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ESSA Bancorp Inc (ESSA) Announces Fiscal Fourth Quarter and Full Year 2023 Financial Results

  • ESSA Bancorp Inc (NASDAQ:ESSA) reported a net income of $4.6 million for Q4 2023, compared to $5.8 million for the same period in 2022.

  • The company's net income for the full year 2023 was $18.6 million, down from $20.1 million in 2022.

  • ESSA Bancorp Inc (NASDAQ:ESSA) experienced significant growth in total interest income, reaching $85.5 million for the full fiscal year of 2023, up from $62.8 million in 2022.

  • The company's total assets increased by 23.2% to $2.3 billion at the end of September 2023, compared to $1.9 billion in the previous year.


ESSA Bancorp Inc (NASDAQ:ESSA), the holding company for ESSA Bank & Trust, announced its financial results for the fiscal fourth quarter and full year ended September 30, 2023, on October 26, 2023. Despite a challenging interest rate environment, the company delivered a strong financial performance, reflecting capital strength, growing loans and deposits, enhanced liquidity, sound asset quality, and operational productivity.

Financial Performance Highlights


ESSA Bancorp Inc (NASDAQ:ESSA) reported a net income of $4.6 million, or $0.47 per diluted share, for the three months ended September 30, 2023, compared with $5.8 million, or $0.60 per diluted share, for the same period in 2022. For the full year ended September 30, 2023, the net income was $18.6 million, or $1.91 per diluted share, compared with $20.1 million, or $2.06 per diluted share, for the full year ended September 30, 2022.

According to Gary S. Olson, President and CEO, the company's strong financial performance in fiscal 2023 was a result of capital strength, growing loans and deposits, enhanced liquidity, sound asset quality, and operational productivity. He stated,

Loan growth and diligent interest rate management during a period of continued rate increases contributed to interest income growth while controlling interest expense to the extent possible to preserve margins."

Income Statement Review


ESSA Bancorp Inc (NASDAQ:ESSA)'s total interest income was $25.1 million for the fourth quarter of fiscal 2023, up from $18.0 million a year earlier. This increase reflected asset growth and an increase in the total yield on average interest earning assets to 4.79% from 4.07%. For the full fiscal year of 2023, total interest income reached $85.5 million, up from $62.8 million a year earlier.

However, the company's interest expense also increased, reaching $9.5 million for the fourth quarter of 2023, compared with $961,000 for the same period in 2022. This increase was due to growth in interest-bearing liabilities and increased interest rates on deposits and short-term borrowings. For the full year of 2023, the interest expense was $23.9 million, compared with $3.0 million for the same period in 2022.

Balance Sheet, Asset Quality, and Capital Adequacy Review


ESSA Bancorp Inc (NASDAQ:ESSA)'s total assets increased by 23.2% to $2.3 billion at the end of September 2023, compared to $1.9 billion in the previous year. This increase primarily reflects the growth in total net loans outstanding, investment securities available for sale, and total cash and cash equivalents.

The company's total net loans were $1.68 billion at the end of September 2023, up from $1.44 billion at the same time in 2022. Nonperforming assets were $14.4 million, or 0.63% of total assets at September 30, 2023, compared to $15.1 million or 0.81% at September 30, 2022.

The Bank maintained a strong capital position with a Tier 1 capital ratio of 9.4% at September 30, 2023, exceeding regulatory standards for a well-capitalized institution. Total stockholders equity increased $7.4 million to $219.7 million at September 30, 2023, from $212.3 million at September 30, 2022.

Explore the complete 8-K earnings release (here) from ESSA Bancorp Inc for further details.

This article first appeared on GuruFocus.

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