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About ES Bancshares, Inc. (Symbol: ESBS)
ES Bancshares, Inc., headquartered in Staten Island, New York, is the holding company for Empire State Bank, a community-oriented financial institution that provides a full suite of banking products and services. Operating through five banking centers and a loan production office, the company focuses on serving businesses and individuals across New York with a personalized approach to banking. Its tagline, 'We take your business personally,' reflects its commitment to building strong relationships and supporting local communities.
Core Business Model
ES Bancshares generates revenue primarily through net interest income, which is the difference between interest earned on loans and securities and interest paid on deposits. The bank’s loan portfolio includes commercial real estate loans, SBA loans, and residential mortgage loans, catering to both business and individual clients. Additionally, the company invests in mortgage-backed securities, U.S. government securities, and other permissible investments to diversify its income streams.
On the deposit side, Empire State Bank emphasizes attracting core deposits, such as interest-bearing, non-maturity accounts, which provide a stable and low-cost funding base. This strategy supports the bank’s efforts to maintain liquidity and manage its cost of funds effectively.
Market Position and Differentiation
Operating in the competitive New York banking market, ES Bancshares differentiates itself through its localized focus, personalized customer service, and community involvement. Unlike larger national banks, it offers customizable financial solutions tailored to the unique needs of its local clientele. This approach helps the company build trust and loyalty among its customers, particularly small-to-medium-sized businesses and individual depositors.
Operational Focus
ES Bancshares places a strong emphasis on operational efficiency and disciplined expense management. Recent initiatives include a cost-cutting program aimed at reducing non-interest expenses and optimizing operational processes. The company also prioritizes maintaining a healthy net interest margin, which has shown consistent improvement through strategies such as realigning its deposit portfolio and reducing high-cost liabilities.
Regulatory Environment
As a state-chartered commercial bank, Empire State Bank is primarily regulated by the New York State Department of Financial Services, while its holding company, ES Bancshares, is overseen by the Federal Reserve. The bank’s deposits are insured by the FDIC, providing an additional layer of security for its customers. The company consistently meets or exceeds the regulatory capital ratios required to be deemed 'well-capitalized,' reflecting its strong financial position.
Industry Context and Challenges
ES Bancshares operates in a challenging industry environment characterized by fluctuating interest rates, rising deposit costs, and competitive pressures from both regional and national banks. The company’s focus on growing core deposits and maintaining asset quality positions it to navigate these challenges effectively. However, nonperforming assets and interest rate sensitivity remain key areas of attention for management.
Conclusion
ES Bancshares, Inc. represents a well-established player in the community banking sector, leveraging its localized focus and personalized service to meet the financial needs of its customers. Through disciplined expense management, strategic deposit growth, and a commitment to regulatory compliance, the company continues to strengthen its position in the competitive New York banking market.
ES Bancshares, Inc. (OTCQX: ESBS) announced an expected recognition of approximately $1.5 million in noninterest income from the sale of its Branch at 68 North Plank Road, Newburgh, NY, to Wallkill Valley Federal Savings and Loan Association. This transaction, initially disclosed on December 23, 2021, is projected to close during the second quarter of 2022.
The sale is part of the Company’s ongoing business strategy to optimize its operations and generate income.
ES Bancshares, Inc. (OTCQX: ESBS) has received approval from the New York Department of Financial Services to relocate its home office from Newburgh to Staten Island. This follows an agreement to sell the Newburgh office, expected to finalize in Q2 2022. CEO Philip Guarnieri emphasized that while Newburgh remains significant, the company is refocusing operations towards Brooklyn, Staten Island, Queens, and nearby areas, aligning with its strategic objectives.
ES Bancshares reported a strong financial performance for the quarter ended December 31, 2021, with a net income of $1.3 million, or $0.20 per share, up from $312 thousand in Q4 2020. Annual earnings reached $4.6 million, significantly surpassing $1.2 million the previous year. Key growth drivers included a 20.9% increase in net interest income to $4.7 million and a higher net interest margin of 3.80%. The company also reported a 15.6% growth in total deposits to $433.7 million.
ES Bancshares, Inc. (OTCQX: ESBS) has announced a definitive agreement to sell its Newburgh branch to Wallkill Valley Federal Savings and Loan Association. The deal involves the sale of approximately $9 million in loans and $67 million in customer deposits. CEO Philip Guarnieri stated this move aligns with the company's strategy to concentrate on economically vibrant areas like Brooklyn and Staten Island. The branch sale, which is expected to finalize in Q2 2022, aims to be immediately accretive to shareholders.
ES Bancshares reported improved financial performance for the quarter and nine months ended September 30, 2021. Quarterly net income reached $1.2 million, or $0.18 per share, up from $616 thousand in the same quarter last year. The net interest margin increased to 3.63% from 3.11%, driven by enhanced interest income and reduced borrowing costs. Nine-month earnings were $3.3 million, or $0.49 per share, compared to $893 thousand a year earlier. Total deposits rose to $415.2 million, marking a 17.4% increase year-over-year.
Empire State Bank has appointed Ralph Branca as Executive Vice President and Chief Credit Officer. Mr. Branca brings over 35 years of community banking experience, particularly in risk management and strategic planning. He previously led Victory State Bank, growing it to a $400 million institution. At Empire State Bank, he will spearhead the lending department, focusing on small to mid-sized businesses. Branca's extensive community involvement positions him to enhance the bank's market presence and support local entrepreneurs.
ES Bancshares, Inc. (OTCQX: ESBS) reported a net income of $1.1 million for the quarter ended June 30, 2021, a significant increase from $372 thousand in the same period last year. Earnings per share rose to $0.16 from $0.06. Key drivers included a $700 thousand rise in net interest income and a $630 thousand reduction in loan loss provisions. The net interest margin improved to 3.43% from 2.94%. Year-to-date earnings also saw growth, totaling $2.1 million for the first half of 2021, up from $277 thousand in 2020.
ES Bancshares, Inc. has successfully upgraded to the OTCQX® Best Market from the Pink® market, commencing trading under the symbol 'ESBS.' This shift aims to enhance visibility and transparency for shareholders and investors. The OTCQX® market is known for its high financial standards and corporate governance, enhancing the company's credibility. CEO Philip Guarnieri expressed optimism about the benefits of this transition, emphasizing improved investor communication.
ES Bancshares, Inc. reported a net income of $1.0 million, or $0.15 per share, for the quarter ended March 31, 2021, a significant turnaround from a $95 thousand loss in the same period of 2020. Key drivers included a $1.3 million increase in net interest income and a $561 thousand reduction in loan loss provisions. The net interest margin improved to 3.48% from 3.02% year-over-year, influenced by a decline in borrowing costs. Total assets rose to $528 million, while loans increased by 24.3%.
Empire State Bank has experienced significant growth during the pandemic, focusing on customer relationships and participation in federal relief programs. Total Business Checking deposits surged by over $75 million, reaching $161 million in February 2021, nearly 100% increase from February 2020. The bank has also distributed approximately $110 million through around 1,200 PPP loans. Empire State Bank emphasizes technology to enhance personal customer service, setting it apart from competitors.
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