Exhibit 99.1

 

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF CONDITION

 

   March 31, 2026 
   Esquire       Accounting     
(in thousands)  ("ESQ")   Signature   Adjustments   Pro Forma 
ASSETS                    
Cash and cash equivalents  $222,221   $188,262   $(27,900)(1)  $382,583 
Investment securities   316,306    364,637    -    680,943 
Loans held for investment   1,815,090    1,362,838    (17,960)(2)   3,159,968 
Less: allowance for credit losses   23,540    14,894    3,300(3)    41,734 
Loans, net of allowance   1,791,550    1,347,944    (21,260)   3,118,234 
Other real estate owned   -    1,890    (890)(4)   1,000 
Goodwill   -    -    219,431(5)    219,431 
Core deposit intangibles   -    -    49,326(6)    49,326 
Other assets   91,078    50,319    (7,338)(7)   134,059 
Total assets  $2,421,155   $1,953,052   $211,369   $4,585,576 
                     
LIABILITIES                    
Deposits:                    
Noninterest-bearing  $545,891   $565,570   $-   $1,111,461 
Interest-bearing   1,556,677    1,139,339    -    2,696,016 
Total deposits   2,102,568    1,704,909    -    3,807,477 
Borrowings   -    2,691    -    2,691 
Subordinated notes   -    7,000    -    7,000 
Other liabilities   17,320    11,987    -    29,307 
Total liabilities   2,119,888    1,726,587    -    3,846,475 
                     
STOCKHOLDERS' EQUITY                    
Common stock and additional paid-in capital   112,129    37,058    428,676(8)    577,863 
Retained earnings   208,263    233,283    (261,183)(9)   180,363 
Accumulated other comprehensive loss   (9,449)   (41,238)   41,238(10)    (9,449)
Treasury stock   (9,676)   (2,638)   2,638(11)    (9,676)
Total equity capital   301,267    226,465    211,369    739,101 
Total liabilities and equity capital  $2,421,155   $1,953,052   $211,369   $4,585,576 

 

 

 

 

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF INCOME

 

   For the Three Months Ended March 31, 2026 
   Esquire       Accounting     
(In thousands, except for per share data)   ("ESQ")    Signature    Adjustments    Pro Forma 
Interest income                    
Interest and fees on loans  $34,298   $20,213   $1,511(12)   $56,022 
Other interest income   4,735    4,027    2,204(13)    10,966 
Total interest income   39,033    24,240    3,715    66,988 
Interest expense                    
Deposits   5,024    5,226    -    10,250 
Subordinated notes   -    126    -    126 
Borrowings   5    115    -    120 
Total interest expense   5,029    5,467    -    10,496 
Net interest income   34,004    18,773    3,715    56,492 
Provision for credit losses   2,700    1,757    -    4,457 
Net interest income after provision for credit losses   31,304    17,016    3,715    52,035 
Noninterest income   6,455    2,534    -    8,989 
Noninterest expenses                    
Salaries and employee benefits   12,221    5,553    -    17,774 
Amortization of core deposit intangibles   -    -    2,598(14)    2,598 
Merger expenses   1,272    -    -    1,272 
Other noninterest expenses   7,164    4,468    -    11,632 
Total noninterest expenses   20,657    10,021    2,598    33,276 
Income before income tax expense   17,102    9,529    1,117    27,748 
Income tax expense   4,891    2,431    318(15)    7,640 
Net income  $12,211   $7,098   $799   $20,108 
Earnings per common share:                    
Basic  $1.48             $1.72(16) 
Diluted   1.40              1.64(16) 
Weighted average number of common shares outstanding:                    
Basic   8,253         3,447    11,700(16) 
Diluted   8,700         3,584    12,284(16) 

 

NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
   
(1) Reflects the estimated after tax merger expenses of $27.9 million for the year ended December 31, 2025 as if the Merger had been completed on January 1, 2025.  On a pretax basis, these expenses are estimated to be $35.5 million where an income tax rate of 28.50% was applied on the tax deductible portion of these expenses.
(2)

Reflects the estimated fair value credit adjustment of the PCD loan portfolio of $2.2 million, and the interest rate mark on the Signature loan portfolio of $16.6 million, partially offset by the elimination of Signature's unrecognized deferred loan fees, net of $880 thousand. These adjustments do not reflect potential restructurings, if any, related to the acquired portfolio. Accretable interest rate marks are recognized over the expected life of the loans.

(3)

Reflects an $18.2 million credit fair value mark, net of a $14.9 million reversal of the Signature allowance for credit losses. These adjustments do not reflect potential restructurings, if any, related to the acquired portfolio. Esquire adopted ASU 2025-08 as of January 1, 2026, and it was applied to the proforma financial statements presented.

(4) Reflects an estimated write-down of OREO to fair value.
(5)

Reflects $219.4 million in preliminary goodwill for the transaction based on an exchange ratio of 2.671x. The following table sets forth estimated goodwill associated with the merger of $219.4 million, calculated as the fair value of consideration paid in the acquisition of Signature, less amounts allocated to fair value of identifiable assets acquired and liabilities assumed. The preliminary purchase accounting allocation as of March 31, 2026 is as follows:

 

 

 

 

(In thousands except share data)    
     
Purchase price consideration:     
Signature Bancorporation shares to be exchanged for ESQ shares   1,290,525 
Exchange ratio   2.671 
ESQ shares issued to Signature Bancorporation shareholders   3,446,992 
Esquire stock price at July 31, 2026 market close  $129.22 
Purchase price determination of common stock issued in acquisition  $445,420 
Value of Signature Bancorporation stock options converted to options to acquire shares of ESQ common stock   20,315 
Purchase price consideration  $465,735 
      
Less: Net fair value adjustments to Signature net assets acquired:     
      
Net fair value adjustment to loans:     
Reversal of Signature loan deferred fees, net  $880 
PCD Loan Non Accretable Credit Adjustment   (2,214)
Interest rate adjustment to record loans at fair value   (16,626)
Less:Gross credit mark on loans   (18,194)
Plus:CECL reserve gross up adjustment   18,194 
Net fair value adjustment to loans   (17,960)
Adjustment to record allowance for credit losses at fair value:     
Reversal of Signature Allowance for credit losses   14,894 
Less:CECL reserve gross up adjustment   (18,194)
Adjustment to record allowance for credit losses at fair value   (3,300)
Fair value adjustment on OREO   (890)
Value of core deposit intangible   49,326 
Deferred taxes (net) on above tangible asset adjustments   5,981 
Deferred taxes on Signature Core Deposit Intangible   (13,318)
Deferred taxes (net)   (7,337)
Less: Net fair value adjustments to Signature net assets acquired  $19,839 
      
Less:Signature Stockholders' Equity   (226,465)
Goodwill recorded in acquisition  $219,431 

 

(6) Adjustments to record estimated core deposit intangible assets associated with the merger, which is amortized using the sum-of-the years' digits method over eight years.
(7) Reflects the estimate of net deferred tax assets related to the estimated fair value purchase accounting adjustments and the net impact related to the recording of the core deposit intangible.
(8) Reflects Esquire's stock-based purchase price consideration issued in exchange for Signature Bancorporation shares (as described in footnote (5)) and the elimination of Signature's common stock and additional paid-in capital.
(9) Reflects the elimination of $233.3 million of Signature retained earnings and $27.9 million of after-tax merger costs as described in footnote (1).
(10) Adjustment to eliminate Signature's accumulated other comprehensive loss.
(11) Adjustment to eliminate Signature's treasury stock.
(12) Accruing yield adjustment for the estimated loan fair value interest rate marks.  The yield adjustments are recognized over the expected life of the loan portfolio.
(13)

Reflects an accruing yield adjustment for estimated available for sale securities partially offset by the opportunity cost of cash payments on merger related costs. These adjustments do not reflect potential restructurings, if any, related to the acquired portfolio. The securities yield adjustments are recognized over the expected life of the acquired securities portfolio.

(14) Reflects the estimated amortization of other intangible assets from the acquired other intangible assets amortized using sum-of-years-digits over eight years.
(15) Reflects income tax expense on adjustments utilizing a 28.50 % rate which does not consider discrete tax items recognized by Esquire and Signature.
(16) Reflects the number of basic and diluted common shares to be issued by ESQ in its purchase consideration for Signature, which is comprised of Signature shares and contractual conversion of Signature stock options being exchanged for ESQ common stock at an exchange ratio of 2.671x, as discussed in footnote (5).