STATEN ISLAND, N.Y., April 30, 2024 (GLOBE NEWSWIRE) -- ES Bancshares, Inc. (OTCQX:ESBS) (the "Company") the holding company for Empire State Bank, (the "Bank") today reported a net loss of $103 thousand, or $0.02 per diluted common share, for the quarter ended March 31, 2024 compared to net income of $84 thousand or $0.01 per diluted common share for the quarter ended December 31, 2023.                             Key Quarterly Financial Data   2024 Highlights Performance Metrics 1Q24     4Q23     1Q23     •Non-interest expenses decreased $295 thousand or 8% quarter over quarter.•Average deposits grew 3.4%, while the Company's average loan balance remained stable quarter over quarter.• Net interest margin for the first quarter of 2.12% narrowed from 2.28% as increases to the rates paid on interest-bearing liabilities outpaced the rise in yields of interest-earning assets•Non-Performing Loans / Total Loans and the Company's ratio of Non-Performing Assets / Total Assets remains favorable at 0.24% and 0.21% respectively. (Loss) return on average assets (%)   (0.07 )     0.05       0.09     (Loss) return on average equity (%)   (0.90 )     0.73       1.17     (Loss) return on average tangible equity (%)   (0.91 )     0.74       1.18     Net interest margin (%)   2.12       2.28       2.67                   Income Statement (a) 1Q24     4Q23     1Q23     Net interest income $ 3,203     $ 3,454     $ 3,977     Non-interest income $ 215     $ 322     $ 256     Net (loss) income $ (103 )   $ 84     $ 133     (Loss) earnings per diluted common share $ (0.02 )   $ 0.01     $ 0.02                   Balance Sheet (a) 1Q24     4Q23     1Q23     Average total loans $ 567,526     $ 569,515     $ 555,919     Average total deposits $ 486,323     $ 470,394     $ 487,816     Book value per share $ 6.75     $ 6.83     $ 6.79     Tangible book value per share $ 6.67     $ 6.74     $ 6.71     (a) In thousands except for per share amounts   "Despite the continued challenging interest environment, through the Bank's core product offerings, the Company was able to grow average deposits during the first three months of 2024. The deposit inflows and asset amortization were partially utilized to repay wholesale funding, with borrowed money down 21% and brokered deposit funding down 8% from December 31, 2023. This funding management is expected to continue as the Company aggressively looks to reduce its cost of funds," said Phil Guarnieri, Director, and Chief Executive Officer of ES Bancshares. Mr. Guarnieri also stated, "In addition to maintaining strong capital and asset quality ratios quarter over quarter, the Company's previously announced cost-cutting initiative has gotten off to a strong start, with expenses down $295 thousand in linked quarters. These cost savings helped offset some of the pressure seen during the quarter on net interest income. Further, during the quarter multiple directors exercised options expanding the internal ownership while supporting ESBS during this tenuous economic time." Selected Balance Sheet Information: March 31, 2024 vs. December 31, 2023 As of March 31, 2024, total assets were $628.6 million, a decrease of $10.1 million, or 1.6%, as compared to total assets of $638.7 million on December 31, 2023. The decrease can be attributed to less cash held quarter over quarter, as during the first quarter of 2024 the funds were utilized to repay Federal Home Loan Bank (FHLB) borrowings. Loans receivable, net of Allowance for Credit Losses on Loans totaled $560.4 million, a decrease of $3.5 million or 0.6% from December 31, 2023. As of March 31, 2024, the Allowance for Credit Losses on Loans as a percentage of gross loans was 0.89%. Nonperforming assets, which includes nonaccrual loans and foreclosed real estate were $1.3 million or 0.21% of total assets, as of March 31, 2024, decreasing from $1.4 million or 0.22% of total assets at December 31, 2023. The ratio of nonaccrual loans to loans receivable was 0.24% and 0.22%, as of March 31, 2024, and December 31, 2023, respectively. Total liabilities decreased $10.4 million to $582.5 from $592.9 million. The majority of the decrease can be attributed to a 21% decrease quarter over quarter in FHLB borrowings, partially offset by core deposit inflows. The growth in deposits was driven by an increase in interest-bearing non-maturity deposit accounts. As of March 31, 2024, the Bank's Tier 1 capital leverage ratio, common equity tier 1 capital ratio, Tier 1 capital ratio and total capital ratios were 9.52%, 13.58%, 13.58% and 14.83%, respectively, all in excess of the ratios required to be deemed "well-capitalized." During the first quarter 2024 the Company did not repurchase shares under its stock repurchase program. Book value per common share was $6.75 at March 31, 2024 compared to $6.83 at December 31, 2023. Tangible common book value per share (which represents common equity less goodwill, divided by the number of shares outstanding) was $6.67 at March 31, 2024 compared to $6.74 at December 31, 2023. The majority of the decrease can be attributed to exercises of 120,000 options by multiple directors during the quarter. Financial Performance Overview: Three Months Ended March 31, 2024 vs. December 31, 2023 For the three months ended March 31, 2024, the Company saw a net loss totaling $103 thousand compared to net income of $84 thousand for the three months ended December 31, 2023. The decrease can be attributed to a softer margin quarter over quarter. Net interest income for the three months ended March 31, 2024, decreased $251 thousand, to $3.2 million from $3.5 million at three months ended December 31, 2023. The Company's net interest margin compacted, decreasing by sixteen basis points to 2.12% for the three months ended March 31, 2024, as compared to 2.28% for the three months ended December 31, 2023. The contraction can be attributed to increased costs for the Bank's retail deposits, mainly within Savings accounts and partially offset by the decrease in the average balance of FHLB borrowings. There was a provision for credit losses of $39 thousand taken back in for the three months ended March 31, 2024, compared to $83 thousand reversal of credit losses for the three months ended December 31, 2023. Non-interest income decreased $107 thousand, to $215 thousand for the three months ended March 31, 2024, compared with non-interest income of $322 thousand for the three months ended December 31, 2023. The decrease can be attributed to less loan charges and fees earned quarter over quarter. Non-interest expenses totaled $3.5 million for the three months ended December 31, 2023, compared to $3.8 million for the three months ended December 31, 2023, or a decrease of 7.9%. The decrease in non-interest expense can be attributed to initiatives taking effect from the cost-cutting program previously announced. 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 StatementsThis 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)     March 31, December 31,   March 31, 2024 2023 2023     |----(unaudited)----|     |----(unaudited)----| Assets           Cash and cash equivalents $ 27,392   32,728     57,827   Securities, net   13,013   15,220     15,629   Loans receivable, net:           Real estate mortgage loans   548,462   551,124     521,696   Commercial and Lines of Credit   12,359   13,301     17,018   Home Equity and Consumer Loans 397   349     358   Deferred costs   4,245   4,233     4,213   Allowance for Loan Credit Losses (5,054 ) (5,086 )   (4,882 ) Total loans receivable, net   560,410   563,920     538,403   Accrued interest receivable   2,652   2,625     2,338   Investment in restricted stock, at cost   4,509   5,191     5,368   Goodwill   581   581     581   Bank premises and equipment, net   5,381   5,600     6,037   Repossessed assets   -   -     164   Right of use lease assets   6,202   6,415     6,666   Bank Owned Life Insurance   5,376   5,341     5,236   Other Assets   3,118   1,129     1,178   Total Assets $ 628,634   638,750     639,427               Liabilities & Stockholders' Equity           Non-Interest-Bearing Deposits   100,880   109,065     135,680   Interest-Bearing Deposits   343,311   328,479     311,800   Brokered Deposits   52,000   56,581     39,504   Total Deposits   496,191   494,125     486,984   Bond Issue, net of costs   13,720   13,708     13,678   Borrowed Money   55,628   70,805     78,000   Lease Liability   6,464   6,672     6,893   Other Liabilities   16,942   7,578     9,061   Total Liabilities   582,480   592,888     594,616   Stockholders' equity   46,154   45,862