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Esquire Financial Holdings, Inc. Reports Third Quarter 2019 Results

Esquire Financial Holdings, Inc. Reports Third Quarter 2019 Results

JERICHO, N.Y.Oct. 25, 2019 /PRNewswire/ — Esquire Financial Holdings, Inc. (ESQ) (the “Company”), the holding company for Esquire Bank, National Association (“Esquire Bank”), today announced its operating results for the three and nine months ended September 30, 2019.

Significant achievements during the quarter include:

  • Net income increased to $3.8 million, or $0.49 per diluted share, for the current quarter compared to net income of $3.5 million, or $0.45 per diluted share for the quarter ended June 30, 2019.
  • Returns on average assets and common equity were 2.01% and 14.58%, respectively, as compared to 1.89% and 14.04% for the trailing quarter ended June 30, 2019.
  • Supported by a strong net interest margin of 4.82%, net interest income for the third quarter increased $1.5 million, or 20%, to $8.7 million compared to the same period in 2018.
  • Total assets increased 19% annualized, or $95.8 million, to $759.7 million when compared to December 31, 2018.
  • Loans increased 19% annualized, or $65.8 million, from December 31, 2018, to $533.9 million, primarily driven by our higher yielding commercial loan portfolio.
  • Continued solid asset quality metrics with 0.20% in nonperforming loans to total loans and an allowance for loan losses to total loans of 1.26% at September 30, 2019.
  • Merchant services fees increased 153% to $3.3 million compared to the quarter ended September 30, 2018. Total fee income represented 28.4% of total revenue for the quarter.
  • Efficiency ratio improved to 54.0% for the third quarter of 2019 compared to 55.7% for the second quarter of 2019.
  • Deposits totaled $644.5 million, a $76.1 million, or 18% annualized increase from December 31, 2018 with a cost of funds of 0.44% (including demand deposits). This growth was driven by our litigation and merchant platforms.
  • Average demand deposits represent approximately 40% of our average total deposits for the three and nine months ended September 30, 2019.
  • Esquire Bank remains well above the bank regulatory “Well Capitalized” standards.

“Our lending and merchant platforms continue to grow, driving strong performance metrics despite the current interest rate environment and economic outlook,” stated Tony Coelho, Chairman of the Board. “We will continue to invest resources in both verticals.”

“We continue to experience strong growth in our litigation platform despite excess liquidity in the alternative litigation finance market,” stated Andrew C. Sagliocca, President and Chief Executive Officer.

Third Quarter Earnings

Net income for the quarter ended September 30, 2019 was $3.8 million, or $0.49 per diluted share, compared to $1.7 million, or $0.22 per diluted share for the same period in 2018. Returns on average assets and common equity for the current quarter were 2.01% and 14.58% compared to 1.07% and 7.66% for the same period of 2018. The prior year quarterly results included a one-time $859 thousand after tax compensation charge. Excluding this charge net income was $2.5 million, or $0.33 per diluted share in 2018. Returns on average assets and common equity were 1.62% and 11.57% excluding the compensation charge.

Net interest income for the third quarter of 2019 increased $1.5 million, or 20.2%, to $8.7 million, primarily due to growth in average interest earning assets totaling $113.0 million, or 18.6%, to $720.4 million when compared to the same period in 2018. Our net interest margin increased to 4.82% for the third quarter of 2019 compared to 4.75% in 2018. Average loans in the quarter increased $112.3 million, or 27.0%, to $528.3 million when compared to the third quarter of 2018. Loan growth was primarily driven by commercial loans representing organic growth funded with core deposits (total deposits excluding certificates of deposit). Core deposits represent 96.9% of total deposits at September 30, 2019 while our loan-to-deposit ratio was 82.8%.

The provision for loan losses was $425 thousand for the third quarter of 2019, a $25 thousand decrease from the comparable period in 2018. As of September 30, 2019, Esquire had nonperforming loans to total loans of 0.20%.

Noninterest income increased $1.7 million, or 93.1%, to $3.5 million for the third quarter of 2019 as compared to third quarter 2018. Our merchant services platform experienced strong growth, offset by decreased administrative service payment (“ASP”) fees on off-balance sheet funds. Merchant processing income increased $2.0 million or 152.6% compared to the third quarter of 2018. This increase was due to the expansion of our sales channels through independent sales organizations (“ISOs”), merchants and additional fee allocation arrangements as we continue to focus on prudently growing this source of stable fee income. Other noninterest income, consisting primarily of ASP fee income, declined by $309 thousand compared to the quarter ended September 30, 2018. Our ASP fee income is impacted by the volume and duration of off-balance sheet funds as well as short-term interest rates.

Noninterest expense increased $274 thousand, or 4.3%, to $6.6 million for the third quarter of 2019 as compared to the third quarter of 2018. Excluding the aforementioned one-time pretax compensation charge totaling $1.2 million, noninterest expense increased $1.4 million for the third quarter of 2019. This increase was driven by increases in employee compensation and benefits, professional and consulting services and data processing costs. Employee compensation and benefits costs increased due to an increase in the number of employees as well as the impact of year end salary increases. Professional and consulting costs increased due to our IT enterprise-wide architecture assessments and other pre-development IT costs. Data processing costs were higher due to increased processing volume primarily driven by our core banking platform as well as additional costs related to certain system implementations. The Company’s efficiency ratio continued to improve to 54.0% for the three months ended September 30, 2019 as compared to 56.8% for the same period ended 2018.

The effective tax rate for the third quarter of 2019 was approximately 27%. Year to Date Earnings Net income for the nine months ended September 30, 2019 was $10.3 million, or $1.32 per diluted share, compared to $5.9 million, or $0.76 per diluted share for the same period in 2018. Returns on average assets and common equity for the nine months ended September 30, 2019 were 1.90% and 13.86% compared to 1.35% and 9.19% for the same period of 2018. The prior year to date results included a one-time $859 thousand after tax compensation charge. Excluding this charge, net income was $6.7 million, or $0.87 per diluted share. Returns on average assets and common equity were 1.54% and 10.54% excluding the compensation charge. For the nine months ended September 30, 2019, net interest income increased $5.2 million, or 26.2%, to $25.3 million, primarily due to growth in average interest earning assets totaling $121.1 million, or 21.2%, to $691.9 million when compared to the same period in 2018. Our net interest margin increased to 4.88% for the nine months ended 2019 compared to 4.69% for the same period in 2018. Average loans for the nine months ended 2019 increased $118.1 million, or 31.0%, to $499.0 million. Loan growth was primarily driven by commercial loans which represents organic growth funded with core deposits. The provision for loan losses was $1.3 million for the nine months ended September 30, 2019$275 thousand higher than the comparable period in 2018. The higher provision is reflective of growth as well as the composition of the loan portfolio. Noninterest income increased $2.8 million, or 47.7%, to $8.6 million for the nine months ended 2019. Our merchant services platform experienced strong growth, offset by decreased ASP fees. Merchant processing income increased $4.5 million or 126.3% compared to the nine months ended 2018. This increase was due to the expansion of our sales channels through independent sales organizations (“ISOs”), merchants and additional fee allocation arrangements. Other noninterest income, consisting primarily of ASP fee income, declined by $1.7 million or 71.9% compared to the nine months ended September 30, 2018. Noninterest expense increased $1.7 million, or 10.1%, to $18.6 million for the nine months ended 2019 as compared to the nine months ended 2018. Excluding the aforementioned one-time pretax compensation charge totaling $1.2 million, noninterest expense increased $2.9 million for the third quarter of 2019 driven by an increase in compensation and benefits, data processing and professional and consulting services costs. Employee compensation and benefits costs increased due to an increase in the number of employees as well as the impact of year end salary increases. Data processing costs were higher due to increased processing volume primarily driven by our core banking platform as well as additional costs related to certain system implementations. Professional and consulting costs increased due to our IT enterprise-wide architecture assessments and other pre-development IT costs. The Company’s efficiency ratio continued to improve to 54.8% for the nine months ended September 30, 2019 as compared to 60.8% for the period ended 2018. The effective tax rate for the nine months ended 2019 was approximately 27%. Asset Quality Nonperforming assets, consisting of several nonaccrual consumer loans, totaled $1.1 million as of September 30, 2019. Nonperforming assets as a percentage of total assets was 0.14%. There were no nonperforming assets as of September 30, 2018. The allowance for loan losses was $6.7 million, or 1.26% of total loans, as compared to $5.2 million, or 1.19% of total loans at September 30, 2018. The increase in the allowance as a percentage of loans was primarily related to loan growth in the commercial, commercial real estate and consumer loan categories. Balance Sheet At September 30, 2019, total assets were $759.7 million, reflecting a $114.1 million, or 17.7% increase from September 30, 2018. This increase is attributable to increases in loans totaling $96.1 million, or 21.9%, to $533.9 million, primarily driven by commercial attorney related, commercial real estate and consumer loans, funded with core low-cost deposits. Total deposits were $644.5 million as of September 30, 2019, a $92.3 million, or 16.7% increase from September 30, 2018. This was primarily due to a $66.8 million, or 20.1% increase in Savings, NOW and Money Market deposits to $398.8 million and a $35.8 million, or 18.8% increase in noninterest bearing demand deposits to $225.7 million, offset by a decrease in time deposits of $10.3 million, or 33.9%, to $20.0 million. These increases were driven by commercial and escrow low-cost deposits from our litigation and merchant customers. Stockholders’ equity increased $18.4 million to $106.9 million at September 30, 2019 compared to September 30, 2018. Esquire Bank remains well above bank regulatory “Well Capitalized” standards. The Company anticipates continued earnings growth in 2019 driven by its lending pipelines as well as its merchant services fee income opportunities. About Esquire Financial Holdings, Inc. Esquire Financial Holdings, Inc. is a bank holding company headquartered in Jericho, New York, with one branch office in Jericho, New York and an administrative office in Boca Raton, Florida. Its wholly-owned subsidiary, Esquire Bank, National Association, is a full service commercial bank dedicated to serving the financial needs of the legal industry and small businesses nationally, as well as commercial and retail customers in the New York metropolitan area. The bank offers tailored products and solutions to the legal community and their clients as well as dynamic and flexible merchant services solutions to small business owners. For more information, visit www.esquirebank.com. Cautionary Note Regarding Forward-Looking Statements This press release includes “forward-looking statements” relating to future results of the Company. Forward-looking statements are subject to many risks and uncertainties, including, but not limited to: changes in business plans as circumstances warrant; changes in general economic, business and political conditions, including changes in the financial markets; and other risks detailed in the “Cautionary Note Regarding Forward-Looking Statements,” “Risk Factors” and other sections of the Company’s 10-K as filed with the Securities and Exchange Commission. The forward-looking statements included in this press release are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “might,” “should,” “could,” “predict,” “potential,” “believe,” “expect,” “attribute,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “goal,” “target,” “outlook,” “aim,” “would,” “annualized” and “outlook,” or similar terminology. Any forward-looking statements presented herein are made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise, except as may be required by law.

ESQUIRE FINANCIAL HOLDINGS, INC.

Condensed Consolidated Statement of Condition (unaudited)

(dollars in thousands except per share data)

September 30, 

December 31, 

September 30, 

2019

2018

2018

ASSETS

Cash and cash equivalents

$

61,676

$

30,562

$

39,840

Securities available for sale, at fair value

139,165

145,698

147,522

Securities, restricted at cost

2,665

2,583

2,403

Loans

533,949

468,101

437,883

Less: allowance for loan losses

(6,741)

(5,629)

(5,229)

Loans, net of allowance

527,208

462,472

432,654

Premises and equipment, net

2,872

2,694

2,616

Other assets

26,152

19,890

20,568

Total Assets

$

759,738

$

663,899

$

645,603

LIABILITIES AND STOCKHOLDERS’ EQUITY

Demand deposits

$

225,740

$

212,721

$

189,960

Savings, NOW and money market deposits

398,812

335,283

332,016

Certificates of deposit

19,959

20,417

30,215

Total deposits

644,511

568,421

552,191

Other liabilities

8,324

2,704

4,917

Total liabilities

652,835

571,125

557,108

Total stockholders’ equity

106,903

92,774

88,495

Total Liabilities and Stockholders’ Equity

$

759,738

$

663,899

$

645,603

Selected Financial Data 

Common shares outstanding

7,541,670

7,532,723

7,445,723

Book value per share

$

14.17

$

12.32

$

11.89

Equity to assets

14.07

%

13.97

%

13.71

%

Capital Ratios (1)

Tier 1 leverage ratio

13.11

%

13.26

%

13.40

%

Common equity tier 1 capital ratio

16.90

%

17.54

%

17.78

%

Tier 1 capital ratio

16.90

%

17.54

%

17.78

%

Total capital ratio

18.08

%

18.70

%

18.92

%

Asset Quality

Nonperforming loans  

$

1,076

$

$

Allowance for loan losses to total loans

1.26

%

1.20

%

1.19

%

Nonperforming loans to total loans

0.20

%

%

%

Nonperforming assets to total assets

0.14

%

%

%

Allowance/nonperforming loans

626.49

%

%

%

_______________

(1) Regulatory capital ratios presented on bank-only basis.

ESQUIRE FINANCIAL HOLDINGS, INC.

Condensed Consolidated Income Statement (unaudited)

(dollars in thousands except per share data)

Three months ended 

Nine months ended 

September 30, 

September 30, 

2019

2018

2019

2018

Interest income

$

9,498

$

7,620

$

27,303

$

20,754

Interest expense

751

344

2,044

741

Net interest income

8,747

7,276

25,259

20,013

Provision for loan losses

425

450

1,250

975

Net interest income after provision for loan losses

8,322

6,826

24,009

19,038

Noninterest income:

Merchant processing income

3,284

1,300

7,994

3,532

Other noninterest income

191

500

653

2,322

Total noninterest income

3,475

1,800

8,647

5,854

Noninterest expense:

Employee compensation and benefits

3,817

4,161

10,841

10,230

Other expenses

2,787

2,169

7,752

6,661

Total noninterest expense

6,604

6,330

18,593

16,891

Income before income taxes

5,193

2,296

14,063

8,001

Income taxes

1,376

614

3,793

2,140

Net income

$

3,817

$

1,682

$

10,270

$

5,861

Earnings Per Share

Basic

$

0.52

$

0.23

$

1.39

$

0.80

Diluted

$

0.49

$

0.22

$

1.32

$

0.76

Basic – adjusted (1)

$

0.52

$

0.34

$

1.39

$

0.91

Diluted – adjusted (1)

$

0.49

$

0.33

$

1.32

$

0.87

Selected Financial Data

Return on average assets

2.01

%

1.07

%

1.90

%

1.35

%

Return on average common equity

14.58

%

7.66

%

13.86

%

9.19

%

Adjusted return on average assets (1)

2.01

%

1.62

%

1.90

%

1.54

%

Adjusted return on average common equity (1)

14.58

%

11.57

%

13.86

%

10.54

%

Net interest margin

4.82

%

4.75

%

4.88

%

4.69

%

Efficiency ratio(2)

54.0

%

56.8

%

54.8

%

60.8

%

__________________

(1) Figures have been adjusted to exclude a $1.2 million one-time charge (pretax) related to the passing of the Company’s Executive Chairman in 2018. See non-GAAP reconciliation provided elsewhere herein.

(2) Efficiency ratio represents noninterest expenses divided by the sum of net interest income plus noninterest income. See non-GAAP reconciliation provided elsewhere herein addressing non-recurring charges.

ESQUIRE FINANCIAL HOLDINGS, INC.

Condensed Consolidated Average Balance Sheets and Average Yield/Cost (unaudited)

(dollars in thousands)

For the Three Months Ended September 30, 

2019

2018

Average

Average

Average

Average

Balance

Interest

Yield/Cost

Balance

Interest

Yield/Cost

INTEREST EARNING ASSETS

Loans

$

528,328

$

8,312

6.24

%

$

416,004

$

6,432

6.13

%

Securities, includes restricted stock

146,408

950

2.57

%

157,635

1,035

2.60

%

Interest earning cash

45,688

236

2.05

%

33,777

153

1.80

%

Total interest earning assets

720,424

9,498

5.23

%

607,416

7,620

4.98

%

NONINTEREST EARNING ASSETS

34,267

14,803

TOTAL AVERAGE ASSETS

$

754,691

$

622,219

INTEREST BEARING LIABILITIES

Savings, NOW, Money Markets

$

381,533

$

625

0.65

%

$

327,548

$

291

0.35

%

Time deposits

19,902

125

2.49

%

17,555

41

0.93

%

Total interest bearing deposits

401,435

750

0.74

%

345,103

332

0.38

%

Short-term borrowings

1

%

1,131

7

2.46

%

Secured borrowings

88

1

6.22

%

273

5

7.27

%

Total interest bearing liabilities

401,524

751

0.74

%

346,507

344

0.39

%

NONINTEREST BEARING LIABILITIES

Demand deposits

240,502

183,864

Other liabilities

8,785

4,708

Total noninterest bearing liabilities

249,287

188,572

Stockholders’ equity

103,880

87,140

TOTAL AVG. LIABILITIES AND EQUITY

$

754,691

$

622,219

Net interest income

$

8,747

$

7,276

Net interest spread

4.49

%

4.58

%

Net interest margin

4.82

%

4.75

%

ESQUIRE FINANCIAL HOLDINGS, INC.

Condensed Consolidated Average Balance Sheets and Average Yield/Cost (unaudited)

(dollars in thousands)

For the Nine Months Ended September 30, 

2019

2018

Average

Average

Average

Average

Balance

Interest

Yield/Cost

Balance

Interest

Yield/Cost

INTEREST EARNING ASSETS

Loans

$

498,989

$

23,524

6.30

%

$

380,918

$

17,378

6.10

%

Securities, includes restricted stock

151,557

3,073

2.71

%

149,556

2,906

2.60

%

Interest earning cash

41,326

706

2.28

%

40,249

470

1.56

%

Total interest earning assets

691,872

27,303

5.28

%

570,723

20,754

4.86

%

NONINTEREST EARNING ASSETS

30,281

11,556

TOTAL AVERAGE ASSETS

$

722,153

$

582,279

INTEREST BEARING LIABILITIES

Savings, NOW, Money Markets

$

356,812

$

1,665

0.62

%

$

281,768

$

580

0.28

%

Time deposits

20,034

375

2.50

%

27,126

140

0.69

%

Total interest bearing deposits

376,846

2,040

0.72

%

308,894

720

0.31

%

Short-term borrowings

1

%

382

6

2.10

%

Secured borrowings

88

4

6.08

%

275

15

7.29

%

Total interest bearing liabilities

376,935

2,044

0.73

%

309,551

741

0.32

%

NONINTEREST BEARING LIABILITIES

Demand deposits

238,485

184,382

Other liabilities

7,676

3,117

Total noninterest bearing liabilities

246,161

187,499

Stockholders’ equity

99,057

85,229

TOTAL AVG. LIABILITIES AND EQUITY

$

722,153

$

582,279

Net interest income

$

25,259

$

20,013

Net interest spread

4.55

%

4.54

%

Net interest margin

4.88

%

4.69

%

ESQUIRE FINANCIAL HOLDINGS, INC.

Condensed Consolidated Non-GAAP Financial Measure Reconciliation (unaudited) 

 (dollars in thousands except per share data)

Adjusted net income, which is used to compute adjusted return on average assets, adjusted return on average common equity and adjusted earnings per common share, excludes the impact of a one-time charge relating to compensation expense as a result of the passing of our Executive Chairman in 2018. 

We believe that these non-GAAP financial measures provide information that is important to investors and that is useful in understanding our financial position, results and ratios. However, these non-GAAP financial measures are supplemental and are not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for this measure, this presentation may not be comparable to other similarly titled measures by other companies.

The efficiency ratio is a non-GAAP measure of expense control relative to revenue. We calculate the efficiency ratio by dividing total noninterest expenses excluding non-recurring items by the sum of total net interest income and total noninterest income, each as determined under GAAP, but excluding net gains(losses) on securities and other non-recurring income sources, if applicable, from this calculation, which we refer to as recurring revenue. We believe that this provides one reasonable measure of recurring expenses relative to recurring revenue.

Three months ended 

Nine months ended 

September 30, 

September 30, 

2019

2018

2019

2018

Net income 

$

3,817

$

1,682

$

10,270

$

5,861

Add: compensation charge

1,173

1,173

Less: tax impact

314

314

Compensation charge, net

859

859

Adjusted net income

$

3,817

$

2,541

$

10,270

$

6,720

Return on average assets-GAAP

2.01

%

1.07

%

1.90

%

1.35

%

Add: compensation charge

0.00

%

0.55

%

0.00

%

0.19

%

Adjusted return on average assets

2.01

%

1.62

%

1.90

%

1.54

%

Return on average common equity-GAAP

14.58

%

7.66

%

13.86

%

9.19

%

Add: compensation charge

0.00

%

3.91

%

0.00

%

1.35

%

Adjusted return on average common equity

14.58

%

11.57

%

13.86

%

10.54

%

Diluted earnings per share-GAAP

$

0.49

$

0.22

$

1.32

$

0.76

Add: compensation charge

0.00

0.11

0.00

0.11

Adjusted diluted earnings per share

$

0.49

$

0.33

$

1.32

$

0.87

Efficiency Ratio 

Net interest income

$

8,747

$

7,276

$

25,259

$

20,013

Noninterest income

3,475

1,800

8,647

5,854

Recurring revenue

$

12,222

$

9,076

$

33,906

$

25,867

Total noninterest expense

$

6,604

$

6,330

$

18,593

$

16,891

Less: compensation charge

1,173

1,173

Recurring noninterest expense

$

6,604

$

5,157

$

18,593

$

15,718

Efficiency ratio

54.0

%

56.8

%

54.8

%

60.8

%

SOURCE Esquire Financial Holdings, Inc.
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About Bryant Park Capital

Bryant Park Capital is an investment bank providing capital raising, M&A and corporate finance advisory services to emerging growth and middle market public and private companies. BPC has deep expertise and a diversified, well-founded breadth of experience in a number of sectors, including specialty finance & financial services. BPC has raised various forms of credit, growth equity, and assisted in mergers and acquisitions for its clients. Our professionals have completed more than 400 assignments representing an aggregate transaction value of over $30 billion.

For more information about Bryant Park Capital, please visit www.bryantparkcapital.com.

Therium Capital Advisors Launched to Provide Litigation Finance Advisory Services

By John Freund |

Therium Capital Advisors (TCA) announced today the launch of its independent advisory services business dedicated to helping claimants, law firms and corporates to source, structure and secure litigation finance. TCA offers end-to-end support including funding strategy, investor engagement, financial modelling, deal structuring, ongoing case management and secondary market advisory. Based in London, the firm is advising on deals in the UK, continental Europe and Australia.

Therium Capital Advisors is led by litigation funding pioneer Neil Purslow and co-founded by investment banker Harry Stockdale. Neil has over 16 years of experience in litigation finance, raising capital and investing worldwide across all forms of litigation finance from single cases funding through to portfolio, corporate and law firm funding arrangements. Harry was previously head of UK M&A at investment bank Haitong with twenty years of experience in investment banking, advising law firms and litigation funders on complex financial transactions.  

TCA is the first advisory firm to provide clients with advisory services that are backed by a deep understanding of litigation finance investing coupled with the financial and transactional expertise of investment banking. Therium Capital Advisors bridges the gap between claimants, law firms and corporates on the one side and existing and new sources of institutional capital on the other.  Through the combined expertise of its founders, TCA opens up the investor universe that is available to clients and drives quality in the investment propositions, efficiency in the funding process and competition in the funding market.

TCA exclusively advises claimants, law firms and corporates, ensuring that it remains conflict-free.  The firm advises across the full range of legal assets including single case and portfolio funding, law firm financing, financing options for corporates and existing portfolios of legal assets.   

Neil Purslow, co-founder and Managing Partner of Therium Capital Advisors said: “We are at a pivotal moment in the development of the legal finance industry, given the relative paucity of traditional funding capital available.  However, we are seeing a shift towards new categories of investors in legal assets who want exposure to this uncorrelated asset class. By leveraging our unrivalled experience across both litigation funding and investment banking, we are assisting our clients to navigate this landscape with confidence, speed and understanding, and we provide them with access to a broader set of funding options and to meet their funding needs efficiently and cost effectively.”

Harry Stockdale, co-founder and Partner of Therium Capital Advisors said: “We are bringing an investment banking mind set to the litigation funding world which has developed largely without the benefit of specialist advisors. This professionalisation of the funding process will make the sector more efficient and accessible to a wider audience of investors in addition to the traditional litigation funders. We are already seeing the benefit of this, for both clients and investors alike, and is part of the maturing of litigation finance as an asset class.”

Therium Capital Advisors provides the following services to claimants, law firms and corporates:

  • Deal Preparation: Preparing funding propositions to be investment-ready.
  • Capital Sourcing: Identifying and engaging with suitable funders and capital providers from across the spectrum of legal assets investors.
  • Financial Modelling and Analysis: Providing robust financial modelling and scenario analysis to evaluate deal structures and model returns.
  • Investor Materials and Outreach: Advising on the preparation of investor-facing materials and documentation, inserting rigour and discipline to ensure efficiency in the funding process.
  • Co-Funding: Advising on the identification and engagement of potential co-investors to optimise risk-sharing and capital raising.
  • Negotiating Funding Terms: Leading negotiations with investors to secure terms which balance commercial viability with the interests of the funded party.
  • Deal Structuring and Documentation: Advising on deal structures and overseeing the drafting and execution of all relevant documentation.
  • Post-Funding Case Management: Providing ongoing monitoring, reporting, and servicing support post-funding on behalf of the claimant, to manage risks and support positive case outcomes.
  • Secondary Market Advisory: Advising on secondary transactions of existing legal assets including sub-funding arrangements and exits.

More information can be found at: www.therium.com/theriumcapitaladvisors

Gryphon Law Launches as Contingency-Fee Firm for International Disputes

By John Freund |

A new player is entering the international disputes arena—this time with a distinct twist on legal funding. Gryphon Law has officially launched as the first law firm globally to specialize in contingency-fee representation for cross-border disputes.

Gryphon Law aims to offer an alternative to third-party litigation funding by shouldering the cost of legal claims in return for a share of the outcome. Based in New York and with plans to expand into London and Miami, the firm targets clients who might otherwise turn to traditional funders, offering instead to partner with them directly through performance-based fee structures.

The firm was founded by John Templeman, a seasoned international disputes attorney qualified in New York, England & Wales, and Australia, who previously held roles at leading global law firms. Templeman has assembled a multilingual team capable of handling the full lifecycle of international litigation and arbitration in English, Spanish, and French—from initiation to enforcement. Co-founding the venture is Daura Dutour, an 18-year disputes veteran with experience in the U.S., France, and Haiti, supported by three additional associates.

Templeman stated: "I believe there's a real opportunity in the market to provide clients with an appealing alternative to third party funding, particularly in the sub-US$30 million value range below where many of the funders operate. I've been fortunate to assemble a world-class team of disputes lawyers who share this vision – we're looking forward to contributing to this rapidly evolving field.”

Gryphon Law’s business model suggests a more vertically integrated approach to litigation finance—embedding the funder role within the law firm itself. For clients, this could mean greater alignment of interests, fewer intermediaries, and possibly reduced costs when compared to traditional third-party funding arrangements.