Profile: ESSA Bancorp Inc (ESSA.OQ)
27 Oct 2016
ESSA Bancorp, Inc., incorporated on November 29, 2006, is the Pennsylvania-chartered stock holding company of ESSA Bank & Trust (the Bank). The Company provides financial services to individuals, families and businesses through its approximately 30 full-service banking offices, located in Monroe, Northampton and Lehigh counties, Pennsylvania. The Bank's business consists primarily of accepting deposits from the general public and investing those deposits, together with funds generated from operations and borrowings, in residential first mortgage loans (including construction mortgage loans), commercial real estate loans, home equity loans and lines of credit, commercial and consumer loans (including indirect auto loans). It offers a range of deposit accounts, including checking, savings and certificates of deposits. It also offers asset management and trust services. The Company also offers investment services. It offers insurance benefit consulting services through its subsidiary, ESSA Advisory Services, LLC.
The Company's principal lending activity has been the origination of first mortgage loans for the purchase, construction or refinancing of one-to-four family residential real property. The Company's principal lending activity also consists of the origination of one-to-four family residential mortgage loans secured primarily by properties located in Monroe and Northampton counties, Pennsylvania. The fixed-rate loans are originated for terms of approximately 10, 15, 20 and 30 years. The Company also offers adjustable-rate mortgage loans, which have initial fixed terms of approximately one, three, five or seven-years before converting to an annual adjustment schedule based on changes in a designated the United States treasury index. The home equity loans and lines of credit are generated by its loan originators. Its properties include primary and vacation homes in northeastern Pennsylvania, with the majority of loans being originated in Monroe, Northampton and Lehigh Counties. As of September 30, 2015, home equity loans and lines were approximately $39.9 million.
The commercial real estate loans are secured by office buildings, mixed-use properties and other commercial properties. The Company originates adjustable rate commercial real estate loans with an initial term of approximately five years and a re-pricing option, and a maximum term of approximately 20 years. It offers first mortgage construction loans and most of the first mortgage construction loans are for the construction of residential properties. The Company offers fixed and adjustable-rate residential first mortgage construction loans. First mortgage construction loans are structured for permanent mortgage financing once the construction is completed. The Company offers commercial loans to individuals and businesses located in its primary market area. The commercial loan portfolio includes lines of credit, equipment loans, vehicle loans, improvement loans and term loans. These loans are primarily secured by vehicles, machinery and equipment, inventory, accounts receivable, marketable securities, deposit accounts and real estate. Its total loan portfolio consists of loan transactions, including tax and revenue anticipation notes, general obligation notes and authority general revenue notes. The Company's total loan portfolio also consists of auto loans, non-performing loans and a range of loans that are either unsecured or secured by property other than real estate. These loans include loans secured by deposits, personal loans and automobile loans. As of September 30, 2015, the total net loans were approximately $1.1 billion.
The Company's investment portfolio includes mortgage-backed securities, obligations of state and political subdivisions, the United States government agency securities, corporate obligations, trust-preferred securities, other debt securities and equity securities-financial services. As of September 30, 2015, the total investment securities available for sale were approximately $374.9 million.
Sources of Funds
The Company offers various deposit accounts with a range of interest rates and terms. The Company's deposit accounts consist of savings accounts, negotiable order of withdrawal (NOW) accounts, checking accounts, money market accounts, club accounts, certificates of deposit and individual retirement accounts (IRAs) and other qualified plan accounts. The Company provides commercial checking accounts for businesses. As of September 30, 2015, its total deposits were approximately $1.1 billion.
The Bank's subsidiaries include ESSACOR, Inc., Pocono Investment Company and ESSA Advisory Services, LLC. ESSACOR, Inc. is a Pennsylvania corporation that is used to purchase properties at tax sales that represent collateral for delinquent loans of the Bank. Pocono Investment Company holds and manages certain investments of the Bank, including certain intellectual property. ESSA Advisory Services, LLC is a Pennsylvania limited liability company owned by the Bank. ESSA Advisory Services, LLC is a full-service insurance benefits consulting company offering group services, such as health insurance, life insurance, short term and long term disability, dental, vision and 401(K) retirement planning, as well as individual health products.
ESSA Bancorp Inc
200 Palmer St
STROUDSBURG PA 18360-1645