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

Rhea-AI Summary

ES Bancshares (OTCQX: ESBS) reported net income of $637,000 (EPS $0.10) for the quarter ended September 30, 2025, down from $1.03M (EPS $0.15) in the prior quarter. Net interest income improved to $4.24M and net interest margin rose to 2.79% (up 13 bps QoQ). Non-interest income fell to $328K, partly due to timing of Employee Retention Tax Credits. Total assets were $621.0M at September 30, 2025 (down 2.5% year-to-date). Loans net totaled $552.9M; nonperforming assets increased to $6.1M (0.98% of assets). Book value per share was $7.24. Capital ratios remain above "well-capitalized" thresholds.

Positive

• Net interest margin +13 bps to 2.79% QoQ
• Net interest income +$217K to $4.24M QoQ
• Nine‑month net interest income +21% to $12.4M
• Capital ratios (CET1/Tier1) at 14.51% and leverage 9.91% (well-capitalized)

Negative

• Net income down ~38% QoQ to $637K for 3Q25
• Non-interest income declined by $791K QoQ to $328K (ERTC timing)
• Nonperforming assets rose to $6.1M (0.98% of assets) from 0.84% at year-end
• Total assets decreased 2.5% YTD to $621.0M

STATEN ISLAND, N.Y., Oct. 22, 2025 (GLOBE NEWSWIRE) -- ES Bancshares, Inc. (OTCQX: ESBS) (the “Company”) the holding company for Empire State Bank, (the “Bank”) today reported net income of $637 thousand, or $0.10 per diluted common share, for the quarter ended September 30, 2025, compared to a net income of $1.03 million, or $0.15 per diluted common share for the quarter ended June 30, 2025.

Key Quarterly Financial Data								2025 Highlights
Performance Metrics	3Q25		2Q25		1Q25			• Non interest-bearing deposits grew by $6.8 million from year end 2024. • The Cost of Funds for the three months ended September 30, 2025, dropped to 2.65% from 2.72% in the prior linked quarter. • For 3 months ended September 30, 2025, the Company’s net interest margin increased to 2.79% compared to 2.66% for the 3 months ended June 30, 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 September 30, 2025, totaled $7.24 per share increasing for the sixth consecutive quarter.
Return on average assets (%)		0.41		0.66		0.35
Return on average equity (%)		5.12		8.44		4.53
Return on average tangible equity (%)		5.18		8.55		4.59
Net interest margin (%)		2.79		2.66		2.68
Income Statement (a)	3Q25		2Q25		1Q25
Net interest income	$	4,236	$	4,019	$	4,112
Non-interest income	$	328	$	1,120	$	349
Net income	$	637	$	1,034	$	546
Earnings per diluted common share	$	0.10	$	0.15	$	0.08
Balance Sheet (a)	3Q25		2Q25		1Q25
Average total loans	$	558,270	$	557,878	$	568,508
Average total deposits	$	509,511	$	508,496	$	506,524
Book value per share	$	7.24	$	7.13	$	6.97
Tangible book value per share	$	7.15	$	7.05	$	6.89
(a) In thousands except for per share amounts

Phil Guarnieri, Director, and Chief Executive Officer of ES Bancshares said “The third quarter of 2025 showed continued improvement in our net interest income and our net interest margin. Our concentration in attracting non-interest-bearing deposits and our reduction in borrowings has helped to increase our core earnings.”

Selected Balance Sheet Information:

September 30, 2025 vs. December 31, 2024

As of September 30, 2025, total assets were $621.0 million, a decrease of $15.7 million, or 2.5%, 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 $552.9 million, a decrease of $6.4 million or 1.3% from December 31, 2024. As of September 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 $6.1 million or 0.98% of total assets, as of September 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 1.09%, as of September 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 in a prior 2025 quarter.

Total liabilities decreased $18.3 million to $570.9 million at September 30, 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 September 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 9.91%, 14.51%, 14.51% and 15.76% respectively, all in excess of the ratios required to be deemed "well-capitalized." During the third quarter of 2025 the Company did not repurchase shares under its stock repurchase program. Book value per common share was $7.24 at September 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 $7.15 at September 30, 2025, compared to $6.81 at December 31, 2024.

Financial Performance Overview:

Three Months Ended September 30, 2025, vs. June 30, 2025

For the three months ended September 30, 2025, the Company net income totaled $637 thousand compared to a net income of $1.0 million for the three months ended June 30, 2025. The decrease can be attributed to lower non-interest income partially offset by higher net interest income and a lower loan loss provision quarter over quarter.

Net interest income for the three months ended September 30, 2025 increased $217 thousand, to $4.2 million from $4.0 million at three months ended June 30, 2025. The Company’s net interest margin increased by thirteen basis points to 2.79% for the three months ended September 30, 2025, as compared to 2.66% for the three months ended June 30, 2025. The increase in margin can be attributed to a decrease of 14 basis points in the Company’s average cost for its interest-bearing liabilities as we have repriced deposits at lower rates coupled with the increase in average yield on interest-bearing assets of 8 basis points in the third quarter.

There was a $41 thousand reversal for credit losses taken for the three months ended September 30, 2025, compared to a $43 thousand provision for credit losses for the three months ended June 30, 2025. The reversal for credit losses was due to a decrease in the ACL for off-balance sheet positions, partially offset by a higher ACL for investments.

Non-interest income decreased $791 thousand, to $328 thousand for the three months ended September 30, 2025, compared with non-interest income of $1.1 million for the three months ended June 30, 2025. The majority of the decreases can be attributed to the receipt of $384 thousand Employee Retention Tax Credits (“ERTC”) plus applicable interest in the second quarter of 2025 and lower service charges and fees on loans in the third quarter of 2025. We have not yet received the remaining ERTC installments for the 2021 tax year.

Non-interest expenses totaled $3.7 million for the three months ended September 30, 2025, compared to $3.8 million for the three months ended June 30, 2025. The largest fluctuations quarter over quarter were due to a $65 thousand increase in other expenses due to additional loan collection expenses, partially offset by a $42 thousand decrease in professional fees, due to reduced legal expenses, $29 thousand decrease in FDIC and NYSDFS premiums and a $22 thousand decrease in marketing expenses.

Nine months ended September 30, 2025 vs. September 30, 2024

For the nine months ended September 30, 2025, net income totaled $2.2 million in comparison to $637 thousand for the nine months ended September 30, 2024. The increase can mainly be attributed to higher net interest income of $2.2 million, increased non-interest income of $644 thousand partially offset by higher non-interest expense of $861 thousand and higher provision for income taxes of $391 thousand.

Net interest income for the nine months ended September 30, 2025, increased 21% or $2.2 million, to $12.4 million from $10.2 million at September 30, 2024. The increase can be attributed to decreased interest expense for deposits of $1.8 million and lower borrowing costs of $241 thousand.

Reversal for credit losses totaled $28 thousand for the nine months ended September 30, 2025, compared to a $10 thousand provision for the nine months ended September 30, 2024.

Non-interest income totaled $1.8 million for the nine months ended September 30, 2025, compared with noninterest income of $1.2 million for the nine months ended September 30, 2024. The increase can be attributed to increased service charges and fees collected, the receipt of the Employee Retention Tax Credit in 2025, and the gain on sale of loans, partially offset by the reduction in extinguishment gain, period over period.

Operating expenses totaled $11.2 million for the nine months ended September 30, 2025, compared to $10.4 million for the nine months ended September 30, 2024, or an increase of 8.3%. The increase in non-interest expenses can be attributed to the increases in other non-interest expenses, professional fees, 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
(845) 451-7825

ES Bancshares, Inc.
Consolidated Statements of Financial Condition
(in thousands)
		September 30,				December 31,
		2025				2024
		|----(unaudited)----|
Assets
Cash and cash equivalents	$	28,338			$	26,713
Securities, net		16,043				22,336
Loans receivable, net:
Real estate mortgage loans		535,667				545,569
Commercial and Lines of Credit		18,463				14,417
Home Equity and Consumer Loans		273				397
Deferred costs		3,694				4,084
Allowance for Loan Credit Losses		(5,169	)			(5,137	)
Total loans receivable, net		552,928				559,330
Accrued interest receivable		2,719				2,628
Investment in restricted stock, at cost		3,853				4,335
Goodwill		581				581
Bank premises and equipment, net		4,310				4,845
Repossessed assets		-				-
Right of use lease assets		5,240				5,894
Bank Owned Life Insurance		5,609				5,489
Other Assets		1,417				4,589
Total Assets	$	621,038			$	636,739
Liabilities & Stockholders' Equity
Non-Interest-Bearing Deposits	$	104,256			$	97,490
Interest-Bearing Deposits		385,982				395,593
Brokered Deposits		17,106				20,750
Total Deposits		507,344				513,833
Bond Issue, net of costs		11,817				11,787
Borrowed Money		39,520				50,083
Lease Liability		5,527				6,172
Other Liabilities		6,714				7,313
Total Liabilities		570,922				589,188
Stockholders' equity		50,116				47,551
Total liabilities and stockholders' equity	$	621,038			$	636,739

ES Bancshares, Inc.
Consolidated Statements of Income
(in thousands)
	Three Months Ended										Nine Months Ended
	September 30, 2025			June 30, 2025			March 31, 2025				September 30, 2025			September 30, 2024
	|--------------(unaudited)--------------|										|----(unaudited)----|
Interest income
Loans	$	7,467		$	7,354		$	7,478			$	22,299		$	21,868
Securities		149			193			213				555			454
Other interest-earning assets		340			279			243				862			1,252
Total Interest Income		7,956			7,826			7,934				23,716			23,574
Interest expense
Deposits		3,065			3,146			3,118				9,329			11,096
Borrowings		655			661			704				2,020			2,261
Total Interest Expense		3,720			3,807			3,822				11,349			13,357
Net Interest Income		4,236			4,019			4,112				12,367			10,217
(Rev)Prov for Credit Losses		(41	)		43			(30	)			(28	)		10
Net Interest Income after (Rev)Prov for Credit Losses		4,277			3,976			4,142				12,395			10,207
Non-interest income
Service charges and fees		270			693			175				1,138			636
Gain on loan sales		-			-			132				132			1
Gain on extinguishment of Sub-debt		-			-			-				-			245
Other		58			427			42				527			271
Total non-interest income		328			1,120			349				1,797			1,153
Non-interest expenses
Compensation and benefits		1,839			1,836			1,689				5,364			5,168
Occupancy and equipment		621			626			669				1,916			1,891
Data processing service fees		338			345			315				998			958
Professional fees		204			246			335				785			561
FDIC & NYS Banking Assessments		84			113			113				310			296
Marketing		100			122			89				311			244
Insurance		48			48			53				149			151
Other		497			432			471				1,400			1,103
Total non-interest expense		3,731			3,768			3,734				11,233			10,372
Income prior to tax expense		874			1,328			757				2,959			988
Income taxes		237			294			211				742			351
Net Income	$	637		$	1,034		$	546			$	2,217		$	637

	ES Bancshares, Inc.
	Average Balance Sheet Data
	For the Three Months Ended (dollars in thousands)
	September 30, 2025						June 30, 2025						September 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	$	558,270	$	7,467	5.35	%	$	557,878	$	7,354	5.27	%	$	566,031	$	7,315	5.17	%
Investment securities		16,848		149	3.54	%		20,844		192	3.69	%		22,480		218	3.87	%
Other interest-earning assets		31,152		339	4.32	%		26,781		280	4.20	%		31,656		428	5.29	%
Total interest-earning assets		606,270		7,956	5.25	%		605,503		7,826	5.17	%		620,167		7,961	5.13	%
Non-interest earning assets		21,221						24,968						17,919
Total assets	$	627,491					$	630,471					$	638,086
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Interest-bearing checking	$	34,333	$	30	0.35	%	$	31,717	$	28	0.35	%	$	33,512	$	55	0.65	%
Savings accounts		212,479		1,511	2.82	%		202,172		1,490	2.96	%		200,248		1,728	3.42	%
Certificates of deposit		159,570		1,525	3.79	%		167,948		1,628	3.89	%		173,577		1,891	4.32	%
Total interest-bearing deposits		406,382		3,065	2.99	%		401,837		3,146	3.14	%		407,337		3,674	3.58	%
Borrowings		39,584		465	4.66	%		40,407		471	4.68	%		52,984		519	3.89	%
Subordinated debenture		11,812		190	6.43	%		11,803		190	6.44	%		12,388		201	6.44	%
Total interest-bearing liabilities		457,778		3,720	3.22	%		454,047		3,807	3.36	%		472,709		4,394	3.69	%
Non-interest-bearing demand deposits		103,129						106,659						104,782
Other liabilities		16,843						20,741						13,842
Total non-interest-bearing liabilities		119,972						127,400						118,624
Stockholders' equity		49,741						49,024						46,753
Total liabilities and stockholders' equity	$	627,491					$	630,471					$	638,086
Net interest income			$	4,236					$	4,019					$	3,567
Average interest rate spread					2.03	%					1.81	%					1.45	%
Net interest margin					2.79	%					2.66	%					2.30	%

Five Quarter Performance Ratio Highlights		Three Months Ended
		September 30, 2025		June 30, 2025		March 31, 2025		December 31, 2024		September 30, 2024
Performance Ratios (%) - annualized
	Return(loss) on Average Assets		0.41		0.66		0.35		0.29		0.36
	Return(loss) on Average Equity		5.12		8.44		4.53		3.94		4.98
	Return(loss) on Average Tangible Equity		5.18		8.55		4.59		3.99		5.04
	Efficiency Ratio		81.71		73.30		83.71		84.58		81.70
Yields / Costs (%)
	Average Yield - Interest Earning Assets		5.25		5.17		5.18		5.17		5.13
	Average Cost - Interest-bearing Liabilities		3.22		3.36		3.30		3.42		3.69
	Net Interest Margin		2.79		2.66		2.68		2.50		2.30
Capital Ratios (%)
	Equity / Assets		8.07		7.66		7.65		7.47		7.44
	Tangible Equity / Assets		7.98		7.58		7.56		7.38		7.36
	Tier I leverage ratio (a)		9.91		9.78		9.46		9.31		9.18
	Common equity Tier I capital ratio (a)		14.51		14.35		13.81		13.68		13.67
	Tier 1 Risk-based capital ratio (a)		14.51		14.35		13.81		13.68		13.67
	Total Risk-based capital ratio (a)		15.76		15.60		15.06		14.93		14.92
Stock Valuation
	Book Value	$	7.24	$	7.13	$	6.97	$	6.89	$	6.85
	Tangible Book Value	$	7.15	$	7.05	$	6.89	$	6.81	$	6.77
	Shares Outstanding (b)		6,926		6,927		6,927		6,900		6,878
Asset Quality (%)
	ACL / Total Loans		0.93		0.93		0.91		0.91		0.90
	Non Performing Loans / Total Loans		1.09		1.13		0.96		0.94		0.91
	Non Performing Assets / Total Assets		0.98		0.98		0.86		0.84		0.81
	(a) Ratios at Bank level (b) Shares information presented in thousands

FAQ

What did ESBS report for net income and EPS in Q3 2025?

ESBS reported net income of $637,000 and diluted EPS of $0.10 for the quarter ended September 30, 2025.

Why did ESBS non-interest income fall in Q3 2025?

Non-interest income decreased by $791K QoQ largely due to receipt of $384K Employee Retention Tax Credits in Q2 and lower service fees in Q3.

How did ESBS net interest margin and net interest income change in Q3 2025?

Net interest margin rose 13 basis points to 2.79% and net interest income increased $217K to $4.24M QoQ.

What happened to ESBS nonperforming assets and loan metrics as of Sept 30, 2025?

Nonperforming assets were $6.1M (0.98% of assets) and loans receivable net were $552.9M as of September 30, 2025.

Are ESBS capital ratios sufficient after Q3 2025 results?

Yes; ESBS reported CET1 and Tier 1 ratios of 14.51% and a Tier 1 leverage ratio of 9.91%, above well-capitalized thresholds.

How did ESBS book value per share change by September 30, 2025?

Book value per share increased to $7.24 at September 30, 2025 from $6.89 at December 31, 2024.