ESSA Bancorp, Inc (ESSA) has reported a 33.69 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $1.53 million, or $0.14 a share in the quarter, compared with $2.31 million, or $0.22 a share for the same period last year.
Revenue during the quarter grew 7.74 percent to $13.34 million from $12.38 million in the previous year period. Net interest income for the quarter rose 9.08 percent over the prior year period to $11.70 million. Non-interest income for the quarter rose 7.17 percent over the last year period to $2.39 million.
ESSA Bancorp, Inc has made provision of $0.75 million for loan losses during the quarter, up 30.43 percent from $0.58 million in the same period last year.
Net interest margin contracted 3 basis points to 2.82 percent in the quarter from 2.85 percent in the last year period.
“The Company had a great 2016 when we look at the amount and quality of the loans that we closed, yet growth has remained a challenge. A continued low interest rate environment and only modestly improving economic conditions have made businesses and individuals cautious about borrowing for expansion and more willing to pay off or refinance existing loans,” said Gary Olson, president and chief executive officer. “In addition to growth challenges, a flattening yield curve throughout most of our fiscal year provided negative pressure on our net interest margin. Going forward, we have committed additional lending resources to gain more traction in our existing and newer markets to improve our growth opportunities.”
Liabilities outpace assets growth
Total assets stood at $1,772.48 million as on Sep. 30, 2016, up 10.33 percent compared with $1,606.54 million on Sep. 30, 2015. On the other hand, total liabilities stood at $1,596.14 million as on Sep. 30, 2016, up 11.21 percent from $1,435.26 million on Sep. 30, 2015.
Loans outpace deposit growth
Net loans stood at $1,219.21 million as on Sep. 30, 2016, up 10.62 percent compared with $1,102.12 million on Sep. 30, 2015. Deposits stood at $1,214.82 million as on Sep. 30, 2016, up 10.77 percent compared with $1,096.75 million on Sep. 30, 2015.
Investments stood at $390.41 million as on Sep. 30, 2016, up 2.90 percent or $11 million from year-ago. Shareholders equity stood at $176.34 million as on Sep. 30, 2016, up 2.96 percent or $5.06 million from year-ago.
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