ESSA Bancorp, Inc. reported a net income of $3.96 million for the three months ended December 31, 2024, a decrease of 8.8% compared to $4.34 million for the same period in 2023. The decline in profitability was attributed to increased non-interest expenses and a decrease in net interest income, which fell to $14.14 million from $14.86 million year-over-year. Total interest income rose slightly to $26.37 million, driven by higher interest rates, while interest expense also increased to $12.23 million, reflecting the rising cost of interest-bearing liabilities.
The company's total assets increased by $8.4 million, or 0.4%, to $2.20 billion as of December 31, 2024, primarily due to a rise in cash and cash equivalents and loans receivable. Net loans grew by $11.9 million to $1.76 billion, with notable increases in residential and construction loans. However, investment securities available for sale decreased by 1.9% to $211.76 million, largely due to the runoff of mortgage-backed securities. Deposits also saw a significant increase of $70.9 million, or 4.4%, reaching $1.70 billion, driven by a rise in certificates of deposit.
In terms of operational metrics, the company reported a total of 10,154,664 shares of common stock outstanding as of February 5, 2025. The allowance for credit losses was maintained at $15.08 million, representing 0.85% of total loans, a slight decrease from the previous quarter. Non-performing loans decreased to $8.59 million, or 0.49% of total loans, down from $9.03 million, indicating improved asset quality.
Strategically, ESSA Bancorp is in the process of merging with CNB Financial Corporation, with the merger expected to close in the second half of 2025, subject to regulatory approvals and shareholder consent. This merger is anticipated to enhance the company's market position and operational capabilities. The management expressed confidence in the merger's potential benefits, although it acknowledged the uncertainties and challenges that may arise during the integration process.
Looking ahead, ESSA Bancorp's management remains focused on maintaining liquidity and capital adequacy while navigating the evolving economic landscape. The company plans to continue monitoring its loan portfolio closely and adjusting its strategies to mitigate risks associated with interest rate fluctuations and market conditions.
About ESSA Bancorp, Inc.
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