Essa Bancorp Inc. Annual Report 2017

FY2017 Annual Report · Essa Bancorp Inc.

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Fellow Shareholders:

Fiscal 2017 was an exciting year for ESSA Bancorp, Inc. as we marked the Company’s
100th year of operation. Equally exciting was the prospect of entering our next century
with a larger team of experienced bankers; a commercial banking operation that has
become our primary growth engine; and a performance-focused corporate culture to

support growth, productivity, and profitability.

Durin
g the past several quarters, we have grown our team of seasoned, proven producers,
with select additions in commercial lending, cash management services, mortgage, indirect
auto lending, and Asset Management & Trust Services. Our larger team and expanded
presence in the Company’s three regional markets is supporting customer retention
and earning new business.

The Company closed a record number of loans in fiscal 2017, which contributed to year-
over-year growth in net loans. The number of commercial loans closed was by far the most
in the Company’s history, generating records in both interest income and fee income from
commercial banking activity. Trust assets under management in 2017 increased by 75%
from the previous year.

Across the organization, we implemented a number of strategic initiatives designed
to meet goals for productivity, efficiency, and profitability. Enhanced performance metrics
will better enable employees to match performance to expectations. New data analysis
procedures and systems are helping unlock the value of our customer and market data,
build customer relationships, and identify new business opportunities. Internal systems
and financial modeling will support goals for right-sizing ESSA’s operating and cost
structure, and achieve goals for capital management, efficiency, and profitability.

We completed the transition to a new executive management structure to enhance
the performance of our team and provide clear and direct lines of reporting for retail
and commercial banking, credit and operations, marketing, and finance. We formalized
the structure of ESSA’s three operating regions, each headed by regional presidents.

Gary S. Olson, President & CEO

The number of
commercial loans
closed was by far
the most in the
Company’s history,
generating records
in both interest
income and fee
income from
commercial
banking activity.

Downtown Allentown in the Lehigh Valley.

Fellow Shareholders:

Accelerating revenue from commercial
lending and banking services, combined
with careful expense management, will
be the key to being increasingly productive
and generating consistent earnings growth.
We believe the Company’s fourth-quarter
2017 financial results offered an indication
of things to come, with quarter-over-quarter
earnings up 31.4% and a 9.8% reduction
of noninterest expense.

Income Reflects Positive
Loan Trends

Commercial lending contributed a greater
portion of interest income than ever before,
and this growth was exclusively organic.
The Company closed a record $337 million
in loans during 2017, up from the previous
record of $275 million a year earlier (a 22.5%
increase). Of that fiscal 2017 total, we closed
$160 million in commercial loans—by far
the highest total in the Company’s history.
Total commercial loans, which included
Commercial & Industrial (C&I) and

Commercial Real Estate (CRE) loans, rose
9% compared with the year before. We look
forward to building on this momentum.

Net interest income after loan loss provision
was $42.17 million in 2017 compared with
$44.39 million a year earlier. The primary
reasons for the year-over-year change
was a 12-basis-point decrease in margin,
an increased loan loss provision consistent
with prudent reserving practices as our
loan portfolio grew, and a modest increase
in loan charge-offs. Overall loan quality
has remained sound, with a year-over-year
improvement in the ratio of nonperforming
assets to total assets in 2017.

A highlight of noninterest income in 2017
was year-over-year growth in loan-related
fee income as a result of increased
commercial lending. Noninterest income
generated by our suite of treasury services
for businesses also increased, reflecting
the progress we are making in expanding
banking relationships with customers.

This structure facilitates greater focus on
the unique characteristics and opportunities
in each of our served markets: the Lehigh
Valley, Philadelphia, and the Northern Region
(Poconos/Scranton/Wilkes-Barre).

While positioning the Company for
earnings growth, we continued our
record of delivering increased value to
shareholders. Average interest-earning
assets grew, retained earnings increased,
and stockholders’ equity rose by more than
$6 million to $182.7 million at September
30, 2017. The Company’s tangible book
value per share was $14.41 in fiscal 2017,
up from $14.05 a year earlier. Our positive
financial performance enabled us to
enhance our stock’s total return through
quarterly cash dividends, delivering the
Company’s 38th consecutive quarterly
dividend in the fourth quarter of fiscal 2017.

Focus on Sustainable
Income Growth

For the fiscal year ended September 30,
2017, ESSA Bancorp reported net income
of $7.3 million or $0.69 per diluted share,
compared with $7.7 million or $0.73 per
diluted share for the year ended September
30, 2016. Earnings in 2017 included
a number of positive income trends
driven by the Company’s investment
in building its team of seasoned
professionals, and enhancing
internal systems, infrastructure,
and technology.

ESSA corporate headquarters in Stroudsburg.

Total noninterest expense in 2017 was lower
than the previous year, with decreases in all
expense categories except compensation
and benefits, professional fees, and
marketing. These particular expenses were
related to an expanded banking team,
implementing strategic initiatives to drive
efficiency and productivity throughout
the organization, and building brand
recognition for ESSA.

Occupancy and equipment costs
declined year-over-year. Consistent with a
commitment to maximize the productivity
of our facilities and infrastructure, we
accelerated our plan to close the Company’s
remaining supermarket locations and exited
this business in the first quarter of fiscal
2018. The growth of electronic banking
and the proximity of convenient full-service
ESSA banking locations supported the
decision. We have an ongoing focus on
managing operating expenses to optimize
efficiency and profitability throughout
the organization.

Balance Sheet: Emphasis
on Best Opportunities

Our balance sheet reflected growth with
continuing high asset quality and
soundness. Total assets rose to $1.79 billion
at September 30, 2017, from $1.77 billion
a year earlier. The increase was primarily
due to commercial loan portfolio growth—
an exciting accomplishment. Loans
receivable, net of allowance for loan losses,
rose to $1.24 billion at fiscal year-end 2017,
from $1.22 billion a year earlier.

CRE loans increased to $318.3 million at
September 30, 2017, up 10.4% from a year
earlier. C&I loans at September 30, 2017
rose 10.4% compared with a year earlier.
This growth reflected encouraging trends,
particularly as our expanded lending
team and initiatives to identify market
opportunities were still ramping up.
We believe there is significant upside
ahead, and we entered the new fiscal year
with a solid commercial loan pipeline.

Commercial loan increases more than offset
lower residential mortgage lending and
slight declines in consumer and indirect
auto lending. We have a strong mortgage
team providing responsive, expert service
and online processing capabilities that
we believe makes ESSA very competitive.
The Lehigh Valley housing market has been
active and increasingly strong. Soft housing
markets in the Poconos and the Scranton/
Wilkes-Barre region present challenges, but
we continue to pursue the best mortgage
lending opportunities in all of our markets.

Indirect auto loans, which comprise
approximately 15% of our loan portfolio,
were relatively stable. We are comfortable
with the size and scope of this business,
which is managed by a talented and
experienced team.

Commercial lending, particularly C&I loans
frequently used for a variety of operating
capital and cash flow purposes, provides
a gateway to building expanded product
and service relationships with business
customers, including deposits linked

to customers’ banking activity. Increased
use of these linked deposits factored into
a 5% year-over-year increase in total
deposits at September 30, 2017.

Our ability to secure deposits from
commercial customers was reflected in
growth of noninterest-bearing deposits,
which are frequently associated with
commercial banking relationships.
The Company’s lower-cost core deposits
(noninterest-bearing demand accounts,
savings accounts, and money market
accounts) rose to 60% of total deposits at
year-end 2017 from 58% at year-end 2016.

Deposits linked to commercial loans
facilitate customers’ cash management
activities and provide a valuable source
of loan funding for ESSA. Linked treasury
services add convenience for customers
and enhance customer loyalty. Our goal
is to be the preferred source for our
customers’ financial solutions and
business banking needs.

ESSA has maintained high levels of asset
quality and capital strength to ensure
safe, secure operation and preserve the
Company’s value. Throughout 2017, we
reported sound asset quality measurements.
The ratio of nonperforming assets to total
assets at September 30, 2017 improved
to 0.88% from 1.24% a year earlier—a
meaningful indication that our practices
of loan and credit review, credit analysis,
and ongoing credit monitoring continue
to be effective. The Company demonstrated
ongoing capital strength, including capital

Boathouse row in Philadelphia.

We appreciate the loyalty and support
of our shareholders, many of whom have
shared with us their positive thoughts
about the Company’s initiatives and
strategic direction. Our Board of Directors
has provided strong guidance and
important leadership throughout this
transformative process. As we move into
our next century of operation, we believe
there is tremendous opportunity to grow
and deliver quality earnings and enhanced
value to our shareholders, employees,
and customers.

Sincerely,

Gary S. Olson, President & CEO

ratios that exceeded accepted regulatory
standards for a well-capitalized institution,
and a tangible equity to tangible assets
ratio of 9.44%.

Strategy: Looking Ahead

The past several years have brought
changes and new directions. Acquisitions
have brought expanded market coverage;
new lines of business; and a broad,
diversified customer base. We have
a strong team in place, with new tools
and processes to support productive and
efficient growth and quality earnings.

To support our team’s efforts to build
customer relationships, enhance customer
retention, and identify new business
opportunities, we implemented a
Marketing Customer Information File (MCIF)
system in 2017. This system promotes a
fuller understanding of our customer base,
and provides key information to better
serve our customers and identify
opportunities to earn a greater share
of their banking business.

Another strategic initiative implemented
in 2017 is aimed at enhancing analysis
and financial modeling to determine and
maintain an optimal asset and liability mix
on ESSA’s balance sheet, consistent with
a high-performing financial institution.
The information and scenarios generated
by this enhanced modeling, coordinated
with the MCIF system and other analytical
data-gathering capabilities, provide a
cohesive whole that we expect to facilitate
growth and support productive operation.

A commitment to expanding
our commercial banking
business, an expanded team
of seasoned managers
and producers, and actions
to drive organic growth and
enhance productivity and
efficiency have generated
a great deal of enthusiasm
throughout the Company.

Early in fiscal 2018, we completed an
organizational realignment we believe
will greatly enhance our growth
opportunities. To provide strong,
market-specific leadership, we formalized
our three operating regions headed by
regional presidents. These leaders have
years of experience, possess a deep
knowledge of their markets, and will help
identify our best business opportunities.

Also early in fiscal 2018, Executive Vice
President Peter Gray was named Chief
Banking Officer, primarily responsible
for overseeing commercial banking,
our three regional operations, marketing,
and noninterest income business lines.
Establishing a Chief Banking Officer
position completed the transition to
a new organizational structure that we
believe will provide enhanced leadership
and clear lines of reporting to support
our initiatives for productive operation.

Historic downtown Scranton.

Consolidated Financial Highlights

The following information is derived from the audited Consolidated Financial Statements of ESSA Bancorp, Inc. For additional
information, reference is made to “Management’s Discussion and Analysis of Financial Condition and Results of Operations”
and the Consolidated Financial Statements of ESSA Bancorp, Inc. and related notes included in Form 10-K as filed with the
Securities and Exchange Commission.

Selected Balance Sheet Data (Years ended September 30; data in thousands)

2017

2016

2015

2014

2013

Total assets

$1,785,218

$1,772,479

$1,606,544

$1,574,815

$1,372,315

Investment securities:
Available for sale

Loans, net

Deposits

390,452

390,410

379,407

383,078

315,622

1,236,681

1,219,213

1,102,118

1,058,267

928,230

1,274,861

1,214,820

1,096,754

1,133,889

1,041,059

Borrowed funds

311,614

360,061

320,440

259,320

152,260

Equity

182,727

176,344

171,280

167,309

166,446

Selected Operations Data (Years ended September 30; data in thousands)

2017

2016

2015

2014

2013

Net interest income

$45,519

$46,935

$43,789

$40,149

$39,845

Provisions for loan losses

3,350

2,550

2,075

2,350

3,750

Net interest income
after provisions for
loan losses

42,169

44,385

41,714

37,799

36,095

Noninterest income

8,199

8,783

7,896

7,407

8,024

Noninterest expense

41,438

42,858

36,865

33,811

32,462

Income tax expense

1,591

2,583

2,954

2,891

2,834

Net income

$7,339

$7,727

$9,791

$8,504

$8,823

Earnings per share:

Basic

Diluted

$0.69

$0.74

$0.73

$0.94

$0.93

$0.79

$0.76

Selected Other Data (Years ended September 30)

Return on average assets

Return on average equity

Interest rate spread(1)

Net interest margin(2)

Net charge-offs to
average loans outstanding

Tier 1 core capital (to
adjusted tangible assets)

2017

0.42%

4.11%

2.69%

2.77%

2016

0.45%

4.40%

2.81%

2.89%

2015

0.62%

5.68%

2.89%

2.96%

2014

0.59%

5.01%

2.89%

2.97%

2013

0.64%

5.12%

2.97%

3.08%

0.25%

0.20%

0.17%

0.32%

9.19%

8.76%

10.03%

10.04%

11.03%

(1) The interest rate spread represents the difference between the weighted-average yield on a fully tax-equivalent basis on interest-earning assets and
the weighted-average cost of interest-bearing liabilities for the year.

(2) The net interest margin represents net interest income on a fully tax-equivalent basis as a percent of average interest-earning assets for the year.

Stock Price & Market Capitalization

E
C
R
P

K
C
O
T
S

$21.00

$18.00

$15.00

$12.00

$9.00

2013

2014

2015

2016

2017

(Years ended September 30)

$190,000,000

$170,000,000

$150,000,000

$130,000,000

$110,000,000

N
O

I
T
A
Z
I
L
A
T
I

P
A
C

T
E
K
R
A
M

Dividends per Share

Earnings per Share (Diluted)

$1.00

$0.93

$0.80

$0.76

$0.79

$0.73 $0.69

$0.60

$0.40

$0.20

2013 2014 2015

2016 2017

(Years ended September 30)

$0.50

$0.40

$0.30

$0.20

$0.10

$0.34

$0.36

$0.26

$0.20

2013

2014

2015

2016 2017

(Years ended September 30)

Tangible Book Value (Per Share)

$15

$12

$12.99

$13.34

$14.03

$14.05 $14.41

2013 2014

2015

2016

2017

(Years ended September 30)

Consolidated Financial Highlights (cont’d)

Net Income (in Thousands)

Net Interest Margin

$10,000

$8,000

$6,000

$4,000

$2,000

$9,791

$8,823

$8,504

$7,727 $7,339

3.08% 2.97% 2.96% 2.89% 2.77%

2013 2014 2015

2016 2017

(Years ended September 30)

2013

2014 2015

2016 2017

(Years ended September 30)

Return on Average Equity

Revenue* (in Thousands)

5.68%

5.12%

5.01%

4.40% 4.11%

$80,000

$60,000

$40,000

$20,000

5
8
6
,
1
5
$

8
1
7
,
5
5
$

8
1
7
,
3
5
$

9
6
8
,
7
4
$

6
5
5
,
7
4
$

2013 2014

2015

2016 2017

(Years ended September 30)

2013

2014 2015

2016 2017

(Years ended September 30)

*Net interest income plus noninterest income.

Deposits (in Thousands)

Stockholders’ Equity (in Thousands)

$1,500,000

$1,200,000

$900,000

$600,000

$300,000

0
2
8
,
4
1
2
,
1
$

1
6
8
,
4
7
2
,
1
$

9
8
8
,
3
3
1
,
1
$

4
5
7
,
6
9
0
,
1
$

9
5
0
,
1
4
0
,
1
$

$200,000

$160,000

$120,000

$80,000

$40,000

6
4
4
,
6
6
1
$

9
0
3
,
7
6
1
$

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2
,
1
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1
$

4
4
3
,
6
7
1
$

7
2
7
,
2
8
1
$

2013 2014

2015

2016 2017

(Years ended September 30)

2013 2014

2015

2016

2017

(Years ended September 30)

Total Assets (in Thousands)

$2,000,000

$1,600,000

$1,200,000

$800,000

$400,000

9
7
4
,
2
7
7
,
1
$

8
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2
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5
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4
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5
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5
1
3
,
2
7
3
,
1
$

2013

2014 2015

2016 2017

(Years ended September 30)

Total Loans (in Thousands)

$1,400,000

$1,200,000

$900,000

$600,000

$300,000

9
6
2
,
8
2
2
,
1
$

6
4
0
,
6
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2
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0
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1
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4
9
2
,
6
3
9
$

1
0
9
,
6
6
0
,
1
$

2013 2014

2015 2016 2017

(Years ended September 30)

NPLs & Charge-Offs

s
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a
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L
g
n
m
r
o
f
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e
P
-
n
o
N

s
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a
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a
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o
t

2013

2014

2015

2016

2017

(Years ended September 30)

o
t

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A

0.5%

0.4%

0.3%

0.2%

0.1%

Executive Personnel

BOARD OF DIRECTORS & GENERAL COUNSEL

William A. Viechnicki, D.D.S.
Chairman of the Board
Orthodontist

Robert C. Selig, Jr.
Vice Chairman of the Board
President – Selig Construction Company

Joseph S. Durkin
Executive Vice President – Reilly Associates

Frederick E. Kutteroff
President – Keystone Savings Bank (retired)

Timothy S. Fallon
CEO – PBS 39

Christine D. Gordon, Esq.
Deputy Chief Compliance Officer –
Olympus Corporation of the Americas

Gary S. Olson
President & CEO – ESSA Bank & Trust

Brian T. Regan, CPA
Shareholder – Regan, Levin, Bloss,
Brown & Savchak, P.C.

Daniel J. Henning
President – A.C. Henning Enterprises, Inc.

Elizabeth Bensinger Weekes, Esq.
Partner – Bensinger & Weekes, PA

John E. Burrus
Director Emeritus

William P. Douglass
Director Emeritus

John S. Schoonover, Jr.
Director Emeritus

James V. Fareri, Esq.
General Counsel

Gary S. Olson
President & CEO

Charles D. Hangen
Executive Vice President & COO

Peter A. Gray
Executive Vice President & CBO

ESSA Bancorp, Inc.
200 Palmer Street
Stroudsburg, PA 18360

Mailing Address
P.O. Box L
Stroudsburg, PA 18360

OFFICERS

Allan A. Muto
Executive Vice President & CFO

Stephen H. Patterson
Senior Vice President & CLO

Diane K. Reimer
Senior Vice President,
Administrative/Operations Division

Thomas J. Grayuski
Senior Vice President,
Human Resources Division

James R. Gillen
Vice President, CMO

Suzie T. Farley
Vice President, Corporate Secretary,
Investor & Community Relations

CORPORATE HEADQUARTERS

Auditors
S.R. Snodgrass, P.C.
2100 Corporate Drive, Suite 400
Wexford, PA 15090

General Counsel
Newman, Williams, Mishkin,
Corveleyn, Wolfe & Fareri, P.C.
712 Monroe Street
Stroudsburg, PA 18360

A unified vision. A confident outlook.

The right staff, understanding and maximizing the value of customer
relationships, and putting information to work are the keys to
generating profitable growth in this economy. As part of a
multifaceted strategic plan, ESSA Bank & Trust implemented a number
of initiatives to support corporate performance and fuel growth.
A focused, goal-oriented team is the cornerstone of a bank’s success.

We have set clear expectations and goals for employees and
managers to help us staff for success, give team members strong
direction, enhance their ESSA experience, and link compensation
to their accomplishments. To provide the tools necessary to support
our team’s performance, ESSA has implemented new systems and
processes to identify customer behavior, profitability, and new
business opportunities.

Marketing Customer Information File
(MCIF) System

To unlock the value of the vast amounts of data and customer
information that ESSA generates on a daily basis, we have
implemented a Marketing Customer Information File (MCIF)
system. Linked with our internal information systems, MCIF
analyzes our records to provide a deeper look into our customer
base and its propensity for using products and services. It will
help define client needs, providing insights on opportunities
to grow these relationships. While the effective use of data is
a priority, protecting the privacy of our customers’ information
is of utmost importance, and at the forefront of our initiatives.

With MCIF, our bankers obtain information on clients’ use of products
and services—information that promotes understanding of how well
ESSA is meeting their needs. It also generates predictive intelligence
on customer behavior, enabling our bankers to reach out to provide
financial solutions and enrich relationships with clients.

Using the information that coordinates customer activity, product
usage, and our success in providing financial solutions to customers,
ESSA has the data to link compensation to individual and team

performance. This creates opportunities to promote employee
investment in corporate values and culture, and provides clear
pathways to rewarding performance and productivity.

Effective Measurement of Overall Performance

With a greater understanding of how we interact with and serve
customers, ESSA can more effectively measure our overall
performance. We implemented a more robust, detailed cost
accounting system that utilizes information from MCIF to analyze
our profitability by customer, division, and product. Integrated
customer information and cost accounting will provide a fuller
understanding of customer pricing preferences, help ensure
value for customers, keep margins on track, and enable informed
decisions that enhance profitability.

A focus on growth, while right-sizing ESSA’s cost structure, supports
goals for consistent earnings growth to build shareholder value.
Enhanced financial modeling is allowing management to run strategic
financial projections to determine our optimal asset and liability mix.
New procedures and capabilities provide a clear path for growth.

A Focus on Productivity, Growth & Value

A unified vision of how we interface with customers, identify market
opportunities, and measure performance throughout the organization
supports a strong, confident outlook. We look to expand relationships
with customers and grow our client base through new relationships,
particularly in the new geographical markets we entered in the past
five years. ESSA enters our next century of operation with a keen
focus on driving productivity, growing earnings, building value for
shareholders, providing a satisfying work experience for employees,
and giving customers superior products and services.

ESSA Locations by Region

380

1. Corporate Center
200 Palmer Street
P.O. Box L
Stroudsburg, PA 18360

115

209

115

209

611

191

512

611

191

380

191

115

476

611

940

309

NORTHERN REGION

4. Brodheadsville
1881 Route 209
Brodheadsville, PA 18322

7. Stroudsburg
744 Main Street
Stroudsburg, PA 18360

5. East Stroudsburg
75 Washington Street
East Stroudsburg, PA 18301

8. Tannersville
2826 Route 611
Tannersville, PA 18372

6. Marshalls Creek
5120 Milford Road
East Stroudsburg, PA 18302

9. Wind Gap
1430 Jacobsburg Road
Wind Gap, PA 18091

10. Blakeslee
249 Route 940
Blakeslee, PA 18610

11. Mountainhome
975 Route 390
Cresco, PA 18326

12. Scranton
300 Mulberry Street
Scranton, PA 18503

13. Wilkes-Barre
1065 Highway 315
Wilkes-Barre, PA 18702

2. Lehigh Valley Regional Office
190 Brodhead Road
Suite 200
Bethlehem, PA 18017

3. Philadelphia Regional Office
450 Plymouth Road
Suite 101
Plymouth Meeting, PA 19462

476

309

100

209

512

611

422

476

276

202

611

476

LEHIGH VALLEY REGION

PHILADELPHIA REGION

21. Devon
227 West Lancaster Avenue
Devon, PA 19333

23. Lansdowne
48 West Marshall Road
Lansdowne, PA 19050

309

22. Haverford
354 West Lancaster Avenue
Haverford, PA 19041

24. Upper Darby
8045 West Chester Pike
Upper Darby, PA 19082

18. Nazareth
14 South Main Street
Nazareth, PA 18064

19. New Tripoli
6302 Route 309
New Tripoli, PA 18066

20. Palmer
2415 Park Avenue
Easton, PA 18045

14. Alburtis
11 North Main Street
Alburtis, PA 18011

15. Allentown
471 West Wabash Street
Allentown, PA 18103

16. Bath
358 South Walnut Street
Bath, PA 18014

17. Bethlehem
418 West Broad Street
Bethlehem, PA 18018

ADDITIONAL SERVICES

Asset Management & Trust Services
744 Main Street, Suite 3A
Stroudsburg, PA 18360

ESSA Advisory Services
190 Brodhead Road, Suite 200
Bethlehem, PA 18017

ESSA Investment Services*
746 Main Street
Stroudsburg, PA 18360

*A Cetera Investment Services, LLC Program

OUR GUIDING PRINCIPLES

There are five Guiding Principles on which our Mission Statement is based:

We believe in long-term success, operating as a safe, sound, and stable
institution. Long-term success is dependent upon profits, but never will
profit-seeking compromise our mission.

We believe in satisfying the wants and needs of our customers. Satisfaction
is dependent upon a continual improvement of our service, products, systems,
and operations.

We believe our employees are our most valuable asset. Our employees will
be provided with a work environment which is “the best in town.”

We believe our decisions should enhance ESSA’s value. Enhanced value is
achieved through quality earnings, growth, and strong management practices.

We believe in supporting our community through employee volunteering
and charitable giving to improve the quality of life. The ESSA Bank & Trust
Foundation has been established to support this principle.

ESSA CODE OF ETHICS &
CONFLICT OF INTEREST POLICY

The ESSA Bancorp, Inc. Board of Directors has approved an Insider Code
of Ethics and Conflict of Interest policy. This policy provides Directors
and employees with specific guidance promoting honest and ethical
conduct and deterring wrongdoing.

Our policy may be found on our
website at essabank.com.

Mission
Statement

ESSA Bank & Trust will be the

leading service-oriented

community financial institution

offering a full range of financial

products to greater Eastern

Pennsylvania customers.

We will ensure our long-term

prosperity by providing products

and service in a manner consistent

with high standards of quality,

on a profitable basis, at the fairest

price, in order to create the best

possible value for our customers.

They will be delivered through

distribution systems staffed and

supported by customer-driven,

friendly, productive employees

with a high degree of integrity.

Corporate Information

STOCK LISTING
ESSA Bancorp, Inc. common stock is listed
on the NASDAQ Global MarketSM under the
symbol “ESSA.”

INTERNET INFORMATION
ESSA Bancorp, Inc. financial reports and
information about the products and services
of its wholly owned subsidiary, ESSA Bank &
Trust, are available at essabank.com.

FINANCIAL INFORMATION
We are subject to the informational
requirements of the Securities Exchange
Act of 1934. Therefore, we file annual,
quarterly, and current reports as well as
proxy materials with the Securities and
Exchange Commission (SEC). You can
obtain copies of these and other filings,
including exhibits, electronically at the
SEC’s website at sec.gov or through
the ESSA website at essabank.com
by clicking on the Investor Relations link.
Copies of our Annual Report and Form
10-K may also be obtained by contacting
Investor Relations at (570) 422-0182 or
via email at sfarley@essabank.com.

CORPORATE GOVERNANCE
Information about our Board and
its committees and about corporate
governance at ESSA is available in the
Governance Documents section of
the Investor Relations link on the ESSA
website at essabank.com. Shareholders
who would like to request printed copies
of the Code of Ethics or the charters
of our Board’s Nominating and Corporate
Governance, Audit, and Compensation
committees (all of which are posted on
the ESSA website through the Investor
Relations link) may do so by sending
their requests in writing to Suzie Farley,
Vice President, Corporate Secretary,
Investor and Community Relations, at
corporate headquarters at P.O. Box L,
Stroudsburg, PA 18360.

INQUIRIES
Individual investors should contact Suzie
Farley, Vice President, Corporate Secretary,
Investor and Community Relations,
at (570) 422-0182 or via email at
sfarley@essabank.com.

Analysts and institutional investors
should contact Allan Muto, Executive

Vice President and CFO, at (570) 422-0181
or via email at amuto@essabank.com.

News media representatives and others
seeking general information should
contact James Gillen, Vice President,
CMO, at (570) 420-5189 or via email
at jgillen@essabank.com.

ANNUAL SHAREHOLDERS’ MEETING
All eligible shareholders are invited to attend
the ESSA Bancorp, Inc. annual meeting on
Thursday, March 1, 2018, at 10 a.m.
The meeting will be held at:
Northampton Community College,
Monroe Campus
2411 Route 715
Tannersville, PA 18372

REGISTRAR & TRANSFER AGENT
Computershare, Inc.
P.O. Box 30170
College Station, TX 77842
800-368-5948
computershare.com/investor

SPECIAL COUNSEL
Luse Gorman, PC
5335 Wisconsin Avenue, N.W., Suite 780
Washington, DC 20015

FORWARD-LOOKING STATEMENTS
Certain statements contained in this Annual Report 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. Forward-looking statements may be identiﬁed by reference to a future
period or periods, or by use of forward-looking terminology, such as “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,”
“project,” and other similar words and expressions. Our 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 the Company operates, competitive
products and pricing, ﬁscal and monetary policies of the U.S. Government, changes in government regulations affecting ﬁnancial institutions,
legal developments, technological advances, 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.

Forward-looking statements are subject to numerous assumptions, risks, and uncertainties, which change over time. 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
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 events. 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. We provide greater detail regarding these factors in our Form 10-K for the year ended September
30, 2017, including the Risk Factors section. Our forward-looking statements may also be subject to other risks and uncertainties, including
those discussed elsewhere in this Annual Report or in our ﬁlings with the SEC, accessible on the SEC’s website at sec.gov or through the
Investor Relations link on our corporate website at essabank.com.

Equal Opportunity Lender • Member FDIC

essabank.com