Esquire Financial (US:ESQ)2025-11-07 21:31Loans and Credit Losses - As of September 30, 2025, total loans held for investment amounted to $1,546.7 million, an increase from $1,396.8 million as of December 31, 2024, representing a growth of approximately 10.7%[34] - The allowance for credit losses increased to $21.1 million as of September 30, 2025, compared to $19.5 million as of September 30, 2024, reflecting a rise of about 8.5%[34] - The total real estate loans increased to $481.0 million as of September 30, 2025, from $456.9 million as of December 31, 2024, marking a growth of approximately 5.3%[34] - The total loans not past due as of September 30, 2025, were $1,538,076 million, compared to $1,385,832 million as of December 31, 2024, representing an increase of about 11%[36] - The credit risk profile indicates that as of September 30, 2025, the total loans classified as "Pass" amounted to $1,511,852 million, which is an increase from the previous year[42] - The company reported current period gross charge-offs of $6,661 million for the nine months ending September 30, 2025, compared to $3,250 million for the same period in 2024, reflecting an increase of 104.5%[42] - The total ending allowance balance for credit losses for the commercial segment as of September 30, 2025, was $13,982 million, up from $14,689 million in the previous year[35] - The company has categorized loans into risk categories, with "Special Mention" loans totaling $26,482 million as of September 30, 2025, indicating potential weaknesses[38] - The total past due loans as of September 30, 2025, amounted to $8,650 million, compared to $10,942 million as of December 31, 2024, showing a decrease of approximately 20.9%[36] - The provision for credit losses for the nine months ending September 30, 2025, was $6,775 million, compared to $3,000 million for the same period in 2024, indicating a significant increase of 125.8%[35] Securities and Investments - The total available-for-sale securities decreased to $265.1 million as of September 30, 2025, down from $271.0 million as of December 31, 2024, indicating a decline of approximately 2.9%[26] - The total unrealized losses on available-for-sale securities amounted to $14.4 million as of September 30, 2025, compared to $19.0 million as of December 31, 2024, showing a reduction of approximately 24.5%[31] - The company reported no allowance for credit losses on available-for-sale securities due to high credit quality as of September 30, 2025[32] - The fair value of securities pledged to the Federal Reserve Bank of New York was $50.5 million as of September 30, 2025, with borrowing capacity totaling $48.9 million[30] - The fair value measurement for securities held-to-maturity was $57,202,000 as of September 30, 2025, down from $60,931,000 at the end of 2024[72] - The fair value of available-for-sale securities was $265,132 thousand, up from $241,746 thousand as of December 31, 2024[70] Financial Performance - For the three months ended September 30, 2025, net income was $14,057 thousand, an increase of 23.5% compared to $11,360 thousand for the same period in 2024[60] - Basic earnings per share for the three months ended September 30, 2025, was $1.74, up 20% from $1.45 in 2024[60] - The company reported total noninterest income of $18.961 million for the nine months ended September 30, 2025, compared to $18.726 million for the same period in 2024, reflecting a year-over-year increase of 1.3%[50] Cash and Deposits - As of September 30, 2025, cash and cash equivalents amounted to $240,759,000, an increase from $126,329,000 on December 31, 2024[72] - Total demand and other deposits were $1,873,383,000 as of September 30, 2025, up from $1,628,132,000 at the end of 2024[72] - Time deposits decreased to $6,057,000 as of September 30, 2025, from $14,104,000 at the end of 2024[72] Lease Commitments and Expenses - The company had an additional future operating lease commitment for its future corporate headquarters of approximately $24 million, expected to commence no earlier than Q4 2026[65] - Total operating lease payments as of September 30, 2025, amounted to $3,005 thousand, with a present value of operating lease liabilities of $2,450 thousand[64] - The weighted-average remaining lease term increased to 6.30 years as of September 30, 2025, compared to 2.17 years in 2024[66] - The company recognized total lease costs of $227 thousand for the three months ended September 30, 2025, compared to $192 thousand in 2024, representing an 18.2% increase[66] Compensation and Stock - The intrinsic value for outstanding options, net of expected forfeitures, was $25.6 million at September 30, 2025[57] - The company recognized compensation expense related to options of $188 thousand for the three months ended September 30, 2025, compared to $178 thousand for the same period in 2024[57] - The company recognized compensation expense related to restricted stock of $975 thousand for the three months ended September 30, 2025, compared to $755 thousand in 2024, reflecting a 29.1% increase[58] - As of September 30, 2025, total unrecognized compensation cost related to nonvested shares was $11.1 million, expected to be recognized over a weighted-average period of 3.51 years[58] - The company granted 35,626 shares of restricted stock with a fair value of $89.90 during the nine months ended September 30, 2025[58] Internal Controls - The company reported no changes in internal controls over financial reporting that materially affected the effectiveness of these controls during the quarter ended September 30, 2025[180] - The company’s disclosure controls and procedures were concluded to be effective as of September 30, 2025[180]