form11k_2014.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 11-K

ANNUAL REPORT
PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

[X]
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the fiscal year ended December 31, 2014

OR

[  ]
TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the transition period from _______________ to _______________

Commission File Number 001-33384

A.  Full title of the plan and the address of the plan, if different from that of the issuer named below:

ESSA Bank & Trust 401(k) Plan

B.  Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:

ESSA Bancorp, Inc.
200 Palmer Street
Stroudsburg, PA 18360-0160


 
 
 







ESSA BANK & TRUST 401(k) PLAN

STROUDSBURG, PENNSYLVANIA




























AUDIT REPORT

DECEMBER 31, 2014

 
 
 



ESSA BANK & TRUST 401(k) PLAN
DECEMBER 31, 2014



Page
Number

Report of Independent Registered Public Accounting Firm                                                            1

Statement of Net Assets Available for Benefits                                                                                2

Statement of Changes in Net Assets Available for Benefits                                                           3

Notes to Financial Statements                                                                                                          4 - 13

Supplemental Schedule                                                                                                                    14 - 15


 
 
 


SNODGRASS
Certified Public Accountants
and Consultants
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Trustees
ESSA Bank & Trust 401(k) Plan


We have audited the accompanying statements of net assets available for benefits of the ESSA Bank & Trust 401(k) Plan as of December 31, 2014 and 2013, and the related statement of changes in net assets available for benefits for the year ended December 31, 2014.  These financial statements are the responsibility of ESSA Bank & Trust 401(k) Plan's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the ESSA Bank & Trust 401(k) Plan as of December 31, 2014 and 2013, and the changes in net assets available for benefits for the year ended December 31, 2014, in conformity with accounting principles generally accepted in the United States of America.

The supplemental information in the accompanying schedule of Schedule H, Line 4i – Schedule of Assets (Held at End of Year) as of December 31, 2014, has been subjected to audit procedures performed in conjunction with the audit of the Plan’s financial statements. The supplemental information is presented for the purpose of additional analysis and is not a required part of the financial statements but includes supplemental information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental information is the responsibility of the Plan's management. Our audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information. In forming our opinion on the supplemental information in the accompanying schedule, we evaluated whether the supplemental information, including its form and content, is presented in conformity with the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. In our opinion, the supplemental information is fairly stated in all material respects in relation to the financial statements as a whole.
 
 

 
/s/ S. R. Snodgrass, P.C.
Wexford, Pennsylvania
June 29, 2015


S.R. Snodgrass, P.C. * 2100 Corporate Drive, Suite 400 * Wexford, Pennsylvania  15090-8399 * Phone: (724) 934-0344 * Facsimile: (724) 934-0345

 
 
 


ESSA BANK & TRUST 401(k) PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS


       
December 31,
    
       
2014
  
2013
             
 ASSETS
        
 Investments, at fair value
        
 
ESSA Bancorp, Inc. common stock
$
      4,183,639
$
      3,991,174                
 
Pooled separate accounts
  
      7,960,395
  
      6,800,622                
 
Guaranteed investment contract
  
      1,678,327
  
        760,947                
   
Total investments, at fair value
  
    13,822,361
  
    11,552,743                
             
 
Notes receivable from participants
  
          78,235
  
          73,494                
             
 
Net assets reflecting investments at fair value
  
    13,900,596
  
    11,626,237                
             
 
Adjustment from fair value to contract
        
 
  value for fully benefit-responsive
        
 
  investment contract
  
       (106,521)
  
         (43,560)               
   
Total assets
  
    13,794,075
  
    11,582,677                
             
 LIABILITIES
        
 
Excess contribution payable
  
            3,505
  
                -                
             
 
Net assets available for benefits
$
    13,790,570
$
    11,582,677                

     The accompanying notes are an integral part of these financial statements.
 
-2-
 
 
 




ESSA BANK & TRUST 401(k) PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 2014

 
 ADDITIONS TO NET ASSETS ATTRIBUTED TO:
    
   
Investment income:
    
     
Net appreciation in fair value of investments
$
      557,322           
     
Interest and dividends on investments
  
        93,000           
               
       
Total investment income
  
      650,322           
               
   
Interest income on notes receivable from participants
  
          3,100           
               
   
Contributions:
      
   
      Contributions by employees
  
      678,314           
   
      Rollover contributions
  
    1,136,737           
               
       
Total contributions
  
1,815,051           
               
       
Total additions
  
    2,468,473           
               
 DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO:
    
   
Benefits paid to participants
  
      238,470           
   
Administrative expenses
  
        22,110           
               
       
Total deductions
  
      260,580           
               
   
Net increase
    
    2,207,893           
               
 NET ASSETS AVAILABLE FOR BENEFITS:
    
   
Beginning of the period
  
  11,582,677           
               
   
End of the period
  
$
  13,790,570           
 
The accompanying notes are an integral part of these financial statements.
-3-

 
 
 
 

ESSA BANK & TRUST 401(k) PLAN
NOTES TO FINANCIAL STATEMENTS


NOTE 1 - DESCRIPTION OF PLAN

The following brief description of the ESSA Bank & Trust 401(k) Plan (the “Plan”) for employees of ESSA Bank & Trust (the “Bank”) is provided for general information
purposes only.  Participants should refer to the Plan Document for a more comprehensive description of the Plan’s provisions.

General

The Plan is a defined contribution plan covering the employees of the Bank who have attained the age of 21 and have completed one year of service and 1,000 hours of service.  
An employee becomes a participant on either January 1 or July 1, depending on when eligibility requirements are met.  The Plan includes a 401(k) before-tax and after-tax
savings features, which permits participants to defer compensation under Section 401(k) of the Internal Revenue Code.  It is subject to the provisions of the Employee
Retirement Income Security Act of 1974 (“ERISA”), as amended.   The Benefits Committee is responsible for oversight of the Plan.  The Benefits Committee determines the
appropriateness of the Plan’s investment offerings, and monitors investment performance.
 
 
Contributions

Employees may elect to contribute any amount up to the maximum percentage allowable, not to exceed the limits of Code Sections 401(k), 402(g), 404, and 415.  
Participants who have attained age 50 before the end of the Plan year are eligible to make catch-up contributions.  The participants may direct their accounts into several
different investment options.  Contributions are subject to certain limitations.

Effective January 1, 2011, the Plan was amended to discontinue the employer match.

Participant Accounts

Each participant’s account is credited with allocations of Plan earnings based upon participant’s account balances at the beginning of the valuation period.  The benefit to
which a participant is entitled is the benefit that can be provided from the participant’s vested account.

Vesting

Participants are immediately vested in their voluntary contributions and actual earnings thereon.

Payment of Benefits

Upon termination of service, participants whose accounts do not exceed $1,000 may receive a lump-sum amount equal to the value of their account.  Participants whose
accounts are between $1,000 and $5,000 may receive a lump-sum distribution or may have the balance of their account rolled over into an Individual Retirement Account
(“IRA”).  Participants whose vested account balance at the time of termination exceeds $5,000 may receive a lump-sum distribution or may defer payments of benefits until
April 1 of the calendar year following the calendar year during which the participant reaches age 70 1/2.

-4-

 
 
 

NOTE 1 - DESCRIPTION OF PLAN (Continued)

Notes Receivable from Participants

Participants may borrow from their fund accounts a minimum of $1,000 up to a maximum equal to the lesser of $50,000 or 50 percent of their account balance. The loans are
secured by the balance in the participant’s account and bear interest at 4.25 to 5.50 percent, which is commensurate with local prevailing rates. Principal and interest are
paid ratably through monthly payroll deductions.  Loans may be requested for hardship purposes only.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accounting principles followed by the Plan and the methods of applying these principles conform to U.S. generally accepted accounting principles.  The financial statements
of the Plan are prepared on the accrual basis of accounting.

A summary of the significant accounting and reporting policies applied in the presentation of the accompanying financial statements follows:

Use of Estimates

In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts and disclosures.  Actual results could differ
from those estimates.

Investment Valuation and Income Recognition

The Plan’s investments are reported at fair value.  The fair value of pooled separate accounts is determined using the observable net asset value of the underlying investment.  
The fair value of ESSA Bancorp, Inc. common stock is determined based on a quoted market price.

Purchases and sales of investments are recorded on a trade-date basis.  Interest income is recorded on the accrual basis.  Dividends are recorded on the ex-dividend date.  The net
appreciation in fair value of investments includes investments purchased, sold, and held during the year.

Guaranteed Investment Contract

Guaranteed investment contracts held by a defined-contribution plan are required to be reported at fair value. However, contract value is the relevant measurement for that portion
of the net assets available for benefits of a defined-contribution plan attributable to fully benefit-responsive investment contracts because contract
 
-5-

 
 
 

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Guaranteed Investment Contract (Continued)

value is the amount participants would receive if they were to initiate permitted transactions under the terms of the Plan. The Statement of Net Assets Available for Benefits presents
the fair value of the investment contracts, as well as the adjustment of the fully benefit-responsive investment contracts from fair value to contract value. The Statement of Net Changes
in Net Assets Available for Benefits is prepared on a contract value basis.

Notes Receivable from Participants

Notes receivable from participants are measured at their unpaid principal balance plus any accrued but unpaid interest. Delinquent participants’ loans are reclassified as distributions
based upon the terms of the Plan Document.  No allowance for credit losses has been recorded as of December 31, 2014 and 2013.

Payment of Benefits

Benefit payments to participants are recorded upon distribution.

Administrative Expenses

Administrative expenses of the Plan relating to investment management and recordkeeping fees are paid by the Plan.  Fees relating to accounting and miscellaneous administrative
expenses are paid by the Plan’s sponsor.

Excess Contribution Payable

Amounts payable to participants for contributions in excess of amounts allowed by the Internal Revenue Service are recorded as a liability with a corresponding reduction to
contributions. The Plan distributed the 2014 excess contributions to the applicable participants prior to March 31, 2015.
 
-6-

 
 
 

NOTE 3 - INVESTMENTS

The Plan’s investments are administered by Massachusetts Mutual Life Insurance Company (“trustee”).

The fair value of the individual investments that represents 5 percent or more of the Plan’s net assets as of December 31 is as follows:

       
2014
         
 Investments at fair value:
    
         
 
ESSA Bancorp, Inc. common stock
$
           4,183,639                
 
Growth America (American)
  
              799,874                
 
MM S&P 500 Index (Northern Trust)
  
              910,676                
 
Guaranteed investment contract
  
           1,678,327                
         
         
       
2013
         
 Investments at fair value:
    
         
 
ESSA Bancorp, Inc. common stock
$
            3,991,174                
 
New Horizons (T. Rowe Price)
  
              884,497                
 
MM S&P 500 Index (Northern Trust)
  
              673,130                
 
Guaranteed investment contract
  
              760,947                

The Plan’s investments appreciated in fair value for the year ended December 31, 2014, as follows:
 
 
ESSA Bancorp, Inc. common stock
        
 $
       239,246                
 
Pooled separate accounts
          
       255,114                
 
Guaranteed investment contract
          
        62,962                
                 
 Net appreciation in fair value
        
 $
       557,322                
  
 
NOTE 4 - GUARANTEED INVESTMENT CONTRACT WITH MASSACHUSETTS MUTUAL LIFE
 
INSURANCE COMPANY

The Plan has a benefit-responsive guaranteed investment contract with Massachusetts Mutual Life Insurance Company. Massachusetts Mutual Life Insurance Company maintains
the contributions in a general account. The account is credited with earnings on the underlying investments and charged for participant withdrawals and administrative expenses.
The guaranteed investment contract issuer is contractually obligated to repay the principal and a specified interest rate that is guaranteed to the Plan.

Because the guaranteed investment contract is fully benefit-responsive, contract value is the relevant measurement attribute for that portion of the net assets available for benefits
attributable to the guaranteed investment contract. The guaranteed investment contract is presented on the face of the Statement of Net Assets Available for Benefits at fair
value with an adjustment to contract value in arriving at net assets available for benefits. Contract value, as reported to the Plan by Massachusetts Mutual Life Insurance
Company, represents contributions made under the contract, plus earnings, less participant withdrawals and administrative expenses. Participants may ordinarily direct the withdrawal
or transfer of all or a portion of their investment at contract value.
 
-7-

 
 
 

 
NOTE 4 - GUARANTEED INVESTMENT CONTRACT WITH MASSACHUSETTS MUTUAL LIFE
 
INSURANCE COMPANY (Continued)

There are no reserves against contract value for credit risk of the contract issuer or otherwise. The fair value of the investment contract at December 31, 2014 and 2013, was
$1,678,327 and $760,947, respectively. The crediting interest rate is based on a formula agreed upon with the issuer, but it may not be less than 3 percent. Such interest rates
are reviewed on a quarterly basis for resetting.
 
Certain events limit the ability of the Plan to transact at contract value with the issuer. Such events include the following: (1) amendments to the Plan documents (including
complete or partial Plan termination or merger with another plan); (2) changes to the Plan's prohibition on competing investment options or deletion of equity wash provisions;
(3) bankruptcy of the Plan Sponsor or other Plan Sponsor events (for example, divestitures or spin-offs of a subsidiary) that cause a significant withdrawal from the Plan; or
(4) the failure of the trust to qualify for exemption from federal income taxes or any required prohibited transaction exemption under ERISA. The Plan Administrator does not
believe that any events which would limit the Plan's ability to transact at contract value with participants are probable of occurring.
 
The guaranteed investment contract does not permit the insurance company to terminate the agreement prior to the scheduled maturity date.

       
2014
  
2013
  
               
 Average yields:
          
               
 
Based on actual earnings
  
             2.92
%
             2.85
%
 
Based on interest rate credited to participants
  
             2.92
%
             2.85
%
 
-8-
 
 
 

NOTE 5 - PLAN TERMINATION

Although it has not expressed any intent to do so, the Bank has the right under the Plan to terminate the Plan subject to the provisions of ERISA.  In the event of termination
of the Plan, participants will become 100 percent vested in their accounts.

NOTE 6 - TAX STATUS

The Plan obtained its latest determination letter on March 31, 2014, in which the Internal Revenue Service stated that the Plan, as then designed, was in compliance with the
applicable requirements of the Internal Revenue Code.  The Plan has been amended since receiving the determination letter.  However, the Plan Administrator believes that
the Plan is currently designed and being operated in compliance with the applicable requirements of the Internal Revenue Code.

Plan management is required to evaluate tax positions taken by the Plan and recognize a tax liability or asset if the Plan has taken an uncertain position that more likely than
not would not be sustained upon examination by the Internal Revenue Service. The Plan Administrator has analyzed the tax positions taken by the Plan, and has concluded
that as of December 31, 2014, there are no uncertain positions taken or expected to be taken that would require recognition of a liability or asset or disclosure in the
financial statements. The Plan is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress.  The Plan Administrator
believes it is no longer subject to income tax examinations for years prior to 2011.

NOTE 7 - PARTY-IN-INTEREST TRANSACTIONS

Certain Plan investments are pooled separate accounts that are managed by Massachusetts Mutual Life Insurance Company, the defined trustee of the Plan.  Therefore,
related transactions qualify as party-in-interest transactions.

The Plan’s sponsor absorbs fees related to accounting and miscellaneous administrative expenses.  Such costs amounted to $13,435 for the year ended December 31, 2014.

At December 31, 2014 and 2013, the Plan held 332,143 shares of ESSA Bancorp, Inc. common stock, respectively.  Dividends received on these shares in 2014 totaled $93,000.

NOTE 8 - FAIR VALUE MEASUREMENTS

The following disclosures show the hierarchal disclosure framework associated with the level of pricing observations utilized in measuring assets and liabilities at fair value.  
The three broad levels of pricing observations are as follows:

Level I:
Quoted prices are available in active markets for identical assets or liabilities as of the reported date.

Level II:
Pricing inputs are other than the quoted prices in active markets, which are either directly or indirectly observable as of the reported date.  The nature of these
assets and liabilities includes items for which quoted prices are available but traded less frequently and items that are fair-valued using other financial instruments,
the parameters of which can be directly observed.

Level III:
Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

 
This hierarchy requires the use of observable market data, when available.
 
-9-
 
 
 

NOTE 8 - FAIR VALUE MEASUREMENTS (Continued)

The following table presents the assets reported on the Statement of Net Assets Available for Benefits at their fair value as of December 31, 2014 and 2013, by level
within the fair value hierarchy.  Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

     
December 31, 2014
     
Level I
  
Level II
  
Level III
  
Total
 Assets:
                
    ESSA Bancorp, Inc. common stock
 $
  4,183,639
 $
               -
 $
             -
 $
    4,183,639           
    Pooled separate accounts:
                
 
Asset Allocation/Lifecycle
  
             -
  
    1,636,094
  
             -
  
    1,636,094           
 
High Yield Bond
  
             -
  
        91,598
  
             -
  
        91,598           
 
Intermediate Term Bond
  
             -
  
      421,712
  
             -
  
      421,712           
 
International/Global Growth
  
             -
  
      466,325
  
             -
  
      466,325           
 
International/Global Small/Mid Cap
  
             -
  
      123,405
  
             -
  
      123,405           
 
Large Cap Value
  
             -
  
      667,298
  
             -
  
      667,298           
 
Large Cap Core
  
             -
  
    1,198,653
  
             -
  
    1,198,653           
 
Large Cap Growth
  
             -
  
      986,665
  
             -
  
      986,665           
 
Mid Cap Growth
  
             -
  
      414,088
  
             -
  
      414,088           
 
Multi Sector Bond
  
             -
  
      239,946
  
             -
  
      239,946           
 
Small Cap Core
  
             -
  
      379,600
  
             -
  
      379,600           
 
Small Cap Growth
  
             -
  
      615,017
  
             -
  
      615,017           
 
Small Cap Value
  
             -
  
      220,489
  
             -
  
      220,489           
 
Stable Value
  
             -
  
      499,505
  
             -
  
      499,505           
    Guaranteed investment contract
  
             -
  
               -
  
  1,678,327
  
    1,678,327           
                   
 Total assets at fair value
$
  4,183,639
 $
    7,960,395
 $
  1,678,327
 $
  13,822,361           
                   
     
December 31, 2013
     
Level I
  
Level II
  
Level III
  
Total
 Assets:
                
    ESSA Bancorp, Inc. common stock
 $
  3,991,174
 $
               -
 $
             -
 $
    3,991,174           
    Pooled separate accounts:
                
 
Asset Allocation/Lifecycle
  
             -
  
    1,291,903
  
             -
  
    1,291,903           
 
High Yield Bond
  
             -
  
        77,225
  
             -
  
        77,225           
 
Intermediate Term Bond
  
             -
  
      310,963
  
             -
  
      310,963           
 
International/Global Growth
  
             -
  
      427,485
  
             -
  
      427,485           
 
International/Global Small/Mid Cap
  
             -
  
      123,517
  
             -
  
      123,517           
 
Large Cap Value
  
             -
  
      588,891
  
             -
  
      588,891           
 
Large Cap Core
  
             -
  
      958,918
  
             -
  
      958,918           
 
Large Cap Growth
  
             -
  
      661,621
  
             -
  
      661,621           
 
Mid Cap Growth
  
             -
  
      286,192
  
             -
  
      286,192           
 
Multi Sector Bond
  
             -
  
      229,415
  
             -
  
      229,415           
 
Small Cap Core
  
             -
  
      201,829
  
             -
  
      201,829           
 
Small Cap Growth
  
             -
  
      884,497
  
             -
  
      884,497           
 
Small Cap Value
  
             -
  
      239,369
  
             -
  
      239,369           
 
Stable Value
  
             -
  
      518,797
  
             -
  
      518,797           
    Guaranteed investment contract
  
             -
  
               -
  
     760,947
  
      760,947           
                   
 Total assets at fair value
$
  3,991,174
 $
    6,800,622
 $
     760,947
 $
  11,552,743           
 
-10-

 
 
 

NOTE 8 - FAIR VALUE MEASUREMENTS (Continued)

The table below sets forth a summary of changes in the fair value of the Plan's Level III assets for the year ended December 31, 2014.

           
Guaranteed
           
Investment
           
Contract
             
 Balance, December 31, 2013
    
$
    760,947           
             
 Unrealized gains relating to instruments still held at the
    
    reporting date
        
      62,962           
 Purchases and transfers
      
    854,418           
             
 Balance, December 31, 2014
    
$
  1,678,327           
             
 Amount of total losses for the period attributable
    
    to the change in unrealized gains relating to
    
    assets still held at the reporting date
  
$
            -           

Unrealized gains from the guaranteed investment contract are not included in the Statement of Changes in Net Assets included in the Statement of Changes
in Net Assets Available for Benefits as the contract is recorded at contract value for purposes of the net assets available for benefits.

Following is a description of the valuation methodologies used for assets measured at fair value.  There have been no changes in the methodologies used at
December 31, 2014 and 2013.

Common Stock

Valued at the closing price reported on the active market on which the individual securities are traded.

Pooled Separate Accounts

Valued at the unit value calculated based on the observable net asset value (“NAV”) of the underlying investment.

Guaranteed Investment Contract

Valued at fair value by discounting the related cash flows based on current yields of similar instruments with comparable durations considering the
creditworthiness of the issuer.

The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values.  
Furthermore, while the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies
or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.
 
-11-

 
 
 

NOTE 8 - FAIR VALUE MEASUREMENTS (Continued)

Fair Value of Investments in Entities that Use NAV

The following table summarizes investments measured at fair value based on NAV per share as of
December 31, 2014 and 2013, respectively.

December 31, 2014
 
Fair Value
 
Unfunded Commitments
Redemption Frequency
(if currently eligible)
 
Redemption Notice Period
 Pooled separate accounts:
        
         
 Asset Allocation/Lifecycle
$1,636,091
N/A
Daily
Daily
 High Yield Bond
          91,598
N/A
Daily
Daily
 Intermediate Term Bond
        421,711
N/A
Daily
Daily
 International/Global Growth
        466,325
N/A
Daily
Daily
 International/Global Small/Mid Cap
        123,405
N/A
Daily
Daily
 Large Cap Value
        667,298
N/A
Daily
Daily
 Large Cap Core
     1,198,653
N/A
Daily
Daily
 Large Cap Growth
        986,665
N/A
Daily
Daily 
 Mid Cap Growth
        414,088
N/A
Daily
Daily
 Multi Sector Bond
        239,946
N/A
Daily
Daily
 Small Cap Core
        379,600
N/A
Daily
Daily
 Small Cap Growth
        615,017
N/A
Daily
Daily
 Small Cap Value
        220,489
N/A
Daily
Daily
 Stable Value
        499,505
N/A
Daily
Daily
         
         
December 31, 2013
 
Fair Value
 
Unfunded Commitments
Redemption Frequency
(if currently eligible)
 
Redemption Notice Period
 Pooled separate accounts:
        
         
 Asset Allocation/Lifecycle
$1,291,903
N/A
Daily
Daily
 High Yield Bond
          77,225
N/A
Daily
Daily
 Intermediate Term Bond
        310,963
N/A
Daily
Daily
 International/Global Growth
        427,485
N/A
Daily
Daily
 International/Global Small/Mid Cap
        123,517
N/A
Daily
Daily
 Large Cap Value
        588,891
N/A
Daily
Daily
 Large Cap Core
        958,918
N/A
Daily
Daily
 Large Cap Growth
        661,621
N/A
Daily
Daily
 Mid Cap Growth
        286,192
N/A
Daily
Daily
 Multi Sector Bond
        229,415
N/A
Daily
Daily
 Small Cap Core
        201,829
N/A
Daily
Daily
 Small Cap Growth
        884,497
N/A
Daily
Daily
 Small Cap Value
        239,369
N/A
Daily
Daily
 Stable Value
        518,797
N/A
Daily
Daily
 
-12-

 
 
 

NOTE 8 - FAIR VALUE MEASUREMENTS (Continued)

Quantitative Information About Significant Unobservable Inputs Used in Level III Fair Value Measurements

The following table represents the Plan's Level III financial instruments, the valuation techniques used to measure the fair value of those financial instruments,
and the significant unobservable inputs and the ranges of values for those inputs as of December 31, 2014 and 2013.

   
Quantitative Information About Level III Fair Value Measurements
  
 December 31, 2014
  
Fair Value
Valuation Technique(s)
Unobservable Inputs
Range
Weighted Average
             
 Guaranteed investment contract
$
  1,678,327
Market value formula
Assumed interest rate
1.25%
1.25%
       
Experience rate
2.41%
2.41%
             
   
Quantitative Information About Level III Fair Value Measurements
  
 December 31, 2013
  
Fair Value
Valuation Technique(s)
Unobservable Inputs
Range
Weighted Average
             
 Guaranteed investment contract
$
    760,947
Market value formula
Assumed interest rate
1.16%
1.16%
       
Experience rate
2.35%
2.35%
 
NOTE 9 - FAIR VALUE OF FINANCIAL INSTRUMENTS

Financial instruments are defined as cash, evidence of ownership interest in an entity, or a contract which creates an obligation or right to receive or deliver
cash or another financial instrument from/to a second entity on potentially favorable or unfavorable terms.  Fair value is defined as the amount at which a
financial instrument could be exchanged in a current transaction between willing parties other than in a forced liquidation or sale.  If a quoted market price is
available for a financial instrument, the estimated fair value would be calculated based upon the market price per trading unit of the instrument.

Investments in common stock, pooled separate accounts, guaranteed investment contract, and notes receivable from participants would be considered
financial instruments.  At December 31, 2014 and December 31, 2013, the carrying amounts of these financial instruments approximate fair value.

NOTE 10 - RISKS AND UNCERTAINTIES

The Plan invests in various investment securities.  Investment securities are exposed to various risks such as interest rate, market, and credit risks.  Due to
the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will
occur in the near term and that such changes could materially affect participants’ account balances and the amounts reported in the Statement of Net Assets
Available for Benefits.

-13-

 
 
 




SUPPLEMENTAL SCHEDULE

 
 
 

ESSA BANK & TRUST 401(k) PLAN
SCHEDULE H, LINE 4i - SCHEDULE OF ASSETS (HELD AT END OF YEAR)
EMPLOYER IDENTIFICATION NUMBER 24-0568185
PLAN NUMBER - 002
DECEMBER 31, 2014

       
(c)  Description of Investment,
    
   
(b)  Identity of
  
Including Maturity Date,
    
   
Issuer, Borrower,
  
 Rate of Interest, Collateral,
  
 (e)  Current Value
(a)
  
Lessor, or Similar Party
  
 Par, or Maturity Value
(d) Cost
    
                 
   
Common stock
            
 *
  
ESSA Bancorp, Inc. common stock
  
                 332,143
$
3,358,437
$
       4,183,639            
                 
                 
   
Pooled separate accounts
            
 *
  
Massachusetts Mutual Life Insurance Company
SIA-E
  
552,141
  
          421,711            
 *
  
Massachusetts Mutual Life Insurance Company
  
SIA-X
  
1,130,567
  
          910,676            
 *
  
Massachusetts Mutual Life Insurance Company
  
SIA-W9
  
248,278
  
          271,063            
 *
  
Massachusetts Mutual Life Insurance Company
  
SIA-J
  
803,093
  
          437,377            
 *
  
Massachusetts Mutual Life Insurance Company
  
SIA-I
  
689,938
  
          466,325            
 *
  
Massachusetts Mutual Life Insurance Company
  
SIA-G
  
493,327
  
          499,509            
 *
  
Massachusetts Mutual Life Insurance Company
  
SIA-W4
  
611,969
  
          615,017            
 *
  
Massachusetts Mutual Life Insurance Company
  
SIA-W5
  
367,436
  
          287,977            
 *
  
Massachusetts Mutual Life Insurance Company
  
SIA-KT
  
173,289
  
          186,791            
 *
  
Massachusetts Mutual Life Insurance Company
  
SIA-WW
  
145,217
  
          220,489            
 *
  
Massachusetts Mutual Life Insurance Company
  
SIA-WR
  
90,927
  
          123,405            
 *
  
Massachusetts Mutual Life Insurance Company
  
SIA-GW
  
556,446
  
          799,874            
 *
  
Massachusetts Mutual Life Insurance Company
  
SIA-QL
  
185,251
  
          239,946            
 *
  
Massachusetts Mutual Life Insurance Company
  
SIA-CR
  
117,538
  
          143,025            
 *
  
Massachusetts Mutual Life Insurance Company
  
SIA-DH
  
118,943
  
            91,598            
 *
  
Massachusetts Mutual Life Insurance Company
  
SIA-SK
  
211,506
  
          229,921            
 *
  
Massachusetts Mutual Life Insurance Company
  
SIA-S
  
571,553
  
          379,600            
 *
  
Massachusetts Mutual Life Insurance Company
  
SIA-BT
  
122,446
  
          125,542            
 *
  
Massachusetts Mutual Life Insurance Company
  
SIA-DO
  
171,180
  
          177,957            
 *
  
Massachusetts Mutual Life Insurance Company
  
SIA-EO
  
291,323
  
          303,269            
 *
  
Massachusetts Mutual Life Insurance Company
  
SIA-FO
  
134,163
  
          140,326            
 *
  
Massachusetts Mutual Life Insurance Company
  
SIA-GO
  
13,365
  
            13,405            
 *
  
Massachusetts Mutual Life Insurance Company
  
SIA-HO
  
1,532
  
              1,540            
 *
  
Massachusetts Mutual Life Insurance Company
  
SIA-D1
  
155,666
  
          170,893            
 *
  
Massachusetts Mutual Life Insurance Company
  
SIA-D2
  
358,692
  
          449,622            
 *
  
Massachusetts Mutual Life Insurance Company
  
SIA-D3
  
149,696
  
          180,955            
 *
  
Massachusetts Mutual Life Insurance Company
  
SIA-D4
  
69,961
  
            72,582            
               
       7,960,395            
 
-14-

 
 
 

ESSA BANK & TRUST 401(k) PLAN
SCHEDULE H, LINE 4i - SCHEDULE OF ASSETS (HELD AT END OF YEAR)
EMPLOYER IDENTIFICATION NUMBER 24-0568185
PLAN NUMBER - 002
DECEMBER 31, 2014 (Continued)


       
(c)  Description of Investment,
    
   
(b)  Identity of
  
Including Maturity Date,
    
   
Issuer, Borrower,
  
 Rate of Interest, Collateral,
  
 (e)  Current Value
(a)
  
Lessor, or Similar Party
  
 Par, or Maturity Value
(d) Cost
    
                 
*
  
Massachusetts Mutual Life Insurance Company
 Guaranteed investment
    
       
   contract
  
  1,571,806
  
       1,571,806           
                 
*
  
Notes receivable from participants
  
 Interest rates of
        
       
   4.25% to 5.50%
  
             -
  
            78,235           
                 
   
Total
        
$
      13,794,075           
                 
                 
                 
*
  
Party in interest
            


-15-

 
 
 


SIGNATURES


The Plan.  Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.


   
ESSA BANK & TRUST 401(k) PLAN
     
     
Date: June 29, 2015
By:
  /s/ Allan A. Muto 
   
Allan A. Muto
   
Executive Vice President and Chief Financial Officer
   
ESSA Bank & Trust