Workflow
Esquire Financial (ESQ) - 2024 Q4 - Annual Results
ESQEsquire Financial (ESQ)2025-01-23 13:54

Net Income and Profitability - Net income increased 19% to 11.8millioninQ42024,comparedto11.8 million in Q4 2024, compared to 9.9 million in Q4 2023[1] - Full-year net income rose 7% to 43.7millionin2024,upfrom43.7 million in 2024, up from 41.0 million in 2023[1] - Net income for the year ended December 31, 2024, was 43,658thousand,upfrom43,658 thousand, up from 41,011 thousand in 2023[36] - Adjusted net income for 2024 was 43,658thousand,comparedto43,658 thousand, compared to 38,081 thousand in 2023[42] - Return on average assets for the year ended December 31, 2024, was 2.57%, down from 2.89% in 2023[36] - Adjusted return on average equity for 2024 was 20.14%, down from 21.54% in 2023[42] Loan and Deposit Growth - Core deposit growth totaled 105.9million,or28105.9 million, or 28% annualized, reaching 1.63 billion in Q4 2024[1] - Loan growth on a linked quarter basis was 99.6million,or3199.6 million, or 31% annualized, to 1.40 billion in Q4 2024[1] - Average loans increased by 207.0million(19.7207.0 million (19.7%) to 1.26 billion, primarily due to growth in the national commercial lending platform and regional multifamily loan portfolio[13] - Average deposits increased by 230.0million(31.6230.0 million (31.6%) to 958 million, primarily due to growth in escrow or IOLTA deposits nationally[13] - Total deposits increased by 234.9million(16.7234.9 million (16.7%) to 1.64 billion, with IOLTA and escrow deposits representing 59.6% of total deposits[25] - Total deposits grew to 1,642,236thousandasofDecember31,2024,from1,642,236 thousand as of December 31, 2024, from 1,407,299 thousand in the previous year[34] - Loans held for investment increased to 1,315,392thousandinQ42024,withayieldof7.781,315,392 thousand in Q4 2024, with a yield of 7.78%, up from 1,169,411 thousand in Q4 2023[38] - For the full year 2024, loans held for investment averaged 1,258,914thousandwithayieldof7.821,258,914 thousand with a yield of 7.82%, up from 1,051,903 thousand in 2023[39] Net Interest Income and Margin - Net interest margin for the full year 2024 was 6.06%, with Q4 margin at 5.87%[1] - Net interest income increased by 16.2million(19.316.2 million (19.3%) to 99.9 million, driven by a 19.9% growth in average interest-earning assets to 1.65billionandanetinterestmarginof6.061.65 billion and a net interest margin of 6.06%[13] - Net interest income for the year ended December 31, 2024, was 99,929 thousand, compared to 83,773thousandin2023[36]−NetinterestmarginfortheyearendedDecember31,2024,was6.0683,773 thousand in 2023[36] - Net interest margin for the year ended December 31, 2024, was 6.06%, slightly down from 6.09% in 2023[36] - Net interest income for Q4 2024 was 26,886 thousand, up from 22,670thousandinQ42023[38]−NetinterestmarginforQ42024was5.8722,670 thousand in Q4 2023[38] - Net interest margin for Q4 2024 was 5.87%, down from 6.12% in Q4 2023[38] - Net interest income for 2024 was 99,929 thousand, up from 83,773thousandin2023[39]−GAAPnetinterestincomeforQ42024was83,773 thousand in 2023[39] - GAAP net interest income for Q4 2024 was 26.886 billion, up from 25.858billioninQ32024and25.858 billion in Q3 2024 and 22.670 billion in Q4 2023[43] Credit Losses and Allowance - Provision for credit losses increased by 200thousandto200 thousand to 1.7 million in Q4 2024[7] - The provision for credit losses was 4.7million,withtheallowancetoloansratioincreasingto1.504.7 million, with the allowance to loans ratio increasing to 1.50% from 1.38% in 2023[14] - The allowance for credit losses was 21.0 million (1.50% of total loans), with nonperforming loans totaling 10.9million(0.7810.9 million (0.78% of total loans)[20] - Nonperforming loans remained steady at 10,940 thousand as of December 31, 2024, consistent with the previous year[34] Noninterest Income and Expense - Noninterest income totaled 24.9million,withpaymentprocessingincomedecreasingby24.9 million, with payment processing income decreasing by 1.4 million to 20.9millionduetoISOattritionandchangesinmerchantriskprofile[15]−Noninterestexpenseincreasedby20.9 million due to ISO attrition and changes in merchant risk profile[15] - Noninterest expense increased by 7.7 million (14.5%) to 60.8million,primarilyduetoincreasesinemployeecompensationandbenefits,advertising,anddataprocessingcosts[17]−TotalnoninterestincomefortheyearendedDecember31,2024,was60.8 million, primarily due to increases in employee compensation and benefits, advertising, and data processing costs[17] - Total noninterest income for the year ended December 31, 2024, was 24,895 thousand, compared to 29,751thousandin2023[36]−Employeecompensationandbenefitsexpensesincreasedto29,751 thousand in 2023[36] - Employee compensation and benefits expenses increased to 37,845 thousand for the year ended December 31, 2024, from 32,481thousandin2023[36]−AdjustednoninterestincomeforQ42024was32,481 thousand in 2023[36] - Adjusted noninterest income for Q4 2024 was 6.169 billion, compared to 6.062billioninQ32024and6.062 billion in Q3 2024 and 6.266 billion in Q4 2023[43] - GAAP noninterest expense for Q4 2024 was 15.685billion,comparedto15.685 billion, compared to 15.358 billion in Q3 2024 and 13.901billioninQ42023[43]EfficiencyRatios−EfficiencyratioforQ42024was47.513.901 billion in Q4 2023[43] Efficiency Ratios - Efficiency ratio for Q4 2024 was 47.5%, compared to 48.0% in 2023[10] - Non-GAAP efficiency ratio for Q4 2024 was 48.1%, compared to 47.5% in Q3 2024 and 48.0% in Q4 2023[43] - Adjusted efficiency ratio (non-GAAP) for Q4 2024 was 47.5%, compared to 48.1% in Q3 2024 and 48.0% in Q4 2023[43] Capital and Equity Ratios - Common equity tier 1 (CET1) ratio stood at 14.67%, with tangible common equity to tangible assets (TCE/TA) ratio at 12.53%[4] - Stockholders' equity increased by 38.5 million to 237.1million,drivenbyincreasesinretainedearnings(netincome)[28]−Commonequitytier1capitalratiowas14.67237.1 million, driven by increases in retained earnings (net income)[28] - Common equity tier 1 capital ratio was 14.67% as of December 31, 2024, compared to 14.13% in the previous year[34] - Tangible common equity to tangible assets ratio (non-GAAP) was 12.53% as of December 31, 2024[45] - Adjusted common equity tier 1 capital ratio was 13.33% as of December 31, 2024[45] - Common equity tier 1 capital ratio was 14.67% as of December 31, 2024[45] Asset and Liability Growth - Total assets increased by 275.6 million (17.0%) to 1.89billion,drivenbya1.89 billion, driven by a 189.6 million (15.7%) increase in loans, primarily higher-yielding variable rate commercial loans[23] - Total assets increased to 1,892,503thousandasofDecember31,2024,comparedto1,892,503 thousand as of December 31, 2024, compared to 1,616,876 thousand in the same period last year[34] - Total interest earning assets grew to 1,823,690thousandinQ42024,withayieldof6.721,823,690 thousand in Q4 2024, with a yield of 6.72%, compared to 1,470,644 thousand in Q4 2023[38] - Total interest earning assets for 2024 averaged 1,648,433thousandwithayieldof6.881,648,433 thousand with a yield of 6.88%, compared to 1,375,275 thousand in 2023[39] - Total GAAP assets as of December 31, 2024 were 1.892503trillion[45]−Totalrisk−weightedassetsforthebankwere1.892503 trillion[45] - Total risk-weighted assets for the bank were 1.488855 trillion as of December 31, 2024[45] Payment Processing and Off-Balance Sheet Items - Payment processing platform facilitated 9.2billionincreditanddebitcardpaymentvolumeacross145.7milliontransactionsinQ42024[4]−Off−balancesheetsweepfundsincreasedby9.2 billion in credit and debit card payment volume across 145.7 million transactions in Q4 2024[4] - Off-balance sheet sweep funds increased by 276.4 million, or 99%, to $554.4 million compared to year-end 2023[1]