Es Bancshares Stock Price, News & Analysis

ES Bancshares, Inc. (ESBS) is a financial holding company incorporated under Maryland law. According to company disclosures, ES Bancshares serves as the holding company for Empire State Bank, and does not conduct any material business other than through this banking subsidiary. ES Bancshares’ common stock trades on the OTCQX market under the symbol ESBS and is classified in the finance and insurance sector, within the savings institutions and commercial banking space.

The Bank is primarily regulated and supervised by the New York State Department of Financial Services, while ES Bancshares, Inc. is subject to regulation by the Board of Governors of the Federal Reserve System. The Bank’s deposits are insured up to applicable legal limits by the Federal Deposit Insurance Corporation (FDIC), providing deposit insurance protection in line with U.S. banking regulations.

Empire State Bank was originally organized under federal law in 2004 as a national bank regulated by the Office of the Comptroller of the Currency. In March 2009, it converted its charter to a New York State commercial bank charter. This charter conversion placed the Bank under state-level supervision while it continues to operate as a commercial bank.

Core banking activities and business focus

Company disclosures describe the Bank’s principal business as attracting commercial and retail deposits in New York and investing those deposits primarily in loans. The loan portfolio consists of:

• Commercial real estate loans
• Other commercial loans, including Small Business Administration (SBA) loans
• Mortgage loans secured by one-to-four-family residences

In addition to its loan activities, the Bank invests in a range of securities and other permissible instruments. These include mortgage-backed securities, securities issued by the U.S. Government and its agencies, corporate securities, and other investments permitted by applicable law and regulations. These activities reflect a traditional commercial banking model centered on deposit gathering and lending, supplemented by an investment portfolio.

Geographic footprint and operations

Empire State Bank reports that it operates from five Banking Center locations, a Loan Production Office, and its Corporate Headquarters, all located in Staten Island, New York. Through these locations, the Bank focuses on serving commercial and retail customers in its New York markets by offering deposit products and extending credit through the loan types described in its public releases.

Regulatory and capital framework

As a regulated depository institution, Empire State Bank is subject to capital and supervisory standards. In multiple earnings releases, the Company notes that the Bank’s Tier 1 capital leverage ratio, common equity tier 1 capital ratio, Tier 1 capital ratio and total capital ratio are in excess of the thresholds required to be deemed “well-capitalized” under applicable regulatory guidelines. These references underscore the importance of capital adequacy and asset quality within ES Bancshares’ business model.

Earnings releases and financial reporting

ES Bancshares regularly issues quarterly and annual earnings releases through Globe Newswire. These releases include consolidated statements of financial condition and income, as well as narrative sections such as “Financial Performance Overview” and “Selected Balance Sheet Information.” The Company highlights metrics such as net interest income, net interest margin, non-interest income, non-interest expense, and loan and deposit balances, along with commentary on factors affecting these results, such as deposit mix, borrowing costs, and loan portfolio performance.

The Company also discloses information on credit quality, including nonperforming assets, nonaccrual loans, and the allowance for credit losses on loans. These disclosures provide insight into the Bank’s asset quality and risk management practices over time, as described in its earnings announcements.

Business model characteristics

Based on the Company’s own description, ES Bancshares’ business model is centered on:

• Gathering commercial and retail deposits in New York
• Deploying those deposits primarily into commercial real estate loans, other commercial loans including SBA loans, and one-to-four-family residential mortgage loans
• Maintaining an investment portfolio of mortgage-backed securities, U.S. Government and agency securities, and corporate securities, within the limits of applicable regulations
• Operating under a regulatory framework that includes oversight by the Federal Reserve, the New York State Department of Financial Services, and the FDIC

Company communications emphasize that ES Bancshares does not engage in material activities outside of its banking subsidiary, Empire State Bank. The Bank’s activities, as described, align with those of a community-oriented commercial bank focused on deposit gathering and lending within its regional market.

Information access and investor communications

ES Bancshares states in its public releases that its annual report, quarterly earnings releases and press releases are available free of charge through its website, as soon as reasonably practicable. These materials provide additional detail on financial performance, capital ratios, asset quality, and other matters relevant to shareholders and other stakeholders.

Frequently asked questions (FAQ)

• What is ES Bancshares, Inc.?
  ES Bancshares, Inc. is a Maryland-incorporated holding company for Empire State Bank. The Company reports that it does not conduct any material business other than through this banking subsidiary.
• What does Empire State Bank do?
  According to Company disclosures, Empire State Bank’s principal business is attracting commercial and retail deposits in New York and investing those deposits primarily in loans, including commercial real estate loans, other commercial loans such as SBA loans, and mortgage loans secured by one-to-four-family residences.
• How does ES Bancshares generate revenue?
  Earnings releases show that ES Bancshares generates revenue primarily through net interest income on loans and securities, and non-interest income such as service charges and fees, gains on loan sales, and other banking-related income items.
• Where does Empire State Bank operate?
  The Bank reports that it operates from five Banking Center locations, a Loan Production Office, and its Corporate Headquarters in Staten Island, New York, serving commercial and retail customers in its New York markets.
• What types of loans does the Bank offer?
  Company disclosures state that the Bank’s loan portfolio consists of commercial real estate loans, other commercial loans including SBA loans, and mortgage loans secured by one-to-four-family residences.
• What kinds of investments does ES Bancshares hold?
  In addition to loans, the Bank invests in mortgage-backed securities, securities issued by the U.S. Government and its agencies, corporate securities, and other investments permitted by applicable law and regulations.
• How are ES Bancshares and Empire State Bank regulated?
  ES Bancshares, Inc. is subject to regulation by the Board of Governors of the Federal Reserve System. Empire State Bank is primarily regulated and supervised by the New York State Department of Financial Services, and its deposits are insured by the FDIC up to legal limits.
• What is the Bank’s charter history?
  Empire State Bank was organized in 2004 as a national bank regulated by the Office of the Comptroller of the Currency. In March 2009, it converted to a New York State commercial bank charter, bringing it under state banking supervision.
• Is ES Bancshares considered well-capitalized?
  In multiple earnings releases, the Company reports that the Bank’s Tier 1 leverage, common equity tier 1, Tier 1, and total capital ratios exceed the regulatory thresholds to be deemed “well-capitalized.”
• Where can investors find ES Bancshares’ financial information?
  The Company states that its annual report, quarterly earnings releases, and press releases are made available free of charge through its website, where they can be accessed as soon as reasonably practicable after publication.