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

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 HighlightsPerformance Metrics3Q252Q251Q25 • 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)3Q252Q251Q25 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)3Q252Q251Q25 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 Loans273 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, 2025June 30, 2025 March 31, 2025 September 30, 2025September 30, 2024 |--------------(unaudited)--------------| |----(unaudited)----|Interest income Loans$7,467 $7,354 $7,478 $22,299 $21,868Securities 149 193 213 555 454Other interest-earning assets 340 279 243 862 1,252Total Interest Income 7,956 7,826 7,934 23,716 23,574Interest expense Deposits 3,065 3,146 3,118 9,329 11,096Borrowings 655 661 704 2,020 2,261Total Interest Expense 3,720 3,807 3,822 11,349 13,357Net Interest Income 4,236 4,019 4,112 12,367 10,217(Rev)Prov for Credit Losses (41) 43 (30) (28) 10Net Interest Income after (Rev)Prov for Credit Losses 4,277 3,976 4,142 12,395 10,207Non-interest income Service charges and fees 270 693 175 1,138 636Gain on loan sales - - 132 132 1Gain on extinguishment of Sub-debt - - - - 245Other 58 427 42 527 271Total non-interest income 328 1,120 349 1,797 1,153Non-interest expenses Compensation and benefits 1,839 1,836 1,689 5,364 5,168Occupancy and equipment 621 626 669 1,916 1,891Data processing service fees 338 345 315 998 958Professional fees 204 246 335 785 561FDIC & NYS Banking Assessments 84 113 113 310 296Marketing 100 122 89 311 244Insurance 48 48 53 149 151Other 497 432 471 1,400 1,103Total non-interest expense 3,731 3,768 3,734 11,233 10,372Income prior to tax expense 874 1,328 757 2,959 988Income taxes 237 294 211 742 351Net 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, 2025June 30, 2025September 30, 2024 Avg BalInterestAverageAvg BalInterestAverageAvg BalInterestAverage RollingRollingRollingRollingRollingRollingAssets3 Mos.3 Mos.Yield/Cost3 Mos.3 Mos.Yield/Cost3 Mos.3 Mos.Yield/CostInterest-earning assets: Loans receivable$558,270$7,4675.35%$557,878$7,3545.27%$566,031$7,3155.17%Investment securities 16,848 1493.54% 20,844 1923.69% 22,480 2183.87%Other interest-earning assets 31,152 3394.32% 26,781 2804.20% 31,656 4285.29%Total interest-earning assets 606,270 7,9565.25% 605,503 7,8265.17% 620,167 7,9615.13%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$300.35%$31,717$280.35%$33,512$550.65%Savings accounts 212,479 1,5112.82% 202,172 1,4902.96% 200,248 1,7283.42%Certificates of deposit 159,570 1,5253.79% 167,948 1,6283.89% 173,577 1,8914.32%Total interest-bearing deposits 406,382 3,0652.99% 401,837 3,1463.14% 407,337 3,6743.58%Borrowings 39,584 4654.66% 40,407 4714.68% 52,984 5193.89%Subordinated debenture 11,812 1906.43% 11,803 1906.44% 12,388 2016.44%Total interest-bearing liabilities 457,778 3,7203.22% 454,047 3,8073.36% 472,709 4,3943.69%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 HighlightsThree Months EndedSeptember 30, 2025June 30, 2025March 31, 2025December 31, 2024September 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