Esquire Financial Holdings reported third quarter 2026 results highlighted by the successful close of the Signature Bancorporation merger on August 1. While GAAP earnings were impacted by $8.9 million in one-time merger expenses, adjusted results showed significant growth in the bank's core litigation-related lending and payment processing verticals.
Key Highlights
- Total revenue reached $61.4 million, surpassing analyst estimates of $59.93 million and representing a 74.6% increase over the prior year quarter.
- Adjusted diluted EPS of $2.12 beat the $1.89 expectation, though GAAP EPS was $1.57 due to integration costs and amortization of core deposit intangibles.
- Organic litigation-related loans grew at a 48.9% annualized rate to $1.46 billion, even as the total loan mix diversified following the acquisition.
- Net interest margin (NIM) remained high at 5.74%, contracting only 30 basis points from the prior year despite the absorption of the lower-yielding Signature portfolio.
- Total deposits surged 111.7% year-over-year to $3.98 billion, with the bank maintaining a low cost of funds at 1.13%.