ELMER BANCORP, INC. (“Elmer Bancorp” or the “Company”) (OTC Pink: ELMA), the parent company of The First National Bank of Elmer (the “Bank”), announces its operating results for the quarter ended March 31, 2022.

For the three months ended March 31, 2022, Elmer Bancorp reported net income of $311,000, or $0.27 per average diluted common share, compared to $403,000, or $0.35 per average diluted common share for the quarter ended March 31, 2021.

Net interest income for the three months ended March 31, 2022 totaled $2.746 million, a decrease of $406,000 from $3.152 million in the first quarter of 2021. Much of the decrease is related to higher net fee income recognized on Payroll Protection Program loans (“PPP”) in the first quarter of 2021. Non-interest income increased $10,700 primarily resulting from higher overdraft fee income in the current quarter partially offset by lower gains on the sale of OREO and a decline on fee income on sold mortgages. Non-interest expenses were $69,000 lower in the first quarter of this year compared to the same period last year. Higher employment costs, and higher advertising and occupancy expenses were more than offset by a reduction in professional fees and miscellaneous expenses. The loan loss provision was $195,000 for the three months ended March 31, 2021 compared to no loan loss provision in the first quarter of this year.

Elmer Bancorp’s total assets at March 31, 2022 were $380.8 million, an increase of $27.6 million from the March 31, 2021 level of $353.2 million. Total core assets (excluding PPP related assets) totaled $377.9 million, an increase of $50.9 million from the March 31, 2021 total of $327.0 million. The increase in total core assets results from increases in investment securities, federal funds sold and core loans.

Loans totaled $263.0 million at March 31, 2022, a decrease of $15.6 million from the March 31, 2021 total of $278.6 million. Excluding PPP loan related balances of $3.0 million at March 31, 2022 and $26.1 million at March 31, 2021, total core loans were $260.0 million and $252.4 million at March 31, 2022 and 2021, respectively, an increase of $7.6 million. At March 31, 2022, the allowance for loan losses was 1.74% of total core loans compared to 1.73% at March 31, 2021.

Deposits totaled $350.5 million at March 31, 2022, a $27.9 million increase over the March 31, 2021 total of $322.6 million, reflecting increases of $21.1 million and $6.8 million in interest bearing and non-interest bearing deposits, respectively. Stockholders’ equity totaled $28.6 million at March 31, 2022. The book value per common share at March 31, 2022 was $24.88 compared to $24.86 per share at March 31, 2021. The Bank met all regulatory capital requirements at March 31, 2022.

Brian W. Jones, President and Chief Executive Officer stated, “The first quarter of 2022 earnings were impacted by a reduction from the first quarter of 2021 of $251,200 in interest and fees on PPP loans, as these balances have significantly declined year-over-year. We remain cautiously optimistic regarding earnings growth considering the uncertain economic outlook and the overall effect of the pandemic on our customer base. While we reduced our loan loss provision, we continue to maintain a strong allowance for loan losses at 1.74% of total core loans. We are pleased that at March 31, 2022 our total core assets, total core loans and total deposits all reached all-time highs. With increasing loan demand, our total core loans reached the $260.0 million mark at March 31, 2022, representing an increase of $7.6 million over March 31, 2021 totals. As we move forward into 2022, we wish to thank our loyal customers, shareholders and team members for their continued support.”

As previously reported, on April 1, 2022 the Company’s Board of Directors declared a cash dividend in the amount of $0.20 per common share, payable on May 2, 2022 to shareholders of record as of the close of business on April 15, 2022.

Also, on April 1, 2022, the Company announced that the Annual Meeting of Shareholders will be held virtually on Tuesday, June 7, 2022 at 2:00 p.m. Eastern Time. The record date for shareholders to vote at the Annual Meeting is April 14, 2022. Additional information regarding virtual access to the meeting will be distributed prior to the meeting.

The First National Bank of Elmer, a nationally chartered bank headquartered in Elmer, New Jersey, has a long history of serving the community since its beginnings in 1903. We are a community bank focused on providing deposit and loan products to retail customers and to small and mid-sized businesses from our six full-service branch offices located in Cumberland, Gloucester and Salem Counties, New Jersey, including our main office located at 10 South Main Street in Elmer, New Jersey. Deposits at The First National Bank of Elmer are insured up to the legally maximum amount by the Federal Deposit Insurance Corporation (FDIC).

For more information about Elmer Bank and its products and services, please visit our website at www.ElmerBank.com or call toll free 1-856-358-7000.

Forward-Looking Statements

This press release and other statements made from time to time by the Company’s management contain express and implied statements relating to our future financial condition, results of operations, credit quality, corporate objectives, and other financial and business matters, which are considered forward-looking statements. These forward-looking statements are necessarily speculative and speak only as of the date made, and are subject to numerous assumptions, risks and uncertainties, all of which may change over time. Actual results could differ materially from those expected or implied by such forward-looking statements. Risks and uncertainties which could cause our actual results to differ materially and adversely from such forward-looking statements include economic conditions affecting the financial industry: changes in interest rates and shape of the yield curve, credit risk associated with our lending activities, risks relating to our market area, significant real estate collateral and the real estate market, operating, legal and regulatory risk, fiscal and monetary policy, economic, political and competitive forces affecting our business, our ability to identify and address cyber-security risks, and management’s analysis of these risks and factors being incorrect, and/or the strategies developed to address them being unsuccessful. Any statements made that are not historical facts should be considered forward-looking statements. You should not place undue reliance on any forward-looking statements. We undertake no obligation to update forward-looking statements or to make any public announcement when we consider forward-looking statements to no longer be accurate because of new information of future events, except as may be required by applicable law or regulation.

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