STATEN ISLAND, N.Y., July 23, 2025 (GLOBE NEWSWIRE) — ES Bancshares, Inc. (OTCQX: ESBS) (the “Company”) the holding company for Empire State Bank, (the “Bank”) today reported net income of $1.03 million, or $0.15 per diluted common share, for the quarter ended June 30, 2025, compared to a net income of $546 thousand, or $0.08 per diluted common share for the quarter ended March 31, 2025.
Key Quarterly Financial Data2025 Highlights Performance Metrics2Q251Q254Q24* Non interest-bearing deposits grew by $8.1 million from year end 2024.
* The Cost of Funds for the three months ended June 30, 2025, rose to 2.72% from 2.69% in the prior linked quarter.
* For 3 months ended June 30, 2025, the Company’s net interest margin decreased to 2.66% compared to 2.68% for the 3 months ended March 31, 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 June 30, 2025, totaled $7.13 per share increasing for the fifth consecutive quarter.
Return on average assets (%) 0.66 0.35 0.10 Return on average equity (%) 8.44 4.53 1.37 Return on average tangible equity (%) 8.55 4.59 1.38 Net interest margin (%) 2.66 2.68 2.21 Income Statement (a)2Q251Q254Q24 Net interest income$4,019$4,112$3,447 Non-interest income$1,120$349$329 Net income$1,034$546$158 Earnings per diluted common share$0.15$0.08$0.02 Balance Sheet (a)2Q251Q254Q24 Average total loans$557,878$568,508$565,363 Average total deposits$508,496$506,524$510,050 Book value per share$7.13$6.97$6.74 Tangible book value per share$7.05$6.89$6.65 (a) In thousands except for per share amounts
Phil Guarnieri, Director, and Chief Executive Officer of ES Bancshares said, “The second quarter of 2025 featured $8.1 million growth in our non-interest-bearing deposits. Our net income increased due in large part to the receipt of the Employee Retention Tax Credits for the year 2020. We continue to be flexible as we proceed through the fluctuating economic and regulatory landscape.”
Selected Balance Sheet Information:
June 30, 2025 vs. December 31, 2024
As of June 30, 2025, total assets were $645.0 million, an increase of $8.2 million, or 1.3%, as compared to total assets of $636.7 million on December 31, 2024. The increase can be attributed to an influx of retail deposits and cash.
Loans receivable, net of Allowance for Credit Losses on Loans totaled $552.3 million, a decrease of $7.0 million or 1.3% from December 31, 2024. As of June 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 $6.3 million or 0.98% of total assets, as of June 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 1.13%, as of June 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. That loan has a less than 50% loan to value ratio.
Total liabilities increased $6.4 million to $595.6 million at June 30, 2025, from $589.2 million at December 31, 2024. The increase can be attributed to an increase in core deposits and in brokered deposits partially offset by a reduction in overnight Federal Home Loan (FHLB) borrowings. The growth in deposits was driven by an increase in non-interest-bearing deposits.
As of June 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 9.78%, 14.35%, 14.35% and 15.60%, respectively, all in excess of the ratios required to be deemed “well-capitalized.” During the second quarter of 2025 the Company did not repurchase shares under its stock repurchase program. Book value per common share was $7.13 at June 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 $7.05 at June 30, 2025, compared to $6.81 at December 31, 2024.
Financial Performance Overview:
Three Months Ended June 30, 2025, vs. March 31, 2025
For the three months ended June 30, 2025, the Company net income totaled $1.0 million compared to a net income of $546 thousand for the three months ended March 31, 2025. The increase can be attributed to higher non-interest income partially offset by lower net interest income and higher loan loss provisions quarter over quarter.
Net interest income for the three months ended June 30, 2025 decreased $93 thousand, to $4.0 million from $4.1 million at three months ended March 31, 2025. The Company’s net interest margin decreased moderately by two basis points to 2.66% for the three months ended June 30, 2025, as compared to 2.68% for the three months ended March 31, 2025. The decrease in margin can be attributed to an increase of 6 basis points in the Company’s average cost for its interest-bearing liabilities as lower rate borrowings matured and the reduction of $10.6 million in our average loan balance in the second quarter.
There was a $43 thousand provision for credit losses taken for the three months ended June 30, 2025, compared to a $30 thousand reversal for credit losses for the three months ended March 31, 2025. The provision for credit losses was due to by an increase in the ACL for loans and off-balance sheet positions, partially offset by a lower ACL for investments.
Non-interest income increased $771 thousand, to $1.1 million for the three months ended June 30, 2025, compared with non-interest income of $349 thousand for the three months ended March 31, 2025. The majority of the increases can be attributed to the receipt of $384 thousand Employee Retention Tax Credits (“ERTC”) plus applicable interest and higher service charges and fees on loans. We are expecting the remaining ERTC installments for the 2021 tax year.
Non-interest expenses totaled $3.8 million for the three months ended June 30, 2025, compared to $3.7 million for the three months ended March 31, 2025. The largest fluctuations quarter over quarter were due to a $147 thousand increase in compensation and benefits due to additional hires, and increased advertising expenses of $33 thousand, partially offset by an $89 thousand decrease in professional fees, due to reduced legal expenses, $43 thousand decrease in occupancy and equipment and a $39 thousand decrease in other expenses.
Six months ended June 30, 2025 vs. June 30, 2024
For the six months ended June 30, 2025, net income totaled $1.6 million in comparison to $55 thousand for the six months ended June 30, 2024. The increase can mainly be attributed to higher net interest income of $1.5 million, increased non-interest income of $925 thousand partially offset by higher non-interest expense of $541 thousand and higher provision for income taxes of $375 thousand.
Net interest income for the six months ended June 30, 2025, increased 22% or $1.4 million, to $8.1 million from $6.7 million at June 30, 2024. The increase can be attributed to decreased interest expense for deposits of $1.2 million and lower borrowing costs of $176 thousand.
Provision for credit losses totaled $13 thousand for the six months ended June 30, 2025, compared to a $48 thousand provision for the six months ended June 30, 2024.
Non-interest income totaled $1.5 million for the six months ended June 30, 2025, compared with noninterest income of $544 thousand for the six months ended June 30, 2024. The increase can be attributed to increased charges and fees collected, the receipt of the Employee Retention Tax Credit in 2025, and the gain on sale of loans period over period.
Operating expenses totaled $7.5 million for the six months ended June 30, 2025, compared to $7.0 million for the six months ended June 30, 2024, or an increase of 7.7%. The increase in non-interest expenses can be attributed to the increases in professional fees, other non-interest expenses 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 http://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) June 30, December 31,2025 2024 |—-(unaudited)—-| Assets Cash and cash equivalents$46,761 26,713 Securities, net 22,135 22,336 Loans receivable, net: Real estate mortgage loans 535,667 545,569 Commercial and Lines of Credit 17,820 14,417 Home Equity and Consumer Loans294 397 Deferred costs 3,726 4,084 Allowance for Loan Credit Losses(5,169) (5,137)Total loans receivable, net 552,338 559,330 Accrued interest receivable 2,609 2,628 Investment in restricted stock, at cost 3,860 4,335 Goodwill 581 581 Bank premises and equipment, net 4,466 4,845 Repossessed assets – – Right of use lease assets 5,459 5,894 Bank Owned Life Insurance 5,566 5,489 Other Assets 1,207 4,589 Total Assets$644,982 636,739 Liabilities & Stockholders’ Equity Non-Interest-Bearing Deposits 105,568 97,490 Interest-Bearing Deposits 402,083 395,593 Brokered Deposits 23,056 20,750 Total Deposits 530,707 513,833 Bond Issue, net of costs 11,807 11,787 Borrowed Money 39,710 50,083 Lease Liability 5,744 6,172 Other Liabilities 7,600 7,313 Total Liabilities 595,568 589,188 Stockholders’ equity 49,414 47,551 Total liabilities and stockholders’ equity$644,982 636,739
ES Bancshares, Inc. Consolidated Statements of Income (in thousands) Three Months Ended Six Months Ended June 30, 2025March 31, 2025 June 30, 2024 June 30, 2025June 30, 2024 |————–(unaudited)————–| |—-(unaudited)—-|Interest income Loans$7,354$7,478 $7,345 $14,832$14,553Securities 193 213 121 406 236Other interest-earning assets 279 243 561 522 824 Total Interest Income 7,826 7,934 8,027 15,760 15,613Interest expense Deposits 3,146 3,118 3,837 6,264 7,422Borrowings 661 704 743 1,365 1,541 Total Interest Expense 3,807 3,822 4,580 7,629 8,963 Net Interest Income 4,019 4,112 3,447 8,131 6,650(Rev)Prov for Credit Losses 43 (30) 9 13 48 Net Interest Income after (Rev)Prov for Credit Losses 3,976 4,142 3,438 8,118 6,602Non-interest income Service charges and fees 693 175 200 868 372Gain on loan sales – 132 – 132 1Gain on extinguishment of Sub-debt – – – – -Other 427 42 129 469 171 Total non-interest income 1,120 349 329 1,469 544Non-interest expenses Compensation and benefits 1,836 1,689 1,728 3,525 3,449Occupancy and equipment 626 669 605 1,295 1,273Data processing service fees 345 315 317 660 643Professional fees 246 335 225 581 406FDIC & NYS Banking Assessments 113 113 99 226 196Advertising 122 89 85 211 160Insurance 48 53 46 101 96Other 432 471 401 903 738 Total non-interest expense 3,768 3,734 3,506 7,502 6,961 Income prior to tax expense 1,328 757 261 2,085 185Income taxes 294 211 103 505 130 Net Income$1,034$546 $158 $1,580$55
ES Bancshares, Inc. Average Balance Sheet Data For the Three Months Ended (dollars in thousands) June 30, 2025March 31, 2025June 30, 2024 Avg BalInterestAverageAvg BalInterestAverageAvg BalInterestAverage RollingRollingRollingRollingRollingRollingAssets 3 Mos. 3 Mos.Yield/Cost 3 Mos. 3 Mos.Yield/Cost 3 Mos. 3 Mos.Yield/CostInterest-earning assets: Loans receivable$557,878$7,3545.27%$568,508$7,4785.26%$565,363$7,3455.20%Investment securities 20,844 1923.69% 22,839 2133.73% 15,513 1213.13%Other interest-earning assets 26,781 2804.20% 21,343 2434.55% 41,652 5615.33%Total interest-earning assets 605,503 7,8265.17% 612,690 7,9345.18% 622,528 8,0275.16%Non-interest earning assets 24,968 19,077 16,398 Total assets$630,471 $631,767 $638,926 Liabilities and Stockholders’ Equity Interest-bearing liabilities: Interest-bearing checking$31,717$280.35%$36,869$310.34%$36,692$710.77%Savings accounts 202,172 1,4902.96% 205,503 1,4432.85% 175,686 1,6293.72rtificates of deposit 167,948 1,6283.89% 166,005 1,6444.02% 194,806 2,1374.40%Total interest-bearing deposits 401,837 3,1463.14% 408,377 3,1183.10% 407,184 3,8373.78%Borrowings 40,407 4714.68% 50,124 5144.16% 55,510 5223.77%Subordinated debenture 11,803 1906.44% 11,793 1906.44% 13,726 2216.46%Total interest-bearing liabilities 454,047 3,8073.36% 470,294 3,8223.30% 476,420 4,5803.86%Non-interest-bearing demand deposits 106,659 98,147 102,866 Other liabilities 20,741 15,188 13,429 Total non-interest-bearing liabilities 127,400 113,335 116,295 Stockholders’ equity 49,024 48,138 46,211 Total liabilities and stockholders’ equity$630,471 $631,767 $638,926 Net interest income $4,019 $4,112 $3,447 Average interest rate spread 1.81% 1.88% 1.30%Net interest margin 2.66% 2.68% 2.21%
Five Quarter Performance Ratio HighlightsThree Months EndedJune 30, 2025March 31, 2025December 31, 2024September 30, 2024June 30, 2024Performance Ratios (%) – annualized Return(loss) on Average Assets 0.66 0.35 0.29 0.36 0.10 Return(loss) on Average Equity 8.44 4.53 3.94 4.98 1.37 Return(loss) on Average Tangible Equity 8.55 4.59 3.99 5.04 1.38 Efficiency Ratio 73.30 83.71 84.58 81.70 92.86 Yields / Costs (%) Average Yield – Interest Earning Assets 5.17 5.18 5.17 5.13 5.16 Average Cost – Interest-bearing Liabilities 3.36 3.30 3.42 3.69 3.86 Net Interest Margin 2.66 2.68 2.50 2.30 2.21 Capital Ratios (%) Equity / Assets 7.66 7.65 7.47 7.44 7.12 Tangible Equity / Assets 7.58 7.56 7.38 7.36 7.03 Tier I leverage ratio (a) 9.78 9.46 9.31 9.18 9.30 Common equity Tier I capital ratio (a) 14.35 13.81 13.68 13.67 13.81 Tier 1 Risk-based capital ratio (a) 14.35 13.81 13.68 13.67 13.81 Total Risk-based capital ratio (a) 15.60 15.06 14.93 14.92 15.06 Stock Valuation Book Value$7.13$6.97$6.89$6.85$6.74 Tangible Book Value$7.05$6.89$6.81$6.77$6.65 Shares Outstanding (b) 6,927 6,927 6,900 6,878 6,884 Asset Quality (%) ACL / Total Loans 0.93 0.91 0.91 0.90 0.90 Non Performing Loans / Total Loans 1.13 0.96 0.94 0.91 0.22 Non Performing Assets / Total Assets 0.98 0.86 0.84 0.81 0.19 (a) Ratios at Bank level (b) Shares information presented in thousands
