ES Bancshares, Inc. Announces First Quarter 2025 Results; Continues Positive Trend of Net Income and Net Interest Margin Expansion
STATEN ISLAND, N.Y., April 18, 2025 (GLOBE NEWSWIRE) -- ES Bancshares, Inc. (OTCQX: ESBS) (the "Company") the holding company for Empire State Bank, (the "Bank") today reported net income of $546 thousand, or $0.08 per diluted common share, for the quarter ended March 31, 2025, compared to a net income of $466 thousand, or $0.07 per diluted common share for the quarter ended December 31, 2024.
Key Quarterly Financial Data 2025 Highlights
---------------------------------------------------------------- -----------------------
-- The Cost of Funds
for the three months
ended March 31, 2025,
improved to 2.69% from
2.87% in the prior
linked quarter. -- For
3 months ended March
31, 2025, the Company's
net interest margin
increased to 2.68%
compared to 2.50% for
the 3 months ended
December 31, 2024. --
The Company sold $3
million in SBA 7a loan
during the quarter,
resulting in a gain on
loan sale. -- The
Company generated $236
thousand more in net
interest income from
the prior quarter. --
Book value for the
quarter ended March 31,
2025, totaled $6.97 per
share increasing for
Performance the fourth consecutive
Metrics 1Q25 4Q24 1Q24 quarter.
------------- -------------- -------------- ---------------
Return on
average
assets (%) 0.35 0.29 (0.07)
Return on
average
equity (%) 4.53 3.94 (0.90)
Return on
average
tangible
equity (%) 4.59 3.99 (0.91)
Net interest
margin (%) 2.68 2.50 2.12
Income
Statement
(a) 1Q25 4Q24 1Q24
------------- -------------- -------------- ---------------
Net interest
income $ 4,112 $ 3,876 $ 3,203
Non-interest
income $ 349 $ 372 $ 215
Net income $ 546 $ 466 $ (103)
Earnings per
diluted
common
share $ 0.08 $ 0.07 $ (0.02)
Balance Sheet
(a) 1Q25 4Q24 1Q24
------------- -------------- -------------- ---------------
Average total
loans $ 568,508 $ 566,031 $ 567,526
Average total
deposits $ 506,524 $ 512,925 $ 486,323
Book value
per share $ 6.97 $ 6.89 $ 6.75
Tangible book
value per
share $ 6.89 $ 6.81 $ 6.67
(a) In thousands except for
per share amounts
----------------------------- -------------- ----------------- -----------------------
Phil Guarnieri, Director, and Chief Executive Officer of ES Bancshares said, "The first quarter of 2025 showed continued growth in net income, which is a result of management's focus on interest rates and our containment of non-interest expenses. The recent turmoil in the market due to the uncertainty of tariffs is causing unforeseen challenges but our flexibility allows us to adapt to these changing economic conditions."
Selected Balance Sheet Information:
March 31, 2025 vs. December 31, 2024
As of March 31, 2025, total assets were $631.5 million, a decrease of $5.2 million, or 0.8%, as compared to total assets of $636.7 million on December 31, 2024. The decrease can be attributed to a slightly smaller loan portfolio.
Loans receivable, net of Allowance for Credit Losses on Loans totaled $561.4 million, an increase of 0.4% from December 31, 2024. As of March 31, 2025, the Allowance for Credit Losses on Loans as a percentage of gross loans was 0.91%.
Nonperforming assets, which includes nonaccrual loans and foreclosed real estate were $5.5 million or 0.86% of total assets, as of March 31, 2025, increasing from $5.3 million or 0.84% of total assets at December 31, 2024. The ratio of nonaccrual loans to loans receivable was 0.96%, as of March 31, 2025, and 0.94% for December 31, 2024. The increase from December 31, 2024, was primarily due to two commercial loans being placed on non-accrual status. One loan has a SBA guaranty and the other loan has a 50% loss sharing agreement.
Total liabilities decreased $6.0 million to $583.2 million at March 31, 2025, from $589.2 million at December 31, 2024. The decrease can be attributed to a decrease in core deposits partially offset by overnight Federal Home Loan (FHLB) borrowings and growth in brokered deposits. The reduction in deposits was driven by a decrease in interest-bearing deposits, specifically 1031 exchange accounts as those deposits are short-term in nature.
As of March 31, 2025, the Bank's Tier 1 capital leverage ratio, common equity tier 1 capital ratio, Tier 1 capital ratio and total capital ratios were 9.46%, 13.81%, 13.81% and 15.06%, respectively, all in excess of the ratios required to be deemed "well-capitalized." During the first quarter of 2025 the Company did not repurchase shares under its stock repurchase program. Book value per common share was $6.97 at March 31, 2025 compared to $6.89 at December 31, 2024. Tangible common book value per share (which represents common equity less goodwill, divided by the number of shares outstanding) was $6.89 at March 31, 2025 compared to $6.81 at December 31, 2024.
Financial Performance Overview:
Three Months Ended March 31, 2025, vs. December 31, 2024
For the three months ended March 31, 2025, the Company net income totaled $546 thousand compared to a net income of $466 thousand for the three months ended December 31, 2024. The increase can be attributed to higher net interest income partially offset by lower non-interest income and higher non-interest expenses, quarter over quarter.
Net interest income for the three months ended March 31, 2025, increased $236 thousand, to $4.1 million from $3.9 million at three months ended December 31, 2024. The Company's net interest margin widened by eighteen basis points to 2.68% for the three months ended March 31, 2025, as compared to 2.50% for the three months ended December 31, 2024. The increase in margin can be attributed to a reduction of 12 basis points in the Company's average cost for its interest-bearing liabilities.
There was a $30 thousand reversal for credit losses taken for the three months ended March 31, 2025, compared to a provision for credit losses of $2 thousand for the three months ended December 31, 2024. The reversal for credit losses was due to lower ACL for investments and off-balance sheet positions, partially offset by an increase in the ACL for loans.
Non-interest income decreased $23 thousand, to $349 thousand for the three months ended March 31, 2025, compared with non-interest income of $372 thousand for the three months ended December 31, 2024. The majority of the decreases can be attributed to lower service charges and fees and lower gain on loan sales.
Non-interest expenses totaled $3.7 million for the three months ended March 31, 2025, compared to $3.6 million for the three months ended December 31, 2024. The largest fluctuations quarter over quarter were due to a $88 thousand increase in professional fees, due to larger legal expenses, an increase in compensation and benefits due to additional hires, and increased advertising expenses, partially offset by $47 thousand decrease in other expenses.
About ES Bancshares Inc.
ES Bancshares, Inc. (the "Company") is incorporated under Maryland law and serves as the holding company for Empire State Bank (the "Bank"). The Company is subject to regulation by the Board of Governors of the Federal Reserve System while the Bank is primarily subject to regulation and supervision by the New York State Department of Financial Services. Currently, the Company does not transact any material business other than through the Bank, its subsidiary.
The Bank was organized under federal law in 2004 as a national bank regulated by the Office of the Comptroller of the Currency. The Bank's deposits are insured up to legal limits by the FDIC. In March 2009, the Bank converted its charter to a New York State commercial bank charter. The Bank's principal business is attracting commercial and retail deposits in New York and investing those deposits primarily in loans, consisting of commercial real estate loans, and other commercial loans including SBA and mortgage loans secured by one-to-four-family residences. In addition, the Bank invests in mortgage-backed securities, securities issued by the U.S. Government and agencies thereof, corporate securities and other investments permitted by applicable law and regulations.
We operate from our five Banking Center locations, a Loan Production Office and our Corporate Headquarters located in Staten Island, New York. The Company's website address is www.esbna.com. The Company's annual report, quarterly earnings releases and all press releases are available free of charge through its website, as soon as reasonably practicable.
Forward-Looking Statements
This release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. For this purpose, any statements contained in this release that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, words such as "may", "will", "expect", "believe", "anticipate", "estimate" or "continue" or comparable terminology, are intended to identify forward-looking statements. These statements by their nature involve substantial risks and uncertainties, and actual results may differ materially depending on a variety of factors, many of which are not within ES Bancshares, Inc's. control. The forward-looking statements included in this release are made only as of the date of this release. We have no intention, and do not assume any obligation, to update these forward-looking statements.
Investor Contact:
Peggy Edwards, Corporate Secretary
(845) 451-7825
ES Bancshares, Inc.
Consolidated Statements of Financial Condition
(in thousands)
March 31, December 31,
2025 2024
------------------- -----------
|----(unaudited)----|
Assets
Cash and cash equivalents $ 22,794 26,713
Securities, net 22,249 22,336
Loans receivable, net:
Real estate mortgage loans 542,524 545,569
Commercial and Lines of
Credit 19,617 14,418
Home Equity and Consumer Loans 386 398
Deferred costs 3,978 4,084
Allowance for Loan Credit
Losses (5,150) (5,137)
------------------- -----------
Total loans receivable,
net 561,355 559,330
Accrued interest receivable 2,641 2,628
Investment in restricted stock,
at cost 4,778 4,335
Goodwill 581 581
Bank premises and equipment, net 4,635 4,845
Repossessed assets - -
Right of use lease assets 5,677 5,894
Bank Owned Life Insurance 5,527 5,489
Other Assets 1,274 4,589
------------------- -----------
Total Assets $ 631,511 636,739
=================== ===========
Liabilities & Stockholders'
Equity
Non-Interest-Bearing Deposits 105,162 97,490
Interest-Bearing Deposits 369,660 395,593
Brokered Deposits 23,025 20,750
------------------- -----------
Total Deposits 497,847 513,833
Bond Issue, net of costs 11,797 11,787
Borrowed Money 59,898 50,083
Lease Liability 5,959 6,172
Other Liabilities 7,701 7,313
------------------- -----------
Total Liabilities 583,202 589,188
Stockholders' equity 48,309 47,551
------------------- -----------
Total liabilities and
stockholders' equity $ 631,511 636,739
=================== ===========
ES Bancshares, Inc.
Consolidated Statements of Income
(in thousands)
Three Months Ended
---------------------------------------------------------
December 31,
March 31, 2025 2024 March 31, 2024
--------------------- --------------- -----------------
|--------------(unaudited)--------------|
Interest income
Loans $ 7,478 $ 7,405 $ 7,208
Securities 213 224 115
Other
interest-earning
assets 243 373 263
Total Interest
Income 7,934 8,002 7,586
Interest expense
Deposits 3,118 3,436 3,585
Borrowings 704 690 798
Total Interest
Expense 3,822 4,126 4,383
---- --------- ---- --- ---------- ----------
Net
Interest
Income 4,112 3,876 3,203
(Rev)Prov for
Credit Losses (30) 2 39
Net Interest
Income after
(Rev)Prov for
Credit
Losses 4,142 3,874 3,164
Non-interest
income
Service charges
and fees 175 192 172
Gain on loan
sales 132 139 1
Gain on
extinguishment of
Sub-debt - - -
Other 42 41 42
---- --------- ---- --- ---------- ----------
Total
non-interest
income 349 372 215
Non-interest
expenses
Compensation and
benefits 1,689 1,662 1,721
Occupancy and
equipment 669 618 668
Data processing
service fees 315 295 326
Professional fees 335 247 181
FDIC & NYS
Banking
Assessments 113 132 97
Advertising 89 64 75
Insurance 53 56 50
Other 471 518 337
---- --------- ---- --- ---------- ----------
Total
non-interest
expense 3,734 3,592 3,455
---- --------- ---- --- ---------- ----------
Income
prior to
tax
expense 757 654 (76)
---- --------- ---- --- ---------- ----------
Income taxes 211 188 27
Net Income $ 546 $ 466 $ (103)
==== ========= ==== === ========== ==========
ES Bancshares, Inc.
Average Balance Sheet Data
For the Three Months Ended (dollars in thousands)
----------------------------------------------------------------------------------------------------------
March 31, 2025 December 31, 2024 September 30, 2024
---------------------------------- ---------------------------------- ----------------------------------
Avg Bal Interest Avg Bal Interest Avg Bal Interest
Rolling Rolling Average Rolling Rolling Average Rolling Rolling Average
Assets 3 Mos. 3 Mos. Yield/Cost 3 Mos. 3 Mos. Yield/Cost 3 Mos. 3 Mos. Yield/Cost
-------- ---------- ------------ -------- ---------- ------------ -------- ---------- ------------
Interest-earning assets:
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