STATEN ISLAND, N.Y., Oct. 20, 2026 (GLOBE NEWSWIRE) -- ES Bancshares, Inc. (OTCQX: ESBS) (the "Company") the holding company for Empire State Bank, (the "Bank") today reported net income of $1.0 million, or $0.14 per diluted common share, for the quarter ended September 30, 2026, compared to a net income of $882 thousand, or $0.13 per diluted common share for the quarter ended June 30, 2026.
Key Quarterly Financial Data
2026 Highlights
Performance Metrics
3Q26
2Q26
1Q26
•Our core deposits grew by $3.5 million from year end 2025 inclusive of a $12.1 million increase in non-interest bearing deposits.
Return on average assets (%)
0.65
0.57
0.71
Return on average equity (%)
7.54
6.72
8.91
Return on average tangible equity (%)
7.63
6.80
9.02
Net interest margin (%)
3.21
3.10
3.06
•The Cost of Funds for the three months ended September 30, 2026, dropped to 2.36% from 2.41% in the prior linked quarter.
Income Statement (a)
3Q26
2Q26
1Q26
Net interest income
$
4,814
$
4,666
$
4,698
Non-interest income
$
369
$
317
$
366
•For 3 months ended September 30, 2026, the Company's net interest margin increased to 3.21% compared to 3.10% for the 3 months ended June 30, 2026.
Net income
$
1,004
$
882
$
1,108
Earnings per diluted common share
$
0.14
$
0.13
$
0.16
Balance Sheet (a)
3Q26
2Q26
1Q26
•Book value for the quarter ended September 30, 2026, totaled $7.78 per share increasing for the tenth consecutive quarter.
Average total loans
$
525,813
$
533,801
$
541,939
Average total deposits
$
508,855
$
503,221
$
515,419
Book value per share
$
7.78
$
7.64
$
7.50
Tangible book value per share
$
7.69
$
7.56
$
7.42
(a) In thousands except for per share amounts
Phil Guarnieri, Director, and Chief Executive Officer of ES Bancshares said "We have increased our earnings per share, net interest margin and our net interest income this quarter. Our book value per share has grown to $7.78. Our cost containment program and greater efficiencies have contributed to our improved performance this quarter."
Selected Balance Sheet Information:
September 30, 2026 vs. December 31, 2025
As of September 30, 2026, total assets were $596.1 million, a decrease of $20.6 million, or 3.3%, as compared to total assets of $616.7 million on December 31, 2025. The decrease can be attributed to our reductions in our borrowed funds and brokered deposits partially offset by our increase in non-interest deposits and a corresponding decrease in loans receivable of $26.4 million.
Loans receivable, net of Allowance for Credit Losses on Loans totaled $518.2 million, a decrease of $26.4 million or 4.9% from December 31, 2025. As of September 30, 2026, the Allowance for Credit Losses on Loans as a percentage of gross loans was 0.98%.
Nonperforming assets, which includes nonaccrual loans and foreclosed real estate were $4.9 million or 0.83% of total assets, as of September 30, 2026, decreasing from $5.9 million, or $958 thousand, from December 31, 2025. The ratio of nonaccrual loans to loans receivable, net was 0.95%, as of September 30, 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 first quarter of 2026.
Total liabilities decreased $23.3 million to $542.5 million at September 30, 2026, from $565.8 million at December 31, 2025. The decrease can be attributed to decrease in borrowed money of $13.6 million and a decrease in brokered deposits of $15.0 million, partially offset by an increase in non-interest deposits of $12.1 million.
As of September 30, 2026, the Bank's Tier 1 capital leverage ratio, common equity tier 1 capital ratio, Tier 1 capital ratio and total capital ratios were 10.35%, 15.62%, 15.62% and 16.87% respectively, all in excess of the ratios required to be deemed "well-capitalized." During the third quarter of 2026 the Company did not repurchase any shares. We have terminated our second stock repurchase plan. Book value per common share was $7.78 at September 30, 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 $7.69 at September 30, 2026, compared to $7.25 at December 31, 2025.
Financial Performance Overview:
Three Months Ended September 30, 2026, vs. June 30, 2026
For the three months ended September 30, 2026, the Company net income totaled $1.0 million, compared to a net income of 882 thousand for the three months ended June 30, 2026. The increase can be attributed to higher net interest income partially offset by higher income taxes.
Net interest income for the three months ended September 30, 2026 increase $148 thousand to $4.8 million, from $4.7 million in the June quarter despite the lower average loan balance during the current quarter. The Company's net interest margin increased by 11 basis points to 3.21% for the three months ended September 30, 2026, as compared to 3.10% for the three months ended June 30, 2026. The increase in margin can be attributed to a decrease in interest expense on borrowings. Our subordinated debt repriced as of Jul 30, 2026, and adjusts quarterly at a margin of 579 basis points over the 3-month SOFR rate.
There was a $44 thousand reversal for credit losses taken for the three months ended September 30, 2026, compared to a $52 thousand reversal for credit losses for the three months ended June 30, 2026. The reversal for credit losses was due to reversal of the loan and investment allowance for credit losses due to the lower outstanding balances of each respective category.
Non-interest income increased $52 thousand, to $369 thousand for the three months ended September 30, 2026, compared with non-interest income of $317 thousand for the three months ended June 30, 2026. The majority of the increase can be attributed to higher service charges and fees on loans in the third quarter of 2026. We have not yet received the remaining ERTC installments for the 2021 tax year.
Non-interest expenses remained at $3.9 million for the three months ended September 30, 2026, and for the three months ended June 30, 2026. The largest fluctuations quarter over quarter were due to a $196 thousand increase in compensation and benefits, partially offset by a decrease of $106 thousand in professional fees and a $49 thousand decrease in marketing.
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)
September 30,
2026
December 31,
2025
(unaudited)
Assets
Cash and cash equivalents
$
22,169
$
36,645
Securities, net
33,403
11,915
Loans receivable, net:
Real estate mortgage loans
507,359
528,158
Commercial and Lines of Credit
12,433
17,648
Home Equity and Consumer Loans
284
379
Deferred costs
3,217
3,544
Allowance for Loan Credit Losses
(5,121
)
(5,142
)
Total loans receivable, net
518,172
544,586
Accrued interest receivable
3,034
2,649
Investment in restricted stock, at cost
3,215
3,846
Goodwill
581
581
Bank premises and equipment, net
3,713
4,128
Repossessed assets
-
-
Right of use lease asset
4,345
5,019
Bank Owned Life Insurance
5,785
5,653
Other Assets
1,671
1,645
Total Assets
$
596,088
$
616,667
Liabilities & Stockholders' Equity
Non-Interest-Bearing Deposits
$
118,108
$
105,966
Interest-Bearing Deposits
372,927
381,531
Brokered Deposits
-
15,040
Total Deposits
491,035
502,537
Bond Issue, net of costs
11,359
11,823
Borrowed Money
25,737
39,328
Lease liability
4,624
5,307
Other Liabilities
9,765
6,839
Total Liabilities
542,520
565,834
Stockholders' equity
53,568
50,833
Total liabilities and stockholders' equity
$
596,088
$
616,667
ES Bancshares, Inc. Consolidated Statement of Income (in thousands)
Three Months Ended,
September 30, 2026
June 30, 2026
March 31, 2026
(unaudited)
Interest income
Loans
$
7,397
$
7,383
$
7,510
Securities
230
149
181
Other interest-earning assets
445
463
464
Total Interest Income
8,072
7,995
8,155
Interest expense
Deposits
2,606
2,602
2,721
Borrowings
652
727
736
Total Interest Expense
3,258
3,329
3,457
Net Interest Income
4,814
4,666
4,698
Reversal of Credit Losses
(44
)
(52
)
(21
)
Net Interest Income after Provision for Credit Losses
4,858
4,718
4,719
Non-interest income
Service charges and fees
320
270
301
Other
49
47
65
Total non-interest income
369
317
366
Non-interest expenses
Compensation and benefits
2,096
1,900
2,112
Occupancy and equipment
618
615
624
Data processing service fees
333
326
315
Professional fees
199
305
272
FDIC & NYS Banking Premiums
80
96
101
Marketing
73
122
79
Insurance
48
48
49
Other
453
451
491
Total non-interest expense
3,900
3,863
4,043
Income(loss) prior to tax expense
1,327
1,172
1,042
Income taxes
323
290
(66
)
Net Profit
$
1,004
$
882
$
1,108
ES Bancshares, Inc.
Average Balance Sheet Data
For the Three Months Ended (dollars in thousands)
September 30, 2026
June 30, 2026
March 31, 2026
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
$
525,813
$
7,397
5.63
%
$
533,801
$
7,383
5.53
%
$
541,939
$
7,510
5.54
%
Investment securities
25,910
230
3.55
%
18,079
149
3.29
%
21,053
181
3.43
%
Other interest earning assets
48,646
445
3.71
%
49,961
463
3.76
%
50,677
464
3.71
%
Total interest-earning assets
600,369
8,072
5.38
%
601,841
7,995
5.31
%
613,669
8,155
5.31
%
Non-interest earning assets
13,439
14,932
28,474
Total assets
$
613,808
$
616,773
$
642,143
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Demand Deposit accounts
$
37,787
$
35
0.36
%
$
36,234
$
35
0.38
%
$
39,363
$
36
0.37
%
Savings accounts
225,436
1,327
2.34
%
214,768
1,282
2.39
%
221,971
1,360
2.48
%
Certificates of deposit
134,906
1,244
3.66
%
146,949
1,285
3.51
%
149,160
1,235
3.36
%
Total interest-bearing deposits
398,130
2,606
2.60
%
397,951
2,602
2.62
%
410,494
2,721
2.69
%
Borrowings
30,859
361
4.64
%
38,002
444
4.69
%
39,200
454
4.69
%
Subordinated debenture
11,356
291
10.20
%
11,346
283
9.97
%
11,337
282
9.95
%
Total interest-bearing liabilities
440,344
3,258
2.94
%
447,299
3,329
2.98
%
461,031
3,457
3.04
%
Non-interest-bearing demand deposits
110,726
105,270
104,925
Other liabilities
9,473
11,717
24,577
Total non-interest-bearing liabilities
120,199
116,987
129,502
Stockholders' equity
53,265
52,487
51,610
Total liabilities and stockholders' equity
$
613,808
$
616,773
$
642,143
Net interest income
$
4,814
$
4,666
$
4,698
Average interest rate spread (1)
2.44
%
2.33
%
2.27
%
Net interest margin (2)
3.21
%
3.10
%
3.06
%
(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
September 30, 2026
June 30, 2026
March 31, 2026
December 31, 2025
September 30, 2025
Performance Ratios (%) - annualized
Return on Average Assets
0.65
%
0.57
%
0.71
%
0.42
%
0.41
%
Return on Average Equity
7.54
%
6.72
%
8.91
%
5.31
%
5.12
%
Return on Average Tangible Equity
7.63
%
6.80
%
9.02
%
5.37
%
5.18
%
Efficiency Ratio
75.23
%
77.52
%
79.84
%
80.84
%
81.71
%
Yields / Costs (%)
Average Yield - Interest Earning Assets
5.38
%
5.31
%
5.31
%
5.21
%
5.25
%
Average Cost - Interest-bearing Liabilities
2.94
%
2.98
%
3.04
%
3.20
%
3.22
%
Net Interest Margin
3.21
%
3.10
%
3.06
%
2.77
%
2.79
%
Capital Ratios (%)
Equity / Assets
8.99
%
8.52
%
8.07
%
8.25
%
8.07
%
Tangible Equity / Assets
8.90
%
8.44
%
7.99
%
8.16
%
7.98
%
Tier I leverage ratio (a)
10.35
%
10.13
%
10.01
%
10.00
%
9.91
%
Common equity Tier I capital ratio (a)
15.62
%
15.07
%
15.10
%
14.91
%
14.51
%
Tier 1 Risk-based capital ratio (a)
15.62
%
15.07
%
15.10
%
14.91
%
14.51
%
Total Risk-based capital ratio (a)
16.87
%
16.32
%
16.35
%
16.16
%
15.76
%
Stock Valuation
Book Value (c)
$
7.78
$
7.64
$
7.50
$
7.34
$
7.24
Tangible Book Value (c)
$
7.69
$
7.56
$
7.42
$
7.25
$
7.15
Shares Outstanding (b)
6,886
6,887
6,927
6,926
6,926
Asset Quality (%)
ACL / Total Loans
0.98
%
0.97
%
0.95
%
0.94
%
0.93
%
Non Performing Loans / Total Loans, net
0.95
%
0.93
%
0.92
%
1.08
%
1.10
%
Non Performing Assets / Total Assets
0.83
%
0.80
%
0.78
%
0.96
%
0.98
%
(a) Ratios at Bank level (b) Shares information presented in thousands (c) Share value is in dollars
