ES Bancshares Reports Third Quarter Growth in Earnings

ES Bancshares, Inc. Reports Third Quarter Results
ES Bancshares, Inc. (OTCQX: ESBS), the holding company for Empire State Bank, has shared its financial results for the third quarter of the year, marking a continued positive trend in net income growth. The company reported a net income of $637 thousand, translating to $0.10 per diluted common share, for the quarter ending September 30, compared to a net income of $1.03 million or $0.15 per diluted common share from the previous quarter.
Key Highlights from Financials
This quarter, ES Bancshares saw several significant achievements. Non-interest-bearing deposits surged by $6.8 million compared to the end of the previous year, reflecting the bank's successful strategy in attracting stable deposits. Additionally, the cost of funds dropped to 2.65% compared to 2.72% in the prior quarter. The company's net interest margin also increased to 2.79%, up from 2.66% in the last quarter.
Investments and Earnings
One crucial aspect of this quarter's performance includes the receipt of $384 thousand in Employee Retention Tax Credits and applicable interest. The book value per share for the quarter amounted to $7.24, marking an increase for the sixth consecutive quarter, reinforcing the bank's financial health.
CEO's Insights
Phil Guarnieri, the Director and Chief Executive Officer of ES Bancshares, expressed optimism regarding the third quarter results, stating, "Our focus on enhancing our net interest income and margin through a robust deposit strategy has led to a surge in core earnings. Our goal remains to foster growth through prudent management of assets and liabilities."
Comparative Income Performance
When comparing the financial results from this quarter with the previous one, it's observable that net income decreased due to a reduction in non-interest income. However, this was partially offset by an increase in net interest income and a lower loan loss provision. The bank's net interest income rose to $4.2 million from $4.0 million. Such an improvement reaffirms the effectiveness of their financial strategies.
A Look at Long-term Trends
Year-over-year, net income has markedly improved from $637 thousand last year, demonstrating a significant recovery, which can primarily be attributed to increased net interest income of $2.2 million and a rise in non-interest income by $644 thousand. However, rising non-interest expenses and tax provision remain areas of focus moving forward.
About ES Bancshares, Inc.
The company operates primarily through Empire State Bank, which was established under federal law in 2004 before converting to a New York State commercial bank charter. ES Bancshares continues to prioritize attracting commercial and retail deposits, focusing on maximizing core earnings through sound investment practices.
Selected Balance Sheet Information
As of September 30, 2025, total assets amounted to $621 million, showing a decrease from December 31, 2024. This decline mainly results from scaling back borrowed funds and interest-bearing deposits, underlying the company's commitment to financial prudence. Loans receivable, after considering credit loss provisions, were recorded at $552.9 million, down slightly from the end of last year.
Outlook and Strategy
The strategic outlook appears positive as ES Bancshares plans to continue focusing on enhancing its loan portfolio while effectively managing its liabilities. The third-quarter results elucidate their capacity for resilience amid fluctuating market conditions, showcasing their commitment towards driving steady growth through calculated maneuvers.
Frequently Asked Questions
What were the financial results for the third quarter of 2025?
ES Bancshares reported a net income of $637 thousand or $0.10 per share.
What were the primary drivers for financial performance?
The primary factors included an increase in net interest income and a rise in non-interest-bearing deposits.
How did net interest margin change?
The net interest margin improved to 2.79%, up from 2.66% in the previous quarter.
What is the future outlook for ES Bancshares?
The company maintains a positive outlook, focusing on asset management and prudent growth strategies.
Who is the CEO of ES Bancshares?
Phil Guarnieri serves as the Director and Chief Executive Officer of ES Bancshares.
About The Author
Contact Olivia Taylor privately here. Or send an email with ATTN: Olivia Taylor as the subject to contact@investorshangout.com.
About Investors Hangout
Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/
The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.