Ratio Analysis
Balance Sheet Ratios
Esquire’s balance sheet ratios are shown in the screencap below with its performance since 2022 highlighted in yellow.
Esquire has continued its mostly excellent performance since 2022. The only concern would be its liquidity ratio and it deserves to be addressed. The liquidity ratio is equal to cash and cash equivalents divided by total liabilities. That balance was $126 million as of 12/31/24 and $240 million through Q3 2025. In case of an emergency, the bank can access its vast off-balance sheet funds and sweep them on to the balance sheet for additional liquidity. The amount of these funds at the end of Q3 was $412 million. Regarding the deposits, a full 30+% of them are noninterest bearing and we learned earlier that the total cost of deposits is <1%. Overall, I don’t think there’s much to be worried about regarding Esquire’s liquidity ratio.
Income Statement Ratios
Esquire’s income statement ratios are shown in the screencap below with its performance since 2022 highlighted in yellow.
The bank has crushed it pretty much across the board. Its return on average assets, return on average equity, net interest margin, and efficiency ratio would make most bankers salivate. The only nitpick would be its relatively low non-interest income to average assets. Outstanding job here.
Asset Quality Ratios
Esquire’s asset quality ratios are shown in the screencap below with its performance since 2022 highlighted in yellow.
