- Esquire Financial Holdings (ESQ, Financial) reports a 13% increase in net income for Q1 2025.
- Net interest margin expands to 5.96% with a 15% increase in total revenue.
- The company announces a 17% increase in quarterly dividend and a new joint venture with Fortress Investment Group.
Esquire Financial Holdings, Inc. (NASDAQ: ESQ) announced impressive financial results for the first quarter of 2025, with a notable 13% rise in net income, reaching $11.4 million, or $1.33 per diluted share, up from $10.1 million, or $1.20 per diluted share, in the same period last year.
The bank achieved robust performance metrics, including a return on average assets (ROA) of 2.39% and a return on equity (ROE) of 19.13%, underscoring its industry-leading efficiency. The net interest margin experienced a significant expansion to 5.96%, driven by strategic deployment of cash into higher-yielding commercial loans.
Total revenue saw a healthy increase of 15%, amounting to $33.8 million. This growth was fueled by a 5% annualized increase in the loan portfolio, which totaled $1.42 billion. Core deposits showed strong growth, increasing by $45.9 million, or 11% annualized, reaching $1.69 billion.
Esquire Financial also reported a strong efficiency ratio of 49.6%, despite increased investments in operational growth and client services. The company maintained solid credit metrics, with an allowance for credit losses ratio of 1.37%, and reported a $2.9 million charge-off on a nonperforming multifamily loan, which is under restructuring.
In a strategic move, Esquire Financial announced a 17% increase in its quarterly dividend to $0.175 per share, marking the fourth consecutive increase since 2022. Furthermore, the company launched a sourcing joint venture with Fortress Investment Group to bolster lending solutions and banking services for contingency fee law firms.
These developments demonstrate Esquire's commitment to leveraging strong financial performance to support future growth initiatives and enhance shareholder value.
