Pennsylvania
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001-33384
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20-8023072
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(State or Other Jurisdiction)
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(Commission File No.)
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(I.R.S. Employer
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of Incorporation)
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Identification No.)
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200 Palmer Street, Stroudsburg, Pennsylvania
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18360
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(Address of Principal Executive Offices)
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(Zip Code)
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Common Stock
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ESSA
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The Nasdaq Stock Market LLC
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(a)
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Financial Statements of Businesses Acquired. Not applicable.
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(b)
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Pro Forma Financial Information. Not applicable.
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(c)
(d)
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Shell Company Transactions. Not applicable.
Exhibits. |
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99.1 |
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104 |
Cover Page Interactive Data File (embedded within the Inline XBRL document).
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ESSA BANCORP, INC.
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||
DATE: July 25, 2024
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By:
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/s/ Gary S. Olson
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Gary S. Olson, President and
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||
Chief Executive Officer
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•
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Total interest income increased 17.9% to $25.7 million in the third quarter of 2024 compared with the third quarter of 2023, and in the nine
months of 2024 rose 28.1% to $77.4 million compared with the nine months of 2023, primarily reflecting ongoing repricing of commercial loans and increased yields from investment securities along with growth in total interest earning
assets.
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•
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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.
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•
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Total interest expense increased 76.3% to $11.5 million in the third quarter of 2024 compared with the third quarter of 2023, and in the nine
months of 2024 rose 132.4% to $33.5 million compared with the nine months of 2023, primarily reflecting ongoing repricing of deposits and borrowed funds along with growth in total interest-bearing liabilities.
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|
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•
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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.
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•
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Net interest income before the provision for credit losses for the third quarter and nine months of 2024 was $14.2 million and $43.9 million,
respectively, compared with $15.2 million and $46.0 million in the 2023 periods, respectively. Both 2024 periods reflected higher interest expenses compared with a year earlier.
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•
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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
three months ended June 30, 2023. The provision for the nine-month period in 2024 was a release of $1.2 million compared to a provision of $450,000 for the same period in 2023.
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•
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Total net loans at June 30, 2024, increased to $1.71 billion from $1.68 billion at September 30, 2023.
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•
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Lending activity was highlighted by 3.1% growth in commercial real estate loans to $847.6 million at June 30, 2024, from $822.0 million at
September 30, 2023. Residential mortgages increased $87,000 from September 30, 2023, net of the sales of $15.2 million of mortgage loans during the same period.
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•
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Asset quality remained strong, with a ratio of nonperforming assets to total assets of 0.56% at June 30, 2024, compared to 0.63% at September 30, 2023. The allowance for credit losses to total loans was 0.89% at June 30, 2024, compared with 1.09% at September 30, 2023. Charge-offs net of recoveries for the nine months ended June 30, 2024, resulted in a net recovery of $137,000.
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•
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Total deposits were $1.55 billion at June 30, 2024, with lower-cost core deposits (demand, savings and money market accounts) comprising 64% of
total deposits. Total deposits were $1.66 billion at September 30, 2023, with core deposits comprising 70% of total deposits. Uninsured deposits were 26% of total deposits at June 30, 2024, including approximately $149.1 million of fully
collateralized municipal deposits.
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•
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The Bank continued to demonstrate financial strength, with a Tier 1 capital ratio of 9.8% at June 30, 2024.
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•
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Measures of shareholder value demonstrated growth. Tangible book value per share at June 30, 2024, increased to $20.89 from $19.80 at September
30, 2023. Total stockholders’ equity increased to $225.5 million at June 30, 2024, from $219.7 million at September 30, 2023. The Company further enhanced
shareholder value by repurchasing 303,609 ESSA shares in the first fiscal quarter of 2024.
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ESSA BANCORP, INC. AND SUBSIDIARY
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||||||||||
CONSOLIDATED BALANCE SHEET
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||||||||||
(UNAUDITED)
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||||||||||
June 30,
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September 30,
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|||||||||
2024
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2023
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|||||||||
(dollars in thousands)
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||||||||||
ASSETS
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||||||||||
Cash and due from banks
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$
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55,300
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$
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39,008
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||||||
Interest-bearing deposits with other institutions
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72,699
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46,394
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||||||||
Total cash and cash equivalents
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127,999
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85,402
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||||||||
Investment securities available for sale, at fair value
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215,201
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334,056
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||||||||
Investment securities held to maturity, at amortized cost
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||||||||||
(net of allowance for credit losses of $0)
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48,632
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52,242
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||||||||
Loans, held for sale
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140
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250
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||||||||
Loans receivable (net of allowance for credit losses
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||||||||||
of $15,298 and $18,525)
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1,708,572
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1,680,525
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||||||||
Regulatory stock, at cost
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18,758
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17,890
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||||||||
Premises and equipment, net
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11,368
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12,913
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||||||||
Bank-owned life insurance
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39,678
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39,026
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||||||||
Foreclosed real estate
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3,195
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3,311
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||||||||
Intangible assets, net
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—
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91
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||||||||
Goodwill
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13,801
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13,801
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||||||||
Deferred income taxes
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5,797
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6,877
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||||||||
Derivative and hedging assets
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12,289
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19,662
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||||||||
Other assets
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28,204
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27,200
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||||||||
TOTAL ASSETS
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$
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2,233,634
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$
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2,293,246
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||||||
LIABILITIES
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||||||||||
Deposits
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$
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1,554,300
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$
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1,661,016
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||||||
Short-term borrowings
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396,458
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374,652
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||||||||
Other borrowings
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10,000
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—
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||||||||
Advances by borrowers for taxes and insurance
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15,242
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6,550
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||||||||
Derivative and hedging liabilities
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7,565
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9,579
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||||||||
Other liabilities
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24,574
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21,741
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||||||||
TOTAL LIABILITIES
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2,008,139
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2,073,538
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||||||||
STOCKHOLDERS' EQUITY
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||||||||||
Common stock
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181
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181
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||||||||
Additional paid-in capital
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182,889
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182,681
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||||||||
Unallocated common stock held by the
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||||||||||
Employee Stock Ownership Plan ("ESOP")
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(5,670)
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(6,009)
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||||||||
Retained earnings
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160,770
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151,856
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||||||||
Treasury stock, at cost
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(104,050)
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(99,508)
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||||||||
Accumulated other comprehensive loss
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(8,625)
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(9,493)
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||||||||
TOTAL STOCKHOLDERS' EQUITY
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225,495
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219,708
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||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
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$
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2,233,634
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$
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2,293,246
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||||||
ESSA BANCORP, INC. AND SUBSIDIARY
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||||||||||||
CONSOLIDATED STATEMENT OF OPERATIONS
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||||||||||||
(UNAUDITED)
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||||||||||||
Three Months Ended June 30,
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Nine Months Ended June 30,
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|||||||||||
2024
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2023
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2024
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2023
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|||||||||
(dollars in thousands, except per share data)
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||||||||||||
INTEREST INCOME
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||||||||||||
Loans receivable, including fees
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$
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21,965
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19,132
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65,103
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52,721
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|||||||
Investment securities:
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||||||||||||
Taxable
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2,564
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2,161
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9,201
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6,348
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||||||||
Exempt from federal income tax
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11
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11
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32
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32
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||||||||
Other investment income
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1,122
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461
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3,066
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1,337
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||||||||
Total interest income
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25,662
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21,765
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77,402
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60,438
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||||||||
INTEREST EXPENSE
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||||||||||||
Deposits
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7,973
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4,915
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24,025
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10,733
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||||||||
Short-term borrowings
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3,380
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1,606
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9,100
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3,691
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||||||||
Other borrowings
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144
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—
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394
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—
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||||||||
Total interest expense
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11,497
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6,521
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33,519
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14,424
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||||||||
NET INTEREST INCOME
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14,165
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15,244
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43,883
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46,014
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||||||||
(Release of) Provision for credit losses
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(347)
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150
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(1,240)
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450
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||||||||
NET INTEREST INCOME AFTER (RELEASE OF) PROVISION
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||||||||||||
FOR CREDIT LOSSES
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14,512
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15,094
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45,123
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45,564
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||||||||
NONINTEREST INCOME
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||||||||||||
Service fees on deposit accounts
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719
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782
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2,089
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2,343
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||||||||
Services charges and fees on loans
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356
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288
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981
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985
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||||||||
Loan swap fees
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53
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-
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127
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138
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||||||||
Unrealized loss on equity securities
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(1)
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(1)
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(6)
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(4)
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||||||||
Trust and investment fees
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400
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426
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1,211
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1,231
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||||||||
Gain on sale of loans, net
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112
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39
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288
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97
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||||||||
Earnings on bank-owned life insurance
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220
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196
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652
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582
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||||||||
Insurance commissions
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133
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145
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395
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459
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||||||||
Other
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127
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64
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347
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92
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||||||||
Total noninterest income
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2,119
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1,939
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6,084
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5,923
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||||||||
NONINTEREST EXPENSE
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||||||||||||
Compensation and employee benefits
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6,771
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6,622
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20,190
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20,154
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||||||||
Occupancy and equipment
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1,170
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1,068
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3,627
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3,223
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||||||||
Professional fees
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1,218
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1,223
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3,282
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3,581
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||||||||
Data processing
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1,364
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1,296
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4,066
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3,697
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||||||||
Advertising
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116
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181
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491
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535
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||||||||
Federal Deposit Insurance Corporation ("FDIC")
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||||||||||||
premiums
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454
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380
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1,309
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748
|
||||||||
Foreclosed real estate
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-
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(1)
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101
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(4)
|
||||||||
Amortization of intangible assets
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-
|
47
|
91
|
142
|
||||||||
Other
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715
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677
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2,222
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2,143
|
||||||||
Total noninterest expense
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11,808
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11,493
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35,379
|
34,219
|
||||||||
Income before income taxes
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4,823
|
5,540
|
15,828
|
17,268
|
||||||||
Income taxes
|
909
|
1,144
|
3,015
|
3,321
|
||||||||
NET INCOME
|
$
|
3,914
|
$
|
4,396
|
$
|
12,813
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$
|
13,947
|
||||
Earnings per share:
|
||||||||||||
Basic
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$
|
0.41
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$
|
0.45
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$
|
1.34
|
$
|
1.44
|
||||
Diluted
|
$
|
0.41
|
$
|
0.45
|
$
|
1.34
|
$
|
1.44
|
||||
Dividends per share
|
$
|
0.15
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$
|
0.15
|
$
|
0.45
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$
|
0.45
|
For the Three Months
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For the Nine Months
|
||||
Ended June 30,
|
Ended June 30,
|
||||
2024
|
2023
|
2024
|
2023
|
||
(unaudited)
|
|||||
(dollars in thousands, except per share data)
|
|||||
CONSOLIDATED AVERAGE BALANCES:
|
|||||
Total assets
|
$ 2,171,985
|
$ 2,012,804
|
$ 2,199,980
|
$ 1,950,672
|
|
Total interest-earning assets
|
2,056,044
|
1,899,554
|
2,085,204
|
1,837,787
|
|
Total interest-bearing liabilities
|
1,649,117
|
1,495,520
|
1,682,086
|
1,431,090
|
|
Total stockholders’ equity
|
226,090
|
221,279
|
222,873
|
218,894
|
|
PER COMMON SHARE DATA:
|
|||||
Average shares outstanding - basic
|
9,517,948
|
9,734,708
|
9,560,306
|
9,716,593
|
|
Average shares outstanding - diluted
|
9,517,948
|
9,734,708
|
9,560,306
|
9,716,593
|
|
Book value shares
|
10,131,521
|
10,401,205
|
10,131,521
|
10,401,205
|
|
Net interest rate spread:
|
2.22%
|
2.85%
|
2.30%
|
3.04%
|
|
Net interest margin:
|
2.77%
|
3.22%
|
2.81%
|
3.34%
|
Contact:
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Gary S. Olson, President & CEO
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Corporate Office:
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200 Palmer Street
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Stroudsburg, Pennsylvania 18360
|
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Telephone:
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(570) 421-0531
|