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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): January 28, 2009
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ESSA Bancorp, Inc.
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(Exact Name of Registrant as Specified in its Charter)
Pennsylvania 001-33384 20-8023072
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(State or Other Jurisdiction) (Commission File No.) (I.R.S. Employer
of Incorporation) Identification No.)
200 Palmer Street, Stroudsburg, Pennsylvania 18360
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (570) 421-0531
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Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operation and Financial Condition.
---------------------------------------------
On January 28, 2009, ESSA Bancorp, Inc. (the "Company") issued a press
release reporting its financial results for the quarter ended December 31, 2008.
A copy of the press release announcing the results is attached as Exhibit
99.1. The information in the preceding Item, as well as Exhibit 99.1, shall not
be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of
1934, nor shall it be deemed incorporated by reference in any filing under the
Securities Act of 1933.
Item 9.01 Financial Statements and Exhibits
---------------------------------
(a) Financial Statements of Businesses Acquired. Not applicable.
(b) Pro Forma Financial Information. Not applicable.
(c) Shell Company Transactions. Not applicable.
(d) Exhibits.
Exhibit No. Description
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99.1 Press release issued by the
Company on January 28, 2009 announcing its
financial results for the quarter ended
December 31, 2008.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.
ESSA BANCORP, INC.
DATE: February 2, 2009 By: /s/ Gary S. Olson
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Gary S. Olson, President and
Chief Executive Officer
ESSA Bancorp
Date: January 28, 2009
Contact: Gary S. Olson, President & CEO
Corporate Office: 200 Palmer Street
Stroudsburg, Pennsylvania 18360
Telephone: (570) 421-0531
ESSA BANCORP, INC. ANNOUNCES OPERATING RESULTS
FOR THE FIRST FISCAL QUARTER OF 2009
Stroudsburg, Pennsylvania, January 28, 2009 -- ESSA Bancorp, Inc. (the
"Company") (NASDAQ Global MarketSM "ESSA") the holding company for ESSA Bank &
Trust (the "Bank") today announced its operating results for the three months
ended December 31, 2008. The Company reported net income of $1.8 million, or
$0.13 per diluted share, for the three months ended December 31, 2008, as
compared to net income of $1.7 million, or $0.11 per diluted share, for the
corresponding 2007 period. The net income of $1.8 million for the three months
ending December 31, 2008 included a one-time tax benefit of $317,000 related to
the Company's other-than-temporary impairment (OTTI) charge taken in the
previous year. The OTTI charge related to Fannie Mae perpetual preferred stock
held in the Company's available-for-sale securities portfolio.
"It has been another strong quarter for the Company and our stockholders," noted
Gary S. Olson, President and Chief Executive Officer of the Company. "Despite
the overall weakening and
significant level of uncertainty in our economy, the Bank's traditional approach to banking continues to produce solid results. The Company continues to maintain high levels of capital, strong earnings, quality loan underwriting standards, and stable asset quality. We are confident that these strengths will carry our Company successfully through these turbulent times."
Net Interest Income:
Net interest income increased $795,000, or 12.8%, to $7.0 million for the three
months ended December 31, 2008, from $6.2 million for the comparable period in
2007. The increase was primarily attributable to an increase in the Company's
interest rate spread to 2.28% for the three months ended December 31, 2008, from
1.93% for the comparable period in 2007, offset in part by a decrease in the
Company's average net earning assets of $12.0 million.
Noninterest Income:
Noninterest income decreased $138,000, or 9.4%, to $1.3 million from $1.5
million for the comparable period in 2007. The primary reasons for the decrease
were declines in service fees on deposit accounts of $66,000, service charges
and fees on loans of $31,000 and trust and investment fees of $37,000.
Noninterest Expense:
Noninterest expense increased $735,000, or 14.6%, to $5.8 million for the three
months ended December 31, 2008, from $5.0 million for the comparable period in
2007. The primary reason for the increase was an increase in compensation and
employee benefits of $589,000. Compensation and employee benefits increased
primarily as a result of an expense of $538,000 for the three months ended
December 31, 2008, related to the Company's equity incentive plan. As previously
announced, the Company's stockholders approved the ESSA Bancorp, Inc. 2007
Equity Incentive Plan at the 2008 Annual Meeting of Stockholders on May 8, 2008.
Awards granted under the Equity Incentive Plan were made on May 23, 2008.
Balance Sheet
Total assets increased $39.2 million, or 4.0%, to $1,032.7 million at December
31, 2008, compared to $993.5 million at September 30, 2008. The primary reasons
for the increase in assets were increases in certificates of deposit of $3.0
million, net loans receivable of $11.5 million, investment securities available
for sale of $15.1 million, and an increase in cash and cash equivalents of $6.9
million. The increase in net loans receivable included net increases in
residential loans of $13.5 million, construction loans of $1.6 million and
2
consumer loans of $100,000, which were partially offset by decreases in
commercial real estate loans of $3.3 million and commercial loans of $728,000.
Total deposits increased $3.3 million at December 31, 2008, compared to
September 30, 2008 primarily as a result of increases in money market accounts
of $6.7 million. Borrowed funds increased during the same time period by $41.7
million.
Stockholders' equity decreased $5.9 million to $194.2 million at December 31,
2008, compared to $200.1 million at September 30, 2008 primarily as a result of
a previously announced stock repurchase program the Company began in June 2008.
As of December 31, 2008, the Company had purchased 1,462,500 shares at an
average price of $13.09 per share.
Asset Quality:
Nonperforming assets totaled $3.9 million, or 0.38%, of total assets at December
31, 2008, compared to $4.0 million, or 0.40%, of total assets at September 30,
2008. The Company, in response to continued loan growth and concern over the
deteriorating economy, made a provision for loan losses of $375,000 for the
three months ended December 31, 2008, as compared to a provision of $150,000 for
the comparable three-month period in 2007. The allowance for loan losses was
$4.8 million, or 0.67%, of loans outstanding at December 31, 2008, compared to
$4.9 million, or 0.69%, of loans outstanding at September 30, 2008.
ESSA Bank & Trust, a wholly-owned subsidiary of ESSA Bancorp, Inc., has total
assets of over $980 million and is the leading service-oriented financial
institution headquartered in the greater Pocono, Pennsylvania region. The Bank
maintains its corporate headquarters in downtown Stroudsburg, Pennsylvania and
has 13 community offices throughout the Pocono, Pennsylvania area. In addition
to being one of the region's largest mortgage lenders, ESSA Bank & Trust offers
a full range of retail and commercial financial services. ESSA Bancorp, Inc.
stock trades on The NASDAQ Global MarketSM under the symbol "ESSA."
###
3
Forward-Looking Statements
Certain statements contained herein are "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Such forward-looking statements may be
identified by reference to a future period or periods, or by the use of
forward-looking terminology, such as "may," "will," "believe," "expect,"
"estimate," "anticipate," "continue," or similar terms or variations on those
terms, or the negative of those terms. Forward-looking statements are subject to
numerous risks and uncertainties, including, but not limited to, those related
to the economic environment, particularly in the market areas in which the
Company operates, competitive products and pricing, fiscal and monetary policies
of the U.S. Government, changes in government regulations affecting financial
institutions, including regulatory fees and capital requirements, changes in
prevailing interest rates, acquisitions and the integration of acquired
businesses, credit risk management, asset-liability management, the financial
and securities markets and the availability of and costs associated with sources
of liquidity.
The Company wishes to caution readers not to place undue reliance on any such
forward-looking statements, which speak only as of the date made. The Company
wishes to advise readers that the factors listed above could affect the
Company's financial performance and could cause the Company's actual results for
future periods to differ materially from any opinions or statements expressed
with respect to future periods in any current statements. The Company does not
undertake and specifically declines any obligation to publicly release the
result of any revisions, which may be made to any forward-looking statements to
reflect events or circumstances after the date of such statements or to reflect
the occurrence of anticipated or unanticipated events.
4
ESSA BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
December 31, September 30,
2008 2008
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(dollars in thousands)
ASSETS
Cash and due from banks...................................................... $ 8,475 $ 8,382
Interest-bearing deposits with other institutions............................ 10,996 4,232
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Total cash and cash equivalents........................................ 19,471 12,614
Certificates of deposit...................................................... 6,756 3,777
Investment securities available for sale..................................... 219,186 204,078
Investment securities held to maturity (fair value of $11,619 and $11,924)... 11,398 11,857
Loans receivable (net of allowance for loan losses of $4,833 and $4,915)..... 718,406 706,890
Federal Home Loan Bank stock................................................. 20,727 19,188
Premises and equipment....................................................... 10,605 10,662
Bank-owned life insurance.................................................... 14,655 14,516
Foreclosed real estate....................................................... 2,150 31
Other assets................................................................. 9,354 9,869
TOTAL ASSETS............................................................... -------------- ----------------
$ 1,032,708 $ 993,482
============== ================
LIABILITIES
Deposits..................................................................... $ 373,808 $ 370,529
Short-term borrowings........................................................ 73,162 39,510
Other borrowings............................................................. 381,247 373,247
Advances by borrowers for taxes and insurance................................ 3,504 2,047
Other liabilities............................................................ 6,816 8,063
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TOTAL LIABILITIES.......................................................... 838,537 793,396
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Commitment and contingencies................................................. -- --
STOCKHOLDERS' EQUITY
Preferred Stock........................................................... -- --
Common stock.............................................................. 170 170
Additional paid in capital................................................ 160,505 159,919
Unallocated common stock held by the Employee Stock Ownership Plan........ (12,679) (12,792)
Retained earnings......................................................... 59,536 58,227
Treasury stock, at cost................................................... (11,497) (2,753)
Accumulated other comprehensive loss...................................... (1,864) (2,685)
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TOTAL STOCKHOLDERS' EQUITY................................................ 194,171 200,086
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY................................ $ 1,032,708 $ 993,482
=============== =================
ESSA BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
For the Three Months
Ended December 31,
--------------------------
2008 2007
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(dollars in thousands)
INTEREST INCOME
Loans receivable.......................................................... $ 10,601 $ 9,783
Investment securities:
Taxable............................................................. 2,453 2,702
Exempt from federal income tax...................................... 83 83
Other investment income................................................... 119 321
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Total interest income............................................... 13,256 12,889
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INTEREST EXPENSE
Deposits.................................................................. 1,971 2,689
Short-term borrowings..................................................... 155 438
Other borrowings.......................................................... 4,136 3,563
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Total interest expense.............................................. 6,262 6,690
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NET INTEREST INCOME............................................................. 6,994 6,199
Provision for loan losses................................................. 375 150
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NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES............................. 6,619 6,049
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NONINTEREST INCOME
Service fees on deposit accounts.......................................... 840 906
Services charges and fees on loans........................................ 121 152
Trust and investment fees................................................. 209 246
Earnings on Bank-owned life insurance..................................... 139 146
Other..................................................................... 16 13
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Total noninterest income............................................ 1,325 1,463
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NONINTEREST EXPENSE
Compensation and employee benefits........................................ 3,584 2,995
Occupancy and equipment................................................... 710 684
Professional fees......................................................... 335 289
Data processing........................................................... 469 479
Advertising............................................................... 203 145
Other..................................................................... 466 440
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Total noninterest expense........................................... 5,767 5,032
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Income before income taxes...................................................... 2,177 2,480
Income taxes.................................................................... 347 783
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NET INCOME...................................................................... $ 1,830 $ 1,697
=============== ==========
EARNINGS PER SHARE..............................................................
Basic $ 0.13 0.11
Diluted 0.13 0.11
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