ESQ

Esquire Financial Holdings, Inc. reported past second-quarter 2026 results showing net interest income of US$35.75 million and net income of US$12.98 million, both higher than a year earlier, alongside increased basic and diluted earnings per share from continuing operations. For the first half of 2026, Esquire’s higher net interest income of US$69.75 million and net income of US$25.19 million underscore ongoing operational strength across its lending and fee-based activities. With net interest income rising year over year, we’ll now examine how this earnings momentum influences Esquire Financial Holdings’ existing investment narrative. The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 16 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement. To own Esquire Financial Holdings, you need to believe in its niche focus on contingent fee law firms and merchant payment processing, and its ability to manage funding costs while expanding that specialty franchise. The latest second quarter 2026 results, with higher net interest income and earnings, support the near term earnings catalyst but do not materially change the main risk around integrating the pending Signature Bancorporation acquisition across key legal markets. The most relevant recent announcement here is the upcoming special shareholders meeting on June 23, 2026, to approve issuing Esquire stock to Signature stockholders under the merger agreement. Against a backdrop of rising net interest income and earnings, this approval process is central to whether Esquire gains the larger legal lending limit and broader market access that many investors see as important to its next phase of growth. Yet behind these higher earnings, investors should be aware of how much the “transformational” Signature acquisition could... Read the full narrative on Esquire Financial Holdings (it's free!) Esquire Financial Holdings' narrative projects $435.2 million revenue and $121.9 million earnings by 2029. This requires 45.1% yearly revenue growth and about a $70.3 million earnings increase from $51.6 million today. Uncover how Esquire Financial Holdings' forecasts yield a $125.00 fair value, in line with its current price. Three fair value estimates from the Simply Wall St Community cluster tightly between US$125 and US$130, highlighting how differently individual investors can view Esquire’s worth. Set against Esquire’s rising net interest income and the execution risk around the Signature acquisition, these varied views invite you to consider several alternative scenarios for the bank’s future performance. Explore 3 other fair value estimates on Esquire Financial Holdings - why the stock might be worth just $125.00! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your Esquire Financial Holdings research is our analysis highlighting 2 key rewards that could impact your investment decision. Our free Esquire Financial Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Esquire Financial Holdings' overall financial health at a glance. Markets shift fast. These stocks won't stay hidden for long. Get the list while it matters: This technology could replace computers: discover 26 stocks that are working to make quantum computing a reality. AI is about to change healthcare. These 40 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. Capitalize on the AI infrastructure supercycle with our selection of the 56 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ESQ. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in Esquire Financial Holdings, Inc.? Here are five stocks we like better. Esquire Financial posted solid Q2 results, with GAAP net income of $13 million, or $1.49 per diluted share. Excluding merger-related expenses tied to Signature Bancorporation, adjusted earnings rose 16% year over year to $14 million, or $1.60 per share. Growth remained strong in both loans and deposits, with total loans up $87.2 million sequentially to $1.9 billion and deposits up $77.1 million to $2.18 billion. Litigation loans were a major driver, growing 24% annualized to $1.29 billion. The pending Signature merger is set to close on Aug. 1 and is expected to support expansion in Chicago and the Midwest. Management said integration planning is going well and that the combined company should benefit from a broader litigation banking footprint, though its net interest margin will likely dip to about 5.45% initially. Esquire Financial (NASDAQ:ESQ) reported second-quarter GAAP net income of $13 million, or $1.49 per diluted share, as management highlighted continued loan and deposit growth, a resilient net interest margin and preparations for its pending acquisition of Signature Bancorporation Inc. Michael Lacapria, Esquire’s senior vice president and chief financial officer, said results included approximately $1.1 million of pre-tax merger-related expenses tied to the Signature transaction. Excluding those costs, adjusted net income was $14 million, or $1.60 per diluted share, up 16% from the prior-year quarter. → Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Adjusted return on average assets was 2.25%, and adjusted return on average equity was 18.33%, Lacapria said. On a GAAP basis, average returns on assets and equity were 2.09% and 17.06%, respectively. Andrew Sagliocca, Esquire’s vice chairman, chief executive officer and president, said the Signature merger is scheduled to close on Aug. 1. He said the Chicago metro market is one of the three largest U.S. markets, along with New York City and Los Angeles, for population and contingent fee law firms, Esquire’s primary banking vertical. → 3 Photonics Companies Making Quantum Tech Possible Sagliocca said Esquire currently underserves the Chicago and Midwest markets on a standalone basis and that Signature brings a “well-established and well-known Chicago-based management team and brand.” He said combining that with Esquire’s experience in the national litigation market could help drive sustained growth and returns. In response to a question from Emily Lee of KBW, Sagliocca said integration planning has gone “extremely well,” with extensive collaboration between the two companies. He said Esquire has been working with Signature’s team on lending, business development, underwriting plaintiff law firms and identifying prospective law firm clients in Chicago and the Midwest. → AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off “At this point, I really have no concerns heading into the 8/1 date,” Sagliocca said, adding that legal day-one readiness is in place. Lacapria said total loans increased $87.2 million from the prior quarter, or 19% annualized, reaching $1.9 billion. That growth came despite $76.1 million in loan payoffs during the quarter. Commercial loan production totaled $61.6 million, while real estate loan production was $25.6 million. The litigation loan portfolio grew $72.6 million on a net basis, or 24% annualized, to $1.29 billion at a blended yield of 8.8%. Lacapria said litigation loans were up 41% year over year and that client activity levels and production pipelines remained healthy entering the second half of the year. Total deposits increased $77.1 million from the prior quarter, or 15% annualized, to $2.18 billion. Lacapria said deposit growth was driven by litigation-related escrow and IOLTA deposits, reflecting the company’s relationship-focused commercial banking strategy. Esquire’s cost of funds remained relatively flat at 1.03%. During the question-and-answer session, Sagliocca said Esquire’s primary focus remains national growth in its litigation platform. He characterized the quarter’s $25 million of commercial real estate growth as modest for the company and said Esquire continues to seek CRE opportunities that meet its standards for debt service coverage and loan-to-value ratios. Esquire’s net interest margin was 5.96% in the quarter. Lacapria said the margin remained resilient despite a significant decline in short-term rates from peak levels over the past several years. He also said elevated interest-earning cash balances funded by the company’s core deposit franchise reduced the margin by about 10 basis points. Sagliocca said management is focused on maintaining the company’s standalone net interest margin near 6%, though he noted Esquire will soon no longer be standalone following the Signature closing. He said the combined company’s net interest margin is expected to be around 5.40% to 5.50% on day one, with 5.45% as a central estimate. He added that the margin could improve over time as the combined company builds higher-yielding litigation assets in Signature’s market and attracts low-cost core funding associated with that vertical. Lacapria said Esquire’s allowance for credit losses was 1.3% of total loans, unchanged from the prior quarter. The company had two non-performing loans totaling $5.1 million, representing 20 basis points of total assets. During the quarter, Esquire transferred a previously criticized multifamily credit to non-accrual status and recorded a $1.6 million charge-off. Lacapria said the company has no additional exposure to that real estate sponsor, no other real estate credits classified as special mention or substandard, no exposure to commercial office and limited hospitality exposure of $13.17 million. Sagliocca said the multifamily debt service coverage metrics referenced by the company are current measures, based on annual updates for loans above a certain size. He said management is comfortable with the multifamily portfolio looking over the next one to two years. Esquire’s capital levels remained above regulatory well-capitalized standards. Lacapria said consolidated equity to assets was approximately 12.5% at quarter end, while the bank-level Tier 1 capital ratio was approximately 14.2%. Non-interest income was $6.4 million, representing about 15% of total revenue. Lacapria said Esquire’s payments platform remains a meaningful contributor to earnings and client engagement. During the quarter, the company supported 93,000 small business clients nationwide and processed approximately $10.6 billion in payment volume across 153 million transactions. Off-balance sheet sweep balances totaled $1 billion, with about 38% available for liquidity if needed. Administrative service payment fee income on those balances was $1.1 million for the quarter. Asked about plans to pursue more direct merchant business after the Signature acquisition, Sagliocca said Esquire expects the current merchant model to grow slowly over the next four to six quarters. He said volume in the indirect model tends to grow around 10%, while revenue tends to grow around 3% to 5%, excluding the impact of certain independent sales organizations leaving after selling their platforms. Sagliocca said Esquire plans to focus on Signature’s non-litigation commercial customers and seek to move some of them to a direct merchant acquiring platform, though he described that shift as “a slow and steady process.” In closing remarks, Sagliocca said he expects the December quarter to provide a clearer view of how the combined company will perform following the merger. Esquire Financial Holdings, Inc is a bank holding company whose principal subsidiary, Esquire Bank, specializes in residential mortgage lending and community banking services. Headquartered in Kansas City, Missouri, the company operates through multiple distribution channels, including retail branches, wholesale and correspondent lending divisions. Esquire Financial focuses on tailored home financing solutions while maintaining a community-oriented approach to banking. In its mortgage lending business, Esquire Bank originates and services a range of home loan products, including government-insured mortgages (FHA, VA and USDA) as well as conventional conforming and jumbo loans. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Esquire Financial Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Release Date: July 23, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Esquire Financial Holdings Inc (NASDAQ:ESQ) reported a strong GAAP net income of $13 million or $1.49 per diluted share for Q2 2026. The company achieved a 16% increase in adjusted earnings compared to the prior-year quarter, indicating robust business performance. Loan growth was exceptional, with total loans increasing by $87.2 million or 19% annualized, driven by commercial and real estate loan production. The litigation loan portfolio experienced significant growth, with a 24% annualized net increase, bringing the total to $1.29 billion at a blended yield of 8.8%. The company's capital foundation remains strong, with consolidated equity to assets and bank-level Tier 1 capital ratios well above regulatory standards. The merger-related expenses associated with the acquisition of Signature Bank Corporation amounted to approximately $1.1 million pre-tax. Net interest margin was negatively impacted by approximately 10 basis points due to elevated interest-earning cash balances. There was a $1.6 million charge-off related to a previously criticized multifamily credit transferred to non-accrual status. The company has two non-performing loans totaling $5.1 million, representing 20 basis points on total assets. The payments platform experienced a decline in volume due to the sale of platforms by one or two ISOs, impacting revenue growth. Warning! GuruFocus has detected 3 Warning Sign with STC. Is ESQ fairly valued? Test your thesis with our free DCF calculator. Q: Litigation growth was strong, but there's also strong CRE growth this quarter. How do you see this mix evolving? A: Our primary focus remains on national growth in the litigation platform, which offers higher yields and core funding. While CRE growth was notable, it remains a smaller component. We continue to seek opportunities in the CRE market with strong debt service coverage and loan-to-values, even if it means sacrificing some yield. Q: How are new litigation loan yields holding up? A: Yields are strong, though slightly below past quarters. We focus on maintaining an overall net interest margin around 6%, which we believe generates good returns. Excess cash on the balance sheet could enhance our margin if deployed effectively. Q: Can you provide an update on the Signature merger and how quickly their team can adapt to Esquire's litigation lending style? A: The merger process is going well, with strong cooperation. We've been working closely with Signature's team to align on litigation lending and identify key prospective law firms in the Chicago and Midwest markets. We anticipate a smooth integration by the August 1 closing date. Q: What's the update on moving towards direct business with merchants post-Signature merger? A: Over the next four to six quarters, we aim to grow the merchant model by about 10% in volume and 3-5% in revenue. With Signature's acquisition, we'll focus on transitioning their non-litigation commercial customers to a direct merchant acquiring platform, though this will be a gradual process. Q: Post-merger, what happens to the interest rate sensitivity of the balance sheet? A: The interest rate sensitivity remains relatively unchanged. Both Esquire and Signature have a lot of floating rate assets, and we don't anticipate significant changes in how the balance sheet is managed from an interest rate risk perspective. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Esquire Financial Holdings, Inc. (ESQ) came out with quarterly earnings of $1.6 per share, beating the Zacks Consensus Estimate of $1.55 per share. This compares to earnings of $1.38 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +3.23%. A quarter ago, it was expected that this company would post earnings of $1.52 per share when it actually produced earnings of $1.58, delivering a surprise of +3.95%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Esquire Financial, which belongs to the Zacks Banks - Northeast industry, posted revenues of $42.13 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.00%. This compares to year-ago revenues of $35.83 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Esquire Financial shares have added about 18.6% since the beginning of the year versus the S&P 500's gain of 9.6%. While Esquire Financial has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Esquire Financial was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.63 on $42.35 million in revenues for the coming quarter and $6.70 on $164.08 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Northeast is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, MVB Financial (MVBF), has yet to report results for the quarter ended June 2026. The results are expected to be released on July 28. This company is expected to post quarterly earnings of $0.33 per share in its upcoming report, which represents a year-over-year change of +120%. The consensus EPS estimate for the quarter has been revised 3.3% lower over the last 30 days to the current level. MVB Financial's revenues are expected to be $36.6 million, up 8.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Esquire Financial Holdings, Inc. (ESQ) : Free Stock Analysis Report Mvb Financial Corp. (MVBF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Continued Strong Commercial Loan & Core Deposit Growth Nationally; Signature Merger Closing Currently Scheduled for August 1, 2026 JERICHO, N.Y., July 23, 2026 /PRNewswire/ -- 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 second quarter and year-to-date of 2026. Significant achievements and key performance metrics during the current quarter and year-to-date of 2026 include: Net income increased 9.2% to $13.0 million, or $1.49 per diluted share, as compared to $11.9 million, or $1.38 per diluted share, for the comparable quarter in 2025 despite: (1) pretax merger expenses totaling $1.1 million related to our acquisition of Signature Bancorporation, Inc. (the parent company of Signature Bank in Chicago, collectively "Signature") and (2) an elevated provision for credit losses related to a multifamily nonaccrual loan and related charge-off. For the current quarter, adjusted(1) net income and diluted earnings per share were $14.0 million and $1.60, respectively, excluding the previously noted pretax merger expenses of $1.1 million ($970 thousand, net of tax), representing an increase of 15.9%, or $0.22 per diluted share, as compared to the second quarter of 2025. Consistent industry leading returns on average assets and equity of 2.09% and 17.06%, respectively, despite the $970 thousand in merger-related expenses, net of tax, previously noted, as well as our continued investment in current resources to support future growth and excellence in client service. For the current quarter, adjusted(1) returns on average assets and equity were 2.25% and 18.33%, respectively. Resilient net interest margin of 5.96% for the quarter ended June 30, 2026, driven by our national litigation platform growth, despite significant declines in short-term market interest rates from their highs in 2023. Our net interest margin was negatively impacted by approximately 10 basis points due to elevated average interest earning cash balances that were funded with core deposit growth. Total revenue increased $13.0 million, or 18.7%, to $82.6 million, for year-to-date 2026 when compared to the prior year period. Loan growth on a linked quarter basis was $87.2 million, or 19% annualized, totaling $1.90 billion, despite payoffs totaling $76.1 million ($74.6 million in commercial loans) in the current quarter. Loan growth was primarily comprised of both commercial totaling $61.6 million ($72.6 million in litigation related or law firm loans) and commercial real estate totaling $25.6 million. Total loans grew $407.7 million, or 27.3%, (litigation related loans grew $376.5 million or 41.0%) when comparing the current quarter to the comparable quarter in 2025 while average total loans grew $414.5 million, or 28.3%, (litigation related loans grew $405.8 million or 46.1%) for the same period. These commercial relationships will continue to create additional opportunities for future loan growth (future draws on existing facilities and additional availability on renewed lines-of-credit) as well as future growth in core deposits through our full-service commercial relationship banking programs and commercial cash management platform on a national basis. To clearly demonstrate this point, law firms or litigation clients that have banked with Esquire for four years have a compounded annual growth rate on their loans and related commercial deposit balances of approximately 15% and 30%+, respectively. Strong corresponding deposit growth on a linked quarter basis totaling $77.1 million, or 15% annualized, to $2.18 billion with a cost-of-funds of 1.03% (including demand deposits). Growth on a linked quarter basis was fueled by litigation related escrow or IOLTA deposits. Deposits grew $397.4 million, or 22.3%, when comparing the current quarter to the comparable quarter in 2025 while average total deposits grew $412.7 million, or 23.6%, for the same period. Off-balance sheet ("OBS") sweep funds totaled $1.03 billion, with approximately 38% available for additional on-balance sheet liquidity, while the associated administrative service payments ("ASP") fee income totaled $1.1 million for the current quarter. Additional available liquidity totaled approximately $523 million, excluding cash, OBS sweep funds, and unsecured borrowing capacity. Solid credit metrics, asset quality, and reserve coverage ratios with an allowance for credit losses to loans ratio of 1.30%, two nonperforming loans totaling $5.1 million, and a nonperforming loans to total assets ratio of 0.20%. During the current quarter, a $4.4 million multifamily loan, net of a $1.6 million charge-off, that was reported as criticized in prior periods was placed on nonaccrual. This multifamily loan was made to the same sponsor as a former nonaccrual multifamily loan that was disposed of in the first quarter of 2026. We have no additional loan exposure to this sponsor. Stable and consistent noninterest income in the current quarter totaling $6.4 million, or 15% of total revenue, led by our payment processing platform with 93,000 small business clients nationally. Our tech-enabled payments platform allowed us to perform commercial treasury clearing services for $10.6 billion in credit and debit card payment volume, a 4.3% increase from the comparable quarter in 2025, across 152.6 million transactions for our small business clients in all 50 states. Strong efficiency ratio of 50.1% for the current quarter, notwithstanding our investments to support future growth, risk management and excellence in client service. Excluding the previously noted pretax merger costs totaling $1.1 million, the adjusted(1) efficiency ratio was 47.6%. Esquire has received all required regulatory approvals or waivers necessary to complete the previously announced acquisition of Signature, and the transaction is currently expected to close on August 1, 2026, pending satisfaction of customary closing conditions. Key recognitions during the current quarter are: (1) named the #1 Best Law Firm Funding Provider in The Recorder's 2026 "Best Of" survey; (2) included in Keefe, Bruyette & Woods ("KBW") Bank Honor Roll for the third consecutive year for consistent and exceptional performance over the past decade; (3) ranked first overall in the 2025 Raymond James Community Bankers Cup as the top-performing community bank, representing the eighth consecutive year on their list; and (4) ranked among the top U.S. merchant acquirers by Nilson Report for the second consecutive year. Strong capital foundation with common equity tier 1 ("CET1") and tangible common equity to tangible assets(2) ("TCE/TA") ratios of 14.24% and 12.50%, respectively. The Bank remains well above the bank regulatory "Well Capitalized" standards. "The timely closing of our Signature merger currently scheduled for August 1, 2026 will deliver enhanced value to all stakeholders while accelerating our growth in Chicago and the Midwest markets in the future," stated Tony Coelho, Chairman of the Board. "Chicago represents one of the top three largest metro markets by both population and number of contingent fee law firms with New York City and Los Angeles rounding out the top three metro markets." "By deeply understanding and serving our key national verticals, we've established a strong culture and foundation for sustainable growth and continued industry leading performance metrics and returns," stated Andrew C. Sagliocca, Vice Chairman, Chief Executive Officer, and President. "The Signature merger serves to position the combined entity for continued growth and success in the highly desirable Midwest and Chicago metro markets with a well-established Chicago-based management team and brand." Second Quarter 2026 vs. 2025 Net income for the quarter ended June 30, 2026 was $13.0 million, or $1.49 per diluted share, compared to $11.9 million, or $1.38 per diluted share for the same period in 2025. Returns on average assets and equity for the current quarter were 2.09% and 17.06%, respectively, compared to 2.37% and 18.74% for the same period of 2025. Excluding after-tax merger expenses of $970 thousand, adjusted(1) net income, diluted earnings per share, return on average assets, and return on average common equity were $14.0 million, $1.60, 2.25% and 18.33%, respectively. Net interest income increased $6.5 million, or 22.2%, to $35.7 million, due to growth in average interest earning assets totaling $457.4 million, or 23.5%, to $2.40 billion, funded with low-cost core deposits from our regional business development teams and existing relationship banking efforts. Our net interest margin decreased 7 basis points to 5.96%, primarily due to a $53.1 million increase in average interest earning cash balances to $205.0 million in the current quarter coupled with decreases in short-term market interest rates over the same period. Assuming this excess cash, funded with core low-cost deposits, was deployed in loans at current average loan yields, our net interest margin would have been approximately 10 basis points higher. Average loan yields decreased 11 basis points to 7.78%, primarily due to our litigation related loan yields, while average loans increased $414.5 million, or 28.3%, to $1.88 billion, with average litigation related loan growth totaling $405.7 million, or 46.1%. Loan interest income increased $7.7 million, or 26.6%, to $36.4 million with $8.0 million related to growth in average loan volumes, led by litigation related commercial growth, offset by $390 thousand due to a decrease in average loan rates. Average securities decreased $10.2 million, or 3.1%, to $322.8 million with yields remaining relatively flat at 3.79%. Average deposits increased $412.7 million, or 23.6%, to $2.16 billion, led by increases in litigation related escrow or IOLTA, commercial money market, and noninterest bearing commercial demand deposits totaling $297.5 million, $90.0 million, and $19.1 million, respectively. Our cost of deposits, including noninterest bearing demand deposits, increased 5 basis points to 1.03% due to changes in deposit composition. Our loan-to-deposit ratio was 87% at June 30, 2026. The provision for credit losses was $2.9 million for the second quarter of 2026, a $625 thousand decrease from the second quarter 2025, primarily due to management's revaluation of credit risk in our loan portfolio subsequent to certain charge-offs and related credit downgrades in both quarters, offset by provisioning for primarily commercial loan growth. During the current quarter, a $4.4 million multifamily loan, net of a $1.6 million charge-off, that was reported as criticized in prior periods was placed on nonaccrual. As of June 30, 2026, our allowance to loans ratio was 1.30%, consistent with the prior year quarter. Based on management's evaluation of current credit risk in our commercial real estate and commercial portfolios, management believes the allowance for credit losses is adequate at June 30, 2026. Noninterest income totaled $6.4 million in the current quarter, a decrease of $194 thousand from the second quarter of 2025. Payment processing income was $5.1 million for the second quarter of 2026, consistent with the prior year quarter, as growth in payment processing income has been muted, primarily due to changes in our overall merchant risk profile and merchant composition. Payment processing volumes for the credit and debit card processing platform increased $432.6 million, or 4.3%, to $10.6 billion while transaction volume totaled 152.6 million for the current quarter. We continue to focus on the expansion of merchant sales channels through our current and future ISOs, new merchant originations, active management of our merchant risk profiles, and by expanding our technology and other resources in the payment vertical. The Company utilizes proprietary and industry leading/customized technology to ensure card brand and regulatory compliance, to support multiple processing platforms, to manage daily risk across 93,000 small business merchants in all 50 states, and to perform commercial treasury clearing services for $10.6 billion in volume across 152.6 million transactions in the current quarter. ASP fees totaled $1.1 million, an increase of $449 thousand from the prior year quarter, and are directly impacted by the average balance of OBS sweep funds as well as current short-term market interest rates. During the second quarter 2025, we recognized a $432 thousand gain on the sale of a fintech investment. Noninterest expense increased $4.0 million, or 23.7%, to $21.1 million for the second quarter of 2026. This was primarily due to increases in employee compensation and benefits, merger related costs, data processing, advertising and marketing, and occupancy and equipment costs. Employee compensation and benefits costs increased $2.4 million, or 23.4%, primarily due to increases in year-end salaries, staffing, stock grants and related stock-based compensation, regional business development officer ("BDO") incentive pay (sales commissions) and year-end bonus accruals. The increase in BDO incentive pay is directly correlated to our litigation related/commercial loan and related core commercial deposit growth, attracting full-service commercial banking clients nationally. In connection with the announced merger with Signature, we incurred merger related costs (advisory, legal, accounting, valuation, and other professional or consulting fees, and general administrative costs) of $1.1 million in the second quarter of 2026. Data processing costs increased $343 thousand due to increases in core banking processing volumes and the continued implementation/improvement of technology supporting client relationships and lead acquisition initiatives (CRM platform, digital marketing, business development, and lending) as well as overall risk management across all platforms. Advertising and marketing costs increased $193 thousand, as we continued to grow our brand, targeting digital marketing platform, and expand our thought leadership in our national verticals. Occupancy and equipment costs increased $176 thousand due to costs associated with the operation of our Los Angeles branch which opened in late 2025. The Company's efficiency ratio was 50.1% for the three months ended June 30, 2026, as compared to 47.6% in 2025, notwithstanding our continued investment in resources (both technology and people) to support future growth, lead acquisition initiatives, excellence in client service, enhanced risk management, and costs associated with our flagship Los Angeles branch. The adjusted(1) efficiency ratio was 47.6% excluding the previously noted $1.1 million in merger related costs. The effective tax rate was 28.4% for the second quarter of 2026, as compared to 22.0% in the prior year quarter. The increase was primarily due to certain discrete tax benefits related to share-based compensation in the prior year quarter. Year-to-Date 2026 vs. 2025 Net income for the six months ended June 30, 2026 was $25.2 million, or $2.89 per diluted share, compared to $23.3 million, or $2.70 per diluted share for the same period in 2025. Returns on average assets and equity for the current six months were 2.10% and 16.94%, respectively, compared to 2.38% and 18.93% for the same period of 2025. Excluding after-tax merger costs and accelerated stock compensation expense totaling $2.5 million, adjusted(1) net income, diluted earnings per share, return on average assets, and return on average common equity were $27.7 million, $3.18, 2.31% and 18.64%, respectively. Net interest income increased $12.9 million, or 22.7%, to $69.8 million, due to growth in average interest earning assets totaling $430.6 million, or 22.5%, to $2.34 billion, funded with low-cost core deposits from our regional business development teams and existing relationship banking efforts. Our net interest margin increased 1 basis point to 6.00%, led by growth in higher yielding commercial loan production nationally. Average loan yields decreased 2 basis points to 7.82% while average loans increased $395.6 million, or 27.7%, to $1.82 billion (average litigation related loan growth totaling $380.3 million, or 44.5%). Loan interest income increased $15.1 million, or 27.2%, to $70.7 million with $15.3 million related to growth in average loan volumes, led by litigation related commercial growth, offset by $192 thousand due to a decrease in average loan rates. Average securities decreased $1.8 million to $328.6 million with yields increasing 5 basis points to 3.82%. Average deposits increased $388.6 million, or 22.7%, to $2.10 billion, led by increases in litigation related escrow or IOLTA, commercial money market, and noninterest bearing commercial demand deposits totaling $256.9 million, $92.8 million, and $30.5 million, respectively. Our cost of deposits, including noninterest bearing demand deposits, increased 5 basis points to 1.01% due to changes in deposit composition. The provision for credit losses was $5.6 million for the six months ended June 30, 2026, a $575 thousand increase from the comparable period in 2025, primarily due to management's revaluation of credit risk in our loan portfolio subsequent to certain charge-offs and related credit downgrades in both periods, offset by provisioning for primarily commercial loan growth. In 2026, there were $4.7 million in charge-offs related to two multifamily loans to the same sponsor. As of June 30, 2026, our allowance to loans ratio was 1.30%. Based on management's evaluation of current credit risk in our commercial real estate and commercial portfolios, management believes the allowance for credit losses is adequate at June 30, 2026. Noninterest income totaled $12.8 million in the current six months, an increase of $110 thousand from the same period in 2025. Payment processing income was $10.3 million for the six months ended June 30, 2026, an increase of $250 thousand from the same period in 2025 as growth in payment processing income has been muted, primarily due to changes in our overall merchant risk profile and merchant composition. Payment processing volumes for the credit and debit card processing platform increased $854.3 million, or 4.4%, to $20.2 billion while transaction volume totaled 289.9 million for the current six months. ASP fees totaled $2.2 million, an increase of $706 thousand from the same period in 2025, a direct result of the average balance of OBS sweep funds. During the second quarter 2025, we recognized a $432 thousand gain on the sale of a fintech investment. Noninterest expense increased $8.0 million, or 23.5%, to $41.8 million for the six months ended June 30, 2026. This was primarily due to increases in employee compensation and benefits, merger related costs, data processing, advertising and marketing, and occupancy and equipment costs. Employee compensation and benefits costs increased $4.5 million, or 22.4%, primarily due to increases in year-end salaries, stock grants and related stock-based compensation, staffing, regional BDO incentive pay (sales commissions), and year-end bonus accruals. The increase in BDO incentive pay is directly correlated to our litigation related/commercial loan and related core commercial deposit growth, attracting full-service commercial banking clients nationally. Due to the departure of two board members for personal reasons in the first quarter of 2026, we incurred compensation charges related to accelerated stock grant expense totaling $398 thousand. In connection with the Signature merger, we incurred merger related costs (advisory, legal, accounting, valuation, and other professional or consulting fees, as well as general administrative costs) of $2.3 million for the six months ended June 30, 2026. Data processing costs increased $792 thousand due to increases in core banking processing volumes and the continued implementation/improvement of technology supporting client relationships and lead acquisition initiatives (CRM platform, digital marketing, business development, and lending) as well as overall risk management across all platforms. Advertising and marketing costs increased $340 thousand, as we continued to grow our brand, targeting digital marketing platform, and expand our thought leadership in our national verticals. Occupancy and equipment costs increased $300 thousand primarily due to costs associated with the operation of our Los Angeles branch which opened in late 2025. The Company's efficiency ratio was 50.6% for the six months ended June 30, 2026, as compared to 48.6% in 2025, notwithstanding our continued investment in resources (both technology and people) to support future growth, lead acquisition initiatives, excellence in client service, enhanced risk management, and costs associated with the Signature merger and our flagship Los Angeles branch. The adjusted(1) efficiency ratio was 47.2% excluding the previously noted $2.7 million in elevated noninterest expense in connection with the Signature merger and accelerated director share-based compensation in the current year. The effective tax rate was 28.5% for the six months ended June 30, 2026, as compared to 24.3% in the prior year period. The increase was primarily due to certain discrete tax benefits related to share-based compensation in the prior year period. Asset Quality At June 30, 2026, we had two nonperforming loans totaling $5.1 million, with no exposure to commercial office or construction/vacant land related borrowers, and $13.7 million in performing loans to the hospitality industry. The allowance for credit losses was $24.7 million, or 1.30% of total loans, as compared to $19.4 million, or 1.30% of total loans at June 30, 2025. The ratio of nonperforming loans to total loans and total assets was 0.27% and 0.20%, respectively, at June 30, 2026. During the quarter, we placed a multifamily loan on nonaccrual totaling $4.4 million, net of a $1.6 million charge-off. Based on management's evaluation of current credit risk in our commercial real estate and commercial portfolios as well as increases in the general reserves considering loan growth, loan composition, and the current uncertain economic and short-term interest rate environment, management believes the allowance for credit losses is adequate at June 30, 2026. From a credit risk management perspective, the commercial real estate portfolio, excluding one multifamily nonaccrual loan, totaled $524.6 million and has a current weighted average debt service coverage ratio ("DSCR") and an original loan-to-value ("LTV") (defined as unpaid principal balance as of June 30, 2026 divided by appraised value at origination) of approximately 1.67 and 54%, respectively. Balance Sheet – June 30, 2026 vs. 2025 At June 30, 2026, total assets increased $451.0 million, or 21.9%, to $2.51 billion. This increase was primarily attributable to growth in loans totaling $407.7 million, or 27.3%, to $1.90 billion. Our higher yielding variable rate commercial loans increased $329.3 million, or 32.7%, to $1.34 billion with commercial litigation related loans increasing $376.5 million, or 41.0%, to $1.29 billion. Our commercial relationship banking sales pipeline remained robust, anchored by our regional senior BDOs (supported by commercial lending, risk, and operations) located in key markets throughout the U.S. who have also significantly expanded our participation in local, state, and national trial associations across the country. These BDOs are supported by our best-in-class technology stack including, but not limited to; our proprietary CRM system, digital marketing cloud and lending based technology built on Salesforce supporting client relationships and lead acquisition initiatives; account-based digital marketing (or "ABM") with significant thought leadership content; and artificial intelligence (or "AI") for advanced data analytics across our platform powering personalized and real-time ABM content to both current clients and prospective clients. Our available-for-sale securities portfolio decreased $17.2 million to $240.1 million due to portfolio amortization totaling $64.9 million, offset by purchases totaling $46.2 million. Our held-to-maturity securities portfolio totaled $56.1 million, a decrease of $8.4 million, due to portfolio amortization. Our total securities to assets ratio was 12% at June 30, 2026. The following table provides information regarding the composition of our loan portfolio for the periods presented: Total deposits were $2.18 billion as of June 30, 2026, a $397.4 million, or 22.3%, increase from June 30, 2025 due to a $361.8 million, or 38.3%, increase in litigation related escrow or IOLTA, and a $55.0 million, or 22.9% increase in money market deposits (primarily commercial). Our deposit strategy primarily focuses on developing full service commercial banking relationships nationally with our clients through commercial 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 $1.31 billion, or 59.9%, of total deposits. As of June 30, 2026, uninsured deposits were $722.4 million, or 33%, of our total deposits, excluding $18.9 million of the Company's deposits held at the Bank. Approximately 65% of our uninsured deposits represent clients with full commercial relationship banking with us including, but not limited to, commercial loans, payment processing, and various commercial service-oriented relationships including 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 June 30, 2026, OBS sweep funds totaled approximately $1.03 billion, with approximately $392.5 million, or 38.0%, available to be swept on balance sheet as reciprocal client relationship deposits. Our core low-cost deposit growth and off-balance sheet client funds continue to clearly demonstrate our highly efficient, full service commercial relationships and tech-enabled cash management platform. At June 30, 2026, we had the ability to borrow, on a secured basis, up to $477.6 million from the FHLB of New York and $45.0 million from the FRB of New York discount window. No borrowing amounts were outstanding during the second quarter of 2026. 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 $50.3 million to $313.9 million as of June 30, 2026, primarily driven by net increases in retained earnings (net income less dividends paid to shareholders), and to a lesser extent, additional paid-in-capital from share-based compensation and decreases in other comprehensive losses related to our available-for-sale securities portfolio. The Bank remains well above bank regulatory "Well Capitalized" standards. Earnings Call Information The Company will conduct a conference call on Thursday, July 23, 2026 at 10:00 a.m. (ET), during which Andrew C. Sagliocca, Vice Chairman, Chief Executive Officer and President, and Michael Lacapria, Senior Vice President and Chief Financial Officer, will discuss Esquire's second quarter financial performance, followed by a question-and-answer period. The live audio webcast can be accessed via the following link: https://events.q4inc.com/attendee/221060674 Corresponding presentation slides and a replay of the conference call will be available on Esquire's Investor Relations web page at investorrelations.esquirebank.com. The conference call may also be accessed by telephone using the dial-in information below: Conference Call DetailsU.S. - (833) 461-5787Meeting ID: 221 060 674 About Esquire Financial Holdings, Inc. Esquire Financial Holdings, Inc. is a financial holding company headquartered in Jericho, New York. Its wholly owned subsidiary, Esquire Bank, is a full-service commercial bank, with branch offices in Jericho, New York and Los Angeles, California, as well as an administrative office in Boca Raton, Florida. The Bank is dedicated to serving the financial needs of the litigation industry and small businesses nationally, as well as commercial and retail customers in the New York and Los Angeles metropolitan areas. 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; the ability to complete, or any delays in completing, the pending merger between the Company and Signature; any failure to realize the anticipated benefits of the transaction when expected or at all; certain restrictions during the pendency of the transaction that may impact the Company's ability to pursue, certain business opportunities or strategic transactions; the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events, diversion of management's attention from ongoing business operations and opportunities; potential adverse reactions or changes to business or employee relationships, including those resulting from the completion of the merger and integration of the companies 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. Loans, held for investment$1,876,857$36,4177.78%$1,771,003$34,2987.85%$1,462,401$28,7627.89%Securities, includes restricted stock322,7613,0463.79%334,4593,1783.85%332,9653,1273.77%Interest earning cash and other205,0311,8383.60%176,2681,5573.58%151,9151,6474.35%Total interest earning assets2,404,64941,3016.89%2,281,73039,0336.94%1,947,28133,5366.91%NONINTEREST EARNING ASSETS80,18874,65569,289TOTAL AVERAGE ASSETS$2,484,837$2,356,385$2,016,570INTEREST BEARING LIABILITIESSavings, NOW, Money Market deposits$1,571,288$5,5021.40%$1,458,983$4,9571.38%$1,178,058$4,2251.44%Time deposits6,415503.13%8,148673.33%6,037563.72%Total interest bearing deposits1,577,7035,5521.41%1,467,1315,0241.39%1,184,0954,2811.45%Borrowings4219.55%37255.45%4219.55%Total interest bearing liabilities1,577,7455,5531.41%1,467,5035,0291.39%1,184,1374,2821.45%NONINTEREST BEARING LIABILITIESDemand deposits581,150577,194562,056Other liabilities20,75217,30515,902Total noninterest bearing liabilities601,902594,499577,958Stockholders' equity305,190294,383254,475TOTAL AVG. LIABILITIES AND EQUITY$2,484,837$2,356,385$2,016,570Net interest income$35,748$34,004$29,254Net interest spread5.48%5.55%5.46%Net interest margin5.96%6.04%6.03%Deposits (including nonint. demand deposits)$2,158,853$5,5521.03%$2,044,325$5,0241.00%$1,746,151$4,2810.98% ESQUIRE FINANCIAL HOLDINGS, INC.Consolidated Non-GAAP Financial Measure Reconciliation (unaudited)(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 merger expenses and accelerated stock compensation, net of tax. The following table presents a reconciliation of efficiency ratio (non-GAAP) and adjusted efficiency ratio (non-GAAP). Adjusted noninterest expense, which is used to compute the adjusted efficiency ratio, excludes the impact of merger expenses and accelerated stock compensation. View original content to download multimedia:https://www.prnewswire.com/news-releases/esquire-financial-holdings-inc-reports-second-quarter-2026-results-302832790.html

The market expects Merchants Bancorp (MBIN) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on July 28, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This bank holding company is expected to post quarterly earnings of $1.22 per share in its upcoming report, which represents a year-over-year change of +103.3%. Revenues are expected to be $181.98 million, up 1.6% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 1.27% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Merchants Bancorp, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -4.92%. On the other hand, the stock currently carries a Zacks Rank of #4. So, this combination makes it difficult to conclusively predict that Merchants Bancorp will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Merchants Bancorp would post earnings of $1.16 per share when it actually produced earnings of $1.25, delivering a surprise of +7.76%. Over the last four quarters, the company has beaten consensus EPS estimates three times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Merchants Bancorp doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Another stock from the Zacks Banks - Northeast industry, Esquire Financial Holdings, Inc. (ESQ), is soon expected to post earnings of $1.55 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +12.3%. Revenues for the quarter are expected to be $40.91 million, up 14.2% from the year-ago quarter. The consensus EPS estimate for Esquire Financial has remained unchanged over the last 30 days. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +1.72%. When combined with a Zacks Rank of #3 (Hold), this Earnings ESP indicates that Esquire Financial will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Merchants Bancorp (MBIN) : Free Stock Analysis Report Esquire Financial Holdings, Inc. (ESQ) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Esquire Financial Holdings, Inc. (ESQ) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 23. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This company is expected to post quarterly earnings of $1.55 per share in its upcoming report, which represents a year-over-year change of +12.3%. Revenues are expected to be $40.91 million, up 14.2% from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Esquire Financial, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +1.72%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination indicates that Esquire Financial will most likely beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Esquire Financial would post earnings of $1.52 per share when it actually produced earnings of $1.58, delivering a surprise of +3.95%. Over the last four quarters, the company has beaten consensus EPS estimates two times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Esquire Financial appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Among the stocks in the Zacks Banks - Northeast industry, Pathward Financial (CASH), is soon expected to post earnings of $1.95 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +7.7%. This quarter's revenue is expected to be $191.14 million, down 2.4% from the year-ago quarter. The consensus EPS estimate for Pathward has remained unchanged over the last 30 days. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +2.74%. This Earnings ESP, combined with its Zacks Rank #3 (Hold), suggests that Pathward will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Esquire Financial Holdings, Inc. (ESQ) : Free Stock Analysis Report Pathward Financial, Inc. (CASH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research