Achieving Performance 2022 ANNUAL REP O RT Gary S. Olson President & CEO Fellow Shareholders: In fiscal 2022, ESSA achieved its highest level of success in our 106-year history. ESSA Bancorp’s fiscal year financial performance demonstrated a focus on core banking competencies, disciplined expense management, core deposit growth, liability cost control, and our employees working together to build strong relationships with one another and our customers. Looking back on the year, the success of our company can be attributed to our employees embracing and executing upon our strategic plan, and the support and guidance of our Board of Directors. The Company continued to build sustainable value for our shareholders through solid earnings growth, stable asset quality, a strong capital position, and an increased dividend. The Company reported record net income of $20.1 million, or $2.06 per share, a 22% increase from the previous year. Asset quality remained stable demonstrated by a non-performing asset ratio to total assets of .81%. Total stockholders’ equity in fiscal 2022 increased $10.5 million Year-end 2022 saw a total return to shareholders of 20.86% Capital & Asset Quality when compared to our closing stock price on September 30, 2021. Tangible book value per share on September 30, 2022, increased 6.7% to $19.12 compared with $17.92 on September 30, 2021. The management team and our Board of Directors greatly appreciate the confidence shareholders demonstrated in ESSA Bancorp’s ability to execute on our strategic plan. Service & Technology Maintaining a strong capital position and good asset quality has always been a priority of ESSA’s strategy and this was especially true during the uncertainty of the COVID-19 pandemic. The Bank demonstrated financial strength with a Tier 1 leverage ratio of 10.47% and Tier 1 risk-based capital of 12.16%, both of which far exceeded regulatory requirements for a well-capitalized institution. Additionally, as interest rates increased this year, a balance sheet hedging We pride ourselves, as community bankers, on providing strategy implemented in 2020 has helped to minimize the personal service to our customers while understanding the impact to the Company’s tangible book value. need to deliver accessibility to our products and services through multiple channels. The use of technology, coupled with in-person service, allows us to build more scale and provide product services to a wider range of customers. Asset quality remained strong in 2022 evidenced by no increase in the Company’s loan loss provision, no charge-offs, and our allowance for loan loss reserve of 1.27% of total loans. At the end of our fiscal year, We launched a full-service contact center with expanded we had no loans remaining in the COVID-19 loan hours and an objective to provide outstanding service across forbearance program. all of our markets. Further enhancements to our commercial digital products led to strong growth in online wires, ACH, and business mobile deposits. Retail customers are adopting digital channels as well, with 9% growth in mobile transfer volume, to $212.3 million. Our financial performance enabled us to P2P payments with our Zelle solution increasing by 23%, increase our dividend by $.07 per share to $.54 per share, electronic delivery of deposit and loan statements increasing from $.47 per share, and repurchase 110,000 shares of by 4,000, and the Bank sending an average of 143,000 text common stock at an average price of $17.10. alerts to subscribed customers on a monthly basis. 1 | | 2 The Bank made meaningful corporate contributions to 175 community organizations and our employees volunteered their time and expertise, providing more than 3,000 hours of community service. Lending Activity Deposit Activity Despite significant interest rate increases in the second half Commercial and retail deposits continued to provide low-cost of the year, the Bank produced over $470 million in total loan funding for our loan growth and are the foundation for production for the fiscal year. Residential mortgage production building customer relationships. Total deposits on September totaled $215 million in 2022 as we continue to provide home 30, 2022, were $1.38 billion, with core deposits comprising ownership opportunities for the communities within our market 90% of the total. The year-over-year decrease in total area. Commercial loan activity was also strong with $256 deposits was primarily the result of shifting brokered million in gross loan production. Our success in both residential deposits to lower-cost Federal Home Loan Bank borrowings. and commercial loan relationships has brought new customers Total interest expense for the year declined to $3 million to ESSA and the opportunity to deepen relationships and from $5.8 million for the 12 months of 2021. cross-sell additional products and services. We launched a new end-to-end commercial loan origination system with an eye toward speed and enhanced portfolio Corporate Citizenship & Community Commitment management practices. This will allow us to prudently grow our ESSA has maintained its longstanding commitment to commercial banking portfolio with a risk-based focus, which has corporate citizenship by adhering to our guiding principle been a stated goal in transitioning our balance sheet. of helping to improve the quality of life in the communities The Bank made meaningful corporate contributions to 175 community organizations and our employees volunteered their time and expertise, providing more than 3,000 hours of community service. The ESSA Bank & Trust Foundation made grants totaling $1.6 million to community organizations throughout our markets. The Future of Banking at ESSA We continue to pursue a clearly defined strategy designed to enhance ESSA Bank & Trust’s value. We will focus on improving our digital products and services, enhancing our analytics capabilities, and adding new team members as needed throughout the Company. We will manage our risks on an entity-wide basis, keeping our operations safe and sound. As we have over the past several years, we are maintaining the flexibility and responsiveness necessary to manage our business in a rapidly changing environment and ever-challenging economic time. With the rise in interest rates and anticipated slowing of the economy, we enter 2023 cautiously optimistic. ESSA is the strongest, safest, and most value-focused it has ever been. We believe the Company is well-positioned While the pace of lending activity was slower in the second half of 2022 due to rising interest rates, the higher rates provided the opportunity to add and retain more residential mortgages in the third and fourth quarters at more attractive rates. Consistent with a rise in short-term rates, yields on floating rate commercial loans have risen, helping to improve the Bank’s net interest margin. With full-service commercial banking teams in all of our markets, and a strong residential and purchase construction program, the Bank is well-positioned for future growth in these areas. in which we operate. The Bank continued its participation in private/public partnerships benefiting our communities through the federal CARE and STAR programs, providing loans and financial education to participants re-entering society. Additionally, this year we also joined the Strive program, which assists participants re-entering society from the Pennsylvania State court system. We enhanced to grow and pursue strategic opportunities. our first-time home buyer program to help make home ownership more affordable. In 2022, we established a Sincerely, new relationship with The Rise-Up Fund and Neighborhood Housing Services to help those in pursuit of home ownership in underserved communities. Gary S. Olson, President & CEO 3 | 3 | | 4 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) 2022 2021 2020 2019 2018 Total assets $1,861,817 $1,861,436 $1,893,515 $1,799,427 $1,833,790 Investment securities: Available for sale Loans, net Deposits 208,647 240,581 212,484 313,393 371,438 1,435,783 1,340,853 1,417,974 1,328,653 1,305,071 1,380,021 1,636,115 1,543,696 1,342,830 1,336,855 Borrowed funds 230,810 — 125,877 248,282 298,496 Equity 212,337 201,822 191,397 189,508 179,186 Selected Operations Data (Years ended September 30; data in thousands) 2022 2021 2020 2019 2018 Net interest income $59,771 $52,894 $48,207 $47,010 $48,235 Provision for loan losses 0 2,700 3,275 2,076 4,000 Net interest income after provision for loan losses 59,771 50,194 44,932 44,934 44,235 Noninterest income 8,510 11,493 13,255 8,157 7,813 Noninterest expense 43,277 41,790 40,588 38,053 39,853 Income before income tax expense 25,004 19,897 17,599 15,038 12,195 Income tax expense 4,934 3,473 3,183 2,415 5,664 Net income 20,070 $16,424 $14,416 $12,623 $6,531 I E C R P K C O T S $25.00 $20.00 $15.00 $10.00 $5.00 0 Stock Price & Market Capitalization $240,000,000 $200,000,000 $160,000,000 $120,000,000 $80,000,000 0 I I N O T A Z L A T P A C I T E K R A M 2018 2019 2020 2021 2022 (Years ended September 30) Dividends per Share Earnings per Share (Diluted) $0.54 $0.44 $0.47 $0.40 $0.36 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 0 $2.50 $2.00 $1.50 $1.00 $0.50 $0.60 0 $2.06 $1.65 $1.39 $1.18 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Earnings per share: Basic Diluted $2.06 $1.65 $1.39 $1.18 $0.60 (Years ended September 30) (Years ended September 30) $2.06 $1.65 $1.39 $1.18 $0.60 Selected Other Data (Years ended September 30) Return on average assets 1.08% 0.87% 2022 2021 2020 0.76% 2019 2018 0.69% 0.36% Return on average equity 9.47% 8.28% 7.43% 6.80% Interest rate spread(1) 3.33% 2.86% 2.49% 2.50% 3.61% 2.71% Net interest margin(2) 3.38% 2.96% 2.68% 2.73% 2.85% Nonperforming assets as a percentage of total assets Tier 1 core capital (to adjusted tangible assets) 0.81% 0.88% 1.09% 0.57% 0.64% 10.47% 10.05% 9.08% 9.67% 9.28% (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. $20 $15 $10 $5 0 Tangible Book Value (Per Share) $19.12 $17.92 $15.43 $16.26 $13.92 2018 2019 2020 2021 2022 (Years ended September 30) 5 | | 6 Consolidated Financial Highlights (cont’d) Executive Personnel Net Income (in Thousands) Deposits (in Thousands) $25,000 $20,000 $15,000 $10,000 $5,000 $6,531 0 $16,424 $14,416 $12,623 $2,000,000 $20,070 $1,500,000 $1,000,000 $500,000 0 , 6 9 6 3 4 5 1 $ , , 0 3 8 2 4 3 1 $ , , 5 5 8 6 3 3 1 $ , , 5 1 1 6 3 6 1 $ , , 1 2 0 0 8 3 1 $ , 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 (Years ended September 30) (Years ended September 30) Return on Average Equity Net Interest Margin 9.47% 7.43% 6.80% 3.61% 2.85% 2.73% 2.68% 2.96% 3.38% 4% 3% 2% 1% 0 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 (Years ended September 30) (Years ended September 30) Revenue* (in Thousands) Stockholders’ Equity (in Thousands) 2 6 4 1 6 $ , 7 8 3 4 6 $ , 1 8 2 8 6 $ , 8 4 0 6 5 $ , 7 6 1 5 5 $ , , 6 8 1 9 7 1 $ , 8 0 5 9 8 1 $ , 7 9 3 1 9 1 $ , 2 2 8 1 0 2 $ , 7 3 3 2 1 2 $ $250,000 $200,000 $150,000 $100,000 $50,000 0 2018 2019 2020 2021 2022 (Years ended September 30) *Net interest income plus noninterest income. 2018 2019 2020 2021 2022 (Years ended September 30) 10% 8% 6% 4% 2% 0 $80,000 $60,000 $40,000 $20,000 0 7 | BOARD OF DIRECTORS & GENERAL COUNSEL Robert C. Selig, Jr. Chairman of the Board President – Selig Construction Company Joseph S. Durkin Executive Vice President – Reilly Associates Christine D. Gordon, Esq. Chief Compliance Officer – Olympus Corporation of the Americas Daniel J. Henning President – A.C. Henning Enterprises, Inc. Philip H. Hosbach IV Vice President, Global Public Affairs for Vaccines – Sanofi Pasteur (retired) Gary S. Olson President & CEO – ESSA Bank & Trust John E. Burrus Director Emeritus William P. Douglass Director Emeritus Frederick E. Kutteroff Director Emeritus John S. Schoonover, Jr. Director Emeritus William A. Viechnicki, D.D.S. Director Emeritus Dr. Tina Q. Richardson Chancellor, Penn State University Lehigh Valley Carolyn P. Stennett, Esq. Vice President, Human Resources – Victaulic Company Elizabeth Bensinger Weekes, Esq. Partner – Bensinger & Weekes, PA James V. Fareri, Esq. General Counsel OFFICERS Gary S. Olson President & CEO Peter A. Gray Senior Executive Vice President & COO Charles D. Hangen Executive Vice President & CRO Allan A. Muto Executive Vice President & CFO Robert L. Selitto Senior Vice President & Controller Thomas J. Grayuski Senior Vice President, CHRO Stephanie Lefferson Corporate Secretary, Investor & Community Relations ESSA Bancorp, Inc. 200 Palmer Street Stroudsburg, PA 18360 Mailing Address P.O. Box L Stroudsburg, PA 18360 CORPORATE HEADQUARTERS Auditors S.R. Snodgrass, P.C. 2009 Mackenzie Way, Suite 340 Cranberry Township, PA 16066 General Counsel Newman, Williams, Mishkin, Corveleyn, Wolfe & Fareri, P.C. 712 Monroe Street Stroudsburg, PA 18360 | 8 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. 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. ADDITIONAL SERVICES • Asset Management & Trust Services • ESSA Advisory Services* • ESSA Investment Services** *ESSA Advisory Services, LLC is a subsidiary of ESSA Bank & Trust. Products and services offered by ESSA Advisory Services, LLC and ESSA Asset Management & Trust are: Not FDIC insured • May lose value • Not guaranteed by ESSA Bank & Trust • Not a deposit • Not insured by any federal government agency. **Investments are: Not Federally Insured | No Financial Institution Guarantee | May Lose Value. Ameriprise Financial is not affiliated with the financial institution where investment services are offered. Investment advisory products and services are made available through Ameriprise Financial Services, LLC, a registered investment adviser. Securities and insurance products offered through Ameriprise Financial Services, LLC, member FINRA and SIPC. Corporate Information STOCK LISTING CORPORATE GOVERNANCE 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 slefferson@essabank.com. 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 Stephanie Lefferson, Corporate Secretary, Investor and Community Relations, at corporate headquarters at P.O. Box L, Stroudsburg, PA 18360. INQUIRIES Individual investors should contact Stephanie Lefferson, Corporate Secretary, Investor and Community Relations, at 570-422-0182 or via email at slefferson@essabank.com. and CFO, at 570-422-0181 or via email at amuto@essabank.com. News media representatives and others seeking general information should contact Peter A. Gray, Senior Executive Vice President and COO, at 570-422-0198 or via email at pgray@essabank.com. ANNUAL SHAREHOLDERS’ MEETING All eligible shareholders are invited to attend the ESSA Bancorp, Inc. annual meeting on Thursday, March 9, 2023, at 10 a.m. The meeting will be held virtually at meetnow.global/M92SUWW. REGISTRAR & TRANSFER AGENT Computershare, Inc. P.O. Box 505000 Louisville, KY 40233-5000 800-368-5948 computershare.com/investor SPECIAL COUNSEL Luse Gorman, PC 5335 Wisconsin Avenue, N.W., Suite 780 Analysts and institutional investors should contact Allan Muto, Executive Vice President Washington, DC 20015 FORWARD-LOOKING STATEMENTS 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 the Company operates, competitive products and pricing, fiscal and monetary policies of the U.S. Government, changes in government regulations affecting financial institutions, including compliance costs 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, and the Risk Factors disclosed in our annual and quarterly reports. In addition, the COVID-19 pandemic continues to have an adverse impact on the Company, its customers, and the communities it serves. The adverse effect of the COVID-19 pandemic on the Company, its customers, and the communities where it operates will continue to adversely affect the Company’s business, results of operations, and financial condition for an indefinite period of 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 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 that 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. 9 | | 10 Corporate Center 200 Palmer Street P.O. Box L Stroudsburg, PA 18360-0160 Office: 570-421-0531 Toll-Free: 855-713-8001 essabank.com ©2023 ESSA Bancorp, Inc. Equal Opportunity Lender • Member FDIC