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Sep 30, 2020
Esquire Financial Q3 2020 Earnings Report
Net income increased and loans and deposits experienced growth.
Key Takeaways
Esquire Financial Holdings reported a net income of $3.6 million, or $0.48 per diluted share, for the third quarter of 2020. The company saw strong loan and deposit growth, as well as record merchant payment processing income. They also launched a new digital platform.
Net income increased $1.1 million, or 42%, to $3.6 million compared to the linked quarter.
Loans increased $42.0 million, or 28% annualized, to $635.7 million.
Deposits increased $20.6 million, or 11.3% annualized, to $745.5 million.
Merchant fee income from payment processing platform increased 31% to $3.7 million on a linked quarter basis.
Esquire Financial
Esquire Financial
Forward Guidance
Company believes that coupling merchant payment processing platform with newly enhanced digital platforms and new hires, including the Chief Banking and Revenue Officer, should significantly enhance growth prospects in 2021 and beyond.
Challenges Ahead
- Demand for products and services may decline.
- Loan delinquencies, problem assets, and foreclosures may increase.
- Collateral for loans, especially real estate, may decline in value.
- Allowance for loan losses may increase if borrowers experience financial difficulties.
- Cyber security risks are increased as the result of an increase in the number of employees working remotely.