Essa Bancorp, Inc. (ESSA) 10-Q Quarterly Report Fri Aug 09 2019

Stroudsburg, PA. – July 24, 2019 — ESSA Bancorp, Inc. (the “Company”) (NASDAQ:ESSA), the holding company for ESSA Bank & Trust (the “Bank”), a $1.8 billion asset financial institution providing full service retail and commercial banking, financial, and investment services in eastern Pennsylvania, today announced financial results for the three months and nine months ended June 30, 2019.

Net income was $3.0 million, or $0.29 per diluted share, for the three months ended June 30, 2019, compared with $2.8 million, or $0.26 per diluted share, for the three months ended June 30, 2018. Net income was $8.9 million, or $0.83 per diluted share, for the nine months ended June 30, 2019, compared with $3.4 million or $0.32 per diluted share, for the nine months ended June 30, 2018. Results for the nine months ended June 30, 2018 reflect a one-time charge to income tax expense of $3.7 million recorded in the Company’s first fiscal quarter of 2018 related to the reduction in the carrying value of the Company’s deferred tax assets, which resulted from the reduction in the federal corporate income tax rate under the Tax Cuts and Jobs Act of 2017.

Gary S. Olson, President and CEO, commented: “Year-over-year earnings growth, improved return on average assets and average equity, and increased shareholder value reflected the Company’s focus on growing our commercial lending and banking business, maintaining our historical strength in residential mortgage and municipal lending, and maintaining overall asset quality. Generating cost-effective funding for our accelerating loan activity has been a key goal for ESSA, and we were pleased that continued growth in core deposits and use of internal funding sources has led to a significant decrease in short-term borrowings to support lending.

“Operational and systems initiatives to increase productivity have led to consistent year-over-year operating cost reductions as we have progressed through 2019. While focused on efficient operation, we recognize the importance of investing in people and assets that support growth. Our new and expanded Allentown office, relocation to a new, upgraded branch facility in Nazareth, and adding top-performing bankers in our suburban Philadelphia office are examples of our commitment to efficient growth and enhanced productivity.”

FISCAL THIRD QUARTER, NINE MONTHS 2019 HIGHLIGHTS

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Increased earnings reflected the Company’s continuing progress in driving revenue from lending activity, with net income in the fiscal third quarter of 2019 of $3.0 million, up 8.0% from $2.8 million in the fiscal third quarter of 2018. In the first nine months of fiscal 2019, pre-tax income of $10.6 million rose 24.1% compared with the first nine months of fiscal 2018. Pre-tax income provides a better comparison due to the one-time charge to income tax expense of $3.7 million in the fiscal first nine months of 2018 as described above.

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Total interest income increased to $17.0 million in the third quarter of fiscal 2019 from $16.7 million in the third quarter of fiscal 2018, primarily reflecting higher interest income generated by loans.

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Total net loans at June 30, 2019 increased $21.6 million to $1.3 billion from September 30, 2018, primarily reflecting growth in commercial and commercial real estate loans. Year-to-date, net loan growth of $21.6 million includes a decline of $49.8 million in indirect auto loan balances during the same period. Net loans at June 30, 2019 were up 1.9%, or $25.0 million, compared with net loans at June 30, 2018, primarily reflecting commercial loan growth. The year-over-year decline in indirect auto loan balances outstanding was $68.0 million. The Company discontinued indirect auto lending in July 2018.

The following information was filed by Essa Bancorp, Inc. (ESSA) on Friday, July 26, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Essa Bancorp, Inc.'s 10-Q Quarterly Report:

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Our primary sources of cash are principal repayments on loans, proceeds from the maturities of investment securities, principal repayments of mortgage-backed securities and increases in deposit accounts.

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

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Essa Bancorp, Inc. provided additional information to their SEC Filing as exhibits

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32: Section 1350 Certification

Ticker: ESSA
CIK: 1382230
Form Type: 10-Q Quarterly Report
Accession Number: 0001564590-19-031203
Submitted to the SEC: Fri Aug 09 2019 11:02:16 AM EST
Accepted by the SEC: Fri Aug 09 2019
Period: Sunday, June 30, 2019
Industry: Savings Institutions Not Federally Chartered