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). |