ES Bancshares, Inc. Anuncia Resultados del Primer Trimestre de 2026; Octavo Trimestre Consecutivo de Crecimiento en Nuestro Valor Contable por Acción.

As of March 31, 2026, total assets were $643.7 million, an increase of $27.4 million, or 4.5%, as compared to total assets of $616.3 million on December 31, 2025. 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 $534.3 million, a decrease of $10.3 million or 1.9% from December 31, 2025. As of March 31, 2026, the Allowance for Credit Losses on Loans as a percentage of gross loans was 0.95%.

Nonperforming assets, which includes nonaccrual loans and foreclosed real estate were $5.9 million or 0.78% of total assets, as of March 31, 2026, decreasing since December 31, 2025. The ratio of nonaccrual loans to loans receivable was 0.92%, as of March 31, 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 prior 2026 first quarter.

Total liabilities increased $26.3 million to $591.7 million at March 31, 2026, from $565.4 million at December 31, 2025. The increase can be attributed to an increase in interest-bearing deposits of $27.3 million, partially offset by a decrease in non-interest-bearing deposits.

As of March 31, 2026, the Bank’s Tier 1 capital leverage ratio, common equity tier 1 capital ratio, Tier 1 capital ratio and total capital ratios were 10.01%, 15.10%, 15.10% and 16.35% respectively, all in excess of the ratios required to be deemed «well-capitalized.» During the first quarter of 2026 the Company did not repurchase shares under its stock repurchase program. Book value per common share was $7.50 at March 31, 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 $7.42 at March 31, 2026, compared to $7.25 at December 31, 2025.

Financial Performance Overview:

Three Months Ended March 31, 2026, vs. December 31, 2025

For the three months ended March 31, 2026, the Company net income totaled $1.1 million, compared to a net income of $660 thousand for the three months ended December 31, 2025. The increase can be attributed to higher net interest income and lower income taxes, partially offset by higher non-interest expense.

Net interest income for the three months ended March 31, 2026 remained increased to $4.7 million despite the lower average loan balance during the current quarter. The Company's net interest margin increased by 29 basis points to 3.06% for the three months ended March 31, 2026, as compared to 2.77% for the three months ended December 31, 2025. The increase in margin can be attributed to a decrease in interest expense on deposits, and an increase in loan interest income, driven by the receipt of interest on a paid-off loan that was formerly non-accrual, an increase in investment security interest. Our subordinated debt repriced as of January 30, 2026, and now adjusts quarterly at a margin of 579 basis points over the 3-month SOFR rate. The interest rate decreased from 9.63% to 9.46% for the last two months of this quarter.

There was a $21 thousand reversal for credit losses taken for the three months ended March 31, 2026, compared to a $10 thousand reversal for credit losses for the three months ended December 31, 2025. The reversal for credit losses was due to a decrease in the ACL for the loan portfolio and a lower ACL for investments, partially offset by a higher ACL for off-balance sheet positions.

Non-interest income decreased $37 thousand, to $366 thousand for the three months ended March 31, 2026, compared with non-interest income of $403 thousand for the three months ended December 31, 2025. The majority of the decrease can be attributed to lower service charges and fees on loans in the first quarter of 2026. We have not yet received the remaining ERTC installments for the 2021 tax year.

Non-interest expenses totaled $4.0 million for the three months ended March 31, 2026, compared to $3.8 million for the three months ended December 31, 2025. The largest fluctuations quarter over quarter were due to a $333 thousand increase in compensation and benefits, mainly due to incentive compensation paid in the 1^st Quarter of 2026, partially offset by a decrease of $44 thousand in professional fees.

About ES Bancshares Inc.
ES Bancshares, Inc. (the “Companyâ€) is incorporated under Maryland law and serves as the holding company for Empire State Bank (the “Bankâ€). 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 “mayâ€, “willâ€, “expectâ€, “believeâ€, “anticipateâ€, “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