ES Bancshares, Inc. Reports Robust Growth in Q2 Earnings
ES Bancshares, Inc. Reports Revenue Growth for the Second Quarter
STaten Island, N.Y. – ES Bancshares, Inc. (OTCQX: ESBS), the holding entity for Empire State Bank, shared impressive fiscal results showcasing a remarkable net income of $1.03 million, equating to $0.15 per diluted common share, for the quarter that concluded on June 30, 2025. This reflects a sharp increase compared to a net income of $546 thousand, or $0.08 per diluted share observed in the previous quarter ending March 31, 2025.
Key Financial Metrics and Growth
In an insightful update, the Company detailed crucial financial data that highlights continued growth and resilience:
- Non-interest-bearing deposits surged by $8.1 million compared to year-end 2024.
- The Cost of Funds rose to 2.72% for the three-month duration ending in June, representing a minor increase from 2.69% in the prior linked quarter.
- ES Bancshares reported a net interest margin reduction to 2.66%, down from 2.68% in the prior quarter.
- During this quarter, the Company gained $384 thousand in Employee Retention Tax Credits along with applicable interest.
- Book value increased for the fifth consecutive quarter, landing at $7.13 per share.
Management Insights on Financial Performance
Phil Guarnieri, the Director and Chief Executive Officer of ES Bancshares, commented, "Our non-interest-bearing deposit growth is a testament to our strategic banking approach. The significant rise in net income can primarily be attributed to receiving Employee Retention Tax Credits from the 2020 fiscal year. We remain adaptable, navigating through an ever-changing economic and regulatory framework effectively."
Balance Sheet Highlights
By June 30, 2025, the total assets of the Company reached $645 million, marking an increase of $8.2 million or 1.3% since December 31, 2024. This growth is mainly attributed to a boost in retail deposits and cash reserves. Loans, net of Allowance for Credit Losses, totaled $552.3 million, a slight decline of $7.0 million, or 1.3% from the previous year-end. Meanwhile, nonperforming assets, which comprise non-accrual loans and foreclosed properties, increased to $6.3 million or 0.98% of total assets as of June 30, reflecting a rise from $5.3 million or 0.84% at year-end 2024.
Progress in Liability Management
Total liabilities grew by $6.4 million to $595.6 million by the end of June, up from $589.2 million at the close of the prior year. This increase is driven by growth in core and brokered deposits—moderated by a decrease in overnight Federal Home Loan Bank (FHLB) borrowings. Enhanced retail and non-interest-bearing accounts have been key drivers of this deposit growth.
Capital Adequacy and Regulatory Compliance
As of June 30, 2025, critical capital ratios reflecting the Bank's financial health exhibited:
- Tier 1 capital leverage ratio at 9.78%
- Common equity tier 1 ratio at 14.35%
- Tier 1 capital ratio also at 14.35%
- Total capital ratios at 15.60%
Looking Ahead: Operational Highlights
Increased net income is a significant feature when anticipating future performance. The net income totaled $1.6 million for the half-year ending on June 30, 2025, relative to $55 thousand recorded the same period last year. The souring in income can largely be attributed to higher net interest income of $1.5 million and augmented non-interest income. The positive shifts in revenue streams depict a promising trend for ES Bancshares as it endeavors to explore new financial avenues and optimize its operational efficiency.
Frequently Asked Questions
What were ES Bancshares's net income results for the second quarter?
ES Bancshares reported a net income of $1.03 million or $0.15 per diluted common share for the second quarter.
How much did non-interest-bearing deposits increase?
Non-interest-bearing deposits increased by $8.1 million, indicating strong consumer confidence and support.
What is the Company's strategy regarding tax credits?
The Company successfully received $384 thousand in Employee Retention Tax Credits, which played a key role in improving their net income.
What are the latest insights from management?
CEO Phil Guarnieri emphasized the adaptability of ES Bancshares amidst economic fluctuations and highlighted the significance of maintaining robust customer relationships.
How did the Company perform overall in terms of asset growth?
Total assets reached $645 million, reflecting an increase of $8.2 million or 1.3% since year-end 2024.
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