Esquire Financial Holdings Reports 13.4% Increase in Net Income for Q2 2025

Esquire Financial Holdings, Inc. reported a notable increase in its financial performance for the second quarter of 2025, with net income rising to $11.9 million, a 13.4% increase from $10.5 million in the same period last year. This growth was primarily driven by a 20.3% increase in net interest income, which reached $29.3 million, up from $24.3 million in the prior year. The company’s total interest income also saw a significant rise, climbing to $33.5 million, a 22.5% increase compared to $27.4 million in the previous year. The increase in interest income was attributed to higher loan balances and yields, particularly in the commercial loan sector, which grew by 27.5%.

In terms of overall financial condition, Esquire Financial's total assets increased by 8.8% to $2.06 billion as of June 30, 2025, compared to $1.89 billion at the end of 2024. This growth was fueled by a $97.6 million increase in loans held for investment, which totaled $1.49 billion, and a $36.6 million increase in cash and cash equivalents. The company’s total deposits also rose by 8.5% to $1.78 billion, reflecting a strong focus on client acquisition and growth in its national litigation platform.

Operationally, Esquire Financial has expanded its loan portfolio, with litigation-related loans comprising 61.5% of total loans as of June 30, 2025. The company reported a total of $921.4 million in litigation-related loans, an increase from $838.6 million at the end of 2024. The growth in this segment is attributed to the company's unique position in the legal financing market, which has a total addressable market estimated at $529 billion. Additionally, the company has maintained a strong liquidity position, with cash and cash equivalents totaling $163 million and available borrowing capacity of $456.1 million from the Federal Home Loan Bank.

Looking ahead, Esquire Financial Holdings expressed optimism about its growth trajectory, particularly in the litigation and payment processing sectors. The company is focused on leveraging its technology and client relationships to enhance its service offerings and expand its market share. Management noted that the recent legislative changes, including tax law adjustments, could further benefit the company’s operations in the coming years. However, they also acknowledged potential risks related to economic conditions and interest rate fluctuations that could impact future performance.