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, 2023.

For the three months ended March 31, 2023, Elmer Bancorp reported net income of $823,000, or $0.72 per average diluted common share, compared to $311,000, or $0.27 per average diluted common share for the quarter ended March 31, 2022.

Net interest income for the three months ended March 31, 2023 totaled $3.706 million, an increase of $960,000 from $2.746 million in the first quarter of 2022. This increase in net interest income is related to higher interest income on our overnight investments as well as higher interest and fees on loans resulting from core loan growth year-over-year. Non-interest income decreased $19,200 primarily resulting from lower fees on sold mortgages. Non-interest expenses were $247,500 higher in the first quarter of this year compared to the same period last year. Higher employment costs, occupancy and equipment costs, loan-related expenses and data processing costs were partially offset by a reduction in professional fees and advertising and marketing expenses. The loan loss provision was reduced by $40,900 for the three months ended March 31, 2023 compared to no loan loss provision in the first quarter of 2022. This adjustment was the result of the bank implementing the required loan loss calculation under the Current Expected Credit Loss (CECL) model.

Elmer Bancorp’s total assets at March 31, 2023 were $371.1 million, a decrease of $9.7 million from the March 31, 2022 level of $380.8 million. Loans totaled $287.3 million at March 31, 2023, an increase of $24.3 million from the March 31, 2022 total of $263.0 million. The increase in loans was more than offset by a decrease in overnight investments of $35.9 million. At March 31, 2023, the allowance for loan losses was 1.41% of total loans. Deposits totaled $338.0 million at March 31, 2023, a $12.5 million decrease over the March 31, 2022 total of $350.5 million. This decrease in deposits is reflective of runoff that is occurring on deposits of government stimulus programs that have been artificially inflating our deposit totals. Stockholders’ equity totaled $30.7 million at March 31, 2023. The book value per common share at March 31, 2023 was $26.68 compared to $24.88 per share at March 31, 2022. The Bank met all regulatory capital requirements to be classified as a well-capitalized institution as of March 31, 2023.

Brian W. Jones, President and Chief Executive Officer stated, “We are very thankful that our earnings trend from 2022 has continued into the first quarter of 2023. Our net interest income continues to grow due to the interest rate increases quarter-over-quarter. The increase in interest income on our overnight investments has significantly contributed to our first quarter results as well as the increase in our core loan balances of $24.3 million. Total deposits continue to adjust to changing economic conditions and are returning to more typical levels but remain a strong source of liquidity for the bank. Although we are very pleased with the first quarter results, we continue to be cautious regarding the uncertainty of the economic environment and the challenges ahead. We truly appreciate our loyal customers, shareholders and team members and thank them for their continued support.”

As previously reported, on April 3, 2023 the Company’s Board of Directors declared a cash dividend in the amount of $0.20 per common share, payable on May 1, 2023 to shareholders of record as of the close of business on April 17, 2023.

Also, on April 3, 2023, 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 6, 2023 at 11:00 a.m. Eastern Time. The record date for shareholders to vote at the Annual Meeting is April 12, 2023.

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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