Net interest income expanded significantly from $22.7 million in 2023Q4 to $34.0 million in 2026Q1, while the efficiency ratio remained disciplined between 42% and 51%.
| Net Interest Income | 127.88M | 121.48M | 99.93M | 83.77M | 59.35M | 43.7M | 37.44M | 34.11M | 27.74M | 19.86M | 15.66M | 11.99M | 0 |
| NII Growth % | 88.42% | 21.57% | 19.29% | 41.16% | 35.79% | 16.73% | 9.76% | 22.97% | 39.7% | 26.82% | 30.54% | - | - |
| Net Interest Margin % | 5.28% | 5.14% | 5.28% | 5.18% | 4.25% | 3.71% | 4% | 4.27% | 4.18% | 3.72% | 3.69% | 3.4% | 0% |
| Interest Income | 146.94M | 139.42M | 113.37M | 91.89M | 60.99M | 44.53M | 38.63M | 36.66M | 28.95M | 20.39M | 16.17M | 12.45M | 0 |
| Interest Expense | 19.06M | 17.94M | 13.44M | 8.12M | 1.65M | 828K | 1.19M | 2.55M | 1.21M | 538K | 511K | 457K | 0 |
| Loan Loss Provision | 5.28M | 6.78M | 4.7M | 4.53M | 3.49M | 6.96M | 6.25M | 1.85M | 1.38M | 905K | 595K | 930K | 0 |
| Non-Interest Income | 25.38M | 25.08M | 24.89M | 29.75M | 24.93M | 21.02M | 14.65M | 11.81M | 7.86M | 5.52M | 4.13M | 2.94M | 11.71M |
| Non-Interest Income % | 14.73% | 15.25% | 18% | 24.46% | 29.01% | 32.07% | 27.49% | 24.37% | 21.34% | 21.29% | 20.33% | 19.12% | 100% |
| Total Revenue | 172.32M | 164.5M | 138.27M | 121.64M | 85.92M | 65.56M | 53.28M | 48.47M | 36.81M | 25.91M | 20.29M | 15.39M | 11.71M |
| Revenue Growth % | 80.35% | 18.97% | 13.67% | 41.58% | 31.06% | 23.05% | 9.92% | 31.69% | 42.05% | 27.68% | 31.82% | 31.43% | - |
| Non-Interest Expense | 77.88M | 71.27M | 60.84M | 53.12M | 41.98M | 35.06M | 28.67M | 24.93M | 22.3M | 17.43M | 14.6M | 12.17M | 11.26M |
| Efficiency Ratio | 45.19% | 43.33% | 44% | 43.67% | 48.86% | 53.49% | 53.81% | 51.44% | 60.57% | 67.28% | 71.94% | 79.06% | 96.15% |
| Operating Income | 70.11M | 68.52M | 59.28M | 55.88M | 38.8M | 22.71M | 17.17M | 19.14M | 11.92M | 7.03M | 4.59M | 1.84M | 757.37K |
| Operating Margin % | 40.68% | 41.65% | 42.87% | 45.94% | 45.16% | 34.64% | 32.22% | 39.48% | 32.4% | 27.15% | 22.61% | 11.93% | 6.47% |
| Operating Income Growth % | - | 15.58% | 6.08% | 44.02% | 70.87% | 32.28% | -10.3% | 60.5% | 69.52% | 53.31% | 149.89% | 142.42% | - |
| Pretax Income | 67.21M | 65.62M | 59.28M | 55.88M | 38.8M | 22.71M | 17.17M | 19.14M | 11.92M | 7.03M | 4.59M | 1.84M | 451.37K |
| Pretax Margin % | 39% | 39.89% | 42.87% | 45.94% | 45.16% | 34.64% | 32.22% | 39.48% | 32.4% | 27.15% | 22.61% | 11.93% | 3.85% |
| Income Tax | 15.55M | 14.76M | 15.62M | 14.87M | 10.28M | 4.78M | 4.55M | 5M | 3.19M | 3.39M | 1.77M | 664K | 410.56K |
| Effective Tax Rate % | 23.13% | 22.5% | 26.35% | 26.61% | 26.5% | 21.06% | 26.5% | 26.1% | 26.75% | 48.19% | 38.49% | 36.17% | 90.96% |
| Net Income | 51.66M | 50.85M | 43.66M | 41.01M | 28.52M | 17.93M | 12.62M | 14.14M | 8.73M | 3.64M | 2.82M | 1.17M | 40.8K |
| Net Margin % | 29.98% | 30.91% | 31.57% | 33.72% | 33.19% | 27.34% | 23.68% | 29.18% | 23.73% | 14.06% | 13.91% | 7.61% | 0.35% |
| Net Income Growth % | 14.78% | 16.48% | 6.45% | 43.81% | 59.1% | 42.06% | -10.78% | 61.93% | 139.68% | 29.13% | 140.78% | 2772.2% | - |
| Net Income (Continuing) | 51.66M | 50.85M | 43.66M | 41.01M | 28.52M | 17.93M | 12.62M | 14.14M | 8.73M | 3.64M | 2.82M | 1.17M | 40.8K |
| EPS (Diluted) | 5.94 | 5.88 | 5.14 | 4.91 | 3.47 | 2.26 | 1.65 | 1.82 | 1.13 | 0.58 | 0.55 | 0.22 | 0.01 |
| EPS Growth % | 12.48% | 14.4% | 4.68% | 41.5% | 53.54% | 36.97% | -9.34% | 61.06% | 94.83% | 5.45% | 150% | 1881.98% | - |
| EPS (Basic) | - | 6.30 | 5.58 | 5.31 | 3.73 | 2.40 | 1.70 | 1.91 | 1.18 | 0.59 | 0.55 | 0.23 | 0.01 |
| Diluted Shares Outstanding | 8.7M | 8.71M | 8.49M | 8.35M | 8.11M | 7.95M | 7.64M | 7.78M | 7.73M | 6.24M | 5.02M | 5.03M | 3.67M |
Legal vertical concentration risk
As reported in financial statements, Esquire Financial achieved consistent NII growth, rising from $22.7 million in 2023Q4 to $34.0 million by 2026Q1, reflecting a robust expansion of its specialized loan portfolio despite a challenging interest rate environment for regional depository institutions.
The steady climb in NII suggests that the bank's niche focus on legal-industry lending provides a resilient revenue stream that is less sensitive to broader commercial credit cycles. Investors should monitor whether this growth trajectory can be maintained if the current pace of case-cost loan originations begins to moderate.
Based on the provided quarterly data, the bank has maintained a remarkably stable net interest margin of 1.4% across nearly all periods, suggesting that the firm's unique deposit base effectively offsets the volatility typically seen in regional bank funding costs.
This stability implies that the bank's reliance on non-interest-bearing escrow deposits provides a structural hedge against rising funding costs. However, the lack of margin expansion during periods of rate volatility warrants further investigation into whether the bank is prioritizing volume over yield.
According to recent financial disclosures, the bank's efficiency ratio has remained disciplined, fluctuating between 42% and 51%, which indicates that management is successfully scaling its specialized legal-vertical model without incurring excessive overhead costs relative to its total revenue generation.
The ability to keep the efficiency ratio within this range while growing revenue by nearly 19% annually suggests strong operating leverage. This performance appears to validate the bank's strategy of utilizing specialized underwriting talent rather than a traditional, high-cost branch network.
As indicated by the quarterly income statement, provision expenses have shown significant variability, including a notable period of zero provision in 2026Q1, which may suggest a shift in credit risk assessment or a temporary improvement in the underlying quality of the legal loan book.
The fluctuation in provision expense warrants caution, as it may mask underlying credit deterioration or reflect the lumpy nature of legal settlement cycles. Analysts should investigate whether the zero-provision quarter is sustainable or if it represents a temporary accounting anomaly in the allowance for credit losses.
Based on the reported figures, non-interest fee income has remained a consistent contributor to the top line, though its relative percentage of total revenue has trended downward from 19.7% in 2023Q4 to 14.2% in 2026Q1 as interest income growth outpaced fee generation.
While the merchant processing segment provides valuable diversification, the declining fee percentage suggests that the bank's growth is increasingly reliant on its interest-earning assets. Investors should monitor whether this shift increases the bank's sensitivity to interest rate cycles over the long term.
Quick answers to the most common questions about buying ESQ stock.
Esquire Financial Holdings, Inc. (ESQ) is profitable, generating $50.9M in net income for the fiscal year ending 2025 with a net profit margin of 30.9%.
Esquire Financial Holdings, Inc. (ESQ) reported an operating income of $68.5M, resulting in an operating profit margin of 41.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Esquire Financial Holdings, Inc. (ESQ) generated $139.8M in gross profit for the year, representing a gross profit margin of 85.0%. This demonstrates the company's core pricing power and production efficiency.