Esquire Financial Holdings Reports $11.4 Million Net Income in Q1 2025

Esquire Financial Holdings, Inc. reported a net income of $11.4 million for the first quarter of 2025, reflecting a 13.4% increase from $10.1 million in the same period last year. This growth was primarily driven by a 20.8% rise in net interest income, which reached $27.6 million, up from $22.9 million in the prior year. The increase in net interest income was attributed to a $5.4 million rise in interest income, which was partially offset by a $694,000 increase in interest expense. The company's net interest margin slightly decreased to 5.96%, down from 6.06% in the previous year, due to changes in the composition of interest-earning assets and a decrease in short-term market interest rates.

Total assets for Esquire Financial increased to $1.95 billion as of March 31, 2025, marking a 3.3% rise from $1.89 billion at the end of 2024. This growth was fueled by a $46.7 million increase in cash and cash equivalents and an $18.8 million rise in loans held for investment, which totaled $1.42 billion. The loan portfolio saw significant contributions from commercial and multifamily loans, with commercial loans increasing by $13.6 million and multifamily loans by $9.7 million. The company’s total deposits also rose by $45.9 million, or 2.8%, to $1.69 billion, with core deposits making up 99.6% of total deposits.

Operationally, Esquire Financial has continued to focus on its litigation and payment processing verticals, which are seen as key growth areas. The company reported that its litigation-related loans accounted for 59.2% of its total loan portfolio, totaling $838 million. The payment processing segment processed approximately $9.3 billion in transactions during the quarter, reflecting a 7.8% increase in payment volumes. However, payment processing income decreased by 7.3% to $4.9 million, attributed to changes in the merchant risk profile and composition.

In terms of credit quality, the allowance for credit losses was $19.5 million, or 1.37% of total loans, down from $21 million, or 1.50%, at the end of 2024. The company recognized a $2.9 million charge-off on a nonperforming multifamily loan during the quarter. Despite this, the ratio of nonperforming loans to total loans improved to 0.57% from 0.78% in the previous quarter. Looking ahead, Esquire Financial remains optimistic about its growth prospects, particularly in the litigation market, which is projected to continue expanding, and plans to leverage its technology to enhance service delivery and operational efficiency.