ESSA Bancorp, Inc. Announces Fiscal First Quarter 2025 Financial Results
ESSA Bancorp reported fiscal Q1 2025 net income of $4.0 million ($0.41 per diluted share), compared to $4.3 million ($0.45 per diluted share) in Q1 2024. Total net loans increased to $1.76 billion, with notable growth in commercial loans (23.7%) and residential mortgages. Total deposits reached $1.70 billion, with core deposits comprising 62% of total deposits.
Key financial metrics include: asset quality remained strong with nonperforming assets to total assets ratio of 0.54%, total yield on average interest earning assets increased to 5.01%, and net interest margin was 2.68%. The Bank maintained a strong Tier 1 capital ratio of 10.0%. Tangible book value per share increased to $21.70 from $21.40 in the previous quarter.
The company announced a planned merger with CNB Financial , which is expected to generate significant long-term value for shareholders.
ESSA Bancorp ha riportato un reddito netto di $4,0 milioni ($0,41 per azione diluita) per il primo trimestre fiscale 2025, rispetto a $4,3 milioni ($0,45 per azione diluita) nel primo trimestre 2024. I prestiti netti totali sono aumentati a $1,76 miliardi, con una crescita notevole nei prestiti commerciali (23,7%) e nei mutui residenziali. I depositi totali hanno raggiunto $1,70 miliardi, con i depositi core che rappresentano il 62% dei depositi totali.
I principali indicatori finanziari includono: la qualità degli attivi è rimasta forte con un rapporto di attivi non performanti sulle attività totali dello 0,54%, il rendimento totale degli attivi a interesse medio è aumentato al 5,01% e il margine d'interesse netto è stato del 2,68%. La Banca ha mantenuto un forte rapporto di capitale di base Tier 1 del 10,0%. Il valore contabile tangibile per azione è aumentato a $21,70 da $21,40 nel trimestre precedente.
L'azienda ha annunciato una fusione pianificata con CNB Financial, che si prevede genererà un significativo valore a lungo termine per gli azionisti.
ESSA Bancorp reportó una ganancia neta de $4,0 millones ($0,41 por acción diluida) en el primer trimestre fiscal 2025, comparado con $4,3 millones ($0,45 por acción diluida) en el primer trimestre 2024. Los préstamos netos totales aumentaron a $1,76 mil millones, con un notable crecimiento en préstamos comerciales (23,7%) y en hipotecas residenciales. Los depósitos totales alcanzaron $1,70 mil millones, con depósitos básicos que comprenden el 62% de los depósitos totales.
Los indicadores financieros clave incluyen: la calidad de los activos se mantuvo fuerte con una relación de activos no productivos sobre activos totales del 0,54%, el rendimiento total sobre los activos de interés promedio aumentó al 5,01%, y el margen de interés neto fue del 2,68%. El banco mantuvo un sólido índice de capital de nivel 1 del 10,0%. El valor contable tangible por acción aumentó a $21,70 desde $21,40 en el trimestre anterior.
La compañía anunció una fusión planeada con CNB Financial, que se espera genere un valor significativo a largo plazo para los accionistas.
ESSA Bancorp는 2025 회계 연도 1분기 순이익이 $4.0백만 ($0.41 희석 주당)으로, 2024 회계 연도 1분기 $4.3백만 ($0.45 희석 주당)에 비해 감소했다고 보고했습니다. 총 순 대출은 $1.76억으로 증가했으며, 상업 대출(23.7%)과 주택 담보 대출에서 두드러진 성장을 보였습니다. 총 예금은 $1.70억에 도달하였고, 핵심 예금이 총 예금의 62%를 차지했습니다.
주요 재무 지표로는: 자산 품질이 여전히 강한 상태를 유지했으며, 부실 자산과 총 자산의 비율이 0.54%에 달하고, 평균 이자 발생 자산에 대한 총 수익률이 5.01%로 증가하였으며, 순이자 마진은 2.68%였습니다. 은행은 10.0%의 강력한 티어 1 자본 비율을 유지했습니다. 주당 실질 장부 가치는 지난 분기 $21.40에서 $21.70으로 증가했습니다.
회사는 CNB Financial과의 계획된 합병을 발표했으며, 이는 주주에게 중요한 장기 가치를 창출할 것으로 예상됩니다.
ESSA Bancorp a annoncé un bénéfice net de 4,0 millions de dollars (0,41 $ par action diluée) pour le premier trimestre fiscal 2025, comparativement à 4,3 millions de dollars (0,45 $ par action diluée) au premier trimestre 2024. Les prêts nets totaux ont augmenté à 1,76 milliard de dollars, avec une croissance notable dans les prêts commerciaux (23,7 %) et les prêts hypothécaires résidentiels. Les dépôts totaux ont atteint 1,70 milliard de dollars, avec des dépôts de base représentant 62 % des dépôts totaux.
Les principaux indicateurs financiers comprennent : la qualité des actifs est restée forte avec un ratio d'actifs non performants par rapport aux actifs totaux de 0,54 %, le rendement total sur les actifs générant des intérêts a augmenté à 5,01 %, et la marge d'intérêt nette était de 2,68 %. La banque a maintenu un solide ratio de capital de niveau 1 de 10,0 %. La valeur comptable tangible par action a augmenté à 21,70 $ contre 21,40 $ au trimestre précédent.
L'entreprise a annoncé une fusion prévue avec CNB Financial, qui devrait générer une valeur significative à long terme pour les actionnaires.
ESSA Bancorp berichtete im ersten fiskalischen Quartal 2025 von einem Nettogewinn von 4,0 Millionen US-Dollar (0,41 US-Dollar pro verwässerter Aktie), im Vergleich zu 4,3 Millionen US-Dollar (0,45 US-Dollar pro verwässerter Aktie) im ersten Quartal 2024. Die gesamten Nettokredite stiegen auf 1,76 Milliarden US-Dollar, mit bemerkenswerter Wachstum bei Unternehmenskrediten (23,7%) und Hypothekendarlehen. Die gesamten Einlagen erreichten 1,70 Milliarden US-Dollar, wobei die Kern-Einlagen 62% der Gesamteinlagen ausmachten.
Wichtige finanzielle Kennzahlen umfassen: die Qualität der Vermögenswerte blieb stark, mit einem Verhältnis von notleidenden Vermögenswerten zu Gesamtkapital von 0,54%, die Gesamtverzinsung auf durchschnittliche zinstragende Vermögenswerte stieg auf 5,01% und die Nettomarge lag bei 2,68%. Die Bank hielt eine starke Tier-1-Kapitalquote von 10,0%. Der greifbare Buchwert pro Aktie erhöhte sich im Vergleich zum vorherigen Quartal von 21,40 US-Dollar auf 21,70 US-Dollar.
Das Unternehmen kündigte eine geplante Fusion mit CNB Financial an, von der erwartet wird, dass sie den Aktionären langfristig erheblichen Wert bringt.
- Commercial loans grew 23.7% to $45.5 million
- Total deposits increased to $1.70 billion from $1.63 billion
- Strong asset quality with nonperforming assets ratio of 0.54%
- Tangible book value per share increased to $21.70 from $21.40
- Net recovery of $37,000 in charge-offs
- Net income decreased to $4.0 million from $4.3 million YoY
- EPS declined to $0.41 from $0.45 YoY
- Net interest margin decreased to 2.68% from 2.79% YoY
- Interest expense increased 9% YoY
- Commercial real estate loans decreased to $875.6 million from $884.6 million
Insights
ESSA Bancorp's Q1 2025 performance reveals a financial institution navigating challenging market conditions while positioning for strategic growth. The announced merger with CNB Financial represents a significant pivot that could enhance scale and operational efficiency.
The bank's fundamental metrics show both strengths and pressures:
- Asset quality remains robust with NPAs at
0.54% and a net recovery position, indicating strong underwriting standards - Commercial loan growth of
23.7% to$45.5 million demonstrates successful business development despite higher rates - Core deposits comprise
62% of total deposits, though the increase in costlier brokered CDs suggests growing funding pressures
The
The pending merger with CNB could provide strategic benefits through enhanced scale, diversified revenue streams and potential cost synergies. However, integration execution and maintaining the strong credit culture will be important success factors.
STROUDSBURG, PA / ACCESS Newswire / January 29, 2025 / 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: "In fiscal first quarter 2025, the Company continued to generate strong, steady earnings driven by developing and converting pipeline loans and strong credit management that has preserved the value and quality of our assets. Our experienced banking team's ability to provide solutions for commercial and residential customers, even in a higher interest rate environment, underscores our strong operational capabilities.
"We demonstrated year-over-year growth in commercial, commercial real estate and residential mortgage loan portfolios. Our focus on generating and retaining deposits was reflected in solid deposit growth in the fiscal first quarter. While a flat yield curve continues to put pressure on margins, net interest margin remained stable in the first quarter of 2025 compared with a year earlier.
"Our team's focus on maintaining strong operations, service and quality growth contributed to continued growth of shareholder value, reflected in growth of stockholders' equity and tangible book value. We anticipate ESSA Bancorp, Inc.'s recently announced planned merger with CNB Financial Corporation will generate significant long-term value for shareholders. We, at ESSA, look forward to joining forces with the CNB team and their multiple brands.
"As we move through the merger process in the coming months, we expect to maintain the keen focus on operational excellence, expense management, superior service, and prudent growth that has characterized ESSA Bank & Trust for decades. We believe we have established a high-performing financial institution with tremendous opportunities. We are enthusiastic about the future possibilities for our employees, customers and shareholders as we move forward."
FIRST QUARTER OF 2025 HIGHLIGHTS
Total net loans at December 31, 2024, increased to
$1.76 billion from$1.74 billion at September 30, 2024.Lending activity was highlighted by
23.7% growth in commercial loans to$45.5 million at December 31, 2024, from$36.8 million at September 30, 2024. Residential mortgages increased$9.5 million to$731.0 million from September 30, 2024, net of the sales of$3.6 million during the same period.Commercial real estate loans decreased to
$875.6 million at December 31, 2024 compared with$884.6 million at September 30, 2024, reflecting repayments.Asset quality remained strong, with a ratio of nonperforming assets to total assets of
0.54% at December 31, 2024, compared to0.56% at September 30, 2024. The allowance for credit losses to total loans was0.85% at December 31, 2024, compared with0.87% at September 30, 2024. Charge-offs net of recoveries for the three months ended December 31, 2024, resulted in a net recovery of$37,000. Total deposits were
$1.70 billion at December 31, 2024, with lower-cost core deposits (demand, savings and money market accounts) comprising62% of total deposits. Total deposits were$1.63 billion at September 30, 2024. Uninsured deposits were27% of total deposits at December 31, 2024, including approximately$160.2 million of fully collateralized municipal deposits.Total yield on average interest earning assets increased to
5.01% for the quarter ended December 31, 2024, from4.89% for the quarter ended December 31, 2023. Total interest income increased to$26.4 million for the first quarter of fiscal 2025 compared with$26.1 million a year earlier.Total interest expense increased
9% in the first quarter of 2025 compared with the first quarter of 2024, primarily reflecting ongoing repricing of deposits and borrowed funds partially offset by a decline in total interest-bearing liabilities.Net interest income before the release of credit losses for the first quarter of 2025 was
$14.1 million compared with$14.9 million in the 2024 period.The release of credit losses for the three months ended December 31, 2024, was
$607,000 compared to a release of$397,000 for the three months ended December 31, 2023.The Bank continued to demonstrate financial strength, with a Tier 1 capital ratio of
10.0% at December 31, 2024.Measures of shareholder value demonstrated growth. Tangible book value per share at December 31, 2024, increased to
$21.70 compared to$21.40 at September 30, 2024. Total stockholders' equity increased to$234.2 million at December 31, 2024, from$230.4 million at September 30, 2024.
Fiscal First Quarter Income Statement Review
Total interest income increased to
Interest expense was
Net interest income before release of credit losses was
The net interest margin for the first quarter of 2025 was
The release of credit losses increased to
Noninterest income was
Noninterest expense for the three months ended December 31, 2024 and 2023 was
Balance Sheet, Asset Quality and Capital Adequacy Review
Total assets were
Total net loans were
Nonperforming assets were
Total deposits were
Noninterest bearing demand accounts at December 31, 2024, 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 status of our proposed merger with CNB Financial Corporation, 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: (855) 713-8001
ESSA BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
| December 31, |
|
| September 30, |
| |||
| 2024 |
|
| 2024 |
| |||
| (dollars in thousands) |
| ||||||
ASSETS |
|
|
|
|
|
| ||
Cash and due from banks |
| $ | 42,832 |
|
| $ | 38,683 |
|
Interest-bearing deposits with other institutions |
|
| 10,099 |
|
|
| 9,897 |
|
Total cash and cash equivalents |
|
| 52,931 |
|
|
| 48,580 |
|
Investment securities available for sale, at fair value |
|
| 211,757 |
|
|
| 215,869 |
|
Investment securities held to maturity, at amortized cost |
|
|
|
|
|
|
|
|
(net of allowance for credit losses of |
|
| 46,164 |
|
|
| 47,378 |
|
Loans receivable (net of allowance for credit losses |
|
|
|
|
|
|
|
|
of |
|
| 1,756,230 |
|
|
| 1,744,284 |
|
Regulatory stock, at cost |
|
| 16,056 |
|
|
| 18,750 |
|
Premises and equipment, net |
|
| 11,264 |
|
|
| 11,253 |
|
Bank-owned life insurance |
|
| 39,800 |
|
|
| 39,571 |
|
Foreclosed real estate |
|
| 3,195 |
|
|
| 3,195 |
|
Goodwill |
|
| 13,801 |
|
|
| 13,801 |
|
Deferred income taxes |
|
| 4,691 |
|
|
| 3,889 |
|
Derivative and hedging assets |
|
| 10,412 |
|
|
| 8,203 |
|
Other assets |
|
| 29,798 |
|
|
| 32,944 |
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
| $ | 2,196,099 |
|
| $ | 2,187,717 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
Deposits |
| $ | 1,699,982 |
|
| $ | 1,629,051 |
|
Short-term borrowings |
|
| 215,000 |
|
|
| 280,000 |
|
Other borrowings |
|
| 10,000 |
|
|
| 10,000 |
|
Advances by borrowers for taxes and insurance |
|
| 10,322 |
|
|
| 6,870 |
|
Derivative and hedging liabilities |
|
| 7,138 |
|
|
| 9,183 |
|
Other liabilities |
|
| 19,474 |
|
|
| 22,192 |
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES |
|
| 1,961,916 |
|
|
| 1,957,296 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Common stock |
|
| 181 |
|
|
| 181 |
|
Additional paid-in capital |
|
| 183,071 |
|
|
| 183,073 |
|
Unallocated common stock held by the |
|
|
|
|
|
|
|
|
Employee Stock Ownership Plan ("ESOP") |
|
| (5,443 | ) |
|
| (5,557 | ) |
Retained earnings |
|
| 165,948 |
|
|
| 163,473 |
|
Treasury stock, at cost |
|
| (103,782 | ) |
|
| (104,184 | ) |
Accumulated other comprehensive loss |
|
| (5,792 | ) |
|
| (6,565 | ) |
|
|
|
|
|
|
|
|
|
TOTAL STOCKHOLDERS' EQUITY |
|
| 234,183 |
|
|
| 230,421 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
| $ | 2,196,099 |
|
| $ | 2,187,717 |
|
ESSA BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
| Three Months Ended December 31, |
| ||||||
| 2024 |
|
| 2023 |
| |||
| (dollars in thousands, except per share data) |
| ||||||
INTEREST INCOME |
|
|
|
|
|
| ||
Loans receivable, including fees |
| $ | 22,993 |
|
| $ | 21,414 |
|
Investment securities: |
|
|
|
|
|
|
|
|
Taxable |
|
| 2,510 |
|
|
| 3,887 |
|
Exempt from federal income tax |
|
| 11 |
|
|
| 11 |
|
Other investment income |
|
| 858 |
|
|
| 778 |
|
Total interest income |
|
| 26,372 |
|
|
| 26,090 |
|
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE |
|
|
|
|
|
|
|
|
Deposits |
|
| 10,329 |
|
|
| 8,462 |
|
Short-term borrowings |
|
| 1,755 |
|
|
| 2,656 |
|
Other borrowings |
|
| 144 |
|
|
| 108 |
|
Total interest expense |
|
| 12,228 |
|
|
| 11,226 |
|
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME |
|
| 14,144 |
|
|
| 14,864 |
|
Release of credit losses |
|
| (607 | ) |
|
| (397 | ) |
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME AFTER RELEASE OF |
|
|
|
|
|
|
|
|
CREDIT LOSSES |
|
| 14,751 |
|
|
| 15,261 |
|
|
|
|
|
|
|
|
|
|
NONINTEREST INCOME |
|
|
|
|
|
|
|
|
Service fees on deposit accounts |
|
| 715 |
|
|
| 696 |
|
Services charges and fees on loans |
|
| 280 |
|
|
| 330 |
|
Loan swap fees |
|
| 99 |
|
|
| - |
|
Unrealized loss on equity securities |
|
| 1 |
|
|
| (3 | ) |
Trust and investment fees |
|
| 475 |
|
|
| 393 |
|
Gain on sale of loans, net |
|
| 60 |
|
|
| 118 |
|
Earnings on bank-owned life insurance |
|
| 234 |
|
|
| 212 |
|
Insurance commissions |
|
| 120 |
|
|
| 128 |
|
Other |
|
| 74 |
|
|
| 87 |
|
Total noninterest income |
|
| 2,058 |
|
|
| 1,961 |
|
|
|
|
|
|
|
|
|
|
NONINTEREST EXPENSE |
|
|
|
|
|
|
|
|
Compensation and employee benefits |
|
| 7,200 |
|
|
| 6,746 |
|
Occupancy and equipment |
|
| 1,188 |
|
|
| 1,229 |
|
Professional fees |
|
| 963 |
|
|
| 1,025 |
|
Data processing |
|
| 1,468 |
|
|
| 1,342 |
|
Advertising |
|
| 104 |
|
|
| 136 |
|
Federal Deposit Insurance Corporation ("FDIC") |
|
|
|
|
|
|
|
|
premiums |
|
| 357 |
|
|
| 380 |
|
Foreclosed real estate |
|
| - |
|
|
| 101 |
|
Amortization of intangible assets |
|
| - |
|
|
| 47 |
|
Other |
|
| 654 |
|
|
| 851 |
|
Total noninterest expense |
|
| 11,934 |
|
|
| 11,857 |
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
| 4,875 |
|
|
| 5,365 |
|
Income taxes |
|
| 919 |
|
|
| 1,028 |
|
|
|
|
|
|
|
|
|
|
NET INCOME |
| $ | 3,956 |
|
| $ | 4,337 |
|
|
|
|
|
|
|
|
|
|
Earnings per share: |
|
|
|
|
|
|
|
|
Basic |
| $ | 0.41 |
|
| $ | 0.45 |
|
Diluted |
| $ | 0.41 |
|
| $ | 0.45 |
|
|
|
|
|
|
|
|
|
|
Dividends per share |
| $ | 0.15 |
|
| $ | 0.15 |
|
| For the Three Months |
| ||||||
| Ended December 31, |
| ||||||
| 2024 |
|
| 2023 |
| |||
| (unaudited) |
| ||||||
| (dollars in thousands, except per share data) |
| ||||||
CONSOLIDATED AVERAGE BALANCES: |
|
|
|
|
|
| ||
Total assets |
| $ | 2,201,143 |
|
| $ | 2,236,612 |
|
Total interest-earning assets |
|
| 2,090,111 |
|
|
| 2,121,498 |
|
Total interest-bearing liabilities |
|
| 1,682,198 |
|
|
| 1,721,309 |
|
Total stockholders' equity |
|
| 233,430 |
|
|
| 219,624 |
|
|
|
|
|
|
|
|
| |
PER COMMON SHARE DATA: |
|
|
|
|
|
|
|
|
Average shares outstanding - basic |
|
| 9,563,988 |
|
|
| 9,614,550 |
|
Average shares outstanding - diluted |
|
| 9,591,062 |
|
|
| 9,616,316 |
|
Book value shares |
|
| 10,154,664 |
|
|
| 10,131,521 |
|
|
|
|
|
|
|
|
| |
Net interest rate spread: |
|
| 2.12 | % |
|
| 2.30 | % |
Net interest margin: |
|
| 2.68 | % |
|
| 2.79 | % |
SOURCE: ESSA Bancorp Inc.
View the original press release on ACCESS Newswire
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