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Section 1: 10-Q (10-Q)

essa-10q_20180331.htm

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

Quarterly Report Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended March 31, 2018

OR

Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from                  to                 

Commission File No. 001-33384

 

ESSA Bancorp, Inc.

(Exact name of registrant as specified in its charter)

 

 

Pennsylvania

20-8023072

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification Number)

 

 

200 Palmer Street, Stroudsburg, Pennsylvania

18360

(Address of Principal Executive Offices)

(Zip Code)

(570) 421-0531

(Registrant’s telephone number)

N/A

(Former name or former address, if changed since last report)

 

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports) and (2) has been subject to such requirements for the past 90 days.    YES  ☒    NO  ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate web site if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    YES      NO  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filers,” “accelerated filers,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

   ☐

Accelerated filer

 

 

 

 

Non-accelerated filer

   ☐ (Do not check if smaller reporting company)

Smaller reporting company

 

 

 

 

Emerging growth company

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    YES  ☐    NO  ☒

As of May 8, 2018 there were 11,766,509 shares of the Registrant’s common stock, par value $0.01 per share, outstanding.

 

 


 

ESSA Bancorp, Inc.

FORM 10-Q

Table of Contents

 

 

 

Page

 

Part I. Financial Information

 

 

 

 

 

 

Item 1.

Financial Statements (unaudited)

 

2

 

 

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

40

 

 

 

 

Item 3

Quantitative and Qualitative Disclosures About Market Risk

 

50

 

 

 

 

Item 4

Controls and Procedures

 

50

 

 

 

 

 

Part II. Other Information

 

 

 

 

 

 

Item 1.

Legal Proceedings

 

51

 

 

 

 

Item 1A.

Risk Factors

 

51

 

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

 

51

 

 

 

 

Item 3.

Defaults Upon Senior Securities

 

51

 

 

 

 

Item 4.

Mine Safety Disclosures

 

51

 

 

 

 

Item 5.

Other Information

 

51

 

 

 

 

Item 6.

Exhibits

 

52

 

 

 

 

Signature Page

 

53

 

 

 


 

Part I. Financial Information

Item 1.

Financial Statements

ESSA BANCORP, INC. AND SUBSIDIARY

CONSOLIDATED BALANCE SHEET

(UNAUDITED)

 

 

 

March 31,

 

 

September 30,

 

 

 

2018

 

 

2017

 

 

 

(dollars in thousands)

 

Cash and due from banks

 

$

29,112

 

 

$

36,008

 

Interest-bearing deposits with other institutions

 

 

5,692

 

 

 

5,675

 

Total cash and cash equivalents

 

 

34,804

 

 

 

41,683

 

Certificates of deposit

 

 

500

 

 

 

500

 

Investment securities available for sale, at fair value

 

 

377,375

 

 

 

390,452

 

Loans receivable (net of allowance for loan losses of $10,510 and $9,365)

 

 

1,291,262

 

 

 

1,236,681

 

Regulatory stock, at cost

 

 

17,234

 

 

 

13,832

 

Premises and equipment, net

 

 

15,604

 

 

 

16,234

 

Bank-owned life insurance

 

 

38,130

 

 

 

37,626

 

Foreclosed real estate

 

 

1,279

 

 

 

1,424

 

Intangible assets, net

 

 

1,565

 

 

 

1,844

 

Goodwill

 

 

13,801

 

 

 

13,801

 

Deferred income taxes

 

 

8,299

 

 

 

10,422

 

Other assets

 

 

21,071

 

 

 

20,719

 

TOTAL ASSETS

 

$

1,820,924

 

 

$

1,785,218

 

LIABILITIES

 

 

 

 

 

 

 

 

Deposits

 

$

1,239,353

 

 

$

1,274,861

 

Short-term borrowings

 

 

241,345

 

 

 

137,446

 

Other borrowings

 

 

139,434

 

 

 

174,168

 

Advances by borrowers for taxes and insurance

 

 

12,188

 

 

 

5,163

 

Other liabilities

 

 

11,226

 

 

 

10,853

 

TOTAL LIABILITIES

 

 

1,643,546

 

 

 

1,602,491

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Preferred Stock ($0.01 par value; 10,000,000 shares authorized, none issued)

 

 

 

 

 

 

Common stock ($0.01 par value; 40,000,000 shares authorized, 18,133,095 issued;

   11,732,222 and 11,596,263 outstanding at March 31, 2018 and September 30,

   2017, respectively)

 

 

181

 

 

 

181

 

Additional paid in capital

 

 

180,466

 

 

 

180,764

 

Unallocated common stock held by the Employee Stock Ownership Plan (ESOP)

 

 

(8,488

)

 

 

(8,720

)

Retained earnings

 

 

90,179

 

 

 

91,147

 

Treasury stock, at cost; 6,400,873 and 6,536,832 shares outstanding at March 31, 2018

   and September 30, 2017, respectively

 

 

(78,225

)

 

 

(79,891

)

Accumulated other comprehensive loss

 

 

(6,735

)

 

 

(754

)

TOTAL STOCKHOLDERS’ EQUITY

 

 

177,378

 

 

 

182,727

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

$

1,820,924

 

 

$

1,785,218

 

See accompanying notes to the unaudited consolidated financial statements.

2


 

ESSA BANCORP, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENT OF OPERATIONS

(UNAUDITED)

 

 

 

For the Three Months Ended

 

 

For the Six Months Ended

 

 

 

March 31,

 

 

March 31,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

 

 

(dollars in thousands, except per

share data)

 

 

(dollars in thousands, except per

share data)

 

INTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivable, including fees

 

$

12,953

 

 

$

11,799

 

 

$

25,736

 

 

$

24,050

 

Investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

2,186

 

 

 

2,043

 

 

 

4,244

 

 

 

3,917

 

Exempt from federal income tax

 

 

285

 

 

 

303

 

 

 

573

 

 

 

612

 

Other investment income

 

 

423

 

 

 

234

 

 

 

670

 

 

 

450

 

Total interest income

 

 

15,847

 

 

 

14,379

 

 

 

31,223

 

 

 

29,029

 

INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

2,359

 

 

 

2,069

 

 

 

4,736

 

 

 

4,081

 

Short-term borrowings

 

 

951

 

 

 

296

 

 

 

1,535

 

 

 

547

 

Other borrowings

 

 

602

 

 

 

710

 

 

 

1,249

 

 

 

1,465

 

Total interest expense

 

 

3,912

 

 

 

3,075

 

 

 

7,520

 

 

 

6,093

 

NET INTEREST INCOME

 

 

11,935

 

 

 

11,304

 

 

 

23,703

 

 

 

22,936

 

Provision for loan losses

 

 

1,100

 

 

 

750

 

 

 

2,100

 

 

 

1,500

 

NET INTEREST INCOME AFTER PROVISION FOR LOAN

   LOSSES

 

 

10,835

 

 

 

10,554

 

 

 

21,603

 

 

 

21,436

 

NONINTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service fees on deposit accounts

 

 

821

 

 

 

813

 

 

 

1,704

 

 

 

1,677

 

Services charges and fees on loans

 

 

299

 

 

 

273

 

 

 

668

 

 

 

627

 

Trust and investment fees

 

 

237

 

 

 

214

 

 

 

477

 

 

 

364

 

Gain on sale of investments, net

 

 

75

 

 

 

 

 

 

75

 

 

 

 

Earnings on Bank-owned life insurance

 

 

249

 

 

 

256

 

 

 

504

 

 

 

519

 

Insurance commissions

 

 

204

 

 

 

203

 

 

 

375

 

 

 

396

 

Other

 

 

60

 

 

 

25

 

 

 

111

 

 

 

58

 

Total noninterest income

 

 

1,945

 

 

 

1,784

 

 

 

3,914

 

 

 

3,641

 

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and employee benefits

 

 

5,900

 

 

 

6,056

 

 

 

11,908

 

 

 

12,233

 

Occupancy and equipment

 

 

1,186

 

 

 

1,190

 

 

 

2,371

 

 

 

2,281

 

Professional fees

 

 

626

 

 

 

835

 

 

 

1,192

 

 

 

1,580

 

Data processing

 

 

888

 

 

 

931

 

 

 

1,817

 

 

 

1,865

 

Advertising

 

 

201

 

 

 

241

 

 

 

359

 

 

 

546

 

Federal Deposit Insurance Corporation (FDIC) premiums

 

 

256

 

 

 

213

 

 

 

445

 

 

 

400

 

Loss(Gain) on foreclosed real estate

 

 

32

 

 

 

(5

)

 

 

(4

)

 

 

(101

)

Amortization of intangible assets

 

 

135

 

 

 

164

 

 

 

279

 

 

 

327

 

Other

 

 

764

 

 

 

879

 

 

 

1,903

 

 

 

1,775

 

Total noninterest expense

 

 

9,988

 

 

 

10,504

 

 

 

20,270

 

 

 

20,906

 

Income before income taxes

 

 

2,792

 

 

 

1,834

 

 

 

5,247

 

 

 

4,171

 

Income taxes

 

 

529

 

 

 

203

 

 

 

4,622

 

 

 

603

 

NET INCOME

 

$

2,263

 

 

$

1,631

 

 

$

625

 

 

$

3,568

 

Earnings per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.21

 

 

$

0.15

 

 

$

0.06

 

 

$

0.34

 

Diluted

 

$

0.21

 

 

$

0.15

 

 

$

0.06

 

 

$

0.34

 

Dividends per share

 

$

0.09

 

 

$

0.09

 

 

$

0.18

 

 

$

0.18

 

 

 

See accompanying notes to the unaudited consolidated financial statements.

3


 

ESSA BANCORP, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS)

(UNAUDITED)

 

 

 

For the Three Months Ended

 

 

For the Six Months Ended

 

 

 

March 31,

 

 

March 31,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

 

 

(dollars in thousands)

 

Net income

 

$

2,263

 

 

$

1,631

 

 

$

625

 

 

$

3,568

 

Other comprehensive (loss) income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized holding gain (loss)

 

 

(6,452

)

 

 

1,184

 

 

 

(8,403

)

 

 

(9,048

)

Tax effect

 

 

1,352

 

 

 

(403

)

 

 

2,015

 

 

 

3,076

 

Reclassification of gains recognized in net income

 

 

(75

)

 

 

 

 

 

(75

)

 

 

 

Tax effect

 

 

18

 

 

 

 

 

 

18

 

 

 

 

Net of tax amount

 

 

(5,157

)

 

 

781

 

 

 

(6,445

)

 

 

(5,972

)

Pension plan adjustment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Related to freezing pension

 

 

 

 

 

7,143

 

 

 

 

 

 

7,143

 

Tax effect

 

 

 

 

 

(2,429

)

 

 

 

 

 

(2,429

)

Reclassification of gains recognized in net income

 

 

 

 

 

23

 

 

 

 

 

 

159

 

Tax effect

 

 

 

 

 

(10

)

 

 

 

 

 

(56

)

Net of tax amount

 

 

 

 

 

4,727

 

 

 

 

 

 

4,817

 

Derivative and hedging activities adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes in unrealized holding gains on derivatives

   included in net income

 

 

738

 

 

 

40

 

 

 

1,195

 

 

 

1,092

 

Tax effect

 

 

(151

)

 

 

(15

)

 

 

(307

)

 

 

(473

)

Reclassification adjustment for gains on derivatives included

   in net income

 

 

(76

)

 

 

(5

)

 

 

(99

)

 

 

6

 

Tax effect

 

 

13

 

 

 

3

 

 

 

21

 

 

 

(2

)

Net of tax amount

 

 

524

 

 

 

23

 

 

 

810

 

 

 

623

 

Total other comprehensive (loss) income

 

 

(4,633

)

 

 

5,531

 

 

 

(5,635

)

 

 

(532

)

Comprehensive (loss) income

 

$

(2,370

)

 

$

7,162

 

 

$

(5,010

)

 

$

3,036

 

 

See accompanying notes to the unaudited consolidated financial statements.

4


 

ESSA BANCORP, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY

(UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unallocated

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

Common Stock

 

 

Additional

 

 

Common

 

 

 

 

 

 

 

 

 

 

Other

 

 

Total

 

 

 

Number of

 

 

 

 

 

 

Paid In

 

 

Stock Held by

 

 

Retained

 

 

Treasury

 

 

Comprehensive

 

 

Stockholders’

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

the ESOP

 

 

Earnings

 

 

Stock

 

 

Loss

 

 

Equity

 

 

 

(dollars in thousands except share data)

 

Balance, September 30, 2017

 

 

11,596,263

 

 

$

181

 

 

$

180,764

 

 

$

(8,720

)

 

$

91,147

 

 

$

(79,891

)

 

$

(754

)

 

$

182,727

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

625

 

 

 

 

 

 

 

 

 

 

 

625

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,635

)

 

 

(5,635

)

Reclassification of certain income

   tax effects from accumulated

   other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

346

 

 

 

 

 

 

 

(346

)

 

 

 

Cash dividends declared ($0.18

   per share)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,939

)

 

 

 

 

 

 

 

 

 

 

(1,939

)

Stock based compensation

 

 

 

 

 

 

 

 

 

 

184

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

184

 

Allocation of ESOP stock

 

 

 

 

 

 

 

 

 

 

130

 

 

 

232

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

362

 

Allocation of treasury shares to

   incentive plan

 

 

22,994

 

 

 

 

 

 

 

(281

)

 

 

 

 

 

 

 

 

 

 

281

 

 

 

 

 

 

 

 

Stock options exercised

 

 

112,965

 

 

 

 

 

 

 

(331

)

 

 

 

 

 

 

 

 

 

 

1,385

 

 

 

 

 

 

 

1,054

 

Balance, March 31, 2018

 

 

11,732,222

 

 

$

181

 

 

$

180,466

 

 

$

(8,488

)

 

$

90,179

 

 

$

(78,225

)

 

$

(6,735

)

 

$

177,378

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes to the unaudited consolidated financial statements.

5


 

ESSA BANCORP, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENT OF CASH FLOWS

(UNAUDITED)

 

 

 

For the Six Months Ended

 

 

 

March 31,

 

 

 

2018

 

 

2017

 

 

 

(dollars in thousands)

 

OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

Net income

 

$

625

 

 

$

3,568

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Provision for loan losses

 

 

2,100

 

 

 

1,500

 

Provision for depreciation and amortization

 

 

599

 

 

 

685

 

Amortization and accretion of discounts and premiums, net

 

 

2,227

 

 

 

2,216

 

Net gain on sale of investment securities

 

 

(75

)

 

 

 

Compensation expense on ESOP

 

 

362

 

 

 

344

 

Stock based compensation

 

 

184

 

 

 

145

 

Increase in accrued interest receivable

 

 

(130

)

 

 

(160

)

Increase (decrease) in accrued interest payable

 

 

34

 

 

 

(183

)

Earnings on bank-owned life insurance

 

 

(504

)

 

 

(519

)

Deferred federal income taxes

 

 

3,525

 

 

 

170

 

(Decrease) increase in accrued pension liability

 

 

(255

)

 

 

297

 

Gain on foreclosed real estate, net

 

 

(4

)

 

 

(101

)

Amortization of identifiable assets

 

 

279

 

 

 

327

 

Other, net

 

 

1,910

 

 

 

3,963

 

Net cash provided by operating activities

 

 

10,877

 

 

 

12,252

 

INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

Certificates of deposit maturities

 

 

 

 

 

250

 

Investment securities available for sale:

 

 

 

 

 

 

 

 

Proceeds from sale of investment securities

 

 

22,074

 

 

 

 

Proceeds from principal repayments and maturities

 

 

32,270

 

 

 

33,192

 

Purchases

 

 

(50,617

)

 

 

(48,049

)

(Increase) decrease in loans receivable, net

 

 

(58,649

)

 

 

5,792

 

Redemption of regulatory stock

 

 

9,034

 

 

 

11,413

 

Purchase of regulatory stock

 

 

(12,436

)

 

 

(9,911

)

Proceeds from sale of foreclosed real estate

 

 

837

 

 

 

1,557

 

Purchase of premises, equipment and software

 

 

(66

)

 

 

(383

)

Net cash used for investing activities

 

 

(57,553

)

 

 

(6,139

)

FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

(Decrease) increase in deposits, net

 

 

(35,508

)

 

 

23,555

 

Net increase (decrease) in short-term borrowings

 

 

103,899

 

 

 

(8,509

)

Proceeds from other borrowings

 

 

25,100

 

 

 

17,597

 

Repayment of other borrowings

 

 

(59,834

)

 

 

(49,030

)

Increase in advances by borrowers for taxes and insurance

 

 

7,025

 

 

 

4,159

 

Exercising of stock options

 

 

1,054

 

 

 

807

 

Dividends on common stock

 

 

(1,939

)

 

 

(1,907

)

Net cash provided by (used for) financing activities

 

 

39,797

 

 

 

(13,328

)

Decrease in cash and cash equivalents

 

 

(6,879

)

 

 

(7,215

)

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR

 

 

41,683

 

 

 

43,658

 

CASH AND CASH EQUIVALENTS AT END OF YEAR

 

$

34,804

 

 

$

36,443

 

SUPPLEMENTAL CASH FLOW DISCLOSURES

 

 

 

 

 

 

 

 

Cash Paid:

 

 

 

 

 

 

 

 

Interest

 

$

7,486

 

 

$

6,276

 

Income taxes

 

 

(2

)

 

 

(389

)

Noncash items:

 

 

 

 

 

 

 

 

Transfers from loans to foreclosed real estate

 

688

 

 

2112

 

Unrealized holding loss

 

 

(8,478

)

 

 

(9,048

)

Pension Plan curtailment

 

 

 

 

 

7,143

 

 

See accompanying notes to the unaudited consolidated financial statements.

6


 

ESSA BANCORP, INC. AND SUBSIDIARY

Notes to Consolidated Financial Statements

(unaudited)

1.

Nature of Operations and Basis of Presentation

The consolidated financial statements include the accounts of ESSA Bancorp, Inc. (the “Company”), its wholly owned subsidiary, ESSA Bank & Trust (the “Bank”), and the Bank’s wholly owned subsidiaries, ESSACOR Inc.; Pocono Investments Company; ESSA Advisory Services, LLC; Integrated Financial Corporation; and Integrated Abstract Incorporated, a wholly owned subsidiary of Integrated Financial Corporation. The primary purpose of the Company is to act as a holding company for the Bank. On November 6, 2014, the Company converted its status from a savings and loan holding company to a bank holding company. In addition, the Bank converted from a Pennsylvania-chartered savings association to a Pennsylvania-chartered savings bank. The Bank’s primary business consists of the taking of deposits and granting of loans to customers generally in Monroe, Northampton, Lehigh, Delaware, Chester, Montgomery, Lackawanna, and Luzerne Counties, Pennsylvania. The Bank is subject to regulation and supervision by the Pennsylvania Department of Banking and Securities and the Federal Deposit Insurance Corporation (the “FDIC”). The investment in the Bank on the parent company’s financial statements is carried at the parent company’s equity in the underlying net assets.

ESSACOR, Inc. is a Pennsylvania corporation that has been used to purchase properties at tax sales that represent collateral for delinquent loans of the Bank and is currently inactive. Pocono Investment Company is a Delaware corporation formed as an investment company subsidiary to hold and manage certain investments, including certain intellectual property. ESSA Advisory Services, LLC is a Pennsylvania limited liability company owned 100 percent by ESSA Bank & Trust. 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. Integrated Financial Corporation is a Pennsylvania corporation that provided investment advisory services to the general public and is currently inactive. Integrated Abstract Incorporated is a Pennsylvania corporation that provided title insurance services and is currently inactive. All significant intercompany accounts and transactions have been eliminated in consolidation.

The unaudited consolidated financial statements reflect all adjustments, which in the opinion of management, are necessary for a fair presentation of the results of the interim periods and are of a normal and recurring nature. Operating results for the three and six month periods ended March 31, 2018 are not necessarily indicative of the results that may be expected for the year ending September 30, 2018.

2.

Earnings per Share

The following table sets forth the composition of the weighted-average common shares (denominator) used in the basic and diluted earnings per share computation for the three and six month periods ended March 31, 2018 and 2017.

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

March 31,

 

 

March 31,

 

 

March 31,

 

 

March 31,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Weighted-average common shares outstanding

 

 

18,133,095

 

 

 

18,133,095

 

 

 

18,133,095

 

 

 

18,133,095

 

Average treasury stock shares

 

 

(6,459,392

)

 

 

(6,618,067

)

 

 

(6,490,961

)

 

 

(6,670,049

)

Average unearned ESOP shares

 

 

(843,010

)

 

 

(888,285

)