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 three and nine months ended September 30, 2022.

For the three months ended September 30, 2022, Elmer Bancorp reported net income of $759,000, or $0.66 per average diluted common share, compared to $604,000, or $0.53 per average diluted common share for the three months ended September 30, 2021. For the nine months ended September 30, 2022 net income totaled $1.579 million, or $1.37 per average diluted common share compared to $1.537 million or $1.34 per average diluted common share for the nine months ended September 30, 2021.

Net interest income for the three months ended September 30, 2022 totaled $3.332 million, an increase of $361,000 from $2.971 million in the third quarter of 2021. For the nine months ended September 30, 2022, net interest income totaled $9.075 million which was the same for the nine-month period of 2021. The increase in net interest income for the three-month period results from higher interest on our overnight investments partially offset by lower Payroll Protection Program (“PPP”) loan interest income and net loan fee income recognized on PPP loans. For the nine-month period, the increase in interest on our overnight investments was offset by lower loan interest income and net loan fee income recognized on PPP loans. The loan loss provision was reduced by $87,000 for the three and nine months ended September 30, 2022 compared to no loan loss provision for the three months ended September 30, 2021 and $300,000 for the nine months ended September 30, 2021. The $87,000 represents a partial reversal of the provision that was specifically allocated to the COVID-19 pandemic. The allowance for loan losses was 1.67% of total core loans at September 30, 2022 compared to 1.81% of total core loans at September 30, 2021.

Non-interest income for the three months ended September 30, 2022 was $2,300 higher than the same three-month period a year ago and $38,500 higher than the nine-month period last year. Higher service fee income partially offset by lower fees on sold mortgages accounted for the increase in the three and nine-month period.

Non-interest expenses were higher for the three and nine months ended September 30, 2022 versus the prior year periods by $228,000 and $362,700, respectively. Increases in employment costs, occupancy and equipment expenses, miscellaneous expenses, advertising and data processing expenses were partially offset by lower professional fees and loan related expenses.

Elmer Bancorp’s total assets at September 30, 2022 totaled $385.6 million, an increase of $14.8 million from the September 30, 2021 level of $370.8 million. Total core assets (excluding PPP related assets) totaled $385.6 million, an increase of $24.3 million from the September 30, 2021 total of $361.3 million. Total loans were $267.1 million at September 30, 2022, an increase of $6.0 million from the September 30, 2021 total of $261.1 million. Excluding September 30, 2021 PPP loan related balances of $9.5 million, total core loans at September 30, 2022 were $15.5 million higher than September 30, 2021. In addition, overnight investments increased $11.6 million and investment securities decreased $4.1 million year-over-year.

Deposits totaled $355.4 million at September 30, 2022, a $16.0 million increase over the September 30, 2021 total of $339.4 million, reflecting increases of $9.8 million and $6.2 million in interest bearing and non-interest bearing deposits, respectively. Stockholders’ equity totaled $28.3 million at September 30, 2022. The book value per share at September 30, 2022 was $24.63 compared to $25.61 per share at September 30, 2021. The Bank met all regulatory capital requirements at September 30, 2022.

Brian W. Jones, President and Chief Executive Officer stated, “We are very encouraged by the bank’s net income of $759,000 for the third quarter, despite the unpredictable economic conditions we have experienced. These results have exceeded our first and second quarter’s net income numbers by a significant amount. Our core loans increased by $15.5 million year-over-year and we continue to keep our loan loss allowance at a strong level of 1.67% of total core loans. As rates have continued to increase in the third quarter, our net interest income has continued to grow, mainly as a result of our overnight investments which contributed to the $250,000 increase in net income over the second quarter. We are pleased that our deposits ended the third quarter at $355.4 million, up $16.0 million from September 30, 2021. We are very appreciative of the support of our loyal customers and shareholders and as always, a big thank you to our dedicated and loyal employees.”

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 1-877-358-8141.

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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