ESSA Bancorp(ESSA) - 2024 Q3 - Quarterly Results

Financial Performance - Total yield on average interest earning assets increased to 5.02% for the quarter ended June 30, 2024, from 4.60% for the quarter ended June 30, 2023[1]. - Total interest income increased to $77.4 million for the nine months ended June 30, 2024, compared with $60.4 million a year earlier[7]. - Total interest income increased by 17.9% to $25.7 million for the three months ended June 30, 2024, compared to $21.8 million for the same period in 2023[27]. - Net interest income before provision for credit losses was $14.2 million for the third quarter of 2024, down from $15.2 million in the third quarter of 2023[29]. - The Company's return on average assets for the three months ended June 30, 2024, was 0.72%, down from 0.88% for the same period in 2023[37]. - Noninterest income for the third quarter of 2024 was $2.1 million, an increase from $1.9 million a year earlier[39]. - Noninterest income for the nine months ended June 30, 2024, was $6.1 million, compared to $5.9 million a year earlier[40]. Interest Expenses and Liabilities - Total cost of interest-bearing liabilities increased to 2.80% for the quarter ended June 30, 2024, from 1.75% for the quarter ended June 30, 2023[2]. - Total interest expense rose by 76.3% to $11.5 million for the three months ended June 30, 2024, compared to $6.5 million for the same period in 2023[28]. Credit Losses and Asset Quality - The provision for credit losses for the three months ended June 30, 2024, was a release of $347,000 compared to a provision of $150,000 for the same period in 2023[3]. - The provision for credit losses decreased by $497,000 for the third quarter of fiscal 2024 compared to the same quarter of 2023[37]. - Provision for credit losses decreased by $1.7 million for the nine months ended June 30, 2024, compared to the same period in 2023[38]. - The allowance for credit losses to total loans was 0.89% at June 30, 2024, down from 1.09% at September 30, 2023[31]. - The ratio of nonperforming assets to total assets was 0.56% at June 30, 2024, compared to 0.63% at September 30, 2023[31]. - Nonperforming assets were $12.4 million, or 0.56% of total assets at June 30, 2024, down from $14.4 million or 0.63% at September 30, 2023[45]. Loans and Deposits - Lending activity showed a 3.1% growth in commercial real estate loans to $847.6 million at June 30, 2024, from $822.0 million at September 30, 2023[4]. - Total net loans increased to $1.71 billion at June 30, 2024, from $1.68 billion at September 30, 2023[30]. - Residential real estate loans were $713.4 million at June 30, 2024, compared to $713.3 million at September 30, 2023[43]. - Consumer loans increased to $50.0 million at June 30, 2024, from $48.2 million at September 30, 2023[44]. - Total deposits were $1.55 billion at June 30, 2024, down from $1.66 billion at September 30, 2023, with core deposits comprising 64% of total deposits[5]. - Noninterest bearing demand accounts decreased by 7% to $261.3 million at June 30, 2024, from September 30, 2023[9]. Capital and Equity - The Bank maintained a Tier 1 capital ratio of 9.8% at June 30, 2024, exceeding regulatory standards[10]. - The Tier 1 capital ratio was 9.8% at June 30, 2024, indicating strong financial strength[32]. - Total stockholders' equity increased to $225.5 million at June 30, 2024, from $219.7 million at September 30, 2023[10]. - Tangible book value per share increased to $20.89 at June 30, 2024, from $19.80 at September 30, 2023[6]. Assets - Total assets were $2.2 billion at June 30, 2024, a decrease of $59.6 million, or 2.6%, from $2.3 billion at September 30, 2023[42].