Net Income and Profitability - Net income increased 19% to $11.8 million in Q4 2024, compared to $9.9 million in Q4 2023[1] - Full-year net income rose 7% to $43.7 million in 2024, up from $41.0 million in 2023[1] - Net income for the year ended December 31, 2024, was $43,658 thousand, up from $41,011 thousand in 2023[36] - Adjusted net income for 2024 was $43,658 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 $105.9 million, or 28% annualized, reaching $1.63 billion in Q4 2024[1] - Loan growth on a linked quarter basis was $99.6 million, or 31% annualized, to $1.40 billion in Q4 2024[1] - Average loans increased by $207.0 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 $230.0 million (31.6%) to $958 million, primarily due to growth in escrow or IOLTA deposits nationally[13] - Total deposits increased by $234.9 million (16.7%) to $1.64 billion, with IOLTA and escrow deposits representing 59.6% of total deposits[25] - Total deposits grew to $1,642,236 thousand as of December 31, 2024, from $1,407,299 thousand in the previous year[34] - Loans held for investment increased to $1,315,392 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 $1,258,914 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 $16.2 million (19.3%) to $99.9 million, driven by a 19.9% growth in average interest-earning assets to $1.65 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 $83,773 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 $22,670 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 $83,773 thousand in 2023[39] - GAAP net interest income for Q4 2024 was $26.886 billion, up from $25.858 billion in Q3 2024 and $22.670 billion in Q4 2023[43] Credit Losses and Allowance - Provision for credit losses increased by $200 thousand to $1.7 million in Q4 2024[7] - The provision for credit losses was $4.7 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 $10.9 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 $24.9 million, with payment processing income decreasing by $1.4 million to $20.9 million due to ISO attrition and changes in merchant risk profile[15] - Noninterest expense increased by $7.7 million (14.5%) to $60.8 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 $29,751 thousand in 2023[36] - Employee compensation and benefits expenses increased to $37,845 thousand for the year ended December 31, 2024, from $32,481 thousand in 2023[36] - Adjusted noninterest income for Q4 2024 was $6.169 billion, compared to $6.062 billion in Q3 2024 and $6.266 billion in Q4 2023[43] - GAAP noninterest expense for Q4 2024 was $15.685 billion, compared to $15.358 billion in Q3 2024 and $13.901 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 $237.1 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 $1.89 billion, driven by a $189.6 million (15.7%) increase in loans, primarily higher-yielding variable rate commercial loans[23] - Total assets increased to $1,892,503 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 $1,823,690 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 $1,648,433 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 $1.892503 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 $9.2 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]
Esquire Financial (ESQ) - 2024 Q4 - Annual Results