ES Bancshares, Inc. Announces First Quarter 2026 Results; Eighth Consecutive Quarter of Growth in Our Book Value Per Share

Q: What were ESBS Q1 2026 earnings and EPS?

ESBS reported Q1 2026 net income of $1.108 million and $0.16 diluted EPS. According to the company, this compares with $659 thousand and $0.10 diluted EPS in Q4 2025, driven by higher net interest income and lower income taxes.

Q: How did ESBS deposits and assets change in Q1 2026?

Total deposits increased by $24.1 million and total assets rose to $643.7 million . According to the company, deposit growth was driven primarily by its escrow product and assets increased 4.5% versus 12/31/2025.

Q: What drove ESBS's net interest margin improvement in Q1 2026?

NIM improved to 3.06% , a 29-basis-point increase quarter-over-quarter. According to the company, this resulted from lower deposit interest expense and higher loan and investment interest income, including interest on a reinstated accrual loan.

Q: What is ESBS's capital and book value position after Q1 2026?

Book value per share was $7.50 , the eighth consecutive quarterly increase, and CET1 was 15.10% . According to the company, all reported regulatory capital ratios exceed "well-capitalized" thresholds.

Rhea-AI Impact

(Moderate)

Rhea-AI Sentiment

(Very Negative)

Rhea-AI Summary

ES Bancshares (OTCQX: ESBS) reported Q1 2026 net income of $1.108 million ($0.16 diluted EPS), up from $659 thousand in Q4 2025. Net interest margin rose to 3.06% (up 29 bps). Total assets reached $643.7 million (+4.5% vs. 12/31/25) and total deposits grew by $24.1 million. Book value per share was $7.50, the eighth consecutive quarterly increase. Capital ratios remain above "well-capitalized" thresholds.

Positive

Net income $1.108M, up ~68% QoQ
Earnings per diluted share of $0.16
Net interest margin increased to 3.06% (up 29 bps)
Total deposits grew by $24.1M since year-end 2025
Total assets $643.7M, a 4.5% increase versus 12/31/25
Capital ratios above well-capitalized (CET1 15.10%)
Book value per share $7.50, eighth consecutive increase

Negative

Loans receivable, net decreased $10.3M (1.9%) from 12/31/25
Nonperforming assets $5.9M (0.78% of total assets)
Non-interest expense rose to $4.0M, higher than prior quarter
No share repurchases executed under the buyback program in Q1

News Market Reaction – ESBS

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In the Apr 23 session, ESBS declined 0.31%, reflecting a mild negative market reaction.

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04/22/2026 - 04:30 PM

STATEN ISLAND, N.Y., April 22, 2026 (GLOBE NEWSWIRE) -- STATEN ISLAND, N.Y., April 22, 2026 (GLOBE NEWSWIRE) – ES Bancshares, Inc. (OTCQX: ESBS) (the “Company”) the holding company for Empire State Bank, (the “Bank”) today reported net income of $1.1 million, or $0.16 per diluted common share, for the quarter ended March 31, 2026, compared to a net income of $660 thousand, or $0.10 per diluted common share for the quarter ended December 31, 2025.

Key Quarterly Financial Data							2025 Highlights
Performance Metrics	1Q26		4Q25		3Q25		• Total deposits grew by $24.1 million from year end 2025. • The Cost of Funds for the three months ended March 31, 2026, dropped to 2.44% from 2.64% in the prior linked quarter. • For 3 months ended March 31, 2026, the Company’s net interest margin increased to 3.06% compared to 2.77% for the 3 months ended December 31, 2025. • The Company reversed $259K in income tax expense due to an over accrual in the first quarter of 2026. • Book value for the quarter ended March 31, 2026, totaled $7.50 per share increasing for the eighth consecutive quarter.
Return on average assets (%)	0.71		0.42		0.41
Return on average equity (%)	8.91		5.31		5.12
Return on average tangible equity (%)	9.02		5.37		5.18
Net interest margin (%)	3.06		2.77		2.79

Income Statement (a)	1Q26		4Q25		3Q25
Net interest income	$	4,698	$	4,239	$	4,236
Non-interest income	$	366	$	403	$	328
Net income	$	1,108	$	659	$	637
Earnings per diluted common share	$	0.16	$	0.10	$	0.10

Balance Sheet (a)	1Q26		4Q25		3Q25
Average total loans	$	541,939	$	553,324	$	558,270
Average total deposits	$	515,419	$	512,918	$	509,511
Book value per share	$	7.50	$	7.34	$	7.24
Tangible book value per share	$	7.42	$	7.25	$	7.15
(a) In thousands except for per share amounts

Phil Guarnieri, Director, and Chief Executive Officer of ES Bancshares said “We increased both our book value per share and our net interest income over the previous quarter. Our total deposits grew by $24 million, driven primarily by our escrow product. The uncertainty in the economy has been heightened due to the conflict with Iran, and this has put a pause of further fed fund rate decreases. We will continue to navigate these turbulent waters while focusing on our strategic objectives."

Selected Balance Sheet Information:

March 31, 2026 vs. December 31, 2025

As of March 31, 2026, total assets were $643.7 million, an increase of $27.4 million, or 4.5%, as compared to total assets of $616.3 million on December 31, 2025. 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 $534.3 million, a decrease of $10.3 million or 1.9% from December 31, 2025. As of March 31, 2026, the Allowance for Credit Losses on Loans as a percentage of gross loans was 0.95%.

Nonperforming assets, which includes nonaccrual loans and foreclosed real estate were $5.9 million or 0.78% of total assets, as of March 31, 2026, decreasing since December 31, 2025. The ratio of nonaccrual loans to loans receivable was 0.92%, as of March 31, 2026, and 1.08% for December 31, 2025. The decrease from December 31, 2025, was primarily due to the payoff of one non-owner occupied commercial real estate loan in the prior 2026 first quarter.

Total liabilities increased $26.3 million to $591.7 million at March 31, 2026, from $565.4 million at December 31, 2025. The increase can be attributed to an increase in interest-bearing deposits of $27.3 million, partially offset by a decrease in non-interest-bearing deposits.

As of March 31, 2026, the Bank's Tier 1 capital leverage ratio, common equity tier 1 capital ratio, Tier 1 capital ratio and total capital ratios were 10.01%, 15.10%, 15.10% and 16.35% respectively, all in excess of the ratios required to be deemed "well-capitalized." During the first quarter of 2026 the Company did not repurchase shares under its stock repurchase program. Book value per common share was $7.50 at March 31, 2026, compared to $7.34 at December 31, 2025. Tangible common book value per share (which represents common equity less goodwill, divided by the number of shares outstanding) was $7.42 at March 31, 2026, compared to $7.25 at December 31, 2025.

Financial Performance Overview:

Three Months Ended March 31, 2026, vs. December 31, 2025

For the three months ended March 31, 2026, the Company net income totaled $1.1 million, compared to a net income of $660 thousand for the three months ended December 31, 2025. The increase can be attributed to higher net interest income and lower income taxes, partially offset by higher non-interest expense.

Net interest income for the three months ended March 31, 2026 remained increased to $4.7 million despite the lower average loan balance during the current quarter. The Company’s net interest margin increased by 29 basis points to 3.06% for the three months ended March 31, 2026, as compared to 2.77% for the three months ended December 31, 2025. The increase in margin can be attributed to a decrease in interest expense on deposits, and an increase in loan interest income, driven by the receipt of interest on a paid-off loan that was formerly non-accrual, an increase in investment security interest. Our subordinated debt repriced as of January 30, 2026, and now adjusts quarterly at a margin of 579 basis points over the 3-month SOFR rate. The interest rate decreased from 9.63% to 9.46% for the last two months of this quarter.

There was a $21 thousand reversal for credit losses taken for the three months ended March 31, 2026, compared to a $10 thousand reversal for credit losses for the three months ended December 31, 2025. The reversal for credit losses was due to a decrease in the ACL for the loan portfolio and a lower ACL for investments, partially offset by a higher ACL for off-balance sheet positions.

Non-interest income decreased $37 thousand, to $366 thousand for the three months ended March 31, 2026, compared with non-interest income of $403 thousand for the three months ended December 31, 2025. The majority of the decrease can be attributed to lower service charges and fees on loans in the first quarter of 2026. We have not yet received the remaining ERTC installments for the 2021 tax year.

Non-interest expenses totaled $4.0 million for the three months ended March 31, 2026, compared to $3.8 million for the three months ended December 31, 2025. The largest fluctuations quarter over quarter were due to a $333 thousand increase in compensation and benefits, mainly due to incentive compensation paid in the 1^st Quarter of 2026, partially offset by a decrease of $44 thousand in professional fees.

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)

	March 31, 2026			December 31, 2025
	\|------(unaudited)------\|
Assets
Cash and cash equivalents	$	56,504		$	36,645
Securities, net		29,705			11,915
Loans receivable, net:
Real estate mortgage loans		523,100			528,158
Commercial and Lines of Credit		12,474			17,648
Construction Loans		-			-
Home Equity and Consumer Loans		340			379
Deferred costs		3,521			3,544
Allowance for Loan Credit Losses		(5,142	)		(5,142	)
Total loans receivable, net		534,293			544,586
Accrued interest receivable		2,684			2,649
Investment in restricted stock, at cost		3,839			3,846
Goodwill		581			581
Bank premises and equipment, net		4,011			4,128
Repossessed assets		64			-
Right of use lease asset		4,795			5,019
Bank Owned Life Insurance		5,695			5,653
Other Assets		1,540			1,645
Total Assets	$	643,711		$	616,667

Liabilities & Stockholders' Equity
Non-Interest-Bearing Deposits	$	103,805		$	105,966
Interest-Bearing Deposits		407,802			381,531
Brokered Deposits		15,063			15,040
Total Deposits		526,670			502,537
Bond Issue, net of costs		11,340			11,823
Borrowed Money		39,133			39,328
Lease liability		5,083			5,307
Other Liabilities		9,520			6,839
Total Liabilities		591,746			565,834
Stockholders' equity		51,965			50,833
Total liabilities and stockholders' equity	$	643,711		$	616,667


	ES Bancshares, Inc. Consolidated Statement of Income (in thousands)
	Three Months Ended,
	March 31, 2026			December 31, 2025			September 30, 2025
	\|----------------(unaudited)----------------\|
Interest income
Loans	$	7,510		$	7,401		$	7,467
Securities		181			126			149
Other interest-earning assets		464			432			340
Total Interest Income		8,155			7,959			7,956
Interest expense
Deposits		2,721			2,985			3,065
Borrowings		736			735			655
Total Interest Expense		3,457			3,720			3,720
Net Interest Income		4,698			4,239			4,236
Prov for Credit Losses		(21	)		(10	)		(41	)
Net Interest Income after Provision for Credit Losses		4,719			4,249			4,277
Non-interest income
Service charges and fees		301			357			270
Other		65			46			58
Total non-interest income		366			403			328
Non-interest expenses
Compensation and benefits		2,112			1,779			1,839
Occupancy and equipment		624			614			621
Data processing service fees		315			317			338
Professional fees		272			316			204
FDIC & NYS Banking Premiums		101			102			84
Advertising		79			85			100
Insurance		49			47			48
Other		491			490			497
Total non-interest expense		4,043			3,750			3,730
Income(loss) prior to tax expense		1,042			902			874
Income taxes		(66	)		243			237
Net Profit	$	1,108		$	659		$	637


	ES Bancshares, Inc.
	Average Balance Sheet Data
	For the Three Months Ended (dollars in thousands)
	March 31, 2026						December 31, 2025						September 30, 2025
	Avg Bal		Interest		Average		Avg Bal		Interest		Average		Avg Bal		Interest		Average
	Rolling 3 Mos.		Rolling 3 Mos.		Yield/Cost		Rolling 3 Mos.		Rolling 3 Mos.		Yield/Cost		Rolling 3 Mos.		Rolling 3 Mos.		Yield/Cost
Assets
Interest-earning assets:
Loans receivable	$	541,939	$	7,510	5.54	%	$	553,324	$	7,401	5.35	%	$	558,270	$	7,467	5.35	%
Investment securities		21,053		181	3.43	%		14,638		126	3.43	%		16,848		149	3.54	%
Other interest earning assets		50,677		464	3.71	%		43,364		432	3.94	%		31,152		340	4.32	%
Total interest-earning assets		613,669		8,155	5.32	%		611,326		7,959	5.21	%		606,270		7,956	5.25	%
Non-interest earning assets		28,474						14,542						21,221
Total assets	$	642,143					$	625,868					$	627,491
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Demand Deposit accounts	$	39,363	$	36	0.37	%	$	34,442	$	32	0.37	%	$	34,333	$	30	0.35	%
Savings accounts		221,971		1,360	2.48	%		221,921		1,533	2.74	%		212,479		1,511	2.82	%
Certificates of deposit		149,160		1,235	3.36	%		153,046		1,420	3.68	%		159,570		1,525	3.79	%
Total interest-bearing deposits		410,494		2,721	2.69	%		409,408		2,985	2.89	%		406,382		3,065	2.99	%
Borrowings		39,200		454	4.69	%		39,393		463	4.66	%		39,584		465	4.66	%
Subordinated debenture		11,337		282	9.95	%		11,820		272	9.20	%		11,812		190	6.43	%
Total interest-bearing liabilities		461,031		3,457	3.04	%		460,622		3,719	3.20	%		457,778		3,721	3.22	%
Non-interest-bearing demand deposits		104,925						103,510						103,129
Other liabilities		11,118						11,118						16,843
Total non-interest-bearing liabilities		116,043						114,628						119,972
Stockholders' equity		51,610						50,619						49,741
Total liabilities and stockholders' equity	$	642,143					$	625,868					$	627,491
Net interest income			$	4,698					$	4,239					$	4,236
Average interest rate spread (1)					2.27	%					2.01	%					2.03	%
Net interest margin (2)					3.06	%					2.77	%					2.79	%


(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
Five Quarter Performance Ratio Highlights	March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025
Performance Ratios (%) - annualized
Return(loss) on Average Assets		0.71	%		0.42	%		0.41	%		0.66	%		0.35	%
Return(loss) on Average Equity		8.91	%		5.31	%		5.12	%		8.44	%		4.53	%
Return(loss) on Average Tangible Equity		9.02	%		5.37	%		5.18	%		8.55	%		4.59	%
Efficiency Ratio		79.84	%		80.84	%		81.71	%		73.30	%		83.69	%
Yields / Costs (%)
Average Yield - Interest Earning Assets		5.31	%		5.21	%		5.25	%		5.17	%		5.18	%
Average Cost - Interest-bearing Liabilities		3.04	%		3.20	%		3.22	%		3.36	%		3.30	%
Net Interest Margin		3.06	%		2.77	%		2.79	%		2.66	%		2.68	%
Capital Ratios (%)
Equity / Assets		8.07	%		8.25	%		8.07	%		7.66	%		7.65	%
Tangible Equity / Assets		7.99	%		8.16	%		7.98	%		7.58	%		7.56	%
Tier I leverage ratio (a)		10.01	%		10.00	%		9.91	%		9.78	%		9.46	%
Common equity Tier I capital ratio (a)		15.10	%		14.91	%		14.51	%		14.35	%		13.81	%
Tier 1 Risk-based capital ratio (a)		15.10	%		14.91	%		14.51	%		14.35	%		13.81	%
Total Risk-based capital ratio (a)		16.35	%		16.16	%		15.76	%		15.60	%		15.06	%
Stock Valuation
Book Value (c)	$	7.50		$	7.34		$	7.24		$	7.13		$	6.97
Tangible Book Value (c)	$	7.42		$	7.25		$	7.15		$	7.05		$	6.89
Shares Outstanding (b)		6,927			6,926			6,926			6,927			6,927
Asset Quality (%)
ACL / Total Loans		0.95	%		0.94	%		0.93	%		0.93	%		0.91	%
Non Performing Loans / Total Loans		0.92	%		1.08	%		1.10	%		1.13	%		0.96	%
Non Performing Assets / Total Assets		0.78	%		0.96	%		0.98	%		0.98	%		0.86	%

(a) Ratios at Bank level (b) Shares information presented in thousands (c) Share value is in dollars

FAQ

What were ESBS Q1 2026 earnings and EPS?

ESBS reported Q1 2026 net income of $1.108 million and $0.16 diluted EPS. According to the company, this compares with $659 thousand and $0.10 diluted EPS in Q4 2025, driven by higher net interest income and lower income taxes.

How did ESBS deposits and assets change in Q1 2026?

Total deposits increased by $24.1 million and total assets rose to $643.7 million. According to the company, deposit growth was driven primarily by its escrow product and assets increased 4.5% versus 12/31/2025.

What drove ESBS's net interest margin improvement in Q1 2026?

NIM improved to 3.06%, a 29-basis-point increase quarter-over-quarter. According to the company, this resulted from lower deposit interest expense and higher loan and investment interest income, including interest on a reinstated accrual loan.

What is ESBS's capital and book value position after Q1 2026?

Book value per share was $7.50, the eighth consecutive quarterly increase, and CET1 was 15.10%. According to the company, all reported regulatory capital ratios exceed "well-capitalized" thresholds.

Did ESBS repurchase shares in Q1 2026 and what about credit losses?

The company did not repurchase shares under its program during Q1 2026. According to the company, there was a $21 thousand reversal of credit losses for the quarter, reflecting lower ACL for loans and investments.