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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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New Burford Capital Research Reveals Significant Opportunities for Businesses Through Patent Monetization

By Harry Moran |

Burford Capital, the leading global finance and asset management firm focused on law, today releases new research on patent monetization, a means for businesses with significant intellectual property to generate revenue from patent assets through licensing, direct enforcement and corporate divestitures. With high research and development costs, long development timelines and intense IP competition, CFOs and GCs are faced with the challenge of seeking greater value from their companies' patent portfolios without diverting capital from core business operations. Moreover, converting underutilized intellectual property into liquid assets enables companies to fuel ongoing innovation and drive future growth.

Despite substantial investments in securing and maintaining patents, many companies fall short in leveraging their intellectual property—resulting in missed financial opportunities and ongoing costs that could otherwise be offset through monetization. This research shows companies shifting to a more proactive stance toward patent monetization as they face mounting economic pressures, rising costs of maintaining large patent portfolios and headline-generating enforcements and divestitures by major brands that increase acceptance. Nearly 70% of in-house lawyers say their organizations are more likely to monetize patents today than a decade ago, and 73% report that patent monetization revenue has grown over the last 10 years.

"Patent monetization remains a significantly underutilized asset for many businesses," said Christopher Bogart, CEO of Burford Capital. "Companies frequently hold valuable patents that require substantial investment to enforce, incurring significant expense—risk we routinely finance for clients. In today's climate of intensifying global competition and rapidly evolving IP enforcement landscapes, legal finance empowers companies to strengthen their patent monetization strategies and take a more proactive, value-driven approach to IP management."

"Companies have a significant opportunity to unlock value from their intellectual property," said Katharine Wolanyk, Managing Director at Burford Capital and head of its intellectual property and patent litigation finance division. "In conversations with CFOs and general counsel across industries, we frequently hear that patent portfolios are viewed as cost centers rather than assets, and this research substantiates that assertion. Legal finance offers a powerful solution by transforming underutilized IP assets into a source of liquidity that can fuel business priorities and allow companies to continue the essential cycle of innovation."

Key findings from the study include:

  • Companies are missing revenue opportunities: Even as patent monetization is increasing, 79% of in-house lawyers say that more than a quarter of their patent portfolio is underutilized. The costs of maintaining patents without monetization include lost revenue, delayed market entry and reduced market share.
  • Revenue generated by patent monetization is growing: 73% of in-house lawyers report that revenue from patent monetization has increased over the last 10 years and 69% of in-house lawyers say their organizations have become more likely to monetize patents in the past decade.
  • Divestiture is a fast-growing monetization strategy: 71% of in-house lawyers have already divested patents or are actively exploring divestiture options.
  • Clients can de-risk direct enforcement with finance: 72% of law firm lawyers cite the high cost of litigation as a deterrent to clients pursuing meritorious patent claims.
  • Legal finance plays a growing role in patent monetization: 59% of law firm lawyers say clients use legal finance for patent monetization; 51% of in-house lawyers say they are actively planning or exploring the use of legal finance to support patent enforcement and monetization going forward.
  • Global patent monetization is active: The US remains the top market for patent monetization due to strong enforcement mechanisms. The Unified Patent Court (UPC) is driving change in Europe, with 74% of in-house lawyers expecting increased enforcement in the region.

This research, commissioned by Burford and conducted by GLG, captures insights from 300 in-house IP counsel and law firm partners involved in patent litigation in North America, Europe and Asia.

The research report can be downloaded on Burford's website.

About Burford Capital

Burford Capital is the leading global finance and asset management firm focused on law. Its businesses include litigation finance and risk management, asset recovery, and a wide range of legal finance and advisory activities. Burford is publicly traded on the New York Stock Exchange (NYSE: BUR) and the London Stock Exchange (LSE: BUR), and works with companies and law firms around the world from its global network of offices.

For more information, please visit www.burfordcapital.com.

This announcement does not constitute an offer to sell or the solicitation of an offer to buy any ordinary shares or other securities of Burford.

Court House Capital Appoints New CEO as Michelle Silvers Moves into Chairman Role

By Harry Moran |

Court House Capital is pleased to announce the appointment of Matt Hourn as its new Chief Executive Officer, effective 14 April 2025. This strategic leadership transition marks an exciting new chapter for the company as Michelle Silvers, who has served as CEO since 2020, steps into the role of Chairman of the Board. 

Michelle Silvers has been instrumental in Court House Capital’s growth, innovation, and performance since its inception. Her move into the Chairman position reflects the company's ongoing commitment to visionary leadership and long-term success. 

"Leading Court House Capital has been an incredible journey, and I am proud of what we've built. I look forward to continuing to support the company's future in a strategic capacity as Chairman." Michelle Silvers, Chairman, Court House Capital 

Incoming CEO Matt Hourn brings over 25 years of experience in commercial litigation and is cofounder of Court House Capital. His strong commercial insight and legal expertise, leadership capabilities, and innovative vision make him well-suited to drive the next phase of growth. 

"I am honoured to step into the role of CEO and build on the strong foundation Michelle has established," Matt Hourn, Chief Executive Officer, Court House Capital. 

This transition underscores the firm’s commitment to continuity and strategic evolution, positioning Court House Capital for sustained success. 

ABOUT COURT HOUSE CAPITAL 

Court House Capital is a leading litigation funder focused on cases in Australia and New Zealand. Led by industry founders, with Australian based capital, the team is renowned for expertise, agility and collaboration. courthousecapital.com.au 

IQuote Limited Strengthens Senior Leadership Team with New Director Appointment

By Harry Moran |

Manchester-based litigation finance firm IQuote Limited has bolstered its senior leadership team with the appointment of a new Director of Campaigns, reinforcing its commitment to expansion and innovation in the sector.

Stepping into the role is Katie Doherty, an experienced litigation finance specialist with a track record of driving growth and operational success. 

She has held senior positions at various law firms prior and has worked alongside IQuote CEO Craig Cornick for over 15 years across multiple roles.

Katie said she was both delighted and grateful for the opportunity and expressed a keen desire to get started as soon as possible. 

“It’s an incredibly exciting time for IQuote as we continue expanding our legal tech partnerships and investing in new opportunities,” Katie said.  “This is a fast-moving industry, and I’m looking forward to leading campaigns that will drive the firm’s next stage of growth.

“I can’t wait to get stuck in. IQuote has evolved massively in respect of its business offerings, the firms we are investing in, and the different campaigns we are now exploring. You have to be constantly thinking on your feet; there’s never a dull moment.”

Originally aspiring to become a solicitor, Doherty began her career in legal administration before transitioning into finance and business strategy.  She first collaborated with Craig in 2010, playing a key role in business operations, asset management, and claims handling. 

Katie thanked her team at IQuote for all their help and support.

“They have all been fantastic, and I have so much admiration for Craig,” she said.

“For him nothing is impossible; if you say, ‘it can’t be done,’ he will immediately tell you that it can and how you can make it happen.”

Craig Cornick, CEO of IQuote Limited, said: “Katie has been instrumental in the success of multiple businesses I’ve led, and her ability to think strategically while keeping operations running smoothly is unmatched.

“She knows how to build and execute campaigns that deliver real results, and that’s exactly what we need as we continue to scale. Her expertise in litigation finance, combined with her hands-on leadership style, makes her a perfect fit for this role.

“She’s got an incredible work ethic also. From the very start, Katie has always been willing to roll up her sleeves and do whatever it takes to get the job done. 

“Whether it was managing complex operations or jumping in to solve unexpected challenges, she’s always been a problem-solver. That kind of determination is what sets her apart and why I’m confident she’ll drive real impact in this position.”