,887 |
|
|
7,730,151 |
|
|
7,708,745 |
|
Weighted average diluted shares |
|
|
8,401,752 |
|
|
8,387,587 |
|
|
8,302,633 |
|
_________________ |
|
(1) |
See non-GAAP reconciliation provided elsewhere herein. |
|
|
||||||||||||||||||||||||
Consolidated Average Balance Sheets and Average Yield/Cost (unaudited) |
|
||||||||||||||||||||||||
(dollars in thousands) |
|
||||||||||||||||||||||||
|
|
||||||||||||||||||||||||
|
|
Three Months Ended |
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
2024 |
|
2023 |
|
2023 |
|
||||||||||||||||||
|
|
Average |
|
|
|
|
Average |
|
Average |
|
|
|
|
Average |
|
Average |
|
|
|
|
Average |
|
|||
|
|
Balance |
|
Interest |
|
Yield/Cost |
|
Balance |
|
Interest |
|
Yield/Cost |
|
Balance |
|
Interest |
|
Yield/Cost |
|
||||||
INTEREST EARNING ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, held for investment |
|
$ |
1,208,429 |
|
$ |
23,389 |
|
7.78 |
% |
$ |
1,169,411 |
|
$ |
23,028 |
|
7.81 |
% |
$ |
951,925 |
|
$ |
17,615 |
|
7.50 |
% |
Securities, includes restricted stock |
|
|
226,175 |
|
|
1,605 |
|
2.85 |
% |
|
218,130 |
|
|
1,439 |
|
2.62 |
% |
|
208,819 |
|
|
1,154 |
|
2.24 |
% |
Securities purchased under agreements to resell |
|
|
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
— |
|
|
49,405 |
|
|
653 |
|
5.36 |
% |
Interest earning cash and other |
|
|
81,740 |
|
|
1,079 |
|
5.31 |
% |
|
83,103 |
|
|
1,100 |
|
5.25 |
% |
|
88,209 |
|
|
943 |
|
4.34 |
% |
Total interest earning assets |
|
|
1,516,344 |
|
|
26,073 |
|
6.92 |
% |
|
1,470,644 |
|
|
25,567 |
|
6.90 |
% |
|
1,298,358 |
|
|
20,365 |
|
6.36 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST EARNING ASSETS |
|
|
48,602 |
|
|
|
|
|
|
|
44,805 |
|
|
|
|
|
|
|
44,186 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL AVERAGE ASSETS |
|
$ |
1,564,946 |
|
|
|
|
|
|
$ |
1,515,449 |
|
|
|
|
|
|
$ |
1,342,544 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST BEARING LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings, NOW, Money Market deposits |
|
$ |
860,159 |
|
$ |
3,098 |
|
1.45 |
% |
$ |
814,089 |
|
$ |
2,826 |
|
1.38 |
% |
$ |
648,183 |
|
$ |
1,012 |
|
0.63 |
% |
Time deposits |
|
|
11,041 |
|
|
111 |
|
4.04 |
% |
|
8,366 |
|
|
70 |
|
3.32 |
% |
|
9,424 |
|
|
63 |
|
2.71 |
% |
Total interest bearing deposits |
|
|
871,200 |
|
|
3,209 |
|
1.48 |
% |
|
822,455 |
|
|
2,896 |
|
1.40 |
% |
|
657,607 |
|
|
1,075 |
|
0.66 |
% |
Borrowings |
|
|
45 |
|
|
1 |
|
8.94 |
% |
|
45 |
|
|
1 |
|
8.82 |
% |
|
47 |
|
|
1 |
|
8.63 |
% |
Total interest bearing liabilities |
|
|
871,245 |
|
|
3,210 |
|
1.48 |
% |
|
822,500 |
|
|
2,897 |
|
1.40 |
% |
|
657,654 |
|
|
1,076 |
|
0.66 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST BEARING LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
|
477,020 |
|
|
|
|
|
|
|
484,690 |
|
|
|
|
|
|
|
504,765 |
|
|
|
|
|
|
Other liabilities |
|
|
15,787 |
|
|
|
|
|
|
|
19,614 |
|
|
|
|
|
|
|
17,897 |
|
|
|
|
|
|
Total noninterest bearing liabilities |
|
|
492,807 |
|
|
|
|
|
|
|
504,304 |
|
|
|
|
|
|
|
522,662 |
|
|
|
|
|
|
Stockholders' equity |
|
|
200,894 |
|
|
|
|
|
|
|
188,645 |
|
|
|
|
|
|
|
162,228 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL AVG. LIABILITIES AND EQUITY |
|
$ |
1,564,946 |
|
|
|
|
|
|
$ |
1,515,449 |
|
|
|
|
|
|
$ |
1,342,544 |
|
|
|
|
|
|
Net interest income |
|
|
|
|
$ |
22,863 |
|
|
|
|
|
|
$ |
22,670 |
|
|
|
|
|
|
$ |
19,289 |
|
|
|
Net interest spread |
|
|
|
|
|
|
|
5.44 |
% |
|
|
|
|
|
|
5.50 |
% |
|
|
|
|
|
|
5.70 |
% |
Net interest margin |
|
|
|
|
|
|
|
6.06 |
% |
|
|
|
|
|
|
6.12 |
% |
|
|
|
|
|
|
6.03 |
% |
Deposits (including noninterest bearing demand deposits) |
|
$ |
1,348,220 |
|
$ |
3,209 |
|
0.96 |
% |
$ |
1,307,145 |
|
$ |
2,896 |
|
0.88 |
% |
$ |
1,162,372 |
|
$ |
1,075 |
|
0.37 |
% |
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 |
|
|||||||
|
|
|
|
|
|
|
|||
|
2024 |
|
2023 |
|
2023 |
|
|||
Net income – GAAP |
$ |
10,058 |
|
$ |
9,882 |
|
$ |
12,179 |
|
Less: gain on equity investments |
|
— |
|
|
— |
|
|
(4,027) |
|
Add: income tax impact |
|
— |
|
|
— |
|
|
1,087 |
|
Adjusted net income |
$ |
10,058 |
|
$ |
9,882 |
|
$ |
9,239 |
|
|
|
|
|
|
|
|
|
|
|
Return on average assets – GAAP |
|
2.59 |
% |
|
2.59 |
% |
|
3.68 |
% |
Adjusted return on average assets |
|
2.59 |
% |
|
2.59 |
% |
|
2.79 |
% |
|
|
|
|
|
|
|
|
|
|
Return on average equity – GAAP |
|
20.14 |
% |
|
20.78 |
% |
|
30.45 |
% |
Adjusted return on average equity |
|
20.14 |
% |
|
20.78 |
% |
|
23.10 |
% |
|
|
|
|
|
|
|
|
|
|
Basic earnings per share – GAAP |
$ |
1.29 |
|
$ |
1.28 |
|
$ |
1.58 |
|
Adjusted basic earnings per share |
$ |
1.29 |
|
$ |
1.28 |
|
$ |
1.20 |
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share – GAAP |
$ |
1.20 |
|
$ |
1.18 |
|
$ |
1.47 |
|
Adjusted diluted earnings per share |
$ |
1.20 |
|
$ |
1.18 |
|
$ |
1.11 |
|
The following table presents a reconciliation of efficiency ratio (non-GAAP) and adjusted efficiency ratio (non-GAAP).
|
Three Months Ended |
|
|||||||
|
|
|
|
|
|
|
|||
|
2024 |
|
2023 |
|
2023 |
|
|||
Efficiency ratio – non-GAAP(1) |
|
49.8 |
% |
|
48.0 |
% |
|
42.2 |
% |
Noninterest expense – GAAP |
$ |
14,568 |
|
$ |
13,901 |
|
$ |
12,481 |
|
Net interest income – GAAP |
|
22,863 |
|
|
22,670 |
|
|
19,289 |
|
Noninterest income – GAAP |
|
6,389 |
|
|
6,266 |
|
|
10,262 |
|
Less: gain on equity investments |
|
— |
|
|
— |
|
|
(4,027) |
|
Adjusted noninterest income – non-GAAP |
$ |
6,389 |
|
$ |
6,266 |
|
$ |
6,235 |
|
Adjusted efficiency ratio – non-GAAP(2) |
|
49.8 |
% |
|
48.0 |
% |
|
48.9 |
% |
(1) |
The reported efficiency ratio is a non-GAAP measure calculated by dividing GAAP noninterest expense by the sum of GAAP net interest income and GAAP noninterest income. |
(2) |
The adjusted efficiency ratio is a non-GAAP measure calculated by dividing GAAP noninterest expense by the sum of GAAP net interest income and adjusted noninterest income. |
The following table presents the adjusted tangible common equity to tangible assets calculation (non-GAAP):
|
|
|
|
|
2024 |
|
|
Total assets - GAAP |
$ |
1,654,281 |
|
Less: intangible assets |
|
— |
|
Tangible assets ("TA") - non-GAAP |
|
1,654,281 |
|
|
|
|
|
Total stockholders' equity - GAAP |
$ |
207,078 |
|
Less: intangible assets |
|
— |
|
Less: preferred stock |
|
— |
|
Tangible common equity ("TCE") - non-GAAP |
|
207,078 |
|
Add: unrecognized losses on securities held-to-maturity, net of tax |
|
(5,999) |
|
Adjusted TCE - non-GAAP |
$ |
201,079 |
|
|
|
|
|
Stockholders' equity to assets - GAAP |
|
12.52 |
% |
TCE to TA - non-GAAP |
|
12.52 |
% |
Adjusted TCE to TA - non-GAAP |
|
12.16 |
% |
The following table presents the common equity tier 1 capital ratio and the adjusted common equity tier 1 capital ratio:
|
|
|
|
|
|
|
|
|
2024 |
|
|
Common equity tier 1 ("CET1") capital - Bank |
$ |
191,944 |
|
Add: unrealized losses on securities available-for-sale , net of tax |
|
(14,369) |
|
Add: unrecognized losses on securities held-to-maturity, net of tax |
|
(5,999) |
|
Adjusted CET1 capital - Bank |
$ |
171,576 |
|
|
|
|
|
Total risk-weighted assets - Bank |
$ |
1,332,002 |
|
|
|
|
|
CET1 capital ratio(1) |
|
14.41 |
% |
Adjusted CET1 capital ratio(1) |
|
12.88 |
% |
(1) |
Regulatory capital ratios presented on bank-only basis. The Bank has no recorded intangible assets on the Statement of Financial Condition, and accordingly, tangible common equity is equal to common equity. |
View original content:https://www.prnewswire.com/news-releases/esquire-financial-holdings-inc-reports-first-quarter-2024-results-302127490.html
SOURCE