Esquire Financial (US:ESQ)2025-05-12 17:38Loan Portfolio - As of March 31, 2025, total loans held for investment amounted to $1,415,494,000, an increase from $1,396,774,000 as of December 31, 2024, representing a growth of approximately 1.9%[33] - The total real estate loans increased to $462,648,000 as of March 31, 2025, from $456,868,000 at the end of 2024, marking a growth of about 1.3%[33] - The company’s commercial loans stood at $934,141,000 as of March 31, 2025, up from $920,567,000 as of December 31, 2024, representing an increase of approximately 1.5%[33] - As of March 31, 2025, the total past due loans amounted to $1,415,494 thousand, with $8,000 thousand classified as multifamily loans past due[34] - The aging of past due loans shows that as of March 31, 2025, there were 8,000 thousand in multifamily loans and 934,141 thousand in commercial loans not past due[34] - The company reported a total of 365,000 thousand in multifamily loans, with 8,000 thousand classified as substandard[40] - The total loans measured at amortized cost as of March 31, 2025, were $1,415,858 thousand, with a gross charge-off of $3,037 thousand[40] - The multifamily loans included in the total past due loans showed a decrease from $10,940 thousand as of December 31, 2024[34] Credit Quality - The allowance for credit losses decreased to $19,461,000 as of March 31, 2025, down from $20,979,000 at the end of 2024, indicating a reduction of about 7.2%[33] - The company reported no allowance for credit losses on available-for-sale securities due to high credit quality, reflecting a strong asset quality management[31] - The company categorized loans into risk categories, with special mention loans indicating potential weaknesses that require management's attention[35] - The company has a well-defined process for analyzing loans individually based on credit risk, performed at least annually for large balance loans[35] - The company maintains a focus on credit quality indicators to assess the ability of borrowers to service their debt[35] - The total current period gross charge-offs for the company were $3,037 thousand, indicating a need for monitoring credit quality[40] Securities and Investments - The total available-for-sale securities as of March 31, 2025, had a fair value of $236,919,000, down from $241,746,000 as of December 31, 2024, reflecting a decrease of approximately 2.0%[27] - The total unrealized losses for available-for-sale securities as of March 31, 2025, amounted to $16,754,000, compared to $19,976,000 as of December 31, 2024, showing an improvement of approximately 16.0%[30] - The company reported no sales or calls of securities for the three months ended March 31, 2025, and 2024, indicating stable investment activity[28] - The company reported an unrealized gain on securities available-for-sale of $2,604,000 for Q1 2025, improving from a loss of $1,134,000 in Q1 2024[67] Financial Performance - Net income for the three months ended March 31, 2025, was $11,407,000, an increase of 13.4% compared to $10,058,000 for the same period in 2024[57] - Basic earnings per share rose to $1.43 for Q1 2025, up from $1.29 in Q1 2024, reflecting a 10.9% increase[57] - Diluted earnings per share increased to $1.33 in Q1 2025, compared to $1.20 in Q1 2024, representing a 10.8% growth[57] - Noninterest income for the three months ended March 31, 2025, was $6,151 thousand, a decrease of 3.7% from $6,389 thousand in the same period of 2024[45] - Payment processing income decreased to $4,750 thousand in Q1 2025 from $5,100 thousand in Q1 2024, reflecting a decline of 6.8%[45] Lease and Asset Management - As of March 31, 2025, right of use (ROU) lease assets were $3.0 million, while lease liabilities were $3.3 million[60] - Total operating lease payments for the year 2025 are projected to be $3,899,000, with a present value of operating lease liabilities at $3,276,000[61] - The weighted-average remaining lease term increased to 6.60 years as of March 31, 2025, compared to 2.67 years in 2024[61] - Total lease cost for Q1 2025 was $239,000, up from $192,000 in Q1 2024, indicating a 24.5% increase[61] Borrowing and Liquidity - At March 31, 2025, securities with a fair value of $244.7 million were pledged to the Federal Home Loan Bank of New York for borrowing capacity totaling $227.2 million[28] - The company had no outstanding Federal Home Loan Bank advances as of March 31, 2025, and December 31, 2024, indicating a stable liquidity position[28] - Loans pledged to the FHLB for borrowing capacity totaled $304.0 million as of March 31, 2025, up from $297.8 million at December 31, 2024[44] - The company did not modify any loan terms for borrowers experiencing financial difficulty during the three months ended March 31, 2025[43] Stock Options and Compensation - As of March 31, 2025, there were 489,666 stock options outstanding with a weighted average exercise price of $26.17[54] - The intrinsic value of options exercised in Q1 2025 was $4,776 thousand, significantly higher than $369 thousand in Q1 2024[55] - The company recognized compensation expense related to restricted stock of $823 thousand for Q1 2025, compared to $787 thousand in Q1 2024, indicating a 4.6% increase[56] - The expected aggregate share payout for performance restricted stock units (PSUs) at the end of Q1 2025 was 19,474 units, with a fair value of $85.32[56]