Esquire Financial (US:ESQ)2026-01-22 13:45Financial Performance - Net income for Q4 2025 increased 14.6% to $13.5 million, or $1.55 per diluted share, compared to $11.8 million, or $1.37 per diluted share in Q4 2024[1]. - For the full year 2025, net income rose 16.4% to $50.8 million, or $5.87 per diluted share, compared to $43.7 million, or $5.14 per diluted share in 2024[14]. - Total revenue for 2025 increased by $21.7 million, or 17.4%, to $146.6 million compared to 2024[1]. - Noninterest income for Q4 2025 was stable at $6.1 million, representing 16% of total revenue, with payment processing income at $5.1 million[6]. - Noninterest income totaled $25.1 million, consistent with 2024, while payment processing income decreased by $660 thousand to $20.2 million[17]. - Net interest income rose to $121,481,000 in 2025, compared to $99,929,000 in 2024, reflecting an increase of about 21.5%[37]. Asset and Loan Growth - Average loans grew $122.9 million, or 31.8% annualized, to $1.66 billion on a linked quarter basis, with total loans increasing $361.4 million, or 25.9%, for the full year 2025[1]. - Total assets increased by $473.2 million, or 25.0%, to $2.37 billion, driven by a $361.4 million, or 25.9%, growth in loans[23]. - Loans held for investment rose to $1,758,427 thousand, an increase of 13.63% from $1,546,980 thousand in the previous quarter[33]. - Average balance of loans held for investment grew to $1,511,997,000 in 2025, up from $1,258,914,000 in 2024, an increase of approximately 19.9%[37]. Deposit Growth - Core deposits increased by $428.7 million, or 26.3%, to $2.06 billion for the full year 2025[1]. - Total deposits reached $2.06 billion as of December 31, 2025, a $420.8 million, or 25.6%, increase from 2024[25]. - Total deposits reached $2,063,007 thousand, an increase of 9.76% from $1,879,440 thousand in the previous quarter[33]. - Average balance of savings, NOW, and money market deposits rose to $1,231,143,000 in 2025 from $945,899,000 in 2024, an increase of approximately 30.2%[37]. Efficiency and Expenses - The efficiency ratio for Q4 2025 was 48.4%, compared to 47.5% in Q4 2024, indicating continued investment in growth and client service[12]. - Noninterest expense increased by $10.4 million, or 17.1%, to $71.2 million, primarily due to higher employee compensation and benefits, which rose by $4.5 million, or 11.8%[18]. - The efficiency ratio was 48.6% for the year ended December 31, 2025, slightly improved from 48.7% in 2024[19]. - The efficiency ratio improved to 48.4% for the three months ended December 31, 2025, compared to 48.9% in the previous quarter, indicating better cost management[35]. Tax and Provision for Credit Losses - The effective tax rate for Q4 2025 was 22.8%, down from 25.0% in the prior year quarter, due to discrete tax benefits related to share-based compensation[13]. - The provision for credit losses was $2.9 million for Q4 2025, a $1.2 million increase from Q4 2024, reflecting significant loan growth[9]. - The provision for credit losses was $9.7 million for the year ended December 31, 2025, a $5.0 million increase from 2024, with an allowance to loans ratio of 1.37% compared to 1.50% in 2024[16]. - The provision for credit losses increased to $2,900 thousand for the three months ended December 31, 2025, compared to $1,750 thousand in the previous quarter, indicating a rise of 65.71%[35]. Capital and Equity - Stockholders' equity increased by $52.5 million to $289.6 million, primarily due to net increases in retained earnings[28]. - The bank remains well above regulatory "Well Capitalized" standards[29]. - Stockholders' equity increased to $261,822,000 in 2025 from $216,743,000 in 2024, representing a growth of about 20.8%[37]. Interest Margin and Rates - Net interest margin was resilient at 6.05% for Q4 2025 and 6.02% for the full year 2025, despite declines in short-term market interest rates[1]. - Average yield on total interest earning assets improved to 6.91% in 2025 from 6.88% in 2024[37]. - Net interest margin slightly decreased to 6.02% in 2025 from 6.06% in 2024[37]. Other Financial Metrics - Cash dividends paid per common share remained stable at $0.175 for both the current and previous quarters[35]. - Off-balance sheet sweep funds totaled approximately $736.6 million, with $449.0 million, or 61.0%, available to be swept on balance sheet[26]. - Total interest earning assets reached $2,018,146,000 in 2025, up from $1,648,433,000 in 2024, marking a growth of approximately 22.5%[37].