ESSA Bancorp, Inc. Announces Fiscal Fourth Quarter, Full Year 2024 Financial Results
Rhea-AI Summary
ESSA Bancorp reported fiscal Q4 2024 net income of $4.2 million ($0.44 per share), down from $4.6 million ($0.47 per share) in Q4 2023. Full-year 2024 net income was $17.0 million ($1.78 per share), compared to $18.6 million ($1.91 per share) in 2023. Total net loans increased 3.8% to $1.74 billion, with commercial real estate loans growing 7.6% to $884.6 million. Asset quality remained strong with nonperforming assets at 0.58% of total assets. Total deposits were $1.63 billion, with core deposits comprising 64.3%. The Bank maintained a strong capital position with a Tier 1 ratio of 10.01% and increased tangible book value per share to $21.40.
Positive
- Commercial real estate loans grew 7.6% to $884.6 million
- Total net loans increased 3.8% to $1.74 billion
- Strong asset quality with nonperforming assets ratio of 0.58%
- Tangible book value per share increased to $21.40 from $19.80
- Release of credit loss reserves due to improved loan portfolio quality
Negative
- Q4 net income decreased to $4.2M from $4.6M year-over-year
- Full-year net income declined to $17.0M from $18.6M
- Net interest margin compressed to 2.79% from 2.97% in Q4
- Core deposits decreased to 64.3% of total deposits from 69.7%
- Interest expense increased significantly due to higher rates
News Market Reaction – ESSA
On the day this news was published, ESSA declined 3.83%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
STROUDSBURG, PA / ACCESSWIRE / October 23, 2024 / ESSA Bancorp, Inc. (the "Company") (NASDAQ:ESSA), the holding company for ESSA Bank & Trust (the "Bank"), a
Net income was
Gary S. Olson, President and CEO, commented: "The Company's positive earnings results throughout fiscal 2024 reflected efficient and productive operations, a focus on disciplined loan growth, and balance sheet management. Our financial performance drove shareholder value and supported the Company's longstanding practice of approving meaningful quarterly cash dividends to shareholders."
"In a year of high interest rates, economic uncertainty, and moderate loan activity compared to the prior year, maintaining the high quality of loans was a top priority. Through disciplined credit and asset management, we further strengthened measures of asset quality. Ratios of nonperforming loans to total loans and allowance for credit losses to total loans improved. We had negligible loan charge-offs during the year. Solid loan quality contributed to a release of credit loss reserves."
"The Company's financial strength was reflected in a strong capital position, available liquidity and prudent expense management."
"Managing interest expense in light of the high-rate environment was a significant challenge throughout the Company's fiscal year. Although interest expense increased significantly in year over year comparisons, prompt adjustments to rates on loans contributed to expanded interest income and higher yields on earning assets that partially offset higher interest expense and helped mitigate margin compression."
"Entering a new fiscal year, positive economic trends and the prospect of decreasing interest rates increases our confidence that there will be both loan and deposit growth opportunities. We are financially and operationally well positioned to meet the financial needs of the individuals and businesses in the communities we serve."
FISCAL FOURTH QUARTER AND FULL YEAR OF 2024 HIGHLIGHTS
Sound, efficient operations drove a return on average assets (ROAA) of
0.77% for the three months ended September 30, 2024 and0.78% for the year ended September 30, 2024.Continued earnings strength and shareholder value growth was reflected in return on average equity (ROAE) of
7.28% for the three months ended September 30, 2024 and7.58% for the year ended September 30, 2024.Total interest income in the fourth quarter of 2024 was
$26.1 million compared with$25.1 million in the fourth quarter of 2023. For the year ended September 30, 2024, total interest income rose to$103.5 million from$85.5 million for the year ended September 30, 2023, primarily reflecting asset growth and higher yields on earning assets.Net interest income after provision for credit losses was
$14.5 million for the three months ended September 30, 2024, compared with$15.3 million for the three months ended September 30, 2023. Net interest income after provision for credit losses was$59.6 million for the year ended September 30, 2024, compared with$60.9 million for the year ended September 30, 2023. Both periods of 2024 reflected releases of credit loss provisions.Total net loans at September 30, 2024, were
$1.74 billion , up3.8% from$1.68 billion a year earlier, reflecting strong originations in commercial real estate, residential mortgage and home equity loans together with slower prepayment speeds due to higher interest rates.Lending activity was highlighted by
7.6% growth in commercial real estate loans to$884.6 million at September 30, 2024, from$822.0 million at September 30, 2023. During the same period, the residential mortgage portfolio increased1.2% to$721.5 million from$713.3 million .Asset quality remained strong, with a ratio of nonperforming assets to total assets of
0.58% at September 30, 2024, compared to0.63% at September 30, 2023. The allowance for credit losses to total loans was0.87% at September 30, 2024, compared to1.09% at September 30, 2023.Total deposits were
$1.63 billion at September 30, 2024, with lower-cost core deposits comprising64.3% of total deposits. Uninsured deposits were30% of total deposits at September 30, 2024, including approximately$204.9 million of fully collateralized municipal deposits.The Bank continued to demonstrate financial strength, with a Tier 1 capital ratio of
10.01% at September 30, 2024.Total stockholders' equity increased to
$230.4 million at September 30, 2024, compared with$219.7 million at September 30, 2023. Tangible book value per share at September 30, 2024, rose to$21.40 from$19.80 at September 30, 2023.
Fiscal Fourth Quarter and Full Year 2024 Income Statement Review
Total interest income was
Interest expense was
Interest expense was
Net interest income after the (release of) provision for credit losses in the fourth quarter of 2024 was
The net interest margin for the fourth quarter of 2024 was
Noninterest income was
Noninterest expense for the fourth quarters of 2024 and 2023 was
Balance Sheet, Asset Quality and Capital Adequacy Review
Total assets were
Investment securities available for sale at September 30, 2024 decreased by
Total net loans were
Commercial real estate loans increased to
Nonperforming assets were
Total deposits were
The Bank maintained a strong capital position with a Tier 1 capital ratio of
About the Company: ESSA Bancorp, Inc. is the holding company for its wholly owned subsidiary, ESSA Bank & Trust, which was formed in 1916. The Company has total assets of
Forward-Looking Statements
Certain statements contained herein are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements may be identified by reference to a future period or periods, or by the use of forward-looking terminology, such as "may," "will," "believe," "expect," "estimate," "anticipate," "continue," or similar terms or variations on those terms, or the negative of those terms. Forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, those related to the economic environment, particularly in the market areas in which the Company operates, competitive products and pricing, fiscal and monetary policies of the U.S. Government, changes in government regulations affecting financial institutions, including compliance costs and capital requirements, changes in prevailing interest rates, the recent turmoil in the banking industry , credit risk management, asset-liability management, the financial and securities markets and the availability of and costs associated with sources of liquidity, and the Risk Factors disclosed in our annual, quarterly and current reports.
The Company wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company wishes to advise readers that the factors listed above could affect the Company's financial performance and could cause the Company's actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not undertake and specifically declines any obligation to publicly release the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
Contact:
Gary S. Olson, President & CEO
Corporate Office: 200 Palmer Street
Stroudsburg, Pennsylvania 18360
Telephone: (570) 421-0531
FINANCIAL TABLES FOLLOW
ESSA BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
| September 30, |
|
| September 30, |
| |||
| 2024 |
|
| 2023 |
| |||
| (dollars in thousands) |
| ||||||
ASSETS |
|
|
|
|
|
| ||
Cash and due from banks |
| $ | 38,683 |
|
| $ | 39,008 |
|
Interest-bearing deposits with other institutions |
|
| 9,897 |
|
|
| 46,394 |
|
Total cash and cash equivalents |
|
| 48,580 |
|
|
| 85,402 |
|
Investment securities available for sale, at fair value |
|
| 215,869 |
|
|
| 334,056 |
|
Investment securities held to maturity, at amortized cost |
|
|
|
|
|
|
|
|
(net of allowance for credit losses of |
|
| 47,378 |
|
|
| 52,242 |
|
Loans, held for sale |
|
| - |
|
|
| 250 |
|
Loans receivable (net of allowance for credit losses |
|
|
|
|
|
|
|
|
of |
|
| 1,744,284 |
|
|
| 1,680,525 |
|
Regulatory stock, at cost |
|
| 18,750 |
|
|
| 17,890 |
|
Premises and equipment, net |
|
| 11,253 |
|
|
| 12,913 |
|
Bank-owned life insurance |
|
| 39,571 |
|
|
| 39,026 |
|
Foreclosed real estate |
|
| 3,195 |
|
|
| 3,311 |
|
Intangible assets, net |
|
| - |
|
|
| 91 |
|
Goodwill |
|
| 13,801 |
|
|
| 13,801 |
|
Deferred income taxes |
|
| 3,889 |
|
|
| 6,877 |
|
Derivative and hedging assets |
|
| 8,203 |
|
|
| 19,662 |
|
Other assets |
|
| 32,944 |
|
|
| 27,200 |
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
| $ | 2,187,717 |
|
| $ | 2,293,246 |
|
|
|
|
|
|
|
|
| |
LIABILITIES |
|
|
|
|
|
|
|
|
Deposits |
| $ | 1,629,051 |
|
| $ | 1,661,016 |
|
Short-term borrowings |
|
| 280,000 |
|
|
| 374,652 |
|
Other borrowings |
|
| 10,000 |
|
|
| - |
|
Advances by borrowers for taxes and insurance |
|
| 6,870 |
|
|
| 6,550 |
|
Derivative and hedging liabilities |
|
| 9,183 |
|
|
| 9,579 |
|
Other liabilities |
|
| 22,192 |
|
|
| 21,741 |
|
|
|
|
|
|
|
|
| |
TOTAL LIABILITIES |
|
| 1,957,296 |
|
|
| 2,073,538 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Common stock |
|
| 181 |
|
|
| 181 |
|
Additional paid-in capital |
|
| 183,073 |
|
|
| 182,681 |
|
Unallocated common stock held by the |
|
|
|
|
|
|
|
|
Employee Stock Ownership Plan ("ESOP") |
|
| (5,557 | ) |
|
| (6,009 | ) |
Retained earnings |
|
| 163,473 |
|
|
| 151,856 |
|
Treasury stock, at cost |
|
| (104,184 | ) |
|
| (99,508 | ) |
Accumulated other comprehensive loss |
|
| (6,565 | ) |
|
| (9,493 | ) |
|
|
|
|
|
|
|
|
|
TOTAL STOCKHOLDERS' EQUITY |
|
| 230,421 |
|
|
| 219,708 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
| $ | 2,187,717 |
|
| $ | 2,293,246 |
|
ESSA BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
| Three Months Ended September 30, |
|
| Year Ended September 30, |
| |||||||||||
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
| |||||
| (dollars in thousands, except per share data) |
| ||||||||||||||
INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Loans receivable, including fees |
| $ | 22,585 |
|
| $ | 20,608 |
|
| $ | 87,688 |
|
| $ | 73,329 |
|
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
| 2,551 |
|
|
| 3,486 |
|
|
| 11,752 |
|
|
| 9,834 |
|
Exempt from federal income tax |
|
| 10 |
|
|
| 10 |
|
|
| 42 |
|
|
| 42 |
|
Other investment income |
|
| 909 |
|
|
| 957 |
|
|
| 3,975 |
|
|
| 2,294 |
|
Total interest income |
|
| 26,055 |
|
|
| 25,061 |
|
|
| 103,457 |
|
|
| 85,499 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
| 9,297 |
|
|
| 6,666 |
|
|
| 33,322 |
|
|
| 17,399 |
|
Short-term borrowings |
|
| 2,217 |
|
|
| 2,855 |
|
|
| 11,317 |
|
|
| 6,546 |
|
Other borrowings |
|
| 145 |
|
|
| - |
|
|
| 539 |
|
|
| - |
|
Total interest expense |
|
| 11,659 |
|
|
| 9,521 |
|
|
| 45,178 |
|
|
| 23,945 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
NET INTEREST INCOME |
|
| 14,396 |
|
|
| 15,540 |
|
|
| 58,279 |
|
|
| 61,554 |
|
(Release of) Provision for credit losses |
|
| (120 | ) |
|
| 250 |
|
|
| (1,360 | ) |
|
| 700 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
NET INTEREST INCOME AFTER (RELEASE OF) PROVISION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOR CREDIT LOSSES |
|
| 14,516 |
|
|
| 15,290 |
|
|
| 59,639 |
|
|
| 60,854 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
NONINTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service fees on deposit accounts |
|
| 719 |
|
|
| 732 |
|
|
| 2,808 |
|
|
| 3,075 |
|
Services charges and fees on loans |
|
| 350 |
|
|
| 365 |
|
|
| 1,331 |
|
|
| 1,350 |
|
Loan swap fees |
|
| 36 |
|
|
| 125 |
|
|
| 163 |
|
|
| 263 |
|
Unrealized loss on equity securities |
|
| - |
|
|
| - |
|
|
| (6 | ) |
|
| (4 | ) |
Trust and investment fees |
|
| 429 |
|
|
| 409 |
|
|
| 1,640 |
|
|
| 1,640 |
|
Loss on sale of investments, net |
|
| - |
|
|
| (121 | ) |
|
| - |
|
|
| (121 | ) |
Gain on sale of loans, net |
|
| 87 |
|
|
| 75 |
|
|
| 375 |
|
|
| 172 |
|
Earnings on bank-owned life insurance |
|
| 279 |
|
|
| 204 |
|
|
| 931 |
|
|
| 786 |
|
Insurance commissions |
|
| 132 |
|
|
| 125 |
|
|
| 527 |
|
|
| 584 |
|
Other |
|
| 88 |
|
|
| 69 |
|
|
| 435 |
|
|
| 161 |
|
Total noninterest income |
|
| 2,120 |
|
|
| 1,983 |
|
|
| 8,204 |
|
|
| 7,906 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
NONINTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and employee benefits |
|
| 6,716 |
|
|
| 6,467 |
|
|
| 26,906 |
|
|
| 26,621 |
|
Occupancy and equipment |
|
| 1,215 |
|
|
| 1,118 |
|
|
| 4,842 |
|
|
| 4,341 |
|
Professional fees |
|
| 1,013 |
|
|
| 1,179 |
|
|
| 4,295 |
|
|
| 4,760 |
|
Data processing |
|
| 1,333 |
|
|
| 1,213 |
|
|
| 5,399 |
|
|
| 4,910 |
|
Advertising |
|
| 189 |
|
|
| 113 |
|
|
| 680 |
|
|
| 648 |
|
Federal Deposit Insurance Corporation ("FDIC") |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
premiums |
|
| 329 |
|
|
| 330 |
|
|
| 1,638 |
|
|
| 1,078 |
|
Foreclosed real estate |
|
| - |
|
|
| 235 |
|
|
| 101 |
|
|
| 231 |
|
Amortization of intangible assets |
|
| - |
|
|
| 48 |
|
|
| 91 |
|
|
| 190 |
|
Other |
|
| 707 |
|
|
| 768 |
|
|
| 2,929 |
|
|
| 2,911 |
|
Total noninterest expense |
|
| 11,502 |
|
|
| 11,471 |
|
|
| 46,881 |
|
|
| 45,690 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Income before income taxes |
|
| 5,134 |
|
|
| 5,802 |
|
|
| 20,962 |
|
|
| 23,070 |
|
Income taxes |
|
| 955 |
|
|
| 1,173 |
|
|
| 3,970 |
|
|
| 4,494 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
NET INCOME |
| $ | 4,179 |
|
| $ | 4,629 |
|
| $ | 16,992 |
|
| $ | 18,576 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
| $ | 0.44 |
|
| $ | 0.47 |
|
| $ | 1.78 |
|
| $ | 1.91 |
|
Diluted |
| $ | 0.44 |
|
| $ | 0.47 |
|
| $ | 1.78 |
|
| $ | 1.91 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Dividends per share |
| $ | 0.15 |
|
| $ | 0.15 |
|
| $ | 0.60 |
|
| $ | 0.60 |
|
| For the Three Months |
|
| For the Year |
| |||||||||||
| Ended September 30, |
|
| Ended September 30, |
| |||||||||||
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
| |||||
| (unaudited) |
| ||||||||||||||
| (dollars in thousands, except per share data) |
| ||||||||||||||
CONSOLIDATED AVERAGE BALANCES: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Total assets |
| $ | 2,168,605 |
|
| $ | 2,193,302 |
|
| $ | 2,192,136 |
|
| $ | 2,011,329 |
|
Total interest-earning assets |
|
| 2,056,158 |
|
|
| 2,077,342 |
|
|
| 2,077,988 |
|
|
| 1,896,988 |
|
Total interest-bearing liabilities |
|
| 1,638,562 |
|
|
| 1,672,443 |
|
|
| 1,671,205 |
|
|
| 1,491,428 |
|
Total stockholders' equity |
|
| 228,380 |
|
|
| 221,435 |
|
|
| 224,250 |
|
|
| 219,529 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
PER COMMON SHARE DATA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shares outstanding - basic |
|
| 9,500,178 |
|
|
| 9,750,944 |
|
|
| 9,532,722 |
|
|
| 9,725,204 |
|
Average shares outstanding - diluted |
|
| 9,503,814 |
|
|
| 9,750,944 |
|
|
| 9,532,722 |
|
|
| 9,725,204 |
|
Book value shares |
|
| 10,123,708 |
|
|
| 10,394,689 |
|
|
| 10,123,708 |
|
|
| 10,394,689 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net interest rate spread: |
|
| 2.21 | % |
|
| 2.53 | % |
|
| 2.28 | % |
|
| 2.90 | % |
Net interest margin: |
|
| 2.79 | % |
|
| 2.97 | % |
|
| 2.80 | % |
|
| 3.24 | % |
SOURCE: ESSA Bancorp Inc.
View the original press release on accesswire.com
FAQ
What was ESSA Bancorp's net income for Q4 2024?
How much did ESSA's commercial real estate loans grow in fiscal 2024?
What was ESSA's Tier 1 capital ratio as of September 30, 2024?
How did ESSA's net interest margin change in Q4 2024 compared to Q4 2023?
