Esquire Financial Holdings Reports 10.2% Asset Growth, 21.9% Interest Income Increase in Latest Quarter

Esquire Financial Holdings, Inc. reported significant financial growth in its latest 10-Q filing for the quarter ending September 30, 2024. The company’s total assets increased by $165.6 million, or 10.2%, reaching $1.78 billion, compared to $1.62 billion at the end of 2023. This growth was primarily driven by a $90 million (7.5%) rise in loans held for investment, totaling $1.30 billion, and a substantial increase in available-for-sale securities, which surged by $89.4 million (73.2%) to $211.5 million.

For the three months ended September 30, 2024, Esquire Financial reported total interest income of $29.1 million, a 21.9% increase from $23.9 million in the same period of 2023. Net interest income also rose by 19% to $25.9 million, up from $21.7 million. The net interest margin slightly decreased to 6.16% from 6.19% year-over-year. The company’s net income for the quarter was $11.4 million, reflecting a 15.5% increase from $9.8 million in the prior year, with basic earnings per share rising to $1.45 from $1.27.

For the nine months ending September 30, 2024, net income totaled $31.9 million, a modest increase of 2.5% from $31.1 million in the same period of 2023. The company’s total noninterest income, however, decreased by 20.3% to $18.7 million, primarily due to a decline in payment processing fees, which fell to $15.8 million from $16.9 million.

Esquire Financial's total deposits increased by $129.1 million (9.2%) to $1.54 billion, with core deposits representing 99.1% of total deposits. The company maintained a strong liquidity position, with available liquidity of $972.4 million, or 63% of total deposits, and no outstanding borrowings.

The allowance for credit losses increased to $19.5 million, representing 1.50% of total loans, up from 1.38% a year earlier. The company reported one multifamily loan classified as nonperforming, totaling $10.9 million, unchanged from the previous year.

Esquire Financial continues to focus on its core services, primarily serving the legal and small business communities, and has identified significant growth opportunities within the litigation market, which has a total addressable market of $443 billion. The company’s strategic initiatives include enhancing its commercial lending platform and expanding its payment processing solutions, which have shown robust growth in transaction volumes.