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Dec 31, 2025
Esquire Financial Q4 2025 Earnings Report
Esquire Financial reported strong Q4 2025 results with higher net income and EPS driven by growth in commercial litigation loans and core deposits.
Key Takeaways
Esquire Financial delivered solid Q4 2025 results, with notable gains in net income and earnings per share, underpinned by strong growth in high-yielding commercial litigation loans and core deposits. Operating income remained steady despite increased credit provisions and noninterest expenses.
Net income rose to $13.5 million, or $1.55 per diluted share, despite higher provision for credit losses and expenses.
Net interest margin improved to 6.05% due to growth in commercial law firm lending.
Core deposit growth remained strong with $183.5 million added during the quarter.
Efficiency ratio was 48.4% even with continued investment in infrastructure and expansion.
Forward Guidance
Esquire expects continued success in 2026 supported by national expansion in the litigation and payments verticals, while remaining cautious about deposit and loan growth due to possible early year paydowns and disbursements.
Positive Outlook
- Strong commercial litigation loan pipeline expected to support future lending growth.
- National expansion supported by full-service LA branch and digital infrastructure.
- Core deposit growth expected to continue due to relationship banking focus.
- Technology investments aimed at enhancing client acquisition and service.
- Ample liquidity with $1.1B in additional available resources.
Challenges Ahead
- Portion of Q4 loan draws may be repaid early in 2026, tempering Q1 loan growth.
- Elevated escrow/IOLTA balances may be disbursed in early 2026, affecting Q1 deposit growth.
- Provision for credit losses expected to remain elevated due to rapid loan growth.
Historical Earnings Impact
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