Esquire Financial (ESQ) 10-K27 Mar 232022 FY Annual reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Dec. 31, 2022	Mar. 01, 2023	Jun. 30, 2022
Document And Entity Information [Abstract]
Document Type	10-K
Document Annual Report	true
Document Transition Report	false
Document Period End Date	Dec. 31, 2022
Entity File Number	001-38131
Entity Registrant Name	Esquire Financial Holdings, Inc.
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	27-5107901
Entity Address, Address Line One	100 Jericho Quadrangle, Suite 100
Entity Address, City or Town	Jericho
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	11753
City Area Code	516
Local Phone Number	535-2002
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	ESQ
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	false
Entity Shell Company	false
Entity Public Float			$ 228.8
Entity Common Stock, Shares Outstanding		8,198,258
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2022
Amendment Flag	false
Entity Central Index Key	0001531031
Auditor Name	Crowe LLP
Auditor Firm ID	173
Auditor Location	New York, New York

CONSOLIDATED STATEMENTS OF FINA

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
ASSETS
Cash and cash equivalents	$ 164,122	$ 149,156
Securities purchased under agreements to resell, at cost	49,567	50,271
Securities available-for-sale, at fair value	109,269	148,384
Securities held-to-maturity, at cost (fair value $69,346 at December 31, 2022)	78,377
Securities, restricted, at cost	2,810	2,680
Loans held for investment	947,295	784,517
Less: allowance for loan losses	(12,223)	(9,076)
Loans, net of allowance	935,072	775,441
Premises and equipment, net	2,704	3,334
Accrued interest receivable	5,768	4,197
Deferred tax assets	9,572	2,845
Other assets	38,378	42,462
Total assets	1,395,639	1,178,770
Deposits:
Demand	444,324	409,350
Savings, NOW and money market	764,354	599,747
Time	19,558	19,312
Total deposits	1,228,236	1,028,409
Accrued expenses and other liabilities	9,245	6,626
Total liabilities	1,237,481	1,035,035
Commitments and contingencies
Stockholders' equity:
Preferred stock, par value $0.01; authorized 2,000,000 shares; none issued
Common stock, par value $0.01; authorized 15,000,000 shares; 8,238,041 and 8,123,152 shares issued, respectively; and 8,195,333 and 8,088,846 shares outstanding, respectively	82	81
Additional paid-in capital	96,387	93,611
Retained earnings	77,712	51,460
Accumulated other comprehensive loss	(15,117)	(850)
Treasury stock at cost, 42,708 and 34,306 shares, respectively	(906)	(567)
Total stockholders' equity	158,158	143,735
Total liabilities and stockholders' equity	$ 1,395,639	$ 1,178,770

CONSOLIDATED STATEMENTS OF FI_2

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parentheticals) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
Securities held to maturity, fair value	$ 69,346
Preferred stock, par value (in dollars per share)	$ 0.01
Preferred stock, shares authorized	2,000,000
Preferred stock, shares issued	0
Common stock, par value (in dollars per share)	$ 0.01
Common stock, shares authorized	15,000,000
Common stock, shares issued	8,238,041	8,123,152
Common stock, shares outstanding	8,195,333	8,088,846
Treasury stock, shares	42,708	34,306

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	12 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Interest income:
Loans held for investment	$ 54,007	$ 41,545	$ 35,588
Securities, includes restricted stock	4,161	2,174	2,556
Securities purchased under agreements to resell	1,251	619	94
Interest earning cash and other	1,574	193	392
Total interest income	60,993	44,531	38,630
Interest expense:
Savings, NOW and money market deposits	1,488	746	888
Time deposits	155	79	297
Borrowings	4	3	5
Total interest expense	1,647	828	1,190
Net interest income	59,346	43,703	37,440
Provision for loan losses	3,490	6,955	6,250
Net interest income after provision for loan losses	55,856	36,748	31,190
Noninterest income:
Total noninterest income	24,925	21,024	14,647
Noninterest expense:
Employee compensation and benefits	25,774	21,741	16,873
Occupancy and equipment	3,236	2,808	2,422
Professional and consulting services	3,376	2,922	3,229
FDIC and regulatory assessments	558	447	375
Advertising and marketing	1,462	1,174	584
Travel and business relations	566	327	210
Data processing	4,222	3,671	3,120
Other operating expenses	2,786	1,974	1,857
Total noninterest expense	41,980	35,064	28,670
Net income before income taxes	38,801	22,708	17,167
Income tax expense	10,283	4,783	4,549
Net income	$ 28,518	$ 17,925	$ 12,618
Earnings per share
Basic	$ 3.73	$ 2.40	$ 1.70
Diluted	$ 3.47	$ 2.26	$ 1.65
Payment processing fee
Noninterest income:
Noninterest income	$ 21,944	$ 20,856	$ 14,099
Customer related fees, service charges and other
Noninterest income:
Noninterest income	2,893	463	$ 548
Gain (loss) on loans held for sale
Noninterest income:
Noninterest income	$ 88	$ (295)

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 28,518	$ 17,925	$ 12,618
Other comprehensive (loss) income:
Unrealized (losses) gains arising during the period on securities available-for-sale	(19,661)	(3,159)	1,429
Reclassification adjustment for net (losses) gains included in net income	0	0	0
Tax effect	5,394	901	(407)
Total other comprehensive (loss) income	(14,267)	(2,258)	1,022
Total comprehensive income	$ 14,251	$ 15,667	$ 13,640

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common stock	Additional paid-in capital	Retained earnings	Accumulated other comprehensive (loss) income.	Treasury stock	Total
Balance at Dec. 31, 2019	$ 77	$ 89,682	$ 20,917	$ 386		$ 111,062
Balance (in shares) at Dec. 31, 2019	7,652,170
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income			12,618			12,618
Other comprehensive income (loss)				1,022		1,022
Exercise of stock options, net of repurchases		401				401
Exercise of stock options, net of repurchases (in shares)	53,868
Restricted stock grants	$ 1	(1)
Restricted stock grants (in shares)	121,750
Stock compensation expense		1,540				1,540
Purchase of common stock					$ (567)	(567)
Purchase of common stock (in shares)	(34,306)
Balance at Dec. 31, 2020	$ 78	91,622	33,535	1,408	(567)	126,076
Balance (in shares) at Dec. 31, 2020	7,793,482
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income			17,925			17,925
Other comprehensive income (loss)				(2,258)		(2,258)
Exercise of stock options, net of repurchases	$ 2	25				27
Exercise of stock options, net of repurchases (in shares)	193,364
Restricted stock grants	$ 1	(1)
Restricted stock grants (in shares)	102,000
Stock compensation expense		1,965				1,965
Balance at Dec. 31, 2021	$ 81	93,611	51,460	(850)	(567)	143,735
Balance (in shares) at Dec. 31, 2021	8,088,846
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income			28,518			28,518
Other comprehensive income (loss)				(14,267)		(14,267)
Cash dividends declared to common stockholders ($0.28 per share)			(2,266)			(2,266)
Exercise of stock options, net of repurchases		333				333
Exercise of stock options, net of repurchases (in shares)	39,919
Restricted stock grants	$ 1	(1)
Restricted stock grants (in shares)	74,970
Stock compensation expense		2,444				2,444
Shares received related to tax withholding					(339)	(339)
Shares received related to tax withholding (in shares)	(8,402)
Balance at Dec. 31, 2022	$ 82	$ 96,387	$ 77,712	$ (15,117)	$ (906)	$ 158,158
Balance (in shares) at Dec. 31, 2022	8,195,333

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
Stock options, shares repurchased	11,912	132,369	20,224
Restricted stock grants, shares forfeited	13,750
Cash dividends per share	$ 0.28

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash flows from operating activities:
Net income	$ 28,518	$ 17,925	$ 12,618
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	3,490	6,955	6,250
Depreciation and amortization of premises and equipment	703	687	568
Stock compensation expense	2,444	1,965	1,540
(Gain) loss on loans held for sale	(88)	295
Deferred tax expense (benefit)	(1,333)	653	(955)
Net amortization (accretion):
Securities	537	776	1,079
Loans	(1,054)	(1,422)	(339)
Right of use asset	466	534	391
Software	1,380	1,014	665
Changes in other assets and liabilities:
Accrued interest receivable	(1,571)	332	(1,287)
Other assets	3,184	322	(4,611)
Operating lease liability	(561)	(544)	(418)
Accrued expenses and other liabilities	2,682	587	89
Net cash provided by operating activities	38,797	30,079	15,590
Cash flows from investing activities:
Net change in loans	(162,067)	(134,539)	(109,665)
Net change in securities purchased under agreements to resell	704	1,455	(51,726)
Purchases of securities available-for-sale	(1,739)	(86,828)	(37,975)
Purchases of securities held-to-maturity	(84,092)
Principal repayments on securities available-for-sale	20,761	52,164	67,089
Principal repayments on securities held-to-maturity	5,610
(Purchase) redemption of securities, restricted	(130)	14	(29)
Payments on loans held for sale, previously classified as held for investment loans	688	189
Purchases of premises and equipment	(73)	(1,004)	(750)
Development of capitalized software	(1,163)	(1,940)	(2,386)
Net cash used in investing activities	(221,501)	(170,489)	(135,442)
Cash flows from financing activities:
Net increase in deposits	199,827	224,355	123,434
Decrease in borrowings	(2)	(1)	(37)
Exercise of stock options, net of repurchases	333	27	401
Tax withholding payments for vested equity awards	(339)
Cash dividends paid to common stockholders	(2,149)
Purchase of common stock			(567)
Net cash provided by financing activities	197,670	224,381	123,231
(Decrease) increase in cash and cash equivalents	14,966	83,971	3,379
Cash and cash equivalents at beginning of the period	149,156	65,185	61,806
Cash and cash equivalents at end of the period	164,122	149,156	65,185
Cash paid during the period for:
Interest	1,618	828	1,202
Taxes	8,654	5,960	6,246
Noncash transactions:
Contribution of loans held for sale in exchange for an equity interest in a variable interest entity	13,500
Transfer from loans held for investment to held for sale		$ 14,584
Right of use asset obtained in exchange for lease liability	383		$ 624
Dividends declared but not yet paid	$ 117

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2022
Basis of Presentation and Summary of Significant Accounting Policies
Basis of Presentation and Summary of Significant Accounting Policies	NOTE 1 — Business and Summary of Significant Accounting Policies Business Esquire Financial Holdings, Inc. (the “Company”) is a financial holding company incorporated in Maryland and headquartered in Jericho, New York, with one branch office in Jericho, New York and an administrative office in Boca Raton, Florida. Its wholly-owned subsidiary, Esquire Bank, National Association (the “Bank”), is a full service commercial bank dedicated to serving the financial needs of the legal industry and small businesses nationally, as well as commercial and retail customers in the New York metropolitan area. The Bank offers tailored products and solutions to the legal community and their clients as well as dynamic and flexible payment processing solutions to small business owners. Banking products offered for businesses and consumers include checking, savings, money market and time deposits; a wide range of commercial and consumer loans, as well as customary banking services. These activities, primarily anchored by our legal community focus, generate a stable source of low cost deposits and a diverse asset base to support our overall operations. The Bank operates a payment processing platform through third party Independent Sales Organizations (“ISOs”). As an acquiring bank, fees are charged to merchants for the settlement of credit card, debit card and ACH transactions. The Bank’s revenue from these operational services is presented as payment processing fees on the Consolidated Statement of Income. The Consolidated Financial Statements include Esquire Financial Holdings, Inc. and its wholly owned subsidiary, Esquire Bank, N.A. and are referred to as “the Company.” Intercompany transactions and balances are eliminated in consolidation. Risks and Uncertainties The COVID-19 pandemic has and may continue to impact the operations and business results of the Company. The extent to which the COVID-19 crisis may impact business activity or financial results will depend on future developments, which are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity of the coronavirus or new variants and the actions required to contain the coronavirus or treat its impact, among others. This uncertainty may impact the accuracy of our significant estimates, which includes the allowance for loan losses. The Company has evaluated the impact of the effects of COVID-19 and determined that there were no material or systematic adverse impacts on the Company's 2022 Consolidated Statement of Financial Condition and Consolidated Statement of Income. Dividend Restriction Banking regulations require maintaining certain capital levels and may limit the dividends paid by the bank to the holding company or by the holding company to shareholders. Basis of Presentation and Use of Estimates The accounting and financial reporting policies are in conformity with U.S. generally accepted accounting principles (“GAAP”). The preparation of financial statements requires that management make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Such estimates are subject to change in the future as additional information becomes available or previously existing circumstances are modified. Actual results could differ from those estimates. Statement of Cash Flows For purposes of the accompanying statements of cash flows, cash and cash equivalents are defined as the amounts included in the Consolidated Statements of Financial Condition under the captions “Cash and cash equivalents”, with contractual maturities of less than 30 days. Net cash flows are primarily reported for customer loan and deposit transactions. Securities Purchased Under Agreements to Resell The Company enters into purchases of securities under agreements to resell identical securities which consist of mortgage loans that meet the GNMA pooling qualifications. The cash advanced to the counterparty are reflected as assets on the Statement of Financial Condition and are accounted for at cost. The Company obtains possession of securities collateral with a market value equal to or in excess of the principal amount loaned under the resell agreement and has the right to request additional collateral, based on its daily monitoring of the fair value of the securities. As of December 31, 2022, there is one open contract with one counterparty that is scheduled to mature within thirty days. Debt Securities Securities are classified as either available-for-sale or held-to-maturity at purchase. Securities where management intends to hold to maturity are designated as held-to-maturity. All other securities are designated as available-for-sale. Securities available-for-sale are carried at fair value and unrealized gains and losses on these securities are reported, net of applicable taxes, as a separate component of accumulated other comprehensive (loss) income, a component of stockholders’ equity. Securities held-to-maturity are carried at cost and gains and losses on these securities are unrecognized. Interest income on securities, including amortization of premiums and accretion of discounts, is recognized using the level yield method without anticipating prepayments (except for mortgage-backed securities where prepayments are anticipated) over the lives of the individual securities. Realized gains and losses on sales of securities are computed using the specific identification method. Loans Loans that management has the intent and ability to hold for the foreseeable future until maturity or payoff are stated at the principal amount outstanding, net of deferred loan fees and costs for originated loans and net of unamortized premiums or discounts for purchased loans. Interest income is recognized using the level yield method. Net deferred loan fees, origination costs, unamortized premiums or discounts are recognized in interest income over the loan term as a yield adjustment. Nonaccrual Interest income on mortgage and commercial loans is discontinued at the time the loan is 90 days delinquent unless the loan is well-secured and in process of collection. Consumer loans are typically charged-off no later than 120 days past due. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. A loan is moved to nonaccrual status in accordance with the Company’s policy, typically after 90 days of non-payment. All interest accrued but not received for loans placed on nonaccrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Provision and Allowance for Loan Losses The allowance for loan losses is a valuation allowance for probable incurred credit losses. The allowance for loan losses is increased by provisions for loan losses charged to income. Losses are charged to the allowance when all or a portion of a loan is deemed to be uncollectible. Subsequent recoveries of loans previously charged-off are credited to the allowance for loan losses when realized. Management estimates the allowance balance required using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged-off. The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. All loans, except for smaller dollar consumer loans, are individually evaluated for impairment. If a loan is impaired, a portion of the allowance is allocated as a specific allowance. The measurement of an impaired loan is based on (i) the present value of expected future cash flows discounted at the loan’s effective interest rate, (ii) the loan’s observable market price or (iii) the fair value of the collateral if the loan is collateral dependent. Loans for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired. Troubled debt restructurings are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a troubled debt restructuring is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. For troubled debt restructurings that subsequently default, the Company determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses. The general component is based on historical loss experience adjusted for current factors. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company. This actual loss experience is supplemented with qualitative factors based on the risks present for each portfolio segment. These qualitative factors include consideration of the following: levels of and trends in delinquencies and impaired loans; levels of and trends in charge-offs and recoveries; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. The determination of the qualitative factors involves significant judgment and subjective measurement. Management has identified the following loan segments: Commercial Real Estate, Multifamily, Construction, Commercial, 1 – 4 Family and Consumer. The risks associated with a concentration in real estate loans include potential losses from fluctuating values of land and improved properties. Commercial Real Estate and Multifamily loans are expected to be repaid from the cash flow of the underlying property so the collective amount of rents must be sufficient to cover all operating expenses, property management and maintenance, taxes and debt service. Increases in vacancy rates, interest rates or other changes in general economic conditions can all have an impact on the borrower and their ability to repay the loan. Construction loans are considered riskier than commercial financing on improved and established commercial real estate. The risk of potential loss increases if the original cost estimates or time to complete are significantly off. The remainder of the loan portfolio is comprised of commercial and consumer loans. The primary risks associated with the commercial loans is the cash flow of the business, the experience and quality of the borrowers’ management, the business climate, and the impact of economic factors. The primary risks associated with 1 – 4 Family and Consumer loans relate to the borrower, such as the risk of a borrower’s unemployment as a result of deteriorating economic conditions or the amount and nature of a borrower’s other existing indebtedness, and the value of the collateral securing the loan if the Bank must take possession of the collateral. Post-settlement consumer loans are also subject to unforeseen rulings or administrative legal anomalies that may eliminate or greatly reduce a borrowers settlement amount. Premises and Equipment Premises and equipment, including leasehold improvements, are stated at cost, net of accumulated depreciation and amortization. Equipment, which includes furniture and fixtures, are depreciated over the assets’ estimated useful lives using the straight-line method ( three Internal-Use Software Implementation costs with respect to internal-use software is capitalized once the project stage is complete. Project stage includes determining the performance requirements, strategic decisions related to allocation of resources, determining the technology needed to achieve performance requirements, selection of vendors, and other items. Costs during the project stage are expensed as incurred. Once the internal-use software is placed into operation, capitalized software costs are amortized using the straight-line method over 3 Securities, Restricted, at Cost The Bank is a member of the FHLB system and the FRB of New York, and Atlantic Central Banker’s Bank where members are required to own a certain number of shares of stock in order to conduct business with these institutions. FHLB stock holdings are based on the level of MRA, borrowings and other factors while FRB stock holding levels are capital based. These equity investments are carried at cost and classified as restricted securities which are periodically evaluated for impairment based on the ultimate recovery of par value. Dividends from these equity investments are reported as interest income on the Consolidated Statements of Income. Loan Commitments The Company enters into commitments to extend credit to customers to meet their financing needs which are in the form of lines of credit, letters of credit, and loan funding commitments. The face amount of these financial instruments represents the exposure to loss before considering customer collateral or ability to repay. Such financial instruments are recorded on balance sheet at cost when funded and presented as loans on the Consolidated Statements of Financial Condition. Equity Investment Without Readily Determinable Fair Value In April 2018, the Company purchased a 4.95% interest in Litify, Inc., a technology solution to automate and manage a law firm’s business and cases, for a cost of $2,410. As Litify, Inc. is a private company, the investment does not have a readily determinable fair value and management has elected to determine the recorded carrying amount based on its cost adjusted for observable price changes less impairment. At December 31, 2022, the investment’s carrying amount was $2,410. Based on our evaluation, we noted no significant adverse changes which would indicate the asset is impaired or any observable price changes as of December 31, 2022. The investment is presented within other assets on the Consolidated Statements of Financial Condition. Investment in Variable Interest Entity On April 1, 2022, the Company sold its legacy NFL consumer post-settlement loan portfolio to a variable interest entity (“VIE”) in exchange for a nonvoting interest valued at $13,500 where the Company will remain as servicer of the loan portfolio at the discretion of the VIE manager. The Company’s investment is considered a significant variable interest, but it does not have the power to direct the activities that most significantly impact the VIE’s economic performance. Therefore, the Company is not considered the primary beneficiary of this VIE and does not consolidate the entity in the Company’s financial statements. The Company’s maximum exposure to loss is limited to the carrying amount of its investment and accounted for under the equity method which is presented within other assets on the Consolidated Statement of Financial Condition. As of December 31, 2022, the investment’s carrying amount was $12,636. Transfers of Financial Assets Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Income Taxes Income taxes are provided for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred taxes of a change in tax rates is recognized in income in the period the change occurs. Deferred tax assets are reduced, through a valuation allowance, if necessary, by the amount of such benefits that are not expected to be realized based on current available evidence. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense on the Consolidated Statements of Income. Earnings per Share Basic earnings per share is net earnings allocated to stock divided by the weighted average number of shares outstanding during the period. Any outstanding preferred shares are considered participating securities for computation of basic earnings per share. Diluted earnings per share include the dilutive effect of additional potential shares issuable under stock options and restricted stock awards. Share-Based Payment Share based payment guidance requires the Company to recognize the grant-date fair value of stock options and other equity-based compensation issued to employees and non-employees in the Consolidated Statements of Income. A Black-Scholes model is utilized to estimate the fair value of stock options. Compensation cost for stock options are recognized as noninterest expense in the Consolidated Statement of Income on a straight-line basis over the vesting period of each stock option grant. Compensation expense for restricted stock awards is based on the fair value of the award on the measurement date, which is the date of grant, and the expense is recognized ratably over the service period of the award. At December 31, 2022, no equity-based compensation had vesting conditions linked to the performance of the Company or market conditions. Segment Reporting The Company’s operations are exclusively in the financial services industry and include the provision of traditional banking services. Management evaluates the performance of the Company based on only one business segment, that of community banking. In the opinion of management, the Company does not have any other reportable segments as defined by Accounting Standards Codification (“ASC”) Topic 280, “Disclosure about Segments of an Enterprise and Related Information.” Reclassifications Some items in the prior year financial statements were reclassified to conform to the current presentation. The reclassifications are immaterial and had no effect on prior year net income or stockholders’ equity. Comprehensive Income Comprehensive income consists of net income and other comprehensive (loss) income which includes unrealized gains and losses on securities available-for-sale. Fair Value of Financial Instruments Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates. Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there now are such matters that will have a material effect on the Consolidated Financial Statements. New Accounting Pronouncements In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”. This ASU replaces the incurred loss model with an expected loss model, referred to as “current expected credit loss” (“CECL”) model. It will significantly change estimates for credit losses related to financial assets measured at amortized cost, including loans receivable and certain other contracts. This ASU will be effective for the Company on January 1, 2023, using the required modified retrospective method with a cumulative effect adjustment as of the beginning of the reporting period. The Company is in the process of finalizing its CECL calculation for adoption and does not expect the adoption adjustment to have a material impact to stockholders’ equity or Esquire Bank’s capital position. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” ASU 2020-04 provides optional expedients and exceptions for accounting related to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. ASU 2020-04 applies only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform and do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. ASU 2020-04 was effective upon issuance and generally can be applied through December 31, 2022. Adoption of the standard did not have an impact on the Company’s operating results or financial condition as there are no LIBOR based financial instruments in its portfolio. In March 2022, the FASB issued ASU 2022-02, “Financial Instruments — Credit Losses (Topic 326): Troubled Debt Restructuring and Vintage Disclosures”. ASU 2022-02 eliminates the accounting guidance for TDRs by creditors in Subtopic 310-40, “Receivables — Troubled Debt Restructurings by Creditors”, while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty. Additionally, the amendments in this ASU require that public business entities disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of ASU 326-20, “Financial Instruments — Credit Losses: Measured at Amortized Cost”. The Company is in the process of evaluating the ASU in conjunction with its adoption of CECL on January 1, 2023. In March 2022, the SEC issued Staff Accounting Bulletin (“SAB”) No. 121 which provides interpretive guidance for the accounting and disclosure of obligations to safeguard crypto-assets held for platform users effective the first interim or annual period ending after June 15, 2022. This guidance does not have an impact on the Company’s financial statements as no crypto-asset related activities are conducted by the Company.

Debt Securities

Debt Securities	12 Months Ended
Debt Securities	Dec. 31, 2022
Debt Securities
Debt Securities	NOTE 2 — Debt Securities The following tables summarize the major categories of securities as of the dates indicated: December 31, 2022 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Securities available-for-sale: Mortgage-backed securities – agency $ 111,445 $ — $ (18,500) $ 92,945 Collateralized mortgage obligations ("CMOs") – agency 18,675 — (2,351) 16,324 Total available-for-sale $ 130,120 $ — $ (20,851) $ 109,269 Gross Gross Amortized Unrecognized Unrecognized Fair Cost Gains Losses Value Securities held-to-maturity: CMOs – agency $ 78,377 $ — $ (9,031) $ 69,346 Total held-to-maturity $ 78,377 $ — $ (9,031) $ 69,346 December 31, 2021 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Securities available-for-sale: Mortgage-backed securities – agency $ 122,258 $ 673 $ (2,050) $ 120,881 CMOs – agency 27,316 237 (50) 27,503 Total available-for-sale $ 149,574 $ 910 $ (2,100) $ 148,384 At December 31, 2021, there were no securities held-to-maturity. Mortgage-backed securities included all pass-through certificates guaranteed by FHLMC, FNMA, or GNMA and the CMOs are backed by government agency pass-through certificates. CMOs, by virtue of the underlying residential collateral or structure, are fixed rate current pay sequentials or planned amortization classes (“PACs”). As actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations, these securities are not considered to have a single maturity date. There were no sales or calls of securities in 2022, 2021 and 2020. At December 31, 2022, securities having a carrying value of $150,538 were pledged to the FHLB for borrowing capacity totaling $135,135. At December 31, 2021, securities having a fair value of $121,504 were pledged to the FHLB for borrowing capacity totaling $115,364. At December 31, 2022 and 2021, the Company had no outstanding FHLB advances. At December 31, 2022, securities having a fair value of $37,110 were pledged to the FRB of New York for borrowing capacity totaling $36,147. At December 31, 2021, securities having a fair value of $26,880 were pledged to the FRB of New York for borrowing capacity totaling $26,072. At December 31, 2022 and 2021, the Company had no outstanding FRB borrowings. The following table provides the gross unrealized and unrecognized losses and fair value, aggregated by investment category and length of time the individual securities have been in a continuous unrealized or unrecognized loss position, as of December 31: December 31, 2022 Less Than 12 Months 12 Months or Longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Securities available-for-sale: Mortgage-backed securities – agency $ 8,902 $ (725) $ 84,043 $ (17,775) $ 92,945 $ (18,500) CMOs – agency 11,798 (992) 4,526 (1,359) 16,324 (2,351) Total temporarily impaired securities $ 20,700 $ (1,717) $ 88,569 $ (19,134) $ 109,269 $ (20,851) Less Than 12 Months 12 Months or Longer Total Fair Value Gross Unrecognized Losses Fair Value Gross Unrecognized Losses Fair Value Gross Unrecognized Losses Securities held-to-maturity: CMOs – agency $ 69,346 $ (9,031) $ — $ — $ 69,346 $ (9,031) Total temporarily impaired securities $ 69,346 $ (9,031) $ — $ — $ 69,346 $ (9,031) December 31, 2021 Less Than 12 Months 12 Months or Longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Securities available-for-sale: Mortgage-backed securities - agency $ 101,235 $ (1,813) $ 4,503 $ (237) $ 105,738 $ (2,050) CMOs - agency 7,416 (50) — — 7,416 (50) Total temporarily impaired securities $ 108,651 $ (1,863) $ 4,503 $ (237) $ 113,154 $ (2,100) Management reviews the investment portfolio on a quarterly basis to determine the cause, magnitude and duration of declines in the fair value of each security. In estimating other-than-temporary impairment (OTTI), management considers many factors including: (1) the length of time and extent that fair value has been less than cost, (2) the financial condition and near term prospects of the issuer, (3) whether the market decline was affected by macroeconomic conditions, and (4) whether the Company has the intent to sell the security or more likely than not will be required to sell the security before its anticipated recovery. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: (1) OTTI related to credit loss, which must be recognized in the income statement and (2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. The assessment of whether any other than temporary decline exists may involve a high degree of subjectivity and judgment and is based on the information available to management at a point in time. Management evaluates securities for OTTI at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. At December 31, 2022, securities in unrealized or unrecognized loss positions were issuances from government sponsored entities. Due to the decline in fair value attributable to changes in interest rates, not credit quality and because the Company does not have the intent to sell the securities and it is likely that it will not be required to sell the securities before their anticipated recovery, the Company does not consider the securities to be other-than-temporarily impaired at December 31, 2022. No impairment charges were recorded in 2022, 2021 and 2020.

Loans

Loans	12 Months Ended
Loans	Dec. 31, 2022
Loans
Loans	NOTE 3 — Loans The composition of loans by class is summarized as follows at December 31: 2022 2021 Real estate: Multifamily $ 262,489 $ 254,852 Commercial real estate 91,837 48,589 1 – 4 family 25,565 40,753 Construction — — Total real estate 379,891 344,194 Commercial 552,082 432,108 Consumer 16,580 8,681 Total loans held for investment 948,553 784,983 Deferred fees and unearned premiums, net (1,258) (466) Allowance for loan losses (12,223) (9,076) Loans held for investment, net $ 935,072 $ 775,441 At December 31, 2021, commercial loan balances included $4,249 of SBA PPP loans. There were no PPP loans outstanding at December 31, 2022. The following tables present the activity in the allowance for loan losses by class for the years ending December 31, 2022, 2021 and 2020: Commercial Multifamily Real Estate 1 ‑ 4 Family Construction Commercial Consumer Total December 31, 2022 Allowance for loan losses: Beginning balance $ 1,789 $ 552 $ 285 $ — $ 6,319 $ 131 $ 9,076 Provision (credit) for loan losses 389 470 (93) — 2,358 366 3,490 Recoveries 17 — — — 32 — 49 Loans charged-off (178) — — — (64) (150) (392) Total ending allowance balance $ 2,017 $ 1,022 $ 192 $ — $ 8,645 $ 347 $ 12,223 December 31, 2021 Allowance for loan losses: Beginning balance $ 1,278 $ 597 $ 342 $ — $ 5,003 $ 4,182 $ 11,402 Provision (credit) for loan losses 511 (45) (57) — 1,427 5,119 6,955 Recoveries — — — — — — — Loans charged-off — — — — (111) (9,170) (9,281) Total ending allowance balance $ 1,789 $ 552 $ 285 $ — $ 6,319 $ 131 $ 9,076 December 31, 2020 Allowance for loan losses: Beginning balance $ 1,048 $ 560 $ 344 $ 161 $ 4,048 $ 828 $ 6,989 Provision (credit) for loan losses 230 37 (2) (161) 957 5,189 6,250 Recoveries — — — — — — — Loans charged-off — — — — (2) (1,835) (1,837) Total ending allowance balance $ 1,278 $ 597 $ 342 $ — $ 5,003 $ 4,182 $ 11,402 The following tables present the balance in the allowance for loan losses and the recorded investment in loans by class and based on impairment method as of December 31, 2022 and 2021: Commercial Multifamily Real Estate 1 ‑ 4 Family Construction Commercial Consumer Total December 31, 2022 Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 2,017 1,022 192 — 8,645 347 12,223 Total ending allowance balance $ 2,017 $ 1,022 $ 192 $ — $ 8,645 $ 347 $ 12,223 Loans: Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 262,489 91,837 25,565 — 552,082 16,580 948,553 Total ending loans balance $ 262,489 $ 91,837 $ 25,565 $ — $ 552,082 $ 16,580 $ 948,553 Commercial Multifamily Real Estate 1 ‑ 4 Family Construction Commercial Consumer Total December 31, 2021 Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,789 552 285 — 6,319 131 9,076 Total ending allowance balance $ 1,789 $ 552 $ 285 $ — $ 6,319 $ 131 $ 9,076 Loans: Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 254,852 48,589 40,753 — 432,108 8,681 784,983 Total ending loans balance $ 254,852 $ 48,589 $ 40,753 $ — $ 432,108 $ 8,681 $ 784,983 The following tables provide an analysis of the impaired loans by segment as of December 31, 2022 and 2021. There was no related allowance recorded on any impaired loans as of the periods indicated: December 31, December 31, 2022 2021 Unpaid Unpaid Recorded Principal Recorded Principal Investment Balance Investment Balance Multifamily $ — $ — $ — $ — Commercial real estate — — — — 1 – 4 family — — — — Construction — — — — Commercial — — — — Consumer — — — — Total $ — $ — $ — $ — The following tables provide an analysis of the recorded investment and interest income recognized on impaired loans by segment for the periods presented: Years Ended December 31, 2022 2021 2020 Average Interest Average Interest Average Interest Recorded Income Recorded Income Recorded Income Investment Recognized Investment Recognized Investment Recognized Multifamily $ 158 $ — $ 111 $ — $ — $ — Commercial real estate — — — — — — 1 – 4 family — — — — — — Construction — — — — — — Commercial 1,363 — — — — — Consumer 2 — 1,580 — 1,381 — Total $ 1,523 $ — $ 1,691 $ — $ 1,381 $ — The following tables present the aging of the recorded investment in past due loans by class of loans as of December 31, 2022 and 2021: Total Past 30-59 60-89 Greater than Due & Days Days 90 Days Nonaccrual Nonaccrual Loans Not Past Due Past Due Past Due Loans Loans Past Due Total December 31, 2022 Multifamily $ — $ — $ — $ — $ — $ 262,489 $ 262,489 Commercial real estate — — — — — 91,837 91,837 1 – 4 family — — — — — 25,565 25,565 Construction — — — — — — — Commercial — — — — — 552,082 552,082 Consumer 36 8 — 4 48 16,532 16,580 Total $ 36 $ 8 $ — $ 4 $ 48 $ 948,505 $ 948,553 Total Past 30-59 60-89 Greater than Due & Days Days 90 Days Nonaccrual Nonaccrual Loans Not Past Due Past Due Past Due Loans Loans Past Due Total December 31, 2021 Multifamily $ 1,034 $ — $ — $ — $ 1,034 $ 253,818 $ 254,852 Commercial real estate — — — — — 48,589 48,589 1 – 4 family — — — — — 40,753 40,753 Construction — — — — — — — Commercial — — — — — 432,108 432,108 Consumer 21 10 — 6 37 8,644 8,681 Total $ 1,055 $ 10 $ — $ 6 $ 1,071 $ 783,912 $ 784,983 Credit Quality Indicators The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis is performed whenever a credit is extended, renewed or modified, or when an observable event occurs indicating a potential decline in credit quality, and no less than annually for large balance loans. The Company uses the following definitions for risk ratings: Special Mention Substandard Doubtful Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. Based on the most recent analysis performed, the risk category of loans by class of loans is as follows: Pass Special Mention Substandard Doubtful December 31, 2022 Multifamily $ 258,413 $ 3,355 $ 721 $ — Commercial real estate 88,019 3,818 — — 1 – 4 family 25,565 — — — Construction — — — — Commercial 547,412 4,670 — — Consumer 14,692 1,888 — — Total $ 934,101 $ 13,731 $ 721 $ — Pass Special Mention Substandard Doubtful December 31, 2021 Multifamily $ 254,131 $ — $ 721 $ — Commercial real estate 44,771 3,818 — — 1 – 4 family 37,738 3,015 — — Construction — — — — Commercial 410,548 17,977 3,583 — Consumer 8,681 — — — Total $ 755,869 $ 24,810 $ 4,304 $ — The Company considers the performance of the loan portfolio and its impact on the allowance for loan losses. For smaller dollar commercial and consumer loan classes, the Company evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The Company has no loans identified as troubled debt restructurings at December 31, 2022 and 2021. Furthermore, there were no loan modifications during 2022, 2021 and 2020 that were troubled debt restructurings. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. Related Party Loans Loans to related parties include loans to directors, their related companies and executive officers of the Company. Loans to principal officers, directors, and their affiliates during 2022 were as follows: Beginning balance $ 5,583 New advances — Repayments (1,553) Ending balance $ 4,030 Pledged Loans At December 31, 2022, loans totaling $20,565 were pledged to the FHLB of New York for borrowing capacity totaling $14,245. At December 31, 2021, loans totaling $33,861 were pledged to the FHLB of New York for borrowing capacity totaling $26,001.

Premises and Equipment

Premises and Equipment	12 Months Ended
Premises and Equipment	Dec. 31, 2022
Premises and Equipment
Premises and Equipment	NOTE 4 — Premises and Equipment The following is a summary of premises and equipment at December 31: 2022 2021 Leasehold improvements $ 2,800 $ 2,800 Furniture, fixtures and equipment 4,633 3,912 Fixed assets in progress 8 656 7,441 7,368 Less: accumulated depreciation and amortization 4,737 4,034 Total premises and equipment, net $ 2,704 $ 3,334 Depreciation and amortization of premises and equipment, reflected as a component of occupancy and equipment, net in the Consolidated Statements of Income, was $703, $687 and $568 for the periods ended December 31, 2022, 2021 and 2020, respectively.

Deposits

Deposits	12 Months Ended
Deposits	Dec. 31, 2022
Deposits.
Deposits	NOTE 5 — Deposits As of December 31, 2022, deposits of $1,228,236, was comprised of core deposit relationships of $1,208,678 and certificates of deposit of $19,558. Core deposits are defined as all deposits except certificates of deposits which include demand, savings, NOW, and money market deposit accounts. Our noninterest bearing demand deposits are presented as demand deposits and all core interest bearing deposits are presented as savings, NOW and money market deposits on the Consolidated Statements of Financial Condition. Certificates of deposit are presented as time deposits on the Consolidated Statements of Financial Condition. The contractual maturities of certificates of deposit as of December 31, 2022, are as follows: Total 2023 $ 18,734 2024 824 Total $ 19,558 As of December 31, 2022 and 2021, certificates of deposits greater than $250 were $554 and $7,616, respectively. Certificates of deposits include deposits insured through the certificate of deposit account registry service (“CDARS”) totaling $16,119 and $8,304 for the year ended December 31, 2022 and 2021, respectively. Deposits from principal officers, directors, and their affiliates at year-end 2022 and 2021 were $11,326 and $9,001, respectively.

Borrowings

Borrowings	12 Months Ended
Borrowings	Dec. 31, 2022
Borrowings
Borrowings	NOTE 6 — Borrowings The Company had a secured borrowing of $46 and $48 as of December 31, 2022 and 2021, respectively, relating to certain loan participations sold by the Company that did not qualify for sales treatment. At December 31, 2022 and 2021, we had the ability to borrow a total of $149,380 and $141,365, respectively, from the FHLB of New York. We also had a borrowing capacity with the FRB of New York discount window of $36,147 and $26,072 at December 31, 2022 and 2021, respectively. These borrowings are collateralized by loans and securities. At December 31, 2022 and 2021, we also had lines of credit with other financial institutions totaling $67,500. No amounts were outstanding on any of the aforementioned lines as of December 31, 2022 and 2021.

Noninterest Income

Noninterest Income	12 Months Ended
Noninterest Income	Dec. 31, 2022
Noninterest Income.
Noninterest Income	NOTE 7 — Noninterest Income The majority of the Company’s revenue-generating transactions are not subject to ASC 606, including revenue generated from financial instruments, such as loans, letters of credit, and investment securities. Descriptions of revenue-generating activities that are within the scope of ASC 606, and are presented in the accompanying Consolidated Statements of Income as components of noninterest income, are as follows: For the Years Ended December 31, 2022 2021 Payment processing fees: Payment processing income $ 21,101 $ 20,040 ACH income 843 816 Total payment processing fees 21,944 20,856 Customer related fees, service charges and other: Administrative service income 2,534 29 Gain (loss) on loans held for sale (1) 88 (295) Other 359 434 Total customer related fees, service charges and other 2,981 168 Total noninterest income $ 24,925 $ 21,024 (1) Represents a valuation adjustment on loans held for sale, not within the scope of ASC 606. The Company has made no significant judgments in applying the revenue guidance prescribed in ASC 606 that affect the determination of the amount and timing of revenue from the above-described contracts with customers. ● Payment processing income – We provide payment processing services as an acquiring bank through the third-party or ISO business model in which we process credit and debit card transactions on behalf of merchants. We enter into a tri-party merchant agreement, between the company, ISO and each merchant. The Company’s performance obligation is clearing and settling credit and debit transactions on behalf of the merchants. The Company recognizes revenue monthly once it summarizes and computes all revenue and expenses applicable to each ISO, which is our performance obligation. ● ACH income – We provide ACH services for merchants and other commercial customers. Contracts are entered into with third parties that require ACH transactions processed on behalf of their customers. Fees are variable and based on the volume of transactions within a given month. Our performance obligations are processing and settling ACHs on behalf of the customers. Our obligation is satisfied within each business day when the transactions (ACH files) are sent to the FRB for clearing. Revenue is recognized based on the total volume of transactions processed that month for a given customer. ● Administrative service income – Administrative service income is derived primarily from the management of qualified settlement funds (QSFs), which are funds from settled mass torts and class action lawsuits. Our performance obligations with the QSFs are outlined in court approved orders which includes ensuring funds are invested into safe investment vehicles such as U.S. treasuries and FDIC insured products. Our fees for placing these funds in appropriate vehicles are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. ● Other – The other category includes revenue from service charges on deposit accounts, debit card fees, and certain loan related fees where revenue is recognized as performance obligations are satisfied.

Income Taxes

Income Taxes	12 Months Ended
Income Taxes	Dec. 31, 2022
Income Taxes
Income Taxes	NOTE 8 — Income Taxes The following summarizes components of income tax expense for the years ended December 31: 2022 2021 2020 Current: Federal expense $ 8,795 $ 3,442 $ 4,203 State and city expense 2,821 688 1,301 Total current tax expense 11,616 4,130 5,504 Deferred: Federal (benefit) expense (807) 248 (641) State and city (benefit) expense (526) 405 (314) Total deferred tax (benefit) expense (1,333) 653 (955) Income tax expense $ 10,283 $ 4,783 $ 4,549 The following is a reconciliation of the Company’s statutory federal income tax rate of 21% to its effective tax rate at December 31: 2022 2021 2020 Federal tax expense at statutory rate $ 8,148 $ 4,769 $ 3,605 State and local income taxes, net of federal income tax benefit 1,948 929 974 Incentive stock options 63 69 53 Stock-based compensation excess tax benefit (317) (1,036) (85) Research and development tax credits (100) (100) (77) Other 541 152 79 Income tax expense $ 10,283 $ 4,783 $ 4,549 The following summarizes the components of the Company’s deferred tax assets and deferred tax liabilities at December 31: 2022 2021 Deferred tax assets: Net operating loss carry forwards $ 142 $ 213 Stock based compensation 985 938 Allowance for loan loss 3,330 2,496 Deferred loan fees, net 386 141 Unrealized loss on securities available-for-sale 5,733 339 Other 684 548 Total deferred tax assets 11,260 4,675 Deferred tax liabilities: Fixed assets (1,135) (1,272) Investment in partnership (553) (558) Total deferred tax liabilities (1,688) (1,830) Deferred tax asset, net $ 9,572 $ 2,845 The Company has New York state and city net operating loss carryforwards of $1,790 and $135, respectively, as of December 31, 2022. The net operating losses are available to reduce future taxable income and begin to expire in 2026. Realization of deferred tax assets is dependent upon the generation of future taxable income. A valuation allowance is provided when it is more likely than not that some portion of the deferred tax asset will not be realized. Based on its evaluation, the Company has determined that it is more likely than not that the deferred tax asset as of December 31, 2022 and 2021, will be realized. The Company does not have any unrecognized tax benefits at December 31, 2022 and 2021, and does not expect this to increase in the next twelve months. There were no interest and penalties recorded in the Consolidated Statements of Income for the years ended December 31, 2022, 2021 and 2020. The Company is subject to U.S. federal income tax as well as income tax in ten state and local jurisdictions. The Company is no longer subject to examination by taxing authorities for years before 2019.

Employee Benefits

Employee Benefits	12 Months Ended
Employee Benefits	Dec. 31, 2022
Share-Based Payment Plans
Employee Benefits	NOTE 9 — Employee Benefits 401(k) Plan A savings plan is maintained under section 401(k) of the Internal Revenue Code and covers substantially all current full-time employees. Newly hired employees can elect to participate in the savings plan after completing one month of service. The Company matched 100% of employee contributions up to 2% of their salary, resulting in total expenses of $218, $189 and $150 in 2022, 2021 and 2020, respectively. Share Based Payment Plans The Company issues incentive and non-statutory stock options and restricted stock awards to certain employees and directors pursuant to its equity incentive plans, which have been approved by the stockholders. Share-based awards are granted by the Compensation Committee of the Board of Directors. The Company’s 2007 Stock Option Plan allowed for a maximum of 270,000 shares of common stock to be issued. As of December 31, 2022, 269,500 shares have been issued. The 2007 Stock Option Plan expired in May of 2017 and no new options can be granted from the plan. The Company’s 2011 Stock Compensation Plan allows for a maximum of 754,607 shares of common stock to be issued. The 2011 Stock Compensation Plan expired in May of 2021, and no new awards can be granted from the plan. The Company’s 2017 Equity Incentive Plan allows for a maximum of 300,000 shares of common stock to be issued. As of December 31, 2022, all shares under the 2017 plan have been issued. The Company’s 2019 Equity Incentive Plan allows for a maximum of 300,000 shares of common stock to be issued. As of December 31, 2022, 35 shares remain available for grant. The Company’s 2021 Equity Incentive Plan allows for a maximum of 400,000 shares of common stock to be issued. A total of 164,530 shares remain available for grant under the 2021 Equity Incentive Plan of which 127,280 can be granted as restricted shares. Under the plans, options are granted with an exercise price equal to the fair value of the Company’s stock at the date of the grant. Options granted vest over three The fair value of each option award is estimated on the date of grant using a closed form option valuation (Black-Scholes) model that uses the assumptions noted in the table below. Expected volatilities are based on peer volatility. The Company uses peer data to estimate option exercise and post-vesting termination behavior. The expected term of options granted is based on peer data and represents the period of time that options granted are expected to be outstanding, which takes into account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. The fair value of options granted was determined using the following weighted-average assumptions as of grant date. For the Years Ended December 31, 2022 2021 2020 Risk-free interest rate 3.67 % 1.43 % 0.61 % Expected term 84 months 84 months 84 months Expected stock price volatility 26.5 % 34.7 % 52.4 % Dividend yield 1.01 % 0.00 % 0.00 % Weighted average fair value $ 13.63 $ 11.99 $ 10.99 The following table presents a summary of the activity related to options for the year ended December 31, 2022: For the Year Ended December 31, 2022 Weighted Weighted Average Average Remaining Exercise Contractual Options Price Life (Years) Outstanding at beginning of year 649,600 $ 16.66 Granted 52,500 42.30 Exercised (51,831) 16.02 Forfeited (16,285) 25.50 Expired — — Outstanding at end of year 633,984 $ 18.61 4.92 Vested or expected to vest 633,984 $ 18.61 4.92 Exercisable at end of year 522,372 $ 15.20 3.99 The Company recognized compensation expense related to options of $463, $483 and $492 for the years ended December 31, 2022, 2021 and 2020, respectively. At December 31, 2022, unrecognized compensation cost related to non-vested options was approximately $1,361 and is expected to be recognized over a weighted average period of 2.34 years. The intrinsic value for outstanding options, net of expected forfeitures was $15,628. The intrinsic value for exercisable options at December 31, 2022 was $14,659. The following table presents information related to stock options exercises for the years ended December 31: For the Years Ended December 31, 2022 2021 2020 Intrinsic value of options exercised $ 1,312 $ 6,313 $ 943 Cash received from option exercises 333 27 401 Excess tax benefit from option exercises 273 1,433 107 The following table presents a summary of the activity related to restricted stock for the year ended December 31, 2022: For the Year Ended December 31, 2022 Weighted Average Grant Date Shares Fair Value Outstanding at beginning of year 482,750 $ 24.59 Granted 88,720 42.30 Vested (54,495) 22.81 Forfeited (13,750) 24.31 Outstanding at end of year 503,225 $ 27.92 The Company recognized compensation expense related to restricted stock of $1,981, $1,482 and $1,048 for the years ended December 31, 2022, 2021 and 2020, respectively. As of December 31, 2022, there was $10,000 of total unrecognized compensation cost related to non-vested shares granted under the plan. The cost is expected to be recognized over a weighted-average period of 4.62 years.

Earnings per Share

Earnings per Share	12 Months Ended
Earnings per Share	Dec. 31, 2022
Earnings per Share
Earnings per Share	NOTE 10 — Earnings per Share The factors used in the earnings per share computation follow: For the Years Ended December 31, 2022 2021 2020 Basic: Net income $ 28,518 $ 17,925 $ 12,618 Weighted average shares outstanding 7,638,423 7,469,907 7,412,131 Basic earnings per share $ 3.73 $ 2.40 $ 1.70 Diluted: Net income $ 28,518 $ 17,925 $ 12,618 Weighted average shares outstanding for basic earnings per share 7,638,423 7,469,907 7,412,131 Add: Dilutive effects of share based awards 575,271 477,077 231,692 Weighted average shares and dilutive potential shares 8,213,694 7,946,984 7,643,823 Diluted earnings per share $ 3.47 $ 2.26 $ 1.65 Share based awards totaling 201,920, 100,737 and 394,266 shares of stock were not considered in computing diluted earnings per share for 2022, 2021 and 2020, respectively, because they were anti-dilutive.

Commitments and Contingent Liab

Commitments and Contingent Liabilities	12 Months Ended
Commitments and Contingent Liabilities	Dec. 31, 2022
Commitments and Contingent Liabilities
Commitments and Contingent Liabilities	NOTE 11 — Commitments and Contingent Liabilities Change-In-Control Arrangements Certain key executive officers have arrangements that provide for the payment of a multiple of base salary, should a change-in control, as defined, occur. These payments are limited under guidelines for deductibility pursuant to the Internal Revenue Code. Credit Related Commitments The Company provides off-balance sheet financial products to customers in the form of commitments to extend credit which are agreements to lend to customers in accordance with contractual provisions. These commitments usually have fixed expiration dates or other termination clauses and may require the payment of a fee. Total commitments outstanding do not necessarily represent future cash flow requirements as many commitments expire without being funded. Each customer’s creditworthiness is evaluated prior to issuing these commitments and may require the customer to pledge certain collateral (i.e., inventory, income-producing property) prior to the extension of credit. Fixed rate commitments are subject to interest rate risk based on changes in prevailing rates during the commitment period. The Company is also subject to credit risk in the event that the commitments are drawn upon and the customer is unable to repay the obligation. Letters of credit are irrevocable commitments issued at the request of customers. They authorize the beneficiary to draw drafts for payment in accordance with the stated terms and conditions. Letters of credit substitute the Company’s creditworthiness for that of the customer and are issued for a fee commensurate with the risk. The Company can issue two types of letters of credit: commercial (documentary) letters of credit and standby letters of credit. Commercial letters of credit are commonly issued to finance the purchase of goods and are typically short-term in nature. Standby letters of credit are issued to back financial or performance obligations of a Bank customer and are typically issued for periods up to one year. Due to their long-term nature, standby letters of credit require adequate collateral in the form of cash or other liquid assets. In most instances, standby letters of credit expire without being drawn upon. The credit risk involved in issuing letters of credit is essentially the same as extending credit facilities to comparable customers. For the Years Ended December 31, 2022 2021 Fixed Rate Variable Rate Fixed Rate Variable Rate Unused lines of credit $ 15 $ 17,223 $ 20 $ 14,003 Standby letters of credit 7,945 — 4,591 — Total credit related commitments $ 7,960 $ 17,223 $ 4,611 $ 14,003 The fixed rate credit related loan commitments have interest rates ranging from 8.00% to 18.00% and maturities ranging from 1 month to 4 years. Litigation The Company and its subsidiary are subject to certain pending and threatened legal actions that arise out of the normal course of business. In the opinion of management at the present time, the resolution of any pending or threatened litigation will not have a material adverse effect on its Consolidated Financial Statements.

Leases

Leases	12 Months Ended
Leases	Dec. 31, 2022
Leases
Leases	NOTE 12 — Leases The Company recognizes the present value of its operating lease payments related to its office facilities and retail branch as operating lease assets and corresponding lease liabilities on the Consolidated Statements of Financial Condition. These operating lease assets represent the Company’s right to use an underlying asset for the lease term, and the lease liability represents the Company’s obligation to make lease payments over the lease term. As these leases do not provide an implicit rate, the Company used its incremental borrowing rate, the rate of interest to borrow on a collateralized basis for a similar term, at the lease commencement date in order to determine present value. As of December 31, 2022, right of use (“ROU”) lease assets and related lease liabilities were $2,291 and $2,810, respectively. As of December 31, 2021, ROU lease assets and related lease liabilities were $2,374 and $2,988, respectively. ROU assets are included within Other assets and related lease liabilities are included within Accrued expenses and other liabilities on the Consolidated Statements of Financial Condition. As of December 31, 2022, the Company was obligated under several non-cancelable leases for certain premises and equipment. The minimum annual rental commitments, exclusive of taxes and other charges, under non-cancelable lease agreements for premises at December 31, 2022, are summarized as follows: Operating Lease Liabilities 2023 $ 712 2024 784 2025 803 2026 754 2027 — Thereafter — Total operating lease payments 3,053 Less: interest 243 Present value of operating lease liabilities $ 2,810 As of December 31, 2022 2021 Weighted-average remaining lease term 3.92 years 4.88 years Weighted-average discount rate 3.28 % 3.06 % The components of total lease cost are as follows: For the Years Ended December 31, 2022 2021 2020 Operating lease cost $ 560 $ 568 $ 563 Short-term lease cost 74 13 66 Total lease cost $ 634 $ 581 $ 629 These leases contain periodic escalation clauses and all expiring leases are evaluated for extensions at renewal. Rent expense for the years ended December 31, 2022, 2021, and 2020 amounted to $634, $581 and $629, respectively.

Fair Value Measurements

Fair Value Measurements	12 Months Ended
Fair Value Measurements	Dec. 31, 2022
Fair Value Measurements
Fair Value Measurements	NOTE 13 — Fair Value Measurements Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values. Level 1 Level 2 Level 3 For available-for-sale securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). Assets and liabilities measured at fair value on a recurring basis are summarized below: Fair Value Measurements Using Quoted Prices In Active Markets For Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) December 31, 2022 Assets Securities available-for-sale Mortgage-backed securities – agency $ — $ 92,945 $ — CMOs – agency — 16,324 — Total $ — $ 109,269 $ — December 31, 2021 Assets Securities available-for-sale Mortgage-backed securities – agency $ — $ 120,881 $ — CMOs – agency — 27,503 — Total $ — $ 148,384 $ — There were no transfers between There were no assets or liabilities measured at fair value on a nonrecurring basis as of December 31, 2022.The legacy NFL consumer loan portfolio was measured on a nonrecurring basis and assigned a Level 3 fair value of $14.1 million as of December 31, 2021, as the loans are accounted for at the lower of cost or fair value. The fair value was determined using the discounted cash flow method under the income approach where the significant unobservable inputs include the cash flows and related timing, and an approximately 8% discount rate applied which reflects the rate of return market participants would expect to earn on investments of equivalent risk. Estimated Fair Value of Financial Instruments Fair value estimates are made at specific points in time and are based on existing on-and off-balance sheet financial instruments. Such estimates are generally subjective in nature and dependent upon a number of significant assumptions associated with each financial instrument or group of financial instruments, including estimates of discount rates, risks associated with specific financial instruments, estimates of future cash flows, and relevant available market information. Changes in assumptions could significantly affect the estimates. In addition, fair value estimates do not reflect the value of anticipated future business, premiums or discounts that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument, or the tax consequences of realizing gains or losses on the sale of financial instruments. The Company used the following method and assumptions in estimating the fair value of its financial instruments: Debt Securities: The following table presents the carrying amounts and fair values (represents exit price) of the Company’s financial instruments not carried at fair value: Fair Value Measurement at December 31, 2022, Using: Carrying Value (Level 1) (Level 2) (Level 3) Total Financial Assets: Cash and cash equivalents $ 164,122 $ 164,122 $ — $ — $ 164,122 Securities purchased under agreements to resell, at cost 49,567 — — 49,567 49,567 Securities, held-to-maturity 78,377 — 69,346 — 69,346 Securities, restricted, at cost 2,810 N/A N/A N/A N/A Loans held for investment, net 935,072 — — 927,481 927,481 Accrued interest receivable 5,768 — 449 5,319 5,768 Financial Liabilities: Time deposits 19,558 — 19,459 — 19,459 Demand and other deposits 1,208,678 1,208,678 — — 1,208,678 Secured borrowings 46 — — 46 46 Accrued interest payable 30 — 30 — 30 Fair Value Measurement at December 31, 2021, Using: Carrying Value (Level 1) (Level 2) (Level 3) Total Financial Assets: Cash and cash equivalents $ 149,156 $ 149,156 $ — $ — $ 149,156 Securities purchased under agreements to resell, at cost 50,271 — — 50,271 50,271 Securities, restricted, at cost 2,680 N/A N/A N/A N/A Loans held for investment, net 775,441 — — 774,114 774,114 Accrued interest receivable 4,197 — 252 3,945 4,197 Financial Liabilities: Time deposits 19,312 — 19,330 — 19,330 Demand and other deposits 1,009,097 1,009,097 — — 1,009,097 Secured borrowings 48 — — 48 48

Capital

Capital	12 Months Ended
Capital	Dec. 31, 2022
Capital
Capital	NOTE 14 — Capital Banks are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. The final rules of implementing the Basel Committee on Banking Supervision’s capital guidelines for U.S. Banks (Basel III rules) became effective for the Company on January 1, 2015, with full compliance with all of the requirements being phased in over a multi-year schedule, and fully phased in on January 1, 2019. The net unrealized gain or loss on available-for-sale securities and certain deferred tax assets are not included in computing regulatory capital. Management believes as of December 31, 2022, the Bank met all capital adequacy requirements to which it is subject. Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. As of December 31, 2022, the most recent notification from the Federal Deposit Insurance Corporation categorized the Bank as “well capitalized” under the regulatory framework for prompt corrective action. To be categorized as “well capitalized,” the Bank must maintain minimum total risk-based, Tier 1 risk-based and Tier 1 leverage ratios as set forth in the table below. Since that notification, there are no conditions or events that management believes have changed the institution’s category. For Capital To be Well Required Adequacy Purposes Capitalized Under For Capital Including Capital Prompt Corrective Actual Adequacy Purposes Conservation Buffer Action Regulations Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2022 Total capital to risk weighted assets $ 153,230 15.44 % $ 79,377 8.00 % $ 104,182 10.50 % $ 99,221 10.00 % Tier 1 (core) capital to risk weighted assets 141,006 14.21 59,533 6.00 84,338 8.50 79,377 8.00 Tier 1 (common) capital to risk weighted assets 141,006 14.21 44,650 4.50 69,455 7.00 64,494 6.50 Tier 1 (core) capital to adjusted total assets 141,006 10.98 51,355 4.00 51,355 4.00 64,194 5.00 December 31, 2021 Total capital to risk weighted assets $ 131,137 15.89 % $ 66,039 8.00 % $ 86,677 10.50 % $ 82,549 10.00 % Tier 1 (core) capital to risk weighted assets 122,059 14.79 49,530 6.00 70,167 8.50 66,039 8.00 Tier 1 (common) capital to risk weighted assets 122,059 14.79 37,147 4.50 57,785 7.00 53,657 6.50 Tier 1 (core) capital to adjusted total assets 122,059 11.46 42,619 4.00 42,619 4.00 53,273 5.00

Parent Company Only Condensed F

Parent Company Only Condensed Financial Information	12 Months Ended
Parent Company Only Condensed Financial Information	Dec. 31, 2022
Parent Company Only Condensed Financial Information
Parent Company Only Condensed Financial Information	NOTE 15 — Parent Company Only Condensed Financial Information Condensed financial information of Esquire Financial Holdings, Inc. follows: CONDENSED STATEMENTS OF FINANCIAL CONDITION At December 31, 2022 2021 ASSETS: Cash and cash equivalents $ 10,467 $ 695 Investment in banking subsidiary 126,031 121,297 Loans held for sale — 14,100 Loans held for investment 1,967 — Equity investment without readily determinable fair value 2,410 2,410 Equity investment in variable interest entity 12,636 — Other assets 4,986 5,461 Total assets $ 158,497 $ 143,963 LIABILITIES AND STOCKHOLDERS' EQUITY: Other liabilities $ 339 $ 228 Total stockholders’ equity 158,158 143,735 Total liabilities and equity $ 158,497 $ 143,963 CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Years Ended December 31, 2022 2021 2020 Net interest (expense) income $ (111) $ 167 $ 86 Gain (loss) on loans held for sale 88 (295) — Other income 14 — — Dividends from subsidiaries 12,000 8,000 5,000 Other expense 3,369 2,575 2,138 Income before income tax and undistributed subsidiary income 8,622 5,297 2,948 Income tax benefit 895 635 544 Equity in undistributed subsidiary income 19,001 11,993 9,126 Net income $ 28,518 $ 17,925 $ 12,618 Comprehensive income $ 14,251 $ 15,667 $ 13,640 CONDENSED STATEMENTS OF CASH FLOWS For the Years Ended December 31, 2022 2021 2020 Cash flows from operating activities: Net income $ 28,518 $ 17,925 $ 12,618 Adjustments: Stock compensation expense 2,444 1,965 1,540 (Gain) loss on loans held for sale (88) 295 — Equity in undistributed subsidiary income (19,001) (11,993) (9,126) Change in other assets 299 (737) (573) Change in other liabilities (933) (31) (120) Net cash provided by operating activities 11,239 7,424 4,339 Cash flows from investing activities: Investment in loans held for sale — (14,584) — Net change in other — (459) (1,646) Payments on loans held for sale, previously classified as held for investment 688 189 — Net cash provided by (used in) investing activities 688 (14,854) (1,646) Cash flows from financing activities: Exercise of stock options 333 27 401 Tax withholding payments for vested equity awards (339) — — Cash dividends paid to common stockholders (2,149) — — Purchase of common stock — — (567) Net cash (used in) provided by financing activities (2,155) 27 (166) Net change in cash and cash equivalents 9,772 (7,403) 2,527 Beginning cash and cash equivalents 695 8,098 5,571 Ending cash and cash equivalents $ 10,467 $ 695 $ 8,098

Accumulated Other Comprehensive

Accumulated Other Comprehensive (Loss) Income	12 Months Ended
Accumulated Other Comprehensive (Loss) Income	Dec. 31, 2022
Accumulated Other Comprehensive (Loss) Income
Accumulated Other Comprehensive (Loss) Income	NOTE 16 — Accumulated Other Comprehensive (Loss) Income The following is changes in accumulated other comprehensive (loss) income by component, net of tax, for the years ending December 31, 2022, 2021, and 2020: For the Years Ended December 31, 2022 2021 2020 Unrealized (Losses) Gains on Securities Available-for-Sale Unrealized (Losses) Gains on Available-for-Sale Securities Beginning balance $ (850) $ 1,408 $ 386 Other comprehensive (loss) income before reclassifications, net of tax (14,267) (2,258) 1,022 Amounts reclassified from accumulated other comprehensive (loss) income — — — Net current period other comprehensive (loss) income (14,267) (2,258) 1,022 Ending balance $ (15,117) $ (850) $ 1,408 There were no reclassifications out of accumulated other comprehensive (loss) income for the years presented.

Subsequent Events

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2022
Subsequent Events
Subsequent Events	NOTE 17 — Subsequent Event As discussed in Note 1, the Company has an equity investment without a readily determinable fair value in Litify, Inc. as of December 31, 2022. In February 2023, Litify, Inc. was reorganized into a partnership and an unrelated third party acquired a majority ownership in the reorganized entity. As party to the reorganization and sale transaction, 63% of the Company’s partnership interests were exchanged for cash and undiscounted noncash consideration of approximately $5.4 million. As a result, the Company expects to recognize a gain on its investment of approximately $4,000 in the first quarter of 2023.

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2022
Basis of Presentation and Summary of Significant Accounting Policies
Business	Business Esquire Financial Holdings, Inc. (the “Company”) is a financial holding company incorporated in Maryland and headquartered in Jericho, New York, with one branch office in Jericho, New York and an administrative office in Boca Raton, Florida. Its wholly-owned subsidiary, Esquire Bank, National Association (the “Bank”), is a full service commercial bank dedicated to serving the financial needs of the legal industry and small businesses nationally, as well as commercial and retail customers in the New York metropolitan area. The Bank offers tailored products and solutions to the legal community and their clients as well as dynamic and flexible payment processing solutions to small business owners. Banking products offered for businesses and consumers include checking, savings, money market and time deposits; a wide range of commercial and consumer loans, as well as customary banking services. These activities, primarily anchored by our legal community focus, generate a stable source of low cost deposits and a diverse asset base to support our overall operations. The Bank operates a payment processing platform through third party Independent Sales Organizations (“ISOs”). As an acquiring bank, fees are charged to merchants for the settlement of credit card, debit card and ACH transactions. The Bank’s revenue from these operational services is presented as payment processing fees on the Consolidated Statement of Income. The Consolidated Financial Statements include Esquire Financial Holdings, Inc. and its wholly owned subsidiary, Esquire Bank, N.A. and are referred to as “the Company.” Intercompany transactions and balances are eliminated in consolidation.
Risks and Uncertainties	Risks and Uncertainties The COVID-19 pandemic has and may continue to impact the operations and business results of the Company. The extent to which the COVID-19 crisis may impact business activity or financial results will depend on future developments, which are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity of the coronavirus or new variants and the actions required to contain the coronavirus or treat its impact, among others. This uncertainty may impact the accuracy of our significant estimates, which includes the allowance for loan losses. The Company has evaluated the impact of the effects of COVID-19 and determined that there were no material or systematic adverse impacts on the Company's 2022 Consolidated Statement of Financial Condition and Consolidated Statement of Income.
Investment in Variable Interest Entity	Investment in Variable Interest Entity On April 1, 2022, the Company sold its legacy NFL consumer post-settlement loan portfolio to a variable interest entity (“VIE”) in exchange for a nonvoting interest valued at $13,500 where the Company will remain as servicer of the loan portfolio at the discretion of the VIE manager. The Company’s investment is considered a significant variable interest, but it does not have the power to direct the activities that most significantly impact the VIE’s economic performance. Therefore, the Company is not considered the primary beneficiary of this VIE and does not consolidate the entity in the Company’s financial statements. The Company’s maximum exposure to loss is limited to the carrying amount of its investment and accounted for under the equity method which is presented within other assets on the Consolidated Statement of Financial Condition. As of December 31, 2022, the investment’s carrying amount was $12,636.
Dividend Restriction	Dividend Restriction Banking regulations require maintaining certain capital levels and may limit the dividends paid by the bank to the holding company or by the holding company to shareholders.
Basis of Presentation and Use of Estimates	Basis of Presentation and Use of Estimates The accounting and financial reporting policies are in conformity with U.S. generally accepted accounting principles (“GAAP”). The preparation of financial statements requires that management make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Such estimates are subject to change in the future as additional information becomes available or previously existing circumstances are modified. Actual results could differ from those estimates.
Statement of Cash Flows	Statement of Cash Flows For purposes of the accompanying statements of cash flows, cash and cash equivalents are defined as the amounts included in the Consolidated Statements of Financial Condition under the captions “Cash and cash equivalents”, with contractual maturities of less than 30 days. Net cash flows are primarily reported for customer loan and deposit transactions.
Securities Purchased Under Agreements to Resell	Securities Purchased Under Agreements to Resell The Company enters into purchases of securities under agreements to resell identical securities which consist of mortgage loans that meet the GNMA pooling qualifications. The cash advanced to the counterparty are reflected as assets on the Statement of Financial Condition and are accounted for at cost. The Company obtains possession of securities collateral with a market value equal to or in excess of the principal amount loaned under the resell agreement and has the right to request additional collateral, based on its daily monitoring of the fair value of the securities. As of December 31, 2022, there is one open contract with one counterparty that is scheduled to mature within thirty days.
Debt Securities	Debt Securities Securities are classified as either available-for-sale or held-to-maturity at purchase. Securities where management intends to hold to maturity are designated as held-to-maturity. All other securities are designated as available-for-sale. Securities available-for-sale are carried at fair value and unrealized gains and losses on these securities are reported, net of applicable taxes, as a separate component of accumulated other comprehensive (loss) income, a component of stockholders’ equity. Securities held-to-maturity are carried at cost and gains and losses on these securities are unrecognized. Interest income on securities, including amortization of premiums and accretion of discounts, is recognized using the level yield method without anticipating prepayments (except for mortgage-backed securities where prepayments are anticipated) over the lives of the individual securities. Realized gains and losses on sales of securities are computed using the specific identification method.
Loans	Loans Loans that management has the intent and ability to hold for the foreseeable future until maturity or payoff are stated at the principal amount outstanding, net of deferred loan fees and costs for originated loans and net of unamortized premiums or discounts for purchased loans. Interest income is recognized using the level yield method. Net deferred loan fees, origination costs, unamortized premiums or discounts are recognized in interest income over the loan term as a yield adjustment.
Nonaccrual	Nonaccrual Interest income on mortgage and commercial loans is discontinued at the time the loan is 90 days delinquent unless the loan is well-secured and in process of collection. Consumer loans are typically charged-off no later than 120 days past due. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. A loan is moved to nonaccrual status in accordance with the Company’s policy, typically after 90 days of non-payment. All interest accrued but not received for loans placed on nonaccrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.
Provision and Allowance for Loan Losses	Provision and Allowance for Loan Losses The allowance for loan losses is a valuation allowance for probable incurred credit losses. The allowance for loan losses is increased by provisions for loan losses charged to income. Losses are charged to the allowance when all or a portion of a loan is deemed to be uncollectible. Subsequent recoveries of loans previously charged-off are credited to the allowance for loan losses when realized. Management estimates the allowance balance required using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged-off. The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. All loans, except for smaller dollar consumer loans, are individually evaluated for impairment. If a loan is impaired, a portion of the allowance is allocated as a specific allowance. The measurement of an impaired loan is based on (i) the present value of expected future cash flows discounted at the loan’s effective interest rate, (ii) the loan’s observable market price or (iii) the fair value of the collateral if the loan is collateral dependent. Loans for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired. Troubled debt restructurings are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a troubled debt restructuring is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. For troubled debt restructurings that subsequently default, the Company determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses. The general component is based on historical loss experience adjusted for current factors. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company. This actual loss experience is supplemented with qualitative factors based on the risks present for each portfolio segment. These qualitative factors include consideration of the following: levels of and trends in delinquencies and impaired loans; levels of and trends in charge-offs and recoveries; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. The determination of the qualitative factors involves significant judgment and subjective measurement. Management has identified the following loan segments: Commercial Real Estate, Multifamily, Construction, Commercial, 1 – 4 Family and Consumer. The risks associated with a concentration in real estate loans include potential losses from fluctuating values of land and improved properties. Commercial Real Estate and Multifamily loans are expected to be repaid from the cash flow of the underlying property so the collective amount of rents must be sufficient to cover all operating expenses, property management and maintenance, taxes and debt service. Increases in vacancy rates, interest rates or other changes in general economic conditions can all have an impact on the borrower and their ability to repay the loan. Construction loans are considered riskier than commercial financing on improved and established commercial real estate. The risk of potential loss increases if the original cost estimates or time to complete are significantly off. The remainder of the loan portfolio is comprised of commercial and consumer loans. The primary risks associated with the commercial loans is the cash flow of the business, the experience and quality of the borrowers’ management, the business climate, and the impact of economic factors. The primary risks associated with 1 – 4 Family and Consumer loans relate to the borrower, such as the risk of a borrower’s unemployment as a result of deteriorating economic conditions or the amount and nature of a borrower’s other existing indebtedness, and the value of the collateral securing the loan if the Bank must take possession of the collateral. Post-settlement consumer loans are also subject to unforeseen rulings or administrative legal anomalies that may eliminate or greatly reduce a borrowers settlement amount.
Premises and Equipment	Premises and Equipment Premises and equipment, including leasehold improvements, are stated at cost, net of accumulated depreciation and amortization. Equipment, which includes furniture and fixtures, are depreciated over the assets’ estimated useful lives using the straight-line method ( three
Internal-Use Software	Internal-Use Software Implementation costs with respect to internal-use software is capitalized once the project stage is complete. Project stage includes determining the performance requirements, strategic decisions related to allocation of resources, determining the technology needed to achieve performance requirements, selection of vendors, and other items. Costs during the project stage are expensed as incurred. Once the internal-use software is placed into operation, capitalized software costs are amortized using the straight-line method over 3
Securities, Restricted at Cost	Securities, Restricted, at Cost The Bank is a member of the FHLB system and the FRB of New York, and Atlantic Central Banker’s Bank where members are required to own a certain number of shares of stock in order to conduct business with these institutions. FHLB stock holdings are based on the level of MRA, borrowings and other factors while FRB stock holding levels are capital based. These equity investments are carried at cost and classified as restricted securities which are periodically evaluated for impairment based on the ultimate recovery of par value. Dividends from these equity investments are reported as interest income on the Consolidated Statements of Income.
Loan Commitments	Loan Commitments The Company enters into commitments to extend credit to customers to meet their financing needs which are in the form of lines of credit, letters of credit, and loan funding commitments. The face amount of these financial instruments represents the exposure to loss before considering customer collateral or ability to repay. Such financial instruments are recorded on balance sheet at cost when funded and presented as loans on the Consolidated Statements of Financial Condition.
Equity Investment Without Readily Determinable Fair Value	Equity Investment Without Readily Determinable Fair Value In April 2018, the Company purchased a 4.95% interest in Litify, Inc., a technology solution to automate and manage a law firm’s business and cases, for a cost of $2,410. As Litify, Inc. is a private company, the investment does not have a readily determinable fair value and management has elected to determine the recorded carrying amount based on its cost adjusted for observable price changes less impairment. At December 31, 2022, the investment’s carrying amount was $2,410. Based on our evaluation, we noted no significant adverse changes which would indicate the asset is impaired or any observable price changes as of December 31, 2022. The investment is presented within other assets on the Consolidated Statements of Financial Condition.
Transfers of Financial Assets	Transfers of Financial Assets Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.
Income Taxes	Income Taxes Income taxes are provided for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred taxes of a change in tax rates is recognized in income in the period the change occurs. Deferred tax assets are reduced, through a valuation allowance, if necessary, by the amount of such benefits that are not expected to be realized based on current available evidence. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense on the Consolidated Statements of Income.
Earnings per Share	Earnings per Share Basic earnings per share is net earnings allocated to stock divided by the weighted average number of shares outstanding during the period. Any outstanding preferred shares are considered participating securities for computation of basic earnings per share. Diluted earnings per share include the dilutive effect of additional potential shares issuable under stock options and restricted stock awards.
Share-Based Payment	Share-Based Payment Share based payment guidance requires the Company to recognize the grant-date fair value of stock options and other equity-based compensation issued to employees and non-employees in the Consolidated Statements of Income. A Black-Scholes model is utilized to estimate the fair value of stock options. Compensation cost for stock options are recognized as noninterest expense in the Consolidated Statement of Income on a straight-line basis over the vesting period of each stock option grant. Compensation expense for restricted stock awards is based on the fair value of the award on the measurement date, which is the date of grant, and the expense is recognized ratably over the service period of the award. At December 31, 2022, no equity-based compensation had vesting conditions linked to the performance of the Company or market conditions.
Segment Reporting	Segment Reporting The Company’s operations are exclusively in the financial services industry and include the provision of traditional banking services. Management evaluates the performance of the Company based on only one business segment, that of community banking. In the opinion of management, the Company does not have any other reportable segments as defined by Accounting Standards Codification (“ASC”) Topic 280, “Disclosure about Segments of an Enterprise and Related Information.”
Reclassifications	Reclassifications Some items in the prior year financial statements were reclassified to conform to the current presentation. The reclassifications are immaterial and had no effect on prior year net income or stockholders’ equity.
Comprehensive Income	Comprehensive Income Comprehensive income consists of net income and other comprehensive (loss) income which includes unrealized gains and losses on securities available-for-sale.
Fair Value of Financial Instruments	Fair Value of Financial Instruments Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates.
Loss Contingencies	Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there now are such matters that will have a material effect on the Consolidated Financial Statements.
New Accounting Pronouncements	New Accounting Pronouncements In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”. This ASU replaces the incurred loss model with an expected loss model, referred to as “current expected credit loss” (“CECL”) model. It will significantly change estimates for credit losses related to financial assets measured at amortized cost, including loans receivable and certain other contracts. This ASU will be effective for the Company on January 1, 2023, using the required modified retrospective method with a cumulative effect adjustment as of the beginning of the reporting period. The Company is in the process of finalizing its CECL calculation for adoption and does not expect the adoption adjustment to have a material impact to stockholders’ equity or Esquire Bank’s capital position. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” ASU 2020-04 provides optional expedients and exceptions for accounting related to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. ASU 2020-04 applies only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform and do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. ASU 2020-04 was effective upon issuance and generally can be applied through December 31, 2022. Adoption of the standard did not have an impact on the Company’s operating results or financial condition as there are no LIBOR based financial instruments in its portfolio. In March 2022, the FASB issued ASU 2022-02, “Financial Instruments — Credit Losses (Topic 326): Troubled Debt Restructuring and Vintage Disclosures”. ASU 2022-02 eliminates the accounting guidance for TDRs by creditors in Subtopic 310-40, “Receivables — Troubled Debt Restructurings by Creditors”, while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty. Additionally, the amendments in this ASU require that public business entities disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of ASU 326-20, “Financial Instruments — Credit Losses: Measured at Amortized Cost”. The Company is in the process of evaluating the ASU in conjunction with its adoption of CECL on January 1, 2023. In March 2022, the SEC issued Staff Accounting Bulletin (“SAB”) No. 121 which provides interpretive guidance for the accounting and disclosure of obligations to safeguard crypto-assets held for platform users effective the first interim or annual period ending after June 15, 2022. This guidance does not have an impact on the Company’s financial statements as no crypto-asset related activities are conducted by the Company.

Debt Securities (Tables)

Debt Securities (Tables)	12 Months Ended
Debt Securities (Tables)	Dec. 31, 2022
Debt Securities
Schedule of amortized cost, gross unrealized gains and losses and estimated fair value of securities available-for-sale and held to maturity	The following tables summarize the major categories of securities as of the dates indicated: December 31, 2022 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Securities available-for-sale: Mortgage-backed securities – agency $ 111,445 $ — $ (18,500) $ 92,945 Collateralized mortgage obligations ("CMOs") – agency 18,675 — (2,351) 16,324 Total available-for-sale $ 130,120 $ — $ (20,851) $ 109,269 Gross Gross Amortized Unrecognized Unrecognized Fair Cost Gains Losses Value Securities held-to-maturity: CMOs – agency $ 78,377 $ — $ (9,031) $ 69,346 Total held-to-maturity $ 78,377 $ — $ (9,031) $ 69,346 December 31, 2021 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Securities available-for-sale: Mortgage-backed securities – agency $ 122,258 $ 673 $ (2,050) $ 120,881 CMOs – agency 27,316 237 (50) 27,503 Total available-for-sale $ 149,574 $ 910 $ (2,100) $ 148,384
Schedule of gross unrealized losses and fair value, securities in continuous unrealized loss position	December 31, 2022 Less Than 12 Months 12 Months or Longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Securities available-for-sale: Mortgage-backed securities – agency $ 8,902 $ (725) $ 84,043 $ (17,775) $ 92,945 $ (18,500) CMOs – agency 11,798 (992) 4,526 (1,359) 16,324 (2,351) Total temporarily impaired securities $ 20,700 $ (1,717) $ 88,569 $ (19,134) $ 109,269 $ (20,851) Less Than 12 Months 12 Months or Longer Total Fair Value Gross Unrecognized Losses Fair Value Gross Unrecognized Losses Fair Value Gross Unrecognized Losses Securities held-to-maturity: CMOs – agency $ 69,346 $ (9,031) $ — $ — $ 69,346 $ (9,031) Total temporarily impaired securities $ 69,346 $ (9,031) $ — $ — $ 69,346 $ (9,031) December 31, 2021 Less Than 12 Months 12 Months or Longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Securities available-for-sale: Mortgage-backed securities - agency $ 101,235 $ (1,813) $ 4,503 $ (237) $ 105,738 $ (2,050) CMOs - agency 7,416 (50) — — 7,416 (50) Total temporarily impaired securities $ 108,651 $ (1,863) $ 4,503 $ (237) $ 113,154 $ (2,100)

Loans (Tables)

Loans (Tables)	12 Months Ended
Loans (Tables)	Dec. 31, 2022
Loans
Schedule of composition of loans	2022 2021 Real estate: Multifamily $ 262,489 $ 254,852 Commercial real estate 91,837 48,589 1 – 4 family 25,565 40,753 Construction — — Total real estate 379,891 344,194 Commercial 552,082 432,108 Consumer 16,580 8,681 Total loans held for investment 948,553 784,983 Deferred fees and unearned premiums, net (1,258) (466) Allowance for loan losses (12,223) (9,076) Loans held for investment, net $ 935,072 $ 775,441
Schedule of activity in allowance for loan losses	Commercial Multifamily Real Estate 1 ‑ 4 Family Construction Commercial Consumer Total December 31, 2022 Allowance for loan losses: Beginning balance $ 1,789 $ 552 $ 285 $ — $ 6,319 $ 131 $ 9,076 Provision (credit) for loan losses 389 470 (93) — 2,358 366 3,490 Recoveries 17 — — — 32 — 49 Loans charged-off (178) — — — (64) (150) (392) Total ending allowance balance $ 2,017 $ 1,022 $ 192 $ — $ 8,645 $ 347 $ 12,223 December 31, 2021 Allowance for loan losses: Beginning balance $ 1,278 $ 597 $ 342 $ — $ 5,003 $ 4,182 $ 11,402 Provision (credit) for loan losses 511 (45) (57) — 1,427 5,119 6,955 Recoveries — — — — — — — Loans charged-off — — — — (111) (9,170) (9,281) Total ending allowance balance $ 1,789 $ 552 $ 285 $ — $ 6,319 $ 131 $ 9,076 December 31, 2020 Allowance for loan losses: Beginning balance $ 1,048 $ 560 $ 344 $ 161 $ 4,048 $ 828 $ 6,989 Provision (credit) for loan losses 230 37 (2) (161) 957 5,189 6,250 Recoveries — — — — — — — Loans charged-off — — — — (2) (1,835) (1,837) Total ending allowance balance $ 1,278 $ 597 $ 342 $ — $ 5,003 $ 4,182 $ 11,402 The following tables present the balance in the allowance for loan losses and the recorded investment in loans by class and based on impairment method as of December 31, 2022 and 2021: Commercial Multifamily Real Estate 1 ‑ 4 Family Construction Commercial Consumer Total December 31, 2022 Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 2,017 1,022 192 — 8,645 347 12,223 Total ending allowance balance $ 2,017 $ 1,022 $ 192 $ — $ 8,645 $ 347 $ 12,223 Loans: Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 262,489 91,837 25,565 — 552,082 16,580 948,553 Total ending loans balance $ 262,489 $ 91,837 $ 25,565 $ — $ 552,082 $ 16,580 $ 948,553 Commercial Multifamily Real Estate 1 ‑ 4 Family Construction Commercial Consumer Total December 31, 2021 Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,789 552 285 — 6,319 131 9,076 Total ending allowance balance $ 1,789 $ 552 $ 285 $ — $ 6,319 $ 131 $ 9,076 Loans: Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 254,852 48,589 40,753 — 432,108 8,681 784,983 Total ending loans balance $ 254,852 $ 48,589 $ 40,753 $ — $ 432,108 $ 8,681 $ 784,983
Schedule of impaired loans by segment	December 31, December 31, 2022 2021 Unpaid Unpaid Recorded Principal Recorded Principal Investment Balance Investment Balance Multifamily $ — $ — $ — $ — Commercial real estate — — — — 1 – 4 family — — — — Construction — — — — Commercial — — — — Consumer — — — — Total $ — $ — $ — $ — The following tables provide an analysis of the recorded investment and interest income recognized on impaired loans by segment for the periods presented: Years Ended December 31, 2022 2021 2020 Average Interest Average Interest Average Interest Recorded Income Recorded Income Recorded Income Investment Recognized Investment Recognized Investment Recognized Multifamily $ 158 $ — $ 111 $ — $ — $ — Commercial real estate — — — — — — 1 – 4 family — — — — — — Construction — — — — — — Commercial 1,363 — — — — — Consumer 2 — 1,580 — 1,381 — Total $ 1,523 $ — $ 1,691 $ — $ 1,381 $ —
Schedule of aging of recorded investment in past due loans	Total Past 30-59 60-89 Greater than Due & Days Days 90 Days Nonaccrual Nonaccrual Loans Not Past Due Past Due Past Due Loans Loans Past Due Total December 31, 2022 Multifamily $ — $ — $ — $ — $ — $ 262,489 $ 262,489 Commercial real estate — — — — — 91,837 91,837 1 – 4 family — — — — — 25,565 25,565 Construction — — — — — — — Commercial — — — — — 552,082 552,082 Consumer 36 8 — 4 48 16,532 16,580 Total $ 36 $ 8 $ — $ 4 $ 48 $ 948,505 $ 948,553 Total Past 30-59 60-89 Greater than Due & Days Days 90 Days Nonaccrual Nonaccrual Loans Not Past Due Past Due Past Due Loans Loans Past Due Total December 31, 2021 Multifamily $ 1,034 $ — $ — $ — $ 1,034 $ 253,818 $ 254,852 Commercial real estate — — — — — 48,589 48,589 1 – 4 family — — — — — 40,753 40,753 Construction — — — — — — — Commercial — — — — — 432,108 432,108 Consumer 21 10 — 6 37 8,644 8,681 Total $ 1,055 $ 10 $ — $ 6 $ 1,071 $ 783,912 $ 784,983
Schedule of risk category of loans	Pass Special Mention Substandard Doubtful December 31, 2022 Multifamily $ 258,413 $ 3,355 $ 721 $ — Commercial real estate 88,019 3,818 — — 1 – 4 family 25,565 — — — Construction — — — — Commercial 547,412 4,670 — — Consumer 14,692 1,888 — — Total $ 934,101 $ 13,731 $ 721 $ — Pass Special Mention Substandard Doubtful December 31, 2021 Multifamily $ 254,131 $ — $ 721 $ — Commercial real estate 44,771 3,818 — — 1 – 4 family 37,738 3,015 — — Construction — — — — Commercial 410,548 17,977 3,583 — Consumer 8,681 — — — Total $ 755,869 $ 24,810 $ 4,304 $ —
Schedule of related parties include loans to directors, their related companies and executive officers	Beginning balance $ 5,583 New advances — Repayments (1,553) Ending balance $ 4,030

Premises and Equipment (Tables)

Premises and Equipment (Tables)	12 Months Ended
Premises and Equipment (Tables)	Dec. 31, 2022
Premises and Equipment
Schedule of premises and equipment	2022 2021 Leasehold improvements $ 2,800 $ 2,800 Furniture, fixtures and equipment 4,633 3,912 Fixed assets in progress 8 656 7,441 7,368 Less: accumulated depreciation and amortization 4,737 4,034 Total premises and equipment, net $ 2,704 $ 3,334

Deposits (Tables)

Deposits (Tables)	12 Months Ended
Deposits (Tables)	Dec. 31, 2022
Deposits.
Schedule of maturities of certificates of deposit	Total 2023 $ 18,734 2024 824 Total $ 19,558

Noninterest Income (Tables)

Noninterest Income (Tables)	12 Months Ended
Noninterest Income (Tables)	Dec. 31, 2022
Noninterest Income.
Schedule of Consolidated of Income as components of noninterest income	For the Years Ended December 31, 2022 2021 Payment processing fees: Payment processing income $ 21,101 $ 20,040 ACH income 843 816 Total payment processing fees 21,944 20,856 Customer related fees, service charges and other: Administrative service income 2,534 29 Gain (loss) on loans held for sale (1) 88 (295) Other 359 434 Total customer related fees, service charges and other 2,981 168 Total noninterest income $ 24,925 $ 21,024 (1) Represents a valuation adjustment on loans held for sale, not within the scope of ASC 606.

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
Income Taxes (Tables)	Dec. 31, 2022
Income Taxes
Schedule of components of income tax expense	2022 2021 2020 Current: Federal expense $ 8,795 $ 3,442 $ 4,203 State and city expense 2,821 688 1,301 Total current tax expense 11,616 4,130 5,504 Deferred: Federal (benefit) expense (807) 248 (641) State and city (benefit) expense (526) 405 (314) Total deferred tax (benefit) expense (1,333) 653 (955) Income tax expense $ 10,283 $ 4,783 $ 4,549
Schedule of reconciliation statutory federal income tax rate	2022 2021 2020 Federal tax expense at statutory rate $ 8,148 $ 4,769 $ 3,605 State and local income taxes, net of federal income tax benefit 1,948 929 974 Incentive stock options 63 69 53 Stock-based compensation excess tax benefit (317) (1,036) (85) Research and development tax credits (100) (100) (77) Other 541 152 79 Income tax expense $ 10,283 $ 4,783 $ 4,549
Schedule of deferred tax assets and deferred tax liabilities	2022 2021 Deferred tax assets: Net operating loss carry forwards $ 142 $ 213 Stock based compensation 985 938 Allowance for loan loss 3,330 2,496 Deferred loan fees, net 386 141 Unrealized loss on securities available-for-sale 5,733 339 Other 684 548 Total deferred tax assets 11,260 4,675 Deferred tax liabilities: Fixed assets (1,135) (1,272) Investment in partnership (553) (558) Total deferred tax liabilities (1,688) (1,830) Deferred tax asset, net $ 9,572 $ 2,845

Employee Benefits (Tables)

Employee Benefits (Tables)	12 Months Ended
Employee Benefits (Tables)	Dec. 31, 2022
Share-Based Payment Plans
Schedule of fair value of weighted-average assumptions of options granted	For the Years Ended December 31, 2022 2021 2020 Risk-free interest rate 3.67 % 1.43 % 0.61 % Expected term 84 months 84 months 84 months Expected stock price volatility 26.5 % 34.7 % 52.4 % Dividend yield 1.01 % 0.00 % 0.00 % Weighted average fair value $ 13.63 $ 11.99 $ 10.99
Schedule of option activity	For the Year Ended December 31, 2022 Weighted Weighted Average Average Remaining Exercise Contractual Options Price Life (Years) Outstanding at beginning of year 649,600 $ 16.66 Granted 52,500 42.30 Exercised (51,831) 16.02 Forfeited (16,285) 25.50 Expired — — Outstanding at end of year 633,984 $ 18.61 4.92 Vested or expected to vest 633,984 $ 18.61 4.92 Exercisable at end of year 522,372 $ 15.20 3.99
Schedule of information related to stock option exercises	For the Years Ended December 31, 2022 2021 2020 Intrinsic value of options exercised $ 1,312 $ 6,313 $ 943 Cash received from option exercises 333 27 401 Excess tax benefit from option exercises 273 1,433 107
Schedule of activity related to restricted stock	For the Year Ended December 31, 2022 Weighted Average Grant Date Shares Fair Value Outstanding at beginning of year 482,750 $ 24.59 Granted 88,720 42.30 Vested (54,495) 22.81 Forfeited (13,750) 24.31 Outstanding at end of year 503,225 $ 27.92

Earnings per Share (Tables)

Earnings per Share (Tables)	12 Months Ended
Earnings per Share (Tables)	Dec. 31, 2022
Earnings per Share
Schedule of earnings per share	For the Years Ended December 31, 2022 2021 2020 Basic: Net income $ 28,518 $ 17,925 $ 12,618 Weighted average shares outstanding 7,638,423 7,469,907 7,412,131 Basic earnings per share $ 3.73 $ 2.40 $ 1.70 Diluted: Net income $ 28,518 $ 17,925 $ 12,618 Weighted average shares outstanding for basic earnings per share 7,638,423 7,469,907 7,412,131 Add: Dilutive effects of share based awards 575,271 477,077 231,692 Weighted average shares and dilutive potential shares 8,213,694 7,946,984 7,643,823 Diluted earnings per share $ 3.47 $ 2.26 $ 1.65

Commitments and Contingent Li_2

Commitments and Contingent Liabilities (Tables)	12 Months Ended
Commitments and Contingent Liabilities (Tables)	Dec. 31, 2022
Commitments and Contingent Liabilities
Schedule of credit related commitments	For the Years Ended December 31, 2022 2021 Fixed Rate Variable Rate Fixed Rate Variable Rate Unused lines of credit $ 15 $ 17,223 $ 20 $ 14,003 Standby letters of credit 7,945 — 4,591 — Total credit related commitments $ 7,960 $ 17,223 $ 4,611 $ 14,003

Leases (Tables)

Leases (Tables)	12 Months Ended
Leases (Tables)	Dec. 31, 2022
Leases
Schedule of maturities of operating lease liabilities	Operating Lease Liabilities 2023 $ 712 2024 784 2025 803 2026 754 2027 — Thereafter — Total operating lease payments 3,053 Less: interest 243 Present value of operating lease liabilities $ 2,810
Schedule of lease assumptions
Schedule of lease cost	For the Years Ended December 31, 2022 2021 2020 Operating lease cost $ 560 $ 568 $ 563 Short-term lease cost 74 13 66 Total lease cost $ 634 $ 581 $ 629

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
Fair Value Measurements (Tables)	Dec. 31, 2022
Fair Value Measurements
Schedule of assets measured at fair value on a recurring basis	Fair Value Measurements Using Quoted Prices In Active Markets For Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) December 31, 2022 Assets Securities available-for-sale Mortgage-backed securities – agency $ — $ 92,945 $ — CMOs – agency — 16,324 — Total $ — $ 109,269 $ — December 31, 2021 Assets Securities available-for-sale Mortgage-backed securities – agency $ — $ 120,881 $ — CMOs – agency — 27,503 — Total $ — $ 148,384 $ —
Schedule of carrying amounts and fair values of financial instruments	Fair Value Measurement at December 31, 2022, Using: Carrying Value (Level 1) (Level 2) (Level 3) Total Financial Assets: Cash and cash equivalents $ 164,122 $ 164,122 $ — $ — $ 164,122 Securities purchased under agreements to resell, at cost 49,567 — — 49,567 49,567 Securities, held-to-maturity 78,377 — 69,346 — 69,346 Securities, restricted, at cost 2,810 N/A N/A N/A N/A Loans held for investment, net 935,072 — — 927,481 927,481 Accrued interest receivable 5,768 — 449 5,319 5,768 Financial Liabilities: Time deposits 19,558 — 19,459 — 19,459 Demand and other deposits 1,208,678 1,208,678 — — 1,208,678 Secured borrowings 46 — — 46 46 Accrued interest payable 30 — 30 — 30 Fair Value Measurement at December 31, 2021, Using: Carrying Value (Level 1) (Level 2) (Level 3) Total Financial Assets: Cash and cash equivalents $ 149,156 $ 149,156 $ — $ — $ 149,156 Securities purchased under agreements to resell, at cost 50,271 — — 50,271 50,271 Securities, restricted, at cost 2,680 N/A N/A N/A N/A Loans held for investment, net 775,441 — — 774,114 774,114 Accrued interest receivable 4,197 — 252 3,945 4,197 Financial Liabilities: Time deposits 19,312 — 19,330 — 19,330 Demand and other deposits 1,009,097 1,009,097 — — 1,009,097 Secured borrowings 48 — — 48 48

Capital (Tables)

Capital (Tables)	12 Months Ended
Capital (Tables)	Dec. 31, 2022
Capital
Schedule of minimum total risk-based, Tier 1 risk-based and Tier 1 leverage ratios	For Capital To be Well Required Adequacy Purposes Capitalized Under For Capital Including Capital Prompt Corrective Actual Adequacy Purposes Conservation Buffer Action Regulations Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2022 Total capital to risk weighted assets $ 153,230 15.44 % $ 79,377 8.00 % $ 104,182 10.50 % $ 99,221 10.00 % Tier 1 (core) capital to risk weighted assets 141,006 14.21 59,533 6.00 84,338 8.50 79,377 8.00 Tier 1 (common) capital to risk weighted assets 141,006 14.21 44,650 4.50 69,455 7.00 64,494 6.50 Tier 1 (core) capital to adjusted total assets 141,006 10.98 51,355 4.00 51,355 4.00 64,194 5.00 December 31, 2021 Total capital to risk weighted assets $ 131,137 15.89 % $ 66,039 8.00 % $ 86,677 10.50 % $ 82,549 10.00 % Tier 1 (core) capital to risk weighted assets 122,059 14.79 49,530 6.00 70,167 8.50 66,039 8.00 Tier 1 (common) capital to risk weighted assets 122,059 14.79 37,147 4.50 57,785 7.00 53,657 6.50 Tier 1 (core) capital to adjusted total assets 122,059 11.46 42,619 4.00 42,619 4.00 53,273 5.00

Parent Company Only Condensed_2

Parent Company Only Condensed Financial Information (Tables)	12 Months Ended
	Dec. 31, 2022
Parent Company Only Condensed Financial Information
Schedule of Condensed Balance Sheets	At December 31, 2022 2021 ASSETS: Cash and cash equivalents $ 10,467 $ 695 Investment in banking subsidiary 126,031 121,297 Loans held for sale — 14,100 Loans held for investment 1,967 — Equity investment without readily determinable fair value 2,410 2,410 Equity investment in variable interest entity 12,636 — Other assets 4,986 5,461 Total assets $ 158,497 $ 143,963 LIABILITIES AND STOCKHOLDERS' EQUITY: Other liabilities $ 339 $ 228 Total stockholders’ equity 158,158 143,735 Total liabilities and equity $ 158,497 $ 143,963
Schedule of Condensed Statements of Income and Comprehensive income	For the Years Ended December 31, 2022 2021 2020 Net interest (expense) income $ (111) $ 167 $ 86 Gain (loss) on loans held for sale 88 (295) — Other income 14 — — Dividends from subsidiaries 12,000 8,000 5,000 Other expense 3,369 2,575 2,138 Income before income tax and undistributed subsidiary income 8,622 5,297 2,948 Income tax benefit 895 635 544 Equity in undistributed subsidiary income 19,001 11,993 9,126 Net income $ 28,518 $ 17,925 $ 12,618 Comprehensive income $ 14,251 $ 15,667 $ 13,640
Schedule of Condensed Statements of Cash Flows	For the Years Ended December 31, 2022 2021 2020 Cash flows from operating activities: Net income $ 28,518 $ 17,925 $ 12,618 Adjustments: Stock compensation expense 2,444 1,965 1,540 (Gain) loss on loans held for sale (88) 295 — Equity in undistributed subsidiary income (19,001) (11,993) (9,126) Change in other assets 299 (737) (573) Change in other liabilities (933) (31) (120) Net cash provided by operating activities 11,239 7,424 4,339 Cash flows from investing activities: Investment in loans held for sale — (14,584) — Net change in other — (459) (1,646) Payments on loans held for sale, previously classified as held for investment 688 189 — Net cash provided by (used in) investing activities 688 (14,854) (1,646) Cash flows from financing activities: Exercise of stock options 333 27 401 Tax withholding payments for vested equity awards (339) — — Cash dividends paid to common stockholders (2,149) — — Purchase of common stock — — (567) Net cash (used in) provided by financing activities (2,155) 27 (166) Net change in cash and cash equivalents 9,772 (7,403) 2,527 Beginning cash and cash equivalents 695 8,098 5,571 Ending cash and cash equivalents $ 10,467 $ 695 $ 8,098

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive (Loss) Income (Tables)	12 Months Ended
Accumulated Other Comprehensive (Loss) Income (Tables)	Dec. 31, 2022
Accumulated Other Comprehensive (Loss) Income
Schedule of changes in accumulated other comprehensive (loss) income by component, net of tax	For the Years Ended December 31, 2022 2021 2020 Unrealized (Losses) Gains on Securities Available-for-Sale Unrealized (Losses) Gains on Available-for-Sale Securities Beginning balance $ (850) $ 1,408 $ 386 Other comprehensive (loss) income before reclassifications, net of tax (14,267) (2,258) 1,022 Amounts reclassified from accumulated other comprehensive (loss) income — — — Net current period other comprehensive (loss) income (14,267) (2,258) 1,022 Ending balance $ (15,117) $ (850) $ 1,408

Business and Summary of Signifi

Business and Summary of Significant Accounting Policies (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) contract segment	Apr. 01, 2022 USD ($)	Apr. 30, 2018 USD ($)
Accounting Policies [Line Items]
Cash and cash equivalents, maturity period	30 days
Number of securities purchased under agreements to resell contracts \| contract	1
Mortgage and commercial loans, number of days in delinquency before interest income discontinued	90 days
Consumer loans, number of days past-due until charged-off	120 days
Days of non-payment until a loan is moved to non-accrual	90 days
Depreciation Method	straight-line method
Number of reportable segments \| segment	1
Litify LLC
Accounting Policies [Line Items]
Percentage of equity securities without readily determinable fair value			4.95%
Equity investment without readily determinable fair value	$ 2,410		$ 2,410
Minimum
Accounting Policies [Line Items]
Useful life	3 years
Renewal options	3 years
Maximum
Accounting Policies [Line Items]
Maturity period of securities purchased under agreements to resell contract	30 days
Useful life	10 years
Renewal options	5 years
NFL Portfolio
Accounting Policies [Line Items]
Non-voting economic interest acquired on sale of loan portfolio, fair value		$ 13,500
Non-voting economic interest acquired on sale of loan portfolio, carrying amount	$ 12,636

Debt Securities - Summary of re

Debt Securities - Summary of reconciliation of amortized cost to fair value (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 130,120	$ 149,574
Gross Unrealized Gains		910
Gross Unrealized Losses	(20,851)	(2,100)
Fair Value	109,269	148,384
Mortgage-backed securities - agency
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	111,445	122,258
Gross Unrealized Gains		673
Gross Unrealized Losses	(18,500)	(2,050)
Fair Value	92,945	120,881
CMO's - agency
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	18,675	27,316
Gross Unrealized Gains		237
Gross Unrealized Losses	(2,351)	(50)
Fair Value	$ 16,324	$ 27,503

Debt Securities - summary of _2

Debt Securities - summary of reconciliation of amortized cost to fair value for held-to-maturity securities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 78,377
Gross Unrecognized Losses	(9,031)
Fair Value	69,346
CMO's - agency
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	78,377
Gross Unrecognized Losses	(9,031)
Fair Value	$ 69,346

Debt Securities - Summary of se

Debt Securities - Summary of securities in unrealized loss position (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Debt Securities, Available-for-sale [Line Items]
Fair Value, Less than 12 Months	$ 20,700	$ 108,651
Gross Unrealized Losses, Less than 12 Months	(1,717)	(1,863)
Fair Value, 12 Months or Longer	88,569	4,503
Gross Unrealized Losses, 12 Months or Longer	(19,134)	(237)
Fair Value, Total	109,269	113,154
Gross Unrealized Losses, Total	(20,851)	(2,100)
Mortgage-backed securities - agency
Debt Securities, Available-for-sale [Line Items]
Fair Value, Less than 12 Months	8,902	101,235
Gross Unrealized Losses, Less than 12 Months	(725)	(1,813)
Fair Value, 12 Months or Longer	84,043	4,503
Gross Unrealized Losses, 12 Months or Longer	(17,775)	(237)
Fair Value, Total	92,945	105,738
Gross Unrealized Losses, Total	(18,500)	(2,050)
CMO's - agency
Debt Securities, Available-for-sale [Line Items]
Fair Value, Less than 12 Months	11,798	7,416
Gross Unrealized Losses, Less than 12 Months	(992)	(50)
Fair Value, 12 Months or Longer	4,526
Gross Unrealized Losses, 12 Months or Longer	(1,359)
Fair Value, Total	16,324	7,416
Gross Unrealized Losses, Total	$ (2,351)	$ (50)

Debt Securities - Additional di

Debt Securities - Additional disclosures (Details) - USD ($) $ in Thousands	36 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Debt Securities, Available-for-sale [Line Items]
Sales or calls of securities	$ 0
Fair value of pledged securities	2,810	$ 2,680
Impairment charges	0
Federal Home Loan Bank Advances
Debt Securities, Available-for-sale [Line Items]
Fair value of pledged securities	150,538
Short-term debt	0
Federal Reserve Bank Advances
Debt Securities, Available-for-sale [Line Items]
Fair value of pledged securities	37,110	26,880
Securities pledged borrowed amount		26,072
Short-term debt	0
Federal Reserve Bank of New York (FRB)
Debt Securities, Available-for-sale [Line Items]
Securities pledged borrowed amount	36,147
Federal Home Loan Bank of New York (FHLB)
Debt Securities, Available-for-sale [Line Items]
Fair value of pledged securities		121,504
Securities pledged borrowed amount	$ 135,135	$ 115,364

Debt Securities - Summary of un

Debt Securities - Summary of unrealized loss position, held to maturity securities (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Schedule of Held-to-maturity Securities [Line Items]
Fair Value, Less than 12 Months	$ 69,346
Gross Unrecognized Losses, Less than 12 Months	(9,031)
Fair Value, Total	69,346
Gross Unrecognized Losses, Total	(9,031)
CMO's - agency
Schedule of Held-to-maturity Securities [Line Items]
Fair Value, Less than 12 Months	69,346
Gross Unrecognized Losses, Less than 12 Months	(9,031)
Fair Value, Total	69,346
Gross Unrecognized Losses, Total	$ (9,031)

Loans - Summary of loan composi

Loans - Summary of loan compositions by class (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Loans and Leases Receivable Disclosure [Line Items]
Total loans held for investment	$ 948,553,000	$ 784,983,000
Deferred loan fees and unearned premiums, net	(1,258,000)	(466,000)
Allowance for loan losses	(12,223,000)	(9,076,000)	$ (11,402,000)	$ (6,989,000)
Loans held for investment, net	935,072,000	775,441,000
SBA PPP loans
Loans and Leases Receivable Disclosure [Line Items]
Total loans held for investment		4,249,000
Real Estate Loans Segment
Loans and Leases Receivable Disclosure [Line Items]
Total loans held for investment	379,891,000	344,194,000
Real Estate Loans Segment \| Multifamily
Loans and Leases Receivable Disclosure [Line Items]
Total loans held for investment	262,489,000	254,852,000
Allowance for loan losses	(2,017,000)	(1,789,000)	(1,278,000)	(1,048,000)
Real Estate Loans Segment \| Commercial real estate
Loans and Leases Receivable Disclosure [Line Items]
Total loans held for investment	91,837,000	48,589,000
Allowance for loan losses	(1,022,000)	(552,000)	(597,000)	(560,000)
Real Estate Loans Segment \| 1-4 family
Loans and Leases Receivable Disclosure [Line Items]
Total loans held for investment	25,565,000	40,753,000
Allowance for loan losses	(192,000)	(285,000)	(342,000)	(344,000)
Real Estate Loans Segment \| Construction
Loans and Leases Receivable Disclosure [Line Items]
Allowance for loan losses				(161,000)
Commercial Loans Segment
Loans and Leases Receivable Disclosure [Line Items]
Total loans held for investment	552,082,000	432,108,000
Allowance for loan losses	(8,645,000)	(6,319,000)	(5,003,000)	(4,048,000)
Commercial Loans Segment \| SBA PPP loans
Loans and Leases Receivable Disclosure [Line Items]
Total loans held for investment	0
Consumer Loans Segment
Loans and Leases Receivable Disclosure [Line Items]
Total loans held for investment	16,580,000	8,681,000
Allowance for loan losses	$ (347,000)	$ (131,000)	$ (4,182,000)	$ (828,000)

Loans - Summary of activity in

Loans - Summary of activity in allowance for loan losses by class (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Allowance for loan losses:
Beginning balance	$ 9,076	$ 11,402	$ 6,989
Provision (credit) for loan losses	3,490	6,955	6,250
Recoveries	49
Loans charged-off	(392)	(9,281)	(1,837)
Total ending allowance balance	12,223	9,076	11,402
Real Estate Loans Segment \| Multifamily
Allowance for loan losses:
Beginning balance	1,789	1,278	1,048
Provision (credit) for loan losses	389	511	230
Recoveries	17
Loans charged-off	(178)
Total ending allowance balance	2,017	1,789	1,278
Real Estate Loans Segment \| Commercial real estate
Allowance for loan losses:
Beginning balance	552	597	560
Provision (credit) for loan losses	470	(45)	37
Total ending allowance balance	1,022	552	597
Real Estate Loans Segment \| 1-4 family
Allowance for loan losses:
Beginning balance	285	342	344
Provision (credit) for loan losses	(93)	(57)	(2)
Total ending allowance balance	192	285	342
Real Estate Loans Segment \| Construction
Allowance for loan losses:
Beginning balance			161
Provision (credit) for loan losses			(161)
Commercial Loans Segment
Allowance for loan losses:
Beginning balance	6,319	5,003	4,048
Provision (credit) for loan losses	2,358	1,427	957
Recoveries	32
Loans charged-off	(64)	(111)	(2)
Total ending allowance balance	8,645	6,319	5,003
Consumer Loans Segment
Allowance for loan losses:
Beginning balance	131	4,182	828
Provision (credit) for loan losses	366	5,119	5,189
Loans charged-off	(150)	(9,170)	(1,835)
Total ending allowance balance	$ 347	$ 131	$ 4,182

Loans - Summary of balance in a

Loans - Summary of balance in allowance for loan losses and recorded investment in loans by class and based on impairment method (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$ 0	$ 0
Collectively evaluated for impairment	12,223	9,076
Total ending allowance balance	12,223	9,076	$ 11,402	$ 6,989
Loans:
Loans individually evaluated for impairment	0	0
Loans collectively evaluated for impairment	948,553	784,983
Total ending loans balance	948,553	784,983
Real Estate Loans Segment
Loans:
Total ending loans balance	379,891	344,194
Real Estate Loans Segment \| Multifamily
Ending allowance balance attributable to loans:
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	2,017	1,789
Total ending allowance balance	2,017	1,789	1,278	1,048
Loans:
Loans individually evaluated for impairment	0	0
Loans collectively evaluated for impairment	262,489	254,852
Total ending loans balance	262,489	254,852
Real Estate Loans Segment \| Commercial real estate
Ending allowance balance attributable to loans:
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	1,022	552
Total ending allowance balance	1,022	552	597	560
Loans:
Loans individually evaluated for impairment	0	0
Loans collectively evaluated for impairment	91,837	48,589
Total ending loans balance	91,837	48,589
Real Estate Loans Segment \| 1-4 family
Ending allowance balance attributable to loans:
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	192	285
Total ending allowance balance	192	285	342	344
Loans:
Loans individually evaluated for impairment	0	0
Loans collectively evaluated for impairment	25,565	40,753
Total ending loans balance	25,565	40,753
Real Estate Loans Segment \| Construction
Ending allowance balance attributable to loans:
Individually evaluated for impairment	0	0
Total ending allowance balance				161
Loans:
Loans individually evaluated for impairment	0	0
Commercial Loans Segment
Ending allowance balance attributable to loans:
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	8,645	6,319
Total ending allowance balance	8,645	6,319	5,003	4,048
Loans:
Loans individually evaluated for impairment	0	0
Loans collectively evaluated for impairment	552,082	432,108
Total ending loans balance	552,082	432,108
Consumer Loans Segment
Ending allowance balance attributable to loans:
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	347	131
Total ending allowance balance	347	131	$ 4,182	$ 828
Loans:
Loans individually evaluated for impairment	0	0
Loans collectively evaluated for impairment	16,580	8,681
Total ending loans balance	$ 16,580	$ 8,681

Loans - Summary of impaired loa

Loans - Summary of impaired loans by segment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	$ 1,523	$ 1,691	$ 1,381
Real Estate Loans Segment \| Multifamily
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	158	111
Commercial Loans Segment
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	1,363
Consumer Loans Segment
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	$ 2	$ 1,580	$ 1,381

Loans - Summary of loans by pas

Loans - Summary of loans by past due status (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual Loans	$ 4	$ 6
Total Past Due & Nonaccrual Loans	48	1,071
Loans Not Past Due	948,505	783,912
Total loans held for investment	948,553	784,983
30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due & Nonaccrual Loans	36	1,055
60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due & Nonaccrual Loans	8	10
Real Estate Loans Segment
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans held for investment	379,891	344,194
Real Estate Loans Segment \| Multifamily
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due & Nonaccrual Loans		1,034
Loans Not Past Due	262,489	253,818
Total loans held for investment	262,489	254,852
Real Estate Loans Segment \| Multifamily \| 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due & Nonaccrual Loans		1,034
Real Estate Loans Segment \| Commercial real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans Not Past Due	91,837	48,589
Total loans held for investment	91,837	48,589
Real Estate Loans Segment \| 1-4 family
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans Not Past Due	25,565	40,753
Total loans held for investment	25,565	40,753
Commercial Loans Segment
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans Not Past Due	552,082	432,108
Total loans held for investment	552,082	432,108
Consumer Loans Segment
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual Loans	4	6
Total Past Due & Nonaccrual Loans	48	37
Loans Not Past Due	16,532	8,644
Total loans held for investment	16,580	8,681
Consumer Loans Segment \| 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due & Nonaccrual Loans	36	21
Consumer Loans Segment \| 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due & Nonaccrual Loans	$ 8	$ 10

Loans - Summary of loans by cre

Loans - Summary of loans by credit quality indicator based on internally assigned credit grade (Details) $ in Thousands	24 Months Ended	36 Months Ended
	Dec. 31, 2022 USD ($) item	Dec. 31, 2022 USD ($) item	Dec. 31, 2021 USD ($)
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	$ 948,553	$ 948,553	$ 784,983
Number of loans identified as troubled debt restructuring \| item	0
Number of loans modified \| item		0
Maximum borrowing capacity	$ 67,500	$ 67,500
Federal Home Loan Bank Advances
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable , Past Due	20,565	20,565	33,861
Federal Reserve Bank of New York (FRB) \| Federal Reserve Bank Advances
Financing Receivable, Recorded Investment [Line Items]
Maximum borrowing capacity	14,245	14,245	26,001
Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	934,101	934,101	755,869
Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	13,731	13,731	24,810
Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	721	721	4,304
Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	0	0	0
Real Estate Loans Segment
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	379,891	379,891	344,194
Real Estate Loans Segment \| Multifamily
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	262,489	262,489	254,852
Real Estate Loans Segment \| Multifamily \| Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	258,413	258,413	254,131
Real Estate Loans Segment \| Multifamily \| Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	3,355	3,355	0
Real Estate Loans Segment \| Multifamily \| Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	721	721	721
Real Estate Loans Segment \| Multifamily \| Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	0	0	0
Real Estate Loans Segment \| Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	91,837	91,837	48,589
Real Estate Loans Segment \| Commercial real estate \| Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	88,019	88,019	44,771
Real Estate Loans Segment \| Commercial real estate \| Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	3,818	3,818	3,818
Real Estate Loans Segment \| Commercial real estate \| Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	0	0	0
Real Estate Loans Segment \| Commercial real estate \| Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	0	0	0
Real Estate Loans Segment \| 1-4 family
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	25,565	25,565	40,753
Real Estate Loans Segment \| 1-4 family \| Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	25,565	25,565	37,738
Real Estate Loans Segment \| 1-4 family \| Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	0	0	3,015
Real Estate Loans Segment \| 1-4 family \| Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	0	0	0
Real Estate Loans Segment \| 1-4 family \| Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	0	0	0
Real Estate Loans Segment \| Construction \| Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	0	0	0
Real Estate Loans Segment \| Construction \| Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	0	0	0
Real Estate Loans Segment \| Construction \| Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	0	0	0
Commercial Loans Segment
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	552,082	552,082	432,108
Commercial Loans Segment \| Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	547,412	547,412	410,548
Commercial Loans Segment \| Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	4,670	4,670	17,977
Commercial Loans Segment \| Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	0	0	3,583
Commercial Loans Segment \| Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	0	0	0
Consumer Loans Segment
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	16,580	16,580	8,681
Consumer Loans Segment \| Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	14,692	14,692	8,681
Consumer Loans Segment \| Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	1,888	1,888	0
Consumer Loans Segment \| Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	0	0	0
Consumer Loans Segment \| Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total loans held for investment	$ 0	$ 0	$ 0

Loans - Summary of Related Part

Loans - Summary of Related Party Loans (Details) - Principal officers, directors and their affiliates $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)
Loans and Leases Receivable, Related Parties [Roll Forward]
Beginning balance	$ 5,583
Repayments	(1,553)
Ending balance	$ 4,030

Premises and Equipment (Details

Premises and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 7,441	$ 7,368
Less: accumulated depreciation and amortization	4,737	4,034
Total premises and equipment, net	2,704	3,334
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	2,800	2,800
Furniture, fixtures and equipment
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	4,633	3,912
Fixed assets in progress
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 8	$ 656

Premises and Equipment - Narrat

Premises and Equipment - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Premises and Equipment
Depreciation and amortization expense	$ 703	$ 687	$ 568

Deposits (Details)

Deposits (Details) - USD ($) $ in Thousands	12 Months Ended
Deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Deposits	$ 1,228,236	$ 1,028,409
Core deposits	1,208,678
Time deposits	19,558	19,312
Time Deposits $250 Or More	554	7,616
Principal officers, directors and their affiliates
Deposits from related Party	$ 11,326	$ 9,001

Deposits - Contractual maturiti

Deposits - Contractual maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Deposits.
2023	$ 18,734
2024	824
Total	$ 19,558	$ 19,312

Borrowings (Details)

Borrowings (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Borrowings
Secured borrowing	$ 46	$ 48
Maximum borrowing capacity	67,500
Line of credit	0
Federal Home Loan Bank of New York (FHLB)
Borrowings
Secured borrowing		141,365
Federal Home Loan Bank Advances
Borrowings
Line of credit, maximum borrowing capacity	149,380
Federal Reserve Bank Advances
Borrowings
Line of credit, remaining borrowing capacity	$ 36,147	$ 26,072

Noninterest Income (Details)

Noninterest Income (Details) - USD ($) $ in Thousands	12 Months Ended
Noninterest Income (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Noninterest income
Total non-interest income	$ 24,925	$ 21,024	$ 14,647
Payment processing fees
Noninterest income
Total non-interest income	21,944	20,856
Payment processing income
Noninterest income
Total non-interest income	21,101	20,040
ACH income
Noninterest income
Total non-interest income	843	816
Client related fees, service charges and other
Noninterest income
Total non-interest income	2,981	168
Administrative service income
Noninterest income
Total non-interest income	2,534	29
Gain (loss) on loans held for sale (1)
Noninterest income
Total non-interest income	88	(295)
Other
Noninterest income
Total non-interest income	$ 359	$ 434

Income Taxes (Details)

Income Taxes (Details) $ in Thousands	12 Months Ended	36 Months Ended
Income Taxes (Details) $ in Thousands	Dec. 31, 2022 USD ($)	Dec. 31, 2022 USD ($)
Income Tax Disclosure [Line Items]
Statutory federal income tax rate	21%
Unrecognized tax benefits penalty and interest expense		$ 0
New York state
Income Tax Disclosure [Line Items]
Net operating loss carryforwards	$ 1,790	1,790
New York city
Income Tax Disclosure [Line Items]
Net operating loss carryforwards	$ 135	$ 135

Income Taxes - Components of in

Income Taxes - Components of income tax expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Current
Federal expense	$ 8,795	$ 3,442	$ 4,203
State and city expense	2,821	688	1,301
Total current tax expense	11,616	4,130	5,504
Deferred
Federal expense (benefit)	(807)	248	(641)
State and city expense (benefit)	(526)	405	(314)
Total deferred tax expense (benefit)	(1,333)	653	(955)
Income tax expense	$ 10,283	$ 4,783	$ 4,549

Income Taxes - Effective tax ra

Income Taxes - Effective tax rate (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Taxes
Federal tax expense at statutory rate	$ 8,148	$ 4,769	$ 3,605
State and local income taxes, net of federal income tax benefit	1,948	929	974
Incentive stock options	63	69	53
Stock-based compensation excess tax benefit	(317)	(1,036)	(85)
Research and development tax credits	(100)	(100)	(77)
Other	541	152	79
Income tax expense	$ 10,283	$ 4,783	$ 4,549

Income Taxes - Deferred tax ass

Income Taxes - Deferred tax assets and deferred tax liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Deferred tax assets:
Net operating loss carry forwards	$ 142	$ 213
Stock based compensation	985	938
Allowance for loan loss	3,330	2,496
Deferred loan fees, net	386	141
Unrealized loss on securities available-for-sale	5,733	339
Other	684	548
Total deferred tax assets	11,260	4,675
Deferred tax liabilities:
Fixed assets	(1,135)	(1,272)
Investment in partnership	(553)	(558)
Total deferred tax liabilities	(1,688)	(1,830)
Deferred tax asset, net	$ 9,572	$ 2,845

Employee Benefits (Details)

Employee Benefits (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended			36 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of matched funds for employee contributions				100%
Percentage of employer matching contribution				2%
Employee contributions expenses	$ 218	$ 189	$ 150
Weighted average fair value of options granted	$ 13.63	$ 11.99	$ 10.99
Stock options expense	$ 463	$ 483	$ 492
Unrecognized compensation cost related to non-vested options	$ 1,361			$ 1,361
Recognition period of nonvested stock options	2 years 4 months 2 days
Intrinsic value of outstanding options	$ 15,628			15,628
Intrinsic value of exercisable options	14,659			14,659
Intrinsic value for options exercised	1,312	6,313	943
Cash received from option exercises	333	27	401
Excess tax benefit from option exercises	$ 273	1,433	107
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock options issued	52,500
Contractual term of awards	10 years
Stock Options \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Stock Options \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	5 years
Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted	88,720
Vesting period	6 years
Stock options expense	$ 1,981	$ 1,482	$ 1,048
Unrecognized compensation cost related to non-vested options	$ 10,000			$ 10,000
Recognition period of nonvested stock options	4 years 7 months 13 days
2007 Stock Option Plan ("the 2007 Plan")
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of maximum shares of common stock to be issued	270,000			270,000
Number of stock options issued	269,500
2011 Stock Compensation Plan ("the 2011 Plan")
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of maximum shares of common stock to be issued	754,607			754,607
2017 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of maximum shares of common stock to be issued	300,000			300,000
2019 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of maximum shares of common stock to be issued	300,000			300,000
Number of shares available for issuance under stock compensation plan	35			35
2021 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of maximum shares of common stock to be issued	400,000			400,000
2021 Equity Incentive Plan \| Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for issuance under stock compensation plan	164,530			164,530
2021 Equity Incentive Plan \| Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for issuance under stock compensation plan	127,280			127,280

Employee Benefits - Summary of

Employee Benefits - Summary of options activity (Details)	12 Months Ended
Employee Benefits - Summary of options activity (Details)	Dec. 31, 2022 $ / shares shares
Options
Forfeited	(13,750)
Stock Options
Options
Outstanding at beginning of year	649,600
Granted	52,500
Exercised	(51,831)
Forfeited	(16,285)
Outstanding at period end	633,984
Vested or expected to vest	633,984
Exercisable at period end	522,372
Weighted Average Exercise Price
Outstanding at beginning of year \| $ / shares	$ 16.66
Granted \| $ / shares	42.30
Exercised \| $ / shares	16.02
Forfeited \| $ / shares	25.50
Outstanding at period end \| $ / shares	18.61
Vested or expected to vest \| $ / shares	18.61
Exercisable at period end \| $ / shares	$ 15.20
Weighted Average Remaining Contractual Life (Years), outstanding at period end	4 years 11 months 1 day
Weighted Average Remaining Contractual Life (Years), vested or expected to vest	4 years 11 months 1 day
Weighted Average Remaining Contractual Life (Years), exercisable at period end	3 years 11 months 26 days

Employee Benefits - Summary o_2

Employee Benefits - Summary of restricted stock activity (Details) - Restricted stock	12 Months Ended
	Dec. 31, 2022 $ / shares shares
Shares
Outstanding at beginning of year \| shares	482,750
Granted \| shares	88,720
Vested \| shares	(54,495)
Forfeited \| shares	(13,750)
Outstanding at period end \| shares	503,225
Weighted Average Grant Date Fair Value
Outstanding at beginning of year \| $ / shares	$ 24.59
Granted \| $ / shares	42.30
Vested \| $ / shares	22.81
Forfeited \| $ / shares	24.31
Outstanding at period end \| $ / shares	$ 27.92

Employee Benefits - Weighted-av

Employee Benefits - Weighted-average assumptions (Details) - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-Based Payment Plans
Risk-Free Interest Rate	3.67%	1.43%	0.61%
Expected Term	84 months	84 months	84 months
Expected Stock Price Volatility	26.50%	34.70%	52.40%
Dividend Yield	1.01%	0%	0%
Weighted average fair value of options granted	$ 13.63	$ 11.99	$ 10.99

Earnings per Common Share (Deta

Earnings per Common Share (Details) - shares	12 Months Ended
Earnings per Common Share (Details) - shares	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Earnings per Share
Stock options and restricted shares not considered in computing diluted earnings per share because they were anti-dilutive	201,920	100,737	394,266

Earnings per Share - Summary of

Earnings per Share - Summary of earnings per share computation (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Basic
Net income	$ 28,518	$ 17,925	$ 12,618
Net income allocated to common shareholders	$ 28,518	$ 17,925	$ 12,618
Weighted average shares outstanding for basic earnings per share	7,638,423	7,469,907	7,412,131
Basic earnings per share (in dollars per share)	$ 3.73	$ 2.40	$ 1.70
Diluted
Net income	$ 28,518	$ 17,925	$ 12,618
Net income	$ 28,518	$ 17,925	$ 12,618
Weighted average shares outstanding for basic earnings per share	7,638,423	7,469,907	7,412,131
Add: Dilutive effects of share based awards	575,271	477,077	231,692
Average shares and dilutive potential shares	8,213,694	7,946,984	7,643,823
Diluted earnings per share (in dollars per share)	$ 3.47	$ 2.26	$ 1.65
Stock options and restricted shares not considered in computing diluted earnings per share because they were anti-dilutive	201,920	100,737	394,266

Commitments and Contingent Li_3

Commitments and Contingent Liabilities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Minimum
Loss Contingencies [Line Items]
Interest rate	8%
Period	1 month
Maximum
Loss Contingencies [Line Items]
Interest rate	18%
Period	4 years
Fixed rate commitments
Loss Contingencies [Line Items]
Extending credit facilities to comparable customers.	$ 7,960	$ 4,611
Fixed Rate - Unused lines of credit
Loss Contingencies [Line Items]
Extending credit facilities to comparable customers.	15	20
Fixed Rate - Standby letters of credit
Loss Contingencies [Line Items]
Extending credit facilities to comparable customers.	7,945	4,591
Variable rate commitments
Loss Contingencies [Line Items]
Extending credit facilities to comparable customers.	17,223	14,003
Variable Rate - Unused lines of credit
Loss Contingencies [Line Items]
Extending credit facilities to comparable customers.	$ 17,223	$ 14,003

Leases (Details)

Leases (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Leases
ROU lease assets	$ 2,291	$ 2,374
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Other Assets	Other Assets
Operating lease liability	$ 2,810	$ 2,988
Operating Lease, Liability, Statement of Financial Position [Extensible List]	Accrued Liabilities and Other Liabilities	Accrued Liabilities and Other Liabilities

Leases - Maturities of operatin

Leases - Maturities of operating lease (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Maturities of operating lease liabilities
2023	$ 712
2024	784
2025	803
2026	754
Total lease payments	3,053
Less: interest	243
Present value of operating lease liabilities	$ 2,810	$ 2,988

Leases - Lease Cost (Details)

Leases - Lease Cost (Details) - USD ($) $ in Thousands	12 Months Ended
Leases - Lease Cost (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Lease cost
Weighted-average remaining lease term	3 years 11 months 1 day	4 years 10 months 17 days
Weighted-average discount rate	3.28%	3.06%
Operating lease cost	$ 560	$ 568	$ 563
Short-term Lease, Cost	74	13	66
Total lease cost	$ 634	$ 581	$ 629

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Apr. 01, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount rate (as a percent)	8%
NFL Portfolio
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Non-voting economic interest acquired on sale of loan portfolio, fair value		$ 13,500
(Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for sale	$ 14,100

Fair Value Measurements - Summa

Fair Value Measurements - Summary of assets and liabilities measured at fair value on recurring basis (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Available-for-sale securities
Securities available-for-sale, at fair value	$ 109,269	$ 148,384
Held-to-Maturity Debt Securities
Securities held to maturity, fair value	69,346
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount	0
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount	0
Mortgage-backed securities - agency
Available-for-sale securities
Securities available-for-sale, at fair value	92,945	120,881
CMO's - agency
Available-for-sale securities
Securities available-for-sale, at fair value	16,324	27,503
Held-to-Maturity Debt Securities
Securities held to maturity, fair value	69,346
Recurring \| (Level 1)
Available-for-sale securities
Securities available-for-sale, at fair value	0	0
Recurring \| (Level 1) \| Mortgage-backed securities - agency
Available-for-sale securities
Securities available-for-sale, at fair value	0	0
Recurring \| (Level 1) \| CMO's - agency
Available-for-sale securities
Securities available-for-sale, at fair value	0	0
Recurring \| (Level 2)
Available-for-sale securities
Securities available-for-sale, at fair value	109,269	148,384
Recurring \| (Level 2) \| Mortgage-backed securities - agency
Available-for-sale securities
Securities available-for-sale, at fair value	92,945	120,881
Recurring \| (Level 2) \| CMO's - agency
Available-for-sale securities
Securities available-for-sale, at fair value	16,324	27,503
Recurring \| (Level 3)
Available-for-sale securities
Securities available-for-sale, at fair value	0	0
Recurring \| (Level 3) \| Mortgage-backed securities - agency
Available-for-sale securities
Securities available-for-sale, at fair value	0	0
Recurring \| (Level 3) \| CMO's - agency
Available-for-sale securities
Securities available-for-sale, at fair value	$ 0	$ 0

Fair Value Measurements - Sum_2

Fair Value Measurements - Summary of estimated fair values of financial instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Financial Assets:
Securities purchased under agreements to resell, at cost	$ 49,567	$ 50,271
Securities available for sale	109,269	148,384
Securities, held to maturity	78,377
Securities, restricted, at cost	2,810	2,680
Loans held for investment, net	935,072	775,441
Accrued interest receivable	5,768	4,197
Financial Liabilities:
Time deposits	19,558	19,312
(Level 3)
Financial Assets:
Other assets - loans held for sale	14,100
Carrying Value
Financial Assets:
Cash and cash equivalents	164,122	149,156
Securities purchased under agreements to resell, at cost	49,567	50,271
Securities, held to maturity	78,377
Securities, restricted, at cost	2,810	2,680
Loans held for investment, net	935,072	775,441
Accrued interest receivable	5,768	4,197
Financial Liabilities:
Time deposits	19,558	19,312
Demand and other deposits	1,208,678	1,009,097
Secured borrowings	46	48
Accrued interest payable	30
Fair Value
Financial Assets:
Cash and cash equivalents	164,122	149,156
Securities purchased under agreements to resell, at cost	49,567	50,271
Securities, held to maturity	69,346
Loans held for investment, net	927,481	774,114
Accrued interest receivable	5,768	4,197
Financial Liabilities:
Time deposits	19,459	19,330
Demand and other deposits	1,208,678	1,009,097
Secured borrowings	46	48
Accrued interest payable	30
Fair Value \| (Level 1)
Financial Assets:
Cash and cash equivalents	164,122	149,156
Loans held for investment, net	0	0
Accrued interest receivable	0	0
Financial Liabilities:
Time deposits	0	0
Demand and other deposits	1,208,678	1,009,097
Secured borrowings	0	0
Accrued interest payable	0
Fair Value \| (Level 2)
Financial Assets:
Cash and cash equivalents	0	0
Securities, held to maturity	69,346
Loans held for investment, net	0	0
Accrued interest receivable	449	252
Financial Liabilities:
Time deposits	19,459	19,330
Demand and other deposits	0	0
Secured borrowings	0	0
Accrued interest payable	30
Fair Value \| (Level 3)
Financial Assets:
Cash and cash equivalents	0	0
Securities purchased under agreements to resell, at cost	49,567	50,271
Loans held for investment, net	927,481	774,114
Accrued interest receivable	5,319	3,945
Financial Liabilities:
Time deposits	0	0
Demand and other deposits	0	0
Secured borrowings	46	$ 48
Accrued interest payable	$ 0

Capital (Details)

Capital (Details) $ in Thousands	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Capital
Total capital to risk weighted assets, Actual, Amount	$ 153,230	$ 131,137
Total capital to risk weighted assets, Actual, Ratio	0.1544	0.1589
Total capital to risk weighted assets, Required For Capital Adequacy Purposes, Amount	$ 79,377	$ 66,039
Total capital to risk weighted assets, Required For Capital Adequacy Purposes, Ratio	0.08	0.0800
Total capital to risk weighted assets, For Capital Adequacy Purposes Including Capital Conservation Buffer, Amount	$ 104,182	$ 86,677
Total capital to risk weighted assets, For Capital Adequacy Purposes Including Capital Conservation Buffer, Ratio	10.50%	10.50%
Total capital to risk weighted assets, To be Well Capitalized Under Prompt Corrective Action Regulations, Amount	$ 99,221	$ 82,549
Total capital to risk weighted assets, To be Well Capitalized Under Prompt Corrective Action Regulations, Ratio	0.1000	0.1000
Tier 1 (core) capital to risk weighted assets, Actual, Amount	$ 141,006	$ 122,059
Tier 1 (core) capital to risk weighted assets, Actual, Ratio	0.1421	0.1479
Tier 1 (core) capital to risk weighted assets Required, For Capital Adequacy Purposes, Amount	$ 59,533	$ 49,530
Tier 1 (core) capital to risk weighted assets, Required For Capital Adequacy Purposes, Ratio	0.06	0.0600
Tier 1 (core) capital to risk weighted assets, To be Well Capitalized Under Prompt Corrective Action Regulations, Amount	$ 84,338	$ 70,167
Tier 1 (core) capital to risk weighted assets, To be Well Capitalized Under Prompt Corrective Action Regulations, Ratio	8.50%	8.50%
Tier 1 (core) capital to risk weighted assets, For Capital Adequacy Purposes Including Capital Conservation Buffer, Amount	$ 79,377	$ 66,039
Tier 1 (core) capital to risk weighted assets, For Capital Adequacy Purposes Including Capital Conservation Buffer, Ratio	0.0800	0.0800
Tier 1 (common) capital to risk weighted assets, Actual, Amount	$ 141,006	$ 122,059
Tier 1 (common) capital to risk weighted assets, Actual, Ratio	0.1421	0.1479
Tier 1 (common) capital to risk weighted assets, Required For Capital Adequacy Purposes, Amount	$ 44,650	$ 37,147
Tier 1 (common) capital to risk weighted assets, Required For Capital Adequacy Purposes, Ratio	4.50%	4.50%
Tier 1 (common) capital to risk weighted assets, For Capital Adequacy Purposes Including Capital Conservation Buffer, Amount	$ 69,455	$ 57,785
Tier 1 (common) capital to risk weighted assets, For Capital Adequacy Purposes Including Capital Conservation Buffer, Ratio	7%	7%
Tier 1 (common) capital to risk weighted assets, To be Well Capitalized Under Prompt Corrective Action Regulations, Amount	$ 64,494	$ 53,657
Tier 1 (common) capital to risk weighted assets, To be Well Capitalized Under Prompt Corrective Action Regulations, Ratio	6.50%	6.50%
Tier 1 (core) capital to adjusted total assets, Actual, Amount	$ 141,006	$ 122,059
Tier 1 (core) capital to adjusted total assets, Actual, Ratio	0.1098	0.1146
Tier 1 (core) capital to adjusted total assets, Required For Capital Adequacy Purposes, Amount	$ 51,355	$ 42,619
Tier 1 (core) capital to adjusted total assets, Required For Capital Adequacy Purposes, Ratio	0.0400	0.0400
Tier 1 (core) capital to adjusted total assets, For Capital Adequacy Purposes Including Capital Conservation Buffer, Amount	$ 51,355	$ 42,619
Tier 1 (core) capital to adjusted total assets, For Capital Adequacy Purposes Including Capital Conservation Buffer, Ratio	4%	4%
Tier 1 (core) capital to adjusted total assets, To be Well Capitalized Under Prompt Corrective Action Regulations, Amount	$ 64,194	$ 53,273
Tier 1 (core) capital to adjusted total assets, To be Well Capitalized Under Prompt Corrective Action Regulations, Ratio	0.0500	0.0500

Parent Company Only Condensed_3

Parent Company Only Condensed Financial Information - Condensed financial information (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
ASSETS
Cash and cash equivalents	$ 164,122	$ 149,156
Loans held for sale	947,295	784,517
Loans held for investment	947,295	784,517
Other assets	38,378	42,462
Total assets	1,395,639	1,178,770
LIABILITIES
Total liabilities	1,237,481	1,035,035
STOCKHOLDERS' EQUITY
Preferred stock
Common stock	82	81
Additional paid-in capital	96,387	93,611
Retained earnings	77,712	51,460
Other comprehensive (loss) income	(15,117)	(850)	$ 1,408	$ 386
Treasury stock at cost	(906)	(567)
Total stockholders' equity	158,158	143,735	$ 126,076	$ 111,062
Total liabilities and stockholders' equity	1,395,639	1,178,770
Esquire Financial Holdings Inc
ASSETS
Cash and cash equivalents	10,467	695
Investment in banking subsidiary	126,031	121,297
Loans held for sale	1,967	14,100
Loans held for investment	1,967	14,100
Equity investment without readily determinable fair value	2,410	2,410
Equity investment in variable interest entity	12,636
Other assets	4,986	5,461
Total assets	158,497	143,963
LIABILITIES
Total liabilities	339	228
STOCKHOLDERS' EQUITY
Total stockholders' equity	158,158	143,735
Total liabilities and stockholders' equity	$ 158,497	$ 143,963

Parent Company Only Condensed_4

Parent Company Only Condensed Financial Information - Condensed Statements of Income and Comprehensive Income (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Condensed Income Statements, Captions [Line Items]
Net interest (expense) income	$ 59,346	$ 43,703	$ 37,440
Other expense	1,647	828	1,190
Income tax benefit	10,283	4,783	4,549
Net income	28,518	17,925	12,618
Total comprehensive income	14,251	15,667	13,640
Esquire Financial Holdings Inc
Condensed Income Statements, Captions [Line Items]
Net interest (expense) income	(111)	167	86
Gain (loss) on loans held for sale	88	(295)
Other income	14
Dividends from subsidiaries	12,000	8,000	5,000
Other expense	3,369	2,575	2,138
Loss before income tax and undistributed subsidiary income	8,622	5,297	2,948
Income tax benefit	895	635	544
Equity in undistributed subsidiary income	19,001	11,993	9,126
Net income	28,518	17,925	12,618
Total comprehensive income	$ 14,251	$ 15,667	$ 13,640

Parent Company Only Condensed_5

Parent Company Only Condensed Financial Information - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash flows from operating activities:
Net income	$ 28,518	$ 17,925	$ 12,618
Adjustments:
Stock compensation expense	2,444	1,965	1,540
(Gain) loss on loans held for sale	(88)	295
Change in other assets	3,184	322	(4,611)
Net cash provided by (used in) operating activities	38,797	30,079	15,590
Cash flows from investing activities
Payments on loans held for sale, previously classified as held for investment loans	688	189
Net cash used in investing activities	(221,501)	(170,489)	(135,442)
Cash flows from financing activities:
Exercise of stock options, net of repurchases	333	27	401
Tax withholding payments for vested equity awards	(339)
Cash dividends paid to common stockholders	(2,266)
Purchase of common stock			(567)
Net cash provided by financing activities	197,670	224,381	123,231
Net change in cash and cash equivalents	14,966	83,971	3,379
Esquire Financial Holdings Inc
Cash flows from operating activities:
Net income	28,518	17,925	12,618
Adjustments:
Stock compensation expense	2,444	1,965	1,540
(Gain) loss on loans held for sale	(88)	295
Equity in undistributed subsidiary income	(19,001)	(11,993)	(9,126)
Change in other assets	299	(737)	(573)
Change in other liabilities	(933)	(31)	(120)
Net cash provided by (used in) operating activities	11,239	7,424	4,339
Cash flows from investing activities
Investment in loans held for sale		(14,584)
Net change in other		(459)	(1,646)
Payments on loans held for sale, previously classified as held for investment loans	688	189
Net cash used in investing activities	688	(14,854)	(1,646)
Cash flows from financing activities:
Exercise of stock options, net of repurchases	333	27	401
Tax withholding payments for vested equity awards	(339)
Cash dividends paid to common stockholders	(2,149)
Purchase of common stock			(567)
Net cash provided by financing activities	(2,155)	27	(166)
Net change in cash and cash equivalents	9,772	(7,403)	2,527
Cash and cash equivalents at beginning of the period	695	8,098	5,571
Cash and cash equivalents at end of the period	$ 10,467	$ 695	$ 8,098

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive (Loss) Income - Summary of changes in accumulated other comprehensive income (loss) by component, net of tax (Details) - USD ($) $ in Thousands	12 Months Ended			36 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2022
Unrealized (Losses) Gains on Available-for-Sale Securities
Beginning balance	$ (850)	$ 1,408	$ 386	$ 386
Other comprehensive (loss) income before reclassifications, net of tax	(14,267)	(2,258)	1,022
Net current period other comprehensive (loss) income	(14,267)	(2,258)	1,022
Ending balance	$ (15,117)	$ (850)	$ 1,408	(15,117)
Reclassifications				$ 0

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Event - Litify LLC $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Subsequent Event [Line Items]
Percentage of equity partnership interests exchanged for cash	63%
Proceeds from Equity Method Investment, Distribution	$ 5,400
Gain (Loss) on Investments	$ 4,000