ESSA Bancorp(ESSA) - 2025 Q2 - Quarterly Results

Financial Performance - Net income for the second quarter of fiscal 2025 was $2.7 million, or$0.29 per diluted share, down from $4.6 million, or$0.48 per diluted share in the same period of 2024[3] - Net income for the three months ended March 31, 2025, was $2,735,000, a decrease of 40.19$4,562,000 in the same period of 2024[31] - Basic earnings per share for the three months ended March 31, 2025, was $0.29, down from$0.48 in 2024, representing a decline of 39.58%[31] Interest Income and Expense - Total interest income for the second quarter of fiscal 2025 was $25.6 million, slightly down from$25.7 million year-over-year, while the yield on average interest-earning assets increased to 5.01% from 4.95%[6] - Total interest income for the three months ended March 31, 2025, was $25,632,000, a slight decrease of 0.07$25,650,000 in the same period of 2024[31] - Interest expense increased to $11.4 million for the second quarter of 2025, compared to$10.8 million in the same period of 2024, with the cost of interest-bearing liabilities rising to 2.80% from 2.58%[8] - Net interest income before release of credit losses was $14.2 million in the second quarter of 2025, down from$14.9 million in the second quarter of 2024[10] - Net interest income after the release of credit losses for the six months ended March 31, 2025, was $29,003,000, down 5.25$30,611,000 in 2024[31] - The net interest rate spread decreased to 2.21% for the three months ended March 31, 2025, compared to 2.37% in 2024[32] - The net interest margin for the three months ended March 31, 2025, was 2.78%, down from 2.87% in 2024[32] Assets and Loans - Total assets were $2.168 billion at March 31, 2025, a decrease from$2.188 billion at September 30, 2024[18] - Total assets as of March 31, 2025, were $2,183,673,000, a slight decrease of 0.04$2,191,544,000 in 2024[32] - Total net loans increased to $1.76 billion at March 31, 2025, up from$1.74 billion at September 30, 2024, with residential real estate loans rising to $734.8 million[19] Nonperforming Assets and Deposits - Nonperforming assets were$11.7 million, or 0.54% of total assets, at March 31, 2025, compared to $12.2 million, or 0.56$1.69 billion at March 31, 2025, compared to $1.63 billion at September 30, 2024, with core deposits at$1.04 billion[21] Capital and Regulatory Compliance - The Tier 1 capital ratio was 10.3% at March 31, 2025, exceeding regulatory standards for a well-capitalized institution[23] Mergers and Acquisitions - The Company announced a merger agreement with CNB Financial Corporation, which received formal approval from shareholders on April 15, 2025[5] Noninterest Income and Expense - Total noninterest income increased to $2,017,000 for the three months ended March 31, 2025, compared to$2,004,000 in 2024, reflecting a growth of 0.65%[31] - Total noninterest expense rose to $12,807,000 for the three months ended March 31, 2025, up 9.29$11,714,000 in 2024[31] Shares Outstanding - Average shares outstanding - diluted for the three months ended March 31, 2025, was 9,560,278, an increase from 9,513,798 in 2024[32]