STATEN ISLAND, N.Y., Oct. 22, 2025 (GLOBE NEWSWIRE) -- ES Bancshares, Inc. (OTCQX: ESBS) (the "Company") the holding company for Empire State Bank, (the "Bank") today reported net income of $637 thousand, or $0.10 per diluted common share, for the quarter ended September 30, 2025, compared to a net income of $1.03 million, or $0.15 per diluted common share for the quarter ended June 30, 2025.
Key Quarterly
Financial Data 2025 Highlights
-- Non
interest-bearing
deposits grew by
$6.8 million from
year end 2024. --
The Cost of Funds
for the three
months ended
September 30,
2025, dropped to
2.65% from 2.72%
in the prior
linked quarter. --
For 3 months ended
September 30,
2025, the
Company's net
interest margin
increased to 2.79%
compared to 2.66%
for the 3 months
ended June 30,
2025. -- The
Company received
$384K in Employee
Retention Tax
Credits and
applicable
interest in the
second quarter of
2025. -- Book
value for the
quarter ended
September 30,
2025, totaled
$7.24 per share
increasing for the
sixth consecutive
Performance Metrics 3Q25 2Q25 1Q25 quarter.
Return on average
assets (%) 0.41 0.66 0.35
Return on average
equity (%) 5.12 8.44 4.53
Return on average
tangible equity
(%) 5.18 8.55 4.59
Net interest margin
(%) 2.79 2.66 2.68
Income Statement (a) 3Q25 2Q25 1Q25
Net interest income $ 4,236 $ 4,019 $ 4,112
Non-interest income $ 328 $ 1,120 $ 349
Net income $ 637 $ 1,034 $ 546
Earnings per diluted
common share $ 0.10 $ 0.15 $ 0.08
Balance Sheet (a) 3Q25 2Q25 1Q25
Average total loans $558,270 $557,878 $568,508
Average total
deposits $509,511 $508,496 $506,524
Book value per share $ 7.24 $ 7.13 $ 6.97
Tangible book value
per share $ 7.15 $ 7.05 $ 6.89
(a) In thousands except for per share amounts
Phil Guarnieri, Director, and Chief Executive Officer of ES Bancshares said "The third quarter of 2025 showed continued improvement in our net interest income and our net interest margin. Our concentration in attracting non-interest-bearing deposits and our reduction in borrowings has helped to increase our core earnings."
Selected Balance Sheet Information:
September 30, 2025 vs. December 31, 2024
As of September 30, 2025, total assets were $621.0 million, a decrease of $15.7 million, or 2.5%, as compared to total assets of $636.7 million on December 31, 2024. The decrease can be attributed to our reducing our borrowed funds and interest-bearing deposits.
Loans receivable, net of Allowance for Credit Losses on Loans totaled $552.9 million, a decrease of $6.4 million or 1.3% from December 31, 2024. As of September 30, 2025, the Allowance for Credit Losses on Loans as a percentage of gross loans was 0.93%.
Nonperforming assets, which includes nonaccrual loans and foreclosed real estate were $6.1 million or 0.98% of total assets, as of September 30, 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 1.09%, as of September 30, 2025, and 0.94% for December 31, 2024. The increase from December 31, 2024, was primarily due to one non-owner occupied commercial real estate loan being placed on non-accrual status in a prior 2025 quarter.
Total liabilities decreased $18.3 million to $570.9 million at September 30, 2025, from $589.2 million at December 31, 2024. The decrease can be attributed to a decrease in Federal Home Loan (FHLB) borrowings, interest-bearing deposits and in brokered deposits partially offset by an increase in non-interest-bearing deposits.
As of September 30, 2025, the Bank's Tier 1 capital leverage ratio, common equity tier 1 capital ratio, Tier 1 capital ratio and total capital ratios were 9.91%, 14.51%, 14.51% and 15.76% respectively, all in excess of the ratios required to be deemed "well-capitalized." During the third quarter of 2025 the Company did not repurchase shares under its stock repurchase program. Book value per common share was $7.24 at September 30, 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 $7.15 at September 30, 2025, compared to $6.81 at December 31, 2024.
Financial Performance Overview:
Three Months Ended September 30, 2025, vs. June 30, 2025
For the three months ended September 30, 2025, the Company net income totaled $637 thousand compared to a net income of $1.0 million for the three months ended June 30, 2025. The decrease can be attributed to lower non-interest income partially offset by higher net interest income and a lower loan loss provision quarter over quarter.
Net interest income for the three months ended September 30, 2025 increased $217 thousand, to $4.2 million from $4.0 million at three months ended June 30, 2025. The Company's net interest margin increased by thirteen basis points to 2.79% for the three months ended September 30, 2025, as compared to 2.66% for the three months ended June 30, 2025. The increase in margin can be attributed to a decrease of 14 basis points in the Company's average cost for its interest-bearing liabilities as we have repriced deposits at lower rates coupled with the increase in average yield on interest-bearing assets of 8 basis points in the third quarter.
There was a $41 thousand reversal for credit losses taken for the three months ended September 30, 2025, compared to a $43 thousand provision for credit losses for the three months ended June 30, 2025. The reversal for credit losses was due to a decrease in the ACL for off-balance sheet positions, partially offset by a higher ACL for investments.
Non-interest income decreased $791 thousand, to $328 thousand for the three months ended September 30, 2025, compared with non-interest income of $1.1 million for the three months ended June 30, 2025. The majority of the decreases can be attributed to the receipt of $384 thousand Employee Retention Tax Credits ("ERTC") plus applicable interest in the second quarter of 2025 and lower service charges and fees on loans in the third quarter of 2025. We have not yet received the remaining ERTC installments for the 2021 tax year.
Non-interest expenses totaled $3.7 million for the three months ended September 30, 2025, compared to $3.8 million for the three months ended June 30, 2025. The largest fluctuations quarter over quarter were due to a $65 thousand increase in other expenses due to additional loan collection expenses, partially offset by a $42 thousand decrease in professional fees, due to reduced legal expenses, $29 thousand decrease in FDIC and NYSDFS premiums and a $22 thousand decrease in marketing expenses.
Nine months ended September 30, 2025 vs. September 30, 2024
For the nine months ended September 30, 2025, net income totaled $2.2 million in comparison to $637 thousand for the nine months ended September 30, 2024. The increase can mainly be attributed to higher net interest income of $2.2 million, increased non-interest income of $644 thousand partially offset by higher non-interest expense of $861 thousand and higher provision for income taxes of $391 thousand.
Net interest income for the nine months ended September 30, 2025, increased 21% or $2.2 million, to $12.4 million from $10.2 million at September 30, 2024. The increase can be attributed to decreased interest expense for deposits of $1.8 million and lower borrowing costs of $241 thousand.
Reversal for credit losses totaled $28 thousand for the nine months ended September 30, 2025, compared to a $10 thousand provision for the nine months ended September 30, 2024.
Non-interest income totaled $1.8 million for the nine months ended September 30, 2025, compared with noninterest income of $1.2 million for the nine months ended September 30, 2024. The increase can be attributed to increased service charges and fees collected, the receipt of the Employee Retention Tax Credit in 2025, and the gain on sale of loans, partially offset by the reduction in extinguishment gain, period over period.
Operating expenses totaled $11.2 million for the nine months ended September 30, 2025, compared to $10.4 million for the nine months ended September 30, 2024, or an increase of 8.3%. The increase in non-interest expenses can be attributed to the increases in other non-interest expenses, professional fees, and salary and compensation.
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)
September 30, December 31,
2025 2024
|----(unaudited)----|
Assets
Cash and cash equivalents $ 28,338 $ 26,713
Securities, net 16,043 22,336
Loans receivable, net:
Real estate mortgage loans 535,667 545,569
Commercial and Lines of
Credit 18,463 14,417
Home Equity and Consumer
Loans 273 397
Deferred costs 3,694 4,084
Allowance for Loan Credit
Losses (5,169) (5,137)
Total loans receivable,
net 552,928 559,330
Accrued interest receivable 2,719 2,628
Investment in restricted
stock, at cost 3,853 4,335
Goodwill 581 581
Bank premises and equipment,
net 4,310 4,845
Repossessed assets - -
Right of use lease assets 5,240 5,894
Bank Owned Life Insurance 5,609 5,489
Other Assets 1,417 4,589
Total Assets $ 621,038 $ 636,739
Liabilities & Stockholders'
Equity
Non-Interest-Bearing Deposits $ 104,256 $ 97,490
Interest-Bearing Deposits 385,982 395,593
Brokered Deposits 17,106 20,750
Total Deposits 507,344 513,833
Bond Issue, net of costs 11,817 11,787
Borrowed Money 39,520 50,083
Lease Liability 5,527 6,172
Other Liabilities 6,714 7,313
Total Liabilities 570,922 589,188
Stockholders' equity 50,116 47,551
------------------- -----------
Total liabilities and
stockholders' equity $ 621,038 $ 636,739
ES Bancshares, Inc.
Consolidated Statements of Income
(in thousands)
Three Months Ended Nine Months Ended
----------------------------------------------------- -------------------------
March 31, September September
September 30, 2025 June 30, 2025 2025 30, 2025 30, 2024
---------------------- -------------- ------------- ----------- ------------
|--------------(unaudited)--------------| |----(unaudited)----|
Interest income
Loans $ 7,467 $ 7,354 $ 7,478 $ 22,299 $ 21,868
Securities 149 193 213 555 454
Other
interest-earning
assets 340 279 243 862 1,252
Total Interest
Income 7,956 7,826 7,934 23,716 23,574
Interest expense
Deposits 3,065 3,146 3,118 9,329 11,096
Borrowings 655 661 704 2,020 2,261
Total Interest
Expense 3,720 3,807 3,822 11,349 13,357
----- --------- ---- ---- -------- --- ------- ------ -----------
Net
Interest
Income 4,236 4,019 4,112 12,367 10,217
(Rev)Prov for
Credit Losses (41) 43 (30) (28) 10
Net Interest
Income after
(Rev)Prov for
Credit
Losses 4,277 3,976 4,142 12,395 10,207
Non-interest
income
Service charges
and fees 270 693 175 1,138 636
Gain on loan
sales - - 132 132 1
Gain on
extinguishment
of Sub-debt - - - - 245
Other 58 427 42 527 271
----- --------- ---- ---- -------- --- ------- ------ -----------
Total
non-interest
income 328 1,120 349 1,797 1,153
Non-interest
expenses
Compensation and
benefits 1,839 1,836 1,689 5,364 5,168
Occupancy and
equipment 621 626 669 1,916 1,891
Data processing
service fees 338 345 315 998 958
Professional fees 204 246 335 785 561
FDIC & NYS
Banking
Assessments 84 113 113 310 296
Marketing 100 122 89 311 244
Insurance 48 48 53 149 151
Other 497 432 471 1,400 1,103
----- --------- ---- ---- -------- --- ------- ------ -----------
Total
non-interest
expense 3,731 3,768 3,734 11,233 10,372
----- --------- ---- ---- -------- --- ------- ------ -----------
Income
prior to
tax
expense 874 1,328 757 2,959 988
----- --------- ---- ---- -------- --- ------- ------ -----------
Income taxes 237 294 211 742 351
------ -----------
Net Income $ 637 $ 1,034 $ 546 $ 2,217 $ 637
===== ========= ==== ==== ======== === ======= ====== ===========
ES Bancshares, Inc.
Average Balance Sheet Data
For the Three Months Ended (dollars in thousands)
----------------------------------------------------------------------------------------------------------
September 30, 2025 June 30, 2025 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:
Loans receivable $558,270 $ 7,467 5.35% $557,878 $ 7,354 5.27% $566,031 $ 7,315 5.17%
Investment securities 16,848 149 3.54% 20,844 192 3.69% 22,480 218 3.87%
Other interest-earning
assets 31,152 339 4.32% 26,781 280 4.20% 31,656 428 5.29%
Total
interest-earning
assets 606,270 7,956 5.25% 605,503 7,826 5.17% 620,167 7,961 5.13%
Non-interest earning assets 21,221 24,968 17,919
------- ------- -------
Total assets $627,491 $630,471 $638,086
======= ======= =======
Liabilities and
Stockholders' Equity
Interest-bearing
liabilities:
Interest-bearing
checking $ 34,333 $ 30 0.35% $ 31,717 $ 28 0.35% $ 33,512 $ 55 0.65%
Savings accounts 212,479 1,511 2.82% 202,172 1,490 2.96% 200,248 1,728 3.42%
Certificates of deposit 159,570 1,525 3.79% 167,948 1,628 3.89% 173,577 1,891 4.32%
------- ------ ----- ---- ------- ------ ------ --- ------- ------ ----- ----
Total
interest-bearing
deposits 406,382 3,065 2.99% 401,837 3,146 3.14% 407,337 3,674 3.58%
Borrowings 39,584 465 4.66% 40,407 471 4.68% 52,984 519 3.89%
Subordinated debenture 11,812 190 6.43% 11,803 190 6.44% 12,388 201 6.44%
Total
interest-bearing
liabilities 457,778 3,720 3.22% 454,047 3,807 3.36% 472,709 4,394 3.69%
Non-interest-bearing demand
deposits 103,129 106,659 104,782
Other liabilities 16,843 20,741 13,842
Total
non-interest-bearing
liabilities 119,972 127,400 118,624
Stockholders' equity 49,741 49,024 46,753
------- ------- -------
Total liabilities and
stockholders'
equity $627,491 $630,471 $638,086
======= ======= =======
Net interest income $ 4,236 $ 4,019 $ 3,567
====== ====== ======
Average interest rate
spread 2.03% 1.81% 1.45%
Net interest margin 2.79% 2.66% 2.30%
Five Quarter
Performance Ratio
Highlights Three Months Ended
------------------ ---------------------------------------------------
June March
September 30, 31, December September
30, 2025 2025 2025 31, 2024 30, 2024
----------------- ---------- ------ ------ --------- ----------
Performance Ratios
(%) - annualized
Return(loss) on
Average Assets 0.41 0.66 0.35 0.29 0.36
Return(loss) on
Average Equity 5.12 8.44 4.53 3.94 4.98
Return(loss) on
Average Tangible
Equity 5.18 8.55 4.59 3.99 5.04
Efficiency Ratio 81.71 73.30 83.71 84.58 81.70
Yields / Costs (%)
Average Yield -
Interest Earning
Assets 5.25 5.17 5.18 5.17 5.13
Average Cost -
Interest-bearing
Liabilities 3.22 3.36 3.30 3.42 3.69
Net Interest
Margin 2.79 2.66 2.68 2.50 2.30
Capital Ratios (%)
Equity / Assets 8.07 7.66 7.65 7.47 7.44
Tangible Equity /
Assets 7.98 7.58 7.56 7.38 7.36
Tier I leverage
ratio (a) 9.91 9.78 9.46 9.31 9.18
Common equity
Tier I capital
ratio (a) 14.51 14.35 13.81 13.68 13.67
Tier 1 Risk-based
capital ratio
(a) 14.51 14.35 13.81 13.68 13.67
Total Risk-based
capital ratio
(a) 15.76 15.60 15.06 14.93 14.92
Stock Valuation
Book Value $ 7.24 $ 7.13 $ 6.97 $ 6.89 $ 6.85
Tangible Book
Value $ 7.15 $ 7.05 $ 6.89 $ 6.81 $ 6.77
Shares
Outstanding (b) 6,926 6,927 6,927 6,900 6,878
Asset Quality (%)
ACL / Total Loans 0.93 0.93 0.91 0.91 0.90
Non Performing
Loans / Total
Loans 1.09 1.13 0.96 0.94 0.91
Non Performing
Assets / Total
Assets 0.98 0.98 0.86 0.84 0.81
(a) Ratios at Bank level (b) Shares
information presented in thousands
(END) Dow Jones Newswires
October 22, 2025 16:47 ET (20:47 GMT)