Esquire Financial Holdings Reports $43.7 Million Net Income for Fiscal Year 2024

Esquire Financial Holdings, Inc. reported a net income of $43.7 million, or $5.14 per diluted share, for the fiscal year ending December 31, 2024, reflecting a 6.5% increase from the previous year's net income of $41.0 million. The company's return on average assets and equity stood at 2.57% and 20.14%, respectively, while its net interest margin was recorded at 6.06%. Total assets grew to $1.89 billion, up from $1.62 billion in 2023, primarily driven by a 16% increase in loans held for investment, which reached $1.40 billion.

The company experienced significant changes in its financial performance compared to the previous fiscal period. Interest income surged by 23.4% to $113.4 million, largely due to a $207 million increase in average loan balances, particularly in higher-yielding commercial loans. However, noninterest income decreased by 16.3% to $24.9 million, attributed to a decline in payment processing income, which fell to $20.9 million from $22.3 million in 2023. The increase in interest expense, which rose 65.7% to $13.4 million, was driven by higher rates on interest-bearing deposits.

Strategically, Esquire Financial has focused on expanding its footprint in the litigation market, which represented approximately 60% of its total deposits. The company has enhanced its product offerings, including the launch of a digital marketing content hub named "Lawyer IQ," aimed at supporting law firms with business insights. Additionally, the hiring of six senior business development officers in 2023 has strengthened its commitment to the litigation community. The company plans to open a new branch in Los Angeles in 2025, further demonstrating its growth strategy.

Operationally, Esquire Financial reported a customer base of 88,000 small businesses utilizing its payment processing platform, which accounted for 17% of total revenue. The company’s total deposits increased by 16.7% to $1.64 billion, with low-cost core deposits making up 99.1% of total deposits. The allowance for credit losses increased to $20.98 million, representing 1.50% of total loans, reflecting the company's proactive approach to managing credit risk amid a changing economic environment.

Looking ahead, Esquire Financial remains optimistic about its growth prospects, particularly in the litigation and payment processing sectors. The company aims to leverage its unique business model and technological advancements to enhance customer relationships and drive future profitability. However, management acknowledges potential risks, including economic fluctuations and competitive pressures, which could impact its performance.