Core Insights - Esquire Financial Holdings, Inc. reported strong financial performance in Q3 2025, with net income increasing to $14.1 million, or $1.62 per diluted share, compared to $11.4 million, or $1.34 per diluted share in Q3 2024, reflecting a 23.7% year-over-year growth [4][8] - The company achieved a net interest income of $31.3 million, a 21.2% increase from the previous year, driven by a 23.3% growth in average interest-earning assets [5][16] - The net interest margin was reported at 6.04%, slightly down from 6.16% in the previous year, impacted by elevated cash balances [5][8] Financial Performance - For the nine months ended September 30, 2025, net income was $37.4 million, or $4.32 per diluted share, compared to $31.9 million, or $3.78 per diluted share for the same period in 2024 [15] - Year-to-date revenue increased by $15.4 million, or 16.8%, to $107.2 million compared to the previous year [8] - The provision for credit losses was $1.8 million for Q3 2025, an increase from the previous year, with an allowance to loans ratio of 1.37% [6][17] Loan and Deposit Growth - Average loans increased by $262.0 million, or 20.6%, to $1.53 billion, primarily due to a 29.9% growth in commercial loans [5][25] - Average deposits rose by $364.2 million, or 24.5%, to $1.85 billion, with significant contributions from litigation-related escrow accounts and commercial money market deposits [5][25] - The loan-to-deposit ratio stood at 82% as of September 30, 2025 [5][25] Noninterest Income and Expenses - Noninterest income totaled $6.2 million for Q3 2025, slightly up from $6.1 million in the same period last year, with payment processing income remaining stable [7][18] - Noninterest expenses increased by $3.0 million, or 19.5%, to $18.4 million, primarily due to higher employee compensation and benefits [10][19] Asset Quality and Capital Position - The company maintained solid asset quality with nonperforming loans totaling $8.6 million, representing 0.40% of total assets [22][23] - Stockholders' equity increased to $279.2 million as of September 30, 2025, driven by retained earnings and additional paid-in capital [29] - The common equity tier 1 capital ratio was reported at 15.27%, well above regulatory standards [29]