Business
ESQUIRE FINANCIAL HOLDINGS, INC. REPORTS SECOND QUARTER 2024 RESULTS
National Litigation Platform Continues to Drive Strong Growth and Industry Leading Returns JERICHO, N.Y., July 25, 2024 /PRNewswire/ -- Esquire Financial
About this update from Esquire Financial Holdings, Inc.
[{"type":"text","content":"National Litigation Platform Continues to Drive Strong Growth and Industry Leading Returns\nJERICHO, N.Y., July 25, 2024 /PRNewswire/ -- Esquire Financial Holdings, Inc. (NASDAQ: ESQ) (the \"Company\"), the financial holding company for Esquire Bank, National Association (\"Esquire Bank\" or the \"Bank\"), (collectively \"Esquire\") today announced its operating results for the second quarter and year to date of 2024.\n\n\"In 2024, our focus on creating long-term stakeholder value continued as growth in low-cost core deposits from our national litigation platform was invested in higher yielding variable rate commercial loans and short-term agency mortgage-backed securities at the current peak in interest rates. As part of our ALCO process, management proactively increased the investment portfolio to approximately 15% of total assets (as compared to 12.5% at year-end), while simultaneously moderating multifamily and commercial real estate growth in 2024 due to the current economic and interest rate environment,\" stated Andrew C. Sagliocca, Vice Chairman, CEO, and President. \"As a result of these actions, interest earning assets, excluding cash and cash equivalents, increased $65.4 million, or 18% annualized, on a linked quarter basis and $104.5 million, or 15% annualized, from year-end 2023 while our net interest margin increased to 6.19% for the current quarter.\"\nSignificant achievements and key performance metrics during the current quarter and year to date of 2024 include:\nOn a linked quarter basis, net income increased $429 thousand or 4.3% to $10.5 million, or $1.25 per diluted share, as compared to $10.1 million, or $1.20 per diluted share. Net income increased $1.4 million or 15.1% from $9.1 million in the second quarter 2023, or $1.10 per diluted share.Consistent industry leading returns on average assets and equity of 2.58% and 20.16% for the current quarter, respectively, as compared to 2.59% and 20.14% on a linked quarter basis despite our continued investment in current resources for future growth. These returns were fueled by the continued expansion of our total revenue base to $30.6 million in the current quarter, led by a strong net interest margin of 6.19% (fueled by low-cost core deposit growth) as well as stable fee-based income.Total loan growth on a linked quarter basis was $32.8 million, or 11% annualize...