In a release on
Results for the quarter ended
"During the quarter, we announced the planned acquisition of
Income Statement Review
As noted, net income in first quarter 2014 reflected the impact of fair value adjustments to acquired First Star loans. Net interest income decreased
Net interest margin was 2.98 percent for the three months ended
Interest income for the three months ended
The Company lowered interest expense 16.7 percent to
The provision for loan losses decreased to
Noninterest income decreased 19.7 percent to
"ESSA remains cautious with respect to its mortgage origination business," said Olson. "However, with the slowing of mortgage refinancing activity and an uptick in rates, we decided last year to return to our historical practice of retaining originated mortgages and building our loan portfolio."
Noninterest expense was
Balance Sheet, Asset Quality and Capital Adequacy
Total assets decreased
Total deposits decreased
Nonperforming assets totaled
Olson said, "Overall asset quality continues to trend positively, and while we continue our work to reduce non-performing assets, we have been pleased with the stability and quality of ESSA's loan portfolio."
The Company recorded a provision for loan losses of
The Bank continued to demonstrate financial strength, with a tier 1 leverage ratio of 11.46 percent, exceeding accepted regulatory standards for a well-capitalized institution. The Company also maintains a tangible equity to total assets ratio of 11.24 percent.
Stockholders' equity increased
The Company's return on average assets and return on average equity, respectively, were 0.59 percent and 4.77 percent, compared with 0.82 percent and 6.49 percent, in the corresponding period of fiscal 2012, the year-over-year comparisons partially reflecting the previously referenced changes in fair valuation adjustments. Return on average assets and return on average equity, respectively, were 0.59 percent and 4.95 percent for the quarter ended
Olson said, "We are building a franchise with the size and scale to leverage our strengths and comfortably manage regulatory expenses, capital requirements, while fully serving the financial needs of a larger market area. We are maintaining the tradition of providing customers with the highest level of personal service, attention and professionalism. And we remain committed to our tradition of growing shareholder value."
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In a release on