STATEN ISLAND, N.Y., Jan. 21, 2026 (GLOBE NEWSWIRE) -- ES Bancshares, Inc. (OTCQX: ESBS) (the "Company") the holding company for Empire State Bank, (the "Bank") today reported net income of $660 thousand, or $0.10 per diluted common share, for the quarter ended December 31, 2025, compared to a net income of $637 thousand, or $0.10 per diluted common share for the quarter ended September 30, 2025.
Key Quarterly Financial Data 2025 Highlights
-- Non
interest-bearing
deposits grew by
$10.3 million
from year end
2024. -- The
Cost of Funds
for the three
months ended
December 31,
2025, dropped to
2.64% from 2.65%
Performance in the prior
Metrics 4Q25 3Q25 2Q25 linked quarter.
Return on average
assets (%) 0.42 0.41 0.66
Return on average
equity (%) 5.31 5.12 8.44
Return on average
tangible equity
(%) 5.37 5.18 8.55
Net interest
margin (%) 2.77 2.79 2.66
-- For 3 months
ended December
31, 2025, the
Company's net
interest margin
decreased
slightly to
2.77% compared
to 2.79% for the
3 months ended
September 30,
2025. -- The
Company received
$384K in
Employee
Retention Tax
Credits and
applicable
interest in the
Income Statement second quarter
(a) 4Q25 3Q25 2Q25 of 2025.
Net interest
income $ 4,239 $ 4,236 $ 4,019
Non-interest
income $ 404 $ 328 $ 1,120
Net income $ 660 $ 637 $ 1,034
Earnings per
diluted common
share $ 0.10 $ 0.10 $ 0.15
-- Book value
for the quarter
ended December
31, 2025,
totaled $7.34
per share
increasing for
the seventh
consecutive
Balance Sheet (a) 4Q25 3Q25 2Q25 quarter.
Average total
loans $ 553,324 $ 558,270 $557,878
Average total
deposits $ 512,918 $ 509,511 $508,496
Book value per
share $ 7.34 $ 7.24 $ 7.13
Tangible book
value per share $ 7.25 $ 7.15 $ 7.05
(a) In thousands except for per
share amounts
Phil Guarnieri, Director, and Chief Executive Officer of ES Bancshares, said, "We ended the year with increased quarterly core earnings. We have been able to lower our retail deposit costs despite the competitive pressures in our market. Our strategy to reduce our borrowings and brokered cds has provided us increased liquidity options in this volatile environment."
Selected Balance Sheet Information:
December 31, 2025 vs. December 31, 2024
As of December 31, 2025, total assets were $616.3 million, a decrease of $20.5 million, or 3.2%, 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 $544.6 million, a decrease of $14.7 million or 2.6% from December 31, 2024. As of December 31, 2025, the Allowance for Credit Losses on Loans as a percentage of gross loans was 0.94%.
Nonperforming assets, which includes nonaccrual loans and foreclosed real estate were $5.9 million or 0.96% of total assets, as of December 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 1.08%, as of December 31, 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 $23.7 million to $565.4 million at December 31, 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 December 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 10.00%, 14.91%, 14.91% and 16.16% respectively, all in excess of the ratios required to be deemed "well-capitalized." During the fourth quarter of 2025 the Company did not repurchase shares under its stock repurchase program. Book value per common share was $7.34 at December 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 $7.25 at December 31, 2025, compared to $6.81 at December 31, 2024.
Financial Performance Overview:
Three Months Ended December 31, 2025, vs. September 30, 2025
For the three months ended December 31, 2025, the Company net income totaled $660 thousand compared to a net income of $637 thousand for the three months ended September 30, 2025. The increase can be attributed to higher non-interest income partially offset by higher non-interest expense and a lower reversal of loan loss provision quarter over quarter.
Net interest income for the three months ended December 31, 2025 remained stable at $4.2 million despite the lower average loan balance during the current quarter. The Company's net interest margin decreased by two basis points to 2.77% for the three months ended December 31, 2025, as compared to 2.79% for the three months ended September 30, 2025. The decrease in margin can be attributed to a change in the mix of interest-bearing assets, specifically the decrease in the average balance of the loan portfolio of $4.9 million despite the yield on loans remaining the same from the third quarter. This was partially offset by the decrease in the cost of interest-bearing deposits of 10 basis points from the third quarter of 2025. Additionally, our subordinated debt repriced as of October 30, 2025, and now adjusts quarterly at a margin of 579 basis points over the 3-month SOFR rate. The interest rate increased from 6.00% to 9.63% for the last two months of this quarter.
There was a $10 thousand reversal for credit losses taken for the three months ended December 31, 2025, compared to a $41 thousand reversal for credit losses for the three months ended September 30, 2025. The reversal for credit losses was due to a decrease in the ACL for the loan portfolio, partially offset by a higher ACL for investments and off-balance sheet positions.
Non-interest income increased $75 thousand, to $403 thousand for the three months ended December 31, 2025, compared with non-interest income of $328 thousand for the three months ended September 30, 2025. The majority of the increase can be attributed to higher service charges and fees on loans in the fourth quarter of 2025. We have not yet received the remaining ERTC installments for the 2021 tax year.
Non-interest expenses totaled $3.8 million for the three months ended December 31, 2025, compared to $3.7 million for the three months ended September 30, 2025. The largest fluctuations quarter over quarter were due to an $112 thousand increase in professional fees, due to increased legal expenses, and an $18 thousand increase in FDIC and NYSDFS premiums partially offset by a $60 thousand decrease in compensation and benefits and a $19 thousand decrease in data processing expenses.
Year ended December 31, 2025 vs. December 31, 2024
For the year ended December 31, 2025, net income totaled $2.9 million in comparison to $1.1 million for the year ended December 31, 2024. The increase can mainly be attributed to higher net interest income of $2.5 million, increased non-interest income of $673 thousand partially offset by higher non-interest expense of $1.0 million and higher provision for income taxes of $445 thousand.
Net interest income for the year ended December 31, 2025, increased 17.8% or $2.5 million, to $16.6 million from $14.1 million at December 31, 2024. The increase can be attributed to decreased interest expense for deposits of $2.2 million and lower borrowing costs of $195 thousand.
Reversal for credit losses totaled $38 thousand for the year ended December 31, 2025, compared to a $12 thousand provision for the year ended December 31, 2024.
Non-interest income totaled $2.2 million for the year ended December 31, 2025, compared with noninterest income of $1.5 million for the year ended December 31, 2024. The increase can be attributed to increased service charges and fees collected, and the receipt of the Employee Retention Tax Credit in 2025, partially offset by the reduction in extinguishment gain, period over period.
Operating expenses totaled $15.0 million for the year ended December 31, 2025, compared to $14.0 million for the year ended December 31, 2024, or an increase of 7.3%. The increase in non-interest expenses can be attributed to the increases in salary and compensation, professional fees and other non-interest 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 Statement of Financial Condition
(in thousands)
December 31, December
2025 31, 2024
|------(unaudited)------|
Assets
Cash and cash
equivalents $ 36,645 $ 26,713
Securities, net 11,916 22,336
Loans receivable, net:
Real estate
mortgage loans 527,715 545,569
Commercial and
Lines of Credit 18,090 14,417
Construction
Loans - -
Home Equity and
Consumer Loans 379 397
Deferred costs 3,544 4,084
Allowance for Loan
Credit Losses (5,142) (5,137)
Total loans
receivable,
net 544,586 559,330
Accrued interest
receivable 2,649 2,628
Investment in
restricted stock, at
cost 3,846 4,335
Goodwill 581 581
Bank premises and
equipment, net 4,128 4,845
Repossessed assets - -
Right of use lease
asset 5,019 5,894
Bank Owned Life
Insurance 5,653 5,489
Other Assets 1,256 4,589
------------------------- ----------
Total Assets $ 616,278 $ 636,739
========================= ==========
Liabilities &
Stockholders' Equity
Non-Interest-Bearing
Deposits $ 107,823 $ 97,490
Interest-Bearing
Deposits 379,673 395,593
Brokered Deposits 15,040 20,750
Total Deposits 502,537 513,833
Bond Issue, net of
costs 11,823 11,787
Borrowed Money 39,328 50,084
Lease liability 5,307 6,172
Other Liabilities 6,450 7,313
------------------------- ----------
Total Liabilities 565,445 589,188
Stockholders' equity 50,833 47,551
------------------------- ----------
Total liabilities
and stockholders'
equity $ 616,278 $ 636,739
========================= ==========
ES Bancshares, Inc.
Consolidated Statement of Income
(in thousands)
Three Months Ended, For the Year Ended
----------------------------------------------------------- ----------------------------------------
December 31, September 30, June 30, December 31, December
2025 2025 2025 2025 31, 2024
-------------------- ------------------- ---------------- --------------------------- -----------
|----------------(unaudited)----------------| |-----(unaudited)-----|
Interest income
Loans $ 7,401 $ 7,467 $ 7,353 $ 29,700 $ 29,273
Securities 126 149 192 681 678
Other interest-earning
assets 431 339 280 1,293 1,624
Total Interest
Income 7,959 7,956 7,826 31,675 31,576
Interest expense
Deposits 2,984 3,065 3,146 12,313 14,531
Borrowings 735 655 661 2,755 2,950
Total Interest
Expense 3,720 3,720 3,807 15,068 17,482
---- -------- ---- ---- -------- --- --- ----------- ------ ----------- ------ ----------
Net Interest
Income 4,239 4,236 4,019 16,606 14,094
Prov for Credit Losses (10) (41) 43 (38) 12
Net Interest
Income after
Pro for
Credit
Losses 4,249 4,277 3,976 16,644 14,082
Non-interest income
Service charges and
fees 357 270 693 1,496 829
Gain on loan sales - - - 132 140
Gain on sale of
repossessed assets - - - - -
Gain on Extinguishment
of Sub-debt - - - - 245
Other 46 58 426 573 313
---- -------- ---- ---- -------- --- --- ----------- ------ ----------- ------ ----------
Total non-interest
income 403 328 1,120 2,200 1,527
Non-interest expenses
Compensation and
benefits 1,779 1,839 1,835 7,143 6,830
Occupancy and equipment 614 621 625 2,531 2,509
Data processing service
fees 317 338 345 1,315 1,253
Professional fees 316 204 246 1,100 808
FDIC & NYS Banking
Premiums 102 84 113 412 428
Advertising 85 100 123 396 308
Insurance 47 48 48 197 208
Other 489 496 432 1,889 1,621
------ ----------- ------ ----------
Total non-interest
expense 3,750 3,730 3,768 14,984 13,966
---- -------- ---- ---- -------- --- --- ----------- ------ ----------- ------ ----------
Income(loss)
prior to tax
expense 902 874 1,328 3,860 1,643
---- -------- ---- ---- -------- --- --- ----------- ------ ----------- ------ ----------
Income taxes 242 237 294 984 539
------ ----------- ------ ----------
Net Profit $ 660 $ 637 $ 1,034 $ 2,876 $ 1,104
==== ======== ==== ==== ======== === === =========== ====== =========== ====== ==========
ES Bancshares, Inc.
Average Balance Sheet Data
For the Three Months Ended (dollars in thousands)
-----------------------------------------------------------------------------------------------------
December 31, 2025 September 30, 2025 December 31, 2024
-------------------------------- -------------------------------- ---------------------------------
Avg Bal Interest Avg Bal Interest Avg Bal Interest
Rolling Rolling Average Rolling Rolling Average Rolling Rolling Average
3 Mos. 3 Mos. Yield/Cost 3 Mos. 3 Mos. Yield/Cost 3 Mos. 3 Mos. Yield/Cost
-------- ---------- ---------- -------- ---------- ---------- -------- ---------- -----------
Assets
Interest-earning assets:
Loans receivable $553,324 $ 7,401 5.35% $558,270 $ 7,467 5.35% $564,745 $ 7,405 5.24%
Investment securities 14,638 126 3.43% 16,848 149 3.54% 22,898 224 3.91%
Other interest earning
assets 43,364 431 3.94% 31,152 339 4.32% 31,135 373 4.69%
Total
interest-earning
assets 611,326 7,958 5.21% 606,270 7,956 5.25% 618,778 8,002 5.17%
Non-interest earning assets 14,542 21,221 18,048
------- ------- -------
Total assets $625,868 $627,491 $636,826
======= ======= =======
Liabilities and
Stockholders' Equity
Interest-bearing
liabilities:
Demand Deposit accounts $ 34,442 $ 32 0.37% $ 34,333 $ 30 0.35% $ 32,800 $ 27 0.33%
Savings accounts 221,921 1,533 2.74% 212,479 1,511 2.82% 217,746 1,695 3.09%
Certificates of deposit 153,046 1,419 3.68% 159,570 1,525 3.79% 166,368 1,714 4.09%
------- ------ ---------- ------- ------ ---------- ------- ------ -----------
Total
interest-bearing
deposits 409,408 2,984 2.89% 406,382 3,065 2.99% 416,914 3,436 3.27%
Borrowings 39,393 463 4.66% 39,584 465 4.66% 50,189 499 3.94%
Subordinated debenture 11,820 272 9.20% 11,812 190 6.43% 11,784 191 6.43%
Total
interest-bearing
liabilities 460,622 3,719 3.20% 457,778 3,721 3.22% 478,887 4,126 3.42%
Non-interest-bearing demand
deposits 103,510 103,129 96,011
Other liabilities 11,118 16,843 14,581
Total
non-interest-bearing
liabilities 114,628 119,972 110,592
Stockholders' equity 50,619 49,741 47,347
------- ------- -------
Total liabilities and
stockholders'
equity $625,868 $627,491 $636,826
======= ======= =======
Net interest income $ 4,239 $ 4,236 $ 3,874
====== ====== ======
Average interest rate spread
(1) 2.01% 2.03% 1.75%
Net interest margin (2) 2.77% 2.79% 2.51%
(1) Average interest rate spread represents the difference
between the yield on average interest-earning assets
and and the cost of average interest-bearing liabilities.
(2) Net interest margin represents net interest income
divided by average total interest-earning assets.
ES Bancshares, Inc.
Five Quarter
Performance Ratio
Highlights Three Months Ended
------------------ --------------------------------------------------------
December September June 30, March 31, December
31, 2025 30, 2025 2025 2025 31, 2024
----------------- ---------- ---------- -------- --------- -----------
Performance Ratios
(%) - annualized
Return(loss) on
Average Assets 0.42% 0.41% 0.66% 0.35% 0.29%
Return(loss) on
Average Equity 5.31% 5.12% 8.44% 4.53% 3.94%
Return(loss) on
Average Tangible
Equity 5.37% 5.18% 8.55% 4.59% 3.99%
Efficiency Ratio 80.84% 81.71% 73.30% 83.69% 84.58%
Yields / Costs (%)
Average Yield -
Interest Earning
Assets 5.21% 5.25% 5.17% 5.18% 5.17%
Average Cost -
Interest-bearing
Liabilities 3.20% 3.22% 3.36% 3.30% 3.42%
Net Interest
Margin 2.77% 2.79% 2.66% 2.68% 2.50%
Capital Ratios (%)
Equity / Assets 8.25% 8.07% 7.66% 7.65% 7.47%
Tangible Equity /
Assets 8.16% 7.98% 7.58% 7.56% 7.38%
Tier I leverage
ratio (a) 10.00% 9.91% 9.78% 9.46% 9.31%
Common equity
Tier I capital
ratio (a) 14.91% 14.51% 14.35% 13.81% 13.68%
Tier 1 Risk-based
capital ratio
(a) 14.91% 14.51% 14.35% 13.81% 13.68%
Total Risk-based
capital ratio
(a) 16.16% 15.76% 15.60% 15.06% 14.93%
Stock Valuation
Book Value (c) $7.34 $7.24 $7.13 $6.97 $6.89 Tangible Book Value (c) $7.25 $7.15 $7.05 $6.89 $6.81 Shares Outstanding (b) 6,926 6,926 6,927 6,927 6,900 Asset Quality (%) ACL / Total Loans 0.94% 0.93% 0.93% 0.91% 0.91% Non Performing Loans / Total Loans 1.08% 1.10% 1.13% 0.96% 0.94% Non Performing Assets / Total Assets 0.96% 0.98% 0.98% 0.86% 0.84% (a) Ratios at Bank level (b) Shares information presented in thousands (c) Share value is in dollars
(END) Dow Jones Newswires
January 21, 2026 17:17 ET (22:17 GMT)
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