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, 2024.

For the three months ended March 31, 2024, Elmer Bancorp reported net income of $631,000, or $0.55 per average diluted common share, compared to $823,000, or $0.72 per average diluted common share for the quarter ended March 31, 2023.

Net interest income for the three months ended March 31, 2024 totaled $3.612 million, a decrease of $94,000 from $3.706 million in the first quarter of 2023. This decrease in net interest income is related to lower interest income on our overnight investments and higher interest paid on deposits partially offset by higher interest and fees on loans resulting from core loan growth year-over-year. Non-interest income increased $10,800 primarily resulting from increases in the cash surrender value of Bank Owned Life Insurance (“BOLI”) and higher premiums on sold mortgages. Non-interest expenses were $106,600 higher in the first quarter of this year compared to the same period last year. Higher employment costs, data processing costs, and other operating expenses were partially offset by a reduction in loan-related expenses and professional fees. The loan loss provision was $42,600 for the three months ended March 31, 2024 compared to a reduction in the loan loss provision of $40,900 in the first quarter of 2023. The allowance for loan losses was 1.38% of total loans at March 31, 2024 compared to 1.41% of total loans at March 31, 2023.

Elmer Bancorp’s total assets at March 31, 2024 were $360.6 million, a decrease of $10.5 million from the March 31, 2023 level of $371.1 million. Loans totaled $298.2 million at March 31, 2024, an increase of $10.9 million from the March 31, 2023 total of $287.3 million. The increase in loans was more than offset by a decrease in overnight investments of $18.2 million and a decrease in time deposits with other banks of $2.0 million. Deposits totaled $325.3 million at March 31, 2024, a $12.7 million decrease over the March 31, 2023 total of $338.0 million. This decrease in deposits is the result of the extremely competitive interest rate environment as well as deposit totals re-adjusting back towards pre-pandemic levels. Stockholders’ equity totaled $33.1 million at March 31, 2024. The book value per common share at March 31, 2024 was $28.94 compared to $26.68 per share at March 31, 2023. The Bank met all regulatory capital requirements to be classified as a well-capitalized institution as of March 31, 2024.

Brian W. Jones, President and Chief Executive Officer stated, “We are happy to report that our core earnings remain strong for the first quarter, reflecting a net income figure of $631,000. Our balance sheet continues to moderate toward a more typical level. This resulted in a reduction of interest income due to a decrease in our overnight investments. This, in conjunction with an extremely competitive interest rate and deposit gathering market, decreased our net interest income in the first quarter. We have continued to make headway in our market penetration on the loan side of the balance sheet. This has resulted in the bank reporting total loan balances of over $298 million as of March 31, 2024. This is the highest outstanding loan balance the bank has achieved in its 121 year history. This increase in loan balances will support future interest income and will help offset future interest expense. Although interest rates remain high, we fully expect that there will be some moderation in these rates, although the timing of such continues to be quite unpredictable. The bank remains in a strong position, both from an income and balance sheet standpoint, to respond to changing market conditions on a go-forward basis. We remain extremely grateful to our loyal customers, shareholders and employees, and wish to thank them for their continued support. We look forward to another successful year.”

As previously reported, on April 1, 2024 the Company’s Board of Directors declared a cash dividend in the amount of $0.20 per common share, payable on May 1, 2024 to shareholders of record as of the close of business on April 15, 2024.

Also, on April 1, 2024, the Company announced that the Annual Meeting of Shareholders will be held at The Grove at Centerton located at 1022 Almond Road, Pittsgrove, New Jersey on Tuesday, June 4, 2024 at 11:00 a.m. Eastern Time. The record date for shareholders to vote at the Annual Meeting is April 10, 2024.

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 legal 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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