Esquire Financial Holdings Q2 net income up 13% to $11.9mln.

• Net income up 13% to $11.9mln, $1.38 per diluted share in Q2 2025. • Strong growth in low-cost core deposits and commercial loans nationally. • Provision for credit losses increased $2.5mln. • Earnings and performance metrics lead the industry.

Esquire Financial Holdings, Inc. (NASDAQ: ESQ) reported robust financial results for the second quarter of 2025, demonstrating continued growth and strong performance metrics across its operations. The company's net income increased by 13% to $11.9 million, or $1.38 per diluted share, compared to $10.5 million, or $1.25 per diluted share, in the same period last year [2].

A significant driver of the company's performance was the strong growth in low-cost core deposits and commercial loans. Core deposits increased by $94.2 million, or 22% annualized, to $1.78 billion, while commercial loan growth totaled $78.7 million, or 22% annualized, to $1.49 billion [2]. These increases were fueled by the successful deployment of low-cost core deposits into higher-yielding commercial loans, which expanded the company's net interest margin to 6.03% [2].

Despite the growth in earnings, the provision for credit losses increased by $2.5 million to $3.5 million, primarily due to a $3.3 million charge-off on a small business-related commercial loan [2]. This loan, previously reported as criticized, was placed on nonaccrual and is uncorrelated to the company's primary commercial litigation lending platform [2].

The company's financial performance is underpinned by a strong capital foundation, with common equity tier 1 (CET1) and tangible common equity to tangible assets (TCE/TA) ratios of 14.89% and 12.79%, respectively. Esquire Bank remains well above the bank regulatory "Well Capitalized" standards [2].

Esquire Financial Holdings' earnings and performance metrics have consistently led the industry, as evidenced by its inclusion in the Keefe, Bruyette & Woods (KBW) Bank Honor Roll for the second consecutive year and recognition by the Association of National Advertisers (ANA) B2 Awards for the third consecutive year [2].

References:
[1] https://www.nasdaq.com/articles/first-bank-reports-second-quarter-2025-results-decrease-net-income-and-continued-growth
[2] https://www.prnewswire.com/news-releases/esquire-financial-holdings-inc-reports-second-quarter-2025-results-302512596.html