ES Bancshares, Inc. Announces Third Quarter 2025 Results; Continues Positive Trend of Net Income Growth
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 | |||||||
Performance Metrics | 3Q25 | 2Q25 | 1Q25 | • 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 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 | ||||||||||||||
September 30, 2025 | June 30, 2025 | March 31, 2025 | September 30, 2025 | September 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 | Average | Avg Bal | Interest | Average | Avg Bal | Interest | Average | ||||||||||
Rolling | Rolling | Rolling | Rolling | Rolling | Rolling | |||||||||||||
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 | |||||||||||
September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 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 | ||||||||||||