ES Bancshares, Inc. Announces the Receipt of the First Installment of Its Employee Retention Tax Credit

Rhea-AI Summary

ES Bancshares (OTCQX: ESBS) has received its first installment of $268,000 from its Employee Retention Tax Credit (ERC) claim, which will be reflected in Q2 2025 earnings. The company filed a total claim of $1.2 million plus interest with the IRS in 2023 for tax credits related to qualified wages paid during the COVID-19 pandemic for 2020 and 2021.

While the ERC is generally non-taxable income, ES Bancshares must file amended tax returns for 2020 and 2021 to reduce previously reported payroll tax deductions, resulting in increased federal income taxes for those periods. The company anticipates receiving additional ERC installments throughout 2025 and 2026.

Positive

• Receipt of first ERC installment of $268,000, improving Q2 2025 earnings
• Total ERC claim of $1.2 million plus interest to be received in installments
• ERC payments are considered non-taxable income

Negative

• Need to file amended tax returns for 2020-2021, increasing federal income taxes for those periods
• Extended payout period through 2026 for remaining ERC installments

STATEN ISLAND, N.Y., May 20, 2025 (GLOBE NEWSWIRE) -- ES Bancshares, Inc. (OTCQX: ESBS) (the “Company”) the holding company for Empire State Bank, (the “Bank”) today reported that the Company received a check for the first installment of $268 thousand of its Employee Retention Tax Credit. The first installment will be reported in our second quarter 2025 earnings results. The Bank filed a claim in 2023 to the Internal Revenue Service (“IRS”) for $1.2 million, plus applicable interest, in Employee Retention Credits (“ERC”) for the years 2020 and 2021. ERC are a refundable payroll tax credit for eligible businesses that paid qualified wages during the COVID-19 pandemic. ERC are generally considered non-taxable income but also require the Company to file amended tax returns for 2020 and 2021 to reduce the associated payroll tax deductions that were previously reported as normal business expenses, which increases the federal income taxes due for those periods. The Company expects to receive multiple ERC installments throughout 2025 and 2026.

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

FAQ

How much is ES Bancshares (ESBS) receiving in Employee Retention Tax Credit?

ES Bancshares is receiving a total of $1.2 million plus interest in Employee Retention Tax Credits, with the first installment of $268,000 received in Q2 2025.

When will ESBS receive the remaining Employee Retention Tax Credit payments?

ES Bancshares expects to receive multiple ERC installments throughout 2025 and 2026.

Is the Employee Retention Tax Credit taxable for ESBS?

The ERC is generally non-taxable income, but requires amended tax returns for 2020-2021 to reduce payroll tax deductions, resulting in increased federal income taxes for those periods.

What period does ES Bancshares' Employee Retention Tax Credit cover?

The ERC claim covers qualified wages paid during the COVID-19 pandemic for the years 2020 and 2021.