#United States #Jericho #Esquire Financial #Esquire Bank #NASDAQ: ESQ

Esquire Financial Holdings, Inc. Reports Fourth Quarter and Full Year 2025 Results

Esquire Financial Holdings, Inc. (NASDAQ: ESQ), the holding company for Esquire Bank, has released its financial performance results for the fourth quarter and the entire fiscal year of 2025. The report highlights a remarkable growth trajectory driven by substantial increases in commercial loans and deposits.

Key Financial Highlights

In the fourth quarter of 2025, Esquire reported a net income of $13.5 million, a 14.6% increase compared to $11.8 million during the same quarter in 2024. This resulted in earnings per diluted share of $1.55, up from $1.37 in the previous year. For the entire year, the company's net income rose by 16.4% to $50.8 million, despite increased provisions for credit losses and noninterest expenses.

Despite facing a $1.2 million increase in credit loss provisions and a $3.4 million rise in noninterest expenses, the company's robust financial performance showcases resilience and efficiency in its operations. The effective tax rate also saw an innovative drop, attributed to discrete tax benefits relating to share-based compensation, resulting in a tax rate of 22.8% in Q4, down from 25.0% the prior year.

Growth in Loans and Deposits

Esquire's commercial loan growth was particularly noteworthy, totaling $211.4 million, an annualized increase of 54.2%. The company’s loan portfolio now stands at $1.76 billion, indicating a 25.9% growth compared to the previous year. Notably, commercial litigation-related loans surged, leading to a substantial number of new lending facility originations.

Deposits also showed impressive growth, increasing by $183.5 million, or 38.9% annualized, reaching a total of $2.06 billion. This was significantly driven by low-cost commercial relationship deposits and litigation-related escrow deposits. As a strategic aim, Esquire's deposit strategy focuses on enhancing full-service commercial banking relationships nationwide.

Continued Investment and Efficient Operations

The company reported consistent returns on average assets and equity at 2.36% and 18.90%, respectively, emphasizing their efficient operational model. The net interest margin, a key profitability metric, remained resilient at 6.05% for the current quarter and 6.02% for the full year, despite the downturn in short-term market interest rates.

Keeping ahead of the competition, Esquire's technology-driven approach has enabled robust asset management and client service. Their payment processing platform also supported impressive transaction volumes of $10 billion across 145.4 million transactions, showcasing their capability in commercial treasury clearing services.

Future Outlook

Looking ahead, Esquire's leadership remains optimistic about sustaining growth in 2026 and beyond. Tony Coelho, Chairman of the Board, mentioned their commitment to serve the fragmented and underserved markets within the litigation and payments sectors. This commitment aligns with their strategic investments in technology and service enhancement, allowing for a personal touch to their expansive operations.

With a strong capital foundation and compliance ahead of regulatory standards, Esquire Financial Holdings is positioning itself for continued success and stakeholder value enhancement in the coming years. As Esquire expands its footprint in key markets across the nation, it aims to build stronger commercial relationships and tailor its offerings to meet the evolving needs of its diverse client base.

In conclusion, Esquire's performance in 2025 sets a strong foundation for future growth. The positive earnings trajectory and increased capital indicate a promising outlook as the company navigates through the complexities of the financial landscape while delivering outstanding client service.