ES Bancshares, Inc. Announces Fourth Quarter 2025 Results; Seventh Consecutive Quarter of Growth in Our Book Value per Share

Rhea-AI Summary

ES Bancshares (OTCQX: ESBS) reported 4Q25 net income of $660K or $0.10 per diluted share, up from $637K in 3Q25. For the year, net income rose to $2.9M from $1.1M in 2024. Net interest income for 2025 increased 17.8% to $16.6M, and non-interest income grew to $2.2M. Book value per share was $7.34 at Dec 31, 2025, marking the seventh consecutive quarterly increase. Total assets were $616.3M, down 3.2% YoY. Nonperforming assets were $5.9M (0.96% of assets). Capital ratios remained strong: Tier 1 leverage 10.00%, CET1 14.91%.

Positive

• Net income for 2025 rose to $2.9M from $1.1M (YoY)
• Net interest income increased 17.8% to $16.6M in 2025
• Non-interest income increased to $2.2M in 2025
• Book value per share reached $7.34, seventh consecutive quarterly increase
• Capital ratios well above requirements: CET1 14.91%

Negative

• Nonperforming assets increased 11.3% year-over-year to $5.9M
• Subordinated debt repriced from 6.00% to 9.63% for Oct–Dec 2025

News Market Reaction

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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
Performance Metrics	4Q25		3Q25		2Q25			• 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% in the prior 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 second quarter of 2025.
Income Statement (a)	4Q25		3Q25		2Q25
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
Balance Sheet (a)	4Q25		3Q25		2Q25			• Book value for the quarter ended December 31, 2025, totaled $7.34 per share increasing for the seventh consecutive 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, 2025				December 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, 2025				September 30, 2025				June 30, 2025			December 31, 2025				December 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 Rolling 3 Mos.		Interest Rolling 3 Mos.		Average Yield/Cost	Avg Bal Rolling 3 Mos.		Interest Rolling 3 Mos.		Average Yield/Cost	Avg Bal Rolling 3 Mos.		Interest Rolling 3 Mos.		Average 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 31, 2025	September 30, 2025	June 30, 2025	March 31, 2025	December 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

FAQ

What were ES Bancshares (ESBS) 4Q25 earnings and EPS on January 21, 2026?

4Q25 net income was $660K, or $0.10 diluted EPS.

How did ESBS perform for the full year 2025 compared to 2024?

Full-year 2025 net income was $2.9M versus $1.1M in 2024; net interest income rose 17.8%.

What is ES Bankshares' book value per share and has it been rising?

Book value per share was $7.34 at Dec 31, 2025, marking the seventh consecutive quarterly increase.

Did ESBS report any changes in asset quality or nonperforming assets for 2025?

Nonperforming assets increased to $5.9M (0.96% of assets), up from $5.3M (0.84%) at Dec 31, 2024.

How strong are ESBS's capital ratios as of Dec 31, 2025?

Capital ratios were robust: Tier 1 leverage 10.00%, CET1 14.91%, all above "well-capitalized" thresholds.

Did ESBS's funding costs or debt terms change in 4Q25?

Yes; subordinated debt repriced and effectively increased the rate to 9.63% for the last two months of 4Q25.