Attached files
| file | filename |
|---|---|
| 8-K - 8-K - ESSA Bancorp, Inc. | d688875d8k.htm |
 Exhibit 99.1 |
 Forward Looking
Statements Building on Tradition
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 ESSA Bancorp, Inc. (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
event. |
 FY
2013– Building Financial Performance
•
Record net income of $8.8 million.
•
EPS of $0.76 per diluted share, exceeding our pre-acquisition projections of
$0.68.
•
Net
interest
income
up
37%:
net
interest
spread
up
from
2.42%
in
2012
to
2.97% in 2013, interest expense management.
•
$180 million in total new loans originated:
o
Mortgages -
839 loans for $133.48 million
o
Consumer -
289 loans for $10.59 million
o
Commercial -
77 loans for $37.25 million
•
Deposits
up
4.56%
to
$1.0
billion,
reflecting
$14
million
growth
in
commercial
checking accounts from expanded client relationships and increased use of
lower cost brokered certificates as part of interest expense management.
Building on Tradition |
 FY 2013
– Building on Financial Strength
•
Credit Quality:
o
Continue to utilize our prudent underwriting guidelines
o
Combined two companies; credit risk profile remained stable
o
Nonperforming assets/total assets of 1.89%
•
Capital strength above accepted regulatory standards for a well capitalized
institution.
Building on Tradition
9/30/2013 Actual
To Be Well Capitalized
Tot. Cap./Risk Weighted Assets
20.4%
10.0%
Tier 1 Cap./Risk Weighted Assets
19.4%
6.0%
Tier 1 Cap./Adjusted Assets
11.2%
5.0% |
 Building Value,
Building for the Future •
Return on average assets (ROAA) of 0.64% and return on average equity (ROAE) of
5.12%.
o
Out-performed Mid-Atlantic thrift peer group median ROAA of 0.48% and ROAE of
3.70%
•
Focus on building shareholder value:
o
Repurchased 1.26 million shares of ESSA common stock at a weighted average purchase price
of $11.07
o
Tangible book value increased to $12.99 per share from $12.37 per share
o
23 consecutive quarters of cash dividend on common stock
o
Recently announced $0.02 per share quarterly dividend increase to $0.07 per share; 2.6%
yield at announcement date
•
Continued acquisitive growth, new markets and expansion:
o
Announced Franklin Security Bancorp acquisition in FY 2014 to open new markets in
Wilkes- Barre and Scranton
o
Acquired loans and deposits and attractive branch facility from First National Community
Bank in FY 2014 to expand Monroe County presence, consolidate branches
Building on Tradition |
 Total Assets ($
in thousands) Building on Tradition
1,042,119
1,071,997
1,097,480
1,418,786
1,372,315
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
9/30/09
9/30/10
9/30/11
9/30/12
09/30/13 |
 Total Loans, Net
($ in thousands) Building on Tradition
733,580
730,842
738,619
950,355
928,230
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
9/30/09
9/30/10
9/30/11
9/30/12
9/30/2013 |
 Commercial &
Municipal Loans ($ in thousands) Building on Tradition
84,340
94,488
119,997
206,746
203,039
0
50,000
100,000
150,000
200,000
250,000
9/30/09
9/30/10
9/30/11
9/30/12
9/30/2013 |
 Total Deposits
($ in thousands) Building on Tradition
408,855
540,410
637,924
995,634
1,041,059
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
9/30/09
9/30/10
9/30/11
9/30/12
9/30/2013 |
 Net Income ($
in thousands) Building on Tradition
6,556
4,512
5,258
215
8,823
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
9/30/09
9/30/10
9/30/11
9/30/12
9/30/2013
9/30/09
9/30/10
9/30/11
9/30/13
9/30/12 |
 Stockholders’
Equity ($ in thousands)
Building on Tradition
9/30/09
9/30/10
9/30/11
9/30/12
9/30/13
185.5
171.6
161.7
175.4
166.4
145
150
155
160
165
170
175
180
185
190 |
 Total Stock
Return – Value Opportunity
Source: SNL Financial LC, Charlottesville, NC
Building on Tradition
0.00
20.00
40.00
60.00
80.00
100.00
120.00
140.00
160.00
180.00
9/30/08
9/30/09
9/30/10
9/30/11
9/30/12
9/30/13
ESSA Bancorp, Inc.
SNL Thrift Index
Russell 2000 |
 •
Offering superior service and products to a growing customer base
o
Meeting the needs of our customers. Satisfaction depends on providing
financial solutions and continual improvement of our service, products,
systems and operations.
•
Providing a positive and rewarding work experience for our employees
o
Our employees are ESSA’s most valuable asset. Our goal is to attract and
retain talented employees with the best work environment.
o
Enhancing the quality of life in our served communities through charitable
and civic contributions.
•
Enhancing value for our shareholders
o
Positive financial results contributed to higher ROAA and ROAE
o
Issued
our
23
consecutive
quarterly
cash
dividend
to
common
stockholders
o
Repurchased 1.26 million shares of ESSA common stock
rd
Building on Tradition |
 Building on
Tradition Building Our Future: Key Objectives in 2014
•
Growing return on equity through leveraging capital profitably
o
Complete integration of Franklin Savings Bank
o
Build share in served and new markets
o
Consider strategic acquisition opportunities
•
Effective risk management
o
Maintain high credit quality
o
Manage interest rate risk and exposure
o
Keep pace with regulatory, compliance requirements |
 Building on
Tradition Thank You! |