Esquire Financial Holdings and Signature Bancorporation said the final exchange ratio for their planned merger will be 2.671 shares of Esquire stock for each Signature share, up from the 2.630 ratio used in the original merger math.
The change was driven by Signature’s sale of all four “schedule A” loans, which together totaled about $70 million. Those sales produced a recovery rate of approximately 62.0%, compared with the 50% recovery rate assumed in the joint proxy statement and merger analysis.
That higher recovery pushed the exchange ratio above the assumed level and will result in about 3.447 million Esquire shares being issued to Signature shareholders, versus 3.393 million shares under the earlier assumption. The difference is roughly 54,000 shares, or 1.6% more than originally modeled.
Under the merger agreement, the exchange ratio could range from 2.50 to 2.80 depending on loan-sale recoveries. With the final ratio now set at 2.671, the companies said they still expect the deal to close in the third quarter of 2026. As a result of these announcements, the company's shares have moved -0.48% on the market, and are now trading at a price of $114.93. Check out the company's full 8-K submission here.
