ES Bancshares, Inc. Announces Second Quarter 2025 Results; Continues Positive Trend of Net Income Growth

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 Data							2025 Highlights
Performance Metrics	2Q25		1Q25		4Q24		• 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)	2Q25		1Q25		4Q24
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)	2Q25		1Q25		4Q24
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 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
[phone]

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 Loans		294			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, 2025		March 31, 2025				June 30, 2024			June 30, 2025		June 30, 2024
	|--------------(unaudited)--------------|									|----(unaudited)----|
Interest income
Loans	$	7,354	$	7,478			$	7,345		$	14,832	$	14,553
Securities		193		213				121			406		236
Other interest-earning assets		279		243				561			522		824
Total Interest Income		7,826		7,934				8,027			15,760		15,613
Interest expense
Deposits		3,146		3,118				3,837			6,264		7,422
Borrowings		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		6,602
Non-interest income
Service charges and fees		693		175				200			868		372
Gain on loan sales		-		132				-			132		1
Gain on extinguishment of Sub-debt		-		-				-			-		-
Other		427		42				129			469		171
Total non-interest income		1,120		349				329			1,469		544
Non-interest expenses
Compensation and benefits		1,836		1,689				1,728			3,525		3,449
Occupancy and equipment		626		669				605			1,295		1,273
Data processing service fees		345		315				317			660		643
Professional fees		246		335				225			581		406
FDIC & NYS Banking Assessments		113		113				99			226		196
Advertising		122		89				85			211		160
Insurance		48		53				46			101		96
Other		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		185
Income 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, 2025						March 31, 2025						June 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	$	557,878	$	7,354	5.27	%	$	568,508	$	7,478	5.26	%	$	565,363	$	7,345	5.20	%
Investment securities		20,844		192	3.69	%		22,839		213	3.73	%		15,513		121	3.13	%
Other interest-earning assets		26,781		280	4.20	%		21,343		243	4.55	%		41,652		561	5.33	%
Total interest-earning assets		605,503		7,826	5.17	%		612,690		7,934	5.18	%		622,528		8,027	5.16	%
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	$	28	0.35	%	$	36,869	$	31	0.34	%	$	36,692	$	71	0.77	%
Savings accounts		202,172		1,490	2.96	%		205,503		1,443	2.85	%		175,686		1,629	3.72	%
Certificates of deposit		167,948		1,628	3.89	%		166,005		1,644	4.02	%		194,806		2,137	4.40	%
Total interest-bearing deposits		401,837		3,146	3.14	%		408,377		3,118	3.10	%		407,184		3,837	3.78	%
Borrowings		40,407		471	4.68	%		50,124		514	4.16	%		55,510		522	3.77	%
Subordinated debenture		11,803		190	6.44	%		11,793		190	6.44	%		13,726		221	6.46	%
Total interest-bearing liabilities		454,047		3,807	3.36	%		470,294		3,822	3.30	%		476,420		4,580	3.86	%
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 Highlights		Three Months Ended
		June 30, 2025		March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024
Performance 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

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