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 six months ended June 30, 2022.

For the three months ended June 30, 2022, Elmer Bancorp reported net income of $509,000, or $0.44 per average diluted common share, compared to $530,000, or $0.46 per average diluted common share for the three months ended June 30, 2021. For the six months ended June 30, 2022 net income totaled $820,000, or $0.71 per average diluted common share compared to $933,000, or $0.81 per average diluted common share for the six months ended June 30, 2021.

Net interest income for the three months ended June 30, 2022 totaled $2.997 million, an increase of $44,800 from $2.952 million in the second quarter of 2021. For the six months ended June 30, 2022, net interest income totaled $5.743 million compared to $6.103 million for the six-month period of 2021. The increase in net interest income for 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. Much of the decrease in the six-month period is related to higher net fee income recognized on the PPP loans in the first quarter of 2021. The loan loss provision was $105,000 and $300,000 for the three and six months ended June 30, 2021 compared to no loan loss provision in the first or second quarter of this year. The allowance for loan losses was 1.73% of total core loans at June 30, 2022 compared to 1.80% of total core loans at June 30, 2021.

Non-interest income for the three months ended June 30, 2022 was $25,500 higher than the same three-month period a year ago and $36,200 higher than the six-month period last year. Higher service fee income partially offset by lower fees on sold mortgages accounted for the increase in the three and six-month period.

Non-interest expenses were higher for the three and six months ended June 30, 2022 versus the prior year periods by $203,800 and $134,700, respectively. Increases in employment costs, occupancy and equipment expenses, miscellaneous expenses and data processing expenses were partially offset by lower professional fees and loan related expenses.

Elmer Bancorp’s total assets at June 30, 2022 totaled $392.9 million, an increase of $21.5 million from the June 30, 2021 level of $371.4 million. Total core assets (excluding PPP related assets) totaled $392.6 million, an increase of $40.5 million from the June 30, 2021 total of $352.1 million. Total loans were $263.1 million at June 30, 2022, a decrease of $4.6 million from the June 30, 2021 total of $267.7 million. Excluding June 30, 2022 PPP loan related balances of $316,000, total core loans were $262.8 million, $14.4 million higher than June 30, 2021. In addition, overnight investments increased $14.1 million and investment securities increased $10.3 million year-over-year.

Deposits totaled $363.0 million at June 30, 2022, a $22.5 million increase over the June 30, 2021 total of $340.5 million, reflecting increases of $17.1 million and $5.4 million in interest bearing and non-interest bearing deposits, respectively. Stockholders’ equity totaled $28.2 million at June 30, 2022. The book value per share at June 30, 2022 was $24.51 compared to $25.13 per share at June 30, 2021. The Bank met all regulatory capital requirements at June 30, 2022.

Brian W. Jones, President and Chief Executive Officer stated, “As inflation continues to be a major economic issue, we remain cautious as it relates to the effect it will have on our customer base. While core loan balances grew $14.2 million since year-end 2021, we continue to maintain a strong allowance for loan losses of 1.73% of total core loans at June 30, 2022. Net interest income was enhanced quarter-over-quarter as rates increased on our overnight investments in the second quarter which contributed to the $199,000 increase in net income over the first quarter. We are pleased that our deposit base has remained stable as normal seasonal fluctuations contributed to the quarter-over-quarter increase in deposit balances. We would like to thank our loyal customers and shareholders for their continued support of the bank and a big thank you to our employees for their hard work and dedication.”

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 1-877-358-8141.

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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