| |
Maryland
(State or other jurisdiction of
incorporation or organization) |
| |
6029
(Primary Standard Industrial
Classification Code Number) |
| |
27-5107901
(I.R.S. Employer
Identification No.) |
|
| |
John J. Gorman, Esq.
Marc P. Levy, Esq. Gregory M. Sobczak, Esq. Luse Gorman, PC 5335 Wisconsin Avenue, N.W., Suite 780 Washington, D.C. 20015 (202) 274-2000 |
| |
Gary Lax, Esq.
Senior Vice President and Chief Legal Officer Esquire Financial Holdings, Inc. 100 Jericho Quadrangle Suite 100 Jericho, New York 11753 (516) 535-2002 |
| |
Michael G. O’Rourke
President and Chief Executive Officer Signature Bancorporation, Inc. 9450 W. Bryn Mawr, Suite 300 Rosemont, Illinois 60018 (847) 268-1001 |
| |
James W. Morrissey, Esq.
Jennifer Durham King, Esq. Vedder Price P.C. 222 North LaSalle Street, Suite 2600 Chicago, Illinois 60601 (312) 609-7500 |
|
| |
Large accelerated filer
☐
|
| |
Accelerated filer
☒
|
|
| |
Non-accelerated filer
☐
|
| |
Smaller reporting company
☐
|
|
| | | | |
Emerging growth company
☐
|
|
| |
|
| |
|
|
| |
Andrew C. Sagliocca
Vice Chairman, Chief Executive Officer and President Esquire Financial Holdings, Inc. |
| |
Michael G. O’Rourke
President and Chief Executive Officer Signature Bancorporation, Inc. |
|
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Risks Relating to Signature’s Business
|
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| | | | | 137 | | | |
| | | | | 137 | | | |
| | | | | 138 | | | |
| | | | | 139 | | | |
| | | | | A-1 | | | |
| | | | | B-1 | | | |
| | | | | C-1 | | | |
| | | | | D-1 | | | |
| | | | | E-1 | | | |
| | | | | F-1 | | | |
|
Schedule A Loans Recovery Rate
|
| |
Implied
Exchange Ratio |
| |||
|
100%
|
| | |
|
2.800x
|
| |
|
95%
|
| | |
|
2.783x
|
| |
|
90%
|
| | |
|
2.766x
|
| |
|
85%
|
| | |
|
2.749x
|
| |
|
80%
|
| | |
|
2.732x
|
| |
|
75%
|
| | |
|
2.715x
|
| |
|
70%
|
| | |
|
2.698x
|
| |
|
65%
|
| | |
|
2.681x
|
| |
|
60%
|
| | |
|
2.664x
|
| |
|
55%
|
| | |
|
2.647x
|
| |
|
50%
|
| | |
|
2.630x
|
| |
|
45%
|
| | |
|
2.614x
|
| |
|
40%
|
| | |
|
2.598x
|
| |
|
35%
|
| | |
|
2.581x
|
| |
|
30%
|
| | |
|
2.565x
|
| |
|
25%
|
| | |
|
2.549x
|
| |
|
20%
|
| | |
|
2.533x
|
| |
|
15%
|
| | |
|
2.516x
|
| |
|
10% or less
|
| | |
|
2.500x
|
| |
|
Schedule A Loans Recovery Rate
|
| |
Implied
Exchange Ratio |
| |||
|
100%
|
| | |
|
2.800x
|
| |
|
95%
|
| | |
|
2.783x
|
| |
|
90%
|
| | |
|
2.766x
|
| |
|
85%
|
| | |
|
2.749x
|
| |
|
80%
|
| | |
|
2.732x
|
| |
|
75%
|
| | |
|
2.715x
|
| |
|
70%
|
| | |
|
2.698x
|
| |
|
65%
|
| | |
|
2.681x
|
| |
|
60%
|
| | |
|
2.664x
|
| |
|
55%
|
| | |
|
2.647x
|
| |
|
50%
|
| | |
|
2.630x
|
| |
|
45%
|
| | |
|
2.614x
|
| |
|
40%
|
| | |
|
2.598x
|
| |
|
35%
|
| | |
|
2.581x
|
| |
|
30%
|
| | |
|
2.565x
|
| |
|
25%
|
| | |
|
2.549x
|
| |
|
20%
|
| | |
|
2.533x
|
| |
|
15%
|
| | |
|
2.516x
|
| |
|
10% or less
|
| | |
|
2.500x
|
| |
| | | |
Esquire
Common Stock |
| |
Implied Value
of One Share of Signature Common Stock(1) |
| |
Implied Value
of One Share of Signature Common Stock(2) |
| |
Implied Value
of One Share of Signature Common Stock(3) |
| ||||||||||||
|
March 11, 2026
|
| | | $ | 99.04 | | | | | $ | 260.48 | | | | | $ | 247.60 | | | | | $ | 277.32 | | |
|
[ ], 2026
|
| | | $ | [ ] | | | | | $ | [ ] | | | | | $ | [ ] | | | | | $ | [ ] | | |
|
Name of Beneficial Owner
|
| |
Shares of
Signature Common Stock Beneficially Owned(1) |
| |
Stock
Options(1) |
| |
Total
Beneficial Ownership(1) |
| |
Percent of
Beneficial Ownership(1) |
| ||||||||||||
| Directors and Executive Officers | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Michael O’Rourke
|
| | | | 31,957 | | | | | | 8,741 | | | | | | 40,698 | | | | | | 3.1% | | |
|
John McEnroe
|
| | | | 11,380 | | | | | | 3,398 | | | | | | 14,778 | | | | | | 1.1 | | |
|
Kevin Bastuga
|
| | | | 31,957(2) | | | | | | 8,741 | | | | | | 40,698(2) | | | | | | 3.1 | | |
|
Bryan Duncan
|
| | | | 31,957 | | | | | | 8,741 | | | | | | 40,698 | | | | | | 3.1 | | |
|
Kelly Douglass
|
| | | | 2,000 | | | | | | 462 | | | | | | 2,462 | | | | | | * | | |
|
John Waller
|
| | | | 44,014 | | | | | | 3,398 | | | | | | 47,412 | | | | | | 3.6 | | |
|
George Cochran
|
| | | | 34,890 | | | | | | 3,398 | | | | | | 38,288 | | | | | | 3.0 | | |
|
Leonard Caronia
|
| | | | 37,014 | | | | | | 3,398 | | | | | | 40,412 | | | | | | 3.1 | | |
|
All Directors and Executive Officers as a group
(8 in number) |
| | | | 225,169 | | | | | | 40,277 | | | | | | 265,446 | | | | | | 20.1% | | |
|
Summary Compensation Table
|
| ||||||||||||||||||||||||||||||||||||
|
Name and Principal Position
|
| |
Year
|
| |
Salary
($) |
| |
Bonus
($) |
| |
Option
Awards ($)(1) |
| |
All Other
Compensation ($)(2) |
| |
Total
($) |
| ||||||||||||||||||
|
Michael G. O’Rourke
President and Chief Executive Officer |
| | | | 2025 | | | | | | 386,000 | | | | | | 1,730,000 | | | | | | 82,225 | | | | | | 54,921 | | | | | | 2,253,146 | | |
| | | | 2024 | | | | | | 371,880 | | | | | | 1,650,000 | | | | | | 54,523 | | | | | | 47,431 | | | | | | 2,123,834 | | | ||
| | | |
Option Awards
|
| |||||||||||||||||||||
|
Name
|
| |
Grant
Date |
| |
Number of
Securities Underlying Unexercised Options Exercisable(1) |
| |
Number of
Securities Underlying Unexercised Options Unexercisable(1) |
| |
Option
Exercise Price ($) |
| |
Option
Expiration Date |
| |||||||||
|
Michael G. O’Rourke
|
| |
10/1/2016
|
| | | | 2,229 | | | | | | — | | | | | | 52.25 | | | |
10/1/2026
|
|
| |
8/1/2017
|
| | | | 1,800 | | | | | | — | | | | | | 59.85 | | | |
8/1/2027
|
| ||
| |
7/1/2018
|
| | | | 1,549 | | | | | | — | | | | | | 79.20 | | | |
7/1/2028
|
| ||
| |
10/1/2019
|
| | | | 1,000 | | | | | | — | | | | | | 98.10 | | | |
10/1/2029
|
| ||
| |
10/1/2020
|
| | | | 740 | | | | | | — | | | | | | 94.50 | | | |
10/1/2030
|
| ||
| |
7/1/2021
|
| | | | 600 | | | | | | 150 | | | | | | 114.75 | | | |
7/1/2031
|
| ||
| |
7/1/2022
|
| | | | 408 | | | | | | 272 | | | | | | 139.50 | | | |
7/1/2032
|
| ||
| |
7/1/2023
|
| | | | 276 | | | | | | 414 | | | | | | 166.50 | | | |
7/1/2033
|
| ||
| |
7/1/2024
|
| | | | 139 | | | | | | 556 | | | | | | 189.00 | | | |
7/1/2034
|
| ||
| |
7/1/2025
|
| | | | — | | | | | | 697 | | | | | | 216.00 | | | |
7/1/2035
|
| ||
|
Name
|
| |
Fees Earned
or Paid in Cash ($) |
| |
Option
Awards ($)(1) |
| |
Total
($) |
| |||||||||
|
Leonard S. Caronia
|
| | | | 65,750 | | | | | | 41,997 | | | | | | 107,747 | | |
|
Schedule A Loans
Recovery Rate |
| |
Implied
Exchange Ratio |
| |||
|
100%
|
| | |
|
2.800x
|
| |
|
95%
|
| | |
|
2.783x
|
| |
|
90%
|
| | |
|
2.766x
|
| |
|
85%
|
| | |
|
2.749x
|
| |
|
80%
|
| | |
|
2.732x
|
| |
|
75%
|
| | |
|
2.715x
|
| |
|
70%
|
| | |
|
2.698x
|
| |
|
65%
|
| | |
|
2.681x
|
| |
|
60%
|
| | |
|
2.664x
|
| |
|
55%
|
| | |
|
2.647x
|
| |
|
50%
|
| | |
|
2.630x
|
| |
|
45%
|
| | |
|
2.614x
|
| |
|
40%
|
| | |
|
2.598x
|
| |
|
35%
|
| | |
|
2.581x
|
| |
|
30%
|
| | |
|
2.565x
|
| |
|
25%
|
| | |
|
2.549x
|
| |
|
20%
|
| | |
|
2.533x
|
| |
|
15%
|
| | |
|
2.516x
|
| |
|
10% or less
|
| | |
|
2.500x
|
| |
| |
Transaction Price Per Share / Tangible Book Value Per Share
|
| | | | 164% | | |
| |
Transaction Price Per Share / 2025 Earnings per Share
|
| | | | 9.7x | | |
| |
Transaction Price Per Share / 2026 Estimated Earnings per Share(1)
|
| | | | 9.7x | | |
| |
Tangible Book Premium / Core Deposits (CDs > $100K)(2)
|
| | | | 9.1% | | |
| |
Tangible Book Premium / Core Deposits (CDs > $250K)(3)
|
| | | | 9.1% | | |
|
$ value in millions
|
| |
Esquire
|
| |
Signature
|
| ||||||||||||||||||
| | | |
$
|
| |
%
|
| |
$
|
| |
%
|
| ||||||||||||
| Balance Sheet | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Net loans
|
| | | $ | 1,734 | | | | |
|
58%
|
| | | | $ | 1,265 | | | | |
|
42%
|
| |
|
Total assets
|
| | | $ | 2,366 | | | | |
|
54%
|
| | | | $ | 1,994 | | | | |
|
46%
|
| |
|
Total deposits
|
| | | $ | 2,063 | | | | |
|
55%
|
| | | | $ | 1,718 | | | | |
|
45%
|
| |
|
Total non-interest bearing deposits
|
| | | $ | 576 | | | | |
|
50%
|
| | | | $ | 579 | | | | |
|
50%
|
| |
|
Total equity
|
| | | $ | 290 | | | | |
|
57%
|
| | | | $ | 220 | | | | |
|
43%
|
| |
|
Tangible common equity
|
| | | $ | 290 | | | | |
|
57%
|
| | | | $ | 220 | | | | |
|
43%
|
| |
| Income Statement | | | | | | | | | | | | | | | | | | | | | | | | | |
|
2025 net income
|
| | | $ | 51 | | | | |
|
58%
|
| | | | $ | 37 | | | | |
|
42%
|
| |
|
Pro Forma Ownership(1)
|
| | | | | | | | | | 71% | | | | | | | | | | | | 29% | | |
| | | |
Beginning Value
March 10, 2025 |
| |
Ending Value
March 10, 2026 |
| ||||||
|
Esquire
|
| | | | 100% | | | | | | 141.4% | | |
|
Esquire Peer Group
|
| | | | 100% | | | | | | 111.7% | | |
|
S&P 500 Index
|
| | | | 100% | | | | | | 120.8% | | |
|
NASDAQ Bank Index
|
| | | | 100% | | | | | | 112.0% | | |
| | | |
Beginning Value
March 10, 2023 |
| |
Ending Value
March 10, 2026 |
| ||||||
|
Esquire
|
| | | | 100% | | | | | | 254.6% | | |
|
Esquire Peer Group
|
| | | | 100% | | | | | | 146.9% | | |
|
S&P 500 Index
|
| | | | 100% | | | | | | 175.6% | | |
|
NASDAQ Bank Index
|
| | | | 100% | | | | | | 130.4% | | |
| |
Bank7 Corp.
First Community Bankshares, Inc. GBank Financial Holdings Inc. Northrim BanCorp, Inc. |
| |
Orange County Bancorp, Inc.
Plumas Bancorp Timberland Bancorp, Inc. |
|
| | | |
Esquire
|
| |
Esquire
Peer Group Median |
| |
Esquire
Peer Group Mean |
| |
Esquire
Peer Group Low |
| |
Esquire
Peer Group High |
| |||||||||||||||
|
Total assets ($mm)
|
| | | | 2,366 | | | | | | 2,239 | | | | | | 2,397 | | | | | | 1,359 | | | | | | 3.290 | | |
|
Loans / Deposits (%)
|
| | | | 85.2 | | | | | | 84.4 | | | | | | 85.9 | | | | | | 81.6 | | | | | | 94.4 | | |
|
Non-performing assets(1) / Total assets (%)
|
| | | | 0.37(2) | | | | | | 0.43 | | | | | | 0.52 | | | | | | 0.23 | | | | | | 0.86 | | |
|
Tangible common equity/Tangible assets (%)
|
| | | | 12.24 | | | | | | 11.13 | | | | | | 11.08 | | | | | | 8.51 | | | | | | 12.71 | | |
|
Tier 1 Leverage Ratio (%)
|
| | | | 11.87(2) | | | | | | 12.61 | | | | | | 11.83 | | | | | | 8.77 | | | | | | 13.42 | | |
|
Total RBC Ratio (%)
|
| | | | 15.43(2) | | | | | | 16.70 | | | | | | 17.07 | | | | | | 13.95 | | | | | | 21.26 | | |
|
CRE / Total RBC Ratio (%)
|
| | | | 163.6(2) | | | | | | 276.0 | | | | | | 293.1 | | | | | | 195.8 | | | | | | 431.7 | | |
|
LTM Return on average assets (%)
|
| | | | 2.43 | | | | | | 1.61 | | | | | | 1.76 | | | | | | 1.52 | | | | | | 2.37 | | |
|
LTM Return on average tangible common equity (%)
|
| | | | 19.4 | | | | | | 15.3 | | | | | | 17.1 | | | | | | 12.7 | | | | | | 26.3 | | |
| | | |
Esquire
|
| |
Esquire
Peer Group Median |
| |
Esquire
Peer Group Mean |
| |
Esquire
Peer Group Low |
| |
Esquire
Peer Group High |
| |||||||||||||||
|
LTM Net interest margin (%)
|
| | | | 6.02 | | | | | | 4.42 | | | | | | 4.48 | | | | | | 3.82 | | | | | | 4.94 | | |
|
LTM Efficiency ratio (%)
|
| | | | 48.7 | | | | | | 55.4 | | | | | | 53.8 | | | | | | 40.2 | | | | | | 61.1 | | |
|
Price / Tangible book value (%)
|
| | | | 295 | | | | | | 158 | | | | | | 174 | | | | | | 120 | | | | | | 245 | | |
|
Price / LTM Earnings per share (x)
|
| | | | 17.0 | | | | | | 10.0 | | | | | | 11.7 | | | | | | 7.9 | | | | | | 19.6 | | |
|
Price / 2026E Earnings per share (x)
|
| | | | 15.8 | | | | | | 9.3 | | | | | | 10.3 | | | | | | 8.7 | | | | | | 13.7 | | |
|
Current Dividend Yield (%)
|
| | | | 0.8 | | | | | | 2.7 | | | | | | 2.4 | | | | | | 0.0 | | | | | | 3.1 | | |
|
Market capitalization ($mm)
|
| | | | 811 | | | | | | 406 | | | | | | 445 | | | | | | 304 | | | | | | 758 | | |
| |
ACNB Corporation
Bank7 Corp. Chain Bridge Bancorp, Inc. Esquire Financial Holdings, Inc. |
| |
Plumas Bancorp
The First Bancorp, Inc. Timberland Bancorp, Inc. |
|
| | | |
Signature
|
| |
Signature
Peer Group Median |
| |
Signature
Peer Group Mean |
| |
Signature
Peer Group Low |
| |
Signature
Peer Group High |
| |||||||||||||||
|
Total assets ($mm)
|
| | | | 1,994 | | | | | | 2,239 | | | | | | 2.388 | | | | | | 1,750 | | | | | | 3,228 | | |
|
Loans / Deposits (%)
|
| | | | 74.4 | | | | | | 86.7 | | | | | | 78.9 | | | | | | 17.5 | | | | | | 95.1 | | |
|
Non-performing assets(1) / Total assets (%)
|
| | | | 1.90(2) | | | | | | 0.37 | | | | | | 0.42 | | | | | | 0.00 | | | | | | 0.71 | | |
|
Tangible common equity/Tangible assets (%)
|
| | | | 11.02 | | | | | | 10.60 | | | | | | 10.82 | | | | | | 8.05 | | | | | | 12.71 | | |
|
Tier 1 Leverage Ratio (%)
|
| | | | 12.18(2) | | | | | | 11.40 | | | | | | 11.28 | | | | | | 8.84 | | | | | | 12.82 | | |
|
Total RBC Ratio (%)
|
| | | | 17.20(2) | | | | | | 16.04 | | | | | | 20.88 | | | | | | 14.02 | | | | | | 47.66 | | |
|
CRE / Total RBC Ratio (%)
|
| | | | 160.6(2) | | | | | | 221.1 | | | | | | 196.7 | | | | | | 20.6 | | | | | | 276.0 | | |
|
LTM Return on average assets (%)
|
| | | | 1.85(2) | | | | | | 1.52 | | | | | | 1.63 | | | | | | 1.08 | | | | | | 2.43 | | |
|
LTM Return on average tangible common equity (%)
|
| | | | 19.7(2) | | | | | | 14.5 | | | | | | 15.4 | | | | | | 12.7 | | | | | | 19.5 | | |
|
LTM Net interest margin (%)
|
| | | | 4.13(2) | | | | | | 4.23 | | | | | | 4.28 | | | | | | 2.63 | | | | | | 6.02 | | |
|
LTM Efficiency ratio (%)
|
| | | | 41.3 | | | | | | 52.2 | | | | | | 50.8 | | | | | | 40.2 | | | | | | 55.0 | | |
|
Price / Tangible book value (%)
|
| | | | — | | | | | | 148 | | | | | | 162 | | | | | | 120 | | | | | | 295 | | |
| | | |
Signature
|
| |
Signature
Peer Group Median |
| |
Signature
Peer Group Mean |
| |
Signature
Peer Group Low |
| |
Signature
Peer Group High |
| |||||||||||||||
|
Price / LTM Earnings per share (x)
|
| | | | — | | | | | | 11.0 | | | | | | 11.5 | | | | | | 8.8 | | | | | | 17.0 | | |
|
Price / 2026E Earnings per share (x)
|
| | | | — | | | | | | 9.3 | | | | | | 10.4 | | | | | | 8.4 | | | | | | 15.7 | | |
|
Current Dividend Yield (%)
|
| | | | — | | | | | | 2.7 | | | | | | 2.5 | | | | | | 0.0 | | | | | | 5.4 | | |
|
Market capitalization ($mm)
|
| | | | — | | | | | | 347 | | | | | | 410 | | | | | | 230 | | | | | | 811 | | |
|
Acquiror
|
| |
Target
|
|
| Burke & Herbert Financial Services Corp. | | | LINKBANCORP, Inc. | |
| Farmers National Banc Corp. | | | Middlefield Banc Corp. | |
| National Bank Holdings Corporation | | | Vista Bancshares Inc. | |
| Equity Bancshares, Inc. | | | Frontier Holdings, LLC | |
| Prosperity Bancshares, Inc. | | | American Bank Holding Corporation | |
| Glacier Bancorp, Inc. | | | Guaranty Bancshares, Inc. | |
| FB Financial Corporation | | | Southern States Bancshares, Inc. | |
| MetroCity Bankshares, Inc. | | | First IC Corporation | |
| Glacier Bancorp, Inc. | | | Bank of Idaho Holding Company | |
| German American Bancorp, Inc. | | | Heartland BancCorp | |
| United Bankshares, Inc. | | | Piedmont Bancorp, Inc. | |
| Wintrust Financial Corporation | | | Macatawa Bank Corporation | |
| Southern California Bancorp | | | California BanCorp | |
| | | |
Esquire/
Signature |
| |
Nationwide Precedent Transactions
|
| ||||||||||||||||||||||||
| | | |
Median
|
| |
Mean
|
| |
Low
|
| |
High
|
| ||||||||||||||||||
|
Transaction Price / LTM Earnings Per Share (x)
|
| | | | 9.7(1) | | | | | | 12.3 | | | | | | 12.3 | | | | | | 8.3 | | | | | | 17.3 | | |
|
Transaction Price / Tangible Book Value Per Share (%)
|
| | | | 164(1) | | | | | | 157 | | | | | | 162 | | | | | | 117 | | | | | | 226 | | |
|
Pay-to-Trade Ratio (%)
|
| | | | 56(1) | | | | | | 93 | | | | | | 94 | | | | | | 74 | | | | | | 127 | | |
|
Tangible Book Value Premium to Core Deposits (%)
|
| | | | 9.1(1) | | | | | | 8.4 | | | | | | 8.6 | | | | | | 2.9 | | | | | | 15.7 | | |
|
1-Day Market Premium (%)
|
| | | | — | | | | | | 26.6 | | | | | | 36.6 | | | | | | (0.1) | | | | | | 81.7 | | |
|
Discount Rate
|
| |
9.5x
|
| |
11.0x
|
| |
12.5x
|
| |
14.0x
|
| |
15.5x
|
| |
17.0x
|
| ||||||||||||||||||
|
7.0%
|
| | | $ | 65.87 | | | | | $ | 75.77 | | | | | $ | 85.66 | | | | | $ | 95.55 | | | | | $ | 105.45 | | | | | $ | 115.34 | | |
|
8.0%
|
| | | $ | 62.94 | | | | | $ | 72.38 | | | | | $ | 81.83 | | | | | $ | 91.27 | | | | | $ | 100.72 | | | | | $ | 110.16 | | |
|
9.0%
|
| | | $ | 60.17 | | | | | $ | 69.18 | | | | | $ | 78.20 | | | | | $ | 87.22 | | | | | $ | 96.24 | | | | | $ | 105.26 | | |
|
10.0%
|
| | | $ | 57.54 | | | | | $ | 66.16 | | | | | $ | 74.77 | | | | | $ | 83.39 | | | | | $ | 92.00 | | | | | $ | 100.62 | | |
|
11.0%
|
| | | $ | 55.05 | | | | | $ | 63.29 | | | | | $ | 71.52 | | | | | $ | 79.76 | | | | | $ | 87.99 | | | | | $ | 96.23 | | |
|
Discount Rate
|
| |
160%
|
| |
180%
|
| |
200%
|
| |
220%
|
| |
240%
|
| |
260%
|
| ||||||||||||||||||
|
7.0%
|
| | | $ | 81.92 | | | | | $ | 91.75 | | | | | $ | 101.58 | | | | | $ | 111.40 | | | | | $ | 121.23 | | | | | $ | 131.06 | | |
|
8.0%
|
| | | $ | 78.26 | | | | | $ | 87.64 | | | | | $ | 97.02 | | | | | $ | 106.40 | | | | | $ | 115.79 | | | | | $ | 125.17 | | |
|
9.0%
|
| | | $ | 74.79 | | | | | $ | 83.75 | | | | | $ | 92.71 | | | | | $ | 101.67 | | | | | $ | 110.63 | | | | | $ | 119.59 | | |
|
10.0%
|
| | | $ | 71.51 | | | | | $ | 80.07 | | | | | $ | 88.64 | | | | | $ | 97.20 | | | | | $ | 105.76 | | | | | $ | 114.32 | | |
|
11.0%
|
| | | $ | 68.41 | | | | | $ | 76.59 | | | | | $ | 84.77 | | | | | $ | 92.95 | | | | | $ | 101.14 | | | | | $ | 109.32 | | |
|
Annual Estimate Variance
|
| |
9.5x
|
| |
11.0x
|
| |
12.5x
|
| |
14.0x
|
| |
15.5x
|
| |
17.0x
|
| ||||||||||||||||||
|
(20.0)%
|
| | | $ | 48.26 | | | | | $ | 55.40 | | | | | $ | 62.54 | | | | | $ | 69.69 | | | | | $ | 76.83 | | | | | $ | 83.97 | | |
|
(10.0)%
|
| | | $ | 53.91 | | | | | $ | 61.95 | | | | | $ | 69.98 | | | | | $ | 78.02 | | | | | $ | 86.05 | | | | | $ | 94.09 | | |
|
0.0%
|
| | | $ | 59.57 | | | | | $ | 68.49 | | | | | $ | 77.42 | | | | | $ | 86.35 | | | | | $ | 95.28 | | | | | $ | 104.20 | | |
|
10.0%
|
| | | $ | 65.22 | | | | | $ | 75.04 | | | | | $ | 84.86 | | | | | $ | 94.68 | | | | | $ | 104.50 | | | | | $ | 114.32 | | |
|
20.0%
|
| | | $ | 70.88 | | | | | $ | 81.59 | | | | | $ | 92.30 | | | | | $ | 103.01 | | | | | $ | 113.72 | | | | | $ | 124.44 | | |
|
Discount Rate
|
| |
9.5x
|
| |
10.5x
|
| |
11.5x
|
| |
12.5x
|
| |
13.5x
|
| |
14.5x
|
| ||||||||||||||||||
|
8.0%
|
| | | $ | 241.16 | | | | | $ | 266.55 | | | | | $ | 291.93 | | | | | $ | 317.32 | | | | | $ | 342.70 | | | | | $ | 368.09 | | |
|
9.0%
|
| | | $ | 230.30 | | | | | $ | 254.54 | | | | | $ | 278.79 | | | | | $ | 303.03 | | | | | $ | 327.27 | | | | | $ | 351.51 | | |
|
10.0%
|
| | | $ | 220.02 | | | | | $ | 243.18 | | | | | $ | 266.34 | | | | | $ | 289.50 | | | | | $ | 312.66 | | | | | $ | 335.82 | | |
|
11.0%
|
| | | $ | 210.29 | | | | | $ | 232.42 | | | | | $ | 254.56 | | | | | $ | 276.69 | | | | | $ | 298.83 | | | | | $ | 320.96 | | |
|
12.0%
|
| | | $ | 201.07 | | | | | $ | 222.23 | | | | | $ | 243.40 | | | | | $ | 264.56 | | | | | $ | 285.72 | | | | | $ | 306.89 | | |
|
Discount Rate
|
| |
130%
|
| |
140%
|
| |
145%
|
| |
155%
|
| |
160%
|
| |
170%
|
| ||||||||||||||||||
|
8.0%
|
| | | $ | 297.88 | | | | | $ | 320.79 | | | | | $ | 332.25 | | | | | $ | 355.16 | | | | | $ | 366.62 | | | | | $ | 389.53 | | |
|
9.0%
|
| | | $ | 284.46 | | | | | $ | 306.34 | | | | | $ | 317.28 | | | | | $ | 339.16 | | | | | $ | 350.11 | | | | | $ | 371.99 | | |
|
10.0%
|
| | | $ | 271.76 | | | | | $ | 292.67 | | | | | $ | 303.12 | | | | | $ | 324.03 | | | | | $ | 334.48 | | | | | $ | 355.38 | | |
|
11.0%
|
| | | $ | 259.74 | | | | | $ | 279.72 | | | | | $ | 289.71 | | | | | $ | 309.69 | | | | | $ | 319.68 | | | | | $ | 339.66 | | |
|
12.0%
|
| | | $ | 248.35 | | | | | $ | 267.45 | | | | | $ | 277.01 | | | | | $ | 296.11 | | | | | $ | 305.66 | | | | | $ | 324.77 | | |
|
Annual Estimate Variance
|
| |
9.5x
|
| |
10.5x
|
| |
11.5x
|
| |
12.5x
|
| |
13.5x
|
| |
14.5x
|
| ||||||||||||||||||
|
(20.0%)
|
| | | $ | 169.27 | | | | | $ | 187.09 | | | | | $ | 204.91 | | | | | $ | 222.73 | | | | | $ | 240.54 | | | | | $ | 258.36 | | |
|
(10.0%)
|
| | | $ | 190.43 | | | | | $ | 210.48 | | | | | $ | 230.52 | | | | | $ | 250.57 | | | | | $ | 270.61 | | | | | $ | 290.66 | | |
|
0.0%
|
| | | $ | 211.59 | | | | | $ | 233.86 | | | | | $ | 256.13 | | | | | $ | 278.41 | | | | | $ | 300.68 | | | | | $ | 322.95 | | |
|
10.0%
|
| | | $ | 232.75 | | | | | $ | 257.25 | | | | | $ | 281.75 | | | | | $ | 306.25 | | | | | $ | 330.75 | | | | | $ | 355.25 | | |
|
20.0%
|
| | | $ | 253.91 | | | | | $ | 280.63 | | | | | $ | 307.36 | | | | | $ | 334.09 | | | | | $ | 360.82 | | | | | $ | 387.54 | | |
| | | |
Implied per Share Value
|
| | | | | | | | | | | | | |||||||||||||||||||||
| | | |
Esquire
|
| |
Signature
|
| |
Implied Exchange Ratio
|
| |||||||||||||||||||||||||||
|
Metric
|
| |
Low
|
| |
High
|
| |
Low
|
| |
High
|
| |
Low/High
|
| |
High/Low
|
| ||||||||||||||||||
|
Price per Share
|
| | | $ | 85.86 | | | | | $ | 118.57 | | | | | $ | 265.95 | | | | | $ | 340.40 | | | | | | 2.24x | | | | | | 3.96x | | |
|
Adjusted Exchange Ratio in the Transaction
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
2.73x
|
| |||||||||
|
Selected Companies for Esquire
|
| |
Price / TBVPS
|
| |
Price / LTM EPS
|
| |
Price / 2026E EPS
|
| |||||||||
|
Community Financial System, Inc.
|
| | | | 288% | | | | | | 14.6x | | | | | | 12.4x | | |
|
First Financial Bankshares, Inc.
|
| | | | 271% | | | | | | 17.2x | | | | | | 15.3x | | |
|
BancFirst Corporation
|
| | | | 220% | | | | | | 15.2x | | | | | | 15.5x | | |
|
Park National Corporation
|
| | | | 214% | | | | | | 14.3x | | | | | | 14.2x | | |
|
Stock Yards Bancorp, Inc.
|
| | | | 219% | | | | | | 13.6x | | | | | | 13.6x | | |
|
Selected Companies for Esquire
|
| |
Price / TBVPS
|
| |
Price / LTM EPS
|
| |
Price / 2026E EPS
|
| |||||||||
|
Nicolet Bankshares, Inc.
|
| | | | 259% | | | | | | 15.4x | | | | | | 12.6x | | |
|
City Holding Company
|
| | | | 261% | | | | | | 13.3x | | | | | | 13.2x | | |
|
Triumph Financial, Inc.
|
| | | | 282% | | | | | | NM | | | | | | 37.5x | | |
|
Coastal Financial Corporation
|
| | | | 242% | | | | | | 25.4x | | | | | | 14.7x | | |
|
First Community Bankshares, Inc.
|
| | | | 211% | | | | | | 15.0x | | | | | | 14.7x | | |
|
Cass Information Systems, Inc.
|
| | | | 260% | | | | | | 17.2x | | | | | | 16.0x | | |
|
Selected Companies for Signature
|
| |
Price / TBVPS
|
| |
Price / LTM EPS
|
| |
Price / 2026E EPS
|
| |||||||||
|
ChoiceOne Financial Services, Inc.
|
| | | | 138% | | | | | | 14.0x | | | | | | 8.0x | | |
|
Civista Bancshares, Inc.
|
| | | | 115% | | | | | | 8.5x | | | | | | 8.6x | | |
|
West Bancorporation, Inc.
|
| | | | 152% | | | | | | 12.4x | | | | | | 9.4x | | |
|
Farmers & Merchants Bancorp, Inc.
|
| | | | 125% | | | | | | 10.5x | | | | | | 9.1x | | |
|
LCNB Corp.
|
| | | | 135% | | | | | | 10.3x | | | | | | 9.5x | | |
|
Isabella Bank Corporation
|
| | | | 184% | | | | | | 17.9x | | | | | | 12.7x | | |
|
CF Bankshares Inc.
|
| | | | 104% | | | | | | 11.0x | | | | | | 8.0x | | |
|
Finward Bancorp
|
| | | | 106% | | | | | | 19.7x | | | | | | 14.0x | | |
|
Citizens Community Bancorp, Inc.
|
| | | | 113% | | | | | | 12.5x | | | | | | 10.5x | | |
|
SB Financial Group, Inc.
|
| | | | 113% | | | | | | 9.2x | | | | | | 8.2x | | |
| | | |
Selected Companies for
Esquire |
| |
Selected Companies for
Signature |
| ||||||||||||||||||
|
Metric
|
| |
25th
Percentile |
| |
75th
Percentile |
| |
25th
Percentile |
| |
75th
Percentile |
| ||||||||||||
|
Tangible Book Value per Share (Adjusted for Schedule A Loan loss)
|
| | | | 220% | | | | | | 266% | | | | | | 113% | | | | | | 137% | | |
|
LTM Earnings per Share
|
| | | | 14.4x | | | | | | 16.7x | | | | | | 10.3x | | | | | | 13.6x | | |
|
2026E Earnings per Share
|
| | | | 13.4x | | | | | | 15.4x | | | | | | 8.3x | | | | | | 10.2x | | |
|
2026E EPS (Excl. Sched. A Loan loss)
|
| | | | 13.4x | | | | | | 15.4x | | | | | | 8.3x | | | | | | 10.2x | | |
| | | |
Implied Per Share Values
|
| | | | | | | | | | | | | |||||||||||||||||||||
| | | |
Selected Companies
for Esquire |
| |
Selected Companies
for Signature |
| |
Implied Exchange
Ratio |
| |||||||||||||||||||||||||||
|
Metric
|
| |
25th
Percentile |
| |
75th
Percentile |
| |
25th
Percentile |
| |
75th
Percentile |
| |
Low/High
|
| |
High/Low
|
| ||||||||||||||||||
|
TBV per Share (Adjusted for Schedule A Loan loss)
|
| | | $ | 74.35 | | | | | $ | 90.08 | | | | | $ | 184.03 | | | | | $ | 224.16 | | | | | | 2.04x | | | | | | 3.01x | | |
|
LTM Earnings per Share
|
| | | $ | 84.43 | | | | | $ | 98.23 | | | | | $ | 289.30 | | | | | $ | 380.20 | | | | | | 2.95x | | | | | | 4.50x | | |
|
2026E Earnings per Share
|
| | | $ | 85.21 | | | | | $ | 97.76 | | | | | $ | 191.59 | | | | | $ | 236.39 | | | | | | 1.96x | | | | | | 2.77x | | |
|
2026E EPS (Excl. Schedule A Loan loss)
|
| | | $ | 85.21 | | | | | $ | 97.76 | | | | | $ | 248.87 | | | | | $ | 307.07 | | | | | | 2.55x | | | | | | 3.60x | | |
|
Adjusted Exchange Ratio in the Transaction
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
2.73x
|
| |||||||||
| |
Date
Announced |
| |
Acquiror
|
| |
Target
|
| |
Deal
Value ($MM) |
| |
DV / TBV
|
| |
DV /
LTM Net Income |
| |
Core
Deposit Premium |
| ||||||||||||
| |
11/12/25
|
| |
Richmond Mutual Bancorporation, Inc.
|
| | Farmers Bancorp | | | | | 85 | | | | | | 112% | | | | | | 9.2x | | | | | | 1.3% | | |
| |
10/30/25
|
| | First Mid Bancshares, Inc. | | | Two Rivers Financial Group, Inc. | | | | | 93 | | | | | | 110% | | | | | | 10.6x | | | | | | 0.9% | | |
| |
10/22/25
|
| | Farmers National Banc Corp. | | | Middlefield Banc Corp. | | | | | 297 | | | | | | 162% | | | | | | 14.0x | | | | | | 7.6% | | |
| |
10/20/25
|
| | HBT Financial, Inc. | | | CNB Bank Shares, Inc. | | | | | 170 | | | | | | 120% | | | | | | 10.5x | | | | | | 2.5% | | |
| |
09/25/25
|
| | First Merchants Corporation | | |
First Savings Financial Group, Inc.
|
| | | | 241 | | | | | | 135% | | | | | | 11.2x | | | | | | 4.4% | | |
| |
09/02/25
|
| | Equity Bancshares, Inc. | | | Frontier Holdings, LLC* | | | | | 122 | | | | | | 117% | | | | | | 13.8x | | | | | | 3.0% | | |
| |
08/11/25
|
| | First Financial Bancorp. | | | BankFinancial Corporation | | | | | 142 | | | | | | 91% | | | | | | NM | | | | | | NM | | |
| |
07/18/25
|
| | Bank First Corporation | | | Centre 1 Bancorp, Inc. | | | | | 174 | | | | | | 231% | | | | | | 28.6x | | | | | | 8.3% | | |
| |
06/23/25
|
| | First Financial Bancorp. | | | Westfield Bancorp | | | | | 324 | | | | | | 142% | | | | | | 17.4x | | | | | | 6.1% | | |
| |
02/25/25
|
| | Old Second Bancorp, Inc. | | | Bancorp Financial, Inc. | | | | | 197 | | | | | | 131% | | | | | | 38.7x | | | | | | 7.4% | | |
|
Metric
|
| |
Signature
Metrics ($000s) |
| |
Selected Transactions Metrics
|
| |
Implied Exchange Ratio
|
| |||||||||||||||||||||
| |
25th
Percentile |
| |
75th
Percentile |
| |
25th
Percentile |
| |
75th
Percentile |
| ||||||||||||||||||||
|
Tangible Book Value (Adjusted for Schedule A Loan loss)
|
| | | $ | 210,600 | | | | | | 114% | | | | | | 140% | | | | | | 1.85x | | | | | | 2.29x | | |
|
LTM Net Income
|
| | | $ | 37,183 | | | | | | 10.6x | | | | | | 17.4x | | | | | | 2.95x | | | | | | 4.85x | | |
|
Premium to Core Deposits
|
| | | $ | 1,707,321 | | | | | | 2.5% | | | | | | 7.4% | | | | | | 1.91x | | | | | | 2.52x | | |
|
Adjusted Exchange Ratio in the Transaction
|
| | | | | | | | | | | | | | | | | | | |
2.73x
|
| |||||||||
| | | |
Relative Contribution
|
| |
Implied Exchange
Ratio |
| ||||||||||||
|
Metric
|
| |
Esquire
|
| |
Signature
|
| ||||||||||||
|
Total Assets
|
| | | | 54.2% | | | | | | 45.8% | | | | | | 5.48x | | |
|
Total Gross Loans
|
| | | | 57.9% | | | | | | 42.1% | | | | | | 4.73x | | |
|
Total Deposits
|
| | | | 54.6% | | | | | | 45.4% | | | | | | 5.41x | | |
|
Tangible Book Value (Adjusted for Schedule A Loan loss)
|
| | | | 57.9% | | | | | | 42.1% | | | | | | 4.73x | | |
|
LTM Net Income
|
| | | | 57.7% | | | | | | 42.3% | | | | | | 4.76x | | |
|
2026E Net Income
|
| | | | 64.5% | | | | | | 35.5% | | | | | | 3.60x | | |
|
2026E Net Income (Excl. Sched. A Loan loss)
|
| | | | 58.3% | | | | | | 41.7% | | | | | | 4.66x | | |
|
LTM Noninterest Income
|
| | | | 73.7% | | | | | | 26.3% | | | | | | 2.36x | | |
|
LTM Operating Revenue
|
| | | | 61.7% | | | | | | 38.3% | | | | | | 4.05x | | |
|
Adjusted Exchange Ratio in the Transaction
|
| | | | | | | | | | | | | | | | 2.73x | | |
|
For the Year Ended
|
| |
2026E
|
| |
2027E
|
| ||||||
|
EPS
|
| | | $ | 6.35 | | | | | $ | 6.95 | | |
|
For the Year Ended
|
| |
2026E
|
| |||
|
EPS
|
| | | $ | 28.99 | | |
|
Net Income ($000s)
|
| | | $ | 37,400 | | |
|
For the Year Ended
|
| |
2026E
|
| |||
|
EPS
|
| | | $ | 30.06 | | |
|
Net Income ($000s)
|
| | | $ | 40,000 | | |
| | | |
December 31, 2025
|
| |||||||||||||||||||||
|
(in thousands)
|
| |
Esquire
(“ESQ”) |
| |
Signature
|
| |
Accounting
Adjustments |
| |
Pro Forma
|
| ||||||||||||
| ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Cash and cash equivalents
|
| | | $ | 235,887 | | | | | $ | 308,642 | | | | | $ | (27,900)(1) | | | | | $ | 516,629 | | |
|
Investment securities
|
| | | | 306,698 | | | | | | 374,464 | | | | | | — | | | | | | 681,162 | | |
|
Loans held for investment
|
| | | | 1,758,427 | | | | | | 1,278,362 | | | | | | (8,344)(2) | | | | | | 3,028,445 | | |
|
Less: allowance for credit losses
|
| | | | 24,022 | | | | | | 13,038 | | | | | | 35,208(3) | | | | | | 72,268 | | |
|
Loans, net of allowance
|
| | | | 1,734,405 | | | | | | 1,265,324 | | | | | | (43,552) | | | | | | 2,956,177 | | |
|
Goodwill
|
| | | | — | | | | | | — | | | | | | 185,209(4) | | | | | | 185,209 | | |
|
Core deposit intangibles
|
| | | | — | | | | | | — | | | | | | 36,311(5) | | | | | | 36,311 | | |
|
Other assets
|
| | | | 88,671 | | | | | | 46,023 | | | | | | 2,112(6) | | | | | | 136,806 | | |
|
Total assets
|
| | | $ | 2,365,661 | | | | | $ | 1,994,453 | | | | | $ | 152,180 | | | | | $ | 4,512,294 | | |
| LIABILITIES | | | | | | | | | | | | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Noninterest-bearing
|
| | | $ | 576,455 | | | | | $ | 578,253 | | | | | $ | — | | | | | $ | 1,154,708 | | |
|
Interest-bearing
|
| | | | 1,486,552 | | | | | | 1,140,132 | | | | | | 170(7) | | | | | | 2,626,854 | | |
|
Total deposits
|
| | | | 2,063,007 | | | | | | 1,718,385 | | | | | | 170 | | | | | | 3,781,562 | | |
|
Borrowings
|
| | | | — | | | | | | 17,691 | | | | | | — | | | | | | 17,691 | | |
|
Subordinated notes
|
| | | | — | | | | | | 7,000 | | | | | | — | | | | | | 7,000 | | |
|
Other liabilities
|
| | | | 13,056 | | | | | | 31,576 | | | | | | — | | | | | | 44,632 | | |
|
Total liabilities
|
| | | | 2,076,063 | | | | | | 1,774,652 | | | | | | 170 | | | | | | 3,850,885 | | |
| STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Common stock and additional paid-in capital
|
| | | | 109,976 | | | | | | 36,910 | | | | | | 362,801(8) | | | | | | 509,687 | | |
|
Retained earnings
|
| | | | 197,787 | | | | | | 226,184 | | | | | | (254,084)(9) | | | | | | 169,887 | | |
|
Accumulated other comprehensive loss
|
| | | | (8,489) | | | | | | (40,642) | | | | | | 40,642(10) | | | | | | (8,489) | | |
|
Treasury stock
|
| | | | (9,676) | | | | | | (2,651) | | | | | | 2,651(11) | | | | | | (9,676) | | |
|
Total equity capital
|
| | | | 289,598 | | | | | | 219,801 | | | | | | 152,010 | | | | | | 661,409 | | |
|
Total liabilities and equity capital
|
| | | $ | 2,365,661 | | | | | $ | 1,994,453 | | | | | $ | 152,180 | | | | | $ | 4,512,294 | | |
| | | |
For the Year Ended December 31, 2025
|
| |||||||||||||||||||||
|
(In thousands, except for per share data)
|
| |
Esquire
(“ESQ”) |
| |
Signature
|
| |
Accounting
Adjustments |
| |
Pro Forma
|
| ||||||||||||
| Interest income | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Interest and fees on loans
|
| | | $ | 119,576 | | | | | $ | 86,405 | | | | | $ | 2,804(12) | | | | | $ | 208,785 | | |
|
Other interest income
|
| | | | 19,841 | | | | | | 23,432 | | | | | | 8,816(13) | | | | | | 52,089 | | |
|
Total interest income
|
| | | | 139,417 | | | | | | 109,837 | | | | | | 11,620 | | | | | | 260,874 | | |
| Interest expense | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Deposits
|
| | | | 17,932 | | | | | | 26,795 | | | | | | (170)(14) | | | | | | 44,557 | | |
|
Subordinated notes
|
| | | | — | | | | | | 541 | | | | | | — | | | | | | 541 | | |
|
Borrowings
|
| | | | 4 | | | | | | 1,531 | | | | | | — | | | | | | 1,535 | | |
|
Total interest expense
|
| | | | 17,936 | | | | | | 28,867 | | | | | | (170) | | | | | | 46,633 | | |
|
Net interest income
|
| | | | 121,481 | | | | | | 80,970 | | | | | | 11,790 | | | | | | 214,241 | | |
|
Provision for credit losses
|
| | | | 9,675 | | | | | | 1,415 | | | | | | — | | | | | | 11,090 | | |
|
Net interest income after provision for credit losses
|
| | | | 111,806 | | | | | | 79,555 | | | | | | 11,790 | | | | | | 203,151 | | |
|
Noninterest income
|
| | | | 25,080 | | | | | | 8,889 | | | | | | — | | | | | | 33,969 | | |
| Noninterest expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Salaries and employee benefits
|
| | | | 42,314 | | | | | | 23,516 | | | | | | — | | | | | | 65,830 | | |
|
Amortization of core deposit intangibles
|
| | | | — | | | | | | — | | | | | | 6,602(15) | | | | | | 6,602 | | |
|
Merger expenses
|
| | | | — | | | | | | — | | | | | | 35,500(16) | | | | | | 35,500 | | |
|
Other noninterest expenses
|
| | | | 28,920 | | | | | | 13,596 | | | | | | —(17) | | | | | | 42,516 | | |
|
Total noninterest expenses
|
| | | | 71,234 | | | | | | 37,112 | | | | | | 42,102 | | | | | | 150,448 | | |
|
Income before income tax expense
|
| | | | 65,652 | | | | | | 51,332 | | | | | | (30,312) | | | | | | 86,672 | | |
|
Income tax expense
|
| | | | 14,830 | | | | | | 14,149 | | | | | | (6,121)(18) | | | | | | 22,858 | | |
|
Net income
|
| | | $ | 50,822 | | | | | $ | 37,183 | | | | | $ | (24,191) | | | | | $ | 63,814 | | |
| Earnings per common share: | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Basic
|
| | | $ | 6.30 | | | | | | | | | | | | | | | | | $ | 5.57(19) | | |
|
Diluted
|
| | | | 5.87 | | | | | | | | | | | | | | | | | | 5.23(19) | | |
| Weighted average number of common shares outstanding: | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Basic
|
| | | | 8,062 | | | | | | | | | | | | 3,393 | | | | | | 11,455(19) | | |
|
Diluted
|
| | | | 8,662 | | | | | | | | | | | | 3,530 | | | | | | 12,192(19) | | |
|
(In thousands except share and per share data)
|
| |
Minimum
Exchange Ratio |
| |
Estimated
Exchange Ratio |
| |
Maximum
Exchange Ratio |
| |||||||||
| Purchase price consideration: | | | | | | | | | | | | | | | | | | | |
|
Signature Bancorporation shares to be exchanged for ESQ shares
|
| | | | 1,290,275 | | | | | | 1,290,275 | | | | | | 1,290,275 | | |
|
Exchange ratio
|
| | | | 2.500 | | | | | | 2.630 | | | | | | 2.800 | | |
|
ESQ shares issued to Signature Bancorporation shareholders
|
| | | | 3,225,688 | | | | | | 3,393,423 | | | | | | 3,612,770 | | |
|
Esquire stock price at April 13, 2026 market close
|
| | | $ | 113.22 | | | | | $ | 113.22 | | | | | $ | 113.22 | | |
|
Purchase price determination of common stock issued in acquisition
|
| | | $ | 365,212 | | | | | $ | 384,203 | | | | | $ | 409,038 | | |
|
Value of Signature Bancorporation stock options converted to
options to acquire shares of ESQ common stock |
| | | | 14,254 | | | | | | 15,508 | | | | | | 17,147 | | |
|
Purchase price consideration
|
| | | $ | 379,466 | | | | | $ | 399,711 | | | | | $ | 426,185 | | |
|
Less: Net fair value adjustments to Signature net assets acquired:
|
| | | | | | | | | | | | | | | | | | |
| Net fair value adjustment to loans: | | | | | | | | | | | | | | | | | | | |
|
Interest rate adjustment to record loans at fair value
|
| | | $ | (8,344) | | | | | $ | (8,344) | | | | | $ | (8,344) | | |
|
Less: Gross credit mark on loans
|
| | | | (76,308) | | | | | | (48,246) | | | | | | (13,038) | | |
|
Plus: CECL reserve gross up adjustment
|
| | | | 76,308 | | | | | | 48,246 | | | | | | 13,038 | | |
|
Net fair value adjustment to loans
|
| | | | (8,344) | | | | | | (8,344) | | | | | | (8,344) | | |
| Adjustment to record allowance for credit losses at fair value: | | | | | | | | | | | | | | | | | | | |
|
Reversal of Signature Allowance for credit losses
|
| | | | 13,038 | | | | | | 13,038 | | | | | | 13,038 | | |
|
Less: CECL reserve gross up adjustment
|
| | | | (76,308) | | | | | | (48,246) | | | | | | (13,038) | | |
|
Adjustment to record allowance for credit losses at fair value
|
| | | | (63,270) | | | | | | (35,208) | | | | | | — | | |
|
Value of core deposit intangible
|
| | | | 36,311 | | | | | | 36,311 | | | | | | 36,311 | | |
|
Yield mark on time deposits
|
| | | | (170) | | | | | | (170) | | | | | | (170) | | |
|
Deferred taxes (net) on above tangible asset adjustments
|
| | | | 20,459 | | | | | | 12,461 | | | | | | 2,427 | | |
|
Deferred taxes on Signature Core Deposit Intangible
|
| | | | (10,349) | | | | | | (10,349) | | | | | | (10,349) | | |
|
Deferred taxes (net)
|
| | | | 10,110 | | | | | | 2,112 | | | | | | (7,922) | | |
|
(In thousands except share and per share data)
|
| |
Minimum
Exchange Ratio |
| |
Estimated
Exchange Ratio |
| |
Maximum
Exchange Ratio |
| |||||||||
|
Less: Net fair value adjustments to Signature net assets acquired
|
| | | $ | (25,363) | | | | | $ | (5,299) | | | | | $ | 19,875 | | |
|
Less: Signature Stockholders’ Equity
|
| | | | (219,801) | | | | | | (219,801) | | | | | | (219,801) | | |
|
Goodwill recorded in acquisition
|
| | | $ | 185,029 | | | | | $ | 185,209 | | | | | $ | 186,509 | | |
| | |||||||||||||||||||
| | | |
Minimum
Exchange Ratio |
| |
Estimated
Exchange Ratio |
| |
Maximum
Exchange Ratio |
| |||||||||
| Earnings per common share: | | | | | | | | | | | | | | | | | | | |
|
Basic
|
| | | $ | 5.65 | | | | | $ | 5.57 | | | | | $ | 5.47 | | |
|
Diluted
|
| | | $ | 5.31 | | | | | $ | 5.23 | | | | | $ | 5.14 | | |
| Weighted average number of common shares outstanding: | | | | | | | | | | | | | | | | | | | |
|
Basic
|
| | | | 11,288 | | | | | | 11,455 | | | | | | 11,675 | | |
|
Diluted
|
| | | | 12,013 | | | | | | 12,192 | | | | | | 12,426 | | |
| | | |
Signature
|
| |
Esquire
|
|
|
Authorized Capital Stock
|
| |
The authorized capital stock of Signature consists of 2,500,000 shares of common stock, par value $1.00 per share and 100,000 shares of preferred stock, par value $0.01 per share.
As of March 31, 2026, there were 1,354,837 shares issued and 1,290,525 shares outstanding of Signature’s common stock, and no shares of preferred stock issued or outstanding.
|
| |
The authorized capital stock of Esquire consists of 15,000,000 shares of Esquire common stock and 2,000,000 shares of preferred stock, $0.01 par value per share.
As of [•], there are [•] shares of common stock outstanding and no shares of preferred stock outstanding.
|
|
|
Voting
|
| |
Signature shareholders entitled to vote on a matter are entitled to one (1) vote per share.
Signature shareholders do not have cumulative voting rights.
Signature’s articles of incorporation do not include a vote limit provision or otherwise limit the vote of shareholders who beneficially own in excess of ten percent (10%) of then-outstanding shares of common stock of Signature.
|
| |
Esquire stockholders entitled to vote on a matter are entitled to one (1) vote per share.
Esquire stockholders do not have cumulative voting rights.
Esquire’s articles of incorporation do not include a vote limit provision or otherwise limit the vote of shareholders who beneficially own in excess of ten percent (10%) of then-outstanding shares of common stock of Esquire.
Esquire’s articles of incorporation authorize the board of directors to issue common stock as either voting or non-voting common stock. Non-voting common stock may not vote on any matter submitted to stockholders or receive notice of stockholder meetings, subject to applicable law. For purposes of this comparison, unless otherwise noted, the term “common stock” as used herein refers to voting common stock.
|
|
| | | |
Signature
|
| |
Esquire
|
|
|
Rights of Preferred Stock
|
| |
Signature’s board of directors may issue shares of preferred stock in series, and by filing a certificate pursuant to the applicable law of the State of Illinois, establish from time to time the number of shares to be included in each such series, and fix the voting powers, designations, preferences, and other special rights of such shares and any qualifications, limitations or restrictions thereof, without shareholder approval.
Signature’s articles of incorporation may be amended to increase or decrease the number of authorized shares of preferred stock (but not below the number of shares thereof then outstanding) by the affirmative vote of the holders of a majority of the shares of common stock, unless otherwise required by law or in any preferred stock designation.
|
| |
Esquire’s board of directors may issue shares of preferred stock in series, and by filing a certificate pursuant to the applicable law of the State of Maryland, establish from time to time the number of shares to be included in each such series, and fix the voting powers, designations, preferences, and other special rights of such shares and any qualifications, limitations or restrictions thereof, without stockholder approval.
The number of authorized shares of preferred stock may be increased or decreased (but not below the number of shares thereof then outstanding) by the affirmative vote of the holders of a majority of Esquire’s common stock, without a vote of the holders of Esquire’s preferred stock, unless otherwise required by law or in any preferred stock designation.
|
|
|
Size of board of directors
|
| | Signature’s bylaws provide that the number of directors will be eight (8), which number may be increased or decreased from time to time by amendment of the bylaws. Signature’s board of directors currently has eight (8) directors. | | | Esquire’s bylaws provide that the number of directors may be fixed from time to time exclusively by vote of the board of directors; provided, however, that such number shall never be less than one (1). The Esquire board of directors currently has nine (9) directors. | |
|
Classes of Directors
|
| | Signature’s articles of incorporation provide that directors are divided into three (3) classes and are elected for three (3)-year staggered terms. | | | Esquire’s articles of incorporation and bylaws provide that directors are divided into three (3) classes, as nearly equal in number as reasonably possible, and are elected for three (3)-year staggered terms. | |
|
Director Eligibility and Mandatory Retirement
|
| | Signature’s articles of incorporation and bylaws do not provide for director qualifications or mandatory retirement. Directors need not be shareholders or residents of Illinois. | | | Esquire’s bylaws provide that any person appointed or elected to the board of directors must own, in their own name, capital stock of Esquire with an aggregate par value of $1,000, an aggregate stockholders’ equity of $1,000, or an aggregate fair market value of $1,000, at the time of the person’s appointment or election as a director. | |
|
Election of Directors
|
| | The affirmative vote of the majority of the shares represented and entitled to vote at a meeting of Signature’s shareholders at which a quorum is present shall be the act of the shareholders, unless the vote of a greater number or voting by classes is required by the Illinois Business Corporation Act | | | Esquire’s bylaws provide that directors shall be elected by a plurality of the votes cast at a meeting of shareholders at which a quorum is present. | |
| | | |
Signature
|
| |
Esquire
|
|
| | | | of 1983, as amended, Signature’s articles of incorporation or its bylaws. | | | | |
|
Vacancies on the board of directors
|
| |
Signature’s bylaws provide that any vacancy occurring on the board of directors, including due to an increase in the number of directors, may be filled by election at an annual meeting or special meeting of shareholders called for that purpose, provided that the board may properly fill one or more vacancies arising between shareholder meetings.
A director elected by the shareholders to fill a vacancy shall serve until the next annual meeting at which his or her class is to be elected or until a successor shall have been elected and qualified. A director appointed by the board of directors to fill a vacancy shall serve until the next shareholder meeting at which directors or to be elected or until a successor shall have been elected and qualified.
|
| | Esquire’s bylaws provide that, by virtue of its election to be subject to Section 3-804(c) of the MGCL, any vacancies resulting from an increase in the size of the board of directors or the death, resignation or removal of a director may be filled only by the affirmative vote of a majority of the remaining directors in office, even if the remaining directors do not constitute a quorum, and any director elected to fill a vacancy shall hold office for the remainder of the full term of the class of directors in which the vacancy occurred and until a successor is elected and qualifies. No decrease in the number of directors shall shorten the term of any incumbent director. | |
|
Calling Special Meetings of Shareholders
|
| | Signature’s bylaws provide that special meetings of shareholders may be called at any time by the chairman of the board of directors, the president, or the secretary, and shall be called at the written request of (i) a majority of the board of directors; or (ii) the holders of not less than one-fifth of all the outstanding shares entitled to vote on the matter for which the meeting is called. | | | Esquire’s bylaws provide that special meetings of stockholders may be called by the president or by the board of directors pursuant to a resolution adopted by a majority of the total number of directors (including any vacancies on the board of directors). Special meetings of the stockholders shall be called by the secretary at the written request of stockholders entitled to cast a majority of all the votes entitled to be cast at the meeting. | |
|
Quorum for Shareholder Meetings
|
| |
Signature’s bylaws provide that a majority of the outstanding shares entitled to vote on a matter represented at a meeting, in person or by proxy, constitutes a quorum, except as otherwise provided by law.
If a quorum fails to attend any meeting, the holders of a majority of the shares of stock entitled to vote who are present, in person or by proxy, may adjourn the meeting.
|
| | Esquire’s bylaws provide that the holders of at least a majority of all of the shares of the stock entitled to vote at the meeting, present in person or by proxy, shall constitute a quorum for all purposes, unless or except to the extent that the presence of a larger number may be required by law. Unless Esquire’s articles of incorporation provide otherwise, where a separate vote by a class or classes is required, a majority of the shares of such class or classes, present in person or represented by proxy, shall constitute a quorum entitled to take action with respect to that vote on that matter. | |
| | | |
Signature
|
| |
Esquire
|
|
| | | | | | | If a quorum fails to attend any meeting, the chairman of the meeting or the holders of a majority of the shares of stock who are present at the meeting, in person or by proxy, may, in accordance with the bylaws, adjourn the meeting to another place, date or time. | |
|
Notice of Shareholder Meetings
|
| | Signature’s bylaws provide that written or printed notice stating the place, date and time of the meeting and, in case of a special meeting, the purpose or purposes for which the meeting is called, shall be delivered not less than ten (10) nor more than sixty (60) days before the date of the meeting, or in the case of a merger or consolidation, share exchange, dissolution or sale, lease or exchange of all or substantially all of the assets of Signature, other than in the usual and regular course of business, not less than twenty (20) nor more than sixty (60) days before the date of the meeting, either personally or by mail, by or at the direction of the chairman of the board of directors, the president, the secretary or the persons calling the meeting, to each shareholder of record entitled to vote at such meeting. | | |
Esquire’s bylaws provide that, not less than ten (10) nor more than ninety (90) days before each stockholders’ meeting, the secretary shall give notice in writing or by electronic transmission of the meeting to each stockholder entitled to vote at the meeting and to each other stockholder entitled to notice of the meeting. The notice shall state the time and place of the meeting, the means of remote communication, if any, by which stockholders and proxy holders may be deemed to be present in person and may vote at the meeting, and, if the meeting is a special meeting or notice of the purpose is required by statute, the purpose of the meeting.
Notice is given to a stockholder when it is personally delivered to the stockholder, left at the stockholder’s usual place of business, mailed to the stockholder at his or her address as it appears on the records of Esquire, or transmitted to the stockholder by an electronic transmission to any address or number of the stockholder at which the stockholder receives electronic transmissions.
|
|
|
Advance Notice of Shareholder Nominations
|
| | Signature’s governing documents do not include provisions for the advanced notice by shareholders of nominations for directors. | | |
Esquire’s bylaws provide that advance notice of stockholder nominations for the election of directors or other business to be considered at any annual meeting may be given by any stockholder of Esquire who is a stockholder of record on the date of giving such notice and on the record date for the determination of stockholders entitled to vote at such annual meeting. The notice must be given timely, in writing, to Esquire’s secretary, and such business must otherwise be a proper matter for action by stockholders.
To be timely, a stockholder’s notice must be received by the secretary at the
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Signature
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Esquire
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principal executive office of Esquire at least ninety (90) days prior to the anniversary of Esquire’s proxy materials for the preceding year’s annual meeting. If, however, the date of the meeting is advanced or delayed by more than thirty (30) days after the anniversary of the preceding year’s annual meeting, the stockholder’s notice must be received by Esquire not later than the close of business on the tenth (10th) day following the day on which the public announcement of the date of the meeting was first made.
A stockholder’s notice shall set forth as to each matter such stockholder proposes to bring before the annual meeting (i) a brief description of the business desired to be brought before the annual meeting and the reasons for conducting such business at the annual meeting; (ii) the name and address, as they appear on Esquire’s books, of the stockholder who proposed such business; (iii) the class and number of shares of Esquire capital stock that are beneficially owned by such stockholder; and (iv) any material interest of such stockholder in such business.
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Anti-Takeover Provisions and Other Shareholder Protections
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Signature’s articles of incorporation provide that, notwithstanding any provision of law to the contrary, authorization by Signature’s shareholders of any plan of merger, consolidation or share exchange, or any sale, lease, exchange, or other disposition of all or substantially all of Signature’s property and assets, other than in the usual and regular course of business, or any voluntary dissolution or amendment of Signature’s articles of incorporation, requires the affirmative vote of holders of at least 66% of Signature’s outstanding shares, unless such transaction is approved by two-thirds of the number of Signature’s directors.
Signature’s articles of incorporation also provide that the articles of incorporation may be amended by a vote of the holders of a majority of the shares of Signature’s common stock, however, any such amendment relating to the amendment
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| | Section 3-602 of the MGCL prohibits Esquire from engaging in a business combination with an interested shareholder (defined as a person or an affiliate of such person that is the beneficial owner of 10% of more of the voting power of the outstanding voting stock of the corporation) for a period of five (5) years following the most recent date on which such interested shareholder became an interested shareholder unless (i) 80% of the votes entitled to be cast by outstanding shares of voting stock of the corporation (including two-thirds of the votes entitled to be cast by holders of voting stock other than voting stock held by such interested shareholder and its affiliates and associates) approves the business combination; (ii) such business combination was approved or exempted by a corporation’s board of directors prior to the time that the interested shareholder became an interested | |
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Signature
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Esquire
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| | | | of Signature’s bylaws, the number and classification of members of the board of directors, certain business combinations with interested shareholders, written consents by shareholders, the calling of shareholders’ meetings, the evaluation of other factors in connection with the acquisition of Signature, shareholder nominations for director or the required number of votes necessary to approve any amendment of any of the foregoing provisions will require the affiliative vote of holders of not less than 66% of Signature’s outstanding common stock entitled to vote thereon. | | |
shareholder; or (iii) the consideration offered in the business combination meets certain valuation thresholds.
Furthermore, the MGCL provides that “control shares” of a Maryland corporation acquired in a “control share acquisition” have no voting rights unless approved at a special meeting by the affirmative vote of two-thirds of the votes entitled to be cast on the matter, excluding shares of stock in a corporation in respect of which any of the following persons is entitled to exercise or direct the exercise of the voting power of shares of stock of the corporation in the election of directors: (i) a person who makes or proposes to make a control share acquisition; (ii) an officer of the corporation; or (iii) an employee of the corporation who is also a director of the corporation. If voting rights are not approved, then the control shares are subject to redemption by the corporation. “Control shares” are outstanding voting shares of stock that, if aggregated with all other such shares of stock previously acquired by the acquiror or in respect of which the acquiror is able to exercise or direct the exercise of voting power (except solely by virtue of a revocable proxy) greater than 10%.
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Limitation of Personal Liability of Officers and Directors
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| | Signature’s governing documents do not include provisions limiting the personal liability of its officers and directors, other than the indemnification provisions described below. | | |
Esquire’s articles of incorporation provide that an officer or director of Esquire shall not be liable to Esquire or its stockholders for money damages, except (i) to the extent that it is proved that the person actually received an improper benefit or profit in money, property or services for the amount of the benefit or profit in money, property or services actually received; (ii) to the extent that a judgment or other final adjudication adverse to the person is entered in a proceeding based on a finding in the proceeding that the person’s action, or failure to act, was the result of active and deliberate dishonesty and was material to the cause of action adjudicated in the proceeding; or (iii) to the extent otherwise provided by the MGCL.
If the MGCL is amended to further
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Signature
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Esquire
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| | | | | | | eliminate or limit the personal liability of officers and directors, then the liability of officers and directors of Esquire shall be eliminated or limited to the fullest extent permitted by the MGCL. | |
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Indemnification of Directors and Officers and Insurance
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Signature’s bylaws provide that Signature shall indemnify any person who was or is a part or is threatened to be made a party to any threatened, pending, or completed action, suit, or proceeding, whether civil, criminal, administrative, or investigative, including all appeals (other than an action by or in the right of Signature) by reason of the fact that the person is or was a director, officer, employee, or agent of Signature, or is or was serving at the request of Signature as a director, trustee, officer, employee, or agent of another corporation, partnership, joint venture, trust, or other enterprise, against expenses, including attorneys’ fees, judgment, fines, and amounts paid in settlement actually and reasonably incurred by him or her in connection with the action, suit, or proceeding; if the person acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the best interests of Signature and, with respect to any criminal action or proceeding, had no reasonable cause to believe his or her conduct was unlawful.
Signature’s bylaws further provide that Signature shall indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending, or completed action or suit, including all appeals, by or in the right of Signature to procure a judgment in its favor by reason of the fact that the person is or was a director, officer, employee, or agent of Signature, or is or was serving at the request of Signature as a director, trustee, officer, employee, or agent of another corporation, partnership, joint venture, trust, or other enterprise, against expenses, including attorneys’ fees, actually and reasonably incurred by the person in connection with the defense or settlement of the action or suit, if he or she acted in good
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Esquire’s bylaws provide that Esquire shall indemnify (i) its current and former directors and officers, whether serving Esquire or at its request any other entity, to the fullest extent required or permitted by the MGCL now or hereafter in force, including the advancement of expenses under the procedures and to the fullest extent permitted by law, and (ii) other employees and agents to such extent as shall be authorized by the board of directors and permitted by law; provided, however, that, except with respect to proceedings to enforce rights to indemnification, Esquire shall indemnify any such indemnitee in connection with a proceeding (or part thereof) initiated by such indemnitee only if such proceeding (or part thereof) was authorized by the board of directors of Esquire.
Esquire’s bylaws further provide that Esquire shall not be liable for any payment in connection with a claim made by any indemnitee to the extent such indemnitee has otherwise actually received payment under any insurance policy, agreement, or otherwise, of the amounts otherwise indemnifiable hereunder.
The rights to indemnification and to the advancement of expenses conferred in Esquire’s bylaws shall be contract rights and such rights shall continue as to an indemnitee who has ceased to be a director or officer and shall inure to the benefit of such indemnitee’s heirs, executors and administrators.
Esquire’s bylaws provide that Esquire may maintain insurance, at its expense, to protect itself and any director, officer, employee or agent of Esquire or another corporation, partnership, joint venture, trust or other enterprise against any expense, liability or loss, whether or not Esquire would have the power to indemnify such person against such
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Signature
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Esquire
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faith and in a manner he or she reasonably believed to be in or not opposed to the best interests of Signature. However, no indemnification shall be made in respect of any claim, issue, or matter as to which the person is adjudged to be liable for negligence or misconduct in the performance of his or her duty to Signature unless and only to the extent that the court of common pleas or the court in which the action or suit was brought determines on application that, despite the adjudication of liability but in view of all the circumstances of the case, the person is fairly and reasonably entitled to indemnity for expenses that the court of common pleas or other court shall deem proper.
Signature’s bylaws authorize the purchase and maintenance of insurance on behalf of any person who is or was a director, officer, employee, or agent of Signature, or is or was serving at the request of Signature as a director, trustee, officer, employee, or agent of another corporation, partnership, joint venture, trust, or other enterprise against any liability asserted against him or her and incurred by him or her in that capacity, or arising out of his or her status in that capacity, whether or not Signature would have the power to indemnify him or her against liability under the provisions of Signature’s articles of incorporation or of Illinois laws governing business corporations.
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| | expense, liability or loss under the MGCL. | |
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Appraisal or Dissenters’ Rights
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| | Any shares of Signature common stock that are issued and outstanding immediately prior to the effective time and are held by a shareholder who (i) has duly and validly demanded appraisal of such shares in connection with the merger in accordance with Illinois law; and (ii) as of the effective time, has not effectively withdrawn or lost such appraisal rights (through failure to perfect or otherwise) shall not be converted into or represent the right to receive any portion of the merger consideration but instead shall be converted into the right to receive only | | | Sections 3-601 through 3-604 of the MGCL, as now and hereafter in force, does not apply to any “business combination” (as defined in Section 3-601(e) of the MGCL, as now and hereafter in force), of Esquire. The holders of the stock of Esquire shall not be entitled to exercise the rights of an objecting stockholder under Section 3-202 of the MGCL, as now and hereafter in force. | |
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Signature
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Esquire
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| | | | such consideration as may be determined to be due with respect to such shares under Illinois law. | | | | |
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Dividends
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| | Signature’s bylaws provide that the board of directors may authorize, and Signature may make distributions to its shareholders, subject to any restrictions in Signature’s articles of incorporation and or imposed by law. | | |
Under Section 2-311 of the MGCL, Esquire may pay dividends or make other distributions from: (i) the net earnings for the fiscal year in which the distribution is made; (ii) the net earnings from the preceding fiscal year; or (iii) the sum of the net earnings for the preceding eight quarters.
Esquire may not pay dividends or make other distribution if it would be unable to pay its debts as they come due, or its assets would be less than the sum of its liabilities plus the amount necessary to satisfy the preferential rights upon dissolution of any class of shares senior to the common stock.
Esquire’s bylaws provide that the board of directors may declare dividends from time to time in accordance with law.
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Amendments to Articles and Bylaws
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Signature’s articles of incorporation may be amended by a vote of the holders of a majority of the shares of Signature common stock, except relating to the amendment of the bylaws, or to (i) the number and classification of members of the board of directors; (ii) certain business combinations with interested shareholders; (iii) written consents by shareholders; (iv) calling of shareholder meetings; (v) the evaluation of other factors in connection with the acquisition of Signature; (vi) shareholder nominations for the position of director; or (vii) the required number of votes necessary to approve any amendment of the foregoing requires the affirmative vote of holders of not less than 66% of Signature common stock then outstanding entitled to vote thereon.
Signature’s bylaws may be altered, amended or repealed and new bylaws may be adopted by the board of directors or the shareholders of Signature.
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Esquire may amend or repeal any provision contained in its articles of incorporation in the manner prescribed by the MGCL, including any amendment altering the terms or contract rights, as expressly set forth in Esquire’s articles of incorporation, of any of outstanding Esquire capital stock by classification, reclassification or otherwise, and no stockholder approval shall be required if the approval of stockholders is not required for the proposed amendment or repeal by the MGCL, and all rights conferred upon stockholders are granted subject to this reservation.
Esquire’s board of directors, pursuant to a resolution approved by a majority of the whole board (rounded up to the nearest whole number), and without action by the stockholders, may amend Esquire’s articles of incorporation to increase or decrease the aggregate number of shares of stock or the number of shares of stock of any class or series that Esquire has authority to issue.
No proposed amendment or repeal of any provision of Esquire’s articles of
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Signature
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Esquire
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incorporation shall be submitted to a stockholder vote unless the board of directors (i) approved the proposed amendment or repeal; (ii) determined that it is advisable; and (iii) directed that it be submitted for consideration at either an annual or special meeting of the stockholders pursuant to a resolution approved by the whole board (rounded up to the nearest whole number). Any proposed amendment or repeal of any provision of Esquire’s articles of incorporation may be abandoned by the board of directors at any time before its effective time upon the adoption of a resolution approved by a majority of the Whole Board (rounded up to the nearest whole number).
The amendment or repeal of any provision of Esquire’s articles of incorporation shall be approved by at least a majority of all votes entitled to be cast by the holders of shares of capital stock of Esquire entitled to vote on the matter.
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Action by Written Consent of Shareholders
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| | Signature’s bylaws provide that, subject to Signature’s articles of incorporation, any action which is required by law or by Signature’s bylaws to be taken at a meeting of shareholders, or any other action which may be taken at such a meeting, may be taken without a meeting and without a vote if a consent in writing, setting forth the action so taken, shall be signed (i) if five (5) days prior notice of the proposed action is given in writing to all of the shareholders entitled to vote with respect to the subject matter thereof, by the holders of outstanding shares having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares entitled to vote thereon were present and voting; or (ii) by all of the shareholders entitled to vote with respect to the subject matter thereof. | | | Esquire’s bylaws provide that any action required or permitted to be taken at a meeting of stockholders may be taken without a meeting if a unanimous consent which sets forth the action is given in writing or by electronic transmission by each stockholder entitled to vote on the matter and is filed in paper or electronic format with the records of stockholder meetings. Unless Esquire’s articles of incorporation require otherwise, the holders of any class of Esquire capital stock, other than voting common stock, may take action or consent to any action by delivering a consent in writing or by electronic transmission of the stockholders entitled to cast not less than the minimum number of votes that would be necessary to authorize or take the action at a meeting of the stockholders if Esquire gives notice of the action so taken to each stockholder not later than ten (10) days after the effective time of the action. | |
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Signature
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Esquire
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Shareholder Rights Plan
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| | Signature does not currently have a rights plan in effect. | | | Esquire does not currently have a rights plan in effect. | |
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Forum Selection Bylaw
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| | Signature’s governing documents do not require any exclusive forum with respect to legal actions against or involving Signature. | | | Esquire’s governing documents do not require any exclusive forum with respect to legal actions against or involving Esquire. | |
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Esquire filings (SEC File No. 001-38131)
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Periods Covered or Date of Filing with the SEC
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| | Annual Report on Form 10-K | | | | |
| | Current Reports on Form 8-K | | | | |
| | | | | Filed on March 12, 2026 | |
| | | | | April 2, 2026 | |
| | Definitive Proxy Statement on Schedule 14A | | | | |
| | The description of Esquire common stock set forth in its registration statement on Form 8-A, filed on June 26, 2017, including any amendment or report filed with the SEC for the purpose of updating this description. | | | | |
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ARTICLE I
THE MERGER
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| | | | | | A-1 | | | |
| | | | | | A-2 | | | |
| | | | | | A-2 | | | |
| | | | | | A-2 | | | |
| | | | | | A-2 | | | |
| | | | | | A-3 | | | |
| | | | | | A-4 | | | |
| | | | | | A-4 | | | |
| | | | | | A-4 | | | |
| | | | | | A-4 | | | |
| | | | | | A-4 | | | |
| | | | | | A-4 | | | |
| | | | | | A-5 | | | |
| | | | | | A-6 | | | |
| | | | | | A-6 | | | |
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ARTICLE II
EXCHANGE OF SHARES
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| | | | | | A-6 | | | |
| | | | | | A-6 | | | |
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ARTICLE III
REPRESENTATIONS AND WARRANTIES OF SIGNATURE
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| | | | | | A-8 | | | |
| | | | | | A-10 | | | |
| | | | | | A-11 | | | |
| | | | | | A-11 | | | |
| | | | | | A-12 | | | |
| | | | | | A-12 | | | |
| | | | | | A-14 | | | |
| | | | | | A-14 | | | |
| | | | | | A-14 | | | |
| | | | | | A-14 | | | |
| | | | | | A-15 | | | |
| | | | | | A-18 | | | |
| | | | | | A-19 | | | |
| | | | | | A-20 | | | |
| | | | | | A-21 | | | |
| | | | | | A-21 | | | |
| | | | | | A-21 | | | |
| | | | | | A-21 | | | |
| | | | | | A-22 | | | |
| | | | | | A-23 | | | |
| | | | | | A-23 | | | |
| | | | | | A-24 | | | |
| | | | | | A-24 | | | |
| | | | | | A-24 | | | |
| | | | | | A-24 | | | |
| | | | | | A-25 | | | |
| | | | | | A-25 | | | |
| | | | | | A-25 | | | |
| | | | | | A-25 | | | |
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ARTICLE IV
REPRESENTATIONS AND WARRANTIES OF ESQUIRE AND MERGER SUB
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| | | | | | A-26 | | | |
| | | | | | A-27 | | | |
| | | | | | A-28 | | | |
| | | | | | A-29 | | | |
| | | | | | A-29 | | | |
| | | | | | A-30 | | | |
| | | | | | A-31 | | | |
| | | | | | A-32 | | | |
| | | | | | A-32 | | | |
| | | | | | A-32 | | | |
| | | | | | A-32 | | | |
| | | | | | A-33 | | | |
| | | | | | A-34 | | | |
| | | | | | A-34 | | | |
| | | | | | A-34 | | | |
| | | | | | A-34 | | | |
| | | | | | A-35 | | | |
| | | | | | A-35 | | | |
| | | | | | A-36 | | | |
| | | | | | A-36 | | | |
| | | | | | A-36 | | | |
| | | | | | A-36 | | | |
| | | | | | A-36 | | | |
| | | | | | A-37 | | | |
| | | | | | A-37 | | | |
| | | | | | A-37 | | | |
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ARTICLE V
COVENANTS RELATING TO CONDUCT OF BUSINESS
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| | | | | | A-38 | | | |
| | | | | | A-38 | | | |
| | | | | | A-40 | | | |
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ARTICLE VI
ADDITIONAL AGREEMENTS
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| | | | | | A-41 | | | |
| | | | | | A-42 | | | |
| | | | | | A-43 | | | |
| | | | | | A-43 | | | |
| | | | | | A-44 | | | |
| | | | | | A-45 | | | |
| | | | | | A-45 | | | |
| | | | | | A-47 | | | |
| | | | | | A-48 | | | |
| | | | | | A-48 | | | |
| | | | | | A-48 | | | |
| | | | | | A-48 | | | |
| | | | | | A-50 | | | |
| | | | | | A-50 | | | |
| | | | | | A-50 | | | |
| | | | | | A-50 | | | |
| | | | | | A-50 | | | |
| | | | | | A-51 | | | |
| | | | | | A-51 | | | |
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ARTICLE VII
CONDITIONS PRECEDENT
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| | | | | | A-51 | | | |
| | | | | | A-51 | | | |
| | | | | | A-52 | | | |
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ARTICLE VIII
TERMINATION AND AMENDMENT
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| | | | | | A-53 | | | |
| | | | | | A-55 | | | |
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ARTICLE IX
GENERAL PROVISIONS
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| | | | | | A-56 | | | |
| | | | | | A-56 | | | |
| | | | | | A-56 | | | |
| | | | | | A-56 | | | |
| | | | | | A-56 | | | |
| | | | | | A-57 | | | |
| | | | | | A-58 | | | |
| | | | | | A-58 | | | |
| | | | | | A-58 | | | |
| | | | | | A-58 | | | |
| | | | | | A-59 | | | |
| | | | | | A-59 | | | |
| | | | | | A-59 | | | |
| | | | | | A-59 | | | |
| | | | | | A-59 | | | |
| | Exhibit A — Bank Merger Agreement | | | | | | | |
| | Exhibit B — Form of Signature Voting Agreement | | | | | | | |
| | Exhibit C — Form of Signature Lock-Up Agreement | | | | | | | |
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Page
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| Acquisition Proposal | | |
66
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| affiliate | | |
77
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| Aggregate Schedule A Loan Balance | | |
3
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| Agreement | | |
1
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| Appraisal Demand | | |
5
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| Average Closing Price | | |
73
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| Bank Merger | | |
1
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| Bank Merger Agreement | | |
1
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| Bank Merger Certificates | | |
8
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| Bank Merger Effective Time | | |
8
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| BHC Act | | |
11
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| BOLI | | |
34
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| Borrower | | |
32
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| business day | | |
77
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| Chosen Courts | | |
78
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| Closing | | |
2
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| Closing Date | | |
2
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| Code | | |
1
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| Confidentiality Agreement | | |
58
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| Continuation Period | | |
60
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| Continuing Employees | | |
60
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| Determination Date | | |
73
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| DIF | | |
12
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| Dissenting Shares | | |
4
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| DOL | | |
21
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| Effective Time | | |
3
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| Enforceability Exceptions | | |
15
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| Environmental Laws | | |
28
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| ERISA | | |
21
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| Esquire | | |
1
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| Esquire 401(k) Plan | | |
62
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| Esquire Bank | | |
1
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| Esquire Benefit Plans | | |
43
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| Esquire Board Recommendation | | |
58
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| Esquire Common Stock | | |
3
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| Esquire Contract | | |
40
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| Esquire Disclosure Schedule | | |
35
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| Esquire Equity Awards | | |
36
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| Esquire ERISA Affiliate | | |
44
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| Esquire Financial PTO Policy | | |
62
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| Esquire Leased Real Property | | |
47
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Page
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| Esquire Meeting | | |
58
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| Esquire Owned Properties | | |
47
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| Esquire Real Estate Leases | | |
47
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| Esquire Regulatory Agreement | | |
46
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| Esquire Reports | | |
40
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| Esquire Restricted Stock Awards | | |
36
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| Esquire Share Issuance | | |
16
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| Esquire Stock Options | | |
36
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|
| Esquire Stock Plans | | |
36
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|
| Esquire Subsidiary | | |
36
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| Esquire Systems | | |
48
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| Exchange Act | | |
32
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| Exchange Agent | | |
8
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|
| Exchange Fund | | |
8
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|
| Exchange Ratio | | |
3
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|
| FDIC | | |
12
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| Federal Reserve Board | | |
15
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| Final Index Price | | |
73
|
|
| First Step Articles of Merger | | |
3
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|
| First Step Illinois Articles of Merger | | |
3
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| GAAP | | |
12
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| Governmental Entity | | |
16
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| IBCA | | |
2
|
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| Illinois Department | | |
15
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| Illinois Secretary | | |
3
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| Index Price | | |
73
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| Index Ratio | | |
73
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| Intellectual Property | | |
30
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| Interim Surviving Corporation | | |
1
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| IRS | | |
21
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| Joint Proxy Statement | | |
16
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| knowledge | | |
77
|
|
| Laws | | |
24
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| Liens | | |
14
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|
| Litigation | | |
65
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| Loan Participation | | |
33
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| Loans | | |
32
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| Maryland SDAT | | |
3
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| Material Adverse Effect | | |
12
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| Materially Burdensome Regulatory Condition | | |
57
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| Merger | | |
1
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| Merger Consideration | | |
3
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|
| Merger Sub Charter | | |
36
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Page
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| Merger Sub Common Stock | | |
6
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| Mergers | | |
1
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| MGCL | | |
2
|
|
| Multiemployer Plan | | |
22
|
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| Multiple Employer Plan | | |
22
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|
| NASDAQ | | |
10
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| New Board Members | | |
7
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| New Certificates | | |
8
|
|
| New Plans | | |
61
|
|
| Next Annual Meeting | | |
7
|
|
| OCC | | |
15
|
|
| Old Certificate | | |
4
|
|
| PBGC | | |
21
|
|
| Permitted Encumbrances | | |
29
|
|
| person | | |
77
|
|
| Personal Data | | |
31
|
|
| Piper Sandler | | |
42
|
|
| Premium Cap | | |
64
|
|
| PTO | | |
62
|
|
| Purchaser Ratio | | |
72
|
|
| Raymond James | | |
18
|
|
| Recommendation Change | | |
59
|
|
| Regulatory Agencies | | |
16
|
|
| Representatives | | |
65
|
|
| Requisite Esquire Vote | | |
38
|
|
| Requisite Regulatory Approvals | | |
56
|
|
| Requisite Signature Vote | | |
14
|
|
| Restrictive Covenant | | |
24
|
|
| S-4 | | |
16
|
|
| Schedule A Loans | | |
3
|
|
| SEC | | |
15
|
|
| Second Effective Time | | |
6
|
|
| Second Step Articles of Merger | | |
6
|
|
| Second Step Illinois Articles of Merger | | |
6
|
|
| Second Step Maryland Articles of Merger | | |
6
|
|
| Second Step Merger | | |
1
|
|
| Security Breach | | |
31
|
|
| Signature | | |
1
|
|
| Signature 401(k) Plan | | |
62
|
|
| Signature Articles | | |
6
|
|
| Signature Bank | | |
1
|
|
| Signature Benefit Plans | | |
21
|
|
| Signature Board Recommendation | | |
59
|
|
| | | |
Page
|
|
| Signature Bylaws | | |
6
|
|
| Signature Common Stock | | |
3
|
|
| Signature Contract | | |
27
|
|
| Signature Disclosure Schedule | | |
11
|
|
| Signature Equity Plan | | |
5
|
|
| Signature ERISA Affiliate | | |
21
|
|
| Signature Indemnified Parties | | |
63
|
|
| Signature Leased Real Property | | |
29
|
|
| Signature Lock-Up Agreements | | |
2
|
|
| Signature Meeting | | |
58
|
|
| Signature Owned Properties | | |
29
|
|
| Signature PTO Policies | | |
62
|
|
| Signature Qualified Plans | | |
21
|
|
| Signature Real Estate Leases | | |
29
|
|
| Signature Regulatory Agreement | | |
27
|
|
| Signature Stock Option | | |
5
|
|
| Signature Subsidiary | | |
12
|
|
| Signature Systems | | |
30
|
|
| Signature Voting Agreements | | |
2
|
|
| SRO | | |
16
|
|
| Starting Date | | |
73
|
|
| Starting Price | | |
73
|
|
| Subsidiary | | |
12
|
|
| Superior Proposal | | |
66
|
|
| Surviving Bank | | |
8
|
|
| Surviving Entity | | |
1
|
|
| Takeover Statutes | | |
32
|
|
| Tax | | |
20
|
|
| Tax Return | | |
20
|
|
| Taxes | | |
20
|
|
| Termination Date | | |
72
|
|
| Termination Fee | | |
74
|
|
| Total Borrower Commitment | | |
32
|
|
| | | |
For the Year Ended
December 31, |
| |
Change ($)
|
| |
Change (%)
|
| |||||||||||||||
| | | |
2025
|
| |
2024
|
| ||||||||||||||||||
| | | |
(Dollars in thousands)
|
| | | | | | | | | | | | | |||||||||
|
Account analysis fees on commercial accounts
|
| | | $ | 4,658 | | | | | $ | 3,833 | | | | | | 825 | | | | | | 21.52% | | |
|
Interchange income
|
| | | | 2,103 | | | | | | 2,309 | | | | | | (206) | | | | | | (8.92)% | | |
| | | |
For the Year Ended
December 31, |
| |
Change ($)
|
| |
Change (%)
|
| |||||||||||||||
| | | |
2025
|
| |
2024
|
| ||||||||||||||||||
| | | |
(Dollars in thousands)
|
| | | | | | | | | | | | | |||||||||
|
Salaries and employee benefits
|
| | | $ | 23,516 | | | | | $ | 22,686 | | | | | $ | 830 | | | | | | 3.66% | | |
|
Occupancy and equipment expense
|
| | | | 1,935 | | | | | | 1,870 | | | | | | 65 | | | | | | 3.48% | | |
|
Data processing
|
| | | | 2,271 | | | | | | 1,829 | | | | | | 442 | | | | | | 24.17% | | |
|
Credit cards
|
| | | | 838 | | | | | | 785 | | | | | | 53 | | | | | | 6.75% | | |
|
Marketing
|
| | | | 541 | | | | | | 386 | | | | | | 155 | | | | | | 40.16% | | |
|
Professional fees
|
| | | | 1,125 | | | | | | 1,276 | | | | | | (151) | | | | | | (11.83)% | | |
|
Other real estate expense, net
|
| | | | 12 | | | | | | — | | | | | | 12 | | | | | | — | | |
|
FDIC insurance assessments
|
| | | | 928 | | | | | | 1,110 | | | | | | (182) | | | | | | (16.40)% | | |
|
Other expense
|
| | | | 5,947 | | | | | | 4,834 | | | | | | 1,113 | | | | | | 23.02% | | |
|
Total noninterest expense
|
| | | $ | 37,113 | | | | | $ | 34,776 | | | | | $ | 2,337 | | | | | | 6.72% | | |
| | | |
December 31, 2025
|
| |||||||||||||||||||||||||||
| | | |
1 Year or
Less |
| |
1 to 5
Years |
| |
5 to 10
Years |
| |
After 10
Years |
| |
Total Fair
Value |
| |||||||||||||||
| | | |
(Dollars in thousands)
|
| |||||||||||||||||||||||||||
|
U.S. government sponsored agency and corporation securities
|
| | | $ | — | | | | | $ | 9,888 | | | | | $ | 30,911 | | | | | $ | — | | | | | $ | 40,799 | | |
|
U.S. government sponsored mortgage-backed securities and collateralized mortgage obligations
|
| | | | 8 | | | | | | 1,890 | | | | | | 8,447 | | | | | | 302,111 | | | | | | 312,456 | | |
|
State and political subdivisions in the U.S.
|
| | | | — | | | | | | — | | | | | | 6,143 | | | | | | 15,066 | | | | | | 21,209 | | |
|
Total securities
|
| | | $ | 8 | | | | | $ | 11,778 | | | | | $ | 45,501 | | | | | $ | 317,177 | | | | | $ | 374,464 | | |
| Weighted average yield: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
U.S. government sponsored agency and corporation securities
|
| | | | 0.0% | | | | | | 2.03% | | | | | | 4.47% | | | | | | 0.0% | | | | | | 3.86% | | |
|
U.S. government sponsored mortgage-backed securities and collateralized mortgage obligations
|
| | | | 2.01 | | | | | | 2.97 | | | | | | 1.46 | | | | | | 2.04 | | | | | | 2.03 | | |
|
State and political subdivisions in the U.S.
|
| | | | — | | | | | | — | | | | | | 4.17 | | | | | | 2.97 | | | | | | 3.30 | | |
|
Total securities
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | 2.27% | | |
| | | |
December 31, 2024
|
| |||||||||||||||||||||||||||
| | | |
1 Year or
Less |
| |
1 to 5
Years |
| |
5 to 10
Years |
| |
After 10
Years |
| |
Total Fair
Value |
| |||||||||||||||
| | | |
(Dollars in thousands)
|
| |||||||||||||||||||||||||||
|
U.S. government sponsored agency and corporation securities
|
| | | $ | — | | | | | $ | 19,735 | | | | | $ | 24,280 | | | | | $ | — | | | | | $ | 44,015 | | |
|
U.S. government sponsored mortgage-backed securities and collateralized mortgage obligations
|
| | | | 15 | | | | | | 978 | | | | | | 9,596 | | | | | | 317,513 | | | | | | 328,102 | | |
|
State and political subdivisions in the U.S.
|
| | | | — | | | | | | — | | | | | | 2,079 | | | | | | 18,281 | | | | | | 20,360 | | |
|
Total securities
|
| | | $ | 15 | | | | | | 20,713 | | | | | $ | 35,955 | | | | | $ | 335,794 | | | | | $ | 392,477 | | |
| Weighted average yield: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
U.S. government sponsored agency and corporation securities
|
| | | | —% | | | | | | 3.24% | | | | | | 5.23% | | | | | | —% | | | | | | 4.32% | | |
|
U.S. government sponsored mortgage-backed securities and collateralized mortgage obligations
|
| | | | 1.70 | | | | | | 2.40 | | | | | | 1.81 | | | | | | 2.08 | | | | | | 2.08 | | |
|
State and political subdivisions in the U.S.
|
| | | | — | | | | | | — | | | | | | 3.24 | | | | | | 3.33 | | | | | | 3.32 | | |
|
Total securities
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | 2.35% | | |
| | | |
For the year ended
December 31, 2025 |
| |
For the year ended
December 31, 2024 |
| ||||||||||||||||||
| | | |
(Dollars in thousands)
|
| |||||||||||||||||||||
| | | |
Average
Balance |
| |
Average
Rate Paid |
| |
Average
Balance |
| |
Average
Rate Paid |
| ||||||||||||
|
Noninterest-bearing deposits
|
| | | $ | 572,012 | | | | | | 0.00% | | | | | $ | 621,258 | | | | | | 0.00% | | |
|
Interest-bearing demand
|
| | | | 1,076,138 | | | | | | 2.26% | | | | | | 970,457 | | | | | | 3.11% | | |
|
Time deposits
|
| | | | 66,010 | | | | | | 3.71% | | | | | | 90,841 | | | | | | 4.32% | | |
|
Total interest bearing deposits
|
| | | $ | 1,142,148 | | | | | | 2.35% | | | | | $ | 1,061,298 | | | | | | 3.21% | | |
|
(Dollars in thousands)
|
| |
December 31,
2025 |
| |
December 31,
2024 |
| ||||||
|
Three months or less
|
| | | $ | 4,563 | | | | | $ | 5,386 | | |
|
Over three months through six months
|
| | | | 1,128 | | | | | | — | | |
|
Over six months through year
|
| | | | 25,318 | | | | | | 4,728 | | |
|
Over year
|
| | | | 25,573 | | | | | | 50,550 | | |
|
Total
|
| | | $ | 56,582 | | | | | $ | 60,664 | | |
| | | |
1 Year or
Less |
| |
After 1 Through 5
Years |
| |
After 5 Through 15
Years |
| |
After 15 Years
|
| |
Total
|
| |||||||||||||||||||||||||||||||||
| | | |
Fixed
|
| |
Variable
|
| |
Fixed
|
| |
Variable
|
| |
Fixed
|
| |
Variable
|
| ||||||||||||||||||||||||||||||
| | | |
(Dollars in thousands)
|
| |||||||||||||||||||||||||||||||||||||||||||||
| As of December 31, 2025 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Commercial & industrial
|
| | | $ | 222,609 | | | | | $ | 100,121 | | | | | $ | 155,848 | | | | | $ | 59,883 | | | | | $ | 20,480 | | | | | $ | — | | | | | $ | — | | | | | $ | 558,941 | | |
|
Nonfarm nonresidential
|
| | | | 142,583 | | | | | | 231,933 | | | | | | 31,048 | | | | | | 68,509 | | | | | | — | | | | | | — | | | | | | 4,742 | | | | | | 478,815 | | |
|
Construction & land development
|
| | | | 73,339 | | | | | | 6,547 | | | | | | 25,741 | | | | | | — | | | | | | 3,477 | | | | | | — | | | | | | — | | | | | | 109,104 | | |
|
1 – 4 family residential
|
| | | | 11,509 | | | | | | 20,199 | | | | | | 10,504 | | | | | | — | | | | | | 2,482 | | | | | | — | | | | | | — | | | | | | 44,694 | | |
|
Multi-family residential
|
| | | | 4,228 | | | | | | 35,517 | | | | | | — | | | | | | 1,013 | | | | | | — | | | | | | — | | | | | | — | | | | | | 40,758 | | |
|
Consumer
|
| | | | 3,294 | | | | | | 125 | | | | | | 43,825 | | | | | | 8 | | | | | | — | | | | | | — | | | | | | — | | | | | | 47,252 | | |
|
Total loans
|
| | | $ | 457,562 | | | | | $ | 394,442 | | | | | $ | 266,966 | | | | | $ | 129,413 | | | | | $ | 26,439 | | | | | $ | — | | | | | $ | 4,742 | | | | | $ | 1,279,564 | | |
| | | |
1 Year or
Less |
| |
After 1 Through 5
Years |
| |
After 5 Through 15
Years |
| |
After 15 Years
|
| |
Total
|
| |||||||||||||||||||||||||||||||||
| | | |
Fixed
|
| |
Variable
|
| |
Fixed
|
| |
Variable
|
| |
Fixed
|
| |
Variable
|
| ||||||||||||||||||||||||||||||
| | | |
(Dollars in thousands)
|
| |||||||||||||||||||||||||||||||||||||||||||||
| As of December 31, 2024 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Commercial & industrial
|
| | | $ | 206,616 | | | | | $ | 103,841 | | | | | $ | 142,331 | | | | | $ | 32,379 | | | | | $ | 28,404 | | | | | $ | — | | | | | $ | — | | | | | $ | 513,571 | | |
|
Nonfarm nonresidential
|
| | | | 135,233 | | | | | | 245,552 | | | | | | 23,117 | | | | | | 78,499 | | | | | | 1,815 | | | | | | 4,290 | | | | | | 4,834 | | | | | | 493,340 | | |
|
Construction & land development
|
| | | | 67,496 | | | | | | 8,883 | | | | | | 25,740 | | | | | | — | | | | | | 10,639 | | | | | | — | | | | | | — | | | | | | 112,758 | | |
|
1 – 4 family residential
|
| | | | 9,571 | | | | | | 23,941 | | | | | | 11,398 | | | | | | — | | | | | | 1,075 | | | | | | — | | | | | | — | | | | | | 45,985 | | |
|
Multi-family residential
|
| | | | 8,326 | | | | | | 21,416 | | | | | | — | | | | | | 1,047 | | | | | | — | | | | | | — | | | | | | — | | | | | | 30,789 | | |
|
Consumer
|
| | | | 1,922 | | | | | | 2,353 | | | | | | 16,448 | | | | | | 12 | | | | | | — | | | | | | — | | | | | | — | | | | | | 20,735 | | |
|
Total loans
|
| | | $ | 429,164 | | | | | $ | 405,986 | | | | | $ | 219,034 | | | | | $ | 111,937 | | | | | $ | 41,933 | | | | | $ | 4,290 | | | | | $ | 4,834 | | | | | $ | 1,217,178 | | |
| | | |
December 31,
2025 |
| |
December 31,
2024 |
| ||||||
| | | |
(Dollars in thousands)
|
| |||||||||
| Nonaccrual Loans | | | | | | | | | | | | | |
|
Commercial & industrial
|
| | | $ | 760 | | | | | $ | 4,985 | | |
|
Nonfarm nonresidential
|
| | | | 35,150 | | | | | | 11,730 | | |
|
Construction & land development
|
| | | | — | | | | | | 3,903 | | |
|
1 – 4 family residential
|
| | | | — | | | | | | 1,600 | | |
|
Multi-family residential
|
| | | | — | | | | | | — | | |
|
Consumer
|
| | | | — | | | | | | — | | |
|
Total loans
|
| | | $ | 35,910 | | | | | $ | 22,218 | | |
| | | |
2025
|
| |||||||||||||||||||||||||||||||||
| | | |
(Dollars in thousands)
|
| |||||||||||||||||||||||||||||||||
| | | |
Pass
|
| |
Mention
|
| |
Substandard
|
| |
Doubtful
|
| |
Loss
|
| |
Total
|
| ||||||||||||||||||
|
Commercial and industrial
|
| | | $ | 544,408 | | | | | $ | 13,772 | | | | | $ | — | | | | | $ | 760 | | | | | $ | — | | | | | $ | 558,940 | | |
|
Nonfarm nonresidential
|
| | | | 421,941 | | | | | | 21,673 | | | | | | 50 | | | | | | 35,151 | | | | | | — | | | | | | 478,815 | | |
|
Construction and land development
|
| | | | 109,104 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 109,104 | | |
|
1 – 4 Family Residential
|
| | | | 44,693 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 44,693 | | |
|
Multi-family (5+) residential
|
| | | | 40,759 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 40,759 | | |
|
Consumer
|
| | | | 47,253 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 47,253 | | |
|
Total loans
|
| | | $ | 1,208,158 | | | | | $ | 35,445 | | | | | $ | 50 | | | | | $ | 35,911 | | | | | $ | 0 | | | | | $ | 1,279,564 | | |
| | | |
2024
|
| |||||||||||||||||||||||||||||||||
| | | |
(Dollars in thousands)
|
| |||||||||||||||||||||||||||||||||
| | | |
Pass
|
| |
Mention
|
| |
Substandard
|
| |
Doubtful
|
| |
Loss
|
| |
Total
|
| ||||||||||||||||||
|
Commercial and industrial
|
| | | $ | 499,960 | | | | | $ | 8,625 | | | | | $ | — | | | | | $ | 4,985 | | | | | $ | — | | | | | $ | 513,570 | | |
|
Nonfarm nonresidential
|
| | | | 466,777 | | | | | | 14,778 | | | | | | 54 | | | | | | 11,730 | | | | | | — | | | | | | 493,339 | | |
|
Construction and land development
|
| | | | 108,855 | | | | | | — | | | | | | — | | | | | | 3,903 | | | | | | — | | | | | | 112,758 | | |
|
1 – 4 Family Residential
|
| | | | 44,386 | | | | | | — | | | | | | — | | | | | | 1,600 | | | | | | — | | | | | | 45,986 | | |
|
Multi-family (5+) residential
|
| | | | 30,790 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 30,790 | | |
|
Consumer
|
| | | | 20,735 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 20,735 | | |
|
Total loans
|
| | | $ | 1,171,503 | | | | | $ | 23,403 | | | | | $ | 54 | | | | | $ | 22,218 | | | | | $ | — | | | | | $ | 1,217,178 | | |
| | | |
Year Ended
December 31, 2025 |
| |
Year Ended
December 31, 2024 |
| ||||||
| (Dollars in thousands) | | | | | | | | | | | | | |
|
Average loans outstanding
|
| | | $ | 1,248,160 | | | | | $ | 1,176,015 | | |
|
Total loans outstanding at the end of the period
|
| | | | 1,278,362 | | | | | | 1,261,104 | | |
|
Allowance for credit losses on loans at the beginning of the period
|
| | | | 12,976 | | | | | | 12,145 | | |
|
Provision for credit losses
|
| | | | 1,380 | | | | | | 2,918 | | |
| Charge-offs: | | | | | | | | | | | | | |
|
Commercial & industrial
|
| | | | 213 | | | | | | 1,965 | | |
|
Nonfarm nonresidential
|
| | | | 1,246 | | | | | | — | | |
|
Construction & land development
|
| | | | — | | | | | | 175 | | |
|
1 – 4 family residential
|
| | | | — | | | | | | — | | |
|
Multi-family residential
|
| | | | — | | | | | | — | | |
|
Consumer
|
| | | | 5 | | | | | | — | | |
|
Total charge-offs for all loan types
|
| | | $ | 1,464 | | | | | $ | 2,140 | | |
| Recoveries:: | | | | | | | | | | | | | |
|
Commercial & industrial
|
| | | | 126 | | | | | | 35,914 | | |
|
Nonfarm nonresidential
|
| | | | 12 | | | | | | 8,559 | | |
|
Construction & land development
|
| | | | — | | | | | | — | | |
|
1 – 4 family residential
|
| | | | 8 | | | | | | 7,900 | | |
|
Multi-family residential
|
| | | | — | | | | | | — | | |
|
Consumer
|
| | | | — | | | | | | 140 | | |
|
Total recoveries for all loan types
|
| | | $ | 146 | | | | | $ | 53 | | |
|
Net (recoveries) charge-offs
|
| | | $ | 1,234 | | | | | $ | 2,087 | | |
|
Allowance for credit losses on loans at the end of the period:
|
| | | $ | 13,038 | | | | | $ | 12,976 | | |
|
Allowance for credit losses on loans to total loans outstanding
|
| | | | 1.02% | | | | | | 1.07% | | |
|
Nonaccrual loans to total loans outstanding
|
| | | | 2.81% | | | | | | 1.83% | | |
|
Allowance for credit losses on loans to nonaccrual loans
|
| | | | 36.31% | | | | | | 58.40% | | |
| Net charge-offs to average loans outstanding: | | | | | | | | | | | | | |
|
Commercial & industrial
|
| | | | 0.02% | | | | | | 0.38% | | |
|
Nonfarm nonresidential
|
| | | | 0.25% | | | | | | 0.04% | | |
|
Construction & land development
|
| | | | — | | | | | | — | | |
|
1 – 4 family residential
|
| | | | (0.02)% | | | | | | (0.02)% | | |
|
Multi-family residential
|
| | | | — | | | | | | — | | |
|
Consumer
|
| | | | 0.02% | | | | | | — | | |
|
Total loans
|
| | | | 0.11% | | | | | | 0.18% | | |
| | | |
As of
December 31, 2025 |
| |
As of
December 31, 2024 |
| ||||||||||||||||||
| | | |
Amount
|
| |
Percent of
Loans to Total Loans |
| |
Amount
|
| |
Percent of
Loans to Total Loans |
| ||||||||||||
| | | |
(Dollars in thousands)
|
| |||||||||||||||||||||
|
Commercial & industrial
|
| | | $ | 4,254 | | | | | | 0.76% | | | | | $ | 5,782 | | | | | | 1.13% | | |
|
Nonfarm nonresidential
|
| | | | 5,750 | | | | | | 2.34% | | | | | | 5,201 | | | | | | 2.04% | | |
|
Construction & land development
|
| | | | 1,900 | | | | | | 3.22% | | | | | | 1,065 | | | | | | 1.95% | | |
|
1 – 4 family residential
|
| | | | 217 | | | | | | 0.95 | | | | | | 210 | | | | | | 0.90 | | |
|
Multi-family residential
|
| | | | 578 | | | | | | 1.42 | | | | | | 586 | | | | | | 1.90 | | |
|
Consumer
|
| | | | 341 | | | | | | 0.72 | | | | | | 133 | | | | | | 0.64 | | |
|
Total loans
|
| | | $ | 13,040 | | | | | | 1.02% | | | | | $ | 12,977 | | | | | | 1.07% | | |
|
(Dollars in thousands)
|
| |
December 31,
2025 |
| |
December 31,
2024 |
| ||||||
|
Federal Home Loan Bank advances
|
| | | $ | 17,691 | | | | | $ | 130,641 | | |
|
Subordinated notes
|
| | | | 7,000 | | | | | | 7,000 | | |
| | | |
Actual
|
| |
Minimum for Capital
Adequacy Purposes |
| |
Minimum To Be Well
Capitalized Under Prompt Corrective Action Provision |
| |||||||||||||||||||||||||||
| | | |
(Dollars in thousands)
|
| |||||||||||||||||||||||||||||||||
| | | |
Amount
|
| |
Ratio
|
| |
Amount
|
| |
Ratio
|
| |
Amount
|
| |
Ratio
|
| ||||||||||||||||||
| As of December 31, 2025 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
CET1 Risk-Based Capital Ratio
|
| | | $ | 255,700 | | | | | | 16.31% | | | | | $ | 109,767 | | | | | | 7.0% | | | | | $ | 101,927 | | | | | | 6.5% | | |
|
Total Risk-Based Capital Ratio
|
| | | | 269,644 | | | | | | 17.20% | | | | | | 164,651 | | | | | | 10.5% | | | | | | 156,810 | | | | | | 10.0% | | |
|
Tier 1 Risk-Based Capital Ratio
|
| | | | 255,700 | | | | | | 16.31% | | | | | | 133,289 | | | | | | 8.5% | | | | | | 125,448 | | | | | | 8.0% | | |
|
Tier 1 Leverage Ratio
|
| | | | 255,700 | | | | | | 12.18% | | | | | | 83,984 | | | | | | 4.0% | | | | | | 104,980 | | | | | | 5.0% | | |
| As of December 31, 2024 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
CET1 Risk-Based Capital Ratio
|
| | | $ | 217,625 | | | | | | 14.91% | | | | | $ | 102,162 | | | | | | 7.0% | | | | | $ | 94,865 | | | | | | 6.5% | | |
|
Total Risk-Based Capital Ratio
|
| | | | 231,472 | | | | | | 15.86% | | | | | | 153,243 | | | | | | 10.5% | | | | | | 145,946 | | | | | | 10.0% | | |
|
Tier 1 Risk-Based Capital Ratio
|
| | | | 217,625 | | | | | | 14.91% | | | | | | 124,054 | | | | | | 8.5% | | | | | | 116,757 | | | | | | 8.0% | | |
|
Tier 1 Leverage Ratio
|
| | | | 217,625 | | | | | | 9.96% | | | | | | 87,380 | | | | | | 4.0% | | | | | | 109,225 | | | | | | 5.0% | | |
| | | |
For years ended December 31,
|
| |||||||||||||||||||||||||||||||||
| | | |
2025
|
| |
2024
|
| ||||||||||||||||||||||||||||||
| | | |
Average
Balance |
| |
Interest
|
| |
Average
Yield / Cost |
| |
Average
Balance |
| |
Interest
|
| |
Average
Yield / Cost |
| ||||||||||||||||||
| | | |
(Dollars in thousands)
|
| |||||||||||||||||||||||||||||||||
| Interest Earning Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Loans
|
| | | | 1,248,160 | | | | | | 87,233 | | | | | | 6.99% | | | | | | 1,176,015 | | | | | | 87,761 | | | | | | 7.46% | | |
|
Securities
|
| | | | 393,225 | | | | | | 10,577 | | | | | | 2.69% | | | | | | 372,138 | | | | | | 9,240 | | | | | | 2.48% | | |
|
Interest earning cash and other
|
| | | | 293,582 | | | | | | 12,027 | | | | | | 4.10% | | | | | | 399,913 | | | | | | 20,136 | | | | | | 5.04% | | |
|
Total interest earning assets
|
| | | | 1,934,967 | | | | | | 109,837 | | | | | | 5.68% | | | | | | 1,948,066 | | | | | | 117,137 | | | | | | 6.01% | | |
|
Non interest earning assets
|
| | | | 44,696 | | | | | | | | | | | | | | | | | | 46,554 | | | | | | | | | | | | | | |
|
Total average assets
|
| | | | 1,979,663 | | | | | | | | | | | | | | | | | | 1,994,620 | | | | | | | | | | | | | | |
| Interest Bearing Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Savings, Now, money market deposits
|
| | | | 1,076,138 | | | | | | 24,349 | | | | | | 2.26% | | | | | | 970,457 | | | | | | 30,195 | | | | | | 3.11% | | |
|
Time deposits
|
| | | | 66,010 | | | | | | 2,446 | | | | | | 3.71% | | | | | | 90,841 | | | | | | 3,922 | | | | | | 4.32% | | |
|
Total interest bearing deposits
|
| | | | 1,142,148 | | | | | | 26,795 | | | | | | 2.35% | | | | | | 1,061,298 | | | | | | 34,117 | | | | | | 3.21% | | |
|
Short term borrowings
|
| | | | 43,673 | | | | | | 1,531 | | | | | | 3.51% | | | | | | 128,400 | | | | | | 5,289 | | | | | | 4.12% | | |
|
Subordinated debt
|
| | | | 7,000 | | | | | | 541 | | | | | | 7.73% | | | | | | 7,000 | | | | | | 606 | | | | | | 8.66% | | |
|
Total interest bearing liabilities
|
| | | | 1,192,821 | | | | | | 28,867 | | | | | | 2.42% | | | | | | 1,196,698 | | | | | | 40,012 | | | | | | 3.34% | | |
| Noninterest Bearing Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Noninterest bearing deposits
|
| | | | 572,012 | | | | | | | | | | | | | | | | | | 621,258 | | | | | | | | | | | | | | |
|
Other
|
| | | | 18,095 | | | | | | | | | | | | | | | | | | 20,625 | | | | | | | | | | | | | | |
|
Total noninterest bearing liabilities
|
| | | | 590,107 | | | | | | | | | | | | | | | | | | 641,883 | | | | | | | | | | | | | | |
|
Stockholders’ equity
|
| | | | 196,735 | | | | | | | | | | | | | | | | | | 156,039 | | | | | | | | | | | | | | |
|
Total liabilities and equity
|
| | | | 1,979,663 | | | | | | | | | | | | | | | | | | 1,994,620 | | | | | | | | | | | | | | |
|
Net interest income
|
| | | | | | | | | | 80,970 | | | | | | | | | | | | | | | | | | 77,125 | | | | | | | | |
|
Net interest spread
|
| | | | | | | | | | | | | | | | 3.26% | | | | | | | | | | | | | | | | | | 2.67% | | |
|
Net interest margin
|
| | | | | | | | | | | | | | | | 4.18% | | | | | | | | | | | | | | | | | | 3.96% | | |
|
Deposits (including noninterest bearing)
|
| | | | 1,714,160 | | | | | | 26,795 | | | | | | 1.56% | | | | | | 1,682,556 | | | | | | 34,117 | | | | | | 2.03% | | |
| | | |
Years Ended December 31,
2025 vs. 2024 |
| |||||||||||||||
| | | |
Increase
(Decrease) due to |
| |
Total
Increase (Decrease) |
| ||||||||||||
| | | |
Volume
|
| |
Rate
|
| ||||||||||||
| | | |
(Dollars in thousands)
|
| |||||||||||||||
| Interest earned on: | | | | | | | | | | | | | | | | | | | |
|
Loans
|
| | | $ | 5,216 | | | | | $ | (5,744) | | | | | $ | (528) | | |
|
Securities
|
| | | | 541 | | | | | | 796 | | | | | | 1,337 | | |
|
Interest earning cash and other
|
| | | | (4,767) | | | | | | (3,342) | | | | | | (8,109) | | |
|
Total interest income
|
| | | | 990 | | | | | | (8,290) | | | | | | (7,300) | | |
| Interest paid on: | | | | | | | | | | | | | | | | | | | |
|
Savings, NOW, money market deposits
|
| | | | 3,032 | | | | | | (8,878) | | | | | | (5,846) | | |
|
Time deposits
|
| | | | (972) | | | | | | (504) | | | | | | (1,476) | | |
|
Total interest bearing deposits
|
| | | | 2,060 | | | | | | (9,382) | | | | | | (7,322) | | |
|
Short term borrowings
|
| | | | (3,066) | | | | | | (692) | | | | | | (3,758) | | |
|
Subordinated debt
|
| | | | — | | | | | | (65) | | | | | | (65) | | |
|
Total interest expense
|
| | | | (1,006) | | | | | | (10,139) | | | | | | (11,145) | | |
|
Change in net interest income
|
| | | $ | 1,996 | | | | | $ | 1,849 | | | | | $ | 3,845 | | |
| | | | | | F-2 – F-3 | | | |
| | Financial Statements | | | | | | | |
| | | | | | F-4 | | | |
| | | | | | F-5 | | | |
| | | | | | F-6 | | | |
| | | | | | F-7 | | | |
| | | | | | F-8 | | | |
| | | | | | F-9 – F-34 | | |
| | | |
2025
|
| |
2024
|
| ||||||
| Assets | | | | | | | | | | | | | |
|
Cash and due from banks
|
| | |
$
|
12,228,701
|
| | | | $ | 13,962,834 | | |
|
Interest-bearing deposits held at other financial institutions
|
| | |
|
296,413,320
|
| | | | | 508,038,837 | | |
|
Total cash and cash equivalents
|
| | |
|
308,642,021
|
| | | | | 522,001,671 | | |
|
Interest-bearing time deposits held at other financial institutions
|
| | |
|
9,902,721
|
| | | | | 12,144,721 | | |
|
Investment securities, available-for-sale
|
| | |
|
374,463,824
|
| | | | | 392,476,650 | | |
|
Federal Home Loan Bank stock
|
| | |
|
1,858,400
|
| | | | | 6,625,000 | | |
|
Loans
|
| | |
|
1,278,361,874
|
| | | | | 1,216,104,123 | | |
|
Allowance for credit losses
|
| | |
|
(13,038,051)
|
| | | | | (12,976,274) | | |
|
Net loans
|
| | |
|
1,265,323,823
|
| | | |
|
1,203,127,849
|
| |
|
Other real estate owned
|
| | |
|
1,890,000
|
| | | | | — | | |
|
Leasehold improvements and equipment, net
|
| | |
|
1,298,567
|
| | | | | 1,423,575 | | |
|
Accrued interest receivable and other assets
|
| | |
|
31,074,088
|
| | | | | 37,049,642 | | |
| | | | | $ | 1,994,453,444 | | | | | $ | 2,174,849,108 | | |
| Liabilities and Stockholders’ Equity | | | | | | | | | | | | | |
| Liabilities | | | | | | | | | | | | | |
|
Deposits
|
| | | | | | | | | | | | |
|
Noninterest-bearing
|
| | |
$
|
578,252,678
|
| | | | $ | 644,176,582 | | |
|
Interest-bearing
|
| | |
|
1,140,131,841
|
| | | | | 1,205,302,955 | | |
|
Total deposits
|
| | |
|
1,718,384,519
|
| | | | | 1,849,479,537 | | |
|
Short-term borrowings
|
| | |
|
17,691,487
|
| | | | | 130,641,487 | | |
|
Subordinated notes
|
| | |
|
7,000,000
|
| | | | | 7,000,000 | | |
|
Accrued interest payable and other liabilities
|
| | |
|
31,576,234
|
| | | | | 18,046,616 | | |
|
Total liabilities
|
| | |
|
1,774,652,240
|
| | | | | 2,005,167,640 | | |
| Commitments and Contingencies (Note 13) | | | | | | | | | | | | | |
| Stockholders’ equity | | | | | | | | | | | | | |
|
Common stock, $1 par value; authorized 2,500,000 shares; issued and
outstanding 1,354,837 shares |
| | |
|
1,354,837
|
| | | | | 1,354,837 | | |
|
Additional paid-in capital
|
| | |
|
35,554,980
|
| | | | | 35,170,689 | | |
|
Retained earnings
|
| | |
|
226,184,081
|
| | | | | 189,001,062 | | |
|
Accumulated other comprehensive loss
|
| | |
|
(40,641,563)
|
| | | | | (53,104,237) | | |
| | | | |
|
222,452,335
|
| | | | | 172,422,351 | | |
|
Treasury stock, 64,562 and 65,497 shares as of December 31, 2025 and 2024, respectively
|
| | |
|
(2,651,131)
|
| | | | | (2,740,883) | | |
|
Total stockholders’ equity
|
| | |
|
219,801,204
|
| | | | | 169,681,468 | | |
| | | | |
$
|
1,994,453,444
|
| | | | $ | 2,174,849,108 | | |
| | | |
2025
|
| |
2024
|
| ||||||
| Interest and dividend income: | | | | | | | | | | | | | |
|
Loans, including fees
|
| | |
$
|
86,404,737
|
| | | | $ | 86,962,560 | | |
|
Investment securities
|
| | |
|
10,576,867
|
| | | | | 9,240,074 | | |
|
Federal Home Loan Bank stock
|
| | |
|
238,308
|
| | | | | 579,145 | | |
|
Interest-bearing time deposits held at other financial institutions
|
| | |
|
12,616,859
|
| | | | | 20,355,320 | | |
|
Total interest income
|
| | |
|
109,836,771
|
| | | | | 117,137,099 | | |
| Interest expense: | | | | | | | | | | | | | |
|
Deposits
|
| | |
|
26,795,449
|
| | | | | 34,116,458 | | |
|
Subordinated notes
|
| | |
|
540,573
|
| | | | | 606,264 | | |
|
Federal funds purchased and other borrowings
|
| | |
|
1,530,871
|
| | | | | 5,289,014 | | |
|
Total interest expense
|
| | |
|
28,866,893
|
| | | | | 40,011,736 | | |
|
Net interest income
|
| | |
|
80,969,878
|
| | | | | 77,125,363 | | |
|
Provision for credit losses
|
| | |
|
1,380,130
|
| | | | | 2,918,044 | | |
|
Provision for unfunded loan commitments
|
| | |
|
34,425
|
| | | | | 142,495 | | |
|
Net interest income after provision for credit losses
|
| | |
|
79,555,323
|
| | | | | 74,064,824 | | |
| Noninterest income: | | | | | | | | | | | | | |
|
Service charges and fees on customer accounts
|
| | |
|
7,255,634
|
| | | | | 6,736,304 | | |
|
Credit card income
|
| | |
|
1,633,647
|
| | | | | 1,796,993 | | |
|
Realized loss on available-for-sale securities
|
| | |
|
—
|
| | | | | (20) | | |
|
Total noninterest income
|
| | |
|
8,889,281
|
| | | | | 8,533,277 | | |
| Noninterest expenses: | | | | | | | | | | | | | |
|
Salaries and employee benefits
|
| | |
|
23,515,889
|
| | | | | 22,686,439 | | |
|
Occupancy and equipment expense
|
| | |
|
1,935,602
|
| | | | | 1,869,833 | | |
|
Data processing
|
| | |
|
2,270,648
|
| | | | | 1,829,120 | | |
|
Credit cards
|
| | |
|
838,298
|
| | | | | 784,691 | | |
|
Marketing
|
| | |
|
541,397
|
| | | | | 386,288 | | |
|
Professional fees
|
| | |
|
1,124,638
|
| | | | | 1,276,030 | | |
|
Other real estate expense, net
|
| | |
|
11,518
|
| | | | | — | | |
|
FDIC insurance assessment
|
| | |
|
927,952
|
| | | | | 1,109,800 | | |
|
Other expense
|
| | |
|
5,946,862
|
| | | | | 4,834,471 | | |
|
Total noninterest expenses
|
| | |
|
37,112,804
|
| | | | | 34,776,672 | | |
|
Net income before income tax expense
|
| | |
|
51,331,800
|
| | | | | 47,821,429 | | |
|
Income tax expense
|
| | |
|
14,148,781
|
| | | | | 13,491,570 | | |
|
Net income
|
| | |
$
|
37,183,019
|
| | | | $ | 34,329,859 | | |
| | | |
2025
|
| |
2024
|
| ||||||
|
Net income
|
| | |
$
|
37,183,019
|
| | | | $ | 34,329,859 | | |
| Other comprehensive income: | | | | | | | | | | | | | |
|
Unrealized net holding gain (loss) arising during the period before tax
|
| | |
|
17,402,702
|
| | | | | (4,502,330) | | |
|
Reclassification adjustment for net realized loss on AFS Securities
|
| | |
|
—
|
| | | | | (20) | | |
|
Income tax applicable to other comprehensive (loss) income
|
| | |
|
(4,940,029)
|
| | | | | 878,716 | | |
|
Other comprehensive income (loss), net of tax
|
| | |
|
12,462,673
|
| | | | | (3,623,634) | | |
|
Comprehensive income
|
| | |
$
|
49,645,692
|
| | | | $ | 30,706,225 | | |
| | | |
Common
Stock |
| |
Additional
Paid-In Capital |
| |
Retained
Earnings |
| |
Accumulated
Other Comprehensive Loss |
| |
Treasury
Stock |
| |
Total
|
| ||||||||||||||||||
|
Balance, December 31, 2023
|
| | | $ | 1,354,837 | | | | | $ | 34,735,203 | | | | | $ | 154,671,203 | | | | | $ | (49,480,603) | | | | | $ | (2,593,047) | | | | | $ | 138,687,593 | | |
|
Net income
|
| | | $ | — | | | | | $ | — | | | | | $ | 34,329,859 | | | | | $ | — | | | | | $ | — | | | | | | 34,329,859 | | |
|
Other comprehensive loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (3,623,634) | | | | | | — | | | | | | (3,623,634) | | |
|
Stock-based compensation
|
| | | | — | | | | | | 435,486 | | | | | | — | | | | | | — | | | | | | — | | | | | | 435,486 | | |
|
Option exercise
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 40,786 | | | | | | 40,786 | | |
|
Sale of treasury stock
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 378 | | | | | | 378 | | |
|
Repurchase of treasury stock
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (189,000) | | | | | | (189,000) | | |
|
Balance, December 31, 2024
|
| | | | 1,354,837 | | | | | | 35,170,689 | | | | | | 189,001,062 | | | | | | (53,104,237) | | | | | | (2,740,883) | | | | | | 169,681,468 | | |
|
Net income
|
| | | | — | | | | | | — | | | | | | 37,183,019 | | | | | | — | | | | | | — | | | | | | 37,183,019 | | |
|
Other comprehensive income
|
| | | | — | | | | | | — | | | | | | — | | | | | | 12,462,674 | | | | | | — | | | | | | 12,462,674 | | |
|
Stock-based compensation
|
| | | | — | | | | | | 384,291 | | | | | | — | | | | | | — | | | | | | — | | | | | | 384,291 | | |
|
Option exercise
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 89,753 | | | | | | 89,753 | | |
|
Balance, December 31, 2025
|
| | | $ | 1,354,837 | | | | | $ | 35,554,980 | | | | | $ | 226,184,081 | | | | | $ | (40,641,563) | | | | | $ | (2,651,130) | | | | | $ | 219,801,205 | | |
| | | |
2025
|
| |
2024
|
| ||||||
| Cash Flows From Operating Activities | | | | | | | | | | | | | |
|
Net income
|
| | |
$
|
37,183,019
|
| | | | $ | 34,329,859 | | |
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
| | | | | | | | | | | | |
|
Amortization on investment securities
|
| | |
|
404,827
|
| | | | | 333,023 | | |
|
Stock-based compensation
|
| | |
|
384,291
|
| | | | | 435,486 | | |
|
Depreciation and amortization
|
| | |
|
(457,365)
|
| | | | | (438,092) | | |
|
Deferred income taxes
|
| | |
|
47,791
|
| | | | | (614,971) | | |
|
Provision for credit losses
|
| | |
|
1,380,130
|
| | | | | 2,918,044 | | |
|
Provision for unfunded loan commitments
|
| | |
|
34,425
|
| | | | | 142,496 | | |
|
Decrease in accrued interest receivable and other assets
|
| | |
|
987,733
|
| | | | | 3,292,347 | | |
|
Increase in accrued interest payable and other liabilities
|
| | |
|
13,529,618
|
| | | | | 3,708,149 | | |
|
Net cash provided by operating activities
|
| | |
|
53,494,469
|
| | | | | 44,106,341 | | |
| Cash Flows From Investing Activities | | | | | | | | | | | | | |
|
Decrease in interest-bearing time deposits held at other financial institutions
|
| | |
|
2,242,000
|
| | | | | 2,222,841 | | |
|
Purchases of investment securities, net of unsettled security trades
|
| | |
|
(13,887,185)
|
| | | | | (50,135,963) | | |
|
Sales of Federal Home Loan Bank stock
|
| | |
|
4,766,600
|
| | | | | — | | |
|
Proceeds from maturities and prepayments of investment securities
|
| | |
|
48,897,887
|
| | | | | 30,892,818 | | |
|
Net increase in loans
|
| | |
|
(65,500,529)
|
| | | | | (67,178,513) | | |
|
Purchases of leasehold improvements and equipment
|
| | |
|
582,373
|
| | | | | 454,278 | | |
|
Net cash used in investing activities
|
| | |
|
(22,898,854)
|
| | | | | (83,744,539) | | |
| Cash Flows From Financing Activities | | | | | | | | | | | | | |
|
Net (decrease) increase in noninterest-bearing deposits
|
| | |
|
(65,923,904)
|
| | | | | 13,542,824 | | |
|
Net (decrease) increase in interest-bearing deposits
|
| | |
|
(65,171,114)
|
| | | | | 329,016,251 | | |
|
Proceeds of FHLB advances
|
| | |
|
2,000,000
|
| | | | | 5,641,487 | | |
|
Payments of FHLB advances
|
| | |
|
(114,950,000)
|
| | | | | — | | |
|
Option exercise
|
| | |
|
89,753
|
| | | | | 40,786 | | |
|
Net activity in treasury stock
|
| | |
|
—
|
| | | | | (188,622) | | |
|
Net cash provided by financing activities
|
| | |
|
(243,955,265)
|
| | | | | 348,052,726 | | |
|
Net (decrease) increase in cash and cash equivalents
|
| | |
|
(213,359,650)
|
| | | | | 308,414,528 | | |
| Cash and cash equivalents: | | | | | | | | | | | | | |
|
Beginning
|
| | |
|
522,001,671
|
| | | | | 213,587,143 | | |
|
Ending
|
| | |
$
|
308,642,021
|
| | | | $ | 522,001,671 | | |
| Supplemental Disclosures of Cash Flow Information | | | | | | | | | | | | | |
|
Cash payments for interest
|
| | |
$
|
27,227,812
|
| | | | $ | 34,162,679 | | |
|
Cash payments for income taxes
|
| | |
|
16,226,000
|
| | | | | 14,065,000 | | |
|
Lease liabilities arising from obtaining right-of-use assets
|
| | |
|
641,143
|
| | | |
|
—
|
| |
|
Transfer of loan to other real estate owned
|
| | |
|
(1,890,000)
|
| | | |
|
—
|
| |
| | | |
2025
|
| |||||||||||||||||||||
| | | |
Amortized
Cost |
| |
Gross
Unrealized Gains |
| |
Gross
Unrealized Losses |
| |
Fair
Value |
| ||||||||||||
| Securities available-for-sale | | | | | | | | | | | | | | | | | | | | | | | | | |
|
U.S. government sponsored agency mortgage-backed securities
|
| | | $ | 195,621,385 | | | | | $ | 58,487 | | | | | $ | (23,309,746) | | | | | $ | 172,370,126 | | |
|
U.S. government sponsored collateralized mortgage obligations
|
| | | | 211,765,355 | | | | | | 11,087 | | | | | | (30,892,018) | | | | | | 180,884,424 | | |
|
States and political subdivisions in the U.S.
|
| | | | 22,899,771 | | | | | | 81,836 | | | | | | (1,772,333) | | | | | | 21,209,274 | | |
| | | | | $ | 430,286,511 | | | | | $ | 151,410 | | | | | $ | (55,974,097) | | | | | $ | 374,463,824 | | |
| | | |
2024
|
| |||||||||||||||||||||
| | | |
Amortized
Cost |
| |
Gross
Unrealized Gains |
| |
Gross
Unrealized Losses |
| |
Fair
Value |
| ||||||||||||
| Securities available-for-sale | | | | | | | | | | | | | | | | | | | | | | | | | |
|
U.S. government sponsored agency mortgage-backed securities
|
| | | $ | 215,356,171 | | | | | $ | 489 | | | | | $ | (33,497,423) | | | | | $ | 181,859,237 | | |
|
U.S. government sponsored collateralized mortgage obligations
|
| | | | 227,293,111 | | | | | | — | | | | | | (37,036,203) | | | | | | 190,256,908 | | |
|
States and political subdivisions in the U.S.
|
| | | | 23,052,758 | | | | | | — | | | | | | (2,692,253) | | | | | | 20,360,505 | | |
| | | | | $ | 465,702,040 | | | | | $ | 489 | | | | | $ | (73,225,879) | | | | | $ | 392,476,650 | | |
| | | |
2025
|
| |||||||||||||||||||||||||||||||||
| | | |
Continuous Unrealized
Losses Existing for Less than 12 Months |
| |
Continuous Unrealized
Losses Existing for Greater than 12 Months |
| |
Total
|
| |||||||||||||||||||||||||||
|
Description of Securities
|
| |
Fair Value
|
| |
Unrealized
Losses |
| |
Fair Value
|
| |
Unrealized
Losses |
| |
Fair Value
|
| |
Unrealized
Losses |
| ||||||||||||||||||
|
U.S. government sponsored agency mortgage-backed securities
|
| | | $ | 498,172 | | | | | $ | (4,568) | | | | | $ | 164,984,722 | | | | | $ | (23,305,178) | | | | | $ | 165,482,894 | | | | | $ | (23,309,746) | | |
|
U.S. government sponsored collateralized mortgage obligations
|
| | | | 12,469,887 | | | | | | (23,529) | | | | | | 159,591,478 | | | | | | (30,868,489) | | | | | | 172,061,365 | | | | | | (30,892,018) | | |
|
States and political subdivisions in the U.S.
|
| | | | — | | | | | | — | | | | | | 16,634,809 | | | | | | (1,772,333) | | | | | | 16,634,809 | | | | | | (1,772,333) | | |
|
Total
|
| | | $ | 12,968,059 | | | | | $ | (28,097) | | | | | $ | 341,211,009 | | | | | $ | (55,946,000) | | | | | $ | 354,179,068 | | | | | $ | (55,974,097) | | |
| | | |
2024
|
| |||||||||||||||||||||||||||||||||
| | | |
Continuous Unrealized
Losses Existing for Less than 12 Months |
| |
Continuous Unrealized
Losses Existing for Greater than 12 Months |
| |
Total
|
| |||||||||||||||||||||||||||
|
Description of Securities
|
| |
Fair Value
|
| |
Unrealized
Losses |
| |
Fair Value
|
| |
Unrealized
Losses |
| |
Fair Value
|
| |
Unrealized
Losses |
| ||||||||||||||||||
|
U.S. government sponsored agency mortgage-backed securities
|
| | | $ | 18,458,649 | | | | | $ | (207,240) | | | | | $ | 162,898,848 | | | | | $ | (33,290,182) | | | | | $ | 181,357,497 | | | | | $ | (33,497,423) | | |
|
U.S. government sponsored collateralized mortgage obligations
|
| | | | 34,265,495 | | | | | | (109,771) | | | | | | 155,991,413 | | | | | | (36,926,432) | | | | | | 190,256,908 | | | | | | (37,036,203) | | |
|
States and political subdivisions in the U.S.
|
| | | | 4,438,815 | | | | | | (53,285) | | | | | | 15,921,690 | | | | | | (2,638,968) | | | | | | 20,360,505 | | | | | | (2,692,253) | | |
|
Total
|
| | | $ | 57,162,959 | | | | | $ | (370,296) | | | | | $ | 334,811,951 | | | | | $ | (72,855,582) | | | | | $ | 391,974,910 | | | | | $ | (73,225,879) | | |
| | | |
2025
|
| |
2024
|
| ||||||
|
Commercial and industrial
|
| | | $ | 558,940,370 | | | | | $ | 513,570,362 | | |
|
Nonfarm nonresidential
|
| | | | 478,814,283 | | | | | | 493,339,584 | | |
|
Construction and land development
|
| | | | 109,103,959 | | | | | | 112,758,054 | | |
|
1 – 4 family residential
|
| | | | 44,693,221 | | | | | | 45,985,799 | | |
|
Multi-family (5+) residential
|
| | | | 40,759,342 | | | | | | 30,789,808 | | |
|
Consumer
|
| | | | 47,252,753 | | | | | | 20,734,752 | | |
| | | | | | 1,279,563,928 | | | | | | 1,217,178,359 | | |
|
Allowance for credit losses
|
| | | | (13,038,051) | | | | | | (12,976,274) | | |
|
Net deferred (costs), net
|
| | | | (1,202,054) | | | | | | (1,074,236) | | |
| | | | | $ | 1,265,323,823 | | | | | $ | 1,203,127,849 | | |
| | | |
2025
|
| |||||||||||||||||||||||||||||||||
| | | |
Current
|
| |
30 – 59 Days
Past Due |
| |
60 – 89 Days
Past Due |
| |
Loans Past
Due 90 Days or More |
| |
Total
|
| |
Nonaccrual
Loans |
| ||||||||||||||||||
|
Commercial and industrial
|
| | | $ | 542,502,135 | | | | | $ | — | | | | | $ | 7,000,000 | | | | | $ | 9,438,235 | | | | | $ | 558,940,370 | | | | | $ | 759,811 | | |
|
Nonfarm nonresidential
|
| | | | 424,075,597 | | | | | | — | | | | | | 19,588,333 | | | | | | 35,150,353 | | | | | | 478,814,283 | | | | | | 35,150,353 | | |
|
Construction and land
development |
| | | | 109,103,959 | | | | | | — | | | | | | — | | | | | | — | | | | | | 109,103,959 | | | | | | — | | |
|
1 – 4 family residential
|
| | | | 44,693,221 | | | | | | — | | | | | | — | | | | | | — | | | | | | 44,693,221 | | | | | | — | | |
|
Multi-family (5+) residential
|
| | | | 40,759,342 | | | | | | — | | | | | | — | | | | | | — | | | | | | 40,759,342 | | | | | | — | | |
|
Consumer
|
| | | | 47,252,753 | | | | | | — | | | | | | — | | | | | | — | | | | | | 47,252,753 | | | | | | — | | |
|
Total
|
| | | $ | 1,208,387,007 | | | | | $ | — | | | | | $ | 26,588,333 | | | | | $ | 44,588,588 | | | | | $ | 1,279,563,928 | | | | | $ | 35,910,164 | | |
| | | |
2024
|
| |||||||||||||||||||||||||||||||||
| | | |
Current
|
| |
30 – 59 Days
Past Due |
| |
60 – 89 Days
Past Due |
| |
Loans Past
Due 90 Days or More |
| |
Total
|
| |
Nonaccrual
Loans |
| ||||||||||||||||||
|
Commercial and industrial
|
| | | $ | 508,831,845 | | | | | $ | — | | | | | $ | 1,027,045 | | | | | $ | 3,711,472 | | | | | $ | 513,570,362 | | | | | $ | 4,984,764 | | |
|
Nonfarm nonresidential
|
| | | | 482,402,595 | | | | | | — | | | | | | 795,000 | | | | | | 10,141,989 | | | | | | 493,339,584 | | | | | | 11,730,425 | | |
|
Construction and land development
|
| | | | 108,855,387 | | | | | | — | | | | | | — | | | | | | 3,902,667 | | | | | | 112,758,054 | | | | | | 3,902,667 | | |
|
1 – 4 family residential
|
| | | | 44,385,799 | | | | | | — | | | | | | — | | | | | | 1,600,000 | | | | | | 45,985,799 | | | | | | 1,600,000 | | |
|
Multi-family (5+) residential
|
| | | | 30,789,808 | | | | | | — | | | | | | — | | | | | | — | | | | | | 30,789,808 | | | | | | — | | |
|
Consumer
|
| | | | 20,734,752 | | | | | | — | | | | | | — | | | | | | — | | | | | | 20,734,752 | | | | | | — | | |
|
Total
|
| | | $ | 1,196,000,186 | | | | | $ | — | | | | | $ | 1,822,045 | | | | | $ | 19,356,128 | | | | | $ | 1,217,178,359 | | | | | $ | 22,217,856 | | |
| | | |
2025
|
| |||||||||||||||
| | | |
Nonaccrual With
No Allowance for Credit Loss |
| |
Nonaccrual
|
| |
Loans Past Due
90 Days or More Still Accruing |
| |||||||||
|
Commercial and industrial
|
| | | $ | 759,811 | | | | | $ | 759,811 | | | | | $ | — | | |
|
Nonfarm nonresidential
|
| | | | 27,000,000 | | | | | | 35,150,353 | | | | | | — | | |
|
Construction and land development
|
| | | | — | | | | | | — | | | | | | — | | |
|
1 – 4 family residential
|
| | | | — | | | | | | — | | | | | | — | | |
|
Multi-family (5+) residential
|
| | | | — | | | | | | — | | | | | | — | | |
|
Consumer
|
| | | | — | | | | | | — | | | | | | — | | |
|
Total
|
| | | $ | 27,759,811 | | | | | $ | 35,910,164 | | | | | $ | — | | |
| | | |
2024
|
| |||||||||||||||
| | | |
Nonaccrual With
No Allowance for Credit Loss |
| |
Nonaccrual
|
| |
Loans Past Due
90 Days or More Still Accruing |
| |||||||||
|
Commercial and industrial
|
| | | $ | 2,924,872 | | | | | $ | 4,984,764 | | | | | $ | — | | |
|
Nonfarm nonresidential
|
| | | | 8,615,909 | | | | | | 11,730,425 | | | | | | — | | |
|
Construction and land development
|
| | | | 3,902,667 | | | | | | 3,902,667 | | | | | | — | | |
|
1 – 4 family residential
|
| | | | 1,600,000 | | | | | | 1,600,000 | | | | | | — | | |
|
Multi-family (5+) residential
|
| | | | — | | | | | | — | | | | | | — | | |
|
Consumer
|
| | | | — | | | | | | — | | | | | | — | | |
|
Total
|
| | | $ | 17,043,448 | | | | | $ | 22,217,856 | | | | | $ | — | | |
| | | |
2025
|
| |||||||||||||||||||||||||||||||||
| | | |
Pass
|
| |
Special
Mention |
| |
Substandard
|
| |
Doubtful
|
| |
Loss
|
| |
Total
|
| ||||||||||||||||||
|
Commercial and industrial
|
| | | $ | 544,408,245 | | | | | $ | 13,772,314 | | | | | $ | — | | | | | $ | 759,811 | | | | | $ | — | | | | | $ | 558,940,370 | | |
|
Nonfarm nonresidential
|
| | | | 421,940,497 | | | | | | 21,673,159 | | | | | | 50,274 | | | | | | 35,150,353 | | | | | | — | | | | | | 478,814,283 | | |
|
Construction and land development
|
| | | | 109,103,959 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 109,103,959 | | |
|
1 – 4 Family Residential
|
| | | | 44,693,221 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 44,693,221 | | |
|
Multi-family (5+) residential
|
| | | | 40,759,342 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 40,759,342 | | |
|
Consumer
|
| | | | 47,252,753 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 47,252,753 | | |
|
Total
|
| | | $ | 1,208,158,017 | | | | | $ | 35,445,473 | | | | | $ | 50,274 | | | | | $ | 35,910,164 | | | | | $ | — | | | | | $ | 1,279,563,928 | | |
| | | |
2024
|
| |||||||||||||||||||||||||||||||||
| | | |
Pass
|
| |
Special
Mention |
| |
Substandard
|
| |
Doubtful
|
| |
Loss
|
| |
Total
|
| ||||||||||||||||||
|
Commercial and industrial
|
| | | $ | 499,960,194 | | | | | $ | 8,625,404 | | | | | $ | — | | | | | $ | 4,984,764 | | | | | $ | — | | | | | $ | 513,570,362 | | |
|
Nonfarm nonresidential
|
| | | | 466,776,811 | | | | | | 14,778,049 | | | | | | 54,299 | | | | | | 11,730,425 | | | | | | — | | | | | | 493,339,584 | | |
|
Construction and land development
|
| | | | 108,855,387 | | | | | | — | | | | | | — | | | | | | 3,902,667 | | | | | | — | | | | | | 112,758,054 | | |
|
1 – 4 Family Residential
|
| | | | 44,385,799 | | | | | | — | | | | | | — | | | | | | 1,600,000 | | | | | | — | | | | | | 45,985,799 | | |
|
Multi-family (5+) residential
|
| | | | 30,789,808 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 30,789,808 | | |
|
Consumer
|
| | | | 20,734,752 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 20,734,752 | | |
|
Total
|
| | | $ | 1,171,502,751 | | | | | $ | 23,403,453 | | | | | $ | 54,299 | | | | | $ | 22,217,856 | | | | | $ | — | | | | | $ | 1,217,178,359 | | |
| | | |
2025
|
| |||||||||||||||||||||||||||
| | | |
Unpaid
Principal Balance |
| |
Recorded
Investment |
| |
Average
Recorded Investment |
| |
Allowance for
Credit Losses Allocated |
| |
Interest
Income Recognized |
| |||||||||||||||
| With no related allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Commercial and industrial
|
| | | $ | 1,444,926 | | | | | $ | 759,811 | | | | | $ | 3,694,035 | | | | | $ | — | | | | | $ | — | | |
|
Nonfarm nonresidential
|
| | | | 28,296,230 | | | | | | 27,050,274 | | | | | | 39,279,038 | | | | | | — | | | | | | — | | |
|
Construction and land development
|
| | | | — | | | | | | — | | | | | | 3,898,912 | | | | | | — | | | | | | — | | |
|
1 – 4 family residential
|
| | | | — | | | | | | — | | | | | | 1,600,000 | | | | | | — | | | | | | — | | |
|
Multi-family (5+) residential
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
|
Consumer
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | | | | | 29,741,156 | | | | | | 27,810,085 | | | | | | 48,471,985 | | | | | | — | | | | | | — | | |
| | | |
2025
|
| |||||||||||||||||||||||||||
| | | |
Unpaid
Principal Balance |
| |
Recorded
Investment |
| |
Average
Recorded Investment |
| |
Allowance for
Credit Losses Allocated |
| |
Interest
Income Recognized |
| |||||||||||||||
| With an allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Commercial and industrial
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
|
Nonfarm nonresidential
|
| | | | 8,150,353 | | | | | | 8,150,353 | | | | | | 8,150,354 | | | | | | 1,691,871 | | | | | | — | | |
|
Construction and land development
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
|
1 – 4 family residential
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
|
Multi-family (5+) residential
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
|
Consumer
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | | | | | 8,150,353 | | | | | | 8,150,353 | | | | | | 8,150,354 | | | | | | 1,691,871 | | | | | | — | | |
| | | | | $ | 37,891,509 | | | | | $ | 35,960,438 | | | | | $ | 56,622,339 | | | | | $ | 1,691,871 | | | | | $ | — | | |
| | |||||||||||||||||||||||||||||||
| | | |
2024
|
| |||||||||||||||||||||||||||
| | | |
Unpaid
Principal Balance |
| |
Recorded
Investment |
| |
Average
Recorded Investment |
| |
Allowance for
Loan Losses Allocated |
| |
Interest
Income Recognized |
| |||||||||||||||
| With no related allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Commercial and industrial
|
| | | $ | 4,889,298 | | | | | $ | 2,924,872 | | | | | $ | 5,618,294 | | | | | $ | — | | | | | $ | — | | |
|
Nonfarm nonresidential
|
| | | | 8,845,287 | | | | | | 8,670,208 | | | | | | 8,543,008 | | | | | | — | | | | | | — | | |
|
Construction and land development
|
| | | | 3,902,667 | | | | | | 3,902,667 | | | | | | 3,858,214 | | | | | | — | | | | | | — | | |
|
1 – 4 family residential
|
| | | | 1,600,000 | | | | | | 1,600,000 | | | | | | 1,600,000 | | | | | | — | | | | | | — | | |
|
Multi-family (5+) residential
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
|
Consumer
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | | | | | 19,237,252 | | | | | | 17,097,747 | | | | | | 19,619,516 | | | | | | — | | | | | | — | | |
| With an allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Commercial and industrial
|
| | | | 2,059,891 | | | | | | 2,059,891 | | | | | | 3,442,276 | | | | | | 1,376,963 | | | | | | — | | |
|
Nonfarm nonresidential
|
| | | | 3,114,516 | | | | | | 3,114,516 | | | | | | 3,083,415 | | | | | | 1,314,114 | | | | | | — | | |
|
Construction and land development
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
|
1 – 4 family residential
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
|
Multi-family (5+) residential
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
|
Consumer
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | | | | | 5,174,407 | | | | | | 5,174,407 | | | | | | 6,525,691 | | | | | | 2,691,077 | | | | | | — | | |
| | | | | $ | 24,411,659 | | | | | $ | 22,272,154 | | | | | $ | 26,145,207 | | | | | $ | 2,691,077 | | | | | $ | — | | |
| | | |
2025
|
| |||||||||||||||||||||||||||||||||||||||
| | | |
Commercial
and Industrial |
| |
Nonfarm
Nonresidential |
| |
Construction
and Land Development |
| |
1 – 4
Family Residential |
| |
Multi-Family
(5+) Residential |
| |
Consumer
|
| |
Total
|
| |||||||||||||||||||||
|
Balance, beginning
|
| | | $ | 5,781,634 | | | | | $ | 5,200,758 | | | | | $ | 1,064,717 | | | | | $ | 210,342 | | | | | $ | 586,233 | | | | | $ | 132,589 | | | | | $ | 12,976,273 | | |
|
Provision for credit losses
|
| | | | (1,440,172) | | | | | | 1,782,631 | | | | | | 835,136 | | | | | | (1,506) | | | | | | (8,704) | | | | | | 212,745 | | | | | | 1,380,130 | | |
|
Loans charged-off
|
| | | | (213,720) | | | | | | (1,245,956) | | | | | | — | | | | | | — | | | | | | — | | | | | | (4,818) | | | | | | (1,464,494) | | |
|
Recoveries of loans previously
charged-off |
| | | | 126,052 | | | | | | 12,159 | | | | | | — | | | | | | 7,900 | | | | | | — | | | | | | 31 | | | | | | 146,142 | | |
|
Balance, ending
|
| | | $ | 4,253,794 | | | | | $ | 5,749,592 | | | | | $ | 1,899,853 | | | | | $ | 216,736 | | | | | $ | 577,529 | | | | | $ | 340,547 | | | | | $ | 13,038,051 | | |
|
AULC balance, beginning of period
|
| | | $ | 755,101 | | | | | $ | 72,122 | | | | | $ | 1,272 | | | | | $ | 13,874 | | | | | $ | 6,828 | | | | | $ | 22,230 | | | | | $ | 871,427 | | |
|
Provision for unfunded lending
commitments |
| | | | (37,046) | | | | | | 14,787 | | | | | | 167 | | | | | | (13) | | | | | | 623 | | | | | | 55,907 | | | | | $ | 34,425 | | |
|
AULC balance, end of period
|
| | | $ | 718,055 | | | | | $ | 86,909 | | | | | $ | 1,439 | | | | | $ | 13,861 | | | | | $ | 7,451 | | | | | $ | 78,137 | | | | | $ | 905,852 | | |
|
ACL balance, end of period
|
| | | $ | 4,971,849 | | | | | $ | 5,836,501 | | | | | $ | 1,901,292 | | | | | $ | 230,597 | | | | | $ | 584,980 | | | | | $ | 418,684 | | | | | $ | 13,943,903 | | |
|
Period-ended amount allocated to:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Individually evaluated for impairment
|
| | | $ | — | | | | | $ | 1,691,871 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 1,691,871 | | |
|
Collectively evaluated for impairment
|
| | | | 4,253,794 | | | | | | 4,057,721 | | | | | | 1,899,853 | | | | | | 216,736 | | | | | | 577,529 | | | | | | 340,547 | | | | | | 11,346,180 | | |
|
Ending balance
|
| | | $ | 4,253,794 | | | | | $ | 5,749,592 | | | | | $ | 1,899,853 | | | | | $ | 216,736 | | | | | $ | 577,529 | | | | | $ | 340,547 | | | | | $ | 13,038,051 | | |
| Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Individually evaluated for impairment
|
| | | $ | 759,811 | | | | | $ | 35,200,627 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 35,960,438 | | |
|
Collectively evaluated for impairment
|
| | | | 558,180,559 | | | | | | 443,613,656 | | | | | | 109,103,959 | | | | | | 44,693,221 | | | | | | 40,759,342 | | | | | | 47,252,753 | | | | | | 1,243,603,490 | | |
|
Ending balance
|
| | | $ | 558,940,370 | | | | | $ | 478,814,283 | | | | | $ | 109,103,959 | | | | | $ | 44,693,221 | | | | | $ | 40,759,342 | | | | | $ | 47,252,753 | | | | | $ | 1,279,563,928 | | |
| | | |
2024
|
| |||||||||||||||||||||||||||||||||||||||
| | | |
Commercial
and Industrial |
| |
Nonfarm
Nonresidential |
| |
Construction
and Land Development |
| |
1 – 4
Family Residential |
| |
Multi-Family
(5+) Residential |
| |
Consumer
|
| |
Total
|
| |||||||||||||||||||||
|
Balance, beginning
|
| | | $ | 5,902,386 | | | | | $ | 3,665,960 | | | | | $ | 1,967,868 | | | | | $ | 305,825 | | | | | $ | 162,028 | | | | | $ | 141,155 | | | | | $ | 12,145,222 | | |
|
Provision for loan losses
|
| | | | 1,807,760 | | | | | | 1,701,318 | | | | | | (903,151) | | | | | | (103,383) | | | | | | 424,205 | | | | | | (8,706) | | | | | | 2,918,043 | | |
|
Loans charged-off
|
| | | | (1,964,426) | | | | | | (175,079) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (2,139,505) | | |
|
Recoveries of loans previously
charged-off |
| | | | 35,914 | | | | | | 8,559 | | | | | | — | | | | | | 7,900 | | | | | | — | | | | | | 140 | | | | | | 52,513 | | |
|
Balance, ending
|
| | | $ | 5,781,634 | | | | | $ | 5,200,758 | | | | | $ | 1,064,717 | | | | | $ | 210,342 | | | | | $ | 586,233 | | | | | $ | 132,589 | | | | | $ | 12,976,273 | | |
|
AULC balance, beginning of period
|
| | | $ | 623,816 | | | | | $ | 21,181 | | | | | $ | 64,047 | | | | | $ | 13,658 | | | | | $ | 1,529 | | | | | $ | 4,701 | | | | | $ | 728,932 | | |
|
Provision for unfunded lending
commitments |
| | | | 131,285 | | | | | | 50,941 | | | | | | (62,775) | | | | | | 216 | | | | | | 5,299 | | | | | | 17,529 | | | | | $ | 142,495 | | |
|
AULC balance, end of period
|
| | | $ | 755,101 | | | | | $ | 72,122 | | | | | $ | 1,272 | | | | | $ | 13,874 | | | | | $ | 6,828 | | | | | $ | 22,230 | | | | | $ | 871,427 | | |
|
ACL balance, end of period
|
| | | $ | 6,536,735 | | | | | $ | 5,272,880 | | | | | $ | 1,065,989 | | | | | $ | 224,216 | | | | | $ | 593,061 | | | | | $ | 154,819 | | | | | $ | 13,847,700 | | |
|
Period-ended amount allocated to:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Individually evaluated for impairment
|
| | | $ | 1,376,963 | | | | | $ | 1,314,114 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 2,691,077 | | |
|
Collectively evaluated for impairment
|
| | | | 4,404,671 | | | | | | 3,886,644 | | | | | | 1,064,717 | | | | | | 210,342 | | | | | | 586,233 | | | | | | 132,589 | | | | | | 10,285,196 | | |
|
Ending balance
|
| | | $ | 5,781,634 | | | | | $ | 5,200,758 | | | | | $ | 1,064,717 | | | | | $ | 210,342 | | | | | $ | 586,233 | | | | | $ | 132,589 | | | | | $ | 12,976,273 | | |
| Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Individually evaluated for impairment
|
| | | $ | 4,984,764 | | | | | $ | 11,784,724 | | | | | $ | 3,902,667 | | | | | $ | 1,600,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 22,272,155 | | |
|
Collectively evaluated for impairment
|
| | | | 508,585,598 | | | | | | 481,554,860 | | | | | | 108,855,387 | | | | | | 44,385,799 | | | | | | 30,789,808 | | | | | | 20,734,752 | | | | | | 1,194,906,204 | | |
|
Ending balance
|
| | | $ | 513,570,362 | | | | | $ | 493,339,584 | | | | | $ | 112,758,054 | | | | | $ | 45,985,799 | | | | | $ | 30,789,808 | | | | | $ | 20,734,752 | | | | | $ | 1,217,178,359 | | |
| | | |
2025
|
| |
2024
|
| ||||||
|
Leasehold improvements
|
| | | $ | 1,323,403 | | | | | $ | 1,323,403 | | |
|
Furniture and equipment
|
| | | | 2,046,913 | | | | | | 1,980,043 | | |
| | | | | | 3,370,316 | | | | | | 3,303,446 | | |
|
Less accumulated depreciation
|
| | | | 2,071,749 | | | | | | 1,879,871 | | |
| | | | | $ | 1,298,567 | | | | | $ | 1,423,575 | | |
| | | |
2025
|
| |
2024
|
| ||||||
|
NOW and money market accounts
|
| | | $ | 1,041,529,314 | | | | | $ | 1,113,966,380 | | |
|
Savings
|
| | | | 35,739,573 | | | | | | 23,345,548 | | |
|
Time certificates, $250,000 or more
|
| | | | 56,581,222 | | | | | | 60,663,881 | | |
|
Other time certificates
|
| | | | 6,281,732 | | | | | | 7,327,146 | | |
| | | | | $ | 1,140,131,841 | | | | | $ | 1,205,302,955 | | |
| |
2026
|
| | | $ | 36,417,476 | | |
| |
2027
|
| | | | 25,807,740 | | |
| |
2028
|
| | | | 581,931 | | |
| |
2029
|
| | | | 55,807 | | |
| | | | | | $ | 62,862,954 | | |
| | | |
2025
|
| |
2024
|
| ||||||
|
Current
|
| | | $ | 14,100,990 | | | | | $ | 14,106,541 | | |
|
Deferred
|
| | | | 47,791 | | | | | | (614,971) | | |
| | | | | $ | 14,148,781 | | | | | $ | 13,491,570 | | |
| | | |
2025
|
| |
2024
|
| ||||||
|
Federal income tax at statutory rate
|
| | | $ | 10,779,678 | | | | | $ | 10,042,500 | | |
| Increase (decrease) due to: | | | | | | | | | | | | | |
|
State income tax, net of federal benefit
|
| | | | 3,154,479 | | | | | | 3,145,229 | | |
|
Stock options
|
| | | | 60,965 | | | | | | 75,432 | | |
|
Life insurance
|
| | | | 5,147 | | | | | | 5,147 | | |
|
Other nondeductible expenses
|
| | | | 138,980 | | | | | | 111,564 | | |
|
Tax exempt income
|
| | | | (102,373) | | | | | | (63,383) | | |
|
Other
|
| | | | 111,905 | | | | | | 175,081 | | |
| | | | | $ | 14,148,781 | | | | | $ | 13,491,570 | | |
| | | |
2025
|
| |
2024
|
| ||||||
| Deferred tax assets: | | | | | | | | | | | | | |
|
Allowance for credit losses
|
| | | $ | 3,514,035 | | | | | $ | 3,518,710 | | |
|
Deferred loan fees
|
| | | | 323,979 | | | | | | 291,295 | | |
|
Net unrealized losses on investment securities
|
| | | | 15,045,415 | | | | | | 19,856,153 | | |
|
Nonqualified stock options
|
| | | | 109,833 | | | | | | 85,018 | | |
|
Reserve for unfunded commitments
|
| | | | 244,147 | | | | | | 236,300 | | |
|
Interest on non-accrual loans
|
| | | | 476,103 | | | | | | 565,824 | | |
|
Deferred rent
|
| | | | 72,937 | | | | | | 81,102 | | |
|
FDIC expense
|
| | | | 61,235 | | | | | | 74,706 | | |
|
Accrued expenses
|
| | | | 23,952 | | | | | | 24,012 | | |
|
Total deferred tax assets
|
| | | | 19,871,636 | | | | | | 24,733,120 | | |
| Deferred tax liabilities: | | | | | | | | | | | | | |
|
Depreciation
|
| | | | (196,635) | | | | | | (239,979) | | |
|
Prepaid expenses
|
| | | | (186,163) | | | | | | (145,774) | | |
|
Total deferred tax liabilities
|
| | | | (382,798) | | | | | | (385,753) | | |
|
Net deferred tax
|
| | | $ | 19,488,838 | | | | | $ | 24,347,367 | | |
| | | |
Shares
|
| |
Average
Exercise Price |
| ||||||
|
Outstanding at December 31, 2023
|
| | | | 75,927 | | | | | $ | 99.91 | | |
|
Granted
|
| | | | 8,240 | | | | | | 189.00 | | |
|
Exercised
|
| | | | (365) | | | | | | 123.94 | | |
|
Forfeited
|
| | | | (80) | | | | | | 127.13 | | |
|
Outstanding at December 31, 2024
|
| | | | 83,722 | | | | | $ | 99.91 | | |
|
Granted
|
| | | | 8,236 | | | | | | 216.00 | | |
|
Exercised
|
| | | | (935) | | | | | | 115.43 | | |
|
Forfeited
|
| | | | (5,900) | | | | | | 111.74 | | |
|
Outstanding at December 31, 2025
|
| | | | 85,123 | | | | | $ | 115.74 | | |
|
Exercisable at December 31, 2025
|
| | | | 61,328 | | | | | $ | 89.54 | | |
| | | |
2025
|
| |
2024
|
| ||||||
|
Dividend yield
|
| | | | 0.0% | | | | | | 0.0% | | |
|
Expected volatility
|
| | | | 35.4% | | | | | | 17.9% | | |
|
Risk free rate of return
|
| | | | 4.3% | | | | | | 4.5% | | |
|
Expected life in years
|
| | | | 10 | | | | | | 10 | | |
| | | |
Number
of Shares |
| |
Weighted
Average Grant Date Fair Value |
| ||||||
|
Non-vested options at December 31, 2023
|
| | | | 28,023 | | | | | $ | 51.38 | | |
|
Granted
|
| | | | 8,240 | | | | | | 78.45 | | |
|
Vested
|
| | | | (8,662) | | | | | | 43.70 | | |
|
Forfeited
|
| | | | (80) | | | | | | 49.50 | | |
|
Non-vested options at December 31, 2024
|
| | | | 27,521 | | | | | $ | 61.81 | | |
|
Granted
|
| | | | 8,236 | | | | | | 117.97 | | |
|
Vested
|
| | | | (5,992) | | | | | | 60.56 | | |
|
Forfeited
|
| | | | (5,900) | | | | | | 59.18 | | |
|
Non-vested options at December 31, 2025
|
| | | | 23,865 | | | | | $ | 83.79 | | |
| | | |
2025
|
| |
2024
|
| ||||||
|
Notional amounts
|
| | | $ | 55,807,101 | | | | | $ | 58,192,151 | | |
|
Fair value of interest rate swap agreements
|
| | | | 1,686,198 | | | | | | 3,634,494 | | |
|
Weighted-average fixed rates
|
| | | | 5.09% | | | | | | 5.08% | | |
|
Weighted-average maturity
|
| |
3.39 years
|
| |
4.38 years
|
| ||||||
| | | |
2025
|
| |
2024
|
| ||||||
|
Commitments to extend credit
|
| | | $ | 600,434,000 | | | | | $ | 492,882,000 | | |
|
Standby letters of credit
|
| | | | 15,699,000 | | | | | | 18,654,000 | | |
| |
2026
|
| | | $ | 746,949 | | |
| |
2027
|
| | | | 682,540 | | |
| |
2028
|
| | | | 547,904 | | |
| |
2029
|
| | | | 541,136 | | |
| |
2030
|
| | | | 241,513 | | |
| | | | | | $ | 2,760,042 | | |
| | | |
Actual
|
| |
Minimum For Capital
Adequacy Purposes With Capital Buffer |
| |
Minimum
To Be Well Capitalized |
| |||||||||||||||||||||||||||
| | | |
Amount
|
| |
Ratio
|
| |
Amount
|
| |
Ratio
|
| |
Amount
|
| |
Ratio
|
| ||||||||||||||||||
| December 31, 2025 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
CET1 Risk-Based Capital Ratio
|
| | | $ | 255,700,000 | | | | | | 16.31% | | | | | $ | 109,767,000 | | | | | | 7.00% | | | | | $ | 101,927,000 | | | | | | 6.50% | | |
|
Total Risk-Based Capital Ratio
|
| | | | 269,644,000 | | | | | | 17.20% | | | | | | 164,651,000 | | | | | | 10.50% | | | | | | 156,810,000 | | | | | | 10.00% | | |
|
Tier 1 Risk-Based Capital Ratio
|
| | | | 255,700,000 | | | | | | 16.31% | | | | | | 133,289,000 | | | | | | 8.50% | | | | | | 125,448,000 | | | | | | 8.00% | | |
|
Tier 1 Leverage Ratio
|
| | | | 255,700,000 | | | | | | 12.18% | | | | | | 83,984,000 | | | | | | 4.00% | | | | | | 104,980,000 | | | | | | 5.00% | | |
| | | |
Actual
|
| |
Minimum For Capital
Adequacy Purposes With Capital Buffer |
| |
Minimum
To Be Well Capitalized |
| |||||||||||||||||||||||||||
| | | |
Amount
|
| |
Ratio
|
| |
Amount
|
| |
Ratio
|
| |
Amount
|
| |
Ratio
|
| ||||||||||||||||||
| December 31, 2024 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
CET1 Risk-Based Capital Ratio
|
| | | $ | 217,625,000 | | | | | | 14.91% | | | | | $ | 102,162,000 | | | | | | 7.00% | | | | | $ | 94,865,000 | | | | | | 6.50% | | |
|
Total Risk-Based Capital Ratio
|
| | | | 231,472,000 | | | | | | 15.86% | | | | | | 153,243,000 | | | | | | 10.50% | | | | | | 145,946,000 | | | | | | 10.00% | | |
|
Tier 1 Risk-Based Capital Ratio
|
| | | | 217,625,000 | | | | | | 14.91% | | | | | | 124,054,000 | | | | | | 8.50% | | | | | | 116,757,000 | | | | | | 8.00% | | |
|
Tier 1 Leverage Ratio
|
| | | | 217,625,000 | | | | | | 9.96% | | | | | | 87,380,000 | | | | | | 4.00% | | | | | | 109,225,000 | | | | | | 5.00% | | |
| | | |
2025
|
| |||||||||||||||||||||
| | | |
December 31,
2025 |
| |
Quoted Prices
in Active Markets for Identical Assets (Level 1) |
| |
Significant
Other Observable Inputs (Level 2) |
| |
Significant
Unobservable Inputs (Level 3) |
| ||||||||||||
| Assets: | | | | | | | | | | | | | | | | | | | | | | | | | |
|
U.S. government sponsored agency mortgage-backed securities
|
| | | $ | 172,370,126 | | | | | $ | — | | | | | $ | 172,370,126 | | | | | $ | — | | |
|
U.S. government sponsored collateralized mortgage obligations
|
| | | | 180,884,424 | | | | | | — | | | | | | 180,884,424 | | | | | | — | | |
|
States and political subdivisions in the U.S.
|
| | | | 21,209,274 | | | | | | — | | | | | | 21,209,274 | | | | | | | | |
|
Derivative contracts
|
| | | | 1,686,198 | | | | | | — | | | | | | 1,686,198 | | | | | | — | | |
|
Total
|
| | | $ | 376,150,022 | | | | | $ | — | | | | | $ | 376,150,022 | | | | | $ | — | | |
| Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Derivative contracts
|
| | | $ | 1,686,198 | | | | | $ | — | | | | | $ | 1,686,198 | | | | | $ | — | | |
| | | |
2024
|
| |||||||||||||||||||||
| | | |
December 31,
2024 |
| |
Quoted Prices
in Active Markets for Identical Assets (Level 1) |
| |
Significant
Other Observable Inputs (Level 2) |
| |
Significant
Unobservable Inputs (Level 3) |
| ||||||||||||
| Assets: | | | | | | | | | | | | | | | | | | | | | | | | | |
|
U.S. government sponsored agency mortgage-backed securities
|
| | | $ | 181,859,237 | | | | | $ | — | | | | | $ | 181,859,237 | | | | | $ | — | | |
|
U.S. government sponsored collateralized mortgage obligations
|
| | | | 190,256,908 | | | | | | — | | | | | | 190,256,908 | | | | | | — | | |
|
States and political subdivisions in the U.S.
|
| | | | 20,360,505 | | | | | | — | | | | | | 20,360,505 | | | | | | | | |
|
Derivative contracts
|
| | | | 3,634,494 | | | | | | — | | | | | | 3,634,494 | | | | | | — | | |
|
Total
|
| | | $ | 396,111,144 | | | | | $ | — | | | | | $ | 396,111,144 | | | | | $ | — | | |
| Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Derivative contracts
|
| | | $ | 3,634,494 | | | | | $ | — | | | | | $ | 3,634,494 | | | | | $ | — | | |
| | | |
2025
|
| |||||||||||||||||||||
| | | |
December 31,
2025 |
| |
Quoted Prices
in Active Markets for Identical Assets (Level 1) |
| |
Significant
Other Observable Inputs (Level 2) |
| |
Significant
Unobservable Inputs (Level 3) |
| ||||||||||||
| Assets: | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Collateral dependent loans
|
| | | $ | 34,268,567 | | | | | $ | — | | | | | $ | — | | | | | $ | 34,268,567 | | |
|
Other real estate owned
|
| | | | 1,890,000 | | | | | | — | | | | | | — | | | | | | 1,890,000 | | |
|
Total
|
| | | $ | 36,158,567 | | | | | $ | — | | | | | $ | — | | | | | $ | 36,158,567 | | |
| | | |
2024
|
| |||||||||||||||||||||
| | | |
December 31,
2024 |
| |
Quoted Prices
in Active Markets for Identical Assets (Level 1) |
| |
Significant
Other Observable Inputs (Level 2) |
| |
Significant
Unobservable Inputs (Level 3) |
| ||||||||||||
| Assets: | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Collateral dependent loans
|
| | | $ | 19,581,077 | | | | | $ | — | | | | | $ | — | | | | | $ | 19,581,077 | | |
|
Total
|
| | | $ | 19,581,077 | | | | | $ | — | | | | | $ | — | | | | | $ | 19,581,077 | | |
| |
Signatures
|
| |
Title
|
|
| |
/s/ Andrew C. Sagliocca
Andrew C. Sagliocca
|
| | Vice Chairman, Chief Executive Officer and President (Principal Executive Officer) | |
| |
/s/ Michael Lacapria
Michael Lacapria
|
| | Senior Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) | |
| |
/s/ Anthony Coelho
Anthony Coelho
|
| | Chairman | |
| |
/s/ Todd Deutsch
Todd Deutsch
|
| | Director | |
| |
/s/ Raymond Kelly
Raymond Kelly
|
| | Director | |
| |
Signatures
|
| |
Title
|
|
| |
/s/ Robert J. Mitzman
Robert J. Mitzman
|
| | Director | |
| |
/s/ Rena Nigam
Rena Nigam
|
| | Director | |
| |
/s/ Richard T. Powers
Richard T. Powers
|
| | Director | |
| |
/s/ Kevin C. Waterhouse
Kevin C. Waterhouse
|
| | Director | |
Exhibit 5.1
LUSE GORMAN, PC
5335 WISCONSIN AVENUE, N.W., SUITE 780
WASHINGTON, D.C. 20015
TELEPHONE (202) 274-2000
www.luselaw.com
April 15, 2026
Esquire Financial Holdings, Inc.
100 Jericho Quadrangle, Suite 100
Jericho, New York 11753
Ladies and Gentlemen:
We have acted as special counsel to Esquire Financial Holdings, Inc., a Maryland corporation (the “Company”), in connection with the registration by the Company under the Securities Act of 1933, as amended, of 3,872,988 shares of common stock, par value $0.01 per share (the “Shares”), of the Company and the related preparation and filing by the Company with the Securities and Exchange Commission of a Registration Statement on Form S-4 (the “Registration Statement”). In rendering the opinion set forth below, we do not express any opinion concerning law other than the corporate law of the State of Maryland. We have not passed upon and do not purport to pass upon the application of securities or “blue-sky” laws of any jurisdiction.
We have examined originals or copies, certified or otherwise identified, of such documents, corporate records and other instruments, and have examined such matters of law, as we have deemed necessary or advisable for purposes of rendering the opinion set forth below. As to matters of fact, we have examined and relied upon the representations of the Company contained in the Registration Statement and, where we have deemed appropriate, representations or certificates of officers of the Company or of public officials. We have assumed the authenticity of all documents submitted to us as originals, the genuineness of all signatures, the legal capacity of natural persons and the conformity to the originals of all documents submitted to us as copies. In making our examination of any documents, we have assumed that all parties other than the Company had the corporate power and authority to enter into and perform all obligations thereunder, and, as to such other parties, we have also assumed the due authorization by all requisite action, the due execution and delivery of such documents and the validity and binding effect and enforceability thereof.
Based on and subject to the foregoing, we are of the opinion that the Shares are duly authorized and, when issued as contemplated in the Registration Statement and the Agreement and Plan of Merger by and between the Company, Esquire Merger Sub, Inc., and Signature Bancorporation, Inc., dated as of March 11, 2026, will be validly issued, fully paid and nonassessable.
We consent to the filing of this opinion as an exhibit to the Registration Statement and to the reference to our firm under the heading “Legal Matters” in the joint proxy statement/prospectus, which is part of such Registration Statement. In giving such consent, we do not thereby admit that we are within the category of persons whose consent is required under Section 7 of the Securities Act or the rules and regulations of the SEC thereunder.
| Very truly yours, | |
| /s/ Luse Gorman, PC | |
| LUSE GORMAN, PC |
Exhibit 8.1
LUSE GORMAN, PC
ATTORNEYS AT LAW
5335 WISCONSIN AVENUE, N.W., SUITE 780
WASHINGTON, D.C. 20015
TELEPHONE (202) 274-2000
FACSIMILE (202) 362-2902
www.luselaw.com
April 15, 2026
Board of Directors
Esquire Financial Holdings, Inc.
100 Jericho Quadrangle, Suite 100
Jericho, NY 11753
| Re: | Registration Statement on Form S-4 |
Ladies and Gentlemen:
We have acted as special counsel to Esquire Financial Holdings, Inc., a Maryland corporation (“Esquire”), in connection with the transactions described in the Agreement and Plan of Merger, dated as of March 11, 2026 (the “Merger Agreement”), by and among Esquire, Signature Bancorporation, Inc., an Illinois corporation (“Signature”), and Esquire Merger Sub, Inc. a Maryland corporation and a wholly owned subsidiary of Esquire (“Merger Sub”), pursuant to which Merger Sub will merge with and into Signature, with Signature remaining as the surviving corporation (the “Merger”), and as soon as reasonably practicable following the Merger and as part of a single integrated transaction for purposes of the Internal Revenue Code of 1986, as amended, Signature will merge with and into Esquire (the “Second Step Merger”, and together with the Merger, the “Mergers”), with Esquire remaining as the surviving corporation in the Second Step Merger. At your request, and in connection with the preparation and filing of the related Registration Statement on Form S-4, which includes the Joint Proxy Statement/Prospectus (the “Proxy Statement/Prospectus”), as initially filed by Esquire with the U.S. Securities and Exchange Commission on April 15, 2026 (the “Registration Statement”), we are providing this opinion.
In connection with this opinion, we have reviewed: (i) the Merger Agreement; (ii) the Registration Statement; and (iii) the Proxy Statement/Prospectus. We have not, however, undertaken any independent investigation of any factual matter set forth in any of the foregoing. For purposes of this opinion, we have assumed, with your permission, (i) that the Mergers will be consummated in the manner described in Merger Agreement and the Registration Statement, and (ii) the statements concerning the Mergers set forth in the Merger Agreement and the Registration Statement are true and complete and will remain true and complete at all times up to and including the Effective Time (as defined in the Merger Agreement). We have also assumed that the parties have complied with, and will continue to comply with, the obligations, covenants and agreements contained in the Merger Agreement.
We have participated in the preparation of the discussion set forth in the section entitled “MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES OF THE MERGER” in the Registration Statement. Based on the foregoing and subject to the qualifications, assumptions and limitations stated herein and in the Registration Statement, it is our opinion that such discussion of those consequences, insofar as it summarizes United States federal income tax law, is accurate in all material respects.
Esquire Financial Holdings, Inc.
April 15, 2026
Page 2
We hereby consent to the filing of this opinion as an exhibit to the Registration Statement and to the references to us in the Registration Statement. In giving such consent, we do not thereby admit that we are in the category of persons whose consent is required under Section 7 of the Securities Act of 1933, as amended.
| Very truly yours, | |
| /s/ Luse Gorman, PC | |
| Luse Gorman, PC |
Exhibit 8.2
| Vedder Price | T +1 312 609 7500 |
|
| 222 North LaSalle Street | F +1 312 609 5005 | |
| Chicago, Illinois 60601 | vedder.com |
April 15, 2026
|
Signature Bancorporation, Inc. Rosemont, Illinois 60018 |
Ladies and Gentlemen:
We have acted as special counsel to Signature Bancorporation, Inc., an Illinois corporation (“Signature”), in connection with (i) the merger of Esquire Merger Sub, Inc., a Maryland corporation (“Merger Sub”), and wholly-owned subsidiary of Esquire Financial Holdings, Inc., a Maryland corporation (“Esquire”), with and into Signature with Signature as the surviving entity and a wholly-owned subsidiary of Esquire (the “Merger”), pursuant to the Agreement and Plan of Merger dated as of March 11, 2026 by and among Esquire, Merger Sub and Signature (the “Merger Agreement”) and (ii) immediately thereafter, the merger of Signature with and into Esquire with Esquire surviving (the “Second Step Merger,” and together with the Merger, the “Mergers”) pursuant to the Merger Agreement. At your request, and in connection with the filing with the Securities and Exchange Commission of the Registration Statement on Form S-4, including the joint proxy statement/prospectus contained therein, as amended or supplemented through the date hereof, relating to the Mergers (the “Registration Statement”), we are rendering this opinion.
In rendering this opinion, we have examined the Merger Agreement and the Registration Statement and have reviewed such other agreements, documents and corporate records that have been made available to us and such other materials as we have deemed relevant for purposes of this opinion. In such review and examination, we have assumed due authorization and execution of all documents, the genuineness of all signatures, the legal capacity of all natural persons, the authenticity of all documents submitted to us as originals, the conformity to originals of all documents submitted to us as electronic or photostatic copies and the authenticity of the originals of such copies. You have not requested that we undertake, and we have not undertaken, any independent investigation of the accuracy of the facts, representations and assumptions set forth or referred to herein. For purposes of this opinion, we have assumed, with your permission, (i) that the Mergers will be consummated in the manner described in Merger Agreement and the Registration Statement, and (ii) the statements concerning the Mergers set forth in the Merger Agreement and the Registration Statement are true and complete and will remain true and complete at all times up to and including the Effective Time (as defined in the Merger Agreement). We have also assumed that the parties have complied with, and will continue to comply with, the obligations, covenants and agreements contained in the Merger Agreement. If any of the above described assumptions or conditions are untrue or inaccurate for any reason, our opinions as expressed below may be adversely affected.
We have participated in the preparation of the discussion set forth in the section entitled “MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES OF THE MERGER” in the Registration Statement. Based on the foregoing and subject to the qualifications, assumptions and limitations stated herein and in the Registration Statement, it is our opinion that such discussion of those consequences, insofar as it summarizes United States federal income tax law, is accurate in all material respects.
Vedder Price P.C. is affiliated with
Vedder Price LLP, which operates in England and Wales, Vedder Price (CA), LLP, which operates in California,
Vedder Price Pte. Ltd., which
operates in Singapore, and Vedder Price (FL) LLP, which operates in Florida.
Chicago | Dallas | London | Los Angeles | Miami | New York | San Francisco | Singapore | Washington, DC
Signature Bancorporation, Inc.
April 15, 2026
Page 2
We hereby consent to the filing of this opinion as an exhibit to the Registration Statement and to the use of our name and to any reference to our firm in the Registration Statement. In giving such consent, we do not thereby admit that we are within the category of persons whose consent is required under Section 7 of the Securities Act of 1933, as amended, or the rules and regulations of the Securities and Exchange Commission thereunder.
|
Very truly yours,
/s/ vedder price, pc
Vedder price, pc |
Exhibit 10.1
EXECUTION VERSION
ESQUIRE BANK, NATIONAL ASSOCIATION
EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT (“Agreement”) is dated this 11th day of March, 2026, to be effective as of the Effective Date as defined in Section 27 below, by and between Esquire Bank, National Association, a national banking association with its main office in Jericho, New York (the “Bank”), and Michael G. O’Rourke (“Executive”).
Whereas, Executive is presently the President of Signature Bancorporation, Inc. (“Signature”) and Signature Bank, a wholly owned subsidiary of Signature; and
Whereas, Esquire Financial Holdings, Inc. (“Company”) and Signature have executed and delivered an Agreement and Plan of Merger, dated as of March 11, 2026 (the “Merger Agreement”), pursuant to which Signature will merge with and into Company, with Company as the surviving entity (the “Merger”); and
Whereas, in connection with the Merger Agreement, the parties desire to enter into this Agreement in order to induce Executive to accept employment with, and to provide further incentive for Executive to achieve the financial and performance objectives of Bank; and
Whereas, the Executive desires to be employed by Bank and to enter into this Agreement with Bank.
NOW, THEREFORE, in consideration of the mutual covenants herein contained, and upon the other terms and conditions hereinafter provided, the parties hereby agree as follows:
1. POSITION AND RESPONSIBILITIES.
(a) Positions. During the period of Executive’s employment under this Agreement, Executive agrees to serve as President of Chicago Division of the Bank.
(b) Responsibilities. As President of Chicago Division of the Bank, Executive shall have customary duties, authorities and responsibilities commensurate with such position, subject to the oversight and direction of the Chief Executive Officer of the Bank, and shall perform all duties and have all powers that are commonly incident to such offices or which, consistent with such offices, may be delegated to Executive by the Chief Executive Officer of the Bank. During the period of Executive’s employment under this Agreement, except for periods of absence occasioned by illness, vacation, or other reasonable leaves of absence, Executive shall devote substantially all of his business time, attention, skill and efforts to the faithful performance of his duties under this Agreement, including activities and services related to the organization, operation and management of the Bank and its subsidiaries, as well as participation in community, professional and civic organizations; provided, however, that, with the approval of the Bank’s Board, as evidenced by a resolution thereof, Executive may serve, or continue to serve, on the boards of directors of, and hold any other offices or positions in, any such other companies or organizations that, in the judgment of the Bank’s Board, will not present any conflict of interest with the Company, the Bank or their subsidiaries, or materially negatively impact or interfere with Executive’s performance of his duties pursuant to this Agreement.
(c) Working Facilities. The Bank will furnish Executive with the working facilities and staff customary for executive officers with the title and duties set forth in this Agreement and as are necessary for him to perform his duties. The location of such facilities and staff shall be at the Illinois office of the Bank or such other office as may be agreed upon from time to time by the parties. For the avoidance of doubt, it is the intention of the parties hereto that Executive will be employed in, and will primarily perform his duties from, the State of Illinois.
2. TERM OF EMPLOYMENT.
(a) Term. The term of Executive’s employment under this Agreement (the “Term”) shall be (i) the initial term of employment, consisting of the period commencing on the Effective Date and expiring on the second anniversary of the Effective Date, plus (ii) any and all automatic extensions of the Term made pursuant to paragraph (b) of this Section 2 below. Upon expiration of the last day of the Term, if and as thus extended (the “Expiration Date”), Executive’s employment under this Agreement shall terminate, if it has not earlier terminated pursuant to the provisions hereof.
(b) Extension of Term. The Term of Executive’s employment under this Agreement shall be automatically extended by one day upon completion of each day of Executive’s employment hereunder, such that a constantly extending twenty-four (24) calendar month Term shall remain in effect hereunder, provided, however, that the Bank may elect at any time, for any reason or no reason, to discontinue such automatic extension, by delivery of a written notice of such discontinuation to the Executive, prepared and delivered in accordance with the provisions of Section 8(a) below (any such, a “Non-renewal Notice”), in which event the Term of Executive’s employment under this Agreement shall no longer be automatically extended for each day of employment hereunder, but rather shall expire on a fixed Expiration Date, such being the second anniversary of the date of the Non-renewal Notice, as specified in the notice.
(c) Early Termination. At any time during the Term of this Agreement, Executive’s employment hereunder may be terminated early, i.e., before the Expiration Date, (i) by the mutual agreement of the parties hereto, (ii) by one or more of the parties hereto, without the consent of the other party or parties, under certain circumstances and subject to certain terms and conditions as set forth in Sections 4, 5, 6 and 7 hereof, or (iii) upon the death, Disability or Retirement of Executive, as set forth in Section 12 hereof. The effective date of any such early termination of Executive’s employment hereunder shall be referred to as the “Termination Date.”
3. COMPENSATION AND BENEFITS.
(a) Base Salary. During the Term of Executive’s employment under this Agreement, the Bank shall pay to Executive for all services rendered by Executive under this Agreement a single base salary (“Base Salary”) at the initial rate of $650,000 per annum, subject to possible subsequent increases from time to time as provided in the ensuing sentence of this paragraph (a), which Base Salary will be payable in accordance with the customary payroll practices of the Bank. The Bank’s Board or its Compensation Committee (the “Compensation Committee”) shall review not less often than annually the then current per annum rate of Executive’s Base Salary, based upon such factors the board or the Compensation Committee deems relevant, and in connection with any such review, may determine to increase Executive’s Base Salary above its then current per annum rate (in which event the new base salary shall become Executive’s “Base Salary” under this Agreement). Under no circumstances, however, may the Bank’s Board or Compensation Committee, at any time during the Term of Executive’s employment hereunder, determine to decrease Executive’s Base Salary to a per annum rate below the per annum rate then in effect, unless Executive shall have expressly consented in advance in writing to such decrease. In the absence of any review or other action by the Bank’s Board or Compensation Committee, regarding Executive’s Base Salary in any calendar year during the Term of this Agreement, Executive shall continue to receive his Base Salary at the per annum rate then in effect, as last approved by the Bank’s Board or Compensation Committee.
2
(b) Annual Incentive Compensation. The Compensation Committee shall establish and maintain throughout the Term of Executive’s employment under this Agreement an annual cash incentive or cash bonus plan (the “Bonus Plan”), which shall provide Executive with the opportunity to earn, for each calendar year ending during such Term, in addition to the Base Salary payable to Executive during such year, incentive cash compensation in the form of a year-end bonus payment under the Bonus Plan (a “Bonus”), based upon the achievement of performance targets for such year established by the Compensation Committee, which Bonus will not be less than 25% of Executive’s Base Salary for such year (assuming achievement of the minimum threshold level of performance for the principal designated performance target(s) and/or goal(s) for such year). This paragraph (b) shall not be interpreted to guarantee that Executive will receive a Bonus under the Bonus Plan in any calendar year unless the minimum threshold level of performance for the principal Plan target(s) for such year has been achieved, but if such level has been achieved and any and all other conditions to payment of such a Bonus to Executive for such calendar year are met, payment of the Bonus shall be made not later than the March 15 of the immediately ensuing calendar year. Payment to Executive for any calendar year of a Bonus under the Bonus Plan, if any, shall not be construed as an increase in Executive’s Base Salary. Any payment to Executive of a Bonus under the Bonus Plan in any year shall not be offset against, and shall not preclude payment to Executive of, any other special cash incentive compensation or cash bonus under any other incentive compensation plan, program or arrangement of the Company or the Bank that may be applicable to Executive from time to time.
(c) Automobile and Cellular Phone. The Bank shall pay Executive a monthly automobile allowance of $1,000, in accordance with the Bank’s customary payroll practices, whether or not deductible for income tax purposes by the payor. All expenses and maintenance of the automobile shall be borne by Executive. Executive is solely responsible for apportioning the time allocated for personal use of the automobile for applicable income tax purposes. Executive shall comply with reasonable reporting and expense limitations on the use of such automobile, as the Bank may establish from time to time, and Executive’s annual Form W-2 shall reflect any amount attributable to Executive’s personal use of such automobile. The Bank shall also provide Executive with a cellular phone and shall pay (or reimburse) Executive for all reasonable expenses related to the business use of such phone. All expenses and reimbursements of Executive payable by the Bank hereunder shall be paid promptly, and in any event no later than March 15 of the year immediately following the year in which the expenses were incurred.
3
(d) Vacation and Holidays. Executive shall be entitled to four (4) weeks paid vacation each year. To the maximum extent possible, Executive shall take vacation at a time mutually agreed upon by the parties. Executive shall receive his Base Salary and other benefits during periods of vacation. Executive shall also be entitled to paid legal holidays in accordance with the policies of the Bank.
(e) Stock-Based Awards. Executive shall be entitled to participate in any equity or equity-based compensation plans as may be adopted by the Company’s Board and, as necessary, approved by the Company’s stockholders from time to time, under which awards may be granted to senior officers or employees of the Bank or to members of the Bank’s Board who also serve as such senior officers or employees (any such, a “Stock Plan”). The general terms and conditions of any such types of equity awards granted to Executive generally shall be not less favorable from the standpoint of the award recipient than the terms and conditions of such types of awards generally granted to other similarly situated senior officers of the Bank, and the grants of such awards to Executive shall generally be made at the same time and in the same manner as grants to other senior officers of the Bank, as provided and subject to the terms and conditions in the relevant Stock Plan.
(f) Other Employee Benefits. Executive shall be entitled to participate in any employee benefits or perquisites offered to senior officers and employees of the Bank from time to time during the Term of his employment. The Bank will not, without Executive’s prior written consent, make any changes in such plans, arrangements or perquisites which would adversely affect Executive’s rights or benefits thereunder (other than a reduction or elimination of Executive’s benefits under one or more benefit plans maintained by the Bank as part of a good faith, overall reduction or elimination of such plans or benefits applicable to all participants in a manner that does not discriminate against Executive (except as such discrimination may be necessary to comply with applicable law)) without separately providing for an arrangement that ensures Executive receives or will receive the economic value that Executive would otherwise lose as a result of such adverse changes. Without limiting the generality of the foregoing provisions of this paragraph (f), Executive shall be eligible to participate in or receive benefits under all plans relating to stock options, restricted stock awards or restricted stock units, stock purchases, pension, profit sharing, employee stock ownership, group life insurance, medical and other health and welfare coverage that are made available by the Bank currently or at any time in the future during the Term of this Agreement, subject to and on a basis consistent with, the terms, conditions and overall administration of such plans and arrangements. In addition, during the Term of Executive’s employment hereunder, the Bank shall pay the initial and all subsequent annual premiums payable on one or a series of term life insurance policies, to be selected and owned by Executive and insuring the life of Executive, which will at all times provide for a death benefit in an amount at least equal to two times Executive’s average Base Salary plus the average Bonus under the Bonus Plan for the prior two (2) full calendar years (taking into consideration bonuses paid by Signature prior to the Effective Date, as need be, until such time as at least two Bonuses have been paid under this Agreement), and under which policies Executive will have the power to designate the beneficiary(ies).
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| 4. | CERTAIN EARLY TERMINATIONS OF EMPLOYMENT; PAYMENTS AND BENEFITS. |
(a) Termination of Executive by the Bank, Not for Cause. If at any time during the Term of Executive’s employment under this Agreement, the Bank early terminates Executive’s employment (other than a Termination Following a Change in Control under Section 6, a Termination for Cause under Section 7, or a Termination due to Disability under Section 12), the Bank (i) shall pay to Executive the cash payment specified in paragraph (c) of this Section 4, below, and (ii) shall provide and pay to Executive those post-termination benefits and payments specified in paragraph (d) of this Section 4, below. A termination of Executive’s employment by the Bank pursuant to the foregoing sentence (any such, a “Termination Not for Cause”) shall be effected by way of a written Notice of Termination delivered by the Bank to Executive, as defined and subject to the terms and conditions set forth in Section 8(b) below, which notice, among other things, shall identify the proposed Termination Date, which date may not be earlier than the date of the notice. The ultimate Termination Date of Executive’s employment shall be the proposed Termination Date identified in the Notice of Termination, unless prior to such date the parties shall mutually agree in writing (a) that there will not be any such termination of Executive’s employment under this Section 4(a), or (b) that such termination will take place but as of some other date that is earlier or later than such proposed Termination Date, in which event such other date will become the actual Termination Date.
(b) Termination of Employment by Executive for Good Reason.
(i) Executive’s Election and Notice. If at any time during the Term of Executive’s employment under this Agreement, there shall occur any of the specific actions or events, or series of actions or events, that individually or collectively constitute “Good Reason,” as defined in Section 25 of this Agreement, Executive shall have the right, exercisable by him at any time within ninety (90) days after he first becomes aware (or reasonably should have become aware) of such occurrence, to elect to terminate his own employment with the Bank under this Section 4(b). Such termination (a “Termination for Good Reason”) shall be communicated to the other parties by way of a prior written Notice of Termination, as defined and subject to the terms and conditions set forth in Section 8(b) below, delivered by Executive to the Bank, which notice, among other things, shall identify with reasonable specificity the action or event, or series of actions or events, constituting the Good Reason underlying Executive’s election, as well as the proposed Termination Date of his employment, which date may not be earlier than the thirtieth (30th) day following the date of the notice, provided, however, that if Executive elects to terminate his employment for Good Reason following a Change-in-Control, pursuant to and in accordance with the terms and conditions set forth in Section 6 of this Agreement, the proposed termination of employment, if effected, will be deemed a Termination Following a Change in Control, as defined and subject to the terms and conditions set forth in said Section 6, as opposed to a Termination for Good Reason under this Section 4(b), and the consequences of such termination, including the payments and benefits due to Executive, will be those specified in Section 6.
(ii) Possible Cure. If Executive has elected to terminate his own employment under this Section 4(b) and has delivered a Notice of Termination to such effect, the Bank, if it has the ability to cure the actions or conditions constituting the Good Reason cited by Executive in his notice before the proposed Termination Date identified in Executive’s notice (or such later Termination Date as may be agreed upon by the parties), may elect to effect such a cure. If the Bank succeeds in such cure, the proposed Termination for Good Reason by Executive of his own employment under this paragraph (b) will be deemed ineffective, and the mutual obligations, duties and rights of the parties under this Agreement will continue in effect as though Executive had never attempted to terminate his employment for Good Reason.
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(iii) Consequences of Termination. If and when a Termination for Good Reason by Executive of his own employment under this paragraph (b) becomes effective, the Bank (i) shall pay to Executive the cash payment specified in paragraph (c) of this Section 4, below, and (ii) shall provide and pay to Executive the continuing post-termination benefits and payments specified in paragraph (d) of this Section 4, below. The Termination Date of such termination shall be the proposed Termination Date set forth in Executive’s notice of Termination, unless prior to such date the parties shall mutually agree in writing (a) that there will not be any such termination of Executive’s employment under this Section 4(b), or (b) that such termination will take place but as of some other date that is earlier or later than such proposed Termination Date, in which event such other date will become the actual Termination Date.
(c) Cash Payment. In the event of any Termination without Cause of Executive’s employment under Section 4(a) above, or any Termination for Good Reason by Executive of his own employment under Section 4(b) above, the Bank shall pay to Executive (or, if Executive dies after such termination of employment but before such payment, to his beneficiary(ies) or his estate, as the case may be), within the period following the Termination Date specified below, an amount in cash equal to the sum of:
(A) the greater of:
(i) the total dollar amount of Base Salary that would have been payable to Executive hereunder through the Expiration Date of his Term of employment, as in effect immediately prior to his termination, assuming his Base Salary would have continued at its current per annum rate as of the Termination Date throughout such remaining Term, and with no discounting to reflect the assumed current value of future payments; or
(ii) one hundred percent (100%) of Executive’s Base Salary as of the Termination Date; plus
(B) the dollar amount of the Bonus received by Executive under the Bonus Plan for the most recently completed calendar year preceding the Termination Date, multiplied by the greater of:
(i) the number of years (including partial years) included in the period extending from January 1 of the calendar year in which the Termination Date falls until the Expiration Date of the remaining Term of Executive’s employment, as in effect immediately prior to his termination; or
(ii) one (1.0).
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Such total amount shall be paid to Executive in a single lump sum cash distribution made within thirty (30) days following the Termination Date; provided however, if, at the Termination Date, Executive is a “Specified Employee” of the Bank, as defined in Treasury Regulation 1.409-1(i), then, solely to the extent required to avoid penalties under Section 409A of the Internal Revenue Code (the “Code”), such payment shall be delayed until the first day of the seventh full month following the Termination Date. Such payment shall not be reduced in the event Executive obtains other employment following such early termination of his employment hereunder.
(d) Other Post-Termination Benefits. In the event of any Termination without Cause of the Executive’s employment under Section 4(a), above, or any Termination for Good Reason by Executive of his own employment under Section 4(b), above, Executive and his family will no longer be eligible, on and after the Termination Date, to participate in any employee benefit plans, arrangements and perquisites of the Company and/or the Bank, subject to their rights to continuing medical and dental coverage under COBRA; provided however, that the Bank shall pay the cost of Executive’s (and, to the extent eligible under the terms of the applicable plans, Executive’s family members’) continuing medical and dental coverage, as in effect on the Termination Date, and as amended from time to time thereafter, for a period of eighteen (18) months following such Termination Date (the “COBRA Period”), to the extent that Executive and his family members elect COBRA continuation coverage for such period (with the cost of any such COBRA coverage which is self-funded by the Company and/or the Bank to be includable in the taxable income of Executive).
| 5. | VOLUNTARY TERMINATION BY EXECUTIVE OF EMPLOYMENT WITHOUT GOOD REASON. |
(a) 30 Day Prior Notice. If at any time during the Term of Executive’s employment under this Agreement, Executive elects to voluntarily terminate his own employment with the Bank, other than any such early termination that qualifies as (i) a Termination for Good Reason by Executive of his own employment under Section 4(b), above, (ii) a Termination Following a Change in Control by Executive (for Good Reason or without Good Reason) under Section 6, below, or (iii) a termination for Disability or upon Retirement under Section 12, below, Executive shall be obligated to deliver, and shall deliver to the Bank, a prior written Notice of Termination, as defined and subject to the terms and conditions set forth in Section 8(b), below, which notice, among other things, shall identify the proposed Termination Date, which may not be earlier than the thirtieth (30th) day nor later than the forty-fifth (45th) day following the date of the notice. Any such termination of employment (a “Voluntary Termination of Employment”) shall be subject to the right of the Bank to extend the period of Executive’s employment hereunder for a specified period beyond the proposed Termination Date identified by Executive in his notice, as provided in paragraph (c) below.
(b) Payments; Benefits. In the event of any such Voluntary Termination of Employment by Executive under this Section 5, Executive shall be entitled to receive from the Bank, as of or after the Termination Date of his employment, any accrued but unpaid Base Salary payable to Executive as of the Termination Date, as well as any other benefits or rights due to Executive as of or after the Termination Date under any other compensation or benefit plan, policy or arrangement of the Bank as in effect on the Termination Date, including any vested benefits or amounts payable thereunder to Executive as a former employee, in accordance with the terms and conditions of such plans, policies and arrangements, including retirement plans and health and welfare plan. Except as provided in the preceding sentence or in the ensuing paragraph 5(c), Executive shall not be entitled to receive any further compensation or benefits from the Bank after or as a result of any Voluntary Termination of Employment by Executive, except such as may be required to be paid or provided to him under applicable law.
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(c) Extension Period. In the event the Executive elects to terminate his employment voluntarily under this Section 5, and has delivered a Notice of Termination to such effect in accordance with paragraph (a), above, the Bank may elect, by way of a writing delivered to Executive at any time within the fifteen (15) day period following the date of Executive’s Notice of Termination, to extend Executive’s employment with the Bank under this Agreement for a total of ninety (90) days beyond the date on which the Bank makes such election (the “Extension Period”). In such event, the last day of the Extension Period shall be the Termination Date of Executive’s employment hereunder. Following receipt by Executive of the written notice of any such extension, Executive, in addition to performing his usual duties for the Bank hereunder, shall also assist the Bank for the duration of the Extension Period in achieving a successful transition of Executive’s duties from Executive to the person or persons chosen to succeed Executive, in ways the parties hereto reasonably conclude may be both practical and efficacious. In return for Executive’s continued service, as well as his performance of such additional duties, for the duration of the Extension Period, the Bank shall pay to Executive as of or as soon as practicable after the last day of such Extension Period, in addition to any accrued and unpaid Base Salary and other compensation due him at such date, a special cash bonus (the “Transition Bonus”) equal to the sum of
| (i) | fifty percent (50%) of the total dollar amount of the Base Salary payable to Executive for such Extension Period, plus |
| (ii) | thirty-seven and one-half percent (37.5%) of the dollar amount of the annual bonus Executive received under the Bonus Plan for the most recent preceding fiscal year. |
During that portion of the Extension Period in which Employee’s employment continues, the Bank shall pay to Executive his Base Salary and such additional cash compensation, and the Bank shall provide to Executive such additional benefits and perquisites, as would normally be paid or provided to him during the Term of his employment hereunder, includable amounts, if any, payable to Executive under the Bonus Plan. Failure by Executive to continue in the employment of the Bank for the full duration of any Extension Period elected by the Bank under this paragraph (c) shall result in forfeiture by Executive of any right to receive the Transition Bonus or any portion thereof otherwise payable to him under this paragraph (c), as well as the forfeiture by Executive of any other unvested rights Executive may have to any other compensation or benefits as of the date of Executive’s discontinuation of employment.
(d) Termination Date. The Termination Date of any Voluntary Termination of Employment under this Section 5 shall be the proposed Termination Date identified by Executive in his Notice of Termination, or any other Termination Date as may be mutually agreed upon by the parties before such date, provided, however, that if the Bank, having received a Notice of Termination from Executive, elects to require Executive to extend his employment hereunder for an Extension Period, the Termination Date will be the last day of such Extension Period or any earlier date in such period as of which Executive discontinues his employment.
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6. TERMINATION OF EMPLOYMENT FOLLOWING A CHANGE IN CONTROL.
(a) Payment Upon Termination After a Change in Control. If a Change in Control, as defined in Section 25, below, shall occur, and
| (i) | within twenty-four (24) months after the effective date of such Change in Control, the Bank shall terminate Executive’s employment hereunder (other than pursuant to a Termination For Cause under Section 7, below), or |
| (ii) | within twenty-four (24) months after the effective date of such Change in Control, Executive shall terminate his own employment hereunder for Good Reason (as defined in Section 25), or |
| (iii) | within twelve (12) months after the effective date of such Change in Control, Executive shall terminate his own employment hereunder, for any reason or no reason but not for Good Reason, |
the Bank shall pay and provide to Executive (or if Executive dies following such termination of employment and prior to such payment, to his beneficiary or beneficiaries or his estate, as the case may be), as severance pay or liquidated damages, or both, (A) the cash payment as specified in paragraph (b), below, and (B) certain post-termination benefits, as specified in paragraph (c) below. Any such termination of employment under this Section 6 (each, a “Termination Following a Change-in-Control”) shall be effected by way of a written Notice of Termination, as defined and subject to the terms and conditions set forth in Section 8(b), below, delivered by the party(ies) electing to terminate Executive’s employment to the other party or each of the other parties hereto, which notice, among other things, shall identify the proposed Termination Date, which in the case of each such termination shall meet the specified conditions applicable to each set forth in the ensuing sentences, as well as any other information required in connection with such termination. The Termination Date for any Termination Following a Change in Control described in subparagraph (a)(i) or subparagraph (a)(ii), above (and the proposed Termination Date identified in the Notice of Termination relating to any such termination), shall not be later than the day before the second anniversary of the effective date of the Change in Control, and, in the case of any Termination Following a Change in Control described in subparagraph (a)(ii), above, shall not be earlier than the thirtieth (30th) day following the date of the Notice of Termination. The Termination Date for any Termination Following a Change in Control described in subparagraph (a)(iii), above (and the proposed Termination Date identified in the Notice of Termination relating to any such termination), shall not be later than the day before the first anniversary of the effective date of the Change in Control. The Notice of Termination for any Termination Following a Change in Control described in subparagraph (a)(ii), above, must also identify with reasonable specificity the action or event, or series of action and events, constituting the Good Reason underlying Executive’s election, and any such attempted Termination Following a Change in Control under subparagraph (a)(ii), above, shall also be subject to possible cure by the Bank, as such cure is described in Section 4(b)(ii), above, which cure if achieved will render such attempted termination ineffective.
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(b) Cash Payment. In the event any Termination Following a Change in Control under this Section 6 becomes effective, the Bank shall pay to Executive, as severance pay or liquidated damages, or both, an amount in cash equal to 200% of Executive’s average Annual Compensation (as defined below) over the five (5) most recently completed calendar years ending with the year immediately preceding the calendar year in which the effective date of such Change in Control occurs. In determining Executive’s average Annual Compensation, “Annual Compensation” shall include Base Salary and any other taxable income (excluding taxable income related to the vesting of restricted stock and the exercise of stock option awards). If a Change in Control occurs within less than five years after Executive’s current employment by the Bank commenced, then average Annual Compensation shall be determined based on the number of full calendar years for which Executive has been continuously employed by the Bank prior to the year in which the Change in Control occurs. All cash amounts payable to Executive under this paragraph (b) of Section 6 shall be paid in a single cash lump sum distribution within thirty (30) days following the Termination Date of Executive’s employment; provided however, if, at the Termination Date, Executive is a “Specified Employee,” as defined in Treasury Regulation 1.409-1(i), then, solely to the extent required to avoid penalties under Section 409A of the Code, such payment shall be made within the first thirty (30) days after the first day of the seventh full month commencing after such Termination Date. Such payment shall not be reduced in the event Executive obtains other employment following such early termination of his employment hereunder.
(c) Other Post-Termination Benefits. In the event any Termination Following a Change-in-Control under this Section 6 becomes effective, Executive and his family will no longer be eligible, on or after the Termination Date, to participate in any employee benefit plans, arrangements and perquisites of the Company and/or the Bank, subject to their rights to continuing medical and dental coverage under COBRA. The Bank shall pay the cost of Executive’s (and, to the extent eligible under the terms of the applicable plans, Executive’s family members’) medical and dental coverage, as in effect on the Termination Date, and as amended from time to time thereafter, for a period of eighteen (18) months following such Termination Date (the “COBRA Period”), to the extent that Executive and his family members elect COBRA continuation coverage for such period (with the cost of any such COBRA coverage which is self-funded by the Bank to be includable in the taxable income of Executive).
7. TERMINATION OF EXECUTIVE’S EMPLOYMENT FOR CAUSE.
(a) At any time during the Term of this Agreement, including after a Change in Control, the Bank may terminate Executive’s employment hereunder for “Cause,” as defined in Section 25, below. In the event that any termination under this Section 7 (a “Termination for Cause”) becomes effective, Executive shall not have any rights to receive, and shall not receive, any compensation or benefits for any period after the Termination Date, including compensation or benefits that he would otherwise have been entitled to receive after a termination of his employment under any other provisions of this Agreement, except for any such compensation or benefits that he is entitled to receive as a matter of law.
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(b) In order for a Termination for Cause to become effective under this Section 7, each of the following must occur:
| (i) | Notice. The Bank must deliver to Executive a written Notice of Termination, as defined and meeting the requirements set forth in Section 8(b) below, which notice (i) clearly discloses that the Bank intends to terminate Executive for Cause within the meaning of this Section 7, (ii) sets forth in reasonable detail the facts and circumstances allegedly constituting such Cause such that Executive has a fair opportunity to understand and defend himself against such allegations, and (iii) advises Executive of his right to request a hearing, as described in subparagraph (b)(ii), below, and the date or range of dates for such hearing, if requested. |
| (ii) | Hearing. The Bank shall provide Executive with an opportunity to be heard, with assistance of counsel if he so desires, before the Bank’s Board at a hearing to be held on a date or within a range of dates identified in the Notice of Termination, which date may not in any event be earlier than the thirtieth (30th) day after the date of the notice, for the purpose of enabling Executive to demonstrate, through written and/or verbal rebuttal, that Cause for his termination under this Section 7 does not exist. The hearing may be held in conjunction with a regular or special meeting of such board at which the Executive’s Termination for Cause will subsequently be evaluated and determined. |
| (iii) | Final Determination by Board. After the hearing (if there is a hearing), or after a period of at least thirty (30) days has elapsed after the date of the Notice of Termination (if there is not a hearing), the Bank’s Board, acting at a regular or special meeting of such board duly called and held, shall make a final determination in its reasonable discretion as to whether Cause for the termination of Executive exists and if the board determines, by the affirmative vote of not less than three-fourths of the entire membership thereof (excluding Executive), that Cause for the termination of Executives does exist and that Executive should be terminated for Cause, there shall be delivered to Executive written notice of the final determination of such board that Executive be terminated for Cause and identifying the effective date of such termination (the Termination Date). |
(c) Without limiting the foregoing, the Bank, on or after delivery to Executive of the initial Notice of Termination to Executive, may suspend Executive, with or without pay, for a period not to exceed forty (40) days, and such suspension shall not constitute either a Termination without Cause or a Termination for Good Reason of Executive under the Agreement.
8. CERTAIN NOTICES
(a) Notice of Non-Renewal. Any Notice of Non-Renewal delivered by the Bank to Executive under Section 2(b) of this Agreement shall be in writing. Such notice shall state that the C Bank’s Board has elected to discontinue the automatic extension of the Term of Executive’s employment under Section 2(b), by action taken by such board, and shall identify the date on which such board acted, and that such date (or if there is more than one such date, the later of such dates) shall be deemed the date of non-renewal as well as the date of the Notice of Non-Renewal. Any notice given under this Section 8(a) may be delivered to Executive (i) in person, by an agent or representative of the Bank, (ii) by paid courier, (iii) by e-mail, or (iv) by U.S. mail, return receipt requested, in each case, at or addressed to the residence address of Executive (or if by email, the email address of Executive) as set forth at such time on the Bank’s records;
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(b) Notice of Termination. In the event of any early termination of Executive’s employment under this Agreement, including without limitation under any of Sections 4, 5, 6 and 7, the notice of termination required to be delivered by the party(ies) electing to terminate Executive’s employment to the other party hereto (and such, a “Notice of Termination”) shall be in writing, and shall identify (i) the specific termination provision in this Agreement relied upon by the terminating party, (ii) the terminating party’s proposed Termination Date for such termination, and (iii) the date of the notice, determined as provided below. The Notice of Termination shall also set forth such other information, if any, as may be required in the particular termination provision under which the election is being made. The Notice of Termination must be delivered in person by the terminating party, or by a representative or agent of any such party, to the other party1 at the address of the particular party (which shall be the street address of the main office of the Bank on such date, and for Executive, the street address of his principal residence on such date). The date of any Notice of Termination is the date such notice is delivered to the last party entitled to such delivery to whom delivery is made. Such date of delivery shall be set forth on the notice itself, or shall be communicated by the terminating party to the other party by other means, including email or other electronic means of communication, on or as soon as possible after the date of the notice.
(c) Upon delivery by a party to the other party of a Notice of Termination with respect to any early termination of Executive’s employment under this Agreement, the ability of the other party to early terminate Executive’s employment hereunder shall be suspended until the attempt by the party giving the earlier Notice of Termination to achieve such termination is abandoned or fails; provided however, that no provision in this Agreement, including this Section 8(c), will prevent, suspend, or in any way delay or interfere with any determination by the Bank to notify Executive that he is being terminated for Cause and to proceed with all actions required in connection with such termination, which determination, once reached and communicated to Executive by way of a Notice of Termination, will preempt and preclude any other attempt by any party, including Executive, to early terminate his employment, until the for Cause termination proceeding has been completed or abandoned.
9. 280G NET-BEST BENEFIT.
Notwithstanding the preceding paragraphs of Section 6, if the payments and benefits to be afforded to Executive under Section 6 hereof (the “Severance Benefits”) either alone or together with other payments and benefits which Executive has the right to receive from the Bank (or any affiliate) would constitute a “parachute payment” under Section 280G of the Code, and but for this Section 9, would be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then the Severance Benefits shall be reduced (the “Benefit Reduction”) by the minimum amount necessary to result in no portion of the Severance Benefits being subject to the Excise Tax; provided, however, that the Benefit Reduction shall only occur if such reduction would result in Executive’s “Net After-Tax Amount” attributable to the Severance Benefits being greater than it would be if no Benefit Reduction was effected. For this purpose, “Net After-Tax Amount” shall mean the net amount of Severance Benefits the Executive is entitled to under this Agreement after giving effect to all federal, state and local taxes which would be applicable to such payments and benefits, including but not limited to, the Excise Tax. Nothing contained herein shall result in the reduction of any payments or benefits to which the Executive may be entitled upon termination of employment and/or a change in control other than as specified in this Section 9, or a reduction in the Severance Benefits below zero.
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10. POST-TERMINATION OBLIGATIONS.
(a) Post-Termination Payments Subject to Executive’s Compliance with Section 11. The payment or provision by the Bank of any amounts or benefits required to be paid or provided by them to Executive after the termination of his employment under this Agreement shall, unless otherwise specified in Section 11, be subject to Executive’s compliance with Section 11 for one (1) full year after the Expiration Date of Executive’s employment under this Agreement or earlier termination of such employment, Executive shall, upon reasonable notice, furnish to the Bank such information and assistance as may reasonably be required by such entity in connection with any litigation to which it or any of its affiliates or subsidiaries is, or may become, a party.
(b) Post-Termination Cooperation. Executive agrees, upon prior reasonable notice and reimbursement by the Bank of reasonable costs and expenses of Executive, including for his time, to cooperate with the Company, the Bank or their subsidiaries in any legal matters that may require Executive’s participation and/or assistance during the twenty-four (24) month period following the Expiration Date of Executive’s employment under this Agreement or any earlier termination of such employment. Executive expressly agrees to provide reasonable assistance (including testimony where appropriate) in such matters. The Company and/or the Bank will only request such assistance from Executive if such assistance is reasonably necessary.
| 11. | NON-COMPETITION, NON-SOLICITATION, NON-DISCLOSURE AND NON-DISPARAGEMENT. |
(a) Non-Compete. Upon the expiration of Executive’s employment under this Agreement or the earlier termination of such employment, including without limitation under Section 4, 5, 7 or 12(c) of this Agreement, for a period of one year following such Expiration Date or Termination Date, Executive agrees not to compete with the Company, the Bank or any of their subsidiaries, in the Chicago metropolitan area and nationwide, as it relates solely to the Litigation Vertical (as defined in Appendix A attached hereto and incorporated by reference herein) of the Company, the Bank or any of their subsidiaries, except as may be agreed to by the Company or the Bank pursuant to a resolution duly adopted by the Bank’s Board. Executive agrees that during such period and within the Chicago metropolitan area, and nationwide as it relates solely to the Litigation Vertical, Executive shall not work for or advise, consult or otherwise serve with, directly or indirectly, any entity whose business materially competes with the depository, lending or other business activities of the Company, the Bank or their subsidiaries. The parties hereto, recognizing that irreparable injury will result to the Company, the Bank and their subsidiaries, including their business and property, in the event of Executive’s breach of this Section 11(a), agree that in the event of any such breach by Executive, the Company and/or the Bank will be entitled, in addition to any other remedies and damages available, to an injunction to restrain the violation hereof by Executive, Executive’s partners, agents, servants, employees and all persons acting for or under the direction of Executive. Executive represents and admits that, in the event of the expiration or early termination of his employment under this Agreement, Executive’s experience and capabilities are such that Executive will likely be able to obtain employment in a business engaged in other lines and/or of a different nature than the Company, the Bank and its subsidiaries, and that the enforcement of a remedy by way of injunction will not prevent Executive from earning a livelihood. Nothing herein will be construed as prohibiting the Company, the Bank or their subsidiaries from pursuing any other remedies available to them for such breach or threatened breach by Executive of this Section 11(a), including the recovery of damages from Executive.
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(b) Non-Solicitation. Executive recognizes that the business of the Company and the Bank is highly competitive, and therefore acknowledges and agrees that at all times while employed by the Bank and for a period of one year following the Expiration Date of Executive’s employment under this Agreement or earlier termination of such employment, Executive shall not, directly or indirectly, individually or together with any other person, as owner, shareholder, investor, member, partner, proprietor, principal, director, officer, executive, manager, agent, representative, independent contractor, consultant or otherwise:
| (i) | solicit in any manner or seek to obtain the business of any person who is or was a customer or an active prospective customer of the Company or the Bank during the one-year period prior to the Expiration Date or Termination Date of Executive’s employment; or |
| (ii) | request or advise any customer, supplier, vendor or others who were doing business with the Company or the Bank during the one-year period prior to the Expiration Date or Termination Date of Executive’s employment, or any other person, to terminate, reduce, limit or change their business or relationship with the Company or the Bank; or |
| (iii) | induce, request or attempt to influence any officer or employee of the Company or the Bank to terminate his or her employment with the Company or the Bank; |
(c) Non-Disclosure. Executive recognizes and acknowledges that his knowledge of the business activities and plans for business activities of the Company, the Bank and their subsidiaries, as it may exist from time to time, is a valuable, special and unique asset of the business of the Company, the Bank and their subsidiaries. Executive will not, for a period of one year following expiration or termination of his employment hereunder, disclose any knowledge of the past, present, planned or considered business activities of the Company, the Bank and their subsidiaries to any person, firm, corporation or other entity for any reason or purpose whatsoever, unless expressly authorized to do so by the Company’s Board or the Bank’s Board or as required by law. Notwithstanding the foregoing, Executive may disclose any knowledge of banking, financial and/or economic principles, concepts or ideas which are not solely and exclusively derived from the business plans and activities of the Company, the Bank or their subsidiaries. In the event of a breach or threatened breach by Executive of the provisions of this Section 11(c), the Company and/or the Bank will be entitled to an injunction restraining Executive from disclosing, in whole or in part, knowledge of the past, present, planned or considered business activities of the Company, the Bank or their subsidiaries or from rendering any services to any person, firm, corporation or other entity to whom such knowledge, in whole or in part, has been disclosed or is threatened to be disclosed. Nothing herein will be construed as prohibiting the Company and/or the Bank from pursuing any other remedies available to the Company and/or the Bank for such breach or threatened breach of this Section 11(c), including the recovery of damages from Executive. Notwithstanding anything in this Section 11(c) to the contrary, Executive may not disclose any information of the Company or the Bank that constitutes a trade secret unless and until that information ceases, if at all, to be a trade secret under the laws of any jurisdiction, and provided further that the information ceases to be a trade secret through no action, directly or indirectly, of Executive.
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(d) Disparagement. Executive agrees that, during the Term and thereafter, he will not, directly or indirectly, alone or in conjunction with any other party, make statements to customers or suppliers of the Company and/or the Bank or to other members of the public that are in any way disparaging or negative towards the Company or the Bank, or the products or services of either, or the Company’s or the Bank’s representatives, Directors, or employees.
(e) Remedies. Executive acknowledges and agrees that his obligations under this Section 11 are of a special and unique nature and that a failure to perform any such obligation or a violation of any such obligation would cause irreparable harm to the Company and/or the Bank, the amount of which cannot be accurately compensated for in damages by an action at law. In the event of a breach by the Executive of any of the provisions of this Section 11, the Company and/or the Bank shall be entitled to an injunction restraining the Executive from such breach. Nothing in this Section shall be construed as prohibiting the Company and/or the Bank from pursuing any other remedies available for any breach of this Section 11.
12. DEATH, DISABILITY OR RETIREMENT.
(a) Death. Notwithstanding any other provision of this Agreement to the contrary, in the event of Executive’s death during the Term of his employment under this Agreement, the Bank shall immediately pay his estate any accrued but unpaid amounts of Executive’s Base Salary or other compensation as of the date of his death. Executive’s estate or beneficiaries shall not be entitled to any further compensation from the Bank for any period subsequent to Executive’s death, except for any payments which may be payable under the Company’s or the Bank’s applicable benefit plans and policies.
| (b) | Disability. |
| (i) | Payments under Bank Plans. Upon the determination that Executive has suffered a Disability, as defined in Section 25 of this Agreement, under any group long-term disability plan or program sponsored by the Bank at such time, disability payments thereunder shall commence within thirty (30) days. |
| (ii) | Termination of Employment. In the event of Executive’s Disability, Executive’s obligation to perform services under this Agreement will terminate. |
| (iii) | Special Payments and Benefits. Unless the Bank has previously purchased for the benefit of Executive an individual disability policy providing a disability benefit that, when aggregated with any disability benefit provided under a group disability program sponsored by the Bank, pays a disability benefit equal to Executive’s Base Salary, then within thirty (30) days of a Disability determination, Executive shall receive from the Bank a lump sum cash payment equal to his annual rate of Base Salary in effect at the date of the Disability determination. Such payment shall be reduced by the amount of any short- or long-term disability benefits payable to Executive under any disability program sponsored by the Bank, but in no event shall Executive’s Disability benefit be reduced below zero. In addition, for a one-year period following any Disability determination, to the extent permitted under said programs, the Bank shall pay the cost of Executive’s, and to the extent applicable under any non-taxable medical and dental plans, Executive’s dependents’, continued coverage under such medical and dental plans of the Bank in which Executive participated prior to the occurrence of Executive’s Disability, on the same terms as if Executive were actively employed by the Bank. If the Bank cannot provide one or more of the benefits set forth in this paragraph because Executive is no longer an employee, applicable rules and regulations prohibit such benefits, or the payment of such benefits in the manner contemplated would subject the Bank or Executive to penalties, then the Bank shall pay the Executive a cash lump sum payment reasonably estimated to be equal to the value of such benefits. Such cash lump sum payment shall be made within thirty (30) days after the Termination Date, or, if on such date, Executive is a “Specified Employee,” as defined in Treasury Regulation 1.409A-1(i)), then solely to the extent required to avoid penalties under Section 409A of the Code, such payment shall be made within thirty (30) days after the first day of the seventh month following Executive’s Termination Date. Executive shall also be entitled to receive any other benefits available to employees terminated for Disability under any benefit plans or programs in which Executive participated prior to his Disability. |
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(c) Retirement. If Executive has attained retirement or early retirement age under any tax-qualified retirement plan of the Bank in which Executive is a covered employee (“Retirement Plan”), Executive may elect to retire under such Retirement Plan, in the manner and subject to the procedures specified in such plan, and in such event, Executive shall be entitled to such benefits and shall receive such payments as are provided under such Retirement Plan and under any other tax-qualified or nonqualified retirement pension, severance or other similar plan then maintained by the Bank in which Executive is then a covered employee or otherwise entitled to participate. The termination of Executive’s employment incident to such retirement will not be deemed an early termination of Executive’s employment under any of Sections 4, 5, 6 or 7 of this Agreement, but will be deemed a termination of Executive’s employment under other sections of this Agreement, unless such other sections expressly exclude from their applicability or coverage any termination of employment due to retirement.
13. EFFECT ON PRIOR AGREEMENTS AND EXISTING BENEFIT PLANS.
This Agreement contains the entire understanding between the parties hereto regarding the issues addressed herein, except that this Agreement shall not affect or operate to reduce any benefit or compensation inuring to Executive of a kind elsewhere provided. No provision of this Agreement shall be interpreted to mean that Executive is subject to receiving fewer benefits than those available to him without reference to this Agreement.
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14. NO ATTACHMENT.
(a) No Offset or Attachment. Except as required by law, no right to receive payments under this Agreement shall be subject to anticipation, commutation, alienation, sale, assignment, encumbrance, charge, pledge or hypothecation, or to execution, attachment, levy or similar process or assignment by operation of law, and any attempt, voluntary or involuntary, to affect any such action shall be null, void and of no effect.
(b) Binding. This Agreement shall be binding upon and inure to the benefit of Executive, the Bank and their respective successors and assigns.
15. MODIFICATION AND WAIVER.
(a) Modification/Amendments. This Agreement may not be modified or amended, except by an instrument in writing signed by the parties hereto.
(b) Waivers. No term or condition of this Agreement shall be deemed to have been waived, nor shall there be any estoppel against the enforcement of any provision of this Agreement, except by written instrument of the party charged with such waiver or estoppel. No such written waiver shall be deemed a continuing waiver unless specifically stated therein, and each such waiver shall operate only as to the specific term or condition waived and shall not constitute a waiver of such term or condition for the future as to any act other than that specifically waived.
16. SEVERABILITY.
If, for any reason, any provision of this Agreement, or any part of any provision, is held invalid, such invalidity shall not affect any other provision of this Agreement or any remaining part of such provision not held so invalid, and each such other provision and part thereof shall to the full extent consistent with law continue in full force and effect.
17. HEADINGS FOR REFERENCE ONLY.
The headings of sections and paragraphs herein are included solely for convenience of reference and shall not control the meaning or interpretation of any of the provisions of this Agreement.
18. GOVERNING LAW AND CONSENT TO JURISDICTION.
This Agreement shall be governed by the laws of the state of New York without regard to principles of conflicts of law of the state of New York and applicable federal law. The parties hereto each hereby irrevocably consent to the jurisdiction of the federal and state courts for, or located in, Nassau County, New York for all purposes in connection with any action or proceeding which arises out of or relates to this Agreement and agree that any action instituted under this Agreement shall be commenced, prosecuted and continued only in such courts, which shall be the exclusive and only proper forum for adjudicating any dispute between the parties hereto.
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| 19. | DISPUTE RESOLUTION. |
(a) Payments of Withheld Amounts and Benefits. In the event that any dispute or controversy arising under or in connection with any early termination of Executive’s employment hereunder is resolved in favor of Executive, whether by judgment, arbitration or settlement, Executive shall be entitled to the payment of all back-pay, including Base Salary, bonuses and any other cash compensation, fringe benefits and any compensation and benefits due Executive under this Agreement. Such payment shall occur no later than two and one-half (2½) months after the dispute is settled or resolved in Executive’s favor.
(b) Legal Fees. All reasonable legal fees paid or incurred by Executive pursuant to any dispute or question of interpretation relating to this Agreement shall be paid or reimbursed by the Bank if and only if Executive is successful pursuant to a legal judgment, arbitration or settlement. Such payment or reimbursement shall occur no later than two and one-half (2½) months after the dispute is settled or resolved in Executive’s favor.
20. KEY-MAN LIFE INSURANCE.
The Bank may, in its sole discretion, elect to purchase key man life insurance on the life of Executive under which the Bank is designated as the beneficiary. Executive agrees to submit, at any reasonable time and location, to any physical examination required by the insurance carrier designated by the Bank and to execute any documents necessary to effect the issuance of such policy.
21. INDEMNIFICATION.
The Bank shall provide Executive (including his heirs, executors and administrators) with coverage under a standard directors’ and officers’ liability insurance policy at the expense of the Bank, and the Bank shall indemnify Executive (and his heirs, executors and administrators) to the fullest extent permitted under applicable law against all expenses and liabilities reasonably incurred by him in connection with or arising out of any action, suit or proceeding in which he may be involved by reason of his having been a director or officer of the Bank (whether or not he continues to be such a director or officer at the time of incurring such expenses or liabilities), such expenses and liabilities to include, but not be limited to, judgments, court costs, attorneys’ fees and the costs of reasonable settlements.
22. SUCCESSORS AND ASSIGNS.
The Bank shall require any successor or assignee, whether direct or indirect, by purchase, merger, consolidation or otherwise, to all or substantially all of the business or assets of the Company and/or the Bank, expressly and unconditionally to assume and agree to perform the Company’s and/or the Bank’s obligations under this Agreement, in the same manner and to the same extent that the Company and/or the Bank would be required to perform if no such succession or assignment had taken place.
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23. SUBJECT TO APPLICABLE LAW.
Any payments made or benefits provided to Executive pursuant to this Agreement, or otherwise, and any rights or obligations related to such payments or benefits, are subject to and conditioned upon compliance with applicable law, including but not limited to 12 U.S.C. §§371c, 371c-1 and 12 C.F.R. Part 223 promulgated thereunder, and 12 U.S.C. §1828(k) and 12 C.F.R. Part 359 promulgated thereunder.
24. SECTION 409A COMPLIANCE.
The parties intend that all provisions of this Agreement shall either be exempt from or comply with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”). For purposes of this Agreement, “termination,” “termination date” and “terminate” when used in the context of termination of employment shall mean a “separation from service” with the Company and its affiliates (i.e., generally an entity 50% or more of which is owned or controlled by the Company), as such term is defined in Treasury Regulation Section 1.409A-1(h) (provided, that the reasonably anticipated reduced level of bona fide services, if any, to be performed by Executive after such separation from service shall be less than 50 percent of the average level of bona fide services provided to the Company and its affiliates by Executive in the immediately preceding 36 month period). Nothing in this Agreement shall be interpreted to permit accelerated payment or further deferral of nonqualified deferred compensation, as defined in Section 409A, or any other payment or further deferral in violation of the requirements of Section 409A. Executive does not have any right to make any election regarding the time or form of payment due under this Agreement. Expenses and reimbursement of expenses will be paid by the Bank consistent with their generally applicable policies, and in any event no later than the end of the calendar year following the calendar year in which the expenses are incurred. With respect to reimbursements that constitute taxable income to Executive, no such reimbursements or expenses eligible for reimbursement in any calendar year shall in any way affect the expenses eligible for reimbursement in any other calendar year and Executive’s right to reimbursement shall not be subject to liquidation in exchange for any other benefit. No provision of this Agreement shall be operative to the extent that it will result in the imposition of the additional tax described in Code Section 409A(a)(1)(B)(i)(II) and the parties agree to revise the Agreement as necessary to comply with Section 409A or an exemption therefrom and fulfill the purpose of the voided provision. No provision of this Agreement shall be interpreted or construed to transfer any liability for failure to comply with the requirements of Section 409A from Executive or any other individual to the Company or any of its respective affiliates, employees or agents. Except for the obligation of the Bank under Section 9 of this Agreement to reimburse Executive for certain tax payments he may be required to make resulting from his receipt of certain change of control payments from the Bank, all taxes associated with payments made to Executive pursuant to this Agreement, including any liability imposed under Section 409A, shall be borne by Executive.
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25. CERTAIN DEFINED TERMS.
For purposes of this Agreement, the following capitalized terms shall have the meanings given to each below
(a) “Cause.” For purposes of any termination of Executive's employment hereunder for “Cause,” Cause shall be deemed to exist if Executive:
| (i) | has engaged in any willful act or omission that, in the judgment of Bank’s Board has caused or will likely cause substantial economic damage to the Bank or substantial injury to the business reputation of the Bank; or |
| (ii) | has engaged in an act or acts of dishonesty or fraud intended to result in enrichment or advantage to Executive or a third party at the expense of the Bank or through the use of the Bank’s assets (including proprietary or confidential information); or |
| (iii) | has engaged in willful failure (other than due to physical or mental incapacity) to carry out Executive’s duties and responsibilities to the Bank, including any reasonable directions from the Bank’s Board, within the standards of performance which could reasonably be expected of an employee working for a banking institution in a similar position, if such willful failure continues for ninety (90) days or more after written notice of such failure is provided to Executive by the Bank; or |
| (iv) | has willfully failed or refused (A) to comply with any material term or provision of this Agreement, (B) to adhere to the material terms of such employment-related policies or procedures as have been or may be established by the Company or the Bank, or (C) to execute and comply with the material terms of such instruments as may reasonably be requested by the Company or the Bank consistent with the foregoing clauses (A) and (B), including, without limitation, the Company’s or the Bank’s rules and policies with respect to conduct and ethics; or |
| (v) | has been convicted or enters a plea of guilty or nolo contendere or enters into a pretrial diversion program or similar program relating to a felony or any crime involving moral turpitude; or |
| (vi) | is subject to an order of a federal or state regulatory agency or a court of competent jurisdiction requiring the termination of the Executive's employment with the Bank, unless Executive has appealed such order and such appeal is pending; or |
| (vii) | abuses alcohol or any controlled substance in a manner that materially negatively affects Executive’s performance or abilities at the Bank, whether or not such activity constitutes a crime; or |
| (viii) | is prohibited from employment with an FDIC-insured institution under applicable federal law. |
For purposes of this definition of “Cause,” no act, or failure to act, on the part of Executive shall be deemed “willful” unless done, or omitted to be done, by Executive not in good faith and without reasonable belief that Executive’s action or omission was in the best interests of the Bank.
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(b) “Change-in-Control.” For purposes of this Agreement, a “Change in Control” shall mean (1) a change in ownership of the Company or the Bank as defined and described in subparagraph (i) below, or (2) a change in effective control of the Company or the Bank as defined and described in subparagraph (ii) below, or (3) a change in the ownership of a substantial portion of the assets of the Company or the Bank as defined and described in subparagraph (iii) below. The definition of Change in Control in this Agreement shall be construed to be consistent with the requirements of Treasury Regulation 1.409A-3(i)(5), except to the extent modified herein.
(i) Change in the ownership of the Company or the Bank. A change in the ownership of the Company or the Bank shall occur on the date that any one person, or more than one person acting as a group (as defined in Treasury Regulation 1.409A-3(i)(5)(v)(B)), acquires ownership of stock of such entity that, together with stock held by such person or group, constitutes more than 50% of the total fair market value or total voting power of the stock of such entity.
(ii) Change in the effective control of the Company or the Bank. A change in the effective control of the Company or the Bank shall occur on the date that either (1) any one person, or more than one person acting as a group (as defined in Treasury Regulation Section 1.409A-3(i)(5)(vi)(D)), acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) ownership of stock of the Company or the Bank possessing 30% or more of the total voting power of the stock of the Company or the Bank; or (2) a majority of members of the Company’s or the Bank’s Board is replaced during any 12-month period by directors whose appointment or election is not endorsed by a majority of the members of such entity’s board prior to the date of the appointment or election, provided that this sub-section (d)(ii)(2) is inapplicable where a majority shareholder of the applicable entity is another corporation.
(iii) Change in the ownership of a substantial portion of the Company’s or the Bank’s assets. A change in the ownership of a substantial portion of the Company’s or the Bank’s assets occurs on the date that any one person, or more than one person acting as a group (as defined in Treasury Regulation 1.409A-3(i)(5)(vii)(C)), acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) assets from the Company or the Bank that have a total gross fair market value equal to or more than 40% of the total gross fair market value of all of the assets of such entity immediately prior to such acquisition or acquisitions. For this purpose, gross fair market value means the value of the assets of the entity, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets. There is no Change in Control event under this subparagraph (iii) when there is a transfer to an entity that is controlled by the shareholders of the transferring entity immediately after the transfer.
| (iv) | Notwithstanding the foregoing, for purposes of this Agreement, the definition of Change in Control shall not include the following: (i) a merger by and between Company and Signature, in which Signature will merge with and into Company, with Company as the surviving entity, (ii) a merger by and between Bank and Signature Bank, a wholly owned subsidiary of Signature, with Bank as the surviving entity, each pursuant to an Agreement and Plan of Merger entered into by and between Company and Signature dated as of March 11, 2026. |
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(c) “Good Reason.” For purposes of this Agreement, “Good Reason” shall mean the occurrence during the Term of Executive’s employment under this Agreement of any one or more of the following actions or events, or series of actions or events, unless the same shall have been expressly consented to, in advance, by Executive in writing: (A) failure by the Bank’s Board to elect or re-elect or appoint or re-appoint Executive as President of Chicago Division of the Bank, in connection with any annual or other election or appointment by the Bank of their senior officers for an upcoming year or period; (B) any material diminution in Executive’s functions, duties or responsibilities with the Bank, the general effect of which would cause Executive’s position to become one of lesser responsibility, importance or scope from the position and attributes thereof described in Section 1 of this Agreement; (C) relocation of Executive’s principal place of employment to any location more than thirty (30) miles radius from Executive's principal place of employment on the Effective Date of this Agreement, unless the distance in miles between Executive’s principal residence and his new principal place of employment following such relocation is less than the distance in miles between Executive’s principal residence and his principal place of employment immediately prior to such relocation; (D) any determination by the Bank’s Board under Section 2(b) to discontinue the automatic extension of Executive’s Term of employment under Section 2(b), above; or (E) any material breach of this Agreement by the Bank.
(d) “Disability.” For purposes of this Agreement, Executive shall be considered to have a “Disability” or be “Disabled” if under any group long-term disability plan or program sponsored by the Bank at the time of Executive’s physical or mental impairment, Executive would be entitled to recover disability benefits due to Executive’s inability to continue to perform services for the Bank. If the Bank sponsors no such plan at the time of Executive’s physical or mental impairment, then “Disability” or “Disabled” shall be construed to comply with Section 409A of the Internal Revenue Code and shall be deemed to have occurred if: (i) Executive is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death, or last for a continuous period of not less than 12 months; (ii) by reason of any medically determinable physical or mental impairment that can be expected to result in death, or last for a continuous period of not less than 12 months, Executive is receiving income replacement benefits for a period of not less than three months under an accident and health plan covering employees of the Bank; or (iii) Executive is determined to be totally disabled by the Social Security Administration.
26. SOURCE OF PAYMENTS.
The Company unconditionally agrees to pay and provide to Executive all amounts and benefits due hereunder to Executive, including amounts and benefits specifically required to be paid and provided by the Bank, if such amounts are not timely paid or provided by the Bank, for any reason or no reason. All payments provided in this Agreement shall be timely paid in cash or check from the general funds of the Bank.
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27. EFFECTIVE DATE.
Notwithstanding anything to the contrary contained herein, this Agreement shall be subject to the consummation of the Merger, and shall become effective as of the Effective Time as defined in the Merger Agreement (which for purposes of this Agreement shall be referred to as the “Effective Date”). In the event the Merger Agreement terminates prior to the Effective Date or Executive is not employed by Signature or Signature Bank as of immediately prior to the Effective Date, this Agreement shall automatically terminate and become null and void. In addition, effective as of the Effective Date, the Employment Agreement by and among Signature, Signature Bank and the Executive, dated April 1, 2021, shall be cancelled in its entirety and the parties thereto shall no further rights or obligations thereunder.
[Signature Page Follows]
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SIGNATURES
IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date.
| ATTEST: | ESQUIRE BANK, NATIONAL ASSOCIATION | |
| /s/ Gary Lax | /s/ Andrew C. Sagliocca | |
| Secretary | For the Entire Board of Directors |
| WITNESS: | EXECUTIVE: | |
| /s/ James W. Morrissey | /s/ Michael G. O’Rourke | |
| Assistant Secretary | Michael G. O’Rourke |
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ACKNOWLEDGEMENT AND AGREEMENT
IN WITNESS WHEREOF, the undersigned agrees to be bound to only Sections 18, 26 and 27 of the Agreement as of the Effective Date.
| ATTEST: | ESQUIRE FINANCIAL HOLDINGS, INC. | |
| /s/ Gary Lax | /s/ Andrew C. Sagliocca | |
| Secretary | For the Entire Board of Directors |
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APPENDIX A
The term “Litigation Vertical” shall mean the following:
| I. | Plaintiff Lawyers and/or Law Firms; Contingent Fee Lawyers and/or Law Firms; and/or Hourly Fee Lawyers and/or Law Firms (individually “Law Firm” and collectively, “Law Firms”) involved in the following matters: |
| o | Personal Injury; |
| o | Single Event Injury Cases (e.g., automobile, medical malpractice, etc.); |
| o | Mass Tort; |
| o | Class Action; |
| o | Social Security/Disability; |
| o | Workers’ Compensation; |
| o | Employment or Labor; |
| o | Securities; |
| o | Intellectual Property; |
| o | Real Estate; |
| o | Civil Rights; |
| o | Insurance; and/or |
| o | Environmental. |
| II. | Alternative Business Structures and/or Management Services Organizations, as well as any other such Law Firm related business entity or entities. |
| III. | Qualified Settlement Funds, Third Party Administrators, Claims Administrators and/or Lien Resolution Companies. |
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Exhibit 23.1
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We consent to the incorporation by reference in this Registration Statement on Form S-4 of Esquire Financial Holdings, Inc. of our report dated March 13, 2026 relating to the consolidated financial statements and effectiveness of internal control over financial reporting appearing in the Annual Report on Form 10-K of Esquire Financial Holdings, Inc. for the year ended December 31, 2025, and to the reference to us under the heading "Experts" in the prospectus.
| /s/ Crowe LLP | |
| Livingston, New Jersey | |
| April 15, 2026 |
Exhibit 23.2
Consent of Independent Auditor
We consent to the incorporation by reference in this Registration Statement on Form S-4 of Esquire Financial Holdings, Inc. of our report dated March 11, 2026, relating to the consolidated financial statements of Signature Bancorporation, Inc. and Subsidiary, appearing in this Registration Statement on Form S-4.
We also consent to the reference of our firm under the heading “Experts” in such Registration Statement.
/s/ RSM US LLP
Chicago, Illinois
April 15, 2026
Exhibit 99.3
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1251 AVENUE OF THE AMERICAS, 6TH FLOOR NEW YORK, NY 10020 |
| P 212 466-7800 | TF 800 635-6851 | |
| Piper Sandler & Co. Since 1885. Member SIPC and NYSE. |
CONSENT OF PIPER SANDLER & CO.
We hereby consent to the inclusion of our opinion letter to the Board of Directors of Esquire Financial Holdings, Inc. (the “Company”) as an Annex to the Joint Proxy Statement/Prospectus relating to the proposed merger of the Company with Signature Bancorporation, Inc. contained in the Registration Statement on Form S-4, as filed with the Securities and Exchange Commission, and to references to such opinion and the quotation or summarization of such opinion in such Joint Proxy Statement/Prospectus and the Registration Statement. In giving such consent, we do not admit that we come within the category of persons whose consent is required under Section 7 of the Securities Act of 1933, as amended (the “Act”), or the rules and regulations of the Securities and Exchange Commission thereunder (the “Regulations”), nor do we admit that we are experts with respect to any part of such Joint Proxy Statement/Prospectus and the Registration Statement within the meaning of the term “experts” as used in the Act or the Regulations.
/s/ Piper Sandler & Co.
New York, New York
April 15, 2026
Exhibit 99.4

Consent of Raymond James & Associates, Inc.
Raymond James & Associates, Inc. (“Raymond James”) consents to (i) the inclusion and description of our opinion letter dated March 11, 2026 to the Board of Directors of Signature Bancorporation, Inc. (the “Company”) included as Annex D to the joint proxy statement/prospectus relating to the proposed merger of the Company with Esquire Financial Holdings, Inc., which forms a part of the Registration Statement on Form S-4 of Esquire Financial Holdings, Inc. (the “Registration Statement”) and (ii) the references to our firm and our opinion included in such Registration Statement.
In giving such consent, we do not admit that we come within the category of persons whose consent is required under Section 7 of the Securities Act of 1933, as amended, or the rules and regulations of the Securities and Exchange Commission promulgated thereunder, nor do we admit that we are experts with respect to any part of such Registration Statement within the meaning of the terms “experts” as used in the Securities Act of 1933, as amended, or the rules and regulations of the Securities and Exchange Commission thereunder.
| RAYMOND JAMES & ASSOCIATES, INC. | |
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| Dated: April 15, 2026 |
Exhibit 99.5
CONSENT OF PROPOSED DIRECTOR
Pursuant to Rule 438 promulgated under the Securities Act of 1933, as amended, the undersigned hereby consents to be named in this Registration Statement on Form S-4 (the “Registration Statement”) of Esquire Financial Holdings, Inc., and any amendments thereto, as a person who will become a director on the Board of Directors of Esquire Financial Holdings, Inc. in connection with the merger of Signature Bancorporation, Inc. and Esquire Financial Holdings, Inc., and consents to the filing of this consent as an exhibit to the Registration Statement.
| /s/ Michael O’Rourke | |
| April 15, 2026 | Michael O’Rourke |
Exhibit 99.6
CONSENT OF PROPOSED DIRECTOR
Pursuant to Rule 438 promulgated under the Securities Act of 1933, as amended, the undersigned hereby consents to be named in this Registration Statement on Form S-4 (the “Registration Statement”) of Esquire Financial Holdings, Inc., and any amendments thereto, as a person who will become a director on the Board of Directors of Esquire Financial Holdings, Inc. in connection with the merger of Signature Bancorporation, Inc. and Esquire Financial Holdings, Inc., and consents to the filing of this consent as an exhibit to the Registration Statement.
| /s/ Leonard Caronia | |
| April 15, 2026 | Leonard Caronia |