NASDAQ$ESQ

Esquire Financial Holdings Inc · Q4 2024 earnings

Q4 2024 earnings · · Before market open · Investor relations

Briefing

Esquire Financial's fourth quarter performance in 2024 was marked by strong growth in net income, driven by commercial loan and deposit growth.

Esquire Financial Holdings reported a strong fourth quarter and full year 2024, characterized by significant commercial loan and deposit growth. Net income for the quarter increased by 19% to $11.8 million, with earnings per diluted share at $1.37. The company's performance was supported by industry-leading returns on average assets and equity, along with expansion of total revenue and strong core deposit growth.

  • Net income increased by 19% to $11.8 million, or $1.37 per diluted share, compared to the same quarter in 2023.
  • Core deposit growth totaled $105.9 million, a 28% annualized increase on a linked quarter basis.
  • Loan growth reached $99.6 million, or 31% annualized, fueled by commercial loans nationally.
  • Fee income remained stable at $6.2 million, representing 19% of total revenue, driven by the payment processing platform.

Headline financials

Total Revenue

$33.1M

Previous: $28.9M+14.2%
EPS (adj)

$1.37

Previous: $1.18+16.1%
Return on Avg. Assets

2.5%

No prior period
Net Interest Margin

5.9%

Previous: 6.1%-4.1%
Efficiency Ratio

47.5%

Previous: 48.0%-1.0%
Tier 1 Leverage Ratio

11.7%

No prior period
Net Income

$11.8M

Previous: $9.9M+18.7%
Operating Income

$15.7M

Previous: $13.5M+15.8%
Gross Profit

$26.9M

No prior period

Revenue & EPS history

Esquire Financial · Revenue · Quarterly

$33.1M

Q4 2024+14.2%vs Q4 2023
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Forward guidance

Esquire Financial anticipates that a portion of the elevated draws on existing commercial litigation related loans may paydown, tempering first quarter loan growth. However, based on the current commercial loan pipeline, the company anticipates 2025 loan growth to be commensurate with prior years.

Tailwinds

  • Active asset-liability management including managing client centric commercial law firm lending renewals including interest rate spreads and floors.
  • Measured and flexible deposit-liability management.
  • Continued commercial loan and core deposit growth.
  • Will continue to produce industry leading growth.
  • Will continue to produce industry leading earnings, returns, and performance metrics in the future.

Headwinds

  • Current quarter’s net interest margin was negatively impacted by both elevated interest earning cash balance and short-term market interest rates on our variable rate commercial loan portfolio on a linked quarter basis
  • A portion of the elevated draws on existing commercial litigation related loans may paydown, tempering first quarter loan growth.
  • Changes in average interest earning asset composition including cash and securities.
  • Decreases in short-term market interest rates.
  • Anticipated ISO and merchant attrition and changes in the volumes of our overall merchant risk profile.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2024

Historical avgQ4 2024

+2.1%

Avg return

Earnings day

+2.1%

Avg return

5 days after

+4.8%

Avg return

30 days after

71%

29 / 41 earnings

Positive

+11.5%

Q4 2017

Best reaction

-3.4%

Q2 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+4.3%-2.9%+0.7%
Q4 2025+0.8%-0.3%-2.0%
Q3 2025+1.1%-2.3%-1.4%
Q2 2025-1.3%-3.1%-1.8%
Q1 2025+2.6%+4.7%+8.7%
Q4 2024-3.2%-3.6%-11.3%
Q3 2024+2.8%+7.3%+21.8%
Q2 2024+3.6%+4.4%+7.0%
Q1 2024+4.6%+0.2%+0.3%
Q4 2023+6.9%+9.1%+1.2%
Q3 2023+2.0%+5.3%+4.5%
Q2 2023+3.6%+1.1%-4.8%
Q1 2023+2.8%+4.3%+14.8%
Q4 2022+6.6%+8.3%+10.3%
Q3 2022+7.7%+10.8%+15.3%
Q2 2022+8.4%+5.6%+13.2%
Q1 2022-2.9%-3.8%-2.9%
Q4 2021+4.4%+2.5%+4.3%
Q3 2021-1.0%+0.1%+9.7%
Q2 2021+2.7%+1.6%+8.9%
Q1 2021-0.5%-0.7%+5.2%
Q4 2020-0.4%-12.0%-9.3%
Q3 2020+1.8%-8.1%+8.9%
Q2 2020-1.5%-3.1%+3.5%
Q1 2020+4.5%+12.8%+14.1%
Q4 2019-2.4%-1.0%+1.0%
Q3 2019+4.7%+6.4%+6.2%
Q2 2019+3.5%+7.2%-4.8%
Q1 2019+6.0%+12.5%+2.1%
Q4 2018-3.1%-0.9%+7.4%
Q3 2018+4.4%+3.8%+11.2%
Q2 2018+0.0%-4.1%+1.9%
Q1 2017-0.1%-0.6%+9.3%
Q1 2018-2.7%-2.5%+0.5%
Q4 2016+2.2%+0.9%-1.0%
Q4 2015+2.2%+0.9%-1.0%
Q4 2017+11.5%+18.2%+19.2%
Q3 2016+1.0%+1.5%+18.1%
Q3 2017+2.3%+2.9%+11.5%
Q2 2016-3.4%-0.5%-6.6%
Q2 2017+1.4%+1.7%+3.8%
Q1 2016
Q3 2015
Q2 2015
Q1 2015

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