Esquire Financial has agreed to acquire Signature Bancorporation in an all-stock transaction valued at approximately $348.4m.

Following the completion of the deal, the combined company will hold about $4.8bn in assets.

As per the merger terms, each Signature share will be exchanged for 2.63 shares of Esquire common stock.

This acquisition will give Esquire a foothold in the Chicago banking sector, an area where it has previously not had a significant presence.

The merger is structured to bring together Esquire’s national litigation lending operations with Signature’s expertise in commercial and real estate banking within the Chicago market.

The transaction is expected to lower Esquire’s exposure to its litigation vertical loans and funding from over 70% to under 50%.

Signature’s commercial deposit base will also add diversity to Esquire’s balance sheet.

According to calculations provided by the companies, the merged firm is forecasted to see Esquire’s GAAP earnings per share increase by 23% in 2027.

The boards of both companies and their respective banks will be restructured to include eleven directors, nine from Esquire and two from Signature.

Leonard S. Caronia, currently Chairman of Signature, and Michael G. O’Rourke, CEO and President of Signature, will join Esquire’s board.

O’Rourke will remain president of Signature, which will operate as a division of Esquire Bank.

Three senior executives from Signature have agreed to stay on and handle business development and operations for the Chicago area.

Mick O’Rourke said: “We are excited to announce a partnership that will benefit both institutions, our clients, and our shareholders, while also positioning us to work together towards the next chapter of our combined organization’s legacy.

“By bringing together Signature’s strong Midwest commercial banking franchise with Esquire’s national capabilities, we will have greater resources and expanded reach to support our clients as they grow.”

Completion of the deal is contingent on regulatory approval and approvals from both sets of shareholders. If approved, the merger is expected to close in the third quarter of 2026.

Esquire president, vice chairman and CEO Andrew C. Sagliocca commented: “Signature’s leadership in the attractive Chicago market, best-in-class management team, and exceptional core funding provide Esquire with a strong platform for continued growth and expansion in the country’s third largest metropolitan area or MSA and one of the nation’s largest legal markets. 

“This merger is compelling on multiple levels. Financially, it enhances our operating profile, expands our resources, and diversifies our balance sheet while maintaining a robust capital position for continued expansion in our unique national litigation platform.”